Smartkarma Daily Briefs

12 days ago, JSR Corp (4185 JP) announced that former research collaboration partner Research Foundation of the State University of New York had sued in an intellectual property ownership dispute.
I wrote about it here to the extent I could. Since then, more information has become available, or available to me. Some details on the case. Some on lawyers.
Since then JSR has reported earnings with unchanged forecast, and major pure play comp Tokyo Ohka Kogyo (4186 JP) today reported earnings; the stock popped 10+% to an all-time high.

S&P/ASX Index Rebalance Preview: Newmont Still Has Nearly A$1bn to Sell

With two days left in the review period, there could be 28 adds/deletes across the S&P/ASX family of indices in March.
There is nearly A$1bn to sell in Newmont (NEM AU) due to the potential S&P/ASX 20 Index deletion and a large decrease in the number of shares held in Australia.
There could be 2-41 days of ADV to buy in the index inclusions while the impact on the deletions will range between 0.7-24 days of ADV.

Quiddity Leaderboard CSI 300/500 Jun 24: SHORT CSI 300 Direct DELs Vs the Index

By Janaghan Jeyakumar, CFA

CSI 300 represents the 300 largest stocks by market capitalization and liquidity from the entire universe of Shanghai and Shenzhen Stock Exchanges. CSI 500 represents the next largest 500 names.
In this insight, we take a look at the potential ADDs/DELs for the CSI 300 and CSI 500 rebalance in June 2024.
I currently see 11 changes for the CSI 300 index and 50 changes for the CSI 500 index.

Valeura Energy (TSX: VLE): Wassana: Strong Performance and Accelerated Drilling Programme.

By Auctus Advisors

The first two wells of the Wassana drilling programme have exceeded the company’s expectations with production from the field now over 4,000 bbl/d.
With a third well expected to boost production further in the next few days, production from the field could be higher than the target of 4.5 mbbl/d.
The company has decided to extend the current drilling programme at Wassana by adding two wells (from 3 to 5).

Ball Corporation: A Story Of Market Dominance & Adaptive Approach! – Major Drivers

By Baptista Research

The Ball Corporation’s earnings for the fourth quarter highlighted several of its strategic decisions, performance outcomes, and upcoming developments.
The company had strong operating results in the fourth quarter and throughout 2023 which generated a free cash flow of $818 million.
The company’s strategic decisions ranged from the sale of its aerospace business to adjustments in its manufacturing footprint.

KEFI Gold and Copper – Counting down to launch in H124

By Edison Investment Research

In its post-Indaba release of 13 February, KEFI announced that the multi-party, subsidiary-level financing of its Tulu Kapi gold project in Ethiopia is now advancing on the back of Ethiopian federal government commitments finally received in October 2023. As a result, the lead lender quickly processed its approval in December 2023 and now all other stakeholders are triggering their respective flow-on processes. At the same time, the Federal Government of Ethiopia has confirmed that its equity capital investment has been fully documented, committed and already partly invested, while the contractors to the project have reaffirmed their intention and readiness to enter into the already drafted agreements to enable full project launch in H124 (as previously indicated by KEFI).

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Feb 15

Daily Brief Health Care: Beijing Yuanxin Technology Group Co Ltd, CSL Ltd and more

By Smartkarma Daily Briefs | Daily Briefs, Healthcare

In today’s briefing:

Pre-IPO Beijing Yuanxin Technology Group (PHIP Update) – Risk of Overvaluation and Poor Profit Model
CSL Ltd (CSL AU): Double-Digit Sales and Profit Growth in H1FY24 Led by Immunoglobulin Franchise

Pre-IPO Beijing Yuanxin Technology Group (PHIP Update) – Risk of Overvaluation and Poor Profit Model

By Xinyao (Criss) Wang

The essence of Yuanxin’s business is selling drugs.Although Yuanxin is backed by Tencent, it’s difficult to come up with more outstanding advantages to compete with Alibaba Health and JD Health.
We have doubts about Yuanxin’s core competitiveness and sustainable profitability, which are also far behind its peers. In our view, the market/investors may find it difficult to accept such stories.
Pre-IPO valuation level of Yuanxin has greatly exceeded the valuation of its drugstore business model. Yuanxin’s valuation should be lower than peers, or for example, P/S ratio of below 1x.

