Equity Bottom-Up

• The P/E ratio has risen above 20x this fiscal year from no more than 13x in the previous four years, reflecting successful restructuring and investor enthusiasm for AI. 
• Profit margins are rising, but remain moderate in absolute terms with room for further improvement. The shares may consolidate, but they do not look overvalued.
• Management is aiming for generative AI sales of ¥50 billion in three years time. This is less than 2% of total sales, but a positive indicator for NEC’s software business.

• KE Holdings’ (BEKE) reported C4Q23 revenue 6.2%/7.5% above our est./cons.. Its non-GAAP net income miss our est. by 8.3%, due to bad debt write-off and year-end bonus
• Although recovery in new home market remains muddy, we view Beike’s commitment to deliver 5% yield through dividend and stock buyback as investor friendly. 
• We reiterate BUY rating and maintain TP at US$24/ADS . 

• Toyota Motor Corporation continues to deliver robust financial performance despite a myriad of challenges.
• In the fiscal year 2024 second-quarter results, the Japanese automotive giant reported an operating income of JPY 2,559.2 billion.
• This was a significant increase compared to the same period of the previous fiscal year.

• Cyber Security Cloud Inc (4493 JP) provides customers with subscription services based on software it develops in-house.
• In FY12/23, CSC reported revenue of JPY3.1bn, operating profit of JPY550mn, recurring profit of JPY560mn, and net income attributable to owners of the parent of JPY427mn.
• Cyber Security Cloud, Inc. announced the acquisition of its own shares

• Taiwan Semiconductor Manufacturing Company Limited (TSMC)’s fourth quarter revenue increased 14.4% sequentially due to the robust ramp-up of its industry-leading 3-nanometer technology.
• The gross margin, however decreased by 1.3 percentage points to 53% primarily due to margin dilution from 3-nanometer technology.
• The operating margin decreased by 0.1 percentage points to 41.6%, slightly ahead of the company’s guidance.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.

• We anticipate that the guidance upper limit for 1Q24F results may be reached.  
• The outlook is expected to see approximately a 10% QoQ increase in 2Q24F.  
• The recent stock market performance may reflect enthusiasm for Vanguard, despite temporary disregard for the name.

• VIC pitch remains relevant as Allegion is undervalued compared to historical P/E ratio
• Majority of sales from resilient aftermarket and institutional sectors make Allegion’s business more stable than perceived
• Strong presence in North America provides solid revenue base with high margins, presenting a strong investment opportunity for long-term growth and value appreciation

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.

• Established in 1950, Nihon Denkei (9908 JP) is an independent specialized trading company with a leading domestic share, by sales, in electronic measuring instruments (source: Nihon Denkei).
• In FY03/23, sales were JPY104.8bn (+14.1% YoY), operating profit was JPY3.7bn (+40.4% YoY), and recurring profit was JPY4.0bn (+31.9% YoY).
• On June 24, 2020, the company announced the key elements of its medium-term plan, INNOVATION 2030.

• AstraZeneca’s Fourth quarter and full-year ’23 earnings reflects strong performance.
• Notably, the company achieved their decade-long target of $45 billion sales, demonstrating its consistent focus on long-term growth.
• The company’s diverse commodity areas, ranging from oncology to rare diseases, all demonstrated strong growth in 2023, with the company’s profitability expected to increase because of this.

• Arthur J. Gallagher & Co.
• reported strong fourth quarter results for 2023 with key financial metrics in line with its December IR day.
• Revenue growth for the Brokerage and Risk Management segments was 20% with 8.1% organic growth, a figure that the company corrects to 9.4% controlling for accounting adjustments and large life case timing.

• Bumble Inc.
• has reported an increase of 13% in its Q4 2023 revenue to $274 million, meeting its financial projections.
• This growth was propelled by a 16% rise in paying users, with contributions from both the Bumble and Badoo apps.

• Carvana has seen a big increase in its stock price despite concerns over bankruptcy that did not come to fruition
• The company has advantages in unit economics and is well-positioned to gain market share in the auto retail industry
• Carvana offers competitive pricing, quality, convenience, and selection, making it an attractive option for customers and investors alike

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.

• Alibaba Group’s office messaging and meeting app DingTalk is allowing users of Tencent Holdings’ rival social media app WeChat to directly join any meeting initiated on DingTalk without first registering.
• DingTalk users can now share a meeting link with WeChat users, who can enter the meeting within WeChat.
• Previously, DingTalk required participants to download its meeting app and register.

