Daily Briefs

We expect strong 30-35% YoY earnings growth in Plover Bay Technologies (1523 HK) for its earnings to be released in July for H1 FY24.
We expect the company to continue its 80% dividend payout ratio, which will result in a 4% semi-annual yield (8% annualized).
Trading at 12.2x with >50% ROEs and net cash of >30 mn USD, we expect the strong results to catalyze a further multiple rerate.

Dickson Concepts (113 HK): 38% Discount to NCAV, 8.6% Dividend Yield, Steady FY24

Dickson Concepts Intl (113 HK) reported earnings growth of 39% YoY, led mostly by an increase in interest income on the 9.6 HKD/share of net cash/investments on the balance sheet.
The company’s net current asset value (NCAV) expanded to 8.2 HKD/share (Vs. FY23: 7.6 HKD/share), and with the stock at 5.2 HKD/share, it trades at a 37% discount to NCAV.
The dividend was increased to 45 cents ( from FY23:35 cents/share), placing the stock at an attractive dividend yield of 8.6%.

EQD | Is the HSI Correction Going to Continue? (Yes, For 1-2 Weeks)

By Nico Rosti

The Hang Seng Index correction has restarted this week, after a brief 1-week bounce.
The index may continue to downtrend for another 1-2 weeks, then a reversal should come and the uptrend should restart.
Look at the price support area in the 17500-17000 range, because that is where my model indicates the highest chance of LONG reversal.

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Jun 15

Daily Brief India: S&P BSE SENSEX Index, NIFTY Index and more

By Smartkarma Daily Briefs | Daily Briefs, India

In today’s briefing:

FII’s High Short Positions on Indian Markets : Crisis or Opportunity
#1 Forensic Foresight: SEBI Warns ICICI Bank, Suzlon Director Resign, Wardwizard Disguise

FII’s High Short Positions on Indian Markets : Crisis or Opportunity

It is important for investors to not get swayed by popular narratives and instead look at the data and historical patterns to make informed decisions.
While a large short position by FIIs may seem concerning, it could actually signal a potential opportunity for positive returns in the Nifty 50 index.
By understanding the reasons behind this contrarian move and the historical trends, investors can navigate bet when FII’s short positions are high.

#1 Forensic Foresight: SEBI Warns ICICI Bank, Suzlon Director Resign, Wardwizard Disguise

Forensic Forsight will be a bi-monthly report covering Indian companies having corporate governance issues guiding investors on strengthening their ESG investment framework
The issue covers SEBI warning against ICICI Bank for manipulation in delisting process of its key subsidiary.
The report also covers how a EV company disguises shareholders while an Indian renewable energy company is under scrutiny owing to Independent Director Resignation

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Jun 15

Daily Brief Japan: Fancl Corp, Helios Techno Holding, Shiseido Company, Raccoon Holdings, Inc., GA Technologies, Good Com Asset, AB&Company Co Ltd, CellSource and more

By Smartkarma Daily Briefs | Daily Briefs, Japan

In today’s briefing:

Fancl (4921) TOB – Kirin (2503) Does the Inevitable and Takes Out Minorities. Lightish But…
Fancl (4921 JP): Kirin (2503 JP)’s Light JPY2,690 Tender Offer
Helios Techno Holding (6927) – RS Won’t Bid Higher, Market Sees Value
Shiseido (4911 JP): Brainstorming For Potential Buyers
Raccoon Holdings, Inc. (3031 JP): Full-year FY04/24 flash update
GA Technologies (3491 JP): 1H FY10/24 flash update
Good Com Asset (3475 JP): 1H FY10/24 flash update
AB&Company Co Ltd (9251 JP): 1H FY10/24 flash update
CellSource (4880 JP): 1H FY10/24 flash update

Fancl (4921) TOB – Kirin (2503) Does the Inevitable and Takes Out Minorities. Lightish But…

Kirin Holdings (2503 JP) bought a 33% stake from the founder and several others in August 2019. Five years later, they are coming back for the rest.
The price here is ¥2,690/share which is a 42.7% premium from yesterday’s close. Kirin paid 20+% more in 2019. Earnings fell, but they paid 37x NTM. This is 32x.
This is lightish… but… this should get done. Activism would be difficult. There are enough shareholders who should be OK getting out. This should trade tight.

