Smartkarma Daily Briefs

By Small Cap Consumer Research

Nidec reported a solid set of quarterly numbers, except for another huge structural loss in its EV business.
Nidec saw sales growth and operating profitability improvements in all other segments
We continue to think that Nidec is attractively priced at under 20x EV/ EBIT given structural growth drivers

Golden Egg Was Not Lost, but How Long Can Keisei Electric Railway Buy Time?

By Aki Matsumoto

Until the “parent-subsidiary (affiliate) listing” is resolved, the value of parent company isn’t usually reflected. If Keisei has some business interest in holding OLC shares, it’s responsible for explaining it.
If OLC shares were mostly sold, there’d be nothing left for Keisei, which couldn’t find strategy for using cash, so the decision of not losing the growing affiliate isn’t bad.
This small sale is to buy time until a clear growth strategy is found, but once the ratio of foreign shareholders exceeds 1/3, building time will likely become more difficult.

Lasertec (6920 JP): Further to Fall

By Scott Foster

Lasertec has dropped more than 20% in the past week and a half, but is still selling at more than 60x EPS guidance for FY Jun-24.
Weak orders at ASML, disappointing guidance from TSMC and doubts about Intel’s equipment purchases cast doubt on Lasertec’s growth potential.
Between December 2021 and June 2022, Lasertec’s share price dropped by more than 50%. Wait for Q3 results before reaching for a falling knife.

UGRO: 1Q Preview: When Ho-Hum is OK; Reiterate Buy, PT

We are reiterating our Buy rating, $8 price target and projections for urban-gro with the company reporting 1Q24 (March) results after the close on Tuesday.
We believe, given the timing of the initial guidance (March 28th), management will achieve 1Q results and reiterate initial 2024 guidance of revenue over $84 million and positive Adjusted EBITDA. Further we expect continued positives in terms of backlog and the potential for closed environment agriculture (“CEA”) to eventually shift into a positive driver.
Given prior quarterly misses, we believe “making” guidance will be considered a positive by investors, and we look forward to urban-gro hopefully moving on the offensive later in 2024 as their integrated business model captures further cannabis and non-cannabis market share.

💡 Before it’s here, it’s on Smartkarma

The Smartkarma Preview Pass is your entry to the Independent Investment Research Network

✓ Unlimited Research Summaries
✓ Personalised Alerts
✓ Custom Watchlists
✓ Company Data and News
✓ Events & Webinars

Apr 24

Daily Brief Health Care: Beijing Tiantan Biological Products, HK inno.N, 10X Genomics, Perrigo, Halozyme Therapeutics, Merit Medical Systems, QuidelOrtho , Shield Therapeutics, Acadia Healthcare Co, Blueprint Medicines and more

By Smartkarma Daily Briefs | Daily Briefs, Healthcare

In today’s briefing:

Tiantan (600161CH) To Acquire Weiguang (002880CH)- New King Rises in China’s Blood Products Industry
HK Inno.N (195940 KS): 2024 Will See Robust Profit Growth On Growing Momentum of Key Drug
10x Genomics Inc.: Initiation Of Coverage – Increased Customer Adoption of the GEM-X Platform & Other Major Drivers
Perrigo Company plc’s fourth quarter and 2023 fiscal year results displayed stable growth in the company’s core operations
Halozyme Therapeutics: Initiation Of Coverage – A Solid Pipeline Supporting Future Growth! – Major Drivers
Merit Medical Systems: Initiation Of Coverage – A Robust Pipeline & Exciting New Launches Paving The Way Forward! – Major Drivers
QuidelOrtho Corporation: Initiation Of Coverage – How Long Will The Increasing Non-Respiratory Revenue Last? – Major Drivers
Shield Therapeutics – Termination of coverage
Acadia Healthcare: Initiation Of Coverage – Potential To Expand DAYBUE in International Markets Can Be A Game Changer! – Major Drivers
Blueprint Medicines Corporation: Initiation Of Coverage – An Analysis Of The Strategy Around Elenestinib & CDK2 Program Expectations! – Major Drivers

