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Smartkarma Daily Briefs

Jan 21
0

Daily Brief Macro: Pity poor Zara and more

By | Daily Briefs, Macro

In today’s briefing:

  • Pity poor Zara, wild animals, the collapse of Myanmar and those efficient markets we’re all told…
  • The Weekly Market Monitor – US Hawkishness, Bitcoin Memes, and China’s Value Trap

Pity poor Zara, wild animals, the collapse of Myanmar and those efficient markets we’re all told…

By Adventurous Investor

  • In fiscal year 2017 (spanning October 2016 to September 2017, the end of the Obama administration and the beginning of the Trump presidency), U.S. Customs and Border Protection encountered 526,901 migrants trying to enter the country without legal authorization.
  • Numbers rose during the first three years of Trump’s presidency but then plummeted back to 646,822 in 2020 during the Covid lockdown.
  • But during Biden’s presidency, they shot back up higher than ever.

The Weekly Market Monitor – US Hawkishness, Bitcoin Memes, and China’s Value Trap

By Jeroen Blokland

  • The Empire State Manufacturing Survey has crashed! Only two months during COVID-19 were worse. So, how bad is it?
  • China is a mess. And it just got worse. The Hang Seng Index collapsed. Are Chinese stocks a buy yet?
  • UK inflation added to the ‘we must remain hawkish’ narrative of central banks. Yet, many rate cuts are coming.

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Jan 21
0

Daily Brief United States: Tenable Holdings Inc, Cambium Networks , Culp Inc, Iridium Communications, Kyndryl Holdings , Sensata Technologies Holding P, Teradata Corp, Varonis Systems, Braze Inc, Workiva Inc and more

By | Daily Briefs, United States

In today’s briefing:

  • Tenable Holdings: Initiation of Coverage – Unlock the Secrets Behind Tenable’s High Recurring Revenue and Sky-High Margins! – Major Drivers
  • Cambium Networks Corporation – CFO Departure and 4Q23 Miss Driven by Distributor Incentives
  • Culp, Inc. – Updating 3Q Estimate Following WTR Conference Comment
  • Iridium Communications: Initiation of Coverage – Can It Capitalize On The IoT Explosion? – Major Drivers
  • Kyndryl Holdings: Initiation of Coverage – How Kyndryl Consult Is Shaping a New Era of Revenue Generation – Major Drivers
  • Sensata Technologies: Initiation of Coverage – The 4 Biggest Drivers Taking The Company Forward! – Financial Forecasts
  • Teradata Corporation: Initiation of Coverage – Unleashing Cloud Potential! Why Its Cloud-Based Platform Is the Talk of the Tech World – Major Drivers
  • Varonis Systems: Initiation of Coverage – Can It Come Out A Winner From The SaaS Transition? – Major Drivers
  • Braze Inc: Initiation of Coverage – Discover How Braze’s Innovative Approach Is Setting New Industry Standards – Major Drivers
  • Workiva Inc: Initiation of Coverage – Unveiling Their Winning Strategy in Turbulent Geopolitical and Economic Times – Major Drivers

Tenable Holdings: Initiation of Coverage – Unlock the Secrets Behind Tenable’s High Recurring Revenue and Sky-High Margins! – Major Drivers

By Baptista Research

  • This is our first report on cyber exposure solutions provider, Tenable Networks.
  • The company’ Q3 2023 earnings highlighted steady financial performance, strong contributions from its platform products like Tenable One, and overall business growth, particularly in the public sector.
  • In this report, we have carried out a fundamental analysis of the historical financial statements of the company.

Cambium Networks Corporation – CFO Departure and 4Q23 Miss Driven by Distributor Incentives

By Water Tower Research

  • On January 18, 2024, Cambium preannounced that 4Q23 revenue would likely come in at $40 million, below its guidance of $45.0-50.0 million provided on November 2, 2023.
  • This is the third revenue miss in a row.
  • Cambium stated that the revenue miss was driven by $11 million in distributor incentives in 4Q23.

