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Smartkarma Daily Briefs

Jan 01
0

Daily Brief Japan: Lifenet Insurance Company, TSE Tokyo Price Index TOPIX, Misumi Group and more

By | Daily Briefs, Japan

In today’s briefing:

  • Lifenet: Oasis Management Is Now Another Major Shareholder Besides Effissimo
  • The Objective of an MBO Is Not to Strip Bothersome Activist Investors of Their Equity Interests
  • Misumi Group (9962 JP): Heads up for 3Q Results in Late January

Lifenet: Oasis Management Is Now Another Major Shareholder Besides Effissimo

By Alec Tseung

  • Oasis Management has become a major shareholder in Lifenet in November. Together with another activist investor, Effissimo Capital (the largest shareholder), they now control >30% of the company.
  • Company announced some new partnerships/initiatives to drive growth but they don’t seem to be materially different from what it has been doing to turn around its declining VoNB.
  • Unless we can see a sustained trend of improving VoNB, it’s difficult to justify the premium valuation vs. the other more established peer.

The Objective of an MBO Is Not to Strip Bothersome Activist Investors of Their Equity Interests

By Aki Matsumoto

  • Rather than “management with awareness of stock price,” the question is whether management is carrying out its duties toward “the goal of increasing shareholder interests,” to put it more accurately.
  • In determining TOB price, the question is whether independent committee was established, whether that committee actually functioned, and whether the directors performed their duties in the best interests of shareholders.
  • The real objective of an MBO is to restart the company for a sustainable expansion of corporate value, not to rip off the equity stake of a bothersome activist investor.

Misumi Group (9962 JP): Heads up for 3Q Results in Late January

By Scott Foster

  • The gradual upward trend in monthly sales, which has continued through November, has further to go in our estimation. 
  • At 22x EPS guidance for FY Mar-24, the shares are at the low end of their 5-year P/E range.
  • Guidance remains unchanged. 3Q results are due to be announced at the end of January

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Jan 01
0

Daily Brief Indonesia: Criterium Energy and more

By | Daily Briefs, Indonesia

In today’s briefing:

  • Criterium Energy Ltd (TSX-V: CEQ): Sale of Bulu unlocks value and transforms the company’s balance sheet
  • Criterium Energy Ltd (TSX-V: CEQ): Further improvements on Mont d’Or transaction terms

Criterium Energy Ltd (TSX-V: CEQ): Sale of Bulu unlocks value and transforms the company’s balance sheet

By Auctus Advisors

  • • Criterium has signed a letter of intent to sell its 42.5% interest in Bulu for US$7.75 mm. • The company acquired the interest in Bulu for US$1.6 mm. • Criterium has previously announced a C$18.9 mm capital raise comprising a C$12.2 mm (~US$9 mm) convertible debt and C$6.7 mm (~US$4.5 mm) of new equity.

Criterium Energy Ltd (TSX-V: CEQ): Further improvements on Mont d’Or transaction terms

By Auctus Advisors

  • • The completion payment by Criterium on the closing of the Mont d’Or acquisition has been reduced by 60% to US$4.5 mm. • Only US$4.1 mm will now be repaid to Mont d’Or debt holders on completing the acquisition (US$9.6 mm previously) with US$0.5 mm being written down (US$4.3 mm previously). • On completion of the acquisition, Criterium is expected to hold US$25 mm of debt and US$8 mm in cash (including US$4.5 mm of new equity) resulting in US$17 mm in net debt (excluding US$3.0 mm of Mont d’Or residual debt to be converted into equity in 2025).