CSL Ltd (CSL AU): Double-Digit Sales and Profit Growth in H1FY24 Led by Immunoglobulin Franchise

By Tina Banerjee

CSL Ltd (CSL AU) has reported strong financial performance in H1FY24, with revenue and net profit growing 11% and 20%, YoY, respectively. Growth was mainly driven by immunoglobulins franchise.
CSL reaffirmed FY24 guidance. Revenue growth is anticipated to be 9–11% YoY at constant currency. NPATA is anticipated to be $2.9–3.0B at constant currency, up 13–17% YoY.
The company is confident to deliver double-digit earnings growth over the medium term, citing strong demand for immunoglobulins and successful initiatives in plasma collections that are enhancing efficiencies.

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Feb 15

Daily Brief Industrials: Outsourcing Inc, Stylam Industries, Octillion Energy Holdings, Selecta AG, S&P 500 INDEX, Sanyo Trading and more

By Smartkarma Daily Briefs | Daily Briefs, Industrials

In today’s briefing:

Outsourcing (2427) – Earnings Delay Causes Consternation
Outsourcing (2427 JP): Keep Calm or Worry About the Earnings Delay?
Stylam Industries (SYIL IN) 3QFY24: Concall Highlights, Margin Expansion
Octillion Energy Holdings Pre-IPO – Over-Reliance on Top Customer and Lack of Competitive Edge
Selecta – ESG Report – Lucror Analytics
S&P 500 and Nasdaq 100 Testing 20-Day MAs; 10-Yr Treasury Yield Testing Critical 4.35% Resistance
Sanyo Trading (3176) – Aiming for Growth and a Strong Start to FY9/24

Outsourcing (2427) – Earnings Delay Causes Consternation

Originally, the MBO for Outsourcing Inc (2427 JP) was expected to get launched end-January 2024. A late-ish filing with regard to the EU’s Foreign Subsidies Regulation regime prompted a delay.
Yesterday Outsourcing announced a delay its earnings release by 3 business days, the delay “procedures related to impairment losses are continuing.”
Outsourcing shares are down hard on this. -1.5% as I write. I examine.

Outsourcing (2427 JP): Keep Calm or Worry About the Earnings Delay?

Outsourcing Inc (2427 JP) has delayed the announcement of its 4QFY2023 results from 14 to 19 February as the impairment loss accounting is yet to be completed.
Outsourcing has a history of impairments, resulting in missed forecasts, which suggests a weak 4Q. The concern is that a weak 4Q could force Bain to trim its JPY1,755 offer.
Persol Holdings (2181 JP) guidance cut today suggests a weak 4Q reflects near-term industry weakness rather than company-specific issues. The weak 4Q is a valuable cover to justify the less-than-stellar offer.

Stylam Industries (SYIL IN) 3QFY24: Concall Highlights, Margin Expansion

By Sameer Taneja

Stylam Industries (SYIL IN) reported its best-ever EBITDA margin of 22.3% Vs 16.8% due to a raw material price decline. Revenues continued to remain soft, with growth of -8% YoY.
The company completed its brownfield expansion to increase the plant capacity by 40% and is now embarking on a capacity expansion of 200 crores in FY25, effectively doubling its revenues.
Stylam Industries (SYIL IN) trades at 22x/19x FY24e/25e, with a potential for doubling of revenues over the next 3-5 years.

Octillion Energy Holdings Pre-IPO – Over-Reliance on Top Customer and Lack of Competitive Edge

By Ethan Aw

Octillion Energy Holdings (OE HK) is looking to raise US$400m in its upcoming Hong Kong IPO.
Octillion’s main revenue driver has been its EV battery systems with battery cells over the track record period, with a healthy balance sheet to support its cash burn.
However, its revenue growth fell off a cliff in 1H23 due to its heavy reliance on a single customer, which doesn’t appear sustainable, in our view.

