Daily Briefs

Since waste-to-energy play Canvest Environmental Protection (1381 HK) announced a possible privatisation from Grandblue Environment (600323 CH) at $4.90/share (a 20.7% premium to undisturbed), shares are up just 6.4%.
There’s a lot to pack in here, not the least being this is an indicative Pre-Conditional Offer.
But the fact the announcement mentions rolling over a specific number of shares of the controlling shareholders (7.23%), suggests negotiations are well advanced. So we explore.

[JAPAN ACTIVISM] Keisei Elec (9009) AGM Result Not Salutary, Tough To Win On This Stance

A week ago, the Keisei Electric Railway Co (9009 JP) AGM took place. The activist which had proposed a shareholder resolution saw ISS and Glass Lewis support.
But that was to no avail as the shareholder proposal got 29.89% of the votes, and 26.15% of total voting rights. This likely informs the near-term future of such proposals.
I expect the ask needs to change, and the agenda item needs to be difficult to be against.

Junjin Construction and Robot IPO Preview

By Douglas Kim

Junjin Construction & Robot is getting ready to complete its IPO in KOSPI in August. The IPO price range is from 13,800 won to 15,700 won.
The IPO offering is from 42.5 billion won to 48.3 billion won. The book building for the institutional investors is from 30 July to 5 August.
The integration of robotics into construction processes is a cornerstone of Junjin’s operations. Its main product is the concrete pump vehicle which pumps cement or concrete at a construction site.

Duratec: Leveraging Technologies For Infrastructure Maintenance Leading to Strong Financials

By Pyari Menon

Duratec Ltd (DUR AU) with strong financials, a robust order pipeline and ability to leverage technologies makes it a solid small-cap infrastructure maintenance and asset protection play
Shares are at least 30% below fair value given profitability, growth and order book profile. Historical numbers suggest solid execution of a diverse service contract portfolio.
Duratec is a play on growing need for more efficient, accurate and innovative approach for proactive infrastructure inspections and maintenance.

Sunrun Inc.: How Are They Expanding Storage Solutions? – Major Drivers

Sunrun reported a dynamic first quarter of 2024, marked by a strategic emphasis on storage installations complemented by solar capacity, reflecting a broader company transformation towards a storage-first business approach.
During the period, Sunrun surpassed its guidance expectations for both solar and storage installations, with storage systems installed on 50% of new residential customers, a significant increase from the prior year.
This surge in storage adoption has notably bolstered the company’s margin profile since storage installations tend to carry higher margins compared to traditional solar-only setups.

CMA CGM – ESG Report – Lucror Analytics

By Leonard Law, CFA

Lucror Analytics’ ESG Scores are based on a 3-tiered scale and are adjusted for Controversies (if applicable).
We assess CMA CGM’s ESG as “Adequate”, in line with its Environmental and Governance pillars, while the Social pillar is “Strong”. Controversies are “Immaterial” and Disclosure is “Adequate”. The group notably received a CDP score of A- for 2023.

Nitto Kogyo Corporation (6651 JP) – 4Q Follow-Up

By Sessa Investment Research

NITTO KOGYO Corporation (hereafter, the Company) announced its earnings results for FY2024/3 on May 15, 2024.
In addition to posting record net sales, the Company recorded profit growth for all three of its segments.
While the price of raw materials and parts rose, the Company’s gross profit margin improved 1.4 ppt YoY to 26.8%.

KBR Inc.: Expansion in the Energy Sector Driving Our Bullish Thesis? – Major Drivers

KBR Inc. reported a strong start to the fiscal year 2024, with key performances in safety, financial metrics, and strategic operations showing promising signs.
The company saw a 7% year-over-year increase in consolidated revenues, reaching $1.8 billion, a record since their transformation in 2020.
Adjusted EBITDA also surpassed expectations, improving by 14% year-over-year with a boost in margins.

Bpost (BPOST BB) – Thursday, Apr 11, 2024

By Value Investors Club

Decline in traditional mail delivery business
Challenges from declining mail volumes, regulatory constraints, and failed diversification attempt
New management, focus on efficiency, and parcels business expansion leading to potential growth for bpost

This content is sourced through publicly available sources and has been machine generated. Information displayed is for general informational purposes only. This article was originally published 3 months ago on Value Investors Club.

