Smartkarma Daily Briefs

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.

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

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.

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

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.

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.

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.

Buy the Pullback; Market Dynamics Remain Healthy; Buys in Tech, Discretionary, Healthcare, Utilities

By Joe Jasper

Global MSCI indexes (MSCI ACWI, ACWI ex-US, EAFE, and EM) are pulling back following recent breakouts to multi-year highs. Europe, Japan also pulling back to uptrend supports.
Short-Term supports to watch-discussed in our May 23, 2024 Int’l Compass-include $110.50 on ACWI-US, $53.50 on ACWX-US, $80 on EFA-US, and $41-42 on EEM-US; buy this pullback.
As long as these supports hold, we anticipate significantly higher prices ahead. Combination of supports holding and healthy market dynamics continues to validate our bullish outlook on global equities.

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Jun 01

Most Read: Infocom Corp, Shift Up, Legend Holdings Corp H, Chilled & Frozen Logistics Holdings, Greatview Aseptic Packaging, Hanwha Ocean , Korea Stock Exchange KOSPI 200, Mitsubishi Motors and more

By Smartkarma Daily Briefs | Daily Briefs, Most Read

In today’s briefing:

Infocom (4348 JP) – Reports of an Exclusive Negotiation May Give Hints
Shift Up IPO: Valuation Insights
How to Own Lenovo at a Discount: BUY Legend Holdings Corp (3396 HK)
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

Infocom (4348 JP) – Reports of an Exclusive Negotiation May Give Hints

The entire saga here of Teijin Ltd (3401 JP)‘s disposal of its 55.1% stake in Infocom Corp (4348 JP) is being played out in the non-generally-public press.
There is reportedly a new piece of writing out late Thursday which suggests an approach.
I wrote about the “meaning” of words in Infocom (4348 JP) – The Meaning of ‘Binding Bids’ and ‘¥250bn’ and now there is more nuance to parse.

Shift Up IPO: Valuation Insights

Shift Up (462870 KS) is Korea’s leading game development studio. It is seeking to raise up to US$320 million.
We previously discussed the IPO in Shift Up IPO: The Investment Case.
We examine the syndicate’s valuation methodology. Our analysis suggests that Shift Up is attractively valued in the IPO price range. We would participate in the IPO.

How to Own Lenovo at a Discount: BUY Legend Holdings Corp (3396 HK)

By David Mudd

Legend Holdings Corp H (3396 HK) owns 31% of Lenovo (992 HK) , the number one global PC maker
Lenovo is a leader selling AI enabled PC’s globally. Its server business is growing rapidly through strong demand for generative AI. Legend is the leading AI seed investor in China.
Technical pattern strong for Lenovo reaching a 9 year high. Legend showing increasing momentum from an historic trough valuation level

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

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

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

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 Energy/Materials: Greatview Aseptic Packaging, Eagle Materials and more

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

In today’s briefing:

GAPack (468 HK): Shandong Xinjufeng Offer Progesses
Eagle Materials: A Tale Of Increasing Cement Sales & Margin Expansion! – Major Drivers

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.

Eagle Materials: A Tale Of Increasing Cement Sales & Margin Expansion! – Major Drivers

Eagle Materials, a producer of building materials such as cement and concrete, concluded the fiscal year 2024 with robust financial performance, reflecting in its record revenue of $2.3 billion and record diluted EPS of $13.61.
The financial results were primarily attributed to the company’s dedicated workforce and superior quality products, which continue to attract customer support and investor confidence.
A highlight of Eagle Materials’ operational performance was its effective execution of safety measures.

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Jun 01

Daily Brief Industrials: Chilled & Frozen Logistics Holdings, Hanwha Ocean , Braemar Shipping Services PLC, Stericycle Inc and more

By Smartkarma Daily Briefs | Daily Briefs, Industrials

In today’s briefing:

SG Holdings to Launch TOB on C&F Logistics (9099) At A Whopping ¥5,740/Share – HUGE Governance Win
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
Braemar – Diversification underpins resilience
Stericycle Inc. – What Factors Will Lead To The Company Getting Acquired? What Valuation Can It Extract? – Key Drivers

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

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.

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

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.

Braemar – Diversification underpins resilience

By Edison Investment Research

Braemar’s FY24 results were in line with expectations with revenues flat, but operating profits down, having been hit by one-off costs and strong comparatives. The underlying operations continue to expand and diversify, which drove an 8% increase in FY24 fixtures, and the company remains well-positioned to drive its future growth strategy. The trading outlook for FY25 is promising and Braemar should be able to leverage its strong balance sheet in pursuit of strategic growth. We have maintained our underlying revenue and operating profit estimates for FY25 and FY26, but rolled over the base year for the valuation, which results in a modest increase in the valuation from 500p to 535p per share, offering c 70% upside.

Stericycle Inc. – What Factors Will Lead To The Company Getting Acquired? What Valuation Can It Extract? – Key Drivers

This is a special one-time report on Stericycle as the company is exploring a sale.
Its recent results paint a largely positive picture for the company, with some minor setbacks due to the implementation of the new ERP system.
As Stericycle explores a potential sale, the company continues to target improvements in operations to increase efficiency and reduce costs, with expectations of improved results in the coming quarters.

