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Smartkarma Daily Briefs

Aug 03
0

Daily Brief Japan: Nintendo, TSE Tokyo Price Index TOPIX, Kameda Seika, Toyo Business Engineering, Dream Incubator, Stella Chemifa and more

By | Daily Briefs, Japan

In today’s briefing:

  • Nintendo (7974) | Game Over for Switch
  • Reducing Cross Shareholdings Is Necessary to Increase the Effectiveness of Engagement
  • Kameda Seika (2220 JP): Q1 FY03/25 flash update
  • Toyo Business Engineering (4828 JP): Q1 FY03/25 flash update
  • Dream Incubator (4310 JP): Q1 FY03/25 flash update
  • Stella Chemifa (4109 JP) – Showing Signs of Early Growth

Nintendo (7974) | Game Over for Switch

By Mark Chadwick

  • Nintendo missed Q1 with Operating income coming in at Y54.5b (-71% YoY) vs our estimate Y116b and the street at Y94b
  • Switch 2 hardware and software units sold are now suffering from buyer fatigue as consumers await the next-gen console
  • The stock will likely fall quite sharply over the next week. Looking for good buying opportunity in anticipation of the next console cycle

Reducing Cross Shareholdings Is Necessary to Increase the Effectiveness of Engagement

By Aki Matsumoto

  • Signs of change in companies that have improved their capital profitability and valuations can be seen in their policy shareholdings/total assets. 
  • Companies with fewer policy shareholdings, as measured by (policy shareholdings + equity holdings)/total assets, tend to have the best values for valuation, ROE, and ROA, and vice versa.
  • To measure the seriousness of reducing cross-shareholdings, as long as the company has the voting right of cross-shareholdings in retirement benefit trust, the deemed shares should be included in cross-shareholdings.

Kameda Seika (2220 JP): Q1 FY03/25 flash update

By Shared Research

  • Sales rose JPY1.8bn (8.3%) YoY, driven by higher sales in Domestic Rice Cracker, Overseas, and Food businesses.
  • Operating profit increased JPY375mn (53.6%) YoY, with significant profit growth in Domestic Rice Cracker and Food businesses.
  • Revised FY03/25 forecast projects sales of JPY102.0bn (+6.8% YoY) and net income of JPY3.8bn (+68.4% YoY).

Toyo Business Engineering (4828 JP): Q1 FY03/25 flash update

By Shared Research

  • Orders were JPY4.7bn (-4.5% YoY) and revenue was JPY5.0bn (+7.2% YoY), reaching a record high.
  • Operating profit was JPY1.2bn (+16.7% YoY) with an OPM increase of 1.9pp to 23.2%.
  • mcframe license revenue was JPY1.3bn (+22.0% YoY), breaking the record high for the Products business.

Dream Incubator (4310 JP): Q1 FY03/25 flash update

By Shared Research

  • In Q1 FY03/25, consolidated sales were JPY1.6bn (+38.5% YoY), with an operating profit of JPY48mn (JPY182mn loss in Q1 FY03/24).
  • Business Production segment reported sales of JPY1.1bn (+15.0% YoY) and an operating loss of JPY70mn (JPY107mn profit in Q1 FY03/24).
  • Venture Capital segment reported sales of JPY520mn (+145.3% YoY) and an operating profit of JPY378mn (JPY17mn loss in Q1 FY03/24).

Stella Chemifa (4109 JP) – Showing Signs of Early Growth

By Sessa Investment Research

  • Stella Chemifa Corporation (hereafter referred to as “the Company”) specializes in the manufacture and sale of hydrofluoric acid and fluorine- related compounds.
  • Hydrofluoric acid is highly functional and used in a wide range of applications, as well as being extremely toxic and corrosive, making it extremely difficult to handle.
  • In particular, ultra-high purity hydrofluoric acid is required for semiconductor manufacturing, and the Company, with its strong R&D and technological capabilities, has enjoyed great success in this area. 

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Aug 03
0

Daily Brief China: PCCW Ltd, AGBA Group Holding , Agile Property Holdings and more

By | China, Daily Briefs

In today’s briefing:

  • StubWorld: PCCW’s Premium To NAV Is Unsustainable
  • AGBA – Termination of coverage
  • Agile Group – ESG Report – Lucror Analytics

StubWorld: PCCW’s Premium To NAV Is Unsustainable

By David Blennerhassett

  • Continued stub losses are one thing. Ballooning PCCW Ltd (8 HK) parent debt is another. 
  • Preceding my comments on PCCW and HKT Ltd (6823 HK) are the current setup/unwind tables for Asia-Pacific Holdcos.
  • .These relationships trade with a minimum liquidity of US$1mn, and a % market capitalisation >20%.

AGBA – Termination of coverage

By Edison Investment Research

Edison Investment Research is terminating coverage on AGBA (AGBA) and Norcros (NXR). Please note you should no longer rely on any previous research or estimates for this company. All forecasts should now be considered redundant. Previously published reports can still be accessed via our website.

