Category

Daily Briefs

May 12
0

Daily Brief Industrials: Alps Logistics, Paccar Inc, Republic Services and more

By | Daily Briefs, Industrials

In today’s briefing:

  • Last Week in Event SPACE: Alps Logistics, L’Occitane, Hanon Systems, Perpetual Ltd
  • PACCAR Inc.: What Are The Market Share Growth Across Different Segments? – Major Drivers
  • Republic Services Inc.: Continued Growth Poised by Pricing! – Major Drivers

Last Week in Event SPACE: Alps Logistics, L’Occitane, Hanon Systems, Perpetual Ltd

By David Blennerhassett

PACCAR Inc.: What Are The Market Share Growth Across Different Segments? – Major Drivers

By Baptista Research

  • 10.7% share in the first quarter compared to 8.6% in the same period last year.
  • DAF trucks are highly desired by customers in South America and the region is an important part of PACCAR’s growth and success.
  • In the third quarter of last year, PACCAR announced a commercial vehicle battery joint venture.

Republic Services Inc.: Continued Growth Poised by Pricing! – Major Drivers

By Baptista Research

  • Republic Services, during their first quarter 2024 earnings, highlighted strong financial results underpinned by profit-oriented growth.
  • During the quarter, they saw revenue growth of 8%, an adjusted EBITDA growth of 12%, an expansion of adjusted EBITDA margin by 120 basis points.
  • The adjusted earnings per share were $1.45 and the adjusted free cash flow produced was $535 million.

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May 12
0

Daily Brief Energy/Materials: Greatview Aseptic Packaging, Gravita India, LG Chem , Ecolab Inc, Oneok Inc and more

By | Daily Briefs, Energy & Materials Sector

In today’s briefing:

  • Greatview Aseptic (468 HK): Shandong Xinjufeng VGO Could Force Mengniu to Act
  • Gravita India Ltd- Forensic Analysis
  • Underexposed Flow Trading Opportunity: LONG Banks & SHORT LG Chem/Energy on June 14
  • Ecolab Inc.: Leveraging Digital Capabilities For The Pest Elimination Business! – Major Drivers
  • ONEOK Inc.: Expansion of Data Centers

Greatview Aseptic (468 HK): Shandong Xinjufeng VGO Could Force Mengniu to Act

By Arun George

Gravita India Ltd- Forensic Analysis

By Nitin Mangal

  • In FY24, Gravita India (GRAV IN) had faced qualified opinion from the auditors regarding its accounting pertaining to share based payments, which in a way boosted the earnings. 
  • However, the unusual accounting behaviour is not for the company. We have seen some irregular line items in the past as well, w.r.t. gains and losses on commodities and forex. 
  • Other key takeaways include negative free cash flows and difficulty in cash generation, revenues from traded goods not being in sync, fresh contingent liabilities, etc.

Underexposed Flow Trading Opportunity: LONG Banks & SHORT LG Chem/Energy on June 14

By Sanghyun Park

  • Despite time until screening, predictions likely hold due to market cap gaps; all candidates are banks, benefiting from recent momentum.
  • Historical patterns show profit-taking selling affecting price impact, particularly on additions with significant pre-inclusion price rises. Monitor banks’ pre-June 14th price appreciation to anticipate impact distortions.
  • Shorting LG Chem and LG Energy Solution based on high price cointegration, consider basket-trading them before the rebalancing, using the battery sector as a long hedge.

Ecolab Inc.: Leveraging Digital Capabilities For The Pest Elimination Business! – Major Drivers

By Baptista Research

  • Ecolab Inc.’s first-quarter 2024 earnings showcased strong progress with adjusted earnings per share increasing by 52%.
  • This impressive outcome can be attributed to a 5% growth in organic sales and the expansion of organic operating income margin by 400 basis points.
  • The company is also expected to maintain its long-term earnings growth of 12% to 15%.

ONEOK Inc.: Expansion of Data Centers

By Baptista Research

  • ONEOK, a midstream service provider in the natural gas industry, revealed substantial financial growth in its first-quarter 2024 earnings call.
  • The company reported healthy year-over-year volume growth in the Rocky Mountain region and meaningful contributions from the Refined Products and Crude segment.
  • ONEOK’s satisfactory performance in Q1 2024 was driven by favourable industrial fundamentals and the realization of commercial and cost synergies – increasing its full-year financial guidance for 2024.

