Smartkarma Daily Briefs

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

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

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

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

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

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

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

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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Feb 18

Daily Brief Health Care: Jacobio Pharmaceuticals, Dexcom Inc, Asahi Intecc, Mettler Toledo International Inc, Waters Corp, Zimmer Biomet Holdings, Mckesson Corp and more

By Smartkarma Daily Briefs | Daily Briefs, Healthcare

In today’s briefing:

China Healthcare Weekly (Feb16)-Innovative Drug Is “Innocent” In Geopolitics, BeiGene’s BTK, Jacobio
DexCom Inc: Solid Market Penetration in Basal and Hypo Non-insulin markets & International Expansion Is Catalyzing Future Growth! – Major Drivers
2024 High Conviction Update: Asahi Intecc (7747 JP)- Strong H1 Performance; FY24 Guidance Reaffirmed
Mettler-Toledo International: Is The China Market Recovery Saving The Day? – Major Drivers
Waters Corporation: How Long Will The Upside From The Continuation of High-Level Trends and Geographical Growth Last? – Major Drivers
Zimmer Biomet Holdings: Can It Maintain Its Robust Competitive Position In Orthopedics? – Major Drivers
McKesson Corporation: Anticipated Revenue Growth in Medical-Surgical Solutions Could Propel Them Forward! – Major Drivers

China Healthcare Weekly (Feb16)-Innovative Drug Is “Innocent” In Geopolitics, BeiGene’s BTK, Jacobio

By Xinyao (Criss) Wang

Due to the US Draft Bill against CXOs, stock prices of the entire pharmaceutical industry plummeted. But in reality, there’s no impact on innovative drugs, which is just “emotional suppression”.
The future BTK inhibitors market pattern predicted by GlobalData is very close to our estimate. This actually indirectly verifies the peak sales level that BeiGene may reach in the future.
Setbacks on KRAS/SHP2 projects discourage investors’ confidence on Jacobio. We wouldn’t recommend projecting too high expectations on BET inhibitor just yet. Share price performance could continue to be under pressure.

DexCom Inc: Solid Market Penetration in Basal and Hypo Non-insulin markets & International Expansion Is Catalyzing Future Growth! – Major Drivers

DexCom Inc., a medical device company focused on the design, development and delivery, presented its recorded Fourth quarter and Fiscal year 2023 earnings call.
According to the call, the organization’s robust growth momentum has pivoted it towards notable accomplishments.
The company reported that total revenue grew by 24% on an organic basis, implying a boon of over $700 million of organic revenue compared to the preceding year.

2024 High Conviction Update: Asahi Intecc (7747 JP)- Strong H1 Performance; FY24 Guidance Reaffirmed

By Tina Banerjee

Asahi Intecc (7747 JP) announced better-than-expected result in H1FY24, with double-digit growth across all major parameters. Growth was driven by favorable Fx, recovery and expansion of cases, and strong demand.
Revenue from medical division increased 22% YoY to ¥48B. Operating income of the medical division increased 52% YoY to ¥13B, representing 540bps YoY margin expansion to 27.3%.
Asahi Intecc has not revised FY24 guidance as it is difficult to forecast currency movements and revenue from distributors in medical division due to volatility of quarterly transactions.

Mettler-Toledo International: Is The China Market Recovery Saving The Day? – Major Drivers

The fourth quarter 2023 results posted by Mettler-Toledo, a Swiss precision instruments company, were significantly impacted by a transition to a new external European logistics service provider.
The company confides in making up for the majority of the lost revenue in Q1 2024.
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.

Waters Corporation: How Long Will The Upside From The Continuation of High-Level Trends and Geographical Growth Last? – Major Drivers

In terms of positive outcomes, Waters Corporation reported another transformative year, demonstrating its resilience and ability to adapt effectively amidst a backdrop of dynamic market conditions.
Various innovative products were launched throughout the year, such as the Alliance is next-generation LC platform, building on the successful top line growth delivered in previous years.
The integration of Wyatt Technology into its portfolio represents a strategic move, bringing with it a new avenue for value creation for shareholders and opening up access to high growth markets.

