Equity Bottom-Up

• Meituan’s delivery workers started a strike in Shanwei City of Guangdong Province.
• Meituan called many of its delivery workers from other cities nearby as substitutes.
• We believe the hard job market pushes Meituan to the very font line of industrial relation.

• Japan’s tourism scene is back in action albeit still missing a contribution from China.
• On-The-Ground research in Japan has confirmed the above point and the crowded Narita airport.
• Keisei Electric Railway Co (9009 JP)operates Skyliner which connects Narita Airport to downtown Tokyo. 

• NIdec’s full year FY3/23 operating profit declined 41% to Y100b, far short of analyst estimates
• However, FY3/24 corporate guidance for Y220b in operating profit is very bullish and assumes a V-shaped recovery in margins
• Given the macro outlook and lack of clarity on the restructuring charges, we prefer to remain cautious. 

• Oriental Land (4661 JP)’s revenue in 4QFY23 could miss consensus by around 12%, but its profitability could exceed consensus expectations by around 20%.
• The shares did not react to beating consensus and revising up its guidance in the last quarter. This suggests limited upside risk for the company’s shares following 4QFY23 earnings.
• Despite consensus medium-term OP estimates, Oriental Land appears to be significantly overpriced, with shares trading at a consensus FY27 EV/OP multiple of 33.4x.

• IHH Healthcare (IHH MK) reported 11% YoY revenue growth in its core hospital and healthcare business in 4Q22, mainly driven by higher inpatient admissions in most of the hospitals.  
• In November 2022, India’s stock exchange regulator SEBI has advised IHH to proceed with the open offer for Fortis Healthcare (FORH IN) to acquire 26.1% stake after obtaining court permission.
• IHH is cautiously optimistic of robust growth from its core business with the return of local and foreign patients to its hospitals.

• Our measures of momentum and profitability suggest industry bottomed in Q1 2023
• In addition, shares of container shipping stocks have stopped reacting to (plentiful) bad news
• Outcome of ongoing rate negotiations and Q1 earnings calls will drive near-term performance

• This week will have some major earnings data points released. In Taiwan, UMC, Delta, Mediatek, ASE will report among other local names in our coverage.
• Samsung & SK Hynix will report this week, providing major insight into the Memory chip space for companies such as Nanya Technology and Micron.
• TSMC & ASML results last week indicate that the cycle could be bottoming in 2Q23E for these leading firms… But are we entering a two-track industry recovery?

• Given Pru’s demerger in 2021, it now offers investors a good alternative to AIA to tap into the development and the growth potential of the life insurance sector in Pan-Asia.
• AIA has a more balanced business across so many markets in APAC, while Pru skews toward Southeast Asia.
• Pru’s P/BV is currently at a 30% discount to AIA’s and is trading at the same level as the year-end when China just announced the re-opening of its borders.

• Mercedes is a luxury brand with strong pricing power, well positioned to capture growth in EV as it invests significantly to transition into an all-electric, software-driven world
• The launch of several models in the next few years will drive growth, as we believe the desirability remains very strong. 
• We like the direct sales model and believe the operational focus and discipline of the Company are still to pay off. The valuation remains appealing at a P/E below 6x.

• There are few, if any banks, in Japan that compare with Rakuten’s 65% loan growth
• The newly listed interbank stands out with exceptional ROE, not from leverage
• Credit metrics remain strong, with NPL cover especially high vs peers

• TSMC and ASML reported results last week, with both companies beating consensus earnings expectations.
• TSMC and ASML both expect their historically high margins to persist and have both shown a major decline in inventory levels. 
• TSMC expects utilization to bottom in 2Q23E and improve thereafter; which we believe is strong indication of the cycle bottoming for leaders. TSMC however sees the overall industry taking longer.

• TSMC’s ADR spread just experienced one of its largest one-period drops in recent history. The ADRs are now trading at a 2.3% premium after a 4.2% drop.
• UMC ADR’s are trading at a -1.1% discount to their Taiwan shares. The spread has mostly been trading in negative territory over the last month. UMC earnings coming this week.
• ASE ADR’s are trading at a 4.7% premium. ASE’s Taiwan shares are down 10% since end-March, compared to a 5% drop for the TAIEX Semiconductor Index.

