Smartkarma Daily Briefs

SK Square (402340 KS) announced a solid corporate value up plan pushing up its share price by 8.8% to 87,500 won on 22 November.
Major highlights of the corporate value up plan included cancellation of 200 billion won of treasury shares, higher ROE target, and achieve 1x PBR ratio (nearly double the current ratio).
Our NAV analysis of SK Square suggests NAV of 15.2 trillion won or 112,822 won per share, representing 29% higher than current share price.

LG Corp: Key Highlights from Its Corporate Value-Up Plan and Updated NAV Valuation

In this insight, we provide the major highlights of the solid Corporate Value Up plan announced by LG Corp on 22 November.
The key highlights include about 500 billion won worth of share cancellation by 2026, improved dividend policy, and higher ROE target.
Our base case NAV valuation analysis of LG Corp suggests implied NAV of 16.1 trillion won or NAV per share of 102,426 won, which is 33.4% higher than current price.

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Nov 23

Most Read: Kansai Electric Power, Kuaishou Technology, AppLovin , Hyosung Heavy Industries Corp, Sunic System Ltd., LG Energy Solution, Arcadium Lithium , Qualcomm Inc, Samsung Electronics Pref Shares and more

By Smartkarma Daily Briefs | Daily Briefs, Most Read

In today’s briefing:

KEPCO (9503 JP): Index Implications of US$3.5bn Primary + Secondary Offering
Hang Seng Index (HSI) Rebalance Preview: Inclusion Candidates for December
S&P500 December 2024 Forecasts: APP, APO and TPL Leading the Pack
Kansai Electric US$3.5bn Deal Updates – Has Delivered a Decent Correction, as Compared to past Deals
KOSPI200 Index Rebalance: Adds in Line; Couple of Deletes Are Surprises
KOSDAQ150 Index Rebalance: 8 Changes a Side; Fadu Appears to Be a 4 Letter Word
LG Chem’s Tax Alarm: Pillar Two Tax Could Soar Next Year + LGES Block Deal on the Horizon
Rio Tinto/Arcadium: Trading Wide Ahead Of 23rd Dec Vote
Qualcomm’s $4 Billion PC Chip Bet: Can It Dominate Beyond Smartphones?
Dividend Tax Cut Decision Scheduled for 25th, Next Monday: Watch Sammy Prefs

KEPCO (9503 JP): Index Implications of US$3.5bn Primary + Secondary Offering

Kansai Electric Power (9503 JP) is looking to raise up to US$3.5bn via a primary offering and a sale of Treasury shares. Pricing date is between 26-29 November.
Kansai Electric Power (9503 JP) is among the better performing stocks from the Electric Utilities industry and trades at higher valuations compared to its peers.
There will be a fair bit of passive buying with around 29% of the offering being bought at the time of settlement of the shares.

Hang Seng Index (HSI) Rebalance Preview: Inclusion Candidates for December

Post market close on Friday, Hang Seng Indexes will announce the changes for the Hang Seng Index (HSI INDEX) that will be implemented at the close on 6 December.
With no increase in the number of index constituents this calendar year, there could be inclusions in December. The process of getting to 100 index constituents could drag into 2026.
Short interest is especially large in Sinotruk, Giant Biogene, Kuaishou Technology, ASMPT and JD Logistics and inclusion could set off some short covering.

S&P500 December 2024 Forecasts: APP, APO and TPL Leading the Pack

By Dimitris Ioannidis

AppLovin (APP US) and Apollo Global Management (APO US) are the main candidates for addition by transition as they are passing the estimated transition threshold and have strong eligibility metrics.
Texas Pacific Land (TPL US) is the main candidate for addition by migration – despite failing eligibility – due to its significant distance above the minimum S&P500 mcap threshold.
Emcor Group (EME US) and Lennox International (LII US) are the next candidates for addition by migration with both passing eligibility and adequate distance above the mcap threshold.

Kansai Electric US$3.5bn Deal Updates – Has Delivered a Decent Correction, as Compared to past Deals

By Sumeet Singh

Kansai Electric Power (9503 JP) plans to raise up to US$3.5bn (including over-allocation) to partly fund its investment plans.
In our earlier note, we talked about the placement and ran the deal through our ECM framework.
In this note, we talk about the updates and share price performance since then.

