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Smartkarma Daily Briefs

Feb 19
0

Daily Brief Macro: Ending Deflation in China: Currency Appreciation Can Support Economic Rebalancing Towards Consumers and more

By | Daily Briefs, Macro

In today’s briefing:

  • Ending Deflation in China: Currency Appreciation Can Support Economic Rebalancing Towards Consumers
  • Are Negative Divergences Necessarily Bearish?
  • Is “Transitory Disinflation” Here to Stay?

Ending Deflation in China: Currency Appreciation Can Support Economic Rebalancing Towards Consumers

By Said Desaque

  • China experienced deflation following the Asian and global financial crises. Western commentators fear that China will fight deflation with a weaker currency that undermines trading partners, including the US.
  • China’s reliance on a weak currency to promote economic development has been detrimental to households, while currency appreciation will help structural rebalancing by boosting household spending and reduce deflationary pressures.
  • Yuan appreciation could increase global economic stability by forcing the US to be less fiscally profligate.  Trade tensions with the US will also be lowered if China accepts yuan appreciation. 

Are Negative Divergences Necessarily Bearish?

By Cam Hui

  • We are long-term bullish on equities, but the stock market may be vulnerable to a setback in the short run as negative divergences are appearing everywhere.
  • These divergences could resolve in a sideways consolidation and rolling correction, or a sudden downdraft marked by a spike in price volatility.
  • The NVIDIA earnings report in the coming week could be pivotal to the near-term market outlook.

Is “Transitory Disinflation” Here to Stay?

By Cam Hui

  • The hotter-than-expected January CPI and PPI reports rattled the bond market and expectations of the first quarter-point rate cut have been pushed out from May to June.
  • Do the stronger-than-inflation reports mean a pivot to a “higher for longer”?
  • We believe it’s too early to panic over one month’s hot inflation report. The Cleveland Fed’s inflation nowcast shows January core PCE is still showing signs of deceleration at 2.8%.

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Feb 19
0

Daily Brief United States: Arthur J Gallagher & Co, Marsh & Mclennan, Mfa Financial and more

By | Daily Briefs, United States

In today’s briefing:

  • Arthur J Gallagher &Amp; Co (AJG) – Sunday, Nov 19, 2023
  • Marsh &Amp; Mclennan Cos (MMC) – Sunday, Nov 19, 2023
  • Mfa Financial Inc (MFA.PC) – Sunday, Nov 19, 2023

Arthur J Gallagher &Amp; Co (AJG) – Sunday, Nov 19, 2023

By Value Investors Club

Key points

  • Arthur J Gallagher is a strong player in the U.S. SME broking market trading at fair value with potential upside
  • Estimated 5-year returns are 10% IRR / 1.5x MOIC, with possibility of higher returns with EBITDA growth and multiple expansion
  • Insurance brokers benefiting from firm P&C pricing cycle and market conditions, providing downside protection and potential for sustained organic growth, investor focus on growth trend maintenance

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.

Marsh &Amp; Mclennan Cos (MMC) – Sunday, Nov 19, 2023

By Value Investors Club

Key points

  • Marsh McLennan is the largest insurance broker globally, with strong organic growth driven by its consulting business
  • Current valuation at $198 with an EV/2024E EBITDA of 16.0x is considered fair, offering potential 5-year returns of 12% IRR / 1.7x MOIC
  • Predicted returns could increase to 16% IRR / 2.1x MOIC with a 13% EBITDA growth rate and a multiple expansion to 17.0x, with a favorable market backdrop for insurance brokers helping to drive growth trends

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.

Mfa Financial Inc (MFA.PC) – Sunday, Nov 19, 2023

By Value Investors Club

Key points

  • MFA Financial’s Series C preferred stock offers a 25% IRR and 40% total return over 18 months
  • Favorable entry point for investors due to current interest rate environment and preferred instruments being out of favor
  • MFA’s position in the face of LIBOR transition challenges sets it apart, making it a strong choice for short-duration fixed income investing

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.

