Daily Briefs

United States Steel Corporation (U.S. Steel) has reported its financial results for the fourth quarter and full year of 2023, showcasing another period of robust financial performance despite the challenging global economic environment.
The company ended the year with net earnings of $895 million, or $3.56 per diluted share, and adjusted net earnings for the fourth quarter were $167 million, or $0.67 per diluted share.
These results were bolstered by better performance across both the Mini Mill and Tubular segments, and favorable year-end inventory adjustments in the North American Flat-Rolled segment.

Boustead: A Real Deep Value Play

By Pyari Menon

Given Boustead Singapore Limited (BOCS SP) operating metrics just a minimal 1-2% growth through cycles should offer at least 50% upside.
Boustead is a solid investment with diversified exposure in energy, geospatial, and real estate sectors, with a focus on sustainability, and steady project pipeline supporting long-term visibility.
Boustead Singapore Limited (BOCS SP) is a deep value play, which prioritizes stability and risk mitigation over aggressive growth.

Eastman Chemical Company: Will The Expansion & Flexibility in Production Capabilities Be A Critical Growth Accelerator? – Major Drivers

Eastman’s latest discussion primarily centered on navigating the prevalent market challenges and exploiting growth through innovation and strategic initiatives.
As the world continues to reel under economic pressures, including high inflation and interest rates, Eastman envisions a recovery trajectory reinforced by strategic product developments and market expansions.
Eastman indicates a mixed financial environment with several moving parts.

Nagaoka International (6239 JP): Q1 FY06/25 flash update

Q1 FY06/25 revenue increased 20.3% YoY to JPY1.8bn, with operating profit up 18.1% YoY to JPY261mn.
TRANSFORM 2027 targets JPY16.0bn revenue by FY06/27, with Water-related business aiming for JPY8.3bn (CAGR 41.3%).
Nagaoka plans JPY6.0bn for growth investments, maintaining a 20% dividend payout ratio with a progressive policy.

Select Water Solutions, Inc. – High-Margin Water Infrastructure Segment Leads Growth Trajectory

By Water Tower Research

Y/Y Water Infrastructure segment revenue increased 41% in 3Q24 and gross profit before D&A increased 99%.
The strong profit performance allowed Select to overcome a 5% Y/Y total revenue decrease to generate an 11% total gross profit increase.
Water Infrastructure gross profit before D&A margin increased to 56.7% in 3Q24 from 51.0% in 2Q24 and 40.1% in 3Q23.

Arq, Inc. – Strong 3Q Highlights Improving PAC Performance

By Water Tower Research

Arq reported 3Q24 revenue of $34.8 million and EBITDA of $5.1 million, up from $29.8 million in revenue and $0.9 million in EBITDA in 3Q23.
The strong results were driven by further PAC pricing increases (sixth consecutive quarter of >10% ASP increases), operating efficiency, and the benefits of a more diversified customer base.
While 3Q is typically the strongest seasonal quarter, the results far surpassed 3Q23 and 3Q22, showing the success of the company’s efforts to restructure its PAC business through improved contract terms and operating execution.

Vaalco Energy (NYSE: EGY): High production. Balance sheet strength ahead of expectations

By Auctus Advisors

• 3Q24 WI production was 26,709 boe/d.
This is above our expectations of 25,740 boe/d and towards the higher end of the guidance range of 24.9-27.6 mboe/d.
• Vaalco has narrowed its FY24 production guidance range from 23.6-26.5 mboe/d to 24.1-25.4 mboe/d with lower capex (US$110-130 mm vs US$115-140 mm previously).

Condor Energies Inc. (TSX: CDR): Good quarter. Positive signals at high value LNG project for the mobility sector

By Auctus Advisors

• 3Q24 production was 10,010 boe/d; which is line with our expectations.
• Production has increased to 10,706 bo/ed in the last seven days following low cost work-over activities.
• With the expansion of the workover programme upon the arrival of the second work-over rig and the installation of additional in-field flowline water separation systems, we expect that this trend will continue.

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Nov 14

Daily Brief TMT/Internet: Tencent, Sea , Blackbuck, ARM Holdings, Hon Hai Precision Industry, Silergy Corp, Nexon, Vontier Corp, Western Digital, Tokyo Electron and more

By Smartkarma Daily Briefs | Daily Briefs, TMT/Internet

In today’s briefing:

Tencent (700 HK): 3Q24, Better Game Revenue and Better Gross Margins
Sea (SE US): Strong 3Q, Upbeat Management Talk Fires up the Stock
Zinka Logistics Pre-IPO – Continued Financial Underperformance in a Highly Fragmented Market
Episode 93: Arm/QCOM Earnings, Trump Presidency Impact on Semis, NVDA Preview
Tech Supply Chain Tracker (14-Nov-2024): Foxconn reforms boost Sharp’s profits.
Silergy (6415.TT): It Will Grow in 4Q24, While Auto Is Expected to Grow to 15% by the End of 2025.
Nexon (3659) | Down 17% on Quarterly Miss!
Vontier Corporation: An Analysis Of Its Market Expansion & Strategic Contracts & Other Major Drivers
Peloton Interactive Inc.: Can Its Strategic Marketing & Customer Acquisition Up Their Game? – Major Drivers
Tokyo Electron (8035 JP): 1H FY03/25 flash update

