Equity Bottom-Up

• Escorts Kubota (ESCORTS IN) ‘s domestic market share as of FY22 stood at 10.3 % vs 12% in FY20 against the aspiration of 15% for FY22. 
• Our interactions with various dealers across key northern and eastern states suggest caution and structural inability to regain market share loss.
• Post equity infusion, Kubota Corp (6326 JP) is probably in for more surprises than what it might have initially hoped for. 

• TSMC’s ADR premium falls past the lower bound of its 3-year range
• All dual-listed Taiwan semiconductor companies have seen a decline in premiums or an increase in discounts.
• ChipMOS ADR’s discount to the company’s Taiwan listing widens further.

• Intel and Brookefield Asset Management recently announced that they intend to jointly invest US$30 billion into building Intel foundries in Arizona, leveraging on the US CHIPS Act.
• Although inflation and declining consumer demand continue to affect all chipmakers, U.S. strategic objectives and policies will set Intel on a new growth trajectory and competitive position in our view.
• A Long Intel/ Short Taiwan semiconductor strategy present a compelling opportunity. We prefer Long Intel vs. Short UMC, however, we expect Long Intel vs. Short TSMC to also be profitable.

• XL Axiata 2Q2022 results reflected a better pricing environment and the success of its focus on high-quality service, with the highest data speeds, leading to higher subs and ARPUs. 
• The company continues to migrate its subscribers to 4G, and build out its 4G BTS whilst shutting down its 3G towers, which should be positive for the quality of service.
• XL Axiata (EXCL IJ) should be seen as the leader in providing converged services in Indonesia, with the acquisition of Link Net accelerating its lead, which will boost long-term profitability.

• Product revenues beat consensus by 7% and EBIT margins by 5%, while full year guidance was and margins were raised ~2% ahead of consensus.
• Fears of a consumption model driven slowdown (like Datadog) did not play out, and cRPO growth actually accelerated QoQ to 81%.
• Data sharing is picking up with larger customers, with 65% of $1M+ customers utilizing stable edges.

• Helixmith (084990 KS) shares have been sliding since end of June due to delay in receiving the recommendation from the U.S. data monitoring committee for its phase 3 clinical trial.
• On August 18, Helixmith received recommendation to continue phase 3 clinical trial of its lead candidate Engensis (VM202) for diabetic peripheral neuropathy, thereby removing the overhang.
• Engensis has attracted high interest from investors, as it is targeting a large addressable patient population of nearly 8.5 million in the U.S. alone, with high unmet medical need.  

• Edelweiss’ credit business is now normalizing with GNPA at 2.5% and NNPA at 1.8%. Credit costs came in negative as asset quality is improving and excess provisioning is being normalized. 
• Rest of the businesses continue to scale up well. Edelweiss is among the fastest grower in the mutual fund and insurance businesses. Wealth Management business continues to do well.
• At current valuation, Edelweiss is available cheap and as per our estimates, an investment in it has potential to more than quadruple by the end of FY25.

• Recurring profit for Sinotrans (598 HK) increased 16.4% in 1H22 and improved to 16.6% in 2Q22. The declaration of an interim dividend also highlights management’s confidence.
• We expect a pick-up in 2H22 as negative impact of the lockdowns faded. Also, contribution from DHL-Sinotrans should return to growth as international express regain momentum.
• Strong financial position should allow for higher dividend payout, and currently it is already yielding 10.4%. Its 3.6x PER and 0.4x P/B are cheap, especially relative to ROE of 11.3%.

• Imugene Ltd (IMU AU) has recently dosed the first patient in cohort 3 in the phase 1 clinical trial of oncolytic virotherapy candidate, CHECKvacc for breast cancer.
• As at June 30, 2022, Imugene had cash balance of A$99.9 million, providing a runway to support its clinical pipeline and operations into 2025. 
• As the clinical trials progressing, the company has appointed an experienced life sciences CFO.

• Nike Inc had another stellar quarter and managed to surpass Wall Street expectations in terms of revenues as well as earnings with plenty of new innovations coming out.
• A new lifestyle show, Nike Spark Flynit, was launched that introduces the latest innovation of NIKE Running with the Spark cushioning system.
• This quarter, in Jordan, Luka Doncic debuted his anticipated signature shoe Luka 1, during the NBA Playoff.