Tiantan (600161CH) To Acquire Weiguang (002880CH)- New King Rises in China’s Blood Products Industry

By Xinyao (Criss) Wang

Guangming District State-owned Assets Supervision and Administration Bureau reached a cooperation agreement with China National Biotec to establish a joint venture, which will become the new controlling shareholder of Weiguang.
Since Tiantan is already Sinopharm’s subsidiary, there will be horizontal competition issue in the field of blood product business between Tiantan and Weiguang, mainly due to significant business overlap.
Some spin-offs and integrations are expected between Tiantan and Weiguang. As the reform of SOE enters a new stage, the two companies could end up very different.

HK Inno.N (195940 KS): 2024 Will See Robust Profit Growth On Growing Momentum of Key Drug

By Tina Banerjee

HK inno.N (195940 KS) is expected to see significant improvement in operating profit margin this year to 10.9% (vs. 8% in 2023).
Growing sales of flagship drug K-CAB, increasing capacity utilization in new IV fluids plant, and improving profitability of health and beauty products segment, will be three important margin drivers.
With accelerating global presence, HK inno is on track to achieve its target of entering 100 countries by 2028 and achieve global sales of KRW2 trillion ($1.4 billion) by 2030.

10x Genomics Inc.: Initiation Of Coverage – Increased Customer Adoption of the GEM-X Platform & Other Major Drivers

10x Genomics witnessed good momentum in 2023, achieving a 20% growth in total revenue amounting to $ 619 million.
The primary contributing factor of this growth was the launch of Xenium that resulted in greater than 250 instrument sales in just its first year.
The company’s entry into spatial biology was successful with spatial revenue amounting to over $135 million for the year.

Perrigo Company plc’s fourth quarter and 2023 fiscal year results displayed stable growth in the company’s core operations

Perrigo Company plc’s fourth quarter and 2023 fiscal year results displayed stable growth in the company’s core operations, with an organic net sales increase of 2% for the year and EPS growth of 25% to $2.58, exceeding the prior year.
Dimension such as significant growth in Skin Care, nutrition, and women’s health categories, as well as solid progress in the healthy lifestyle sector, underscore the company’s positive performance.
Also contributing were supply chain reinvention program savings of $40 million and the strategic acquisition of HRA offering synergies of $30 million.

Halozyme Therapeutics: Initiation Of Coverage – A Solid Pipeline Supporting Future Growth! – Major Drivers

Halozyme Therapeutics Inc. showcased a strong financial and operating result in the fourth quarter and full year of 2023, fueled by leading differentiating drug delivery technologies ENHANZE and Auto-Injectors, as well as the commercial products XYOSTED and Hylenex.
For 2023, the company delivered a 26% year-over-year increase in total revenue to $829 million and recorded a $448 million high in royalty revenue, indicating a 24% rise year-over-year.
Adjusted EBITDA also experienced an increase of 19% to $426 million and non-GAAP diluted earnings per share growth of 25% to $2.77 for the full year 2023.

Merit Medical Systems: Initiation Of Coverage – A Robust Pipeline & Exciting New Launches Paving The Way Forward! – Major Drivers

Merit Medical Systems Inc, during its Fourth Quarter of Fiscal Year 2023 earnings, revealed relatively positive results.
The company reported a fourth quarter total revenue of $324.5 million, a 10.6% increase year-on-year.
The stronger-than-expected revenue growth was mainly driven by a robust organic growth across product categories and contributions from both U.S. and international markets.

QuidelOrtho Corporation: Initiation Of Coverage – How Long Will The Increasing Non-Respiratory Revenue Last? – Major Drivers

QuidelOrtho reported total revenues of $3 billion for the full year 2023, a decrease of 26% from the previous year.
The drop was largely attributed to a lower respiratory season in 2023 compared to the prior year, specifically in COVID-19 related testing.
The company’s non-respiratory revenue segments, however, exhibited a growth of 5% for the year, suggesting potential opportunities in these areas.

