Category

Daily Briefs

Aug 15
0

Daily Brief Japan: JTower, Piolax Inc, Appier Group, Qb Net Holdings, Sun*, FaithNetwork Co Ltd, Ferrotec Corp, Hikari Tsushin, Impress Holdings and more

By | Daily Briefs, Japan

In today’s briefing:

  • J Tower (4485) – Once Ambitious, Still High Growth, Sells Itself Low/Cheapish.
  • JTOWER (4485 JP): DigitalBridge’s 162% Takeover Premium Offer Is Opportunistic
  • Piolax (5988 JP): Murakami Becomes a Substantial Shareholder
  • Appier (4180) | The Hidden Gem in AI Marketing
  • Qb Net Holdings (6571 JP): Full-year FY06/24 flash update
  • Sun* (4053 JP): 1H FY12/24 flash update
  • FaithNetwork Co Ltd (3489 JP): Q1 FY03/25 flash update
  • Ferrotec Corp (6890 JP): Q1 FY03/25 flash update
  • Hikari Tsushin (9435 JP): Q1 FY03/25 flash update and dividend forecast revision
  • Impress Holdings (9479 JP): Q1 FY03/25 flash update

J Tower (4485) – Once Ambitious, Still High Growth, Sells Itself Low/Cheapish.

By Travis Lundy

  • JTower (4485 JP) IPOed itself Dec-2019 at ¥1,600/share. An 8-bagger in a year, fell by half, doubled, fell 70%, then doubled, fell 35%, up 50%. That’s the first 3yrs.
  • Since then, the trend has been lower. The stock is down 80+% in 2 years, especially painful after an equity raise at just under ¥5,000 6 months ago.
  • But the stock today closed at ¥1,430, and the Tender Offer is at ¥3,600. A 150% premium. That’s big, but it may be “too low.” An interesting case.

JTOWER (4485 JP): DigitalBridge’s 162% Takeover Premium Offer Is Opportunistic

By Arun George

  • JTower (4485 JP) has recommended a tender offer from DigitalBridge Group (DBRG US) at JPY3,600, a 161.8% premium to the undisturbed price of JPY1,375 (13 August). 
  • Despite the hefty takeover premium, the offer is light (compared to historical trading ranges and the recent placement) and opportunistically timed (the share price has fallen 61% since 9 May). 
  • Nevertheless, barring a spurt of activism, the offer should succeed as the required 40.7% minority acceptance rate is not onerous and should be comfortably met by Japanese cross-holders.    

Piolax (5988 JP): Murakami Becomes a Substantial Shareholder

By Arun George

  • Murakami’s entities, City Index Eleventh and City Index Third, reported a 5.05% position in Piolax Inc (5988 JP). The purchases were from 11 June to 6 August over 60 days.
  • Murakami’s average buy-in price over the last 60 days was JPY2,286.61 per share, a 0.7% discount to the last close price.
  • Murakami’s disclosure suggests two possibilities: the start of an activist campaign or a short-term pump-and-dump play. The former is likely as Piolax is cash-rich with a P/B less than 1x.

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.

Qb Net Holdings (6571 JP): Full-year FY06/24 flash update

By Shared Research

  • Full-year FY06/24 revenue increased 8.8% YoY to JPY24.8bn, driven by higher domestic revenue, despite a 1.1% YoY decline in operating profit.
  • FY06/25 earnings forecast projects revenue of JPY25.7bn (+3.8% YoY) and operating profit of JPY1.9bn (-10.2% YoY), prioritizing salon expansion.
  • The company opened 20 new salons and closed 30, resulting in a net decrease of 10 salons to 691.

Sun* (4053 JP): 1H FY12/24 flash update

By Shared Research

  • Revenue: JPY6.5bn (+6.5% YoY), Operating profit: JPY727mn (-15.6% YoY), Recurring profit: JPY697mn (-31.7% YoY).
  • Number of recurring revenue customers at end-Q2: 127 companies (+9.5% YoY), Monthly ARPU in Q2: JPY5,080,000 (-4.5% YoY).
  • Revenue for Creative & Engineering service line: JPY5.7bn (+7.4% YoY), Talent Platform service line: JPY451mn (+3.2% YoY).

FaithNetwork Co Ltd (3489 JP): Q1 FY03/25 flash update

By Shared Research

  • Sales increased to JPY2.0bn (+46.2% YoY), but operating loss widened to JPY425mn, with recurring loss at JPY1.8bn.
  • Real Estate Investment Support segment sales rose 50.6% YoY, but operating loss widened to JPY469mn.
  • Real Estate Management segment sales grew 18.7% YoY, with operating profit up 129.4% YoY to JPY44mn.