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May 12
0

Daily Brief Industrials: Alps Logistics, Paccar Inc, Republic Services and more

By | Daily Briefs, Industrials

In today’s briefing:

  • Last Week in Event SPACE: Alps Logistics, L’Occitane, Hanon Systems, Perpetual Ltd
  • PACCAR Inc.: What Are The Market Share Growth Across Different Segments? – Major Drivers
  • Republic Services Inc.: Continued Growth Poised by Pricing! – Major Drivers

Last Week in Event SPACE: Alps Logistics, L’Occitane, Hanon Systems, Perpetual Ltd

By David Blennerhassett

PACCAR Inc.: What Are The Market Share Growth Across Different Segments? – Major Drivers

By Baptista Research

  • 10.7% share in the first quarter compared to 8.6% in the same period last year.
  • DAF trucks are highly desired by customers in South America and the region is an important part of PACCAR’s growth and success.
  • In the third quarter of last year, PACCAR announced a commercial vehicle battery joint venture.

Republic Services Inc.: Continued Growth Poised by Pricing! – Major Drivers

By Baptista Research

  • Republic Services, during their first quarter 2024 earnings, highlighted strong financial results underpinned by profit-oriented growth.
  • During the quarter, they saw revenue growth of 8%, an adjusted EBITDA growth of 12%, an expansion of adjusted EBITDA margin by 120 basis points.
  • The adjusted earnings per share were $1.45 and the adjusted free cash flow produced was $535 million.

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May 12
0

Daily Brief TMT/Internet: Advanced Micro Devices, Corning Inc, Gartner Inc, Mastercard, Pinterest , Qualcomm Inc, Skyworks Solutions, Super Micro Computer, Zebra Technologies Corp and more

By | Daily Briefs, TMT/Internet

In today’s briefing:

  • Advanced Micro Devices Inc. (AMD): Growth Opportunities in Data Center CPU & Artificial Intelligence (AI) – Major Drivers
  • Corning Incorporated: Are The Returns On Its Display Business Good Enough? – Major Drivers
  • Gartner Inc.: Increasing Interest In Artificial Intelligence (AI) & Its Expected Impact On The Top-Line! – Major Drivers
  • Mastercard Incorporated: Cross-Border Travel and Consumer Behaviors Impact! – Major Drivers
  • Pinterest Inc.: Operating On A Niche In The Digital Advertising Ecosystem! – Major Drivers
  • Qualcomm Incorporated: Will The Solid Momentum in Augmented and Virtual Reality Last? – Major Drivers
  • Skyworks Solutions Inc.: Continued Investment in Technology and Product Roadmaps! – Major Drivers
  • Super Micro Computer Inc.: Role of AI and Green Computing in Market Leadership! – Major Drivers
  • Zebra Technologies Corporation: Will The Growth In Asia Market

Advanced Micro Devices Inc. (AMD): Growth Opportunities in Data Center CPU & Artificial Intelligence (AI) – Major Drivers

By Baptista Research

  • In the first quarter of 2024, Advanced Micro Devices (AMD), under the chairmanship and CEO-ship of Dr.
  • Lisa Su, achieved multiple milestones.
  • Revenue rose to $5.5 billion, showing both quarter over-quarter and year-over-year growth, while the company’s gross margin expanded by more than 2 percentage points; they also saw enhanced profitability with Data Center and Client segment sales each growing by over 80% year-over-year.

Corning Incorporated: Are The Returns On Its Display Business Good Enough? – Major Drivers

By Baptista Research

  • Based on the Q1 2024 earnings, Corning Incorporated appears to be in a position of growth and profitability.
  • With sales close to $3.3 billion and EPS of $0.38, the company exceeds its guidance predictions.
  • There was a year-over-year gross margin growth of 160 basis points to 36.8%, and a substantial improvement in free cash flow by $300 million.

