Daily Briefs

A weekly summary of key developments across ECM and Event-Driven names tracked by us across Hong Kong, Australia, New Zealand, Singapore, Japan, Indonesia, Malaysia, Thailand, Korea, India and Chinese ADRs.
ECM developments: S.F. Holding (002352 CH) is premarketing an H Share listing to raise US$1.0-1.5 billion, Kansai Electric Power (9503 JP)‘s US$3.5 billion placement.
Event-Driven developments: Seven & I Holdings (3382 JP), Fuji Soft Inc (9749 JP), Nishimoto (9260 JP), Macromill, Inc (3978 JP), Agro Kanesho (4955 JP), Renewable Japan (9522 JP), CPMC.

Fuji Soft (9749 JP): KKR Bumps to JPY9,451 as Bain Left High and Dry

KKR & Co (KKR US) has secured the Fuji Soft Inc (9749 JP) Board’s unanimous support by bumping its second tender offer to JPY9,451, a JPY1 premium to Bain’s JPY9,450 offer.
The Board is claiming a “fiduciary duty” win as it has secured a higher offer from KKR but paradoxically signalling that it will not negotiate a bump from Bain.
Bain will likely walk rather than try to win the Board’s support by revising terms. At the last close, the gross spread to KKR’s offer is 3.7%.

(Mostly) Asia-Pac M&A: Agro Kanesho, Nishimoto, Chita Kogyo, Macromill, Silk Logistics, Avarga, MAHB

I tally 48 – mostly firm, mostly Asia-Pac – transactions currently being discussed and analysed on Smartkarma. Inside is a timetable of upcoming key events for each deal.
Six new deals this week! TOs for Agro Kanesho (4955 JP), Nishimoto (9260 JP), Chita Kogyo (5993 JP), Macromill (3978 JP). Also Silk Logistics (SLH AU) and Avarga (AVARGA SP).
Key updates took place on: Pacific Smiles (PSQ AU), ASMPT (522 HK), Nec Networks & System Integr (1973 JP), Seven & I (3382 JP), and Malaysia Airports Holdings (MAHB MK).

Last Week in Event SPACE: Seven & I, PA Gooddoctor, Nec Networks, Genscript/Legend, ASM PT, Hanwha

There are people who’ll take profit in Seven & I (3382 JP) because of path dependency til year-end. It will drag out a while: buy the dips, trim on pops.
Just like in Lufax Holding (6623 HK)‘s special dividend, expect Ping An to boost its holding in Ping An Healthcare and Technology (1833 HK) via the stealthy scrip dividend option.
The landscape for Nec Networks & System Integr (1973 JP) has FULLY changed. The details now matter quite a bit. NEC has two basic choices. Neither are that palatable.

2024 High Conviction Update: Asahi Intecc (7747 JP)- Medical Division Drives Q1 Result

By Tina Banerjee

Asahi Intecc (7747 JP) recorded 9% YoY revenue growth to ¥31B in Q1FY25. Revenue growth is attributable to the continued strong trajectory of medical division, which reported 10% YoY growth.
Strong rebound in China is key highlight for medical division performance. Revenue from China increased by a whopping 36% YoY and 44% QoQ to a record high of ¥9.3B.
Despite a better-than-expected Q1FY25, the company maintains full-year FY25 guidance, due to external factors such as currency movements as well as uncertainties in trends for net sales, productivity, and expenditure.

Toyota Motor Corporation: Their Adaptation & Strategy in the Chinese Market Driving Our ‘Buy’ Rating! – Major Drivers

Toyota Motor Corporation has announced its fiscal year 2025 second-quarter financial results.
The company achieved an operating income of JPY 2.4642 trillion for the first half of the fiscal year, which was maintained close to the previous year despite some setbacks in production and increases in expenses.
While sales revenue touched JPY 23.2824 trillion, the net income of JPY 1.9071 trillion saw a significant decrease from the prior year, primarily due to exchange rate fluctuations which caused valuation losses in foreign currency assets.

💡 Before it’s here, it’s on Smartkarma

The Smartkarma Preview Pass is your entry to the Independent Investment Research Network

✓ Unlimited Research Summaries
✓ Personalised Alerts
✓ Custom Watchlists
✓ Company Data and News
✓ Events & Webinars

Nov 17

Daily Brief United States: GXO Logistics, Howmet Aerospace , Chemours Co/The, Cleveland-Cliffs Inc , Coherent Inc, Cvs Health Corp, Energy Transfer LP, Duolingo, Freshpet Inc, Cirrus Logic and more

By Smartkarma Daily Briefs | Daily Briefs, United States

In today’s briefing:

GXO Logistics Inc.: Expanding E-Fulfillment Capabilities to Set New Standards! – Major Drivers
Howmet Aerospace Inc.: Capitalizing on Explosive Commercial Aerospace Growth for 2025! – Major Drivers
The Chemours Company: Its’ Strategic Portfolio Overhaul Maximizing Returns in High-Growth Markets! – Major Drivers
Cleveland-Cliffs Inc.: Can The Stelco Acquisition Be A Game Changer? – Major Drivers
Coherent Corp: Expanding Data Center Capabilities For A Possibly Unmatched Revenue Impact! – Major Drivers
CVS Health Corporation: Expansion & Optimization of Health Services As A Critical Factor Driving Growth! – Major Drivers
Energy Transfer LP: Can Its Expansion of Infrastructure & Capacity Be A Potential Game Changer? – Major Drivers
Duolingo Inc.: Leveraging AI & User Engagement For A Competitive Edge! – Major Drivers
Freshpet Inc.: These Are The 7 Biggest Factors Impacting Its Performance In 2025 & Beyond! – Major Drivers
Cirrus Logic Inc.: Will Its Expansion into Laptop Markets Bring A Shift In The Competitive Dynamics? – Major Drivers

GXO Logistics Inc.: Expanding E-Fulfillment Capabilities to Set New Standards! – Major Drivers

GXO Logistics’ latest earnings for the third quarter of 2024 painted a mixed yet informative picture of its financial performance and strategic positioning.
The company reported record revenues of $3.2 billion, marking a substantial year-over-year increase of 28%.
This robust top-line growth is partially attributed to an organic revenue growth of 3%, which has shown a sequential upward trend throughout the fiscal year.

