All Posts By

Smartkarma Daily Briefs

Feb 23
0

Daily Brief Singapore: Sea and more

By | Daily Briefs, Singapore

In today’s briefing:

  • Sea Will Release Its Q4 2023 Earnings Report Soon

Sea Will Release Its Q4 2023 Earnings Report Soon

By Simon Torring

  • Shopee – Sea’s largest business unit and Southeast Asia’s largest e-commerce platform – has reported negative EBITDA for most of the 8 or so years since its launch. 

  • Investors now however appear to be looking for earnings growth. In 7 of the last 9 quarterly earnings reports, investors have rewarded the company every time it has reported earnings growth (its share price has gone up in the day after the release), and penalized when it has not.

  • Based on our analysis (and subject to the disclaimer included below), we expect Shopee’s GMV and Revenue to improve in Q4 2023 (as compared to the previous quarter) along with its EBITDA, although earnings will likely remain in negative territory.

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

Sign Up for Free

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
Sign Up for Free


Feb 23
0

Daily Brief China: Trip.com, NetEase Inc, Trip.com Group , Standard Chartered, Miniso, Xiaocaiyuan International Holding and more

By | China, Daily Briefs

In today’s briefing:

  • Trip.com (9961 HK, TCOM US): 4Q23, Revenue Up by 105%, But Reached Our Last Price Target
  • [NetEase, Inc. (NTES US, BUY, TP US$118) TP Change]: Strong In-House Game Performance Drives Margins
  • Trip.com (9961 HK): Looks to Reap More Recovery Benefits
  • StandChart Is Likely to Have More China Bohai Impairment
  • [Miniso Group (MNSO US, BUY, TP US$33) Company Update]: CNY Foot Traffic Growth Support Decent C1Q24
  • Xiaocaiyuan International Holding Pre-IPO – Strong Network Expansion and Same Store Sales Growth

Trip.com (9961 HK, TCOM US): 4Q23, Revenue Up by 105%, But Reached Our Last Price Target

By Ming Lu

  • The main businesses, hotel and air ticket bookings increased by 131% YoY and 86% YoY in 4Q23.
  • The Chinese traveling market continued its recovery after the lift of the lockdown at the end of 2022.
  • The stock price is close to our last price target – Downgrade to Hold.

[NetEase, Inc. (NTES US, BUY, TP US$118) TP Change]: Strong In-House Game Performance Drives Margins

By Ying Pan

  • We expect NetEase to report C4Q23 revenue, GAAP op. profit and GAAP net income 4.9%, 5.7% and 8.5% vs. consensus.
  • The robust topline growth was mainly contributed by revenue recognition of <Justice Mobile> in the peak summer season.
  • The grossing of legacy titles like <FWWJ> is also growing steadily due to the low-price strategy. We raise our TP to US$118 to reflect the rich and diversified pipeline…

Trip.com (9961 HK): Looks to Reap More Recovery Benefits

By Osbert Tang, CFA

  • Trip.com Group (9961 HK) has a remarkable 4Q23 with adjusted net profit surged 437.1% YoY. Higher volume and better market efficiency have resulted in massive margin expansion.
  • Net cash has ballooned to about 15% of its share price, and this has allowed it to carry out a massive US$300m Capital Return Program in 2024.
  • Business has outperformed the industry in CNY, with domestic hotel and air business volume increased by 60% and 50% YoY. Its overseas platform also saw double-digit growth.

StandChart Is Likely to Have More China Bohai Impairment

By Fern Wang

  • StandChart may need to take further impairment hit on China Bohai Bank
  • VIU model is used to justify the higher carrying value compared to fair value of the holdings.  There is zero headroom between the VIU model and the carrying amount.
  • We looked at VIU model assumptions for HSBC and StandChart. A declining NIM is likely put further pressure on the VIU model output for StandChart.  