• Matahari Department Store (LPPF IJ) 1Q2023 results reflected a normalization of sales growth at a sold +14.2% YoY, with normalisation of rentals plus minimum wage increase impacting margins temporarily.
• The company has resumed its store openings with seven new stores in 1Q2023 and 12-15 new stores planned for FY2023. New merchandising campaigns have made a strong impression in 1Q2023. 
• Matahari will launch its new Suko brand in May in 20 stores plus 2H2023 will see its new modern format being rolled out. Valuations are attractive with a double-digit yield.

• Despite Shangri-La Asia (69 HK)‘s good share price performance YTD, it has still not yet fully reflected the strengths of and benefits from China’s re-opening. More upside to come.
• Occupancy for Hong Kong and mainland China has surged 30-45pp YoY in Mar, and with China’s RevPAR for FY22 is down 56.5% from peak, we see massive rebound in profitability.
• Share of China’s EBITDA was US$258m in FY22, from US$465m in FY16-19, suggests good room for recovery. It is cheap on ~70% discount to revalued NAV, vs. 37% in FY18.

• The divergence between the Philly Semiconductor Index and the Taiwan Market has continued despite both falling moderately.
• Latest short interest data to note — Faraday Technology experienced a surge in short interest ahead of its earnings this week. UMC has high short interest and results this week.
• Institutionally underheld stock Transcend Media has experienced rising institutional ownership recently and has a very high short ratio.

• The contribution of innovative drugs cannot offset the generics revenue decline caused by VBP. Without PD-1 level big variety emerging, the pressure of VBP would continue for a long time. 
• Hengrui launched Luzsana to develop global business, seeming to send “a compromise and ambiguous signal” to various complex forces within this traditional pharmaceutical empire. ADC pipeline remains to be seen.
• Hengrui still has many problems that are difficult to solve. Even though there is a rebound, Hengrui’s stock price performance may not deliver excess returns, with lower-than-expected upside elasticity.

• In recent months, the once-thriving Space SPAC ecosystem has faced significant deflation, brought on by operational hurdles, delays, and challenges in raising funds.
• Over the last three years, more than a dozen space-focused companies went public through SPACs, yet the majority now trade at a significant discount to their deal valuation.
• Amidst this challenging landscape, lunar-focused space company Intuitive Machines is the latest to debut last month through a SPAC deal, which valued the company at close to $1 billion.

• March parcel volume growth (22.7%) improved against an easy comp (-3.1%) from 2022
• Prices are declining, too (-3.2% Y/Y) — not yet precipitous, but worst since Q1 2022
• Based on what we see, ZTO’s 2023 volume targets will still be difficult to meet

• On 20 April, Chile’s government announced that it will be nationalizing the country’s lithium industry. Chile is the second largest producer of lithium in the world. 
• The nationalization of the lithium industry in Chile will likely have a long-term negative impact on the rechargeable batteries related companies in Korea.
• This is mainly due to greater challenges of getting access to lithium at more affordable prices. 

• HDFC Bank (HDFCB IN) reported a steady and broadly in-line-with-expected Q4FY23 earnings. In particular, its growth in deposits at 8.7% QoQ was commendable.
• Advances also grew at a healthy pace of 6% QoQ. Retail advances grew 5% QoQ, while CRB (Commercial and Rural Banking) grew the most at 9.7% QoQ.
• Aided by low credit costs, HDFCB continues to invest in expanding its geographical and digital distribution to deepen its penetration.

• LVS just reported 1Q23 results showing a surging recovery of GGR and daily arrivals in Macau driving gains in revenue and profit profile.
• Labor shortages that have limited availability of LVS’ 12,000 rooms are beginning to subside. Golden Week just ahead expected to reach +90% room occupancy.
• Stock has moved over 20% since our buy call at $53. Our PT is raised to $80.

• Pharmaceutical companies shouldn’t always emphasize being the first to enter the market, but focus on how to best enter the market and maintain a dominant position as long as possible.
• It’s truly felt that the assets of China’s pharmaceutical companies are accelerating their global recognition. As their internationalization strategy becomes increasingly mature, investors are expected to obtain more benign returns.
• For Pharmaron, financial profit decline was the main reason for profit drop.If deducting fair value change of biological assets, operating profit growth was negative. We remain conservative about its outlook.