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Feb 19
0

Daily Brief Singapore: Asia Enterprises Holding and more

By | Daily Briefs, Singapore

In today’s briefing:

  • Retail investors net buy S$1 billion of Singapore stocks in early 2024

Retail investors net buy S$1 billion of Singapore stocks in early 2024

By Geoff Howie

  • THE net institutional fund flows for the first six weeks of 2024 showed a similar trend as the same period in 2023, with net withdrawals of S$463 million.
  • The net institutional fund flows indicate the direction and level of institutional investor activity across all stocks in the Singapore market.
  • As many as 18 of the 20 stocks that booked the highest net retail inflow relative to market capitalisation also booked declines in total return, while Pacific Radiance and Asia Enterprises Holding were the exceptions, booking respective total returns of 7.2 per cent and 9.1 per cent over the six weeks.

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Feb 19
0

Daily Brief India: JSW Steel Ltd and more

By | Daily Briefs, India

In today’s briefing:

  • Morning Views Asia: JSW Steel Ltd

Morning Views Asia: JSW Steel Ltd

By Leonard Law, CFA

Lucror Analytics Morning Views comprise our fundamental credit analysis, opinions and trade recommendations on high yield issuers in the region, based on key company-specific developments in the past 24 hours. Our Morning Views include a section with a brief market commentary, key market indicators and a macroeconomic and corporate event calendar.

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Feb 19
0

Daily Brief Japan: Snow Peak Inc, Outsourcing Inc, Shiseido Company, Sony Corp, Keisei Electric Railway Co, Kyowa Kirin Co Ltd and more

By | Daily Briefs, Japan

In today’s briefing:

  • Snow Peak (7816 JP): Bain Contemplating Backing an MBO at JPY1,200
  • Merger Arb Mondays (19 Feb) – Outsourcing, JSR, Shinko, YSK, Vinda, Altium, Azure, Ansarada
  • Shiseido (4911 JP):  Japan On Track While China Was Weak
  • ECM Weekly (19th Feb 2024) – Toei Ani, KB Fin, IIF, Trial, Juniper, Bharti Hexacom, Octillion Energy
  • Keisei Electric Rail (9009): Can Be Higher
  • Kyowa Kirin (4151 JP): Recent Portfolio Strengthening Initiatives to Accelerate Long-Term Growth

Snow Peak (7816 JP): Bain Contemplating Backing an MBO at JPY1,200

By Arun George

  • The Nikkei reports that Snow Peak Inc (7816 JP) is set to disclose a Bain-sponsored MBO this week “in the range of 1,200 yen per share.”
  • Mergermarket first disclosed a potential MBO on Friday. Snow Peak responded that while it is true that we are considering going private, no decision has been made at this time.
  • The rumoured JPY1,200 offer price is light vs historical trading ranges but attractive vs peer and historical multiples. The probability of an offer materialising is high. 

Merger Arb Mondays (19 Feb) – Outsourcing, JSR, Shinko, YSK, Vinda, Altium, Azure, Ansarada

By Arun George

Shiseido (4911 JP):  Japan On Track While China Was Weak

By Steve Zhou, CFA

  • Shiseido Company (4911 JP) reported 4Q23 results last week.  Overall, operating profit of Y40bn in FY23 was Y5bn higher than previous company guidance of Y35bn.
  • However, Shiseido’s China business weakened materially in 4Q23, and 2024/25 guidance seems a bit light. 
  • I believe FY24 should not be used as a base for valuation because the nuclear wastewater impact is likely to linger a while longer during FY24. 

ECM Weekly (19th Feb 2024) – Toei Ani, KB Fin, IIF, Trial, Juniper, Bharti Hexacom, Octillion Energy

By Sumeet Singh

  • Aequitas Research puts out a weekly update on the deals that were covered by the team recently along with updates for upcoming IPOs.
  • On the IPO front, Trial Holdings (5882 JP) was back in the market, a year after ditching its previous attempt, while Juniper Hotels is trying to ride the India wave.
  • For placements, more signs of REIT coming back to life, this time in Japan. A relatively large deal in Toei Animation (4816 JP) as well was launched.

Keisei Electric Rail (9009): Can Be Higher

By Henry Soediarko

  • Keisei Electric Railway Co (9009 JP) share price has increased but not run ahead of its fundamentals.
  • Weak Yen, COVID rebound, friendlier visa policy by the Japanese government, and the potential for more Chinese tourists visiting Japan are tailwinds for Keisei.
  • Valuation may look expensive, but with the high growth rate, investors should consider to use PEG rather than PER or PBR.

