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Smartkarma Daily Briefs

Jun 09
0

Daily Brief Industrials: SK Square , Generac Holdings and more

By | Daily Briefs, Industrials

In today’s briefing:

  • Potential Merger Dynamics Involving SK Inc, SK Square, & SK Hynix
  • Generac Holdings: What Is The Story Of Their Expansion in Energy Technology and Storage Solutions? – Major Drivers

Potential Merger Dynamics Involving SK Inc, SK Square, & SK Hynix

By Sanghyun Park

  • Regardless of the divorce proceedings, SK still urgently needs SK Inc’s stock price to rise for other reasons. That reason is to position SK Hynix directly under SK Inc.
  • SK Inc boosts stake in SK Square with SK Telecom shares, followed by a public tender offer to exchange SK Square shares for new SK Inc shares.
  • SK Inc’s involvement in the divorce lawsuit makes it a focus for traders seeking relative outperformance among the SK companies involved in this situation.

Generac Holdings: What Is The Story Of Their Expansion in Energy Technology and Storage Solutions? – Major Drivers

By Baptista Research

  • Generac Holdings delivered a mixed performance for the first quarter of 2024.
  • Strength in the Home Standby Generator segment and operational improvements played favorable roles, while declines in the global portable generators and domestic energy storage markets were notable drags on revenue.
  • Generac’s consistent effort in expanding its dealer and installer networks, alongside investments in both traditional and emerging product lines, solidifies its market leadership and positions it well for long-term growth.

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Jun 09
0

Daily Brief Financials: Chubb , Manulife Financial , Progressive Corp, Sun Life Financial , Travelers Cos and more

By | Daily Briefs, Financials

In today’s briefing:

  • Chubb Limited: What Is Their Investment Strategy & Do They Have A Strategic Competitive Advantage? – Major Drivers
  • Manulife Financial Corporation: Enhanced Asian Market Engagement and Growth Strategy & Other Major Drivers
  • The Progressive Corporation: Leveraging Technology for Competitive Pricing! – Major Drivers
  • Sun Life Financial Inc.: Increasing Medicaid Enrollment & State Contract Acquisitions! – Major Drivers
  • The Travelers Companies: How Are They Adapting To Socio-Economic and Regulatory Changes? – Major Drivers

Chubb Limited: What Is Their Investment Strategy & Do They Have A Strategic Competitive Advantage? – Major Drivers

By Baptista Research

  • Chubb Limited showcased a strong performance in its Q1 2024 update, with notable growth across multiple segments and a robust financial posture.
  • The demonstrated acceleration in core operating income by over 20% to $2.2 billion and an operating EPS increase of nearly 23% to $5.41 underlines a solid upward trajectory.
  • Particularly impressive was the company’s Property & Casualty (P&C) segment where underwriting income rose over 15% to $1.4 billion, underscoring a combination of earned premium growth and favorable underwriting margins.

Manulife Financial Corporation: Enhanced Asian Market Engagement and Growth Strategy & Other Major Drivers

By Baptista Research

  • Manulife Financial Corporation has posted a strong first quarter of 2024, exemplifying solid strategic execution and financial performance across its diversified operations.
  • The company reported a 16% growth in core earnings and a significant 20% increase in core EPS, supported by robust contributions from its Asian markets and Global Wealth and Asset Management (WAM) segments.
  • Furthermore, core return on equity (ROE) advanced by nearly two percentage points year-over-year to 16.7%, surpassing the medium-term target of 15%.

The Progressive Corporation: Leveraging Technology for Competitive Pricing! – Major Drivers

By Baptista Research

  • Progressive Corporation reported strong first quarter results for 2024, marking a period of robust growth and profitability.
  • This quarter was highlighted by an 18% increase in net premiums written and an impressive combined ratio of 86.1%.
  • These results represent both growth and a sound strategic approach to rate revisions and risk management, reflective of the company’s core values and business strategy.

Sun Life Financial Inc.: Increasing Medicaid Enrollment & State Contract Acquisitions! – Major Drivers

By Baptista Research

  • Sun Life Financial’s first quarter of 2024 delivered mixed financial outcomes, indicative of diverse operational strengths and challenges across its array of business lines and geographical areas.
  • The company’s broad diversification strategy remains a fundamental pillar, helping to absorb regional and segment-specific volatilities.
  • On the positive spectrum, the company witnessed a robust 30% growth in individual protection underlying earnings in Asia, driven by significant sales increases in Hong Kong and stable performance in India.