• Recent RBI and SEBI actions unveil irregularities in JM Financial (JM IN) Products IPO financing, exposing risks in NBFC-led subscriptions.
• Ensuring market integrity and investor protection, regulatory scrutiny highlights governance lapses, urging transparency and accountability.
• Prompts investor caution, demanding rigorous scrutiny of financial intermediaries, and reinforcing the need for robust regulatory oversight.

• Miniso report C4Q23 revenue in-line/7.9% vs. our estimate/consensus, non-GAAP NI is 5.1%/10.5% higher than our estimate/consensus on strong overseas sales from North and Latin Americas. 
• Company guided for soft operating margin thanks to robust new store openings, which we believe to be accretive to earnings in the long run
• We maintain the stock as BUY and but cut TP by US$2 to US$31/ADS

• A&D Holon Holdings is a Japanese precision instrument company specializing in industrial measuring, medical equipment, and semiconductor production
• The company’s semiconductor division is driving high growth and profitability, with expected earnings growth of around 50% over the next two years
• Despite strong prospects, A&D Holon Holdings is significantly undervalued, trading at low multiples on FY Mar-2024 estimates

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.

• Beenos Inc (3328 JP) operates cross-border e-commerce websites that allow mainly individual users to buy and sell goods both in Japan and internationally over the Internet.
• In FY09/23, BEENOS reported full-year consolidated revenue of JPY32.5bn, operating profit of JPY4.5bn, recurring profit of JPY4.1bn, and a net income attributable to owners of the parent of JPY2.2bn.
• BEENOS Inc. has announced changes in its consolidated subsidiaries (share transfer).

• In the previous 4Q follow-up report, we examined “Copilot NAVI,” a service released by JBS in November, which includes videos and summary materials as a guide for enterprise users, for Microsoft 365 Copilot, the AI tool embedded in Microsoft 365 applications, to bring efficient answers to users’ instructions and questions through a chat interface (which can be a daunting challenge).
• JBS followed up in December with interactive workshops to experience Microsoft 365 Copilot before deployment.

•  In this report, we examine JBS enterprise cloud security initiatives, which are a top priority for cloud IT systems managers.

• In 4Q23, we believe total revenue will grow by 20% YoY and MT will have the fourth profitable quarter.
• We believe Douyin will not threaten MT in the long run according to other competitors’ failure.
• We believe EPS will reach RMB0.35 in 4Q23 and RMB2.23 in 2023.

• Pca Corp (9629 JP) develops and sells corporate accounting software and other business systems for small and medium-sized companies.
• Full-Year FY03/23 revenue was JPY13.0bn (-3.0% YoY) due to lower replacement demand for the PCA X series of products, support for which ended in December 2021.
• PCA Corporation has announced changes to its dividend policy and revisions to its dividend forecast.

• We are reiterating our Buy rating and $41 price target for Build-a-Bear, slightly raising our FY24 EPS and rolling out FY25 projections after the company reported basically in-line 4QFY23 (January) results and initiated a quarterly dividend program, with an initial quarterly payout of $0.20 per share.
• We believe Build-A-Bear remains highly focused on shareholder value and the company is poised to register solid returns and upside as their experiential offerings continue to expand and resonate with their growing customer base; further, with net cash per share of over $3.10 (and no debt), a dividend yield of 2.7% and trading under 4.5X our FY25 EBITDA, we view the risk/reward in BBW as compelling, and we reiterate our Buy raring and $41 price target.

• AS ONE Corporation (7476 JP) is a specialist trading company that uses a business model focused on catalog sales.
• In FY03/23, sales were JPY91.4bn (+5.1% YoY), operating profit was JPY11.4bn (+22.0% YoY), recurring profit was JPY11.6bn (+21.6% YoY), and net income was JPY8.1bn (+12.6%YoY).
• AS ONE Corporation announced the acquisition of treasury shares via after-hours trading (ToSTNeT-3) and retirement of the treasury shares.

• The speaker reflects on the excitement and nervousness of facing a new platform shift in technology and the need for continual innovation
• They consider the broader economic impact of technological advancements, like AI, and the potential for breakthroughs in various industries
• The decision to partner with OpenAI was driven by Microsoft’s history of seeking out ambitious technology innovators to collaborate with, even when the outcome is uncertain.

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

• 2023 results came in broadly in line with expectations but included a concerning step up in ex-fuel unit cost inflation.
• We cut our 2024 EBITDAR by 10% to HK$22.2bn, which drives net income down 21% to HK$6.6bn, leaving us well below consensus.
• We revisit Cathay’s margin generation problems from the last cycle, illustrating structural problems which require structural solutions.

