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Smartkarma Daily Briefs

May 05
0

Daily Brief ECM: ZEEKR IPO: Attractive ~$4.8B Midpoint Valuation Offers At Least 30% Upside and more

By | Daily Briefs, ECM

In today’s briefing:

  • ZEEKR IPO: Attractive ~$4.8B Midpoint Valuation Offers At Least 30% Upside

ZEEKR IPO: Attractive ~$4.8B Midpoint Valuation Offers At Least 30% Upside

By Andrei Zakharov

  • Geely-Backed ZEEKR set terms for U.S. IPO: EV maker offers 17.5M American depositary shares (ADSs) at the price range of $18-$21, implying a market cap of ~$4.8B at the midpoint.
  • Geely Auto, Mobileye and CATL have indicated a non-binding interest in subscribing for an aggregate of up to ~$349M worth of the ADSs being offered in this offering.
  • I have a positive view of ZEEKR IPO as the offering will be priced significantly below last round valuation of ~$13B.  

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May 05
0

Daily Brief Thematic (Sector/Industry): Japan Weekly | Golden Week; Fujitsu General and more

By | Daily Briefs, Thematic (Sector/Industry)

In today’s briefing:

  • Japan Weekly | Golden Week; Fujitsu General, Daiichi Sankyo, M3
  • China Property Developers In Distress – Weekly News & Announcements Tracker | Apr 26-May 3, 2024
  • GEMWeekly (3 May 2024): China, South Korea Macro; Baidu, Tencent, SK Hynix

Japan Weekly | Golden Week; Fujitsu General, Daiichi Sankyo, M3

By Mark Chadwick

  • Last week saw a positive trend in the Nikkei average despite a shorter trading week.
  • Next week’s outlook remains solid with Japan expecting a wave of earnings announcements from major companies.
  • Winners in the market included PeptiDream, Misumi, Fujitsu General, and Daiichi Sankyo, while M3, JTECK, Nihon M&A Center, and Ibiden faced declines

China Property Developers In Distress – Weekly News & Announcements Tracker | Apr 26-May 3, 2024

By Robert Ciemniak

  • This note is a weekly curated selection of Chinese news articles and company announcements focused on developers in distress
  • We look for their deals, updates, specific project progress news (‘local signals’), as well as relevant local research commentaries about the market
  • We do not verify the underlying data or provide any opinion, we only select and summarize the information; See direct links to sources

GEMWeekly (3 May 2024): China, South Korea Macro; Baidu, Tencent, SK Hynix

By Wium Malan, CFA

  • The Global Emerging Markets Weekly summarizes the key news and related developments impacting the largest countries and constituents of the Global Emerging Markets equity indices.
  • Macro data points: China PMI data, South Korean exports, and consumer inflation.
  • Companies mentioned:Baidu (9888 HK), Tencent (700 HK), SK Hynix (000660 KS)

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May 05
0

Daily Brief Equity Bottom-Up: A Closer Look at Gravita India’s Qualified Audit Opinion and more

By | Daily Briefs, Equity Bottom-Up

In today’s briefing:

  • A Closer Look at Gravita India’s Qualified Audit Opinion
  • Altria Group: Can Its Oral Tobacco Category and Smoke-Free Products Reshape The Future? – Major Drivers
  • Comcast Corporation: A Story Of Superior Product Innovation & An Improving Market Position! – Major Drivers
  • Bristol-Myers Squibb Company: A Deep Dive Into The Progress Of Its Clinical Portfolio! – Major Drivers
  • Carrier Global Corporation: Can It Increase Its Productivity & Show Resilience Against Rising Material Costs? – Major Drivers
  • Caterpillar Inc.: A Deep Dive Into Its Key Areas Of Competitive Advantage & Recent Strategic Investments! – Major Drivers
  • AstraZeneca PLC: How Will Its Expansion In Vaccines & Cell Therapy Play Out? – Major Drivers
  • DexCom Inc.: Why Are We Bullish On This Med-Tech Player Despite The Highly Evident Challenges Ahead? – Major Drivers
  • Edwards Lifesciences Corporation: Increased Investment in Field Resources and Patient Access Initiatives! – Major Drivers
  • Alphabet Inc.: Are Its AI-Powered Business Strategies Just Not Good Enough? – Major Drivers

A Closer Look at Gravita India’s Qualified Audit Opinion

By Nimish Maheshwari

  • Gravita India (GRAV IN) faced a Qualified Audit Opinion over share sale proceeds’ reporting by its Employee Welfare Trust.
  • The dispute centers on whether to record these proceeds in the P&L or Balance Sheet, impacting transparency and financial metrics.
  • This dispute reduced the PBT by 7.54% and EPS  by 8.66% decrease in Q4 FY24.