Selecta – ESG Report – Lucror Analytics

By Leonard Law, CFA

Lucror Analytics’ ESG Scores are based on a 3-tiered scale and are adjusted for Controversies (if applicable).
We view Selecta’s ESG as “Adequate”, in line with the Environmental and Governance scores, while the Social pillar is “Weak”. Controversies are “Immaterial” and Disclosure is “Adequate”.
Selecta claims to be the leader in the European vending machine market. The company operates vending and coffee machines in workplaces, public areas (e.g. hospitals, universities, train stations, airports and petrol stations) and entertainment venues.

S&P 500 and Nasdaq 100 Testing 20-Day MAs; 10-Yr Treasury Yield Testing Critical 4.35% Resistance

By Joe Jasper

Large-Cap indexes (S&P 500, Nasdaq 100) remain bullish, finding support at their respective 20-day MAs since November 2023, and we remain bullish
The question is whether that will continue to be the case. Concerns are rising Treasury yields and the U.S. dollar (DXY), which have broken above short-term resistance levels on Feb13
Friday’s PPI report should provide more clarity as to how concerned we should be about rising inflation

Sanyo Trading (3176) – Aiming for Growth and a Strong Start to FY9/24

By Astris Advisory Japan

Q1 FY9/24 results were at a record high for the company for a first quarter period, with the company benefitting from stronger-than-expected demand from the auto sector, together with a forex tailwind from a weak Japanese yen benefitting the Overseas Subsidiaries segment; this business saw a major uplift in profitability YoY with positive trading conditions in the Americas and Thailand for exported Japanese goods.
Demand also remained firm in the company’s specialist areas of expertise such as bio-related and feed-related areas, and geothermal equipment.
The company has maintained FY9/24 guidance, which indicates some expectations of auto demand normalizing from pronounced levels in Q1 FY9/24.

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Feb 15

Daily Brief TMT/Internet: Altium Ltd, Freee KK, Daktronics Inc, Bharti Hexacom and more

By Smartkarma Daily Briefs | Daily Briefs, TMT/Internet

In today’s briefing:

Renesas (6723 JP) To Acquire Altium (ALU AU) In a A$9.1bn Deal
Freee: New Invoicing System Helps Onboard Corporate Clients Though Losses Widen
Daktronics Inc (DAKT) – Wednesday, Nov 15, 2023
Bharti Hexacom Pre-IPO – The Negatives – No Clear Rationale for Listing

Renesas (6723 JP) To Acquire Altium (ALU AU) In a A$9.1bn Deal

By Shifara Samsudeen, ACMA, CGMA

Renesas Electronics (6723 JP) has entered a Scheme Implementation Agreement to acquire Altium Ltd (ALU AU) at A$68.5/share implying an equity value of A$9.1bn and an Enterprise Value of A$8.8bn.
The offer price is a 33.6% premium to the last close and a larger premium to VWAPs ranging from 30 days to 180 days.
There will be ad hoc inclusions to the S&P/ASX 100 Index and the S&P/ASX 200 (AS51 INDEX) on Altium Ltd (ALU AU)‘s last trading day (expected second half of 2024).

Freee: New Invoicing System Helps Onboard Corporate Clients Though Losses Widen

Freee KK (4478 JP) reported 2QFY06/2024 results today. 2Q revenue increased 35.1% YoY, however, both revenue and operating losses fell below consensus estimates.
As expected, upfront investment in selling and marketing and personnel expenses prior to the new invoicing system led to an increase in operating losses.
However, these investments have helped the company acquire a large no. of corporate paying users and we expect losses to decline going forward.

Daktronics Inc (DAKT) – Wednesday, Nov 15, 2023

Key points (machine generated)

Daktronics Inc has improved its financial profile through operational upgrades and a recapitalization.
As the industry standard in large screens and a market leader in scoreboards and programmable display solutions, Daktronics is in a strong position to benefit from increased adoption and upgrade cycles.
Despite a recent stock price increase, investing in Daktronics is currently seen as very attractive, with potential for over 100% upside in the next few quarters.

This article is sourced from an online content aggregator through publicly available sources and is displayed below for general informational purposes only. This article was originally published 3 months ago on Value Investors Club.

Bharti Hexacom Pre-IPO – The Negatives – No Clear Rationale for Listing

Bharti Hexacom is looking to raise up to US$1bn in its upcoming India IPO.
Bharti Hexacom (BH) is a communications solutions provider offering consumer mobile services, fixed-line telephone and broadband services to customers in the Rajasthan and the North East telecommunication circles in India.
In this note, we talk about the not-so-positive aspects of the deal.