Kyowa Kirin (4151 JP): Recent Portfolio Strengthening Initiatives to Accelerate Long-Term Growth

By Tina Banerjee

  • Kyowa Kirin Co Ltd (4151 JP) has announced partnership with Bridgebio Pharma Inc (BBIO US) for an exclusive license on infigratinib for achondroplasia, hypochondroplasia, and other skeletal dysplasias in Japan.
  • This month, Kyowa Kirin has enrolled first patient in a Phase 2 clinical trial evaluating tivozanib eye drops (KHK4951) in patients with diabetic macular edema (DME).
  • The company’s top selling drug Crysvita is growing steadily since launch. Crysvita led to better-than-expected result in 2023. However, higher R&D expenses will negatively impact 2024 operating profit.

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Feb 19
0

Daily Brief China: UBTech Robotics, Tongcheng Travel Holdings , East Buy Holding , Citic Ltd, BeiGene , Trip.com and more

By | China, Daily Briefs

In today’s briefing:

  • HSCI Index Rebalance: 25 Adds, 29 Deletes & Changes to Southbound Stock Connect
  • HSTECH Index Rebalance: Tongcheng (780 HK) In; GDS (9698 HK) Out; Round Trip Trade US$1bn
  • Hang Seng Internet & IT Index Rebalance: Three Changes & One Big Surprise
  • Citic Limited – A Deeply Discounted Conglomerate in the Hang Seng Index
  • BeiGene (6160.HK/​BGNE.US/688235.CH) – 2023 Results Preview and Undervaluation Concerns
  • China Consumption Weekly (19 Feb 2024): Ant Group, Great Wall Motor, JD.com, Baidu, Autohome

HSCI Index Rebalance: 25 Adds, 29 Deletes & Changes to Southbound Stock Connect

By Brian Freitas

  • There are 25 adds and 29 deletes for the Hang Seng Composite Index (HSCI) at the March rebalance to take the number of index constituents down to 514.
  • We expect 21 of the 25 HSCI inclusions to be added to Stock Connect while we expect 27 of the 29 HSCI deletions to be removed from Southbound Stock Connect.
  • Since the start of the year, shares held though Southbound Connect have increased on 22 of the 29 HSCI deletions and there could be some unwinding in the weeks ahead.

HSTECH Index Rebalance: Tongcheng (780 HK) In; GDS (9698 HK) Out; Round Trip Trade US$1bn

By Brian Freitas

Hang Seng Internet & IT Index Rebalance: Three Changes & One Big Surprise

By Brian Freitas

  • There will be 3 changes for the Hang Seng Internet & Information Technology Index (HSIII) at the March rebalance. There are some surprises.
  • Estimated one-way turnover at the rebalance is 5.6% resulting in a round-trip trade of HK$3.26bn (US$416m). 6 stocks will have over 1x ADV to trade.
  • There is huge short interest on East Buy Holding (1797 HK) and there could be some short covering ahead of the inclusion of the stock in the index.

Citic Limited – A Deeply Discounted Conglomerate in the Hang Seng Index

By Rikki Malik

  • Citic Ltd (267 HK) is a well-managed conglomerate trading at a big discount to its constituent parts
  • Earnings should move up from here and pays a decent dividend while you wait.
  • A member of both the the Hang Seng Index (HSI INDEX)  and the HSCCI and will attract inflows once institutional money returns

BeiGene (6160.HK/​BGNE.US/688235.CH) – 2023 Results Preview and Undervaluation Concerns

By Xinyao (Criss) Wang

  • Since Imbruvica’s sales continued to decline and Calquence hadn’t shown much growth in US since 23Q2, either Zanubrutinib gained more market share or the entire BTK inhibitors market is shrinking. 
  • BeiGene’s recent sluggish share price could be related to geopolitical conflicts/weak market sentiment.However, innovative drugs don’t involve supply chain security issues. There’s no need for US to sanction China’s biotech.
  • We are relatively optimistic about BeiGene’s 23Q4 sales growth. In our view, BeiGene’s reasonable market value is at least about US$18 billion. BeiGene (6160 HK) is undervalued.   