Altria Group: Can Its Oral Tobacco Category and Smoke-Free Products Reshape The Future? – Major Drivers

By Baptista Research

  • Altria Group recent 2024 first quarter earnings highlighted numerous key insights into the company’s performance and future prospects.
  • Altria’s CEO, Billy Gifford, highlighted that the company made significant progress despite the challenging business environment.
  • The company is also committed to investment returns, as demonstrated by its sale of a portion of its investment in ABI and the subsequent expansion of its share repurchase program.

Comcast Corporation: A Story Of Superior Product Innovation & An Improving Market Position! – Major Drivers

By Baptista Research

  • Comcast Corporation reported Q1 earnings recently highlighted by a strategic execution where the company maintained dominance in a competitive and evolving market.
  • The company’s resilient capital allocation strategy and strong balance sheet place it in a favorable position, allowing it to invest aggressively in its six diverse growth businesses- Residential Broadband, Wireless, Business Services, Theme Parks, Studios, and Streaming.
  • These sectors made up more than 55% of the company’s total revenue in Q1, and this proportion is set to grow.

Bristol-Myers Squibb Company: A Deep Dive Into The Progress Of Its Clinical Portfolio! – Major Drivers

By Baptista Research

  • It is clear from Bristol-Myers Squibb’s first quarter 2024 earnings that the company has had a strong start to the year, even as it navigates some challenges.
  • The firm’s performance during this time showcased the strength and potential of its commercial portfolio and the progress it has made in advancing its pipeline.
  • Key brands such as Eliquis, Opdualag, Reblozyl, Yervoy, and Breyanzi have demonstrated significant strength, contributing to the company’s overall performance.

Carrier Global Corporation: Can It Increase Its Productivity & Show Resilience Against Rising Material Costs? – Major Drivers

By Baptista Research

  • Carrier Global Corporation’s Q1 2024 results showed a robust start to the year with adjusted EPS growth of 19% on low-single-digit organic sales growth and 280 basis points of adjusted margin expansion.
  • With the addition of 12,000 new members from Viessmann Climate Solutions, the company is poised for another year of significant margin expansion and solid growth.
  • Its lean journey and sustained productivity have contributed greatly to these results.

Caterpillar Inc.: A Deep Dive Into Its Key Areas Of Competitive Advantage & Recent Strategic Investments! – Major Drivers

By Baptista Research

  • Caterpillar’s earnings for the first quarter of 2024 highlighted a strong quarter with sales and revenues maintaining levels consistent with the last year, largely meeting the company’s expectations.
  • A key aspect was the continuation of healthy demand for its products and services across major end markets.
  • Thanks to its robust balance sheet and free cash flow, the company was able to allocate a remarkable $5.1 billion for share repurchases and dividends during the quarter.

AstraZeneca PLC: How Will Its Expansion In Vaccines & Cell Therapy Play Out? – Major Drivers

By Baptista Research

  • Based on the Q1 2024 results earnings call for AstraZeneca, the British multinational pharmaceutical and biopharmaceutical company seems to be on a steady growth trajectory, but like all corporations, it’s not without its risks.
  • In terms of its achievements, AstraZeneca reported its first quarter of 2024 with a 19% growth in total revenue, reflecting high demand for its products.
  • Core earnings per share rose by 13%.

DexCom Inc.: Why Are We Bullish On This Med-Tech Player Despite The Highly Evident Challenges Ahead? – Major Drivers

By Baptista Research

  • Dexcom, Inc., particularly known for its continuous glucose monitoring (CGM) technology, consistently showcased strong performance in the first quarter of 2024 with an organic revenue growth of 25% compared to the first quarter of 2023.
  • This noteworthy surge is credited to the substantial demand for Dexcom CGM, seen as customers increasingly value its leading product performance and unique user experience.
  • The shift towards Dexcom’s CGM technology has been significant, especially since the launch of G7 in the U.S., which enabled Dexcom to attract a broad range of new prescribers and improve its impact within primary care, resulting in growing demand from people with diabetes.

Edwards Lifesciences Corporation: Increased Investment in Field Resources and Patient Access Initiatives! – Major Drivers

By Baptista Research

  • Edwards Lifesciences Corporation recorded robust first quarter 2024 results, demonstrating growth on numerous fronts.
  • The company’s total sales rose by 10% to $1.6 billion against the same period last year, leading Edwards to raise its 2024 sales guidance to the high end of 8% to 10%.
  • This highlights the company’s successful strategic direction, underscored by its substantial investments across transcatheter platforms which are addressing patient needs associated with aortic, mitral, and tricuspid diseases.