• BlackLine completed a year of profitable expansion with strong financial results for the fourth quarter.
• The company had total sales of $140 million in Q4 and managed an all-around beat, including a top-line growth of 21%.
• Moreover, increased utilization was caused by a stronger-than-anticipated demand for professional services due to customers’ willingness to access the solutions’ embedded value.

• Ambev delivered mixed results in Q4.
• The company saw a 1.5% increase in volumes though its revenues were below Wall Street expectations.
• Also, despite the impact of inflationary pressures on Ambev’s expenditures and expenses, normalized EBITDA increased in the quarter and the company delivered an earnings beat.

• Broadridge delivered a mixed set of results in the quarter.
• Recurring sales increased by 8% on a constant currency basis, and both segments experienced significant growth but overall revenues were below analyst expectations.
• However, the top-line growth combined with strict expense control helped to boost adjusted EPS by 11% which resulted in an earnings beat.

• We upgrade Meituan to BUY as (1) its recent subsidy campaign vs. Douyin has achieved some  successes, and (2) its food delivery margin may have further upside; 
• We suggest that Douyin’s local service market share reaches a high level, especially when compared with its eCommerce market share; 
• Our C1Q23 top/bottom line are in-line/25.5% vs. cons. Raise TP to HK$ 165, which implies 4x PS/12x PE/1x PS for delivery/in-store/new initiatives.

• Mankind Pharma (6596876Z IN)‘s IPO is lined up to be open for subscription next week.
• Mankind is one of the largest pharmaceutical formulation player in India. The company is a market leader in condoms, pregnancy test kits, emergency contraceptives category, etc.
• However, when it comes to the balance sheet, there are several aspects that warrant attention. These include acquisitions, asset quality, non-comparable return ratios owing to accounting treatment, etc.

• US job openings in February fell to 9.9m, lowest since May 2021 and 0.5m below market expectations. The job openings are forecast to drop further in March 2023.
• Recruit Holdings (6098 JP) ‘s 3QFY03/2023 profits declined significantly with labour markets returning to normalcy and we expect further drop in margins going forward.
• HR Tech drives most of Recruit’s profits and we expect the company’s earnings to decline going forward with weakening of labour markets globally.

• Ts Corporation (001790 KS) is the 21st company in our Korea Small Cap Gems series.
• TS Corp is one of the largest sugar refining companies in Korea. Rising raw sugar prices generally have a positive impact on TS Corp’s sales and profits. 
• TS Corp owns very valuable real estate assets that are much larger than its current market cap (299 billion won).

• Inflationary headwinds in Latin America might have had a material effect in Q1.
• However, Coca-Cola’s EMEA and North American results will probably blossom once more.
• Most are non-core and unlikely to influence the stock’s valuation, KO stock is fairly valued.

• IRDM reported first quarter results continuing its recent trend of adding more billable subscribers to its network. 
• The first quarter is seasonally a period when there are fewer maritime customers, but Internet of Things (“IOT”) data subscribers grew sequentially
• Equipment revenue has grown over the past year. IRDM’s partners do not stock inventory. Therefore, any planned installs should result in higher subscriber revenue as these units are activated

MotorK’s Q123 trading update indicates that the group is on track to meet its FY23 guidance and our forecasts after management secured 59% of the annual recurring revenue (ARR) growth required. Performance in Q1 was strong, with the group reporting high double-digit revenue growth, driven by low customer churn and continuing multi-product adoption. With investment in its platform largely complete, the company is starting to see operating leverage. The stock is up 89% year to date, and we believe there is still significant upside potential, as highlighted by its discount to peers.

Alkane continues to increase its production guidance, indicating confidence in a strong close to FY23, from 62,000–70,000oz to 65,000-73,000oz. It also lowered its expected unit costs to an AISC of A$1,550–1,700/oz, from previous guidance of A$1,550–1,800/oz. These updates follow confirmation of Q323 gold production of 16,641oz and a total for the year to date of 54,431oz, at an AISC of A$1,446/oz.

