Category

Daily Briefs

Aug 15
0

Daily Brief Crypto: No Pain and more

By | Crypto, Daily Briefs

In today’s briefing:

  • No Pain, No Gain

No Pain, No Gain

By Delphi Digital

  • Survive the purge, seize the opportunity: Last week’s extreme market volatility presents exceptional forward-looking opportunities for those who remain resilient.
  • Liquidation waves: A path to equilibrium: Learn how major market disturbances like last week’s can create ripples that take time to settle, offering strategic consolidation points.
  • Unlocks and ETF flows: What’s next for crypto? Discover how upcoming token unlocks and recent ETF trends may shape the near-term outlook for key crypto assets.

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Aug 15
0

Daily Brief Equity Bottom-Up: The Beat Ideas- Authum 2.0: A New Era in Financial Services! and more

By | Daily Briefs, Equity Bottom-Up

In today’s briefing:

  • The Beat Ideas- Authum 2.0: A New Era in Financial Services!
  • Tencent (700 HK): 2Q24, Gross Margins of All Business Lines Improved Significantly
  • Appier (4180) | The Hidden Gem in AI Marketing
  • HD Hyundai: Updated NAV Analysis
  • Floor & Decor Holdings Inc.: A Bear’s Perspective! – Major Drivers
  • Tencent 2Q: Recent Launch of DnF Mobile Helps Domestic Gaming Return to Growth
  • TSMC (2330-TT): Revisiting Previous Bullish Themes Following Outperformance
  • Shift Up: 2Q 2024 Results Analysis
  • [Earnings Review] Occidental Beats Q2 Estimates with Boosted Output and Stronger Realisations
  • Fu Shou Yuan (1448.HK) – Negative Growth in 24H1 Seems Inevitable

The Beat Ideas- Authum 2.0: A New Era in Financial Services!

By Sudarshan Bhandari

  • Transformation of the company from Equity investment driven to Equity and stress business. 
  • Complete restructuring of Reliance Capital and Reliance Home Finance into Authum and Focus on ARC and stressed assets.
  • Recoveries in completely provided portfolios of Reliance Capital, Planned debt fundraise for further growth.

Tencent (700 HK): 2Q24, Gross Margins of All Business Lines Improved Significantly

By Ming Lu

  • Total revenue increased by 8% YoY in 2Q24, lightly higher than 1Q24 and 4Q23.
  • The gross margins of all business lines Improved significantly YoY.
  • We set the upside at 35% and the price target at HK$506 for the end of 2025. Buy.

Appier (4180) | The Hidden Gem in AI Marketing

By Mark Chadwick

  • Appier achieved 32% YoY sales growth in Q2, driven by strong US market performance and balanced revenue from both new and existing customers.
  • The company’s EBITDA margin improved to 13%, reflecting strong operating leverage despite ongoing investments in growth initiatives.
  • Trading at a 2.9x EV/FY25 revenue multiple, Appier is undervalued relative to peers, with significant upside potential from sustained growth and strategic initiatives.

HD Hyundai: Updated NAV Analysis

By Douglas Kim

  • According to our NAV analysis, it suggests a base case valuation of 122,473 won per share for HD Hyundai, representing a 50% upside from current levels.
  • The combined value of HD Korea Shipbuilding & Offshore Engineering, HD Hyundai Electric & Energy, and HD Hyundai Marine Solution is 11.4 trillion won.
  • We estimate HD Hyundai’s 73.85% stake in Hyundai Oilbank to be 7.0 trillion won. We also applied a 5x OP of its core business and a 50% holdco discount.

Floor & Decor Holdings Inc.: A Bear’s Perspective! – Major Drivers

By Baptista Research

  • Floor & Decor Holdings, Inc. navigated the fiscal second quarter of 2024 with outcomes that reflected the broader economic challenges impacting the retail and real estate sectors.
  • In the quarter under review, the company reported a dip in both total sales and comparable store sales which fell slightly short of expectations.
  • This mirrored the continuing pressures from taut monetary policies adversely affecting housing market activities and discretionary spending on major projects.