The Travelers Companies: How Are They Adapting To Socio-Economic and Regulatory Changes? – Major Drivers

By Baptista Research

  • Travelers Companies Inc.’s first quarter 2024 results exhibit a strong financial performance characterized by solid growth in both top-line and bottom-line metrics, further strengthened by strategic initiatives and investments that bolster its market position.
  • The company reported core income of $1.1 billion, reflecting a notable increase from the previous year, despite facing a $211 million one-time tax benefit in the prior year’s quarter.
  • This performance was bolstered by a core return on equity of 15.4%, showcasing effective capital utilization.

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Jun 09
0

Daily Brief Health Care: Tempus AI and more

By | Daily Briefs, Healthcare

In today’s briefing:

  • Tempus AI IPO: AI in Diagnostics at Scale, Investor Sentiment Appears Positive

Tempus AI IPO: AI in Diagnostics at Scale, Investor Sentiment Appears Positive

By Andrei Zakharov

  • Tempus AI, a healthcare IT company and provider of next-gen diagnostics, is expected to IPO next week. The company plans to raise $411M at the high end of the range.
  • The most recent S-1/A puts the expected price range per share at $35 to $37, implying a market cap of ~$6B at the midpoint.
  • Tempus AI provides personalized cancer care and brings AI to healthcare at scale. They train LLMs to develop AI applications and have the largest public genomic data sets in oncology

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Jun 09
0

Daily Brief Consumer: Meituan, Jardine Cycle & Carriage and more

By | Consumer, Daily Briefs

In today’s briefing:

  • [Meituan (3690 HK, BUY, TP HK$156) TP Change]: Counting on Execution to Navigate the Uncertainties
  • Last Week in Event SPACE: Jardine Cycle & Carriage, “Name & Shame”, Asia Cement, Northern Minerals

[Meituan (3690 HK, BUY, TP HK$156) TP Change]: Counting on Execution to Navigate the Uncertainties

By Ying Pan

  • Meituan reported C1Q24 revenue 6.0%/6.2% higher our estimate/consensus, and adjusted net income 19%/29% higher than our estimate/consensus. The stock fell on lower takeout order and in-store revenue guidance for C2Q24;
  • The stock has two uncertainties:(1)Strategic moves by Douyin and Eleme,(2)success of overseas expansion. There are no easy answers to these two questions but we believe the corner has been turned
  • We maintain the stock as BUY rating and raise TP to HK$156/share to factor in the improvement in profitability.

Last Week in Event SPACE: Jardine Cycle & Carriage, “Name & Shame”, Asia Cement, Northern Minerals

By David Blennerhassett

  • A new tool highlights which TSE companies have disclosed a policy/consideration; sometimes referred to as the “name and shame” list. In practice, more “name” than “shame”. 
  • Jardine Cycle & Carriage (JCNC SP) is trading rich to its NAV. And the simple ratio (JCNC/Astra International (ASII IJ)) is the highest level outside the 2008 GFC. 
  • This is a rubbish Offer for Asia Cement China (743 HK). Given how shareholders voted at last year’s AGM, expect this Scheme to be voted down. Avoid.

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Jun 08
0

Daily Brief Quantitative Analysis: Hong Kong Buybacks Weekly (Jun 7th): Tencent and more

By | Daily Briefs, Quantitative Analysis

In today’s briefing:

  • Hong Kong Buybacks Weekly (Jun 7th): Tencent, Aia, Xiaomi Corporation

Hong Kong Buybacks Weekly (Jun 7th): Tencent, Aia, Xiaomi Corporation

By Ke Yan, CFA, FRM

  • We analyze statistics on top repurchases over one week, one month, one quarter and one year periods ended on Jun 7th based on HKEx daily reports.
  • In the past 7 days, the top 3 companies that repurchased the most shares from the market were Tencent (700 HK), AIA (1299 HK), Xiaomi Corporation (1810 HK).
  • In the past 30 days, the top 3 companies that repurchased the most shares from the market were Tencent (700 HK), AIA (1299 HK), Hang Seng Bank (11 HK).