Howmet Aerospace Inc.: Capitalizing on Explosive Commercial Aerospace Growth for 2025! – Major Drivers

Howmet Aerospace’s third quarter 2024 results demonstrate significant performance gains amidst a complex operating environment.
The company’s revenue growth was substantial at 11% year-over-year, with commercial aerospace driving much of this improvement with a 17% increase in revenue.
The engine products and fasteners segments excelled, supported by robust structures performance.

The Chemours Company: Its’ Strategic Portfolio Overhaul Maximizing Returns in High-Growth Markets! – Major Drivers

The Chemours Company’s third-quarter 2024 results present a mixed picture, reflecting both commendable strategic implementation and ongoing market challenges.
The quarter witnessed a 1% increase in consolidated net sales to approximately $1.5 billion, driven by a 5% rise in volume, though partially offset by a 3% decline in pricing and a slight currency headwind.
This reflects the company’s effective operational execution and successful navigation through previous disruptions, evidenced by year-over-year volume growth across all business segments.

Cleveland-Cliffs Inc.: Can The Stelco Acquisition Be A Game Changer? – Major Drivers

Cleveland-Cliffs presented its third-quarter 2024 results during a challenging period of weaker steel demand and pricing, largely attributed to reduced automotive production and high interest rates affecting consumer decisions.
The company’s acquisition of Stelco, a Canadian steelmaker, was a notable development during this period, promising operational agility and cost efficiency.Cleveland-Cliffs reported a quarterly adjusted EBITDA of $124 million on 3.8 million tons of shipments.
This was a decline from previous performance levels, which the company attributed to reduced activity in the automotive industry.

Coherent Corp: Expanding Data Center Capabilities For A Possibly Unmatched Revenue Impact! – Major Drivers

Coherent Corp. recently held a discussion about its first-quarter financial results for fiscal year 2025, presenting a mixed performance marked by notable progress in key areas and challenges in others.
The company reported a 28% year-over-year revenue increase, reaching $1.35 billion, driven by strong demand for AI-related datacom transceivers and improved performance in the telecom sector.
Sequential revenue growth highlights the momentum in these segments.

CVS Health Corporation: Expansion & Optimization of Health Services As A Critical Factor Driving Growth! – Major Drivers

CVS Health’s recent third-quarter 2024 earnings report presents a multifaceted view of the company’s performance and strategic direction.
The company’s revenue reached approximately $95.4 billion, marking a 6% increase from the previous year.
However, the adjusted earnings per share (EPS) of $1.09 indicate challenges, particularly within the Health Care Benefits (HCB) segment.

Energy Transfer LP: Can Its Expansion of Infrastructure & Capacity Be A Potential Game Changer? – Major Drivers

Energy Transfer’s third quarter of 2024 results reveal several positive developments alongside some challenges, reflecting a complex operating environment.
Financially, Energy Transfer generated an adjusted EBITDA of $3.96 billion compared to $3.54 billion in the same quarter of the previous year, indicating growth driven by record volumes across its pipelines and strong performance in crude and NGL exports.
Despite the improved EBITDA, distributable cash flow attributable to partners remained flat at $1.99 billion year-over-year.

Duolingo Inc.: Leveraging AI & User Engagement For A Competitive Edge! – Major Drivers

Duolingo, a prominent player in the online language learning space, has reported its financial results for the third quarter of 2024, outlining both strengths and areas to watch.
The company demonstrated robust growth in key metrics, including a 54% year-over-year increase in daily active users (DAUs), with its Family Plan onboarding 21% of its subscriber base.
This impressive user growth, particularly after a high growth rate in previous years, suggests that Duolingo continues to successfully engage its expanding user base.

Freshpet Inc.: These Are The 7 Biggest Factors Impacting Its Performance In 2025 & Beyond! – Major Drivers

Freshpet, Inc.’s third-quarter 2024 financial performance highlights both strengths and areas for cautious consideration.
On the positive side, Freshpet reported its 25th consecutive quarter of 25% year-on-year growth, emphasizing its resilient sales momentum.
Net sales reached $253.4 million, marking a 26% year-over-year increase.

Cirrus Logic Inc.: Will Its Expansion into Laptop Markets Bring A Shift In The Competitive Dynamics? – Major Drivers

Cirrus Logic has reported strong financial performance for the second quarter of fiscal year 2025.
The company achieved record revenue and earnings per share, with revenue reaching $541.9 million.
This figure was near the upper end of their guidance range and reflects strong demand for components used in smartphones.

💡 Before it’s here, it’s on Smartkarma

The Smartkarma Preview Pass is your entry to the Independent Investment Research Network

✓ Unlimited Research Summaries
✓ Personalised Alerts
✓ Custom Watchlists
✓ Company Data and News
✓ Events & Webinars

Nov 17

Most Read: Kansai Electric Power, Zomato, Nexchip Semiconductor , SGX Rubber Future TSR20, S.F. Holding, Jiangxi Boya Bio Pharmaceutical, Seven & I Holdings, Yankuang Energy Group, Fuji Soft Inc, NAURA Technology Group and more

By Smartkarma Daily Briefs | Daily Briefs, Most Read

In today’s briefing:

KEPCO (9503 JP): Index Implications of US$3.5bn Primary + Secondary Offering
INDIA: Index Changes Due to the 45 New Additions to the F&O Segment
CES China Semiconductor Chips Index Rebalance Preview: Three Changes in December
Tire Industry: Premium Brands Exit Small-Rim Market Amidst Rising Competition
SF Holding Pre-IPO: Three Important Issues for Long-Term Investors to Consider
China Healthcare Weekly (Nov.17) – TCM VBP New Updates, CR Boya Completes Acquisition of Green Cross
Weekly Deals Digest (17 Nov) – Seven & I, Fuji Soft, Nishimoto, Macromill, CPMC, KEPCO, SF Holding
FXI Rebalance Preview: One Change in December as Shorts Spike
Fuji Soft (9749 JP): KKR Bumps to JPY9,451 as Bain Left High and Dry
China A50 ETFs Rebalance Preview: One Change to Close Out the Year

KEPCO (9503 JP): Index Implications of US$3.5bn Primary + Secondary Offering

Kansai Electric Power (9503 JP) is looking to raise up to US$3.5bn via a primary offering and a sale of Treasury shares. Pricing date is between 26-29 November.
Kansai Electric Power (9503 JP) is among the better performing stocks from the Electric Utilities industry and trades at higher valuations compared to its peers.
There will be a fair bit of passive buying with around 29% of the offering being bought at the time of settlement of the shares.