Ferrotec Corp (6890 JP): Q1 FY03/25 flash update

By Shared Research

  • Q1 FY03/25 results: Sales JPY61.1bn (+16.9% YoY), Operating profit JPY7.0bn (-1.4% YoY), Recurring profit JPY8.2bn (+7.7% YoY), Net income JPY4.8bn (+11.6% YoY).
  • Segment sales: Semiconductor Equipment-related JPY39.9bn (+33.6% YoY), Electronic Device JPY10.0bn (+8.7% YoY), Automotive-related JPY5.8bn (-21.2% YoY), Others JPY5.4bn (-7.4% YoY).
  • Revised 1H FY03/25 forecast: Sales JPY120.0bn (+13.8% YoY), Operating profit JPY13.0bn (-0.3%), Recurring profit JPY14.5bn (-4.7% YoY), Net income JPY8.5bn (+1.3% YoY).

Hikari Tsushin (9435 JP): Q1 FY03/25 flash update and dividend forecast revision

By Shared Research

  • The company reported revenue of JPY146.2bn (+4.3% YoY) and operating profit of JPY27.2bn (+13.6% YoY) in Q1 FY03/25.
  • Effective Q1 FY03/25, the company adopted a new segmentation with seven reportable segments, retroactively adjusted for Q1 FY03/24.
  • Financial income was JPY35.1bn (+68.8% YoY), and the company decided to pay a quarterly dividend of JPY156 per share.

Impress Holdings (9479 JP): Q1 FY03/25 flash update

By Shared Research

  • Revenue: JPY3.2bn (-3.5% YoY), Operating loss: JPY185mn, Recurring loss: JPY161mn, Net loss: JPY175mn.
  • Content Business: Revenue from publishing and electronic publishing declined; Internet Media services revenue increased; Solutions business revenue increased.
  • Platform Business: Revenue rose due to robust sales of partner publishers’ electronic publications and books; operating profit decreased.

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Aug 15
0

Daily Brief Utilities: Talen Energy , Renewable Japan and more

By | Daily Briefs, Utilities Sector

In today’s briefing:

  • TLN: More EBITDA More Value
  • Renewable Japan (9522 JP): 1H FY12/24 flash update

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.

Renewable Japan (9522 JP): 1H FY12/24 flash update

By Shared Research

  • Revenue for 1H FY12/24 was JPY8.7bn, down 7.9% YoY, achieving 42.5% of the full-year forecast.
  • Gross profit for the Recurring business grew 18.4% YoY, while Spot business revenue and gross profit declined over 50% YoY.
  • Operating profit decreased 14.8% YoY to JPY1.5bn, achieving 29.7% of the full-year forecast.

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Aug 15
0

Daily Brief Industrials: TAL Education, Dai Ichi Cutter Kogyo Kk, International Consolidated Airlines Group, Urban-Gro and more

By | Daily Briefs, Industrials

In today’s briefing:

  • TAL Education Group: A Tale Of Expansion and Diversification in Learning Devices! – Major Drivers
  • Dai Ichi Cutter Kogyo Kk (1716 JP): Full-year FY06/24 flash update
  • European Airlines – Moving Parts Within Group Performances Illustrate Structural Requirements
  • UGRO: View 2Q Delay, Restatement as Immaterial; Setting up 3Q, Reiterate Buy

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.

Dai Ichi Cutter Kogyo Kk (1716 JP): Full-year FY06/24 flash update

By Shared Research

  • Revenue in FY06/24 declined 5.6% YoY, mainly due to the exclusion of a subsidiary from consolidation.
  • The FY06/25 forecast calls for revenue of JPY21.0bn (+0.4% YoY) and operating profit of JPY2.5bn (+1.8% YoY).
  • Earnings exceeded initial estimates through FY06/23, but FY06/24 performance was in line with the initial plan.

European Airlines – Moving Parts Within Group Performances Illustrate Structural Requirements

By Neil Glynn

  • Following highly challenged 1H24 performances from Air France-KLM and Lufthansa, but strength from IAG, we publish a deep dive on the drivers of divergent performances.
  • We raise our forecasts at IAG but make heavy cuts at Air France-KLM and Lufthansa, with concerns over their ability to improve over pre-pandemic performances.
  • This critical juncture, as each carrier implements some type of transformation plan, and carriers around the world see earnings re-set downwards, requires strong governance for expanding portfolios of airlines.

