Daily Briefs

Trend Micro Inc (4704 JP) shares rose 14.8% on Friday after Reuters reported that it is exploring a sale after attracting buyout interest.
The interest is unsurprising due to the weak share price. Since ValueAct disclosed a stake on 8 August 2022, the shares are down 0.7% vs the Nikkei 225’s 23.6% increase.
The lack of a controlling shareholder and increased cybersecurity M&A activity support the buyout interest. A privatisation price is likely to be around JPY9,000. Valuation is undemanding at last close.

Last Week in Event SPACE: Toyota, Swire, Fancl, Barito Complex, Descente

The trade in Toyota Motor (7203 JP)‘s Tender offer Buyback is to understand what YOU can do in your particular position.
Despite Swire Properties (1972 HK)‘s recent share buyback, Swire Pacific (A) (19 HK) is still preferable on a look-through P/B of 0.34x.
Kirin bumps the Offer for Fancl (4921 JP). Given market gyration, it may represent enough of a switching opportunity to let those who still object in principle to re-allocate elsewhere.

(Mostly) Asia-Pac M&A: Fuji Soft, C.I. TAKIRON, Pacific Smiles, GaPack, Asia Cement, Shinko Electric

I tally 46 – mostly firm, mostly Asia-Pac – transactions currently being discussed and analysed on Smartkarma. Inside is a timetable of upcoming key events for each deal.
Three new deals were discussed this week on Smartkarma: KKR’s tilt for Fuji Soft (9749 JP); and Itochu’s Tenders Offers for Descente (8114 JP) and C.I. TAKIRON Corporation (4215 JP).
Key updates took place on Pacific Smiles (PSQ AU), Greatview Aseptic Packaging (468 HK), L’Occitane (973 HK), Fancl Corp (4921 JP), Shinko Electric Industries (6967 JP), and Isetan Singapore (ISET SP).

IHI (7013 JP): Buy Back in for Post-Crash Recovery

By Scott Foster

1Q results supported management’s full-year sales and profit guidance, which remains unchanged. Operating profit was up 2.7x YoY on a 17% increase in sales.
Total new orders received increased by only 4.2% YoY and fell short of sales, but Aerospace & Defense orders were up 35.5% and slightly exceeded sales.
Our own forecast – above management’s guidance this year with further growth next year – and our share price target are unchanged. 21% potential upside.

Toyota Motor Corporation: Investment In Future Technologies & Geographic Optimization Driving Our Optimism! – Major Drivers

Toyota Motor Corporation has released its financial results for the fiscal year ended March 2024, providing a comprehensive overview that reflects both the company’s recent successes and its strategic investments towards future growth.
In fiscal year 2024, Toyota reported robust financial performance with total vehicle sales reaching 9.443 million units, marking a 7.0% increase from the previous fiscal year.
This growth was largely propelled by escalated sales outside Japan, counterbalancing the dip in domestic sales due to shipment suspensions from Daihatsu Motor Company and Toyota Industries Corporation.

Micronics Japan (6871 JP): 1H FY12/24 flash update

Consolidated financial results for 1H FY12/24: Sales JPY26.2bn (+54.1% YoY), Operating profit JPY5.8bn (+229.4% YoY), Net income JPY3.7bn (+222.4% YoY).
Segment sales in Q2: Memory probe card sales JPY12.4bn (+124.1% YoY), Non-memory probe card sales JPY1.3bn (+66.8% YoY).
Full-year FY12/24 forecast: Sales JPY55.0bn (+43.6% YoY), Operating profit JPY11.6bn (+118.4% YoY), Net income JPY8.3bn (+101.1% YoY).

Oat Agrio (4979 JP): 1H FY12/24 flash update

Revenue in 1H FY12/24 decreased 4.2% YoY to JPY15.7bn, driven by weak performance in the agrichemicals field.
Operating profit in 1H FY12/24 decreased 38.5% YoY to JPY2.0bn, impacted by lower revenue and increased expenses.
Recurring profit and net income attributable to owners of the parent fell over 30% YoY but exceeded forecasts.

