Smartkarma Daily Briefs

Lam Research Corporation reported its earnings for the December 2024 quarter with results largely exceeding guidance midpoints, showcasing strong operational execution and strategic positioning.
The company reported a revenue of $4.38 billion, an increase of 5% from the previous quarter.
This growth was driven by a balance of increased spending in the DRAM and NAND segments, despite muted NAND spending levels earlier in the year.

Avant Corp (3836 JP): 1H FY06/25 flash update

Revenue rose to JPY14.0bn (+19.3% YoY), with operating profit margin increasing to 18.1% (+2.0pp YoY).
Outsourcing and software businesses drove revenue growth, with order backlog in Q2 FY06/25 at JPY4.8bn (+24.0% YoY).
Consolidated employees increased to 1,567, with substantial profit growth in Corporate Management Solutions Business in 1H FY06/25.

Freebit (3843) Buys Out Minorities in Giga Prize (3830) – Light, But Tough to Block

Today, Freebit Co Ltd (3843 JP) announced it would launch a Tender Offer next Monday to buy out minorities in 60.9%-owned Giga Prize (3830 JP).
The multiple is not terribly impressive. It could be better. But they only need 5.8% of the 39.1% they do not own to get this over the hump.
Synergies are clear. They are expected. They are not priced in the valuation. This is disappointing. Again.

Samsung 4Q24: Weak Again, Weak Outlook, Lack of Catalysts on the Horizon

By Nicolas Baratte

Weak results again in 4Q24. Weak outlook for 1H25 as Mobile, PC demand remains weak (ie DRAM, NAND, Display).
Samsung expects its “optimized” HBM3E to ramp from 2Q25. HBM4 in 2H25. Logic 2nm production in 2026.
The stock is cheapish at ~8x 2025-26EPS but with a lack of catalyst, visibility, effectiveness of managements changes. Revisit mid-2025.

SAP: Net New Customer Acquisition to Strengthen Its Leadership In Enterprise Application Software! – Major Drivers

SAP’s fourth-quarter and full-year 2024 financial outcomes underline a significant phase in its continuing evolution toward cloud-driven solutions and artificial intelligence.
The results reflect a substantial transition from a traditional software company to a more agile, cloud-focused entity.
This shift is evidenced by a 40% increase in total cloud backlog, reaching €63 billion, and a 27% rise in cloud revenue, which now accounts for half of SAP’s total revenue.

T-Mobile US: Can Its Spectrum Advantage Give It An Edge Over Rivals

T-Mobile U.S. delivered a strong performance in 2024, as indicated by their latest earnings call.
Key highlights include record growth in customer acquisition, solid financial metrics, continued network improvements, and strategic investments that position the company for future expansion.
T-Mobile’s 2024 results were marked by substantial gains in postpaid phone customers, with more than 3 million net additions for the third consecutive year.

Net One Systems (7518 JP): Q3 FY03/25 flash update

In cumulative Q3 FY03/25, orders were JPY156.7bn (+22.1% YoY), with revenue at JPY155.4bn (+8.7% YoY).
Operating profit increased 18.3% YoY, with notable growth in Enterprise and Public businesses, but declined in Telecom Carrier.
Net One’s shares are scheduled for delisting, leading to withdrawal of full-year earnings forecast for FY03/25.

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Feb 01

Daily Brief Industrials: Raytheon Technologies , Boeing Co, Titan America, Lockheed Martin, Ns Tool Co Ltd, Danaher Corp, Paccar Inc and more

By Smartkarma Daily Briefs | Daily Briefs, Industrials

In today’s briefing:

RTX Corporation: Will Its Next-Generation Engine Programs Affirm Leadership Position In The Defense & Aerospace Industry? – Major Drivers
Boeing’s High-Stakes Production Ramp-Up: Can It Deliver Or Will Chaos Ensue? – Major Drivers
Titan America (TTAM): Cement Producer IPO Spin-Off Poised for Growth Amid Favorable Industry Trends
Pentagon’s Favorite Contractor? Why Lockheed Martin’s Defense Empire Will Keep Soaring!- Major Drivers
Ns Tool Co Ltd (6157 JP): Q3 FY03/25 flash update
Danaher Corporation: An Insight Into Its Cepheid’s Global Installed Base & Innovation! – Major Drivers
PACCAR Inc.: Can European Market Dynamics Help Capture Share & Boost Revenue In The Region? – Major Drivers

RTX Corporation: Will Its Next-Generation Engine Programs Affirm Leadership Position In The Defense & Aerospace Industry? – Major Drivers

Raytheon Technologies Corporation (RTX) concluded its fourth quarter of 2024 with robust financial performance, evidenced by significant growth across several key metrics.
The company reported adjusted sales of $80.8 billion, marking an 11% organic increase driven by strong performances in commercial original equipment (OE), commercial aftermarket, and defense sales.
Adjusted earnings per share (EPS) grew 13% to $5.73, and free cash flow amounted to $4.5 billion.