• We cut Luckin Coffee’s 1Q24 revenue estimate by 3% to RMB7.9bn with 79% yoy and cut non-GAAP net income estimate by 42% to RMB318mn due to (1) weak sales；
• We expect 2Q24 to be the turning point for earnings due to (1) sales improving with weather warm-up (2) ASP rebound from easing competition 
• We maintain the stock as BUY rating but lower TP by US$4 to US$37 to factor in the temporary near-term weak sale.

• FY23 net profit of HKD9.1b, easily beating the consensus forecast of HKD8.5b, and announced a surprise dividend, the first since 2019, signally pandemic effects are over 
• Perfect execution from the team, leveraging on a strong market 
• Cathay Pacific is a value BUY, our target price of HK$9.90 (+10% UPSIDE) implies 10x FY2024 PE. We will update more after tuning in the 2 pm analyst briefing 

• Broadcom reported consolidated net revenue of $12 billion, a 34% increase year-on-year, with semiconductor solutions contributing $7.4 billion, up 4% from the previous year.
• Infrastructure software revenue saw a significant increase of 153% year-on-year, totaling $4.6 billion.
• These improvements are due in part to the contribution from VMware, which has resulted in a sequential jump in revenue by 132%.

• JD.com’s latest earnings showed a strong commitment to growth, navigating a mix of macro recoveries, seasonality factors and strategic refocus.
• They delivered a growth in net revenues by 4% and recorded a non-GAAP net income attributable to ordinary shareholders of RMB 8.4 billion.
• Cash and cash equivalents, restricted cash, and short term investments totaled RMB 198 billion.

• CrowdStrike Holdings, Inc., a leader in the cybersecurity sector, reported an impressive fourth quarter and fiscal year for 2024 during its latest earnings conference call.
• The call highlighted several positive aspects of the company’s performance such as a record net new Annual Recurring Revenue (ARR) of $282 million, reflecting a year-over-year increase of 27%.
• Furthermore, the company achieved a record operating margin of 25%, an improvement of 10 percentage points when compared to the previous year.

• The short-term recovery momentum observed in China and consumer markets.
• The Gen 3 in 4Q23 accounts for about 50% of the production, expected to increase to around 60-70% in 4Q24F.
• Expecting to improve quarter by quarter after reaching the bottom in 1Q24F, and the growth is expected to recover to around 20%+ YoY in 2024F.

• We screen our coverage universe for earnings surprises, EPS upgrades, and management narratives to identify fundamental longs.
• Stocks discussed include TVS Motor (TVSL IN), Nestle India (NEST IN), and Honasa Consumer (HONASA IN) 
• TVSL EVs could surprise, NEST offers the right safety in the current environment, and for HONASA there is a possibility of turning around. 

• Fairfax India’s stock price may increase due to potential higher valuations
• Company’s fee structure may be high but offers opportunity for strong returns
• Investment in Fairfax India provides discounted opportunity with growth potential, specifically through ownership in Bangalore airport

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.

• According to public news today afternoon during trading hours, the founder and biggest shareholder of Li Ning (2331 HK), Mr. Li Ning, is mulling privatizing the public company. 
• Mr. Li Ning has shown the opposite intention over the last few years, with several major sell-down of stake.
• The company is trading at 16x 2024 PE, with visibility being quite low. 

• We believe revenue will grow by 44% in 2023 according to the sales volume and the price trend.
• We believe net profit will increase by 100%, higher than the company’s estimate.
• We conclude an upside of 54% and a price target of HK$304. Buy.

For our next Corporate Webinar, we are glad to welcome Centurion Corporation’s CEO, Mr Kong Chee Min. 

In the upcoming webinar, Chee Min will share a short company presentation after which, he will engage in a fireside chat with Smartkarma Insight Provider, Angus Mackintosh.

Angus will also be providing an industry overview, featuring landscape commentary and returns analysis. The Corporate Webinar will include a live Q&A session

In the spirit of giving back to our community, one of the attendees will also be awarded an Amazon Kindle as part of our exclusive lucky draw. 

The Corporate Webinar will be hosted on Thursday, 21 March 2024, 19:00 SGT.