[Miniso Group (MNSO US, BUY, TP US$33) Company Update]: CNY Foot Traffic Growth Support Decent C1Q24

By Eric Wen

  • Intra-Urban mobility in major cities and foot traffic in leading shopping malls in China have demonstrated decent growth during 2024 CNY holiday period.
  • We estimate Miniso domestic store sales increased 35% yoy during CNY-holiday and 11% yoy during Jan to mid-Feb 2024. We expect Miniso total revenue to increase 26% yoy in 1Q24.
  • We maintain the stock as BUY and maintain TP at US$33/ADS.

Xiaocaiyuan International Holding Pre-IPO – Strong Network Expansion and Same Store Sales Growth

By Ethan Aw

  • Xiaocaiyuan International Holding (XCY HK) is looking to raise up to US$200m in its upcoming HK IPO.
  • Xiaocaiyuan is a Chinese home-style cuisine restaurant operator. It prices its menus’ items to achieve average spending per consumer between RMB50 and RMB70 for its dine-in customers at its restaurants. 
  • In this note, we talk about the company’s historical performance.

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

Sign Up for Free

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
Sign Up for Free


Feb 23
0

Daily Brief Japan: SUMCO Corp, Fast Retailing, Trial Holdings, Geniee Inc, TSE Tokyo Price Index TOPIX, LaKeel and more

By | Daily Briefs, Japan

In today’s briefing:

  • SUMCO’s Sobering Outlook For Silicon Wafers
  • HK CEO & Director Dealings (23 Feb 2024): Fast Retailing, Far East Consortium, Pharmaron Beijing
  • Trial Holdings IPO: The Investment Case
  • Geniee (6562) – Record-High Gross Profits and Recognizing Challenges
  • Whatever the Proxy Voting Advisor’s Criteria, It Is How Investors Actually Conduct Themselves
  • LaKeel (4074) – Ready for the Next Growth Phase

SUMCO’s Sobering Outlook For Silicon Wafers

By William Keating

  • Q423 revenues of ¥105.1 billion, about 5% better than forecasted, up 5% QoQ but down ~10% YoY.
  • Q124 revenues forecasted to decline 17% QoQ to ¥87 billion. Not surprisingly, EBITDA will also decline 33% QoQ to ¥22.1 billion.
  • On a brighter note, demand growth driven by generative AI will roughly double wafer demand for servers (AI+General) by 2027

HK CEO & Director Dealings (23 Feb 2024): Fast Retailing, Far East Consortium, Pharmaron Beijing

By David Blennerhassett

Trial Holdings IPO: The Investment Case

By Arun George

  • Trial Holdings (5882 JP), a discount store operator in Japan, is seeking to raise US$235 million at the IPO reference price of JPY1,550 per share. Pricing on 11 March.
  • Trial aims to act as a one-stop shopping store where consumers can buy whatever they want at a great price. Trial’s basic pricing strategy is Every Day Low Price.
  • The investment case rests on steady revenue growth, industry-leading same-store sales growth, solid margin profile and cash generation.

Geniee (6562) – Record-High Gross Profits and Recognizing Challenges

By Astris Advisory Japan

  • Heading in a positive direction – we saw the following positives in Q1-3 FY3/24 results; 1) sustained growth trend in quarterly gross profits, 2) all business segments generating positive returns, and 3) signs of progress regarding post-merger integration at Zelto Inc., which recorded strong monthly sales in November 2023.
  • The company has maintained FY3/24 guidance, implying an accelerating Q4 sales growth YoY from a seasonal upturn in activity.
  • We believe that Zelto Inc. will provide growth opportunities in overseas markets.

Whatever the Proxy Voting Advisor’s Criteria, It Is How Investors Actually Conduct Themselves

By Aki Matsumoto

  • Since many prime market listed companies have already achieved the gender and TCFD criteria, this will unlikely to be a major issue with regard to Glass Lewis’ criteria changes.
  • The ROE for the exception rule for companies with large policy shareholdings should have been even higher, not the same as the TSE’s 5-year average ROE of 8%.
  • The criteria for maximum tenure of outside directors should not have provided magic number, but rather performance and other factors that would determine whether he/she is qualified for the position.