UGRO: View 2Q Delay, Restatement as Immaterial; Setting up 3Q, Reiterate Buy

By Small Cap Consumer Research

  • We are reiterating our Buy rating, $8 price target and slightly tweaking our projections after urban-gro, as part of their engagement with a new accounting firm, announced a restatement of historic results, driven by deferred tax liabilities.
  • We note the restatement will have no material impact on historic Revenue, Adjusted EBITDA and cash flows.
  • That said, we now do not expect the company to announce 2Q24 results now before October.

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Aug 15
0

Daily Brief Energy/Materials: Core Lithium Ltd, VanEck Vectors Junior Gold Miners ETF, Hindustan Zinc, HD Hyundai , Occidental Petroleum, Iron Ore, Zephyr Energy, Exxon Mobil, Lyondellbasell Indu Cl A, Pan American Silver and more

By | Daily Briefs, Energy & Materials Sector

In today’s briefing:

  • Tax-Loss Selling In Australia 2024: Trade Reversed Is Tale of Two Hedges, Time To Unwind
  • Quiddity Leaderboard MV Jr Gold Miners Sep 24:  Mergers Mean Possible Up-And-Out DELETEs
  • Hindustan Zinc OFS Early Look – Due for a Correction, Large Selling Pressure Looming
  • HD Hyundai: Updated NAV Analysis
  • [Earnings Review] Occidental Beats Q2 Estimates with Boosted Output and Stronger Realisations
  • [IO Weekly 2024/32] Chinese Economic Sentiment Sours, Driving Iron Ore Lower; Option Activity Surges
  • Zephyr Energy Plc (AIM: ZPHR): Production Guidance for Non Op. Assets in Line.
  • Exxon Mobil Corporation: Energy Transition and New Ventures! – Major Drivers
  • LyondellBasell Industries: Strategic Initiatives in Advanced Polymer Solutions Catalyzing Growth!
  • Pan American Silver – Q224 results: Steady progress

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.

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.

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.

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.

[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.

[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.

Zephyr Energy Plc (AIM: ZPHR): Production Guidance for Non Op. Assets in Line.

By Auctus Advisors

  • 2Q24 production in the Williston Basin was 1,226 boe/d.
  • This excludes natural gas liquids (historically 150-200 bbl/d).
  • This represents an increase of 7% compared to 1Q24 but 2Q24 production from the six wells Slawson wells continues to be partially impacted by gas export infrastructure constraints.

Exxon Mobil Corporation: Energy Transition and New Ventures! – Major Drivers

By Baptista Research

  • Exxon Mobil Corporation reported its second-quarter earnings for the year 2024, showcasing robust financial performance with earnings totaling $9.2 billion, marking the second-best second-quarter results in the past decade.
  • The earnings were bolstered by record production levels in key regions such as Guyana and the Permian Basin, reflecting ExxonMobil’s sharp focus on its advantaged assets.
  • The recent acquisition of Pioneer has further scaled up Permian production to 1.2 million barrels per day, contributing significantly to the overall production boost.

LyondellBasell Industries: Strategic Initiatives in Advanced Polymer Solutions Catalyzing Growth!

By Baptista Research

  • LyondellBasell faced a challenging yet ultimately positive quarter, reflecting a complex global economic environment marked by energy and feedstock cost variations and varying regional demand dynamics.
  • The company reported a substantial 30% improvement in underlying business results compared to the previous quarter, primarily driven by increased production volumes.
  • The company’s financial health appears robust, with a second-quarter EBITDA of $1.4 billion and notable earnings per share of $2.24.

Pan American Silver – Q224 results: Steady progress

By Edison Investment Research

Pan American Silver (PAAS) delivered a robust set of Q224 results, with lower silver production offset by the stronger sales and commodity prices. This was coupled with good cost control in the gold segment and resulted in a 65% increase in mine operating earnings and 31% growth in EBITDA. Strong cash flow generation was the main highlight of the results, with free cash flow exceeding that of the whole of FY23. PAAS expects production to be more heavily weighted to Q4 and silver output to be towards the lower end of guidance. We have reduced our FY24e EBITDA by 3.6% but our valuation remains virtually unchanged at US$23.5 per share due to a slightly lower weighted average cost of capital (WACC).