Shield Therapeutics – Termination of coverage

By Edison Investment Research

Edison Investment Research is terminating coverage on ABC Arbitrage (ABCA), paragon (PGN), Foresight Solar Fund (FSFL), Kendrion (KENDR), Lithium Power International (LPI), Triple Point Energy Transition (TENT), 4iG (4IG), e-therapeutics (ETX), Pharnext (ALPHA) and Shield Therapeutics (STX). Please note you should no longer rely on any previous research or estimates for this company. All forecasts should now be considered redundant. Previously published reports can still be accessed via our website.

Acadia Healthcare: Initiation Of Coverage – Potential To Expand DAYBUE in International Markets Can Be A Game Changer! – Major Drivers

ACADIA Pharmaceuticals announced its fourth-quarter and full-year results for 2023.
The company’s CEO, Steve Davis, stated that ACADIA had transformed its business in 2023 by becoming a cash flow positive company with two first-in-class commercial assets.
These assets include DAYBUE, a drug approved for treatment of Rett syndrome, and NUPLAZID, a treatment for Parkinson’s disease psychosis.

Blueprint Medicines Corporation: Initiation Of Coverage – An Analysis Of The Strategy Around Elenestinib & CDK2 Program Expectations! – Major Drivers

Blueprint Medicines enjoyed a successful fourth quarter of 2023, rounding off a pivotal year wherein AYVAKIT became their first and only approved medicine for patients with indolent systemic mastocytosis or ISM. In 2024, the company aims to drive longer-term growth by concentrating on three key business areas: the potential of AYVAKIT, advancing their portfolio of approved and investigational programs targeting mast cell mediated diseases, and maintaining a strong financial position.
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.
In this report, we have carried out a fundamental analysis of the historical financial statements of the company.

💡 Before it’s here, it’s on Smartkarma

The Smartkarma Preview Pass is your entry to the Independent Investment Research Network

✓ Unlimited Research Summaries
✓ Personalised Alerts
✓ Custom Watchlists
✓ Company Data and News
✓ Events & Webinars

Apr 24

Daily Brief Financials: Elite Commercial REIT, Nippon Prologis Reit, Cls Holdings and more

By Smartkarma Daily Briefs | Daily Briefs, Financials

In today’s briefing:

Elite Commercial REIT: Essential Assets at an Attractive Yield
J-REITs: LONG Nippon Prologis 3283 and SHORT Nippon Building Fund 8951 on Valuation and Fundamentals
CLS Holdings USA, Inc. – Outperforming a Difficult Nevada Market

Elite Commercial REIT: Essential Assets at an Attractive Yield

In Smartkarma Corporate Webinar | Elite Commercial REIT: Essential Assets at an Attractive Yield we conducted a fireside chat with Elite Commercial REIT.
Elite Commercial REIT is a Singapore real estate investment trust established with the investment strategy of principally investing, directly or indirectly, in commercial real-estate related assets in the United Kingdom.
The company has recently expanded its strategy to look at other commercial assets in the UK, beyond its existing portfolio of assets rented by the UK government.

This Insight is part of the Smartkarma Corporate Webinar series, supported by SGX through the Investor Education Fund.

J-REITs: LONG Nippon Prologis 3283 and SHORT Nippon Building Fund 8951 on Valuation and Fundamentals

By Jacob Cheng

In this insight, we look at the fundamentals of J-REITs. We look at overall Japan real estate, interest rate impact, as well as industry dynamics
We like logistics sector due to its strong industry fundamentals; we are more bearish on office as vacancy will see more fluctuation in terms of new supply
On the back of valuation and industry fundamentals, we suggest LONG Nippon Prologis REIT and SHORT Nippon Building Fund

CLS Holdings USA, Inc. – Outperforming a Difficult Nevada Market

By Water Tower Research

CLS Holdings is a vertically integrated cannabis company with core operations in Nevada.
The company owns and operates Oasis cannabis dispensary, one of the leading stores in Las Vegas.
CLS also has a state-of-the art extraction and manufacturing facility in Nevada and a suite of top-performing brands.

