Smartkarma Daily Briefs, Author at Smartkarma

Jun 01

Daily Brief ESG: China Vanke – ESG Report – Lucror Analytics and more

By Smartkarma Daily Briefs | Daily Briefs, ESG

In today’s briefing:

China Vanke – ESG Report – Lucror Analytics

China Vanke – ESG Report – Lucror Analytics

By Leonard Law, CFA

Lucror Analytics’ ESG Scores are based on a 3-tiered scale and are adjusted for Controversies (if applicable).
We assess China Vanke’s ESG as “Adequate”. The company has “Adequate” scores for all three pillars. Controversies are “Immaterial” and Disclosure is “Strong”.

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Jun 01

Daily Brief Thematic (Sector/Industry): #5 India Insights: JSW Steel New Product and more

By Smartkarma Daily Briefs | Daily Briefs, Thematic (Sector/Industry)

In today’s briefing:

#5 India Insights: JSW Steel New Product, Adani-Japan May Tie Up, FII Shorts, India GDP
US EV Charging Infrastructure Tracker: Update – May 2024
#9Business Buzz: Temu Under EU’s Scrutiny, Tesla Recalls Vehicles, Court Eases UniCredit Restriction
AUCTUS ON FRIDAY – 31/05/2024

#5 India Insights: JSW Steel New Product, Adani-Japan May Tie Up, FII Shorts, India GDP

By Sudarshan Bhandari

JSW launches coated steel product to substitute imports which has market of INR 2200 crore
Adani may tie up with Japan for renewable energy post-meeting between officials
FII short position highest before election results; India Q4 GDP beat analyst estimates

US EV Charging Infrastructure Tracker: Update – May 2024

By Garvit Bhandari

Total public EV charging stations (incl. temporary unavailable locations) were 69,157 as of May 30, 2024. Compared to the end of FY23, it is an increase of 7.0%.
Total EVSE charging ports (including the temporary unavailable ports) were184,771, up nearly 9.7% compared to the end of 2023 and up 1.2% over April 2024.
Compared to China, US still lags far behing in terms of EV infrastructure. China had 2.7 million EV charging stations at the end of 2023.

#9Business Buzz: Temu Under EU’s Scrutiny, Tesla Recalls Vehicles, Court Eases UniCredit Restriction

By Nimish Maheshwari

EU adds Temu to highest digital scrutiny tier due to risks like counterfeit goods and IP violations
Tesla recalls multiple models due to seat belt warning system flaw; plans software update in June
Russian court permits UniCredit to use Russian bonds as collateral, softening prior asset seizure terms

AUCTUS ON FRIDAY – 31/05/2024

By Auctus Advisors

Arrow Exploration (AXL LN/AXL CN)C; target price of £0.65 per share: All eyes on the first horizontal well at Carrizales Norte – The 1Q24 production of 2,730 boe/d was close to our expectations.
Arrow’s cash position of US$11.6 mm was also in line.
The first water disposal well at RCE is being brought into production and the conversion of the CN-4 well is currently waiting regulatory approval.

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Jun 01

Daily Brief ECM: Bloks Group Pre-IPO Tearsheet and more

By Smartkarma Daily Briefs | Daily Briefs, ECM

In today’s briefing:

Bloks Group Pre-IPO Tearsheet
CaiNiao Q4FY Results: After IPO Withdrawn, Margins Fell | Retention Payments, or Something Else?
Jiangxi Rimag IPO (2522.HK): Global Offering and Valuation Update

Bloks Group Pre-IPO Tearsheet

By Clarence Chu

Bloks Group (1850960D CH) is looking to raise US$300m in its upcoming Hong Kong IPO. The bookrunners on the deal are Goldman Sachs, and Huatai International.
Bloks Groups (Bloks) operates in the toy segment where it primarily assembles character toys. Its portfolio contains both self-developed and renowned licensed intellectual property (IPs).
According to F&S, Bloks was China’s largest player in the assembly character toy segment with an approximate gross merchandise value (GMV) of RMB1.8bn in 2023.

CaiNiao Q4FY Results: After IPO Withdrawn, Margins Fell | Retention Payments, or Something Else?