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Aug 15
0

Daily Brief TMT/Internet: JTower, Appier Group, Tencent, BusinessOn Communication, Taiwan Semiconductor (TSMC), Shift Up, Squarespace, Sun* and more

By | Daily Briefs, TMT/Internet

In today’s briefing:

  • J Tower (4485) – Once Ambitious, Still High Growth, Sells Itself Low/Cheapish.
  • JTOWER (4485 JP): DigitalBridge’s 162% Takeover Premium Offer Is Opportunistic
  • Appier (4180) | The Hidden Gem in AI Marketing
  • Tencent (700 HK): 2Q24, Gross Margins of All Business Lines Improved Significantly
  • BusinessOn Communication (138580 KS): SkyLake’s Delisting Offer
  • 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
  • Squarespace Inc.: A Bear’s Perspective! – Major Drivers
  • Sun* (4053 JP): 1H FY12/24 flash update

J Tower (4485) – Once Ambitious, Still High Growth, Sells Itself Low/Cheapish.

By Travis Lundy

  • JTower (4485 JP) IPOed itself Dec-2019 at ¥1,600/share. An 8-bagger in a year, fell by half, doubled, fell 70%, then doubled, fell 35%, up 50%. That’s the first 3yrs.
  • Since then, the trend has been lower. The stock is down 80+% in 2 years, especially painful after an equity raise at just under ¥5,000 6 months ago.
  • But the stock today closed at ¥1,430, and the Tender Offer is at ¥3,600. A 150% premium. That’s big, but it may be “too low.” An interesting case.

JTOWER (4485 JP): DigitalBridge’s 162% Takeover Premium Offer Is Opportunistic

By Arun George

  • JTower (4485 JP) has recommended a tender offer from DigitalBridge Group (DBRG US) at JPY3,600, a 161.8% premium to the undisturbed price of JPY1,375 (13 August). 
  • Despite the hefty takeover premium, the offer is light (compared to historical trading ranges and the recent placement) and opportunistically timed (the share price has fallen 61% since 9 May). 
  • Nevertheless, barring a spurt of activism, the offer should succeed as the required 40.7% minority acceptance rate is not onerous and should be comfortably met by Japanese cross-holders.    

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.

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.

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. 

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.

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.

Sun* (4053 JP): 1H FY12/24 flash update

By Shared Research

  • Revenue: JPY6.5bn (+6.5% YoY), Operating profit: JPY727mn (-15.6% YoY), Recurring profit: JPY697mn (-31.7% YoY).
  • Number of recurring revenue customers at end-Q2: 127 companies (+9.5% YoY), Monthly ARPU in Q2: JPY5,080,000 (-4.5% YoY).
  • Revenue for Creative & Engineering service line: JPY5.7bn (+7.4% YoY), Talent Platform service line: JPY451mn (+3.2% YoY).

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Aug 15
0

Daily Brief Health Care: Ionis Pharmaceuticals, Accolade , BB Biotech AG, Bio-Rad Laboratories A, Blueprint Medicines, Evaxion Biotech A/S, FibroBiologics, Immix Biopharma Inc, IN8bio , Scilex Holding and more

By | Daily Briefs, Healthcare

In today’s briefing:

  • Ionis Pharmaceuticals: These Are The Key Advancements in Angelman Syndrome and Broad Neurology Portfolio! – Major Drivers
  • Accolade Inc: Receiving Strong Acquisition Interest! What Is Its True Worth!: – Major Drivers
  • BB Biotech – Lower rates and news flow to support recovery
  • Bio-Rad Laboratories: A Strengthened Position in Digital PCR (ddPCR) and Diagnostics With Solid Presence In China! – Major Drivers
  • Blueprint Medicines Corporation: Expanding Global Markets & 3 Reasons Why We Are Bullish! – Major Drivers
  • EVAX: Dual-income, AI-Biotech Company Attracting Interest
  • FBLG: Proof-of-Concept Data for Artificial Thymus Technology
  • Immix Biopharma – Full steam ahead with US CAR-T trial
  • INAB: AML & GBM Clinical Update
  • SCLX: Revenues Beat Estimates in 2Q

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.

Accolade Inc: Receiving Strong Acquisition Interest! What Is Its True Worth!: – Major Drivers

By Baptista Research

  • Accolade has been in the news for receiving solid acquisition interest.
  • The company’s position as a potentially attractive acquisition target may be considered based on various aspects of its business model and financial performance as presented in their recent quarterly results.
  • The company operates within the healthcare services industry, providing personalized health care solutions, which remain a significant growth sector due to increasing demand for customized healthcare and technological advancements like artificial intelligence and virtual care services.

