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Smartkarma Daily Briefs

Feb 14
0

Daily Brief Industrials: GMR Airports Infrastructure, Vestis and more

By | 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

By Brian Freitas

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

By Value Investors Club

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.

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.

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Feb 14
0

Daily Brief Health Care: I-Mab, Dr. Reddy’s Laboratories and more

By | Daily Briefs, Healthcare

In today’s briefing:

  • I-Mab to Divest Chinese Assets and Business Operations for up to $80M – An Escape by Crafty Scheme
  • Dr. Reddy’s Laboratories (DRRD IN): US and Europe Drive Highest Ever Sales in Q3; Profit Surges 11%

I-Mab to Divest Chinese Assets and Business Operations for up to $80M – An Escape by Crafty Scheme

By Xinyao (Criss) Wang

  • I-MAB claimed that this divesture is the best strategic choice to respond to the overall environment of China and the US. I-MAB needs to make changes to appease investors.
  • The real situation is not as beautiful as it seems.This divesture means I-MAB US has actually been “hollowed out”, which is a big blow to I-MAB US and its investors. 
  • With R&D team/production base, I-MAB Hangzhou is able to tell more good stories in the future, which has completed C1 round financing and plans to IPO in A-share or HKEX.

Dr. Reddy’s Laboratories (DRRD IN): US and Europe Drive Highest Ever Sales in Q3; Profit Surges 11%

By Tina Banerjee

  • In Q3FY24, Dr. Reddy’s Laboratories (DRRD IN) posted highest ever revenue of INR72B, led by U.S. and Europe generics businesses, with contribution from both base business and new product launches.
  • Underperformance in the domestic market continued in Q3FY24. However, the company’s initiatives regarding innovative and new generic drugs for Indian market should place it for long-term accelerated growth.
  • Last month, Dr. Reddy’s acquired MenoLabs, a leading women’s health and dietary supplement branded portfolio of seven products designed to provide health support and address symptoms of perimenopause and menopause.  

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Feb 14
0

Daily Brief Financials: S&P 500 INDEX, Bank Mandiri Persero and more

By | Daily Briefs, Financials

In today’s briefing:

  • EQD | E-Mini S&P500 (ES) DAILY Sell-OFF: Where Do You Buy?
  • BMRI IJ Initiation: Growth at Reasonable Price!

EQD | E-Mini S&P500 (ES) DAILY Sell-OFF: Where Do You Buy?

By Nico Rosti

  • E-Mini S&P 500 Futures closed down at 4971.29 on Tuesday. Big recovery rally at the end of the day, but the sell-off could continue into the end of the week.
  • Both the DAILY and WEEKLY time period are already OVERSOLD according to our models, however we see no reason to rush to buy.
  • This insight is a roadmap for the next 2-3 days, to find support levels to go LONG, to profit on the next, DAILY, LONG reversal.

BMRI IJ Initiation: Growth at Reasonable Price!

By Raj Saya, CA, CFA

  • BMRI is more profitable than BBNI, less cyclical than BBRI  and less expensive than BBCA. This combination makes it an attractive play on the Indonesia credit growth story.
  • BMRI’s FY23 results are a strong beat with industry-leading loan growth and strong ROE; BMRI also has the potential to aggressively grow its retail portfolio which still is likely under-appreciated
  • BMRI still trades at a discount to BBRI and has the potential to re-rate by another 20% in the near term, apart from the compounding driven by strong loan growth.

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Feb 14
0

Daily Brief Consumer: APR, Tod’s SpA, I-TAIL , TSE Tokyo Price Index TOPIX, Lifevantage and more

By | Consumer, Daily Briefs

In today’s briefing:

  • APR IPO Book-Building Results Analysis
  • Tod’s: Another Cheap Shot at Privatization After Failed Attempt in 2022
  • SET50 Index Rebalance Preview: Three Potential Changes in June
  • Shareholder Proposals Likely a Focus at 2024 AGM Are ROE, P/B, and Parent-Subsidiary Listings
  • LifeVantage Corporation – Raising EPS & EBITDA Estimates; Trimming Sales

APR IPO Book-Building Results Analysis

By Douglas Kim

  • APR reported a very strong IPO book-building results. APR IPO price has been determined at 250,000 won, which is 25% higher than the high end of the IPO price range.
  • A total of 1,969 institutional investors participated in this IPO book-building. The demand ratio was 663 to 1. APR IPO will start trading on 26 February. 
  • Our base case valuation of APR is target price of 370,809 won per share which represents a 48% upside from the IPO price of 250,000 won. 