Alphabet Inc.: Are Its AI-Powered Business Strategies Just Not Good Enough? – Major Drivers

By Baptista Research

  • Alphabet Inc. reported a strong first quarter in 2024, fueled by robust performance from its search engine, YouTube, and cloud businesses.
  • The company’s annual revenue grew from $100 billion to over $300 billion in six years.
  • It predicts that YouTube and Cloud will reach a combined annual run rate of more than $100 billion by the end of 2024.

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May 05
0

Daily Brief Event-Driven: Weekly Deals Digest (05 May) – L’Occitane and more

By | Daily Briefs, Event-Driven

In today’s briefing:

  • Weekly Deals Digest (05 May) – L’Occitane, C&F Logistics, KFC Japan, Austal, Hyundai Marine, ZEEKR
  • (Mostly) Asia-Pac M&A: L’Occitane, KFC Holdings Japan, CSR, Azure Minerals, CIMC, Chilled & Frozen
  • Quiddity Leaderboard CSI 300/​​500 Jun 24: Final Expectations; US$3.4bn One-Way; New Trade Idea
  • S&P500 Index Rebalance: Bitcoin Miner Is a SPCY Add
  • Adbri (ABC AU): 12th June Shareholder Vote
  • Last Week in Event SPACE: Aussie Tax-Loss Selling, Austal, West Japan Railway, PICC/PICC P&C

Weekly Deals Digest (05 May) – L’Occitane, C&F Logistics, KFC Japan, Austal, Hyundai Marine, ZEEKR

By Arun George

(Mostly) Asia-Pac M&A: L’Occitane, KFC Holdings Japan, CSR, Azure Minerals, CIMC, Chilled & Frozen

By David Blennerhassett

Quiddity Leaderboard CSI 300/​​500 Jun 24: Final Expectations; US$3.4bn One-Way; New Trade Idea

By Janaghan Jeyakumar, CFA

  • CSI 300 represents the 300 largest stocks by market cap and liquidity from the Shanghai and Shenzhen Exchanges. CSI 500 is the next 500.
  • The reference period for the June 2024 review is now complete. There are some changes to the expected ADDs/DELs list since I published my last insight (link) ~3 weeks ago.
  • In this insight, we take a look at our final expectations for index changes in June 2024.

S&P500 Index Rebalance: Bitcoin Miner Is a SPCY Add

By Brian Freitas

Adbri (ABC AU): 12th June Shareholder Vote

By David Blennerhassett

  • On the 27 Feb 2024, construction play Adbri (ABC AU) entered into a Scheme Implementation Deed with CRH (CRH US) and 42.7%-shareholder Raymond Barro (Chairman) at $5.20/share.
  • Conditions include Adbri’s shareholder approval and FIRB signing off. Optically, it doesn’t appear to be a knockout price. However, Adbri’s share price has laboured since the onset of Covid.
  • The Scheme Booklet is now out, with a Scheme Meeting to be held on the 12th June. Expected implementation on the 1 July. IE says fair & reasonable.

Last Week in Event SPACE: Aussie Tax-Loss Selling, Austal, West Japan Railway, PICC/PICC P&C

By David Blennerhassett

  • Tax-Loss Selling‘s a subject of interest in Australia. Retail investors will take gains on stocks which run up in price, or get taken over, then look for losses to offset.
  • Investors are caught out as the Aussie government “approves” Hanwha Ocean (042660 KS) buyng Austal Ltd (ASB AU). There is evidently a lot more going on in the background. 
  • West Japan Railway Co (9021 JP) announces a biggish buyback. One could buy dips, but one should probably not chase. For that, suggest this acts as a range trade.

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May 05
0

Daily Brief Industrials: West Japan Railway Co, Carrier Global , Caterpillar Inc, Honeywell International, Northrop Grumman, Union Pacific and more

By | Daily Briefs, Industrials

In today’s briefing:

  • Last Week in Event SPACE: Aussie Tax-Loss Selling, Austal, West Japan Railway, PICC/PICC P&C
  • Carrier Global Corporation: Can It Increase Its Productivity & Show Resilience Against Rising Material Costs? – Major Drivers
  • Caterpillar Inc.: A Deep Dive Into Its Key Areas Of Competitive Advantage & Recent Strategic Investments! – Major Drivers
  • Honeywell International: Will Their Improved Performance In Energy and Sustainability Solutions (ESS) Expected To Propel Their Growth? – Major Drivers
  • Northrop Grumman Corporation: Are Autonomous Aircrafts Expected To Be A Major Growth Catalyst In The Future? – Major Drivers
  • Union Pacific Corporation: Will Its Improving Network Capability & Infrastructure Investment Pay Off? – Major Drivers