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Jan 01
0

Daily Brief United States: NVIDIA Corp, Marvell Technology , Gracell Biotechnologies Inc, Akamai Technologies, Analog Devices, American International Group, Best Buy Co Inc, BILL Holdings , AppLovin and more

By | Daily Briefs, United States

In today’s briefing:

  • Nvidia Vs. Taiwan Short Basket: Hedge Working; CES 2024 Likely Positive for Nvidia Vs. Basket
  • Marvell Technology Inc.: AI and Cloud Growth – Are They the New Tech Leaders? – Major Drivers
  • China Healthcare Weekly (Dec.31)-New Medical Device Policy, AstraZeneca to Acquire Gracell, PD-1+ADC
  • Akamai Technologies Inc.: Paving the Way for a Safer
  • American International Group (AIG): Acquisition of UK Protection Business & Other Major Drivers
  • Analog Devices Inc.: Revolutionizing AI ML Systems with Innovative Power Solutions! – Major Drivers
  • American Airlines Group: Additions of New Routes & Other Major Drivers
  • Best Buy Co. Inc.: The Strategy Driving Their Membership Program Success! – Major Drivers
  • BILL Holdings Inc.: Transforming Financial Operations in the Face of Macroeconomic Challenges! – Major Drivers
  • AppLovin Corporation: AI-Driven Tech Powering Advertising – A Deep Dive! – Major Drivers

Nvidia Vs. Taiwan Short Basket: Hedge Working; CES 2024 Likely Positive for Nvidia Vs. Basket

By Vincent Fernando, CFA

  • Long Nvidia vs. Short Basket of Taiwan AI Concept Stocks — The trade has held steady since our last piece with Nvidia outperforming the shorts slightly.
  • CES 2024 will be held January 9th to 12th. It will showcase AI expanding into a wide range of Edge AI applications such as home appliances and PCs.
  • One can maintain the L/S trade into CES 2024 given that the Taiwan AI Short Basket constituents are unlikely to be beneficiaries of positive news flow from the event.

Marvell Technology Inc.: AI and Cloud Growth – Are They the New Tech Leaders? – Major Drivers

By Baptista Research

  • Marvell Technology managed to surpass Wall Street’s revenue and earnings expectations, achieving a commendable revenue of $1.42 billion, marking a 6% sequential growth above the midpoint of the provided guidance.
  • The data center end market witnessed revenue of $556 million in the third quarter, surpassing expectations, mainly driven by robust AI revenue.
  • Despite the anticipated decline in enterprise on-premise revenue, Marvell’s diverse product portfolio, including PAM4 optical products and Teralynx Ethernet switches, contributed to the broad-based growth.

China Healthcare Weekly (Dec.31)-New Medical Device Policy, AstraZeneca to Acquire Gracell, PD-1+ADC

By Xinyao (Criss) Wang

  • Ministry of Finance and National Health Commission issued new policy strictly prohibiting public hospitals from borrowing to purchase medical equipment, which will change the investment logic of medical device sector.
  • “PD-1+ADC” is expected to replace “PD-1+chemotherapy” as the first-line standard therapy. This will be a huge market. So, good story of ADC CDMO (such as WuXi XDC) would continue.
  • The inspiration that AstraZeneca’s acquisition of Gracell brings to investors is IPO isn’t the only way for exit.Being acquired is also good, which will become more important in the future.

Akamai Technologies Inc.: Paving the Way for a Safer

By Baptista Research

  • Akamai Technologies, Inc. exceeded analyst expectations in terms of revenue as well as earnings, with a revenue surge to $965 million, marking a substantial 9% year-over-year growth.
  • The non-GAAP operating margin stood impressively at 31%, while non-GAAP earnings per share reached $1.63, reflecting a remarkable 29% year-over-year increase.
  • Akamai’s security segment experienced a notable 20% year-over-year growth in Q3.

American International Group (AIG): Acquisition of UK Protection Business & Other Major Drivers

By Baptista Research

  • AIG delivered mixed results for the previous quarter, with revenues well below analyst expectations, but managed an earnings beat.
  • In the third quarter, AIG continued to achieve remarkable results, demonstrating significant progress in strategic, operational, and financial objectives across the organization.
  • They had adjusted after-tax income of $1.2 billion, a 92% YoY increase, and consolidated net investment income reaching $3.3 billion, a 29% YoY increase.