By Daniel Hellberg

After CaiNiao halted IPO in late March, company reported lower Q4 margins
What drove Q4 margin deterioration, retention payments or weaker X-border?
With IPO off the table, supporting AliExpress becomes CaiNiao’s main role

Jiangxi Rimag IPO (2522.HK): Global Offering and Valuation Update

By Andrei Zakharov

Jiangxi Rimag Group, a China-based medical imaging center operator and provider of Rimag cloud services, set terms for an IPO and plans to raise ~HK$280M (~$36M) in Hong Kong.
The IPO is expected to be between HK$14.60 and HK$16.80. At the midpoint of the range, Jiangxi Rimag will have a market value of ~HK$5.6B based on 356.3M outstanding shares.
CITIC Securities is leading the offering. CMB International and Huatai International act as joint global coordinators, joint bookrunners and joint lead managers.

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Jun 01

Daily Brief Event-Driven: SG Holdings to Launch TOB on C&F Logistics (9099) At A Whopping ¥5 and more

By Smartkarma Daily Briefs | Daily Briefs, Event-Driven

In today’s briefing:

SG Holdings to Launch TOB on C&F Logistics (9099) At A Whopping ¥5,740/Share – HUGE Governance Win
GAPack (468 HK): Shandong Xinjufeng Offer Progesses
Infocom (4348 JP): Blackstone’s Rumoured JPY260bn Bid to Acquire Teijin’s Stake
End of Mandatory Lock-Up Periods for 45 Companies in Korea in June 2024
Chilled & Frozen Logistics (9099 JP): SG Holdings’ Stunning JPY5,740 Offer
Hot Topic Among Local Institutions in Recent Days: Utilizing COE in Value-Up Investing
Quiddity JPX-Nikkei 400 Rebal 2024: End-May 2024 Estimates

SG Holdings to Launch TOB on C&F Logistics (9099) At A Whopping ¥5,740/Share – HUGE Governance Win

By Travis Lundy

Chilled & Frozen Logistics Holdings (9099 JP) was near an all-time high in late March when it closed at ¥2,041 the day AZ-Com Maruwa Holdings (9090 JP) bid ¥3,000/share.
That was hostile, and C&F’s Board reacted swiftly, looking for a market check and competitive process. It got one. It was VERY successful in getting the best bid.
SG Holdings (9143 JP) has bid ¥5,740 – a very full multiple and 91% higher than AZ-Com’s price. I don’t expect an overbidder. Huge governance win for Japan minorities.

GAPack (468 HK): Shandong Xinjufeng Offer Progesses

By David Blennerhassett

On the 9th May, Shandong Xinjufeng (301296 CH) (XJF) made a pre-conditional voluntary general Offer at $2.65/share (best & final), contingent on a 50% acceptance. Final/special dividends to be added.
GAPack(468 HK) has made it clear that XJF is a competitor of GAPack. And Mengniu (2319 HK) may review its relationship if pre-cons are satisfied/waived; or the Offer gets up.
XJF has announced the necessary applications have been sent to NDRC, MoC, and SAMR; and it prepping for a shareholder meeting to approve the Offer.

Infocom (4348 JP): Blackstone’s Rumoured JPY260bn Bid to Acquire Teijin’s Stake

By Arun George

Bloomberg reports that Blackstone (BX US) has agreed to acquire Teijin Ltd (3401 JP)’s 55% stake in Infocom Corp (4348 JP) at a rumoured valuation of JPY260 billion.
The potential minority offer price depends on whether the rumoured valuation refers to market cap or enterprise value and whether Teijin will share TOB tax benefits.
The most likely scenario is that the valuation refers to the market cap, with Teijin sharing TOB tax benefits, resulting in a minority offer of around JPY5,720 per share.

End of Mandatory Lock-Up Periods for 45 Companies in Korea in June 2024

By Douglas Kim

We discuss the end of the mandatory lock-up periods for 45 stocks in Korea in June 2024, among which 5 are in KOSPI and 40 are in KOSDAQ.
These 45 stocks on average could be subject to further selling pressures in June and could underperform relative to the market.
The top three market cap stocks including those of which at least 1% of outstanding shares could be sold in June include Hanwha Ocean, LS Materials, and Komico.