• Rex reported a disappointing set of results mainly due to continued struggles in Oman. While Oman production was well over 10K bpd in 1H21 it deteriorated every month in 1H22.
• Revenue was 99.45M USD (+31%) but we estimate it would have been closer to 149M USD if the Yumna field wouldn’t have stopped producing for almost 70 days in 1H22.
• YTD stock is -23% and can only reverse if management proves Oman is ready to rebound. Dividend payments will start on a quarterly basis as of October 2022.

• The revenue growth rate fell to 5% in 2Q22 due to the lockdown in Shanghai and Yangtze delta.
• However, freezers became popular in June and July because of the experience during the lockdown.
• We believe the stock has an upside of 21% based on EBITDA, but the upside can be significant if based on sales-related ratios.

• Revenue grew by 20% YoY in 2Q22 with supply chain revenue up by 11% YoY and other revenue up by 42% YoY.
• The company was not impacted by lockdown, because the main business is to provide solution to delivery companies.
• We still believe the stock will has an upside of 39% after the surge on the day next to the result day.

• JD Health reported 1H2022 results. Revenue increased 48.3% YoY to RMB20.2bn (vs consensus RMB19.4bn) while managed to report a small OP of RMB60m (0.3% of revenue) for the period.
• Excluding share-based payment expenses, JD Health reported an OP of RMB1.0bn vs RMB564m in the same period a year ago, resulting in an OPM of 5.1% vs 4.1% in 1H2021.
• The growth in annual active user account growth has declined during 1H2022, however, it was mainly due to decrease in marketing spend.

• Sido Muncul recently released its 1H2022, which reflected some impact from inflationary pressure impacting the purchasing power of its customer base, especially for herbal products.
• The company’s food and beverage division and notably energy drinks saw some impact from a slowdown due to consumers taking a longer Lebaran break this year but saw strong exports.
• Sido Muncul (SIDO IJ) saw a sharp correction post its numbers but we would expect some recovery in 1H2022 and a resumption of growth in FY2023 plus valuations are attractive.

• We had a call with Fitipower management to understand the company’s latest situation in light of its weak share price and light analyst coverage. 
• Compared to the overall semiconductor industry, Fitipower’s inventory status is exceptionally better than the industry median and thus the company will be under less pressure in the coming quarters.
• Fitipower has a large T$12bn net cash position, equivalent to 48% of its market cap. For 2022E, we expect T$4.5-5bn in EBITDA, which is about 18-20% of its market cap.

• Over the last 5Y, HCG had been in expansion mode. However, since the last year or so, HCG has been consolidating its presence.
• As a result, revenues and profitability are scaling up as new centers are inching towards maturity. FY23 is poised to be a strong year.
• While HCG has been consolidating, it is not compromising on growth. Aided by technology upgradation, growing brand awareness and digital initiatives, mature centers continue to see robust growth.

• Palo Alto Networks produced an impressive FY4Q22 earnings, blowing out billings growth and showing an impressive display of “platformization”…only trades 8x forward revenues for 25-30% revenue and FCF growth.
• Farfetch finally acquired Yoox Net a Porter, after over a year of speculation. Deal is excellent for FTCH, gives them a monopolistic position in lux ecommerce.
• Netflix’s Gray Man yet another example of the company’s inability to create compelling big budget movies.

• Our earnings projections for China Tourism Group Duty Free Corp Ltd (1880 HK) are 14% and 18% below market consensus respectively. We think these are more realistic expectations.
• At IPO price of HK$158, CDFC H-share sits on 23.9x FY23F PER. We think it is difficult to trade above 22x – the average for top consumer discretionary names.
• Weakened visitor appetite to Sanya, potentially higher discounts, increase in border opening, higher fixed cost and uncertainties for duty free policies beyond 2025 are negative earnings factors.

• Based on the correlation between revenue and China’s online retail sales, we estimate Pinduoduo (PDD US)’s Q2 revenue to beat consensus by around RMB 2.4bn.
• Our cost estimates translate the above revenue to an OP of RMB 4.0bn in 2Q22 compared to RMB 3.6bn for consensus.
• Even though consensus seems to have over-corrected its 2Q22 assumptions, it is still hung up on old assumptions for the medium term.

• Fast Retailing (9983 JP)  has rallied 60% during the last three-months on better-than-expected Q3 performance and a relatively strong bounce in Topix exceeding the upper-end of the trend-channel by 3%.
• Although 20% below the all-time high, reached during the COVID pandemic, the Fast Retailing to Topix  ratio is currently near the pre-COVID peak and starting to show some resistance.
• We would look to short Fast Retailing  with expectations of weakness in overseas markets such as North America and Europe in addition to the already struggling Chinese market.