About Centurion Corporation 

Centurion Corporation Limited (“Centurion” or the “Company” and together with its subsidiaries, the “Group”) owns, develops and manages quality, purpose-built workers accommodation assets in Singapore and Malaysia, and student accommodation assets in Australia, the United Kingdom (“UK”) and the United States (“US”). The Group owns and manages a strong portfolio of 34 operational accommodation assets totalling approximately 66,607 beds as of 30 September 2023. Centurion’s established portfolio of workers accommodation assets are managed under the “Westlite Accommodation” brand and comprises nine workers accommodation assets in Singapore as well as eight workers accommodation assets in Malaysia. The Group’s student accommodation assets are managed under the “Dwell” brand, with ten assets in the UK, five assets in US and two assets in Australia. With global reach and a clear growth strategy to actively enhance and manage its assets, identify strategic acquisitions and joint ventures, as well as develop customised accommodation management services, Centurion is well-positioned as a leading provider of quality, purpose-built accommodation.

• On’s quarterly results disappoint, triggering a 10% stock drop. Meanwhile, ASICS’ share price is up 43% YTD despite modest performance.
• ASICS shareholders advised to consider profit-taking as stock outpaces fundamentals, faces competition from resurging Nike and fast-growing On
• On’s ambitious growth projections threaten ASICS’ market position, with potential market share parity within three years

• This is a follow-up to our initial report on the APAC Luxury Industry where we were of the belief that small niches within the luxury sector could offer potential opportunities.
• Below, we analyse the recent trends in luxury travel on Minor International (MINT TB), Mandarin Oriental International (MAND SP) and Shiseido Company (4911 JP).
• While travel has rebounded to pre-pandemic levels, Shiseido’s Travel Retail struggles, yet Minor International and Mandarin Oriental are showing signs of improvement. 

• Takashimaya (8233 JP) was founded in 1831 and is the operator of one of the leading department store companies in Japan.
• Takashimaya began applying the Accounting Standard for Revenue Recognition from the beginning of FY02/23.
• Takashimaya Co., Ltd. announced revisions to its full-year earnings forecasts for FY02/24.

• Two activist investors are now on the shareholder registry of Eiken Chemical. 
• Eiken has proactively announced a share buyback to return excess cash holdings. 
• Eiken has a quality underlying business which generates solid FCF yield. Expect higher shareholder returns in the future. 

• Round One Corp (4680 JP) specializes in running amusement complex facilities in Japan, the US, and China.
• FY03/23 results: The company reported sales of JPY142.1bn, operating profit of JPY16.9bn, recurring profit of JPY16.7bn, and net income attributable to owners of the parent of JPY9.7bn.
• In November 2023, the company revised its full-year FY03/24 earnings forecast.

• In Q423 JD Logistics booked 10% top-line growth & solid margin improvement
• We analyze the impacts of JD.com & Deppon Logistics on JD Logistics’ Q423
• Given still-low profitability, JD Logistics does not appear cheap, in our view

• This is our special, one-time report on Guess Inc., a notable entity in the fashion industry that recently made headlines with its strategic acquisition of the New York-based fashion brand Rag & Bone.
• This move signifies a significant leap towards expanding its portfolio and solidifying its presence in the highly competitive fashion sector.
• The announcement was followed by a surge in the company’s stock, further fueled by speculations of a possible take-private initiative.

• Advantest has dropped back 11.5% from its recent high but is still up 43% year-to-date and up 2.3X from a year ago. Consolidation is likely to continue.
• Demand for High Bandwidth Memory (HBM) for use with AI processors could lift sales, profits and profit margins to new highs within the next two years.
• That could bring the projected P/E ratio down from 75.5x FY Mar-24 EPS guidance to 31x FY Mar-26 EPS in a favorable but not unreasonably optimistic scenario. 

• Q423 revenue growth, core margins, and expense control all looked strong
• Evolving revenue mix bodes well for long-term improvement in core margin
• Buyback update & Q124 guidance both +ive; appears cheap at 14x consensus

• Core business well positioned to benefit from the growth in the Japanese VC industry
• A good Partner for international firms looking to invest in Japan
• New direction on Capital Allocation is underappreciated by the market

• Jafco Co Ltd (8595 JP) is the largest specialist venture capital company in Japan.
• In FY03/23, JAFCO reported revenue of JPY14.1bn, an operating loss of JPY4.4bn, a recurring loss of JPY3.0bn, and net income of JPY40.6bn.
• JAFCO Group Co., Ltd. has announced a partnership with Nomura Asset Management Co., Ltd. to create a new publicly offered investment trust incorporating unlisted shares.

• T&D Holdings (8795 JP) , formed in 2004, is Japan’s first life insurance holding company.
• In FY03/23, ordinary revenues were JPY3.2tn, ordinary loss was JPY74.1bn, and loss attributable to owners of the parent was JPY132.2bn.
• T&D Holdings, Inc. has announced a change in its president.