• Project Dorothy now energized. ERCOT (grid operator) has given final approval to energize the first 50 MW of Soluna’s game-changing Project Dorothy.
• The long-delayed project had been held up by ERCOT while it implemented its new Interim Large Load Interconnection Process to ensure grid reliability.
• Energization sets the stage for signing hosting contracts at Project Dorothy. Soluna can now finalize and begin receiving revenues from hosting contracts at Project Dorothy.

• Mandiri delivered solid 1Q23 results, underscoring its attractive valuations with single digit prospective PE multiples and premium growth potential all backed by a strong balance sheet
• Mandiri improved 1Q23 pre-provision operating profit and net profit YoY; Mandiri’s credit quality metrics were sound in 1Q23, with strong liquidity and funding ratios
• Mandiri has an attractive PEG ratio and delivers 20%+ ROE on a strong capital base for its PBV ratio comparing well against Indonesian and big cap EM bank peers

• Value Act’s investor activism campaign picked up steam following the death of Seven & I Holdings (3382 JP) founder.
• The board of Seven & I may have been aggravated by Value Act’s unreasonable demands and timing, leading to their first angry response in over two years.
• The damaged relationship between Seven & I and Value Act reduces the upside risk to our short thesis from disposal of underperforming businesses.

• We do not expect any major surprises when Nidec reports FY3/23 earnings on 24 April
• However, we believe that there is a significant risk that the company will guide below analyst consensus for FY3/24
• We are bearish going into results. After that, there could be an opportunity to turn bullish again on FY3/25 PE of 14x

• We believe the recovery of China consumption is “not yet solid”, but not faltering.
• China catering sector’s recovery stays on track, although Q2 has historically been a low season.
• Long Xiabuxiabu and short Jiumaojiu to play the sector’s recovery while hedging against potential macro weakness.

• Bank Mandiri (BMRI IJ) released a well-balanced set of results with some pressure on NIMs more than offset by higher loan yields, lower credit risk, and great cost efficiency.
• The rapid and widespread adoption of the Livin’ app for new customers and onboarding customers has positively impacted efficiencies and helped gather more CASA.
• Bank Mandiri Persero (BMRI IJ) is optimistic about the outlook for 2023 with loans expected to grow +10%-12% with table NIMs and lower credit costs. 

• This is our first report on the Bank of Nova Scotia, one of Canada’s Big Five multinational banking and financial service companies.
• Although banking revenues increased by a solid 11%, overall revenues were down 1% year over year due to reduced noninterest income.
• Mortgage lending increased by 7% while commercial loans increased by 22%, bringing loan growth to 9% year over year.

• Q1 20223 sales exceed expectations with LFL sales growth of 13.0% versus consensus of 7.3%. 
• L’Oréal is ideally positioned in all regions, across all pricing points.
• China impact post-reopening still to be seen in figures. We expect upside from China in H2

• We forecast iQIYI 1Q23 top line/bottom line to miss cons. by (3.6%)/(6.3%), largely due to the rebound of content costs to cope with competition pressure. 
• We raise our full year ads revenue estimate slightly to reflect the better-than-expected macro recovery. Our top and bottom lines in 2023 are (3.3%)/(7.0%) vs cons, due to long-term competition. 
• Maintain SELL but slightly raise TP to US$ 5.60, implying 18.4X PE in 2023.

• The Keepers Holdings (KEEPR PM) reported 26% YoY revenue growth and 41% YoY profit growth for FY22. Based on our estimates, the stock trades at 7.7x/6.6x FY23e/24e PE.
• Net cash represents a healthy 21% of market capitalization, and given its strong profitability, the management seemed reasonably confident in maintaining its 50% payout ratio (5%/6% dividend yield FY24e/25e).
• The management guided a structural industry uptrend with teens growth across all its spirits for FY23e/24e. We believe a multiple of 15x is a fair multiple for this company. 

• Yerbaé has been posting accelerating sales growth (+124% YoY in Q1E), using its diversified and growing distribution network which covers over 10,000 retail doors across the U.S.
• CEO Todd Gibson is a beverage industry veteran, having experience at Hansen’s Energy (Monster), SoBe, FUZE Beverage, and Coca Cola
• YERB.U is trading at 3.0x 2024E sales compared to high-growth peers at 5.9x, despite having the highest sales growth and gross margins Yerbaé Brands Corp. (YERB.U:TSXV) produces energy drinks using plant-based ingredients, tailored to health-conscious active lifestyle consumers.

