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Smartkarma Daily Briefs

May 24
0

Daily Brief Australia: Amaero International Ltd, Ionic Rare Earths and more

By | Australia, Daily Briefs

In today’s briefing:

  • Amaero International Ltd – Atomiser on schedule for 30 June commissioning
  • Ionic Rare Earths (IXR) Flash Note AUD5.5m Placement 16052024
  • IXR Update Note – The Circular Economy 06022024
  • Ionic Rare Earths (IXR) Flash Note Makuutu Licence Signed 25012024
  • Ionic Rare Earths (IXR) Post-Results 1H24 21032024
  • Ionic Rare Earths (IXR) Initiation 05122023

Amaero International Ltd – Atomiser on schedule for 30 June commissioning

By Research as a Service (RaaS)

  • RaaS has published an update report on advanced materials manufacturing group Amaero International (ASX:3DA) following its announcement that the first atomiser has been installed at its Tennessee facility and is expected to be commissioned by 30 June. Key points from our report: • Installation and cold testing of the atomiser has been completed and hot testing of the atomiser has commenced on schedule. • In conjunction with commissioning, Amaero expects to produce two tonnes of titanium alloy (Ti64) powder. Following commissioning and cleaning of the atomiser, the company says it expects to commence parameter optimisation for production of C103 powder. Amaero says it expects to deliver initial samples of C103 powder to its offtake counterparty by mid-August. • The company’s announcement is in line with our forecasts for production timing and powder type. • We have adjusted our cost estimates, in particular employee costs in the near term and for conservatism have increased our estimates for research and development costs, without incorporating income estimates for government grants. • Our base-case DCF valuation is now $1.25/share fully diluted (previously $1.37/share) while a +15/-15% sensitivity analysis to our base-case valuation provides a valuation range of $0.67 to $1.72/share.

Ionic Rare Earths (IXR) Flash Note AUD5.5m Placement 16052024

By ACF Equity Research

  • Ionic Rare Earths Ltd (ASX:IXR) is a rare earths mining explorer (Uganda) and REO magnet recycling company (Belfast, UK).
  • We have excluded Belfast recycling from our valuation at this stage.
  • IXR is currently ahead of its most recently published schedule.

IXR Update Note – The Circular Economy 06022024

By ACF Equity Research

  • Ionic Rare Earths Ltd (ASX:IXR).
  • We have raised our valuation range 26%.
  • IXR is a rare earths mining explorer (Uganda) and REO magnet recycling company (Belfast, UK).

Ionic Rare Earths (IXR) Flash Note Makuutu Licence Signed 25012024

By ACF Equity Research

  • Ionic Rare Earths Ltd (ASX:IXR) is a rare earths mining explorer (Uganda) and REO magnet recycling company (Belfast, UK).
  • We have excluded Belfast recycling from our valuation at this stage.
  • Since ACF’s IXR Initiation note published on 05 Dec 2023 IXR’s ownership in the Makuutu project has increased to 94% up 34pp from 60%.

Ionic Rare Earths (IXR) Post-Results 1H24 21032024

By ACF Equity Research

  • Ionic Rare Earths Ltd (ASX:IXR) is a rare earths mining explorer (Uganda) and REO magnet recycling company (Belfast, UK).
  • We have excluded Belfast recycling from our valuation at this stage.
  • IXR is currently ahead of its most recently published schedule.

Ionic Rare Earths (IXR) Initiation 05122023

By ACF Equity Research

  • Ionic Rare Earths Ltd (ASX:IXR) is a rare earths mining explorer (Uganda) and REO magnet recycling company (Belfast, UK).
  • We have excluded Belfast recycling from our valuation.
  • IXR appears significantly undervalued on an intrinsic and EV/M+I basis compared to its peers.

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May 24
0

Daily Brief South Korea: Eoflow, Korea Stock Exchange KOSPI 200, Shift Up, S.M.Entertainment Co and more

By | Daily Briefs, South Korea

In today’s briefing:

  • EOFlow (294090 KS): Suitably Pumped
  • FSS Head Lee Made an Urgent TV Appearance Today to Discuss the Resumption of Short Selling
  • Shift Up IPO – The Positives – All Games Have Done Well
  • Shift Up IPO – The Negatives – Changing Monetisation Model, Censorship Issues
  • A Pop in Major K-Pop Stocks Driven by Potential Easing of Korean Contents Restrictions by China

EOFlow (294090 KS): Suitably Pumped

By David Blennerhassett

  • For a company that strives to improve people’s lives, investors in EOFlow (294090 KS) shares have mostly faced a world of pain over the past year. 
  • After Insulet Corp (PODD US) filed a lawsuit on the 8th August 2023, accusing EOFlow of misappropriating trade secrets, patent infringement, and trademark dilution, shares declined ~88% by year-end.
  • Earlier this month, the courts quashed Insulet’s preliminary injunction. EOFlow is up 200%. Insulet is up 3% (?).  And Medtronic (MDT US), EOFlow’s prior suitor, is no doubt weighing options.

