Equity Bottom-Up

• As expected, Rohm has decided to invest ¥300 billion in the JIP-led buyout of Toshiba: ¥100 billion in voting equity shares and ¥200 billion in non-voting preferred shares. 
• This would make Toshiba an equity-method affiliate of Rohm, facilitating synergetic cooperation in power semiconductors. The investment is large, but Rohm would still have a sound balance sheet.
• Rohm also plans to buy Solar Frontier’s Kunitomi factory to meet SiC power device capacity requirements through 2030. Investors can now focus on profit growth, which should resume next year.

• TSMC reduced 2023 revenue guidance when it reported results during the week. A weaker than expected economy in China and general economic weakness was blamed.
• However, the company’s results beat Street expectations and management maintained its long-term gross margin guidance of 53%+, which implies the company maintaining a structurally higher margin.
• Shares fell after results on a profit taking excuse — We however note that latest guidance also reaffirmed multi-year strength ahead. Structural Long.

• We expect Kuaishou to report C2Q23 revenue and non-IFRS net income that are in-line and 27% vs consensus, respectively.
• We slightly cut our revenue forecast for live streaming but increased our revenue forecast for online ads. Kuaishou’s margin beat is mainly due to efficient cost control, especially in overseas.
• Kuaishou still has several minor positive catalysts, but WeChat Video Accounts is the major short thesis in the long run. We raise EPS forecasts, but maintain SELL.

• This is our first report on one of the largest private sector banks in Brazil, Itau Unibanco.
• The loan portfolio showcased growth despite signs of a slowdown, with the SMEs loan portfolio registering an increase of 9.2% for Q1 2023 compared to Q1 2022.
• We initiate coverage on the stock of Itau Unibanco Holding S.A. with a ‘Hold’ rating.

• This is our first report on Monolithic Power Systems, one of the largest semiconductor-based equipment companies.
• Revenue from communications also increased due to a slight increase in revenue from the 5G infrastructure.
• We initiate coverage on the stock of Monolithic Power Systems, Inc. with a ‘Hold’ rating.

• HDFC Bank (HDFCB IN) reported weak QoQ growth in deposits and advances. This is however temporary due to seasonality. The growth trajectory for rest of the year remains intact. 
• HDFCB continues to invest aggressively into expanding its geographical presence to drive growth. Benign credit cost enables investments without impacting the ROA.
• HDFC Ltd (“HDFC”) has been also merged into HDFCB effective Jul 1. The merged entity is carrying sufficient liquidity at 120%+ LCR to meet the additional CRR and SLR needs.

• We published on Polycab as our 2023 high conviction idea on Dec 25 2022. Since then, the stock has been up 75%+, exceeding our 65%+ upside FY26 target.
• The steep rise was probably driven by strong earnings growth on the back of upbeat demand environment led by healthy domestic capex, rising exports and robust housing demand.
• At the current valuation, Polycab is richly valued and we assign a “SELL” rating. Polycab’s current market cap at INR 68700cr+ is well above our FY26 projection of INR 63500cr+.

• NDRC issued “Guiding Catalogue for Industrial Structure Adjustment“. The newly proposed adjustments deserve investors’ attention, because they are the areas where investors could receive excess returns in China healthcare.
• Obtaining assets from external sources remains paramount for MNCs. License-in mode isn’t outdated. As long as companies can make money, the ways to acquire assets can be diversified.
• Intco’s performance/stock price has bottomed out, and would gradually resume growth/rebound afterwards. Its market value would return to RMB20-30 billion. Intco would achieve a distress reversal, with attractive investment value.

• This is our first report on Discover Financial Services, a prominent consumer finance company.
• Net interest income grew significantly, supported by an expanding net interest margin driven by higher prime rates.
• Additionally, the company introduced Discover Financial Health Improvement Fund to improve the financial well-being of low- and middle-income individuals, communities, and small enterprises.

• This is our first report on Latin American telecom major, America Movil.
• Growth in prepaid and postpaid subscriptions remained steady, contributing to an 8.3% expansion in the postpaid base and a 5.3% increase in the prepaid base.
• Despite a 4.6% year-on-year decrease in Q2 revenue due to the Mexican peso’s appreciation against other currencies, the company still posted MXN 203 billion in revenue, with service revenues declining by 4.2%.