Fancl (4921 JP): Kirin (2503 JP)’s Light JPY2,690 Tender Offer

By Arun George

Fancl Corp (4921 JP) recommended Kirin Holdings (2503 JP)’s tender offer of JPY2,690, a 42.7% premium to the undisturbed price.
The timing looks opportunistic as Fancl’s shares are down 20% YTD. The offer period is from 17 June to 29 July.
While the offer is attractive vs peer multiples, it is light vs historical trading ranges. Securing the required acceptance rate could prove challenging as the offer price is light.

Helios Techno Holding (6927) – RS Won’t Bid Higher, Market Sees Value

Today at noon JST, Rs Technologies (3445 JP) released an announcement on TDNet, “Our policy regarding the tender offer for Helios Techno Holding Co., Ltd. shares”
In it, they indicated that the price offered – ¥825/share – is a price which “fully returns to general shareholders the increased enterprise value that will result from [transaction] synergies.”
They acknowledge the market price is trading higher than the TOB Price, but say they have no plans to raise the Tender Offer Price. So now what? It depends.

Shiseido (4911 JP): Brainstorming For Potential Buyers

By Steve Zhou, CFA

Today, according to public news, Kirin Holdings will launch a tender offer for Fancl Corp (4921 JP) at a likely 30% premium.
The beauty industry is historically ripe with M&A deals. It is not hard to see why, as the global beauty sector trades at a hefty valuation multiple.
In this insight, we brainstorm for potential buyers of Shiseido Company (4911 JP) and analyze the viability of such.

Raccoon Holdings, Inc. (3031 JP): Full-year FY04/24 flash update

Revenue increased by 9.2% YoY to JPY5.8bn, driven by economic recovery and increased inbound demand.
Operating profit decreased by 52.5% YoY to JPY567mn due to higher advertising and promotional expenses.
Financial business revenue rose 14.9% YoY to JPY2.5bn, with a 29.4% YoY decrease in operating profit to JPY371mn.

GA Technologies (3491 JP): 1H FY10/24 flash update

Revenue for 1H FY10/24 was JPY85.9bn, up 35.5% YoY, with a business profit of JPY2.2bn, up 146.1% YoY.
RENOSY Marketplace business revenue was JPY83.6bn, up 35.3% YoY, and ITANDI business revenue was JPY2.1bn, up 34.1% YoY.
FY10/24 company forecast revised to JPY185.0bn in revenue and JPY3.7bn in business profit, with EPS unchanged at JPY45.90.

Good Com Asset (3475 JP): 1H FY10/24 flash update

Sales increased by 6.0% YoY to JPY11.4bn, but net income attributable to owners decreased by 54.1% YoY to JPY359mn.
Wholesale Sales and Retail Sales segments saw YoY profit drops, while Real Estate Management posted YoY increases in both sales and profit.
The company sold 15 condo buildings with 369 units (+11.5% YoY) and purchased nine condo buildings with 675 units (-61.2% YoY).

AB&Company Co Ltd (9251 JP): 1H FY10/24 flash update

Revenue increased by 6.9% YoY to JPY8.7bn, but operating profit decreased by 9.9% YoY to JPY802mn.
Directly Managed Beauty Salon Operation revenue grew 6.3% YoY to JPY7.2bn, while operating profit dropped significantly to JPY20mn.
Franchise segment revenue rose 19.0% YoY to JPY1.3bn, with operating profit increasing 27.7% YoY to JPY528mn.

CellSource (4880 JP): 1H FY10/24 flash update

Revenue increased by 2.6% YoY to JPY2.2bn, while operating profit decreased by 57.3% YoY to JPY281mn.
SG&A expenses rose by 29.4% YoY to JPY1.1bn, leading to an operating profit margin decline to 12.6%.
Medical device sales grew by 35.6% YoY to JPY486mn, and cosmetics sales surged by 157.9% YoY to JPY286mn.

