Equity Bottom-Up

• We think TSMC is still considering 1) at what time and 2) what technologies to further raise wafer price now.
• TSMC’s largest client is Apple. Qualcomm should be the 2nd client because they will ship Snapdragon 8 Gen 1 from TSMC in 4Q22. Nvidia/MediaTek are the 3rd/4th clients. 
• TSMC is giving nearly 49% stock ownership to Sony for CMOS Image Sensor (CIS) Fab in Japan. It is mainly to obtain the CIS technology, to our thoughts. 

• SK Bioscience (302440 KS) markets four in-house products in Korea, including influenza, shingles, and chicken pox vaccines. The company has partnerships with global companies for the production of COVID-19 vaccines. 
• SK Bioscience has started shipment of Novavax’ COVID-19 vaccine, while its own vaccine is in phase 3 trial. With ~15% vaccination in low-income countries, demand for vaccine is still high.  
• SK Bioscience has a rich pipeline, with four promising blockbuster candidates for the global market. This entails strong revenue visibility in post-COVID era.

• Entering 2022, Hengrui’s stock price has gone through continuous correction. The market is not that optimistic about the performance of Hengrui in 2021 full year and 2021Q4.
• We analyzed the possible future development trajectory of Hengrui’s performance, which would be up and down due to VBP and NRDL negotiation. Investors could get prepared in advance.
• Due to Hengrui’s  “DNA”  and development mode, it could have “stable growth” after getting out of the difficult situation, but hard to achieve “explosive growth or significant return”.

• On 11 March 2022, the Celltrion Group was acquitted of intentional accounting fraud by the Korean financial authorities after more than four years of investigation.
• This is likely to result in a major positive boost on the shares of Celltrion Inc, Celltrion Healthcare, and Celltrion Pharm in the next several weeks.
• We note that the decision about the Celltrion Group was announced on 11 March, one day after Yoon Suk-Yeol was declared to become the next President of South Korea.

• Every so often, sudden shocks reduce Hamamatsu Photonics’ usually high valuations. This is one of those times. 
• Valuations are starting to look attractive compared with their 5-year ranges. But not compared with their 10-year ranges.
• Strong 1Q results support FY Sep-22 guidance. Management’s 3-year sales and profit forecast would be reasonable in a normal operating environment. But the environment is not normal. 

• Silergy foresees the demand will be larger than capacity in 2022. Silergy expects Auto, Sever Mother-board, SSD and others should be showing a strong demand in 2022.
• The shipment lead-time is controlled around 5~6 months, which indicated that the demand is strong for 2022~23.
• The generation 3rd will be optimized until 2026. Silergy will need some new suppliers for generation 4th in 2023. In 2026, generation 3rd & 4th will dominate Silergy’s revenue. 

• The headlines for Grab‘s recent results looked encouraging but the higher driver and consumer incentives hit revenues and profitability towards the end of the year but this is temporary.
• Grab (GRAB US) is facing stiffer competition in the region, especially from GoTo and Shopee Food but is defending its lead and preparing for higher growth in mobility requiring investment.
• Increasing exposure in digital financial services plus more focus on verticals such as online groceries bodes well for future growth. A market cap of US$12.5bn with US$6.8bn in net cash.

• After a 35% price decline in 2021 and 11% performance YTD, we are exploring if SMM is able to capitalize on the high oil price environment.
• We will look at its recent financial performance, orderbook, and financial forecast in 2022.
• We will also look at how to value the company and the key risk with our valuation.

• LG Energy offers extremely inflated valuation multiples that are even more stretched than frothy peers. 
• It also offers numerous other red flags due to fire risks and a regional production capacity spread that could prove disadvantageous. 
• Recent commodity price surges also impair the competitiveness of EVs overall but also LG Energy’s NMC chemistry vs. LFP.

• Both Alibaba (-6%) and Didi (-12% pre-market) are down on regulatory pressure 
• Vision Fund valuation losses are approaching $20bn for Q4 and the current (unrealized) portfolio has turned negative
• NAV/Share and the share price are at two-year lows and gains from the post-Covid tech run are largely gone

For our next Corporate Webinar, we are glad to welcome Uni-Asia Group (UAG SP) Group CFO Lim Kai Ching.