Tencent 2Q: Recent Launch of DnF Mobile Helps Domestic Gaming Return to Growth

By Shifara Samsudeen, ACMA, CGMA

  • Tencent (700 HK) reported 2Q2024 results today which beat consensus. Domestic gaming resumed growth driven by the successful launch of DnF Mobile which continues to dominate charts in China.
  • All three business segments saw improvement in margins driven by Tencent’s high-margin businesses incl. mini-programs, video accounts, short-videos, etc.
  • We expect continued recovery in Tencent’s earnings, however, remain cautious given slowdown in consumption spending and macroeconomic uncertainties.

TSMC (2330-TT): Revisiting Previous Bullish Themes Following Outperformance

By Wium Malan, CFA

  • Taiwan Semiconductor (TSMC) (2330 TT) has significantly outperformed this year, driven by a global AI-driven tailwind resulting in substantial revenue growth acceleration and a significant earnings upgrade cycle.
  • Record levels of FCF generation have supported dividend increases, and whilst future DPS expectations seem conservative, the current dividend yield suggests future increases have been priced in.
  • TSMC trades just above its 5-year historic average trading levels and at a premium to its key competitors, other smaller listed foundries, its main customers, and large suppliers.

Shift Up: 2Q 2024 Results Analysis

By Douglas Kim

  • On 14 August, Shift Up (462870 KS) reported its 2Q 2024 results, which was the first earnings report post its IPO. 
  • Shift Up reported sales of 65.2 billion won (up 65.4% YoY and 19.5% below consensus) and OP of 45.1 billion won (up 49% YoY and 21.4% below consensus) in 2Q24. 
  • The company is preparing for a PC release of Stellar Blade in the near future to continue its strong popularity and it expects better results on PC than on console.

[Earnings Review] Occidental Beats Q2 Estimates with Boosted Output and Stronger Realisations

By Suhas Reddy

  • Occidental’s Q2 revenue grew 1.7% YoY but missed estimates by 1.7%. Net profit surged by 34.9% YoY and beat estimates by 32.5%.
  • Total production rose by 3.3% YoY led by robust growth in the Permian and Gulf of Mexico. Production touched its highest in four years.
  • Average crude oil realisations rose 8.6% YoY, and natural gas increased by 11.3%, while domestic gas realisations fell sharply by 60.3% YoY.

Fu Shou Yuan (1448.HK) – Negative Growth in 24H1 Seems Inevitable

By Xinyao (Criss) Wang

  • According to the management, the performance of 24H1 should be better than that of 21H1, but Fu Shou Yuan’s performance in 2024 full year may still fall short of expectations.
  • In the future, the development strategy of Fu Shou Yuan would rely more on endogenous growth. Without aggressive M&A, long-term revenue growth rate could fall to single digit.
  • Special dividends will continue in the future. However, one major risk for Fu Shou Yuan is policy risk. The bottom line is the demand for the funeral industry always exists.

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Aug 15
0

Daily Brief Macro: Modern Monetary Theory (MMT) Revisited and more

By | Daily Briefs, Macro

In today’s briefing:

  • Modern Monetary Theory (MMT) Revisited
  • CX Daily: Chinese Shippers’ Diverging Fortunes
  • Indonesia Economics: Even with Headline Stability, Watch for More Policy Uncertainty
  • [IO Weekly 2024/32] Chinese Economic Sentiment Sours, Driving Iron Ore Lower; Option Activity Surges
  • Fundamental Changes Reflected from Recent Market Turbulence
  • Taiwan: Rates to Buck Global Loosening as Growth Stays Robust and Inflation Too High
  • UK Services CPI Realigns With Trend
  • New Zealand Policy Rate 5.25% (consensus 5.5%) in Aug-24

Modern Monetary Theory (MMT) Revisited

By Alex Ng

  • The inflationary implications of Modern Monetary theory have finally been exposed in the aftermath of the COVID-19 pandemic after 2022
  • The risks of inflation were underplayed due to prolonged disinflationary impulses stemming from decades of globalisation. Recent US practice of MMT could force the Fed to raise its inflation target.
  • Japan pursued an MMT framework since 2013, but the continuation of quantitative easing and arrival of rising inflation is undermining the yen. The Eurozone faces the same predicament as Japan.