Agile Group – 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 Agile Group’s ESG as “Adequate”, in line with its Environmental and Social scores. That said, Governance is “Weak”. Controversies are “Immaterial” and Disclosure is “Adequate”.

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Aug 03
0

Most Read: Ryohin Keikaku, Exedy Corp, Nippon Express Holdings, Sun Corp, PCCW Ltd, WeRide Corp, Nintendo, KB Financial and more

By | Daily Briefs, Most Read

In today’s briefing:

  • Sep24 Nikkei 225 Rebal Final Predictions – Fastie Capped, Still 1 ADD, 1 DELETE, 1 Dark Horse and ?s
  • [JAPAN ACTIVISM] – Murakami Group Bigger and Bolder on Exedy – STILL Room to Run
  • Japan – Passive Selling in a Few Weeks & Shorts Build Up
  • Sun Corporation (6736 JP): Third’s Time a Charm for True Wind’s Final Offer
  • StubWorld: PCCW’s Premium To NAV Is Unsustainable
  • WeRide Pre-IPO – The Negatives – Losses Have Widened, Still in the Early Stages of Commercialization
  • Nintendo (7974) | Game Over for Switch
  • Absolute Principles of Stock Investment (주식투자절대원칙) – A Book Review
  • Alpha Generating Opportunities from the Corporate Value Up Disclosures on the KIND System
  • Hong Kong Buybacks Weekly (Aug 2nd): Aia, Meituan, Hsbc

Sep24 Nikkei 225 Rebal Final Predictions – Fastie Capped, Still 1 ADD, 1 DELETE, 1 Dark Horse and ?s

By Travis Lundy

  • The Sep 2024 Nikkei 225 Review base date is here. As before, I see one ADD, one DELETE, one capping, and one Very Dark Horse.
  • The rules are clear, but not. This causes confusion. There may be unwritten rules keeping the Very Dark Horse out til next time.
  • The Nikkei Index Team announced Fast Retailing (9983 JP) would be capped. I didn’t expect that now. That means $2.2bn+ of selling 30Sep and a reverse funding trade.

[JAPAN ACTIVISM] – Murakami Group Bigger and Bolder on Exedy – STILL Room to Run

By Travis Lundy

  • In late May, Toyota Group member Aisin (7259 JP) announced it would sell its 37% stake in Exedy Corp (7278 JP). The market dropped. But that was an opportunity. 
  • There was an announcement, a ToSTNeT-3 buyback, the offering, and more buyback to come. On 30 May, I said “Buy the deal, buy in the market. It’s cheap and vulnerable.”
  • Exedy is up 21% since. On 17 June, activist Murakami-san’s group went over 5%. Then they bought more. Now they have 15%. Or more. Still cheap. Still vulnerable. 

Japan – Passive Selling in a Few Weeks & Shorts Build Up

By Brian Freitas

  • Up to 12 stocks could be deleted from global passive portfolios in August. The deletion will lead to liquidity events where trackers will need to sell multiple days of ADV.
  • There has been a buildup of shorts on nearly all these stocks though the extent of the pre-positioning varies.
  • The increase in shorts is smaller than the estimated passive selling, though there is a fair amount of variability across the names. 

Sun Corporation (6736 JP): Third’s Time a Charm for True Wind’s Final Offer

By Arun George

  • True Wind has increased its partial offer for Sun Corp (6736 JP) to JPY5,500 and materially lowered the minimum number of shares to be purchased from 3.3m to 1.1m.  
  • True Wind’s previous two offers were a non-starter due to an unattractive price and an onerous minimum acceptance threshold. The final offer addresses both these issues. 
  • The offer will succeed due to the low minimum acceptance threshold and the 25% price uplift vs. the 19% value increase in the Cellebrite stake (since the offer announcement).

StubWorld: PCCW’s Premium To NAV Is Unsustainable

By David Blennerhassett

  • Continued stub losses are one thing. Ballooning PCCW Ltd (8 HK) parent debt is another. 
  • Preceding my comments on PCCW and HKT Ltd (6823 HK) are the current setup/unwind tables for Asia-Pacific Holdcos.
  • .These relationships trade with a minimum liquidity of US$1mn, and a % market capitalisation >20%.

WeRide Pre-IPO – The Negatives – Losses Have Widened, Still in the Early Stages of Commercialization

By Clarence Chu

  • WeRide Corp (WER CH) is looking to raise around US$300m in its upcoming US IPO.
  • WeRide provides autonomous driving products and services from L2 to L4 of driving automation.
  • In this note, we will talk about the not so positive aspects of the deal.

