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Smartkarma Daily Briefs

Mar 06
0

Daily Brief Industrials: Tuhu Car , Gold and more

By | Daily Briefs, Industrials

In today’s briefing:

  • Tuhu Car Lock-Up Expiry – Would Need Some Selling to Improve Liquidity when US$1.5bn Comes Unlocked
  • Gold Breaking Out Above 3.5-Year Resistance as the U.S. Dollar (DXY) And Treasury Yields Roll Over

Tuhu Car Lock-Up Expiry – Would Need Some Selling to Improve Liquidity when US$1.5bn Comes Unlocked

By Clarence Chu

  • Tuhu Car (9690 HK) was listed in Hong Kong on 26th Sept 2023 after raising US$151m. The IPO had been a 100% primary offering.
  • Tuhu is an integrated online and offline platform for automotive services in China.
  • Trading with a very small float of 1.8%, in its upcoming six-month lockup expiry, >90% of Tuhu’s pre-IPO investors, cornerstones and management combined stakes will come off six-month lockup expiry.

Gold Breaking Out Above 3.5-Year Resistance as the U.S. Dollar (DXY) And Treasury Yields Roll Over

By Joe Jasper

  • The number of risk-on signals continues to grow, while risk-off signals remain virtually non-existent. We will be sure to point it out when this dynamic starts to change
  • In the meantime, we want to continue riding this bull market higher, and our bullish outlook on the S&P 500, Russell 2000, and Nasdaq 100 (since early-November 2023) remains intact.
  • Gold is breaking out of a 3.5-year base to all-time closing highs — buy. Silver is breaking out above a 3-month base at $23.50. Fueled by toppy DXY and rates

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Mar 06
0

Daily Brief Utilities: Talen Energy and more

By | Daily Briefs, Utilities Sector

In today’s briefing:

  • TLNE: Nuclear Shareholder Value

TLNE: Nuclear Shareholder Value

By Hamed Khorsand

  • TLNE announced the sale of Cumulus Data for a valuation higher than we were expecting and includes a long-term power purchasing agreement
  • TLNE’s management has also mentioned an ongoing sales process for TLNE’s assets in Texas, which could generate additional value.
  • TLNE sold Cumulus Data for $650 million to Amazon Web Services (“AWS”). TLNE sold the assets the Company had situated adjacent to Susquehanna nuclear power plant

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Mar 06
0

Daily Brief Energy/Materials: Alumina Ltd, Ercros , Gold Fields Ltd, Hellenic Petroleum Sa and more

By | Daily Briefs, Energy & Materials Sector

In today’s briefing:

  • Alumina (AWC AU): Further Thoughts on Alcoa’s Proposal
  • Bondalti/Ercros: Fair Offer
  • Feb Rebalance – JSE Auction Analytics (SA Upweighted in ACWI and EM)
  • HELLENiQ ENERGY – Dividend shows confidence in future

Alumina (AWC AU): Further Thoughts on Alcoa’s Proposal

By Arun George

  • I have received several questions from readers on Alcoa (AA US)’s non-binding proposal for Alumina Ltd (AWC AU) in the context of the current gross spread of 9.2%. 
  • The questions primarily concerned Citic Resources Holdings (1205 HK) voting intentions, the probability of a bump and the likelihood of Aloca shareholders supporting the transaction. 
  • CITIC Resources’ lack of public endorsement of the transaction is due to HKEx listing requirements and not an indication of a NO vote risk.  

Bondalti/Ercros: Fair Offer

By Jesus Rodriguez Aguilar

  • Ercros (ECR SM), a venerable Spanish chemical company has received a €3.6/share, cum dividend, offer from Bondalti. The premium is 40.6%, implied equity €329.17 million and implied EV €421 million.
  • The offer represents 6x EV/Fwd NTM EBITDA, typical mid-cycle multiple for commodity chemicals, 12.9x Fwd P/E. The offer price accounts for an improving H2. The shares suffer from low liquidity.
  • Therefore the top shareholders will be glad to cash in. How long does the Spanish government take to authorise FDI will be the primary concern. Gross spread is 4.7%. Long.