CX Daily: Chinese Shippers’ Diverging Fortunes

By Caixin Global

  • Shipping / In Depth: Chinese shippers’ diverging fortunes 

  • Macao / Macao takes aim at currency exchange services for gamblers

  • Personnel / Securities watchdog official named head of Shenzhen Exchange

Indonesia Economics: Even with Headline Stability, Watch for More Policy Uncertainty

By Manu Bhaskaran

  • Indonesia’s 2Q24 GDP continues the pattern of recent years of remarkably stable growth, but other data paint a more mixed picture when it comes to underlying demand.
  • Changes in demand conditions may tilt the growth-inflation tradeoffs in favour of earlier rate cuts by Bank Indonesia, but pressures on the rupiah may limit its scope for action.
  • Recent signs of mixed messaging and flip-flops in areas of fiscal policy, trade policy, and the new capital are signs that decision-making is being compromised by politicking

[IO Weekly 2024/32] Chinese Economic Sentiment Sours, Driving Iron Ore Lower; Option Activity Surges

By Pranay Yadav

  • Iron Ore Price Decline: Iron ore prices dropped 1.7% in Week 32, driven by reduced steel output and fading demand. Stimulus-driven rally failed to sustain.
  • Options Market Trends: Weekly options volume surged, with put volume increasing 106%, pushing the put/call ratio to 1.33, indicating bearish sentiment.
  • Implied Volatility Shifts: Implied volatility (IV) surged midweek, particularly for September contracts, reflecting increased market uncertainty; options skew narrowed to just 0.3% suggesting more expensive calls.

Fundamental Changes Reflected from Recent Market Turbulence

By Alex Ng

  • The recent market turbulence is partially due to a reduction in risky positions. The US economy is also slowing, while Eurozone data shows the recovery is not gaining momentum.
  • China data points to a H2 slowdown.  This will be a bumpier environment in H2 2024.
  • We see scope for a further correction of the S&P500 to 5000, with USDJPY down to 140.  Fed easing likely starts in September, supporting U.S. equities at lower levels. 

Taiwan: Rates to Buck Global Loosening as Growth Stays Robust and Inflation Too High

By Prasenjit K. Basu

  • We expect a 12.5bp hike in the policy rate in Sep’24, as CPI inflation (2.52%YoY in Jul’24) remains well above the 2% target amid CBC concerns about overheated property markets. 
  • Real GDP grew 5.1%YoY in Q2CY24, following 6.6%YoY growth in Q1 (both faster than mainland China). Exports grew 10%YoY in Jan-Jul’24, and export orders growth is at a 2-year high.
  • The market’s trailing P/E ratio (23.56x) is well above its 20-year mean (19.84x). But we recommend a mild Overweight in Taiwan equities, with a focus on the largest tech stocks. 

UK Services CPI Realigns With Trend

By Phil Rush

  • UK inflation increased in July on household energy utility price base effects, but unusual downside news in services prices limited the move to 2.2% and 3.6% on the CPI and RPI.
  • The BoE erroneously extrapolated recent services strength, so a return to the downward trend would widen the gap in the coming months, but its predictive power is poor.
  • Slowing trends can aid the MPC to cut again in November but further headline rises and excessive wage pressures should encourage at least a longer pause afterwards.

New Zealand Policy Rate 5.25% (consensus 5.5%) in Aug-24

By Heteronomics AI

  • The RBNZ unexpectedly reduced the OCR by 25 basis points to 5.25%, citing weakening domestic economic activity and a decline in inflationary pressures, contrasting with the economic consensus of no change.
  • The decision reflects a balance between maintaining restrictive monetary policy to ensure inflation remains anchored and responding to broader global trends of easing inflation and subdued economic growth.
  • Future interest rate decisions will be influenced by the pace at which domestic inflation pressures dissipate, the stability of inflation expectations, and the evolving global economic conditions.
This content is sourced through publicly available sources and has been machine generated. Information displayed is for general informational purposes only.

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Aug 15
0

Daily Brief Thailand: Thanachart Capital and more

By | Daily Briefs, Thailand

In today’s briefing:

  • SET50 Index Rebalance Preview: Four Changes & A Few Close Names

SET50 Index Rebalance Preview: Four Changes & A Few Close Names

By Brian Freitas

  • Couple of weeks from the start of the review period for the December rebalance of SET 50 Index, we see four potential index changes.
  • There are a few stocks that are close to the inclusion zone and there could be a reordering among the non-constituents as stock prices move around.
  • The potential adds have outperformed the potential deletes since the start of the year with most of the outperformance coming over the last 6 weeks.