• Monex Group Inc (8698 JP) started as online brokerage Monex, Inc. in April 1999 with CEO Oki Matsumoto and Sony Corporation as core investors.
• For FY03/23, the company reported full-year consolidated operating revenue of JPY79.3bn, net operating revenue of JPY73.3bn, operating profit equivalent of JPY4.8bn, pre-tax profit of JPY4.7bn.
• Monex Group, Inc. has announced that it will record a gain on fair value remeasurements under the equity method of accounting.

• Many are asking why KDDI would want to buy 50% of Lawson, Japan’s third biggest convenience store chain.
• Some more imaginative analysts suggest this could be just the first step towards KDDI merging with Rakuten in order to beat Amazon.
• The more likely future is an ecosystem to challenge Rakuten and LY Corp (Yahoo etc), starting with points and payments and evolving to other Fintech, e-commerce and health.

• Bank of Ningbo saw its margins decline dramatically from 1.79% to 1.55% from 3Q22 to 3Q23. This is of concern for earnings power in coming quarters.
• The bank’s loan-to-deposit ratio (LDR) is now down to 73% from 78% YoY which tends to act as a dampener on NIM and core income.
• Credit metrics are worsening with NPLs up from RMB7.9bn to RMB9.3bn YoY in 3Q23. This rise is not easily visible in the NPL ratio due to rising total loans.

• GSAT is a telecom infrastructure provider with two core businesses: Mobile Satellite Services and spectrum holdings
• Despite progress and validation from companies like Apple and Qualcomm, the stock price does not reflect the value of the assets
• Recent developments, including partnerships and leadership changes, indicate a promising future for GSAT, despite past challenges and skepticism from institutional investors

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.

• Kumiai Chemical Industry Co (4996 JP) is an R&D-focused agrochemical manufacturing and marketing company with herbicides occupying a large portion of sales.
• Overall sales decreased as sales in the mainstay Agricultural Chemicals and Agriculture-Related Businesses fell YoY. Overseas sales accounted for 61.4％ of total sales.
• Operating profit decreased 49.3% YoY. Recurring profit fell 11.6% YoY, due mainly to a drop in earnings of affiliates under non-operating income, despite narrower foreign exchange losses.

• Massive TSMC Rises 13.8% in Just a Week; Mediatek a Top 10 Gainer for Second Week in a Row
• TSMC (2330.TT; TSM.US): Sales Should Be Gradually Increasing QoQ in 2024F; IPhone 16 Is on Schedule. 
• PC Monitor: Long Dell Vs. Short Acer Update; Dell & HPQ Results Indicate Opportunity in Asus 

• Uni President China (220 HK), a F&B company in China, has an impressive track record of paying near 100% or over 100% of net profit in dividends since 2018. 
• The company has two segments, food (mainly instant noodle), and beverage.  Overall sales grew 1% yoy in 2023 while net profit jumped 36% yoy. 
• Given the reasonable valuation (13x forward PE), a near 40% net cash position, and most importantly a stable 8% dividend yield, the stock looks attractive.

• We see further upside to our previous above-consensus 4Q23 results estimates on low base, enhanced monetization, and faster TEMU expansion.
• That said, we believe market focus already shifted to outlook for 2024, in particular an imminent slowdown in 1Q24 and renewed concern around US curb on TEMU.
• 30% share price correction is pricing in the above scenario and valuation should gradually improve as PDD delivers back-loaded bottom line growth in 2024.

• We believe total revenue will grow by 11% in 4Q23 and 2024.
• We also believe the operating margin will improve slightly in 4Q23 and the following two years.
• Tencent sold weak business to China Literature in December 2024.

• JD.com stock price surged after its 4Q23 results and repurchase decision.
• It is not big issue that BYD sales decreased in the weak season.
• Alibaba began to close unprofitable Freshippo stores in February, but the company said it has expansion plan.

• Since the domestic revenue scale of PD-1 has been much lower-than-expected, the market seems no longer willing to offer GLP-1 weight loss drug high expectations. However, that’s not right. 
• For China healthcare, the emergence of negative domestic policies is a time for reassessment and seeking opportunities, rather than a time of blind pessimism.
• Issuing convertible bonds is clearly a bad decision for Microport, which chose to sacrifice the interests of minority shareholders. Together with weak fundamentals/cashflow pressure, the management needs to take responsibility.