Boeing’s High-Stakes Production Ramp-Up: Can It Deliver Or Will Chaos Ensue? – Major Drivers

The Boeing Company’s recent quarterly earnings call revealed a mixed performance, capturing both progress and ongoing challenges.
Key areas of focus included stabilizing production, managing fixed-price development programs, and cultural transformation, against the backdrop of an industry still in recovery.
On the commercial aerospace side, Boeing’s production strategy post-IAM strike was highlighted.

Titan America (TTAM): Cement Producer IPO Spin-Off Poised for Growth Amid Favorable Industry Trends

Spinoff of European Parent Titan Cement is seeking a potential $3b valuation.
The financial metrics of this company have been steadily improving which could lend a strong opportunity if priced attractively.
We will be taking a wait-and-see approach for our short-term time frame forecast regarding this deal versus the issue price.

Pentagon’s Favorite Contractor? Why Lockheed Martin’s Defense Empire Will Keep Soaring!- Major Drivers

Lockheed Martin Corporation’s recent earnings report for the fourth quarter and full year 2024 showcases a mix of positive and challenging aspects of the company’s performance.
Overall, the company demonstrated resilience through revenue growth and an expanding backlog, but financial results were impacted by significant charges related to classified programs.
In 2024, Lockheed Martin reported sales growth of 5% year-over-year, reaching $71 billion.

Ns Tool Co Ltd (6157 JP): Q3 FY03/25 flash update

Cumulative Q3 FY03/25 sales increased 4.3% YoY to JPY7.0bn, with domestic sales decreasing 1.0% YoY.
Overseas sales rose 17.1% YoY to JPY2.3bn, with Greater China sales up 28.5% and other Asian regions up 9.0%.
Operating profit decreased 3.8% YoY to JPY1.3bn, with operating profit margin down 1.6pp YoY to 18.4%.

Danaher Corporation: An Insight Into Its Cepheid’s Global Installed Base & Innovation! – Major Drivers

Danaher Corporation concluded 2024 with notable performance improvements across its business segments, emphasizing particularly encouraging results from its bioprocessing and Life Sciences instruments sectors.
The company’s disciplined execution enabled solid cash flow generation and operating profit margin expansion.
Total sales for the year reached $23.9 billion, although core revenue saw a slight decline of 1.5%.

PACCAR Inc.: Can European Market Dynamics Help Capture Share & Boost Revenue In The Region? – Major Drivers

PACCAR Inc’s fourth-quarter 2024 earnings call highlighted a balanced view of the company’s fiscal performance, including both strengths and challenges faced during the period.
For the year 2024, PACCAR reported revenues of $33.7 billion and a net income of $4.2 billion, marking this as the second-highest profit in its history.
These achievements underscore the company’s strength in producing high-quality trucks and transportation solutions, powered by its long-standing brands such as Kenworth, Peterbilt, and DAF Trucks.

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Feb 01

Daily Brief Energy/Materials: Sanyo Special Steel, Gold, Chuoh Pack Industry, Crude Oil, SGX Rubber Future TSR20, TotalEnergies, Itochu Enex, Petroleos Mexicanos, Allegiant Gold , Infinity Natural Resources and more

By Smartkarma Daily Briefs | Daily Briefs, Energy & Materials Sector

In today’s briefing:

Nippon Steal! Again. Parent Takes Out Sanyo Special Steel (5481) At Well Below Book
The Best of Hedgeye: Jim Rickards → Why Gold Is Going To $10,000
Nikkon Pays 273% Premium for Chuoh Pack (3952 JP) In Takeover
[ETP 2025/05] WTI Falls on Trump’s Trade Policies; Henry Hub Drops on Milder Weather Forecasts
Rubber Board Launches Twin Projects To Propel Indian NR
[Earnings Preview] TotalEnergies Banks on LNG Growth to Offset Weak Oil Prices
Itochu Enex (8133 JP): Q3 FY03/25 flash update
Pemex: Lack of Concrete Action Weights on the Outperform Thesis
Allegiant Gold Ltd – Mining Monthly: January Edition
Infinity Natural Resources (INR): Buyers Step In Marking Second Winning Energy IPO

Nippon Steal! Again. Parent Takes Out Sanyo Special Steel (5481) At Well Below Book

6-7 years ago Sanyo Special Steel (5481 JP) bought out a large foreign specialty steel company, and funded it by getting Nippon Steel to inject capital at below book.
Now Nippon Steel is buying the rest of Sanyo Special Steel in a Tender Offer at 0.66x book, where most of book is Net Receivables, Inventory, WIP, and Materials.
This is the second time in a decade where the Board has decided to sell control of itself at far below book value. They should be ashamed of themselves.