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Aug 15
0

Daily Brief South Korea: BusinessOn Communication, HD Hyundai , Shift Up, Samvardhana Motherson Automotive Systems Group BV and more

By | Daily Briefs, South Korea

In today’s briefing:

  • BusinessOn Communication (138580 KS): SkyLake’s Delisting Offer
  • HD Hyundai: Updated NAV Analysis
  • Shift Up: 2Q 2024 Results Analysis
  • Morning Views Asia: Samvardhana Motherson International Ltd, SK Hynix, Vedanta Resources

BusinessOn Communication (138580 KS): SkyLake’s Delisting Offer

By David Blennerhassett

  • On the 25th July, SkyLake Equity Partners acquired a 46.9% stake from Praxis Capital Partners in BusinessOn Communication (138580 KS), Korea’s leading B2B SaaS company; plus 24.3% from BusinessOn’s management. 
  • SkyLake has now launched a Tender Offer for 28.94% of BusinessOn. The Tender offer price is ₩15,849/share.
  • Super clean deal. SkyLake will acquire all shares tendered. There is no minimum tendering % condition. 

HD Hyundai: Updated NAV Analysis

By Douglas Kim

  • According to our NAV analysis, it suggests a base case valuation of 122,473 won per share for HD Hyundai, representing a 50% upside from current levels.
  • The combined value of HD Korea Shipbuilding & Offshore Engineering, HD Hyundai Electric & Energy, and HD Hyundai Marine Solution is 11.4 trillion won.
  • We estimate HD Hyundai’s 73.85% stake in Hyundai Oilbank to be 7.0 trillion won. We also applied a 5x OP of its core business and a 50% holdco discount.

Shift Up: 2Q 2024 Results Analysis

By Douglas Kim

  • On 14 August, Shift Up (462870 KS) reported its 2Q 2024 results, which was the first earnings report post its IPO. 
  • Shift Up reported sales of 65.2 billion won (up 65.4% YoY and 19.5% below consensus) and OP of 45.1 billion won (up 49% YoY and 21.4% below consensus) in 2Q24. 
  • The company is preparing for a PC release of Stellar Blade in the near future to continue its strong popularity and it expects better results on PC than on console.

Morning Views Asia: Samvardhana Motherson International Ltd, SK Hynix, Vedanta Resources

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.

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Aug 15
0

Daily Brief Australia: Core Lithium Ltd, Iron Ore and more

By | Australia, Daily Briefs

In today’s briefing:

  • Tax-Loss Selling In Australia 2024: Trade Reversed Is Tale of Two Hedges, Time To Unwind
  • [IO Weekly 2024/32] Chinese Economic Sentiment Sours, Driving Iron Ore Lower; Option Activity Surges

Tax-Loss Selling In Australia 2024: Trade Reversed Is Tale of Two Hedges, Time To Unwind

By Travis Lundy

  • The theory is that stocks which are down hard FY-to-date by end-April end up being good sells because Australians will harvest their losses into end-June. 
  • The idea is then to buy those oversold names and hold them for 30-40 trading days. That has worked 10 out of the last 12 years hedged vs ASX200.
  • This year, the “sold-down” list is very heavily weighted to miners. They have continued to fall since end-June so it’s down. But hedged vs a basket of miners? It’s up.

[IO Weekly 2024/32] Chinese Economic Sentiment Sours, Driving Iron Ore Lower; Option Activity Surges

By Pranay Yadav

  • Iron Ore Price Decline: Iron ore prices dropped 1.7% in Week 32, driven by reduced steel output and fading demand. Stimulus-driven rally failed to sustain.
  • Options Market Trends: Weekly options volume surged, with put volume increasing 106%, pushing the put/call ratio to 1.33, indicating bearish sentiment.
  • Implied Volatility Shifts: Implied volatility (IV) surged midweek, particularly for September contracts, reflecting increased market uncertainty; options skew narrowed to just 0.3% suggesting more expensive calls.