KOSPI200 Index Rebalance: Adds in Line; Couple of Deletes Are Surprises

There will be 4 additions and 5 deletions for the Korea Stock Exchange KOSPI 200 (KOSPI2 INDEX) at the next rebalance to be implemented at the close on 12 December.
The 4 adds are exactly in line with our forecast but a couple of the deletions are surprises. Those two names were close deletes though.
The are some large shorts on a few deletes and there could be covering over the next few weeks as borrows are recalled and as the stocks drop.

KOSDAQ150 Index Rebalance: 8 Changes a Side; Fadu Appears to Be a 4 Letter Word

There will be 8 additions and 8 deletions for the KOSDAQ 150 Index (KOSDQ150 INDEX) at the next rebalance to be implemented at the close on 12 December.
Most of the inclusions were forecast but there is a lot of variance among the list of deletions… index committee knows best!
Fadu (440110 KS) was ignored for yet another rebalance, while Snh Inc (051980 KS) has also not been included in the index.

LG Chem’s Tax Alarm: Pillar Two Tax Could Soar Next Year + LGES Block Deal on the Horizon

By Sanghyun Park

The local market’s buzzing that LG Chem could face a 200-300 billion KRW tax hit from Pillar Two next year, with LGES ramping up U.S. production.
LG Chem may be reconsidering its plan to sell 2% of its LGES stake, dropping ownership below 80%, shifting the tax burden to LGES instead of itself.
Flagging this now—LG Chem’s tax burden looms. Consider shorting LGES or a long-short with LG Chem, plus prep for the 2T KRW block deal with the pre-disclosure process.

Rio Tinto/Arcadium: Trading Wide Ahead Of 23rd Dec Vote

By David Blennerhassett

Back on the 9th October, Rio Tinto Ltd (RIO AU) reached an agreement to buy Arcadium Lithium (LTM AU/ALTM US) for US$5.85/share (~A$8.70/share), a ~90% premium to undisturbed.
The proxy statement is now out, with a Scheme Meeting scheduled for 23 December. The transaction is expected to close in mid-2025. The long stop is the 9th October 2025.
Trading wide-ish at a gross spread of 11.9%, reflecting the timing to secure regulatory approvals – notably from China – as opposed the Offer Price being viewed as opportunistic.

Qualcomm’s $4 Billion PC Chip Bet: Can It Dominate Beyond Smartphones?

Qualcomm is aggressively pushing into the PC market, aiming to transform its identity from a mobile chip giant to a diversified computing powerhouse.
At its recent investor day, Qualcomm announced bold revenue projections of $4 billion from PC chips by 2029, alongside significant strides in automotive, industrial IoT, and XR markets.
This marks a pivotal moment as Qualcomm ventures beyond its traditional smartphone business, which currently accounts for 75% of its chip revenue.

Dividend Tax Cut Decision Scheduled for 25th, Next Monday: Watch Sammy Prefs

By Sanghyun Park

The opposition’s pushing a Commercial Act amendment, and to gain ruling party support, they might strategically ease up on the dividend tax issue—classic quid pro quo.
The Samsung family’s collateral risk eased with a 10 trillion won buyback, but local markets are still cautious. Local traders now eye another 10 trillion won shareholder return.
The timing of the special dividend and tax deadlines may cause mismatches, but we should watch for earlier price moves in Samsung Electronics preferred shares.

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Nov 23

Daily Brief Health Care: Edwards Lifesciences, Abbott Laboratories, Boston Scientific, Teladoc Health, Inc., Dentsply International, Bristol Myers Squibb Co, Merck & Co, Narayana Hrudayalaya Ltd, Abbvie Inc and more

By Smartkarma Daily Briefs | Daily Briefs, Healthcare

In today’s briefing:

Edwards Lifesciences Corporation: Will The Expansion and Growth of Transcatheter Aortic Valve Replacement (TAVR) Catalyze Its Revenue Growth? – Major Drivers
Abbott Laboratories: A Tale Of Pipeline Productivity and Innovation! – Major Drivers
Boston Scientific’s Game-Changing Farapulse Tech: How It’s Revolutionizing Atrial Fibrillation Treatment!: – Major Drivers
Teladoc Health Inc (TDOC) – Friday, Aug 23, 2024
Dentsply Sirona: SureSmile Realignment: The Bold Strategy to Conquer the Aligner Market! – Major Drivers
Bristol-Myers Squibb: Expansion into Alzheimer’s Disease Psychosis Treatment As A Key Growth Catalyst! – Major Drivers
Merck & Co. Inc.: Expanding Oncology Portfolio through KEYTRUDA Developments & Partnership Collaborations To Shape the Future! – Major Drivers
Narayana Hrudayalaya: Forensic Review
AbbVie Inc.: The SKYRIZI & RINVOQ Revolution: Capturing Market Share with Game-Changing Therapies! – Major Drivers

Edwards Lifesciences Corporation: Will The Expansion and Growth of Transcatheter Aortic Valve Replacement (TAVR) Catalyze Its Revenue Growth? – Major Drivers

Edwards Lifesciences reported third-quarter 2024 results, showcasing notable achievements with financial metrics and strategic advancements across various product lines.
The company, specialized in structural heart disease innovations, marked a revenue of $1.4 billion, a rise of 10% on a constant currency basis compared to the year prior, subtly surpassing expectations.
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.