Tod’s: Another Cheap Shot at Privatization After Failed Attempt in 2022

By Nicolas Van Broekhoven

  • As we have long predicted LVMH is making a cheap and sneaky offer for Tod’s SpA (TOD IM).
  • LVMH is doing it via wholly controlled L Catterton to confuse minority holders
  • L Catterton = LVMH,  and the only reason for the current proposal is to be able to pay Della Valle a much higher price in a private transaction later on.

SET50 Index Rebalance Preview: Three Potential Changes in June

By Brian Freitas

  • 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.

Shareholder Proposals Likely a Focus at 2024 AGM Are ROE, P/B, and Parent-Subsidiary Listings

By Aki Matsumoto

  • With ISS’s plan to resume ROE criteria and TSE’s mention of P/B, more shareholder proposals calling for stronger shareholder returns due to stagnant stock prices and ROEs can be expected.
  • Since over 30% of listed companies have major shareholders holding 20% or more of their interests, the voting behavior of domestic institutions is key to the passage of shareholder proposals.
  • With TSE’s disclosure request regarding the significance of parent-subsidiary listings, this matter will become another focus of the AGM in business portfolio reform and securing the interests of minority shareholders.

LifeVantage Corporation – Raising EPS & EBITDA Estimates; Trimming Sales

By Water Tower Research

  • We have updated our models following the company’s 2QFY24 (December) earnings release.
  • We are raising our EPS estimates for FY24 (June) to $0.60 from $0.55, FY25 (June) to $0.70 from $0.65, and FY26 (June) to $0.80 from $0.75. Since 2QFY24 beat our previous forecast by $0.06, we are essentially flowing through that upside.
  • Our $0.60 EPS estimate for FY24 is toward the lower end of management’s new range of $0.57-0.67, which was raised from $0.52-0.62 at the time of the release.

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Feb 14
0

Most Read: Fast Retailing, Socionext, Softbank Group, GMR Airports Infrastructure, Abacus Storage King, GDS Holdings , Top40 Index, IGO Ltd, Ansarada Group Ltd and more

By | Daily Briefs, Most Read

In today’s briefing:

  • Nikkei 225 Index Rebalance Preview (Mar 2024): Update on Ranking, Capping, Funding & Fast Retailing
  • FINAL PREDICTIONS: March 2024 Nikkei 225 Rebal (Socionext, Disco, and 1 Consumer Goods Stock to ADD)
  • Softbank (9984 JP): Relying on Arm Strength and JPY Weakness
  • GMR Airports Infra (GMRI IN): Flying High
  • MVIS Australia A-REITs Index Rebalance Preview: ASK Looks Like a Delete
  • Quiddity HSTECH Mar 24 Flow Expectations: US$415mn One-Way if the Low-Conviction Change Takes Place
  • FEB 2024 REBALANCE Index Changes Announced, SA Constituents to Remain the Same
  • MVIS Australia Equal Weight Index Rebalance Preview: Should I Stay or Should IGO?
  • IKang Healthcare (KANG US): Another Setback For Dissenters
  • Ansarada Enters Scheme With Datasite

Nikkei 225 Index Rebalance Preview (Mar 2024): Update on Ranking, Capping, Funding & Fast Retailing

By Brian Freitas

  • The review period for the Nikkei 225 (NKY INDEX) March rebalance ends yesterday. There could be three changes at the rebalance with sector balance in focus.
  • Depending on the changes, passive trackers will need to buy between 1.3-19x ADV (7.1-24% of real float) on the inclusions and sell between 3.5-47x ADV on the deletions.
  • Fast Retailing (9983 JP) avoids capping in March, passives will buy Nitori Holdings (9843 JP), and 25 stocks have over 0.5x ADV to sell as part of the funding trade.