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Aug 15
0

Daily Brief Singapore: Scilex Holding and more

By | Daily Briefs, Singapore

In today’s briefing:

  • SCLX: Revenues Beat Estimates in 2Q

SCLX: Revenues Beat Estimates in 2Q

By Zacks Small Cap Research

  • SCLX is filling a much-needed area of the health care sector, that of developing non-opioid pain relief products.
  • The company already has commercialized products that are proven to improve patients’ lives.
  • The company released its 2Q2024 results that showed revenues that bested estimates as sales of its primary products showed robust growth, while adding another product to its mix.

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Aug 15
0

Daily Brief United States: VanEck Vectors Junior Gold Miners ETF, Floor & Decor Holdings, Occidental Petroleum, Squarespace, Talen Energy , Bitcoin Pro, Ionis Pharmaceuticals, Starbucks Corp, Bentley Systems , Asbury Automotive and more

By | Daily Briefs, United States

In today’s briefing:

  • Quiddity Leaderboard MV Jr Gold Miners Sep 24:  Mergers Mean Possible Up-And-Out DELETEs
  • Floor & Decor Holdings Inc.: A Bear’s Perspective! – Major Drivers
  • [Earnings Review] Occidental Beats Q2 Estimates with Boosted Output and Stronger Realisations
  • Squarespace Inc.: A Bear’s Perspective! – Major Drivers
  • TLN: More EBITDA More Value
  • No Pain, No Gain
  • Ionis Pharmaceuticals: These Are The Key Advancements in Angelman Syndrome and Broad Neurology Portfolio! – Major Drivers
  • Starbucks Gambles on New CEO: Will Niccol Turn the Tide or Spill the Beans?
  • Bentley Systems Inc – Why Howard Hughes Holdings is Pershing Square’s Prime Target!
  • Asbury Automotive Group: What Is Their Expansion Strategy Focused on Diverse Revenue Streams? – Major Drivers

Quiddity Leaderboard MV Jr Gold Miners Sep 24:  Mergers Mean Possible Up-And-Out DELETEs

By Travis Lundy

  • The MV J-Gold Miners index represents the performance small-cap gold and silver mining companies listed around the world.
  • This index is reviewed semi-annually in March and September. During these reviews, names can be added or deleted from the index.
  • In this insight, we take a look at the latest lists of potential ADDs and DELs for the index rebal event in September 2024.

Floor & Decor Holdings Inc.: A Bear’s Perspective! – Major Drivers

By Baptista Research

  • Floor & Decor Holdings, Inc. navigated the fiscal second quarter of 2024 with outcomes that reflected the broader economic challenges impacting the retail and real estate sectors.
  • In the quarter under review, the company reported a dip in both total sales and comparable store sales which fell slightly short of expectations.
  • This mirrored the continuing pressures from taut monetary policies adversely affecting housing market activities and discretionary spending on major projects.

[Earnings Review] Occidental Beats Q2 Estimates with Boosted Output and Stronger Realisations

By Suhas Reddy

  • Occidental’s Q2 revenue grew 1.7% YoY but missed estimates by 1.7%. Net profit surged by 34.9% YoY and beat estimates by 32.5%.
  • Total production rose by 3.3% YoY led by robust growth in the Permian and Gulf of Mexico. Production touched its highest in four years.
  • Average crude oil realisations rose 8.6% YoY, and natural gas increased by 11.3%, while domestic gas realisations fell sharply by 60.3% YoY.

Squarespace Inc.: A Bear’s Perspective! – Major Drivers

By Baptista Research

  • Squarespace’s First Quarter 2024 Earnings revealed a strong performance, with revenue up by 19% and bookings increasing by 23%, surpassing the provided guidance on both metrics.
  • The unlevered free cash flow margin stood at 32%, contributing to a positive outlook for the fiscal year 2024 in terms of both revenue and free cash flow.
  • Throughout the quarter, growth was primarily fueled by consistent organic momentum in the company’s core business, particularly in website services which experienced robust retention and an uptick in new customer growth both domestically and internationally.