China Consumption Weekly (19 Feb 2024): Ant Group, Great Wall Motor, JD.com, Baidu, Autohome

By Ming Lu

  • Overseas traveling revenue recovered strongly in China during the Chinese New Year.
  • Great Wall Motor’s vehicle deliveries increased by 69% in January 2024.
  • JD.com plans to raise the salaries for customer service employees by 30% in 2024.

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Feb 19
0

Most Read: MS&AD Insurance, UBTech Robotics, Snow Peak Inc, China Unicom Hong Kong, Tongcheng Travel Holdings , SCREEN Holdings, Outsourcing Inc, Korea Stock Exchange KOSPI 200, East Buy Holding and more

By | Daily Briefs, Most Read

In today’s briefing:

  • [Japan Governance] FSA Urges Japan Non-Life Insurers to Eliminate Cross-Holdings – Sales Coming
  • HSCI Index Rebalance: 25 Adds, 29 Deletes & Changes to Southbound Stock Connect
  • Snow Peak (7816) – Nikkei Says Bain to Launch ¥50bn MBO
  • HSCEI Index Rebalance: Third Time Unlucky for Zhongsheng (881 HK) As China Unicom (762 HK) In
  • HSTECH Index Rebalance: Tongcheng (780 HK) In; GDS (9698 HK) Out; Round Trip Trade US$1bn
  • Index Rebalance & ETF Flow Recap: HSI, Screen Holdings, GMRI, SEA EM, MVIS, SET50, JP Positioning
  • Snow Peak (7816 JP): Bain Contemplating Backing an MBO at JPY1,200
  • Last Week in Event SPACE: Outsourcing Ltd, MGM China, JSR Corp, Dissentient Blues
  • What We’ve Gathered Thus Far Regarding KOREA PREMIUM INDEX: Schedule, Methodology, & NPS
  • Hang Seng Internet & IT Index Rebalance: Three Changes & One Big Surprise

[Japan Governance] FSA Urges Japan Non-Life Insurers to Eliminate Cross-Holdings – Sales Coming

By Travis Lundy

  • There has been a recent non-life insurer price-fixing scandal. The JFTC and FSA investigated. Last December, the FSA issued Business Improvement Orders to the four majors. 
  • There was a Bigmotor scandal last summer and Sompo Japan got a Business Improvement Order last month. All four insurers have 
  • 9 Feb post-close, Jiji/Nikkei had articles saying the FSA had urged four major non-lifes subject to the first BIO to accelerate sales of ¥6.5trln+ of 5,900 Cross-Holdings. That’s big.

HSCI Index Rebalance: 25 Adds, 29 Deletes & Changes to Southbound Stock Connect

By Brian Freitas

  • There are 25 adds and 29 deletes for the Hang Seng Composite Index (HSCI) at the March rebalance to take the number of index constituents down to 514.
  • We expect 21 of the 25 HSCI inclusions to be added to Stock Connect while we expect 27 of the 29 HSCI deletions to be removed from Southbound Stock Connect.
  • Since the start of the year, shares held though Southbound Connect have increased on 22 of the 29 HSCI deletions and there could be some unwinding in the weeks ahead.

Snow Peak (7816) – Nikkei Says Bain to Launch ¥50bn MBO

By Travis Lundy

  • Apparently, MergerMarket had an article out Friday saying once-higher-flying outdoor/sporting goods retailer Snow Peak Inc (7816 JP) was considering going private. The company said(J) late they were considering multiple options.
  • A Nikkei article (J) Saturday said it was Bain would launch an MBO/Tender Offer as early as this week paying ¥50bn. 
  • This will probably go limit up Monday. I’d expect an announcement post-close Monday. Long-suffering long-only investors who have already sold will be disappointed. Those who were late to sell? Happy.