Last Week in Event SPACE: Aussie Tax-Loss Selling, Austal, West Japan Railway, PICC/PICC P&C

By David Blennerhassett

  • Tax-Loss Selling‘s a subject of interest in Australia. Retail investors will take gains on stocks which run up in price, or get taken over, then look for losses to offset.
  • Investors are caught out as the Aussie government “approves” Hanwha Ocean (042660 KS) buyng Austal Ltd (ASB AU). There is evidently a lot more going on in the background. 
  • West Japan Railway Co (9021 JP) announces a biggish buyback. One could buy dips, but one should probably not chase. For that, suggest this acts as a range trade.

Carrier Global Corporation: Can It Increase Its Productivity & Show Resilience Against Rising Material Costs? – Major Drivers

By Baptista Research

  • Carrier Global Corporation’s Q1 2024 results showed a robust start to the year with adjusted EPS growth of 19% on low-single-digit organic sales growth and 280 basis points of adjusted margin expansion.
  • With the addition of 12,000 new members from Viessmann Climate Solutions, the company is poised for another year of significant margin expansion and solid growth.
  • Its lean journey and sustained productivity have contributed greatly to these results.

Caterpillar Inc.: A Deep Dive Into Its Key Areas Of Competitive Advantage & Recent Strategic Investments! – Major Drivers

By Baptista Research

  • Caterpillar’s earnings for the first quarter of 2024 highlighted a strong quarter with sales and revenues maintaining levels consistent with the last year, largely meeting the company’s expectations.
  • A key aspect was the continuation of healthy demand for its products and services across major end markets.
  • Thanks to its robust balance sheet and free cash flow, the company was able to allocate a remarkable $5.1 billion for share repurchases and dividends during the quarter.

Honeywell International: Will Their Improved Performance In Energy and Sustainability Solutions (ESS) Expected To Propel Their Growth? – Major Drivers

By Baptista Research

  • Honeywell International Inc.’s first-quarter 2024 earnings reveals consistent growth in the company, exceeding its adjusted earning per share guidance and organic sales targets.
  • Despite the dynamic macroeconomic environment, the robust execution of Honeywell’s Accelerator operating system and the company’s diversified technology portfolio has led to significant performance gains.
  • With recovery in key areas of Honeywell’s short-cycle portfolio and sustained growth in its long-cycle Aerospace and energy businesses, the company demonstrates a positive momentum in its financial results.

Northrop Grumman Corporation: Are Autonomous Aircrafts Expected To Be A Major Growth Catalyst In The Future? – Major Drivers

By Baptista Research

  • Northrop Grumman, a global aerospace and defense technology company, has reported a strong start for the financial quarter, with revenues increasing 9% year-over-year due to growth in all four of its sectors.
  • The firm had implemented productivity and cost efficiency measures, which has led to its segment operating margin dollars increasing by 10%.
  • These efforts have also resulted in 15% EPS growth.

Union Pacific Corporation: Will Its Improving Network Capability & Infrastructure Investment Pay Off? – Major Drivers

By Baptista Research

  • Union Pacific Corporation, one of the leading railroad operators in the United States, presents its Q1 2024 results with notable success in operating revenue and increased net income.
  • Despite numerous economic challenges including reduced volumes and lower fuel surcharge revenues, Union Pacific continues to pull its weight with core pricing gains and robust financial growth.
  • In Q1 2024, Union Pacific reported a net income of USD 1.6 billion or $2.69 per share, demonstrating a growth from Q1 2023’s net income that was parallel in value but at $2.67 per share.

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May 05
0

Daily Brief Energy/Materials: Gravita India, Adbri, Equinor ASA, Southern Copper, Valero Energy and more

By | Daily Briefs, Energy & Materials Sector

In today’s briefing:

  • A Closer Look at Gravita India’s Qualified Audit Opinion
  • Adbri (ABC AU): 12th June Shareholder Vote
  • Equinor ASA: Natural Gas Market & Horizon Expansion & 3 Other Major Drivers
  • Southern Copper Corporation: What Is The Current Impact Of Copper Market Dynamics & Prices – Major Drivers
  • Valero Energy Corporation: Growth in Renewable Diesel and Ethanol A Major Growth Catalyst? – Major Drivers

A Closer Look at Gravita India’s Qualified Audit Opinion

By Nimish Maheshwari

  • Gravita India (GRAV IN) faced a Qualified Audit Opinion over share sale proceeds’ reporting by its Employee Welfare Trust.
  • The dispute centers on whether to record these proceeds in the P&L or Balance Sheet, impacting transparency and financial metrics.
  • This dispute reduced the PBT by 7.54% and EPS  by 8.66% decrease in Q4 FY24.