• TSMC reported earnings. They beat Q2 estimates, but importantly they guided down Q3 and FY 2023 estimates.
• The Q2 beat was widely expected regarding revenue, given that TSMC reports monthly revenue, but the Q3 guide was not.
• The midpoint of the guidance has the year-over-year decline decelerating, which I didn’t expect. Moreover, the -10% annual guide throws some water on the second-half recovery. Yes, the second half will be higher than the first, but the recovery is much more muted than historical. And what’s more, margins are looking worse for N3 than a typical node.

• This is the First of a series of reports on Nippon Paint Holdings (4612 JP) and in this insight, we deep dive into the company’s Japanese business.
• The automotive coating biz in Japan is heavily reliant on the domestic automotive market while decorative paints is facing challenges due to slowdown in population in the country.
• The outlook for Japan biz remains stagnant with growth rates slowing down and margins on a downward trend.

• Ownership levels in Voltronic Power Technology rise as EM funds open new positions.
• A record 15.7% of EM long-only funds own a position, with Wasatch and Morgan Stanley among the high conviction holders.
• Voltronic Power Technology is now the 12th most widely owned stock in Taiwan and the 7th most overweighted company.  

• Pharmaessentia Corp (6446 TT) has reported record-high revenue of NT$509 million for June 2023, representing growth of 84% YoY and 22% MoM, mainly driven by its sole marketed product Besremi.
• Besremi got marketing approval in Japan this year. Besremi’s marketing application is also under review process in China, Hong Kong, Singapore, and Malaysia.
• In April, Pharmaessentia has raised $462.74M through the issuance of 34M GDS to accelerate commercialization of Besremi and global clinical trials. The company has also announced NT$9.6B equity buyback program.

• Digital Realty Trust, Inc. is executing a phenomenal strategy, with additional pipeline developments coming online soon.
• Digital Realty is faced with cyclical valuation concerns, we think they will be short-lived.
• Digital Realty Trust, Inc. (NYSE:DLR) presents an interesting talking point

OpGen has announced that Curetis (its German subsidiary) has met its objectives agreed under its extended R&D collaboration with FIND (a global non-profit alliance for diagnostics), triggering a $0.2m milestone payment to OpGen. Under the expanded scope of the feasibility study for the Unyvero A30 RQ platform, OpGen was required to provide three more deliverables: an antimicrobial stewardship module, a ‘data everywhere’ concept and next-generation sequencing (NGS) strain analysis. While successful completion of the feasibility stage supports Unyvero A30’s applicability in low-to-middle income countries (LMICs), it also paves the way for a subsequent R&D agreement with FIND in developing LMIC-specific Unyvero A30 antimicrobial resistance (AMR) solutions. We await further details from management on the next potential steps of the collaboration.

Ahead of Wheaton Precious Metals’ (WPM’s) Q223 results, scheduled for 10 August, we have honed our forecasts to reflect, principally (1) Newmont’s suspension of mining at Penasquito since 8 June, (2) updated metals prices, (3) estimated production from Salobo in the light of Vale’s Q223 production and sales report (released on 18 July) and (4) the closure of the Minto mine on 13 May. As a result, we have reduced our Q223 basic EPS forecast by 5 US cents per share to 28 cents per share and our FY23 adjusted basic EPS by 8 cents per share (or 6.1%) to 124 cents per share.

• Nidec reported strong Q1 results – operating profit of ¥60.2 billion (+35% YoY), significantly above Street expectations of ¥45 billion
• The big positive was a rebound in profitability following successful structural cost cuts last year. The key negative is a cut to unit shipments for key growth driver, E-axles. 
• We remain bearish for now given valuation of 25x EV/EBIT.  We are not sure that the new growth driver in Motion & Energy will offset lowered expectations for EVs. 

• We think the tailwinds of China’s consumption downgrade for PDD are overblown, while TEMU will be more of a drag than a support for bottom-line in quarters ahead.
• 2Q results to be announced next month will finally validate our thesis on the company’s earnings risk which we flagged back in last December.  
• The markets have been pricing in a sharp slowdown after a short-lived euphoria around its seemingly strong 1Q results, yet downside surprises could still catch investors off guard. Stay neutral.

• Market expectations for Yakult’s 1QFY24 earnings seem weak, with consensus looking light, and the share price currently lingering near the lower boundary of the minus 2x trend channel.
• Therefore, we believe that even a minor earnings beat next week could potentially drive Yakult Honsha (2267 JP)‘s share price back up to the ¥10,000 level.
• We anticipate that Yakult 1000 has the potential to drive that earnings beat, as it is projected to grow by as much as 65% YoY this quarter.