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Feb 15

Daily Brief Financials: KB Financial, Ethereum, SBI Cards & Payment Services, The Diverse Income Trust PLC and more

By Smartkarma Daily Briefs | Daily Briefs, Financials

In today’s briefing:

KB Financial Placement – Momentum Has Been Strong and the Last Clean-Up Sale Has Done Well
Carlyle Group Selling More than 320 Billion Won Worth of KB Financial in a Block Deal Sale
Keone Hon of Monad: 10,000 TPS & Full EVM Equivalence – A New Era for Ethereum Apps
Fundamental Shorts – SBI Cards | PVR Inox | Escorts Kubota
Diverse Income Trust (The) – Manager anticipates a small-cap super cycle

KB Financial Placement – Momentum Has Been Strong and the Last Clean-Up Sale Has Done Well

By Clarence Chu

The Carlyle Group / (CG US) via Kingsman Investment, is looking to raise US$244m from selling its entire stake in KB Financial (105560 KS).
Carlyle has been invested in the firm since mid-2020, where it then expressed that it would hold on to its stake for at least three and a half years.
The deal would be a small one to digest at just 3.8 days of KB Financial’s three month ADV, representing 1.2% of its current mcap.

Carlyle Group Selling More than 320 Billion Won Worth of KB Financial in a Block Deal Sale

By Douglas Kim

After the market close on 14 February, KB Financial announced that The Carlyle Group is trying to sell a 1.2% stake in the company through a block deal sale.
The expected block deal price range is 64,608 won to 65,954 won per share, representing a 2 to 4% discount to the closing price of 67,300 won on 14 February.
We would pass on this block deal sale. Despite excellent gains so far YTD, there is looming risk of many investors that may bail out of KB Financial post ex-dividend.

Keone Hon of Monad: 10,000 TPS & Full EVM Equivalence – A New Era for Ethereum Apps

By The Delphi Podcast

High frequency trading (HFT) involves building systems that can react in real time to incoming packets from exchanges, making fast decisions about sending orders and quickly executing them.
Working on HFT systems requires a focus on performance and often involves building systems from scratch.
HFT systems need to be scalable to handle trading multiple instruments and flexible enough to adapt to different market conditions. Models used in trading also need to be continuously retrained and optimized for speed without sacrificing accuracy.

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

Fundamental Shorts – SBI Cards | PVR Inox | Escorts Kubota

By Pranav Bhavsar

We screen our coverage universe for earnings disappointments, EPS downgrades, and management narratives to identify fundamental shorts.
Stocks in focus include SBI Cards & Payment Services (SBICARD IN) , Pvr Inox (PVRINOX IN), and Escorts Kubota Limited (ESCORTS IN).
Credit Cost for SBI is expected to remain elevated, PVR management seems to be misreading consumer preferences, and Macro uncertainties cloud ESCORTS.

Diverse Income Trust (The) – Manager anticipates a small-cap super cycle

By Edison Investment Research

The Diverse Income Trust’s (DIVI’s) managers Gervais Williams and Martin Turner focus on generating a dividend income stream that is more resilient and has the potential to grow faster than those of the trust’s peers. They believe that over time this strategy should lead to superior capital appreciation as well as income growth. Since launch in 2011, DIVI’s dividend has compounded at an average annual rate of around 6%. UK stocks have been out of favour with global investors, who now make up around two-thirds of the UK shareholder base compared with 17% in 1994. As a result, the UK market looks very attractively valued in both absolute and relative terms, so there may be considerable upside potential from an improvement in sentiment towards UK stocks.