FSS Head Lee Made an Urgent TV Appearance Today to Discuss the Resumption of Short Selling

By Sanghyun Park

  • Lee urgently appeard on TV today and said, “In June, we will explain whether and when short selling will be resumed, and what criteria we might use for the resumption.”
  • He noted considering flexible partial short selling resumption even if only some conditions are met, contrasting the Presidential Office’s stance from two days ago.
  • Presidential Office led short selling ban, now likely under FSC/FSS jurisdiction for resumption.

Shift Up IPO – The Positives – All Games Have Done Well

By Sumeet Singh

  • Shift Up plans to raise up to US$320m in its upcoming South Korean IPO.
  • Shift Up is a South Korean games developer, which as released three games so far for the global markets.
  • In this note, we talk about the positive aspects of the deal.

Shift Up IPO – The Negatives – Changing Monetisation Model, Censorship Issues

By Sumeet Singh

  • Shift Up (462870 KS) plans to raise up to US$320m in its upcoming South Korean IPO.
  • Shift Up is a South Korean games developer, which as released three games so far for the global markets.
  • In this note, we talk about the not-so-positive aspects of the deal.

A Pop in Major K-Pop Stocks Driven by Potential Easing of Korean Contents Restrictions by China

By Douglas Kim

  • The major K-Pop stocks had the biggest up day so far this year on 23 May, driven by potential easing of Korean cultural contents restrictions by the Chinese government. 
  • In the past nine years, there has been a ban on Korean singers’ performances in China.
  • Among the major K-Pop stocks, we continue to have a Positive View on S.M.Entertainment Co (041510 KS) but bearish on HYBE (352820 KS) and YG Entertainment (122870 KS).

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May 24
0

Daily Brief Singapore: China Vanke , Medtecs International and more

By | Daily Briefs, Singapore

In today’s briefing:

  • Morning Views Asia: China Vanke , Lippo Malls Indonesia Retail Trust
  • Glove & PPE Stocks in Play Over Past Week

Morning Views Asia: China Vanke , Lippo Malls Indonesia Retail Trust

By Leonard Law, CFA

Lucror Analytics Morning Views comprise our fundamental credit analysis, opinions and trade recommendations on high yield issuers in the region, based on key company-specific developments in the past 24 hours. Our Morning Views include a section with a brief market commentary, key market indicators and a macroeconomic and corporate event calendar.

Glove & PPE Stocks in Play Over Past Week

By Geoff Howie

  • Top Glove, Medtecs International, UG HealthCare and Riverstone have averaged 24% returns in the month-to-date, partially attributed to the Biden administration announcing higher tariff rates for certain imports from China including PPE items such as respirators and face masks, in addition to rubber medical and surgical gloves.
  • This month, Top Glove ADT has surged more than 5-fold from the preceding 4 months.
  • As maintained by Top Glove Corporation, gloves have evolved from basic protective gear to sophisticated, technologically advanced products that cater to a wide range of applications.

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May 24
0

Daily Brief United States: Marvell Technology , Immersion Corporation, Hubspot Inc, Simplify MBS ETF, AppLovin , Marriott Vacations World, S&P 500 INDEX, MGP Ingredients, Kamada , Ryan Specialty Holdings and more

By | Daily Briefs, United States

In today’s briefing:

  • Marvell Technology Inc (MRVL) – Thursday, Feb 22, 2024
  • IMMR: Biggest Risk Overhang Removed
  • HubSpot Inc.: What Valuation Can It Get From Alphabet Inc.? – Major Drivers
  • Simplify Mbs Etf (MTBA) – Tuesday, Feb 20, 2024
  • AppLovin Corporation: What Is Their Performance-Based Advertising Strategy? – Major Drivers
  • Marriott Vacations Worldwide (VAC) – Thursday, Feb 22, 2024
  • Spreadbites ‒ Credit colour from last week’s Global Markets Conference in Paris
  • Mgp Ingredients Inc (MGPI) – Thursday, Feb 22, 2024
  • KMDA: Full Year Guidance Raised Year-Over-Year Top-Line Growth of 23%
  • Ryan Specialty Holdings Inc (RYAN) – Thursday, Feb 22, 2024

Marvell Technology Inc (MRVL) – Thursday, Feb 22, 2024

By Value Investors Club

  • Marvell has historically performed well in the market but is now shifting its focus to growth areas such as AI, cloud computing, and faster data networks
  • Despite recent cyclical weakness, the company is expected to see improved performance and strong earnings growth
  • Reactivating the account is a strategic move to capitalize on Marvell’s promising future prospects and potential increase in stock value

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.