Analog Devices Inc.: Revolutionizing AI ML Systems with Innovative Power Solutions! – Major Drivers

By Baptista Research

  • Analog Devices, Inc. delivered a mixed set of results in its most recent result, with revenues above Wall Street expectations but below-par earnings, reaching $2.7 billion, primarily fueled by substantial growth in the automotive sector.
  • Amid challenging times, ADI’s design win pipeline witnessed double-digit growth, buoyed by sustained momentum in Maxim revenue synergies, surpassing initial expectations.
  • In the consumer sector, ADI secured multiple power management sockets in portable applications, showcasing the success of its acquisition strategy.

American Airlines Group: Additions of New Routes & Other Major Drivers

By Baptista Research

  • American Airlines Group delivered mixed results for the previous quarter, with revenues below the analyst consensus.
  • The financial results for the third quarter showcased high revenues of approximately $13.5 billion, driven by a resilient demand environment and significant travel rewards program revenue.
  • American Airlines experienced steady domestic demand, with international demand fueling revenue growth, particularly in the Atlantic, Caribbean, and Central America regions.

Best Buy Co. Inc.: The Strategy Driving Their Membership Program Success! – Major Drivers

By Baptista Research

  • Best Buy Co., Inc. delivered mixed results for the previous quarter, with revenues well below analyst expectations but managed earnings beat.
  • The company disclosed a 6.9% decline in comparable sales, a tad below the projected figure, due to softened consumer demand during the quarter.
  • The third quarter witnessed growth in the paid membership base and enhanced customer satisfaction across various service offerings.

BILL Holdings Inc.: Transforming Financial Operations in the Face of Macroeconomic Challenges! – Major Drivers

By Baptista Research

  • BILL Holdings, Inc. surpassed the revenue expectations as well as the earnings expectations of Wall Street, marking a milestone with Q1 revenue surpassing $300 million, a remarkable 33% YoY increase.
  • Despite surpassing expectations and witnessing strong customer adoption, the company faced growing macroeconomic pressures toward the end of the quarter, persisting into October.
  • In this report, we have carried out a fundamental analysis of the historical financial statements of the company.

AppLovin Corporation: AI-Driven Tech Powering Advertising – A Deep Dive! – Major Drivers

By Baptista Research

  • AppLovin Corporation delivered an all-around beat in the previous quarter, experiencing substantial year-over-year and quarter-over-quarter revenue growth.
  • As part of the portfolio optimization program, the apps sector marked its first quarter of quarter-over-quarter revenue growth, generating a total revenue of $864 million, surpassing guidance with an adjusted EBITDA of $490 million, up 63% year-over-year.
  • In the app segment, revenue grew 5% sequentially to $360 million, representing the initial quarter of growth since the portfolio optimization initiative began.

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Jan 01
0

Daily Brief China: Weiqiao Textile Co, Vinda International, Alibaba (ADR), Baidu, NetEase and more

By | China, Daily Briefs

In today’s briefing:

  • Merger Arb Mondays (01 Jan) – Weiqiao Textile, IRC, IJTT, JSR, Shinko Electric, Hollysys, OreCorp
  • (Mostly) Asia M&A, Dec 2023: Vinda, Adbri, Perpetual, CPMC, Sigma Health, Shinko Electric
  • Alibaba Group Holding Limited: Can Their Upgraded AI Model To Challenge Microsoft & Amazon? – Major Drivers
  • Baidu Inc.: A Game-Changing Strategy That’s Shaping AI’s Future! – Major Drivers
  • NetEase Inc.: Inside the Strategies Fueling Their Gaming Industry Takeover! – Major Drivers

Merger Arb Mondays (01 Jan) – Weiqiao Textile, IRC, IJTT, JSR, Shinko Electric, Hollysys, OreCorp

By Arun George

(Mostly) Asia M&A, Dec 2023: Vinda, Adbri, Perpetual, CPMC, Sigma Health, Shinko Electric

By David Blennerhassett

  • For the month of December 2023, 16 new deals (firm and non-binding) were discussed on Smartkarma with an overall announced deal size of ~US$10bn.
  • The average premium for the new deals announced (or first discussed) in December was 44.7%. The average YTD is 39% (117 deals).
  • This compares to the average premium for all deals in 2022 (106 deals), 2021 (165 deals), 2020 (158 deals), and 2019 (145 deals) of 41%, 33%, 31%, and 31% respectively.