HSCEI Index Rebalance: Third Time Unlucky for Zhongsheng (881 HK) As China Unicom (762 HK) In

By Brian Freitas

HSTECH Index Rebalance: Tongcheng (780 HK) In; GDS (9698 HK) Out; Round Trip Trade US$1bn

By Brian Freitas

Index Rebalance & ETF Flow Recap: HSI, Screen Holdings, GMRI, SEA EM, MVIS, SET50, JP Positioning

By Brian Freitas

Snow Peak (7816 JP): Bain Contemplating Backing an MBO at JPY1,200

By Arun George

  • The Nikkei reports that Snow Peak Inc (7816 JP) is set to disclose a Bain-sponsored MBO this week “in the range of 1,200 yen per share.”
  • Mergermarket first disclosed a potential MBO on Friday. Snow Peak responded that while it is true that we are considering going private, no decision has been made at this time.
  • The rumoured JPY1,200 offer price is light vs historical trading ranges but attractive vs peer and historical multiples. The probability of an offer materialising is high. 

Last Week in Event SPACE: Outsourcing Ltd, MGM China, JSR Corp, Dissentient Blues

By David Blennerhassett

  • Nobody “named” having >5.0% in Outsourcing (2427 JP); no public noise, the stock down; people won’t be fighting for a bump unless the delay and impairment are truly meaningless.
  • Stay long MGM China Holdings (2282 HK) as its FY23 top line surpasses pre-Covid levels.
  • Investors and risk arbitrageurs who are worried about the potential loss of the case to RF SUNY should simply avoid, or sell then avoid JSR Corp (4185 JP) shares.

What We’ve Gathered Thus Far Regarding KOREA PREMIUM INDEX: Schedule, Methodology, & NPS

By Sanghyun Park

  • The Feb 26th announcement introduces the Corporate Value Up Program and unveils the Korea Premium Index direction. Methodology finalization expected by mid-March; ETFs launch by mid-May.
  • Similar to JPX Prime 150, KRX aims to target enhancing equity spread and PBR trends (+1.0x) while also integrating dividend growth rate. KOSDAQ stocks may be omitted.
  • NPS’s role is vital for the Korea Premium Index, yet aligning its passive strategy with this index faces challenges. Ongoing discussions aim to adjust regulations for this index investment.

Hang Seng Internet & IT Index Rebalance: Three Changes & One Big Surprise

By Brian Freitas

  • There will be 3 changes for the Hang Seng Internet & Information Technology Index (HSIII) at the March rebalance. There are some surprises.
  • Estimated one-way turnover at the rebalance is 5.6% resulting in a round-trip trade of HK$3.26bn (US$416m). 6 stocks will have over 1x ADV to trade.
  • There is huge short interest on East Buy Holding (1797 HK) and there could be some short covering ahead of the inclusion of the stock in the index.

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Feb 18
0

Daily Brief TMT/Internet: Altium Ltd, China Unicom Hong Kong, Temenos AG, SCREEN Holdings, Cloudflare , Coherent Inc, Alibaba (ADR), ROBLOX , Snap , Take Two Interactive Software, Inc and more

By | Daily Briefs, TMT/Internet

In today’s briefing:

  • (Mostly) Asia-Pac Weekly Risk Arb Wrap: Altium, Ansarada, Roland DG, Welbe, Orecorp, Vinda
  • HSCEI Index Rebalance: Third Time Unlucky for Zhongsheng (881 HK) As China Unicom (762 HK) In
  • Unveiling the Shadows: A Deep Dive into Hindenburg Research’s Exposé on Temenos
  • Index Rebalance & ETF Flow Recap: HSI, Screen Holdings, GMRI, SEA EM, MVIS, SET50, JP Positioning
  • Cloudflare Inc: Why We See Immense Potential In AI and Vectorize! – Major Drivers
  • Coherent Corp.: Launch of New WaveShaper Instruments For U- And Super C-Bands & Other Major Developments
  • Alibaba Group: Revitalization of Taobao and Tmall Group
  • Roblox Corporation: Cutting-Edge AI Drives Cost Down! Inside Look at How They’re Revolutionizing Game Infrastructure! – Major Drivers
  • Snap Inc: Can Its Optimization Of Machine Learning (ML) Models for Advertising Change The Game? – Major Drivers
  • Take-Two Interactive Software: The Realization Of The Zynga Acquisition Synergies Is Now Evident & How! – Major Drivers

(Mostly) Asia-Pac Weekly Risk Arb Wrap: Altium, Ansarada, Roland DG, Welbe, Orecorp, Vinda

By David Blennerhassett

HSCEI Index Rebalance: Third Time Unlucky for Zhongsheng (881 HK) As China Unicom (762 HK) In

By Brian Freitas

Unveiling the Shadows: A Deep Dive into Hindenburg Research’s Exposé on Temenos

By Nimish Maheshwari

  • Diving Deep into Hindenburg Research’s comprehensive report on Temenos triggers a market plunge, alleging accounting manipulations, failed North American expansion, product failures, and troubled European deals.
  • Allegations include aggressive revenue recognition, excessive R&D capitalization, difficulty in revenue collection, inflated free cash flow, and executive insiders stock divestment.
  • Temenos denies allegations, defending its business integrity, performance, and financial standing, but market volatility persists, emphasizing the need for transparent communication and governance reassurance.