Chilled & Frozen Logistics (9099 JP): SG Holdings’ Stunning JPY5,740 Offer

By Arun George

Chilled & Frozen Logistics Holdings (9099 JP) has recommended SG Holdings (9143 JP)’s JPY5,740 tender offer, a 91.3% premium to AZ-Com Maruwa Holdings (9090 JP)’s JPY3,000 hostile offer.
SG Holdings’ offer premium is stupendous. However, the offer values C&F at a CY2024 EV/EBITDA of 27.2x vs. Alps Logistics (9055 JP) offer at a CY2024 EV/EBITDA of 29.2x.
The Board deserves credit. AZ-COM Maruwa is unlikely to engage in a bidding war as SG Holding’s offer has the Board’s recommendation and comes with a hefty takeover premium.

Hot Topic Among Local Institutions in Recent Days: Utilizing COE in Value-Up Investing

By Sanghyun Park

Local institutional investors were disappointed Kiwoom omitted COE from their value-up disclosure. They seek clearer plans to address low-yield assets and reduce COE.
Rapidly rising interest in COE among local institutional investors is now shaping the screening criteria for the Korea Exchange’s value-up index, possibly using COE as a primary factor for inclusion.
Competition likely centers on selecting and weighting stocks, including those beyond KOSPI 200. Key metric: COE linked with ROE.

Quiddity JPX-Nikkei 400 Rebal 2024: End-May 2024 Estimates

By Janaghan Jeyakumar, CFA

JPX-Nikkei 400 is composed of common stocks listed on the Tokyo Stock Exchange. It is a free-float-adjusted market-value-weighted (capped) index composed of 400 constituents.
A periodic review is conducted by the Index providers, the JPX Group and Nikkei Inc, in August every year. We look at the rankings of the potential ADDs/DELs every month.
In this insight, we take a look at potential ADDs/DELs for the JPX-Nikkei 400 index rebal event to come in August 2024 based on trading data as of end-May 2024.

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Jun 01

Daily Brief Equity Bottom-Up: Xinyi Glass (868): Beneficiary of Chinese RE Rejuvenation and more

By Smartkarma Daily Briefs | Daily Briefs, Equity Bottom-Up

In today’s briefing:

Xinyi Glass (868): Beneficiary of Chinese RE Rejuvenation
Indian Companies Are Betting on Booming Capital Markets with Unplanned Fund Raisings
PDD Holdings: Will The Focus On Agricultural Strategy Convert Into Positive Revenue Growth? – Major Drivers
Chang Hwa Commercial Bank – April Monthly Profit Figures Suggest Slowing Growth
Baba’s Babies: They’re All Grown Up!: Alibaba Health (241 HK) Temperature’s Rising!
Qualcomm. Watch This Space…
Taiwan Tech Weekly: Computex & Apple WDC Imminent; Apple Releasing New AI Voice Interface for IPhone
NVIDIA Corporation: On Track To Become The World’s Largest Company With Enhanced AI Capabilities? – Major Drivers
Oki Electric Industry (6703): Full-Year FY03/24 Update
Zoom Video Communications: A Story Of Continued Growth in Enterprise Customer Base! – Major Drivers

Xinyi Glass (868): Beneficiary of Chinese RE Rejuvenation

By Henry Soediarko

The majority of its revenue comes from selling float glass, which is used in buildings and construction.
The Chinese government has started home ownership relaxation that will reinvigorate the real estate market.
It is still trading at 67% lower to 3 years ago.

Indian Companies Are Betting on Booming Capital Markets with Unplanned Fund Raisings

By Nimish Maheshwari

With Indian capital markets booming, companies are tapping capital markets regularly for fundraising even though they have recently raised funds.
There are also cases where company after concluding IPO in recent years are going for fund raise
The market are jittery about possible equity dilution and unclear fund raising objectives

PDD Holdings: Will The Focus On Agricultural Strategy Convert Into Positive Revenue Growth? – Major Drivers

By Baptista Research

PDD Holdings Inc., an innovative online retail company based in China, seems to show a strong future trajectory based on its first quarter 2024 earnings conference call.
The company surpassed its year-on-year growth with total revenue reaching RMB 86.8 billion, marking a 131% increase.
This impressive growth serves as a testament to PDD Holdings’s efforts to deepen its access and widely influence the consumer market.