BB Biotech – Lower rates and news flow to support recovery

By Edison Investment Research

BB Biotech (BION) offers investors exposure to the innovative, rapidly expanding biotech sector. It is the largest biotech investor among its investment company peers, focused on high-quality biotech assets that target substantial market opportunities. The company recently released its interim report for the period ended 30 June 2024, which provided an update on recent performance and developments with portfolio companies, and outlined the major milestones expected from these holdings during the second half of 2024. This note summarises the key points from the report, and the reasons why BION’s managers are optimistic about the outlook for the biotech sector and for their portfolio.

Bio-Rad Laboratories: A Strengthened Position in Digital PCR (ddPCR) and Diagnostics With Solid Presence In China! – Major Drivers

By Baptista Research

  • Bio-Rad, in its second quarter of 2024, presents a mix of performances and outlook corrections amidst a complex operating environment.
  • CEO Norman Schwartz highlighted that the quarter saw revenue meeting expectations and a better-than-expected margin performance due to favorable product mix and good cost management.
  • Despite these positives, the company is facing challenges specifically within the biotech and biopharma sectors, leading to a cautious revision of its full-year 2024 financial outlook.

Blueprint Medicines Corporation: Expanding Global Markets & 3 Reasons Why We Are Bullish! – Major Drivers

By Baptista Research

  • Blueprint Medicines has commemorated a full year since the U.S. approval of AYVAKIT for indolent systemic mastocytosis (ISM), showcasing significant achievements in both financial and operational domains.
  • The company’s Q2 2024 financial results reflect a robust trajectory for AYVAKIT, bolstered by favorable reception among physicians, patients, and payers, and underscored by promising revenue figures that outstrip prior expectations.
  • 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.

EVAX: Dual-income, AI-Biotech Company Attracting Interest

By Zacks Small Cap Research

  • EVAX is a clinical stage company that has proprietary AI models designed to more efficiently and more accurately target much-needed treatments.
  • The company has two streams of possible revenue: from the treatments themselves and from the licensing of the AI technology.
  • 2Q financials show the company has solid cash and is attracting interest from potential partners.

FBLG: Proof-of-Concept Data for Artificial Thymus Technology

By Zacks Small Cap Research

  • FibroBiologics is a cell therapy company focused on the development of fibroblast-based therapies for the treatment of chronic diseases with significant unmet medical needs.
  • The company recently announced positive proof-of-concept data regarding the development of a novel artificial thymus organoid that restored immune function in a severe combined immunodeficiency (SCID) mouse model.
  • We continue to anticipate that a Phase 1/2 clinical trial of CYWC628, the company’s lead asset targeting diabetic foot ulcers, will be completed in Australia in 2025.

Immix Biopharma – Full steam ahead with US CAR-T trial

By Edison Investment Research

Immix Biopharma’s second quarter was headlined by intensified clinical activity for lead CAR-T asset NXC-201 (targeting amyloid light chain amyloidosis, ALA), followed by commencement of patient dosing in the US-based NEXICART-2 trial in July 2024. With an 18- to 24-month timeline for full trial enrollment (planned n=40) and top-line data expected in Q2/Q326, we now anticipate a biological license application (BLA) to be filed in H127 (vs 2026 previously). In our view, the development path has been partially de-risked by the potential $8m grant inflows from the California Institute for Regenerative Medicine (CIRM), which should bolster liquidity and extend the operational runway to Q425. We adjust our top-line estimates to reflect grant inflows but conservatively push out the NXC-201 launch timeline to 2028 (vs 2027 previously). We revise our valuation to $123.1m or $4.5/share (from $139.5m or $5.3/share).

INAB: AML & GBM Clinical Update

By Zacks Small Cap Research

  • IN8Bio is a clinical-stage, oncology-focused biotechnology company using ?d T cells against solid and hematological tumors.
  • Its pipeline is built on the DeltEx platform & drug-resistant immunotherapy (DRI) technology which have produced clinical candidates targeting leukemia & GBM.
  • INB-100 is evaluating leukemia in a Ph1 study, while INB-200 & INB-400 are Ph1 and Ph2 assets evaluating GBM.

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 Industrials: TAL Education, Dai Ichi Cutter Kogyo Kk, International Consolidated Airlines Group, Urban-Gro and more

By | Daily Briefs, Industrials

In today’s briefing:

  • TAL Education Group: A Tale Of Expansion and Diversification in Learning Devices! – Major Drivers
  • Dai Ichi Cutter Kogyo Kk (1716 JP): Full-year FY06/24 flash update
  • European Airlines – Moving Parts Within Group Performances Illustrate Structural Requirements
  • UGRO: View 2Q Delay, Restatement as Immaterial; Setting up 3Q, Reiterate Buy

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.