Alibaba Group Holding Limited: Can Their Upgraded AI Model To Challenge Microsoft & Amazon? – Major Drivers

By Baptista Research

  • Alibaba Group Holding Limited delivered a mixed set of results for the previous quarter, with revenues below the analyst consensus.
  • For Taobao and Tmall Group, the emphasis lies on user-centric strategies, universal market coverage, multi-tiered consumer engagement, and maintaining price competitiveness.
  • The Local Services Group concentrates on location-based technology services, with Amap focusing on mobility and Ele.me on-demand services.

Baidu Inc.: A Game-Changing Strategy That’s Shaping AI’s Future! – Major Drivers

By Baptista Research

  • Baidu managed to exceed analyst expectations in terms of revenue as well as earnings in the most recent quarter sustaining solid revenue, profit, and cash flow.
  • The strategic reinvention of the product portfolio with ERNIE and ERNIE bot played a pivotal role in achieving these results.
  • Baidu successfully launched EB4 ahead of expectations, attributing it to a unique end-to-end 4-layer AI infrastructure and valuable user feedback.

NetEase Inc.: Inside the Strategies Fueling Their Gaming Industry Takeover! – Major Drivers

By Baptista Research

  • NetEase, Inc. delivered a positive result and managed an all-around beat last quarter.
  • NetEase’s classic legacy titles and newly launched games played a pivotal role in expanding its global footprint.
  • Looking ahead, NetEase anticipates the launch of Where Winds Meet, a highly anticipated AAA martial arts-themed action-adventure game.

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Jan 01
0

Daily Brief ESG: The Objective of an MBO Is Not to Strip Bothersome Activist Investors of Their Equity Interests and more

By | Daily Briefs, ESG

In today’s briefing:

  • The Objective of an MBO Is Not to Strip Bothersome Activist Investors of Their Equity Interests

The Objective of an MBO Is Not to Strip Bothersome Activist Investors of Their Equity Interests

By Aki Matsumoto

  • Rather than “management with awareness of stock price,” the question is whether management is carrying out its duties toward “the goal of increasing shareholder interests,” to put it more accurately.
  • In determining TOB price, the question is whether independent committee was established, whether that committee actually functioned, and whether the directors performed their duties in the best interests of shareholders.
  • The real objective of an MBO is to restart the company for a sustainable expansion of corporate value, not to rip off the equity stake of a bothersome activist investor.

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  • ✓ Custom Watchlists
  • ✓ Company Data and News
  • ✓ Events & Webinars
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Jan 01
0

Daily Brief Thematic (Sector/Industry): Japan Weekly | Topix +25% for the Year and more

By | Daily Briefs, Thematic (Sector/Industry)

In today’s briefing:

  • Japan Weekly | Topix +25% for the Year
  • China Precious Metals Buck Weakening Materials Trend

Japan Weekly | Topix +25% for the Year

By Mark Chadwick

  • Market Performance: Topix achieved a third consecutive weekly gain, rising by +1.3% to close at 2,366. Defensive sectors, particularly healthcare, telecoms, and utilities, outperformed
  • Stock Highlights: Nihon Kohden emerged as the top performer with a +19% gain, fuelled by ValueAct Capital Management’s significant shareholding. Conversely, shippers experienced declines.
  • Annual Overview: Topix stood out as one of the best-performing global markets for the year, boasting a remarkable +25% gain. Corporate governance reforms, coupled with yen weakness, were pivotal.