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Jun 15

Most Read: Hyundai Mobis, EcoPro Materials, Shift Up, Fancl Corp, Helios Techno Holding, Webtoon Entertainment, Shiseido Company, Enchem and more

By Smartkarma Daily Briefs | Daily Briefs, Most Read

In today’s briefing:

The Latest on the Rumors Surrounding the Death of Chung Mong-Koo of Hyundai Motor Group
Another Block Deal Sale of Ecopro Materials
Shift Up IPO – Refiling and Other Updates, Not Ranked at the Top Anymore
Fancl (4921 JP): Kirin (2503 JP)’s Light JPY2,690 Tender Offer
Fancl (4921) TOB – Kirin (2503) Does the Inevitable and Takes Out Minorities. Lightish But…
Clarifying BRV’s Post-Block Deal Lockup Conditions Involving Ecopro Materials
Helios Techno Holding (6927) – RS Won’t Bid Higher, Market Sees Value
Webtoon Entertainment Pre-IPO – Peer Comparison – Relatively Small in Operating Scale as a Platform
Shiseido (4911 JP): Brainstorming For Potential Buyers
Block Deal Sale of 3.6% Shares of Enchem

The Latest on the Rumors Surrounding the Death of Chung Mong-Koo of Hyundai Motor Group

Early this morning, rumors spread that Hyundai’s honorary chairman Chung Mong-koo was hospitalized and died, causing stock prices to surge, but Hyundai denied this news.
Control of Hyundai hinges on increasing the stake in Mobis. Chung Eui-sun aims to keep Mobis’s stock low, but Chung Mong-koo’s health complicates timing and strategy.
Mobis’s trading point depends on Chung Mong-koo’s health. Three scenarios: he’s healthy, critically ill, or deceased. Current rumors’ price impacts are unlikely to subside soon.

Another Block Deal Sale of Ecopro Materials

Shares of EcoPro Materials are down 16% today to 112,300 won, due to another block deal sale of by BRV Capital in the after hours trading on 13 June.
After the second block deal sale on 14 June, BRV’s stake declined further from 21.2% to 18.2%.
This block deal sale at a big discount is likely to raise overhang concerns about further block deal sales by BRV Capital in the coming months/years.

Shift Up IPO – Refiling and Other Updates, Not Ranked at the Top Anymore

By Sumeet Singh

Shift Up (462870 KS) plans to raise up to US$320m in its South Korean IPO.
Shift Up is a South Korean games developer, which as released three games so far for the global markets.
We have looked at the company’s performance, undertaken a peer comparison and talked about valuations in our past notes. In this note, we talk about the refiling and other updates.

Fancl (4921 JP): Kirin (2503 JP)’s Light JPY2,690 Tender Offer

By Arun George

Fancl Corp (4921 JP) recommended Kirin Holdings (2503 JP)’s tender offer of JPY2,690, a 42.7% premium to the undisturbed price.
The timing looks opportunistic as Fancl’s shares are down 20% YTD. The offer period is from 17 June to 29 July.
While the offer is attractive vs peer multiples, it is light vs historical trading ranges. Securing the required acceptance rate could prove challenging as the offer price is light.

Fancl (4921) TOB – Kirin (2503) Does the Inevitable and Takes Out Minorities. Lightish But…

Kirin Holdings (2503 JP) bought a 33% stake from the founder and several others in August 2019. Five years later, they are coming back for the rest.
The price here is ¥2,690/share which is a 42.7% premium from yesterday’s close. Kirin paid 20+% more in 2019. Earnings fell, but they paid 37x NTM. This is 32x.
This is lightish… but… this should get done. Activism would be difficult. There are enough shareholders who should be OK getting out. This should trade tight.

Clarifying BRV’s Post-Block Deal Lockup Conditions Involving Ecopro Materials

In Korea, the lockup period for block deals is set by the seller and underwriters, not by law, and can be adjusted if both parties agree.
BRV obtained consent from Goldman, UBS, and KB for a second block deal after assessing that many initial buyers had sold their shares.
Understanding this lockup structure provides key insights into predicting when the next block deal might occur.

Helios Techno Holding (6927) – RS Won’t Bid Higher, Market Sees Value

Today at noon JST, Rs Technologies (3445 JP) released an announcement on TDNet, “Our policy regarding the tender offer for Helios Techno Holding Co., Ltd. shares”
In it, they indicated that the price offered – ¥825/share – is a price which “fully returns to general shareholders the increased enterprise value that will result from [transaction] synergies.”
They acknowledge the market price is trading higher than the TOB Price, but say they have no plans to raise the Tender Offer Price. So now what? It depends.