Advance Create (8798 JP): Q3 FY09/24 flash update

Revenue decreased JPY2.2bn YoY (-26.0% YoY) to JPY6.4bn, with significant declines in the Insurance Agency and Media businesses.
Operating loss decreased JPY26mn YoY to JPY610mn, with notable improvements in the Insurance Agency and Media businesses.
Full-year forecast revised: Revenue JPY9.5bn, Operating profit JPY200mn, Recurring profit JPY100mn, Net income JPY70mn, EPS JPY3.19.

Tkc Corp (9746 JP): Q3 FY09/24 flash update

Sales grew 2.4% YoY to JPY55.2bn, with Accounting Firm segment up 3.4% YoY and Local Government segment up 0.5% YoY.
Operating profit increased 1.9% YoY to JPY13.6bn, with Accounting Firm segment up 2.1% YoY and Local Government segment up 6.4% YoY.
Net income attributable to owners of the parent decreased 0.7% YoY to JPY9.7bn, despite overall sales and operating profit growth.

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Aug 11

Daily Brief China: Meituan, Greatview Aseptic Packaging, China Education Group and more

By Smartkarma Daily Briefs | China, Daily Briefs

In today’s briefing:

O2O Playing a More Prominent Role in China Street Drinks
Weekly Deals Digest (11 Aug) – GA Pack, Trend Micro, Descente, Fancl, Fuji Soft, C.I. TAKIRON
Technically Speaking, Breakouts and Breakdowns: HONG KONG (AUGUST 9)

O2O Playing a More Prominent Role in China Street Drinks

By Andy Fu

On August 7th, Meituan’s on-demand order volume reached a historical high of 98mn on surging orders from street drinks. Meituan has connected to the backend systems of street drink vendors;
Delivery order is a double-edged sword. It boosts volume at the expense of margin. Further, the ownership of the volume is questionable;
With Pin-hao-fan, Meituan already atomized the small restaurants. Now Meituan is playing the same trick with street drinks. The result will be more dramatic to the benefit of Meituan.

Weekly Deals Digest (11 Aug) – GA Pack, Trend Micro, Descente, Fancl, Fuji Soft, C.I. TAKIRON

A weekly summary of key developments across ECM and Event-Driven names tracked by us across Hong Kong, Australia, New Zealand, Singapore, Japan, Indonesia, Malaysia, Thailand, Korea, India and Chinese ADRs.
ECM developments: BrainBees Solutions (0172540D IN) and WeRide (WRD US) IPOs.
Event-Driven developments: Greatview Aseptic Packaging (468 HK), C.I. TAKIRON Corporation (4215 JP), Descente Ltd (8114 JP), Fancl Corp (4921 JP), Fuji Soft Inc (9749 JP), Trend Micro Inc (4704 JP).

Technically Speaking, Breakouts and Breakdowns: HONG KONG (AUGUST 9)

By David Mudd

Consumer sectors in China are gaining more focus as the government lays out steps to increase domestic consumption.
Hong Kong markets performed well relative to region during recent market turmoil.
China Education Group (839 HK) and China Reinsurance (Group) (1508 HK) experienced breakouts and China Telecom (H) (728 HK) had a breakdown. Anhui Conch Cement (914 HK) is more positive.

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Aug 11

Most Read: Swire Pacific (A), Trend Micro Inc, Hang Seng Index, Celltrion Pharm, Fila Holdings, Toyota Motor, GHCL Textiles, Kiswire Ltd, Fuji Soft Inc and more

By Smartkarma Daily Briefs | Daily Briefs, Most Read

In today’s briefing:

Thoughts On Swire Properties (1972 HK)’s Buyback
Trend Micro (4704) Up For Sale? Would Be a HUGE Buyout But How Huge? And Who?
EQD | The HSI Rebound Can Reach Higher Prices in August
Targeting Spreads by Leveraging the High Predictability of the Celltrion Merger
Trend Micro (4704 JP): Evaluating the Privatisation Rumours
Block Deal Sale of About 98 Billion Won Worth of Acushnet Holdings by Fila Holdings
Last Week in Event SPACE: Toyota, Swire, Fancl, Barito Complex, Descente
GHCL Textile Q1 FY25 Update
Korea Small Cap Gem #30: Kiswire
(Mostly) Asia-Pac M&A: Fuji Soft, C.I. TAKIRON, Pacific Smiles, GaPack, Asia Cement, Shinko Electric

Thoughts On Swire Properties (1972 HK)’s Buyback

Swire Pacific (A) (19 HK), 82%-held Swire Properties (1972 HK), and Cathay Pacific Airways (293 HK) all announced interim results this week.
Of interest was Swire Prop announcing a HK$1.5bn share buyback. Shares popped 12% on the news.
Swire Pac remains cheap on a look-through P/B of 0.34x. However, the implied stub and simple ratio (Pac/Props) have just rolled over from multi-year peaks.