• After the disappointing withdrawal of two IPOs (SK Shieldus and One Store) in 2Q 2022, shares of SK Square are starting to recover in the past seven weeks. 
• On a NAV basis, shares of SK Square are deeply undervalued. The current valuation reflects a NAV holdco discount of nearly 72.5%.
• If we assume a moderate 50% holdco discount, this would suggest a NAV of 74,677 won per share, which would be 81% higher than current price.

• 1H22 is a fantastic period for Orient Overseas International (316 HK) with record earnings. However, with retreat in freight rates YTD, it is likely to mark the cycle peak.
• OOIL has not seen the usual peak season for transpacific market yet.  Also, supply pressure is mounting as record vessel delivery is scheduled for the next two years.
• The elevated share price has not reflected that profitability will decline in FY23 and FY24. We see significant downside risk as the market becomes more realistic on earnings.

• Ford performed well during the second quarter despite a difficult environment that included supply chain disruptions, numerous new economic challenges, and general uncertainty.
• It managed to surpass Wall Street expectations in terms of both, revenues as well as earnings.
• The Ford+ strategy, which is Ford’s best chance to add value since they scaled the Model T, is why they achieved these achievements.

• BeiGene’s product sales in 2022H1 more than doubled YoY, which was a positive sign for commercialization. However, net loss further widened, mainly due to significantly high R&D and SG&A expenses.
• Tislelizumab and zanubrutinib are not enough to support BeiGene’s high valuation. The success or failure of TIGIT project will be the key to determine how far BeiGene will go.
• So far, it is still an indisputable fact that BeiGene has profitability issues. That’s why it’s hard for us to be optimistic about this company. 

• Given the impact of inflationary headwinds, Domino’s has been working out ways to improve its consumer pricing architecture in the U.S.
• The management saw the average price rise close to 6% in the last quarter which helped the company surpass revenue expectations of Wall Street.
• In the new season of Stranger Things, they also introduced their Mind Ordering app, which offered a new ordering experience.

• Darden Restaurants delivered a decent quarterly result exceeding sales expectations and having fairly good earnings despite the highly inflationary environment.
• The 2022 fiscal has been good for the company despite the impact of the Omicron variant as its brands continue to strengthen their business models.
• While LongHorn and other business segments saw lower segment profit margins in the last quarter due to higher inflation levels and other investments made in those businesses since pre-COVID, Olive Garden and Fine Dining segments saw segment profit margin growth this quarter.

• NetApp has been seeing strong growth in object storage products and an all-flash array.
• The public cloud business of the company expanded with a strong expansion of customers, routes to market, innovation, and ARR.
• While the company’s demand environment remained quite strong, there was an increase in geopolitical conflict, inflation, rising interest rates, and supply constraints.

• Indo Tambangraya Megah (ITMG IJ) reported strong Q2 2022, with profits of 247 mn USD up 225% YoY, and coal prices averaging 202 USD/ton for the quarter (inline). 
• The only disappointment was volumes which came in at 3.9 mn tons, down 20.5% YoY. The company guided sequential improvement in coal production for Q3 2022 to 4.6 mn tons. 
• Indo Tambangraya Megah (ITMG IJ) is 2.6x PE FY22e, with 28% of its market capitalization in cash and a dividend yield of 28% based on a 70% payout ratio.

• Hansoh Pharmaceutical (3692 HK) is strengthening its innovative drug pipeline. In August the company in-licensed one clinical stage drug candidate for women health, having large addressable market opportunity in China.
• Earlier in May, entered into an exclusive license agreement with NiKang Therapeutics and obtained an exclusive license to develop and commercialize NKT2152 for the treatment of cancer within China.
• Hansoh’s self-developed oncology drug is getting closer to the UK approval through its partner EQRx. The company received approval for one generic oncology drug in China.

• WuXi Biologics released 2022H1 results. The Company maintained its growth momentum. We highlight some positive sides. However, gross profit margin decreased. Considering the future trend, margin performance is not optimistic.
• A drop in demand has already occurred. Meanwhile, after the biologic drug boom has passed, the “low-hanging fruit” is gone, there could be more magnified cyclical problems for WuXi Biologics.
• As an old generation CXO, it’s difficult for WuXi Biologics to achieve V-shaped rebound or hit new highs.2022 is a good time to offload. Investors can take advantage of it.