Webtoon Entertainment Pre-IPO – Peer Comparison – Relatively Small in Operating Scale as a Platform

By Ethan Aw

Webtoon Entertainment (WBTN US) is looking to raise up to US$500m in its US IPO.
Webtoon Entertainment is a global storytelling platform where a community of creators and users discover, create and share new content.
In our previous note, we talked about the company’s historical performance. In this note, we undertake a peer comparison.

Shiseido (4911 JP): Brainstorming For Potential Buyers

By Steve Zhou, CFA

Today, according to public news, Kirin Holdings will launch a tender offer for Fancl Corp (4921 JP) at a likely 30% premium.
The beauty industry is historically ripe with M&A deals. It is not hard to see why, as the global beauty sector trades at a hefty valuation multiple.
In this insight, we brainstorm for potential buyers of Shiseido Company (4911 JP) and analyze the viability of such.

Block Deal Sale of 3.6% Shares of Enchem

After the market close on 14 June, it was reported that Woori PE/other investors will be selling 705,384 shares of Enchem in a block deal, representing 3.6% of outstanding shares.
The block deal discount rate ranges from 6.9% to 8.92%, resulting in potential block deal sale price of 270,500 won to 276,500 won.
We would not subscribe to this block deal and we are concerned about the valuations of Enchem after a sharp share price appreciation this year.

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Jun 15

Daily Brief TMT/Internet: Shift Up, Plover Bay Technologies, Hon Hai Precision Industry, Intel Corp, GA Technologies, ADTRAN Holdings and more

By Smartkarma Daily Briefs | Daily Briefs, TMT/Internet

In today’s briefing:

Shift Up IPO – Refiling and Other Updates, Not Ranked at the Top Anymore
Plover Bay 1523 HK Earnings Preview: Strong H1 FY24, Rerating to Continue
Tech Supply Chain Tracker (15-Jun-2024): 5G products made by Nokia and Foxconn in northern Vietnam.
Intel Warns That Its Foundry Strategy Is “Highly Risky” & Its Success Is “Highly Uncertain”
GA Technologies (3491 JP): 1H FY10/24 flash update
Adtran Holdings Inc (ADTN) – Friday, Mar 15, 2024

Shift Up IPO – Refiling and Other Updates, Not Ranked at the Top Anymore

By Sumeet Singh

Shift Up (462870 KS) plans to raise up to US$320m in its South Korean IPO.
Shift Up is a South Korean games developer, which as released three games so far for the global markets.
We have looked at the company’s performance, undertaken a peer comparison and talked about valuations in our past notes. In this note, we talk about the refiling and other updates.

Plover Bay 1523 HK Earnings Preview: Strong H1 FY24, Rerating to Continue

We expect strong 30-35% YoY earnings growth in Plover Bay Technologies (1523 HK) for its earnings to be released in July for H1 FY24.
We expect the company to continue its 80% dividend payout ratio, which will result in a 4% semi-annual yield (8% annualized).
Trading at 12.2x with >50% ROEs and net cash of >30 mn USD, we expect the strong results to catalyze a further multiple rerate.

Tech Supply Chain Tracker (15-Jun-2024): 5G products made by Nokia and Foxconn in northern Vietnam.

By Tech Supply Chain Tracker

Nokia and Foxconn are collaborating to manufacture 5G products in northern Vietnam, potentially boosting the country’s tech industry.
Huawei’s entry into the automotive tier-1 market raises questions about its impact on traditional car manufacturers.
The UK semiconductor industry and Taiwan Semiconductor Manufacturing Company (TSMC) are highlighted at London Tech Week, showcasing their importance in the tech world.

Intel Warns That Its Foundry Strategy Is “Highly Risky” & Its Success Is “Highly Uncertain”

By William Keating

Intel’s 2023 10K includes two new risk sections relating to its foundry plans and Smart Capital approach to funding them.
It labels its foundry plan as “Highly Risky” and rates its chances of success as “highly uncertain”
They also helpfully warn that they have “limited experience” with the third party foundry business, just FYI

GA Technologies (3491 JP): 1H FY10/24 flash update

Revenue for 1H FY10/24 was JPY85.9bn, up 35.5% YoY, with a business profit of JPY2.2bn, up 146.1% YoY.
RENOSY Marketplace business revenue was JPY83.6bn, up 35.3% YoY, and ITANDI business revenue was JPY2.1bn, up 34.1% YoY.
FY10/24 company forecast revised to JPY185.0bn in revenue and JPY3.7bn in business profit, with EPS unchanged at JPY45.90.

