Category

Daily Briefs

May 11
0

Daily Brief Industrials: Nissin Corp, CoreCivic , Illinois Tool Works and more

By | Daily Briefs, Industrials

In today’s briefing:

  • Nissin (9066) – Super Big Buyback Race-Walks the Governance Walk – Super Cheap Logistics Biz
  • CXW: 1Q24 Beat Highlights Operating Leverage, Improving Occupancies
  • Illinois Tool Works Inc.: Has Its Performance In China Truly Improved? – Major Drivers

Nissin (9066) – Super Big Buyback Race-Walks the Governance Walk – Super Cheap Logistics Biz

By Travis Lundy

  • Yesterday after the close, Nissin Corp (9066 JP) announced earnings (down vs last year), guidance (back up partway to last year), and a sale of securities to raise ¥6+bn.
  • Nissin also announced an employee share incentive plan (¥900mm) and an adjustment to its MTMP from Apr24 to Mar27. Much lower revenues. Same OP. Higher net. Higher Div Payout ratio.
  • They also announced a really big buyback which should be done by the time people read this. It is really big.

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.

Illinois Tool Works Inc.: Has Its Performance In China Truly Improved? – Major Drivers

By Baptista Research

  • Illinois Tool Works Inc., a globally diversified manufacturing company, has experienced a mixed start to its first quarter 2024 results.
  • Despite the ongoing challenging demand environment across the majority of its segments, organic growth has managed to decline at a rate of only 0.6% while five of the seven segments have also reported a similar trend.
  • Conversely, this difficult environment has not deterred Illinois Tool Works’ management from maintaining a positive outlook for the remainder of the fiscal year.

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May 11
0

Daily Brief Energy/Materials: Greatview Aseptic Packaging, Texas Pacific Land , Ecolab Inc, Rayonier Advanced Materials and more

By | Daily Briefs, Energy & Materials Sector

In today’s briefing:

  • GAPack (468 HK): Mengniu & Bi Weigh Options On Shandong Xinjufeng’s VGO
  • TPL: Watering for the Next Phase
  • 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

GAPack (468 HK): Mengniu & Bi Weigh Options On Shandong Xinjufeng’s VGO

By David Blennerhassett

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

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.

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May 11
0

Daily Brief Industrials: Nissin Corp, CoreCivic , Illinois Tool Works and more

By | Daily Briefs, Industrials

In today’s briefing:

  • Nissin (9066) – Super Big Buyback Race-Walks the Governance Walk – Super Cheap Logistics Biz
  • CXW: 1Q24 Beat Highlights Operating Leverage, Improving Occupancies
  • Illinois Tool Works Inc.: Has Its Performance In China Truly Improved? – Major Drivers

Nissin (9066) – Super Big Buyback Race-Walks the Governance Walk – Super Cheap Logistics Biz

By Travis Lundy

  • Yesterday after the close, Nissin Corp (9066 JP) announced earnings (down vs last year), guidance (back up partway to last year), and a sale of securities to raise ¥6+bn.
  • Nissin also announced an employee share incentive plan (¥900mm) and an adjustment to its MTMP from Apr24 to Mar27. Much lower revenues. Same OP. Higher net. Higher Div Payout ratio.
  • They also announced a really big buyback which should be done by the time people read this. It is really big.

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.

Illinois Tool Works Inc.: Has Its Performance In China Truly Improved? – Major Drivers

By Baptista Research

  • Illinois Tool Works Inc., a globally diversified manufacturing company, has experienced a mixed start to its first quarter 2024 results.
  • Despite the ongoing challenging demand environment across the majority of its segments, organic growth has managed to decline at a rate of only 0.6% while five of the seven segments have also reported a similar trend.
  • Conversely, this difficult environment has not deterred Illinois Tool Works’ management from maintaining a positive outlook for the remainder of the fiscal year.