💡 Before it’s here, it’s on Smartkarma

The Smartkarma Preview Pass is your entry to the Independent Investment Research Network

✓ Unlimited Research Summaries
✓ Personalised Alerts
✓ Custom Watchlists
✓ Company Data and News
✓ Events & Webinars

Apr 24

Daily Brief Consumer: Anta Sports Products, Chokwang Leather, Tesla , Shimano Inc, Lululemon Athletica, ZEEKR, Fosun Tourism, Headlam, Meituan, Build A Bear Workshop and more

By Smartkarma Daily Briefs | Consumer, Daily Briefs

In today’s briefing:

Anta/Li Ning/Xtep: China Sportswear 1Q24 Update
Korea Small Cap Gem #28: Chokwang Leather – A Cheaper Way to Invest in Berkshire Hathaway
Tesla’s Won’t Fix It’s Worst Problems With Elon Musk In Charge
Shimano (7309) | Stuck in a Low Gear
Why Lululemon Isn’t Under Armour
ZEEKR IPO Valuation Update: Likely To Price IPO Below Last Round Valuation of ~$13B
Fosun Tourism (1992 HK): A Long-Awaited Upturn
Headlam Group – Strategy for growth in tougher market
Meituan (3690 HK): Lack of Clear Topline Driver Remains a Concern
BBW: Snapping the Store: Adding to the Product Mix; Reiterate Buy, $41 PT

Anta/Li Ning/Xtep: China Sportswear 1Q24 Update

By Steve Zhou, CFA

Anta Sports Products (2020 HK), Li Ning (2331 HK), and Xtep International (1368 HK) have announced 1Q24 operational updates, with additional color given in post conference calls.
Anta: Retail sales started to accelerate in mid-March, and March were better than January and February.
Li Ning: offline retail sales down low-single-digit in 1Q24, driven by wholesale down mid-single-digit, while retail grew mid-single-digit. E-commerce grew 20-30% yoy.

Korea Small Cap Gem #28: Chokwang Leather – A Cheaper Way to Invest in Berkshire Hathaway

By Douglas Kim

At the end of 2023, Chokwang Leather owned 190.3 billion won worth of Berkshire Hathaway shares, which represents 56% of Chokwang Leather’s market cap.
Chokwang Leather also has 3.1 million treasury shares (46.6% of outstanding shares). It has the highest levels of treasury shares as a percentage of outstanding shares among Korean stocks.
Chokwang Leather is likely to be one of the key companies to be targeted to improve its corporate governance as part of the Corporate Value Up program.

Tesla’s Won’t Fix It’s Worst Problems With Elon Musk In Charge

By Vicki Bryan

Plunging sales & growing losses, severe price cuts & layoffs, failed FSD, M2 dropped for Robotaxi, and more, confirm that Elon Musk won’t fix Tesla’s most serious problems—which he created.
He still demands his “unfathomable” pay package be restored, and his feckless, captured Tesla Board is doing exactly what he wants.
But what Tesla’s Board should do, what it should have done years ago, is fire Elon Musk, the single greatest risk to Tesla’s future.

Shimano (7309) | Stuck in a Low Gear

By Small Cap Consumer Research

Shimano continues to reel from a slowdown in bike and fishing tackle sales post Covid
1Q operating profit beat the analyst consensus, but the upward revision to full year is minor and falls short of street estimates
The stock has priced in an improving outlook. However, valuations are now looking full compared to historical levels.