Adtran Holdings Inc (ADTN) – Friday, Mar 15, 2024

By Value Investors Club

Severe cyclical downturn impacting broadband/optical telecom equipment vendors
Author believes ADTN has significant upside potential of 2.5x-5x from current price
Expectation for ADTN to reach $1-$1.50 EPS power over next two years, confident in company’s ability to manage tight liquidity situation without diluting shareholders

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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Jun 15

Daily Brief Industrials: Helios Techno Holding, CoreCivic , Norcros PLC, Skywest Inc and more

By Smartkarma Daily Briefs | Daily Briefs, Industrials

In today’s briefing:

Helios Techno Holding (6927) – RS Won’t Bid Higher, Market Sees Value
CXW: Revising Estimates Believe CXW Relationship with ICE Remains Strong
Norcros – Robust performance, improving outlook
Skywest Inc (SKYW) – Friday, Mar 15, 2024

Helios Techno Holding (6927) – RS Won’t Bid Higher, Market Sees Value

Today at noon JST, Rs Technologies (3445 JP) released an announcement on TDNet, “Our policy regarding the tender offer for Helios Techno Holding Co., Ltd. shares”
In it, they indicated that the price offered – ¥825/share – is a price which “fully returns to general shareholders the increased enterprise value that will result from [transaction] synergies.”
They acknowledge the market price is trading higher than the TOB Price, but say they have no plans to raise the Tender Offer Price. So now what? It depends.

CXW: Revising Estimates Believe CXW Relationship with ICE Remains Strong

By Zacks Small Cap Research

The contract termination was driven primarily by costs, according to the WSJ.
Unlike most CXW ICE contracts, the center has been operated under a costlier model because it was initially opened in 2014 to house families, then was transitioned in 2021 to detention primarily of individual adults.
Despite the expected short-term challenge of the contract termination, longer term we expect rising demand from ICE under the traditional detention model.

Norcros – Robust performance, improving outlook

By Edison Investment Research

Norcros’s FY24 results highlight its resilience in the face of tough markets, but we continue to believe that the outlook is improving in both of its core markets, the UK and South Africa. Despite the improving outlook we have maintained our revenue and profit forecasts and 251p/share valuation post the results, with the company trading on an undemanding P/E rating of 6.6x. However, it is worth highlighting the scale of the opportunity on offer to Norcros, which was illustrated at the recent capital markets day.

Skywest Inc (SKYW) – Friday, Mar 15, 2024

By Value Investors Club

Regional airlines like SkyWest were established to operate connecting routes under contracts with major airlines
SkyWest’s efficient operations and strong relationships with major carriers have made it a dominant player in the regional airline market
The company’s financial success and potential for future growth indicate a positive outlook for the coming years

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Jun 15

Daily Brief Energy/Materials: EcoPro Materials, Enchem and more

By Smartkarma Daily Briefs | Daily Briefs, Energy & Materials Sector

In today’s briefing:

Another Block Deal Sale of Ecopro Materials
Clarifying BRV’s Post-Block Deal Lockup Conditions Involving Ecopro Materials
Block Deal Sale of 3.6% Shares of Enchem
Enchem Placement- Easily Digestible but a Punt at Best

Another Block Deal Sale of Ecopro Materials

Shares of EcoPro Materials are down 16% today to 112,300 won, due to another block deal sale of by BRV Capital in the after hours trading on 13 June.
After the second block deal sale on 14 June, BRV’s stake declined further from 21.2% to 18.2%.
This block deal sale at a big discount is likely to raise overhang concerns about further block deal sales by BRV Capital in the coming months/years.

Clarifying BRV’s Post-Block Deal Lockup Conditions Involving Ecopro Materials

In Korea, the lockup period for block deals is set by the seller and underwriters, not by law, and can be adjusted if both parties agree.
BRV obtained consent from Goldman, UBS, and KB for a second block deal after assessing that many initial buyers had sold their shares.
Understanding this lockup structure provides key insights into predicting when the next block deal might occur.

Block Deal Sale of 3.6% Shares of Enchem

After the market close on 14 June, it was reported that Woori PE/other investors will be selling 705,384 shares of Enchem in a block deal, representing 3.6% of outstanding shares.
The block deal discount rate ranges from 6.9% to 8.92%, resulting in potential block deal sale price of 270,500 won to 276,500 won.
We would not subscribe to this block deal and we are concerned about the valuations of Enchem after a sharp share price appreciation this year.