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May 11
0

Daily Brief TMT/Internet: Lenovo, Paypal Holdings, Amazon.com Inc, Arlo Technologies Inc, Cambium Networks , PVA TePla and more

By | Daily Briefs, TMT/Internet

In today’s briefing:

  • Tech Supply Chain Tracker (11-May-2024): China smartphone market, Q1 2024
  • PayPal Holdings: Continued Focus On Its Omnichannel Strategy Increasing Innovation & Adoption! – Major Drivers
  • Amazon.com Inc.: Prime
  • ARLO: Risk Removed
  • Cambium Networks Corporation – 1Q24 Earnings Weak on 6 GHz Delay
  • PVA TePla – Material matters

Tech Supply Chain Tracker (11-May-2024): China smartphone market, Q1 2024

By Tech Supply Chain Tracker

  • China’s smartphone market saw growth in 1Q 2024, with increased shipments of OLED panels indicating potential for LG.
  • Panasonic’s battery unit received US subsidy but faces weak EV demand, potentially hurting sales.
  • Concerns rise as tech giants invest in AI infrastructure, with focus on consolidation, data privacy, and potential misuse of power.

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.

ARLO: Risk Removed

By Hamed Khorsand

  • ARLO grew the number of paid subscribers faster than expected in the first quarter, but it was the contract extension with Verisure that was the big news of the day
  • ARLO and Verisure have had an agreement for five years expiring later this year. The new agreement is through 2029
  • The growth in paid subscribers in Q1 puts ARLO on pace to achieve 4 million total paid subscribers by the end of 2024, after hitting 3 million in February 2024

Cambium Networks Corporation – 1Q24 Earnings Weak on 6 GHz Delay

By Water Tower Research

  • Cambium Networks (CMBM) reported earnings on May 9 that came in below our expectations (we were the lowest on the Street), mainly due to a delay in FTC approval of 6 GHz spectrum.
  • This also hit gross margin, which came in at 22.7%. Company expectations are for a better 2Q24 and 2H24, but with continued challenges in inventory and the move to 6 GHz.
  • The company did see a recovery in the enterprise market in 1Q24, but not enough to offset the weakness in 6 GHz. The stock dropped 13% in the aftermarket.

PVA TePla – Material matters

By Edison Investment Research

PVA TePla has transitioned from a small seller of industrial systems to a materials technology and metrology solutions company, set to reach c €280m in revenues in FY24. Its increasing exposure to the fast-growing semiconductor industry (more than two-thirds of sales) and high-end materials markets is securing growth, driven by AI, digitisation and e-mobility. The combination of a higher capital intensity in the semiconductor industry and growing end markets bodes well for players like PVA TePla, which are exposed to the fast-growing part of equipment sales like metrology. Despite this, PVA TePla is still largely valued as an industrial company, trading at a significant discount to peers and our DCF.

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May 11
0

Daily Brief Financials: Great Eastern Holdings, ZEEKR, Nihon Housing, Aadhar Housing Finance Ltd, Woori Financial Group , Korea Stock Exchange KOSPI 200, Information Services and more

By | Daily Briefs, Financials

In today’s briefing:

  • Great Eastern (GE SP): OCBC’s S$25.60 Unconditional Offer
  • Zeekr IPO Trading – Not as Cheap as It Looks but Float Is Tiny
  • Nihon Housing (4781 JP) – A Very Tight Register Sees an MBO At All Time Highs
  • Aadhar Housing Finance IPO | Takeaways from Branch Visits
  • South Korean Banks; Stick with Woori (316140 KS) And KB Financial (105560 KS)
  • EQD | KOSPI 200 Ready to Pullback
  • Information Services Corporation – Strong underlying growth, guidance reiterated

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

By David Blennerhassett

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.

Nihon Housing (4781 JP) – A Very Tight Register Sees an MBO At All Time Highs

By Travis Lundy

  • Nihon Housing (4781 JP) is a business which manages real estate for owners (office, apartment management, janitorial, cleaning, facilities management, security, agency, sub-leasing package systems, etc). 
  • The company has operated in Tokyo for 60+yrs, and they are finally just going to take what has always been a tight register private. Foreigners own 0.05%. Index owns nothing.
  • This is basically a completely done deal. It will trade tight, and illiquidly.