The Best of Hedgeye: Jim Rickards → Why Gold Is Going To $10,000

By Real Conversations

The book discusses new arguments for investing in gold in the modern era, including the threat of cyber financial warfare.
The hosts discuss the book’s exploration of notable advocates and critics of gold investment, including Milton Friedman and Roubini.
Emphasizing the new arguments in favor of gold investment in the 21st century alongside traditional reasons

This content is sourced through publicly available sources and has been machine generated. Information displayed is for general informational purposes only.

Nikkon Pays 273% Premium for Chuoh Pack (3952 JP) In Takeover

Today, Nikkon Holdings (9072 JP) announced it would take over Chuoh Pack Industry (3952 JP) for ¥5,034/share. It closed today at ¥1,349. This is a HUGE win for governance.
The 273% premium is not the big win here. For holders it is, of course, but for Japan Inc shareholders everywhere, the win was the auction process.
This could have come out at 100% premium and that might have been OK. As it is, cross-holders and one big holder together get this deal done. Congrats!

[ETP 2025/05] WTI Falls on Trump’s Trade Policies; Henry Hub Drops on Milder Weather Forecasts

By Suhas Reddy

For the week ending 24/Jan, US crude inventories increased by 3.5m barrels, missing expectations of a 2.2m barrel build. Gasoline stockpiles rose, while distillate stocks fell more than expected.
US natural gas inventories fell by 321 Bcf for the week ending 24/Jan, beating analyst expectations of a 317 Bcf drawdown. Inventories are 4.1% below the 5-year seasonal average.
Shell’s Q4 adjusted earnings dropped 38.3% QoQ and 49.9% YoY, missing estimates due to weak margins and oil prices. HSBC raised its PT on Chevron but cut it for Exxon.

Rubber Board Launches Twin Projects To Propel Indian NR

By Vinod Nedumudy

iSNR (Indian Sustainable Natural Rubber) to deal with EUDR
INR Konnect to help idling plantations come alive
iSNR to fetch a premium of 10-35% in global markets

[Earnings Preview] TotalEnergies Banks on LNG Growth to Offset Weak Oil Prices

By Suhas Reddy

TotalEnergies’ Q4 revenue is expected to drop 22.5% YoY, with EPS down 14.8% YoY. For 2024, revenue and EPS are projected to fall 5.2% and 17.8%, respectively.
TotalEnergies expects lower crude prices to weigh on earnings but anticipates gains from higher LNG output, stronger gas trading, and rising LNG prices, setting it apart from peers.
TotalEnergies expects a slight increase in Q4 oil and gas production, with its Integrated LNG segment benefiting from an output rise and higher realizations.

Itochu Enex (8133 JP): Q3 FY03/25 flash update

Cumulative Q3 FY03/25 sales revenue was JPY678.3bn (-4.4% YoY), with operating profit at JPY23.0bn (+2.2% YoY).
Home-Life Division sales revenue rose to JPY52.5bn (+5.7% YoY), driven by higher LP gas import prices.
Power and Utility Division sales revenue declined to JPY58.3bn (-36.0% YoY) due to decreased market transactions.

Pemex: Lack of Concrete Action Weights on the Outperform Thesis

By Leandro Gubler

We need to see concrete action from the Mexican government to maintain an Outperform recommendation.
Pemex’s deteriorating operational metrics will likely increase its need for government assistance.
Within Pemex’s capital structure, we continue to prefer the PEMEX (B3/BBB/B+) 5.950% 2031, the PEMEX 6.625% 2035, the PEMEX 6.625% 2038, and the PEMEX 7.690% 2050.

Allegiant Gold Ltd – Mining Monthly: January Edition

By Atrium Research

What you need to know: • Following two months of poor returns, the metals and mining market rose sharply in January as tariff uncertainties rose and the treasury yields decreased.
• In January, gold was up 6%, silver was up 7%, and copper was up 7%.
The equities exhibited leverage to the commodity price increases, with the GDX up 16%, GDXJ up 15%, and SILJ up 10%.

Infinity Natural Resources (INR): Buyers Step In Marking Second Winning Energy IPO

Throughout the week, Infinity Natural Resources had to manage the Venture Global (VG) headwind — a previously broken IPO from the energy sector.
While there was pushback on valuation with some buyside investors, Infinity Natural Resources was able to successfully convey their story.
There has now been three energy IPOs in 2025 with two winners.