Chang Hwa Commercial Bank – April Monthly Profit Figures Suggest Slowing Growth

By Daniel Tabbush

April monthly data on pre-tax income shows slowing YoY growth compared with YTD growth
NIM pressure was severe in past six months and this can be a key driver of less profit growth
Credit costs in decline supported net profit delta, but this may not longer be sustainable

Baba’s Babies: They’re All Grown Up!: Alibaba Health (241 HK) Temperature’s Rising!

By David Mudd

Alibaba Health Information Tec (241 HK) operates an online platform for healthcare services and products. Post COVID the company has maintained and grown it the online healthcare market.
The company which is 53%-owned by Alibaba Group Holding (9988 HK) , recently reported results for 2023 which beat analyst estimates, recording a 65% increase in net profit.
The company recently bought AJK Technology from Taobao which gives Ali Health operational rights for advertising of online healthcare merchants on Tmall (Alimama).

Qualcomm. Watch This Space…

By William Keating

Automotive revenues for Q1CY24 amounted to $603 million, up 35% YoY. This compares to MobilEye’s revenue of $239 million, down 48% YoY
Automotive design-win pipeline is now $45 billion, up from $30 billion less than two years ago
CEO Amon said “Every time we enter a new market, we end up building a very strong position”. That’s a shot across the bows for Intel and AMD…

Taiwan Tech Weekly: Computex & Apple WDC Imminent; Apple Releasing New AI Voice Interface for IPhone

By Vincent Fernando, CFA

Market Largely Influenced by Macro Trends and Nvidia Movements This Past Week
Key Events: Computex, Apple WDC, Key Taiwan May Revenue Releases
Apple (AAPL US) Is Overhauling Siri In Order to Create a Beautiful Voice-based AI Interface for the iPhone

NVIDIA Corporation: On Track To Become The World’s Largest Company With Enhanced AI Capabilities? – Major Drivers

By Baptista Research

NVIDIA Corporation is on track to become the largest company in the world, purely on the basis of its leadership in the artificial intelligence (AI) and graphics processing units (GPU).
The company, reported its first quarter earnings of the fiscal year 2025.
The company generated record revenue of $26 billion which is sequentially up by 18% and YoY up by 262%, significantly surpassing its estimated outlook of $24 billion.

Oki Electric Industry (6703): Full-Year FY03/24 Update

By Shared Research

Founded in 1881, Oki Electric Industry Co., Ltd. manufactures electrical and communications equipment, ICT equipment, and systems that utilize these products.
In FY03/24, OKI reported full-year consolidated sales of JPY421.9bn, operating profit of JPY18.7bn, recurring profit of JPY18.3bn, and net income of JPY25.6bn.
OKI Electric Industry Co., Ltd. announced that it expects to record income taxes–deferred in its consolidated and non-consolidated financial results for FY03/24.

Zoom Video Communications: A Story Of Continued Growth in Enterprise Customer Base! – Major Drivers

By Baptista Research

Zoom reported total Q1 revenue of $1.141 billion, a 3% year-on-year increase.
Enterprise revenue, which represented 58% of total revenue, grew 5% year-on-year.
Gross margin was 79.3%, slightly lower than the 80.5% recorded in the same quarter last year due to investments in AI innovation.

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Jun 01

Daily Brief Macro: Portfolio Watch – Adjusting equity and commodity risks as the reflation story stalls and more

By Smartkarma Daily Briefs | Daily Briefs, Macro

In today’s briefing:

Portfolio Watch – Adjusting equity and commodity risks as the reflation story stalls
CrossASEAN Ground Zero – Shopee Express in the CrossHairs, Grab & OpenAI, Cinema XXI, Thai Tariffs
EA Services Inflation Resurgent in May-24
HEW: ECB Can Cut With Crossed Fingers
Malaysia: Net Outflow of FDI and FPI Reflect Basic Haemorrhage of Trust
CX Daily: The Extreme Graft Cases Dealt a Death Sentence Without Reprieve

Portfolio Watch – Adjusting equity and commodity risks as the reflation story stalls

By Andreas Steno

Hello everyone, and welcome back to our weekly portfolio watch, where we shed light on the most important factors driving our Macro and Crypto portfolio over the past week.
Macro Portfolio – Reflation bets have lost momentumWe have been banging the drum on a combination of slightly higher prices and a continuation of the rebound in manufacturing on a more global scale, placing bets in broad commodities and cyclical equities like Materials.
The recent rally in BCOM has however been put to a halt over the past week, and it looks like we are in for a smaller correction in industrial metals, where clustering risks have turned more profound in copper and silver especially, as right about everyone has placed longs in the copper July contract.