INDIA: Index Changes Due to the 45 New Additions to the F&O Segment

The National Stock Exchange (NSEIN IN) has announced a list of 45 stocks that will be added to the Futures & Options (F&O) segment of the market from 29 November.
There will be changes to the NIFTY Index, NSE Nifty Next 50 Index, S&P BSE SENSEX Index and the CNXIT Index over the next couple of rebalances.
There are some interesting situations out there, including a change to the universe for the NSE Nifty Next 50 Index (NIFTYJR INDEX) that could lead to more changes.

CES China Semiconductor Chips Index Rebalance Preview: Three Changes in December

There could be three changes for the CES China Semiconductor Chips Index at the close of trading on 13 December.
Based on the assets tracking the index, passive trackers will need to trade between 0.1-0.3x ADV in the stocks.
There will be selling in Semiconductor Manufacturing International Corporation (SMIC) (688981 CH) to cap the stock at 10% of the index weight.

Tire Industry: Premium Brands Exit Small-Rim Market Amidst Rising Competition

By Farah Miller

Premium brands focus on high-value large rims, leaving small-rim markets.
Factory closures signal overcapacity as brands exit small-rim tire production.
New players gain ground in small-rim segments in Europe and North America.

SF Holding Pre-IPO: Three Important Issues for Long-Term Investors to Consider

By Daniel Hellberg

SF Holding’s domestic parcel volumes have grown slower than overall market volumes recently; is this strategic, or simply a loss of share?
SF Holding is not closely aligned with any of the large online retail platforms in China; ultimately, is this independence an advantage or a disadvantage?
When will SF Holdings’ varied international operations — and there are a few of them — begin to pull their own weight, in terms of profitability and growth?

China Healthcare Weekly (Nov.17) – TCM VBP New Updates, CR Boya Completes Acquisition of Green Cross

By Xinyao (Criss) Wang

The new round of national TCM decoction pieces VBP has started. We think the overall price reduction would be relatively mild, and the impact on related TCM enterprises is limited.
The NHSA will vigorously promote the expansion of TCM VBP, which is another challenge for TCM injections. But the impact on exclusive TCM varieties and innovative TCM injections is smaller.
CR Boya has completed the acquisition of 100% equity of Green Cross and has included it in the scope of consolidated financial statements starting from November. Future M&As will continue.

Weekly Deals Digest (17 Nov) – Seven & I, Fuji Soft, Nishimoto, Macromill, CPMC, KEPCO, SF Holding

A weekly summary of key developments across ECM and Event-Driven names tracked by us across Hong Kong, Australia, New Zealand, Singapore, Japan, Indonesia, Malaysia, Thailand, Korea, India and Chinese ADRs.
ECM developments: S.F. Holding (002352 CH) is premarketing an H Share listing to raise US$1.0-1.5 billion, Kansai Electric Power (9503 JP)‘s US$3.5 billion placement.
Event-Driven developments: Seven & I Holdings (3382 JP), Fuji Soft Inc (9749 JP), Nishimoto (9260 JP), Macromill, Inc (3978 JP), Agro Kanesho (4955 JP), Renewable Japan (9522 JP), CPMC.

FXI Rebalance Preview: One Change in December as Shorts Spike

With one trading day left in the review period, we expect one change with China Merchants Securities Co Ltd (H) (6099 HK) replacing Yankuang Energy Group (1171 HK) in December.
Capping will result in selling for Meituan (3690 HK) and buying in Tencent (700 HK) and Alibaba Group Holding (9988 HK).
Short interest has jumped on both stocks, but the increase is far higher in China Merchants Securities Co Ltd (H) (6099 HK) compared to Yankuang Energy Group (1171 HK).

Fuji Soft (9749 JP): KKR Bumps to JPY9,451 as Bain Left High and Dry

KKR & Co (KKR US) has secured the Fuji Soft Inc (9749 JP) Board’s unanimous support by bumping its second tender offer to JPY9,451, a JPY1 premium to Bain’s JPY9,450 offer.
The Board is claiming a “fiduciary duty” win as it has secured a higher offer from KKR but paradoxically signalling that it will not negotiate a bump from Bain.
Bain will likely walk rather than try to win the Board’s support by revising terms. At the last close, the gross spread to KKR’s offer is 3.7%.

China A50 ETFs Rebalance Preview: One Change to Close Out the Year

The December review will use closing prices from 18 November to determine the list of stocks that will be included into and excluded from the ETFs.
As of the close on 15 November, we see NAURA Technology Group (002371 CH) replacing Huaneng Lancang River Hydropow (600025 CH) in the ETFs.
NAURA Technology has doubled in price this year, while Huaneng Lancang has corrected from its highs and could be deleted from the ETF in just one quarter.

💡 Before it’s here, it’s on Smartkarma

The Smartkarma Preview Pass is your entry to the Independent Investment Research Network

✓ Unlimited Research Summaries
✓ Personalised Alerts
✓ Custom Watchlists
✓ Company Analytics and News
✓ Events & Webinars

Nov 17

Daily Brief TMT/Internet: Sea , Fuji Soft Inc, Nec Networks & System Integr, Tencent, NAURA Technology Group, Pony AI, Fabrinet, Hubspot Inc, Lattice Semiconductor, Match Group and more

By Smartkarma Daily Briefs | Daily Briefs, TMT/Internet

In today’s briefing:

Sea Ltd (SE US) – Firing Profitability On All Segments
Fuji Soft (9749 JP): KKR Bumps to JPY9,451 as Bain Left High and Dry
(Mostly) Asia-Pac M&A: Agro Kanesho, Nishimoto, Chita Kogyo, Macromill, Silk Logistics, Avarga, MAHB
[Tencent (700 HK, BUY, TP HK$518) TP Change]: C3Q24 Review: Performance In-Line with Catalysts
China A50 ETFs Rebalance Preview: One Change to Close Out the Year
Pony AI IPO Pricing: The Bottom Of a Range Looks Reasonable After WeRide’s Mixed Debut
Fabrinet – Fabrinet: An Insight Into Its Automotive & Industrial Innovation & Other Major Drivers
HubSpot Inc.: An Insight Into Its Seat-Based Pricing Model Transition & Other Major Drivers
Lattice Semiconductor Corporation: Its Efforts Towards Traction in AI & Data Center Markets Paying Off? – Major Drivers
Match Group Inc.: An Analysis Of Its Product Innovation & Ecosystem Health & Other Major Drivers

Sea Ltd (SE US) – Firing Profitability On All Segments

By Angus Mackintosh

In 3Q2024, Sea Ltd demonstrated its ability to turn a profit at Shopee, whilst booking strong growth, with sales & marketing kept well in check and active users increasing substantially.
E-Commerce registered higher take rates, through higher commissions, more paid advertising, and increasing levels of self-fulfilment through SPX Express, whilst Digital Financial Services saw a rapid acceleration in loan growth.
Digital Entertainment was back on form with strong growth in bookings, active users, ARPU, and adjusted EBITDA. Management remains confident about 4Q2024 and the outlook for 2025.

Fuji Soft (9749 JP): KKR Bumps to JPY9,451 as Bain Left High and Dry

KKR & Co (KKR US) has secured the Fuji Soft Inc (9749 JP) Board’s unanimous support by bumping its second tender offer to JPY9,451, a JPY1 premium to Bain’s JPY9,450 offer.
The Board is claiming a “fiduciary duty” win as it has secured a higher offer from KKR but paradoxically signalling that it will not negotiate a bump from Bain.
Bain will likely walk rather than try to win the Board’s support by revising terms. At the last close, the gross spread to KKR’s offer is 3.7%.

(Mostly) Asia-Pac M&A: Agro Kanesho, Nishimoto, Chita Kogyo, Macromill, Silk Logistics, Avarga, MAHB

I tally 48 – mostly firm, mostly Asia-Pac – transactions currently being discussed and analysed on Smartkarma. Inside is a timetable of upcoming key events for each deal.
Six new deals this week! TOs for Agro Kanesho (4955 JP), Nishimoto (9260 JP), Chita Kogyo (5993 JP), Macromill (3978 JP). Also Silk Logistics (SLH AU) and Avarga (AVARGA SP).
Key updates took place on: Pacific Smiles (PSQ AU), ASMPT (522 HK), Nec Networks & System Integr (1973 JP), Seven & I (3382 JP), and Malaysia Airports Holdings (MAHB MK).

[Tencent (700 HK, BUY, TP HK$518) TP Change]: C3Q24 Review: Performance In-Line with Catalysts

By Ying Pan

Tencent reported C3Q24 revenue, IFRS operating profit, and IFRS net income in-line, in-line, 11% vs. our estimates and in-line, in-line, 18% vs. consensus.
The bright spot is fintech transaction volume grew 10% YoY showing gain in market share, which coupled with rebound in consumption since October should rive recovery.
We raise TP by 2% to HK$518. Tencent is still our TOP PICK in an uncertain geopolitical environment with an upswing fundamental story.

China A50 ETFs Rebalance Preview: One Change to Close Out the Year

The December review will use closing prices from 18 November to determine the list of stocks that will be included into and excluded from the ETFs.
As of the close on 15 November, we see NAURA Technology Group (002371 CH) replacing Huaneng Lancang River Hydropow (600025 CH) in the ETFs.
NAURA Technology has doubled in price this year, while Huaneng Lancang has corrected from its highs and could be deleted from the ETF in just one quarter.

Pony AI IPO Pricing: The Bottom Of a Range Looks Reasonable After WeRide’s Mixed Debut

By Andrei Zakharov

Pony AI, a China’s robotaxi operator and self-driving technology company, plans to raise up to $360M in upcoming IPO and concurrent private placements.
Pony AI is expected to IPO next week. The company’s amended F-1 puts the price range per ADS at $11.00-$13.00, implying a market cap of ~$4.2B at the midpoint.
I believe Pony AI may price its IPO at the bottom of a range after WeRide’s mixed debut. IPO valuation suggests a drop from last round valuation of ~$8.5B.

Fabrinet – Fabrinet: An Insight Into Its Automotive & Industrial Innovation & Other Major Drivers

Fabrinet’s first-quarter results for fiscal year 2025 reveal both promising growth and challenges.
With a revenue of $804 million, the company surpassed the upper end of its guidance range, representing a 17% year-over-year increase and a 7% sequential rise from the previous quarter.
This growth was driven by significant performances in its major operating segments, particularly in optical communications.

HubSpot Inc.: An Insight Into Its Seat-Based Pricing Model Transition & Other Major Drivers

In the most recent financial results, HubSpot, Inc. reported several positives and negatives that are important for investors to consider when evaluating the company’s investment potential.
On the positive side, HubSpot achieved a 20% year-over-year revenue growth in constant currency, demonstrating robust financial performance.
The company’s operating margin grew by over 200 basis points, reaching 19%, showcasing a strong emphasis on operational efficiency.

Lattice Semiconductor Corporation: Its Efforts Towards Traction in AI & Data Center Markets Paying Off? – Major Drivers

Lattice Semiconductor provided a detailed overview of its financial performance and strategic outlook for the third quarter of 2024.
The company’s results were generally in line with internal expectations, marking distinct progress in specific segments despite facing notable industry-wide headwinds.
Revenue for the quarter was reported at $127.1 million, maintaining alignment with previously provided guidance.

Match Group Inc.: An Analysis Of Its Product Innovation & Ecosystem Health & Other Major Drivers

Match Group, a leading company in the online dating industry, has presented mixed results in their third-quarter financial performance for 2024.
The results reflect both opportunities and challenges across different brands within the company’s portfolio, particularly in flagship products such as Tinder and Hinge.On the positive side, Match Group continues to see strong momentum with Hinge, which has delivered impressive user growth and revenue achievements.
Hinge reported a 36% year-over-year increase in direct revenue, supported by a 21% rise in users willing to pay for the app, and a 12% increase in Revenue Per Payer (RPP).