Culp, Inc. – Updating 3Q Estimate Following WTR Conference Comment

By Water Tower Research

  • Following Culp’s presentation at the WTR Furniture/Furnishings Virtual Conference, we are updating our 3Q estimates.
  • CEO Robert Culp IV warned that 3Q operating income will fall short of previous expectations.
  • The 3Q operating loss will approach $2.2 million, in line with the 2Q operating loss.

Iridium Communications: Initiation of Coverage – Can It Capitalize On The IoT Explosion? – Major Drivers

By Baptista Research

  • This is our first report on mobile voice and data communications services provider, Iridium Communications.
  • The company’s Q3 2023 Earnings demonstrated both the company’s resilient growth and emerging challenges in an increasingly competitive environment.
  • In this report, we have carried out a fundamental analysis of the historical financial statements of the company.

Kyndryl Holdings: Initiation of Coverage – How Kyndryl Consult Is Shaping a New Era of Revenue Generation – Major Drivers

By Baptista Research

  • This is our first report on IT services company, Kyndryl.
  • This increase has been attributed to successful execution of its operations, demonstrating their ability to drive substantial profit growth in the company.
  • In this report, we have carried out a fundamental analysis of the historical financial statements of the company.

Sensata Technologies: Initiation of Coverage – The 4 Biggest Drivers Taking The Company Forward! – Financial Forecasts

By Baptista Research

  • This is our first report on sensor-based technology solutions provider, Sensata Technologies.
  • The dip in revenue was cited due to factors like market outgrowth slowing over the last 12 months and unfavorable movements in foreign currency.
  • In this report, we have carried out a fundamental analysis of the historical financial statements of the company.

Teradata Corporation: Initiation of Coverage – Unleashing Cloud Potential! Why Its Cloud-Based Platform Is the Talk of the Tech World – Major Drivers

By Baptista Research

  • This is our first report on hybrid cloud analytics software provider, Teradata Corporation.
  • The company’s 2023 Q3 earnings were recently reported and the leading cloud analytics and data platform company had delivered another strong quarter and remained confident it would achieve its 2023 forecast.
  • In this report, we have carried out a fundamental analysis of the historical financial statements of the company.

Varonis Systems: Initiation of Coverage – Can It Come Out A Winner From The SaaS Transition? – Major Drivers

By Baptista Research

  • This is our first report on Varonis Systems, a company specializing in data security and analytics.
  • The company is navigating a pivotal shift in its business model, transitioning from traditional software offerings to a Software as a Service (SaaS) model.
  • In this report, we have carried out a fundamental analysis of the historical financial statements of the company.

Braze Inc: Initiation of Coverage – Discover How Braze’s Innovative Approach Is Setting New Industry Standards – Major Drivers

By Baptista Research

  • This is our first report on customer engagement platform operator, Braze Inc.
  • The company’s Q3 2024 earnings highlighted consistent YoY growth, despite a challenging macroeconomic environment, with its operating efficiency throughout the business.
  • Non-GAAP gross margin improved by 170 basis points YoY, and non-GAAP operating margin exceeded last year’s third quarter by 1,100 basis points.

Workiva Inc: Initiation of Coverage – Unveiling Their Winning Strategy in Turbulent Geopolitical and Economic Times – Major Drivers

By Baptista Research

  • This is our first report on Workiva Inc., a leading provider of solutions for enterprise productivity.
  • 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.

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Jan 21
0

Daily Brief Japan: GUPPY’s Inc, Activia Properties, IBJ, Benefit One Inc, Allegro MicroSystems and more

By | Daily Briefs, Japan

In today’s briefing:

  • GUPPY’s (5127 JP): Medley (4480 JP) Tender Offer at JPY3,250
  • Activia Properties (3279) – Short-Term Higher-Impact Buyback on Better Fundamental Results
  • IBJ (6071) – Aiming to Solidify Its Dominant Market Position
  • Weekly Deals Digest (21 Jan) – Benefit One, GUPPY’s, T&K Toka, Weiqiao, Genetron, Amer Sports
  • Allegro MicroSystems: Initiation of Coverage – How Its Strategic Focus is Electrifying the Future of Transportation – Major Drivers
  • Last Week in Event SPACE: Benefit One, China Unicom, Zhejiang Expressway/ Zheshang Sec, Hollysys

