Daily Briefs

EOG Resources delivered a solid first quarter 2024 performance thanks to a range of factors, among them solid operational execution, underlining future value creation potential.
EOG’s commitment to capital discipline, operational excellence, and pioneering sustainability initiatives have set the company up to deliver significant returns.
It reported a strong financial performance during the quarter, with adjusted net income totaling $1.6 billion and free cash flow generation of $1.2 billion.

Nippon Paint (4612 JP): Strong 1Q24; Overlooked Proxy For China Property

By Steve Zhou, CFA

According to public news, China is considering asking local governments to purchase significant amount of unsold homes in the country.
Nippon Paint Holdings (4612 JP) is a good proxy for exposure to China property with downside protection.
China made up 40% of Nippon Paint’s operating profit (1Q24 numbers). Nippon Paint is the absolute leader in decorative paint in China, with 25% market share in 2023 (TUC).

SDRL: Drilling for Cash Flow

By Hamed Khorsand

SDRL reported first quarter results updating investors on the state of offshore drilling market that has shown little signs of change. Day rates have slowly climbed since last year
SDRL disclosed a new contract for Sevan Louisiana. There was a considerable amount of time spent on the earnings call for the vessel and it’s 45-day contract.
SDRL has entered a definitive contract to sell its three jack-up rigs and the joint venture stake that operates them for $338 million.

Coterra Energy: Balanced Portfolio and M&A Strategy

Coterra Energy Inc. reported strong first quarter 2024 results, with total equivalent production reaching the high end of guidance at 686,000 barrels of oil equivalent per day.
This was driven by well performance that exceeded expectations and optimal production timing.
The company increased its full year oil guidance while holding its natural gas guidance unchanged.

Vulcan Materials Company: A Tale Of Strategic Dominance In The Aggregates Industry! – Major Drivers

After the first-quarter 2024 earnings of Vulcan Materials Company, Vulcan confirmed it is on track to deliver a fourth consecutive year of double-digit adjusted EBITDA growth, despite challenging weather conditions during the quarter.
Adjusted EBITDA for the quarter stood at $323 million, showcasing the durability of the Aggregates business and robust cash generation.
The pricing environment remains optimistic and gross profit-per-ton expanded, driven by the Vulcan Way of Selling and Vulcan Way of Operating disciplines.

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May 17

Daily Brief Industrials: HD Hyundai Heavy Industries , Malaysia Airports Holdings, Mitsui E&S Holdings, Nissin Corp, Cummins Inc, Qantm Intellectual Property, Xylem Inc, easyJet PLC, Howmet Aerospace and more

By Smartkarma Daily Briefs | Daily Briefs, Industrials

In today’s briefing:

Hyundai Heavy Industries Block – Not Well Flagged and Recent Korean Deals Haven’t Done Well
Business On The Fly: Malaysia Airports (MAHB MK)’s RM11.00/Share Offer
Block Deal Sale of 3% Stake in HD Hyundai Heavy Industries
Mitsui E&S – Near Record ROE as Profit Continues to Expand From Multiple Drivers
Nissin Corp (9066) – A Dirt Cheap $400m JP Logistics Company…
Cummins Inc.: These Are The 6 Biggest Factors Influencing Its Performance In 2024 & Beyond! – Financial Forecasts
Qantm Intellectual Property – Binding offer of $1.817/share accepted
Xylem Inc.: Maximizing Value Through Integration! – Major Drivers
EasyJet – Lower Pricing and Fuel Costs Leave Earnings Forecasts Intact – Winter Losses Revisited
Howmet Aerospace Inc.: Adapting To Dynamics In The Fastener Business! – Major Drivers

Hyundai Heavy Industries Block – Not Well Flagged and Recent Korean Deals Haven’t Done Well

By Ethan Aw

HD Korea Shipbuilding & Offshore Engineering (009540 KS) is looking to raise approximately US$258m, via selling 2.6m shares (2.9% of TSO) of HD Hyundai Heavy Industries (329180 KS) stock.
The deal is a large one to digest at 14.6 days of three month ADV.
In this note, we will talk about the placement and run the deal through our ECM framework.

Business On The Fly: Malaysia Airports (MAHB MK)’s RM11.00/Share Offer

Khazanah Nasional, the EPF, the Abu Dhabi Investment Authority, and Global Infrastructure Partners, are offering to buy all shares not already owned in Malaysia Airports Holdings (MAHB MK) at RM11.00/share.
The pre-conditional voluntary Offer price is a 5.77% premium to last close; but a life-time high. The Offeror consortium collectively holds 41.22% of shares out.
The pre-cons include regulatory approvals (in Malaysia, Turkey, Saudi Arabia, and Egypt). The Offer is subject to a 90% acceptance condition; which may be reduced.

Block Deal Sale of 3% Stake in HD Hyundai Heavy Industries

By Douglas Kim

HD Korea Shipbuilding & Offshore Engineering (009540 KS) plans to sell 2.66 million shares (3% of outstanding shares) of HD Hyundai Heavy Industries (329180 KS) in a block deal sale.
We would avoid participating in this block deal sale and we have a Negative view of HD Hyundai Heavy Industries (329180 KS) over the next one year.
After this block deal sale, we believe there could be concerns about HD Korea Shipbuilding & Offshore Engineering potentially selling additional shares of HD HHI in the next 2-3 years.

Mitsui E&S – Near Record ROE as Profit Continues to Expand From Multiple Drivers

By Daniel Tabbush

Profit continues to expand at Mitsui E&S after its transition to a holding company, now reporting over 400% profit growth for 9 months YTD.
The company is doing well to keep its operating costs down, with an improving funding structure and balance, as its revenue grows more than COGs.
We wonder if there will be more revisions upward to profit, with new initiatives and with a more proven recent track record.