💡 Before it’s here, it’s on Smartkarma

The Smartkarma Preview Pass is your entry to the Independent Investment Research Network

✓ Unlimited Research Summaries
✓ Personalised Alerts
✓ Custom Watchlists
✓ Company Data and News
✓ Events & Webinars

Nov 17

Daily Brief Energy/Materials: Yankuang Energy Group, Chemours Co/The, Cleveland-Cliffs Inc , Energy Transfer LP, Permian Resources , Western Midstream Partners LP and more

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

In today’s briefing:

FXI Rebalance Preview: One Change in December as Shorts Spike
The Chemours Company: Its’ Strategic Portfolio Overhaul Maximizing Returns in High-Growth Markets! – Major Drivers
Cleveland-Cliffs Inc.: Can The Stelco Acquisition Be A Game Changer? – Major Drivers
Energy Transfer LP: Can Its Expansion of Infrastructure & Capacity Be A Potential Game Changer? – Major Drivers
Permian Resources: These Are The 4 Biggest Challenges In Its Path In 2025 & Beyond! – Major Drivers
Western Midstream Partners: Capital Allocation & Leverage Management As A Vital Factor Driving Growth! – Major Drivers

FXI Rebalance Preview: One Change in December as Shorts Spike

With one trading day left in the review period, we expect one change with China Merchants Securities Co Ltd (H) (6099 HK) replacing Yankuang Energy Group (1171 HK) in December.
Capping will result in selling for Meituan (3690 HK) and buying in Tencent (700 HK) and Alibaba Group Holding (9988 HK).
Short interest has jumped on both stocks, but the increase is far higher in China Merchants Securities Co Ltd (H) (6099 HK) compared to Yankuang Energy Group (1171 HK).

The Chemours Company: Its’ Strategic Portfolio Overhaul Maximizing Returns in High-Growth Markets! – Major Drivers

The Chemours Company’s third-quarter 2024 results present a mixed picture, reflecting both commendable strategic implementation and ongoing market challenges.
The quarter witnessed a 1% increase in consolidated net sales to approximately $1.5 billion, driven by a 5% rise in volume, though partially offset by a 3% decline in pricing and a slight currency headwind.
This reflects the company’s effective operational execution and successful navigation through previous disruptions, evidenced by year-over-year volume growth across all business segments.

Cleveland-Cliffs Inc.: Can The Stelco Acquisition Be A Game Changer? – Major Drivers

Cleveland-Cliffs presented its third-quarter 2024 results during a challenging period of weaker steel demand and pricing, largely attributed to reduced automotive production and high interest rates affecting consumer decisions.
The company’s acquisition of Stelco, a Canadian steelmaker, was a notable development during this period, promising operational agility and cost efficiency.Cleveland-Cliffs reported a quarterly adjusted EBITDA of $124 million on 3.8 million tons of shipments.
This was a decline from previous performance levels, which the company attributed to reduced activity in the automotive industry.

Energy Transfer LP: Can Its Expansion of Infrastructure & Capacity Be A Potential Game Changer? – Major Drivers

Energy Transfer’s third quarter of 2024 results reveal several positive developments alongside some challenges, reflecting a complex operating environment.
Financially, Energy Transfer generated an adjusted EBITDA of $3.96 billion compared to $3.54 billion in the same quarter of the previous year, indicating growth driven by record volumes across its pipelines and strong performance in crude and NGL exports.
Despite the improved EBITDA, distributable cash flow attributable to partners remained flat at $1.99 billion year-over-year.

Permian Resources: These Are The 4 Biggest Challenges In Its Path In 2025 & Beyond! – Major Drivers

Permian Resources delivered a robust performance in the third quarter of 2024, characterized by significant production gains and operational efficiencies.
The company increased its full-year oil production guidance for the third time this year, highlighting a rise in daily production by 11,000 barrels over the initial forecast set in February.
A substantial part of this increase is attributed to the outperformance of its core operations, coupled with effective execution in mergers and acquisitions, notably the successful integration of the Barilla Draw acquisition.

Western Midstream Partners: Capital Allocation & Leverage Management As A Vital Factor Driving Growth! – Major Drivers

Western Midstream Partners’ third quarter of 2024 report presents a mixed bag of operational achievements and financial challenges.
Under the new leadership of Oscar Brown, the company continues to pursue its strategic goals while navigating through a complex market environment.
On the operational front, Western Midstream Partners reported a commendable quarter characterized by strong customer service and maintaining over 98% operability despite increased plant turnaround activities.

💡 Before it’s here, it’s on Smartkarma

The Smartkarma Preview Pass is your entry to the Independent Investment Research Network

✓ Unlimited Research Summaries
✓ Personalised Alerts
✓ Custom Watchlists
✓ Company Data and News
✓ Events & Webinars

Nov 17

Daily Brief Industrials: S.F. Holding, GXO Logistics, Howmet Aerospace , Trimas Corp and more

By Smartkarma Daily Briefs | Daily Briefs, Industrials

In today’s briefing:

SF Holding Pre-IPO: Three Important Issues for Long-Term Investors to Consider
GXO Logistics Inc.: Expanding E-Fulfillment Capabilities to Set New Standards! – Major Drivers
Howmet Aerospace Inc.: Capitalizing on Explosive Commercial Aerospace Growth for 2025! – Major Drivers
TriMas Corporation: Strategic Divestitures & Acquisitions As A Key Growth Catalyst! – Major Drivers

SF Holding Pre-IPO: Three Important Issues for Long-Term Investors to Consider

By Daniel Hellberg

SF Holding’s domestic parcel volumes have grown slower than overall market volumes recently; is this strategic, or simply a loss of share?
SF Holding is not closely aligned with any of the large online retail platforms in China; ultimately, is this independence an advantage or a disadvantage?
When will SF Holdings’ varied international operations — and there are a few of them — begin to pull their own weight, in terms of profitability and growth?