Gartner Inc.: Increasing Interest In Artificial Intelligence (AI) & Its Expected Impact On The Top-Line! – Major Drivers

By Baptista Research

  • In Q1 2024, Gartner delivered strong profitability and free cash flow, which both surpassed expectations, leading the company to increase its guidance for the year.
  • The company proved its resilience in what’s described as a “complex environment”, with contract value growth in the high single digits.
  • However, there remain several challenges to face.

Mastercard Incorporated: Cross-Border Travel and Consumer Behaviors Impact! – Major Drivers

By Baptista Research

  • Mastercard Inc.’s Q1 2024 earnings showcased the company’s firm position in the payments sector, underpinned by robust revenue and adjusted net income growth on a non-GAAP, currency-neutral basis.
  • The company’s strong results go beyond the uptake in consumer spending, extending to the rapid growth in cross-border volumes.
  • There are several factors at play that make Mastercard attractive from an investment standpoint.

Pinterest Inc.: Operating On A Niche In The Digital Advertising Ecosystem! – Major Drivers

By Baptista Research

  • Pinterest reported healthy growth trends with bright prospects, although there are challenges and areas in need of improvement, making an investment thesis mix of cautious optimism and risk mitigation.
  • Positively, Pinterest revealed impressive progress in terms of both user engagement and operational efficiency.
  • The platform has surpassed 500 million global Monthly Active Users (MAUs) for the first time, increasing by 12%, marking its seventh quarter of consecutive acceleration.

Qualcomm Incorporated: Will The Solid Momentum in Augmented and Virtual Reality Last? – Major Drivers

By Baptista Research

  • The Qualcomm Inc. second quarter 2024 earnings focused on recent achievements and future expectations.
  • The company reported non-GAAP revenues of $9.4 billion, surpassing its guidance, with chipset business revenues of $8 billion, on the strength of Android smartphones and automotive momentum.
  • Underpinned by its technology leadership, Qualcomm expects to continue growing in both the mobile and automotive markets.

Skyworks Solutions Inc.: Continued Investment in Technology and Product Roadmaps! – Major Drivers

By Baptista Research

  • Skyworks Solutions Inc. management shared both encouraging and concerning updates in its recent earnings.
  • On the positive side, the company demonstrated solid financial performance in the second fiscal quarter of 2024, including revenue of $1.046 billion, earnings per share of $1.55, and generation of $300 million in operating cash flow.
  • The company sees significant opportunities in the edge IoT market with a robust design win pipeline for WiFi 6E and WiFi 7, indicating a possible multiyear upgrade cycle.

Super Micro Computer Inc.: Role of AI and Green Computing in Market Leadership! – Major Drivers

By Baptista Research

  • In the latest Q3 2024, the Super Micro Computer management shared about its ongoing growth and mentioned that the strong results reflect the increasing demand for their rack-scale plug and play total ai solutions.
  • For the quarter, the firm achieved record-breaking revenues of $3.85 billion, a year-on-year increase of 200% and non-GAAP earnings per share of $6.65, a 308% YoY increase.
  • Super Micro anticipates AI growth over many quarters, if not years, based on its financial performance and market trends, which is positive for the firm.

Zebra Technologies Corporation: Will The Growth In Asia Market

By Baptista Research

  • Zebra Technologies Corporation’s first quarter financial performance for 2024 has been impacted by ongoing softness across many markets and regions.
  • Due to this, Zebra has experienced a double-digit decline in sales and profitability.
  • However, the company noted a gradual recovery in demand and was encouraged by a surge in large order activity, positively influencing the quarter.

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May 12
0

Daily Brief Financials: OCBC, China Citic Bank Corp Ltd H, SBI Cards & Payment Services, China International Capital Corporation and more

By | Daily Briefs, Financials

In today’s briefing:

  • (Mostly) Asia-Pac M&A: Namoi Cotton, Great Eastern, GAPack, Nihon, Chilled & Frozen, Shinko Electric
  • HK Connect SOUTHBOUND Flows (To 10 May 2024); Banks, Coal, and High-Div Energy/Materials Names
  • Quiddity Leaderboard NIFTY Sep 24: Strong Flow Rationale for LONG Jio Financial – SHORT SBI Cards
  • A/H Premium Tracker (To 10 May 2024):  Excellent Quiddity Portfolio Gains as Hs Rally Huge Vs As