Nintendo (7974) | Game Over for Switch

By Mark Chadwick

  • Nintendo missed Q1 with Operating income coming in at Y54.5b (-71% YoY) vs our estimate Y116b and the street at Y94b
  • Switch 2 hardware and software units sold are now suffering from buyer fatigue as consumers await the next-gen console
  • The stock will likely fall quite sharply over the next week. Looking for good buying opportunity in anticipation of the next console cycle

Absolute Principles of Stock Investment (주식투자절대원칙) – A Book Review

By Douglas Kim

  • This insight is a book review of 주식투자절대원칙 (Absolute Principles of Stock Investment), which was written by a famous Korean retail investor called Park Young-Ok.
  • Park tries to capture his 30+ years of investing wisdom. I thought this book was excellent, especially because Park included a lot of local flavor of his mindset in investing. 
  • This insight provides 11 major highlights of the book ‘Absolute Principles of Stock Investment.’

Alpha Generating Opportunities from the Corporate Value Up Disclosures on the KIND System

By Douglas Kim

  • One of the key takeaways of the Corporate Value Up disclosures on the KIND system is that it could potentially lead to alpha generating investing opportunities. 
  • Since the last week of May, there have been 7 companies that provided specific Corporate Value up programs; (4 major financials) have outperformed KOSPI.
  • Companies such as KB Financial and Shinhan Financial that provide more meaningful Corporate Value Up action plans are likely to have greater impact on their share prices. 

Hong Kong Buybacks Weekly (Aug 2nd): Aia, Meituan, Hsbc

By Ke Yan, CFA, FRM

  • We analyze statistics on top repurchases over one week, one month, one quarter and one year periods ended on Aug 2nd based on HKEx daily reports.
  • In the past 7 days, the top 3 companies that repurchased the most shares from the market were AIA (1299 HK), Meituan (3690 HK), HSBC (5 HK).
  • In the past 30 days, the top 3 companies that repurchased the most shares from the market were Meituan (3690 HK), Tencent (700 HK), AIA (1299 HK).

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Aug 03
0

Daily Brief Industrials: Waste Connections , United Rentals, Fortive , Republic Services, Norcros PLC, Otis Worldwide and more

By | Daily Briefs, Industrials

In today’s briefing:

  • Waste Connections Inc.: Expansion of Core Solid Waste Pricing & Other Major Drivers
  • United Rentals Inc.: An Analysis Of Their Acquisition-Led Growth & Competitive Advantage! – Major Drivers
  • Fortive Corporation: How Is The Strategic De-risking in Advanced Market Engagements Working Out? – Major Drivers
  • Republic Services Group: Strategic Acquisitions
  • Norcros – Termination of coverage
  • Otis Worldwide Corporation: A Story Of Geographic Diversification and Regional Performance Optimization! – Major Drivers

Waste Connections Inc.: Expansion of Core Solid Waste Pricing & Other Major Drivers

By Baptista Research

  • Waste Connections demonstrated strong financial performance in the latest quarter, driven by solid waste pricing and effective cost management.
  • The company’s revenue grew by over 11%, with core solid waste pricing contributing significantly to this growth.
  • Despite a slight decline in volumes, the company’s strategic approach to pricing and contract renewals has maintained revenue quality, offsetting the negative impact of lower special waste volumes and other cyclical challenges.

United Rentals Inc.: An Analysis Of Their Acquisition-Led Growth & Competitive Advantage! – Major Drivers

By Baptista Research

  • United Rentals recently discussed its financial performance and strategic direction, presenting a mixed but robust picture of its operational and financial health.
  • The company reported a notable increase in total revenue, which rose by 6% year-over-year to $3.8 billion in the second quarter, with rental revenue climbing 8% to $3.2 billion.
  • This growth was bolstered by fleet productivity, which also saw an improvement of 4.6%.

Fortive Corporation: How Is The Strategic De-risking in Advanced Market Engagements Working Out? – Major Drivers

By Baptista Research

  • Fortive Corporation’s recent earnings report underscores its strategic focus and financial agility in today’s economic environment.
  • The firm showcased a robust display of financial discipline and strategic execution, achieving earnings and free cash flow at the high end of expectations.
  • Despite facing a low growth environment, Fortive demonstrated a remarkable 90 basis points of adjusted operating margin expansion and a 9% growth in adjusted earnings, which highlights its operational efficacy and resilience.

Republic Services Group: Strategic Acquisitions

By Baptista Research

  • Republic Services has reported robust second quarter results, continuing its positive momentum with strategic execution in key areas including customer engagement, digital transformation, and sustainable practices.
  • Revenue growth in the quarter stood at 9%, while adjusted EBITDA grew by 13%, reflecting strong operational performance and efficient management strategies.
  • This growth was driven by a focus on high-quality customer service and organic growth, maintaining a customer retention rate above 94%.

Norcros – Termination of coverage

By Edison Investment Research

Edison Investment Research is terminating coverage on AGBA (AGBA) and Norcros (NXR). Please note you should no longer rely on any previous research or estimates for this company. All forecasts should now be considered redundant. Previously published reports can still be accessed via our website.