LaKeel (4074) – Ready for the Next Growth Phase

By Astris Advisory Japan

  • Encouraging signs with a positive turnaround in Q4 FY12/23 – Q1-4 FY12/23 results were in line with company guidance, with Q4 FY12/23 demonstrating a major pick-up in LaKeel Product license sales resulting in a recovery in profitability QoQ.
  • This was a welcome development from project delays experienced in Q3 FY12/23 and highlights positive underlying demand for LaKeel’s technology.
  • Company guidance for FY12/24 reflects expectations of high double-digit sales and earnings growth YoY, and we believe this will be driven by intensifying efforts by LaKeel to increase market penetration of their technology.

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

Sign Up for Free

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
Sign Up for Free


Feb 23
0

Daily Brief Utilities: Opdenergy Holdings and more

By | Daily Briefs, Utilities Sector

In today’s briefing:

  • Start of Acceptance Period with Guaranteed Success

Start of Acceptance Period with Guaranteed Success

By Jesus Rodriguez Aguilar

  • Spanish renewables group Opdenergy Holdings (OPDE SM) will exit the stock market upon closing of Antin Infrastructure Partners (ANTIN FP)‘s takeover bid. The company is scheduled to delist on 23 April.
  • Minimum acceptance condition is 75%. Antin had 71.2% irrevocables, which together with a letter of intention for 6.09%, should mean the threshold is crossed.
  • Spread is 0.68%/7.54% (gross/annualised, assuming settlement on 26 March). Long and tender.

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

Sign Up for Free

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
Sign Up for Free


Feb 23
0

Daily Brief Industrials: Samsung C&T, Qantas Airways, Boeing Co, Hyundai Rotem Company, Waste Management, HNI Corp, Howmet Aerospace and more

By | Daily Briefs, Industrials

In today’s briefing:

  • The Launch of 1st Corporate Value Up ETF on 27 February – Focus on Low PBR and Cash Flow
  • Qantas – Two-Year Earnings Re-Set in Prospect
  • A Longtime Aerospace Analyst Questions Boeing’s Future
  • Hyundai Rotem: Passage of Export-Import Bank Act To Support Korean Defense Companies
  • Waste Management Inc.: Is There A Negative Impact Of Inflation and The Changing Dynamic Of Sustainability-Related Capital Expenditures? – Major Drivers
  • HNI Corporation – HNI Margins Drive Adjusted EPS Beat
  • Howmet Aerospace: Focus on the Engine Product Market & Pricing Strategies! – Major Drivers

The Launch of 1st Corporate Value Up ETF on 27 February – Focus on Low PBR and Cash Flow

By Douglas Kim

  • Samsung Asset Management announced today that it will be launching the first Corporate Value Up ETF on 27 February. It will focus on low PBR and positive cash flow generators.
  • This ETF which will be called KoAct Dividend Growth Active ETF. There are about 45 stocks that are expected to be included in this ETF. 
  • Among the 92 companies in KOSPI 200 that are trading at less than 1x PBR, those that generate positive free cash flow are outperforming significantly. 

Qantas – Two-Year Earnings Re-Set in Prospect

By Neil Glynn

  • With 1H24 results, Qantas followed Singapore Airlines in highlighting fare weakness in international markets and we cut our pre-tax income by 13% to FY24.
  • We expect FY24 pre-tax income to fall 16% yoy but also expect FY25 to fall another 5%, as our EBITDAR/ASK remains 10% above FY19 levels following 12% in 2H24.
  • While international markets continue to normalise, Qantas’s domestic market structure positions it favourably to continue to invest in customer service and product.

A Longtime Aerospace Analyst Questions Boeing’s Future

By Odd Lots

  • Boeing shares are down 20% since the start of the year, despite a booming global market for aviation
  • Boeing’s focus on financial performance and stock price over safety and engineering has been a concern
  • The current CEO David Calhoun dissolved the company’s strategy department, raising questions about Boeing’s future direction and decision-making strategies

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

Hyundai Rotem: Passage of Export-Import Bank Act To Support Korean Defense Companies

By Douglas Kim

  • On 21 February, it was announced that the long awaited amendment to the Export-Import Bank Act was passed by the Korean National Assembly. 
  • As a result of this passage, the capital limit of the Export-Import Bank of Korea will be raised from the current 10 trillion won to 25 trillion won. 
  • The revision of this law is expected to benefit major defense companies in Korea including Hyundai Rotem, Hanwha Aerospace, LIG Nex1, and Korea Aerospace Industries.