TLN: More EBITDA More Value

By Hamed Khorsand

  • TLN benefited from warmer weather in the second quarter with its power plants running without any issues. The increase in electricity demand resulted in TLN reporting adjusted EBITDA higher estimates. 
  • TLN’s management suggesting there could be more data center deals in the future was the biggest takeaway from the earnings call. 
  • Considering the added benefit of the auction results for 2025-26, we believe there is ample reason to expect TLN’s stock to trade above our price target of $145.

No Pain, No Gain

By Delphi Digital

  • Survive the purge, seize the opportunity: Last week’s extreme market volatility presents exceptional forward-looking opportunities for those who remain resilient.
  • Liquidation waves: A path to equilibrium: Learn how major market disturbances like last week’s can create ripples that take time to settle, offering strategic consolidation points.
  • Unlocks and ETF flows: What’s next for crypto? Discover how upcoming token unlocks and recent ETF trends may shape the near-term outlook for key crypto assets.

Ionis Pharmaceuticals: These Are The Key Advancements in Angelman Syndrome and Broad Neurology Portfolio! – Major Drivers

By Baptista Research

  • Ionis Pharmaceuticals Inc., a leader in RNA-targeted therapeutics, recently held its second quarter 2024 earnings call outlining several achievements and perspectives on ongoing projects and upcoming product launches.
  • Ionis has made significant progress with a clear strategic focus on its pipeline, recent approvals, and foundational growth in its research and commercial domains.
  • 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.

Starbucks Gambles on New CEO: Will Niccol Turn the Tide or Spill the Beans?

By Baptista Research

  • Starbucks, the global coffee giant, has taken a bold step by appointing Brian Niccol, the former CEO of Chipotle, as its new leader.
  • This move follows the sudden departure of Laxman Narasimhan, whose tenure saw a significant drop in Starbucks’ share value, raising questions about the company’s future direction.
  • Niccol, credited with turning around Chipotle after its foodborne illness crisis, brings a reputation for innovation and effective leadership.

Bentley Systems Inc – Why Howard Hughes Holdings is Pershing Square’s Prime Target!

By Baptista Research

  • Howard Hughes Holdings, a real estate company with a diversified portfolio of master-planned communities, operating assets, and strategic developments, has recently garnered attention due to the possibility of being taken private by Pershing Square, an investment firm led by Bill Ackman.
  • Pershing Square, the largest shareholder of Howard Hughes with a 38% stake, is reportedly considering this move to unlock greater value from the company.
  • On the one hand, Howard Hughes has shown strong performance across its core business segments, delivering impressive results in land sales, operating assets, and condo developments.

Asbury Automotive Group: What Is Their Expansion Strategy Focused on Diverse Revenue Streams? – Major Drivers

By Baptista Research

  • The Asbury Automotive Group has reported mixed results for the second quarter of 2024, which reflect both a resilient operational performance and significant challenges due to a system outage.
  • A detailed analysis highlights both the strengths and areas of concern for the company during this period.
  • Asbury faced a major operational disruption beginning on June 19, due to an outage with their dealer management system (DMS) provided by CDK.

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Aug 15
0

Daily Brief India: Authum Investment Infrastructure, Hindustan Zinc, P N Gadgil Jewellers, Samvardhana Motherson Automotive Systems Group BV and more

By | Daily Briefs, India

In today’s briefing:

  • The Beat Ideas- Authum 2.0: A New Era in Financial Services!
  • Hindustan Zinc OFS Early Look – Due for a Correction, Large Selling Pressure Looming
  • P N Gadgil Jewellers Pre-IPO – Strong Revenue Growth but Margin Worry Persists
  • Morning Views Asia: Samvardhana Motherson International Ltd, SK Hynix, Vedanta Resources

The Beat Ideas- Authum 2.0: A New Era in Financial Services!

By Sudarshan Bhandari

  • Transformation of the company from Equity investment driven to Equity and stress business. 
  • Complete restructuring of Reliance Capital and Reliance Home Finance into Authum and Focus on ARC and stressed assets.
  • Recoveries in completely provided portfolios of Reliance Capital, Planned debt fundraise for further growth.