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Jun 01

Daily Brief Industrials: Chilled & Frozen Logistics Holdings, Hanwha Ocean , Braemar Shipping Services PLC, Stericycle Inc and more

By Smartkarma Daily Briefs | Daily Briefs, Industrials

In today’s briefing:

SG Holdings to Launch TOB on C&F Logistics (9099) At A Whopping ¥5,740/Share – HUGE Governance Win
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
Braemar – Diversification underpins resilience
Stericycle Inc. – What Factors Will Lead To The Company Getting Acquired? What Valuation Can It Extract? – Key Drivers

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

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.

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

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.

Braemar – Diversification underpins resilience

By Edison Investment Research

Stericycle Inc. – What Factors Will Lead To The Company Getting Acquired? What Valuation Can It Extract? – Key Drivers

This is a special one-time report on Stericycle as the company is exploring a sale.
Its recent results paint a largely positive picture for the company, with some minor setbacks due to the implementation of the new ERP system.
As Stericycle explores a potential sale, the company continues to target improvements in operations to increase efficiency and reduce costs, with expectations of improved results in the coming quarters.

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Jun 01

Daily Brief TMT/Internet: Infocom Corp, Cainiao Smart Logistics Network, Qualcomm Inc, Taiwan Semiconductor (TSMC) – ADR, Zoom Video Communications Inc, NVIDIA Corp, Oki Electric Industry, Canon Inc, Bel Fuse Inc Cl B, Palo Alto Networks and more

By Smartkarma Daily Briefs | Daily Briefs, TMT/Internet

In today’s briefing:

Infocom (4348 JP): Blackstone’s Rumoured JPY260bn Bid to Acquire Teijin’s Stake
CaiNiao Q4FY Results: After IPO Withdrawn, Margins Fell | Retention Payments, or Something Else?
Qualcomm. Watch This Space…
Taiwan Tech Weekly: Computex & Apple WDC Imminent; Apple Releasing New AI Voice Interface for IPhone
Zoom Video Communications: A Story Of Continued Growth in Enterprise Customer Base! – Major Drivers
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
Buy the Pullback; Market Dynamics Remain Healthy; Buys in Tech, Discretionary, Healthcare, Utilities
Bel Fuse Inc (BELFB) – Friday, Mar 1, 2024
Palo Alto Networks: Will Its Investments In AI Capabilities Provide A Much Needed Competitive Edge? – Major Drivers

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

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.

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

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

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

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.

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

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.

Buy the Pullback; Market Dynamics Remain Healthy; Buys in Tech, Discretionary, Healthcare, Utilities

By Joe Jasper

Global MSCI indexes (MSCI ACWI, ACWI ex-US, EAFE, and EM) are pulling back following recent breakouts to multi-year highs. Europe, Japan also pulling back to uptrend supports.
Short-Term supports to watch-discussed in our May 23, 2024 Int’l Compass-include $110.50 on ACWI-US, $53.50 on ACWX-US, $80 on EFA-US, and $41-42 on EEM-US; buy this pullback.
As long as these supports hold, we anticipate significantly higher prices ahead. Combination of supports holding and healthy market dynamics continues to validate our bullish outlook on global equities.

Bel Fuse Inc (BELFB) – Friday, Mar 1, 2024

By Value Investors Club

Company previously written up by starfox02 has doubled in price since August 2022
Author sees potential for stock price to double again and provides a refresher on investment thesis
Company specializes in manufacturing reliable and high-quality fuses, connectors, and power components for industries; trading at a low earnings multiple with opportunities for growth and margin expansion

This content is sourced through publicly available sources and has been machine generated. Information displayed is for general informational purposes only. This article was originally published 3 months ago on Value Investors Club.

Palo Alto Networks: Will Its Investments In AI Capabilities Provide A Much Needed Competitive Edge? – Major Drivers

Palo Alto Networks, a cybersecurity company, has reported a strong fiscal third quarter 2024.
The company continues to observe robust cyberattack activities, with an increasing focus on software supply chain and hardware vulnerabilities.
Notably, the adoption and experimentation of artificial intelligence (AI) by their customers have introduced a new set of threats, leading to the development of security products designed specifically to secure AI usage.

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Jun 01

Daily Brief Health Care: Alibaba Health Information Tec, Jiangxi Rimag Group, Glenmark Pharmaceuticals, CervoMed , Humana Inc and more

By Smartkarma Daily Briefs | Daily Briefs, Healthcare

In today’s briefing:

Baba’s Babies: They’re All Grown Up!: Alibaba Health (241 HK) Temperature’s Rising!
Jiangxi Rimag IPO (2522.HK): Global Offering and Valuation Update
Glenmark Pharma- Value Erosion Not Something New
CRVO: Enrollment Set to Complete in Phase 2b RewinD-LB Trial in 2Q24 Topline Data in 4Q24
Humana Inc.: Impacts on Pharmacy Benefit Managers (PBMs) Resulting From IRA Changes & Other Major Drivers

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).