FINAL PREDICTIONS: March 2024 Nikkei 225 Rebal (Socionext, Disco, and 1 Consumer Goods Stock to ADD)

By Travis Lundy

  • The Nikkei 225 data for the March 2024 rebalance is a wrap. The names are the same as before but there is likely less DISCO Corp (6146 JP) to buy.
  • It’s still big, but smaller than before because of the difference between performance and the change in PAF required to be below 1%. A 4:1 share split would be optimal.
  • I recommend a few positioning changes from before, and the Fast Retailing trade loses one short-term option but the longer-term one stays in place.

Softbank (9984 JP): Relying on Arm Strength and JPY Weakness

By Victor Galliano

  • We believe that Arm is now valued as a “growth at any price” stock; with nearly half of SoftBank group’s equity value reliant on Arm, NAV downside risk is rising
  • The risk of JPY appreciation is real, whilst SVF2 remains very exposed to financing costs, with 85% of its equity value in private companies
  • Softbank shares trade at a 55%+ discount to the estimated NAV; yet the downside risks to Arm’s valuation, along with the potential JPY appreciation, should keep the discount wide

GMR Airports Infra (GMRI IN): Flying High

By Brian Freitas

MVIS Australia A-REITs Index Rebalance Preview: ASK Looks Like a Delete

By Brian Freitas

  • The review period for the March rebalance ends in a couple of weeks. There could be one deletion from the index and a bunch of capping changes.
  • The index changes will lead to a one-way turnover of 2.2% resulting in a one-way trade of A$13m. There are two stocks with over A$3m to trade.
  • With market participants expecting lower interest rates, there has been short covering on a lot of the REITs in the last few months.

Quiddity HSTECH Mar 24 Flow Expectations: US$415mn One-Way if the Low-Conviction Change Takes Place

By Janaghan Jeyakumar, CFA

  • The HSTECH Index tracks the performance of the top 30 technology companies listed in Hong Kong that have high business exposure to certain technology themes.
  • The index changes for HSTECH index for the March 2024 index rebal event will be announced on 16th February 2024. 
  • In this insight, we take a final look at the expected index changes and our latest flow expectations.

FEB 2024 REBALANCE Index Changes Announced, SA Constituents to Remain the Same

By Charlotte van Tiddens, CFA

  • Indices will be rebalanced at the end of the month on Thursday the 29th of February.
  • The three largest additions to the World Index measured by full company market capitalization will be Samsara A (USA), Corebridge Financial (USA) and Applovin Corp A (USA)
  • The three largest additions to the Emerging Markets Index measured by full company market capitalization will be Midea Group Co A (HK-C) (China), Punjab National Bank (India) and Union Bank Of India (India)

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

By Brian Freitas

  • 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.

IKang Healthcare (KANG US): Another Setback For Dissenters

By David Blennerhassett

  • In officially decided cases concerning dissentient shareholders in privatised US-listed China plays, the uplift to the merger price versus time value of money and legal costs, is less than ideal. 
  • The outcome for each case will turn on the underlying facts. But it would appear iKang Healthcare Group (ADR) (KANG US) is following a similar trend.  
  • Reportedly the uplift to the iKang merger price is just 10%. Dissenters can still lodge an appeal.

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.

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Feb 14
0

Daily Brief ESG: Shareholder Proposals Likely a Focus at 2024 AGM Are ROE and more

By | Daily Briefs, ESG

In today’s briefing:

  • Shareholder Proposals Likely a Focus at 2024 AGM Are ROE, P/B, and Parent-Subsidiary Listings

Shareholder Proposals Likely a Focus at 2024 AGM Are ROE, P/B, and Parent-Subsidiary Listings

By Aki Matsumoto

  • With ISS’s plan to resume ROE criteria and TSE’s mention of P/B, more shareholder proposals calling for stronger shareholder returns due to stagnant stock prices and ROEs can be expected.
  • Since over 30% of listed companies have major shareholders holding 20% or more of their interests, the voting behavior of domestic institutions is key to the passage of shareholder proposals.
  • With TSE’s disclosure request regarding the significance of parent-subsidiary listings, this matter will become another focus of the AGM in business portfolio reform and securing the interests of minority shareholders.