In the upcoming Webinar, Kai Ching will share a short company presentation, after which he will engage in a fireside chat with Smartkarma Insight Provider Osbert Tang. The Corporate Webinar will include a live Q&A session.

The Corporate Webinar will be hosted on Tuesday, 22 March 2022, 17:00 SGT.

Uni-Asia Group Limited is an alternative investment company, which offers structured financing, ship charter arrangement, shipping and maritime asset management, and real estate investments. The Group has 10 wholly-owned bulk carriers under the Group’s ship-owning and chartering segment, and another eight bulk carriers through joint-investment companies.

Uni-Asia also invests in property projects in Hong Kong, of which two projects have been completed and are currently in the market for strata-title sales. The Group is also invested in three other property projects in Hong Kong, which are currently under construction. Within Japan, the Group has been investing and developing small residential property projects termed the “ALERO” series for the past 10 years and continues to see great success with these projects.

Corporate Webinars by Smartkarma Corporate Solutions feature discussions with IROs and Executives, discussing their companies, the challenges they face, and the opportunities in their sectors and markets.

• While Inpex has almost tripled from its late 2020 bottom the stock is up just 17.5% compared to the beginning of Jan 2020. 
• With crude prices 77% higher than at that time that suggests that there is plenty of upside left in this trade. 
• This is further supported by plans for volume expansion and relatively healthy reserves.

• Recent events in Ukraine should be highly favourable for Chiyoda as they raise the potential for LNG capex. 
• US to Europe deliveries could involve significant liquefaction capacity build-out at good pricing points and even hydrogen could be in the mix. 
• If orders come through and rising profit drives the share price up that could also lead to positive capital structure changes.

• Dr. Reddy’s Laboratories (DRRD IN) is outperforming the domestic pharma industry and aims to expand its market share. Currently, India business contributes 19% of revenue. 
• The company’s largest revenue segment, the U.S. generic business continues to see pricing pressure. It plans to launch new products, including complex generics to combat the impact of price erosion.
• Dr. Reddy also has around 13% revenue exposure to Russia and other CIS countries. Sharp depreciation of Russian currency will negatively impact revenue from the region.

• Yesterday analyst meeting came out with a positive tone. We reiterate our BUY rating for M with a target price of Bt61.0 based on 25xPE’22E,Asia ex-Japan consumer staple sector average
• Management target same-stores-sales-growth (SSSG) at above 30% in 2022 from -15% in 2021.SSSG has strongly recovered at +15% in Jan-Feb 2022 supported by resuming dine-in services together with restoring consumer 
• After resuming dine-in services,GPM recovered to 66.9% in 4Q21.We believe GPM to increase to 66% in 2022E from 64.1% in 2021 supported by a higher revenue contribution from dine-in service

• Revenue grew rapidly by 23% in 4Q21 and we believe revenue will grow by 18% in 2022.
• We are not concerned about the zero net margin, because operating cash flows were still strong in 2021.
• We believe the stock has a price target of US$73, which is 18% over last closing price.

• Following on from a recent Street Fighter 6 reveal, Capcom announced new IP Exoprimal at today’s Sony State of Play. 
• The two announcements strengthen Capcom’s pipeline for FY23 and FY24 although leaks had already revealed the likely launch timing of SF6. 
• Exoprimal is new news, however, and provides a glimpse into Capcom’s strategic thinking.

• Norges Bank excludes Li Ning (2331 HK) from its list due to poor labor practices/human rights issues.
• Today’s share price could be a telltale sign of the near-term prospect, down when the majority are up. 
• Will the other international shareholders follow suit on dumping the shares because of the human rights abuse? Potentially yes. 

• Square Enix had four of the twelve titles featured at today’s Sony State of Play. 
• While none of the titles was one of they IPs for Square Enix they demonstrate the depth of IP possessed. 
• In addition, the trailers point to Square Enix’s domestic development studios maintaining high quality standards even for smaller titles.