Feb Rebalance – JSE Auction Analytics (SA Upweighted in ACWI and EM)

By Charlotte van Tiddens, CFA

  • Indices were rebalanced in the closing auction last week Thursday.

  • Turnover on the JSE for the day was R25.6bn, R12.9bn traded in the closing auction (50%).

  • Turnover at the November rebalance was R40.6bn. 

HELLENiQ ENERGY – Dividend shows confidence in future

By Edison Investment Research

ELPE reported its final results on 29 February. Adjusted net income of €0.6bn was lower than our forecast of €0.64bn. A positive surprise was that the board is recommending a final dividend of €0.60 per share, which was above our expectation of €0.30 per share. We believe this reflects management’s confidence in the current shape of the business. The balance sheet has been strengthened year-on-year, with net debt reduced from €1.94bn (at end-FY22) to €1.63bn. Our forecasts are under review.

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Mar 06
0

Daily Brief TMT/Internet: CELSYS, Sea , ARM Holdings, WRKR, Keywords Studios, Shenandoah Telecommunications Company and more

By | Daily Briefs, TMT/Internet

In today’s briefing:

  • TOPIX Inclusions: Who Is Ready (Mar 2024)
  • Sea Ltd: No Nearer to Stable Profitability Than Before
  • Sea Ltd (SE US) – Scalability Winning Battles
  • ARM Holdings IPO Lock-Up Expiry – A US$127bn Lockup Release Might Be Too Tempting to Pass On
  • H1 EBITDA loss halves, +ive EBITDA forecast for 2H
  • Keyword Studios (KWS ) – Tuesday, Dec 5, 2023
  • SHEN: Winning Trade, Upgrade to Buy
  • Wrkr Limited – H1 EBITDA Loss Halves, +ive EBITDA Forecast for 2H

TOPIX Inclusions: Who Is Ready (Mar 2024)

By Janaghan Jeyakumar, CFA

  • Quiddity’s “Who is Ready” series of insights aims to objectively identify names listed on the Tokyo Stock Exchange that are potential additions to the TOPIX Index in future.
  • There were no Section Transfers announced in January or February so currently there are no live TOPIX Inclusion events but there are some pre-event names to be monitored closely.
  • The upcoming TOPIX flows in end-April 2024 will be more complicated than the other quarterly rebalances as there will be more flows due to the annual liquidity factor review.

Sea Ltd: No Nearer to Stable Profitability Than Before

By Oshadhi Kumarasiri

  • Sea (SE US) has completed a full cycle of growth followed by a phase of profitability improvements/cost-cutting.
  • Although substantial cost reductions have been implemented, these efforts have mainly focused on fixed costs.
  • With marketing efficiency unchanged and significant improvements in gross margin difficult, the company appears no closer to achieving stable profitability than it initially was.

Sea Ltd (SE US) – Scalability Winning Battles

By Angus Mackintosh

  • Sea Ltd (SE US) released 4Q2023 and FY2023 results with a full-year net profit but another loss in 4Q but QoQ improvements for e-commerce and digital financial services. 
  • E-Commerce core market growth rates where impressive, with strong growth momentum with Brazil seeing large profitability gains, whilst overall Shopee is gaining share with the additional benefits from greater scale.  
  • Digital Financial Services saw a significant uptick in its loan book and profitability, whilst management pointed toward 2H2024 profitability for Shopee. Management is pointing towards 2024 being another profitable year. 

ARM Holdings IPO Lock-Up Expiry – A US$127bn Lockup Release Might Be Too Tempting to Pass On

By Sumeet Singh

  • Softbank raised around US$4.9bn via selling some of its stake in ARM Holdings (ARM US)’ US IPO. Its remaining 90% stake will be released from its IPO linked lockup soon.
  • ARM develops and licenses high-performance, low-cost, and energy-efficient CPU products and related technology, which is used by semiconductor companies and OEMs to develop their own products.
  • In this note, we talk about the upcoming lock-up expiry and possible deal dynamics.