Zimmer Biomet Holdings: Can It Maintain Its Robust Competitive Position In Orthopedics? – Major Drivers

Zimmer Biomet, a leading player in the medical devices industry, presented its fourth quarter 2023 earnings with a buoyant attitude, displaying solid evidence of robust financial performance and operational progress.
Impressively, the firm underscored the notable growth in its constant currency revenue, which appreciated 7.5%, with adjusted earnings per share (EPS) escalating almost 9.5% over the year.
Also noteworthy was the almost $1 billion in free cash flow generated during the period, even amid fluctuations in inventory management.

McKesson Corporation: Anticipated Revenue Growth in Medical-Surgical Solutions Could Propel Them Forward! – Major Drivers

McKesson Corporation, a diversified health care services company, reported robust fiscal third-quarter earnings during their recent earnings call.
The business continues to show momentum with total revenues of $80.9 billion and adjusted earnings per diluted share of $7.74 exhibiting a double-digit growth year over year.
This strong financial performance has been the result of a focused execution against the company’s long-term priorities.

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Feb 18

Daily Brief Financials: HSBC Holdings, MS&AD Insurance, Bitcoin, Intercontinental Exchange and more

By Smartkarma Daily Briefs | Daily Briefs, Financials

In today’s briefing:

Hang Seng Index (HSI) Rebalance: Idling at 82 Members; 100 Members in 2025 at the Earliest
[Japan Governance] FSA Urges Japan Non-Life Insurers to Eliminate Cross-Holdings – Sales Coming
Edward Woodford: Driving Crypto Adoption – [Making Markets, EP.17]
Intercontinental Exchange Inc. (ICE): Growing the Mortgage Technology Sector with Black Knight Acquisition – Major Drivers

Hang Seng Index (HSI) Rebalance: Idling at 82 Members; 100 Members in 2025 at the Earliest

In a surprise, the Hang Seng index committee has decided not to make any constituent changes to the Hang Seng Index (HSI INDEX) at the March rebalance.
We now see the index reaching its 100-member target in 2025 at the earliest, though we would not be surprised to see it spill into 2026 as well.
Free float and capping changes will result in one-way turnover of 1.2% resulting in a round trip trade of HK$4.54bn. HSBC Holdings (5 HK) is the biggest sell.

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

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.

Edward Woodford: Driving Crypto Adoption – [Making Markets, EP.17]

By Web3 Breakdowns

Investment firms are using ten east to diversify their personal portfolios.
Zero Hash is a software company that allows businesses to launch crypto products quickly and compliantly.
Zero Hash provides infrastructure for businesses to embed digital assets within their own infrastructure, serving as a regulated entity.

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

Intercontinental Exchange Inc. (ICE): Growing the Mortgage Technology Sector with Black Knight Acquisition – Major Drivers

Intercontinental Exchange Inc.
(ICE) delivered strong financial results for the fourth quarter of 2023, posting a record net revenue of $2.2 billion, representing a 7% increase compared to the same period last year.
The record figures were driven by lower compensation expense and accelerated expense synergies which led to earnings per share of $1.33, up 6% year-on-year.

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Feb 18

Daily Brief Consumer: Snow Peak Inc, Toei Animation, Lear Corp, Yum! Brands Inc, Cvs Health Corp, O’Reilly Automotive, Philip Morris International, Omnicom Group, The Walt Disney Co, Expedia Group, Inc. and more

By Smartkarma Daily Briefs | Consumer, Daily Briefs

In today’s briefing:

Snow Peak (7816) – Nikkei Says Bain to Launch ¥50bn MBO
Weekly Deals Digest (18 Feb) – Toei, Outsourcing, YSK, Altium, Ansarada, China TCM, Vinda
Lear Corporation: These 7 Drivers Are Pushing The Company Forward In 2024! – Financial Forecasts
Yum! Brands Inc: Bold Restaurant Development Growth & Other Major Drivers
CVS Health Corporation: Integration Of Acquired Businesses
O’Reilly Automotive: Expansion into Canada With Groupe Del Vasto Acquisition & Other Major Drivers
Philip Morris International: Acquisition of Swedish Match
Omnicom Group: A Strong Positioning with Transformation in the Client Landscape! – Major Drivers
The Walt Disney Company: ESPN’s Digital Transformation Is A Huge Strategic Pivot – Other Major Drivers
Expedia Group: Boosting European Travel with New Partnerships! – Major Drivers

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

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.

