HK/China Equity Long-Short

Osbert Tang, CFA

Equity Bottom-Up

Vesync Co Ltd develops smart home platform that connect air quality, health monitoring, kitchen, lighting, and outlet systems.The Company helps users to manage home, save energy, and bring remote items within handheld reach.

<ul>
<li>
<a href="https://www.smartkarma.com/entities/vesync" target="_blank" data-smartkarma-citation="entities:31067:1" rel="noopener">Vesync (2148 HK)</a>'s suspension may suggest privatisation by the Yang family (68.8% stake). With US$192m public float and US$216m net cash, out-of-pocket cash needed is limited. </li>
<li>1H24 is decent with a 37.5% earnings growth and 3.3pp margin expansion. The consensus forecast of 4.8% growth in 2H24 is conservative, providing a good opportunity for privatisation.</li>
<li>Benchmarking the take-out price to the 3-year average P/B will mean a 33% upside while the sector's average PER multiple implies ~70% higher than the pre-suspension price.</li>
</ul>



Vesync (2148 HK)'s suspension may suggest privatisation by the Yang family (68.8% stake). With US$192m public float and US$216m net cash, out-of-pocket cash needed is limited. 
1H24 is decent with a 37.5% earnings growth and 3.3pp margin expansion. The consensus forecast of 4.8% growth in 2H24 is conservative, providing a good opportunity for privatisation.
Benchmarking the take-out price to the 3-year average P/B will mean a 33% upside while the sector's average PER multiple implies ~70% higher than the pre-suspension price.


Vesync (2148 HK): A Potential Privatisation?

Director, RaaS Research Group, Research as a Service (RaaS)

Research as a Service (RaaS)

Director, RaaS Research Group

Insightful Financial Models and Research Analysis

Connect to the right investors through smart and insightful financial models and research analysis.

Empire Energy Group Ltd., through a subsidiary, explores for oil and natural gas.  The Company operates in Pennsylvania and western New York State in the United States.

<ul><li>RaaS has published a flash comment on NT-focused gas explorer/producer Empire Energy Group (ASX:EEG) following the recently released findings of the Independent Expert Scientific Committee (IESC) on unconventional gas in the Beetaloo which has assessed the potential environmental impact and risk on water resources to be ‘minor’ if appropriate mitigation strategies are implemented.</li><li>The article published on the NT News website, also references comments from the Federal Department of Climate Change, Energy, Environment and Water (DCEEW) which concluded that exploration work (to date) did not meet the legal threshold of being a matter of national environmental significance to be assessed under national environmental law.</li><li>In our view, these findings from both assessments are positive for operators with respect to current gas development plans and potential future phases of gas expansion.</li></ul>

RaaS has published a flash comment on NT-focused gas explorer/producer Empire Energy Group (ASX:EEG) following the recently released findings of the Independent Expert Scientific Committee (IESC) on unconventional gas in the Beetaloo which has assessed the potential environmental impact and risk on water resources to be ‘minor’ if appropriate mitigation strategies are implemented.The article published on the NT News website, also references comments from the Federal Department of Climate Change, Energy, Environment and Water (DCEEW) which concluded that exploration work (to date) did not meet the legal threshold of being a matter of national environmental significance to be assessed under national environmental law.In our view, these findings from both assessments are positive for operators with respect to current gas development plans and potential future phases of gas expansion.

Empire Energy Group Ltd - The science says potential water impacts likely minor

Ricegrowers Limited, doing business as SunRice, operates as a rice food company. The Company processes and distributes rice products such as rice blends and snacks. SunRice serves customers worldwide.

<ul><li>RaaS interviewed Ricegrowers Group CFO Dimitri Courtelis following the company's H1 FY25 results.</li><li>This is a full transcript of the interview.</li></ul>

RaaS interviewed Ricegrowers Group CFO Dimitri Courtelis following the company's H1 FY25 results.This is a full transcript of the interview.

Ricegrowers (SunRice ASX:SGLLV) Interview Transcript 23 December 2024

<ul><li>RaaS has published an update on and interview with FMCG agri-group Ricegrowers which trades as SunRice (ASX:SGLLV) following the release of its interim report last week in which it delivered RaaS-adjusted EBITDA of $67.9m (+10%) in line with our forecasts and NPAT of $31.2m (+4%), below our forecasts due to a higher than expected tax rate (28% vs our 22%).Branded sales represent ~70% of total SGLLV sales, with the benefits of new brands, brand extensions and increased ranging evident in the H1 FY25 result.</li><li>Across Rice Food, Riviana and CopRice EBITDA growth far outpaced revenue growth, with EBITDA margins for Rice Food +400bps, +330bps for CopRice and +140bps for Riviana.</li><li>SGLLV added SavourLife and Simply Delish to the portfolio over the half and can be expected to add and extend further brands in pursuit of its 2030 revenue target of $3.0b.</li></ul>

RaaS has published an update on and interview with FMCG agri-group Ricegrowers which trades as SunRice (ASX:SGLLV) following the release of its interim report last week in which it delivered RaaS-adjusted EBITDA of $67.9m (+10%) in line with our forecasts and NPAT of $31.2m (+4%), below our forecasts due to a higher than expected tax rate (28% vs our 22%).Branded sales represent ~70% of total SGLLV sales, with the benefits of new brands, brand extensions and increased ranging evident in the H1 FY25 result.Across Rice Food, Riviana and CopRice EBITDA growth far outpaced revenue growth, with EBITDA margins for Rice Food +400bps, +330bps for CopRice and +140bps for Riviana.SGLLV added SavourLife and Simply Delish to the portfolio over the half and can be expected to add and extend further brands in pursuit of its 2030 revenue target of $3.0b.