Why Lululemon Isn’t Under Armour

By Investment Talk

On March 21st, Lululemon reported FY23 results. All things considered, the results were good. Guidance, however, caused some upset. Lululemon shares are down ~29% this year; after being down just 6% before the report, and is currently the 8th worst-performing stock in the S&P 500.
Lululemon’s implied 11.5% revenue growth for 2024 is a notable deceleration from years prior; having averaged an annual revenue growth rate of 24.4% over the last 5 years.
This year’s revenue guidance is closer to, but still behind, the 5 years before that; where Lululemon averaged 15.7% annual revenue growth.

ZEEKR IPO Valuation Update: Likely To Price IPO Below Last Round Valuation of ~$13B

By Andrei Zakharov

ZEEKR, a Chinese EV maker, plans to raise up to $500M in US IPO. The company put its offering on hold in 2023 due to a mismatch in valuation expectations.
A fast-growing company will offer ADSs, and the size of the company’s potential IPO is down from their initial target of up to $1B, a negative sign for ZEEKR shares.
EV stocks have significantly underperformed the broader market this year amid price wars, slow growth ahead and intense competition, especially in China.

Fosun Tourism (1992 HK): A Long-Awaited Upturn

By Osbert Tang, CFA

Fosun Tourism (1992 HK) saw a healthy 15.8% overall business volume growth in 1Q24, with net profit sustaining improvement. This should justify a catch-up in share price.
The cumulative bookings for Club Med for 1H24 have increased 13% YoY, while those for 2H24 have increased 10%. Positive forward bookings indicate an encouraging outlook.
Four new Club Med resorts to be opened in 2024 and the increase in attractiveness of Hainan after it turns into a duty-free island by 2025 are both drivers.

Headlam Group – Strategy for growth in tougher market

By Edison Investment Research

Headlam Group has laid out an ambitious long-term revenue target of between £900m and £1bn, as it seeks to grow its share of the UK floor coverings distributor market. Despite a challenging backdrop due to the low level of residential housing transactions, management is seeking to expand each of its sales channels: Trade Counters, Larger Customers, Regional Distribution and Europe & Other. The FY23 results reflected the more challenging environment and the group trades at a discount to its long-term average EV/sales multiple for FY24.

Meituan (3690 HK): Lack of Clear Topline Driver Remains a Concern

By Eric Chen

Meituan has navigated through its most challenging period since IPO as competition moderates and reorg comes close to completion.
1Q results should kick off an upward earnings cycle through to the end of 2024 when the company’s efforts to revamp loss-making new initiative businesses gather pace.
That said, lack of clear topline driver remains the key reason for our cautious view about the sustainability of re-rating. Maintain neutral.

BBW: Snapping the Store: Adding to the Product Mix; Reiterate Buy, $41 PT

We are reiterating our Buy rating, projections and $41 price target for Build-A-Bear Workshop after visiting stores in Long Island and Connecticut.
Post-Easter, Build-A-Bear has expanded the product mix both large and small, adding giant versions of key “furry friends” and rolling out new Mini Beans to drive incremental add-on purchases.
Further, with graduation season just starting (from pre-K to college), Build-A-Bear is ready with fun and unique items for every grad.

💡 Before it’s here, it’s on Smartkarma

The Smartkarma Preview Pass is your entry to the Independent Investment Research Network

✓ Unlimited Research Summaries
✓ Personalised Alerts
✓ Custom Watchlists
✓ Company Data and News
✓ Events & Webinars

Apr 24

Most Read: J&T Global Express , Amvis Holdings Inc, Great Wall Motor, Pou Chen, Sichuan Baicha Baidao Industrial, Elite Commercial REIT, HMM Co., Ltd., Japan Post Holdings, Nidec Corp and more

By Smartkarma Daily Briefs | Daily Briefs, Most Read

In today’s briefing:

J&T Global Express (1519 HK): The US$9.9 Billion Lock up Expiry
Updated TOPIX Big April Basket Flows; More Big Flows and ¥270bn a Side
RMB Dual Counter Trading Is Coming – This Changes AH Relationships
Quiddity Leaderboard TDIV Jun 24: LONGs up 6% Vs SHORTs in a Month; Time to Update
Sichuan Baicha Baidao IPO Trading – Tepid Demand, While Peers Have Corrected
Elite Commercial REIT: Essential Assets at an Attractive Yield
Find Out When HMM’s Upcoming Early Redemption Requests Might Drop
Japan Post Holdings Update (6178.JP)- Catalysts to Be Delivered
Nidec (6594) | More EV Losses
Back Testing the End of Mandatory Lock-Up Periods Monthly Data in Korea

J&T Global Express (1519 HK): The US$9.9 Billion Lock up Expiry

By Arun George

J&T Global Express (1519 HK)’s 180-day IPO lock-up period for 88% of outstanding shares expires on 24 April. The shares exiting the lock-up period are worth US$9.9 billion.
The likely sellers will be the Series pre-A1, pre-A2, A and B investors as are they are materially in the money at the last close price.
J&T has returned to organic growth with a shift to profits and declining cash burn. While the last close is 17% below the IPO price, the shares are fairly valued.

Updated TOPIX Big April Basket Flows; More Big Flows and ¥270bn a Side

By Travis Lundy

Several days ago I published a piece showing the data for TOPIX flows for April month-end.
This is an update reflecting new data companies have reported to regulators, one large correction to a data provider’s data, and one Very Large Flow.
I believe that the revised data is more accurate. And there is more flow. With a spreadsheet attached.

RMB Dual Counter Trading Is Coming – This Changes AH Relationships

By Travis Lundy

A week after the State Council issued “Several Opinions” (关于加强监管防范风险推动资本市场高质量发展的若干意见》), the CSRC announced Friday five capital market cooperation measures with HK Connect. The goals are to increase cross-border investor flows.
They include: a broader range of ETFs in Connect, including REITs in both directions, include RMB counters in Southbound, improve mutual recognition of funds, increasing China IPOs in Hong Kong.
RMB Dual Counters Southbound-eligible will take time. They have some homework, but it is on the “To Do” list “as soon as possible and smoothly.” Watch impact on H/A Pairs.

Quiddity Leaderboard TDIV Jun 24: LONGs up 6% Vs SHORTs in a Month; Time to Update

By Janaghan Jeyakumar, CFA

In this insight, we take look at Quiddity’s expectations for index changes and capping flows for the TDIV Index for the June 2024 index rebal event.
Since my last insight, my index change expectations and flow expectations have changed significantly.
My latest estimate for one-way flow in June 2024 is US$1.06bn (down from US$1.22bn a month ago).

Sichuan Baicha Baidao IPO Trading – Tepid Demand, While Peers Have Corrected

Sichuan Baicha Baidao Industrial (2555 HK) (SBBI) raised around US$330m in its HK IPO.
SBBI sells new-style tea drinks through its ChaPanda stores. According to F&S, SBBI ranked third in China’s new-style tea shop market with a market share of 6.8% in FY23.
We have looked at the company’s performance and valuations in our past note. In this note, we talk about the trading dynamics.

Elite Commercial REIT: Essential Assets at an Attractive Yield

In Smartkarma Corporate Webinar | Elite Commercial REIT: Essential Assets at an Attractive Yield we conducted a fireside chat with Elite Commercial REIT.
Elite Commercial REIT is a Singapore real estate investment trust established with the investment strategy of principally investing, directly or indirectly, in commercial real-estate related assets in the United Kingdom.
The company has recently expanded its strategy to look at other commercial assets in the UK, beyond its existing portfolio of assets rented by the UK government.

This Insight is part of the Smartkarma Corporate Webinar series, supported by SGX through the Investor Education Fund.