• Erajaya recently released its 1Q2023 results with net sales increasing by +29% YoY but with -20.5% decrease in net profit due to increased opex related to its expansion and inventory build.
• The company plans to add 400 new outlets this year, lower than last year’s 575, as it ramps up its newer stores, which should help to improve profitability in 2H2023.
• Erajaya continues to add to its stable of brands outside mobile handsets, including JD Sports, Wellings, Grand Lucky, The Face Shop, Paris Baguette, and has launched EraBlue with Mobile World.

• China Resources Beer Holdings (291 HK) is a USD21bn red-chip company, and the largest beer company in China in terms of sales volume.
• The company is a perfect fit for the GARP (growth at a reasonable price) strategy, and visibility in earnings is also high for the next 3-5 years.
• Weak sentiment in H-share stocks and in overall China macro/consumption numbers provide a good entry opportunity for the stock.  

• FY’23 growth forecast increased despite push outs in the EUV order book and lower than expected IBB revenues.
• Broad-Based recovery is now looking more like a H1’24 scenario with lingering uncertainty as to how it quickly it will unfold thereafter
• System sales to China increased from 8% of revenues in Q1’23 to 24% in Q2’23. Non-China DUV order cancellations are being snapped up by China at an unprecedented rate. 

• Ace Hardware‘s June SSSG confirmed very strong growth momentum and the positive impact of its BOOM sale, with headline SSSG at +10.7% YoY, after a flat post-Lebaran performance in May.
• The company’s strategy of using influencers to promote the company has been a great success for its #Bisakejadian campaign, and BOOM sale with foot traffic continuing to improve at stores.
• Ace Hardware plans to step up its store expansion and ramp up new store formats to drive growth, with up to 15 new stores this year. Valuations are attractive.

• Huawei Technologies Co. Ltd. on Tuesday launched the first commercial use of its artificial intelligence (AI) large language model (LLM) Pangu for the mining industry, as it seeks to make use of the next-generation technology to improve the sector’s safety and productivity.
• Developed in partnership with state-owned Shandong Energy Group Co. Ltd. and its unit Yunding Technology Co. Ltd. (000409.SH), the Pangu Mine Model has been deployed in the coal giant’s mines in East China’s Shandong province, Huawei said in a press release Wednesday.
• It also touted the launch as the world’s first commercial large AI model for the energy sector.

• In 1Q23, SK Biopharmaceuticals Co Ltd (326030 KS) recorded Xcopri U.S. revenue of KRW53.9B, up 70% YoY and 8% QoQ. Xcopri growth is expected to accelerate in US in H2.
• The company’s operating loss narrowed to KRW23B in 1Q23, recording the lowest level excluding the one-off sales, compared with operating loss of KRW45B in 4Q22 and KRW37B in 1Q22.
• The company is looking for Xcopri revenue of KRW300B in 2023. With stable cash generation and expansion into three new modalities, SKBP aims to become a $15B company by 2026.

• United Arrows (7606 JP) is a bellwether retailer for the premium fashion sector.
• Its slow initial recovery after the pandemic worried many but the last year saw a solid improvement, even if sales are still well below the peak.
• Following rationalisation, the fashion firm has now put in place plans to double sales to ¥250 billion in the next decade and we expect a return to 10% OPM.

• Money Forward (3994 JP) reported 2QFY11/2023 results yesterday. Revenue increased 43.5% YoY to ¥7.3bn (vs consensus ¥7.18bn) while operating losses dropped to ¥1.58bn vs ¥2.15bn in 2QFY11/22 (vs consensus ¥1.65bn).
• 2Q revenues were within its guidance of ¥7.1-7.4bn and MF has revised its FY11/23E guidance upward based on the progress made during the first half of the year.
• MF’s non-BO business margins continue to decline, and the plan to revise price plans for sole proprietors in December should result in attrition and further increase in advertising spend.

• In this insight, we conducted fundamental analysis and look at major share price drivers for Hysan Development, who is a major landlord in Hong Kong
• Hysan Development has a simple business model and owns a retail/office portfolio in Causeway Bay, Hong Kong.  Its retail properties are largely tourist-centric
• Despite trading at attractive valuation, the stock has low trading liquidity.  Also there is no visible catalyst which means there is little chance for re-rating for the stock

• Imugene Ltd (IMU AU) got US patent for its oncolytic virotherapy CF33 products, including VAXINIA and CHECKVacc. The patent protects the method of composition and use of CF33 until 2037.
• Imugene has appointed two-decade experienced Dr Ron Weitzman as Interim Chief Medical Officer. Dr Weitzman’s expertise in solid-tumor and hematologic malignancies is of particular interest for Imugene.
• Imugene is actively recruiting patients for its five ongoing clinical trials. The company has a strong balance sheet holding more than A$150 million in cash, providing a runway through 2025.