Nissin Corp (9066) – A Dirt Cheap $400m JP Logistics Company…

By Altay Capital

Nissin Corp (TYO 9066) bought back 23.6% of their outstanding shares in a single day on May 10th and also doubled their dividend.
The result? The stock went up about 39% (up 72% YTD).
I already had a full sized position in Nissin Corp and despite being up big on it I added to my position at ¥4,265.

Cummins Inc.: These Are The 6 Biggest Factors Influencing Its Performance In 2024 & Beyond! – Financial Forecasts

By Research as a Service (RaaS)

Cummins Inc.’s Q1 2024 financial results revealed a decrease in revenues compared to Q1 2023, standing at $8.4 billion compared to the previous year’s $8.44 billion.
This decrease was, however, marginal at 1%.
EBITDA in Q1 2024 was doubled that of Q1 2023, being $2.6 billion or 30.6% compared to the previous year’s $1.4 billion or 16.1%.

Qantm Intellectual Property – Binding offer of $1.817/share accepted

QANTM Intellectual Property Ltd (ASX:QIP) has announced it has entered into a binding Scheme of Arrangement for an entity associated with Adamantem Capital to acquire all its shares for $1.817/share.
Shareholders will have the opportunity to elect to receive 100% cash or a combination of 50% cash, 50% scrip, subject to a scrip issuance cap of 24%.
The QANTM board can elect to pay a special dividend of up to $0.071/share, which will be included in the offer price and enable shareholders who are eligible to benefit from franking credits of up to $0.03/share.

Xylem Inc.: Maximizing Value Through Integration! – Major Drivers

On the optimistic front, Xylem reported a formidable first-quarter, outperforming expectations across revenue, margin, and earnings per share.
Xylem’s team led high single-digit organic revenue growth attributed to evenly distributed volume and price.
Furthermore, they achieved an almost 300 basis points expansion in adjusted EBITDA margin, driving EPS growth of 14%.

EasyJet – Lower Pricing and Fuel Costs Leave Earnings Forecasts Intact – Winter Losses Revisited

By Neil Glynn

EasyJet on track for record summer performance, helped by lower fuel prices.
However pricing growth moderating and growth itself may be fizzling out.
Winter losses remain highly elevated and we publish new analysis identifying the root causes.

Howmet Aerospace Inc.: Adapting To Dynamics In The Fastener Business! – Major Drivers

Howmet Aerospace has reported an impressive first quarter for 2024, with record revenue, earnings per share, profit, and margin all improving from last year’s figures.
However, there have been some challenges that the company faced, particularly related to the FAA restrictions on the Boeing 737 MAX production.
Despite these challenges, Howmet Aerospace has managed to effectively plan its strategies and make necessary adjustments to continue its growth trajectory.

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May 17

Daily Brief TMT/Internet: Tencent, Sea , Taiwan Semiconductor (TSMC) – ADR, Tokyo Tsushin Inc, Heartcore Enterprises , Godaddy Inc Class A, Worldline SA, ON24 Inc, Cloudflare and more

By Smartkarma Daily Briefs | Daily Briefs, TMT/Internet

In today’s briefing:

Tech Supply Chain Tracker (17-May-2024): Microsoft China AI teams may relocate due to US restrictions.
Sea Limited (SE US) – Making Hay
Taiwan Tech Weekly: All Eyes on Nvidia Results Next Week; Microsoft Copilot Edge AI To Be Showcased?
Tokyo Communications Group (7359 JP) – Actively Pushing to Become a Digital Business Conglomerate
HTCR: HeartCore reports 1st quarter 2024 results and updates investment community on current operations.
GoDaddy Inc.: Utilizing Data and AI for Pricing and Bundling & Other Major Drivers
Worldline (WLN.FP) – Friday, Feb 16, 2024
On24 Inc (ONTF) – Thursday, Feb 15, 2024
Cloudflare Inc.: Strength in Artificial Intelligence (AI) Competency As A Major Growth Catalyst! – Major Drivers

Tech Supply Chain Tracker (17-May-2024): Microsoft China AI teams may relocate due to US restrictions.

By Tech Supply Chain Tracker

Microsoft’s China AI teams relocate due to US rules, focusing on Wi-Fi 7 development for improved connectivity and performance.
Amazon’s stake in Alchip suggests potential synergy in AI tech and expanded market reach, while Kymco launches eco-friendly e-scooter.
Tencent Cloud partners with BRI and Hi Cloud Indo for banking innovation, while Veolia opens first regeneration plant in China for sustainable water treatment. Tron Future secures funding for counter-drone tech.

Sea Limited (SE US) – Making Hay

By Angus Mackintosh

Sea Limited (SE US) booked a strong set of 1Q2024 results from a GMV, revenue and adjusted EBITDA perspective, with fears of greater competition from TikTok failing to materialise.
The company has been investing in growth across all segments, with e-commerce driving and digital financial services driving growth but digital entertainment also seeing a return to growth mode.
Sea Limited continues to focus on its core competitiveness in pricing, improving service quality, and lowering the cost to serve through SPX Express, with advertising becoming a more meaningful contributor.

Taiwan Tech Weekly: All Eyes on Nvidia Results Next Week; Microsoft Copilot Edge AI To Be Showcased?