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.

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.

CRVO: Enrollment Set to Complete in Phase 2b RewinD-LB Trial in 2Q24 Topline Data in 4Q24

By Zacks Small Cap Research

On May 15, 2024, CervoMed Inc. (CRVO) announced financial results for the first quarter of 2024 and provided a business update.
Enrollment is ongoing in the RewinD-LB Phase 2b clinical trial of neflamapimod in patients with dementia with Lewy bodies (DLB).
We anticipate enrollment completing in the second quarter of 2024 with topline data from the trial expected in the fourth quarter of 2024.

Humana Inc.: Impacts on Pharmacy Benefit Managers (PBMs) Resulting From IRA Changes & Other Major Drivers

Humana Inc., a leading health insurance provider, posted its first quarter results for 2024 and provided some important insights into the company’s financial performance and future outlook.
CEO Bruce Broussard and CFO Susan Diamond shared their insights in a Q&A session following the earnings call.
Broussard highlighted Humana’s solid start to 2024, stating the company reaffirmed its full-year adjusted earnings per share (EPS) guidance at approximately $16 with an increased individual MA membership growth outlook.

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Jun 01

Daily Brief Consumer: Mitsubishi Motors, Bloks Group, PDD Holdings, Modine Manufacturing Co, Guess? Inc, Dixon Technologies India Ltd, Urban Outfitters, Global-e Online , Lowe’s Companies Inc, Skyline Champion and more

By Smartkarma Daily Briefs | Consumer, Daily Briefs

In today’s briefing:

Quiddity JPX-Nikkei 400 Rebal 2024: End-May 2024 Estimates
Bloks Group Pre-IPO Tearsheet
PDD Holdings: Will The Focus On Agricultural Strategy Convert Into Positive Revenue Growth? – Major Drivers
Modine Manufacturing Company: Will The Recovery in Heating
GES: 1Q Review; Creating a Powerful Model; Reiterate Buy, $37 PT
Dixon Technologies- Forensic Analysis (Update)
Urban Outfitters: Impact Of New Facility On Their Logistics & Profitability & Other Major Drivers
Global-e Online Ltd.: Expanding Merchant Base and Launch Plans! – Major Drivers
Lowe’s Companies: Front-End Transformation and Investment in Technology! – Major Drivers
Skyline Champion Corporation: Can The Acquisition of Regional Homes Be A Game Changer? – Major Drivers

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.

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.

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

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.

Modine Manufacturing Company: Will The Recovery in Heating

By Small Cap Consumer 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

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.

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.

Urban Outfitters: Impact Of New Facility On Their Logistics & Profitability & Other Major Drivers

Urban Outfitters, Inc. had an exceptional first quarter for fiscal 2025, performing better than expected with four out of five brands posting record revenues leading to an overall revenue of $1.2 billion.
Anthropologie, Free People, FP Movement, and Nuuly all experienced double-digit growth, with record operating incomes reported for 3 of their brands.
These strong results, however, were somewhat tempered by continuous weak performance at the Urban Outfitters brand.

Global-e Online Ltd.: Expanding Merchant Base and Launch Plans! – Major Drivers

In the Q1 2024 earnings, Global-E Online Ltd reaffirmed its strong growth trajectory and bullish outlook for the rest of the year.
For Q1, the company reported growth in gross merchandise volume (GMV), revenues, and adjusted EBITDA, surpassing the forecasted range for the quarter.
GMV grew 32% YoY, revenues grew 24%, and adjusted EBITDA grew 47%.

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

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.

Skyline Champion Corporation: Can The Acquisition of Regional Homes Be A Game Changer? – Major Drivers

In Fiscal 2024, Skyline Champion Corporation prioritized investments to offer integrated turnkey solutions for retail, financial services, and home completion.
They experienced some decrease year over-year in their unit volume.
However, the company reported over $2 billion in top-line revenue, indicating a solid financial year nonetheless.

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Jun 01

Daily Brief Financials: Korea Stock Exchange KOSPI 200, Xinyi Glass Holdings, Mankind Pharma, Chang Hwa Commercial Bank, China Vanke , American International Group, Metlife Inc and more

By Smartkarma Daily Briefs | Daily Briefs, Financials

In today’s briefing:

Hot Topic Among Local Institutions in Recent Days: Utilizing COE in Value-Up Investing
Xinyi Glass (868): Beneficiary of Chinese RE Rejuvenation
Indian Companies Are Betting on Booming Capital Markets with Unplanned Fund Raisings
Chang Hwa Commercial Bank – April Monthly Profit Figures Suggest Slowing Growth
China Vanke – ESG Report – Lucror Analytics
American International Group (AIG): What Has Been Their Path to Value Creation Post-Financial Crisis? – Major Drivers
MetLife Inc.: A Story Of Capital Deployment to Achieve Responsible Growth and Boost Shareholder Value! – Major Drivers

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.

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

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

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”.

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

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.

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