Find Out When HMM’s Upcoming Early Redemption Requests Might Drop

By Sanghyun Park

Despite this pattern persisting for years, there has still been a significant price impact each time it surfaces. Therefore, we should pay attention to the upcoming CB conversion schedule.
A consistent observation is that the price impact is most significant at the announcement of early redemption requests.
The anticipated announcement dates for the forthcoming early redemption requests are: around May 20th (195th conversion), around September 20th (196th conversion), and around March 20th of next year (197th conversion).

Japan Post Holdings Update (6178.JP)- Catalysts to Be Delivered

By Rikki Malik

Postal price hike approved swinging the Post business from a loss to a profit
Cancellation of 7.36% of outstanding shares from the latest buyback
Management Plan to be released in May will provide further details on improving ROE and PB

Nidec (6594) | More EV Losses

Nidec reported a solid set of quarterly numbers, except for another huge structural loss in its EV business.
Nidec saw sales growth and operating profitability improvements in all other segments
We continue to think that Nidec is attractively priced at under 20x EV/ EBIT given structural growth drivers

Back Testing the End of Mandatory Lock-Up Periods Monthly Data in Korea

By Douglas Kim

In this analysis, we provide a back testing analysis of the end of mandatory lock-up periods monthly data in Korea in the past six months.
All in all, this end of mandatory lock-up period monthly data continues to provide some alpha generating results.
In the past six months, they have tended to work better in periods when KOSPI declines rather than in periods when KOSPI rises.

💡 Before it’s here, it’s on Smartkarma

The Smartkarma Preview Pass is your entry to the Independent Investment Research Network

✓ Unlimited Research Summaries
✓ Personalised Alerts
✓ Custom Watchlists
✓ Company Analytics and News
✓ Events & Webinars

Apr 24

Daily Brief ESG: Golden Egg Was Not Lost and more

By Smartkarma Daily Briefs | Daily Briefs, ESG

In today’s briefing:

Golden Egg Was Not Lost, but How Long Can Keisei Electric Railway Buy Time?

Golden Egg Was Not Lost, but How Long Can Keisei Electric Railway Buy Time?

By Aki Matsumoto

Until the “parent-subsidiary (affiliate) listing” is resolved, the value of parent company isn’t usually reflected. If Keisei has some business interest in holding OLC shares, it’s responsible for explaining it.
If OLC shares were mostly sold, there’d be nothing left for Keisei, which couldn’t find strategy for using cash, so the decision of not losing the growing affiliate isn’t bad.
This small sale is to buy time until a clear growth strategy is found, but once the ratio of foreign shareholders exceeds 1/3, building time will likely become more difficult.

💡 Before it’s here, it’s on Smartkarma

The Smartkarma Preview Pass is your entry to the Independent Investment Research Network

✓ Unlimited Research Summaries
✓ Personalised Alerts
✓ Custom Watchlists
✓ Company Data and News
✓ Events & Webinars

Apr 24

Daily Brief Technical Analysis: Shifting Exposure From Growth to Value; Downgrading Technology; Upgrades: Manufacturing & Utilities and more

By Smartkarma Daily Briefs | Daily Briefs, Technical Analysis

In today’s briefing:

Shifting Exposure From Growth to Value; Downgrading Technology; Upgrades: Manufacturing & Utilities

Shifting Exposure From Growth to Value; Downgrading Technology; Upgrades: Manufacturing & Utilities

By Joe Jasper

While the market remains in consolidation/pullback mode and we are not out of the woods, it is possible that further downside is limited from here on the S&P 500
Since late-February, we’ve discussed important gap support from 2/22/24 at 4983-5050 on the SPX, with bulls in control if above 4983. Selling last week has simply filled this gap
4920-4950 is now support near last week’s lows. Downgrade: Technology (XLK) to market weight. Upgrades: Manufacturing/Industrials (XLI) to overweight and Utilities (XLU) to market weight; individual stock buys highlighted.