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Feb 15

Daily Brief Consumer: Toei Animation, Clarus , MGM China Holdings, Goldwin Inc and more

By Smartkarma Daily Briefs | Consumer, Daily Briefs

In today’s briefing:

Toei Animation (4816) – Shareholder Selldown To Meet Listing Hurdles – Bigly, Heavy, More to Come
Toei Animation Placement – Looks Ripe for a Correction
Toei Animation (4816 JP): A US$550 Million Secondary Offering
Clarus Corp (CLAR) – Wednesday, Nov 15, 2023
Morning Views Asia: Kawasan Industri Jababeka, Lippo Karawaci, MGM China Holdings
Goldwin: Sustainable Records

Toei Animation (4816) – Shareholder Selldown To Meet Listing Hurdles – Bigly, Heavy, More to Come

In December 2021, when companies were required to file statements with the TSE as to plans to meet continuing listing requirements, Toei Animation (4816 JP) had a Plan.
That plan? Get from a then-current 15.5% Tradable Shares level to 25.0% by 31 March 2025. That was “OK” though later, the TSE asked companies to speed it up.
Today, shareholders Sony and Bandai Namco announced an equity offering to sell down up to 4.48mm shares in a domestic+overseas offering. It’s big, heavy, and there is more to come.

Toei Animation Placement – Looks Ripe for a Correction

Bandai Namco (7832 JP) and Sony Pictures are looking to raise up to US$525m via selling around 10.66% of Toei Animation (4816 JP) (TA).
The purpose of the placement is to unwind some of the cross-shareholding, as well as help TA to maintain its listing in the Standard Segment.
In this note, we will talk about the placement and run the deal through our ECM framework.

Toei Animation (4816 JP): A US$550 Million Secondary Offering

Toei Animation (4816 JP) has announced a secondary offering of up to 4.5 million shares (including overallotment). Bandai Namco Holdings (7832 JP) and Sony Corp (6758 JP) are the sellers.
The offering will allow Toei Animation to maintain its listing in the TSE Standard Market and enable Bandai Namco and Sony to reduce and liquidate cross-shareholdings.
Looking at recent large Japanese placements is instructive for understanding the potential offer price. The pricing date will likely fall between 27 February and 4 March (likely 27 February).

Clarus Corp (CLAR) – Wednesday, Nov 15, 2023

Key points (machine generated)

Clarus’s non-ESG portfolio consists of reputable outdoor brands such as Black Diamond, Pieps, Sierra Bullets, Barnes Bullets, and SKINourishment.
Their ESG portfolio includes brands like Industry West, Snow Peak, Royal Robbins, Stonewear, and Hummingbird, which focus on sustainable and environmentally friendly products.
With Warren Kanders’s ownership and track record, the recent underperformance of Clarus’s stock is deemed unacceptable, but the inclusion of reputable outdoor brands and the commitment to sustainability provide potential for stock price appreciation.

Morning Views Asia: Kawasan Industri Jababeka, Lippo Karawaci, MGM China Holdings

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.

Kawasan Industri Jababeka
Lippo Karawaci
MGM China Holdings

Goldwin: Sustainable Records

By Michael Causton

Goldwin has had a remarkable run of record sales and profits, a beneficiary of the continuing growth in the outdoor market as well as its own retail strategy.
Although much of its success has come from The North Face, Goldwin is determined to become a more diversified – and global – sports business.
When we first recommended the stock it was around ¥5,000 and rose to a peak of ¥12,600 but is now about ¥9,000. Will it grow again? We think so.

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Feb 15

Most Read: Outsourcing Inc, Toei Animation, JSR Corp, IGO Ltd, I-TAIL , KB Financial and more

By Smartkarma Daily Briefs | Daily Briefs, Most Read

In today’s briefing:

Outsourcing (2427) – Earnings Delay Causes Consternation
Toei Animation (4816) – Shareholder Selldown To Meet Listing Hurdles – Bigly, Heavy, More to Come
JSR (4185) – Updated Information in SUNY Lawsuit, and Other Developments
MVIS Australia Equal Weight Index Rebalance Preview: Should I Stay or Should IGO?
Toei Animation Placement – Looks Ripe for a Correction
SET50 Index Rebalance Preview: Three Potential Changes in June
Musings On US-Listed China Plays
KB Financial Placement – Momentum Has Been Strong and the Last Clean-Up Sale Has Done Well
Outsourcing (2427 JP): Keep Calm or Worry About the Earnings Delay?
Toei Animation (4816 JP): A US$550 Million Secondary Offering

Outsourcing (2427) – Earnings Delay Causes Consternation

Originally, the MBO for Outsourcing Inc (2427 JP) was expected to get launched end-January 2024. A late-ish filing with regard to the EU’s Foreign Subsidies Regulation regime prompted a delay.
Yesterday Outsourcing announced a delay its earnings release by 3 business days, the delay “procedures related to impairment losses are continuing.”
Outsourcing shares are down hard on this. -1.5% as I write. I examine.