(Mostly) Asia-Pac M&A: Namoi Cotton, Great Eastern, GAPack, Nihon, Chilled & Frozen, Shinko Electric

By David Blennerhassett

HK Connect SOUTHBOUND Flows (To 10 May 2024); Banks, Coal, and High-Div Energy/Materials Names

By Travis Lundy

  • A-Shares only two days of the week and were up small Monday and Tuesday. H-shares took a breather Wednesday after trailing A-shares, then rallied hard on Thursday and Friday.
  • Net SOUTHBOUND buying was +HK11.3bn. Thursday saw a break of the SOUTHBOUND buying streak. 
  • The big news in China markets this week was the idea that mainland investors through SOUTHBOUND would no longer be hit with a 20% w/h tax on dividends.

Quiddity Leaderboard NIFTY Sep 24: Strong Flow Rationale for LONG Jio Financial – SHORT SBI Cards

By Janaghan Jeyakumar, CFA

  • NIFTY 50 represents the 50 largest stocks listed in the National Stock Exchange (NSE) of India and the NIFTY Next 50 index tracks the next 50 largest names.
  • In this insight, we take a look at the names leading the race to become ADDs/DELs during the September 2024 index rebal event.
  • More than 50% of the 6-month reference period is now complete. There are a couple of changes to the expected ADDs/DELs list since my last insight.

A/H Premium Tracker (To 10 May 2024):  Excellent Quiddity Portfolio Gains as Hs Rally Huge Vs As

By Travis Lundy

  • The New/Better A-H Premium Tracker has tables, charts, measures galore to track A/H premium positioning, southbound and northbound positioning/volatility in pairs over time, etc.
  • SOUTHBOUND’s buy streak was interrupted again this past week, but they still net bought, as did NORTHBOUND. HK stocks continued bouncing VERY hard. Hs outperformed As very strongly.
  • As had a chance to catch up. Did not. Liquid Hs outperformed their As by 4.8% from 30-April through 10-May. Wide premia narrowed more than narrow premia.

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May 12
0

Daily Brief Health Care: Yichang HEC Changjiang Pharma, China Traditional Chinese Medicine, Eli Lilly & Co, Incyte Corp and more

By | Daily Briefs, Healthcare

In today’s briefing:

  • HEC CJ Pharma (1558 HK): Pre-Conditional Share Exchange Offer from Largest Shareholder
  • Weekly Deals Digest (12 May) – China TCM, GA Pack, HEC CJ Pharma, CPMC, Alps Logistics, Infocom
  • Eli Lilly & Co: The Story Behind The Increasing Demand vs. Production of Orforglipron & Progress of Other Drugs! – Major Drivers
  • Incyte Corporation: Can It Capitalize On The Potential For Expansion Into Dermatology? – Major Drivers

HEC CJ Pharma (1558 HK): Pre-Conditional Share Exchange Offer from Largest Shareholder

By Arun George

  • Yichang HEC Changjiang Pharma (1558 HK)‘s pre-conditional privatisation from Sunshine Lake Pharma comprises scrip (0.263614 new offeror H Share per HEC CJ Pharma share) and cash (special dividend of HK$1.5).
  • The pre-condition is regulatory approvals from NDRC, MOFCOM, and SAFE. The key condition is approval by at least 75% of independent H Shareholders (<10% of all independent H Shareholders rejection). 
  • There is valuation uncertainty as the offeror is unlisted, and its valuation hinges on pipeline products. Nevertheless, with no shareholder close to a blocking stake, the deal should get up.   

Weekly Deals Digest (12 May) – China TCM, GA Pack, HEC CJ Pharma, CPMC, Alps Logistics, Infocom

By Arun George

Eli Lilly & Co: The Story Behind The Increasing Demand vs. Production of Orforglipron & Progress of Other Drugs! – Major Drivers

By Baptista Research

  • In Q1 2024, Eli Lilly and Company achieved strong growth and strategic milestones, with revenue growing by 26% and new products increasing by nearly $1.8 billion in comparison to the same period last year.
  • The company’s new products, primarily Mounjaro and Zepbound, primarily drove the growth.
  • Eli Lilly also accomplished various pipeline milestones during this period.