• We had a call with ChipMOS management about their latest long-term R&D efforts and drivers. 
• We see many of the company’s key clients’ businesses turning a corner, hence see these developments likely to benefit ChipMOS.
• The company will be reporting earnings on August 3rd, we have an Outperform rating for the shares. Could see some continued margin weakness, however we believe forward outlook is improving.

• We raise iQIYI’s membership/ads growth in 2Q23 from 12.9%/10.6% to 15.7%/22.4% YoY because of high quality content and recovery of major advertisers.
• We upgrade iQIYI’s rating to BUY because:1) iQIYI exhibits advantages in content quality and production capabilities. 2) Major advertisers are expected to increase their advertising budgets continuously.
• Emergency of mini drama is another variable for the Chinese online video industry. However, we anticipate the impact on iQIYI is relatively limited currently.

• Herein we revise and update MLKN estimates following MillerKnoll’s FY23 earnings report and FY24 guidance.

• Our 1QFY24 diluted non-GAAP EPS estimate is now $0.20, down $0.10 from our previous (reduced) $0.30 estimate.

• Our FY24 annual estimate is now $1.82 (down from $2.00), below the midpoint of the $1.70-$2.00 management outlook.

• TSMC will report its 2Q23 results today in the afternoon Taiwan time. Look for key readthroughs from the company in terms of robustness of the AI boom and PC recovery.
• AMD’s Chairman and CEO arrived in Taiwan and met with key supply chain partners — Related stocks are surging; ASML beat expectations and raised its guidance.
• Taiwan AI,  PC-linked, and AMD-linked shares are flying; Our recent Memory Monitor piece also highlights signs that the DRAM cycle has bottomed.

Nano Dimension has raised its tender offer for Stratasys again, increasing its cash offer from $24 to $25 per share and extending the closing date to 31 July. If successful, it plans to explore options for further consolidation of the industry. If unsuccessful, it will review its Stratasys investment and may sell its stake on the open market.

• Whitehaven Coal (WHC AU) released its June Quarterly. The company is in blackout (starting July 1st) till its release of annual results on August 24th, 2023.
• June quarter OCF was 435 mn AUD ( Avg Coal Px 177 USD/ton), and net cash on the balance sheet was 2.65 bn AUD representing 45% of market capitalization.
• To complete its buyback program, 147 million shares remain left to repurchase (current o/s shares 836 mn). 196 million shares have been repurchased so far since March 2022.

• The company has shifted its growth driver from rail equipment to EV parts supplier.
• Q1 23 growth came from emerging equipment coming to the rescue at a double digit rate when the train equipment segment recorded a slight decrease. 
• Compared to last year, the company is trading at a lower valuation, yet its key growth driver has a better and more sustainable quality. 

• Max Healthcare Institute (MAXHEALT IN) reported robust Q4 performance, with revenue and EBITA increasing 26% and 44%, YoY, respectively. Growth was driven by increase in ARPOB and occupied bed days.
• Max commissioned new 92 beds oncology block at one of its network hospitals in March. New oncology block contributed positively to revenue and EBITDA in the first month of launch.
• Max is on track to double its bed capacity in next 5–6 years. Apart from ongoing brownfield expansions, the company has land parcels with potential to add 1,000 beds.

• Porton’s performance declined significantly in 23H1 compared with high base last year, because most of Pfizer’s COVID-19 big orders have been completed. Porton’s performance in 2023 would be under pressure.
• Porton isn’t a first-tier CXO and lags behind industry leaders in terms of new businesses (CGT/ADC CXO). Valuation of entire CXO sector and Porton hasn’t yet reached an inflection point.
• Market’s expectation for CXO would decrease and then bottom out in 2023H2. Whether CXO’s performance would rebound in 2024 still needs to wait for the turnaround in macro environment.

The Diverse Income Trust (DIVI) has two co-managers, Gervais Williams and Martin Turner at Premier Miton, who employ a genuine all-cap UK equity income strategy. DIVI’s long-term total returns are a function of its income and above-average income growth and although valuations can vary, over time they become less important as they trade in a range. While the trust’s performance has been disappointing over the last two years as stocks have derated and AIM stocks have underperformed, its income profile remains robust; hence, the managers are anticipating an improvement in DIVI’s performance. The trust has delivered a rising level of regular annual dividends throughout a range of market conditions.