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Feb 01

Daily Brief Financials: Ascot Corp, Banco De Sabadell SA, NSE Nifty Bank Index, Samsung Fire & Marine Insurance, S&P/ASX 200, ZKsync, Resona Holdings, Orient Corp and more

By Smartkarma Daily Briefs | Daily Briefs, Financials

In today’s briefing:

Daito Trust Buys Out Listed Private Co Ascot (3264 JP) – Small Done Deal at ¥260
Ascot Corp (3264 JP): Daito Trust Construction (1878 JP)’s Tender Offer a Done Deal
Sabadell’s Dividend Strategy and the BBVA Takeover Bid
EQD | NSE Nifty Bank Index – Implied Volatility Not (Yet) Rich Enough.
Top 10 Korean Stock Picks Bi-Weekly (3 February 2025)
EQD | Global Option Implied Volatility – Option Opportunities Across the Regions
EQD | S&P/ASX 200 Option Strategy – Today’s All-Time-High Calls for Proactive Hedging
ZKsync & The Elastic Network Endgame
Resona Holdings (8308 JP) – Positive 3QFY24 Results
Orient Corp (8585 JP): Q3 FY03/25 flash update

Daito Trust Buys Out Listed Private Co Ascot (3264 JP) – Small Done Deal at ¥260

Ping An Insurance bought into a small Tokyo-based condo developer in 2017 at ¥255/share. In 2020, it reinvested on the dip with SBI at ¥155/share.
Ping An and SBI started with zero shares. By 2020 they had 80+% of shares. Now they are selling out to Daito Trust Construct (1878 JP).
This is a done deal at a slight premium to book value. Daito Trust buys Real Estate Available for Sale and assumes debt. That’s it. Easy peasy done deal.

Ascot Corp (3264 JP): Daito Trust Construction (1878 JP)’s Tender Offer a Done Deal

By Arun George

Ascot Corp (3264 JP) announced a tender offer from Daito Trust Construct (1878 JP) at JPY260 per share, a 20.4% premium to the last close.
Ascot currently does not meet the 25% tradeable share ratio criterion. The offer is attractive compared to historical trading ranges but below the mid-point of the IFA DCF valuation range.
This is a done deal, as irrevocables represent an 82.78% ownership ratio, well above the minimum acceptance condition (67.86% ownership ratio).

Sabadell’s Dividend Strategy and the BBVA Takeover Bid

By Jesus Rodriguez Aguilar

Sabadell plans a €500 million share buyback to maintain stock value, reducing the attractiveness of BBVA’s exchange offer and increasing shareholder resistance to the takeover.
Regulatory scrutiny intensifies as BBVA-Sabadell would control 39.63% of Catalonian banking credit, raising competition concerns, particularly in SME lending and payment services.
The market expects BBVA to raise its offer by 10-20%, but BBVA’s CEO insists there is “no room” for improvement, making shareholder approval uncertain.

EQD | NSE Nifty Bank Index – Implied Volatility Not (Yet) Rich Enough.

By Gaudenz Schneider

NSE Nifty Bank Index implied volatility could be seen as rich when compared to its own history and in comparison to realized volatility.
Putting implied volatility into context with the NSE Nifty Bank Index 200 day moving average will lead to a different conclusion. Selling volatility might not be the opportunity it seems.
This Insight provides a quantitative indication at which level implied volatility can be assessed as rich.

Top 10 Korean Stock Picks Bi-Weekly (3 February 2025)

By Douglas Kim

In this insight, we provide the top 10 stocks picks in the Korean stock market for the two weeks starting 3 February.
The top 10 stock picks include Orion Holdings, OCI Holdings, Hana Tour Service, Hyundai Motor, KT Corp, Samsung F&M Insurance, Korean Air, Hankook T&T, Young Poong, and NICE Info Service.
Our top 10 Korean stock picks from 17 to 31 January are up on average 2.6%, outperforming KOSPI which is down 0.1% in the same period.

EQD | Global Option Implied Volatility – Option Opportunities Across the Regions

By Gaudenz Schneider

Global option markets present a diverse picture, offering a broad opportunity set.
Several markets make for good hedging-candidates after a strong January and amid cheap options.
Although several Indian indices show high implied volatility, contextual analysis indicates volatility may be fairly priced relative to their bear trends.

EQD | S&P/ASX 200 Option Strategy – Today’s All-Time-High Calls for Proactive Hedging

By Gaudenz Schneider

Today, the S&P/ASX 200 (AS51 INDEX) reached a new all-time high while implied volatility is near record low levels. The combination makes for a good opportunity to hedge.
Volatility assessment trough conventional volatility metrics and one new chart not seen anywhere else.
An actionable example of a put option hedge is presented, striking a balance between protection and cost.