Enchem Placement- Easily Digestible but a Punt at Best

By Ethan Aw

Woori PE, NH PE and KDB Capital seek to raise around KRW195bn (US$141m) through a secondary block deal, selling 0.71m shares (3.64% of TSO) of Enchem (348370 KS).
The deal is a small one to digest at only 1.1 days of three-month ADV.
In this note, we will talk about the placement and run the deal through our ECM framework.

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Jun 15

Daily Brief Financials: S&P BSE SENSEX Index, NIFTY Index, Hang Seng Index, Good Com Asset, Lincoln National, Old Republic Intl, Primerica Inc, Radian Group, AB&Company Co Ltd, Unum Group and more

By Smartkarma Daily Briefs | Daily Briefs, Financials

In today’s briefing:

FII’s High Short Positions on Indian Markets : Crisis or Opportunity
#1 Forensic Foresight: SEBI Warns ICICI Bank, Suzlon Director Resign, Wardwizard Disguise
EQD | Is the HSI Correction Going to Continue? (Yes, For 1-2 Weeks)
Good Com Asset (3475 JP): 1H FY10/24 flash update
Lincoln National Corporation: Initiation of Coverage – A Tale Of Strategic Repositioning & Improving Cost Management! – Major Drivers
Old Republic International Corporation: Initiation of Coverage – Can Its Strategic Technological Investments Give It A Competitive Edge? – Major Drivers
Primerica Inc.: Initiation of Coverage – These Are The 4 Fundamental Factors Driving Their Performance! – Financial Forecasts
Radian Group Inc.: Initiation of Coverage – Improved Default Management and Cure Rates & Other Major Drivers
AB&Company Co Ltd (9251 JP): 1H FY10/24 flash update
Unum Group: Initiation of Coverage – Expansion Of Service Capabilities & 3 Critical Growth Drivers

FII’s High Short Positions on Indian Markets : Crisis or Opportunity

It is important for investors to not get swayed by popular narratives and instead look at the data and historical patterns to make informed decisions.
While a large short position by FIIs may seem concerning, it could actually signal a potential opportunity for positive returns in the Nifty 50 index.
By understanding the reasons behind this contrarian move and the historical trends, investors can navigate bet when FII’s short positions are high.

#1 Forensic Foresight: SEBI Warns ICICI Bank, Suzlon Director Resign, Wardwizard Disguise

Forensic Forsight will be a bi-monthly report covering Indian companies having corporate governance issues guiding investors on strengthening their ESG investment framework
The issue covers SEBI warning against ICICI Bank for manipulation in delisting process of its key subsidiary.
The report also covers how a EV company disguises shareholders while an Indian renewable energy company is under scrutiny owing to Independent Director Resignation

EQD | Is the HSI Correction Going to Continue? (Yes, For 1-2 Weeks)

By Nico Rosti

The Hang Seng Index correction has restarted this week, after a brief 1-week bounce.
The index may continue to downtrend for another 1-2 weeks, then a reversal should come and the uptrend should restart.
Look at the price support area in the 17500-17000 range, because that is where my model indicates the highest chance of LONG reversal.

Good Com Asset (3475 JP): 1H FY10/24 flash update

Sales increased by 6.0% YoY to JPY11.4bn, but net income attributable to owners decreased by 54.1% YoY to JPY359mn.
Wholesale Sales and Retail Sales segments saw YoY profit drops, while Real Estate Management posted YoY increases in both sales and profit.
The company sold 15 condo buildings with 369 units (+11.5% YoY) and purchased nine condo buildings with 675 units (-61.2% YoY).

Lincoln National Corporation: Initiation of Coverage – A Tale Of Strategic Repositioning & Improving Cost Management! – Major Drivers

Lincoln Financial Group delivered a robust performance in the first quarter of 2024, attributed to strategic repositioning and growth across its various business segments.
The company reported strong results in its Annuities, Group Protection, Retirement Plan Services, and Life business areas.
Key highlights include a significant earnings quarter for the Annuities division and strong year-over-year earnings growth in Group Protection.