Toei Animation (4816) – Shareholder Selldown To Meet Listing Hurdles – Bigly, Heavy, More to Come

In December 2021, when companies were required to file statements with the TSE as to plans to meet continuing listing requirements, Toei Animation (4816 JP) had a Plan.
That plan? Get from a then-current 15.5% Tradable Shares level to 25.0% by 31 March 2025. That was “OK” though later, the TSE asked companies to speed it up.
Today, shareholders Sony and Bandai Namco announced an equity offering to sell down up to 4.48mm shares in a domestic+overseas offering. It’s big, heavy, and there is more to come.

JSR (4185) – Updated Information in SUNY Lawsuit, and Other Developments

12 days ago, JSR Corp (4185 JP) announced that former research collaboration partner Research Foundation of the State University of New York had sued in an intellectual property ownership dispute.
I wrote about it here to the extent I could. Since then, more information has become available, or available to me. Some details on the case. Some on lawyers.
Since then JSR has reported earnings with unchanged forecast, and major pure play comp Tokyo Ohka Kogyo (4186 JP) today reported earnings; the stock popped 10+% to an all-time high.

MVIS Australia Equal Weight Index Rebalance Preview: Should I Stay or Should IGO?

The review period for the March rebalance of the MVIS Australia Equal Weight Index ends on 29 February with results announced on 8 March and implemented on 15 March.
Lendlease Group (LLC AU), IDP Education (IEL AU) and IGO Ltd (IGO AU) are very close to deletion zone and price moves over the next couple of weeks are important.
IGO Ltd (IGO AU) is also a deletion from a global index in February and a lower stock price could lead to deletion from this index too.

Toei Animation Placement – Looks Ripe for a Correction

Bandai Namco (7832 JP) and Sony Pictures are looking to raise up to US$525m via selling around 10.66% of Toei Animation (4816 JP) (TA).
The purpose of the placement is to unwind some of the cross-shareholding, as well as help TA to maintain its listing in the Standard Segment.
In this note, we will talk about the placement and run the deal through our ECM framework.

SET50 Index Rebalance Preview: Three Potential Changes in June

Early days, but there could be three changes for the Stock Exchange of Thailand SET 50 Index at the June rebalance. Two names are reversals of the December changes.
Passive trackers will need to buy between 1.5-3.6 days of ADV on the inclusions and sell 1.1-1.4 days of ADV on the deletions.
There are a couple of stocks that are close to passing/failing the liquidity tests and a couple close to cutoff ranks. That could result in further changes to the index.

Musings On US-Listed China Plays

By David Blennerhassett

Seeing as though it is Chinese New Year week, I thought it might be appropriate to conduct a brief analysis of US-listed China plays.
According to a recent US-China Economic and Security Review Commission report, 265 Chinese companies were listed on the NYSE, Nasdaq and NYSE American exchanges in January 2024 worth US$848bn.
That’s down from 252 companies worth US$1.03tn a year ago, a 17.5% decline. 91% of the total market capitalization of Chinese firms listed on U.S. exchanges use VIEs.

KB Financial Placement – Momentum Has Been Strong and the Last Clean-Up Sale Has Done Well

By Clarence Chu

The Carlyle Group / (CG US) via Kingsman Investment, is looking to raise US$244m from selling its entire stake in KB Financial (105560 KS).
Carlyle has been invested in the firm since mid-2020, where it then expressed that it would hold on to its stake for at least three and a half years.
The deal would be a small one to digest at just 3.8 days of KB Financial’s three month ADV, representing 1.2% of its current mcap.

Outsourcing (2427 JP): Keep Calm or Worry About the Earnings Delay?