IMMR: Biggest Risk Overhang Removed

By Hamed Khorsand

  • Immersion (IMMR) announced it had renewed its patent license agreement with Samsung Electronics removing the biggest risk overhang of 2024
  • Samsung has been IMMR’s largest customer at one point representing more than 60 percent of revenue. In the most recent 10K filing, IMMR describes Samsung as a significant customer
  • We assume there was a step down in the rate Samsung pays, since this is usually the norm with technology companies and IP deals

HubSpot Inc.: What Valuation Can It Get From Alphabet Inc.? – Major Drivers

By Baptista Research

  • HubSpot Inc.’s Q1 2024 earnings conference call revealed a mix of strong performance and cautious optimism.
  • Total customers grew by 22% YoY, translating to over 215,000 customers globally, driven by over 11,700 net customer additions in the quarter.
  • Revenue growth was solid at 23% year-over-year in constant currency, alongside another good quarter of operating margin growth, driving the operating margin to 15%.

Simplify Mbs Etf (MTBA) – Tuesday, Feb 20, 2024

By Value Investors Club

  • Importance of incorporating volatility-dampening mechanisms into portfolio construction during low market volatility
  • Strategies for lowering portfolio volatility including short exposure, downside hedges, gross exposure flex management, and allocations to private equity and private credit
  • Benefits of implementing these mechanisms in managing capital effectively and supporting a more stable emotional investment experience

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.

AppLovin Corporation: What Is Their Performance-Based Advertising Strategy? – Major Drivers

By Baptista Research

  • AppLovin Corporation, a mobile tech company specializing in developing software for developers and marketers, reported strong financial results for the first quarter ended March 31, 2024.
  • The company recorded a total revenue of $1.06 billion and an adjusted EBITDA of $549 million, demonstrating a 52% margin.
  • AppLovin’s CFO, Matt Stumpf, noted that the company’s revenue grew by almost 50% compared to the same period last year, and the adjusted EBITDA has doubled.

Marriott Vacations Worldwide (VAC) – Thursday, Feb 22, 2024

By Value Investors Club

  • Marriott Vacations Worldwide (VAC) reported positive results on February 21st, 2024, indicating a potential turnaround for the company.
  • Despite a challenging year in 2023, VAC’s issues were temporary and offer an opportunity to invest in a growing business with a 10%+ free cash flow yield.
  • VAC is a leisure-focused timeshare business with a strong presence in the vacation ownership market, owning upscale resort brands and deriving 35% of adjusted EBITDA from recurring sources.

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.

Spreadbites ‒ Credit colour from last week’s Global Markets Conference in Paris

By At Any Rate

  • Investors were generally positive and not bearish, with a focus on thin spreads compensated by yields and strong credit quality
  • High grade bond demand remained strong, with ongoing retail interest and no weakening in institutional demand reported
  • Hedge fund investors in high yield were cautious, focusing on avoiding losers and uncertainty around creditor outcomes

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

Mgp Ingredients Inc (MGPI) – Thursday, Feb 22, 2024

By Value Investors Club

  • Short-selling opportunity in American whiskey prices, with MGPI as a target
  • Stock price of company declined 15% after reporting, but author sees larger downward trend
  • Changing market dynamics provide significant upside potential for short position, timed well to capitalize on industry changes.

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.

KMDA: Full Year Guidance Raised Year-Over-Year Top-Line Growth of 23%

By Zacks Small Cap Research

  • On May 8, 2024, Kamada Ltd. (KMDA) announced financial results for the first quarter of 2024.
  • Revenues for the first quarter of 2024 were $37.7 million, which was a 23% increase compared to the first quarter of 2023.
  • Adjusted EBITDA was $7.5 million, which was a 96% increase from the $3.8 million in the first quarter of 2023.

Ryan Specialty Holdings Inc (RYAN) – Thursday, Feb 22, 2024

By Value Investors Club

  • Ryan Specialty Holdings (RYAN) is a leading wholesale insurance broker founded in 2010 by former AON CEO Pat Ryan
  • RYAN generates 65% of revenue from wholesale insurance brokerage and 35% from underwriting and binding authority programs
  • The company has achieved consistent double-digit organic growth through over 45 acquisitions, majority owned by Pat Ryan and employees, focusing on long-term value creation

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.