Old Republic International Corporation: Initiation of Coverage – Can Its Strategic Technological Investments Give It A Competitive Edge? – Major Drivers

Old Republic International Corporation disclosed its first-quarter 2024 financial results, showcasing a mixed performance with strengths in General Insurance contrasted by challenges in the Title Insurance segment.
The company reported a consolidated pretax operating income of $231.5 million, which marks an increase from $222.9 million in the corresponding period of the previous year.
This growth was primarily driven by a robust performance in the General Insurance sector, which offset the subdued results in Title Insurance due to prevailing market conditions.

Primerica Inc.: Initiation of Coverage – These Are The 4 Fundamental Factors Driving Their Performance! – Financial Forecasts

Primerica’s first quarter of 2024 financial results demonstrated resilience amidst challenging economic conditions, although it faced underperformance in certain segments.
The company reported an adjusted net operating income of $137 million, which represents a 4% increase compared to the previous year, and adjusted operating income per share rose by 10% to $3.91.
These figures reflect the robust performance of Primerica’s core businesses, Term Life and Investment and Savings Products (ISP), along with notable growth in the sales force.

Radian Group Inc.: Initiation of Coverage – Improved Default Management and Cure Rates & Other Major Drivers

Radian Group reported encouraging financial outcomes for the first quarter of 2024, reflecting its strong operational core and effective strategy implementation.
The company witnessed a year-over year growth in its book value per share by 12%, with revenues increasing by 3% to $319 million.
The primary mortgage insurance in force rose by 4% to an all-time high of $271 billion, bolstering future earning prospects.

AB&Company Co Ltd (9251 JP): 1H FY10/24 flash update

Revenue increased by 6.9% YoY to JPY8.7bn, but operating profit decreased by 9.9% YoY to JPY802mn.
Directly Managed Beauty Salon Operation revenue grew 6.3% YoY to JPY7.2bn, while operating profit dropped significantly to JPY20mn.
Franchise segment revenue rose 19.0% YoY to JPY1.3bn, with operating profit increasing 27.7% YoY to JPY528mn.

Unum Group: Initiation of Coverage – Expansion Of Service Capabilities & 3 Critical Growth Drivers

Unum Group has reported a commendable first quarter for 2024, signaling a robust start to the year with mixed outcomes that illustrate both strengths and areas requiring attention.
The company emphasized its achievement of a 13.6% increase in earnings per share, reaching a record $2.12 per share.
This growth was supported by a significant $350 million in statutory earnings, alongside a 6.6% rise in core operations premium growth.

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Jun 15

Daily Brief Industrials: Helios Techno Holding, CoreCivic , Norcros PLC, Skywest Inc and more

By Smartkarma Daily Briefs | Daily Briefs, Industrials

In today’s briefing:

Helios Techno Holding (6927) – RS Won’t Bid Higher, Market Sees Value
CXW: Revising Estimates Believe CXW Relationship with ICE Remains Strong
Norcros – Robust performance, improving outlook
Skywest Inc (SKYW) – Friday, Mar 15, 2024

Helios Techno Holding (6927) – RS Won’t Bid Higher, Market Sees Value

Today at noon JST, Rs Technologies (3445 JP) released an announcement on TDNet, “Our policy regarding the tender offer for Helios Techno Holding Co., Ltd. shares”
In it, they indicated that the price offered – ¥825/share – is a price which “fully returns to general shareholders the increased enterprise value that will result from [transaction] synergies.”
They acknowledge the market price is trading higher than the TOB Price, but say they have no plans to raise the Tender Offer Price. So now what? It depends.

CXW: Revising Estimates Believe CXW Relationship with ICE Remains Strong

By Zacks Small Cap Research

The contract termination was driven primarily by costs, according to the WSJ.
Unlike most CXW ICE contracts, the center has been operated under a costlier model because it was initially opened in 2014 to house families, then was transitioned in 2021 to detention primarily of individual adults.
Despite the expected short-term challenge of the contract termination, longer term we expect rising demand from ICE under the traditional detention model.

