Stock research on global mid-cap companies, Evaluate Research

Evaluate Research

Stock research on global mid-cap companies

Evaluate Research provides institutional quality stock research on small-cap and  mid-cap companies on a global basis, thus helping connect investors with the company.

At Evaluate Research, we provide free of cost to all investors a 20-25 page Initiation Report which evaluates in great detail all aspects of the company:  growth opportunities, catalysts, business description, competitive positioning, SWOT analysis, risks, etc.  In addition, we determine specific price targets for the company based on detailed 5-year complete forecasts of financial statements including IS, BS, CF, ratios, etc.  Finally, whereas many sell-side brokers offer sketchy and irregular ongoing maintenance research of companies, if not outright dropped or termination of coverage, at Evaluate Research we systematically monitor and regularly publish Update Notes covering quarterly earnings, major corporate events, etc.

All of the research reports are broadly and freely disseminated globally to leading Fund Managers and analysts who invest specifically in mid-size equities, and also on leading investment information platforms including: Bloomberg, Thomson Reuters, FactSet etc.

Equity Bottom-Up

Hywin Holdings Ltd. operates as a holding company. The Company, through its subsidiaries, provides wealth management, insurance brokerage, and asset management services. Hywin Holdings serves clients worldwide.

<ul>
<li>Hywin [NASDAQ:  HYW] announced a broad business transformation plan in response to overall market and regulatory conditions in China.</li>
<li>The stock price, under considerable pressure since November last year, has clearly anticipated some of this uncertainty.</li>
<li>As part of its transformation, Hywin will shift is wealth management product distribution away from asset-backed products.</li>
</ul>


Hywin [NASDAQ:  HYW] announced a broad business transformation plan in response to overall market and regulatory conditions in China.
The stock price, under considerable pressure since November last year, has clearly anticipated some of this uncertainty.
As part of its transformation, Hywin will shift is wealth management product distribution away from asset-backed products.


Hywin [HYW] - Business Transformation Update

<ul>
<li>Active clients increased 6.5% to 46,627 [roughly 30% of total], despite challenging domestic markets. Note: this metric surged 27% sequentially</li>
<li>82% of client activity focused on international markets/products, highlighting the diverse, value-added nature of Hywin’s offerings</li>
<li>Transaction value of overall wealth products declined -9%, asset-backed products down -5.8%, reflecting weak equity &amp; property markets</li>
</ul>


Active clients increased 6.5% to 46,627 [roughly 30% of total], despite challenging domestic markets. Note: this metric surged 27% sequentially
82% of client activity focused on international markets/products, highlighting the diverse, value-added nature of Hywin’s offerings
Transaction value of overall wealth products declined -9%, asset-backed products down -5.8%, reflecting weak equity &amp; property markets


Hywin [HYW}: Solid Sales, 60% Net Cash, 17% FCF Yield, Strong Client Metrics

Sun Hung Kai & Company Limited is an investment holding company. The Company, through its subsidiaries, focuses on providing tailor-made financing solutions to corporations, small businesses, and individuals.

<ul>
<li>Despite Headwinds Revenue Remains Relatively Stable at HK $1,968 million </li>
<li>For 1HFY2023–Total Buyback of 0.77 million shares (HK$2.3 million) at average price of $2.99 </li>
<li>Stock at 0.25x tangible P/B and at 1.96x P/E on our FY2024 earnings estimate </li>
</ul>


Despite Headwinds Revenue Remains Relatively Stable at HK $1,968 million 
For 1HFY2023–Total Buyback of 0.77 million shares (HK$2.3 million) at average price of $2.99 
Stock at 0.25x tangible P/B and at 1.96x P/E on our FY2024 earnings estimate 


SHK 86_HK: Dividend Yield 8.5%, P/E 1.96x, P/B 0.25x

<ul>
<li>Operating Income +15.5% YoY [excluding Healthcare expenses, up +21.2% YoY], with solid cost discipline and expense control</li>
<li>Net Income rose fractionally 0.3%, impacted by Healthcare initial ramp-up expenses, and other one-time non-recurring charges</li>
<li>Net Cash [zero debt, and not including restricted cash/client deposits] increased of RMB536 million [$83 million], or $2.85 per ADR equalling 43% of the stock price</li>
</ul>


Operating Income +15.5% YoY [excluding Healthcare expenses, up +21.2% YoY], with solid cost discipline and expense control
Net Income rose fractionally 0.3%, impacted by Healthcare initial ramp-up expenses, and other one-time non-recurring charges
Net Cash [zero debt, and not including restricted cash/client deposits] increased of RMB536 million [$83 million], or $2.85 per ADR equalling 43% of the stock price


Hywin [HYW]: +18% Sales, 43% Net Cash, 5x P/E, 18% FCF Yield, Secular Growth

Leoch International Technology / Equity Bottom-Up

Leoch International Technology Limited is a lead-acid battery manufacturer, developer, and exporter. Their products are used in: telecommunications systems, uninterruptible power supplies (UPS), automotives, renewable energy storage systems, and other consumer and industrial products.

<ul>
<li>Capital Expenditure - New Investment in Mexico Plant in 2023</li>
<li>The company achieved a solid performance in its Recycled Lead business and Power Solutions business with a revenue growth of 18% and 13%, respectively, as compared to 2021.</li>
<li>The revenue for Recycled Lead business and Power Solutions business was RMB2,413 million and RMB10,433 million respectively. </li>
</ul>


Capital Expenditure - New Investment in Mexico Plant in 2023
The company achieved a solid performance in its Recycled Lead business and Power Solutions business with a revenue growth of 18% and 13%, respectively, as compared to 2021.
The revenue for Recycled Lead business and Power Solutions business was RMB2,413 million and RMB10,433 million respectively. 


Leoch [842]:  +225% EPS, 5G Play, 4x P/E, 6% Dividend, Inflection Point

Evaluate Research provides institutional quality stock research on small-cap and  mid-cap companies on a global basis, thus helping connect investors with the company.

At Evaluate Research, we provide free of cost to all investors a detailed 35-40+ page Initiation Report which evaluates in great detail all aspects of the company:  growth opportunities, catalysts, business description, competitive positioning, SWOT analysis, risks, etc.  In addition, we determine specific price targets for the company based on detailed 5-year complete forecasts of financial statements including IS, BS, CF, ratios, etc.  Finally, whereas many sell-side brokers offer sketchy and irregular ongoing maintenance research of companies, if not outright dropped or termination of coverage, at Evaluate Research we systematically monitor and regularly publish 10-15 page Update Notes covering quarterly earnings, major corporate events, etc.

All of the research reports are broadly and freely disseminated globally to leading Fund Managers and analysts who invest specifically in mid-size equities, and also on leading investment information platforms including: Bloomberg, Thomson Reuters, FactSet ,S&P Capital IQ etc.