GUPPY’s (5127 JP): Medley (4480 JP) Tender Offer at JPY3,250

By Arun George

  • GUPPY’s Inc (5127 JP) has recommended Medley (4480 JP)’s tender offer of JPY3,250 per share, an 81.0% premium to the undisturbed price (19 January). 
  • The transaction is a two-step acquisition through a cash tender offer and subsequent squeeze-out. The lower limit of the tender offer is set at a 10.19% ownership ratio. 
  • Despite the premium, the offer is light vs the IFA DCF valuation. Based on the irrevocables, the minimum acceptance condition requires a 23.4% minority acceptance rate, which is achievable. 

Activia Properties (3279) – Short-Term Higher-Impact Buyback on Better Fundamental Results

By Travis Lundy

  • Activia Properties (3279 JP) announced results Wednesday. Higher DPU on better rental income looks to continue next period, but an asset disposal will produce some drag ahead.
  • Activia Properties also announced a buyback of 10% of ADV for the next four months.
  • The REIT is slightly cheap to peers. Yield spread to JGBs is high which is good. It needs to be 10% higher to restart accretive equity offerings.

IBJ (6071) – Aiming to Solidify Its Dominant Market Position

By Astris Advisory Japan

  • Market leader positioning to consolidate – IBJ is a marriage consultancy service with strong brand equity, offering high-quality services delivered by human professionals.
  • With an industry-leading membership base, affiliated marriage consulting firms within the IBJ network harness the economies of scale through the platform, ensuring a cost-effective approach to service delivery.
  • It has a strong track record of sustainable free cash flow generation. 

Weekly Deals Digest (21 Jan) – Benefit One, GUPPY’s, T&K Toka, Weiqiao, Genetron, Amer Sports

By Arun George

Allegro MicroSystems: Initiation of Coverage – How Its Strategic Focus is Electrifying the Future of Transportation – Major Drivers

By Baptista Research

  • This is our first report on sensor technology player, Allegro MicroSystems.
  • Sales in these strategic growth areas made up 56% of total sales, indicating a successful strategy execution focused on these specific sectors.
  • The company’s automotive revenues grew 31% year-over-year, with the electrification of vehicles and Advanced Driver Assistance Systems adoption being the main growth drivers.

Last Week in Event SPACE: Benefit One, China Unicom, Zhejiang Expressway/ Zheshang Sec, Hollysys

By David Blennerhassett

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Jan 21
0

Daily Brief China: Minsheng Education, Budweiser Brewing APAC , Weiqiao Textile Co, Genetron Holdings Ltd, China Resources Pharmaceutical, Alibaba (ADR) and more

By | China, Daily Briefs

In today’s briefing:

  • Asian Dividend Gems: Minsheng Education
  • Index Rebalance & ETF Flow Recap: ASX, KS200, KQ150, HSIII, STTF, L&F, Costa Group, Japan, Bud APAC
  • (Mostly) Asia-Pac Weekly Risk Arb Wrap: Genetron, Guppy, Weiqiao Textile, Taisho Pharma, T&K Toka
  • Genetron (GTH US): Wide Spread Ahead of the 21 February Vote
  • China Healthcare Weekly (Jan.19) – Bottom Fish A-Share?/“Style” of FDA/Pharma’s Key Benchmark/3320HK
  • ECM Weekly (21st Jan 2024) – Mixue, Amer, Medi Assist, IPO Pipeline, Yamae, Alchip, NHPC, ASMedia

Asian Dividend Gems: Minsheng Education

By Douglas Kim

  • Minsheng Education (1569 HK) is a highly undervalued Chinese education stock with high dividend yields. Market cap of the company has declined by nearly 90% from Jun 2018 to today. 
  • Minsheng Education’s dividend yield averaged 5.1% from 2020 to 2022. Estimated dividend yield is 14.6% in 2023.   
  • Minsheng Education mainly provides educational services in China. The company is one of the leaders of China’s private higher education industry.