Trend Micro (4704) Up For Sale? Would Be a HUGE Buyout But How Huge? And Who?

By Travis Lundy

A Reuters article overnight says Trend Micro might be up for sale. This caused the ADRs to jump 10% overnight. The remaining co-founders are 65 and 70 this year.
The stock has effectively gone sideways the last few years as Value Act has been activisting. Now one has to exercise one’s imagination to think about a possible sale price.
On a DCF basis, a PE fund couldn’t reasonably do this. Multiples are too high. That means a strategic buyer would be more likely. But Who? Why? And How much?

EQD | The HSI Rebound Can Reach Higher Prices in August

By Nico Rosti

In a previous insight we forecasted a rally for the Hang Seng Index in August. The picture has not changed, a positive close above 17344.60 is still possible.
Looking at our MRM SHORT WEEKLY model for the HSI we can see that it has not yet reached overbought levels, so it could rise further in the next weeks.
Conversely a SHORT trade will be possible from the levels we will indicate below.

Targeting Spreads by Leveraging the High Predictability of the Celltrion Merger

By Sanghyun Park

Local market views Celltrion’s shareholder survey as the start of the merger process, with a decision expected from the boards within two to three months if there’s no major opposition.
Under Korean law, if Celltrion Pharm’s market cap is under one-tenth of Celltrion’s, the merger can proceed as a small-scale merger, allowing Celltrion to avoid shareholder approval and appraisal rights.
We should leverage the merger’s high predictability to proactively target merger swap and appraisal rights spreads and build a strategy in advance.

Trend Micro (4704 JP): Evaluating the Privatisation Rumours

Trend Micro Inc (4704 JP) shares rose 14.8% on Friday after Reuters reported that it is exploring a sale after attracting buyout interest.
The interest is unsurprising due to the weak share price. Since ValueAct disclosed a stake on 8 August 2022, the shares are down 0.7% vs the Nikkei 225’s 23.6% increase.
The lack of a controlling shareholder and increased cybersecurity M&A activity support the buyout interest. A privatisation price is likely to be around JPY9,000. Valuation is undemanding at last close.

Block Deal Sale of About 98 Billion Won Worth of Acushnet Holdings by Fila Holdings

By Douglas Kim

Fila Holdings announced that its subsidiary Magnus Holdings plans to sell a 1.8% stake in Acushnet Holdings in a block deal sale worth about 98 billion won.
Our NAV valuation of Fila Holdings suggests an implied value per share of 49,192 won, representing 18.2% upside from current levels. Fila Holdings’ 51.9% stake in Acushnet Holdings.
The block deal sale of Acushnet Holdings by Magnus Holdings is likely to have a positive impact on Fila Holdings as it could result in higher capital returns to shareholders.

Last Week in Event SPACE: Toyota, Swire, Fancl, Barito Complex, Descente

The trade in Toyota Motor (7203 JP)‘s Tender offer Buyback is to understand what YOU can do in your particular position.
Despite Swire Properties (1972 HK)‘s recent share buyback, Swire Pacific (A) (19 HK) is still preferable on a look-through P/B of 0.34x.
Kirin bumps the Offer for Fancl (4921 JP). Given market gyration, it may represent enough of a switching opportunity to let those who still object in principle to re-allocate elsewhere.

GHCL Textile Q1 FY25 Update

By Sudarshan Bhandari

Rs. 1,000 crores allocated for growth, with Rs. 350 crores deployed. 25,000 spindles added by May 2025.
Shift towards value-added products, including knitting, weaving, and dyed fabrics, with plans to double revenue in 3-5 years.
Despite expansion and potential opportunities, capacity constraints and global demand shifts temper expectations in the short term.