Tencent (700 HK): 3Q24, Better Game Revenue and Better Gross Margins

By Ming Lu

In 3Q24, game revenue increased by 13% YoY, higher than our estimate, 9% YoY.
The gross margins of all business lines improve in 3Q24, especially “others”.
We set the upside at 50% and the price target at HK$605 for the end of 2025. Buy.

Sea (SE US): Strong 3Q, Upbeat Management Talk Fires up the Stock

By Devi Subhakesan

Sea (SE US) ‘s management expects all three business segments – ecommerce, financial services and entertainment – to deliver high growth and profitability in 2025, supported by strong macro-eceonomic tailwind.
It’s GAAP revenue was US$4.3 billion, up 30.8% year-on-year and net income was US$153.3 million, as compared to total net loss of US$(144.0) million for 3Q2023.
Its e-commerce business achieved positive adjusted EBITDA in 3Q 2024 in both Asia markets and Brazil.

Zinka Logistics Pre-IPO – Continued Financial Underperformance in a Highly Fragmented Market

By Akshat Shah

Blackbuck (1355652D IN) is looking to raise around US$130m in its India IPO.
Zinka Logistics (Blackbuck) is India’s largest digital platform for truck operators (in terms of number of users), with 963,345 truck operators transacting on its platform in FY24, as per Redseer.
In this note, we talk about the company’s historical performance.

Episode 93: Arm/QCOM Earnings, Trump Presidency Impact on Semis, NVDA Preview

By The Circuit

ARM reported good numbers with steady guidance for the coming quarter.
Qualcomm’s earnings performed well, but concerns exist over rising costs and potential loss of customers.
Uncertainty surrounds US government policies on semiconductor manufacturing and trade with China, impacting industry players like Intel and Nvidia.

This content is sourced through publicly available sources and has been machine generated. Information displayed is for general informational purposes only.

Tech Supply Chain Tracker (14-Nov-2024): Foxconn reforms boost Sharp’s profits.

By Tech Supply Chain Tracker

Foxconn’s reforms at Sharp result in significant profit growth in 2Q24.
Taiwan supply chains brace for impact of Trump’s imminent global tariffs.
Apple to boost iPhone production in India following Trump victory, taking advantage of evolving global trade dynamics.

Silergy (6415.TT): It Will Grow in 4Q24, While Auto Is Expected to Grow to 15% by the End of 2025.

By Patrick Liao

In the 3rd quarter of 2024, revenue was NT$4,284 million, the gross margin (GM) was 55%, the operating profit margin (OPM) was 24%, and the net margin was 15%.
The Gen-4 product line is ramping up and is expected to contribute around 4% of total revenue by the end of 2025.
Chinese current economic stimulus programs may impact demand in the Consumer segment.

Nexon (3659) | Down 17% on Quarterly Miss!

By Mark Chadwick

Nexon’s 3Q24 earnings report saw its stock dip -17% as revenue missed guidance and foreign exchange losses weighed on the bottom line.
Nexon’s operating profit rose +11% y/y to ¥51 billion, with an operating margin of 38%
The stock is trading at 8.5x EBITDA, which makes it very attractive versus the sector

Vontier Corporation: An Analysis Of Its Market Expansion & Strategic Contracts & Other Major Drivers

Vontier Corporation delivered a strong performance in the third quarter of 2024, with notable achievements in sales growth and operational improvements.
The company reported a 3% increase in core sales, exceeding the high end of their guidance range, indicative of robust momentum across their convenience retail and fueling end markets.
This success was bolstered by the increased adoption of their market-leading technologies, particularly in the Environmental & Fueling and Mobility Technologies segments.

Peloton Interactive Inc.: Can Its Strategic Marketing & Customer Acquisition Up Their Game? – Major Drivers

Peloton’s earnings for the first quarter of fiscal 2025 demonstrate a balanced perspective of challenges and opportunities as the company maneuvers through a critical phase marked by leadership transitions and strategic realignment.
The announcement that Peter Stern will assume the role of CEO and President starting January 1, 2025, heralds a potentially transformative phase for Peloton.
Peter Stern brings substantial experience from previous roles at major corporations, likely setting a strong foundation for leadership and strategic direction.