• I recently made my first purchase for the year, buying a core position in Brazilian holdco Companhia Brasileira de Distribuição (CBD:NYSE).
• I believe it has merely been caught up in the general market/SIVB sell-off and the price being offered is too good to pass up.
• CBD is engaged in supermarket/retailing operations and is controlled by the French giant Casino, with 41% ownership.

• Astra International (ASII IJ) registered a strong start to the year with strong growth across most of its major divisions in 1Q2023, including 4W, 2W, Financial Services, and Heavy Equipment. 
• The company’s market share in the auto business remained stable and increased for motorcycles, whilst heavy equipment and mining benefited from higher coal prices and infrastructure improving revenues on toll-roads.
• Astra has launched a new JV with Equinix to build data centres in Indonesia, which makes an interesting addition to its digital economy exposure. Valuations are attractive relative to history. 

• Despite a 15% drop in March 2023, Miniso (MNSO US) remains relatively expensive compared to peers, having rallied 330% between October 2022 and March 2023.
• We think this is a good opportunity to short MINISO Group Holding (9896 HK) as we see around 35% downside purely from a valuation angle.
• Meanwhile, red flags like insider selling, Blue Orca’s accusations, senior management departures, and a mature domestic market could send the share price back below $5.0.

• The Starlink service is expected to be launched in Korea in 2Q/3Q 2023. Starlink gained more than 1 million active subscribers globally as of December 2022.
• The launch of the Starlink service in Korea is likely to have a positive impact on  companies such as Hanwha Aerospace, Solu-M, Intellian Technologies, and Satrec Initiative.
• We like a pair trade involving long (basket of 8 stocks above that are positively impacted by Starlink launch in Korea) and short (three major Korean telcos).

• Los Andes Copper Ltd (LA CN) published its long-awaited PFS in late February. The PFS shows an NPV of 2.77 billion USD vs a 240 million USD market cap.
• In our opinion, LA is one of the largest, Chile-based copper miners without a strategic investment partner. 
• Lundin Mining (LUN CN),  Hudbay Minerals Inc (HBM US) and Glencore Plc (GLEN LN) have announced offers for copper producers recently. Last year Rio and BHP also made copper acquisitions.

• YTD, China Longyuan Power (916 HK) has seen its share price weak, but we believe focus should not be on the poor FY22 result and the moderate 1Q23 generation growth.
• Based on 5.5-6.5GW planned capacity expansion in FY23, this will mean a solid growth of 17.7-20.9% YoY. Coupled with efficiency improvement, we expect a sharp rebound in FY23 profit.
• With impairment on Ukraine mostly made and reversal of exchange and trading losses, there will be a big swing in bottom line. We welcome the improvement in cash flow too.

• We analyze increase in institutional ownership across our Taiwan Tech universe.
• Realtek, Nuvoton, Powerchip, Faraday Technology stand out as stocks that have had rising institutional ownership but have traded flat over the same period. Realtek will have earnings April 21st.
• Advanced Energy has fallen in price even as institutions appear to have accumulated the stock.

• Several news media outlets reported that Leapmotor (9863 HK) had inflated its sales data for December 2022 based on distributor claims.
• With China ending its new energy vehicle subsidy policy in 2022, EV makers were rushing to sell as many units as possible before embracing price hikes and face competition.
• The company announced a price hike in January and sales volumes have declined in 1Q2023. We think the company will struggle to increase its sales volume going forward.

• Acadia Pharmaceuticals (ACAD US) markets CNS drug Nuplazid, which is cash flow positive with increasing profitability since 2019. Acadia has guided for Nuplazid revenue of $520M–550M for 2023.
• On April 17, Acadia has launched in-licensed drug Daybue in the U.S. for the treatment of Rett syndrome in adult and pediatric patients two years of age and older.
• Nuplazid is being evaluated for negative symptoms of schizophrenia with top-line results expected in early 2024. In-house drug candidate ACP-204 is in Phase 1 trial for Alzheimer’s disease psychosis.