• We compile our selection of small and mid-cap names with our desired characteristics of high dividend yields, value, and margin of safety.
• Our top picks are Perfect Medical Health (1830 HK), Water Oasis (1161 HK), Taste Gourmet (8371 HK), Uchi Technologies (UCHI MK), and The Keepers Holdings (KEEPR PM).
• We also provide updates on released earnings for Uchi Technologies (UCHI MK), Plover Bay Technologies (1523 HK), UMP Healthcare (722 HK), and Sitoy Group Holdings (1023 HK).

• A Senate committee moved the bill (S.3558) forward that would prohibit pharmaceutical companies from using foreign service providers like WuXi AppTec and its subsidiaries. However, rational voices are still expected.
• Seemingly conflicting proposals are mostly “noise” and disturbances to stock prices. This means in the future, we‘ll see stock prices move sharply again due to latest developments on these bills.
• WuXi AppTec should have “bottom-line thinking” and prepare some “backup solutions”.Investors don’t need to be overly pessimistic, because when global capital flows reverse, no one will mind these bills anymore.

• Precision Tsugami China specializes in the production of precision machine tools. Precision Tsugami China is part of the broader Tsugami Corporation, a Japanese company founded in 1923.
• The company’s dividend yield increased from 4.3% in FY2021 to 8.9% in FY2022 and 10.1% in FY2023. 
• We found Precision Tsugami China (1651 HK) using Smartkarma’s Smart Score Screener system.

• We believe total revenue will increase by 17% YoY in 4Q23 and 15% in 2024.
• We also believe KS will see historical high operating profit in 4Q23 and the year 2023.
• We conclude that KS has an upside of 92% and a price target of HK$90. Buy.

• We expect Tencent to report C4Q23 revenue, IFRS op. profit and IFRS net income in line, (3.3%) and (4.9%) vs. consensus.
• The robust topline growth was mainly contributed by fast growing WeChat VA (Video Account) and strong performances of <Dream Star> in December.
• We cut our TP to HK$362 to reflect operating margin decline caused by increased sales and marketing. 

• Dell has outperformed Acer and other Taiwan PC names Asus and MSI by a wide margin. Close Long Dell vs. Short Acer. Dell’s value gap has dissipated.
• Latest indications from Dell and HP highlight that the AI PC’s will drive upgrades from customers, but the PC recovery remains soft. AI PC impact only in 2025E.
• Dell and HPQ’s recent results provide positive color for upcoming Asus, Acer, and MSI results. Trade: Long Asus into its upcoming earnings results.

• Comsys Holdings (1721 JP) is one of Japan’s three largest telecommunications construction companies.
• In FY03/23, sales were JPY563.3bn, operating profit was JPY32.1bn, recurring profit was JPY30.9bn, and net income attributable to owners of the parent was JPY19.3bn. Orders totaled JPY553.1bn.
• Comsys Holdings Corporation announced that it will change its representative directors, effective April 1, 2024.

abrdn UK Smaller Companies Growth Trust’s (AUSC’s) managers, Abby Glennie and Amanda Yeaman, are looking forward to further improvement in the trust’s relative performance, as investors’ focus is now more on company fundamentals rather than macroeconomic developments. The managers are continuing to use the Matrix, a proprietary screening tool, to search for companies exhibiting high-quality, growth and positive momentum features. Despite a difficult period of performance during 2022, when rising interest rates led to a derating of growth stocks, the strategy employed by abrdn’s small-cap team has proved very successful over the last 25+ years across multiple business cycles.

• Kolte Patil Developers (KPDL IN) reported a decent Q3FY24 led by record sales value and improved realization. It is on track to achieve its guided INR 2800cr sales value for FY24.
• Demand environment continues to be robust. Kolte Patil has guided for 25%+ sales value growth even for FY25. Realization also has room to improve and should aid the growth.
• New business development activity is strong. Kolte Patil is in advances stages of discussion for projects with sales value worth INR 8000-10000cr, INR 3000-4000cr of which could close soon.

• Nihon Chouzai (3341 JP) is an integrated healthcare company whose core business is the operation of dispensing pharmacies.
• In FY03/23, Nihon Chouzai reported sales of JPY313.3bn, operating profit of JPY7.6bn, recurring profit of JPY7.7bn, and net income attributable to owners of the parent of JPY4.5bn.
• Nihon Chouzai Co., Ltd. announced the retirement of treasury shares.

• We forecast €2.6bn Adjusted EBIT in 2024, below management guidance of €2.7bn, given concerns about margin management as capacity increases 12% yoy.
• Detailed analysis of the margin gaps and key drivers of gaps at each of Lufthansa’s airlines illustrates remedial work required with new perspective.
• Bringing each portfolio company towards the Group Adjusted EBIT margin target of >8% would represent the CEO’s finest achievement (apart from helping save the company through COVID).