By Vincent Fernando, CFA

Taiwan Tech and Nvidia Rally Ahead of Nvidia Earnings Next Week; Microsoft Build Conference Could Showcase Edge AI Copilot
Hon Hai: Traditional Server Market Now Adding to AI Growth; Expects Market Share Gains in 2024E
Asustek: Margin Beat, Guides More Upside; Qualcomm for AI PCs; Why Asus Confident in AI PC Up-Cycle

Tokyo Communications Group (7359 JP) – Actively Pushing to Become a Digital Business Conglomerate

By Sessa Investment Research

Tokyo Communications Group’s core businesses currently include its Media business, where it plans and develops free game apps for smartphones and uses a portion of the app’s screen space to generate advertising revenue, and its Platform business, where it operates a consultation service based on a pay-as-you-go model.
The company also functions as an investment company with the aim of achieving company-wide growth while diversifying risks by allocating the cash flow generated by these core businesses into various promising digital businesses.
The company’s main business at the time of its founding consisted of developing and operating free game apps for smartphones.

HTCR: HeartCore reports 1st quarter 2024 results and updates investment community on current operations.

HeartCore Enterprises is an established software development and consulting company based in Tokyo, Japan and operates in five core offerings and solutions.
These include 1) Content Management in which the core product is HeartCore CMS, 2) Digital Transformation which includes Controlio, myInvenio, Apromore and HeartCore Robo, 3) GO IPO, a consulting service that helps Japanese companies prepare for a U.S. Nasdaq public listing, 4) Sigmaways, that specializes in infrastructure modernization, and 5) other revenues.
We believe the company is poised for strong growth due to its entry in the U.S. market and solid results from the Go IPO offering.

GoDaddy Inc.: Utilizing Data and AI for Pricing and Bundling & Other Major Drivers

GoDaddy’s first quarter results for 2024 demonstrate a strong start to the year and contribute to the positive reputation of the company.
Notably, through their free cash flow, the company has achieved growth of 26% year-over-year, thanks to their profitable growth model that converts customer value to shareholder value.
This has been largely driven by a surge in the applications and commerce sector, which has seen bookings growth of 22% and normalized EBITDA margin expansion of 400 basis points.

Worldline (WLN.FP) – Friday, Feb 16, 2024

Worldline (WLN FP) stock dropped over 60% after disappointing Q3 earnings and reduced guidance for 2023
Company scrapped medium-term plan through 2024, facing challenges including costly French restructuring and uncertainty about merchant revenues
Stock considered cheap at 6x multiple of EPS and EBIT in 2025, potential for shares to double or more in next 24-36 months with activist pressure and company hiring advisors. Worldline SA is second-largest merchant acquirer in Europe with focus on merchant, financial, and e-Transactional services.

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

On24 Inc (ONTF) – Thursday, Feb 15, 2024

ON24 is a cloud-based SaaS platform for digital engagement through webinars and virtual events
Company has a low valuation and has seen a significant decline since IPO but shows signs of turnaround
ON24 Elite has generated approximately $171 million in revenue over the last twelve months, making it a high conviction long investment for the author

Cloudflare Inc.: Strength in Artificial Intelligence (AI) Competency As A Major Growth Catalyst! – Major Drivers

Cloudflare Inc., in its Q1 2024 earnings, witnessed a strong start to the year, with the company’s revenues hitting a high of $378.6 million, marking a significant 30% increase on a year-over-year basis.
The company notched up its large customer base to 2,878 signifying a 33% increment year over-year.
It successfully added 122 new large customers, concurrently boosting the revenue contribution from this segment from 62% to 67%.

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May 17

Daily Brief Industrials: HD Hyundai Heavy Industries , Malaysia Airports Holdings, Mitsui E&S Holdings, Nissin Corp, Cummins Inc, Qantm Intellectual Property, Xylem Inc, easyJet PLC, Howmet Aerospace and more

By Smartkarma Daily Briefs | Daily Briefs, Industrials

In today’s briefing:

Hyundai Heavy Industries Block – Not Well Flagged and Recent Korean Deals Haven’t Done Well
Business On The Fly: Malaysia Airports (MAHB MK)’s RM11.00/Share Offer
Block Deal Sale of 3% Stake in HD Hyundai Heavy Industries
Mitsui E&S – Near Record ROE as Profit Continues to Expand From Multiple Drivers
Nissin Corp (9066) – A Dirt Cheap $400m JP Logistics Company…
Cummins Inc.: These Are The 6 Biggest Factors Influencing Its Performance In 2024 & Beyond! – Financial Forecasts
Qantm Intellectual Property – Binding offer of $1.817/share accepted
Xylem Inc.: Maximizing Value Through Integration! – Major Drivers
EasyJet – Lower Pricing and Fuel Costs Leave Earnings Forecasts Intact – Winter Losses Revisited
Howmet Aerospace Inc.: Adapting To Dynamics In The Fastener Business! – Major Drivers

Hyundai Heavy Industries Block – Not Well Flagged and Recent Korean Deals Haven’t Done Well

By Ethan Aw

HD Korea Shipbuilding & Offshore Engineering (009540 KS) is looking to raise approximately US$258m, via selling 2.6m shares (2.9% of TSO) of HD Hyundai Heavy Industries (329180 KS) stock.
The deal is a large one to digest at 14.6 days of three month ADV.
In this note, we will talk about the placement and run the deal through our ECM framework.

Business On The Fly: Malaysia Airports (MAHB MK)’s RM11.00/Share Offer

Khazanah Nasional, the EPF, the Abu Dhabi Investment Authority, and Global Infrastructure Partners, are offering to buy all shares not already owned in Malaysia Airports Holdings (MAHB MK) at RM11.00/share.
The pre-conditional voluntary Offer price is a 5.77% premium to last close; but a life-time high. The Offeror consortium collectively holds 41.22% of shares out.
The pre-cons include regulatory approvals (in Malaysia, Turkey, Saudi Arabia, and Egypt). The Offer is subject to a 90% acceptance condition; which may be reduced.