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Jun 08
0

Daily Brief ESG: Higher Valuations Require Increased Return on Capital to Attract the Attention of Overseas Investors and more

By | Daily Briefs, ESG

In today’s briefing:

  • Higher Valuations Require Increased Return on Capital to Attract the Attention of Overseas Investors

Higher Valuations Require Increased Return on Capital to Attract the Attention of Overseas Investors

By Aki Matsumoto

  • Even with the 9% increase in share repurchases, the high level of cash on hand will likely be further built up, given the increase in cash flow.
  • Companies that have increased their valuations over the past year have further increased their valuations by growing their traditionally high valuations and ROE and ROA.
  • Cash allocation is a major challenge for all companies. Many companies have a payout ratio of 30%, and they have too much cash on hand relative to sales.

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Jun 08
0

Daily Brief Thematic (Sector/Industry): No April Fools! April 2024 Was the Hottest Month in 175 Years. Is Weather the Largest Black Swan? and more

By | Daily Briefs, Thematic (Sector/Industry)

In today’s briefing:

  • No April Fools! April 2024 Was the Hottest Month in 175 Years. Is Weather the Largest Black Swan?
  • Themes of India: The Evolution of Senior Care- Trends and Opportunities
  • #10 India Insight: Repo Rate Unchanged, Adani Ports LOI,Tata Steel, Air India-Vistara Merger
  • [Blue Lotus Daily]:NIO US/LI US/XPEV US/1211 HK/1810 HK
  • A trading framework: Calling the recoil
  • #14Business Buzz: Microsoft FTC Probe, TXSE Group Challenges NYSE, Aramco Aids Saudi Transformation
  • AUCTUS ON FRIDAY – 07/06/2024

No April Fools! April 2024 Was the Hottest Month in 175 Years. Is Weather the Largest Black Swan?

By Amrutha Raj

  • April marked the record-breaking streak of eleventh consecutive month of record-high global temperatures and the 48th consecutive April above the 20th-century average.
  • NOAA predicts a 61% chance that 2024 will be the warmest year on record and a 100% chance it will rank in the top five.
  • One hundred national records have been broken for extreme heat since 2014. Death Valley in US holds record at 54.4C. Competition to break that is not too far.

Themes of India: The Evolution of Senior Care- Trends and Opportunities

By Sudarshan Bhandari

  • Rapid growth in India’s senior living sector, fueled by demographic changes and preferences for quality elderly care and lifestyle options.
  • India’s rising needs of senior care and startups and listed companies growing in the space
  • Under penetrated market, evolving needs and preferences of seniors; underscores investment potential in senior living; emphasizes the importance of specialized care for ageing populations.

#10 India Insight: Repo Rate Unchanged, Adani Ports LOI,Tata Steel, Air India-Vistara Merger

By Sudarshan Bhandari

[Blue Lotus Daily]:NIO US/LI US/XPEV US/1211 HK/1810 HK

By Eric Wen

  • NIO US: NIO’s losses expanded in the first quarter of 2024, and C2Q likely will see better numbers.(/)
  • NIO US:  Nio plans to launch the 3rd brand in December to target low end market.(/)
  • LI US: LI L6 production capacity ramps up and delivery cycle shortens(+)

A trading framework: Calling the recoil

By Acid Investments

  • Regular readers of this blog may know that I love tinkering with setups.
  • Recent profitable ideas of late have come from identifying mispriced situations primed for profit e.g. TDS-PV and FF .
  • Whilst a lot of focus in investing is on deep diving the fundamentals, the first easy pennies are often acquired via identification of a profitable set-up and thus, being able to identify profitable patterns is an important skill to hone.

#14Business Buzz: Microsoft FTC Probe, TXSE Group Challenges NYSE, Aramco Aids Saudi Transformation

By Nimish Maheshwari

  • Microsoft’s $650 million investment in Inflection under FTC investigation for potential undisclosed acquisition.
  • Texas introduces TXSE Group, backed by BlackRock, challenging NYSE and Nasdaq dominance.
  • Saudi Aramco’s $11.2 billion stock offering supports Saudi Arabia’s economic transformation.

AUCTUS ON FRIDAY – 07/06/2024

By Auctus Advisors

  • Criterium Energy (CEQ CN) C: target price of C$0.35 per share: Re-iterating production guidance – 1Q24 production was 802 bbl/d with average realized price of US$82/bbl.
  • This is in line with our expectations.
  • Operating netbacks for the period stood at C$2.2 mm, also in line with our expectations.

