Bottom-Up EquitiesDaily Briefs

Equity Bottom-Up: China Mobile, BeiGene Ltd, Intel Corp, DraftKings Inc and more

In today’s briefing:

  • Smartkarma North Asia Weekly: MSCI China Telcos Deletions, RLX IPO, Yidu Tech, & China SaaS Leaders
  • BeiGene: Cancer Treatment in China–The Underestimated Opportunity
  • Intel Beware ! The Vultures Are Circling.
  • NY State To Legalize Gambling, Double Down on DraftKings?

Smartkarma North Asia Weekly: MSCI China Telcos Deletions, RLX IPO, Yidu Tech, & China SaaS Leaders

By Douglas Kim

In this edition of the Smartkarma North Asia Weekly, it summarizes some of the top insights on Smartkarma in the past week covering Japan, HK/China, and the Korean stock markets. The top topics are below:

1) MSCI & FTSE Deletes Chinese Telcos

2) China Mobile (941 HK): Probably Too Cheap

3) LG Corp: Updated SoTP Valuation Analysis

4) Xpeng: The Next Xiaomi?

5) Yidu Tech IPO Valuation

6) Short Kose & Long Fancl and Kao

7) NCsoft: Key Catalysts

8) Oriental Land: Downside Risks Mount

9) China Tech: Emerging Enterprise SaaS Companies

10) Car Inc (699 HK): Are We Missing Anything?

11) Toshiba – The Drama Never Ends

12) RLX Technology Pre-IPO

13) TOPIX Inclusion: Welbe, Inc.

14) Asian Container Carriers

15) Wuxi Biologics Placement 

16) Japan Post Insurance Update – Three Reasons To Buy


BeiGene: Cancer Treatment in China–The Underestimated Opportunity

By Kemp Dolliver, CFA

We spend a substantial portion of our time thinking about oncology in China: one of the largest unmet needs in healthcare globally. The World Health Organization estimates that there are 4.3 million new cases and 2.9 million deaths annually. Historically, treatment options have been limited compared to the US, EU, and many of China’s neighbors. Fortunately, the government has implemented several reforms in recent years to accelerate development and importation of innovative treatments and to provide reimbursement for them. 

This Insight includes names to consider for two approaches to invest in this opportunity:

1) Invest in the leading multi-asset oncology companies.

2) Invest in a basket of companies with narrower oncology offerings.


Intel Beware ! The Vultures Are Circling.

By William Keating

Things took a dramatic turn for the worse at Intel last week with the publication of a letter from activist hedge fund Third Point to Intel’s board chairman, Dr Omar Ishrak. Having taken a significant stake in the company, Third Point is now setting out to drive sweeping changes at Intel. What are the implications for Intel and how is the company likely to respond to this challenge? Here’s our thoughts on the matter.


NY State To Legalize Gambling, Double Down on DraftKings?

By Aaron Gabin

Last week, New York Governor pointed towards legalizing online gambling to try to plug the budget gaps that COVID has blown open. He wants to raise $500M in revenues annually. We don’t think he will get there, but we do think NY is a $700M TAM.

At $52, is it time to re-engage on Draft Kings even after an 11% rally?

Obex’s fundamental research process is focused on secular change in the TMT and Consumer sectors. We seek to differentiate between fundamental business analysis and security analysis. Before deciding if a security’s pricing and positioning merit a long or short position, we analyze the four pillars of business fundamentals (Secular Factors, TAM, Competitive Advantage, Business Model) in order to determine if this is a “good” or “not so good” opportunity.


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