GXO Logistics Inc.: Expanding E-Fulfillment Capabilities to Set New Standards! – Major Drivers

GXO Logistics’ latest earnings for the third quarter of 2024 painted a mixed yet informative picture of its financial performance and strategic positioning.
The company reported record revenues of $3.2 billion, marking a substantial year-over-year increase of 28%.
This robust top-line growth is partially attributed to an organic revenue growth of 3%, which has shown a sequential upward trend throughout the fiscal year.

Howmet Aerospace Inc.: Capitalizing on Explosive Commercial Aerospace Growth for 2025! – Major Drivers

Howmet Aerospace’s third quarter 2024 results demonstrate significant performance gains amidst a complex operating environment.
The company’s revenue growth was substantial at 11% year-over-year, with commercial aerospace driving much of this improvement with a 17% increase in revenue.
The engine products and fasteners segments excelled, supported by robust structures performance.

TriMas Corporation: Strategic Divestitures & Acquisitions As A Key Growth Catalyst! – Major Drivers

TriMas Corporation reported its third-quarter 2024 results, highlighting both positive trends and challenges across its business segments.
The company operates three key segments: TriMas Packaging, TriMas Aerospace, and Specialty Products, which together offer a diversified portfolio designed to leverage opportunities across different markets.In the TriMas Packaging segment, the company achieved a notable 12% increase in net sales compared to the same quarter last year.
This growth was primarily driven by high demand in the beauty, personal care, and home care markets, where organic sales increased over 20%.

💡 Before it’s here, it’s on Smartkarma

The Smartkarma Preview Pass is your entry to the Independent Investment Research Network

✓ Unlimited Research Summaries
✓ Personalised Alerts
✓ Custom Watchlists
✓ Company Data and News
✓ Events & Webinars

Nov 17

Daily Brief Financials: China International Capital Corporation and more

By Smartkarma Daily Briefs | Daily Briefs, Financials

In today’s briefing:

A/H Premium Tracker (To 15 Nov 2024): AH Premia Rise Sharply; Hs Shellacked Vs As In Most Sectors

A/H Premium Tracker (To 15 Nov 2024): AH Premia Rise Sharply; Hs Shellacked Vs As In Most Sectors

By Travis Lundy

Huge volumes continue to be traded on the mainland share markets. SOUTHBOUND volumes bounced, and net buying was both large and broad-based.
Stocks in HK and mainland markets fell heavily with HK’s main indices down 6-7% and China’s blue chip indices down 3.3-3.6% (CSI 500 – 4.8%).
Within H/A Pairs, after outperforming the HK/mainland spread for weeks, spreads got shellacked. Worst week in a long time (-3.7%), perhaps on the back of “disappointing” lack of stimulus measures.

💡 Before it’s here, it’s on Smartkarma

The Smartkarma Preview Pass is your entry to the Independent Investment Research Network

✓ Unlimited Research Summaries
✓ Personalised Alerts
✓ Custom Watchlists
✓ Company Data and News
✓ Events & Webinars

Nov 17

Daily Brief Health Care: Jiangxi Boya Bio Pharmaceutical, Asahi Intecc, Glaukos Corp, Jazz Pharmaceuticals, Gilead Sciences, Mckesson Corp, Novo Nordisk A/S, Royalty Pharma and more

By Smartkarma Daily Briefs | Daily Briefs, Healthcare

In today’s briefing:

China Healthcare Weekly (Nov.17) – TCM VBP New Updates, CR Boya Completes Acquisition of Green Cross
2024 High Conviction Update: Asahi Intecc (7747 JP)- Medical Division Drives Q1 Result
Glaukos Corporation: Advancement of iDose TR & Market Penetration As A Pivotal Growth Lever! – Major Drivers
Jazz Pharmaceuticals Plc: Its Efforts Towards Zepzelca Frontline Therapy Expansion & Other Major Drivers
How Gilead Sciences’ HIV & Other Innovations Are Set to Capture Untapped Markets & Drive Massive Growth! – Major Drivers
McKesson Corporation: Will Its Cost Optimization & Operational Efficiencies Help Alter The Playing Field? – Major Drivers
Novo Nordisk: Global Adoption & Expansion of GLP-1 Therapeutics Driving Our Bullishness! – Major Drivers
Royalty Pharma Plc: Revolutionizing Biopharma with Synthetic Royalty Funding Innovations! – Major Drivers

China Healthcare Weekly (Nov.17) – TCM VBP New Updates, CR Boya Completes Acquisition of Green Cross

By Xinyao (Criss) Wang

The new round of national TCM decoction pieces VBP has started. We think the overall price reduction would be relatively mild, and the impact on related TCM enterprises is limited.
The NHSA will vigorously promote the expansion of TCM VBP, which is another challenge for TCM injections. But the impact on exclusive TCM varieties and innovative TCM injections is smaller.
CR Boya has completed the acquisition of 100% equity of Green Cross and has included it in the scope of consolidated financial statements starting from November. Future M&As will continue.

2024 High Conviction Update: Asahi Intecc (7747 JP)- Medical Division Drives Q1 Result

By Tina Banerjee

Asahi Intecc (7747 JP) recorded 9% YoY revenue growth to ¥31B in Q1FY25. Revenue growth is attributable to the continued strong trajectory of medical division, which reported 10% YoY growth.
Strong rebound in China is key highlight for medical division performance. Revenue from China increased by a whopping 36% YoY and 44% QoQ to a record high of ¥9.3B.
Despite a better-than-expected Q1FY25, the company maintains full-year FY25 guidance, due to external factors such as currency movements as well as uncertainties in trends for net sales, productivity, and expenditure.

Glaukos Corporation: Advancement of iDose TR & Market Penetration As A Pivotal Growth Lever! – Major Drivers

Glaukos Corporation’s third quarter 2024 financial results highlighted a period of notable growth driven by strategic product developments and an expanding market presence.
The company achieved record consolidated net sales of $96.7 million, representing a 24% increase from the previous year.
This performance prompted Glaukos to revise its full-year 2024 net sales guidance upwards to $377 million to $379 million, reflecting optimism about continued growth.

