Bottom-Up EquitiesDaily Briefs

Equity Bottom-Up: Rex International Holding, Don Agro International Ltd, Samsung Biologics Co.,, Bank Mandiri Persero, Moderna Inc, Kuaishou Technology, Clearfield Inc, Index Livingmall PCL, Texas Pacific Land Trust and more

In today’s briefing:

  • Preview Rex International FY21 Results: Prime Beneficiary Of Rising Oil Price
  • Smartkarma Corporate Webinar | Don Agro: From Russia With Food
  • Samsung Biologics (207940 KS): Well-Positioned to Leap Forward Without Biogen Deal
  • Bank Mandiri Persero (BMRI IJ) – Livin’ in Digital World
  • Is It Time For Moderna To Boost Share Buyback And Start Paying Dividends?
  • Kuaishou (1024 HK): Right Decision to Cut Costs, Still 20% Upside After 13% Rise
  • CLFD: Not so Clear Field, Initiating with Sell
  • ILM: Expect 4Q21 Earnings Improve QoQ
  • TPL: Rising Production, Raising Estimates

Preview Rex International FY21 Results: Prime Beneficiary Of Rising Oil Price

By Nicolas Van Broekhoven

  • Rex International Holding (REXI SP) will report results around 25/2/2022; we expect a major 2H21 performance inflection as the Norwegian Brage field cash flow is included from 01/01/2021.
  • According to a press release on 13/1/22 the company is actively applying to uplist from Catalist to the mainboard. We see no reason why SGX should not grant this application.
  • Rex’s Oman production has disappointed in 4Q21 but cash flow-wise shortfall should be made up by higher oil prices and Brage. Maiden dividend announcement should be forthcoming.

Smartkarma Corporate Webinar | Don Agro: From Russia With Food

By Smartkarma Research

For our next Corporate Webinar we are glad to welcome the management team of Don Agro International (DAG SP):

  • CEO, Marat Devlet-Kildeyev

  • CFO, Artur Nazaryan

In their upcoming webinar, Don Agro management will share a short company presentation after which, they will engage in a fireside chat with Smartkarma Insight Provider, Nicolas Van Broekhoven. A live Q&A session will follow.

The Corporate Webinar will be hosted on Tuesday, 25 January 2022, 17:00 SGT.

Don Agro (SGX: GRQ) is one of the largest agricultural companies in the Rostov region in Russia, the most fertile region of the country. The Group is engaged in the cultivation of agricultural crops and production of raw milk. Don Agro has a total controlled land bank of 67,340 hectares. The Group’s operations are situated close to the Azov and Black Seas and the Don River which house major international ports. In addition, Don Agro is the largest milk producer in the Rostov region and owns more than 4,000 heads of dairy cattle.

Corporate Webinars by Smartkarma Corporate Solutions feature discussions with IROs and Executives, discussing their companies, the challenges they face, and the opportunities in their sectors and markets.


Samsung Biologics (207940 KS): Well-Positioned to Leap Forward Without Biogen Deal

By Tina Banerjee

  • Samsung Biologics Co., (207940 KS) has denied its acquisition talk with Biogen Inc (BIIB US). With its current controversies, Biogen does not seem to be an attractive bet.
  • The company is poised for strong growth in 2022, driven by its massive capacity expansion plans and portfolio diversification toward high-growth areas like cell & gene therapies and mRNA business.  
  • With an increasing order backlog resulting from consistent contract win and expanding customer base, Samsung Biologics has strong revenue visibility.

Bank Mandiri Persero (BMRI IJ) – Livin’ in Digital World

By Angus Mackintosh

  • Bank Mandiri stands out amongst the top 4 banks in that it has chosen to push its digital services through Livin’ rather than a stand-alone digital bank.
  • The bank has already made significant progress with Livin’ with 6m active users out of 30m customers and it is also developing wholesale digital banking through Kopra.
  • Bank Mandiri remains a core proxy for the recovery in Indonesian economic recovery with an increasing digital edge and valuations are attractive versus historical levels.

Is It Time For Moderna To Boost Share Buyback And Start Paying Dividends?

By Andrei Zakharov

  • Shares of Moderna Inc (MRNA US) underperformed and fell ~32% YTD. Investors continued to cut exposure to stocks of COVID vaccine makers, including BioNTech, Novavax, CureVac, among others.
  • In August 2021, Moderna announced the first share buyback plan. The company’s Board of Directors has authorized share repurchase for up to $1 billion with an expiry date in 2023. 
  • We estimate Moderna may end 2021 with a total of ~$18.5 billion in cash, cash eq., investments and expect the company may boost share buyback in the future.

Kuaishou (1024 HK): Right Decision to Cut Costs, Still 20% Upside After 13% Rise

By Ming Lu

  • The stock price has risen 13% since our last note, but we still believe there is an upside of 21%.
  • The company is cutting employee benefits, from housing allowance to afternoon tea.
  • We believe the operating loss will shrink significantly in the following two years.

CLFD: Not so Clear Field, Initiating with Sell

By Hamed Khorsand

  • CLFD has been the beneficiary of communication service providers investing in their broadband networks to meet an increase in data traffic.
  • The events of the last two years, namely the COVID-19 pandemic causing work/learn from home and Huawei and ZTE equipment replacement, were the reason for the boom CLFD has experienced.
  • CLFD’s community broadband customer was incentivized to replace Huawei and ZTE equipment with reimbursement checks from the FCC.

ILM: Expect 4Q21 Earnings Improve QoQ

By Research Group at Country Group Securities

  • We maintain BUY rating with a target price of Bt21.0, derived from 18xPE’22E, +1SD from three years average trading range or 50% discount from Home improvement subsector.
  • We expect ILM to report 4Q21 net profit at Bt135m (-6%YoY, +142%QoQ). QoQ recovery will be supported by an increase in revenue, thanks to stores sales recovery (SSSG at +13%YoY)
  • We expect 2022E earnings to recover 46%YoY supported by revenue growth at +5.6%YoY to Bt8.5bn from; 1) a new products launch to attract new targeted  customers (low-ended and luxury segments)

TPL: Rising Production, Raising Estimates

By Hamed Khorsand

  • TPL remains unhedged to the price of crude oil with Permian Basin output rising. Total output in the Permian Basin is projected to surpass 5 million barrels per day 
  • The increase in output would have an immediate benefit to TPL in the form of royalties and could generate incremental water and surface land easement revenue
  • TPL’s stock has been selling off with the broader market in what we speculate could have to do with no action from TPL’s Board after the annual shareholder meeting

Related tickers: Rex International Holding (REXI.SI), Samsung Biologics Co., (207940.KS), Bank Mandiri Persero (BMRI.JK), Clearfield Inc (CLFD.OQ)

Before it’s here, it’s on Smartkarma