• Core net profit rose a healthy 10.9% at ENN Energy (2688 HK) in 1H22 despite challenges from pandemic lockdowns and surge in input costs.
• We expect to see sequential improvement in both dollar margin for gas sales and overall gross margin in 2H22. Excellent integrated energy pipeline should add to earnings momentum.
• Gearing improved 2.2pp in 1H22 and there is more room to deleverage in 2H22. While the stock’s valuation is not particularly cheap, it has probably already hit the trough. 

• Pandemic darling Peloton saw a meteoric rise and fall over the past two years.
• The company initially benefited from soaring demand, but overestimated demand and eventually leading to a fire sale and massive layoffs.
• German sports e-commerce retailer Signa Sports United, which went public through a SPAC deal last year, could face a similar fate in the coming months.

• Logistics companies’ revenue grew by over 10%, which reflects the recovery of e-commerce.
• The market size of Chinese online game continued to shrink in July.
• Alibaba’s Ele.me sets up a mini-program on TikTok to fight Meituan.

• GameStop (GME US)  shares have materially outperformed the Nasdaq and S&P 500. GameStop shares fell ~2% YTD vs. Nasdaq (~-19%) and S&P 500 (~-11%). 
• RC Ventures, controlled by GameStop Chairman Mr. Ryan Cohen, holds a ~12% stake in the struggling video game retailer. The company announced a 4-for-1 stock split in July.  
• GameStop reported a record net loss of $158M and burned through ~$311M in cash in 1QFY22. We continue to believe the stock is massively overvalued and see downside potential. 

• Disney delivered another all-around beat and its strong results were driven by a stellar performance at its domestic theme parks, increases in live sports viewership across its linear channels and ESPN+, and significant subscriber growth at its streaming services.
• The company had 221 million subscribers overall as of the end of the third quarter for its streaming service finally surpassing rival Netflix.
• Their results demonstrate the Walt Disney Company’s potential to power its ecosystem and explore development prospects across industries and distribution channels thanks to its distinctively diversified businesses.

For our next Webinar, we have the pleasure of welcoming back Analyst Nicolas Van Broekhoven, who will go through his latest picks in the Singapore market, highlighting key stocks and names to watch out for in the Lion City.

The webinar will be hosted on Wednesday, 24 August 2022, 17:00 SGT/HKT.

Nicolas Van Broekhoven was on the buy-side for 15 years, and worked most recently at a medium-sized boutique asset management firm. He grew up in Europe, went to university in the US and has been living in Singapore for the last seven years, which has given him a broad scope on the world and investing in general. He considers himself a generalist investor with a preference for small and mid-cap companies and special situations. However, a large-cap that has gone temporarily out of favour might also pique his interest.

• Our profitability and credit quality screens, in terms of credit quality metrics to end-June 2022, continued in a constructive vein, although pre-provision profitability trends were mixed
• The key positive trend to end-June was the declining cost of risk, boosting post-provision profitability; nonetheless, the prospect of worsening delinquency could drive a reversal in NPA provision charges
• We believe HDFC Bank can best face credit quality deterioration; optically cheap State Bank of India is exposed to higher provisioning needs, as is ICICI Bank

• This research note is our first on SKYX Platforms, formerly known as Sky Technologies.
• The company is a distinguished player within the field of electrical engineering and caters mainly to the residential market.
• Most modern-day smart homes today rely on a large number of IoT (Internet of Things) gadgets coming from different companies and target high-income populations.

• This week, Thirdpoint’s Dan Loeb wrote a letter to Disney asking it to cut costs, spin ESPN, and buy in Hulu.
• We agreed with Loeb two years ago, but don’t see the strategic rationale this time around…Disney isn’t bloated, needs ESPN’s FCF, and doesn’t need to spend $9B on Hulu today.
• We do agree with Loeb’s points about not reinstating the dividend (better use of FCF on Disney + and other investments) and refreshing a (strangely weird) Board of Directors.

• Amvis Holdings Inc (7071 JP) is expected to have revenue CAGR of 57% and 600 basis points net profit margin improvement during FY18–23, driven by aggressive business expansion.
• Amvis plans to have 100 hospice facilities by 2025–2026 from 58 at the end of FY22. FCF is steadily improving, due to the high profitability of the business.
• With a float of 27.4%, Amvis is just maintaining the listing criterion on the Tokyo Stock Exchange’s Standard market. It has announced stock split, with record date of September 30.