Abbott Laboratories: A Tale Of Pipeline Productivity and Innovation! – Major Drivers

Abbott has demonstrated robust performance in its third quarter of 2024 with an organic sales growth of over 8%, excluding COVID testing sales, and adjusted earnings per share of $1.21.
These results underscore the company’s capacity to execute its multifaceted strategy effectively, despite varying performance across different sectors.
Notably, the U.S. Pediatric Nutrition segment showed remarkable growth, leading with a 12% increase due to gains in the infant formula business.

Boston Scientific’s Game-Changing Farapulse Tech: How It’s Revolutionizing Atrial Fibrillation Treatment!: – Major Drivers

Boston Scientific Corporation presented its third quarter of 2024 financial results, reflecting a strong performance that exceeded company forecasts and investor expectations.
The corporation reported a significant growth in operational sales by 19% and organic sales by 18%, surpassing the anticipated guidance range of 13% to 15%.
Adjusted earnings per share (EPS) grew by 27% to $0.63, also exceeding the projections of $0.57 to $0.59.

Teladoc Health Inc (TDOC) – Friday, Aug 23, 2024

By Value Investors Club

Teladoc is the largest telehealth provider in the US with over 92 million members in its B2B network and 400,000 paying users for BetterHelp
The company has experienced a decline in stock value due to expensive acquisitions, growth challenges, and leadership changes
Despite setbacks, Teladoc’s scale, profitability, and potential to offer comprehensive solutions may position it as a survivor in the competitive telehealth industry.

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.

Dentsply Sirona: SureSmile Realignment: The Bold Strategy to Conquer the Aligner Market! – Major Drivers

Dentsply Sirona’s third quarter 2024 results present a nuanced picture, with both challenges and advancements across its business segments.
The company reported $951 million in revenue, marking a modest increase of 0.5% on a reported basis and a 1.3% rise on an organic basis year-over-year.
This growth was primarily driven by timing impacts, as distributors made advance purchases in the Essential Dental Solutions (EDS) segment due to the upcoming U.S. ERP deployment.

Bristol-Myers Squibb: Expansion into Alzheimer’s Disease Psychosis Treatment As A Key Growth Catalyst! – Major Drivers

Bristol-Myers Squibb’s third quarter 2024 earnings highlight a period of robust growth and strategic advancements, albeit accompanied by challenges typical of large pharmaceutical companies.
On the positive side, the company reported a noteworthy 20% revenue increase in its growth portfolio at constant currency, which now contributes to approximately half of the total revenues.
This growth is supported by products with exclusivity extending into the next decade, underscoring the company’s successful pipeline development and launch of new therapies.

Merck & Co. Inc.: Expanding Oncology Portfolio through KEYTRUDA Developments & Partnership Collaborations To Shape the Future! – Major Drivers

Merck & Co. has demonstrated robust operational performance and strategic advances in its third quarter earnings, navigating through both burgeoning opportunities and prevailing challenges.
The company’s financials exhibited a 4% revenue growth, or 7% on a constant currency basis, driven by enhanced global uptake of KEYTRUDA in oncology, favorable launches of products like WINREVAIR and CAPVAXIVE, and a strong performance in the Animal Health sector.
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.

Narayana Hrudayalaya: Forensic Review

By Nitin Mangal

Narayana Hrudayalaya Ltd (NARH IN) is on an expansion spree and looks to add further 1500 beds in the next four years, to its 5683 operational beds as at FY24.
As far as forensics are concerned, the company has shown improvement in its capital allocation, shown ramp up/turnaround in some hospitals; also impairments are done with in the past.
However, few concerns loom over PPE disposals and non-reconciliation with cash flows, treatment of reversal of provisions and high growth rate assumed in goodwill CGU.