ZKsync & The Elastic Network Endgame

By Delphi Digital

This consulting report explores ZKsync’s transformation from a Layer 2 scaling solution into the Elastic Network, a groundbreaking ecosystem of interoperable ZK Chains positioned to revolutionize institutional blockchain adoption.
With Bitcoin ETF inflows exceeding $30B and major players like BlackRock embracing blockchain technology, 2024 has marked unprecedented institutional interest in crypto.
However, widespread adoption faces two key challenges: blockchain fragmentation and the inability of public networks to meet institutional requirements for privacy and compliance.

Resona Holdings (8308 JP) – Positive 3QFY24 Results

By Victor Galliano

Resona’s 3QFY24 results confirm that it is well geared to higher interest rates in Japan, with its high floating rate loan exposure, low LDR and high BoJ cash balance
In addition, management is executing effectively to deliver revenue growth well ahead of opex growth, and NPL trends continue to improve, resulting in sharply lower cost of risk
Resona’s equity holdings value to market cap ratio is 36%, the highest of the six biggest Japanese banks by market cap; management is actively divesting holdings to free up capital

Orient Corp (8585 JP): Q3 FY03/25 flash update

Operating revenue rose by JPY13.9bn (+8.2% YoY) to JPY182.5bn, driven by core business growth and new subsidiaries.
Operating expenses increased JPY15.4bn (+9.7% YoY) to JPY174.0bn, mainly due to higher SG&A and financing expenses.
Recurring profit decreased JPY1.6bn (-15.8% YoY) to JPY8.5bn, with net income impacted by income tax adjustments.

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Feb 01

Daily Brief Health Care: Blue Jet Healthcare Ltd, Metsera, Sigachi Industries , 23andMe Holding Co, Maze Therapeutics, Olba Healthcare Holdings, Stryker Corp, Chugai Pharmaceutical, Jcr Pharmaceuticals, Lexicon Pharmaceuticals and more

By Smartkarma Daily Briefs | Daily Briefs, Healthcare

In today’s briefing:

The Beat Ideas: Blue Jet Healthcare- Rising CDMO Player
Metsera Inc (MTSR): GLP-1 Boom Comes to the IPO Market with Explosive Debut
The Beat Ideas: Sigachi Industries- High Growth, Revenue Diversification, New Category Launch
23andMe On The Brink? Exploring a Potential Sale Amid Financial Struggles!
Maze Therapeutics (MAZE): Upsized IPO Slumps in the Aftermarket
Olba Healthcare Holdings (2689 JP): 1H FY06/25 flash update
Stryker Corporation: Leveraging Mako Robotic-Assisted Surgeries To Redefine the Industry! – Major Drivers
Chugai Pharmaceutical (4519 JP): Export Drives 2024 Result; Slower Growth Expected In 2025
JCR Pharmaceutical (4552 JP): Sluggish 9MFY25 Performance, Guidance Revised Downward
Lexicon’s FDA Rejection, Layoffs, and Nasdaq Delisting Threat: Can It Get Acquired?

The Beat Ideas: Blue Jet Healthcare- Rising CDMO Player

By Sudarshan Bhandari

Blue Jet Healthcare Ltd (BJHC IN) is a science-led pharmaceutical company that has evolved into a strategic partner for the CDMO of advanced Pharmaceutical Intermediates and APIs.
Company gave a record breaking Q3FY25 primarily driven by capacity expansion in Contrast media and PI Segment. Strong demand for the cardiovascular product was also witnessed.
Company commissioned an additional manufacturing block during Q3 FY25 at Ambernath for manufacturing Advance Contrast Media with investment around Rs. 100Mn.

Metsera Inc (MTSR): GLP-1 Boom Comes to the IPO Market with Explosive Debut

Metsera (MTSR US), a biotech using peptides to treat obesity, overweight and related conditions opened 41.7% above the issue price.
The company was seeking a specific cash-raise of $275 million and was not looking to allow further dilution.
IPOs in the biotech sector are a “sell-the-news” event until we see on the tape otherwise.

The Beat Ideas: Sigachi Industries- High Growth, Revenue Diversification, New Category Launch

By Sudarshan Bhandari

Sigachi Industries (SIGACHI IN) has increased MCC capacity to 21,700 MTPA and expects to achieve 80-90% utilization by Q4 FY27 from 50% utilization in Q4FY25.
Sigachi is increasing its focus on the API segment, with a target of 20-25% revenue contribution in next 2-3 yrs and further expanding to 35-40% of revenue in 3-5 Yrs.
Sigachi is introducing new product lines including pharmaceutical coatings like PureCoat and UltraMod and plans to commercialize Croscarmellose Sodium (CCS) by FY26 to enhance drug stability and bioavailability.