Jazz Pharmaceuticals Plc: Its Efforts Towards Zepzelca Frontline Therapy Expansion & Other Major Drivers

Jazz Pharmaceuticals recently reported its third quarter 2024 financial results, reflecting a period of noteworthy commercial growth and strategic progression, particularly in its neuroscience and oncology business units.
The company recorded a total revenue exceeding $1.05 billion, a 9% increase compared to the same quarter in 2023.
This growth was primarily fueled by the continued strong performance of Xywav and Epidiolex in the neuroscience segment, with both products achieving record quarterly sales and double-digit year-over-year growth.

How Gilead Sciences’ HIV & Other Innovations Are Set to Capture Untapped Markets & Drive Massive Growth! – Major Drivers

Gilead Sciences, Inc. reported a strong financial performance for the third quarter of 2024, showcasing robust growth across its main therapeutic areas, including HIV, oncology, and liver disease.
This growth has allowed Gilead to increase its full-year guidance for key financial metrics such as revenue, operating income, and earnings per share, underscoring its effective commercial and operational execution.
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.

McKesson Corporation: Will Its Cost Optimization & Operational Efficiencies Help Alter The Playing Field? – Major Drivers

McKesson Corporation’s second quarter fiscal 2025 results present a multidimensional view of the company’s current financial standing and future prospects.
With reported record revenues of $93.7 billion, McKesson demonstrated a robust 21% year-over-year increase, driven significantly by the U.S. Pharmaceutical segment.
This sector alone witnessed a 23% revenue boost, underscored by the onboarding of a new strategic partner and broadened specialty product distribution.

Novo Nordisk: Global Adoption & Expansion of GLP-1 Therapeutics Driving Our Bullishness! – Major Drivers

Novo Nordisk recently presented its third-quarter financial results, showcasing significant growth and strategic developments within the company.
The key highlights from the call indicate robust expansion across various segments, particularly driven by the strong performance of its diabetes and obesity treatments, including notable products like Ozempic and Wegovy.
The company reported an impressive 24% increase in sales alongside a 22% rise in operating profit for the first nine months of the fiscal year.

Royalty Pharma Plc: Revolutionizing Biopharma with Synthetic Royalty Funding Innovations! – Major Drivers

Royalty Pharma, a leading investor in biopharmaceutical royalties, recently reported its third-quarter 2024 results.
The company highlighted strong business momentum, driven by its diverse portfolio of more than 35 commercial products.
Financially, Royalty Pharma achieved a 15% growth in both Portfolio Receipts and Royalty Receipts.

💡 Before it’s here, it’s on Smartkarma

The Smartkarma Preview Pass is your entry to the Independent Investment Research Network

✓ Unlimited Research Summaries
✓ Personalised Alerts
✓ Custom Watchlists
✓ Company Data and News
✓ Events & Webinars

Nov 17

Daily Brief Industrials: S.F. Holding, GXO Logistics, Howmet Aerospace , Trimas Corp and more

By Smartkarma Daily Briefs | Daily Briefs, Industrials

In today’s briefing:

SF Holding Pre-IPO: Three Important Issues for Long-Term Investors to Consider
GXO Logistics Inc.: Expanding E-Fulfillment Capabilities to Set New Standards! – Major Drivers
Howmet Aerospace Inc.: Capitalizing on Explosive Commercial Aerospace Growth for 2025! – Major Drivers
TriMas Corporation: Strategic Divestitures & Acquisitions As A Key Growth Catalyst! – Major Drivers

SF Holding Pre-IPO: Three Important Issues for Long-Term Investors to Consider

By Daniel Hellberg

SF Holding’s domestic parcel volumes have grown slower than overall market volumes recently; is this strategic, or simply a loss of share?
SF Holding is not closely aligned with any of the large online retail platforms in China; ultimately, is this independence an advantage or a disadvantage?
When will SF Holdings’ varied international operations — and there are a few of them — begin to pull their own weight, in terms of profitability and growth?

GXO Logistics Inc.: Expanding E-Fulfillment Capabilities to Set New Standards! – Major Drivers

GXO Logistics’ latest earnings for the third quarter of 2024 painted a mixed yet informative picture of its financial performance and strategic positioning.
The company reported record revenues of $3.2 billion, marking a substantial year-over-year increase of 28%.
This robust top-line growth is partially attributed to an organic revenue growth of 3%, which has shown a sequential upward trend throughout the fiscal year.

Howmet Aerospace Inc.: Capitalizing on Explosive Commercial Aerospace Growth for 2025! – Major Drivers

Howmet Aerospace’s third quarter 2024 results demonstrate significant performance gains amidst a complex operating environment.
The company’s revenue growth was substantial at 11% year-over-year, with commercial aerospace driving much of this improvement with a 17% increase in revenue.
The engine products and fasteners segments excelled, supported by robust structures performance.

TriMas Corporation: Strategic Divestitures & Acquisitions As A Key Growth Catalyst! – Major Drivers

TriMas Corporation reported its third-quarter 2024 results, highlighting both positive trends and challenges across its business segments.
The company operates three key segments: TriMas Packaging, TriMas Aerospace, and Specialty Products, which together offer a diversified portfolio designed to leverage opportunities across different markets.In the TriMas Packaging segment, the company achieved a notable 12% increase in net sales compared to the same quarter last year.
This growth was primarily driven by high demand in the beauty, personal care, and home care markets, where organic sales increased over 20%.