Waste Management Inc.: Is There A Negative Impact Of Inflation and The Changing Dynamic Of Sustainability-Related Capital Expenditures? – Major Drivers

By Baptista Research

  • Waste Management, Inc.
  • has successfully delivered a strong end to 2023, with a 15% increase in fourth quarter operating EBITDA. This has resulted in full year operating EBITDA exceeding the company’s most recent guidance range by nearly $25 million, affirming the company’s original expectations at the start of the year.
  • However, despite this impressive performance, there are still risks ahead given uncertain economic conditions.

HNI Corporation – HNI Margins Drive Adjusted EPS Beat

By Water Tower Research

  • Before the open, HNI reported 4Q23 results, beating on adjusted EPS and roughly in line on the consolidated revenue line.
  • Adjusted EPS was $0.98, well ahead of our estimate of $0.84 and consensus of $0.83.
  • The adjusted number excluded ~$0.50 of restructuring asset impairment and acquisition-related costs.

Howmet Aerospace: Focus on the Engine Product Market & Pricing Strategies! – Major Drivers

By Baptista Research

  • Howmet Aerospace positively reported strong fourth quarter 2023 results, achieving or surpassing the upper end of guidance across various parameters, including revenue, EBITDA, EBITDA margin, and earnings per share.
  • It was reported that the company continued to grow faster than its respective markets.
  • The full-year figures for 2023 also revealed strong performances with a 17% increase in revenue and 18% increase in EBITDA. The earnings per share showed significant annual improvements, setting a record at $1.84 per share, marking a 31% year-over-year increase.

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

Sign Up for Free

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
Sign Up for Free


Feb 23
0

Daily Brief Energy/Materials: CSR Ltd, Energean, Geopark Ltd, Panoro Energy ASA and more

By | Daily Briefs, Energy & Materials Sector

In today’s briefing:

  • CSR (CSR AU): Saint Gobain’s $9/Share NBIO
  • Energean (ENOG) – Thursday, Nov 23, 2023
  • GeoPark Limited (NYSE: GPRK): 110% Reserve Replacement Ratio in 2023
  • Panoro Energy ASA (OSE: PEN): Hibiscus South discovery potentially 50-100% larger than expected

CSR (CSR AU): Saint Gobain’s $9/Share NBIO

By David Blennerhassett

  • Cie De Saint-Gobain (SGO FP) is offering CSR (CSR AU) shareholders A$9/share by way of a Scheme, a 34% premium to last close. That’s a knockout price.
  • The Offer is indicative. Confirmatory due diligence is ongoing. CSR board has, not surprisingly “unanimously resolved to pursue the offer at an agreed price of A$9.00“. 
  • A firm offer would be subject to FIRB and shareholder approval. Neither should pose an issue. Assuming a firm Offer is shortly forthcoming, this could be wrapped up late-July

Energean (ENOG) – Thursday, Nov 23, 2023

By Value Investors Club

Key points

  • Energean has shown smart capital allocation and operational execution, particularly in the development of a large gas field with a 17-year production runway
  • The company’s core asset in Israel generates gas at a low cost and has promising supply-demand dynamics in the region
  • With a 10% dividend yield and potential for 15-20% returns in 2-3 years, Energean is being considered as a good long-term 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.

GeoPark Limited (NYSE: GPRK): 110% Reserve Replacement Ratio in 2023

By Auctus Advisors

  • 2P YE23 reserves were estimated at 115.1 mmboe.
  • Excluding 14.6 mmboe at YE22 in Chile (being sold), this compares to 113.8 mmboe at YE22.
  • During 2023, GeoPark has added ~14 mmboe of 2P reserves.