Block Deal Sale of 3% Stake in HD Hyundai Heavy Industries

By Douglas Kim

HD Korea Shipbuilding & Offshore Engineering (009540 KS) plans to sell 2.66 million shares (3% of outstanding shares) of HD Hyundai Heavy Industries (329180 KS) in a block deal sale.
We would avoid participating in this block deal sale and we have a Negative view of HD Hyundai Heavy Industries (329180 KS) over the next one year.
After this block deal sale, we believe there could be concerns about HD Korea Shipbuilding & Offshore Engineering potentially selling additional shares of HD HHI in the next 2-3 years.

Mitsui E&S – Near Record ROE as Profit Continues to Expand From Multiple Drivers

By Daniel Tabbush

Profit continues to expand at Mitsui E&S after its transition to a holding company, now reporting over 400% profit growth for 9 months YTD.
The company is doing well to keep its operating costs down, with an improving funding structure and balance, as its revenue grows more than COGs.
We wonder if there will be more revisions upward to profit, with new initiatives and with a more proven recent track record.

Nissin Corp (9066) – A Dirt Cheap $400m JP Logistics Company…

By Altay Capital

Nissin Corp (TYO 9066) bought back 23.6% of their outstanding shares in a single day on May 10th and also doubled their dividend.
The result? The stock went up about 39% (up 72% YTD).
I already had a full sized position in Nissin Corp and despite being up big on it I added to my position at ¥4,265.

Cummins Inc.: These Are The 6 Biggest Factors Influencing Its Performance In 2024 & Beyond! – Financial Forecasts

By Research as a Service (RaaS)

Cummins Inc.’s Q1 2024 financial results revealed a decrease in revenues compared to Q1 2023, standing at $8.4 billion compared to the previous year’s $8.44 billion.
This decrease was, however, marginal at 1%.
EBITDA in Q1 2024 was doubled that of Q1 2023, being $2.6 billion or 30.6% compared to the previous year’s $1.4 billion or 16.1%.

Qantm Intellectual Property – Binding offer of $1.817/share accepted

QANTM Intellectual Property Ltd (ASX:QIP) has announced it has entered into a binding Scheme of Arrangement for an entity associated with Adamantem Capital to acquire all its shares for $1.817/share.
Shareholders will have the opportunity to elect to receive 100% cash or a combination of 50% cash, 50% scrip, subject to a scrip issuance cap of 24%.
The QANTM board can elect to pay a special dividend of up to $0.071/share, which will be included in the offer price and enable shareholders who are eligible to benefit from franking credits of up to $0.03/share.

Xylem Inc.: Maximizing Value Through Integration! – Major Drivers

On the optimistic front, Xylem reported a formidable first-quarter, outperforming expectations across revenue, margin, and earnings per share.
Xylem’s team led high single-digit organic revenue growth attributed to evenly distributed volume and price.
Furthermore, they achieved an almost 300 basis points expansion in adjusted EBITDA margin, driving EPS growth of 14%.

EasyJet – Lower Pricing and Fuel Costs Leave Earnings Forecasts Intact – Winter Losses Revisited

By Neil Glynn

EasyJet on track for record summer performance, helped by lower fuel prices.
However pricing growth moderating and growth itself may be fizzling out.
Winter losses remain highly elevated and we publish new analysis identifying the root causes.

Howmet Aerospace Inc.: Adapting To Dynamics In The Fastener Business! – Major Drivers

Howmet Aerospace has reported an impressive first quarter for 2024, with record revenue, earnings per share, profit, and margin all improving from last year’s figures.
However, there have been some challenges that the company faced, particularly related to the FAA restrictions on the Boeing 737 MAX production.
Despite these challenges, Howmet Aerospace has managed to effectively plan its strategies and make necessary adjustments to continue its growth trajectory.

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May 17

Daily Brief Health Care: Eisai Co Ltd, Illumina Inc, Arrowhead Pharmaceuticals , Baxter International, Biora Therapeutics , Cardinal Health, Cocrystal Pharma , Imunon , Iqvia Holdings, Abeona Therapeutics and more

By Smartkarma Daily Briefs | Daily Briefs, Healthcare

In today’s briefing:

Eisai Co Ltd (4523 JP): Leqembi Is Gathering Momentum; Imminent Competition May Spoil the Party
Illumina Inc.: Will Its Market Dominance In Genetic Analysis Last? – Major Drivers
ARWR: Summer Webinar Series to Highlight Development Pipeline
Baxter International: Driving Revenue with New Innovations and Competitive Conversions! – Major Drivers
BIOR: BT-600 Data in June
Cardinal Health: Deep-Rooted Market Relationships & Competitive Edge! – Major Drivers
COCP: Enrollment Complete in Phase 2a Human Challenge Trial of CC-42344
IMNN: Results from OVATION 2 Study in Mid-2024
IQVIA Holdings Inc.: Clinical Trials and AI Enablement As A Major Growth Catalyst! – Major Drivers
Abeona Therapeutics Inc (ABEO) – Thursday, Feb 15, 2024

Eisai Co Ltd (4523 JP): Leqembi Is Gathering Momentum; Imminent Competition May Spoil the Party

By Tina Banerjee

Eisai Co Ltd (4523 JP) has guided for FY25 Leqembi revenue of ¥56.5B (~$366M), with ¥43.5B from U.S., and ¥10.0B from Japan. In FY24, Leqembi reported worldwide revenue of ¥4.2B.
Leqembi is expected to grow significantly due to increase in prescriptions following the progress in the development of AD diagnosis and treatment pathways in the U.S. and Japan.
The current rally can be short lived, as the competitor drug is expected to get FDA approval in 3Q24.