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May 24
0

Daily Brief China: Shanghai Henlius Biotech , Xiaomi Corp, Sun Art Retail, Trip.com, Full Truck Alliance , China International Capital Corporation, Sciclone Pharmaceuticals, China Vanke and more

By | China, Daily Briefs

In today’s briefing:

  • Henlius Biotech (2696 HK): Fosun Offer?
  • Henlius (2696 HK): Privatisation by Fosun Pharma?
  • XM / Xiaomi (1810 HK): 1Q24, Revenue Up by 27%, Smartphone Shipments Ranked Global No. 3
  • Sun Art (6808 HK):  FY24 Unimpressive, But All Eyes On Potential Alibaba Sale
  • [Trip.com (TCOM US, SELL, TP US$45) TP Change]: Liquidity and Platform Positive Vs. Demand Negative
  • Full Truck Alliance Q124 Results: Strong Financials Match Recent Strong Share Performance – HOLD
  • CICC (3908 HK): Soon to Be Its Time
  • SciClone Pharmaceuticals (6600 HK): 19th June Shareholder Vote
  • Morning Views Asia: China Vanke , Lippo Malls Indonesia Retail Trust

Henlius Biotech (2696 HK): Fosun Offer?

By David Blennerhassett

Henlius (2696 HK): Privatisation by Fosun Pharma?

By Arun George

  • Shanghai Henlius Biotech (2696 HK) entered a trading halt “pending the release of an announcement pursuant to the Code on Takeovers and Mergers.” The likely bidder is Fosun Pharma.
  • A merger by absorption would require approval by at least 75% independent H Shareholders (<10% of all independent H Shareholders rejection). There could also be a 90% minimum acceptance condition. 
  • The shares are 62% below the IPO price. However, shareholders with blocking stakes would welcome an offer suggesting a 30-40% takeover premium would be sufficient.

XM / Xiaomi (1810 HK): 1Q24, Revenue Up by 27%, Smartphone Shipments Ranked Global No. 3

By Ming Lu

  • Total revenue growth rate climbed up 27% YoY in 1Q24 with all businesses growing strongly.
  • Smartphone shipments grew by 34% YoY and achieved global No. 3.
  • In 1Q24, the gross margins of all major businesses obviously improved.

Sun Art (6808 HK):  FY24 Unimpressive, But All Eyes On Potential Alibaba Sale

By Steve Zhou, CFA

  • Sun Art Retail (6808 HK)‘s FY24 (fiscal year ending March) numbers were overall unimpressive, with sales down 13% yoy and net loss increasing to RMB1.6bn.
  • The new CEO’s strategy is to refocus on SSSG of offline traffic and restore price competitiveness.  April and May SSSG improved. 
  • The stock is up 20% since my initial insight on the name in March, and I believe more upside remains.

[Trip.com (TCOM US, SELL, TP US$45) TP Change]: Liquidity and Platform Positive Vs. Demand Negative

By Eric Wen

  • In a tough macro environment with travel as perhaps the only bright spot in consumption
  • However, equally compelling is the demand negatives of overseas travel as a somewhat luxurious consumption item and tough competition at home;
  • Given the stock’s valuation, we maintain the rating as SELL but raise TP to US$45/ADS, implying 2025 PE of 15x.

Full Truck Alliance Q124 Results: Strong Financials Match Recent Strong Share Performance – HOLD

By Daniel Hellberg

  • FTA’s revenue growth accelerated in Q124 and exceeded management guidance
  • Gross and OpInc margins (cash basis) both improved sharply in Q124
  • Growth, profitability, mix improved, but FTA no longer so cheap; HOLD

CICC (3908 HK): Soon to Be Its Time

By Osbert Tang, CFA

  • China International Capital Corporation (3908 HK) is a laggard among the Chinese securities companies. With the rebound in HSI and Shanghai Composite, such divergence should narrow.
  • The investment banking business should recover following the rebound in the secondary market and equity valuations. HK’s IPO funds raised are forecast to double in 2024.
  • At 0.4x 12-month P/B, the market has deeply discounted CICC’s earnings outlook. However, as earnings recovery will be fast, its share price will react rapidly.

SciClone Pharmaceuticals (6600 HK): 19th June Shareholder Vote

By David Blennerhassett

  • On the 28th March, Li Zhenfu (SciClone (6600 HK)‘s NED), Assicurazioni Generali (G IM), and concert parties (collectively controlling 36.61%), made an Offer at $18.80/share, a 33.9% premium to undisturbed. 
  • The Offer price is bang in line with SciClone’s March 2021 IPO price. Terms were declared final. This is a clean deal.
  • The Scheme Document is now out. The Court Meeting will be held on the 19th June. Expected payment on or before the 12 July. FWIW: IFA says fair & reasonable.