• Organto announced the launch of ORO, a brand focused on premium non-GMO fruits and vegetables.
• This morning, Organto Foods (OGO:TSXV) announced the introduction of its latest innovative brand offering, ORO.
• ORO focuses on premium non-GMO fruits and vegetables, complimenting the I AM Organic brand (organic fruits and vegetables) and =Awesome Fruits (mid-tier non-GMO fruits).

• Ally Financial is about to release its Q2 2023 earnings tomorrow as tightening within the auto loans market continues.
• The deposit mix will be a key area to watch as it will have a major impact on the company’s return on tangible common equity.
• The company is expected to report its second quarter of 2023 on Thursday.

• We expect JD to report C2Q23 revenue in-line vs. cons., and non-IFRS net income 6% vs. consensus.
• Although we raised our GMV estimate, our 5% YoY revenue growth estimate is unchanged as we expect 3P take rate decline to partially offset GMV growth.
• We maintain SELL and TP but cut FY23 non-GAAP net margin to 3% due to the greater share of lower margin 1P revenue vs. our prior estimate.

• In this insight, we discuss numerous gap trades involving Korean preferred and common shares in 3Q 2023. 
• The excessive gaps in the preferred and common shares of Kumho Petrochem, LG Electronics, and Samsung Electronics could reverse in the next several months, in our view.
• We see some attractive longer-term opportunities for Amorepacific Corp, Doosan Fuelcell, LG Electronics, and Samsung Electro-Mechanics which have especially high discounts for the preferred shares versus their counterpart common shares. 

• China has started taking measures to optimize fertility policies. The inclusion of assisted reproduction technologies in medical insurance is a general trend, which would generate increasing demand in the future.
• From the current domestic assisted reproductive industry chain, there is significant import substitution space and growth potential in the fields of related drugs, prenatal/newborn genetic testing, and downstream medical services.
• Companies such as Livzon/BGI/Jinxin would be the direct beneficiaries of related policy. We analyzed the industry characteristics, investment rationale, key risks and comparison with peers of these companies. 

• We expect Shakey’s Pizza (PIZZA PM) to release its results for H1 2023 in the second week of August. The stock just went ex-dividend today (17th July 2023).
• We estimate Q1/H1 FY23 revenue to grow 36%/59% and profits to increase by 31%/71%, led by slight margin expansion for Q2 over Q1 as guided by the company. 
• Trading at 14.5x/11.1x PE with a growth profile of >20% CAGR over the next 4-5 years, given the Potato Corner expansion, Shakey’s Pizza could be an attractive investment opportunity. 

• In this insight, we conducted fundamental analysis for SHKP, which is a proxy for Hong Kong given 70% of its GAV comes from Hong Kong
• SHKP has well diversified businesses in residential, retail and office in Hong Kong and China, and there are a lot of share price drivers
• We would recommend a BUY as long as the stock trades below HKD100, as the stock has a trading range of HKD100 to HKD 130

• Hisamitsu Pharmaceutical Co (4530 JP) announced strong Q1FY24 result, with double-digit top-line and triple-digit bottom-line growth, driven by its largest selling OTC product, Salonpas. The company has reiterated FY24 guidance.
• In Q1FY24, Hisamitsu has launched Apohide Lotion in Japan for the treatment of primary palmar hyperhidrosis and Xelstrym transdermal system in the U.S. for the treatment of Attention-Deficit/Hyperactivity Disorder (ADHD).
• Hisamitsu has announced buyback of up to 2M of its shares (representing 2.57% of issued shares) from July 2023 to February 2024 for ¥10B.

• We expect Shenzhen International (152 HK) to sustain efforts in realising and releasing the value of its assets, and this will be positive in narrowing its discount to book.
• The plan to issue REIT by using Hangzhou and Guizhou logistics projects as underlying assets will add to earnings. We estimate they account for 14% of SZI’s total project area.
• Subscription to A-share issuance of Shenzhen Expressway Co (548 HK) will increase its book value by Rmb5bn. This will lower its P/B multiple to 0.46x, from 0.54x.

• This is our first report on HSBC Holdings PLC, one of the biggest banks and financial service providers in the world.
• Notably, Hong Kong, Mainland China, the Middle East, and the U.K. have shown strong economic resilience and recovery.
• We initiate coverage on the stock of HSBC Holdings PLC with a ‘Hold’ rating.