Index Rebalance & ETF Flow Recap: HSI, Screen Holdings, GMRI, SEA EM, MVIS, SET50, JP Positioning

By Brian Freitas

Cloudflare Inc: Why We See Immense Potential In AI and Vectorize! – Major Drivers

By Baptista Research

  • Cloudflare Inc.’s latest Q4 2023 earnings highlighted several encouraging developments, underscoring a strong quarter of business growth and an upbeat financial performance, even amid prevailing macroeconomic uncertainties.
  • The cloud-based network security company reported total revenues of $362.5 million, a 32% increase year-over-year(YoY).
  • The increase was driven significantly by larger customers, with 66% of revenue coming from this group.

Coherent Corp.: Launch of New WaveShaper Instruments For U- And Super C-Bands & Other Major Developments

By Baptista Research

  • Coherent Corp.’s second quarter fiscal 2024 earnings demonstrated signs of gradual improvement in its financial performance, furthering confidence in its outlook for growth and profitability.
  • They reported solid sequential growth in both revenue and margins.
  • Significant developments from Q2 include increasing gross and operating margins and improving demand across its communications and industrial markets.

Alibaba Group: Revitalization of Taobao and Tmall Group

By Baptista Research

  • Alibaba Group’s latest report for the December Quarter 2023 reflected steady growth despite necessary organizational adjustments.
  • The call highlighted an overall focus on a more aggressive approach towards competition to win growth, reigniting the growth in their two core businesses: e-commerce and cloud computing.
  • The healthy year-over-year Gross Merchandise Volume (GMV) growth in the e-commerce segment is attributed to the effective execution of user-first and competitive pricing strategies in Taobao and Tmall Group (TTG).

Roblox Corporation: Cutting-Edge AI Drives Cost Down! Inside Look at How They’re Revolutionizing Game Infrastructure! – Major Drivers

By Baptista Research

  • Roblox Corporation exhibited a robust performance in the fourth quarter and full year 2023, in line with the outlook projected at their Investor Day.
  • Q4 saw daily active users (DAUs) reaching 71.5 million, a 22% increase, and hours engaged increasing to 15.5 billion hours, a jump of 21% year-on-year.
  • Revenue for Q4 alone stood at $749 million, up 30% year-on-year, with bookings hitting $1.1 billion, a bump of 25% year on year.

Snap Inc: Can Its Optimization Of Machine Learning (ML) Models for Advertising Change The Game? – Major Drivers

By Baptista Research

  • Snap Inc.
  • achieved significant progress in Q4 2023, driven by its strategic focus on growing its community and enhancing user engagement.
  • Monthly active users increased 8% year-over-year, passing the 800 million mark, and daily active users also increased 10% to reach 414 million, which indicates progress towards the company’s goal of 1 billion monthly active users.

Take-Two Interactive Software: The Realization Of The Zynga Acquisition Synergies Is Now Evident & How! – Major Drivers

By Baptista Research

  • Take-Two Interactive Software, Inc.
  • posted robust results for Q3 FY2024, led by robust performances from Grand Theft Auto V, Grand Theft Auto Online, the Red Dead Redemption series, and Zynga’s in-app purchases.
  • Net bookings reached $1.3 billion for the quarter.