23andMe On The Brink? Exploring a Potential Sale Amid Financial Struggles!

23andMe’s recent earnings report reveals a period of significant transition and strategic refocus for the company, characterized by financial adjustments, business restructuring, and an evolving operational strategy.
These developments present a nuanced view of the company’s current state and future potential in the health genetics and consumer genomics sector.
On the positive side, 23andMe reported strides in its overarching goal to achieve cash-flow positivity.

Maze Therapeutics (MAZE): Upsized IPO Slumps in the Aftermarket

Maze Therapeutics (MAZE US) upsized its transaction but saw its IPO price dip below issue on day one.
A critical piece of information, price guidance, was missing from the final channel check sending a warning message to the market.
With the lack of enthusiasm for this IPO during its first session, we would encourage investors to exercise caution on this IPO in the aftermarket.

Olba Healthcare Holdings (2689 JP): 1H FY06/25 flash update

The company’s sales and profits are concentrated in Q3 due to medical equipment deliveries to public institutions.
Medical Devices and Consumables segment sales rose 7.6% YoY, driven by consumables and strategic regional sales activities.
SPD business sales increased 9.8% YoY, with operating profit up 5.3% YoY, despite rising SG&A expenses.

Stryker Corporation: Leveraging Mako Robotic-Assisted Surgeries To Redefine the Industry! – Major Drivers

Stryker Corporation reported strong financial performance in its fourth quarter of 2024 and the full fiscal year, demonstrating resilience and robust growth across its business segments.
The company’s organic sales growth exceeded 10% for both periods, with U.S. sales growth at 10.6% and international sales at 8.8%.
Key drivers included double-digit growth in the Instruments, Endoscopy, Medical, Neuro Cranial, and Trauma and Extremities businesses.

Chugai Pharmaceutical (4519 JP): Export Drives 2024 Result; Slower Growth Expected In 2025

By Tina Banerjee

Chugai Pharmaceutical (4519 JP) announced stellar performance in 2024, with revenue, operating profit, and net income exceeded revised forecasts, all reaching record highs.
Export of Hemlibra to Roche increased 45% YoY to ¥304B. Roche is seeing strong uptake of Hemlibra in Europe, where the drug reported double-digit growth.
Chugai guided for 2% revenue growth in 2025. Domestic sales are expected to remain flat, while overseas sales are expected to increase 4%. Bottomline to outpace revenue growth.

JCR Pharmaceutical (4552 JP): Sluggish 9MFY25 Performance, Guidance Revised Downward

By Tina Banerjee

Jcr Pharmaceuticals (4552 JP) revenue dropped 23% to ¥26B during 9MFY25, dragged by lower contractual payments. With higher R&D and SG&A expenses, the company reported operating loss of ¥754M.
FY25 Guidance has been revised downwards with revised sales now stands at ¥39B. While product sales remain largely on track, income from contractual payment was revised downward.
The heavy dependence on one major product and no major product launch lined up anytime soon poses as a negative on the company’s prospects in near future.

Lexicon’s FDA Rejection, Layoffs, and Nasdaq Delisting Threat: Can It Get Acquired?

Lexicon Pharmaceuticals, a biopharmaceutical company focused on developing treatments for serious diseases, recently shared their third-quarter 2024 financial results and provided business updates.
Among their key areas of activity are their drug programs including INPEFA, ZYNQUISTA, LX9211, and LX9851.
This quarter marked significant developments for Lexicon as they continued their strategic initiatives and focused on advancing their pipeline.

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Feb 01

Daily Brief Consumer: Royal Caribbean Cruises, Cota Co Ltd, General Motors, Kimberly Clark, Starbucks Corp, Sysco Corp, Chori Co Ltd, Vince Holding and more

By Smartkarma Daily Briefs | Consumer, Daily Briefs

In today’s briefing:

Royal Caribbean: An Analysis Of Its Expansion into River Cruising & Other Major Drivers
Cota Co Ltd (4923 JP): Q3 FY03/25 flash update
General Motors (GM): Its Electric Vehicle Transition Is A Double-Edged Sword! – Major Drivers
Kimberly-Clark: Market Focus & Expansion Strategies As A Primary Growth Accelerator! – Major Drivers
Starbucks’ Sales Decline
Sysco Corporation: Will It Be Able To Capitalize International Growth Opportunities? – Major Drivers
Chori Co Ltd (8014 JP): Q3 FY03/25 flash update
VNCE: Snapping the Store: Bringing Light to End of Winter; Reiterate Buy, $6 PT

Royal Caribbean: An Analysis Of Its Expansion into River Cruising & Other Major Drivers

Royal Caribbean Group recently reported strong financial results for the fourth quarter and the full year of 2024.
Their performance reflected growth in net yields and operating cash flow, achieving their financial goals ahead of schedule.
Their exceptional customer satisfaction scores and robust cash generation highlight successful execution amidst a recovering travel industry.