Panoro Energy ASA (OSE: PEN): Hibiscus South discovery potentially 50-100% larger than expected

By Auctus Advisors

  • The FY23 production of 8,471 bbl/d was in line with previous indications.
  • YE23 cash, gross debt and cash advances had been previously reported.
  • The FY24 production guidance is now 11-13 mbbl/d (11-14 mbbl/d previously) as Panoro has incorporated a pause in drilling offshore EG. The main factor driving the adjusted upper limit of guidance range is the timing to secure a new rig in EG and deferral of some associated production.

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

Sign Up for Free

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
Sign Up for Free


Feb 23
0

Daily Brief TMT/Internet: Sea , Workday Inc Class A, NVIDIA Corp, Jusung Engineering, SUMCO Corp, NetEase Inc, Datadog , Cadence Design Sys, Lattice Semiconductor and more

By | Daily Briefs, TMT/Internet

In today’s briefing:

  • Sea Will Release Its Q4 2023 Earnings Report Soon
  • Quiddity Leaderboard S&P 500 Mar 24: Big Index Flows Possible for Workday and KKR
  • Nvidia: A Quality Stock that Shows Human Investors Are Unable to Discount Exponential Growth
  • FnGuide Semiconductor Top10 Index Rebalance Preview: One Change Likely; Close Among Potential Adds
  • SUMCO’s Sobering Outlook For Silicon Wafers
  • [NetEase, Inc. (NTES US, BUY, TP US$118) TP Change]: Strong In-House Game Performance Drives Margins
  • Datadog Inc: Can The Acquisition Of Actiondesk Be A Game Changer? – Major Drivers
  • Finding the Sweet Spot: Nvidia’s Goldilocks Quarter
  • Cadence Design Systems: A Solid AI Infrastructure & Product Positioning Changing Its Growth Story? – Major Drivers
  • Lattice Semiconductor: A Tale Of An Expanding Market & An Increasing Client Base! – Major Drivers

Sea Will Release Its Q4 2023 Earnings Report Soon

By Simon Torring

  • Shopee – Sea’s largest business unit and Southeast Asia’s largest e-commerce platform – has reported negative EBITDA for most of the 8 or so years since its launch. 

  • Investors now however appear to be looking for earnings growth. In 7 of the last 9 quarterly earnings reports, investors have rewarded the company every time it has reported earnings growth (its share price has gone up in the day after the release), and penalized when it has not.

  • Based on our analysis (and subject to the disclaimer included below), we expect Shopee’s GMV and Revenue to improve in Q4 2023 (as compared to the previous quarter) along with its EBITDA, although earnings will likely remain in negative territory.

Quiddity Leaderboard S&P 500 Mar 24: Big Index Flows Possible for Workday and KKR

By Travis Lundy

  • The S&P 500 index tracks the 500 largest names listed in the US and it is one of the most highly-tracked indices in the world.
  • The index is reviewed quarterly. The next review will be in March 2024 and the evaluation date for the rankings for the constituent selection process is 29th February 2024.
  • In this insight, we take a look at Potential ADDs and Potential DELs for the rebalance. We estimate US$13.1bn one-way flow on 3 ADDs and 3 DELs.

Nvidia: A Quality Stock that Shows Human Investors Are Unable to Discount Exponential Growth

By Jeroen Blokland

  • Nvidia’s blowout earnings number is another example of how grasping exponential growth trends is extremely difficult for human investors.
  • Unlike what is often assumed, Nvidia, for now, qualifies as a quality stock, revealing relentless competitive power, low debt, and reasonable valuation.
  • Nvidia’s weight with Quality ETFs is bigger than its weight in the MSCI World Index, adding to quality stock outperformance.