• Crowdstrike printed a superb quarter, continues to beat and raise despite overblown competitive concerns with new disclosures around non-endpoint ARR shows this becoming a true platform.
• Revenue growth (+63%), Margin expansion (+570bps) and FCF generation (46% FCF margins) shows best in class rule of 40 SaaS metric.
• Next catalyst is Analyst Day in April, expect LT targets to get increased.

• Koei Tecmo appears to have made some strides in improving the quality of Stranger of Paradise: Final Fantasy Origins.
• This bodes well for the future of its business effectively reskinning its in-house titles with popular outside IPs.
• This makes us more interested in the name but we are still waiting for the shoe to drop on investment income.

• We highlight the closing of the pricing gaps between the Korean common and pref shares, which is likely to be accelerated by the free market promoting new Korean President Yoon.
• These measures include strengthening investor protection in the event of a spin-off of a new business listing, incorporating compulsory tender offers, and improving short selling systems and foreign exchange operations.
• We believe these measures to emphasize on the free markets are likely to improve minority shareholder rights and the gaps between the common and preferred shares could narrow further.

• We are initiating coverage of Global Clean Energy Holdings (GCEH) with a Buy Rating and $7.55 target.
• GCEH is in the final stages of turning a crude oil refinery into a renewable fuel refinery utilizing camelina as its primary feedstock.
• GCEH has also obtained a product offtake and purchase agreement with Exxon Mobil (XOM) for nearly all of the production from its under-construction refinery, scheduled for commercial production in 2022

• Gitlab is down 61% since its IPO and trades at 16x forward sales, now reasonable for years of 40% like growth expected.
• At $6B valuation, would make an attractive acquisition candidate for Google/Amazon or some of the growing DevSecOps players like Datadog.
• Dynamic TAM with long runway ahead, very underpenetrated, strong secular tailwinds.

• Maintain HOLD rating with a TP of Bt33.50, based on 19.14xPE’22E,which is pegged to -1SD of 3-years trading mean.Despite drastic drop in 22E profit, its strategic location, combined with undemanding 
• Its 4Q21 net profit was at Bt283m (+96%YoY, -42%QoQ), given weak QoQ revenue growth, and margin contraction due to lowered Covid-19 related contribution.
• RJH’s 2021 earnings was at Bt1.01bn, implying +145% YoY, mainly attributed to higher contribution from Covid-related services.

• Rex International Holding (REXI SP) reported FY21 results in late February which showed a dramatic improvement over FY20 due to rising oil prices and increased production
• Accounting wise the picture was muddied by auditor fantasy valuation exercises which understated FY21 results. FY22 to be a “clean” year where positive cash flow impact becomes clearer to market.
• Since 08/03/22 Rex trades on the SGX mainboard and remains the best pure-play oil bet in the Singapore market. Current oil prices indicate an FY22 cash flow bonanza.

• Our 2022 conviction call Dowa Holdings is up 25% since we made that call and was up as much as 44% a few days ago. 
• We believe the recent correction is a simple reaction to the speed at which it had been rising. 
• We see significant further upside and unlike peers we believe all-time high earnings can be sustained even with commodity price moderation.

• Japan Tobacco (2914 JP)’s share price fell 14% from the bottom end of the upward trend channel and underperformed Topix by 6% over the last 15 days.
• Even if Russia yields zero dollars, we think the impact on JT’s valuation could be around 20%.
• With demand for cigarettes expected to go up during these war times, we think the market reaction of this scale is unwarranted.

• Bilibili Inc (BILI US) reported 4Q2021 results last week where revenues increased 50.6% YoY to RMB 5.8bn while operating losses increased to RMB 2bn compared to RMB 903m in 4Q2020.
• This marks the lowest YoY growth in top line since 2Q2019. Though all segments experienced YoY growth in revenue, we have observed that the growth is slowing down.
• The company also has announced a share buyback of up to US$500m of its ADS over the next 24 months

• Upstart Holdings Inc (UPST US) is both a consumer Internet brand as well an online loan origination platform. 
• Upstart is a rare fintech that has established credibility by delivering high growth with profits and cash generation. The healthy 2022 outlook underscores the long-term potential. 
• While the ongoing market volatility is a near-term risk, the tech sell-off presents an opportunity to gain exposure to a good story at an attractive valuation. 