Dai Ichi Cutter Kogyo Kk (1716 JP): Full-year FY06/24 flash update

By Shared Research

  • Revenue in FY06/24 declined 5.6% YoY, mainly due to the exclusion of a subsidiary from consolidation.
  • The FY06/25 forecast calls for revenue of JPY21.0bn (+0.4% YoY) and operating profit of JPY2.5bn (+1.8% YoY).
  • Earnings exceeded initial estimates through FY06/23, but FY06/24 performance was in line with the initial plan.

European Airlines – Moving Parts Within Group Performances Illustrate Structural Requirements

By Neil Glynn

  • Following highly challenged 1H24 performances from Air France-KLM and Lufthansa, but strength from IAG, we publish a deep dive on the drivers of divergent performances.
  • We raise our forecasts at IAG but make heavy cuts at Air France-KLM and Lufthansa, with concerns over their ability to improve over pre-pandemic performances.
  • This critical juncture, as each carrier implements some type of transformation plan, and carriers around the world see earnings re-set downwards, requires strong governance for expanding portfolios of airlines.

UGRO: View 2Q Delay, Restatement as Immaterial; Setting up 3Q, Reiterate Buy

By Small Cap Consumer Research

  • We are reiterating our Buy rating, $8 price target and slightly tweaking our projections after urban-gro, as part of their engagement with a new accounting firm, announced a restatement of historic results, driven by deferred tax liabilities.
  • We note the restatement will have no material impact on historic Revenue, Adjusted EBITDA and cash flows.
  • That said, we now do not expect the company to announce 2Q24 results now before October.

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Aug 15
0

Daily Brief Consumer: Piolax Inc, P N Gadgil Jewellers, Floor & Decor Holdings, Midea Group Co Ltd A, Melco Resorts & Entertainment, Fu Shou Yuan, Qb Net Holdings, Starbucks Corp, Piala, Samvardhana Motherson Automotive Systems Group BV and more

By | Consumer, Daily Briefs

In today’s briefing:

  • Piolax (5988 JP): Murakami Becomes a Substantial Shareholder
  • P N Gadgil Jewellers Pre-IPO – Strong Revenue Growth but Margin Worry Persists
  • Floor & Decor Holdings Inc.: A Bear’s Perspective! – Major Drivers
  • Midea A/H Listing – Getting Closer to the US$3bn+ Raising, Has a Narrow Window
  • Melco Resorts – Earnings Flash – H1 FY 2024 Results – Lucror Analytics
  • Fu Shou Yuan (1448.HK) – Negative Growth in 24H1 Seems Inevitable
  • Qb Net Holdings (6571 JP): Full-year FY06/24 flash update
  • Starbucks Gambles on New CEO: Will Niccol Turn the Tide or Spill the Beans?
  • Piala (7044 JP): 1H FY12/24 flash update
  • Morning Views Asia: Samvardhana Motherson International Ltd, SK Hynix, Vedanta Resources

Piolax (5988 JP): Murakami Becomes a Substantial Shareholder

By Arun George

  • Murakami’s entities, City Index Eleventh and City Index Third, reported a 5.05% position in Piolax Inc (5988 JP). The purchases were from 11 June to 6 August over 60 days.
  • Murakami’s average buy-in price over the last 60 days was JPY2,286.61 per share, a 0.7% discount to the last close price.
  • Murakami’s disclosure suggests two possibilities: the start of an activist campaign or a short-term pump-and-dump play. The former is likely as Piolax is cash-rich with a P/B less than 1x.

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.

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.

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.

Melco Resorts – Earnings Flash – H1 FY 2024 Results – Lucror Analytics

By Leonard Law, CFA

Melco Resorts’ (MLCO) Q2/24 results were soft, but in line with expectations. The company’s earnings improved sequentially in Q2, though the pace of its earnings recovery (relative to pre-pandemic levels) and debt reduction have continued to lag peers.

During H1/24, MLCO’s net gross debt was down by just 1% from FYE 2023. Hence, the company’s leverage remained weaker than peers, with Net Debt/LTM Adjusted Property EBITDA of 5.1x (vs. 3.9x for Wynn Macau, 2.5x for Sands China and an estimated 2.1x for MGM China).

Going forward, we expect MLCO to continue generating small positive FCF and deleverage gradually, with the extent of its FCF generation likely tempered by ongoing share repurchases.

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.