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Feb 18
0

Daily Brief Energy/Materials: Crude Oil, Copper, Conocophillips and more

By | Daily Briefs, Energy & Materials Sector

In today’s briefing:

  • Strong Buildup of US Crude Inventory Plays Spoilsport to a Solid Oil Rally
  • Supply Disruptions Drive Copper TC to Three-Year Low; Smelters May Cut Production
  • Mining The Gap For Low Carbon Transition Materials
  • ConocoPhillips: Will The Expansion Of LNG Operations Result In A Solid 2024? – Major Drivers

Strong Buildup of US Crude Inventory Plays Spoilsport to a Solid Oil Rally

By Suhas Reddy

  • OPEC bullish on global oil demand growth, while IEA remains negative as it lowers its forecast from the previous report.
  • US commercial crude inventories see stronger-than-expected buildup as refinery utilisation levels drop.
  • OPEC is optimistic about the world economic growth in 2024 and 2025, increasing growth forecasts compared to the previous report.

Supply Disruptions Drive Copper TC to Three-Year Low; Smelters May Cut Production

By Commodities Focus

  • The copper market has experienced significant changes in the past few months, with supply constraints and increased demand from smelters in China.
  • Major incidents, such as the suspension of production at First Quantum’s Cobra Panama mine, have contributed to a deficit in the market.
  • Treatment and refining charges (TCRCs) have been on a downtrend, reflecting the tight supply and increasing demand, leading to more spot transactions in the market.

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

Mining The Gap For Low Carbon Transition Materials

By The Bid

  • The transition to a low carbon economy, also known as the brown to green transition, involves moving from an economy based on fossil fuels with high carbon emissions to one with lower emissions.
  • This transition will require a significant mobilization of capital, with estimates in the tens of trillions of dollars. Governments and the private sector are providing support and driving the change due to both funding and economic factors.
  • In addition to investing in wind and solar infrastructure, the low carbon transition will require a significant amount of metals and materials. This includes steel, cement, rare earth, aluminum, silver, polysilicon, copper cabling, and more. The transition will create a more materials-intensive global economy.

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

ConocoPhillips: Will The Expansion Of LNG Operations Result In A Solid 2024? – Major Drivers

By Baptista Research

  • In the Fourth Quarter 2023 Earnings, ConocoPhillips maintained a solid execution across all aspects of its investment mandate.
  • The company reported record production, marking itself as an industry leader in reserve replacement.
  • It advanced its global liquified natural gas (LNG) strategy with expansion in Qatar, final investment decision (FID) at Port Arthur, and several offtake and regasification agreements.

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Feb 18
0

Daily Brief Industrials: Renesas Electronics, Acter Co Ltd, Outsourcing Inc, Enphase Energy, nVent Electric , Transdigm Group, Uber Technologies , Emerson Electric Co, Jacobs Solutions , Masco Corp and more

By | Daily Briefs, Industrials

In today’s briefing:

  • Renesas (6723 JP): Two More Strategic Acquisitions
  • Asian Dividend Gems: Acter Co
  • Last Week in Event SPACE: Outsourcing Ltd, MGM China, JSR Corp, Dissentient Blues
  • Enphase Energy: The 4th-Gen Battery Breakthrough You Can’t Miss! – Major Drivers
  • nVent Electric: Growth in the Data Solutions Business & Other Major Drivers
  • TransDigm Group: A Strategic Focus on High IP
  • Uber Technologies: A Tale Of Increasing User Engagement and Frequency! – Major Drivers
  • Emerson Electric Co.: The Digital Transformation Giant! Discover How They’re Leading the Charge in R&D and Revolutionizing Industries! – Major Drivers
  • Jacobs Solutions: Backlog Increase
  • Masco Corporation: Will The Continued Investments in Key Growth Areas Yield Results In 2024? – Major Drivers

Renesas (6723 JP): Two More Strategic Acquisitions

By Scott Foster

  • Renesas has acquired PCB electronic design company Altium and Gallium Nitride power device maker Transphorm. Its tender offer for Sequans Communications has been extended.
  • These are positive developments in our view, but sales and profit margins were down in 4Q of FY Dec-23 and are expected to decline this quarter as well.
  • On the other hand, inventory adjustment is proceeding and the share price has dropped 12.6% since last Tuesday. Buy on weakness for the longer term. 

Asian Dividend Gems: Acter Co

By Douglas Kim

  • Based in Taiwan, Acter Co is capitalizing on its extensive experience of high-end cleanroom integration, recycling and regeneration systems, electromechanical engineering to generate consistent growth in earnings and cash flow.
  • Acter Co’s dividend yield averaged 8.2% from 2019 to 2022. Its annual dividend payout averaged 76% in the same period. Estimated dividend yield is 7% in 2023. 
  • We found Acter Co Ltd (5536 TT) using Smartkarma’s Smart Score Screener system. 