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Jul 12

Daily Brief Financials: Avanse Financial Services, Custodian REIT and more

By Smartkarma Daily Briefs | Daily Briefs, Financials

In today’s briefing:

Avanse Financial Services Pre-IPO – The Positives – Fast Growth in an Expanding Industry
Avanse Financial Services Pre-IPO – The Negatives – Immigration Issues
Custodian Property Income REIT – Organic growth paying dividends

Avanse Financial Services Pre-IPO – The Positives – Fast Growth in an Expanding Industry

By Sumeet Singh

Avanse Financial Services is looking to raise up to US$419m in its upcoming India IPO.
Avanse Financial Services (AFS) is an education focused non-banking financial company (NBFC) operating in India.
In this note, we look at the company’s past performance.

Avanse Financial Services Pre-IPO – The Negatives – Immigration Issues

By Sumeet Singh

Avanse Financial Services is looking to raise up to US$419m in its upcoming India IPO.
Avanse Financial Services (AFS) is an education focused non-banking financial company (NBFC) operating in India.
In this note, we talk about the not-so-positive aspects of the deal.

Custodian Property Income REIT – Organic growth paying dividends

By Edison Investment Research

Custodian Property Income REIT’s (CREI’s) confidence in its organic growth outlook is reflected in accelerated, fully covered DPS growth. Reversionary income potential is strong and, with the occupier market remaining robust, average rental values have continued to increase, providing ongoing support for the company’s enhanced income strategy. The prospective dividend yield is 7.8% and the expected decline in interest rates should benefit earnings and support property valuations and NAV.

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Jul 12

Daily Brief Consumer: Fast Retailing, ADF Foods , Jollibee Foods, Saint Bella, Taste Gourmet, Kimberly-Clark De Mexico-A, Yoshinoya Holdings, Spectrum Brands Holdings, Inc, Target Corp and more

By Smartkarma Daily Briefs | Consumer, Daily Briefs

In today’s briefing:

Fast Retailing (9983) – Great (Bte) Earnings Now Out of The Way; Anticipating End-July Capping Data
Fast Retailing (9983) | Q3 Masterclass
The Beat Ideas: ADF Foods- A Spicy Investment Opportunity with Growth Potential
Jollibee’s (JFC PM) Risky Bet: Compose Coffee Acquisition in a Competitive Market
Saint Bella Pre-IPO Tearsheet
Taste Gourmet (8371 HK): GEM to Mainboard Listing Catalyst in Play
Actinver Research – Health & Personal Care: Healthy revaluation expected (Coverage Initiation)
Yoshinoya Holdings (9861 JP): Q1 FY02/25 flash update
Spin-Off Analysis: Spectrum Brands Holdings Inc. (SPB) To Spin-Off Home & Personal Care Business
Target Corp (TGT) – Thursday, Apr 11, 2024

Fast Retailing (9983) – Great (Bte) Earnings Now Out of The Way; Anticipating End-July Capping Data

Yesterday after the close, Fast Retailing (9983 JP) reported salutary Q3 earnings, and raised its full-year (to August) guidance and its final dividend forecast (by ¥50/share)
Q3 revenue and profit gained sharply (Rev +13.5%, OP +31.2%) everywhere but Greater China. OPMs were up, especially in Japan. Early summer has been good, despite FX impact.
New guidance is above consensus, the ADR popped, and with slightly stronger yen on US CPI, that should help. But we approach end-July. Expect lots of pop-sellers.

Fast Retailing (9983) | Q3 Masterclass

By Mark Chadwick

Fast Retailing delivered an impressive Q3 report. Sales +10% YoY were +3% above our expectations.
Big jump in profitability. OP +31% YoY to Y145b driven by +57% jump in Uniqlo Japan earnings. Record consolidated OPM ~19%
Uniqlo’s performance is leaving global peers in its wake. Profitability now rivalling Inditex. However, valuations remain at a premium

The Beat Ideas: ADF Foods- A Spicy Investment Opportunity with Growth Potential

By Sudarshan Bhandari

ADF Foods (ADFL IN) is undergoing significant expansions, including brownfield projects in Nadiad and Nasik, and a greenfield project in Surat.
These projects are expected to boost revenue significantly, enhance operational efficiency, and support the company’s growth plans.
Company will almost double its revenue in 3 years and similarly PAT will also grow, which makes it attractive on valuation side as well.