Tokyo Electron (8035 JP): 1H FY03/25 flash update

In 1H FY03/25, the company reported revenue of JPY1.12tn, operating profit of JPY313.9bn, and net income of JPY243.9bn.
The revised full-year forecast for FY03/25 includes revenue of JPY2.40tn and operating profit of JPY680.0bn.
The company announced a JPY70.0bn share buyback plan, acquiring up to 3.5mn shares, representing 0.8% of outstanding shares.

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Nov 14

Daily Brief Industrials: Hyundai Engineering & Construction, SharkNinja , Azoom, COPRO-HOLDINGS Co Ltd, Fastenal Co, Hydrofarm Holdings Group Inc, CBAK Energy Technology , Ichiken Co Ltd, Punch Industry, Rix Corp and more

By Smartkarma Daily Briefs | Daily Briefs, Industrials

In today’s briefing:

Trump Trade: Korean Construction Vs Military Stocks Amid Potential End of War in Ukraine?
SharkNinja Inc.: Its Efforts Towards Product Innovation & Diversification & Major Drivers
Azoom (3496 JP): Full-year FY09/24 flash update
COPRO-HOLDINGS Co Ltd (7059 JP): 1H FY03/25 flash update
Fastenal: A Nuts & Bolts Success Story – [Business Breakdowns, EP.191]
Hydrofarm Holdings Group, Inc – Strong Cost Controls Preserve Positive Adjusted EBITDA…
CBAT: Navigating choppy waters in the battery market. Adjusting our model and target to reflect these challenges.
Ichiken Co Ltd (1847 JP): 1H FY03/25 flash update
Punch Industry (6165 JP): 1H FY03/25 flash update
Rix Corp (7525 JP): 1H FY03/25 flash update

Trump Trade: Korean Construction Vs Military Stocks Amid Potential End of War in Ukraine?

Although it is UNCERTAIN when the wars in Ukraine and the Middle East will end, if these wars indeed come to an end, this could POSITIVELY IMPACT Korean construction sector.
The end of the wars in Ukraine and the Middle East is likely to NEGATIVELY IMPACT the Korean military/defense sector.
The major Korean construction companies have low valuation multiples. On the other hand, the major Korean military/defense companies have high valuation multiples.

SharkNinja Inc.: Its Efforts Towards Product Innovation & Diversification & Major Drivers

SharkNinja’s third quarter of 2024 financial performance highlighted several strengths and strategic initiatives that point to its robust market position and growth trajectory, balanced by some areas of concern that underline potential risks.
Displaying a strong performance in adjusted net sales and adjusted EBITDA growth, SharkNinja reported substantial year-over-year increases, demonstrating resilience and strategic agility in a fluctuating economic environment.
The global teams’ efforts mirrored in a 35% rise in adjusted net sales and 26% growth in adjusted EBITDA, showcasing strong operational execution and market responsiveness.

Azoom (3496 JP): Full-year FY09/24 flash update

Sales increased by 27.4% YoY, with the Idle Asset Utilization segment driving growth, achieving JPY10.0bn in sales.
The company forecasts FY09/25 sales of JPY12.5bn, operating profit of JPY2.5bn, and net income of JPY1.6bn.
Visualization segment reported full-year sales of JPY214mn, focusing on technical skill improvement and expanding the sales team.

COPRO-HOLDINGS Co Ltd (7059 JP): 1H FY03/25 flash update

Revenue increased to JPY14.2bn (+27.7% YoY), with operating profit at JPY1.2bn (+67.9% YoY) and recurring profit at JPY1.3bn (+55.1% YoY).
Net income attributable to owners of the parent reached JPY798mn, marking a 56.4% year-over-year increase.
Technician numbers grew by 967 (+27.5% YoY) to 4,482, driven by enhanced in-house recruitment capabilities.

Fastenal: A Nuts & Bolts Success Story – [Business Breakdowns, EP.191]

By Business Breakdowns

Fastenal started as a small retailer in Minnesota and has evolved into a mission critical supply chain partner for industrial customers
The company today has nearly USD8 billion in sales and a market capitalization of nearly USD50 billion
The company’s founder Bob Kierlin has played a significant role in the company’s success

This content is sourced through publicly available sources and has been machine generated. Information displayed is for general informational purposes only.

Hydrofarm Holdings Group, Inc – Strong Cost Controls Preserve Positive Adjusted EBITDA…

By Water Tower Research

Hydrofarm is a non-plant touching, NASDAQ-listed leading manufacturer and distributor of branded hydroponics equipment and supplies for controlled environment agriculture (CEA).
The company’s products consist primarily of consumable products, such as nutrients and grow media, and durable products, such as grow lights, climate control solutions, rolling racks/benches, and various other equipment and supplies.
Hydrofarm reported 3Q24 results, with revenue of $44.0 million, lower than our estimate of $46.5 million.

CBAT: Navigating choppy waters in the battery market. Adjusting our model and target to reflect these challenges.