Adbri (ABC AU): 12th June Shareholder Vote

By David Blennerhassett

  • On the 27 Feb 2024, construction play Adbri (ABC AU) entered into a Scheme Implementation Deed with CRH (CRH US) and 42.7%-shareholder Raymond Barro (Chairman) at $5.20/share.
  • Conditions include Adbri’s shareholder approval and FIRB signing off. Optically, it doesn’t appear to be a knockout price. However, Adbri’s share price has laboured since the onset of Covid.
  • The Scheme Booklet is now out, with a Scheme Meeting to be held on the 12th June. Expected implementation on the 1 July. IE says fair & reasonable.

Equinor ASA: Natural Gas Market & Horizon Expansion & 3 Other Major Drivers

By Baptista Research

  • Equinor ASA, a leading Norwegian energy company, showed impressive operational performance in Q1 2023, backed by strong production and an increase in liquid prices.
  • Equinor’s team highlighted the adjusted operating income of $7.5 billion, adjusted net income of $2.7 billion, as well as robust cash flow after tax of $5.8 billion.
  • Earnings per share were identified at $0.96.

Southern Copper Corporation: What Is The Current Impact Of Copper Market Dynamics & Prices – Major Drivers

By Baptista Research

  • Southern Copper Corporation performed admirably in 2023 despite facing some challenges.
  • The company reported net sales of $9,896 million, a decrease of 1.5% compared to 2022.
  • This was primarily due to higher copper and molybdenum sales volumes, increased molybdenum and silver prices, and a reduction in copper and zinc metal prices along with decreased silver and zinc sales volumes.

Valero Energy Corporation: Growth in Renewable Diesel and Ethanol A Major Growth Catalyst? – Major Drivers

By Baptista Research

  • Valero Energy Corp had a strong Q1 2024, achieving a net income of $1.2 billion thanks to their team’s ability to maximise output despite having extensive planned maintenance across their refining system.
  • A large part of their achievement was due to stable refining margins that were sustained by restricted product supplies, influenced by heavy seasonal refining turnarounds and geopolitical events.
  • Furthermore, their diesel demand was unseasonably high, and their gasoline demand was on par with last year’s levels.

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May 05
0

Daily Brief TMT/Internet: Marathon Digital Holdings, Alphabet , Intel Corp, KLA-Tencor Corp, Microsoft Corp, T Mobile Us Inc and more

By | Daily Briefs, TMT/Internet

In today’s briefing:

  • S&P500 Index Rebalance: Bitcoin Miner Is a SPCY Add
  • Alphabet Inc.: Are Its AI-Powered Business Strategies Just Not Good Enough? – Major Drivers
  • Intel Corporation: An Analysis Of AI and Accelerator as Revenue Drivers for Intel
  • KLA-Tencor Corp – KLA Corporation: A Segment-Wise Breakdown Of Key Growth Areas! – Major Drivers
  • Microsoft Corporation: Will The Cloud & AI Infrastructure Investment & The Introduction Of New AI Models Give It An Edge Over Alphabet & Other Rivals? – Major Drivers
  • T-Mobile US: Is The 5G Home Internet (FWA) Expansion Giving It An Edge Over Competitors? – Major Drivers

S&P500 Index Rebalance: Bitcoin Miner Is a SPCY Add

By Brian Freitas

Alphabet Inc.: Are Its AI-Powered Business Strategies Just Not Good Enough? – Major Drivers

By Baptista Research

  • Alphabet Inc. reported a strong first quarter in 2024, fueled by robust performance from its search engine, YouTube, and cloud businesses.
  • The company’s annual revenue grew from $100 billion to over $300 billion in six years.
  • It predicts that YouTube and Cloud will reach a combined annual run rate of more than $100 billion by the end of 2024.

Intel Corporation: An Analysis Of AI and Accelerator as Revenue Drivers for Intel

By Baptista Research

  • Intel Corporation has exhibited sturdy Q1 outcomes, with revenue delivery being on par and the Earnings Per Share (EPS) exceeding the set guidance.
  • This demonstrates the company’s growth in revenue generation and effective cost management strategy.
  • However, the trends for the first half of the year were moderately weaker than originally forecasted, triggered by some near-term supply constraints.