CoinShares International (CS) avslutade sitt senaste räkenskapsår med justerad EBITDA för Q423 på 25,7 miljoner pund, vilket ökade vinsten för FY23 till 56,9 miljoner pund (det näst bästa resultatet i företagets historia). Bolaget inför nu en utdelningspolicy med målsättningen att utbetala 20–40 % av totalresultatet justerat för valutakursdifferenser. Vi beräknar att detta, baserat på resultatet för räkenskapsåret 2023 och nuvarande aktiekurs, innebär en god direktavkastning på ca 3,4–6,8 %. CS vill expandera till USA genom att utnyttja sin option att förvärva Valkyrie Funds (som har en bitcoin-ETF i USA i sitt erbjudande) och genom sin nyligen lanserade Hedge Fund Solutions-verksamhet.

• Copper, known as the “red metal” and vital in modern civilization, has seen a significant surge in demand globally, especially in sectors like electrical, electronics, construction, and transportation.
• Global and Indian reserves of copper, use cases, production process and government push towards Copper mining and overall analysis of existing new entrants in the industry.
• India possessing only 0.25% of the world’s reserves, the overall view from mining to distribution and consumption of copper across India and companies involved in the space.

• The recent earnings of Baidu indicated solid performance for the fiscal year 2023.
• An extremely neutral analysis reveals several positives.
• The total revenue for Baidu Core’s total revenue for the year increased by 8% year-over-year, indicating strong financial resilience.

• This is our first report on Permian Resources, a Delaware-based independent oil and natural gas company.
• The company reported its Q4 and full-year 2023 earnings with significant growth and progress.
• The company finished the year delivering industry-leading returns, exceeding both internal and external expectations.

• Jazz Pharmaceuticals reported a strong financial year in 2023, with overall revenues surpassing $3.8 billion.
• This performance was primarily driven by the growth of key products in the company’s portfolio – Xywav, Epidiolex and Rylaze, which collectively accounted for a 27% year-over-year increase in revenue.
• The company’s sleep therapeutic area contributed more than $1.9 billion in annual revenue, indicating a strong demand for its offerings given the high prevalence of sleep related disorders.

• In December 2023, American multinational pharmaceutical company Bristol Myers Squibb has agreed to acquire Karuna Therapeutics for $330 per share in cash, implying a total equity value of $14B.
• The special meeting of Karuna’s shareholders to be held on March 12, 2023, to consider and vote on various proposals necessary to approve upcoming M&A deal.
• I expect the bidding battle among big pharma to acquire Karuna Therapeutics and its valuable pipeline of transformative medicines to treat schizophrenia and psychosis in Alzheimer’s disease.

• Tokyo Electron (8035 JP) is a global manufacturer of semiconductor production equipment (SPE).
• In FY03/23, the company posted revenue of JPY2.2tn, operating profit of JPY617.7bn, recurring profit of JPY625.2bn, and net income attributable to owners of the parent of JPY471.6bn.
• Tokyo Electron Limited announced revisions to its full-year earnings forecast for FY03/24.

• Skechers ended the 2023 fiscal year on a high note, reaching an annual sales record of $8 billion, a $556 million increase compared to the prior year.
• This milestone was the result of four quarterly sales records, including $1.96 billion for the fourth quarter.
• The company also achieved an annual gross margin record of 51.9%.

• Autodesk demonstrated strong performance in the fourth quarter and full year results of fiscal 2024 with 14% constant currency revenue growth in Q4.
• The report reflects Autodesk’s resilience and discipline manifested through its subscription business model, product diversification, and robust customer base.
• The company’s diversified consumer base spans various regions and industries, enabling balanced growth.

• COPRO-HOLDINGS. Co., Ltd., (COPRO) announced its 3Q FY24/3 (9 months) results.
• Key consolidated figures included net sales of ¥17,496 mn (+28.8% YoY), operating profit of ¥1,406 mn (+63.0% YoY), ordinary profit of ¥ 1,480 mn (+70.8% YoY), and profit attributable to owners of parent of ¥936 mn (+79.7% YoY).
• COPRO-CONSTRUCTION. Co., Ltd., (formerly COPRO-ENGINEERED), which operates the Company‘s core business of construction technician dispatching, proactively increased the number of recruits amid the chronically serious shortage of labor against the backdrop of regulations capping overtime work to start in April 2024 and big construction projects. 