💡 Before it’s here, it’s on Smartkarma

The Smartkarma Preview Pass is your entry to the Independent Investment Research Network

✓ Unlimited Research Summaries
✓ Personalised Alerts
✓ Custom Watchlists
✓ Company Data and News
✓ Events & Webinars

Nov 17

Daily Brief Consumer: Alibaba Group Holding , Seven & I Holdings, Toyota Motor Corp Spon Adr, Johnson Controls, MercadoLibre , Performance Food Group Co, Wynn Resorts, Cvs Health Corp, Duolingo and more

By Smartkarma Daily Briefs | Consumer, Daily Briefs

In today’s briefing:

HK Connect SOUTHBOUND Flows (To 15 Nov 2024); Tech Bought, High-Div SOEs Sold or Ignored, Again
Weekly Deals Digest (17 Nov) – Seven & I, Fuji Soft, Nishimoto, Macromill, CPMC, KEPCO, SF Holding
Last Week in Event SPACE: Seven & I, PA Gooddoctor, Nec Networks, Genscript/Legend, ASM PT, Hanwha
Toyota Motor Corporation: Their Adaptation & Strategy in the Chinese Market Driving Our ‘Buy’ Rating! – Major Drivers
Johnson Controls: These Are The 7 Biggest Factors Impacting Its Performance In 2025 &Beyond! – Major Drivers
MercadoLibre Inc.: How Are They Successfully Tackling Supply Chain and Fulfillment Challenges? – Major Drivers
Performance Food Group Company: Will Its Enhanced Focus on Digital Ordering Tools Pay Off? – Major Drivers
How Wynn Resorts is Revolutionizing Global Gaming with Strategic Expansion Projects! – Major Drivers
CVS Health Corporation: Expansion & Optimization of Health Services As A Critical Factor Driving Growth! – Major Drivers
Duolingo Inc.: Leveraging AI & User Engagement For A Competitive Edge! – Major Drivers

HK Connect SOUTHBOUND Flows (To 15 Nov 2024); Tech Bought, High-Div SOEs Sold or Ignored, Again

By Travis Lundy

SOUTHBOUND gross trading activity still high. Net buying very strong. 7 names traded more than US$1bn. Last week I said tech would continue to be bought. It was.
The trend continues to net sales of ETFs and high div SOEs. Net buying is very, very broad-based. Tracker Fund of Hong Kong (2800 HK) is batted around like crazy.
I expect HK-listed tech to continue getting bought. Alibaba, Tencent, Xiaomi, etc are safe havens against Trump tariffs as they don’t compete in the US.

Weekly Deals Digest (17 Nov) – Seven & I, Fuji Soft, Nishimoto, Macromill, CPMC, KEPCO, SF Holding

A weekly summary of key developments across ECM and Event-Driven names tracked by us across Hong Kong, Australia, New Zealand, Singapore, Japan, Indonesia, Malaysia, Thailand, Korea, India and Chinese ADRs.
ECM developments: S.F. Holding (002352 CH) is premarketing an H Share listing to raise US$1.0-1.5 billion, Kansai Electric Power (9503 JP)‘s US$3.5 billion placement.
Event-Driven developments: Seven & I Holdings (3382 JP), Fuji Soft Inc (9749 JP), Nishimoto (9260 JP), Macromill, Inc (3978 JP), Agro Kanesho (4955 JP), Renewable Japan (9522 JP), CPMC.

Last Week in Event SPACE: Seven & I, PA Gooddoctor, Nec Networks, Genscript/Legend, ASM PT, Hanwha

There are people who’ll take profit in Seven & I (3382 JP) because of path dependency til year-end. It will drag out a while: buy the dips, trim on pops.
Just like in Lufax Holding (6623 HK)‘s special dividend, expect Ping An to boost its holding in Ping An Healthcare and Technology (1833 HK) via the stealthy scrip dividend option.
The landscape for Nec Networks & System Integr (1973 JP) has FULLY changed. The details now matter quite a bit. NEC has two basic choices. Neither are that palatable.

Toyota Motor Corporation: Their Adaptation & Strategy in the Chinese Market Driving Our ‘Buy’ Rating! – Major Drivers

Toyota Motor Corporation has announced its fiscal year 2025 second-quarter financial results.
The company achieved an operating income of JPY 2.4642 trillion for the first half of the fiscal year, which was maintained close to the previous year despite some setbacks in production and increases in expenses.
While sales revenue touched JPY 23.2824 trillion, the net income of JPY 1.9071 trillion saw a significant decrease from the prior year, primarily due to exchange rate fluctuations which caused valuation losses in foreign currency assets.

Johnson Controls: These Are The 7 Biggest Factors Impacting Its Performance In 2025 &Beyond! – Major Drivers

The Johnson Controls International plc (JCI) fourth-quarter fiscal 2024 earnings revealed significant insights into the company’s performance and strategic direction.
Here is an analysis considering both the positive and negative aspects.
The positive highlights include strong financial performance and strategic advancements.

MercadoLibre Inc.: How Are They Successfully Tackling Supply Chain and Fulfillment Challenges? – Major Drivers

MercadoLibre reported robust financial results for the third quarter of 2024, showcasing strong performance across its e-commerce and fintech sectors in Latin America.
The company’s gross merchandise volume (GMV) saw significant growth, with Brazil witnessing a 34% increase year-on-year and Mexico a 27% rise.
Moreover, the company made substantial gains in market share in these key countries.

Performance Food Group Company: Will Its Enhanced Focus on Digital Ordering Tools Pay Off? – Major Drivers

Performance Food Group’s (PFG) recent earnings conference call revealed several key developments and financial results for the first quarter of the fiscal year 2025.
The call focused on strategic acquisitions, financial performance, and market conditions affecting the company.In terms of acquisitions, PFG completed two significant deals: purchasing Jose Santiago, a leading foodservice distributor in Puerto Rico, and Cheney Brothers, a major player in the Southeast U.S. foodservice market.
The integration of Jose Santiago has been smooth, with the company already positively contributing to PFG’s results.

How Wynn Resorts is Revolutionizing Global Gaming with Strategic Expansion Projects! – Major Drivers

In the recent results, Wynn Resorts reported mixed performance across its key markets during the third quarter of 2024.
In Las Vegas, the company faced challenging comparisons from the previous year but managed to increase normalized revenue by 1%.
The gaming segment, however, saw a dip in table drop, which the management attributed to high-end consumer segment volatility rather than any structural issues.

CVS Health Corporation: Expansion & Optimization of Health Services As A Critical Factor Driving Growth! – Major Drivers

CVS Health’s recent third-quarter 2024 earnings report presents a multifaceted view of the company’s performance and strategic direction.
The company’s revenue reached approximately $95.4 billion, marking a 6% increase from the previous year.
However, the adjusted earnings per share (EPS) of $1.09 indicate challenges, particularly within the Health Care Benefits (HCB) segment.

Duolingo Inc.: Leveraging AI & User Engagement For A Competitive Edge! – Major Drivers