Morning Views Asia: China Vanke , Lippo Malls Indonesia Retail Trust

By Leonard Law, CFA

Lucror Analytics Morning Views comprise our fundamental credit analysis, opinions and trade recommendations on high yield issuers in the region, based on key company-specific developments in the past 24 hours. Our Morning Views include a section with a brief market commentary, key market indicators and a macroeconomic and corporate event calendar.

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May 24
0

Daily Brief India: Tata Technologies, Allied Blenders & Distillers and more

By | Daily Briefs, India

In today’s briefing:

  • Tata Technologies IPO Lockup Expiry – US$1.5bn Lockup Release, Some Funds Are Sitting on 40x Gains
  • Allied Blenders and Distillers Pre-IPO – Refiling Updates and Initial Thoughts on Valuation

Tata Technologies IPO Lockup Expiry – US$1.5bn Lockup Release, Some Funds Are Sitting on 40x Gains

By Sumeet Singh

  • Tata Technologies (TT) raised around US$370m in its India IPO in Dec 2023.
  • Tata Technologies is a global engineering services company offering product development and digital solutions, including turnkey solutions, to global original equipment manufacturers (OEMs) and their tier 1 suppliers.
  • In this note, we talk about the upcoming lock-up expiry and possible deal dynamics.

Allied Blenders and Distillers Pre-IPO – Refiling Updates and Initial Thoughts on Valuation

By Ethan Aw

  • Allied Blenders & Distillers (9844250Z IN) is looking to raise about US$180m in its upcoming India IPO.  
  • ABD is the largest Indian-owned Indian-made foreign liquor (IMFL) company and the third largest IMFL company in India, in terms of annual sales volumes between FY14 and FY22.
  • In this note, we provide a summary of its refiling updates, undertake a quick peer comparison and share our initial thoughts on valuation.

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May 24
0

Daily Brief Japan: Toyota Motor Corp Spon Adr, Terumo Corp, TSE Tokyo Price Index TOPIX and more

By | Daily Briefs, Japan

In today’s briefing:

  • Toyota Motor Corporation: Is It Finally Making The Much-Awaited Shift Towards EVs & HEVs? – Major Drivers
  • Terumo Corp (4543 JP): Q4 Result Beats Guidance; Double-Digit Profit Growth to Continue in FY25
  • Investors Are Looking for Solutions to Challenges, Not Simply Improved Communication with Investors

Toyota Motor Corporation: Is It Finally Making The Much-Awaited Shift Towards EVs & HEVs? – Major Drivers

By Baptista Research

  • Toyota Motor Corporation recently concluded its fiscal year ended March 2024 with notable financial results and established expectations for the upcoming fiscal year.
  • The company’s actual operating income reached a record JPY 5.35 trillion, significantly bolstered by support and cooperation from various stakeholders, including employees, suppliers, and dealers.
  • This substantial figure reflects the company’s commitment to region and product-based management over many years.

Terumo Corp (4543 JP): Q4 Result Beats Guidance; Double-Digit Profit Growth to Continue in FY25

By Tina Banerjee

  • Terumo Corp (4543 JP) reported 18% revenue growth in Q4FY24, driven by C&V and TBCT businesses. With the steady progress in profit improvement measures, operating profit rose 45%.
  • For FY25, the company expects revenue of ¥980B (up 6% YoY), operating profit of ¥165B (up 18% YoY), and net profit of ¥122B (up 15% YoY).
  • The company remains cautious and provided a conservative FY25 guidance. Improvement in any its assumptions provides room for upward revision of the guidance.

Investors Are Looking for Solutions to Challenges, Not Simply Improved Communication with Investors

By Aki Matsumoto

  • While communication with investors is an important tool, “TSE’s request” should be the starting point for solving management issues, as it gave managers the opportunity to think about strategy themselves.
  • Since many Japanese companies have management issues, it is not surprising that more activist investors believe that investment opportunities can be created by encouraging companies to solve these issues.
  • Even if a company can convince activist investors through shareholder relations, it will only buy time, and investors/shareholders are looking to increase corporate value by solving problems.