• Monolithic Power Systems (MPS) enters 2024 with a cautiously optimistic outlook, following a record revenue of $1.82 billion for the full year of 2023, marking its 12th consecutive year of revenue growth.
• The highlights of MPS’ performance in 2023 were the consistent execution, continuous innovation, and robust customer focus.
• However, the visibility beyond the current quarter remains limited due to uncertain customer ordering patterns reflecting overall economic uncertainty.

• JD.com Inc (ADR) (JD US) reported a set of better-than-expected 4Q23 results yesterday, as the ADR rose 16% last night in US trading session. 
• The improvement in net profit margin showed that being more price competitive did not lead to lower margins. 
• I believe the key takeaway, aside from the resilient 4Q23 results and solid 2024 outlook, is the much improved shareholder return measures.

• China Vanke has caused jitters as it was reported to be closely watched by some insurers as it seeks to rollover some of its debt with insurers.
• It is reported that it has sufficient funding to repay its bond due on March 11th and is lining up a HK$1.5 billion syndication loan.
• Vanke warrants close monitoring as there is no sign of turning in its reducing contract sales, deteriorating cash position, shrinking financing ability. 

• Ryohin Keikaku (7453 JP) offers products covering all aspects of daily life.
• For FY08/23, Ryohin Keikaku reported consolidated operating revenue of JPY581.4bn , operating profit of JPY33.1bn, recurring profit of JPY36.2bn, and net income attributable to owners of the parent of JPY22.1bn.
• The company’s full-year FY08/24 forecast calls for operating revenue of JPY640.0bn, operating profit of JPY48.0bn, recurring profit of JPY46.0bn and net income attributable to shareholders of the parent of JPY33.3bn.

• The Smartkarma Corporate Webinar | Sasseur REIT: A Glimpse into China’s Outlet Industry on Feb 29 explored the Oulet sector with Sasseur REIT, a Singapore REIT focused on China Outlets.
• Sasseur REIT is 57.85% owned by the Sasseur Group operating China outlets since 2008, with 4 outlets in 3 major Tier-2 cities currently in the REIT, with room for expansion.
• Sasseur REIT is a play on China consumption and outlet operations. 2023 EMA rental income +10.7% Y/Y.  The 9.1% dividend yield stands out, at a relatively low aggregate leverage.

• Fu Shou Yuan (1448 HK) is likely to declare a special dividend in its FY23 result announcement as indicated in its board meeting notification.
• Net cash at end-1H23 amounted to 14.5% of its current share price, providing room for imagination of the amount of special dividends. 
• Besides raising its yield, returning excess cash should raise its ROE. This will also demonstrate the management’s confidence on the outlook and its financial position.

• This is our first report on transportation and fintech platform provider, Grab Holdings Inc.
• The company had a pivotal year in 2023, delivering on key goals and achieving profitability in adjusted EBITDA since the third quarter and earning a positive net profit in the fourth quarter.
• The company experienced a series of enhancements, including a successful rebuild of their mobility business which had been vastly impacted by the pandemic.

• Markets continue to be extremely bearish on HK/China, we look at the latest property market fundamentals and macro indicators, as well as company updates of our top picks
• In the latest budget, the HK government just announced to scrap all spicy measures on property market and eased mortgage policy
• With government support, we view the bottom of physical market is near.  For further re-rating, we need interest rate to go down, as well as resumed fund flows.

• The 72.5% decline in SITC International (1308 HK)‘s FY23 earnings is disappointing but should already reflected in the share price given the profit warning. Instead, this may be the trough.  
• Spot freight rates for key intra-Asia routes have already recovered since 3Q23, with the YTD level higher than the 2H23 average. The 1H24 result may show a sequential rebound.
• Even assuming flat YoY earnings in FY24, it still sits on a 9% dividend yield. The projected ROE of over 24% and net cash position mean 1.6-1.7x P/B undemanding.

• Of the six Malaysian banks screened, we keep quality play Maybank on the buy list and switch our prior buy RHB for CIMB
• CIMB is our value pick for its undemanding PE and PBV whilst second from top in post-provision profitability; its credit quality is improving, a positive trend we expect will continue
• We maintain quality pick Maybank as a buy for its relatively undemanding valuations, and strong balance sheet credentials in terms of credit quality and capital adequacy

• Zoom Video Communications, Inc reported financial results for its fiscal Q4 and full-year 2024.
• The company’s revenue for the Q4 reached $1.146 billion, up 3% YoY. Zoom’s Enterprise revenue grew by 5% YoY and formed 58% of total revenue.
• The company’s non-GAAP income from operations grew 10% YoY to $444 million.