In today’s briefing:
- Angelalign Technology (6699.HK) – Uncertain Growth Outlook
- Strong Quarterly Results And New $3B Share Repurchase Plan
- Square Pharmaceuticals (SQUARE BD): Recent Policy Changes Open Up International Opportunities
Angelalign Technology (6699.HK) – Uncertain Growth Outlook
- Currently, Angelalign could not be compared with Align Technology in many aspects, but Angelalign’s PE/TTM indicates it may have already overdrawn the performance of the next few years.
- The growth outlook of Angelalign has uncertainties. Any deceleration in revenues and profits in any given year is likely to lead to a significant valuation correction.
- High valuation cannot be supported without certainty of growth. Therefore, based on our analysis, our view is that Angelalign could be a short-term trade, but not long-term hold.
Strong Quarterly Results And New $3B Share Repurchase Plan
- Moderna Inc (MRNA US) , the leading biotechnology company and producer of mRNA-based COVID-19 vaccine Spikevax, reported total revenue of ~$18.5B and net income of $12.2B in CY’21.
- Management announced a new $3B share repurchase plan and fully utilized the previous $1B buyback program as valuations looked attractive.
- We expect the company will generate ~$22.1B of free cash flows from CY’22 through CY’24, and we would be buyers on any weakness in Moderna.
Square Pharmaceuticals (SQUARE BD): Recent Policy Changes Open Up International Opportunities
- Square Pharmaceuticals (SQUARE BD) has received permission from the Bangladesh Bank to invest overseas, after the government issued new rules for overseas investment.
- Per initial plan, Square Pharmaceuticals will invest $1 million in Philippines, which is the third largest ASEAN region. The company’s Kenya manufacturing facility is expected to start production soon.
- During H1FY22, Square Pharmaceuticals revenue growth of 17% outpaced the industry growth. The company generated higher net margin than its closest competitors.
Before it’s here, it’s on Smartkarma