China Precious Metals Buck Weakening Materials Trend

By Steven Holden

  • Rotation in to China Precious Metals stocks pushes ownership to record levels, bucking the trend of overall Materials sector decline.
  • Zijin Mining Group soars to new ownership highs, attracting funds such as RWC, Mirae and TT International over the course of 2023.
  • Second tier stocks showing signs of life, though remain lightly held among investors.

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Jan 01
0

Daily Brief Event-Driven: Merger Arb Mondays (01 Jan) – Weiqiao Textile and more

By | Daily Briefs, Event-Driven

In today’s briefing:

  • Merger Arb Mondays (01 Jan) – Weiqiao Textile, IRC, IJTT, JSR, Shinko Electric, Hollysys, OreCorp
  • (Mostly) Asia M&A, Dec 2023: Vinda, Adbri, Perpetual, CPMC, Sigma Health, Shinko Electric

Merger Arb Mondays (01 Jan) – Weiqiao Textile, IRC, IJTT, JSR, Shinko Electric, Hollysys, OreCorp

By Arun George

(Mostly) Asia M&A, Dec 2023: Vinda, Adbri, Perpetual, CPMC, Sigma Health, Shinko Electric

By David Blennerhassett

  • For the month of December 2023, 16 new deals (firm and non-binding) were discussed on Smartkarma with an overall announced deal size of ~US$10bn.
  • The average premium for the new deals announced (or first discussed) in December was 44.7%. The average YTD is 39% (117 deals).
  • This compares to the average premium for all deals in 2022 (106 deals), 2021 (165 deals), 2020 (158 deals), and 2019 (145 deals) of 41%, 33%, 31%, and 31% respectively.

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Jan 01
0

Daily Brief Equity Bottom-Up: Nvidia Vs. Taiwan Short Basket: Hedge Working; CES 2024 Likely Positive for Nvidia Vs. Basket and more

By | Daily Briefs, Equity Bottom-Up

In today’s briefing:

  • Nvidia Vs. Taiwan Short Basket: Hedge Working; CES 2024 Likely Positive for Nvidia Vs. Basket
  • Lifenet: Oasis Management Is Now Another Major Shareholder Besides Effissimo
  • Taiwan Dual-Listings Monitor: TSMC Premium Remains High; ADR Short Interest Spiked
  • Taiwan Tech Weekly: Stocks At Highs & Looking for Laggards? CES 2024 to Showcase Edge AI
  • Silicon Motion: Next Wave of the Memory Recovery; High-End NAND Prices More Than Doubled From Lows
  • Marvell Technology Inc.: AI and Cloud Growth – Are They the New Tech Leaders? – Major Drivers
  • Misumi Group (9962 JP): Heads up for 3Q Results in Late January
  • China Healthcare Weekly (Dec.31)-New Medical Device Policy, AstraZeneca to Acquire Gracell, PD-1+ADC
  • Alteryx Inc.: Leading the AI Revolution – Can They Sustain the Momentum? – Major Drivers
  • Alibaba Group Holding Limited: Can Their Upgraded AI Model To Challenge Microsoft & Amazon? – Major Drivers

Nvidia Vs. Taiwan Short Basket: Hedge Working; CES 2024 Likely Positive for Nvidia Vs. Basket

By Vincent Fernando, CFA

  • Long Nvidia vs. Short Basket of Taiwan AI Concept Stocks — The trade has held steady since our last piece with Nvidia outperforming the shorts slightly.
  • CES 2024 will be held January 9th to 12th. It will showcase AI expanding into a wide range of Edge AI applications such as home appliances and PCs.
  • One can maintain the L/S trade into CES 2024 given that the Taiwan AI Short Basket constituents are unlikely to be beneficiaries of positive news flow from the event.

Lifenet: Oasis Management Is Now Another Major Shareholder Besides Effissimo

By Alec Tseung

  • Oasis Management has become a major shareholder in Lifenet in November. Together with another activist investor, Effissimo Capital (the largest shareholder), they now control >30% of the company.
  • Company announced some new partnerships/initiatives to drive growth but they don’t seem to be materially different from what it has been doing to turn around its declining VoNB.
  • Unless we can see a sustained trend of improving VoNB, it’s difficult to justify the premium valuation vs. the other more established peer.