• Plug Power had a disappointing quarter in terms of its financial results but the shareholders of the company are rejoicing.
• After President Joe Biden signed the Inflation Reduction Act (IRA) which includes clean energy tax credits, the company’s stock price has zoomed.
• The newly enacted bill would establish a clean hydrogen production tax credit, or PTC, to encourage clean hydrogen production and benefit Plug Power.

• Tyson Foods delivered mixed third-quarter result surpassing revenue expectations as a result of the price increases but failed to meet Wall Street expectations with respect to earnings given the inflationary pressures.
• In order to counteract the rise in the cost of goods, the company implemented pricing efforts, which resulted in an increase in sales for the entire year.
• Among major updates, Tyson entered into a joint venture agreement with the Saudi Arabian Tanmiah Food Company.

• The food-delivery company Deliveroo (ROO LN)  initiated the stock buyback program and will purchase up to £75M worth of shares to reassure investors. 
• Deliveroo (ROO LN)  is down ~77% from the IPO price as Covid lockdown restrictions have ended and revenue growth slowed significantly. 
• Deliveroo (ROO LN)  currently trades at 0.1x EV/2022E GMV, a discount relative to its key peers that trade at an average of 0.3x EV/2022E GMV.  

• Kraft Heinz delivered outstanding second-quarter results.
• The company is aware of the Despite the effects of the current inflationary environment on Kraft Heinz’s business, the company delivered a solid result, surpassing Wall Street expectations in terms of both, revenues and earnings.
• Overall, we are neutral on Kraft Heinz we give them a ‘Hold’ rating with a revised target price.

• Sea Ltd results were impressive on a number of levels, with profitability in its core e-commerce business improving considerably in core markets of South-East Asia and Taiwan a key positive. 
• The decline in digital entertainment revenue was expected, with the stabilisation of quarterly active users a sign of some plateauing after recent declines but rankings continue to remain solid. 
• Sea Ltd suspended revenue guidance but continued to stress confidence in the growth outlook, whilst keenly focusing on improving efficiencies and profitability. This underpins our positive long-term view.

• Taste Gourmet Group (8371 HK) reported substantial Q1 2023 numbers, with profits coming in at 16 mn HKD up 42 YoY(%) (-65 YoY(%) netting out the subsidies).
• Despite losing 21 days in April, this is a solid result as cash levels burgeoned to 95 mn HKD from 65 mn HKD (Mar FY22). 
• The stock is cheap, trading at 5.1x FY23 PE and a 11.7% dividend yield ( at a 60% payout ratio), making this extremely attractive to own.

• Istyle Inc (3660 JP)’s share price rose more than 90% over the last few days on the news that Amazon is becoming a strategic partner of the business.
• With Beauty Services’ margin expansion more than compensating for On Platform’s weaknesses, we are expecting this turnaround in price performance to last longer than a news cycle.
• We think istyle’s share price could break out to a new high as the company’s medium-term OP estimates are revised upwards.

• Tencent (700 HK)  reported 2Q2022 results today. Revenue increased 3.1% YoY to RMB134.0bn (vs consensus RMB134.6bn) while reported OP for the quarter decreased 42.7% YoY to RMB30.bn (vs consensus RMB36.3bn).
• Excluding interest income and gains, adjusted OP decreased 21.2% YoY to RMB23.7bn driven by drop in GPM across all three business segments.
• Tencent also mentioned that news article regarding a possible stake sale of Meituan is inaccurate.

• Kakao Pay’s shares were down 6.6% today to 68,400 won, driven by the Korean regulators announcing a crackdown on the simple money remittance using fintech companies’ apps without bank accounts.
• There is a very high probability that the FSC will likely ban simple remittance and transfer of money using apps such as Kakao Pay in the coming months. 
• This will likely have a major negative impact on Kakao Pay and will further drive the stock downwards.

• Revenue grew by 13% YoY in 2Q22 in spite of headwind.
• The company actively expanded outside China to bypass the domestic license shortage.
• We believe the stock has an upside of 52% for the end of 2023.

• Like other premium fashion brands and retailers, United Arrows (7606 JP) has faced unprecedented challenges since lockdown began in March 2020. 
• Sales are still 25% below 2019 levels but the select shop retailer is optimistic about the future, despite the fact that profitability has been in decline since long before Covid.
• Weaknesses remain however, including an ageing customer base and to some extent, an ageing brand.