Cota Co Ltd (4923 JP): Q3 FY03/25 flash update

Sales reached JPY7.4bn (+1.7% YoY), with strong performance from new hair styling products, despite a decline in toiletries.
Operating profit was JPY1.7bn (-6.2% YoY), impacted by increased costs in talent acquisition, development, and capital expenditures.
Revised FY03/25 forecasts: Sales JPY9.3bn, operating profit JPY1.8bn, due to lower sales expectations and higher expenses.

General Motors (GM): Its Electric Vehicle Transition Is A Double-Edged Sword! – Major Drivers

General Motors Company (GM) presented its financial results for the fourth quarter and calendar year of 2024, showcasing a series of strategic decisions and market maneuvers that paint a complex picture for potential investors.
On the positive side, GM achieved significant growth with a 9% increase in full-year revenue, reaching $187 billion.
The company marked a strong presence in the U.S. by becoming the leader in retail, fleet, and total sales, and it reported record figures in EBIT-adjusted, adjusted automotive free cash flow, and EPS diluted adjusted.

Kimberly-Clark: Market Focus & Expansion Strategies As A Primary Growth Accelerator! – Major Drivers

Kimberly-Clark reported its fourth quarter and full-year 2024 results, highlighting several key elements that provide insight into the company’s current positioning and future prospects.
The company unveiled its Powering Care transformation strategy, which restructures its organization into three main segments, aiming for optimized growth and efficiency.
This structure hopes to foster an environment conducive to volume and mix-driven growth, targeting expansion ahead of its market categories.

Starbucks’ Sales Decline

Starbucks Corporation recently reported its first-quarter fiscal year 2025 results, revealing key insights into its current business performance and strategic direction.
The company registered revenue of $9.4 billion, a result that was flat compared to the previous year.
This came alongside a 4% decline in global comparable store sales, a global operating margin of 11.9%, and an earnings per share (EPS) of $0.69.

Sysco Corporation: Will It Be Able To Capitalize International Growth Opportunities? – Major Drivers

The latest quarter’s performance for Sysco Corporation showcases a mixed but generally positive period, featuring multiple elements contributing to both growth and challenges.
Sysco reported total revenue exceeding $20 billion, marking a 4.5% year-over-year growth, exceeding expectations when compared to the previous quarter.
This growth was predominantly driven by U.S. Foodservice volume growth of 1.4% and a seemingly moderate inflation rate of 2.1%.

Chori Co Ltd (8014 JP): Q3 FY03/25 flash update

By Small Cap Consumer Research

Sales declined 1.3% YoY to JPY230.3bn, with Chemicals and Machinery segments experiencing significant drops in sales.
Pre-tax interim profit rose 6.7% YoY to JPY12.7bn, aided by bad debt reversals and investment gains.
Chori invested in PT. TAKAHA MULTICHEM INDONESIA, acquiring a 21% stake to expand in Indonesia’s cosmetics market.

VNCE: Snapping the Store: Bringing Light to End of Winter; Reiterate Buy, $6 PT

We are reiterating our Buy rating, $6 price target and projections after visiting Vince stores in Connecticut, Long Island and New Jersey.
We believe, after the end of season sale and on the cusp of Spring, Vince is well positioned to continue to drive strong results, with solid fashion offerings, strong inventory position, lower discounting and a continued focus on expanding men’s and other key categories, with current success in belts, winter accessories and small leather goods.
As such, and with new management joining the company next month, we reiterate our Buy rating and $6 price target for VNCE.

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Feb 01

Most Read: Fast Retailing, Sigma Healthcare, Areit (AyalaLand REIT), Global Food Creators, Takeda Pharmaceutical, Hanwha Ocean , Taiwan Semiconductor (TSMC) – ADR, Sanyo Special Steel, Ascot Corp and more

By Smartkarma Daily Briefs | Daily Briefs, Most Read

In today’s briefing:

Fast Retailing (9983) Capping Decision This Week – Single or Double Dose?
Fast Retailing (9983 JP): Double Capping & The Reverse Funding Trade
Sigma Healthcare (SIG AU): Shareholders Approve Merger; Passives Could Start Buying in Two Weeks
PCOMP Index Rebalance: AREIT, CBC to Replace NIKL, WLCON
Global Foods Creators (7559) – Another Stupidly Cheap MBO With Rigged DCF
Takeda Pharma (4502) – Strong Results
SOL Shipbuilding Top 3 ETF Throws off Some Serious Flow Trading Plays with Plenty of Juice
Taiwan Tech Weekly: How Apple Helped TSMC Become #1; Also Morris Chang Comments on TSMC ADR Premium
Nippon Steal! Again. Parent Takes Out Sanyo Special Steel (5481) At Well Below Book
Ascot Corp (3264 JP): Daito Trust Construction (1878 JP)’s Tender Offer a Done Deal

Fast Retailing (9983) Capping Decision This Week – Single or Double Dose?