AbbVie Inc.: The SKYRIZI & RINVOQ Revolution: Capturing Market Share with Game-Changing Therapies! – Major Drivers

AbbVie has reported noteworthy third-quarter results for 2024, outperforming expectations with strong core growth driven largely by its ex-HUMIRA platform.
The company’s diversified portfolio highlighted significant achievements, with sales reaching $260 million above forecasts and demonstrating robust mid-single-digit operational sales growth.
The impressive performance of SKYRIZI and RINVOQ has been particularly pivotal, contributing to a projected combined sales of over $17 billion for the year, surpassing initial expectations by $1.3 billion.

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Nov 23

Daily Brief Utilities: Azure Power Global Ltd and more

By Smartkarma Daily Briefs | Daily Briefs, Utilities Sector

In today’s briefing:

Lucror Analytics – Morning Views Asia

Lucror Analytics – Morning Views Asia

By Tanvi Arora

In the US, existing home sales rose 3.4% m-o-m in October (2.9% e / -1.3% revised p) to an annualised 3.96 mn units.
That said, existing home sales grew at the slowest pace since late 2010, amid rising mortgage costs.
Separately, the Conference Board leading index fell 0.4% (-0.3% e / -0.3% revised p) to 99.5 in October 2024.

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Nov 23

Daily Brief Industrials: Adani Enterprises, SK Square , LG Corp, Exponent Inc, Old Dominion Freight Line, Dun & Bradstreet Holdings , Teledyne Technologies and more

By Smartkarma Daily Briefs | Daily Briefs, Industrials

In today’s briefing:

Adani Group’s Crucial Disclosure Lapses About Bribery & US Investigation
SK Square: A Solid Corporate Value Up Plan Likely to Lead to Continued Outperformance
LG Corp: Key Highlights from Its Corporate Value-Up Plan and Updated NAV Valuation
Exponent Inc’s New Game-Changing Strategies: Multidisciplinary Problem Solving at Its Best!
Old Dominion Freight Line: Dealing With Capacity Management Vulnerability & Other Challenges! – Major Drivers
DUN & BRADSTREET HOLDNGS INC (DNB) – Friday, Aug 23, 2024
Teledyne Technologies: Can They Capitalize On The Strengthening Defense & Energy Markets? – Major Drivers

Adani Group’s Crucial Disclosure Lapses About Bribery & US Investigation

By Nimish Maheshwari

Adani Group’s handling of U.S. FCPA investigation disclosures highlights significant lapses in transparency, including delayed and contradictory statements.
Inconsistent disclosures and wrong disclosure about US investigations raising red flags for regulatory compliance and governance.
Search warrants for Sagar Adani, Nephew of Gautam Adani issued in Mar-23, which is not disclosed in fundraising documents as well as Annual Report.

SK Square: A Solid Corporate Value Up Plan Likely to Lead to Continued Outperformance

SK Square (402340 KS) announced a solid corporate value up plan pushing up its share price by 8.8% to 87,500 won on 22 November.
Major highlights of the corporate value up plan included cancellation of 200 billion won of treasury shares, higher ROE target, and achieve 1x PBR ratio (nearly double the current ratio).
Our NAV analysis of SK Square suggests NAV of 15.2 trillion won or 112,822 won per share, representing 29% higher than current share price.

LG Corp: Key Highlights from Its Corporate Value-Up Plan and Updated NAV Valuation

In this insight, we provide the major highlights of the solid Corporate Value Up plan announced by LG Corp on 22 November.
The key highlights include about 500 billion won worth of share cancellation by 2026, improved dividend policy, and higher ROE target.
Our base case NAV valuation analysis of LG Corp suggests implied NAV of 16.1 trillion won or NAV per share of 102,426 won, which is 33.4% higher than current price.

Exponent Inc’s New Game-Changing Strategies: Multidisciplinary Problem Solving at Its Best!

Exponent Inc.’s third quarter 2024 financial results demonstrate both resilience and constraints in the context of evolving market dynamics.
The company reported a 6% growth in net income and an expansion in EBITDA margin, indicating effective cost management and resource utilization.
The overall revenue, however, remained flat compared to the previous year, reflecting a mixed performance across different sectors of operation.

Old Dominion Freight Line: Dealing With Capacity Management Vulnerability & Other Challenges! – Major Drivers

Old Dominion Freight Line’s recent third-quarter earnings call for 2024 revealed several key aspects of the company’s performance amidst a challenging economic environment.
The company reported a decrease in revenue, which totaled $1.47 billion, down 3.0% from the prior year.
The decline in LTL (less-than-truckload) tons per day, which fell by 4.8%, was slightly mitigated by a 1.5% increase in LTL revenue per hundredweight.