By Zacks Small Cap Research

CBAK Energy Technology’s core battery business continues to perform admirably in the face of a broader industry downturn.
There are several positive catalysts on the horizon for CBAK which are partially offset by the current industry challenges and the continued weakness of the HiTrans raw material business.
Both of the company’s battery facilities are now operating profitably and the company is poised to materially increase capacity in 2025.

Ichiken Co Ltd (1847 JP): 1H FY03/25 flash update

Ichiken’s FY03/25 forecast: Revenue JPY98.0bn, operating profit JPY4.8bn, recurring profit JPY4.7bn, net income JPY3.2bn.
Medium-term targets FY2023-FY2025: Revenue JPY93bn, OPM 5.0%, ROE 8.0%, dividend payout ratio 30%, total investment JPY10bn.
Long-term targets FY2030: Revenue JPY100bn, OPM 5.0%, ROE 8.0%, equity ratio 50%, total investment JPY30bn.

Punch Industry (6165 JP): 1H FY03/25 flash update

Revenue increased to JPY20.0bn (+4.5% YoY), with growth in China (+15.8% YoY) and declines in Japan and Southeast Asia.
Operating profit rose to JPY692mn (+32.8% YoY), while recurring profit decreased to JPY606mn (-25.0% YoY).
Full-year revenue forecast revised to JPY40.8bn, with downward revisions for operating, recurring profit, and net income projections.

Rix Corp (7525 JP): 1H FY03/25 flash update

In 1H FY03/25, revenue increased 9.9% YoY to JPY26.0bn, while operating profit decreased 3.5% YoY.
FY03/25 earnings forecast: revenue JPY52.0bn (+4.5% YoY), operating profit JPY3.5bn (-2.7% YoY), dividend JPY120.0/share.
Segment profits declined in Machine Tools, Rubber & Tire, and Electronics & Semiconductor; increased in Steel, Automotive, Environment.

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Nov 14

Daily Brief Consumer: Seven & I Holdings, Zomato, Sands China, GMM Music, Wendy’s Co/The, Gentex Corp, Autonation Inc, Shakey’s Pizza, Borgwarner Inc, TSE Tokyo Price Index TOPIX and more

By Smartkarma Daily Briefs | Consumer, Daily Briefs

In today’s briefing:

Seven & I Holdings (3382 JP): The Rumoured MBO Price Underscores the Trapped Value
INDIA: Index Changes Due to the 45 New Additions to the F&O Segment
Technically Speaking, Breakouts and Breakdowns: HONG KONG (NOVEMBER 13)
GMM Group Pre-IPO: Tuning into Thailand’s Digital Music Boom
The Wendy’s Company: Menu Innovation & Diversification As A Critical Growth Lever! – Major Drivers
Gentex Corporation: Expansion into Global Automotive Markets As A Critical Growth Lever! – Major Drivers
AutoNation Inc.: Strategic Capital Allocation Driving Our Optimism! – Major Drivers
Shakeys Pizza (PIZZA PM) Q3 2024 Concall: An Ok Result, Implied NPAT Guidance for Q4FY24 >60% YoY
The Power of Propulsion: How BorgWarner Is Leading the Electric Vehicle Revolution! – Major Drivers
Parent-Subsidiary Listings Are a Microcosm of Japanese Stocks: Change to Value-Creation Is Long Away

Seven & I Holdings (3382 JP): The Rumoured MBO Price Underscores the Trapped Value

By Arun George

In response to media reports, Seven & I Holdings (3382 JP) confirmed receiving a non-binding proposal from Junro Ito (founder’s son) and Ito-Kogyo. No terms were disclosed.
Bloomberg suggests an MBO deal worth up to JPY9 trillion (US$58 billion), which implies an offer of JPY3,467.89, a 39.3% premium to the last close price.
The “white knight” MBO undermines Alimentation Couche-Tard (ATD CN)’s offer and is a proxy for the restructuring plan’s value. Couche-Tard will likely walk if a binding MBO proposal emerges.

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

By Brian Freitas

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

Technically Speaking, Breakouts and Breakdowns: HONG KONG (NOVEMBER 13)

By David Mudd

Although Hong Kong markets have slumped after Trump’s election, mainland China’s markets have gained. Southbound net buying of HK stocks hit a 2024 high on the day Trump won.
Sands China (1928 HK) had a breakout from a double top as Macau recorded good Golden Week arrivals. Blue Moon Group Holdings (6993 HK) had a breakout after 3 years.
CanSino Biologics (6185 HK) formed a breakout after a new vaccine was approved and it reported better results. Haidilao International Holding (6862 HK) share price advanced as it expands stores.

GMM Group Pre-IPO: Tuning into Thailand’s Digital Music Boom

By Nicholas Tan

GMM Music (2465778D TB) is looking to raise at least US $100m in its upcoming Thai IPO.
It is part of the largest, sprawling, public listed media conglomerate, GMM Grammy, and operates a pure play music business covering the entire value chain.
In this note, we look at the firm’s past performance.