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May 24
0

Most Read: Rakuten, Keisei Electric Railway Co, Eoflow, Korea Stock Exchange KOSPI 200, Shanghai Henlius Biotech , Shift Up, Trent Ltd and more

By | Daily Briefs, Most Read

In today’s briefing:

  • If Rakuten (4755) Combines Financial Units… Who Wins and How? Well… It’s Complicated
  • Activist Palliser Re-Engages on Keisei Electric (9009) But The Oppty Remains Unconvincing
  • EOFlow (294090 KS): Suitably Pumped
  • FSS Head Lee Made an Urgent TV Appearance Today to Discuss the Resumption of Short Selling
  • Henlius Biotech (2696 HK): Fosun Offer?
  • Henlius (2696 HK): Privatisation by Fosun Pharma?
  • EM Watch: Have Copper markets been hit by a bus full of tourists or by the Chinese economy?
  • Shift Up IPO – The Positives – All Games Have Done Well
  • NIFTY50 Index Rebalance Preview: Two High Probability Changes in September; Adds Are Flying
  • Ohayo Japan | Worst Day of 2024

If Rakuten (4755) Combines Financial Units… Who Wins and How? Well… It’s Complicated

By Travis Lundy

  • A couple of years ago, Rakuten (4755 JP) – burning through cash to start its mobile business – announced it would its Bank and Securities units. Bank listed. Securities didn’t.
  • Mizuho ended up buying 49% of Securities. Today, it was announced there would be discussions to put Bank, Securities, Card, and Insurance in a new listed Holdco.
  • How this works will end up being complicated. More complicated than it should be. But the complexity would make this more of a win-win for everyone. 

Activist Palliser Re-Engages on Keisei Electric (9009) But The Oppty Remains Unconvincing

By Travis Lundy

  • Last October, activist Palliser Capital launched a campaign (presentation) on well-known “stub trade” Keisei Electric Railway Co (9009 JP) with a stake of about 1.6%. 
  • The proposal? Monetise a decent stake in Oriental Land (4661 JP), repurchase shares, and invest for growth. Keisei responded 6-8 weeks ago with a buyback and 1% OLC stake sale.
  • I thought that was time to bail. That was it. But now, Palliser has re-engaged. Today a press release (Japanese/English) and a Letter to the Board.

EOFlow (294090 KS): Suitably Pumped

By David Blennerhassett

  • For a company that strives to improve people’s lives, investors in EOFlow (294090 KS) shares have mostly faced a world of pain over the past year. 
  • After Insulet Corp (PODD US) filed a lawsuit on the 8th August 2023, accusing EOFlow of misappropriating trade secrets, patent infringement, and trademark dilution, shares declined ~88% by year-end.
  • Earlier this month, the courts quashed Insulet’s preliminary injunction. EOFlow is up 200%. Insulet is up 3% (?).  And Medtronic (MDT US), EOFlow’s prior suitor, is no doubt weighing options.

FSS Head Lee Made an Urgent TV Appearance Today to Discuss the Resumption of Short Selling

By Sanghyun Park

  • Lee urgently appeard on TV today and said, “In June, we will explain whether and when short selling will be resumed, and what criteria we might use for the resumption.”
  • He noted considering flexible partial short selling resumption even if only some conditions are met, contrasting the Presidential Office’s stance from two days ago.
  • Presidential Office led short selling ban, now likely under FSC/FSS jurisdiction for resumption.

Henlius Biotech (2696 HK): Fosun Offer?

By David Blennerhassett

Henlius (2696 HK): Privatisation by Fosun Pharma?

By Arun George

  • Shanghai Henlius Biotech (2696 HK) entered a trading halt “pending the release of an announcement pursuant to the Code on Takeovers and Mergers.” The likely bidder is Fosun Pharma.
  • A merger by absorption would require approval by at least 75% independent H Shareholders (<10% of all independent H Shareholders rejection). There could also be a 90% minimum acceptance condition. 
  • The shares are 62% below the IPO price. However, shareholders with blocking stakes would welcome an offer suggesting a 30-40% takeover premium would be sufficient.

EM Watch: Have Copper markets been hit by a bus full of tourists or by the Chinese economy?

By Andreas Steno

  • Copper markets have been on a tear in recent months and our assessment is that the positive sentiment started when Chinese copper stock data points started supporting the notion that China was “hoarding” Copper concentrate ahead of 1) a devaluation, 2) an overhaul of the electrical grid or 3) a power grab on supply chains for EVs, Solar Panels, Data centers and the likes.
  • On top of this, we have seen how US officials have highlighted the option of creating a strategic reserve of Copper Cathode in the US, potentially in response to the stockpiling of refined copper seen in China (chart 1).
  • Why is the Chinese copper stock not receding here? That is the question macro-managers and geopolitical pundits are asking themselves daily!

Shift Up IPO – The Positives – All Games Have Done Well

By Sumeet Singh

  • Shift Up plans to raise up to US$320m in its upcoming South Korean IPO.
  • Shift Up is a South Korean games developer, which as released three games so far for the global markets.
  • In this note, we talk about the positive aspects of the deal.