Illumina Inc.: Will Its Market Dominance In Genetic Analysis Last? – Major Drivers

Illumina Inc. has had a strong first quarter of 2024, which included an encouraging performance from its high throughput consumables, increased revenue from strategic partnerships, and the delivery of a number of NovaSeq X instruments.
However, Chief Executive Officer Jacob Thaysen has warned about the persisting uncertain global economic environment and cited customer concerns affecting purchasing decisions.
The year’s results were particularly promising considering the challenges posed by the Coronavirus pandemic.

ARWR: Summer Webinar Series to Highlight Development Pipeline

On May 9, 2024, Arrowhead Pharmaceuticals, Inc. (ARWR) announced financial results for the second quarter of fiscal year 2024 that ended March 31, 2024.
The company currently has 14 clinical stage programs, with 10 of them being wholly owned.
We expect a total of 18 clinical programs by the year end.

Baxter International: Driving Revenue with New Innovations and Competitive Conversions! – Major Drivers

Baxter International’s first quarter 2024 earnings report revealed that the company exceeded its guidance for that term, with 2% growth on a reported basis and 3% at constant currency rates compared to an initial projection of approximately 1% growth.
This performance was underpinned by strong demand and favorable pricing for a broad range of Baxter’s products.
The firm’s performance illustrates the benefits of its recent strategic transformation, with improved global visibility, enhanced accountability, and functional verticalization contributing to its success.

BIOR: BT-600 Data in June

Biora is a drug-device company developing smart pills for GI diseases and enabling oral delivery of biologics.
Its pipeline features two assets: NaviCap, for targeted drug delivery in GI diseases & BioJet, for oral delivery of biologics.
NaviCap is poised for IND clearance and BioJet may advance into the clinic through the efforts of pharmaceutical partners.

Cardinal Health: Deep-Rooted Market Relationships & Competitive Edge! – Major Drivers

Cardinal Health, Inc., a provider of healthcare products and services, reported its Q3 FY2024 financial performance.
The quarter displayed broad-based growth as the company worked on its four strategic priorities, eventually leading to growth and raised outlook for the fiscal year ’24.
The pharmaceutical and specialty solutions business showed strong growth, riding on ongoing stability in pharmaceutical demand.

COCP: Enrollment Complete in Phase 2a Human Challenge Trial of CC-42344

On May 1, 2024, Cocrystal Pharma, Inc. (COCP) announced the completion of enrollment of 78 subjects in the randomized, double blind, placebo controlled Phase 2a human challenge trial of CC-42344.
Study subjects were infected with influenza A and then treated with CC-42344 or placebo.
We anticipate topline results in the second half of 2024.

IMNN: Results from OVATION 2 Study in Mid-2024

On May 13, 2024, Imunon, Inc. (IMNN) announced financial results for the first quarter of 2024 and provided a business update.
The company is on track to report topline results from the OVATION 2 trial of IMNN-001, a DNA-based interleukin-12 (IL-12) immunotherapy as a first-line treatment of locally advanced ovarian cancer, in mid-2024.
In addition, the company announced it has activated the first site for patient recruitment for the Phase 1 study of IMNN-101, a seasonal COVID-19 vaccine candidate.

IQVIA Holdings Inc.: Clinical Trials and AI Enablement As A Major Growth Catalyst! – Major Drivers

On the positive side, the company delivered top and bottom-line numbers either on or slightly above the expectations.
The favorable demand for the industry continued to surge as IQVIA’s revenue grew by 6%.
The clinical side of the business, in particular, saw solid demands from R&DS clients, which boosted their backlog to a new record, growing almost 8% compared to the prior year.

Abeona Therapeutics Inc (ABEO) – Thursday, Feb 15, 2024

Abeona is developing a cell therapy for the rare disease RDEB, with FDA review ongoing and a target action date of May 25th
The therapy is expected to have a significant impact on RDEB patients, who face severe skin and GI issues due to a lack of specific collagen
With a niche business model focused on treating a small patient population, Abeona anticipates generating over $100 million in free cash flow and potentially offering significant upside for investors.

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May 17

Daily Brief Financials: Judo Capital, Huafa Property Services Group, DGB Financial Group, Samsung Life Insurance, Agile Property Holdings, American Capital Agency Corp, Bakkt, ICG Enterprise Trust plc, Defi Technologies , NET Lease Office Properties and more

By Smartkarma Daily Briefs | Daily Briefs, Financials

In today’s briefing:

Quiddity Leaderboard ASX Jun 24: Intra-Review Replacement Surprise Possible
Huafa Property (982 HK)’s Potential Offer
Asian Dividend Gems: DGB Financial Group
Potential Samsung Life Insurance Block Deals, Likely to Be Triggered by E Mart
Morning Views Asia: Medco Energi
Agnc Investment Corp (AGNCP) – Thursday, Feb 15, 2024
Bakkt Holdings, Inc. – 1Q24 Saw Strong Client Crypto Trading
ICG Enterprise Trust – FY’24: portfolio companies performing strongly
DeFi Technologies Inc – Strength Beneath the Surface Raising EPS Estimates
NLOP: Sale Process Continues

Quiddity Leaderboard ASX Jun 24: Intra-Review Replacement Surprise Possible

By Janaghan Jeyakumar, CFA

In this insight, we take a look at the potential index changes for ASX 200, 100, 50, and 20 in the run-up to the June 2024 index rebal event.
We expect one ASX 20 change and two ASX 100 changes during the regular rebalance event.
For the ASX 200 index, there could be two intra-review changes in the month of June 2024 and one of those names could be a surprise.