Taiwan Dual-Listings Monitor: TSMC Premium Remains High; ADR Short Interest Spiked

By Vincent Fernando, CFA

  • TSMC: 9.2% Premium — Spread Fell But Remains Historically High; Short Interest Spiked for ADRs
  • UMC: Trading at -1.2% Discount — Still Uncompelling, Wait for Lower Levels
  • ASE: Drops to 7% Premium — Could Soon Be at a Level to Go Long

Taiwan Tech Weekly: Stocks At Highs & Looking for Laggards? CES 2024 to Showcase Edge AI

By Vincent Fernando, CFA

  • Nvidia Vs. Taiwan Short Basket: Hedge Working; CES 2024 Likely Positive for Nvidia Vs. Basket
  • Silicon Motion: Next Wave of the Memory Recovery; High-End NAND Prices More Than Doubled From Lows
  • AI PC Reality Check: PC Upgrade Cycle Ahead, But Worth a 50% 1M Acer Rally? Long Dell Vs. Short Acer

Silicon Motion: Next Wave of the Memory Recovery; High-End NAND Prices More Than Doubled From Lows

By Vincent Fernando, CFA

  • Recent results from Micron and SK Hynix did not only signal a recovery for DRAM but also for NAND flash memory. Micron expects improving NAND pricing through CY2025E.
  • Latest data shows a surge in NAND pricing — 512GB NAND pricing is now up 116% from its 2023 lows.
  • Silicon Motion shares are down 5% over the last year. They have been weighed down by their terminated acquisition by MaxLinear, but now could offer a laggard play.

Marvell Technology Inc.: AI and Cloud Growth – Are They the New Tech Leaders? – Major Drivers

By Baptista Research

  • Marvell Technology managed to surpass Wall Street’s revenue and earnings expectations, achieving a commendable revenue of $1.42 billion, marking a 6% sequential growth above the midpoint of the provided guidance.
  • The data center end market witnessed revenue of $556 million in the third quarter, surpassing expectations, mainly driven by robust AI revenue.
  • Despite the anticipated decline in enterprise on-premise revenue, Marvell’s diverse product portfolio, including PAM4 optical products and Teralynx Ethernet switches, contributed to the broad-based growth.

Misumi Group (9962 JP): Heads up for 3Q Results in Late January

By Scott Foster

  • The gradual upward trend in monthly sales, which has continued through November, has further to go in our estimation. 
  • At 22x EPS guidance for FY Mar-24, the shares are at the low end of their 5-year P/E range.
  • Guidance remains unchanged. 3Q results are due to be announced at the end of January

China Healthcare Weekly (Dec.31)-New Medical Device Policy, AstraZeneca to Acquire Gracell, PD-1+ADC

By Xinyao (Criss) Wang

  • Ministry of Finance and National Health Commission issued new policy strictly prohibiting public hospitals from borrowing to purchase medical equipment, which will change the investment logic of medical device sector.
  • “PD-1+ADC” is expected to replace “PD-1+chemotherapy” as the first-line standard therapy. This will be a huge market. So, good story of ADC CDMO (such as WuXi XDC) would continue.
  • The inspiration that AstraZeneca’s acquisition of Gracell brings to investors is IPO isn’t the only way for exit.Being acquired is also good, which will become more important in the future.

Alteryx Inc.: Leading the AI Revolution – Can They Sustain the Momentum? – Major Drivers

By Baptista Research

  • Alteryx, Inc. delivered a solid result and managed an all-around beat in the last quarter, demonstrating commendable performance across various fronts.
  • These achievements were propelled by improved sales execution and heightened customer commitment to the Alteryx platform.
  • Alteryx’s Executive License Agreement (ELA) strategy, featuring simplified pricing and bundled features, resonated well with larger organizations.