KLA-Tencor Corp – KLA Corporation: A Segment-Wise Breakdown Of Key Growth Areas! – Major Drivers

By Baptista Research

  • KLA Corporation reported its Q1 2024 earnings call, where its performance indicates a blend of promising and challenging factors.
  • The company’s revenues for the quarter noted a solid $2.36 billion, surpassing its guidance range midpoint.
  • Further, its exit from the flat panel business contributed to elevated EPS results on both non-GAAP and GAAP fronts, surpassing the adjusted midpoint guidance issued on March 18.

Microsoft Corporation: Will The Cloud & AI Infrastructure Investment & The Introduction Of New AI Models Give It An Edge Over Alphabet & Other Rivals? – Major Drivers

By Baptista Research

  • Microsoft’s Fiscal Year 2024 Third Quarter Earnings revealed that Microsoft continues to leverage and further deploy artificial intelligence (AI) initiatives and solutions through its cloud ecosystem.
  • It underscores Microsoft’s strategic direction in intensifying its capabilities in artificial intelligence and cloud infrastructures based on market needs, with Satya Nadella, Chairman and Chief Executive Officer of Microsoft, pointing out the continuing success of Microsoft Cloud surpassing $35 billion in revenue, a growth of 23%.
  • Baptista Research looks to evaluate the different factors that could influence the company’s price in the near future and attempts to carry out an independent valuation of the company using a Discounted Cash Flow (DCF) methodology.

T-Mobile US: Is The 5G Home Internet (FWA) Expansion Giving It An Edge Over Competitors? – Major Drivers

By Baptista Research

  • T-Mobile US has demonstrated impressive performance in its Q1 2024 earnings, showing continuous growth and advancing its guidance for the year.
  • A key highlight is that the company’s postpaid phone net additions are consistent with the same period last year, even as the industry’s net adds have reduced by a double-digit percentage.
  • This shows that T-Mobile’s best network value proposition is popular among customers, as evidenced by the growth in postpaid phone gross adds over the past four quarters and record-low Q1 postpaid phone churn.

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May 05
0

Daily Brief Industrials: West Japan Railway Co, Carrier Global , Caterpillar Inc, Honeywell International, Northrop Grumman, Union Pacific and more

By | Daily Briefs, Industrials

In today’s briefing:

  • Last Week in Event SPACE: Aussie Tax-Loss Selling, Austal, West Japan Railway, PICC/PICC P&C
  • Carrier Global Corporation: Can It Increase Its Productivity & Show Resilience Against Rising Material Costs? – Major Drivers
  • Caterpillar Inc.: A Deep Dive Into Its Key Areas Of Competitive Advantage & Recent Strategic Investments! – Major Drivers
  • Honeywell International: Will Their Improved Performance In Energy and Sustainability Solutions (ESS) Expected To Propel Their Growth? – Major Drivers
  • Northrop Grumman Corporation: Are Autonomous Aircrafts Expected To Be A Major Growth Catalyst In The Future? – Major Drivers
  • Union Pacific Corporation: Will Its Improving Network Capability & Infrastructure Investment Pay Off? – Major Drivers

Last Week in Event SPACE: Aussie Tax-Loss Selling, Austal, West Japan Railway, PICC/PICC P&C

By David Blennerhassett

  • Tax-Loss Selling‘s a subject of interest in Australia. Retail investors will take gains on stocks which run up in price, or get taken over, then look for losses to offset.
  • Investors are caught out as the Aussie government “approves” Hanwha Ocean (042660 KS) buyng Austal Ltd (ASB AU). There is evidently a lot more going on in the background. 
  • West Japan Railway Co (9021 JP) announces a biggish buyback. One could buy dips, but one should probably not chase. For that, suggest this acts as a range trade.

Carrier Global Corporation: Can It Increase Its Productivity & Show Resilience Against Rising Material Costs? – Major Drivers

By Baptista Research

  • Carrier Global Corporation’s Q1 2024 results showed a robust start to the year with adjusted EPS growth of 19% on low-single-digit organic sales growth and 280 basis points of adjusted margin expansion.
  • With the addition of 12,000 new members from Viessmann Climate Solutions, the company is poised for another year of significant margin expansion and solid growth.
  • Its lean journey and sustained productivity have contributed greatly to these results.

Caterpillar Inc.: A Deep Dive Into Its Key Areas Of Competitive Advantage & Recent Strategic Investments! – Major Drivers

By Baptista Research

  • Caterpillar’s earnings for the first quarter of 2024 highlighted a strong quarter with sales and revenues maintaining levels consistent with the last year, largely meeting the company’s expectations.
  • A key aspect was the continuation of healthy demand for its products and services across major end markets.
  • Thanks to its robust balance sheet and free cash flow, the company was able to allocate a remarkable $5.1 billion for share repurchases and dividends during the quarter.