Huafa Property (982 HK)’s Potential Offer

Huafa Property Services Group (982 HK) is currently suspended pursuant to the Takeovers Code.
This SOE-backed property management play recently announced its highest-ever earnings.
Shares have gained ~32% in the past fortnight, touching a three-year high. IF an Offer were to unfold, expect an Offer Price ~10% above the last close.

Asian Dividend Gems: DGB Financial Group

By Douglas Kim

On 16 May, it was reported that the Korean financial regulators have approved DGB Daegu Bank to become the 7th commercial bank in Korea.
DGB Daegu Bank is the core entity of DGB Financial Group (139130 KS) which currently has a market cap of 1.4 trillion won (US$1.0 billion).
This change will allow the company to expand in the more lucrative metropolitan Seoul and other regions in Korea. We have a positive view of DGB Financial Group (139130 KS).

Potential Samsung Life Insurance Block Deals, Likely to Be Triggered by E Mart

By Sanghyun Park

Talks circulate that E-Mart may sell its 5% stake in Samsung Life Insurance, valued around ₩1T, due to fundraising needs linked to SSG.com investors’ put options.
Initially, Starbucks Korea was a potential sale, but U.S. HQ approval makes it unfeasible. Shinsegae L&B and Food weren’t enough to raise funds, leading E-Mart to focus on Samsung Life.
E-Mart’s block deal timing is uncertain due to potential legal disputes over unmet put option conditions, yet recent local market discussions suggest E-Mart may avoid legal battles.

Morning Views Asia: Medco Energi

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.

Medco Energi

Agnc Investment Corp (AGNCP) – Thursday, Feb 15, 2024

Author discusses high-return opportunity in mortgage REIT preferreds, focusing on AGNC Investment Corp’s Series F preferred
Systematic mispricing allows for 13-20% IRRs over 12-36 months with fairly safe investment
Emphasis on safety and high yield of mREIT preferreds, highlighting potential for significant returns while minimizing borrower credit risk

Bakkt Holdings, Inc. – 1Q24 Saw Strong Client Crypto Trading

By Water Tower Research

President and CEO Andy Main focused on Bakkt’s three key priorities for 2024 as the company saw strong 1Q24 crypto trading activity with notional traded volume up 324% sequentially.
The company is cutting costs, and it expects to have between $42 million and $57 million in cash at the end of 2024.
Objectives for 2024 include broadening client networks, expanding products, and expense management.

ICG Enterprise Trust – FY’24: portfolio companies performing strongly

By Hardman & Co

The key message from ICGT’s FY’24 results (to January) is the continued strength of the operating companies, which keep delivering mid-teen EBITDA growth.
Despite challenging markets, margins have widened, which should help allay some concerns over the impact of the higher-rate environment.
Target returns are “broadly unchanged”.

DeFi Technologies Inc – Strength Beneath the Surface Raising EPS Estimates

Key 1Q24 takeaways include: 1) stepped up earnings power following recent deleveraging that cuts interest expense and unlocks higher-yielding AUM 2) sustainable demand for Valour’s ETPs despite near-term crypto volatility and 3) ongoing product development focused on innovative and differentiated offerings that facilitate access and exposure to digital assets via secure, liquid, and yield-bearing vehicles.
We are raising our 2024 and 2025 EPS estimates from $0.08/$0.40 to $0.12/$0.51 reflecting higher trading/staking fees, as DEFTF’s revenue model continues to evolve, combined with lower interest expense.
Stepping back, we believe DEFTF remains well positioned for accelerating growth driven by the firm’s diversified digital assets platform, rising demand for crypto ETPs more broadly, ongoing product development, durable regulatory competitive advantages, and an increasingly potent earnings profile.

NLOP: Sale Process Continues

By Hamed Khorsand

NLOP has continued to reduce the number of properties it owns through further dispositions during the first quarter and so far through the second quarter.
The pace of selling is likely to continue until NLOP has reduced its mezzanine and senior secured mortgage debt to zero.
AFFO was $20.0 million, in the first quarter, which was more than we were expecting.

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May 17

Daily Brief Consumer: Ryohin Keikaku, L’Occitane, Kansai Super Market, Alibaba Group Holding , Giant Biogene, Miniso, Lobo EV Technologies, Pvh Corp and more

By Smartkarma Daily Briefs | Consumer, Daily Briefs

In today’s briefing:

Sep24 Nikkei 225 Rebal – Still 1 ADD (Ryohin Keikaku), 1 DELETE, and 1 Very Large Very Dark Horse
L’Occitane (973 HK): Dilemma as the Share Alternative Pre-Condition Met
L’Occitane (973 HK): On Activism And The Scrip Alternative
Kansai Food Market (9919) Minorities Get Squeezed into H2O Retailing (8242)
Alibaba (9988 HK): Core Segments Moving Into The Right Direction
Giant Biogene Placement – Has Been Doing Well but Doesn’t Need the Cash
[Alibaba (BABA US, BUY, TP US$85) Review]: Positive Transformation Still Underway…BUY on Dip
[Miniso Group (MNSO US, BUY, TP US$34) Earnings Review]: No News Is Good News…Maintain BUY
LOBO: Initiating Coverage of Innovative Global E-Bike Manufacturer
Pvh Corp – VNCE: Upside Clarity Increasing; Initiating Coverage with a Buy Rating, $3 PT

Sep24 Nikkei 225 Rebal – Still 1 ADD (Ryohin Keikaku), 1 DELETE, and 1 Very Large Very Dark Horse

The Sep 2024 Nikkei 225 Review data set is mostly done, and one can interpolate results relatively accurately. It still leaves us with one ADD, one DELETE, and capping fun.
Recently, Yanai-san sold more Fast Retailing (9983 JP). There is more Real World Float- more active holders own more stock (which may mean less interest to buy later).
There is a dark horse candidate which is on investor radar for other reasons. It would not be out of the question, but the precedent is old, and different.