Index Rebalance & ETF Flow Recap: ASX, KS200, KQ150, HSIII, STTF, L&F, Costa Group, Japan, Bud APAC

By Brian Freitas

  • The review period for a global index commenced last week and will run through this week as well.
  • The announcement of the changes for the LQ45 Index should be announced in the coming week and will be implemented at the close on 31 January.
  • Huge inflows to CSI 300 Index trackers during the week while there was a big outflow from Tracker Fund of Hong Kong (2800 HK). 

(Mostly) Asia-Pac Weekly Risk Arb Wrap: Genetron, Guppy, Weiqiao Textile, Taisho Pharma, T&K Toka

By David Blennerhassett

Genetron (GTH US): Wide Spread Ahead of the 21 February Vote

By Arun George

  • Genetron Holdings Ltd (GTH US) shareholders will vote on the consortium’s US$4.08 per ADS offer on 21 February. The offer is light in comparison to historical trading ranges.
  • Completion is conditional on shareholder approval, dissenting shareholders representing less than 15% of outstanding shares and regulatory approvals (NDRC, MoC and SAFE). 
  • Despite the light offer, the completion conditions should be met. At the last close price and end of March completion, the gross and annualised spread is 7.7% and 45.5%, respectively.

China Healthcare Weekly (Jan.19) – Bottom Fish A-Share?/“Style” of FDA/Pharma’s Key Benchmark/3320HK

By Xinyao (Criss) Wang

  • As more and more China’s drugs successfully obtained FDA approval, we analyzed the “style” of the US FDA, aiming to help investors understand the prospects of domestic companies’ internationalization strategies.
  • For mature pharmaceutical companies, we analyzed the benchmarks for some key financial indicators in terms of both revenue and cost. On these basis, companies’ profit performance would be decent. 
  • As a top pharmaceutical SOE, China Resources Pharmaceutical (CRP) wouldn’t go bankrupt.This is the bottom line.Together with stable dividends, CRP is a worthwhile investment target to hold in bear market.

ECM Weekly (21st Jan 2024) – Mixue, Amer, Medi Assist, IPO Pipeline, Yamae, Alchip, NHPC, ASMedia

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, we continued our coverage of Amer Sports (AS US) and looked at Mixue Group Hong Kong filings.
  • Placements continued to trickle in throught the week, across the region, apart from Hong Kong.

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Jan 20
0

Most Read: Douzone Bizon, Socionext, Budweiser Brewing APAC , APR, Taiwan Semiconductor (TSMC), Hyundai Steel, Genetron Holdings Ltd, Asmedia Technology and more

By | Daily Briefs, Most Read

In today’s briefing:

  • KRX New Deal Index Rebalance Preview: Changes with Flow & Impact
  • March 2024 Nikkei 225 Rebal:  Socionext, Disco, and a Consumer Goods Stock, Still
  • Bud APAC (1876 HK): Nursing a Hangover; Now Comes a Passive Overhang
  • Why Is APR IPO Getting Delayed?
  • 44% of Korean Stocks Are Trading Below Book Value – FSC Wants to Improve This (Following Japan)
  • 2024 High Conviction: TSMC (2330 TT) Is Perfectly Poised for Revenue and FCF Growth Acceleration
  • TSMC. Roaring Into Year Of The Dragon
  • Identifying Specific Implementation Plans for Korea’s Low-PBR Improvement Policy
  • Genetron Holdings (GTH US): Clear Diagnosis
  • ASMedia Placement – Momentum Has Been Strong, but an Overhang Exists

KRX New Deal Index Rebalance Preview: Changes with Flow & Impact

By Brian Freitas

March 2024 Nikkei 225 Rebal:  Socionext, Disco, and a Consumer Goods Stock, Still

By Travis Lundy

  • No changes in the rankings since last time. Socionext (6526), Disco (6146), and a Consumer Goods stock (Zozo (3092) top-ranked, Ryohin Keikaku (7453) a better choice) are ADDs.
  • The DELETEs are still Takara Holdings (2531), Pacific Metals (5541), Sumitomo Osaka Cement (5232) with a dark horse candidate in Hitachi Zosen (7004) to replace Takara.
  • There is the upweight to Nitori (9843) but now less funkiness with Fast Retailing (9983). But it will continue being an interesting Nikkei 225 influence (for years to come).