The Wendy’s Company: Menu Innovation & Diversification As A Critical Growth Lever! – Major Drivers

The Wendy’s Company recently held its fiscal 2024 third quarter earnings call, which provided in-depth insights into the company’s performance and strategic initiatives.
The CEO, Kirk Tanner, and CFO, Gunther Plosch, discussed various aspects of the business operations, highlighting key areas of growth as well as challenges faced during the quarter.
During the third quarter, The Wendy’s Company reported a global system-wide sales growth of 1.8%, with a modest 0.2% growth in same-restaurant sales.

Gentex Corporation: Expansion into Global Automotive Markets As A Critical Growth Lever! – Major Drivers

Gentex Corporation reported an increase in net sales to $608.5 million for the third quarter of 2024, up from $575.8 million in the same period last year.
Despite a 5% decline in global light vehicle production, Gentex outperformed its primary markets by 12%.
The company experienced a gross margin of 33.5%, slightly up from 33.2% in the third quarter of the previous year, due to higher revenue levels and purchasing cost reductions, albeit slightly offset by unfavorable product mixes.

AutoNation Inc.: Strategic Capital Allocation Driving Our Optimism! – Major Drivers

AutoNation Inc.’s third-quarter fiscal 2024 earnings reflect a complex performance landscape, balancing several high points with notable operational challenges.
The company operates in a volatile industry environment, navigating economic headwinds while implementing strategies to ensure steady growth and sustained profitability.
AutoNation marked progress in new vehicle sales, showcasing a recovery in market share.

Shakeys Pizza (PIZZA PM) Q3 2024 Concall: An Ok Result, Implied NPAT Guidance for Q4FY24 >60% YoY

By Sameer Taneja

Shakey’s Pizza (PIZZA PM) reported 3Q FY24 SWS sales/profits up 16%/-3% YoY but guided that FY24 revenues/profits would be up double-digit, implying that Q4FY24 profits >60% YoY at least.
The company guided double-digit revenue/profit growth for FY25 as investments in Potato Corner bear fruit. The company guided growth by >450 stores for both FY24/FY25 (base 2141 outlets for FY23)
The stock trades at 13x FY24 PE, and its double-digit growth in the foreseeable future makes it an exciting investment.

The Power of Propulsion: How BorgWarner Is Leading the Electric Vehicle Revolution! – Major Drivers

BorgWarner’s third-quarter results for 2024 reveal a mixed performance, characterized by resilience in a challenging market environment, strategic advancements in both its foundational and electric product lines, and robust cost management measures.
The company reported third-quarter organic sales exceeding $3.4 billion, a 5% year-over-year decrease, though slightly outperforming the market decline of 6%.
This slight outperformance underscores the effectiveness of BorgWarner’s diversified, technology-focused portfolio which continues to secure business even in a down market.

Parent-Subsidiary Listings Are a Microcosm of Japanese Stocks: Change to Value-Creation Is Long Away

By Aki Matsumoto

Listed subsidiaries decrease but increase if equity method listed companies are included. Many companies haven’t fully exercised treatment of subsidiaries, selling only a little of their shares to below 50%.
Many parent companies that own listed subsidiaries and equity-method listed companies have placed cash in subsidiaries or equity-method companies without increasing their own stock prices.
Although companies have changed their mindset somewhat, they haven’t changed their management to effectively use cash to create value, which is the reason for the low valuations of Japanese stocks.

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Nov 14

Daily Brief Financials: Klarna, Prologis Inc, Niva Bupa Health Insurance, S&P 500 INDEX, Go Digit General Insurance, Apollo Global Management , USD, Custodian REIT, Mercuria Holdings, Nippon Commercial Developmen and more

By Smartkarma Daily Briefs | Daily Briefs, Financials

In today’s briefing:

Initial Thoughts on the Klarna IPO
Never Too Late to Chase the Rally! Prologis, the World’s Leading Logistics Company
Niva Bupa Health Insurance IPO Trading – Demand Lagged Recent Listings
Ride the Trend Higher; Significant End-Of-Year Rally Underway; Four Sector Upgrades, One Downgrade
Go Digit IPO Lockup – Promoters and Investors Could Look to Sell in the US$2.1bn Release
Apollo CEO: Private Markets, Investment Alpha and Risk Management
At Any Rate: Treasury Futures Quarterly Roll
Custodian Property Income REIT – Significant uplift in fully covered DPS
Mercuria Holdings (7347 JP): Q3 FY12/24 flash update
Nippon Commercial Developmen (3252 JP): Q3 FY12/24 flash update

Initial Thoughts on the Klarna IPO

By In Good Company with Nicolai Tangen

On 12 November, Klarna announced that it confidentially filed public offering paperwork. The company is getting ready for an IPO in 1H 2025.
Klarna’s valuation reached as high as $45 billion in 2021 which declined to as low as $6.5 billion. Its valuation has recently risen to about $14.6 billion.
Klarna generated 13.27 billion SEK in revenue (US$1.2 billion) in 1H 2024 (up 27% YoY). Operating margin improved significantly from -18% in 1H 2023 to -2% in 1H 2024.