CrossASEAN Ground Zero – Shopee Express in the CrossHairs, Grab & OpenAI, Cinema XXI, Thai Tariffs

By Angus Mackintosh

This week we look at Shopee and Lazada as they are investigated for anti-competitive behaviour around logistics, Grab’s OpenAI collaboration, and Cinema XXI (CNMA IJ) as GIC looks to exit.
We also look at the increasing focus by governments around Southeast Asia on cheap imports from China, as Thailand joins the through imposing VAT on low-value products previously exempt.
CrossASEAN Ground Zero is a thematic weekly product that focuses on key Southeast Asian themes and technology trends with a core focus on Indonesia.

EA Services Inflation Resurgent in May-24

By Phil Rush

EA inflation rebounded beyond expectations to 2.6% y-o-y in May, 5bps above our forecast. Services inflation surged to 4.1%, its highest since Oct-23.
The upside news in services was broad-based across member states, albeit partly offset by a lesser rebound in energy prices. The consistency of these surprises raises concerns.
Higher underlying inflation and wage settlements amid falling unemployment are unambiguously hawkish, but the ECB’s data dependence only applies beyond June’s cut.

HEW: ECB Can Cut With Crossed Fingers

By Phil Rush

Resurgent services inflation surpassed expectations in the May flash, increasing the EA headline rate. Additionally, an unexpected drop in the EA unemployment rate and a wage settlement increase make it difficult for the ECB to reduce rates.
The ECB has essentially pre-committed to a rate cut on 6 June, meaning recent developments will likely impact future decisions, potentially leading to a hawkish cut.
The Bank of Canada is also expected to make a rate cut on 5 June, indicating that the ECB will not be the only bank making such a move this week.

Malaysia: Net Outflow of FDI and FPI Reflect Basic Haemorrhage of Trust

By Prasenjit K. Basu

PM Anwar’s effective abandonment of the multi-racial agenda he advocated during his quarter-century in Opposition has led to large net outflows of FPI and FDI, especially in Q1CY24.
The trend weakening of the BoP current account was temporarily reprieved in Q1 by a sharp decline in the incomes deficit. Medium-term challenges still pressure MYR, as FX reserves stagnate.
Cyclical recovery likely to peter out, with structural fiscal deficit at 5.5% of GDP, and scant scope for monetary stimulus. We recommend being Underweight Malaysia, with Penang-linked stocks the exception.

CX Daily: The Extreme Graft Cases Dealt a Death Sentence Without Reprieve

By Caixin Global

Death sentence / Caixin Explains: The extreme graft cases dealt a death sentence without reprieve
Insights /: Currency diversification can coexist with dollar dominance, vice finance minister says
Corruption /: China investigates two more ex-financial overseers for corruption

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Jun 01

Daily Brief South Korea: Hanwha Ocean , Korea Stock Exchange KOSPI 200 and more

By Smartkarma Daily Briefs | Daily Briefs, South Korea

In today’s briefing:

End of Mandatory Lock-Up Periods for 45 Companies in Korea in June 2024
Hot Topic Among Local Institutions in Recent Days: Utilizing COE in Value-Up Investing

End of Mandatory Lock-Up Periods for 45 Companies in Korea in June 2024

By Douglas Kim

We discuss the end of the mandatory lock-up periods for 45 stocks in Korea in June 2024, among which 5 are in KOSPI and 40 are in KOSDAQ.
These 45 stocks on average could be subject to further selling pressures in June and could underperform relative to the market.
The top three market cap stocks including those of which at least 1% of outstanding shares could be sold in June include Hanwha Ocean, LS Materials, and Komico.