NIFTY50 Index Rebalance Preview: Two High Probability Changes in September; Adds Are Flying

By Brian Freitas

Ohayo Japan | Worst Day of 2024

By Mark Chadwick

  • Nvidia surged 9.3% following strong earnings and a stock split announcement, but failed to buoy the broader market.
  • A study by Japan’s Government Pension Investment Fund (GPIF) reveals that Japanese firms benefit from dialogue with investors, with positive impacts on market capitalization and performance indicators.
  • Teijin (3401) Hong Kong’s Oasis Management disclosed ownership of 2.49% of Teijin’s shares, acquiring about 4.8 million shares, ranking seventh among major shareholders.

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May 24
0

Daily Brief Industrials: Amaero International Ltd, Emerson Electric Co, Wizz Air Holdings and more

By | Daily Briefs, Industrials

In today’s briefing:

  • Amaero International Ltd – Atomiser on schedule for 30 June commissioning
  • Emerson Electric Co.: How Will The Adoption of Advanced Power Grid Management Software Impact Future Revenues? – Major Drivers
  • Wizz Air – Opportunity to Shift Focus from P&L Distortion to Cash Flow Clarity

Amaero International Ltd – Atomiser on schedule for 30 June commissioning

By Research as a Service (RaaS)

  • RaaS has published an update report on advanced materials manufacturing group Amaero International (ASX:3DA) following its announcement that the first atomiser has been installed at its Tennessee facility and is expected to be commissioned by 30 June. Key points from our report: • Installation and cold testing of the atomiser has been completed and hot testing of the atomiser has commenced on schedule. • In conjunction with commissioning, Amaero expects to produce two tonnes of titanium alloy (Ti64) powder. Following commissioning and cleaning of the atomiser, the company says it expects to commence parameter optimisation for production of C103 powder. Amaero says it expects to deliver initial samples of C103 powder to its offtake counterparty by mid-August. • The company’s announcement is in line with our forecasts for production timing and powder type. • We have adjusted our cost estimates, in particular employee costs in the near term and for conservatism have increased our estimates for research and development costs, without incorporating income estimates for government grants. • Our base-case DCF valuation is now $1.25/share fully diluted (previously $1.37/share) while a +15/-15% sensitivity analysis to our base-case valuation provides a valuation range of $0.67 to $1.72/share.

Emerson Electric Co.: How Will The Adoption of Advanced Power Grid Management Software Impact Future Revenues? – Major Drivers

By Baptista Research

  • Emerson Electric reported a robust operating performance for the second quarter of 2024, surpassing their expectations.
  • The buoyant operating performance was driven by strong demand in process and hybrid markets, which aligns with significant macroeconomic trends like energy affordability and security, nearshoring, digital transformation, and sustainability.
  • The company’s underlying sales rose by 8%, with operational leverage standing at 54%, resulting in a 140 basis point EBITDA expansion to 26%.

Wizz Air – Opportunity to Shift Focus from P&L Distortion to Cash Flow Clarity

By Neil Glynn

  • Wizz Air’s FY24 contained multiple distortions; we disaggregate cash flow dynamics to show an improving picture.
  • Capacity restraint has been enforced by engine issues, not zero growth in FY25 is producing high single-digit % unit revenue gains.
  • We see an opportunity for Wizz Air to rise above distortion to earnings from engine issues and compensation by providing incremental cash flow clarity.

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May 24
0

Daily Brief Energy/Materials: Anglo American, Panoro Energy ASA, Itaconix , Sirius Minerals, Nutrien , Trigon Metals , Celanese Corp Series A and more

By | Daily Briefs, Energy & Materials Sector

In today’s briefing:

  • Anglo American Rejects BHP’s Increased and Final Offer
  • Panoro Energy ASA (OSE: PEN): NOK100 mm share buyback
  • Itaconix Plc Core Investment Case 01052024
  • Our intern investigates the $5 Billion mine that won’t work (it’s Woodsmith)
  • Ionic Rare Earths (IXR) Flash Note Makuutu Licence Signed 25012024
  • Ionic Rare Earths (IXR) Initiation 05122023
  • Ionic Rare Earths (IXR) Post-Results 1H24 21032024
  • Nutrien Ltd.: Does It Have A Sustainable Competitive Advantage? – Major Drivers
  • TM: Underground Commercial Production + Results
  • Celanese Corporation: Expanding Capacity in Acetyls Chain and Engineered Materials & Other Major Drivers