H1 EBITDA loss halves, +ive EBITDA forecast for 2H

By Research as a Service (RaaS)

  • Wrkr Ltd (ASX:WRK) offers compliance solutions for Australian superannuation contributions and payroll including member onboarding, super payments, messaging and employee validation.
  • WRK has reported a H1 FY24 adjusted EBITDA loss of $0.53m, half that of H1 FY23 and in line with RaaS estimates.
  • The result benefitted from both operating leverage (43% revenue growth against a 6% increase in operating costs) and some reallocation of employee costs to capitalised product development.

Keyword Studios (KWS ) – Tuesday, Dec 5, 2023

By Value Investors Club

Key points

  • Keyword Studios is the largest videogame outsourcing company globally with a strong track record of organic growth and strategic acquisitions
  • Despite concerns about AI and market slowdown, the company remains well-positioned for long-term success
  • Expected to continue delivering high single-digit to low double-digit organic growth and potential for compound annual growth rate of 15% over the next five years, making it an attractive investment opportunity

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.

SHEN: Winning Trade, Upgrade to Buy

By Hamed Khorsand

  • SHEN announced the sale of its tower assets for a price that would equivalently pay for the purchase of Horizon Telecom, effectively creating an asset trade that creates considerably value.
  • SHEN has unlocked value by selling assets that are expected to experience a decline in revenue after this year for assets that should realize revenue and adjusted EBITDA growth
  • The growth SHEN is purchasing without the need of cash financing should have a positive impact on SHEN’s valuation.

Wrkr Limited – H1 EBITDA Loss Halves, +ive EBITDA Forecast for 2H

By Research as a Service (RaaS)

  • Wrkr Ltd (ASX:WRK) offers compliance solutions for Australian superannuation contributions and payroll including member onboarding, super payments, messaging and employee validation.
  • WRK has reported a H1 FY24 adjusted EBITDA loss of $0.53m, half that of H1 FY23 and in line with RaaS estimates. The result benefitted from both operating leverage (43% revenue growth against a 6% increase in operating costs) and some reallocation of employee costs to capitalised product development.
  • We forecast positive H2 FY24 EBITDA on the back of continued operating leverage, and in particular significant Hong Kong implementation fees (estimated at $1.4m), higher float interest and continued cost control.

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Mar 06
0

Daily Brief Industrials: Tuhu Car , Gold and more

By | Daily Briefs, Industrials

In today’s briefing:

  • Tuhu Car Lock-Up Expiry – Would Need Some Selling to Improve Liquidity when US$1.5bn Comes Unlocked
  • Gold Breaking Out Above 3.5-Year Resistance as the U.S. Dollar (DXY) And Treasury Yields Roll Over

Tuhu Car Lock-Up Expiry – Would Need Some Selling to Improve Liquidity when US$1.5bn Comes Unlocked

By Clarence Chu

  • Tuhu Car (9690 HK) was listed in Hong Kong on 26th Sept 2023 after raising US$151m. The IPO had been a 100% primary offering.
  • Tuhu is an integrated online and offline platform for automotive services in China.
  • Trading with a very small float of 1.8%, in its upcoming six-month lockup expiry, >90% of Tuhu’s pre-IPO investors, cornerstones and management combined stakes will come off six-month lockup expiry.

Gold Breaking Out Above 3.5-Year Resistance as the U.S. Dollar (DXY) And Treasury Yields Roll Over

By Joe Jasper

  • The number of risk-on signals continues to grow, while risk-off signals remain virtually non-existent. We will be sure to point it out when this dynamic starts to change
  • In the meantime, we want to continue riding this bull market higher, and our bullish outlook on the S&P 500, Russell 2000, and Nasdaq 100 (since early-November 2023) remains intact.
  • Gold is breaking out of a 3.5-year base to all-time closing highs — buy. Silver is breaking out above a 3-month base at $23.50. Fueled by toppy DXY and rates

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Mar 06
0

Daily Brief Consumer: Tata Motors Ltd, Ola Electric, IDP Education, Zomato, Yihai Int’L Holding, Sheng Siong, TSE Tokyo Price Index TOPIX, Vinfast, Borussia Dortmund GmbH & Co KG, Culp Inc and more

By | Consumer, Daily Briefs

In today’s briefing:

  • Decoding Tata Motors Demerger: The Way Ahead
  • Ola Electric Pre-IPO Peer Comparison – Increasing Competition, but It’s Still the Leader
  • MVIS Australia Equal Weight Index Rebalance Preview: Three Close Deletions
  • Zomato Placement – Momentum Is Very Strong, Somewhat Well Flagged
  • Yihai International (1579 HK):  Beneficiary Of Haidilao’s Adoption Of Franchising Model
  • Sheng Siong (SSG SP) FY23: Resilient Earnings Despite Margin Pressure, FY24 Flattish
  • The Standard that All 1,600 Prime Market Companies Could Do Would Be Loose
  • Vinfast Auto Ltd (VFS) – Tuesday, Dec 5, 2023
  • Borussia Dortmund – A more normal schedule
  • Culp, Inc. – 3Q Results: Update on Culp Progress Out Wednesday After Close

Decoding Tata Motors Demerger: The Way Ahead

By Nimish Maheshwari

  • Tata Motors restructures, separating passenger and commercial vehicle businesses into distinct entities to unlock value in electric vehicles and Jaguar Land Rover unit.
  • Streamlines operations, enhances shareholder value, and capitalizes on growth opportunities in passenger and commercial vehicle sectors.
  • Offers investors specialized entities, unlocking hidden value, showcasing proactive adaptation to market changes, and positioning for sustainable growth in the automotive industry.

Ola Electric Pre-IPO Peer Comparison – Increasing Competition, but It’s Still the Leader

By Sumeet Singh

  • Ola Electric is looking to raise about US$1bn in its upcoming India IPO.
  • Ola Electric Mobility is a vertically integrated pure EV player in India with manufacturing capabilities for EVs and EV components, including cells.
  • In our previous note we have looked at the company’s past performance. In this note, we will undertake a peer comparison.

MVIS Australia Equal Weight Index Rebalance Preview: Three Close Deletions

By Brian Freitas

  • With the review period complete, there are 3 stocks that are close to the deletion zone and could be removed from the index at the March rebalance.
  • Even if there are no constituent changes, capping changes will lead to one-way turnover of 4.4% and a one-way trade of A$97m.
  • There are 9 stocks with over A$5m to trade from passive trackers but the impact on the stocks is not very high.

Zomato Placement – Momentum Is Very Strong, Somewhat Well Flagged

By Sumeet Singh

  • AntFin is looking to raise around US$350m by selling around 2% of Zomato (ZOMATO IN).
  • Ant Group had earlier sold some of its stake in Nov 2023 and Ant just came out of lockup from the previous selldown a few days ago.
  • In this note, we talk about the deal dynamics and run the deal through our ECM framework.

Yihai International (1579 HK):  Beneficiary Of Haidilao’s Adoption Of Franchising Model

By Steve Zhou, CFA

  • Yesterday, Haidilao International Holding (6862 HK), the largest hotpot chain in China, announced that the company will introduce franchise model as a new way to support growth. 
  • Haidilao’s move into franchising should directly benefit Yihai Int’L Holding (1579 HK), the affiliate company that supplies hotpot condiments to Haidilao. 
  • Yihai is trading at an inexpensive 12x 2024 PE compared to a historical average of 32x since listing.

Sheng Siong (SSG SP) FY23: Resilient Earnings Despite Margin Pressure, FY24 Flattish

By Sameer Taneja

  • Despite margin pressure, Sheng Siong (SSG SP) delivered resilient earnings for FY23. Revenue was up 2.3% YoY, and profits were up 0.3% YoY. 
  • The company guided it had opened two additional stores at the start of 2024 (2023 end: 69), and six more locations were up for tender in 2024. 
  • The stock trades at 17x FY23, with a 4% dividend yield and 15% of the market cap in cash. Margin pressure due to inflation will be a headwind in FY24. 

The Standard that All 1,600 Prime Market Companies Could Do Would Be Loose

By Aki Matsumoto

  • TSE wants to make disclosure of financial statements in English mandatory, which many prime market companies do, and to require disclosure in both Japanese and English on the same day.
  • The focus will be on expanding to English-language disclosure of documents such as annual securities reports and corporate governance reports, which are in high demand by overseas investors.
  • Inadequate English-language disclosure has directly affected listed companies by preventing IR meetings from deepening dialogue and negatively impacting investment decisions.