Jollibee’s (JFC PM) Risky Bet: Compose Coffee Acquisition in a Competitive Market

By Devi Subhakesan

Jollibee Foods (JFC PM) recently acquired Compose Coffee, the second-largest take-out chain in South Korea’s competitive value coffee retail segment.
While the acquisition presents growth opportunities for Jollibee, the intense competition and inherent challenges of the value coffee retail segment warrant caution.
With Jollibee’s Coffee & Tea business vertical now growing into a meaningful size, we recommend listing it separately to enhance visibility, accountability and unlock shareholder value.

Saint Bella Pre-IPO Tearsheet

By Ethan Aw

Saint Bella (SAINT HK) is looking to raise up to US$200m in its upcoming HK IPO. The deal will be run by UBS and Citic Securities.
Saint Bella (SB) is a comprehensive family care group in China, focusing on premium services and products that addresses demand from the lifestyle-minded younger generation.
It is the largest postpartum care and recovery group in terms of revenue from ultra-premium postpartum centers in 2023, according to F&S.

Taste Gourmet (8371 HK): GEM to Mainboard Listing Catalyst in Play

By Sameer Taneja

On 5th July 2024, Taste Gourmet (8371 HK) submitted an application to Hkex to transfer the listing of all its issued Shares from GEM to the Main Board.
The company’s case is strong as it meets all the criteria proposed by the exchange, but there is no assurance that it will obtain relevant approval from the exchange.
Trading at 6.4x/5.2x PE FY24/25e with 25% of the market cap in net cash and a trailing yield of 8.5%, we believe a mainboard listing would provide incremental visibility.

Actinver Research – Health & Personal Care: Healthy revaluation expected (Coverage Initiation)

By Actinver

Within Consumer, we see Health & Personal Care as mostly defensive.
While perfect conditions are hard to align, or remain, these days, we see mostly favorable conditions ahead for this segment, at least where it matters the most.
Throughout the last years, consumers have faced a wide array of HPC options, some of them later phased out as companies started to focus on their core products amid rising costs.

Yoshinoya Holdings (9861 JP): Q1 FY02/25 flash update

By Shared Research

Sales increased by 7.4% YoY to JPY47.5bn, driven by store expansion and effective product and sales strategies.
Operating profit decreased by 38.6% YoY to JPY880mn, impacted by rising labor and raw material costs.
Net income attributable to owners of the parent fell by 33.5% YoY to JPY681mn, despite higher sales and price revisions.

Spin-Off Analysis: Spectrum Brands Holdings Inc. (SPB) To Spin-Off Home & Personal Care Business

By Garvit Bhandari

SPB plans to spin-off its home & personal care (HPC) business into a separate listed company (SpinCo). The parent will retain Global Pet Care and Home & Garden business units.
The separation will allow SPB to allocate capital and resources more efficiently towards higher growth categories. SPB (ex SpinCo) will be a higher-growth, higher margin business.
HPC business (low-growth and low-margin) has been a drag on the overall valuation of SPB. The spin-off will unlock value as SPB (ex SpinCo) will command higher multiple post spin.

Target Corp (TGT) – Thursday, Apr 11, 2024

By Value Investors Club

Target aggressively markdown prices to clear excess inventory and maintain momentum in the business
Despite challenges, Target navigated through the shifting consumer landscape and drove positive sales growth, albeit at a slower rate
Target strategically adjusted inventory management and focused on growing categories to stay strong in the retail market

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Jul 12

Most Read: Kokusai Electric , Doosan Robotics , Linklogis, Fast Retailing, Canvest Environmental Protection Group, Keisei Electric Railway Co, Netmarble , Puig Brands , Shanghai Henlius Biotech and more

By Smartkarma Daily Briefs | Daily Briefs, Most Read

In today’s briefing:

Kokusai Elec (6525) ¥300bn+ Offering at ATH – Almost a Second IPO
Details of Two Doosan Mergers Involving Enerbility, Robotics, & Bobcat
Hang Seng Internet & IT Index (HSIII) Rebalance Preview: Three Adds/Deletes & Capping Changes
Fast Retailing (9983) – Great (Bte) Earnings Now Out of The Way; Anticipating End-July Capping Data
Canvest (1381 HK): Evaluating A Privatisation
[JAPAN ACTIVISM] Keisei Elec (9009) AGM Result Not Salutary, Tough To Win On This Stance
Fast Retailing (9983) | Q3 Masterclass
Trading Setup Targeting the Netmarble PSR Contract, as Seen in the Case of Doosan Bobcat
Puig Brands Joins the IBEX35
Henlius (2696 HK): Dilemma as the Scrip Pre-Condition Met and a Substantial Shareholder Emerges