Hindustan Zinc OFS Early Look – Due for a Correction, Large Selling Pressure Looming

By Clarence Chu

  • Vedanta Ltd (VEDL IN) is looking to raise US$760m from selling some stake in Hindustan Zinc (HZ IN).
  • Overall, while the deal would represent just 2.6% of the firm’s outstanding shares, the deal is a large one to digest at 41 days of the stock’s three month ADV.
  • In this note, we take an early look at the deal, and comment on the deal dynamics.

P N Gadgil Jewellers Pre-IPO – Strong Revenue Growth but Margin Worry Persists

By Akshat Shah

  • P N Gadgil Jewellers (1742652D IN) looking to raise up to US$132m in its upcoming India IPO.
  • P N Gadgil Jewellers (PNGJ) is an Indian organized jewellery player. Its product offerings include traditional as well as modern and functional jewellery designs, in gold, diamond, silver and platinum.
  • In this note, we look at the company’s historical performance.

Morning Views Asia: Samvardhana Motherson International Ltd, SK Hynix, Vedanta Resources

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.

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Aug 15
0

Daily Brief China: Tencent, Midea Group Co Ltd A, Fu Shou Yuan, TAL Education and more

By | China, Daily Briefs

In today’s briefing:

  • Tencent (700 HK): 2Q24, Gross Margins of All Business Lines Improved Significantly
  • Tencent 2Q: Recent Launch of DnF Mobile Helps Domestic Gaming Return to Growth
  • Midea A/H Listing – Getting Closer to the US$3bn+ Raising, Has a Narrow Window
  • Fu Shou Yuan (1448.HK) – Negative Growth in 24H1 Seems Inevitable
  • TAL Education Group: A Tale Of Expansion and Diversification in Learning Devices! – Major Drivers

Tencent (700 HK): 2Q24, Gross Margins of All Business Lines Improved Significantly

By Ming Lu

  • Total revenue increased by 8% YoY in 2Q24, lightly higher than 1Q24 and 4Q23.
  • The gross margins of all business lines Improved significantly YoY.
  • We set the upside at 35% and the price target at HK$506 for the end of 2025. Buy.

Tencent 2Q: Recent Launch of DnF Mobile Helps Domestic Gaming Return to Growth

By Shifara Samsudeen, ACMA, CGMA

  • Tencent (700 HK) reported 2Q2024 results today which beat consensus. Domestic gaming resumed growth driven by the successful launch of DnF Mobile which continues to dominate charts in China.
  • All three business segments saw improvement in margins driven by Tencent’s high-margin businesses incl. mini-programs, video accounts, short-videos, etc.
  • We expect continued recovery in Tencent’s earnings, however, remain cautious given slowdown in consumption spending and macroeconomic uncertainties.

Midea A/H Listing – Getting Closer to the US$3bn+ Raising, Has a Narrow Window

By Sumeet Singh

  • Midea Group Co Ltd A (000333 CH) one of the world’s largest home appliance producers, aims to raise up to US$3bn in its H-share listing.
  • Midea Group is one of the world’s largest home appliance manufacturing companies with a presence in over 200 countries. Its A-shares have been listed since 2013.
  • We have covered the company and deal background in our previous notes. In this note, we talk about the updates since then.

Fu Shou Yuan (1448.HK) – Negative Growth in 24H1 Seems Inevitable

By Xinyao (Criss) Wang

  • According to the management, the performance of 24H1 should be better than that of 21H1, but Fu Shou Yuan’s performance in 2024 full year may still fall short of expectations.
  • In the future, the development strategy of Fu Shou Yuan would rely more on endogenous growth. Without aggressive M&A, long-term revenue growth rate could fall to single digit.
  • Special dividends will continue in the future. However, one major risk for Fu Shou Yuan is policy risk. The bottom line is the demand for the funeral industry always exists.

TAL Education Group: A Tale Of Expansion and Diversification in Learning Devices! – Major Drivers

By Baptista Research

  • TAL Education Group delivered a robust set of results in its fiscal first quarter of 2025, showcasing significant revenue growth and strategic expansions in both its learning services and content solutions sectors.
  • These outcomes reflect the company’s focused execution on its operational strategies and its adaptability to the evolving educational needs.
  • Financially, TAL Education Group reported a net revenue of USD 414.2 million, a substantial increase of 50.4% from the previous year, paralleled by a 56.9% increase in RMB terms.

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