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Jun 08
0

Daily Brief ECM: Initial Thoughts on the Yanolja IPO and more

By | Daily Briefs, ECM

In today’s briefing:

  • Initial Thoughts on the Yanolja IPO

Initial Thoughts on the Yanolja IPO

By Douglas Kim

  • Yanolja is getting ready to complete its IPO in the US in the next several months. Softbank invested about US$1.7 billion in Yanolja in 2021.
  • The valuation of Yanolja could be between US$7 billion to US$9 billion. The company could raise nearly US$400 million in this IPO. 
  • Overall, we are concerned about the valuations of Yanolja if indeed the bankers push ahead with the IPO at the valuation range of US$7 billion to US$9 billion.

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Jun 08
0

Daily Brief Equity Bottom-Up: Asian Dividend Gems: Fonterra Shareholders Fund and more

By | Daily Briefs, Equity Bottom-Up

In today’s briefing:

  • Asian Dividend Gems: Fonterra Shareholders Fund
  • Can indie Semiconductor Get Acquired? A Market-Defining Technology With High Differentiation & 3 Critical Factors Making It An Attractive Target! – Major Drivers
  • Tech Supply Chain Tracker (08-Jun-2024): Samsung chairman visits Verizon in US.
  • Full Report – Kantsu (9326 JP)
  • Best Buy Co.: How Are Strategically Using AI In The Business! – Major Drivers
  • BurgerFi International: What Value Can It Extract If It Gets Acquired & What Makes It A Good Target? – Major Drivers
  • Asana Inc.: Will Their Emphasis On AI Integration Improve The Bottom-Line? – Major Drivers
  • Hewlett Packard Enterprise Company: A Story Of Enhanced Focus On Artificial Intelligence (AI) Systems & GreenLake & Cloud Services Expansion! – Major Drivers
  • CrowdStrike Holdings: Will Its Enhanced AI Capabilities With Charlotte AI Be A Game Changer? – Major Drivers
  • Guess? Inc.: The Rag & Bone Acquisition Can Be A Game Changer? – Major Drivers

Asian Dividend Gems: Fonterra Shareholders Fund

By Douglas Kim

  • Fonterra Shareholders Fund’s dividend yield was 14.2% in 2023. Its dividend yield averaged 8.7% in the past three years. 
  • Fonterra Co-Operative Group, is a New Zealand based multinational dairy cooperative. Outside investors who are not allowed to hold shares in Fonterra Co-Operative Group can invest in Fonterra Shareholders Fund. 
  • In May 2024, Fonterra announced that it plans to sell off its consumer products businesses and concentrate on business to business sales as a dairy ingredients supplier.

Can indie Semiconductor Get Acquired? A Market-Defining Technology With High Differentiation & 3 Critical Factors Making It An Attractive Target! – Major Drivers

By Baptista Research

  • Indie Semiconductor’s Q1 2024 financial results and strategic discussion provide both encouraging and cautionary insights.
  • During this period, the company reported a year-over-year revenue increase of 29% to $52.4 million, driven by strong performance in their Autotech market segment, albeit slightly below the provided guidance.
  • Gross profit stood at $26.4 million, reflecting a gross margin of 50.3%, which fell short of expectations due to unfavorable product mix adjustments.

Tech Supply Chain Tracker (08-Jun-2024): Samsung chairman visits Verizon in US.

By Tech Supply Chain Tracker

  • Samsung chairman kicks off US visit with Verizon, highlighting importance of partnerships for expanding US market presence.
  • French tech startups shine at InnoVEX, showcasing innovation and talent in the tech industry at Computex 2024.
  • Taiwan chipmakers showcase cutting-edge tech at Computex 2024, while India’s EV market shows promise and challenges with Modi’s third-term win.

Full Report – Kantsu (9326 JP)

By Sessa Investment Research

  • KANTSU Co., Ltd. (hereafter, “Kantsu”) is a warehouse logistics specialist providing comprehensive logistics services, including warehousing, inventory management, and delivery of products sold by e-commerce (EC) and catalog businesses, handling approximately 12 million shipments per year.
  • The Company has also created a highly profitable business by selling its in-house developed IT systems that streamline operations to external customers.
  • In terms of sales and profits, the Company’s two main drivers are its Logistics Services Business and IT Automation Business.