Korea Small Cap Gem #30: Kiswire

By Douglas Kim

Kiswire Ltd (002240 KS) is the number one player for steel wire and rope products in Korea. More than 85% of its sales are generated overseas.
The company has a consistent record of generating positive net profit. It is trading at low valuations (P/B of 0.3x and EV/EBITDA of 4.5x).
Its average net profit from 2021 to 2023 are much higher than previous three years from 2018 to 2020, which is a testament of increasing demand for its products globally.

(Mostly) Asia-Pac M&A: Fuji Soft, C.I. TAKIRON, Pacific Smiles, GaPack, Asia Cement, Shinko Electric

I tally 46 – mostly firm, mostly Asia-Pac – transactions currently being discussed and analysed on Smartkarma. Inside is a timetable of upcoming key events for each deal.
Three new deals were discussed this week on Smartkarma: KKR’s tilt for Fuji Soft (9749 JP); and Itochu’s Tenders Offers for Descente (8114 JP) and C.I. TAKIRON Corporation (4215 JP).
Key updates took place on Pacific Smiles (PSQ AU), Greatview Aseptic Packaging (468 HK), L’Occitane (973 HK), Fancl Corp (4921 JP), Shinko Electric Industries (6967 JP), and Isetan Singapore (ISET SP).

💡 Before it’s here, it’s on Smartkarma

The Smartkarma Preview Pass is your entry to the Independent Investment Research Network

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✓ Company Analytics and News
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Aug 11

Daily Brief Industrials: IHI Corp and more

By Smartkarma Daily Briefs | Daily Briefs, Industrials

In today’s briefing:

IHI (7013 JP): Buy Back in for Post-Crash Recovery

IHI (7013 JP): Buy Back in for Post-Crash Recovery

By Scott Foster

1Q results supported management’s full-year sales and profit guidance, which remains unchanged. Operating profit was up 2.7x YoY on a 17% increase in sales.
Total new orders received increased by only 4.2% YoY and fell short of sales, but Aerospace & Defense orders were up 35.5% and slightly exceeded sales.
Our own forecast – above management’s guidance this year with further growth next year – and our share price target are unchanged. 21% potential upside.

💡 Before it’s here, it’s on Smartkarma

The Smartkarma Preview Pass is your entry to the Independent Investment Research Network

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✓ Company Data and News
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Aug 11

Daily Brief Energy/Materials: Kiswire Ltd, Greatview Aseptic Packaging, Conocophillips, Alamos Gold , Air Products & Chemicals, Inc, Oat Agrio, Royal Dutch Shell Plc (Adr) and more

By Smartkarma Daily Briefs | Daily Briefs, Energy & Materials Sector

In today’s briefing:

Korea Small Cap Gem #30: Kiswire
Weekly Deals Digest (11 Aug) – GA Pack, Trend Micro, Descente, Fancl, Fuji Soft, C.I. TAKIRON
ConocoPhillips (COP): Will The Marathon Oil Acquisition Be A Game Changer? – Major Drivers
Alamos Gold Inc.: Expansion of Magino
Air Products and Chemicals Inc.: How Are They Progressing In The Hydrogen Economy? – Major Drivers
Oat Agrio (4979 JP): 1H FY12/24 flash update
Shell Plc: These Are The 4 Biggest Challenges In Its Path For Growth! – Major Drivers

Korea Small Cap Gem #30: Kiswire

By Douglas Kim

Kiswire Ltd (002240 KS) is the number one player for steel wire and rope products in Korea. More than 85% of its sales are generated overseas.
The company has a consistent record of generating positive net profit. It is trading at low valuations (P/B of 0.3x and EV/EBITDA of 4.5x).
Its average net profit from 2021 to 2023 are much higher than previous three years from 2018 to 2020, which is a testament of increasing demand for its products globally.