• This is our first report on UBS Group AG, one of the largest banking service companies.
• The company delivered a decent result in the last quarter driven by strong flows across Global Wealth Management and Asset Management.
• The company will continue to prioritize a capital-light and client-focused Investment Bank model while managing activities outside its strategic focus.

• This is our first report on Truist Financial Corporation, one of the largest regional banks in the United States.
• Truist opened 146,000 bank accounts online.
• We initiate coverage on the stock of Truist Financial Corporation with a ‘Hold’ rating.

• Sumber Alfaria Trijaya (AMRT IJ) booked some strong SSSG for June bringing its YTD number into line with its FY2023 projections after post Lebaran adjustment in May. 
• The company will embark on a more aggressive store rollout for this year with plans for 2,100 new stores, including 200 Alfamidi stores and 500 Lawson convenience stores. 
• Sumber Alfaria Trijaya Tbk Pt (AMRT IJ) continues to grow its membership program under AlfaGift with 16.3m members, which helps to gather valuable data and grow sales. Valuations are attractive.  

• TSMC: 9.9% premium, continues to stay above one standard deviation from historical median… Earnings coming this week.
• UMC: 0.0% ADR premium… Trading on par with local shares… Earnings next week.
• Chunghwa Telecom: -0.8% discount represents relatively deep discount vs. history.

• Shift reported 3QFY08/2023 results on Friday and the company’s revenues increased 34.2% YoY and OP more than doubled during the quarter. Both revenue and OP beat consensus estimates.
• Conclusion of unprofitable projects and expansion into upstream services have helped earnings to expand, and we expect full-year earnings to comfortably beat guidance and consensus estimates.
• Shift’s share price moved up by 19% following earnings announcement and has been up more than 39% YTD, and we would recommend holding on as there is further upside.

• New Horizon Health reported a solid set of preliminary results for 1H2023
• We speak to the company’s management post result announcement to figure out the key drivers and summarize the key points in this note.
• The company upgraded its full year guidance and is on track to meet its long term target.

• Union Gas Holdings’ Teo Hark Piang ups stake to 8.05% Seatrium, Wilmar International, Singapore Airlines (SIA), UOL Group and DBS Group led the net institutional inflow for the five sessions.
• With over 40 years of operating track record, Union Gas Holdings’ three key businesses comprise liquefied petroleum gas (LPG), natural gas, and diesel.

• We expect JDL to report C2Q23 revenue and non-IFRS net profit margin (1.5%) and 0.4ppts vs. consensus. We expect 2Q revenue (excl. Deppon) to grow 5%~ YoY .
• JDL is facing increasing competition from (1) the recent launch of Cainiao’s high-end delivery service, (2) improved ZTO service, and (2) Douyin’s actions to increasingly in-source logistics.
• We maintain JDL’s SELL rating but raise its TP to HK$ 9.4, as we expect JDL will lower staffing costs, and by reducing staff redundancy.

• SINGAPORE-LISTED real estate investment trusts (S-Reits) continue to hold up despite decelerating global growth, with the iEdge S-Reit Index generating 2.1 per cent in total returns in the first half of 2023, outperforming the Straits Times Index’s 1.2 per cent and the FTSE EPRA Nareit Asia ex Japan Index’s -1.7 per cent.
• The 10 S-Reits were Keppel DC Reit, Cromwell European Reit (Cromwell E-Reit), Frasers Logistics & Commercial Trust, Frasers Hospitality Trust, Paragon Reit, Frasers Centrepoint Trust, Aims Apac Reit, ParkwayLife Reit, CapitaLand India Trust, and CapitaLand Ascott Trust.
• Outperformance was driven across specialised, healthcare and hospitality sub-sectors at 7.5 per cent, 5.2 per cent, and 4.1 per cent total returns respectively.

• Whole Earth Brands, a sustainable sweetener firm, has seen a slowdown in growth, tightening margins, and rising debt since going public.
• Despite the odds, the company is countering these challenges with a strategy that includes cost reduction, improved distribution, and portfolio expansion.
• A recent buyout proposal from the company’s largest shareholder has added a new dimension to the company’s future. 