Never Too Late to Chase the Rally! Prologis, the World’s Leading Logistics Company

By Jacob Cheng

US market continues to see historical high; in the real estate space, we look at Prologis, the world’s largest logistics company
We like the sector on the back of strong structural demand drivers and depleting supply. Logistics is the future and we think Prologis is the name to own
Broader real estate index is up 8.3% YTD, while PLD is down -15% YTD. Valuation is attractive, we think PLD has room to catch up

Niva Bupa Health Insurance IPO Trading – Demand Lagged Recent Listings

By Clarence Chu

Niva Bupa Health Insurance (1226871D IN) raised around US$260m in its India IPO.
Niva Bupa Health Insurance (Niva Bupa) is a health insurance firm. Its portfolio consists of health (including retail and group), personal accident, and travel insurance.
We have looked at the company’s past performance and valuations in our earlier notes. In this note, we talk about the trading dynamics.

Ride the Trend Higher; Significant End-Of-Year Rally Underway; Four Sector Upgrades, One Downgrade

By Joe Jasper

Our outlook remains bullish following the S&P 500’s multi-month base breakout above 5670, alongside constructive market dynamics which have significantly improved over the past week.
Last week’s 11/5/24 report titled “Buy the Pullback” discussed how we were buyers, expecting a strong end-of-year rally to start that day or the following day (day after the election)
The strong rally officially started on election day, and all that is left to do is ride the trend higher into year-end and the early part of 2025

Go Digit IPO Lockup – Promoters and Investors Could Look to Sell in the US$2.1bn Release

By Sumeet Singh

Go Digit General Insurance raised US$315m in its India IPO in May 2024, via selling a mix of primary and secondary shares. Its IPO lockup is set to expire soon.
Go Digit General Insurance is a digital full stack insurance company, offering motor insurance, health insurance, travel insurance, property insurance, marine insurance, liability insurance and other insurance products.
In this note, we will talk about the lockup dynamics and possible placement.

Apollo CEO: Private Markets, Investment Alpha and Risk Management

Mark Rowan shares his journey from founding Apollo Global Management to growing the firm to over $700 billion in AUM, emphasizing the importance of being aligned with tailwinds in the market.
Apollo’s success is attributed to their investment philosophy of focusing on purchase price, excess return per unit of risk, and alignment with their clients.
Rowan discusses the challenges and risks in the current market environment, stressing the significance of judgment, integration, and communication in leadership and decision-making.

This content is sourced through publicly available sources and has been machine generated. Information displayed is for general informational purposes only.

At Any Rate: Treasury Futures Quarterly Roll

By At Any Rate

Discussion on US elections and Fed policy implications
Impact of policy uncertainty on calendar spreads and wild card options
Investor positioning and its influence on various bond contracts

This content is sourced through publicly available sources and has been machine generated. Information displayed is for general informational purposes only.

Custodian Property Income REIT – Significant uplift in fully covered DPS

By Edison Investment Research

Custodian Property Income REIT’s (CREI’s) Q225 trading update points to strong H1 performance when results are released in December. With income growth supported by leasing progress and rental growth, DPS (+9% y-o-y) is fully covered. Reflecting improved investment market sentiment and asset management, portfolio valuations show early signs of recovery. CREI expects this to continue.

Mercuria Holdings (7347 JP): Q3 FY12/24 flash update

Operating revenue decreased by JPY1.3bn (-25.5% YoY) to JPY3.7bn, while gross profit increased by JPY518mn (+18.6% YoY).
Recurring profit declined by JPY263mn YoY to JPY788mn, impacted by increased SG&A expenses and decreased foreign exchange gains.
The company invested in a green ammonia development company and formed a new fund for logistics startups.

Nippon Commercial Developmen (3252 JP): Q3 FY12/24 flash update

Revenue increased by 90.0% YoY to JPY47.9bn, with operating profit up 19.4% YoY to JPY7.2bn.
JINUSHI Business saw strong demand, with 137 tenants and 417 properties developed, totaling JPY517.7bn.
Total assets rose to JPY113.2bn, with net assets increasing to JPY43.5bn, maintaining an equity ratio of 38.2%.

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Oct 24

Daily Brief ESG: Shui On Land – ESG Report – Lucror Analytics and more

By Smartkarma Daily Briefs | Daily Briefs, ESG

In today’s briefing:

Shui On Land – ESG Report – Lucror Analytics
If Equity Compensation Are Introduced for Employees as Is, the Gender Gap in Compensation Widens

Shui On Land – ESG Report – Lucror Analytics

By Leonard Law, CFA

Lucror Analytics’ ESG Scores are based on a 3-tiered scale and are adjusted for Controversies (if applicable).
We assess Shui On Land’s ESG as “Adequate”, in line with its Environmental, Social and Governance scores. Controversies are “Immaterial” and Disclosure is “Strong”.