Kokusai Elec (6525) ¥300bn+ Offering at ATH – Almost a Second IPO

Today post-close we got confirmation of yesterday’s Reuters scoop of a secondary selldown on Kokusai Electric (6525 JP) after the stock fell 7.2% in heavy volume.
KKR HKE LP and KSP Kokusai LLC (Koch) will together sell 52.5mm shares plus another 7.8mm+ in the greenshoe. Split is 50/50 domestic/international.
This is 60+mm shares against 51mm shares held by non-passive holders ex-Capital (who has been selling). It’s a lot of stock at a high price.

Details of Two Doosan Mergers Involving Enerbility, Robotics, & Bobcat

By Sanghyun Park

The restructuring plan of Doosan Group announced today primarily consists of two merger events aimed at transferring the stake in Doosan Bobcat held by Doosan Enerbility to Doosan Robotics.
The 50% price cut on Doosan Enerbility’s share price for merging with Doosan Robotics boosts Robotics’ advantage. This resulted in a swap spread opening with Doosan Bobcat.
Considering an arbitrage strategy in the Doosan Robotics and Doosan Bobcat swap needs caution due to shareholder approval risks, especially with Doosan Enerbility’s low controlling stake potentially complicating the process.

Hang Seng Internet & IT Index (HSIII) Rebalance Preview: Three Adds/Deletes & Capping Changes

By Brian Freitas

The review cutoff date for the September rebalance of the HSIII was 28 June. The changes will be announced on 16 August and become effective after the close 6 September.
There could be 3 changes to the index with some inclusions driven by potential addition to the Hang Seng Composite Index. That could lead to buying via Southbound Stock Connect.
Capping will result in passives buying Kuaishou Technology (1024 HK) and JD.com (9618 HK) while selling Meituan (3690 HK) and Tencent (700 HK).

Fast Retailing (9983) – Great (Bte) Earnings Now Out of The Way; Anticipating End-July Capping Data

Yesterday after the close, Fast Retailing (9983 JP) reported salutary Q3 earnings, and raised its full-year (to August) guidance and its final dividend forecast (by ¥50/share)
Q3 revenue and profit gained sharply (Rev +13.5%, OP +31.2%) everywhere but Greater China. OPMs were up, especially in Japan. Early summer has been good, despite FX impact.
New guidance is above consensus, the ADR popped, and with slightly stronger yen on US CPI, that should help. But we approach end-July. Expect lots of pop-sellers.

Canvest (1381 HK): Evaluating A Privatisation

Since waste-to-energy play Canvest Environmental Protection (1381 HK) announced a possible privatisation from Grandblue Environment (600323 CH) at $4.90/share (a 20.7% premium to undisturbed), shares are up just 6.4%.
There’s a lot to pack in here, not the least being this is an indicative Pre-Conditional Offer.
But the fact the announcement mentions rolling over a specific number of shares of the controlling shareholders (7.23%), suggests negotiations are well advanced. So we explore.

[JAPAN ACTIVISM] Keisei Elec (9009) AGM Result Not Salutary, Tough To Win On This Stance

A week ago, the Keisei Electric Railway Co (9009 JP) AGM took place. The activist which had proposed a shareholder resolution saw ISS and Glass Lewis support.
But that was to no avail as the shareholder proposal got 29.89% of the votes, and 26.15% of total voting rights. This likely informs the near-term future of such proposals.
I expect the ask needs to change, and the agenda item needs to be difficult to be against.

Fast Retailing (9983) | Q3 Masterclass

By Mark Chadwick

Fast Retailing delivered an impressive Q3 report. Sales +10% YoY were +3% above our expectations.
Big jump in profitability. OP +31% YoY to Y145b driven by +57% jump in Uniqlo Japan earnings. Record consolidated OPM ~19%
Uniqlo’s performance is leaving global peers in its wake. Profitability now rivalling Inditex. However, valuations remain at a premium

Trading Setup Targeting the Netmarble PSR Contract, as Seen in the Case of Doosan Bobcat

By Sanghyun Park

This block deal has an unusual PSR (price swap return) contract at ₩58,200, the July 10th closing price, likely preventing Netmarble’s typical stock price correction today.
In 2022, a similar-sized local PSR transaction involved Doosan Bobcat Inc, with 9.9 million shares and a PSR swap price of ₩37,500.
As for Doosan Bobcat, the stock initially dropped but rebounded near the PSR swap price, prompting local brokerages, focused on PSR fee income, to sell rather than realize capital gains.