Weekly Deals Digest (11 Aug) – GA Pack, Trend Micro, Descente, Fancl, Fuji Soft, C.I. TAKIRON

A weekly summary of key developments across ECM and Event-Driven names tracked by us across Hong Kong, Australia, New Zealand, Singapore, Japan, Indonesia, Malaysia, Thailand, Korea, India and Chinese ADRs.
ECM developments: BrainBees Solutions (0172540D IN) and WeRide (WRD US) IPOs.
Event-Driven developments: Greatview Aseptic Packaging (468 HK), C.I. TAKIRON Corporation (4215 JP), Descente Ltd (8114 JP), Fancl Corp (4921 JP), Fuji Soft Inc (9749 JP), Trend Micro Inc (4704 JP).

ConocoPhillips (COP): Will The Marathon Oil Acquisition Be A Game Changer? – Major Drivers

The second quarter earnings report for ConocoPhillips presented a mixed scenario, affirming the company’s continued operational strength along with areas that may trigger concern for prospective investors.
On a positive note, ConocoPhillips announced a 34% increase in its ordinary dividend, signaling confidence in sustainable financial health and a strong commitment to returning value to shareholders.
Furthermore, the acquisition of Marathon Oil was a highlight, poised to enhance ConocoPhillips’ operational scale and resource base, which could lead to improved efficiencies and broader market reach.

Alamos Gold Inc.: Expansion of Magino

Alamos Gold Inc. delivered strong financial and operational performance in the second quarter of 2024, marked by numerous records including production, revenue, and cash flow.
The company, bolstered by its recent acquisition of Argonaut which included the Magino and Island Gold Mines, now forecasts a significant production increase, projecting an annual rate of approximately 600,000 ounces of gold, potentially expanding to 700,000 ounces by 2026.
Baptista Research looks to evaluate the different factors that could influence the company’s price in the near future and attempts to carry out an independent valuation of the company using a Discounted Cash Flow (DCF) methodology.

Air Products and Chemicals Inc.: How Are They Progressing In The Hydrogen Economy? – Major Drivers

Air Products’ Third Quarter 2024 Earnings Results presented a mix of strong financial performances juxtaposed with challenges in certain geographical segments.
The company reported third-quarter adjusted earnings per share of $3.20, surpassing the upper range of their guidance.
This marked a 7% improvement over the previous year, primarily attributed to robust performances in the Americas and Europe, alongside effective price and productivity initiatives.

Oat Agrio (4979 JP): 1H FY12/24 flash update

Revenue in 1H FY12/24 decreased 4.2% YoY to JPY15.7bn, driven by weak performance in the agrichemicals field.
Operating profit in 1H FY12/24 decreased 38.5% YoY to JPY2.0bn, impacted by lower revenue and increased expenses.
Recurring profit and net income attributable to owners of the parent fell over 30% YoY but exceeded forecasts.

Shell Plc: These Are The 4 Biggest Challenges In Its Path For Growth! – Major Drivers

Shell’s second-quarter 2024 results reflect significant progress towards the company’s strategic goals laid out during the Capital Markets Day, underscoring a commitment to enhancing shareholder value while transitioning towards more sustainable energy practices.
Despite challenging market conditions, Shell has effectively managed to progress in its operations and financial performance.
Financially, Shell reported robust results for the quarter, with adjusted earnings of $6.3 billion and impressive cash flow generation, amounting to $13.5 billion from operations.

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Aug 11

Daily Brief TMT/Internet: Trend Micro Inc, Asustek Computer, Fuji Soft Inc, Micronics Japan, Amazon.com Inc, Motorola Solutions, Tkc Corp, Apple and more

By Smartkarma Daily Briefs | Daily Briefs, TMT/Internet

In today’s briefing:

Trend Micro (4704 JP): Evaluating the Privatisation Rumours
Asustek & Acer Key Takeaways: Strong July Revenue Growth and ‘New Product Life Cycle’ Starting 3Q24
(Mostly) Asia-Pac M&A: Fuji Soft, C.I. TAKIRON, Pacific Smiles, GaPack, Asia Cement, Shinko Electric
Micronics Japan (6871 JP): 1H FY12/24 flash update
Amazon.com Inc.: Expansion of AWS
Motorola Solutions Inc.: How Are They Executing The Expansion of International Market Presence! – Major Drivers
Tkc Corp (9746 JP): Q3 FY09/24 flash update
Apple Inc.: Are Its 2025 Lineup & Apple Intelligence Enough To Warrant Any Kind Of Optimism? – Financial Forecasts