FnGuide Semiconductor Top10 Index Rebalance Preview: One Change Likely; Close Among Potential Adds

By Brian Freitas

SUMCO’s Sobering Outlook For Silicon Wafers

By William Keating

  • Q423 revenues of ¥105.1 billion, about 5% better than forecasted, up 5% QoQ but down ~10% YoY.
  • Q124 revenues forecasted to decline 17% QoQ to ¥87 billion. Not surprisingly, EBITDA will also decline 33% QoQ to ¥22.1 billion.
  • On a brighter note, demand growth driven by generative AI will roughly double wafer demand for servers (AI+General) by 2027

[NetEase, Inc. (NTES US, BUY, TP US$118) TP Change]: Strong In-House Game Performance Drives Margins

By Ying Pan

  • We expect NetEase to report C4Q23 revenue, GAAP op. profit and GAAP net income 4.9%, 5.7% and 8.5% vs. consensus.
  • The robust topline growth was mainly contributed by revenue recognition of <Justice Mobile> in the peak summer season.
  • The grossing of legacy titles like <FWWJ> is also growing steadily due to the low-price strategy. We raise our TP to US$118 to reflect the rich and diversified pipeline…

Datadog Inc: Can The Acquisition Of Actiondesk Be A Game Changer? – Major Drivers

By Baptista Research

  • Datadog Inc., in its Q4 2023 earnings, revealed that it ended the year on a high note.
  • With continued innovation and high customer adoption rates, the company’s revenue was $590 million, a 26% increase year-over-year, exceeding its guidance range.
  • The company’s customer growth was significant, moving from around 23,200 last year to about 27,300 currently.

Finding the Sweet Spot: Nvidia’s Goldilocks Quarter

By Douglas O’Laughlin

  • Nvidia’s earnings are akin to my Super Bowl.
  • There is no more significant event in semiconductors and AI, and each quarter, we tune into Nvidia’s results to see precisely what quarter we are in the AI hype cycle (and potentially bubble).
  • There is no better signpost for the entire AI ecosystem than the company making the most of the revenue so far: Nvidia.

Cadence Design Systems: A Solid AI Infrastructure & Product Positioning Changing Its Growth Story? – Major Drivers

By Baptista Research

  • Cadence Design Systems reported outstanding performance for Q4 and FY 2023, achieving 15% revenue growth, a non-GAAP operating margin of 42%, and over 20% non-GAAP EPS growth.
  • The company exited the year with a record backlog of $6 billion.
  • Cadence attributes this success to their innovative solutions and customer commitments to their chip to system integrated design and analysis platforms.

Lattice Semiconductor: A Tale Of An Expanding Market & An Increasing Client Base! – Major Drivers

By Baptista Research

  • Lattice Semiconductor Corp.
  • achieved solid financial results in 2023, with robust revenue growth and record gross margins.
  • The semiconductor industry’s cyclical correction had a slight impact on the company’s 2023 Q4 progress, which could continue into early 2024.

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

Sign Up for Free

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
Sign Up for Free


Feb 23
0

Daily Brief Industrials: Samsung C&T, Qantas Airways, Boeing Co, Hyundai Rotem Company, Waste Management, HNI Corp, Howmet Aerospace and more

By | Daily Briefs, Industrials

In today’s briefing:

  • The Launch of 1st Corporate Value Up ETF on 27 February – Focus on Low PBR and Cash Flow
  • Qantas – Two-Year Earnings Re-Set in Prospect
  • A Longtime Aerospace Analyst Questions Boeing’s Future
  • Hyundai Rotem: Passage of Export-Import Bank Act To Support Korean Defense Companies
  • Waste Management Inc.: Is There A Negative Impact Of Inflation and The Changing Dynamic Of Sustainability-Related Capital Expenditures? – Major Drivers
  • HNI Corporation – HNI Margins Drive Adjusted EPS Beat
  • Howmet Aerospace: Focus on the Engine Product Market & Pricing Strategies! – Major Drivers

The Launch of 1st Corporate Value Up ETF on 27 February – Focus on Low PBR and Cash Flow

By Douglas Kim

  • Samsung Asset Management announced today that it will be launching the first Corporate Value Up ETF on 27 February. It will focus on low PBR and positive cash flow generators.
  • This ETF which will be called KoAct Dividend Growth Active ETF. There are about 45 stocks that are expected to be included in this ETF. 
  • Among the 92 companies in KOSPI 200 that are trading at less than 1x PBR, those that generate positive free cash flow are outperforming significantly. 