• We see limited upside potential for Upstart Holdings Inc (UPST US)  shares after reporting a record 200%+ YoY revenue growth rate in CY’21.   
• Our calculations suggest insiders sold ~$1.5 billion worth of Upstart shares since August 2020, including Third Point, CEO of Upstart Holdings, and management of the fintech company. 
• Rising interest rates and tightening of credit markets may negatively impact revenue, keeping in mind that Upstart Holdings Inc (UPST US)  primarily facilitates unsecured personal loans on the platform.

• This model seeks companies facing dangerously high leverage coupled with negative or declining cash flows.  It considers interest expense, capex and short term maturities for additional input. 
• The companies may not be viable given cash flows and capital structures.  These shorts tend to have  higher betas  and can have strong down moves as the crisis is recognized.
• This week we flag: Invitae, AMC, 2U Inc., and Delek US

• Yesterday analyst meeting came out with a negative tone.We expect TOA net profit in 1H22to weaken YoY due to an increase in raw material cost in spite of upward selling 
• We expect earnings drop both QoQ and YoY in 1Q22 caused by squeezed GPM from rising raw material cost. In contrast,revenue will be expanded YoY supported by demand for painting 
• We revised down 2022-23 earnings by 3-7% in 2022-23E to factor in further decrease in gross profit margin caused by a rise in material cost following spike in oil price.

• The analyst meeting came out in a negative tone, as the projected rise in gas cost will pressure the SPP margins and drag the earnings in 1H22.  
• We expect 1Q22 recurring profit to soften due to continued rise of fuel cost. The earnings should bottom out in 1H22 and pick up gradually 3Q22 onwards.
• The SPP gas price has rose to Bt336/ MMBTU in 4Q21 compared to Bt268/MMBTU in 3Q21.According to management guidance the gas prices are further expected to rise near Bt450/MMBTU level

• It was reported yesterday that Uniqlo plans to continue doing business in Russia despite the Ukraine war situation.
• Fast Retailing (9983 JP)’s decision to continue doing business in Russia has not gone too well with some of its customers.
• If this leads to a fully blown boycott, the price impact could be significant as the company’s valuation remains towards the expensive side even after a 45% drop in valuation.

• We visit dealers of Honda Motor (7267 JP) , Hero Motocorp (HMCL IN) and TVS Motor (TVSL IN) to understand the current demand environment for Electric Vehicles(EV).
• High fuel prices and a very low base lead to high growth for EV OEMs
• Customers are waiting for launches from legacy players and a reduction in battery cost to decide the best alternative, but this is costing the overall 2W industry lower volumes. 

• Sold off in the market rout as it is a small-cap stock although growth potential is intact. 
• Margin decreased but revenue increased followed by lower expenses to sales ratio. 
• China High Speed Transmission Equip Grp (658 HK) build-up in inventories and increase in the account receivables reflect management’s confidence and action to prepare for a higher revenue growth.

• We believe that Upstart’s share price has been excessively oversold since October 2021. Since its highs in October 2021, Upstart’s share price has declined significantly by nearly 72%.
• The combination of buying back shares, more attractive valuations, and a much stronger sales growth than its peers is likely to result in Upstart outperforming the market this year.
• Our base case valuation of Upstart is implied market cap of $13.8 billion and target price of $165 per share, which is 47% higher than current share price.

• Weibo Corp (WB US) reported a set of solid results for 4Q21; ad revenue (excluding Alibaba) has post robust 28% year-over-year growth and MAU remains healthy.
• Weibo is leveraging its competences to increase user engagement. Weibo video account has amassed 25mn users; Weibo Live’s DAU has grown 100% year-over-year.
• Weibo current valuation 10x forward P/E looks attractive; we expect 1Q22 user engagement will improve given that topics on Winter Olympics has already exceeded Toyko Olympics.