If Equity Compensation Are Introduced for Employees as Is, the Gender Gap in Compensation Widens

By Aki Matsumoto

Unlike the transfer of personnel rights, which is resisted by management, equity compensation that can be used to retain talent is attractive to management and is likely to accelerate.
If equity compensation plans are introduced for employees with a low ratio of female managers, the gap in compensation between men and women is expected to widen.
The introduction of equity compensation for employees is anticipated to provide an opportunity for management “kaizen” tips to emerge from individual workplaces.

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Oct 24

Daily Brief Thematic (Sector/Industry): Ohayo Japan | Day 3 of Losses and more

By Smartkarma Daily Briefs | Daily Briefs, Thematic (Sector/Industry)

In today’s briefing:

Ohayo Japan | Day 3 of Losses
Japan Morning Connection: Tesla Big Beat and SK Hynix Numbers to Buoy Sentiment
# 67 India Insight: Reliance Infra in Defence, Bharti Airtel CCI Nod, Naveen Jindal Cement Expansion

Ohayo Japan | Day 3 of Losses

By Mark Chadwick

Stocks dropped sharply on Wednesday, with the Dow Jones Industrial Average experiencing its worst day in over a month
All three major indexes logged their third consecutive day of losses on soaring Treasury yields, with the 10-year yield hitting 4.25%
Lam Research (LRCX US) shares rose nearly 4% after hours following better-than-expected Q1 earnings and revenue.

Japan Morning Connection: Tesla Big Beat and SK Hynix Numbers to Buoy Sentiment

By Andrew Jackson

Apple down hitting suppliers, with ARM and Qualcomm spat taking both lower. Watch Softbank for weakness.
Tesla earnings smashing it out of the park, will help buoy EV related including Nidec – whose own numbers yesterday were positive.
Texas Instruments +4% on numbers beat should help industrial elec names such as Rohm and Fuji Elec, despite lingering concerns.

# 67 India Insight: Reliance Infra in Defence, Bharti Airtel CCI Nod, Naveen Jindal Cement Expansion

By Sudarshan Bhandari

Naveen Jindal Group to Invest INR 2,160 Crore in Cement Expansion
Bharti Airtel Secures CCI Nod to Raise Stake in Indus Towers
Reliance Infrastructure to Invest INR 10,000 Crore in Defence Manufacturing

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Oct 24

Daily Brief Event-Driven: Surging Buzz Around the Potential Split of Samsung Electronics and more

By Smartkarma Daily Briefs | Daily Briefs, Event-Driven

In today’s briefing:

Surging Buzz Around the Potential Split of Samsung Electronics
Tokyo Metro (9023 JP): One Miss; A Bigger Index Inclusion Coming?
India: Potential Free Float Changes & Passive Flows in November
Auswide Bank (ABA AU)/ MyState (MYS AU) Merger: A Done Deal
Quiddity Leaderboard F100/F250 Dec 24: Thoughts Deliveroo and Coca-Cola; More Intra-Review Changes

Surging Buzz Around the Potential Split of Samsung Electronics

By Sanghyun Park

We’re starting to see some local market players getting ready and setting up trades that bet on a potential split for Samsung Electronics.
Samsung could leverage the buzz around spinning off its foundry business to split key units—foundry, memory chips, and others—into two or three separate companies at the shareholder meeting.
Additionally, the valuation gap between Samsung Electronics and Biologics has narrowed more than it has in the last decade, making it an even more attractive opportunity.

Tokyo Metro (9023 JP): One Miss; A Bigger Index Inclusion Coming?

By Brian Freitas

Tokyo Metro (9023 JP) had a blockbuster listing yesterday, finishing the day 45% higher. That took the estimated div yield down from 3.33% (at the IPO price) to 2.3%.
One expected index inclusion will not take place due to insufficient information on IPO allocations and that leads to a much lower free float than expected.
That inclusion will now be deferred to June; BUT there could be two other (bigger) index inclusions on the cards prior to that.

India: Potential Free Float Changes & Passive Flows in November

By Brian Freitas

Companies in India have disclosed their shareholding pattern as of end-September in October. There are companies with significant float changes from end-March and/or end-June.
The changes in free float could be reflected in domestic and global indices over the next few weeks and months resulting in action from passive trackers.
Depending on the date that the shareholding was published, there could be 11 stocks with passive inflows from global trackers while 6 could see passive outflows in November.