Otis Worldwide Corporation: A Story Of Geographic Diversification and Regional Performance Optimization! – Major Drivers

By Baptista Research

  • Otis Worldwide Corporation demonstrated stable performance during the second quarter of 2024, amidst a mixed economic environment.
  • The company’s results reflected both their successes and the ongoing challenges in the global market.
  • On the positive side, the Service segment continued to serve as a strong growth vector for Otis, with a reported mid-single-digit organic sales increase.

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Aug 03
0

Daily Brief Energy/Materials: Newmont Mining, Valeura Energy Inc, Lake Victoria Gold , Crown Holdings, International Paper Co, Stella Chemifa and more

By | Daily Briefs, Energy & Materials Sector

In today’s briefing:

  • Newmont Corporation: What Is Their Portfolio Optimization Strategy? – Major Drivers
  • Valeura Energy (TSX: VLE): Wassana production restart
  • Lake Victoria Gold Ltd – Mining Monthly: July Edition
  • Crown Holdings Inc.: Favorable Market Trends & Consumer Shifts Are Major Tailwinds! – Major Drivers
  • International Paper Company: These Are The 6 Crucial Elements Driving Its Performance In 2024 & 2025! – Major Drivers
  • Stella Chemifa (4109 JP) – Showing Signs of Early Growth

Newmont Corporation: What Is Their Portfolio Optimization Strategy? – Major Drivers

By Baptista Research

  • Newmont Corporation reported strong second quarter results, keeping the company well-aligned with its 2024 guidance and reinforcing its position to improve financial performance as the year progresses.
  • In the quarter under review, Newmont achieved a production of 1.6 million ounces of gold, alongside 477,000 gold equivalent ounces from other minerals including copper, leading to a solid cash flow generation of $1.4 billion from operations and $594 million in free cash flow.
  • These figures underscore the company’s robust operational achievements despite the usual challenges faced in the mining sector.

Valeura Energy (TSX: VLE): Wassana production restart

By Auctus Advisors

  • Through advanced underwater inspection, including magnetic particle inspection, Valeura has concluded that the observed anomaly (a crack within a weld) on the Wassana MOPU is superficial, and accordingly does not constitute a risk to the structural integrity of the facility.
  • Valeura has begun the process of restarting production operations and anticipates achieving pre-suspension oil production rates of ~5,000 bbl/d within a week.
  • Valeura is looking to accelerate the redevelopment of the Wassana field.

Lake Victoria Gold Ltd – Mining Monthly: July Edition

By Atrium Research

  • July was the second consecutive negative month for all 17 metals in our coverage except for gold, however, mining equities largely outperformed.
  • As anticipated in our last Mining Monthly, the June sell-off marked a great buying opportunity in the metals equities.
  • We are excited by the continued outperformance in the mining sector compared to broader markets as we believe this will begin attracting generalist investors to the space.

Crown Holdings Inc.: Favorable Market Trends & Consumer Shifts Are Major Tailwinds! – Major Drivers

By Baptista Research

  • Crown Holdings’ recent earnings report highlights a mix of positive and challenging aspects for the company.
  • The company reported earnings of $1.45 per diluted share, an increase from $1.31 in the prior year.
  • Adjusted earnings were also higher, at $1.81 per diluted share compared to $1.68 in the previous year.

International Paper Company: These Are The 6 Crucial Elements Driving Its Performance In 2024 & 2025! – Major Drivers

By Baptista Research

  • International Paper recently reported its quarterly earnings, providing a mixed picture of its current financial health and operational performance.
  • The company, which operates in the packaging and paper industry, highlighted some areas of strength but also acknowledged several ongoing challenges.
  • The earnings call revealed key insights into the company’s strategy, performance, and outlook, offering investors a balanced view of the opportunities and risks associated with the stock.

Stella Chemifa (4109 JP) – Showing Signs of Early Growth

By Sessa Investment Research

  • Stella Chemifa Corporation (hereafter referred to as “the Company”) specializes in the manufacture and sale of hydrofluoric acid and fluorine- related compounds.
  • Hydrofluoric acid is highly functional and used in a wide range of applications, as well as being extremely toxic and corrosive, making it extremely difficult to handle.
  • In particular, ultra-high purity hydrofluoric acid is required for semiconductor manufacturing, and the Company, with its strong R&D and technological capabilities, has enjoyed great success in this area. 

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Aug 03
0

Daily Brief TMT/Internet: PCCW Ltd, Nintendo, Intel Corp, KT Corp, Toyo Business Engineering, Tenable Holdings Inc, Tower Semiconductor , Check Point Software Tech and more

By | Daily Briefs, TMT/Internet

In today’s briefing:

  • StubWorld: PCCW’s Premium To NAV Is Unsustainable
  • Nintendo (7974) | Game Over for Switch
  • Intel Q224 Meltdown. Don’t Say We Didn’t Warn You…
  • Asian Dividend Gems: KT Corp
  • Toyo Business Engineering (4828 JP): Q1 FY03/25 flash update
  • Tenable Holdings Is Exploring A Sale! 4 Reasons It Makes A Decent Acquisition Target At THIS Valuation! – Major Drivers
  • Tower Semiconductor: Enhanced Capacity and Technological Advancements in Silicon Photonics and RF-SOI Are Major Growth Drivers! – Financial Forecasts
  • Check Point Software Technologies: Expansion of Infinity Platform and Large Deals Catalyzing The Top-Line Performance! – Major Drivers