Incyte Corporation: Can It Capitalize On The Potential For Expansion Into Dermatology? – Major Drivers

By Baptista Research

  • Incyte Corp’s first quarter 2024 earnings pointed towards the company’s steady performance during the quarter and provided an update on its ongoing projects.
  • The company’s total revenue grew by 9% in Q1 as compared to the same period last year, with growth driven largely by the drugs Jakafi and Opzelura.
  • In particular, Jakafi’s net product revenue was $572 million, not fully reflecting its demand growth due to an increase in total patients, particularly those with PV and GVHD. Similarly, Opzelura’s net product revenues in the first quarter were $86 million, indicating a 52% growth when compared to the same period last year.

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May 12
0

Daily Brief Consumer: Cosmecca Korea , BYD , TSE Tokyo Price Index TOPIX, Lear Corp, Sirius Xm Holdings, Molson Coors Brewing Co B, Clorox Company, Sysco Corp, Archer Daniels Midland Co and more

By | Consumer, Daily Briefs

In today’s briefing:

  • Cosmecca Korea Plans to Switch Listing from KOSDAQ to KOSPI
  • Mainland Connect NORTHBOUND Flows (To 10 May 2024): So-So Volumes, As Did Not Play Catchup
  • Since Cash on Hand Will Not Decrease in FY2024, Shareholder Returns Remain a Hot Topic
  • Lear Corporation: Industrial Automation
  • Sirius XM Holdings: Improving Conversion
  • Molson Coors Beverage Company: Recent Shelf Space Gains
  • The Clorox Company: A Story Of Innovation-Led Growth
  • Sysco Corporation: A Tale Of Improved Profitability Through Strategic Sourcing! – Major Drivers
  • Archer-Daniels-Midland Company: Strengthening Margins Through Operational Improvements & Renewable Production! – Major Drivers

Cosmecca Korea Plans to Switch Listing from KOSDAQ to KOSPI

By Douglas Kim

  • On 10 May, Cosmecca Korea (241710 KS) announced that it plans to switch its listing from KOSDAQ to KOSPI. 
  • The company plans to convene an extraordinary general meeting of shareholders on 29 August to finalize on the switching of Cosmecca Korea listing from KOSDAQ to KOSPI. 
  • Cosmecca Korea is one of the leading Korean ODM manufacturers of cosmetic products.

Mainland Connect NORTHBOUND Flows (To 10 May 2024): So-So Volumes, As Did Not Play Catchup

By Travis Lundy

  • The Quiddity Mainland Connect NORTHBOUND Monitor. Like the A/H Premium Monitor and HK Connect SOUTHBOUND Monitor. Lots of Flows/Position Tables and Charts with which to play.
  • Last week saw NORTHBOUND net BUY RMB 4.8bn of A-shares on high gross low net volume in the two days. NORTHBOUND bought Kweichow Moutai, banks, Haier Smarthome, etc.
  • HUGE week in H vs A (since the 30 April close). This may be colouring foreigner activity in As quite a bit. 

Since Cash on Hand Will Not Decrease in FY2024, Shareholder Returns Remain a Hot Topic

By Aki Matsumoto

  • Most large companies initially estimate sales and profits conservatively, and CapEx, which is often planned more than a year in advance, isn’t often above plan.
  • Companies have a cautious earnings outlook, but the market consensus still expects profit growth in FY2024. CapEx growth in the BOJ Tankan is expected to be slightly higher than profits.
  • Assuming an 8.5% increase in CapEx for large manufacturing companies and a low single-digit growth in the recurring profit outlook, the level of cash on hand is unlikely to decrease.

Lear Corporation: Industrial Automation

By Baptista Research

  • Lear Corporation’s record-setting first quarter revenues of $6 billion show an increase of 3%.
  • Core operating earnings were up 6% at $280 million, while adjusted earnings per share rose 14% to $3.18.
  • Operating cash flow matched that of the same period the previous year.