💡 Before it’s here, it’s on Smartkarma

The Smartkarma Preview Pass is your entry to the Independent Investment Research Network

✓ Unlimited Research Summaries
✓ Personalised Alerts
✓ Custom Watchlists
✓ Company Data and News
✓ Events & Webinars

Apr 24

Daily Brief Thematic (Sector/Industry): Are Global Airlines Cooking Their Books? and more

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

In today’s briefing:

Are Global Airlines Cooking Their Books?
Ohayo Japan | US Stocks Climb
Oncology Will Continue to Dominate
Strong ASEAN Banks Poised Well to Face Uncertain Rate Outlook

Are Global Airlines Cooking Their Books?

By Mark Jolley

Airlines are among biggest accounting manipulators worldwide, AI tool shows
Airlines are more assertively managing their accounting as they struggle to reinvigorate profits hurt by Covid-19 pandemic
Chinese, Asian carriers have highest risk scores for accounting manipulation

Ohayo Japan | US Stocks Climb

US stocks rallied on Tuesday with the Nasdaq Composite leading, up 1.6% on upbeat earnings.
Speculation swirls on timing of next BOJ rate hike as policymakers gather for two-day meeting starting Thursday.
Mitsui joins a liquefied natural gas (LNG) project in the UAE, investing in a $7 billion venture to produce 10 million tons annually, about 15% of Japan’s demand.

Oncology Will Continue to Dominate

By Avien Pillay

In 2022, there were 20 million new cancer cases, and almost half of the cases were recorded in Asia.
Global oncology spend is forecast to grow at 11.99% between 2023 and 2027, and this is expected to be almost three times faster than the growth of total pharma spend.
Emerging companies continue to make big strides in oncology drug development and made up 71% of the new drug pipeline in 2022.

Strong ASEAN Banks Poised Well to Face Uncertain Rate Outlook

By Raghav Chandra Mathur

The strong showing of economic data from the US for the first three months of 2024 has spurred bets that the Federal Reserve’s is going to delay cutting rates towards the latter half of this year.
The narrative surrounding ‘imminent’ rate cuts that dominated market perception near the end of last year has been thwarted by the Fed’s chair Jerome Powell suggesting that rates are likely to remain elevated, without the market completely discounting the possibility of further rate hikes.
The immediate fallout from the higher-than-expected March inflation figures led to a systematic drop in Asian currencies, especially for some ASEAN based currencies, such as the Malaysian Ringgit, that have already been embattled by weakening currency against the dollar since the start of this year.

💡 Before it’s here, it’s on Smartkarma

The Smartkarma Preview Pass is your entry to the Independent Investment Research Network

✓ Unlimited Research Summaries
✓ Personalised Alerts
✓ Custom Watchlists
✓ Company Data and News
✓ Events & Webinars

Apr 24

Daily Brief ECM: Horizon Robotics Pre-IPO – The Positives – Rapid Revenue Growth and more

By Smartkarma Daily Briefs | Daily Briefs, ECM

In today’s briefing:

Horizon Robotics Pre-IPO – The Positives – Rapid Revenue Growth
Horizon Robotics Pre-IPO – The Negatives – Large Part of the Growth Stems from Its JV
ZEEKR IPO Valuation Update: Likely To Price IPO Below Last Round Valuation of ~$13B

Horizon Robotics Pre-IPO – The Positives – Rapid Revenue Growth

Horizon Robotics is looking to raise US$500m in its upcoming Hong Kong IPO. The bookrunners on the deal are GS, MS and China Securities.
Horizon Robotics (HR) is a provider of advanced driver assistance systems (ADAS) and autonomous driving (AD) solutions for passenger vehicles, empowered by its proprietary software and hardware technologies.
In this note, we talk about the positive aspects of the deal.

Horizon Robotics Pre-IPO – The Negatives – Large Part of the Growth Stems from Its JV