Qantas – Two-Year Earnings Re-Set in Prospect

By Neil Glynn

  • With 1H24 results, Qantas followed Singapore Airlines in highlighting fare weakness in international markets and we cut our pre-tax income by 13% to FY24.
  • We expect FY24 pre-tax income to fall 16% yoy but also expect FY25 to fall another 5%, as our EBITDAR/ASK remains 10% above FY19 levels following 12% in 2H24.
  • While international markets continue to normalise, Qantas’s domestic market structure positions it favourably to continue to invest in customer service and product.

A Longtime Aerospace Analyst Questions Boeing’s Future

By Odd Lots

  • Boeing shares are down 20% since the start of the year, despite a booming global market for aviation
  • Boeing’s focus on financial performance and stock price over safety and engineering has been a concern
  • The current CEO David Calhoun dissolved the company’s strategy department, raising questions about Boeing’s future direction and decision-making strategies

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

Hyundai Rotem: Passage of Export-Import Bank Act To Support Korean Defense Companies

By Douglas Kim

  • On 21 February, it was announced that the long awaited amendment to the Export-Import Bank Act was passed by the Korean National Assembly. 
  • As a result of this passage, the capital limit of the Export-Import Bank of Korea will be raised from the current 10 trillion won to 25 trillion won. 
  • The revision of this law is expected to benefit major defense companies in Korea including Hyundai Rotem, Hanwha Aerospace, LIG Nex1, and Korea Aerospace Industries.

Waste Management Inc.: Is There A Negative Impact Of Inflation and The Changing Dynamic Of Sustainability-Related Capital Expenditures? – Major Drivers

By Baptista Research

  • Waste Management, Inc.
  • has successfully delivered a strong end to 2023, with a 15% increase in fourth quarter operating EBITDA. This has resulted in full year operating EBITDA exceeding the company’s most recent guidance range by nearly $25 million, affirming the company’s original expectations at the start of the year.
  • However, despite this impressive performance, there are still risks ahead given uncertain economic conditions.

HNI Corporation – HNI Margins Drive Adjusted EPS Beat

By Water Tower Research

  • Before the open, HNI reported 4Q23 results, beating on adjusted EPS and roughly in line on the consolidated revenue line.
  • Adjusted EPS was $0.98, well ahead of our estimate of $0.84 and consensus of $0.83.
  • The adjusted number excluded ~$0.50 of restructuring asset impairment and acquisition-related costs.

Howmet Aerospace: Focus on the Engine Product Market & Pricing Strategies! – Major Drivers

By Baptista Research

  • Howmet Aerospace positively reported strong fourth quarter 2023 results, achieving or surpassing the upper end of guidance across various parameters, including revenue, EBITDA, EBITDA margin, and earnings per share.
  • It was reported that the company continued to grow faster than its respective markets.
  • The full-year figures for 2023 also revealed strong performances with a 17% increase in revenue and 18% increase in EBITDA. The earnings per share showed significant annual improvements, setting a record at $1.84 per share, marking a 31% year-over-year increase.

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

Sign Up for Free

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
Sign Up for Free


Feb 23
0

Daily Brief Health Care: Celltrion Inc, Bangkok Dusit Medical Services, Biogen Inc, Zoetis Inc and more

By | Daily Briefs, Healthcare

In today’s briefing:

  • FnGuide Top10 Equal Weight Index Rebalance Preview: Celltrion Could Replace Samsung SDI
  • Bangkok Dusit Medical Services (BDMS TB): Core Business Drives 4Q23 Result; Outlook Remains Positive
  • Biogen Inc: The Breakthrough Drug Portfolio Set to Dominate Neurology – See How They’re Changing the Game! – Major Drivers
  • Zoetis Inc: Librela & Other Factors Contributing To Its Competitive Edge! – Financial Forecasts

FnGuide Top10 Equal Weight Index Rebalance Preview: Celltrion Could Replace Samsung SDI

By Brian Freitas

Bangkok Dusit Medical Services (BDMS TB): Core Business Drives 4Q23 Result; Outlook Remains Positive

By Tina Banerjee

  • Bangkok Dusit Medical Services (BDMS TB) reported double-digit top and bottomline growth in 4Q23. Growth was attributable to international and Thai non-COVID patient revenues growth.
  • In 2023, total revenue was THB102B, up 10% YoY, matching the higher end of the guidance range of 9–10%. EBITDA margin of 24.2% remained higher than guidance of 24.0%.
  • In 2024, BDMS expects healthcare business to grow continuously on the back of secular tailwinds in the healthcare sector in Thailand.