Outsourcing Inc (2427 JP) has delayed the announcement of its 4QFY2023 results from 14 to 19 February as the impairment loss accounting is yet to be completed.
Outsourcing has a history of impairments, resulting in missed forecasts, which suggests a weak 4Q. The concern is that a weak 4Q could force Bain to trim its JPY1,755 offer.
Persol Holdings (2181 JP) guidance cut today suggests a weak 4Q reflects near-term industry weakness rather than company-specific issues. The weak 4Q is a valuable cover to justify the less-than-stellar offer.

Toei Animation (4816 JP): A US$550 Million Secondary Offering

Toei Animation (4816 JP) has announced a secondary offering of up to 4.5 million shares (including overallotment). Bandai Namco Holdings (7832 JP) and Sony Corp (6758 JP) are the sellers.
The offering will allow Toei Animation to maintain its listing in the TSE Standard Market and enable Bandai Namco and Sony to reduce and liquidate cross-shareholdings.
Looking at recent large Japanese placements is instructive for understanding the potential offer price. The pricing date will likely fall between 27 February and 4 March (likely 27 February).

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Feb 14

Daily Brief Energy/Materials: IGO Ltd, Flotek Industries , VAALCO Energy and more

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

In today’s briefing:

MVIS Australia Equal Weight Index Rebalance Preview: Should I Stay or Should IGO?
Flotek Industries, Inc. – Market Share Gains Despite Headwinds
VAALCO Energy, Inc. – 4Q23 Production Outperformed Guidance

MVIS Australia Equal Weight Index Rebalance Preview: Should I Stay or Should IGO?

The review period for the March rebalance of the MVIS Australia Equal Weight Index ends on 29 February with results announced on 8 March and implemented on 15 March.
Lendlease Group (LLC AU), IDP Education (IEL AU) and IGO Ltd (IGO AU) are very close to deletion zone and price moves over the next couple of weeks are important.
IGO Ltd (IGO AU) is also a deletion from a global index in February and a lower stock price could lead to deletion from this index too.

Flotek Industries, Inc. – Market Share Gains Despite Headwinds

By Water Tower Research

Flotek’s suite of chemical solutions, which can help customers increase economic returns on their capital investment, helped the company gain market share during FY23 despite headwinds created by a declining US rig count.
The company’s prescriptive chemistry solutions, combined with its proprietary Complex nano Fluid (CnF)® technologies, have demonstrated improved production performance over a large population of wells completed in the Permian Basin.
Customer efforts to improve their returns on capital could continue to provide a buffer against headwinds and result in further market share gains in 2024.

VAALCO Energy, Inc. – 4Q23 Production Outperformed Guidance

By Water Tower Research

Continued strong asset performance across VAALCO’s portfolio in Gabon, Egypt, and Canada contributed to 4Q23 production and sales at, or above, the high end of management’s November 7, 2023, updated outlook.
4Q23 working interest (WI) production and sales fell to 23.1-23.5 MBOE/d and 27.4-27.6 MBOE/d, compared with guidance of 22.9- 24.6 MBOE/d and 25.3-27.6 MBOE/d, respectively.
4Q23 net revenue interest (NRI) production and sales volumes averaged 17.9-18.2 MBOE/d and 21.725-22.125 MBOE/d, compared with guidance of 17.6-19.4 MBOE/d and 19.8-22.0 MBOE/d, respectively.

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Feb 14

Daily Brief Industrials: GMR Airports Infrastructure, Vestis and more

By Smartkarma Daily Briefs | Daily Briefs, Industrials

In today’s briefing:

GMR Airports Infra (GMRI IN): Flying High
Vestis Corp -Spn (VSTS) – Tuesday, Nov 14, 2023

GMR Airports Infra (GMRI IN): Flying High

At the last close, GMR Airports Infrastructure (GMRI IN) has a market cap of US$6.23bn and a free float market cap of US$2.48bn.
Passive global trackers are estimated to need to buy 223.33m shares (US$230m; 4.4x ADV) of GMR Airports Infrastructure (GMRI IN) at the close on 29 February.
GQG Partners (GQG AU) has been a big buyer since December and holds 4.98% of the company. The stock could run up for a few more weeks.

