In today’s briefing:
- 1H22 Obex Research Long Portfolio
- Horiba (6856 JP): New Growth Opportunity in Hydrogen Energy
- Shanghai Junshi Bioscience (1877.HK/688180.CH) – Behind the “break Up” with AstraZeneca
- Square Enix – WAGMI
1H22 Obex Research Long Portfolio
- With half of Nasdaq stocks down 50% from the top, is further meltdown ahead? Valuation compression is already larger than recent big growth selloffs.
- We like a balance of highest quality high growth (CRWD, SNOW, RBLX) and attractive relative valuations (PANW, NOW, BABA)
- Amazon is poised for a big 2022 as 1 day Prime shipping reaccelerates growth, and price increases hike profits.
Horiba (6856 JP): New Growth Opportunity in Hydrogen Energy
- Measurement and analysis to qualify hydrogen fuel cells, vehicle engines and fueling stations, electrolysis and other hydrogen production processes should be a new growth driver for Horiba.
- Semiconductor equipment demand losing momentum, but should hold up in 2022. Weak demand for auto emission measurement systems is a key risk.
- Reasonably valued at 15x EPS guidance for FY Dec-21 and 1.45x book value, with a dividend yield of 2.0%.
Shanghai Junshi Bioscience (1877.HK/688180.CH) – Behind the “break Up” with AstraZeneca
- Shanghai Junshi Bioscience Co. Ltd. (1877 HK) announced that it has terminated its PD-1 commercialization partnership with AstraZeneca. Lower-than-expected sales performance is seen as the key reason.
- Junshi’s commercialization team is the weakest among the domestic Top Four.As the FDA’s attitude may have changed, the logic of exporting innovative domestic drugs to foreign markets could be shaken.
- Given the poor financing environment,it’s challenging for Junshi to afford large investment in R&D and licensing deals by just relying on cash in hand and cashflow generating from commercialized products.
Square Enix – WAGMI
- Blockchain games are gaining popularity and traction with new players. There are now over 1.4m people playing blockchain games daily
- The economics of blockchain gaming and NFT is driving a flood of new investment into the space, with $4b committed by VCs in 2021. This year will be significantly higher
- Square Enix understands that blockchain games are here to stay despite opposition from “legacy fans.” We expect further announcements on blockchain gaming to drive the stock
Related tickers: Alibaba Group (BABA.N), Horiba Ltd (6856.T), Square Enix Holdings (9684.T)
Before it’s here, it’s on Smartkarma