Sirius XM Holdings: Improving Conversion

By Baptista Research

  • SiriusXM Holdings Inc. delivered a strong financial performance for its first quarter of 2024, with an encouraging 7% year-over-year increase in advertising revenue to over $400 million.
  • This growth in ad revenue, driven by a growing addressable advertising audience and a strengthening ad market, helped offset a slight 1% drop in subscription revenue.
  • The firm’s adjusted EBITDA was up 4% year over-year and delivered a margin of 30%, up 1 percentage point from the previous year.

Molson Coors Beverage Company: Recent Shelf Space Gains

By Baptista Research

  • The latest earnings from Molson Coors Beverage Company indicates a strong performance in their first quarter, with substantial growth in top and bottom lines and consistent achievement of their acceleration plan.
  • The company’s net sales revenue surged by over 10%, while its underlying pretax income increased by nearly 69%, underpinned by significant margin improvement.
  • Additionally, the company reaffirmed its guidance for the full year.

The Clorox Company: A Story Of Innovation-Led Growth

By Baptista Research

  • The Clorox Company’s third-quarter financial results suggest a continuing recovery from the August cyberattack that affected its operations.
  • Despite lower sales and significant investments in its brands, the company’s adjusted earnings per share exceeded its own expectations in the said quarter.
  • Adjusting for the effects of the cyberattack, the company reported that Q3 sales performance was, for the most part, in line with the management’s expectations.

Sysco Corporation: A Tale Of Improved Profitability Through Strategic Sourcing! – Major Drivers

By Baptista Research

  • Sysco Corporation reported a sequential improvement in restaurant foot traffic over Q3 2024, starting with a tough January and improving throughout the quarter.
  • The company noted that traffic, not same-store sales, drives distributor case volume shipments, with Sysco’s 2.9% case growth enabling profitable market share increase for the quarter.
  • The company delivered strong earnings growth in a challenging volume environment, delivering adjusted operating income growth of 8.4% while anticipating future improvements in local case volume.

Archer-Daniels-Midland Company: Strengthening Margins Through Operational Improvements & Renewable Production! – Major Drivers

By Baptista Research

  • In its first quarter 2024, Archer-Daniels-Midland (ADM) reported adjusted earnings per share of USD1.46, and an adjusted segment operating profit of USD1.3bn, representing an on-year decrease of 24%.
  • ADM also achieved a trailing 4-quarter average of 11.2% for its adjusted Return on Invested Capital (ROIC) during the same quarter, while maintaining a strong balance sheet and healthy cash flows.
  • Although the global grain and oilseed supply is expected to increase throughout the year amid an anticipated improvement in weather conditions, ADM proactively managed the risk of falling margins by driving the structural earnings, ROIC, and cash flow generation, enabling the company to continue investing in its business and returning cash to its shareholders.

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May 11
0

Daily Brief South Korea: Eoflow, Woori Financial Group , Celltrion Inc, Korea Stock Exchange KOSPI 200 and more

By | Daily Briefs, South Korea

In today’s briefing:

  • Eoflow Announced that US Federal Court Has Decided to Suspend the Effect of 1st Injunction Decision
  • South Korean Banks; Stick with Woori (316140 KS) And KB Financial (105560 KS)
  • Celltrion (068270 KS): 1Q24 Result- Sales Hit Quarterly High; Profit Sinks on Merger Effect
  • EQD | KOSPI 200 Ready to Pullback

Eoflow Announced that US Federal Court Has Decided to Suspend the Effect of 1st Injunction Decision

By Douglas Kim

  • On 8 May, Eoflow announced that the U.S. federal court has decided to suspend the effect of the first injunction decision.
  • While the effect of the second preliminary injunction decision remains intact, Eoflow has requested a review of the suspension of the effect of the second revised injunction decision as well.
  • There has been a renewed optimism on Eoflow (294090 KS)’s share price in the past week which increased by 46% from 7 May to 10 May.

