HK/China Equity Long-Short

Osbert Tang, CFA

Equity Bottom-Up

China Education Group Holdings Limited offers educational services. The Company provides private universities operating services, education training services, and other services. China Education Group Holdings offers services in Hong Kong.

<ul>
<li>Although the reported FY24 net profit plunged 69.7% due to intangible impairments, <a href="https://www.smartkarma.com/entities/china-education-group-holdin" target="_blank" data-smartkarma-citation="entities:18218:1" rel="noopener">China Education Group (839 HK)</a>'s adjusted net profit grew by 3.3% and adjusted EBITDA by 12.3%.</li>
<li>Based on adjusted net profit, its payout ratio is flat at 40%, implying an 8% dividend yield. This suggests underlying operations are decent and demonstrate confidence in the outlook.</li>
<li>Both tuition and enrollment are expected to sustain growth in FY25, meaning that a consensus forecast of 9% net profit is achievable. Its 4.5x PER does not appear stretched.</li>
</ul>


Although the reported FY24 net profit plunged 69.7% due to intangible impairments, China Education Group (839 HK)'s adjusted net profit grew by 3.3% and adjusted EBITDA by 12.3%.
Based on adjusted net profit, its payout ratio is flat at 40%, implying an 8% dividend yield. This suggests underlying operations are decent and demonstrate confidence in the outlook.
Both tuition and enrollment are expected to sustain growth in FY25, meaning that a consensus forecast of 9% net profit is achievable. Its 4.5x PER does not appear stretched.


China Education Group (839 HK): What's up After the Big Bath?

Japan Specialist

Mark Chadwick

Thematic (Sector/Industry)

<ul>
<li>U.S. stocks surged on Tuesday, undeterred by President-elect Donald Trump's tariff warnings aimed at China, Canada, and Mexico. The S&amp;P 500 increased by 0.6% - a record close</li>
<li>Japanese firms on the TSE are set to distribute around $53 billion in dividends to shareholders by December, which could potentially elevate stock prices as these funds are reinvested.</li>
<li>Japanese PM Shigeru Ishiba urges companies to propose significant wage hikes during labor talks to address rising costs and increasing welfare expenditure pressures.</li>
</ul>


U.S. stocks surged on Tuesday, undeterred by President-elect Donald Trump's tariff warnings aimed at China, Canada, and Mexico. The S&amp;P 500 increased by 0.6% - a record close
Japanese firms on the TSE are set to distribute around $53 billion in dividends to shareholders by December, which could potentially elevate stock prices as these funds are reinvested.
Japanese PM Shigeru Ishiba urges companies to propose significant wage hikes during labor talks to address rising costs and increasing welfare expenditure pressures.


Ohayo Japan | US Stocks Climb to New Highs Despite Trade and Inflation Concerns

New Zealand Professional Investment Services Firm, Forsyth Barr

Forsyth Barr

New Zealand Professional Investment Services Firm

We are proud to be a New Zealand owned firm, with 21 offices throughout the country and over 300 employees. We assist personal, institutional and corporate clients providing a full range of investment services.

Forsyth Barr is a foundation New Zealand Exchange firm (NZX) and accredited market participant. We have been confirmed by the Financial Markets Authority as a Qualifying Financial Entity (QFE).

Research is the cornerstone of our advice. We have one of New Zealand's leading teams of analysts. Our global affiliations ensure comprehensive research coverage of all major investment markets.

Asset Plus Limited carries on the business of a property company that invests in and manages commercial, industrial and retail properties. The Company's investment property portfolio consists of retail, commercial, and industrial properties located in New Zealand.