Best Buy Co.: How Are Strategically Using AI In The Business! – Major Drivers

By Baptista Research

  • The first quarter fiscal 2025 earnings by Best Buy Co., Inc. demonstrated some mixed results.
  • On the positive side, it highlighted that the company had better-than-expected Q1 profitability through strong execution and preparation for future growth.
  • The company has been driving improvements in its priorities and its operational metrics.

BurgerFi International: What Value Can It Extract If It Gets Acquired & What Makes It A Good Target? – Major Drivers

By Baptista Research

  • BurgerFi International is currently examining a strategic decision involving the possible sale of the company.
  • This review comes in the wake of their reported financial outcomes for the first quarter of 2024.
  • Analyzing the financial data and strategic initiatives articulated during the earnings discussion can provide insights into the potential advantages and challenges related to such an acquisition.

Asana Inc.: Will Their Emphasis On AI Integration Improve The Bottom-Line? – Major Drivers

By Baptista Research

  • As per the Q1 2025 earnings, Asana experienced a positive start to the year, with revenues growing 13% year-over-year.
  • Revenue from large customers grew even faster.
  • Non-operating margins also improved by 5 percentage points year-over-year.

Hewlett Packard Enterprise Company: A Story Of Enhanced Focus On Artificial Intelligence (AI) Systems & GreenLake & Cloud Services Expansion! – Major Drivers

By Baptista Research

  • In its second quarter of fiscal 2024, Hewlett Packard Enterprise (HPE) reported notable performance, surpassing its initial revenue and non-GAAP diluted net earnings per share (EPS) expectations.
  • This growth was primarily driven by a robust increase in demand for AI systems, highlighted by a significant uptick in revenue contributing to a cumulative AI systems orders of $4.6 billion for the quarter.
  • HPE’s optimistic outlook is further supported by a raise in full-year revenue and non-GAAP EPS guidance, though it maintains its forecast for free cash flow.

CrowdStrike Holdings: Will Its Enhanced AI Capabilities With Charlotte AI Be A Game Changer? – Major Drivers

By Baptista Research

  • CrowdStrike Holdings Inc. has reported its fiscal first quarter 2025 results, demonstrating robust growth and financial performance.
  • CrowdStrike’s investment appeal is anchored on its comprehensive cybersecurity solutions delivered through the Falcon platform, an AI-native software that consolidates various cybersecurity functionalities.
  • This platform strategy leverages artificial intelligence to enhance cybersecurity measures, streamline operations, and improve cost-efficiencies for clients.

Guess? Inc.: The Rag & Bone Acquisition Can Be A Game Changer? – Major Drivers

By Baptista Research

  • Guess?, Inc.’s Q1 fiscal 2025 showed a strong start to the year, with significant progress on operational, strategic, and financial objectives.
  • The company reported results for the first quarter exceeding expectations in revenues, operating earnings, and per share results.
  • Sales growth was recorded in each of their segments and gross margins expanded favorably impacting the bottom line.

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Jun 08
0

Daily Brief Event-Driven: EQD | The NIFTY Swung Big But the Rally Could Continue For +2 Weeks and more

By | Daily Briefs, Event-Driven

In today’s briefing:

  • EQD | The NIFTY Swung Big But the Rally Could Continue For +2 Weeks
  • Unipol Gruppo/UnipolSai: Squeeze-Out and Spread

EQD | The NIFTY Swung Big But the Rally Could Continue For +2 Weeks

By Nico Rosti

  • The NIFTY Index has been swinging wildly as of lately, but the odds look good for a continuation of the rally at the moment.
  • The index is in a pattern where it can rally for 1-2 more weeks.
  • Wait for prices in the 23500/23700 resistance area before considering a SHORT trade.

Unipol Gruppo/UnipolSai: Squeeze-Out and Spread

By Jesus Rodriguez Aguilar

  • Unipol Gruppo S.p.A (UNI IM) has reached 95% of the share capital of UnipolSai SpA (US IM), therefore the conditions for the squeeze-out are met.
  • The dividend-adjusted offer price is €2.535. Unipol has three months from 26 April to implement the squeeze-out. The holding discount, as expected, has closed.
  • Spread to cash offer is 0.51%/3.85% (gross, annualized assuming settlement of squeeze-out by 26 July). The share alternative is now trading at a premium.

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