Bud APAC (1876 HK): Nursing a Hangover; Now Comes a Passive Overhang

By Brian Freitas

Why Is APR IPO Getting Delayed?

By Douglas Kim

  • APR announced it will delay its IPO. Now, APR’s book building has been postponed to 2 to 8 February. The IPO price range remains the same.
  • The company has provided updated preliminary sales and operating profits for 2023 in the revised IPO prospectus. Revenue was a bit light but OP was better than expected in 4Q23.
  • Our base case valuation of APR is 370,809 won per share which represents an 85% upside from the high end of the bankers’ valuation range (200,000 won).

44% of Korean Stocks Are Trading Below Book Value – FSC Wants to Improve This (Following Japan)

By Douglas Kim

  • FSC Chairman Kim Joo-hyun mentioned that too many companies in Korea are trading below book value and the FSC plans to implement changes to improve upon this issue. 
  • According to Korea Exchange, 1,111 companies out of total listed in KOSPI and KOSDAQ in Korea (2,538) are trading at below 1x book value (PBR) (liquidation value). 
  • According to the Capital Group, about 39% of companies in the TOPIX trade below book value, compared to just 5% for companies in the S&P 500 Index. 

2024 High Conviction: TSMC (2330 TT) Is Perfectly Poised for Revenue and FCF Growth Acceleration

By Wium Malan, CFA

  • TSMC looks set for a significant recovery in top-line growth in 2024F, driven by continued faster-than-expected demand for its 3nm volume production leading to significantly improved overall ASP.
  • This should be supported by a concurrent improvement in the inventory cycle at major clients, helping recover TSMC’s utilisation back to historic norms.
  • Lower capital intensity, improving internal inventory levels, and accelerating top-line growth should all combine to drive record levels of Free Cash Flow generation during 2024F.

TSMC. Roaring Into Year Of The Dragon

By William Keating

  • Q423 revenues of $19.62 billion, at the high end of guidance, up 13.8% QoQ and down 1.5% YoY. Net profit margin of 38.2% results in net income of ~$7.5 billion.
  • FY23 revenues of $69.3 billion, down 8.7% YoY, only the second such down year since 2005
  • Bullish FY24 forecast for >20% YoY growth sends share price soaring in overnight trading. 

Identifying Specific Implementation Plans for Korea’s Low-PBR Improvement Policy

By Sanghyun Park

  • The Korean government has introduced policies ahead of April’s elections, with a recent notable announcement addressing the “Korea Discount” by enhancing low PBR stock valuations.
  • A leading proposal involves creating an index of low PBR companies. There are hints of listing ETFs tracking this index, with potential directives compelling pension funds to invest.
  • Identifying early inclusions is vital. High-likelihood candidates are low PBR large caps with maintained earnings, dividends/share buyback potential, including Hyundai Dept, E-Mart, Hyundai Steel, IBK, Korean Re, & DL E&C.

Genetron Holdings (GTH US): Clear Diagnosis

By David Blennerhassett

  • Back on the 11th October 2023, Genetron Holdings Ltd (GTH US), a precision oncology platform, entered into a definitive take-private transaction, at $4.08/ADS, a 15% premium to undisturbed.
  • The EGM for shareholders to vote on the transaction will be held on the 21 February. The record date is the 9 Feb.
  • This merger requires approval from at least two-thirds of the votes cast, and 59.7% are supportive. Trading at a gross spread of 7.7%. This is a clean deal.

ASMedia Placement – Momentum Has Been Strong, but an Overhang Exists

By Clarence Chu

  • WT Microelectronics (3036 TT) is looking to raise US$256m from selling half of its stake in Asmedia Technology (5269 TT).
  • The deal wouldn’t be a very large one to process at just 3.4 days of ASMedia’s ADV.
  • Although, the selldown doesn’t appear to be particularly well flagged. The remaining WT Microelectronics’ stake will also create an overhang on ASMedia’s share price as well.