Puig Brands Joins the IBEX35

By Jesus Rodriguez Aguilar

The Technical Advisory Committee (CAT) in an extraordinary meeting adds Puig Brands (PUIG SM) to the IBEX 35 index and removes Melia Hotels International Sa (MEL SM).
Although Puig Brands has only been publicly traded since 3 May, its market value exceeds €14.5 billion and its trading volume makes it deserving of a spot in the IBEX.
Puig Brands is expected to see at least a 50% increase in trading volume by July 22, potentially adding four to eight additional days of trading volume.

Henlius (2696 HK): Dilemma as the Scrip Pre-Condition Met and a Substantial Shareholder Emerges

Shanghai Henlius Biotech (2696 HK) announced that the share alternative pre-condition was satisfied. However, the share alternative offer remains at Shanghai Fosun Pharmaceutical (Group) (2196 HK)’s discretion.
Loyal Valley Capital (LVC), a pre-IPO investor, emerged as a substantial shareholder on 10 July, the deadline for submitting letters of interest for the share alternative offer.
The likely scenario is that the offer succeeds as the co-founders enter rollover arrangements, and a share alternative is introduced, which is taken by QIA and LVC.

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Jul 11

Daily Brief South Korea: Shift Up, Shinsung Tongsang, Doosan Enerbility and more

By Smartkarma Daily Briefs | Daily Briefs, South Korea

In today’s briefing:

Trading Strategy of Shift Up on the First Day of IPO
Shinsung Tongsang (005390 KS)’s Cheeky Delisting Offer
Doosan Enerbility: A Key Beneficiary of Potential Nuclear Power Projects Win in the Czech Republic

Trading Strategy of Shift Up on the First Day of IPO

By Douglas Kim

In this insight, we discuss a trading strategy for Shift Up which starts trading on 11 July. Shift Up is one of the most anticipated IPOs in Korea this year.
Our base case (6 months – 1 year) target price of Shift Up is 95,510 won, which is 59% higher than the IPO price.
We recommend investors to take some profits (about 50% of invested capital) if the share price shoots higher by 100% or more from the IPO price on the first day.

Shinsung Tongsang (005390 KS)’s Cheeky Delisting Offer

Last month, apparel play Shinsung Tongsang (005390 KS) announced a Tender Offer from Canaan Co for 22.02% of shares out, at ₩2,300/share, a 15.84% premium to undisturbed.
Canaan Co. and related parties hold a combined stake of 77.68%, which increases to 99.7% IF the Offer is successful. Canaan needs 95% to force delisting.
Shinsung’s share price has languished over the past 12 months or so, despite improving market share and earnings. Getting to 95% might be a stretch. In need of a bump?

Doosan Enerbility: A Key Beneficiary of Potential Nuclear Power Projects Win in the Czech Republic

By Douglas Kim

The Czech Republic government is in the final stages of selecting companies to build four nuclear power plants which could cost nearly US$30 billion.
A Korean consortium including KHNP, Doosan Enerbility, KEPCO E&C, and Daewoo E&C is competing mainly against EDF, a French government owned electric utility company.
If the KHNP consortium is able to win this new order, Doosan Enerbility will be a key beneficiary as it will supply the nuclear reactors and steam generators.

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Jul 11

Daily Brief Thailand: Valeura Energy Inc and more

By Smartkarma Daily Briefs | Daily Briefs, Thailand

In today’s briefing:

Valeura Energy (TSX: VLE): Operational blip offers an opportunity for investors

Valeura Energy (TSX: VLE): Operational blip offers an opportunity for investors

By Auctus Advisors

2Q24 production was 21.1 mbbl/d, which was very close to our expectations (21.3 mbbl/d).
Production is expected to increase in 3Q24 with the start-up of production at Nong Yao C.
Half of the planned drilling targets have already been drilled.