Weekly Deals Digest (18 Feb) – Toei, Outsourcing, YSK, Altium, Ansarada, China TCM, Vinda

By Arun George

A weekly summary of key developments across ECM and Event-Driven names tracked by us across Hong Kong, Australia, New Zealand, Singapore, Japan, Indonesia, Malaysia, Thailand, Korea, India and Chinese ADRs.
ECM developments: Toei Animation (4816 JP)‘s US$550 Million secondary offering.
Event-Driven developments: Outsourcing Inc (2427 JP), Altium Ltd (ALU AU), Ansarada Group Ltd (AND AU), China Traditional Chinese Medicine (570 HK), Vinda International (3331 HK).

Lear Corporation: These 7 Drivers Are Pushing The Company Forward In 2024! – Financial Forecasts

Lear Corporation achieved record revenue in 2023, reaching $23.5 billion, a 12% increase from 2022.
The significant growth in core operating earnings by 29% to $1.1 billion and the 38% increase in adjusted earnings per share to $12.02 highlight the company’s strong financial performance.
Additionally, its operating cash flow improved by 22% to over $1.2 billion, and free cash flow conversion exceeded the target of 80%.

Yum! Brands Inc: Bold Restaurant Development Growth & Other Major Drivers

Yum!
Brands delivered impressive performances across its various business units, despite geopolitical tensions and socio-economic hurdles worldwide.
The company crossed the $60 billion system sales threshold and surpassed all aspects of its long-term growth algorithm, setting an industry benchmark for the third consecutive year.

CVS Health Corporation: Integration Of Acquired Businesses

Analyzing the latest earnings call transcript of CVS Health, it becomes evident that the company has managed to successfully navigate through a challenging environment and deliver on its financial commitments, underscoring the strength of its diversified business model.
Baptista Research looks to evaluate the different factors that could influence the company’s price in the near future and attempts to carry out an independent valuation of the company using a Discounted Cash Flow (DCF) methodology.
In this report, we have carried out a fundamental analysis of the historical financial statements of the company.

O’Reilly Automotive: Expansion into Canada With Groupe Del Vasto Acquisition & Other Major Drivers

O’Reilly Automotive, Inc.
achieved robust results in their fourth quarter and full-year 2023 results, displaying steadfast growth and capitalizing on industry trends.
Third-quarter comparable store sales increase contributed to a 7.9% increase for the full year of 2023, which was at the high end of their revised guidance range provided in the last quarter’s earnings call.

Philip Morris International: Acquisition of Swedish Match

Philip Morris International (PMI), the world’s largest tobacco company, delivered a strong operating performance in 2023, marking its third consecutive year of positive volumes and high single-digit organic top-line growth propelled by smoke-free products.
The smoke-free products, particularly the IQOS business and ZYN, mitigated significant drag from traditional combustibles, underlining PMI’s strategic shift towards less harmful alternatives to traditional cigarettes.
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.

Omnicom Group: A Strong Positioning with Transformation in the Client Landscape! – Major Drivers

Omnicom Group has achieved its 2023 goals despite a difficult macroeconomic environment, setting a solid foundation to enter 2024 from a position of strength.
Notably, the company generated a free cash flow of approximately $1.9 billion in 2023 and returned $1.1 billion to shareholders through dividends and share repurchases.
The M&A activity including the acquisition of Flywheel Digital, the largest one in Omnicom’s history, is especially promising for the future growth of the company.

The Walt Disney Company: ESPN’s Digital Transformation Is A Huge Strategic Pivot – Other Major Drivers

The Walt Disney Company reported a strong performance in the first quarter of 2024.
Disney’s CEO, Bob Iger, and the company’s CFO, Hugh Johnston, discussed their strategic focus on transitioning ESPN into a leading digital sports platform, developing streaming into a profit-generating business, reviving film studios, and enhancing growth in parks and experiences.
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.

Expedia Group: Boosting European Travel with New Partnerships! – Major Drivers

Expedia Group’s Q4 2023 financial results revealed a solid year of performance with the company meeting its guidance despite significant changes and unpredictability.
A key highlight was the strong revenue and EBITDA performance, with lodging business recording another record quarter in hotel gross bookings, growing 13% YoY. There was, however, some softness in gross bookings primarily driven by air, which was largely due to a reduction in average ticket prices.
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.