• In this insight, we conducted fundamental analysis on Wharf REIC .  It has a simple business model that it operates key malls in HK including Harbour City and Times Square
• Macro-Wise, despite Wharf REIC should be seeing a recovery trend in terms of retail sales, the weak Chinese economy could pose concern on Wharf REIC’s retail sales
• Wharf REIC is also facing several headwinds such as high interest cost and weak office market in Hong Kong.  We view the re-rating potential limited despite attractive valuation

• This iThis is our first report on a global custodian and asset management behemoth, Bank of New York Mellon Corp.
• This After a surge in deposit balances following recent market fluctuations, BNY Mellon finished the quarter slightly higher than its starting point.
• The company’s broader liquidity platform, managing over $1.3 trillion of cash and short-term investments, witnessed growth in most channels.

• This is our first report on global beverage giant, Molson Coors Beverage Company. has exhibited commendable resilience this quarter, particularly with their premium light brands in the U.S.
• Their brands, Coors Light and Miller Lite, registered double-digit revenue growth, significantly aided by their first Super Bowl campaign in over three decades.
• We initiate coverage on the stock of Molson Coors Beverage Company with a ‘Hold’ rating.

• This is our first report on State Street, a prominent provider of asset servicing and other financial services in the U.S.
• The company experienced a varied market performance in the second quarter due to continued strength in developed equity markets, weakness in emerging markets, and a subdued market environment.
• State Street onboarded $1.2 trillion of Assets Under Custody/Administration (AUC/A) primarily through the State Street Alpha platform, underscoring its effectiveness.

• This is our first report on one of the largest insurance companies, the Allstate Corporation.
• The company had a mediocre quarterly result and saw a 26% year-over-year increase in total revenues, totaling $13.8 billion.
• This was fueled by a rise in premiums, investment income, and realized capital gains, with total premiums showing a 9% year-over-year growth to reach $12.5 billion, driven by growth across all segments, especially the auto insurance segment which grew 11% year over year.

• We expect the 2Q23 online music revenue growth to be 34.4% YoY, driven by more promotions to drive up users’ retentions;
• We anticipate the 2Q23 social entertainment growth rate to be (12.9%) YoY, due to intense competition and strengthened regulatory in live streaming. 
• We expect TME’s 2Q23’s rev./non-GAAP net income to be (1.8%)/ (3.9%) vs cons. We maintain SELL because of continuous pressure from Bytedance’s Soda Music, Wechat Video Account and Kuaishou.

• Neuren Pharmaceuticals (NEU AU) announced the expansion of partnership with Acadia Pharmaceuticals for trofinetide. Acadia’s exclusive license for trofinetide in North America has been expanded to a worldwide exclusive license. 
• Neuren is now entitled for additional payments and will receive $100M up-front, plus additional potential milestone payments of upto $427M and royalties on net sales of trofinetide outside North America.
• Neuren has also granted Acadia an exclusive worldwide license to develop and commercialize NNZ-2591 for Rett and Fragile X syndromes and retains worldwide rights to NNZ-2591 in all other indications.

• In this insight, we highlight the pricing gap divergences of the major Korean holdcos and opcos in 3Q 2023.
• Of the 38 pair trades, 22 of them involved holdcos outperforming opcos YTD and 16 of them involved opcos outperforming holdcos in the same period.
• We highlight 38 pair trades that involve Korean holdcos and opcos.

• The recent announcement that Indonesia will allow foreign doctors to operate in Indonesia should benefit listed healthcare players with Siloam International Hospitals being a key beneficiary of the move.
• The company has come out of the pandemic stronger and more profitable with an ongoing focus on increasing the complexity of treatments and the efficiency of operations. 
• Siloam International Hospitals will continue to open 1-2 new hospitals each year but it only utilises 3,000 out of 7,000 bed capacity leaving room for organic growth. Valuations are attractive.

• In 1Q23, Bangkok Chain Hospital (BCH TB) recorded 62% YoY decline in revenue from hospital operation, dragged by 39% YoY decline in revenue from general patients (66% of total revenue).
• COVID-19 revenue contributed 48% of revenue in 1Q22, thereby creating a high base for 1Q23. Even if we exclude COVID-19 revenue received in 1Q22, 1Q23 revenue was down 28% YoY.
• BCH will need time to recover and record growth. Consensus expects BCH to report revenue and EPS decline of 34% and 47%, YoY, respectively in 2023.

• A combination of strong property values, sound balance sheet and expansion to second Philippine property will produce strong result in sequential quarters ahead.
• Macro factors in market blur expectations for investor interest at this point in other major players in the Entertainment Zone space.
• Regulators predict Philippine GGR wil reach US$10b by 2027, making it among the globe’s most attractive gaming investment targets.