Aadhar Housing Finance IPO | Takeaways from Branch Visits

By Pranav Bhavsar

  • Branches visited – Ajmer, Bengaluru, Mandya, Mysuru, Jaipur, Solapur, Pimpri and Pune.
  • Business growth is driven by taking calls that peers are reluctant to take with regards to property and incomes.
  • Lack of team and increasing competition are primary concerns that also warrant attention. 

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

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.

Information Services Corporation – Strong underlying growth, guidance reiterated

By Edison Investment Research

Information Services Corporation’s (ISC’s) Q124 results highlight the strength of the underlying business, with topline and adjusted EBITDA growth of 15% and 34%, respectively, augmented by the sustained organic growth of the Services division and CPI fee adjustments. This progress was made less obvious at the statutory net income level by increases in interest costs and share-based compensation expenses of C$5.0m and C$5.8m, respectively. FY24 guidance has been reiterated, and we maintain our forecasts and valuation of C$40/share, implying 58% upside.

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May 11
0

Daily Brief Health Care: Eoflow, Indegene Limited, Celltrion Inc and more

By | Daily Briefs, Healthcare

In today’s briefing:

  • Eoflow Announced that US Federal Court Has Decided to Suspend the Effect of 1st Injunction Decision
  • Indegene IPO Trading – High Anchor Quality + Strong Demand, Expect a Pop on Debut
  • Celltrion (068270 KS): 1Q24 Result- Sales Hit Quarterly High; Profit Sinks on Merger Effect

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.

Indegene IPO Trading – High Anchor Quality + Strong Demand, Expect a Pop on Debut

By Clarence Chu

  • Indegene Limited (1864095D IN) raised around US$220m in its India IPO, via selling a mix of primary and secondary shares.
  • Indegene is a “digital-first” commercialisation firm with an exclusive focus on the global life sciences industry.
  • We had looked at the firm’s past performance and shared our thoughts on Indegene’s valuation in earlier notes. In this note, we will look at the trading dynamics.

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).

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May 11
0

Daily Brief Consumer: Mondelez International, Starbucks Corp, Archer Daniels Midland Co, elf Beauty Inc, Lifevantage , Stellantis NV and more

By | Consumer, Daily Briefs

In today’s briefing:

  • Mondelez International: A Tale Of Preserving Critical Price Points and Investing in Supply Chain Reliability! – Major Drivers
  • Starbucks Corporation: A Major Disappointment But These 6 Factors That Can Help Them Recover! – Major Drivers
  • Archer-Daniels-Midland Co (ADM) – Saturday, Feb 10, 2024
  • elf Beauty Inc – STCB: 1Q Preview: Adding Value, Driving Upside; Reiterate Buy, $0.25 PT
  • LifeVantage Corporation – 3QFY24 Profit Upside on Modest Sales Shortfall
  • Stellantis N.V: Will Their Ambitious Electrification Strategy Yield Dividends?

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.

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.

Archer-Daniels-Midland Co (ADM) – Saturday, Feb 10, 2024

By Value Investors Club

  • ADM’s stock has dropped by 22% due to an investigation into its Nutrition segment’s accounting practices
  • Executives may have had incentives to inflate the segment’s profitability, potentially leading to a scandal
  • While the situation presents a buying opportunity, the issue is unlikely to be as pervasive as Enron’s scandal and the underlying business is expected to survive.