Vinfast Auto Ltd (VFS) – Tuesday, Dec 5, 2023

By Value Investors Club

  • VinFast is a fast-growing electric vehicle manufacturer based in Vietnam, founded in 2017 by Vingroup and billionaire Pham Nhat Vuong
  • The company has plans for global expansion and aims to have vehicles in 50 markets by the end of 2024
  • VinFast has a $16 billion market cap and recently completed a SPAC merger that raised $239 million, but its financial ties to Vingroup raise concerns about its independence

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.

Borussia Dortmund – A more normal schedule

By Edison Investment Research

Borussia Dortmund’s Q224 results reflect the positive effects of a more normal football season versus the disruption from the FIFA World Cup in the comparative Q223 period. The reiterated financial guidance for FY24 looks well underpinned given the phasing of games and with the excitement of the final stages of the Champions League to come. The share price continues to look very attractive versus our slightly adjusted sum-of-the-parts valuation of €10.40/share and its own historical multiples.

Culp, Inc. – 3Q Results: Update on Culp Progress Out Wednesday After Close

By Water Tower Research

  • Culp reports 3QFY24 results after the close on Wednesday, March 6. An investor conference call is scheduled for 11:00 am ET on Thursday, March 7.
  • Culp revised its guidance for the second half of 2023 in January in conjunction with the WTR Furniture/Furnishings Virtual Conference.
  • Recovery in the mattress segment had been slower than previously expected.

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Mar 06
0

Daily Brief Health Care: Celltrion Inc, Xunfei Healthcare Technology, Innovent Biologics Inc, AFT Pharmaceuticals, Oryzon Genomics and more

By | Daily Briefs, Healthcare

In today’s briefing:

  • Locals Driving Corporate Reforms and 10 Korean Companies Recently Announcing Share Cancellations
  • Xunfei Healthcare Technology Pre-IPO Tearsheet
  • 2024 High Conviction Update: Innovent (1801.HK) – Recent Promising Business Updates and 2024 Outlook
  • AFT Pharmaceuticals – Poised for international market expansion
  • Oryzon Genomics – Approaching a period of inflection

Locals Driving Corporate Reforms and 10 Korean Companies Recently Announcing Share Cancellations

By Douglas Kim

  • In a recent discussion with a client, one of the questions that was raised was regarding the impact the local investors are having on the corporate governance reforms in Korea.
  • The number of local investors in the Korean stock market has jumped in the past few years from 5.3 million in 2017 to 14.4 million in 2022.
  • All in all, I think Korea is about 3-5 years behind Japan in various corporate governance reforms. So it has a lot of catching up to do.

Xunfei Healthcare Technology Pre-IPO Tearsheet

By Clarence Chu

  • Xunfei Healthcare Technology (XHT HK) is looking to raise around US$200m in its upcoming Hong Kong IPO. The bookrunners on the deal are Huatai International, GF Capital, and CCB International.
  • Xunfei Healthcare Technology (Xunfei), a iFlytek (Shenzhen-listed) spin-off, primarily provides solutions covering the full healthcare service cycle, with products and services mainly catered towards major stakeholders in the healthcare industry.
  • Backed by its healthcare AI solutions matrix, the firm ranked first in the healthcare AI industry in terms of revenue in China in 2022, according to Frost & Sullivan (F&S).

2024 High Conviction Update: Innovent (1801.HK) – Recent Promising Business Updates and 2024 Outlook

By Xinyao (Criss) Wang

  • Innovent’s 2023 product revenue was RMB5.7 billion. In 2024, product revenue growth would remain strong (e.g. 35% YoY).The main flashpoint for performance is after the approval of mazdutide in 2025.
  • Innovent has started paving the way for mazdutide more than a year in advance and building various channels.Normally speaking, mazdutide could get the approval in 25Q2. Its CDMO is Asymchem
  • Share price of Innovent was once dragged down by the CXO plunge due to the US Draft Bill, but unlike CXOs, innovative drugs do not involve supply chain security issues.