• Deliveroo’s recent share buyback and exit from Netherlands are not enough to offset people in the UK and Ireland trying to go back to their previous way of lives.
• On 10 August, Deliveroo (ROO LN) announced a share buyback program worth £75 million ($90.6 million) share buyback program, which represents 4.6% of its current market cap. 
• Cost of living increases and millions of European consumers eating out at restaurants rather than ordering food are causing further negative impact on Deliveroo’s business. 

• Liquidity shorts can be great short candidates.  The key characteristic is that the company may not be viable, economically, given their cash flows and cash requirements. 
• Liquidity shorts have built-in catalysts, have moderate to higher betas,  and can have strong down moves if a crisis develops.  They can go bankrupt, pushing the stock price near zero.
• Today we are flagging Bed Bath, Blink Charging, Natera, Asana.

• NEC is geared into two mega-trends that will drive 9% CAGR in EBITDA through 2025 
• NEC is a beneficiary of DX (digital transformation) in Japan and global 5G, which are both just starting to take off 
• NEC Investment Day may be short-term catalyst, but it is the undervaluation relative to the long-term opportunity that is mispriced 

• In 2Q22, revenue decreased YoY for the first time on record.
• Unexpectedly, FinTech revenue stopped growing in 2Q22, as users are conservative in borrowing and investing money.
• However, we still believe Tencent’s stock price is overly impacted.

• Sea’s share price dropped 14% yesterday following its 2Q22 results as $2.9bn revenue ($3.0bn for consensus) and $659.4m operating loss excluding goodwill impairment ($594m for consensus) were weaker than expected.
• After lowering the e-commerce revenue guidance by $400m in 1Q22, Sea Ltd (SE US)’s decision to suspend 2022 e-commerce revenue guidance in 2Q22 is an early indication of difficulties ahead.
• Digital Entertainment’s gross bookings are down another 10% QoQ in 2Q22, which indicates that Free Fire’s revenue and profitability could continue to go down during the second half of 2022.

• Home First Finance (HOMEFIRS IN) is growing fast and has a low operating cost, there is a reason why. 
• Aavas Financiers Ltd (AAVAS IN) operates in its own specific domain taking only risks that it is comfortable with.  
• Competitive feedback is positive for IIFL Holdings (IIFL IN) ‘s HF subsidiary. Capri Global Capital (CGCL IN) seems to be following AU Bank’s footsteps, but hopefully only in underwriting.

• Many consumers bought household freezers after the lift of lockdown.
• Strict rules on physical stores drive consumers to online e-commerce platform.
• Total express parcels increased by 8% YoY in China in July.

• GoTo (GOTO IJ)‘s announcement last week of the integration of GoFood into the Tokopedia app is a further signal of continuing synergies taking place across the ecosystem.
• This latest move follows GoPay’s integration into Tokopedia, which exceeded expectations plus further integration with Bank Jago, and the introduction of GoPay coins common rewards all providing growing synergies.
• GoTo is a unique proxy to the Indonesian digital economy covering more verticals than any other player, with huge potential for ongoing synergies potentially throwing off higher returns. 

• Despite unfavorable business environment such as global inflation, Orion was able to generate excellent progress in sales and profit growth in countries including China, Vietnam, and Russia in 2Q 2022.
• Orion had sales of 263.2 billion won (up 19.6% YoY) and operating profit of 35.7 billion won (up 170.3% YoY) in China. 
• Due to a combination of attractive valuations and improving fundamentals along with restrictions of snacks imports from Taiwan to China, we continue to believe Orion’s shares could outperform the market.

• The emergence of new technological innovations has changed many aspects of the day-to-day life of consumers.
• While these kinds of toothbrushes have been in the market for many years, with Oral-B (Procter & Gamble) and Philips, dominating the market, consumer adoption has been limited given the premium pricing of these electric toothbrushes.
• It is a recently listed oral care company that is making highly advanced and sophisticated electric toothbrushes with sonic technology and making them available to the average American consumer at very reasonable prices.

• Paradigm Biopharmaceuticals (PAR AU) announced A$66 million capital raising, comprising A$45.7 million institutional placement and rights issue offer of A$20.3 million at A$1.30 per share.
• At the completion of the transaction, Paradigm will have a proforma cash position of $108.5 million, which funds the company into 2024.
• Paradigm is expected to announce data from one of its key trials related to knee OA pain in September, which will be a near-term catalyst for the company.