Anglo American Rejects BHP’s Increased and Final Offer

By Jesus Rodriguez Aguilar

  • On 22 May, Anglo American rejected the last offer (0.8860) from BHP on execution risks, potential negative value impacts and additional approvals needed in South Africa. PUSU extended 29 May.
  • I update my SOTP to 2938p. Copper Fair Value, in my opinion, is £17.70 per share. This contrasts with BHP’s current offer of £21.32/share for the entirety of Anglo’s rump.
  • There is now a ~20.1% difference between the implied value of BHP’s offer and the share price of Anglo. The market assumes a lower likelihood of an agreed deal

Panoro Energy ASA (OSE: PEN): NOK100 mm share buyback

By Auctus Advisors

  • The 1Q24 production of 9,605 bbl/d, the cash position of US$22.4 mm and the debt position of US$80.6 mm had been reported previously.
  • The 1Q24 operating cash flow of US$25 mm was impacted by US$5.4 mm of negative working capital movement and US$3.6 mm negative inventory movement.
  • This suggests an underlying operating cash flow of US$34 mm for the period.

Itaconix Plc Core Investment Case 01052024

By ACF Equity Research

  • Itaconix Plc’s (AIM: ITX.L, OTC: ITXXF) vision – safer chemicals in consumer goods.
  • ITX makes IP protected innovative bio-polymers that replace acrylic acid and styrene based polymers (US$ 20bn market) in consumer products.
  • IA polymers have commercial applications in consumer and specialty chemicals markets including detergents markets as water softeners and dispersants; odour capture markets and hair products markets for hold, texture and flexibility.

Our intern investigates the $5 Billion mine that won’t work (it’s Woodsmith)

By Money of Mine

  • Woodsmith project is a novel mine in the UK owned by Sirius Minerals, later acquired by Anglo.
  • The project involves extracting polyhalite, a nutrient-rich mineral, from a deep underground seam.
  • Local residents became shareholders in the project, with 85,000 retail shareholders, 10,000 of which were from the York area.

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

Ionic Rare Earths (IXR) Flash Note Makuutu Licence Signed 25012024

By ACF Equity Research

  • Ionic Rare Earths Ltd (ASX:IXR) is a rare earths mining explorer (Uganda) and REO magnet recycling company (Belfast, UK).
  • We have excluded Belfast recycling from our valuation at this stage.
  • Since ACF’s IXR Initiation note published on 05 Dec 2023 IXR’s ownership in the Makuutu project has increased to 94% up 34pp from 60%.

Ionic Rare Earths (IXR) Initiation 05122023

By ACF Equity Research

  • Ionic Rare Earths Ltd (ASX:IXR) is a rare earths mining explorer (Uganda) and REO magnet recycling company (Belfast, UK).
  • We have excluded Belfast recycling from our valuation.
  • IXR appears significantly undervalued on an intrinsic and EV/M+I basis compared to its peers.

Ionic Rare Earths (IXR) Post-Results 1H24 21032024

By ACF Equity Research

  • Ionic Rare Earths Ltd (ASX:IXR) is a rare earths mining explorer (Uganda) and REO magnet recycling company (Belfast, UK).
  • We have excluded Belfast recycling from our valuation at this stage.
  • IXR is currently ahead of its most recently published schedule.

Nutrien Ltd.: Does It Have A Sustainable Competitive Advantage? – Major Drivers

By Baptista Research

  • Nutrien reported an adjusted EBITDA of $1.1 billion for Q1 2024, attributed to higher margins in crop inputs, increased fertiliser production, greater sales volumes, and lowered operating costs.
  • The company’s Ag Solutions division reported a 15% increase per tonne margins compared to Q1 2023, supported by robust grower demand and a return to standardised margins in North America.
  • In relation to operational and market developments, Nutrien increased crop protection inventory in Brazil to manage high inventory levels and reduce operating costs.

TM: Underground Commercial Production + Results

By Atrium Research

  • Trigon announced it has achieved commercial production from the underground operations at its Kombat Mine.
  • TM also announced production results for January through April, showing substantial improvement both in grade and produced copper in the month of April, the first month of operations from the underground.
  • We are impressed by today’s results and excited for future production and financial results as TM begins its first full fiscal year of copper production and starts mining the much higher grade underground

Celanese Corporation: Expanding Capacity in Acetyls Chain and Engineered Materials & Other Major Drivers

By Baptista Research

  • In the Q1 2024 earnings, Celanese Corporation addressed a range of issues including their outlook on market trends and company-specific activities.
  • Starting with the macroeconomic outlook, CEO Lori Ryerkerk stated that the environment remains broadly unchanged from previous expectations.
  • Notably, they have not identified any significant positives or negatives in the quarter, with destocking trends appearing to be ending and order books stabilizing.

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