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Jan 20
0

Daily Brief Energy/Materials: Hyundai Steel, Tata Steel Ltd, Franco-Nevada , VAALCO Energy and more

By | Daily Briefs, Energy & Materials Sector

In today’s briefing:

  • Identifying Specific Implementation Plans for Korea’s Low-PBR Improvement Policy
  • Weekly Wrap – 19 Jan 2024
  • Franco-Nevada Corp (FNV) – Friday, Oct 20, 2023
  • VAALCO Energy (NYSE: EGY): Good operational performance in 4Q23

Identifying Specific Implementation Plans for Korea’s Low-PBR Improvement Policy

By Sanghyun Park

  • The Korean government has introduced policies ahead of April’s elections, with a recent notable announcement addressing the “Korea Discount” by enhancing low PBR stock valuations.
  • A leading proposal involves creating an index of low PBR companies. There are hints of listing ETFs tracking this index, with potential directives compelling pension funds to invest.
  • Identifying early inclusions is vital. High-likelihood candidates are low PBR large caps with maintained earnings, dividends/share buyback potential, including Hyundai Dept, E-Mart, Hyundai Steel, IBK, Korean Re, & DL E&C.

Weekly Wrap – 19 Jan 2024

By Leonard Law, CFA

Lucror Analytics Weekly Wraps provide an overview of all Morning Views comments and reports published by our analyst team in the past week, and also showcase a list of the most-read reports.

In this Insight:

  1. Lippo Malls Indonesia Retail Trust
  2. Vedanta Resources
  3. ReNew Energy Global
  4. China Jinmao Holdings
  5. Geely Auto

and more…

Franco-Nevada Corp (FNV) – Friday, Oct 20, 2023

By Value Investors Club

Key points (machine generated)

  • Franco-Nevada Corporation is a gold-focused royalty and streaming company operating in the mining and energy sectors.
  • Despite not having any imminent corporate catalysts, it is considered a top-tier investment choice for exposure to precious metals.
  • Managed by a world-class operator, the company is expected to outperform other large-cap precious metals stocks and physical gold. Its involvement in the sale of crude oil, natural gas, and natural gas liquids adds to its attractiveness for investors in the current economic climate.

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.

VAALCO Energy (NYSE: EGY): Good operational performance in 4Q23

By Auctus Advisors

  • • 4Q23 WI production of 23.1-23.5 mboe/d was comfortably within the management guidance of 22.9-24.6 mboe/d. • VAALCO held >US$120 mm in cash and cash equivalents at the end of December, up from US$103 mm at the end of September.
  • The YE23 cash position was impacted by the fact the Egyptian sales during 4Q23 were for the domestic market rather than exported (domestic sales carry a lower value than exported cargoes).

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Jan 20
0

Daily Brief TMT/Internet: Taiwan Semiconductor (TSMC), Asmedia Technology, Taiwan Semiconductor (TSMC) – ADR, Travelsky Technology Ltd H, IndiaMart, iShares MSCI ACWI ETF, Softbank Group and more

By | Daily Briefs, TMT/Internet

In today’s briefing:

  • TSMC. Roaring Into Year Of The Dragon
  • ASMedia Placement – Momentum Has Been Strong, but an Overhang Exists
  • Taiwan Dual-Listings Monitor: TSMC ADRs Outpace Local, Extreme Spread; ChipMOS Good Long Level
  • Travelsky (696 HK | BUY | TP:HKD9.92): Forget 2023, Think of 2024-25 Which Will Be Much Better
  • Indiamart Intermesh (INDIAMART) – Friday, Oct 20, 2023
  • Pause/Pullback Underway; Downgrading Europe and Mexico; Buys in Services, Tech, Comm, Healthcare
  • Softbank (9984 JP): Big Fat NAV Discount, but Headwinds Outweigh Tailwinds Going Forward

TSMC. Roaring Into Year Of The Dragon

By William Keating

  • Q423 revenues of $19.62 billion, at the high end of guidance, up 13.8% QoQ and down 1.5% YoY. Net profit margin of 38.2% results in net income of ~$7.5 billion.
  • FY23 revenues of $69.3 billion, down 8.7% YoY, only the second such down year since 2005
  • Bullish FY24 forecast for >20% YoY growth sends share price soaring in overnight trading. 