• Amplitude reported 2QCY22 results and raised CY22 revenue and profitability guidance. The 2Q print was solid, with +48% y/y revenue growth. 
• The company generated ~$8M of free cash flows in the quarter, driven by a few large renewals. Total revenue was $58.1M, which topped consensus estimates.  
• Management was confident that the company’s dollar-based net retention rate would be above 120% in the long term.

• Olympus Corp (7733 JP) reported double-digit revenue and operating profit growth in Q1FY23, thanks to favorable foreign exchange rate. Adjusting for FX, revenue was flat compared to year-ago period.
• Based on favorable foreign exchange rate, management has raised FY23 revenue and operating profit guidance by 5% and 12% to ¥1,019 billion and ¥231 billion, respectively.
• With more than 85% of total revenue coming from international markets, Olympus should remain a prime beneficiary of Japan’s weak currency.

• Intel has witnessed a rapid and sudden decline in sales activity which resulted in the company delivering a very weak quarterly result where it failed to meet Wall Street expectations in terms of revenues as well as earnings.
• In its efforts to refocus itself on its core, the management continued to carry out various corporate restructuring efforts.
• We provide the stock of Intel with a ‘Hold’ rating and a revision in the target price.

• Altria is facing a difficult macroeconomic climate since the start of 2022 which was responsible for a weaker tobacco performance.
• The company failed to meet Wall Street expectations in terms revenues despite the robust performance of Marlboro.
• The smokeable products division did generate excellent operating company income growth, while their moist smokeless tobacco brands kept boosting profitability resulting in the company delivering an earnings beat.

• Kroger Co. continued to navigate the challenging operating environment characterized by continued supply chain headwinds, including higher diesel fuel costs and inflationary cost pressures.
• The highlight of the last quarter was its launch of the Boost membership on grocery and fuel delivery.
• We provide the stock of Kroger Company with a ‘Hold’ rating with a revision in the target price.

• Over the past few years, Sinopharm’s revenue scale has continued to grow, but its gross profit margin declined due to negative policy pressure. Actually, it isn’t a highly profitable business.
• As industry leader, Sinopharm will benefit from the increasing industry concentration and further expand market share. The challenge is Sinopharm will face a situation of increasing revenues without increasing profits.
• For 2022 forecast, revenue YoY growth could be about 5%-7%. Net profit YoY growth could be below 10%., High valuation expectations cannot be supported considering the future industry trend.

• We keep our SELL rating with a new TP of Bt14.50(+4% from prior TP),as we rollover to 1.41xPBV’23E, which is -2SD of its 5-yrs trading mean.Strong QoQ growth in  2Q22
• 2Q22 core profit posted strong QoQ Excluding extra items, its core profit was at Bt622m (-14%YoY, +250%QoQ). The strong QoQ rise was far above our expectation
• Neutral tone from the analyst meeting The management reaffirmed its sales volume guidance for asphalt at 1.20m tons in 2022E (-3%YoY), while its 1H22 volume is at 0.56m tons.

• T-Mobile has striven to provide the best pricing and network while operating in a cutthroat market and a macroeconomic situation that is rapidly changing.
• They also expanded the availability of T-Mobile Business Internet, making T-Mobile the first and only countrywide provider of the Internet for businesses.
• In this report, we have carried out a fundamental analysis of the historical financial statements of the company.

• Faraday Future (FF) saw a Q2 net loss of $142m & cash fell by 56% QoQ to $121m. As of Aug-9th, cash sunk another 59% to $52m.
• FF’s recently lined up financing provides $52m, but comes in stages through late October, which could hinder its Q4 new flagship EV launch.
• Risk statements regarding the launch of its new EV raise concerns about supplier relationships and marketing capabilities even if its first EV is launched in Q4. 

• Maintain BUY recommendation for CENTEL with a target price of Bt49.0.The company’s 2Q22 net profit came out above our expectation at Bt22m in 2Q22, compared with Bt44m loss in 1Q22.
• Impressive performance for hospitality business.Hotel revenue hit nine quarter high at Bt1.4bn thanks to impressive performance for Thai hotels as RevPar for Bangkok and Upcountry hotels jumped sixfold and fourfold 
• Food hit 10 quarter high at Bt2.9bn (+26%YoY+11%QoQ) on the back of strong SSSG at 19% compared with 0% and 10% in 2Q21 and 1Q22 respectively.