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Jul 11

Daily Brief Singapore: Second Chance Properties and more

By Smartkarma Daily Briefs | Daily Briefs, Singapore

In today’s briefing:

Second Chance Properties (SCE SP): MSM Makes A Move
Second Chance Properties (SCE SP): Voluntary Unconditional Offer at S$0.30

Second Chance Properties (SCE SP): MSM Makes A Move

Founder/CEO Mohamed Salleh Maricar (MSM) and his family have made a voluntary unconditional general Offer for the 14.94% in gold/jewellery retailer Second Chance Properties (SCE SP) (“SCP”) not held.
The S$0.30/share cash Offer is a 39.5% premium to last close. The Offer price is final.
The Offer is unconditional in all respects. This will trade tight. A delisting Offer is next on the cards.

Second Chance Properties (SCE SP): Voluntary Unconditional Offer at S$0.30

Second Chance Properties (SCE SP) has disclosed a voluntary unconditional offer from Mohamed Salleh’s family at S$0.30 per share, a 39.5% premium to the undisturbed price (10 July).
The offer document will be despatched by 31 July. The offeree circular will be despatched by 7 August at the earliest, implying the earliest close of 28 August.
The offer price has been declared final and is attractive as it represents an all-time high. The offeror will likely achieve the 90% compulsory acquisition threshold.

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Jul 11

Daily Brief United States: Tesla , Gold, Applied Blockchain Inc, General Electric , Hunt (Jb) Transprt Svcs, Soybean Active Contract, Ipg Photonics, Aldeyra Therapeutics , Packaging Corporation of America, Five9 Inc and more

By Smartkarma Daily Briefs | Daily Briefs, United States

In today’s briefing:

Tesla Q2 Earnings Preview: All Eyes on China, Energy Storage, & Robotaxi
Is this the Death of Gold Developers?
An Interview with Wes Cummins, CEO of Applied Digital
General Electric Company: Is The Healthy Demand In Renewables Here To Stay? – Major Drivers
J.B. Hunt Transport Services: Expanded Intermodal Services Driving Our Bullish Thesis! – Major Drivers
[CB 27/2024] Wheat & Bean Up on Improving Demand as Corn Tumbles on Benign Planting & Solid Harvest
IPG Photonics Corporation: Expansion In The Electric Vehicle (EV) Market As A Key Growth Catalyst! – Major Drivers
Aldeyra Therapeutics Inc (ALDX) – Wednesday, Apr 10, 2024
Packaging Corporation of America: These Are The 6 Fundamental Factors Impacting Its Performance In 2024 & 2025! – Financial Forecasts
Five9 Inc.: Expansion into AI & Automation Solutions A Critical Growth Catalyst? – Major Drivers

Tesla Q2 Earnings Preview: All Eyes on China, Energy Storage, & Robotaxi

By Uttkarsh Kohli

Energy Growth: Tesla’s energy storage business surged to 9.4 GWh in Q2, a 135% increase from Q1’s 4 GWh.
China’s Impact: Shanghai Gigafactory shipments fell 24.2% YoY in June, delivering 71,007 units amid a Chinese price war.
FSD & Robotaxi: Full Self-Driving price cut to $8,000 from $15,000; investors await Robotaxi Day on 8/8.

Is this the Death of Gold Developers?

By Money of Mine

WA gold explorers and developers are struggling in the market compared to producers
Value gap between explorers/developers and producers has widened, with little progress in projects
Cash balances are dwindling for many companies, raising questions for investors about the incentive to fund them

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

An Interview with Wes Cummins, CEO of Applied Digital

By Douglas O’Laughlin

Doug O’Laughlin: Today, on Fabricated Knowledge, I have the privilege of having Wes from Applied Digital on to talk about Applied Digital.
Today, we’re gonna talk about the change in his business model. The company is experiencing a lot of changes, and there are a lot of new things in the pipeline.
And so I just wanted to sit him down and have an opportunity to chat about that.

General Electric Company: Is The Healthy Demand In Renewables Here To Stay? – Major Drivers

General Electric Company, known as GE, recently marked a significant milestone by completing the spin-off of GE Vernova and launching GE Aerospace, positioning the company as a focused leader in the aerospace and defense industry.
This transition follows the successful spin-off of GE Healthcare last year, achieving a strategic restructuring aimed at strengthening the company’s core operations and financial health.
Baptista Research looks to evaluate the different factors that could influence the company’s price in the near future and attempts to carry out an independent valuation of the company using a Discounted Cash Flow (DCF) methodology.