Qb Net Holdings (6571 JP): Full-year FY06/24 flash update

By Shared Research

  • Full-year FY06/24 revenue increased 8.8% YoY to JPY24.8bn, driven by higher domestic revenue, despite a 1.1% YoY decline in operating profit.
  • FY06/25 earnings forecast projects revenue of JPY25.7bn (+3.8% YoY) and operating profit of JPY1.9bn (-10.2% YoY), prioritizing salon expansion.
  • The company opened 20 new salons and closed 30, resulting in a net decrease of 10 salons to 691.

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.

Piala (7044 JP): 1H FY12/24 flash update

By Shared Research

  • Revenue increased 20.5% YoY to JPY5.9bn due to demand recovery and business expansion into different industries.
  • Operating loss widened to JPY175mn, with a recurring loss of JPY154mn and net loss of JPY186mn in 1H FY12/23.
  • Gross profit margin decreased YoY, and continued investment in human resources impacted profitability in the Marketing DX business.

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 Financials: Authum Investment Infrastructure, Thanachart Capital, Bitcoin Pro, BlackRock Greater Europe Inves, Consumer Portfolio Services, Deutsche Beteiligungs AG, FaithNetwork Co Ltd, Howard Hughes / and more

By | Daily Briefs, Financials

In today’s briefing:

  • The Beat Ideas- Authum 2.0: A New Era in Financial Services!
  • SET50 Index Rebalance Preview: Four Changes & A Few Close Names
  • No Pain, No Gain
  • BlackRock Greater Europe Investment Trust – High-quality fund in underappreciated region
  • CPSS: Initiating Coverage of Scale-Enabled Auto Finance Company, with Key Catalysts
  • Deutsche Beteiligungs – Doubling down on investment opportunities
  • FaithNetwork Co Ltd (3489 JP): Q1 FY03/25 flash update
  • Why Howard Hughes Holdings is Pershing Square’s Prime Target!

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.

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.

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.

BlackRock Greater Europe Investment Trust – High-quality fund in underappreciated region

By Edison Investment Research

BlackRock Greater Europe Investment Trust’s (BRGE’s) co-managers Stefan Gries and Alexandra Dangoor remain positive on the trust’s prospects despite a mixed macroeconomic backdrop. Although the Chinese economy is weaker than forecast (China is an important European export market), and there are some weaker US economic indicators, European purchasing managers indices are rising and employment data is strong. The managers are selective, seeking high-quality European-based companies. Hence, investors do not have to have a positive view on the economy to consider BRGE, which has the highest returns in the AIC Europe sector over the last 10 years.

CPSS: Initiating Coverage of Scale-Enabled Auto Finance Company, with Key Catalysts

By Zacks Small Cap Research

  • Consumer Portfolio Services is a specialty finance company focused on purchasing and servicing retail automobile contracts (mostly secured by late model used vehicles) sourced by the company’s network of franchised and independent automobile dealers in the United States.
  • CPSS provides indirect financing to subprime customers of dealers, or individuals with limited credit histories or past credit issues.
  • Proprietary originations are generally funded on a long-term basis through the asset-backed securitization markets.

Deutsche Beteiligungs – Doubling down on investment opportunities

By Edison Investment Research

Deutsche Beteiligungs (DBAG) reported a c 4% NAV total return in 9M24, supported primarily by higher valuation multiples on the back of more benign public markets and the successful realisation of in-tech. DBAG’s management has recently experienced a significant increase in deal flow, which we attribute to the first signs of a recovery in global M&A activity, reduced competition (as evidenced by two of its competitors no longer pursuing new investments), as well as cross-deal flow from the recently acquired ELF Capital Group. This has encouraged the company to issue a €100m convertible bond to further boost its dry powder.

FaithNetwork Co Ltd (3489 JP): Q1 FY03/25 flash update

By Shared Research

  • Sales increased to JPY2.0bn (+46.2% YoY), but operating loss widened to JPY425mn, with recurring loss at JPY1.8bn.
  • Real Estate Investment Support segment sales rose 50.6% YoY, but operating loss widened to JPY469mn.
  • Real Estate Management segment sales grew 18.7% YoY, with operating profit up 129.4% YoY to JPY44mn.

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.