Biogen Inc: The Breakthrough Drug Portfolio Set to Dominate Neurology – See How They’re Changing the Game! – Major Drivers

By Baptista Research

  • Biogen concluded its Fourth Quarter and Full Year 2023, announcing several positive strides and addressing potential drawback in its prospects moving forward with its outlook for 2024.
  • Biogen emphasized its objective of returning to sustainable growth.
  • Chris Viehbacher, Biogen’s President and Chief Executive Officer, reported positive earnings per share guidance, a notable element for consideration.

Zoetis Inc: Librela & Other Factors Contributing To Its Competitive Edge! – Financial Forecasts

By Baptista Research

  • Zoetis, a leading company in animal health, reported strong results for the full year with an operational revenue growth of 7% which was driven by the success of their diverse portfolio, innovation and the commitment of their colleagues.
  • Their products designed for pain relief in osteoarthritis contributed towards a 6% growth in the U.S. sector and 9% operational growth internationally.
  • The companion animal portfolio showed an operational growth increasing by 8%, while the livestock portfolio also witnessed improvements, growing by 6%.

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

Sign Up for Free

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
Sign Up for Free


Feb 23
0

Daily Brief Financials: Standard Chartered, Woori Financial Group , Ethereum, Moody’s Corp and more

By | Daily Briefs, Financials

In today’s briefing:

  • StandChart Is Likely to Have More China Bohai Impairment
  • South Korean Banks; Woori Financial (316140 KS) Added to Buy List, Joining KB Financial (105560 KS)
  • Crypto Moves #16 – Why We Are Long Ethereum Layer 2s
  • Moody’s Corporation: New GenAI Tool

StandChart Is Likely to Have More China Bohai Impairment

By Fern Wang

  • StandChart may need to take further impairment hit on China Bohai Bank
  • VIU model is used to justify the higher carrying value compared to fair value of the holdings.  There is zero headroom between the VIU model and the carrying amount.
  • We looked at VIU model assumptions for HSBC and StandChart. A declining NIM is likely put further pressure on the VIU model output for StandChart.  

South Korean Banks; Woori Financial (316140 KS) Added to Buy List, Joining KB Financial (105560 KS)

By Victor Galliano

  • In our latest South Korean banks screener; we add Woori Financial to existing buy KB Financial as our preferred Korean banks picks
  • Delinquency ratios continued to worsen QoQ, with only Woori bucking the 4Q23 NPL trend; Woori has lagged in terms of returns, but we expect CoR control to support 2024 returns
  • KB has a low PBV ratio relative to its ROE, it delivers rising post-provision returns,  it has a high CET1 ratio and it maintains a healthy LDR

Crypto Moves #16 – Why We Are Long Ethereum Layer 2s

By Mads Eberhardt

  • In the short to medium term, Ethereum is mainly depending on what is known as off-chain scaling to significantly expand its blockchain’s capacity beyond its current limit of roughly 15 transactions per second.
  • This strategy sets Ethereum apart from other blockchains like Solana, which primarily concentrate on scaling directly on the blockchain itself, also known as on-chain scaling.
  • Ethereum’s method involves using something called Layer 2s, or rollups.

Moody’s Corporation: New GenAI Tool

By Baptista Research

  • Moody’s Corporation showed a promising performance in their fourth quarter and full-year results of 2023.
  • The company ended the year with an 8% revenue growth and an increase in adjusted diluted EPS by 16%.
  • Within these achievements, Moody’s has been highlighted as an early adopter and innovator of GenAI. A significant accomplishment was the launch of their first-ever GenAI-enabled product in December 2023.

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

Sign Up for Free

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
Sign Up for Free