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.

elf Beauty Inc – STCB: 1Q Preview: Adding Value, Driving Upside; Reiterate Buy, $0.25 PT

By Small Cap Consumer Research

  • We are reiterating our Buy rating, projections and $0.25 price target for Starco Brands with the company reporting 1Q24 (March) results after the close on Wednesday.
  • We believe 1Q saw continued progress on multiple levels, with Whipshots rolling out new flavors and now in almost all 50 states, Soylent expanding their protein offerings, Art of Sport beginning its soft launch on Amazon and Skylar expanding new product categories and fragrances.
  • As such, and with management remaining focused on driving cost savings and leveraging their relationship and knowledge of the aerosol-driven manufacturing segment, we remain focused on both top line and margin opportunities at STCB. We reiterate our Buy rating and $0.25 price target.

LifeVantage Corporation – 3QFY24 Profit Upside on Modest Sales Shortfall

By Water Tower Research

  • 3QFY24 EPS was $0.21 versus a depressed $0.08 in 3QFY23 and above our $0.16 estimate.
  • 3QFY24 EBITDA of $5.1 million beat our $4.6 million estimate and was up sharply from $3.3 million a year ago.
  • EBITDA margin of 10.5% exceeded our 8.7% estimate, driven primarily by lower commissions and incentives as a percentage of sales than we expected (210 bps), as well as lower SG&A (70 bps).

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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May 10
0

Daily Brief Australia: Cash Converters Intl and more

By | Australia, Daily Briefs

In today’s briefing:

  • Cash Converters International – Tracking well

Cash Converters International – Tracking well

By Research as a Service (RaaS)

  • Cash Converters International (ASX:CCV) is a consumer finance company operating as a service provider, owner and franchisor of second-hand goods and financial services stores in Australia and internationally.
  • CCV released a solid Q3 FY24 unaudited trading update with revenue growth of 19% over the previous corresponding period (pcp) to $93.0m.
  • The gross loan book has grown 9% to $292m, which is all the more impressive as the business transitions away from Small Amount Credit Contract (SACC) products due to regulatory change, more than offset by growth in other products, domestically and internationally.

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May 10
0

Daily Brief Thailand: Valeura Energy Inc and more

By | Daily Briefs, Thailand

In today’s briefing:

  • Valeura Energy (TSX: VLE): Financials in line. Operations on track.

Valeura Energy (TSX: VLE): Financials in line. Operations on track.

By Auctus Advisors

  • • The 1Q24 production of 21.9 mbbl/d and cash position of ~US$194 mm at the end of March had been reported previously.
  • • Operations are on track.
  • Drilling is underway at the Nong Yao A platform, with two new wells that are expected to be completed in the coming week.

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May 10
0

Daily Brief South Korea: HYBE , Classys and more

By | Daily Briefs, South Korea

In today’s briefing:

  • Netmarble Plans to Sell 2.6% Stake in HYBE Through PRS (Price Return Swap).
  • Classys (214150 KS): Beautiful Journey Continues; Record High Revenue and Operating Profit in 1Q24

Netmarble Plans to Sell 2.6% Stake in HYBE Through PRS (Price Return Swap).

By Douglas Kim

  • After the market close on 9 May, Netmarble announced that it plans to sell 2.6% stake in HYBE for 219.9 billion won. 
  • The transaction is based on PRS (price return swap) basis. Previous to this deal, Netmarble sold 2.5 million shares (about 6%) of HYBE shares in November 2023. 
  • We continue to remain negative on HYBE including on this deal involving Netmarble’s plan to sell additional 2.6% stake in HYBE.

Classys (214150 KS): Beautiful Journey Continues; Record High Revenue and Operating Profit in 1Q24

By Tina Banerjee

  • Classys (214150 KS) started 2024 on a strong note with highest ever quarterly revenue and operating profit in 1Q24. Faster-than-expected consumables orders from overseas markets drove the overall performance.
  • The proportion of consumable sales rose to 53% (1Q23: 48% and 4Q23: 43%), increasing by 42% and 32% QoQ. Increasing contribution from high-margin consumables sales improved the profitability substantially.
  • Favorable industry tailwind, global expansion, and new launches remain main growth drivers. Classys still expects 2024 revenue of KRW225B, up 25% YoY. In April, Classys obtained FDA approval for Volnewmer.

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