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Feb 18

Daily Brief ESG: Higher ROE & ROA Are Keys to Higher Valuation and more

By Smartkarma Daily Briefs | Daily Briefs, ESG

In today’s briefing:

Higher ROE & ROA Are Keys to Higher Valuation, but This Wasn’t Easy for Companies with Low Valuation

Higher ROE & ROA Are Keys to Higher Valuation, but This Wasn’t Easy for Companies with Low Valuation

By Aki Matsumoto

Over the past year, Tobin’s Q increased slightly for listed companies as a whole; companies that increased their ROE and ROA increased their Tobin’s Q. vice versa.
Companies that originally had high stock valuations and high ROE and ROA increased their valuations by becoming more profitable. Raising ROE and ROA is the key to higher valuations.
For companies with low valuations, it wasn’t easy to raise ROE and ROA solely at TSE’s request. Some of companies whose stock valuations have fallen will go private through MBOs.

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Feb 18

Daily Brief Thematic (Sector/Industry): Japan Weekly | Rakuten and more

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

In today’s briefing:

Japan Weekly | Rakuten, Asics, Ebara, Tokyo Electron Chalk up Big Gains
Lots More on What Earnings Are Telling Us About Prices Now

Japan Weekly | Rakuten, Asics, Ebara, Tokyo Electron Chalk up Big Gains

By Mark Chadwick

The Nikkei hasn’t been this high since the Berlin Wall came toppling down. The Nikkei was up over 4% on the week and stands 15% higher YTD.
There were plenty of reasons not to be higher. US stocks closed marginally lower; AI stocks like SMCI crashed on Friday;
Japanese stocks were higher but that hides significant divergence between the winners and losers after a heavy week of earnings releases. Perhaps a pause for breath next week.

Lots More on What Earnings Are Telling Us About Prices Now

By Odd Lots

The podcast hosts discuss various topics, including their interests and the future of artificial intelligence.
They mention that earnings season is currently underway, with companies implementing layoffs to boost profit margins.
While layoffs receive a lot of attention in the headlines, the hosts note that the labor market data overall looks positive.

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

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Feb 18

Daily Brief ECM: Weekly Deals Digest (18 Feb) – Toei and more

By Smartkarma Daily Briefs | Daily Briefs, ECM

In today’s briefing:

Weekly Deals Digest (18 Feb) – Toei, Outsourcing, YSK, Altium, Ansarada, China TCM, Vinda

Weekly Deals Digest (18 Feb) – Toei, Outsourcing, YSK, Altium, Ansarada, China TCM, Vinda

By Arun George

A weekly summary of key developments across ECM and Event-Driven names tracked by us across Hong Kong, Australia, New Zealand, Singapore, Japan, Indonesia, Malaysia, Thailand, Korea, India and Chinese ADRs.
ECM developments: Toei Animation (4816 JP)‘s US$550 Million secondary offering.
Event-Driven developments: Outsourcing Inc (2427 JP), Altium Ltd (ALU AU), Ansarada Group Ltd (AND AU), China Traditional Chinese Medicine (570 HK), Vinda International (3331 HK).

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Feb 18

Daily Brief Event-Driven: Hang Seng Index (HSI) Rebalance: Idling at 82 Members; 100 Members in 2025 at the Earliest and more

By Smartkarma Daily Briefs | Daily Briefs, Event-Driven

In today’s briefing:

Hang Seng Index (HSI) Rebalance: Idling at 82 Members; 100 Members in 2025 at the Earliest
Snow Peak (7816) – Nikkei Says Bain to Launch ¥50bn MBO
[Japan Governance] FSA Urges Japan Non-Life Insurers to Eliminate Cross-Holdings – Sales Coming
(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
Index Rebalance & ETF Flow Recap: HSI, Screen Holdings, GMRI, SEA EM, MVIS, SET50, JP Positioning
Last Week in Event SPACE: Outsourcing Ltd, MGM China, JSR Corp, Dissentient Blues

Hang Seng Index (HSI) Rebalance: Idling at 82 Members; 100 Members in 2025 at the Earliest

In a surprise, the Hang Seng index committee has decided not to make any constituent changes to the Hang Seng Index (HSI INDEX) at the March rebalance.
We now see the index reaching its 100-member target in 2025 at the earliest, though we would not be surprised to see it spill into 2026 as well.
Free float and capping changes will result in one-way turnover of 1.2% resulting in a round trip trade of HK$4.54bn. HSBC Holdings (5 HK) is the biggest sell.

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

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.

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

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.