J.B. Hunt Transport Services: Expanded Intermodal Services Driving Our Bullish Thesis! – Major Drivers

J.B. Hunt Transport Services, Inc. presented its First Quarter 2024 results delineating challenges primarily driven by continued market pressures, alongside optimistic notes on strategic positioning and long-term growth.
The results highlighted a decline in revenues and profits, accentuated by inflationary pressures intermingling with deflationary pricing dynamics, reflecting the intricate operational environment the company navigates.
Baptista Research looks to evaluate the different factors that could influence the company’s price in the near future and attempts to carry out an independent valuation of the company using a Discounted Cash Flow (DCF) methodology.

[CB 27/2024] Wheat & Bean Up on Improving Demand as Corn Tumbles on Benign Planting & Solid Harvest

By Srinidhi Raghavendra

Recent acreage report shows benign planting figures and solid ending stocks for Corn sending its prices lower. Wheat also declined on higher stocks, while Soybeans rebounded.
Wheat faces headwinds & tailwinds. Fundamentals are dragged down by favorable weather in exporting countries & imminent US harvest; Strong US demand & weak EU forecast has supported prices.
Soybeans appear well supported from an unlikely ally in Trump. Import Duty tit-for-tat could see China slapping duty on Soy imports.

IPG Photonics Corporation: Expansion In The Electric Vehicle (EV) Market As A Key Growth Catalyst! – Major Drivers

IPG Photonics’ first quarter of 2024 financial results and business updates reflect a mix of challenges and strategic advancements amid an evolving market landscape.
The company, a leader in high-performance fiber lasers and amplifiers, reported a decline in revenue, largely attributed to softening demand in key industrial sectors, particularly e-mobility and general industrial manufacturing.
These sectors represent a significant portion of IPG Photonics’ sales, translating revenue impacts across various applications.

Aldeyra Therapeutics Inc (ALDX) – Wednesday, Apr 10, 2024

By Value Investors Club

Mack885 identified buying opportunity in ALDX due to management’s plan to address FDA setback
Perceptive Advisors increased stake in anticipation of reproxalap approval for dry eye disease
Potential option agreement with AbbVie could greatly benefit ALDX financially, making its share price undervalued

Packaging Corporation of America: These Are The 6 Fundamental Factors Impacting Its Performance In 2024 & 2025! – Financial Forecasts

Packaging Corporation of America reported its first quarter 2024 results, including a net income of $155 million, or $1.72 per share, and a total net sales of $2 billion.
While these figures show a decrease from first quarter 2023 results of $198 million net income, or $2.20 per share, and the same $2 billion net sales, they still mark a significant achievement for the company.
To tackle inflation, Packaging Corporation of America has been focusing on cost management and improving process efficiencies across its manufacturing and converting facilities.

Five9 Inc.: Expansion into AI & Automation Solutions A Critical Growth Catalyst? – Major Drivers

Five9’s recent financial recap underscores its robust position in the cloud-based contact center market, highlighted by a notable 20% year-over-year growth in subscription revenues and a total revenue surpassing guidance expectations.
These achievements are particularly significant because they underscore organic growth without contributions from transitioning customers from on-premise to cloud solutions, distinguishing Five9 as purely cloud-focused in its operations.
Baptista Research looks to evaluate the different factors that could influence the company’s price in the near future and attempts to carry out an independent valuation of the company using a Discounted Cash Flow (DCF) methodology.

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Jul 11

Daily Brief China: Linklogis, Hong Kong Television Network, The United Laboratories International Holdings Limited, B&K Corporation, Lenovo and more

By Smartkarma Daily Briefs | China, Daily Briefs

In today’s briefing:

Hang Seng Internet & IT Index (HSIII) Rebalance Preview: Three Adds/Deletes & Capping Changes
HKTV (1137 HK): HK$2.15 Share Buyback Is Unconditional
The United Laboratories Company Ltd (3933 HK) – A Sub Five PE Bargain!
Pre-IPO B&K Corporation – Valuation Performance Could Be Disappointing
Morning Views Asia: Lenovo

Hang Seng Internet & IT Index (HSIII) Rebalance Preview: Three Adds/Deletes & Capping Changes

By Brian Freitas

The review cutoff date for the September rebalance of the HSIII was 28 June. The changes will be announced on 16 August and become effective after the close 6 September.
There could be 3 changes to the index with some inclusions driven by potential addition to the Hang Seng Composite Index. That could lead to buying via Southbound Stock Connect.
Capping will result in passives buying Kuaishou Technology (1024 HK) and JD.com (9618 HK) while selling Meituan (3690 HK) and Tencent (700 HK).