• We expect BZ to report 1Q23 revenue and non-GAAP net income in-line with consensus. Our 2023 revenue and non-GAAP net income are (5.3%) and (37.8%) 
• Lower than consensus, mainly due to  1) weaker growth outlook, 2) lower gross margin and 3) higher S&M cost; 
• BZ platform’s supply side growth outpaced demand side in the spring season, indicating a weak recovery in recruiting. We maintain SELL rating and TP at US$13.5.

• UK reserve power – Pyebridge YE22E revenue £1.9-2.1m; 2xPOCs funded
• Debt to equity conversion ~ £0.7m – strengthening balance sheet 
• South Africa WTE – Sustineri -Gauteng CHP 2.5 MW net. signed

• Alibaba broke down Taobao Tmall Center, the most important department, into three departments.
• Industry Development Department One is actually “other businesses” after the reorganization.
• Following Department One will help investors to understand Alibaba’s financials.

• Taiwan Semiconductor (TSMC) is by far the most dominant stock holding among active EM investors.
• TSMC is owned by 87.5% of EM funds with an average weight of 6.1%, it is also the largest portfolio holding for 64.5% of managers.  
• Despite high levels of positioning, there are no obvious signs that managers are scaling back positions. The risk of not holding TSMC may be greater than playing the contrarian.

• Whitehaven Coal (WHC AU) guided down production in an update released yesterday by 5-10% from a range of 19-20 mnt to 18-19 mnt for FY23.
• Net cash increased 300 mn AUD QoQ from 2.5 bn to 2.7 bn AUD representing 44% of market capitalization with 1.2 bn AUD of operating cash flow alone in Q3!
• We agree an OCF yield of 80% (1.2 bn*4 qtrs on a six bn mkt cap) is unsustainable; the capital allocation possible on this name is mind-boggling. 

• In this insight, we highlight the pricing gap divergences of the major Korean holdcos and opcos in 2Q 2023.
• Of the 38 pair trades, 21 of them involved holdcos outperforming opcos YTD and 17 of them involved opcos outperforming holdcos in the same period.
• We highlight 38 pair trades that involve Korean holdcos and opcos.

• We expect PDD to report 1Q23’s revenue and non-GAAP net income 6.1% and 23.8% ahead of consensus, respectively. 
• PDD entered an adjustment period, reflected in lower S&M expenditure both overseas and domestically, which has led to declining PDD DAU and moderating growth of Temu’s GMV and losses.
• We raise our PDD’s 2023’s EPS estimate by 14%~ to reflect better-than-expected cost control.  We maintain PDD’s BUY rating and US$ 95 TP, implying 21x 2023 P/E.

• The new share placement of Anta Sports Products (2020 HK) has caught the market by surprise, but we think long-term story for the company should not be affected.
• With proceeds to be used for repayment of outstanding debts, expansion in China and pursuing SE Asia markets, we should not overlook the benefits to be generated. 
• An IPO of Amer Sports is clearly brewing and this represents an important catalyst. Anta’s 26.4x and 20.9x FY23 and FY24 PERs do not look stretched relative to earnings growth. 

• British American Tobacco delivered decent financial results and successfully navigated a progressively challenging macro environment.
• In New Categories, the company delivered strong revenue growth driven by Geo expansion, innovation, and share growth.
• British American Tobacco launched the first connected Vapour device of the Group, Vuse ePod2 plus, that drives increased pod consumption.

• First Solar entered 2023 with an improved financial, operational, and commercial position with increased R&D, new international and domestic capacity coming online as well as a new Series 7 product.
• The company commenced initial production at its next-generation Series 7 factory in Ohio will continue to ramp this year.
• Furthering its manufacturing program, First Solar recently announced an innovative 3.5-gigawatt Series 7 factory in Alabama and also a 0.9-gigawatt rise to nameplate capacity at its Ohio factories.

• Rio Tinto’s business remained resilient in the last quarter and the company successfully entered the year with quite a good operational momentum, particularly in Pilbara iron ore.
• However, accelerating cost inflation and lower prices throughout the year led to margin compression.
• At Simandou, Rio Tinto incorporated the infrastructure joint venture with its various partners and the government of Guinea.