Norcros – Robust performance, improving outlook

By Edison Investment Research

Skywest Inc (SKYW) – Friday, Mar 15, 2024

By Value Investors Club

Regional airlines like SkyWest were established to operate connecting routes under contracts with major airlines
SkyWest’s efficient operations and strong relationships with major carriers have made it a dominant player in the regional airline market
The company’s financial success and potential for future growth indicate a positive outlook for the coming years

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Jun 15

Daily Brief Consumer: Hyundai Mobis, Fancl Corp, Webtoon Entertainment, Shiseido Company, Dickson Concepts Intl, Raccoon Holdings, Inc. and more

By Smartkarma Daily Briefs | Consumer, Daily Briefs

In today’s briefing:

The Latest on the Rumors Surrounding the Death of Chung Mong-Koo of Hyundai Motor Group
Fancl (4921 JP): Kirin (2503 JP)’s Light JPY2,690 Tender Offer
Fancl (4921) TOB – Kirin (2503) Does the Inevitable and Takes Out Minorities. Lightish But…
Webtoon Entertainment Pre-IPO – Peer Comparison – Relatively Small in Operating Scale as a Platform
Shiseido (4911 JP): Brainstorming For Potential Buyers
Dickson Concepts (113 HK): 38% Discount to NCAV, 8.6% Dividend Yield, Steady FY24
Raccoon Holdings, Inc. (3031 JP): Full-year FY04/24 flash update

The Latest on the Rumors Surrounding the Death of Chung Mong-Koo of Hyundai Motor Group

Early this morning, rumors spread that Hyundai’s honorary chairman Chung Mong-koo was hospitalized and died, causing stock prices to surge, but Hyundai denied this news.
Control of Hyundai hinges on increasing the stake in Mobis. Chung Eui-sun aims to keep Mobis’s stock low, but Chung Mong-koo’s health complicates timing and strategy.
Mobis’s trading point depends on Chung Mong-koo’s health. Three scenarios: he’s healthy, critically ill, or deceased. Current rumors’ price impacts are unlikely to subside soon.

Fancl (4921 JP): Kirin (2503 JP)’s Light JPY2,690 Tender Offer

By Arun George

Fancl Corp (4921 JP) recommended Kirin Holdings (2503 JP)’s tender offer of JPY2,690, a 42.7% premium to the undisturbed price.
The timing looks opportunistic as Fancl’s shares are down 20% YTD. The offer period is from 17 June to 29 July.
While the offer is attractive vs peer multiples, it is light vs historical trading ranges. Securing the required acceptance rate could prove challenging as the offer price is light.

Fancl (4921) TOB – Kirin (2503) Does the Inevitable and Takes Out Minorities. Lightish But…

Kirin Holdings (2503 JP) bought a 33% stake from the founder and several others in August 2019. Five years later, they are coming back for the rest.
The price here is ¥2,690/share which is a 42.7% premium from yesterday’s close. Kirin paid 20+% more in 2019. Earnings fell, but they paid 37x NTM. This is 32x.
This is lightish… but… this should get done. Activism would be difficult. There are enough shareholders who should be OK getting out. This should trade tight.

Webtoon Entertainment Pre-IPO – Peer Comparison – Relatively Small in Operating Scale as a Platform

By Ethan Aw

Webtoon Entertainment (WBTN US) is looking to raise up to US$500m in its US IPO.
Webtoon Entertainment is a global storytelling platform where a community of creators and users discover, create and share new content.
In our previous note, we talked about the company’s historical performance. In this note, we undertake a peer comparison.

Shiseido (4911 JP): Brainstorming For Potential Buyers

By Steve Zhou, CFA

Today, according to public news, Kirin Holdings will launch a tender offer for Fancl Corp (4921 JP) at a likely 30% premium.
The beauty industry is historically ripe with M&A deals. It is not hard to see why, as the global beauty sector trades at a hefty valuation multiple.
In this insight, we brainstorm for potential buyers of Shiseido Company (4911 JP) and analyze the viability of such.

Dickson Concepts (113 HK): 38% Discount to NCAV, 8.6% Dividend Yield, Steady FY24

Dickson Concepts Intl (113 HK) reported earnings growth of 39% YoY, led mostly by an increase in interest income on the 9.6 HKD/share of net cash/investments on the balance sheet.
The company’s net current asset value (NCAV) expanded to 8.2 HKD/share (Vs. FY23: 7.6 HKD/share), and with the stock at 5.2 HKD/share, it trades at a 37% discount to NCAV.
The dividend was increased to 45 cents ( from FY23:35 cents/share), placing the stock at an attractive dividend yield of 8.6%.

Raccoon Holdings, Inc. (3031 JP): Full-year FY04/24 flash update