StubWorld: PCCW’s Premium To NAV Is Unsustainable

By David Blennerhassett

  • Continued stub losses are one thing. Ballooning PCCW Ltd (8 HK) parent debt is another. 
  • Preceding my comments on PCCW and HKT Ltd (6823 HK) are the current setup/unwind tables for Asia-Pacific Holdcos.
  • .These relationships trade with a minimum liquidity of US$1mn, and a % market capitalisation >20%.

Nintendo (7974) | Game Over for Switch

By Mark Chadwick

  • Nintendo missed Q1 with Operating income coming in at Y54.5b (-71% YoY) vs our estimate Y116b and the street at Y94b
  • Switch 2 hardware and software units sold are now suffering from buyer fatigue as consumers await the next-gen console
  • The stock will likely fall quite sharply over the next week. Looking for good buying opportunity in anticipation of the next console cycle

Intel Q224 Meltdown. Don’t Say We Didn’t Warn You…

By William Keating

  • Q224 revenues of $12.8 billion, in line with their updated May outlook, ~flat QoQ and down 1% YoY.
  • Gross margin (non-GAAP) was 38.7%, down 1.1 points YoY but down a whopping 4.8 points from the April outlook.
  • Shares tanked >24% in after hours trading. What’s really going on at Intel? 

Asian Dividend Gems: KT Corp

By Douglas Kim

  • We have a Positive view of KT Corp (030200 KS) due to three main reasons.
  • First, KT has started to implement aggressive capital return policy (returning 50% of net income through dividends and share buybacks/cancellations). Two other reasons include Corporate Value Up and higher Smartscore.
  • KT Corp has been the best performing stock among the three major Korean telcos in the past one year. KT Corp’s shares are up 27.9% in the past one year.

Toyo Business Engineering (4828 JP): Q1 FY03/25 flash update

By Shared Research

  • Orders were JPY4.7bn (-4.5% YoY) and revenue was JPY5.0bn (+7.2% YoY), reaching a record high.
  • Operating profit was JPY1.2bn (+16.7% YoY) with an OPM increase of 1.9pp to 23.2%.
  • mcframe license revenue was JPY1.3bn (+22.0% YoY), breaking the record high for the Products business.

Tenable Holdings Is Exploring A Sale! 4 Reasons It Makes A Decent Acquisition Target At THIS Valuation! – Major Drivers

By Baptista Research

  • Tenable Holdings has been in the news after reports suggested that the management is exploring strategic alternatives including a potential sale.
  • The company delivered a mixed performance for Q2 2024, with lower-than-predicted Calculated Current Billings (CCB) but stronger performance in revenue and earnings.
  • Although the performance of the company’s flagship Cyber Exposure platform, Tenable One, and its cloud security offerings were both highlighted as central growth drivers, it was noted that the traditional Vulnerability Management (VM) market, in which the company is a leader, has become increasingly cyclical.

Tower Semiconductor: Enhanced Capacity and Technological Advancements in Silicon Photonics and RF-SOI Are Major Growth Drivers! – Financial Forecasts

By Baptista Research

  • Tower Semiconductor posted a solid financial performance for the second quarter of 2024, showcasing revenue of $351 million and a net profit of about $53 million, translating to a net margin of approximately 15%.
  • Notably, the company achieved sequential quarterly revenue growth as previously targeted and forecasts continued growth with a third-quarter revenue guidance of $370 million, plus or minus 5%.
  • The commitment to driving innovation and expanding market leadership was evident throughout the period.

Check Point Software Technologies: Expansion of Infinity Platform and Large Deals Catalyzing The Top-Line Performance! – Major Drivers

By Baptista Research

  • Check Point Software reported solid financial results for the recent quarter, showcasing moderate growth across key financial metrics.
  • The company achieved a 7% increase in revenues, reaching $627 million, which exceeded the midpoint of its projected range.
  • Additionally, non-GAAP earnings per share (EPS) grew by 8% to $2.17, reflecting Check Point Software’s ability to manage costs effectively while navigating a challenging market environment.