• Max Healthcare Institute (MAXHEALT IN) reported improved occupancies, revenues, EBITDA and other operating and financial parameters in Q3FY23 versus year-ago period.   
• The company recorded highest-ever EBITDA – both in terms of absolute value and margins, EBITDA per bed, ARPOB, and ROCE for the third consecutive quarter in FY23.
• During the last three-year, Max had revenue and EBITDA CAGR of 12% and 59%, respectively. Consensus expects the company to report double-digit revenue and EPS growth through FY25.

• Fundamentally strong company with track record of high profitability and efficient operations. 
• Installed power generation capacity will more than double to ~5,500 MW by FY24 and another 4-5x by FY30. 
• Potential for DPS to improve from a trailing 1.70 INR to INR 2.50 by FY24, implying an attractive dividend yield of 7.5%. 

• MF reported 1QFY11/2023 results on Friday. Revenue increased 43.0% YoY to ¥6.8bn (vs consensus ¥6.5bn) while operating losses dropped to ¥1.59bn vs ¥1.65bn in 1QFY11/22 (vs consensus ¥2.0bn).
• The company’s S&M spending is the lowest during first quarter of the year, which drove losses down. However, the company has guided for higher S&M spending in 2Q.
• Our analysis on Money Forward (3994 JP) BO SAAS vs Non-BO SAAS shows that non-BO businesses’ GPM has continued to decline suggesting that these non-BO businesses only help inflate revenues.

• TSMC is cutting its 2023E capex plans by 12% according to Taiwan’s EDN. The company will also report earnings this Thursday.
• TSMC suppliers ASML and Lam Research will also be reporting this week. Realtek will report this week as well.
• Delta Thailand valuation still precarious relative to Delta Taiwan. Apple has continued to outperform the Quanta & Pegatron pair.

• Initiation of Coverage with a DCF valuation of $1.57/share. QIP is trading at a 60% discount to its nearest peer, IPH (ASX:IPH)
• Key areas of focus  are completing its business transformation programme and expanding geographically.
• Success will lead to EBITDA margin expansion, greater exposure to Asia, and a growing exposure to automated and IP technology.

• Micron Technology’s results in the quarter were disastrous as the company failed to meet the revenue expectations of Wall Street and reported wider-than-expected losses.
• Total fiscal revenue was down, whereas DRAM revenue represented 74% of the total revenue.
• Revenue from the Mobile Business Unit was up and Embedded Business Unit revenue was down.

• QANTM Intellectual Property Ltd (ASX:QIP) owns a group of intellectual property (IP) services businesses operating under the independent brands of Davies Collison Cave (DCC), FPA Patent Attorneys and Sortify.tm.
• It is a major player in the mature and regulated Australian patent, trade marks and IP legal services market with 16.5% market share (H1 FY23) in its key patents segment (68% of revenue) and a diversified mix of local and foreign clients (~45%/55% split; ~50% US$ revenue).
• QIP produces ~$97m service revenue (3.7% five-year CAGR) primarily via various workstreams underlying the patent and trade marks lifecycles, and has a history of profitability and cash flow generation which facilitates high dividend pay-outs. 

• Walgreens Boots Alliance produced a strong second quarter which happened to be an all-around beat.
• Also, this quarter served as a turning point in their transition to the healthcare industry.
• Besides that, Boots had a fantastic quarter in the international segment, achieving retail comp growth of 16% over the same period last year.

• Nike delivered another strong quarter with revenue growth across all geographies, channels, and brands.
• It had strong digital growth, fueled by increased traffic on its apps and mobile.
• In APLA, the brand momentum of Nike continues to fuel strong growth.

Notwithstanding the trials and tribulations that it has had to deal with in Ethiopia in recent years, KEFI believes that it is finally nearing the end of its approvals odyssey. Being first mover and also traversing the country’s turbulent swing to democracy has cost the company unpredictability, time and money. However, the new mining minister is reported to be serious – to the point of being enthusiastic – about developing KEFI’s Tulu Kapi project and the three substantive pre-conditions for final approval (the two banks having equal protections in the country, government installation of elevated security and the right for KEFI to administer its own banking and capital servicing arrangements) have been met or (in the case of the third) appear in the process of formalisation. With respect to security, KEFI reports that a disciplined formation of the Ethiopian Federal military has been deployed to secure mine sites throughout the country, including Tulu Kapi. In the meantime, the company has continued to upgrade and develop its assets in Saudi Arabia.