• Fierce competition is an industry-wide phenomena in biosimilar products. Despite being an early mover, Celltrion Inc (068270 KS) is also facing competition for its marketed biosimilars.
• The market share of Celltrion’s key biosimilar product, Remsima is declining. Other marketed and upcoming biosimilars also have multiple existing players.
• With the waning COVID-19 infections in the U.S., demand for Celltrion’s rapid test kits seems uncertain.

For our next Corporate Webinar we are glad to welcome Del Monte Pacific (DELM SP) Chief Corporate Officer Ignacio (Iggy) Sison and Investor Relations Manager Jennifer Luy.

In the upcoming webinar, Jennifer and Iggy will share a short company presentation, after which they will engage in a fireside chat with Smartkarma Insight Provider, Nicolas Van Broekhoven. A live Q&A session will follow.

The Corporate Webinar will be hosted on Tuesday, 15 March 2022, 17:00 SGT.

Dual-listed on the SGX and the Philippine Stock Exchange, Del Monte Pacific Limited is a global branded F&B company that offers premium quality, healthy products. These include packaged fruit, vegetable and tomato, sauces, condiments, pasta, broth, stock, juices, and frozen pineapple under various brands – it also sells fresh pineapples under the S&W brand.

It is proud of its heritage brands – Del Monte, S&W, Contadina, and College Inn – some of which originated in the USA more than 100 years ago. The Group has exclusive rights to use the Del Monte trademarks for packaged products in the United States, South America, the Philippines, Indian subcontinent, and Myanmar, while it owns S&W globally except for Australia and New Zealand. The Group owns the Contadina and College Inn trademarks in various countries.

Corporate Webinars by Smartkarma Corporate Solutions feature discussions with IROs and Executives, discussing their companies, the challenges they face, and the opportunities in their sectors and markets.

• Coinbase reported strong Q4 results mainly driven by a significant increase in its transaction revenue.
• Bearish outlook in Q1’22 and FY22 due to the higher expense guidance from the management and declining crypto asset price and volatility in Q1.
• Albeit the bearish outlook, we continue to view that Coinbase represents one of the best ways for public equity investors to gain exposure to the growing crypto economy. 

• Yamazaki Baking (2212 JP) raised prices in January 2022 due to rising oil prices. We are expecting another price hike very soon to reflect the 60% increase in wheat prices.
• These price hikes may not increase Yamazaki Baking’s 2022 OP margin significantly above the guided level.
• However, once input prices normalise following the Russia Ukraine war, we could see Yamazaki Baking’s OP margin reaching 4.0% in the medium term.

• After raising over RMB70 billion,investors have much higher expectation on BeiGene than other biotech/biopharma, because BeiGene is “different”,but the real pressure will come over the next two or three years.
• Will BeiGene become China’s first truly international pharmaceutical company, or be dragged into mediocrity by the failure of key trials or the failure of commercialization to meet the market’s expectations?
• It is attractive if the market value is below US$20 billion. However, considering the Russia-Ukraine war and other potential external uncertainties, we advise investors to keep alert.

• We have guided bullish on Melco Resorts & Entertainment as an early bet on the improving conditions for its Philippines Entertainment Zone property and other group catalysts.
• GGR in Entertainment City Zone rose 20% in 2021 to US$1.35b–pandemic easing.
• Total industry Philippine GGR  for 2021 was up 14.5%  to $2.2b despite a decline in government run Pagcor casinos which had more widespread lockdowns.

• SITC International (1308 HK) achieved a record net profit which surged 2.3x in FY21, but our concern is that much of news has been well in the share price.
• While management is optimistic on its outlook, we think challenges are higher costs (port, bunker and charterhire) and little room for further significant freight rate increase. 
• Its 6.7x P/B for FY22F has well reflected its quality but with ROE likely to dip back in FY22 and FY23, we think upside does not look impressive.