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Feb 14
0

Daily Brief Quantitative Analysis: A-H Premium Weekly (Feb 9th): Zijin Mining and more

By | Daily Briefs, Quantitative Analysis

In today’s briefing:

  • A-H Premium Weekly (Feb 9th): Zijin Mining, Conch Cement, China Vanke, Air China, Shandong Gold
  • HK Short Interest Weekly: Hscei Etf, Bud Apac, CMB, Tencent, Wuxi Apptec, Wuxi Bio
  • Hong Kong Connect Flows (Feb 9th): Tencent
  • Northbound Flows (Feb 9th): Moutai, Boe Technology, Wuxi Apptec, Wanhua Chemical, CATL

A-H Premium Weekly (Feb 9th): Zijin Mining, Conch Cement, China Vanke, Air China, Shandong Gold

By Ke Yan, CFA, FRM

  • We analyse the changes of A-H premium on 146 stocks over the last week. The average A-H premium was 129.8% as of Feb 9th.
  • The average A-H premium changed by 6.2ppt week-on-week, led by health care, materials, real estate and offset by consumer discretionary, communication services.
  • We highlight weekly changes in A-H premium for Zijin Mining, Conch Cement, China Vanke, Air China, Shandong Gold, RemeGen, CICC, Shanghai Junshi.

HK Short Interest Weekly: Hscei Etf, Bud Apac, CMB, Tencent, Wuxi Apptec, Wuxi Bio

By Ke Yan, CFA, FRM

  • We analyzed the latest HK SFC report for aggregate short position as of Feb 2nd.
  • Top short increases and decreases were tabulated for one week and four week period. 
  • We highlight short changes in Hscei Etf, Bud Apac, CMB, Tencent, Wuxi Apptec, Wuxi Bio, Lenovo.

Hong Kong Connect Flows (Feb 9th): Tencent

By Ke Yan, CFA, FRM

  • We analyze the weekly Hong Kong Connect flows with our data engine for holding position as of February 9th.
  • The top stocks by inflows and outflows were tabulated for all market, HSCEI, mid cap and s/mid cap groups.
  • We highlight the weekly Hong Kong connect flows for Tencent.

Northbound Flows (Feb 9th): Moutai, Boe Technology, Wuxi Apptec, Wanhua Chemical, CATL

By Ke Yan, CFA, FRM

  • We analyze the weekly Shanghai/Shenzhen northbound Connect flows with our data engine for holding position as of February 9th.
  • We estimate the weekly inflows to be US$2,110.3 million, led by financials, consumer staples, industrials sectors, and offset by health care.
  • We highlight flows for Moutai, Boe Technology, Wuxi Apptec, Wanhua Chemical, CATL, Foxconn Industrial Internet.

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Feb 14
0

Daily Brief ECM: APR IPO Book-Building Results Analysis and more

By | Daily Briefs, ECM

In today’s briefing:

  • APR IPO Book-Building Results Analysis
  • Zhejiang Taimei Medical Technology Pre-IPO Tearsheet
  • Bharti Hexacom Pre-IPO – The Positives – Earnings Have Been Recovering Well

APR IPO Book-Building Results Analysis

By Douglas Kim

  • APR reported a very strong IPO book-building results. APR IPO price has been determined at 250,000 won, which is 25% higher than the high end of the IPO price range.
  • A total of 1,969 institutional investors participated in this IPO book-building. The demand ratio was 663 to 1. APR IPO will start trading on 26 February. 
  • Our base case valuation of APR is target price of 370,809 won per share which represents a 48% upside from the IPO price of 250,000 won. 

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.

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

By Sumeet Singh

  • 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.

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Feb 14
0

Daily Brief Thailand: I-TAIL and more

By | Daily Briefs, Thailand

In today’s briefing:

  • SET50 Index Rebalance Preview: Three Potential Changes in June

SET50 Index Rebalance Preview: Three Potential Changes in June

By Brian Freitas

  • 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.

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Feb 14
0

Daily Brief Australia: IGO Ltd, Ansarada Group Ltd and more

By | Australia, Daily Briefs

In today’s briefing:

  • MVIS Australia Equal Weight Index Rebalance Preview: Should I Stay or Should IGO?
  • Ansarada Enters Scheme With Datasite

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

By Brian Freitas

  • 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.

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.

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