Honeywell International: Will Their Improved Performance In Energy and Sustainability Solutions (ESS) Expected To Propel Their Growth? – Major Drivers

By Baptista Research

  • Honeywell International Inc.’s first-quarter 2024 earnings reveals consistent growth in the company, exceeding its adjusted earning per share guidance and organic sales targets.
  • Despite the dynamic macroeconomic environment, the robust execution of Honeywell’s Accelerator operating system and the company’s diversified technology portfolio has led to significant performance gains.
  • With recovery in key areas of Honeywell’s short-cycle portfolio and sustained growth in its long-cycle Aerospace and energy businesses, the company demonstrates a positive momentum in its financial results.

Northrop Grumman Corporation: Are Autonomous Aircrafts Expected To Be A Major Growth Catalyst In The Future? – Major Drivers

By Baptista Research

  • Northrop Grumman, a global aerospace and defense technology company, has reported a strong start for the financial quarter, with revenues increasing 9% year-over-year due to growth in all four of its sectors.
  • The firm had implemented productivity and cost efficiency measures, which has led to its segment operating margin dollars increasing by 10%.
  • These efforts have also resulted in 15% EPS growth.

Union Pacific Corporation: Will Its Improving Network Capability & Infrastructure Investment Pay Off? – Major Drivers

By Baptista Research

  • Union Pacific Corporation, one of the leading railroad operators in the United States, presents its Q1 2024 results with notable success in operating revenue and increased net income.
  • Despite numerous economic challenges including reduced volumes and lower fuel surcharge revenues, Union Pacific continues to pull its weight with core pricing gains and robust financial growth.
  • In Q1 2024, Union Pacific reported a net income of USD 1.6 billion or $2.69 per share, demonstrating a growth from Q1 2023’s net income that was parallel in value but at $2.67 per share.

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May 05
0

Daily Brief Consumer: L’Occitane, ZEEKR, Altria Group, Comcast Corp Class A, Keurig Dr Pepper and more

By | Consumer, Daily Briefs

In today’s briefing:

  • Weekly Deals Digest (05 May) – L’Occitane, C&F Logistics, KFC Japan, Austal, Hyundai Marine, ZEEKR
  • (Mostly) Asia-Pac M&A: L’Occitane, KFC Holdings Japan, CSR, Azure Minerals, CIMC, Chilled & Frozen
  • ZEEKR IPO: Attractive ~$4.8B Midpoint Valuation Offers At Least 30% Upside
  • Altria Group: Can Its Oral Tobacco Category and Smoke-Free Products Reshape The Future? – Major Drivers
  • Comcast Corporation: A Story Of Superior Product Innovation & An Improving Market Position! – Major Drivers
  • Keurig Dr Pepper Inc.: A Tale Of Building Momentum In U.S. Refreshment Beverages! – Major Drivers

Weekly Deals Digest (05 May) – L’Occitane, C&F Logistics, KFC Japan, Austal, Hyundai Marine, ZEEKR

By Arun George

(Mostly) Asia-Pac M&A: L’Occitane, KFC Holdings Japan, CSR, Azure Minerals, CIMC, Chilled & Frozen

By David Blennerhassett

ZEEKR IPO: Attractive ~$4.8B Midpoint Valuation Offers At Least 30% Upside

By Andrei Zakharov

  • Geely-Backed ZEEKR set terms for U.S. IPO: EV maker offers 17.5M American depositary shares (ADSs) at the price range of $18-$21, implying a market cap of ~$4.8B at the midpoint.
  • Geely Auto, Mobileye and CATL have indicated a non-binding interest in subscribing for an aggregate of up to ~$349M worth of the ADSs being offered in this offering.
  • I have a positive view of ZEEKR IPO as the offering will be priced significantly below last round valuation of ~$13B.  

Altria Group: Can Its Oral Tobacco Category and Smoke-Free Products Reshape The Future? – Major Drivers

By Baptista Research

  • Altria Group recent 2024 first quarter earnings highlighted numerous key insights into the company’s performance and future prospects.
  • Altria’s CEO, Billy Gifford, highlighted that the company made significant progress despite the challenging business environment.
  • The company is also committed to investment returns, as demonstrated by its sale of a portion of its investment in ABI and the subsequent expansion of its share repurchase program.