L’Occitane (973 HK): Dilemma as the Share Alternative Pre-Condition Met

By Arun George

L’Occitane (973 HK) announced that the share alternative pre-condition was satisfied. However, The share alternative offer is at the offeror’s discretion and with the consent of the financing parties.
The share alternative offer poses a dilemma due to the requirement to satisfy the minimum acceptance condition while not breaching the upper limit of the share alternative offer.
The share alternative offer is a play on higher multiples by relisting the business. At HK$50.00, L’Occitane would trade in line with its median global beauty peers’ multiples.

L’Occitane (973 HK): On Activism And The Scrip Alternative

In the 29th April HK$34/share VGO announcement, a share scrip alternative may be afforded if 10% of L’Occitane (973 HK)‘s disinterested shareholders expressed interest by the 15th May
That pre-condition has been satisfied. However, we are none the wiser whether you receive shares of the levered-up Bidco, at some undetermined scrip ratio; or keep shares of L’Occitane as-is.
Some shareholders, like Butler Hall, considered terms low-balled. They now have the option to rollover. But there are still other large activists on the register, whose intentions are not known.

Kansai Food Market (9919) Minorities Get Squeezed into H2O Retailing (8242)

Two and a half years ago, H2O Retailing (8242 JP) the 10.9% owner, arranged to merge its own units into Kansai Super Market (9919 JP) to get control. OK Corp complained.
OK Corp offered to double the price in a Tender Offer but wouldn’t go hostile. KSM/KFM said no go. Shares popped to ¥2,000+ then when the deal failed, they fell.
H₂O ended up with 58% (64.9% of votes now). The ultimate goal was to swallow it paying zero premium. On 15 May, it announced the merger to do just that.

Alibaba (9988 HK): Core Segments Moving Into The Right Direction

By Steve Zhou, CFA

On first look, Alibaba Group Holding (9988 HK) missed on margins in 4QFY24 as adjusted EBITA declined by 5% yoy.
We can give the company the benefit of the doubt given that the important segments of the company are heading into the right direction.
Alibaba returned USD13.4bn and USD16.5bn to shareholders in FY23 and FY24, compared to the current market cap of USD197bn

Giant Biogene Placement – Has Been Doing Well but Doesn’t Need the Cash

By Sumeet Singh

Giant Biogene (2367 HK) aims to raise up to US$205m via a top-up placement.
We have followed the company since listing and its recent performance has been great. Although it doesn’t seem to need the cash.
In this note, we will run the deal through our ECM framework and talk about the recent updates.

[Alibaba (BABA US, BUY, TP US$85) Review]: Positive Transformation Still Underway…BUY on Dip

By Ying Pan

BABA reported CY1Q24 top line, GAAP operating profit and non-GAAP net income 0.9%, (4.6%) and (6.7%) vs. consensus, and in-line, in-line, (6.9%) vs. our estimate;
Results reaffirmed our positive view as increased investment is leading to significant improvement in key businesses: (1) Taobao/Tmall stabilized, (2) overseas e-commerce accelerated along with overseas AntFin and Cainiao
We expect pay-off from its strategy shift in 2H of the year. Spin-off, dividends,and share buy-backs provide valuation support until then.We maintain BUY and US$85 TP, implying 9.5x CY25 P/E.

[Miniso Group (MNSO US, BUY, TP US$34) Earnings Review]: No News Is Good News…Maintain BUY

By Eric Wen

Miniso (MNSO) reported C1Q24 revenue in-line with our estimate/consensus. Non-GAAP NI beat our estimate/consensus by 4.2%/2.6%, mainly due to better gross margin from IP sales.
Company cited pressure on profits in C2Q24 due to store expansion, yet we still believe MNSO can maintain an OPM of 20% for entire 2024
We maintain a BUY rating on the stock and maintain TP at US$34/ADS

LOBO: Initiating Coverage of Innovative Global E-Bike Manufacturer

By Small Cap Consumer Research

LOBO EV Technologies (LOBO) designs, develops, and manufactures micro mobility electric vehicles (EVs) and sells products through a broad-based dealership network in China, Southeast Asia, Latin America, and Europe.
The company’s product lineup includes e-Bicycles, e-Mopeds, e-Tricycles, and electric off-highway four-wheeled shuttles (golf carts and scooters for elderly and disabled persons).
In addition, LOBO provides automobile information and entertainment software development and design services.

Pvh Corp – VNCE: Upside Clarity Increasing; Initiating Coverage with a Buy Rating, $3 PT

We are initiating coverage of Vince Holding Corp., a leading ready to wear brand, offering luxury men’s and women’s apparel, accessories and home goods via their own stores, online and in wholesale partnerships with key retailers, with a Buy rating and $3 price target, or 6.5X our FY25 EBITDA projection.
We believe, after a momentous FY23, where the company formed a partnership with Authentic Brands Group, a leading brand licensor, materially recast their balance sheet with debt paydowns and maturity extensions, and began a $30 million transformation program, Vince is ready to shine once again in 2HFY24 and return to top line growth, with higher returns and a more enduring business model.
As such, and with investor skepticism remaining a drag, we view the longer term risk/reward as compelling, and are initiating coverage of VNCE with a Buy rating and $3 price target.