• In this insight, we review Warren Buffett’s stakes in Japanese trading  companies and review investment opportunities in Korean trading companies amid a war between Russia and Ukraine. 
• The recent war between Russia and Ukraine has resulted in higher commodities prices. This has boosted the share prices of commodities related companies globally, including Japanese and Korean trading companies.
• We would focus on GS Global Corp, Hanwha Corporation, Posco International Corporation, and LX International as Korean trading companies that could continue to outperform the market amid war in Ukraine. 

• Disney announced a new ad-based tier for Disney+ last week.
• The decision to go this direction may imply market saturation, rising competitive intensity, or an inability to hit its subscriber targets organically.
• Disney’s streaming business is increasingly dominated by low value Hotstar+ subs

• Elastic NV (ESTC US) , a leading search technology company, reported strong Q3 FY’22 results that topped estimates. Cloud revenue surged 79% year-over-year, and free cash flow was ~$3M. 
• Elastic NV (ESTC US)  shares underperformed in CY’22, with shares down ~37% YTD versus a ~29% loss on the WCLD – WisdomTree Cloud Computing Fund. 
• Shares of Elastic jumped to ~$87.00/share after the company reported third-quarter earnings the previous week, but then the stock erased early gains due to broader sell-off in tech shares. 

• The 1st quarter is relatively a lower season. Therefore, we expect that the revenue/NM is about RMB$8. 7bn/9.0% in 1Q22 respectively, which declines ~10% QoQ and grow 30% YoY. 
• To our understanding, QCOM is still the biggest client in JCET. The rest of clients have changing a bit in JCET since Huawei was being driven out.
• Overall speaking, China is devoted in developing OSAT (Outsource Semiconductor Assembly and Packaging) business, and the gap shall be close to ASEH and Amkor. 

• Nissin Foods (1475 HK)  is an HK and China play on the instant noodle that is a highly preferred necessity during the lockdown.
• Wheat is a major raw material for noodles and the Russian invasion of Ukraine has driven the wheat price higher. 
• So far, Nissin Food Co’s share price has held up and outperformed Hang Seng but Indofood CBP Sukses (ICBP IJ) could provide a reference. Short.

• Chugai Pharmaceutical (4519 JP) shares declined 2% since we published our bearish note on the company in December. We remain bearish on the name.
• Chugai is betting big on Actemra, Hemlibra, and Ronapreve for achieving 2022 revenue target. However, these have bleak outlook due to competition and uncertainty regarding COVID-19 prevalence globally.
• Chugai does not have any big launches expected this year. Pipeline has less visibility for compensating the revenue loss from the patent expired products.

• Given significant presence in China, Shangri-La Asia (69 HK) is geared towards China’s more accommodative COVID policy. The good thing is that the share price has not yet reflected this. 
• Over the next 12-18 months, SLA will first benefit from tourism recovery outside of China, and then followed by powerful rebound in China’s inbound travelers, particularly the high-end business visitors.
• The resurgence in long-absented business visitors should bring in higher room yield and F&B revenue. It has minimal refinancing and liquidity risks and these make its near-trough 0/48x P/B unjustified. 

• We expect that the revenue/GM is about NT$5.95bn/54% in 1Q22 respectively. We expect it shall come to NT$6.14bn/56.5% for revenue/GM in 4Q21 respectively.
• Given strong demand of those could not be digested, Silergy has to choose high premium orders, which means Silergy can enjoy better prices.
• The domains of Server, Datacenter and 5G are Silergy’s main targets to grow in the next 3~5 years.

• At the current stage, the price of IOL that won the bidding in centralized procurement was above Eyebright’s ex-factory price, which means that the profits are still guaranteed. 
• If two core products (IOL & OK lens) are both included in the centralized procurement in the future, Eyebright needs to broaden the product category and find new growth points.
• We analyze the valuation from a different angle.We could not say that the current market value of Eyebright is at the bottom, but is more reasonable compared with last June. 