AFT Pharmaceuticals – Poised for international market expansion

By Edison Investment Research

AFT continues to focus on expanding its product portfolio and broadening its geographical footprint (including increased investments in its affiliates), which we expect to translate into stronger market traction and an increased top-line for AFT over the medium term. The company has updated the market on its international growth efforts, announcing new manufacturing agreements for Maxigesic Rapid and Crystaderm (ahead of their expected launches in the US and Chinese markets, respectively) and partnership expansion with Hikma (its US licensee of Maxigesic IV) to commercialise Combogesic IV in Saudi Arabia, Iraq and Jordan. Concurrently, AFT has made inroads into the UK market through the recent launch of Combogesic tablets and IV.

Oryzon Genomics – Approaching a period of inflection

By Edison Investment Research

ORY FY23 results announcement covered an eventful period for the company’s pipeline, capped by the release of top-line data from the Phase IIb PORTICO trial for lead CNS asset vafidemstat. With the focus squarely on the planned end of Phase II (EoP2) meeting with the FDA and anticipated clinical updates on the remaining programmes, we see FY24 as a crucial period for the company, with multiple inflection points. Other key upcoming milestones include results from the FRIDA trial (iadademstat in FLT3+ r/r acute myeloid leukaemia; expected in Q224) and a clinical timeline update from the EVOLUTION trial (vafidemstat in schizophrenia; expected in 2024). Based on the current status of the company’s programmes and improved visibility, we have adjusted our market strategy, launch timelines and valuation across the company’s pipeline, leading to a valuation reset to €11.8/share (€15.1/share previously).

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Mar 06
0

Daily Brief Financials: Kakaopay , Abacus Storage King, AMMB Holdings, Resona Holdings, Primary Health Properties, NatWest Group , Coinshares International, EML Payments Limited and more

By | Daily Briefs, Financials

In today’s briefing:

  • Block Deal Sale of 2.2% of Kakao Pay by Alipay
  • MVIS Australia A-REITs Index Rebalance Preview: One Deletion & Capping Changes
  • AAMB Holdings Placement – Despite the Overhang, Momentum Has Been Decent
  • Japanese Bigger Cap Banks – Exit from BoJ’s Negative Interest Rate Policy Gathers Steam
  • Primary Health Properties – Stability with income growth
  • NatWest Group – Time for a re-rating?
  • CoinShares International – Becoming a dividend payer
  • EML Payments – Looking to a brighter future

Block Deal Sale of 2.2% of Kakao Pay by Alipay

By Douglas Kim

  • After the market close on 5 March, it was reported that Alipay will sell a 2.2% stake (2.95 million shares) in Kakaopay (377300 KS) in a block deal sale.
  • A key component of this block deal sale is that there will be a lock up period of 90 days post the sale date.
  • We would avoid this block deal sale. There is a high probability of Kakao Pay’s share price falling below the block deal price of 38,380 won after 90 days. 

MVIS Australia A-REITs Index Rebalance Preview: One Deletion & Capping Changes

By Brian Freitas

AAMB Holdings Placement – Despite the Overhang, Momentum Has Been Decent

By Clarence Chu

  • ANZ Funds is looking to raise around US$242m from selling a portion of its stake in AMMB Holdings (AMM MK).
  • Having written down its carrying value earlier, we would argue that the deal now is somewhat well flagged, with ANZ attempting to record some gains on investment.
  • That being said, there is an overhang and the deal would be a large one to digest at 111 days of AMBank’s three month ADV.

Japanese Bigger Cap Banks – Exit from BoJ’s Negative Interest Rate Policy Gathers Steam

By Victor Galliano

  • The current “higher for longer” interest rates in the US and other developed markets adds to the Bank of Japan potentially ending its negative interest rate policy
  • Domestically, news reports suggest that the BoJ’s 2% inflation target is increasingly likely to be met in the short term, which further drives the potential normalization of interest rate policy
  • Growing expectation of the BoJ’s negative interest rate policy exit adds upside to Japanese bank shares, especially those geared into higher domestic interest rates; we like Resona, Mizuho and Concordia

Primary Health Properties – Stability with income growth

By Edison Investment Research

The key feature of Primary Health Properties’ (PHP’s) 2023 results was the further acceleration in rental uplifts, rising at the fastest pace for 15 years. This is driving organic earnings growth to fully cover progressive dividends, which are now in the 28th year of unbroken increase.