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May 17

Most Read: Japan Post Holdings, Alibaba Group Holding , BYD Electronics, Ryohin Keikaku, L’Occitane, HD Hyundai Heavy Industries , Malaysia Airports Holdings, Kansai Super Market and more

By Smartkarma Daily Briefs | Daily Briefs, Most Read

In today’s briefing:

Japan Post Holdings (6178) – Bigger Better Bullish Buyback With Caveats
Alibaba (9988 HK): Dual Primary Listing & Potential Southbound Flows
Hang Seng Index (HSI) Rebalance Preview: Inclusion Candidates for June
Sep24 Nikkei 225 Rebal – Still 1 ADD (Ryohin Keikaku), 1 DELETE, and 1 Very Large Very Dark Horse
L’Occitane (973 HK): Dilemma as the Share Alternative Pre-Condition Met
Hyundai Heavy Industries Block – Not Well Flagged and Recent Korean Deals Haven’t Done Well
L’Occitane (973 HK): On Activism And The Scrip Alternative
Business On The Fly: Malaysia Airports (MAHB MK)’s RM11.00/Share Offer
Kansai Food Market (9919) Minorities Get Squeezed into H2O Retailing (8242)
Alibaba (9988 HK): Core Segments Moving Into The Right Direction

Japan Post Holdings (6178) – Bigger Better Bullish Buyback With Caveats

Today, Japan Post Holdings (6178 JP) announced results (and Mar25 guidance) as did its subsidiaries Japan Post Insurance (7181 JP) and Japan Post Bank (7182 JP).
There are a number of interesting things in all the announcements/presentations but the most interesting one for JPH holders is a big buyback. Another one.
The company has announced a ¥350bn buyback. It is larger than last year’s (¥300bn) buyback and has another important difference.

Alibaba (9988 HK): Dual Primary Listing & Potential Southbound Flows

By Brian Freitas

Along with its fiscal 2024 results, Alibaba (9988 HK) announced that they were preparing for their primary listing in Hong Kong and the conversion was expected to complete by August.
If the conversion is completed by the end of August, Alibaba (9988 HK) could be added to Southbound Stock Connect in September and that could bring in significant flows.
We do not forecast any passive inflows due to the change with Alibaba Group Holding (9988 HK) capped at 8% of the HSI, HSCEI and HSTECH indices.

Hang Seng Index (HSI) Rebalance Preview: Inclusion Candidates for June

By Brian Freitas

Post market close tomorrow, Hang Seng Indexes will announce the changes for the Hang Seng Index (HSI INDEX) that will be implemented at the close on 7 June.
There were no constituent changes to the index in March. We highlight ten profitable and eligible stocks that could be added to the index in June.
Changes to the Hang Seng Industry Classification System (HSICS) could lead to inclusions for the Information Technology industry while there could also be inclusions for the underweighted Healthcare industry.

Sep24 Nikkei 225 Rebal – Still 1 ADD (Ryohin Keikaku), 1 DELETE, and 1 Very Large Very Dark Horse

The Sep 2024 Nikkei 225 Review data set is mostly done, and one can interpolate results relatively accurately. It still leaves us with one ADD, one DELETE, and capping fun.
Recently, Yanai-san sold more Fast Retailing (9983 JP). There is more Real World Float- more active holders own more stock (which may mean less interest to buy later).
There is a dark horse candidate which is on investor radar for other reasons. It would not be out of the question, but the precedent is old, and different.

L’Occitane (973 HK): Dilemma as the Share Alternative Pre-Condition Met

By Arun George

L’Occitane (973 HK) announced that the share alternative pre-condition was satisfied. However, The share alternative offer is at the offeror’s discretion and with the consent of the financing parties.
The share alternative offer poses a dilemma due to the requirement to satisfy the minimum acceptance condition while not breaching the upper limit of the share alternative offer.
The share alternative offer is a play on higher multiples by relisting the business. At HK$50.00, L’Occitane would trade in line with its median global beauty peers’ multiples.

Hyundai Heavy Industries Block – Not Well Flagged and Recent Korean Deals Haven’t Done Well

By Ethan Aw

HD Korea Shipbuilding & Offshore Engineering (009540 KS) is looking to raise approximately US$258m, via selling 2.6m shares (2.9% of TSO) of HD Hyundai Heavy Industries (329180 KS) stock.
The deal is a large one to digest at 14.6 days of three month ADV.
In this note, we will talk about the placement and run the deal through our ECM framework.

L’Occitane (973 HK): On Activism And The Scrip Alternative

In the 29th April HK$34/share VGO announcement, a share scrip alternative may be afforded if 10% of L’Occitane (973 HK)‘s disinterested shareholders expressed interest by the 15th May
That pre-condition has been satisfied. However, we are none the wiser whether you receive shares of the levered-up Bidco, at some undetermined scrip ratio; or keep shares of L’Occitane as-is.
Some shareholders, like Butler Hall, considered terms low-balled. They now have the option to rollover. But there are still other large activists on the register, whose intentions are not known.

Business On The Fly: Malaysia Airports (MAHB MK)’s RM11.00/Share Offer

Khazanah Nasional, the EPF, the Abu Dhabi Investment Authority, and Global Infrastructure Partners, are offering to buy all shares not already owned in Malaysia Airports Holdings (MAHB MK) at RM11.00/share.
The pre-conditional voluntary Offer price is a 5.77% premium to last close; but a life-time high. The Offeror consortium collectively holds 41.22% of shares out.
The pre-cons include regulatory approvals (in Malaysia, Turkey, Saudi Arabia, and Egypt). The Offer is subject to a 90% acceptance condition; which may be reduced.

Kansai Food Market (9919) Minorities Get Squeezed into H2O Retailing (8242)