South Korean Banks; Stick with Woori (316140 KS) And KB Financial (105560 KS)

By Victor Galliano

  • In our latest South Korean banks screener, we keep Woori on the buy list along with KB Financial as our Korean banks picks
  • Delinquency ratios continued to worsen QoQ, yet Woori is the benchmark for NPL ratio; Woori had lagged in terms of returns, but these are holding at the pre-provision level
  • KB has a low PBV ratio relative to its ROE, it delivers rising post-provision returns, with cost of risk declining and it has a healthy CET1 ratio

Celltrion (068270 KS): 1Q24 Result- Sales Hit Quarterly High; Profit Sinks on Merger Effect

By Tina Banerjee

  • Celltrion Inc (068270 KS) posted revenue of KRW700B+ in 1Q24, thanks to increasing demand for Remsima in Europe. The market share of Remsima is approaching 80–90% in select European countries.
  • 1Q24 profit setback is temporary as COGS ratio is expected to improve rapidly starting from 2Q24 as the inventory is digested, leading to sequentially improved profit margins in coming quarters.
  • With the successful U.S. launch of Zymfentra and continued solid uptake of the existing products, the company is well-positioned to meet its 2024 revenue target of KRW3.5T (+60% YoY).

EQD | KOSPI 200 Ready to Pullback

By Nico Rosti

  • This is an update to our previous insight published on April 22nd: “EQD | KOSPI 200 WEEKLY Bounce: Rally or Not?“.
  • The KOSPI 200 INDEX  has performed a nearly +6% rally in the last 3 weeks, closing up 3 weeks in a row (CC=+3).
  • We have something to say about this pattern that was identified 3 weeks and ago and so we wanted to post this insight to explicit our view.

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May 11
0

Daily Brief Singapore: Great Eastern Holdings and more

By | Daily Briefs, Singapore

In today’s briefing:

  • Great Eastern (GE SP): OCBC’s S$25.60 Unconditional Offer

Great Eastern (GE SP): OCBC’s S$25.60 Unconditional Offer

By David Blennerhassett

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May 11
0

Daily Brief United States: ZEEKR, Paypal Holdings, Amazon.com Inc, Texas Pacific Land , CoreCivic , Starbucks Corp, Mondelez International, Ecolab Inc, Rayonier Advanced Materials, Stellantis NV and more

By | Daily Briefs, United States

In today’s briefing:

  • Zeekr IPO Trading – Not as Cheap as It Looks but Float Is Tiny
  • PayPal Holdings: Continued Focus On Its Omnichannel Strategy Increasing Innovation & Adoption! – Major Drivers
  • Amazon.com Inc.: Prime
  • TPL: Watering for the Next Phase
  • CXW: 1Q24 Beat Highlights Operating Leverage, Improving Occupancies
  • Starbucks Corporation: A Major Disappointment But These 6 Factors That Can Help Them Recover! – Major Drivers
  • Mondelez International: A Tale Of Preserving Critical Price Points and Investing in Supply Chain Reliability! – Major Drivers
  • Ecolab Inc.: Internal Innovation and Acquisition Potential Driving Ecolab’s Healthcare Business! – Major Drivers
  • Rayonier Advanced Materials, Inc. – Solid Start to the Year and Progress on Asset Transformation
  • Stellantis N.V: Will Their Ambitious Electrification Strategy Yield Dividends?

Zeekr IPO Trading – Not as Cheap as It Looks but Float Is Tiny

By Sumeet Singh

  • ZEEKR (ZK US), a premium EV brand by Geely, raised around US$440m in its US listing, after the deal was upsized and priced at the top.
  • Zeekr was formed in Mar 2021 as a JV between Geely and its founder. Its first model was launched in Apr 21 with deliveries starting in Oct 21.
  • We have looked at the company’s past performance and provided our thoughts on valuations in our earlier notes. In this note, we talk about the trading dynamics.

PayPal Holdings: Continued Focus On Its Omnichannel Strategy Increasing Innovation & Adoption! – Major Drivers

By Baptista Research

  • PayPal Holdings Inc.’s Q1 2024 earnings showcased a solid start for the year with substantial improvements across various sectors of the business, tempered by an understanding of the need for continued retooling and operational changes.
  • The company leadership is operating cohesively and the new strategies in place are evidently beginning to make a difference.
  • PayPal has maintained steady progress with their three customer groups; large enterprises, small businesses, and consumers, including their subsidiary, Venmo.