Unless Fast Retailing (9983) underperforms Nikkei 225 by 10% by Friday close, there will be a capping exercise at the next Nikkei 225 Rebalance at the end of March 2025.
The evolution of tech stock movement in Japan in the next day or three is important to watch. There will be effects.
The setup very near-term could be pretty interesting, and worth watching.

Fast Retailing (9983 JP): Double Capping & The Reverse Funding Trade

By Brian Freitas

With 3 days left in the review period, Fast Retailing (9983 JP) has a 11.29% weight in the Nikkei 225 (NKY INDEX). That means double capping in March.
If Fast Retailing (9983 JP) underperforms the other index stocks by 1.8% from now to the close on 31 January, there will only be a single level of capping.
Double capping will result in big selling on Fast Retailing (9983 JP) and big inflows into the other index constituents. Smaller impact for single level capping.

Sigma Healthcare (SIG AU): Shareholders Approve Merger; Passives Could Start Buying in Two Weeks

By Brian Freitas

Sigma Healthcare (SIG AU) and Chemist Warehouse (CWG) shareholders have approved the merger with 99.86% and 100% of the votes cast in favour.
The Second Court Hearing is on 3 February and the merger will be implemented on 12 February, which is when the passive buying could commence.
Sigma Healthcare has continued to trade higher on a record margin and sales expansion for CWG and expected passive buying that could top A$3bn over the next few months.

PCOMP Index Rebalance: AREIT, CBC to Replace NIKL, WLCON

By Brian Freitas

As forecast, Areit (AyalaLand REIT) (AREIT PM) and China Banking (CBC PM) will replace Nickel Asia (NIKL PM) and Wilcon Depot (WLCON PM) in the Philippines Stock Exchange PSEi Index.
Passive trackers will need to buy between 14-44 days of ADV in the adds while selling between 17-54 days of ADV in the deletes.
The stocks have already moved a lot over the last few months and positioning has built up over that period. There could still be outperformance ahead of the passives trading.

Global Foods Creators (7559) – Another Stupidly Cheap MBO With Rigged DCF

Today after the close, Global Food Creators (7559 JP) announced that the CEO would sell his 1.23% of the company into an MBO by a company he set up.
The family company which owns 27%, and he would fund the takeover of the other 73% with 1% equity taken from his share sale, and 99% bank loans.
The TOB is at 0.65x book for a cash-rich company. Liquidate the cash and the rest is being taken over at 0.33x book. Aaaaargh.

Takeda Pharma (4502) – Strong Results

Today Takeda Pharmaceutical (4502 JP) announced earnings which will mean last year was the trough, not this year. The pipeline looks OK too.
The company also announced a ¥100bn buyback and a change of CEO. The buyback has a big number, but it isn’t particularly exciting.
All in all, there’s positive news here, but it is all much of a muchness, but as it is a nine-figure buyback in 3mos, we take a look.

SOL Shipbuilding Top 3 ETF Throws off Some Serious Flow Trading Plays with Plenty of Juice

By Sanghyun Park

This 20% reversion and 30% cap setup creates solid flow trades. With just 13 holdings, SOL ETF’s weight swings hard—Hanwha Ocean’s already pushing 27% post-rebal.
Constituent changes drive the biggest dislocations—still the main setup. “The other 10” names are FICS-screened by market cap (May/Nov cut), making rotations fairly predictable.
With AUM only ramping recently, this ETF is still in price discovery mode. Pre-positioning ahead of flows has juice, making it a prime target for aggressive flow trading.

Taiwan Tech Weekly: How Apple Helped TSMC Become #1; Also Morris Chang Comments on TSMC ADR Premium

By Vincent Fernando, CFA

PC Monitor: Snapdragon’s Surge, AMD’s Gains, Intel’s Test; Long Asus & Dell
Memory Monitor: Is DeepSeek a Problem for SK Hynix & Micron’s HBM DRAM Growth?
TSMC (2330.TT; TSM.US): Earthquake Impact Limited; Setting Newest Production Line Not Viable in US.

Nippon Steal! Again. Parent Takes Out Sanyo Special Steel (5481) At Well Below Book