Ricegrowers Ltd - Branded focus paying off

Japanese Turnaround Situations, Short-Ideas, Azabu Research

Michael Allen

Japanese Turnaround Situations, Short-Ideas

Azabu Research

Azabu Research is a publishing and consulting firm focused on distressed equities in the Japanese market. We specialize in turnaround strategies, corporate combinations, divestitures, and restructuring.

Publisher of the Tokyo Turnaround Letter, which conducts the most thorough research possible of publicly available information, including forensic tests for fraudulent overstatement of assets and understatement of liabilities, as well as rigorous market and industry analysis to assess the underlying strengths of the company’s products or services, the appropriateness of the company’s turnaround strategy, and the skill of its current management team. The average length of a report exceeds 25 pages of text and tables, excluding any disclosures or executive summaries.

We have more than 30 years of experience in applying this process to distressed equities in Japan. Additionally, subscribers have free access to detailed, yet easily navigated earnings models for the target company as well as the top five comparable companies, and unlimited access to the analyst for follow-up questions.

Azabu Research also conducts be-spoke research on a project basis, and provides consulting services to companies looking to restructure, divest, make acquisitions, go public, or improve investor sentiment toward their stock.

Independent Research and Consulting Firm

ROHM COMPANY LIMITED manufactures custom linear integrated circuits and semiconductor devices for use primarily in consumer electronics.  The Company has plants and sales offices worldwide.  Rohm's subsidiaries include Wako Electric and Apollo Electronics.

<ul>
<li>Solar power will be cheaper than fossil fuels and EVs will be cheaper than ICE vehicles, but you can't make either without the parts that Rohme excels in. </li>
<li>Tesla is up 201% on speculation about its FSD, but Taiyo Yuden, which makes critical parts in FSD systems is down systems, is down 43%.</li>
<li>Kose is down 49%, largely on China woes, but China is no longer big enough to be a problem, and Japan and other regions growth should start to take over. </li>
</ul>


Solar power will be cheaper than fossil fuels and EVs will be cheaper than ICE vehicles, but you can't make either without the parts that Rohme excels in. 
Tesla is up 201% on speculation about its FSD, but Taiyo Yuden, which makes critical parts in FSD systems is down systems, is down 43%.
Kose is down 49%, largely on China woes, but China is no longer big enough to be a problem, and Japan and other regions growth should start to take over. 


Unloved Japan Roundup-Rohm, Taiyo Yuden, Kose

Small Cap Longs
Mighty oaks from tiny acorns grow

Vesync (2148 HK): A Potential Privatisation?

Vesync may be heading towards privatisation by the Yang family which owns a 68.8% stake. Using historical P/B average and sector PER average as...

Osbert Tang, CFA

Empire Energy Group Ltd - The science says potential water impacts likely minor

RaaS has published a flash comment on NT-focused gas explorer/producer Empire Energy Group (ASX:EEG) following the recently released findings of...

Research as a Service (RaaS)

Ricegrowers (SunRice ASX:SGLLV) Interview Transcript 23 December 2024

RaaS interviewed Ricegrowers Group CFO Dimitri Courtelis following the company's H1 FY25 results. This is a full transcript of the interview.

Research as a Service (RaaS)

Ricegrowers Ltd - Branded focus paying off

RaaS has published an update on and interview with FMCG agri-group Ricegrowers which trades as SunRice (ASX:SGLLV) following the release of its...

Research as a Service (RaaS)

Unloved Japan Roundup-Rohm, Taiyo Yuden, Kose

The top 5 performing large-cap stocks in Japan returned 241% on average so far in 2024, but these stocks were all on their knees a short while ago....

Michael Allen

Vesync (2148 HK): A Potential Privatisation?

​Vesync may be heading towards privatisation by the Yang family which owns a 68.8% stake. Using historical P/B average and sector PER average as...

Osbert Tang, CFA

Empire Energy Group Ltd - The science says potential water impacts likely minor

RaaS has published a flash comment on NT-focused gas explorer/producer Empire Energy Group (ASX:EEG) following the recently released findings of...

Research as a Service (RaaS)

Ricegrowers (SunRice ASX:SGLLV) Interview Transcript 23 December 2024

RaaS interviewed Ricegrowers Group CFO Dimitri Courtelis following the company's H1 FY25 results. This is a full transcript of the interview.

Research as a Service (RaaS)

Ricegrowers Ltd - Branded focus paying off

RaaS has published an update on and interview with FMCG agri-group Ricegrowers which trades as SunRice (ASX:SGLLV) following the release of its...

Research as a Service (RaaS)

Unloved Japan Roundup-Rohm, Taiyo Yuden, Kose

The top 5 performing large-cap stocks in Japan returned 241% on average so far in 2024, but these stocks were all on their knees a short while ago....

Michael Allen

Vesync may be heading towards privatisation by the Yang family which owns a 68.8% stake. Using historical P/B average and sector PER average as...