Amazon.com Inc.: Prime

By Baptista Research

  • Amazon.com reported robust first quarter financial results in 2024, with revenue of $143.3 billion, a 13% increase year-over-year.
  • However, the result excludes the impact of foreign exchange rates, which caused an unfavorable impact that reduced revenue by roughly $700 million.
  • The company delivered higher than expected operating income of $15.3 billion, which is a 221% increase from last year, driven primarily by efficiency improvements and better customer experiences.

TPL: Watering for the Next Phase

By Hamed Khorsand

  • TPL reported first quarter results with a higher than expected revenue figure from water sales to go along with the Company’s disclosure of a new desalination technology
  • TPL’s quarterly results were better than we had projected due to the performance in water sales. Unlike second quarter 2023 results, TPL’s management referred to a pipeline of sales
  • TPL used the first quarter results to disclose a new method of desalination of produced water

CXW: 1Q24 Beat Highlights Operating Leverage, Improving Occupancies

By Zacks Small Cap Research

  • Management has indicated that the pipeline for new leases, renewals is robust as ICE & multiple government entities seek capacity.
  • Company is engaged in multiple discussions.
  • In addition, the recent debt issuance extended maturities & CXW was able to maintain the cost of capital despite the uncertain rate, economic outlook.

Starbucks Corporation: A Major Disappointment But These 6 Factors That Can Help Them Recover! – Major Drivers

By Baptista Research

  • Starbucks’ second quarter fiscal year 2024 results reflect the challenges and opportunities the company faces in a changing marketplace.
  • While global comparable store sales declined by 4% year-over-year and the company’s total revenue dipped by 1% to $8.6 billion, a decline in foot traffic in North America and a hefty decline of 11% in China being a few of the contributing factors.
  • The company was also affected by severe weather conditions, causing a nearly 3% impact on both US and total company comp during the quarter.

Mondelez International: A Tale Of Preserving Critical Price Points and Investing in Supply Chain Reliability! – Major Drivers

By Baptista Research

  • Mondelez International had robust Q1 2024 with solid top line results, strong earnings, and free cash flow generation.
  • The performance was buoyed by momentum in emerging markets where consumer confidence is high and categories are resilient.
  • The company faced challenges such as disruption with European clients and boycott of Western products in the Middle East and Southeast Asia.

Ecolab Inc.: Internal Innovation and Acquisition Potential Driving Ecolab’s Healthcare Business! – Major Drivers

By Baptista Research

  • Ecolab Inc.’s first-quarter 2024 earnings showcased strong progress with adjusted earnings per share increasing by 52%.
  • This impressive outcome can be attributed to a 5% growth in organic sales and the expansion of organic operating income margin by 400 basis points.
  • The company is also expected to maintain its long-term earnings growth of 12% to 15%.The CEO, Christophe Beck, expressed satisfaction with the level of dedication and the results obtained from Ecolab’s workforce.

Rayonier Advanced Materials, Inc. – Solid Start to the Year and Progress on Asset Transformation

By Water Tower Research

  • 1Q24 performance ahead of expectations. RYAM reported 1Q24 results that included EPS of ($0.02) versus consensus of ($0.10) and our estimate of ($0.19).
  • While sales of $388 million fell short of our estimate of $402 million and consensus of $430 million, tight cost controls, lower raw material and transportation costs, and improved operating efficiencies drove EBITDA of $52 million versus our estimate of $39 million and consensus of $49 million.

  • EBITDA guidance maintained, FCF guidance increased. With market fundamentals stabilizing and most of customer inventory work-downs winding down, management reiterated its EBITDA guidance of $180-200 million and raised its FCF guidance for the year from $20- 40 million to $80-100 million on a higher working capital benefit and $39 million in cash to be realized from the sale of softwood duty refund rights to OCP Lumber LLC.

Stellantis N.V: Will Their Ambitious Electrification Strategy Yield Dividends?

By Baptista Research

  • Stellantis has reported strong results in its Full Year 2023 Results, demonstrating the company’s high resilience even amid challenges.
  • Stellantis’ CEO, Carlos Tavares reflected on the record net revenues, net profit, and free cash flow for the year, showing an increase of 6%, 11%, and 19% respectively.
  • The CEO noted that Stellantis’ strategy is all about profitable growth.

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