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Aug 15
0

Most Read: ASM Pacific Technology, Sun Corp, Greatview Aseptic Packaging, Core Lithium Ltd, JTower, China Resources Beverage, Thanachart Capital, VanEck Vectors Junior Gold Miners ETF, Piolax Inc and more

By | Daily Briefs, Most Read

In today’s briefing:

  • HSCEI/HSTECH/HSIII Index Rebalance Preview: Potential Changes, Flow & Positioning
  • To Tender Or Not – Gauging The Future of Sun Corp (6736)
  • Greatview Aseptic Packaging (468.HK) – The Story Behind The “Hostile Offer”
  • Tax-Loss Selling In Australia 2024: Trade Reversed Is Tale of Two Hedges, Time To Unwind
  • J Tower (4485) – Once Ambitious, Still High Growth, Sells Itself Low/Cheapish.
  • JTOWER (4485 JP): DigitalBridge’s 162% Takeover Premium Offer Is Opportunistic
  • China Resources Beverage Pre-IPO – Thoughts on Valuation
  • SET50 Index Rebalance Preview: Four Changes & A Few Close Names
  • Quiddity Leaderboard MV Jr Gold Miners Sep 24:  Mergers Mean Possible Up-And-Out DELETEs
  • Piolax (5988 JP): Murakami Becomes a Substantial Shareholder

HSCEI/HSTECH/HSIII Index Rebalance Preview: Potential Changes, Flow & Positioning

By Brian Freitas

To Tender Or Not – Gauging The Future of Sun Corp (6736)

By Travis Lundy

  • The revised/final True Wind Tender Offer for up to 19% of Sun Corp (6736 JP) ends this week. With the “excitement” the last two weeks, the SunCorp/CLBT ratio is higher.
  • The minimum threshold is relatively low. The Tender will most likely succeed with very high pro-ration. 
  • For those on the edge, I discuss possibilities on the back end. It will be less liquid, but that may not be bad.

Greatview Aseptic Packaging (468.HK) – The Story Behind The “Hostile Offer”

By Xinyao (Criss) Wang

  • The connection between Newjf and Greatview is deep. Newjf expressed an interest in acquiring Greatview early on, but the two parties didn’t reach an agreement. Greatview is not entirely “innocent”.
  • Newjf’s decision to forcibly acquire Greatview at this moment should be made after careful consideration. Mengniu may not necessarily oppose this merger. Mengniu is likely to take a neutral stance. 
  • Newjf’s Offer is attractive. In the absence of a more realistic action by Greatview to make a higher Offer, we advise investors not to walk away from Newjf’s Offer easily.

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.

J Tower (4485) – Once Ambitious, Still High Growth, Sells Itself Low/Cheapish.

By Travis Lundy

  • JTower (4485 JP) IPOed itself Dec-2019 at ¥1,600/share. An 8-bagger in a year, fell by half, doubled, fell 70%, then doubled, fell 35%, up 50%. That’s the first 3yrs.
  • Since then, the trend has been lower. The stock is down 80+% in 2 years, especially painful after an equity raise at just under ¥5,000 6 months ago.
  • But the stock today closed at ¥1,430, and the Tender Offer is at ¥3,600. A 150% premium. That’s big, but it may be “too low.” An interesting case.

JTOWER (4485 JP): DigitalBridge’s 162% Takeover Premium Offer Is Opportunistic

By Arun George

  • JTower (4485 JP) has recommended a tender offer from DigitalBridge Group (DBRG US) at JPY3,600, a 161.8% premium to the undisturbed price of JPY1,375 (13 August). 
  • Despite the hefty takeover premium, the offer is light (compared to historical trading ranges and the recent placement) and opportunistically timed (the share price has fallen 61% since 9 May). 
  • Nevertheless, barring a spurt of activism, the offer should succeed as the required 40.7% minority acceptance rate is not onerous and should be comfortably met by Japanese cross-holders.    

China Resources Beverage Pre-IPO – Thoughts on Valuation

By Sumeet Singh

  • China Resources Beverage is looking to raise US$1bn in its upcoming Hong Kong IPO.
  • China Resources Beverage manufactures and sells packaged drinking water and RTD soft beverages in China.
  • In our earlier notes, we talked about the company’s past performance and undertook a peer comparison. In this note, we will look at valuations.

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.

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.

Piolax (5988 JP): Murakami Becomes a Substantial Shareholder

By Arun George

  • Murakami’s entities, City Index Eleventh and City Index Third, reported a 5.05% position in Piolax Inc (5988 JP). The purchases were from 11 June to 6 August over 60 days.
  • Murakami’s average buy-in price over the last 60 days was JPY2,286.61 per share, a 0.7% discount to the last close price.
  • Murakami’s disclosure suggests two possibilities: the start of an activist campaign or a short-term pump-and-dump play. The former is likely as Piolax is cash-rich with a P/B less than 1x.

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