ASMedia Placement – Momentum Has Been Strong, but an Overhang Exists

By Clarence Chu

  • WT Microelectronics (3036 TT) is looking to raise US$256m from selling half of its stake in Asmedia Technology (5269 TT).
  • The deal wouldn’t be a very large one to process at just 3.4 days of ASMedia’s ADV.
  • Although, the selldown doesn’t appear to be particularly well flagged. The remaining WT Microelectronics’ stake will also create an overhang on ASMedia’s share price as well.

Taiwan Dual-Listings Monitor: TSMC ADRs Outpace Local, Extreme Spread; ChipMOS Good Long Level

By Vincent Fernando, CFA

  • TSMC: Stock Prices Soared After Reporting Earnings, But ADR Rose Higher… Now +12.4% Premium, Shortable Level
  • ASE: ADR Spread Has Rebounded Substantially, Now +8.6%. Not Yet at Short Levels.
  • ChipMOS: ADR Spread Drops to -2.2%, Good Level to Go Long.

Travelsky (696 HK | BUY | TP:HKD9.92): Forget 2023, Think of 2024-25 Which Will Be Much Better

By Mohshin Aziz

  • Travelsky Technology Ltd H (696 HK) (TravelSky) issued its 2023 operating statistics and a profit warning that is far below market expectations, the share price has plunged by 36% 
  • Our analysis suggests that staff cost, commission, and systems costs have soared. This will be contained when traffic accelerates and absorbs these fixed cost items 
  • Our target price of HKD9.92 (+21% UPSIDE) is based on 2024 PE 14.8x (1SD below mean). Keep an eye, worthwhile trade, due for a bounce    

Indiamart Intermesh (INDIAMART) – Friday, Oct 20, 2023

By Value Investors Club

Key points (machine generated)

  • IndiaMart is India’s largest online B2B marketplace with a market cap of $2 billion.
  • The company has a 60% market share of B2B e-commerce in India, indicating a large potential for growth.
  • IndiaMart benefits from a negative working capital business model, upfront supplier subscription payments, and a net cash balance sheet. It also has the option to invest in new business lines to expand its monetization opportunities. Despite limited advertising spend, the platform attracts over 1 billion in traffic.

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.

Pause/Pullback Underway; Downgrading Europe and Mexico; Buys in Services, Tech, Comm, Healthcare

By Joe Jasper

  • We see global equities (MSCI ACWI) going through a pause/pullback amid short-term breakouts in the U.S. dollar (DXY) and global sovereign 10-year yields.
  • A rising DXY and climbing yields is a near-term headwind, and we could continue to see more choppy price action in the weeks ahead.
  • With that said, as long as the DXY remains below $106, the 10-year Treasury yield remains below 4.35%, and ACWI-US is above $98, we would view pullbacks as buying opportunities.

Softbank (9984 JP): Big Fat NAV Discount, but Headwinds Outweigh Tailwinds Going Forward

By Victor Galliano

  • SoftBank group’s headline NAV discount is over 50%, factoring in the T-Mobile shares windfall at December-end
  • SoftBank Corp is looking to IPO digital payments company PayPay, which should also be a positive driver for SoftBank Group shares going forward, but only a marginal one
  • Arm shares have been defying gravity, but we see downside risk going forward, as well as questions over SVF1 and SVF2 private company valuations; and the threat of JPY appreciation

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Jan 20
0

Daily Brief Industrials: Limbach Holdings , Marel HF and more

By | Daily Briefs, Industrials

In today’s briefing:

  • Limbach Holdings Inc (LMB) – Friday, Oct 20, 2023
  • Meaty Target

Limbach Holdings Inc (LMB) – Friday, Oct 20, 2023

By Value Investors Club

Key points (machine generated)

  • IBP is a leading roll-up strategist in the building industry, having executed over 100 acquisitions in a short period of time.
  • The company leverages its national platform, supplier relationships, and operational expertise to enhance value while keeping the acquired companies’ local brands, talent, and customer relationships intact.
  • IBP’s successful acquisition strategy, along with its strong commitment to timely delivery and solid financial position, has helped the company become a key player in the insulation industry.