Vestis Corp -Spn (VSTS) – Tuesday, Nov 14, 2023

Key points (machine generated)

Vestis is in a favorable position to capitalize on the growth opportunities in the uniform rental and workplace supplies industry.
The company has implemented operational improvements and expanded its salesforce, which will likely lead to improved margins.
With a new Board of Directors and a refreshed management team, Vestis is expected to catch up with its competitors in terms of growth and profitability. The analysts project a 30% internal rate of return and a target price of $39/share by the end of 2025.

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Feb 14

Daily Brief TMT/Internet: Ansarada Group Ltd, Zhejiang Taimei Medical Technology Co Ltd, Douzone Bizon, Bharti Hexacom, Quantum Computing , Rightmove PLC, Gogo Inc and more

By Smartkarma Daily Briefs | Daily Briefs, TMT/Internet

In today’s briefing:

Ansarada Enters Scheme With Datasite
Zhejiang Taimei Medical Technology Pre-IPO Tearsheet
Douzone Bizon: A Strong Turnaround Story in the Korean Software Industry
Bharti Hexacom Pre-IPO – The Positives – Earnings Have Been Recovering Well
Tech Talk: Quantum Computing Interesting but Significant Impacts Likely over the Horizon
Rightmove (RMV) – Tuesday, Nov 14, 2023
Gogo Inc (GOGO) – Tuesday, Nov 14, 2023

Ansarada Enters Scheme With Datasite

By David Blennerhassett

Virtual room provider Ansarada Group Ltd (AND AU) has entered into a Scheme with Datasite, a leading global SaaS provider acquired by UK-based PE outfit CapVest Partners in 2020.
Datasite is offering A$2.50/share, in cash, a 19% premium to undisturbed and a lifetime high.
Apart from requiring Ansarada shareholder approval, the Scheme is conditional on FIRB and the carving out of certain assets to Ansarada’s CEO. This transaction should complete in early June.

Zhejiang Taimei Medical Technology Pre-IPO Tearsheet

By Clarence Chu

Zhejiang Taimei Medical Technology Co Ltd (1482194D CH) is looking to raise >US$100m in its upcoming Hong Kong IPO. The bookrunners on the deal are Morgan Stanley and CICC.
Zhejiang Taimei Medical Technology (ZTMT) is a digital solution provider for the life sciences R&D and commercialization sector.
As per the CIC report in the application proof, the firm was the largest digital solution provider for life sciences R&D and commercialization in China in terms of 2022 revenue.

Douzone Bizon: A Strong Turnaround Story in the Korean Software Industry

By Douglas Kim

Douzone Bizon’s results turned around strongly in 2023. It had sales of 353.6 billion won (up 16.2% YoY) and operating profit of 68.4 billion won (up 50.4% YoY) in 2023.
The company plans to release software platforms with artificial intelligence capable functions in 1Q 2024.
The sharp increase in the share price and market cap of Douzone Bizon raises the probability of the company being included in the KOSPI 200 rebalance in 2024.

Bharti Hexacom Pre-IPO – The Positives – Earnings Have Been Recovering Well

Bharti Hexacom is looking to raise up to US$1bn in its upcoming India IPO.
Bharti Hexacom (BH) is a communications solutions provider offering consumer mobile services, fixed-line telephone and broadband services to customers in the Rajasthan and the North East telecommunication circles in India.
In this note, we talk about the positive aspects of the deal.

Tech Talk: Quantum Computing Interesting but Significant Impacts Likely over the Horizon

By Water Tower Research

The size of the quantum computing market depends on which source you consult and how it defines the market.
The average CAGR is 29% for a billion-dollar market, hitting $4- 6 billion in 2030.
Quantum computing is a new type of computing that uses the principles of quantum mechanics to solve problems that are too complex for traditional computers.

Rightmove (RMV) – Tuesday, Nov 14, 2023

Key points (machine generated)

In 2008, Thistle933 successfully pitched Rightmove to investors despite a challenging real estate market.
Rightmove’s business model, market position, and earnings power remained strong, leading to a compounded annual growth rate of 22% since the pitch.
However, recent underperformance by Rightmove’s stock is attributed to competitor CoStar’s acquisition of OnTheMarket, resulting in a 15% decline in RMV’s stock and a lower five-year compounded annual growth rate of 2.5%.

Gogo Inc (GOGO) – Tuesday, Nov 14, 2023