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Aug 03
0

Daily Brief Health Care: Novartis AG Reg, Tenet Healthcare and more

By | Daily Briefs, Healthcare

In today’s briefing:

  • Pullback Continues $ACWI; Stick With Defensives; More Countries With Improving Price and RS Trends
  • Tenet Healthcare Corporation: Focus on Ambulatory Surgical Centers (ASC) Growth & Enhanced Operational Management! – Major Drivers

Pullback Continues $ACWI; Stick With Defensives; More Countries With Improving Price and RS Trends

By Joe Jasper

  • We believe a 1-4-month pullback/consolidation is ongoing, and we would look for an important low to be made near the U.S. election.
  • Supports to watch continue to be $110 on $ACWI and $41-42 on MSCI EM $EEM, and whether these levels hold or not will determine the severity of the pullback.
  • Primary reasons for this bearish expectation include major bullish RS inflections for defensive Sectors, and bearish price action in the U.S. (SPX), Japan (TOPIX/Nikkei 225), and Europe (EURO STOXX 50)

Tenet Healthcare Corporation: Focus on Ambulatory Surgical Centers (ASC) Growth & Enhanced Operational Management! – Major Drivers

By Baptista Research

  • Tenet Healthcare Corporation delivered robust financial results in the second quarter of 2024, surpassing expectations with net operating revenues recorded at $5.1 billion.
  • The performance was marked by a notable 12% year-over-year growth in consolidated adjusted EBITDA, which reached $945 million, translating to an adjusted EBITDA margin of 18.5%.
  • This growth is primarily attributed to strong operational execution and strategic expansions across its segments.

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Aug 03
0

Daily Brief Industrials: Waste Connections , United Rentals, Fortive , Republic Services, Norcros PLC, Otis Worldwide and more

By | Daily Briefs, Industrials

In today’s briefing:

  • Waste Connections Inc.: Expansion of Core Solid Waste Pricing & Other Major Drivers
  • United Rentals Inc.: An Analysis Of Their Acquisition-Led Growth & Competitive Advantage! – Major Drivers
  • Fortive Corporation: How Is The Strategic De-risking in Advanced Market Engagements Working Out? – Major Drivers
  • Republic Services Group: Strategic Acquisitions
  • Norcros – Termination of coverage
  • Otis Worldwide Corporation: A Story Of Geographic Diversification and Regional Performance Optimization! – Major Drivers

Waste Connections Inc.: Expansion of Core Solid Waste Pricing & Other Major Drivers

By Baptista Research

  • Waste Connections demonstrated strong financial performance in the latest quarter, driven by solid waste pricing and effective cost management.
  • The company’s revenue grew by over 11%, with core solid waste pricing contributing significantly to this growth.
  • Despite a slight decline in volumes, the company’s strategic approach to pricing and contract renewals has maintained revenue quality, offsetting the negative impact of lower special waste volumes and other cyclical challenges.

United Rentals Inc.: An Analysis Of Their Acquisition-Led Growth & Competitive Advantage! – Major Drivers

By Baptista Research

  • United Rentals recently discussed its financial performance and strategic direction, presenting a mixed but robust picture of its operational and financial health.
  • The company reported a notable increase in total revenue, which rose by 6% year-over-year to $3.8 billion in the second quarter, with rental revenue climbing 8% to $3.2 billion.
  • This growth was bolstered by fleet productivity, which also saw an improvement of 4.6%.

Fortive Corporation: How Is The Strategic De-risking in Advanced Market Engagements Working Out? – Major Drivers

By Baptista Research

  • Fortive Corporation’s recent earnings report underscores its strategic focus and financial agility in today’s economic environment.
  • The firm showcased a robust display of financial discipline and strategic execution, achieving earnings and free cash flow at the high end of expectations.
  • Despite facing a low growth environment, Fortive demonstrated a remarkable 90 basis points of adjusted operating margin expansion and a 9% growth in adjusted earnings, which highlights its operational efficacy and resilience.

Republic Services Group: Strategic Acquisitions

By Baptista Research

  • Republic Services has reported robust second quarter results, continuing its positive momentum with strategic execution in key areas including customer engagement, digital transformation, and sustainable practices.
  • Revenue growth in the quarter stood at 9%, while adjusted EBITDA grew by 13%, reflecting strong operational performance and efficient management strategies.
  • This growth was driven by a focus on high-quality customer service and organic growth, maintaining a customer retention rate above 94%.

Norcros – Termination of coverage

By Edison Investment Research

Edison Investment Research is terminating coverage on AGBA (AGBA) and Norcros (NXR). Please note you should no longer rely on any previous research or estimates for this company. All forecasts should now be considered redundant. Previously published reports can still be accessed via our website.

Otis Worldwide Corporation: A Story Of Geographic Diversification and Regional Performance Optimization! – Major Drivers

By Baptista Research

  • Otis Worldwide Corporation demonstrated stable performance during the second quarter of 2024, amidst a mixed economic environment.
  • The company’s results reflected both their successes and the ongoing challenges in the global market.
  • On the positive side, the Service segment continued to serve as a strong growth vector for Otis, with a reported mid-single-digit organic sales increase.