Alibaba Group Holding Limited: Can Their Upgraded AI Model To Challenge Microsoft & Amazon? – Major Drivers

By Baptista Research

  • Alibaba Group Holding Limited delivered a mixed set of results for the previous quarter, with revenues below the analyst consensus.
  • For Taobao and Tmall Group, the emphasis lies on user-centric strategies, universal market coverage, multi-tiered consumer engagement, and maintaining price competitiveness.
  • The Local Services Group concentrates on location-based technology services, with Amap focusing on mobility and Ele.me on-demand services.

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Jan 01
0

Daily Brief Macro: China Property And The Demand For Commodities Puzzle and more

By | Daily Briefs, Macro

In today’s briefing:

  • China Property And The Demand For Commodities Puzzle
  • Saudi Arabia Special Report: A Tipping Point in EM Equity Allocations
  • Riding High: The Magnificent 7 Surge in Global Equity Funds

China Property And The Demand For Commodities Puzzle

By Robert Ciemniak

  • China’s crude steel production data behaved differently in the 2021-2023 downturn relative to new home sales and new starts, compared to the prior cycles.
  • The 40% drop (12M vs prior 12M) at the low point for new starts compares with around 10% for the crude steel.
  • In this note, we outline a few possible explanations, with some twists.

Saudi Arabia Special Report: A Tipping Point in EM Equity Allocations

By Steven Holden

  • 2023 Marks a Pivotal Year with EM Investors Significantly Increasing Holdings in the Saudi Market.
  • Despite Growing Interest, the Saudi Market Still Presents Ample Room for Broader Investor Engagement.
  • Saudi Arabia Remains Comparatively ‘under-Owned’ in Relation to Its Asian and LATAM Peers.

Riding High: The Magnificent 7 Surge in Global Equity Funds

By Steven Holden

  • The Magnificent 7, comprising Microsoft, Apple, Alphabet, Amazon, Meta, NVIDIA and Tesla  hit record high allocations among active Global equity funds this year.
  • Thought of as a standalone allocation, they represent the 2nd largest country weight, but also stand as a sizeable underweight versus the benchmark.
  • Microsoft’s dominates the group, NVIDIA has attracted a new investors this year, whilst Tesla has struggled to gain the same level of trust from active Global investors.

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Jan 01
0

Daily Brief Industrials: Misumi Group, Deere & Co, Emerson Electric Co, Hunt (Jb) Transprt Svcs, Jacobs Solutions , Lyft , Uber Technologies , Cummins Inc, Urban-Gro and more

By | Daily Briefs, Industrials

In today’s briefing:

  • Misumi Group (9962 JP): Heads up for 3Q Results in Late January
  • Deere & Company: Pricing Strategy & Market Positioning & Other Major Drivers
  • Emerson Electric Co.: Will The NI Acquisition Be A Game Changer? – Major Drivers
  • J.B. Hunt Transport Services: Will Their New Intermodal Service Revolutionize the Industry? – Major Drivers
  • Jacobs Solutions Inc: 4 Critical Insights From Their Latest Earnings! – Major Drivers
  • Lyft Inc.: Focus on Operational Excellence & Differentiated Products! – Major Drivers
  • Uber Technologies Inc.: Enhancing User Construct – Driving New Audience and Frequency! – Major Drivers
  • Cummins Inc.: Pioneering Telematics Software for Commercial Vehicles & Other Major Drivers – Financial Forecasts
  • UGRO: MJBiz Update: The Metamorphosis Continues; Reiterate Buy Rating & $8 PT

Misumi Group (9962 JP): Heads up for 3Q Results in Late January

By Scott Foster

  • The gradual upward trend in monthly sales, which has continued through November, has further to go in our estimation. 
  • At 22x EPS guidance for FY Mar-24, the shares are at the low end of their 5-year P/E range.
  • Guidance remains unchanged. 3Q results are due to be announced at the end of January

Deere & Company: Pricing Strategy & Market Positioning & Other Major Drivers

By Baptista Research

  • Deere & Co delivered an all-around beat in the previous quarter, with operating margins nearly reaching 22%, resulting in an impressive operating cash flow of nearly $12 billion.
  • This success was attributed to robust market demand, effective operational execution, and improved production costs across the various business sectors.
  • In small ag and turf, net sales in the fourth quarter were down 13%, totaling $3.094 billion, driven by lower shipment volumes.