• Valuation losses in the public portfolio have increased by $6bn over two days on weakness at Coupang, Grab, DoorDash and WeWork.  Total losses for the quarter stand at $17bn.
• With Alibaba shares still weak, NAV/share has moved decisively below ¥10,000/share and is back to where it in May/June 2020 when tech was first rebounding from the Covid shock.
• The discount to NAV stands at 49% but is likely to expand when markets in Japan have a chance to respond to how stocks traded in the US on Friday.

• Sea Ltd (SE US) results were in line but given a slow down in gaming and bearish guidance partly with India ban on FreeFire, the stock was sold off aggressively.
• Strong performance from e-commerce and digital financial services was ignored, with improving take rates in core markets and comments on impending profitability overlooked, with hardly a mention in press commentary. 
• The risk for Sea Ltd (SE US) is squarely on the upside with valuations now looking attractive, trading at a discount to MercadoLibre (MELI US) despite its broader footprint.

• Sony and Honda announced today they would form a strategic alliance in the mobility field. 
• Honda will be responsible for manufacturing and after sales while Sony will handle imaging, sensing, telecommunication, network and entertainment technologies. 
• This helps Sony maintain its asset light model and is also positive for Honda but we do feel that it makes Honda look a little lost in the changing world.

• Aluminum is Minth Group Ltd (425 HK) biggest raw material.
• The war that spiked the commodity price does not show any sign of ending soon therefore margin contraction is expected. 
• Get out or short it if you are a hedgehog. 

• Disappointment with HSBC appears to be the norm rather than the exception
• Quarterly profit halved from earlier quarters, suggesting earlier quarters inflated 
• Low yield cash assets do not appear to be falling, while funding costs just starting to rise

• IQIYI Inc (IQ US) reported 4Q and full-year 2021 results on Tuesday. Revenue for the quarter declined 0.9% YoY to RMB7.39bn (vs consensus RMB7.31bn).
• Operating losses for the quarter was RMB975.2m (vs consensus RMB1.33bn), about 13.2% of revenues compared to RMB1.31bn (17.5% of revenues) in 4Q2020.
• IQiyi’s ADRs jumped 21.5% at the end of Tuesday’s close as the company mentioned that it expects quarterly non-GAAP operating break-even as soon as possible.

• Yesterday analyst meeting came out in a positive tone.We maintain the BUY call based on a target price of Bt220.0 derived using DCF methodology (WACC 9.8%, TG 1%), implying 11.0xPE’22E.
• Expect the 1Q22 recurring profit to improve YoY and QoQ on the back of profit recognition from investments in Linden, APEX (USA, 2Q-4Q21). Moreover, seasonal better electricity sales should offset
• The company maintains the CAPEX plan of Bt30bn for 2022, targeting new renewable energy project additions. We expect EGCO to add around 1,000MW to portfolio in 2022 

• Hino announced during market hours that it was being probed for falsifying exhaust data prompting a 14.8% drop in the stock price. 
• At its press conference the company revealed that up to 116k vehicles were affected and roughly 35% of domestic production would be halted. 
• Some uncertainty remains and valuations after the fall are reasonable rather than exceedingly cheap so we would be hesitant to bottom fish here.

• Progyny Inc (PGNY US) shares are bouncing off their lows following strong Q4 results and  guidance reiteration. Continued stellar growth amid large and underpenetrated TAM call for strong upside potential. 
• After impacted by Omicron in December, business activity has rapidly recovered to normal levels this year. Management has guided for 50% y/y revenue growth for 2022.
• For 2022, Progyny added 85 new clients, with 1.2 million covered lives, which will be its long-term growth driver. The company is well-positioned for 70% revenue CAGR during 2021–2024.

• Banco do Brasil is the clear value pick among LatAm banks, with sound credit quality and capital metrics as well as positive asset sensitivity on a delayed basis
• Itaú Unibanco is the most asset sensitive of the Brazilian banks, with its large consumer exposure, and it shows positive trends in terms of asset quality
• Santander Brasil has greater credit quality headwinds than peers and is the least asset sensitive of the big four peers, with Bradesco’s positive asset sensitivity repricing more slowly