<ul><li>Asset Plus (APL) reported a small 1H25 loss, however, the result itself is largely irrelevant, with the market's focus firmly on the sale of APL's final asset (Munroe Lane) and the return of capital. </li><li>The final milestone is the sale of Munroe Lane, which will dictate the size of the capital return.</li><li>Our scenarios suggest between NZ28–35cps (pre-special dividend) should be achievable. </li></ul>

Asset Plus (APL) reported a small 1H25 loss, however, the result itself is largely irrelevant, with the market's focus firmly on the sale of APL's final asset (Munroe Lane) and the return of capital. The final milestone is the sale of Munroe Lane, which will dictate the size of the capital return.Our scenarios suggest between NZ28–35cps (pre-special dividend) should be achievable. 

Asset Plus - 1H25: Waiting for the Wind Up

Oil and Gas, Mint Finance

Suhas Reddy

Oil and Gas

Deep Fundamental Analysis

Mint Finance

Mint Finance's investment research blends deep fundamental analysis with technical & quant insights. Investment strategies straddle across multiple asset classes with risk management embedded into every trade to deliver an outsized reward-to-risk ratio.

Mint Finance's research is centered around three key themes. First, energy transition and climate change. Second, artificial intelligence. Third, shifting world order with its impact across politics and monetary economics.

Chevron Corporation is an integrated energy company with operations in countries located around the world.  The Company produces and transports crude oil and natural gas.  Chevron also refines, markets, and distributes fuels as well as is involved in chemical operations, mining operations, power generation and energy services.

<ul>
<li>Chevron’s Q3 revenue declined 6.3% YoY, while its net profit dropped 31.2%. Yet it beat its revenue and EPS estimates by 3.7% and 3.6%, respectively.  </li>
<li>Chevron achieved a record Q3 output of 3.36 mboepd, up 7% YoY, driven by Permian growth. Full-year production growth is expected near the top of its 4-7% guidance.</li>
<li>Chevron returned USD 4.7 billion in buybacks and USD 2.9 billion in dividends. Q4 is expected to see USD 1 billion in dividends and USD 4–4.75 billion in buybacks.</li>
</ul>


Chevron’s Q3 revenue declined 6.3% YoY, while its net profit dropped 31.2%. Yet it beat its revenue and EPS estimates by 3.7% and 3.6%, respectively.  
Chevron achieved a record Q3 output of 3.36 mboepd, up 7% YoY, driven by Permian growth. Full-year production growth is expected near the top of its 4-7% guidance.
Chevron returned USD 4.7 billion in buybacks and USD 2.9 billion in dividends. Q4 is expected to see USD 1 billion in dividends and USD 4–4.75 billion in buybacks.


[Earnings Review] Chevron Surpasses Expectations on Higher Output and Improved Efficiency

External reports (aggregated public sources), Value Investors Club

Value Investors Club

External reports (aggregated public sources)

Southwest Gas Corporation purchases, transports, and distributes natural gas to residential, commercial, and industrial customers in portions of Arizona, Nevada, and California.  The Company also provides construction services to utility companies, including trenching and installation, replacement, and maintenance services for energy distribution systems.

<ul><li>Southwest Energy Corporation is focusing on natural gas distribution utilities, having sold its pipeline and storage business</li><li>The company holds a majority stake in Centuri Holdings, an infrastructure construction services provider</li><li>Southwest Energy is expected to pay off debt, initiate buybacks or increase dividends, and has rate case filings in multiple states that could lead to substantial rate base growth</li></ul><p><em>This content is sourced through publicly available sources and has been machine generated. Information displayed is for general informational purposes only. This article was originally published 3 months ago on Value Investors Club.</em></p>

Southwest Energy Corporation is focusing on natural gas distribution utilities, having sold its pipeline and storage businessThe company holds a majority stake in Centuri Holdings, an infrastructure construction services providerSouthwest Energy is expected to pay off debt, initiate buybacks or increase dividends, and has rate case filings in multiple states that could lead to substantial rate base growthThis content is sourced through publicly available sources and has been machine generated. Information displayed is for general informational purposes only. This article was originally published 3 months ago on Value Investors Club.

Southwest Gas Holdings Inc (SWX) - Monday, Aug 26, 2024