Auswide Bank (ABA AU)/ MyState (MYS AU) Merger: A Done Deal

By Arun George

The Auswide Bank (ABA AU) IE has considered Mystate Ltd (MYS AU)’s all-scrip merger offer in the best interests of the Auswide shareholders. However, the opinion comes with caveats.
The offer is conditional on Auswide shareholder and regulatory approvals (ACCC, Treasury). The scheme meeting is on 2 December.
Vote risk is low due to the lack of substantial shareholders and the disinterested retail base. At the last close and for 18 December payment, the gross/annualised spread was 1.6%/10.3%.

Quiddity Leaderboard F100/F250 Dec 24: Thoughts Deliveroo and Coca-Cola; More Intra-Review Changes

By Janaghan Jeyakumar, CFA

In this insight, we take a look at the potential ADDs and DELs for the F100 and F250 indices during the December 2024 index rebal event.
Separately, we see multiple M&A-related intra-review changes in the next few months.
There could also be more regular changes during the December 2024 rebalanced event

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Oct 24

Daily Brief ECM: Korea Zinc: Remaining Free Float Post Tender and a Margin Call for Choi on Young Poong Precision? and more

By Smartkarma Daily Briefs | Daily Briefs, ECM

In today’s briefing:

Korea Zinc: Remaining Free Float Post Tender and a Margin Call for Choi on Young Poong Precision?
Afcons Infrastructure IPO – Decent Upside from the Price Range
Pony AI Pre-IPO – The Positives – Scaling up Robotaxi & Robotrucks
Horizon Robotics IPO Trading – More than 55% of the Deal Taken up by Existing Shareholders
Rigaku Holdings (268A JP) IPO: Trading Debut
Swiggy IPO: Zomato’s USD 1bn Fundraise Signals Looming Quick Commerce Challenges
Orum Therapeutics IPO Valuation Analysis
Pony AI IPO Preview: Small Scale and Early Stage Development. Is Exponential Growth Ahead?
Pre-IPO Beijing Biostar Pharmaceuticals (PHIP Updates) – Some Points Worth the Attention

Korea Zinc: Remaining Free Float Post Tender and a Margin Call for Choi on Young Poong Precision?

According to Korea Zinc, it plans to disclose the treasury shares tender offer results on 28 October.
We discuss the remaining free float after the tender offer and the probabilities of share price decline or even a share price squeeze post announcement of the tender offer results.
All in all, this M&A fight for Korea Zinc remains tight with a slight advantage to MBK/Young Poong alliance.

Afcons Infrastructure IPO – Decent Upside from the Price Range

By Clarence Chu

Afcons Infrastructure Limited (6595396Z IN) is looking to raise around US$650m in its India IPO.
Afcons Infrastructure Limited (Afcons) is the flagship infrastructure engineering and construction company of the Shapoorji Pallonji group.
In a previous note, we looked at the firm’s past performance. In this note, we look at the updates since, and discuss valuation.

Pony AI Pre-IPO – The Positives – Scaling up Robotaxi & Robotrucks

By Sumeet Singh

Pony AI (PONY US) an autonomous mobility solutions provider, is looking to raise up to US$300m in its US IPO.
As per Frost & Sullivan, Pony AI was among the first companies in China to obtain licenses to operate fully driverless robotaxis in all four Tier-1 cities in China.
In this note, we talk about the positive aspects of the deal.

Horizon Robotics IPO Trading – More than 55% of the Deal Taken up by Existing Shareholders

By Sumeet Singh

Horizon Robotics (9660 HK) raised around US$800m, including over-allocation, in its Hong Kong IPO.
Horizon Robotics (HR) is a provider of advanced driver assistance systems (ADAS) and autonomous driving (AD) solutions for passenger vehicles, empowered by its proprietary software and hardware technologies.
We have looked at the company’s past performance and valuations in our previous notes. In this note, we will talk about the trading updates.

Rigaku Holdings (268A JP) IPO: Trading Debut

By Arun George

Rigaku Holdings (268A JP) priced its IPO at JPY1,260 per share to raise gross proceeds of US$856 million. The shares will start trading on 25 October.
We previously discussed the IPO in Rigaku Holdings (268A JP) IPO: The Bull Case, Rigaku Holdings (268A JP) IPO: The Bear Case, Rigaku Holdings (268A JP) IPO: Valuation Insights.
The peers have modestly derated since the prospectus was released on 20 September. The IPO price remains attractive.

Swiggy IPO: Zomato’s USD 1bn Fundraise Signals Looming Quick Commerce Challenges

By Devi Subhakesan

Zomato (ZOMATO IN) ‘s proposed USD 1 billion fundraise highlights several potential risks for Quick Commerce players, including Swiggy (1255298D IN) .
Beyond heightened competition, majority foreign-owned Quick Commerce businesses including Swiggy could face regulatory hurdles if classified as multi-brand retail, limiting their foreign ownership.
Investors may fear about Swiggy’s regulatory risks and profitability struggles in this competitive landscape, which could dampen investor enthusiasm and IPO valuation.

Orum Therapeutics IPO Valuation Analysis