Emerson Electric Co.: Will The NI Acquisition Be A Game Changer? – Major Drivers

By Baptista Research

  • Emerson Electric’s results were disappointing as they could not meet Wall Street’s revenue and earnings expectations.
  • Operational excellence was evident through the execution of the Emerson management system, driving remarkable results.
  • The underlying sales for 2023 grew by 10%, gross profit expanded by 330 basis points to 49%, and adjusted segment EBITA expanded by 220 basis points to 25%.

J.B. Hunt Transport Services: Will Their New Intermodal Service Revolutionize the Industry? – Major Drivers

By Baptista Research

  • J.B.
  • Hunt Transport Services delivered a disappointing set of results as it was unable to meet Wall Street’s revenue and earnings expectations.
  • Demand is slightly increasing in some end markets, focusing on delivering big and bulky items to customers’ homes.

Jacobs Solutions Inc: 4 Critical Insights From Their Latest Earnings! – Major Drivers

By Baptista Research

  • Jacobs Solution Inc. delivered a mixed set of results in its most recent quarter with revenues above Wall Street expectations but below-par earnings.
  • Emphasizing the strategic synergies and shared operational benefits, the combination aims to be tax-efficient for Jacobs’ shareholders, with an estimated $13 billion in annual revenue and significant cost synergies.
  • Post-transaction, Jacobs anticipates emerging as a well-capitalized critical infrastructure and sustainability leader, building on the records set in fiscal year 2023 for revenue and free cash flow generation.

Lyft Inc.: Focus on Operational Excellence & Differentiated Products! – Major Drivers

By Baptista Research

  • Lyft, Inc. delivered mixed results for the previous quarter, with revenues above the analyst consensus.
  • A pivotal development in the quarter was the significant rise in drivers opting for Lyft, resulting in an impressive 45% year-over-year surge in the hours spent using the platform, particularly in non-incentivized hours.
  • The emphasis on simplifying the earning process for drivers proved successful, maintaining a stable conversion rate even as rider demand escalated.

Uber Technologies Inc.: Enhancing User Construct – Driving New Audience and Frequency! – Major Drivers

By Baptista Research

  • Uber Technologies delivered a mixed result in the third quarter, with revenues below market expectations, but it surpassed the analyst consensus regarding earnings.
  • The company reported a notable acceleration in year-on-year trip growth, reaching 25% in Q3, surpassing the growth in gross bookings for the third consecutive quarter.
  • Additionally, adjusted EBITDA exceeded Q3 expectations, marking the first instance of the adjusted EBITDA margin surpassing 3%.

Cummins Inc.: Pioneering Telematics Software for Commercial Vehicles & Other Major Drivers – Financial Forecasts

By Baptista Research

  • Cummins delivered a mixed result in the recent quarter, with revenues above market expectations, but it failed to surpass the analyst consensus in terms of earnings.
  • Cummins reported strong demand across key markets and regions, with revenues reaching $8.4 billion, a 15% increase from the previous year.
  • In the quarter, Cummins successfully concluded the acquisition of two Faurecia commercial vehicle manufacturing plants in Columbus, Indiana, and Roermond, Netherlands.

UGRO: MJBiz Update: The Metamorphosis Continues; Reiterate Buy Rating & $8 PT

By Small Cap Consumer Research

  • We are reiterating our Buy rating, projections and $8 price target after meeting with urban-gro management at the MJBizCon show in Las Vegas.
  • As such, we remain excited over the potential for urban-gro to continue to materially grow and to begin registering positive EBITDA going forward.
  • As such, we reiterate our Buy rating and $8 price target for UGRO.

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