Hot Topic Among Local Institutions in Recent Days: Utilizing COE in Value-Up Investing

By Sanghyun Park

Local institutional investors were disappointed Kiwoom omitted COE from their value-up disclosure. They seek clearer plans to address low-yield assets and reduce COE.
Rapidly rising interest in COE among local institutional investors is now shaping the screening criteria for the Korea Exchange’s value-up index, possibly using COE as a primary factor for inclusion.
Competition likely centers on selecting and weighting stocks, including those beyond KOSPI 200. Key metric: COE linked with ROE.

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Jun 01

Daily Brief United States: Qualcomm Inc, NVIDIA Corp, Zoom Video Communications Inc, American International Group, Modine Manufacturing Co, Guess? Inc, Keysight Technologies In, Lowe’s Companies Inc, Metlife Inc, N-able and more

By Smartkarma Daily Briefs | Daily Briefs, United States

In today’s briefing:

Qualcomm. Watch This Space…
NVIDIA Corporation: On Track To Become The World’s Largest Company With Enhanced AI Capabilities? – Major Drivers
Zoom Video Communications: A Story Of Continued Growth in Enterprise Customer Base! – Major Drivers
American International Group (AIG): What Has Been Their Path to Value Creation Post-Financial Crisis? – Major Drivers
Modine Manufacturing Company: Will The Recovery in Heating
GES: 1Q Review; Creating a Powerful Model; Reiterate Buy, $37 PT
Keysight Technologies: Investments in Emerging Technologies and Expansion through Acquisitions! – Major Drivers
Lowe’s Companies: Front-End Transformation and Investment in Technology! – Major Drivers
MetLife Inc.: A Story Of Capital Deployment to Achieve Responsible Growth and Boost Shareholder Value! – Major Drivers
N-able Inc. – Why Is This Communications Player Becoming An Acquisition Target & What Valuation Can It Extract? – Key Drivers

Qualcomm. Watch This Space…

By William Keating

Automotive revenues for Q1CY24 amounted to $603 million, up 35% YoY. This compares to MobilEye’s revenue of $239 million, down 48% YoY
Automotive design-win pipeline is now $45 billion, up from $30 billion less than two years ago
CEO Amon said “Every time we enter a new market, we end up building a very strong position”. That’s a shot across the bows for Intel and AMD…

NVIDIA Corporation: On Track To Become The World’s Largest Company With Enhanced AI Capabilities? – Major Drivers

By Baptista Research

NVIDIA Corporation is on track to become the largest company in the world, purely on the basis of its leadership in the artificial intelligence (AI) and graphics processing units (GPU).
The company, reported its first quarter earnings of the fiscal year 2025.
The company generated record revenue of $26 billion which is sequentially up by 18% and YoY up by 262%, significantly surpassing its estimated outlook of $24 billion.

Zoom Video Communications: A Story Of Continued Growth in Enterprise Customer Base! – Major Drivers

By Baptista Research

Zoom reported total Q1 revenue of $1.141 billion, a 3% year-on-year increase.
Enterprise revenue, which represented 58% of total revenue, grew 5% year-on-year.
Gross margin was 79.3%, slightly lower than the 80.5% recorded in the same quarter last year due to investments in AI innovation.

American International Group (AIG): What Has Been Their Path to Value Creation Post-Financial Crisis? – Major Drivers

By Baptista Research

American International Group Inc. (AIG) reported a solid performance for the first quarter of 2024, showing significant improvements.
Peter Zaffino, the company’s Chairman and CEO, remarked on the steady growth witnessed this year, with the report indicating a 9% year-on-year increase in adjusted after-tax income, seeing it to $1.2 billion or $1.77 per diluted common share.
Some key factors driving this growth include the expansion of AIG’s operations, particularly via its General Insurance underwriting segment, which experienced a 19% year-over-year increase, translating to underwriting income of $596 million in Q1 2024.

Modine Manufacturing Company: Will The Recovery in Heating

By Baptista Research

Modine Manufacturing Company (Modine) reported upbeat performance for its fiscal 2024 with record sales and adjusted EBITDA being noted for the second consecutive year.
Sales increased by 5% to reach $2.4 billion while adjusted EBITDA surged by 48% to $314 million; a significant margin improvement indicating the company’s effective commitment to its 80/20 principle.
Modine successfully shifted its business to targeted markets with growth potential where its innovative solutions are well-regarded, leading to sustainable margins.