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Aug 03
0

Daily Brief Consumer: BrainBees Solutions, Ola Electric, TSE Tokyo Price Index TOPIX, Ford Motor Co, O’Reilly Automotive, Whirlpool Corp, Kameda Seika, Kitwave Group and more

By | Consumer, Daily Briefs

In today’s briefing:

  • Brainbees Solutions (FirstCry) IPO – Not Very Attractive but It Is Relatively Cheap
  • Ola Electric IPO- Forensic Analysis
  • Reducing Cross Shareholdings Is Necessary to Increase the Effectiveness of Engagement
  • Ford Motor Company: EV Segment Losses & Surging Warranty Costs Are A Major Concern! – Major Drivers
  • O’Reilly Automotive Inc.: What Major Challenges Did They Face & How Is The Management Overcoming Them? – Major Drivers
  • Whirlpool Corporation: How Is The Management Executing Global Market Penetration and Diversification! – Major Drivers
  • Kameda Seika (2220 JP): Q1 FY03/25 flash update
  • Kitwave Group Plc (KITW) – Thursday, May 2, 2024

Brainbees Solutions (FirstCry) IPO – Not Very Attractive but It Is Relatively Cheap

By Sumeet Singh

  • BrainBees Solutions is looking to raise up to US$500m in its upcoming India IPO.
  • FirstCry is India’s largest multi-channel retailing platform for Mothers’, Babies’ and Kids’ products in terms of GMV, for the year ending Dec 2022 (9M23), according to RedSeer.
  • In our previous notes, we looked at the company’s past performance. In this note, we will talk about valuations.

Ola Electric IPO- Forensic Analysis

By Nitin Mangal

  • Ola Electric (1700674D IN) is launching its IPO, consisting of fresh issue worth INR 5.5 bn and offer for sale upto 84.9 mn shares.
  • The company delivered its first electric scooter in December 2021, and since then it has grown immensely to become a market leader with a share of 35%.
  • As far as forensics go, one should look out for related party transactions with promoters, some accounting policies, constant losses, need for capex, trend of expenses, etc.

Reducing Cross Shareholdings Is Necessary to Increase the Effectiveness of Engagement

By Aki Matsumoto

  • Signs of change in companies that have improved their capital profitability and valuations can be seen in their policy shareholdings/total assets. 
  • Companies with fewer policy shareholdings, as measured by (policy shareholdings + equity holdings)/total assets, tend to have the best values for valuation, ROE, and ROA, and vice versa.
  • To measure the seriousness of reducing cross-shareholdings, as long as the company has the voting right of cross-shareholdings in retirement benefit trust, the deemed shares should be included in cross-shareholdings.

Ford Motor Company: EV Segment Losses & Surging Warranty Costs Are A Major Concern! – Major Drivers

By Baptista Research

  • Ford Motor Company’s second quarter 2024 performance offers a comprehensive snapshot of a transitional phase in the company’s long-standing history.
  • The quarter reflects their advancing Ford+ strategic plan which aims to refine operational efficiencies and bolster profit margins through structural adaptations and technological advancements.
  • 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.

O’Reilly Automotive Inc.: What Major Challenges Did They Face & How Is The Management Overcoming Them? – Major Drivers

By Baptista Research

  • O’Reilly Automotive, Inc. faced a challenging second quarter in 2024, with performance below expectations due to broader industry demand headwinds.
  • Despite these challenges, the company reported a 2.3% increase in comparable store sales, continuing to outperform the industry.
  • Adjustments in full-year outlook for operating profit and earnings per share were made following these results.

Whirlpool Corporation: How Is The Management Executing Global Market Penetration and Diversification! – Major Drivers

By Baptista Research

  • Whirlpool Corporation reported its second quarter earnings for 2024, reflecting a mixed performance amid a challenging macroeconomic environment.
  • The company showed strong sequential global margin expansion and reiterated its net sales guidance at $16.9 billion.
  • However, it faced downward pressure on discretionary demand due to the soft housing market, particularly affecting the North American market.

Kameda Seika (2220 JP): Q1 FY03/25 flash update

By Shared Research

  • Sales rose JPY1.8bn (8.3%) YoY, driven by higher sales in Domestic Rice Cracker, Overseas, and Food businesses.
  • Operating profit increased JPY375mn (53.6%) YoY, with significant profit growth in Domestic Rice Cracker and Food businesses.
  • Revised FY03/25 forecast projects sales of JPY102.0bn (+6.8% YoY) and net income of JPY3.8bn (+68.4% YoY).

Kitwave Group Plc (KITW) – Thursday, May 2, 2024

By Value Investors Club

  • U.K.-based food distributor specializing in delivering a variety of products to convenience stores and foodservice providers
  • Targets independent establishments with low minimum order values
  • National scale gives them bargaining power over suppliers, providing a competitive edge

This content is sourced through publicly available sources and has been machine generated. Information displayed is for general informational purposes only. This article was originally published 3 months ago on Value Investors Club.