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.

Meaty Target

By Jesus Rodriguez Aguilar

  • Marel HF (MARL IR) announced a third proposal from John Bean Technologies (JBT US) for a cash and shares offer, equivalent €3.60/share, to be launched in Q1, with 24.7% irrevocable undertakings.
  • There is strong market growth potential, due to growing middle-class demanding a higher proportion of animal protein in their diet. The overall sector, despite global economic woes, seems piping hot.
  • My base-case fair value estimate is €3.54 (9.0% WACC, 2% implied perpetuity growth rate). The median IBES consensus TP is €3.50. On this basis, the offer price seems fair. Buy.

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Jan 20
0

Daily Brief Health Care: Genetron Holdings Ltd, GUPPY’s Inc and more

By | Daily Briefs, Healthcare

In today’s briefing:

  • Genetron Holdings (GTH US): Clear Diagnosis
  • Medley (4480) To Buy Out Guppy’s (5127) At ¥3,250 (9.4x Aug26 EV/FCF)

Genetron Holdings (GTH US): Clear Diagnosis

By David Blennerhassett

  • Back on the 11th October 2023, Genetron Holdings Ltd (GTH US), a precision oncology platform, entered into a definitive take-private transaction, at $4.08/ADS, a 15% premium to undisturbed.
  • The EGM for shareholders to vote on the transaction will be held on the 21 February. The record date is the 9 Feb.
  • This merger requires approval from at least two-thirds of the votes cast, and 59.7% are supportive. Trading at a gross spread of 7.7%. This is a clean deal.

Medley (4480) To Buy Out Guppy’s (5127) At ¥3,250 (9.4x Aug26 EV/FCF)

By Travis Lundy

  • Medley (4480 JP) operates recruitment platforms in healthcare, elsewhere. GUPPY’s Inc (5127 JP) does too. They also offer exam prep for two niches where they have super-high market share.
  • GUPPY’s was listed 18mos ago, and the founder wants out. The deal is a nice premium (+86%) but it isn’t as generous a deal as it could be. 
  • That said, the shareholder structure looks like this deal gets done pretty easily. 

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

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The Smartkarma Preview Pass is your entry to the Independent Investment Research Network

  • ✓ Unlimited Research Summaries
  • ✓ Personalised Alerts
  • ✓ Custom Watchlists
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Jan 20
0

Daily Brief Industrials: Limbach Holdings , Marel HF and more

By | Daily Briefs, Industrials

In today’s briefing:

  • Limbach Holdings Inc (LMB) – Friday, Oct 20, 2023
  • Meaty Target

Limbach Holdings Inc (LMB) – Friday, Oct 20, 2023

By Value Investors Club

Key points (machine generated)

  • IBP is a leading roll-up strategist in the building industry, having executed over 100 acquisitions in a short period of time.
  • The company leverages its national platform, supplier relationships, and operational expertise to enhance value while keeping the acquired companies’ local brands, talent, and customer relationships intact.
  • IBP’s successful acquisition strategy, along with its strong commitment to timely delivery and solid financial position, has helped the company become a key player in the insulation industry.

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.

Meaty Target

By Jesus Rodriguez Aguilar

  • Marel HF (MARL IR) announced a third proposal from John Bean Technologies (JBT US) for a cash and shares offer, equivalent €3.60/share, to be launched in Q1, with 24.7% irrevocable undertakings.
  • There is strong market growth potential, due to growing middle-class demanding a higher proportion of animal protein in their diet. The overall sector, despite global economic woes, seems piping hot.
  • My base-case fair value estimate is €3.54 (9.0% WACC, 2% implied perpetuity growth rate). The median IBES consensus TP is €3.50. On this basis, the offer price seems fair. Buy.

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

Sign Up for Free

The Smartkarma Preview Pass is your entry to the Independent Investment Research Network

  • ✓ Unlimited Research Summaries
  • ✓ Personalised Alerts
  • ✓ Custom Watchlists
  • ✓ Company Data and News
  • ✓ Events & Webinars
Sign Up for Free