HKTV (1137 HK): HK$2.15 Share Buyback Is Unconditional

The Hong Kong Television Network (1137 HK) vote on the share buyback for a maximum of 100.0m or 11.25% of outstanding shares at HK$2.15 was comfortably passed at the EGM.
The partial offer is designed to help the co-founders bypass the creeper rule and increase their grip on the shares. There is no minimum acceptance condition.
While the IFA opines the offer is fair and reasonable, it is unattractive. A 100% minority participation rate implies a minimum proration of 20.74%. The offer closes on 23 July.

The United Laboratories Company Ltd (3933 HK) – A Sub Five PE Bargain!

By Avien Pillay

At a 4.6 FPE, you would expect to find some real concerns, however there are no gremlins anywhere?
What you are buying is an antibiotic developer and distributor who is performing better than expected, given that the antibiotic market is thriving.
The extensive pipeline including GLP-1 drugs is still at an early stage/midway through development, however at this valuation, you are probably not paying for it!

Pre-IPO B&K Corporation – Valuation Performance Could Be Disappointing

By Xinyao (Criss) Wang

The growth factor drug market is highly competitive. Many competing products have been on the market for many years with NRDL reimbursement coverage and also accumulated rich recognition from doctors/patients.
Even if Pro-101 is approved for market launch, B&K may have to reduce its price largely and invest heavily in market education/promotion. B&K’s commercialization capability still needs to be verified.
Valuation of B&K would be lower than peers. It is hard for B&K to receive expected valuation premium since its latest round of post investment valuation is already RMB3.3 billion.

Morning Views Asia: Lenovo

By Leonard Law, CFA

Lucror Analytics Morning Views comprise our fundamental credit analysis, opinions and trade recommendations on high yield issuers in the region, based on key company-specific developments in the past 24 hours. Our Morning Views include a section with a brief market commentary, key market indicators and a macroeconomic and corporate event calendar.

Lenovo

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Jul 11

Daily Brief Japan: Kokusai Electric , Timee Inc, Creek & River, Shift Inc and more

By Smartkarma Daily Briefs | Daily Briefs, Japan

In today’s briefing:

Kokusai Elec (6525) ¥300bn+ Offering at ATH – Almost a Second IPO
Kokusai Electric (6525 JP): Placement, Buyback & Index Flows
Kokusai Electric (6525 JP): A US$2.0 Billion Secondary Offering
Kokusai Electric Placement – US$1.7bn Selldown for a Good Quality Name
Timee IPO: Strong Business Model with Improving Financials
Creek & River (4763 JP): Q1 FY02/25 flash update
Shift Inc (3697 JP): Q3 FY08/24 flash update

Kokusai Elec (6525) ¥300bn+ Offering at ATH – Almost a Second IPO

Today post-close we got confirmation of yesterday’s Reuters scoop of a secondary selldown on Kokusai Electric (6525 JP) after the stock fell 7.2% in heavy volume.
KKR HKE LP and KSP Kokusai LLC (Koch) will together sell 52.5mm shares plus another 7.8mm+ in the greenshoe. Split is 50/50 domestic/international.
This is 60+mm shares against 51mm shares held by non-passive holders ex-Capital (who has been selling). It’s a lot of stock at a high price.

Kokusai Electric (6525 JP): Placement, Buyback & Index Flows

By Brian Freitas

KKR and KSP Kokusai will offer 52.51m-60.38m shares (US$1.76bn-2bn) of Kokusai Electric (6525 JP) in a secondary offering that will likely be priced on 22 July.
Kokusai Electric (6525 JP) will also buy back up to JPY 18bn of its shares. At the last close, that is 3.33m shares (1.2x ADV).
Trackers of one global index will buy stock at the time of settlement of the shares. The (much) bigger buying will come at the end of August.

Kokusai Electric (6525 JP): A US$2.0 Billion Secondary Offering