• After a poor FY22, 1H23 will stay challenging for Lonking Holdings (3339 HK). However, we expect pick-up in business momentum going forward, and export is a major growth driver.
• Gross margin rebounded HoH and YoY in 2H22, and Lonking maintained good operating cost control. Recovery of equity market suggests potential big positive swing in investment income. 
• Including investment portfolio, 92% of the current market capitalisation is net cash, providing solid downside buffer. Its 6.5x PER, 9.2% yield and 0.52x P/B are very attractive valuations.

• Nanya Technology’s recent results showed a margin and ASP decline that appears to have performed better than the industry average. 
• However, Nanya Technology may have traded off better pricing and margins for a continuation of high inventory levels. Nanya shares have underperformed Micron since our Mar 30th piece.
• Nanya said it expects a marginal recovery for the DRAM market in the second half of 2023E. SK Hynix will be a next major data point, to report April 26th.

• Baycurrent reported fourth quarter and full-year FY02/2023 results on Friday. 4Q revenues increased 32.1% YoY to ¥21.2bn (vs consensus ¥20.7bn) and OP increased 60.8% to ¥9.6bn (vs consensus ¥8.3bn).
• Full-Year revenue and OP increased 32% and 39% YoY respectively to ¥76.1bn and ¥29.9bn, beating own guidance by 7% and 15% respectively.
• The company’s FY02/2023E guidance is too conservative as there has been no signs of an earnings slowdown as DX consulting and high-value add projects would drive next phase of growth.

• In the ever-changing landscape of SPACs, a new trend has emerged that has got investors talking: Re-SPACs.
• Last week, electric vehicle startup Arrival announced its intention to Re-SPAC with Kensington Capital Acquisition Corp. V, signifying a growing interest among De-SPAC companies in exploring alternative capital-raising strategies.
• Traditionally, SPACs have been a popular vehicle for ushering businesses into the public markets.

• The fact that Tesla Korea is losing its market share significantly in Korea portends increased challenges for Tesla Motors on a global basis. 
• The number of new Tesla vehicles registered in Korea was 1,303 units in 1Q 2023, down 52% YoY. 
• In this insight, we provide three major reasons for Tesla’s market share losses in Korea. We also provide Tesla Korea’s 2022 results analysis.

• Money Forward’s Q1 sales grew 43% YoY to 6.8 billion yen, which beat the top end of guidance (Y6.2-6.6b).  
• EBITDA came in at minus 704 million yen, far ahead of guidance for -Y1.2-1.7b. Money Forward drastically curtailed hiring in the quarter.
• Money Forward’s stock has turned in a 26% performance so far this year. We believe the stock can continue to rally on focused cost control.

• Anhui Province publicly solicits pre-bid data for the provincial centralized procurement of Class B large medical equipment, surgical robots included, which is worth investors’ attention.
• No more than five biotech would truly stand out in the future. We suggest investors focus on those biotech in the first echelon, rather than betting on riskier smaller ones.
• For Jafron, we analyzed some key points of the company. Due to the concerns, the temporary rebound in performance in 2023 is not enough to completely reverse the investment logic.

• 26 Capital, a US hedge fund that has crafted an innovative spac deal to bring the leading Manila casino property into an IPO by this fall has stalled.
• The overall tone of recovery in Philippine gaming in this early post-covid era is speeding up and expected to meet or surpass baseline 1919 growth easily.
• We see an attractive entry point for Okada’s owner, Tokyo traded Universal Entertainment, based both on its strong performance and the ultimate success of the IPO.

• Despite a micro-cap status, Calnex is the key player behind the evolution of high-speed network infrastructure on a truly global basis;
• The company has a market-dominant position at several critical points across the global telecoms ecosystem;
• The recent plunge in share price demonstrates Mr. Market’s short-termism and presents a good opportunity for incoming shareholders, in our opinion.