Comcast Corporation: A Story Of Superior Product Innovation & An Improving Market Position! – Major Drivers

By Baptista Research

  • Comcast Corporation reported Q1 earnings recently highlighted by a strategic execution where the company maintained dominance in a competitive and evolving market.
  • The company’s resilient capital allocation strategy and strong balance sheet place it in a favorable position, allowing it to invest aggressively in its six diverse growth businesses- Residential Broadband, Wireless, Business Services, Theme Parks, Studios, and Streaming.
  • These sectors made up more than 55% of the company’s total revenue in Q1, and this proportion is set to grow.

Keurig Dr Pepper Inc.: A Tale Of Building Momentum In U.S. Refreshment Beverages! – Major Drivers

By Baptista Research

  • Keurig Dr Pepper (KDP) has performed well in the first quarter of 2024, with solid consolidated sales growth and double-digit earnings per share (EPS) growth.
  • Key drivers of this performance include healthy momentum in its U.S. refreshment beverages and international segments, alongside a significant sequential recovery in U.S. Coffee results.
  • This strong start to the year has enhanced the visibility of KDP’s unchanged growth outlook for 2024.

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May 05
0

Daily Brief Health Care: Astrazeneca Plc Spons Adr, Bristol Myers Squibb Co, Dexcom Inc, Edwards Lifesciences, Gilead Sciences and more

By | Daily Briefs, Healthcare

In today’s briefing:

  • AstraZeneca PLC: How Will Its Expansion In Vaccines & Cell Therapy Play Out? – Major Drivers
  • Bristol-Myers Squibb Company: A Deep Dive Into The Progress Of Its Clinical Portfolio! – Major Drivers
  • DexCom Inc.: Why Are We Bullish On This Med-Tech Player Despite The Highly Evident Challenges Ahead? – Major Drivers
  • Edwards Lifesciences Corporation: Increased Investment in Field Resources and Patient Access Initiatives! – Major Drivers
  • Gilead Sciences: Acquisition of CymaBay Therapeutics Enhancing Liver Disease Portfolio & 6 Major Drivers

AstraZeneca PLC: How Will Its Expansion In Vaccines & Cell Therapy Play Out? – Major Drivers

By Baptista Research

  • Based on the Q1 2024 results earnings call for AstraZeneca, the British multinational pharmaceutical and biopharmaceutical company seems to be on a steady growth trajectory, but like all corporations, it’s not without its risks.
  • In terms of its achievements, AstraZeneca reported its first quarter of 2024 with a 19% growth in total revenue, reflecting high demand for its products.
  • Core earnings per share rose by 13%.

Bristol-Myers Squibb Company: A Deep Dive Into The Progress Of Its Clinical Portfolio! – Major Drivers

By Baptista Research

  • It is clear from Bristol-Myers Squibb’s first quarter 2024 earnings that the company has had a strong start to the year, even as it navigates some challenges.
  • The firm’s performance during this time showcased the strength and potential of its commercial portfolio and the progress it has made in advancing its pipeline.
  • Key brands such as Eliquis, Opdualag, Reblozyl, Yervoy, and Breyanzi have demonstrated significant strength, contributing to the company’s overall performance.

DexCom Inc.: Why Are We Bullish On This Med-Tech Player Despite The Highly Evident Challenges Ahead? – Major Drivers

By Baptista Research

  • Dexcom, Inc., particularly known for its continuous glucose monitoring (CGM) technology, consistently showcased strong performance in the first quarter of 2024 with an organic revenue growth of 25% compared to the first quarter of 2023.
  • This noteworthy surge is credited to the substantial demand for Dexcom CGM, seen as customers increasingly value its leading product performance and unique user experience.
  • The shift towards Dexcom’s CGM technology has been significant, especially since the launch of G7 in the U.S., which enabled Dexcom to attract a broad range of new prescribers and improve its impact within primary care, resulting in growing demand from people with diabetes.

Edwards Lifesciences Corporation: Increased Investment in Field Resources and Patient Access Initiatives! – Major Drivers

By Baptista Research

  • Edwards Lifesciences Corporation recorded robust first quarter 2024 results, demonstrating growth on numerous fronts.
  • The company’s total sales rose by 10% to $1.6 billion against the same period last year, leading Edwards to raise its 2024 sales guidance to the high end of 8% to 10%.
  • This highlights the company’s successful strategic direction, underscored by its substantial investments across transcatheter platforms which are addressing patient needs associated with aortic, mitral, and tricuspid diseases.

Gilead Sciences: Acquisition of CymaBay Therapeutics Enhancing Liver Disease Portfolio & 6 Major Drivers

By Baptista Research

  • Gilead Sciences Inc. reported a solid first quarter of 2024.
  • Total product sales, exclusive of Veklury, rose 6% year-over-year to $6.1 billion.
  • Growth was driven primarily by demand across its HIV, oncology, and liver disease verticals.

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