GES: 1Q Review; Creating a Powerful Model; Reiterate Buy, $37 PT

By Small Cap Consumer Research

We are reiterating our Buy rating and $37 price target for Guess?
and tweaking and further back-end loading our FY25 and FY26 projections after Guess?
announced 1QFY25 top and bottom line upside, driven by Europe and Domestic wholesale results, as the rag & bone acquisition proved to be a key positive and the company continues to take share in Europe.

Keysight Technologies: Investments in Emerging Technologies and Expansion through Acquisitions! – Major Drivers

By Baptista Research

Keysight Technologies Inc.’s fiscal second-quarter earnings were decent and the company reported solid revenue of $1.2 billion, surpassing the high end of its guidance, with earnings per share of $1.41.
Orders worth $1.2 billion were reported to have aligned with the results of the prior quarter.
The company cited stability and growth in multiple end markets, despite constrained customer spending.

Lowe’s Companies: Front-End Transformation and Investment in Technology! – Major Drivers

By Baptista Research

Lowe’s Companies reported its recent earnings and maintained the company’s expectations for fiscal 2024.
Their first quarter sales were $21.4 billion, with comparable sales down 4.1% from the same period last year.
Despite the continued pressure in DIY big ticket discretionary spending, the company delivered better-than-expected spring seasonal sales.

MetLife Inc.: A Story Of Capital Deployment to Achieve Responsible Growth and Boost Shareholder Value! – Major Drivers

By Baptista Research

MetLife Inc. delivered solid financial results for the first quarter of 2024 with strong top-line growth, consistent execution, and sustained momentum.
The company reported adjusted earnings of $1.3 billion or $1.83 per share, up 20% per share from the prior year period, reflecting a partial rebound in variable investment income led by private equity gains.
Net income for the first quarter was $800 million, taking a sharp rise from $14 million from the prior year period.

N-able Inc. – Why Is This Communications Player Becoming An Acquisition Target & What Valuation Can It Extract? – Key Drivers

By Baptista Research

This is a special one-time report on N-able as the company is receiving tremendous acquisition interest.
The potential for N-able to be acquired is bolstered by several key factors.
First, its strong financial performance and profitable growth model make it an attractive target.

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Jun 01

Daily Brief India: Mankind Pharma, Dixon Technologies India Ltd, Glenmark Pharmaceuticals and more

By Smartkarma Daily Briefs | Daily Briefs, India

In today’s briefing:

Indian Companies Are Betting on Booming Capital Markets with Unplanned Fund Raisings
Dixon Technologies- Forensic Analysis (Update)
Glenmark Pharma- Value Erosion Not Something New

Indian Companies Are Betting on Booming Capital Markets with Unplanned Fund Raisings

By Nimish Maheshwari

With Indian capital markets booming, companies are tapping capital markets regularly for fundraising even though they have recently raised funds.
There are also cases where company after concluding IPO in recent years are going for fund raise
The market are jittery about possible equity dilution and unclear fund raising objectives

Dixon Technologies- Forensic Analysis (Update)

By Nitin Mangal

Dixon Technologies India Ltd (DIXON IN) growth is driven by mobile and EMS segment; majority of other businesses are muted in the last two years.
The company is able to convert earnings to cash quickly but cash yield is close to zero.
The company has reported significant amount of refund liability, but is silent on its accounting policy. Other forensics takeaways include non-reconciliation of asset disposals, high forex risk, etc.

Glenmark Pharma- Value Erosion Not Something New

By Nitin Mangal

Glenmark Pharmaceuticals (GNP IN) FY24 results have seen PBT reducing from INR 2.4 bn to INR 365 mn i.e. by nearly 85%.
This was on account for exceptional line items, which included gains from sale stake in Glenmark Lifesciences, but was offset by losses pertaining to legalities and heavy impairment in assets.
The habit of having exceptional items, especially impairments is not something new or one-offs. There have been regular impairments carried in the past as well.