DUN & BRADSTREET HOLDNGS INC (DNB) – Friday, Aug 23, 2024

By Value Investors Club

DNB is a speculative merger arbitrage opportunity with limited downside risk and significant upside potential
Recent news of the company exploring options for a potential sale has increased investor interest
Strong business performance and the possibility of a bid at 12x EBITDA or higher make DNB a valuable acquisition target with attractive multiples and a solid floor

Teledyne Technologies: Can They Capitalize On The Strengthening Defense & Energy Markets? – Major Drivers

Teledyne Technologies Incorporated reported an impressive performance for the third quarter of 2024, achieving all-time record sales with growth in each business segment.
This growth was fueled by robust demand in their longer-cycle defense, space, and energy sectors, though sales in most short-cycle commercial businesses have either stabilized or begun to recover sequentially.
The company continued aggressive capital management strategies during the quarter, including repurchasing approximately $354 million of its stock, completing two acquisitions valued at $125 million, and repaying $450 million in gross debt.

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Nov 23

Daily Brief Energy/Materials: SGX Rubber Future TSR20, Crude Oil, Enterprise Products Partners, LANXESS AG, Sealed Air Corp, Valero Energy and more

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

In today’s briefing:

Malaysian NR Scene In Sept Nothing To Cheer About
[ETP 2024/47] WTI Rises on Ukraine-Russia Tensions; Henry Hub Jumps on Cold Weather Forecasts
Enterprise Products Partners L.P.: Can Its Strategic Acquisitions & Integration Up Their Game? – Major Drivers
Lanxess Ag (LNXSY) – Friday, Aug 23, 2024
Sealed Air Corporation: An Analysis Of Verticalization & Operational Focus & Other Major Drivers
Valero Energy Corporation: An Insight Into The Impact of International Trade and Market Dynamics! – Major Drivers

Malaysian NR Scene In Sept Nothing To Cheer About

By Vinod Nedumudy

Steep dip of 30.6% in NR exports month-on-month in Sept
Ivory Coast’s infusion touches an abysmal share of 14.9%
Rubber glove exports to be worth a record RM13.7 billion in 2024

[ETP 2024/47] WTI Rises on Ukraine-Russia Tensions; Henry Hub Jumps on Cold Weather Forecasts

By Suhas Reddy

For the week ending 15/Nov, US crude inventories rose by 0.5m barrels, exceeding expectations of a 0.4m barrel increase. Gasoline stocks exceeded estimates, while distillates declined less than expected.
US natural gas inventories fell by 3 Bcf for the week ending 15/Nov, contrasting analyst expectations of a 2 Bcf buildup. Inventories are 6.4% above the 5-year seasonal average.
TD Cowen raised its PT on Exxon, while Morgan Stanely lowered its PT on Halliburton. Aramco and Sinopec began the construction of a refining and petrochemical complex in China.

Enterprise Products Partners L.P.: Can Its Strategic Acquisitions & Integration Up Their Game? – Major Drivers

Enterprise Products Partners L.P. recently reported its financial results for the third quarter of 2024, presenting a mixed bag of operational achievements and persisting challenges that are crucial for investors considering the company’s prospects.
In the financial spectrum, the company experienced a growth in adjusted EBITDA, marking a rise from $2.3 billion in the previous year’s third quarter to $2.4 billion.
This increment underscores the company’s capability to generate earnings despite fluctuations in market conditions.

Lanxess Ag (LNXSY) – Friday, Aug 23, 2024

By Value Investors Club

Lanxess has seen a decline in share price due to various factors, but recent developments indicate a potential return on investment of over 30% in the next 3 years
CEO Matthias Zachert has focused on selling off cyclical and competitively disadvantaged businesses to focus on higher value-added products, strengthening the company’s position
Lanxess received a significant cash inflow from the sale of Currenta and Warren Buffet’s 3% stake in the company shows confidence in its transformation and future potential

Sealed Air Corporation: An Analysis Of Verticalization & Operational Focus & Other Major Drivers

Sealed Air Company recently held its third quarter earnings call for 2024, highlighting several strategic changes and the financial outlook for the firm.
The company is advancing its restructuring efforts by reorganizing into two distinct verticals: Food and Protective.
This reorganization is intended to better align the company’s operations with market demands and customer needs, as well as to enhance shareholder value.

Valero Energy Corporation: An Insight Into The Impact of International Trade and Market Dynamics! – Major Drivers