Last Week in Event SPACE: Outsourcing Ltd, MGM China, JSR Corp, Dissentient Blues

By David Blennerhassett

  • Nobody “named” having >5.0% in Outsourcing (2427 JP); no public noise, the stock down; people won’t be fighting for a bump unless the delay and impairment are truly meaningless.
  • Stay long MGM China Holdings (2282 HK) as its FY23 top line surpasses pre-Covid levels.
  • Investors and risk arbitrageurs who are worried about the potential loss of the case to RF SUNY should simply avoid, or sell then avoid JSR Corp (4185 JP) shares.

Enphase Energy: The 4th-Gen Battery Breakthrough You Can’t Miss! – Major Drivers

By Baptista Research

  • Enphase Energy Inc.’s fourth quarter 2023 financial results show a quarterly revenue of $302.6 million, a considerable shipment of 1.6 million microinverters and 80.7 megawatt hours of battery, along with a generation of free cash flow of $15.4 million.
  • The company also achieved a reduction of $147 million in Q4, and met their goal of reducing channel inventory.
  • The quarter saw a 50% gross margin, 29% operating expenses, and 22% operating income.

nVent Electric: Growth in the Data Solutions Business & Other Major Drivers

By Baptista Research

  • Nvent Electric, a professional electrical solutions provider, reported Q4 2023 results with records in sales, margins, earnings, and cash flow proving a strong growth and execution for the full year.
  • With the ongoing trends of electrification, sustainability, and digitalization, the company anticipates strong sales and profit growth for 2024.
  • For Q4, the company witnessed a 16% increase in sales, with 2% organic growth, outperforming the previous year’s results.

TransDigm Group: A Strategic Focus on High IP

By Baptista Research

  • TransDigm Group Incorporated’s first quarter 2024 results beat expectations and they raised their sales and EBITDA guidance for the year.
  • The commercial aerospace market trends remained favorable as the industry continued to recover and progress towards normalization.
  • 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.

Uber Technologies: A Tale Of Increasing User Engagement and Frequency! – Major Drivers

By Baptista Research

  • The Uber Technologies Inc reported a strong Q4, with year-on-year trip growth of 24%, outpacing gross bookings growth for the fourth consecutive quarter.
  • Overall, 2023 was a critical year for Uber, proving its ability to generate strong and profitable growth at scale.
  • The adjusted EBITDA of $1.3 billion exceeded the Q4 outlook with GAAP operating income of $652 million.

Emerson Electric Co.: The Digital Transformation Giant! Discover How They’re Leading the Charge in R&D and Revolutionizing Industries! – Major Drivers

By Baptista Research

  • Emerson Electric Co., a provider of automation solutions for the process and discrete industries, has demonstrated strong first-quarter financial results for 2024, outpacing expectations.
  • Positive operating leverage, robust demand in process and hybrid markets, CapEx budgets, and continued execution by the team are primary contributors to their quarterly performance.
  • Gross margins and adjusted EBITDA expansion from 2021 are reflective of the company’s ability to create value.

Jacobs Solutions: Backlog Increase

By Baptista Research

  • The Jacobs Fiscal First Quarter 2024 earnings demonstrated several positive and negative aspects for investors to consider.
  • Jacobs CEO, Bob Pragada, and CFO, Claudia Jaramillo, illustrated their company’s exceptional resilience in face of challenging conditions, delivering better-than-expected underlying performance.
  • 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.

Masco Corporation: Will The Continued Investments in Key Growth Areas Yield Results In 2024? – Major Drivers

By Baptista Research

  • Masco Corporation delivered robust fourth quarter results despite some softening in the home improvement and DIY market, signaling the company’s ability to successfully navigate changing market conditions.
  • Faced with overall market softening and a 2% decline in top-line results, the company turned to pricing disciplines, cost reductions, and operational efficiencies to improve margins.
  • Contrary to the volume decrease, Masco reported an increase in operating profit by $38 million owing to an improved price/commodity relationship and efficiency efforts throughout its operations.

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