• Oracle has rebounded well in terms of financial performance with a strong all-around beat in the recent quarter.
• The company is currently developing a comprehensive set of applications for the healthcare industry’s whole ecosystem, beginning with healthcare providers like hospitals and clinics.
• Besides, during the quarter, Oracle launched an “OCI dedicated region” for the India market as part of its cloud services platform, Oracle Cloud Infrastructure (OCI), to provide customers with public cloud services on-premises.

• AEM reported stellar 1H22 results beating street estimates as well as far outpacing their own guidance. CHIPS act in USA will benefit company in FY23.
• Stock reaction (+6%) muted despite great outlook and management optimism. Despite record results and strong outlook, stock is down YTD. 
• AEM is cheap trading at only +/-10x FY22 EPS, too low given the growth and consistent margins profile. Fair Value remains 8 SGD.

• Consensus has revised down Sea Ltd (SE US)’s inflated estimates before 2Q22 earnings due on 16th August 2022.
• These revised estimates are on the optimistic side as consensus still thinks that 1Q22 was just a one-off drop.
• However, our analysis of Google Play and App Store data suggests that Sea Ltd’s gaming and e-commerce popularity has further deteriorated from the 1Q22 level.

• A recent conversation with Sumber Alfaria Trijaya (AMRT IJ) which operates Alfamart and AlfaMidi mini-markets in Indonesia further cemented a positive view on the outlook for the company.
• The company should easily surpass its target for 1,000 new stores this year, with increasing basket sizes and fee-based income and some new features such as BeanStop potentially improving returns. 
• Sumber Alfaria Trijaya remains a core retail holding with an increasing investor following after MSCI inclusion. Valuations remain attractive versus history and ROE at 25% is higher than pre-COVID levels.

• Roblox initially fell 17% on earnings, but ended the week up 8%… why? Third party data is driving stock price action.
• Reacceleration of DAUs, engagement, and bookings is beginning to play out…bullish ST.
• LT EBITDA margins are anyone’s guess right now, which makes the coming 9/9 Analyst Day an important catalyst to frame up the size and margin impact of TAM extensions.

• Freee reported 4Q and full-year FY06/2022 results. 4Q revenue increased 31.2% YoY to JPY3.87bn (vs consensus JPY3.9bn) while full-year revenue grew 40.2% YoY to JPY14.4bn beating own guidance by 0.2%.
• Operating losses decreased to 18.7% of total revenue from 32.5% of revenue in the same period a year ago. Full-year OP. losses were 15.7% of revenue vs guidance 17.1%.
• Improvement in profitability was driven by growth in ARPU from mid-and-large paying users.

• Faraday Future (FF) released an 8-K today saying they raised $52m and could see as much as $600m after 90 days.
• The 90-day lead time is obviously based on whether FF can survive. The company originally said it needed $200m to make it through the Q4 launch of its first EV.
• FF said it only had $52m in cash as of August 9th versus $233m on April 30th. With new funding, FF has 7.4 weeks of money at current cash-burn rates.

• Q2 22 result was healthy derived from both increase in ridership as well as ASP in both expressway and rail. 
• Cost increase but not as high as revenue increase therefore margin expanded while net profit went up 3x YoY. 2H 2022 will be even better. 
• Compared to AOT, BEM’s PBR is 63% cheaper while its share price still underperformed AOT this year by 11%. 

• Telix Pharmaceuticals (TLX AU) has launched its prostate cancer imaging product, Illuccix in the U.S. in April 2022. The U.S. total addressable market value is estimated at $750 million.    
• The U.S. commercial launch of Illuccix is off to a strong start. Illuccix generated revenue of $13.6 million in the U.S. in the ten weeks following first commercial sales.
• Telix is progressing marketing authorization applications for Illuccix in Europe and Canada. The company’s partners are advancing toward Illuccix launch in China and South Korea.

• After a downturn in 2019,Consun has turned things around and achieved amazing results in 2021. Its core business was not affected by VBP. Consun will continue to make further progress.
• Consun is undervalued if compared with industry average, the peers and considering its large cash balance. Share prices have decent upside potential, driven by fundamentals, promising outlook and favorable policies.
• Wanbangde’s intention to acquire Consun’s shares at high price would also be a catalyst. We recommended investors to follow Consun closely, which has certain investment value based on our analysis.

• ARTERIA Networks Corp (4423 JP) posted Q1 22 results in line with expectations
• 7% revenue growth was the highest in five quarters whilst core segment growth was the best since 2019, supported by work from home demand and data volume growth
• Operating income is down YoY as it laps one-time gains a year ago – this has been well-flagged by management and consensus