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

I tally 53 – mostly firm, mostly Asia-Pac – transactions currently being discussed and analysed on Smartkarma. Inside is a timetable of upcoming key events for each deal.
Four new deals discussed this week on Smartkarma: Altium Ltd (ALU AU), Ansarada Group Ltd (AND AU), Roland DG Corp (6789 JP), and Welbe Inc (6556 JP).
Key updates took place on JSR Corp (4185 JP) and Outsourcing Inc (2427 JP)

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

After narrowly avoiding deletion at the last two index reviews, Zhongsheng Group will be deleted from the HSCEI INDEX in March and replaced with China Unicom (762 HK).
Zhongsheng Group (881 HK) is down 25% for the year while China Unicom Hong Kong (762 HK) is up 10%.
There appears to be positioning on both stocks though the increase in shorts and jump in cumulative excess volume on Zhongsheng Group (881 HK) point to higher positioning.

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

There were index review announcements for the HSI, HSCEI INDEX, HSTECH, HSCI, HSIII and some global indices last week.
There are a bunch of review cutoffs early in the coming week followed by announcements for the STAR50 INDEX and STAR100 Index later in the week.
Another week of outflows for Tracker Fund of Hong Kong (2800 HK) and Hang Seng H Share ETF (2828 HK) as inflows to iShares Emerging Markets ex-China (EMXC US) continue.

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

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.

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Feb 18

Daily Brief Equity Bottom-Up: Renesas (6723 JP): Two More Strategic Acquisitions and more

By Smartkarma Daily Briefs | Daily Briefs, Equity Bottom-Up

In today’s briefing:

Renesas (6723 JP): Two More Strategic Acquisitions
Asian Dividend Gems: Acter Co
Unveiling the Shadows: A Deep Dive into Hindenburg Research’s Exposé on Temenos
China Healthcare Weekly (Feb16)-Innovative Drug Is “Innocent” In Geopolitics, BeiGene’s BTK, Jacobio
Cloudflare Inc: Why We See Immense Potential In AI and Vectorize! – Major Drivers
Alibaba Group: Revitalization of Taobao and Tmall Group
Coherent Corp.: Launch of New WaveShaper Instruments For U- And Super C-Bands & Other Major Developments
Enphase Energy: The 4th-Gen Battery Breakthrough You Can’t Miss! – Major Drivers
CVS Health Corporation: Integration Of Acquired Businesses
Lear Corporation: These 7 Drivers Are Pushing The Company Forward In 2024! – Financial Forecasts

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.

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.

China Healthcare Weekly (Feb16)-Innovative Drug Is “Innocent” In Geopolitics, BeiGene’s BTK, Jacobio

By Xinyao (Criss) Wang

Due to the US Draft Bill against CXOs, stock prices of the entire pharmaceutical industry plummeted. But in reality, there’s no impact on innovative drugs, which is just “emotional suppression”.
The future BTK inhibitors market pattern predicted by GlobalData is very close to our estimate. This actually indirectly verifies the peak sales level that BeiGene may reach in the future.
Setbacks on KRAS/SHP2 projects discourage investors’ confidence on Jacobio. We wouldn’t recommend projecting too high expectations on BET inhibitor just yet. Share price performance could continue to be under pressure.

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

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.

Alibaba Group: Revitalization of Taobao and Tmall Group

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).

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

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.

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

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.

CVS Health Corporation: Integration Of Acquired Businesses

Analyzing the latest earnings call transcript of CVS Health, it becomes evident that the company has managed to successfully navigate through a challenging environment and deliver on its financial commitments, underscoring the strength of its diversified business model.
Baptista Research looks to evaluate the different factors that could influence the company’s price in the near future and attempts to carry out an independent valuation of the company using a Discounted Cash Flow (DCF) methodology.
In this report, we have carried out a fundamental analysis of the historical financial statements of the company.

Lear Corporation: These 7 Drivers Are Pushing The Company Forward In 2024! – Financial Forecasts

Lear Corporation achieved record revenue in 2023, reaching $23.5 billion, a 12% increase from 2022.
The significant growth in core operating earnings by 29% to $1.1 billion and the 38% increase in adjusted earnings per share to $12.02 highlight the company’s strong financial performance.
Additionally, its operating cash flow improved by 22% to over $1.2 billion, and free cash flow conversion exceeded the target of 80%.

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Feb 18

Daily Brief Australia: Altium Ltd and more

By Smartkarma Daily Briefs | Australia, Daily Briefs

In today’s briefing:

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

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