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Jun 01

Daily Brief China: Greatview Aseptic Packaging, Bloks Group, Xinyi Glass Holdings, Cainiao Smart Logistics Network, PDD Holdings, Alibaba Health Information Tec, China Vanke , Jiangxi Rimag Group and more

By Smartkarma Daily Briefs | China, Daily Briefs

In today’s briefing:

GAPack (468 HK): Shandong Xinjufeng Offer Progesses
Bloks Group Pre-IPO Tearsheet
Xinyi Glass (868): Beneficiary of Chinese RE Rejuvenation
CaiNiao Q4FY Results: After IPO Withdrawn, Margins Fell | Retention Payments, or Something Else?
PDD Holdings: Will The Focus On Agricultural Strategy Convert Into Positive Revenue Growth? – Major Drivers
Baba’s Babies: They’re All Grown Up!: Alibaba Health (241 HK) Temperature’s Rising!
China Vanke – ESG Report – Lucror Analytics
Jiangxi Rimag IPO (2522.HK): Global Offering and Valuation Update

GAPack (468 HK): Shandong Xinjufeng Offer Progesses

By David Blennerhassett

On the 9th May, Shandong Xinjufeng (301296 CH) (XJF) made a pre-conditional voluntary general Offer at $2.65/share (best & final), contingent on a 50% acceptance. Final/special dividends to be added.
GAPack(468 HK) has made it clear that XJF is a competitor of GAPack. And Mengniu (2319 HK) may review its relationship if pre-cons are satisfied/waived; or the Offer gets up.
XJF has announced the necessary applications have been sent to NDRC, MoC, and SAMR; and it prepping for a shareholder meeting to approve the Offer.

Bloks Group Pre-IPO Tearsheet

By Clarence Chu

Bloks Group (1850960D CH) is looking to raise US$300m in its upcoming Hong Kong IPO. The bookrunners on the deal are Goldman Sachs, and Huatai International.
Bloks Groups (Bloks) operates in the toy segment where it primarily assembles character toys. Its portfolio contains both self-developed and renowned licensed intellectual property (IPs).
According to F&S, Bloks was China’s largest player in the assembly character toy segment with an approximate gross merchandise value (GMV) of RMB1.8bn in 2023.

Xinyi Glass (868): Beneficiary of Chinese RE Rejuvenation

By Henry Soediarko

The majority of its revenue comes from selling float glass, which is used in buildings and construction.
The Chinese government has started home ownership relaxation that will reinvigorate the real estate market.
It is still trading at 67% lower to 3 years ago.

CaiNiao Q4FY Results: After IPO Withdrawn, Margins Fell | Retention Payments, or Something Else?

By Daniel Hellberg

After CaiNiao halted IPO in late March, company reported lower Q4 margins
What drove Q4 margin deterioration, retention payments or weaker X-border?
With IPO off the table, supporting AliExpress becomes CaiNiao’s main role

PDD Holdings: Will The Focus On Agricultural Strategy Convert Into Positive Revenue Growth? – Major Drivers

By Baptista Research

PDD Holdings Inc., an innovative online retail company based in China, seems to show a strong future trajectory based on its first quarter 2024 earnings conference call.
The company surpassed its year-on-year growth with total revenue reaching RMB 86.8 billion, marking a 131% increase.
This impressive growth serves as a testament to PDD Holdings’s efforts to deepen its access and widely influence the consumer market.

Baba’s Babies: They’re All Grown Up!: Alibaba Health (241 HK) Temperature’s Rising!

By David Mudd

Alibaba Health Information Tec (241 HK) operates an online platform for healthcare services and products. Post COVID the company has maintained and grown it the online healthcare market.
The company which is 53%-owned by Alibaba Group Holding (9988 HK) , recently reported results for 2023 which beat analyst estimates, recording a 65% increase in net profit.
The company recently bought AJK Technology from Taobao which gives Ali Health operational rights for advertising of online healthcare merchants on Tmall (Alimama).

China Vanke – ESG Report – Lucror Analytics

By Leonard Law, CFA

Jiangxi Rimag IPO (2522.HK): Global Offering and Valuation Update

By Andrei Zakharov

Jiangxi Rimag Group, a China-based medical imaging center operator and provider of Rimag cloud services, set terms for an IPO and plans to raise ~HK$280M (~$36M) in Hong Kong.
The IPO is expected to be between HK$14.60 and HK$16.80. At the midpoint of the range, Jiangxi Rimag will have a market value of ~HK$5.6B based on 356.3M outstanding shares.
CITIC Securities is leading the offering. CMB International and Huatai International act as joint global coordinators, joint bookrunners and joint lead managers.

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