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Aug 03
0

Daily Brief Financials: KB Financial, Hana Financial, Bitcoin, Moody’s Corp, Agile Property Holdings, AGBA Group Holding , Aruhi Corp, Dream Incubator and more

By | Daily Briefs, Financials

In today’s briefing:

  • Alpha Generating Opportunities from the Corporate Value Up Disclosures on the KIND System
  • South Korean Banks; Hana Financial (086790 KS) And Woori (316140 KS) Are Our Positive Picks
  • Crypto Moves #37 – Three Factors to Rule the Remainder of 2024
  • Ether ETFs Are Looking for a Bitcoin Style Love
  • Moody’s Corporation: Expanding Transaction Revenue and Strong Issuance Growth! – Major Drivers
  • Agile Group – ESG Report – Lucror Analytics
  • AGBA – Termination of coverage
  • Aruhi Corp (7198 JP): Q1 FY03/25 flash update
  • Dream Incubator (4310 JP): Q1 FY03/25 flash update

Alpha Generating Opportunities from the Corporate Value Up Disclosures on the KIND System

By Douglas Kim

  • One of the key takeaways of the Corporate Value Up disclosures on the KIND system is that it could potentially lead to alpha generating investing opportunities. 
  • Since the last week of May, there have been 7 companies that provided specific Corporate Value up programs; (4 major financials) have outperformed KOSPI.
  • Companies such as KB Financial and Shinhan Financial that provide more meaningful Corporate Value Up action plans are likely to have greater impact on their share prices. 

South Korean Banks; Hana Financial (086790 KS) And Woori (316140 KS) Are Our Positive Picks

By Victor Galliano

  • Delinquency ratios continued to worsen into 2Q24, with a couple of the South Korean banks seeing accelerating growth in NPL ratios; despite this, there are buy opportunities
  • Our bigger cap pick is Hana Financial for its very attractive valuations, PEG and equity risk premia, as well as its solid core capital ratio and strong credit quality credentials
  • Among the smaller caps, Woori stands out in terms of valuation, PEG ratio, credit quality and it has registered improving post-provision returns

Crypto Moves #37 – Three Factors to Rule the Remainder of 2024

By Mads Eberhardt

  • August 1st marks the beginning of the final five months of 2024, a year that has already been extraordinary for the crypto industry.
  • This year has been unforgettable, with the crypto sector making a significant entrance on Wall Street with the launch of the first U.S. Bitcoin and Ethereum spot ETFs. The U.S. regulatory stance has also become more favorable towards crypto, recognizing it as a pivotal factor in the 2024 U.S. Presidential Election.
  • Over and above that, banks and other financial institutions are eagerly lining up to offer crypto services.

Ether ETFs Are Looking for a Bitcoin Style Love

By Trillions

  • Successful launch of bitcoin ETF’s led to the filing and approval of Ethereum ETF’s
  • Ethereum is the second largest cryptocurrency after bitcoin, with distinct differences in technology and operation
  • The purpose of an ether ETF is to provide investors with exposure to the growing cryptocurrency market and decentralized technology.

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

Moody’s Corporation: Expanding Transaction Revenue and Strong Issuance Growth! – Major Drivers

By Baptista Research

  • Moody’s Corporation reported strong financial results for the latest quarter, showcasing significant growth across key metrics while also acknowledging areas of uncertainty that could impact future performance.
  • The company achieved 22% revenue growth and an adjusted operating margin of nearly 50%, reflecting the firm’s ability to leverage its strong market position and disciplined cost management to generate substantial operating leverage.
  • Additionally, Moody’s adjusted diluted EPS grew by 43%, further demonstrating its profitability and financial health.

Agile Group – 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 Agile Group’s ESG as “Adequate”, in line with its Environmental and Social scores. That said, Governance is “Weak”. Controversies are “Immaterial” and Disclosure is “Adequate”.

AGBA – Termination of coverage

By Edison Investment Research

Edison Investment Research is terminating coverage on AGBA (AGBA) and Norcros (NXR). Please note you should no longer rely on any previous research or estimates for this company. All forecasts should now be considered redundant. Previously published reports can still be accessed via our website.

Aruhi Corp (7198 JP): Q1 FY03/25 flash update

By Shared Research

  • Operating revenue: JPY5.5bn (+19.0% YoY), driven by full consolidation of SBI Estate Finance group, origination-related revenue decreased.
  • Operating expenses: JPY4.7bn (+11.6% YoY), driven by finance costs increase, personnel expenses decrease, and commission expenses increase.
  • Pre-tax profit: JPY795mn (+77.1% YoY), with a pre-tax profit margin of 14.5%, reflecting a one-off factor in personnel expenses.

Dream Incubator (4310 JP): Q1 FY03/25 flash update

By Shared Research

  • In Q1 FY03/25, consolidated sales were JPY1.6bn (+38.5% YoY), with an operating profit of JPY48mn (JPY182mn loss in Q1 FY03/24).
  • Business Production segment reported sales of JPY1.1bn (+15.0% YoY) and an operating loss of JPY70mn (JPY107mn profit in Q1 FY03/24).
  • Venture Capital segment reported sales of JPY520mn (+145.3% YoY) and an operating profit of JPY378mn (JPY17mn loss in Q1 FY03/24).

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