NatWest Group – Time for a re-rating?

By Edison Investment Research

Q423 earnings demonstrated the inherent profitability and resilience of returns at NatWest Group (NWG). PBT came in 25% ahead of consensus, with beats on both revenues and impairments along with good cost control. Despite continuing normalisation of credit and assuming around two more base rate cuts in 2024 than are currently priced into the bond market, management expects to deliver a return on tangible equity (RoTE) of c 12%. On consensus estimates, the shares trade at 0.8x tangible net asset value (TNAV) and P/E of 6.4x in 2024e. Without a re-rating, the consensus 10% TNAV growth and 6.4% yield imply a 16.4% 12-month total return.

CoinShares International – Becoming a dividend payer

By Edison Investment Research

CoinShares International (CS) concluded its latest financial year with Q423 adjusted EBITDA of £25.7m, which brought its FY23 earnings to £56.9m (the second-best result in its history). The company is now introducing a dividend policy, aiming to pay out 20–40% of its total comprehensive income adjusted for currency translation differences. We calculate that, based on the FY23 results and current share price, this implies a healthy dividend yield of c 3.4–6.8%. CS is looking to expand into the US by exercising its option to acquire Valkyrie Funds (which has a US spot bitcoin ETF in its offering) and through its newly launched Hedge Fund Solutions business.

EML Payments – Looking to a brighter future

By Edison Investment Research

EML Payments reported good growth in revenue and underlying EBITDA in H124, mainly due to the benefit of higher interest income. Management’s focus has been on the underperforming PCSIL General Purpose Reloadable (GPR) business, now in liquidation, resulting in the cost cutting programme shifting to H224. With that obstacle removed, management can now shift its sights to growing the remaining Gifting and GPR businesses and rightsizing the cost base.

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Mar 06
0

Daily Brief Quantitative Analysis: Hong Kong Connect Flows (February): CNOOC and more

By | Daily Briefs, Quantitative Analysis

In today’s briefing:

  • Hong Kong Connect Flows (February): CNOOC, China Telecom, China Mobile, Li Auto, Meituan
  • Northbound Flows (Feb): $9.3bn Inflows in Feb

Hong Kong Connect Flows (February): CNOOC, China Telecom, China Mobile, Li Auto, Meituan

By Ke Yan, CFA, FRM

  • We analyze the monthly Hong Kong Connect flows with our data engine.
  • We tabulate the top stocks by inflows, outflows, and holding by mainland investors.
  • We highlight inflows into CNOOC, China Telecom, China Mobile, Li Auto, Meituan. 

Northbound Flows (Feb): $9.3bn Inflows in Feb

By Ke Yan, CFA, FRM

  • We analyze the monthly Shanghai/Shenzhen northbound Connect flows with our data engine.
  • The monthly inflows of US$9.3bn tops the monthly inflows in the past 12 months. The inflows were led by the financials, consumer staples, and industrial sectors.
  • We highlight inflows into Moutai, Ping An, CMB, ICBC, Wuliangye.

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Mar 06
0

Daily Brief ESG: The Standard that All 1 and more

By | Daily Briefs, ESG

In today’s briefing:

  • The Standard that All 1,600 Prime Market Companies Could Do Would Be Loose

The Standard that All 1,600 Prime Market Companies Could Do Would Be Loose

By Aki Matsumoto

  • TSE wants to make disclosure of financial statements in English mandatory, which many prime market companies do, and to require disclosure in both Japanese and English on the same day.
  • The focus will be on expanding to English-language disclosure of documents such as annual securities reports and corporate governance reports, which are in high demand by overseas investors.
  • Inadequate English-language disclosure has directly affected listed companies by preventing IR meetings from deepening dialogue and negatively impacting investment decisions.

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