• We expect Atour to report 2Q23 revenue and non-GAAP NI at 94% YoY and 259% YoY, which is 22% and 20% above BBG consensus respectively. 
• We expect Atour’s RevPAR in 3Q23/2023 increase to 110%/114% of corresponding 2019 level from previous estimate at 105%/112%. 
• We maintain the stock as BUY rating, and maintain TP at US$35 because the operational gains has been mitigated by FX loss in terms of valuation

• Kinatico Ltd (ASX:KYP) is a ‘Know Your People” regtech company providing workforce compliance monitoring and management technology and services.
• KYP has announced in a flash update that it expects to report FY23 NPAT greater than $0.2m, marking its first profitable full year since listing.
• This is ahead of our FY23 NPAT forecast of $0.14m. 

• Ant’s buyback valuation of $79bn is in line with market expectation
• While 40% loss is deep for the latest round investors, earlier investors are still in the money
• Alibaba is expected to record a profit of $18bn if it decided to join the buyback

• It will take a couple of years to see financial improvement but recent reforms suggest  criticism of Seven & I’s inability to change may be increasingly unfair.
• The latest in-group merger further demonstrates Seven & I’s desire to refocus on food and FMCG.It also suggests that Seven & I may double down on divestment from non-food retailing. 
• The share price may fluctuate but the outlook for domestic fundamentals are better than they have been for years.

• Another blow out quarter for Fast Retailing – beat and raise
• Fears (well, mine) of a miss in China were unfounded
• Still, Q3 results do nothing to change the view that this is one expensive stock

• Nanya Tech management extrapolated on their recent results call that they believe 2Q23 was the bottom for the DRAM cycle.
• We’ve updated our Nanya Tech financial model and estimates; we still see a short-term trade back to Nanya Tech’s mid-June high. However, Elan Microelectronics is a Long with more edge.
• While Nanya’s comments indicated a more delayed recovery for Memory than Micron’s recent guidance, overall the industry for Micron, SK Hynix, and Samsung appears to be turning a corner.

• Fast Retailing (9983 JP) announced its 3QFY23 results today, surpassing the consensus OP estimate by approximately 10%.
• Notably, there was strong revenue growth for Uniqlo, including in recently underperforming markets such as mainland China and South Korea.  
• Despite the strong set of results, it appears that Fast Retailing is overvalued as the stock is currently trading at a valuation of over 20.0x its medium-term FY27 OP target.

• Shopping may be a tiny fraction of Japan Airlines (9201 JP) business but every little helps.
• JAL has long offered a popular mail order catalogue selling premium products but has now converted its catalogues into an online mall. 
• This means it can offer many more and new types of merchant and product, and create more connection with its customers.

• We estimate Baidu’s ads revenue growth in 2Q23 will be 10.8% YoY. We largely cut our forecast of 3Q23’s ads revenue growth from 14.7% to 7.1%.
• We lower Baidu’s core other revenue growth in 2Q23 from 18.0% to 9.0% YoY. Baidu’s smart transportation AI cloud business has been affected by the contraction in local government expenses.
• We expect Baidu’s 2Q23’s rev./non-GAAP net income to be (2.3%)/ (1.9%) vs cons, also cut the TP to $162, which implies 16.5X PE in 2023.

• Fenbi Ltd (2469 HK) announced after market today a very strong positive profit alert for 1H2023, with adjusted net profit up not less than 182% yoy.  
• As a reminder, share price was heavily sold off in June due to pre-IPO shareholders selling, as well as weak market sentiment, niche sector, and new stock (under researched).
• Even with the recent bounce back in share price with heavy volume, Fenbi is still very undervalued.

• On July 7, HKMA announced measures to ease property based lending. The major changes involve relaxation of LTVs, according to property values
• We see these policies target the up-graders and will support the residential market. Housing price has been on a decline trend since early 2022
• Residential developers are trading at attractive valuation.  In particular, we see a lot of upside for 17 HK NWD and 101 HK HLP

• Levi Strauss managed to exceed analyst expectations in terms of revenue as well as earnings.
• Starting with Levi’s brand, they increased market share this quarter, establishing share leadership in the United States among the important 18- to 30-year-old target consumer group, and they continue to increase share in women’s denim bottoms.
• The Levi’s brand increased by 9% in the quarter, with their men’s bottoms business reaching a significant level in Q1 and women’s bottoms generating its highest revenue of any quarter.