Trend Micro (4704 JP): Evaluating the Privatisation Rumours

Trend Micro Inc (4704 JP) shares rose 14.8% on Friday after Reuters reported that it is exploring a sale after attracting buyout interest.
The interest is unsurprising due to the weak share price. Since ValueAct disclosed a stake on 8 August 2022, the shares are down 0.7% vs the Nikkei 225’s 23.6% increase.
The lack of a controlling shareholder and increased cybersecurity M&A activity support the buyout interest. A privatisation price is likely to be around JPY9,000. Valuation is undemanding at last close.

Asustek & Acer Key Takeaways: Strong July Revenue Growth and ‘New Product Life Cycle’ Starting 3Q24

By Vincent Fernando, CFA

Strong Revenue Growth Signals Robust Demand in PC and Server Markets for Asustek and Acer
Asus Management Continues to Describe Multi-Year PC Growth Cycle Ahead; 3Q24 Will Be Start of ‘New Product Lifecycle’
Visit to Guang Hua Digital Plaza to Review New PC Models First-Hand. Remain Structurally Long PC Makers; Acer, Asus, Dell.

(Mostly) Asia-Pac M&A: Fuji Soft, C.I. TAKIRON, Pacific Smiles, GaPack, Asia Cement, Shinko Electric

I tally 46 – mostly firm, mostly Asia-Pac – transactions currently being discussed and analysed on Smartkarma. Inside is a timetable of upcoming key events for each deal.
Three new deals were discussed this week on Smartkarma: KKR’s tilt for Fuji Soft (9749 JP); and Itochu’s Tenders Offers for Descente (8114 JP) and C.I. TAKIRON Corporation (4215 JP).
Key updates took place on Pacific Smiles (PSQ AU), Greatview Aseptic Packaging (468 HK), L’Occitane (973 HK), Fancl Corp (4921 JP), Shinko Electric Industries (6967 JP), and Isetan Singapore (ISET SP).

Micronics Japan (6871 JP): 1H FY12/24 flash update

Consolidated financial results for 1H FY12/24: Sales JPY26.2bn (+54.1% YoY), Operating profit JPY5.8bn (+229.4% YoY), Net income JPY3.7bn (+222.4% YoY).
Segment sales in Q2: Memory probe card sales JPY12.4bn (+124.1% YoY), Non-memory probe card sales JPY1.3bn (+66.8% YoY).
Full-year FY12/24 forecast: Sales JPY55.0bn (+43.6% YoY), Operating profit JPY11.6bn (+118.4% YoY), Net income JPY8.3bn (+101.1% YoY).

Amazon.com Inc.: Expansion of AWS

The second quarter 2024 financial results for Amazon.com Inc. showcased both growth and challenges as the company continues to navigate a complex global economic environment.
Overall, Amazon.com reported an 11% year-over-year increase in revenue, totaling $148 billion, which excludes the effects of foreign exchange rates.
The operating income notably increased by 91% year-over-year to $14.7 billion, and the free cash flow adjusted for leases surged by 664% to $51.4 billion.

Motorola Solutions Inc.: How Are They Executing The Expansion of International Market Presence! – Major Drivers

Motorola Solutions has posted a robust performance in its second quarter of 2024, reflecting notable strides in revenue and earnings amidst varied operational outcomes.
The company demonstrated a commendable 9% revenue growth, surpassing their initial projections, primarily fueled by significant contributions across all three technological divisions despite facing headwinds such as a $5 million impact from foreign exchange rates.
In the breakdown of revenues, the Products and Systems Integration (SI) segment witnessed a substantial 15% increase, buoyed by robust demand and improved supply chain conditions for Land Mobile Radio (LMR) products.

Tkc Corp (9746 JP): Q3 FY09/24 flash update

Sales grew 2.4% YoY to JPY55.2bn, with Accounting Firm segment up 3.4% YoY and Local Government segment up 0.5% YoY.
Operating profit increased 1.9% YoY to JPY13.6bn, with Accounting Firm segment up 2.1% YoY and Local Government segment up 6.4% YoY.
Net income attributable to owners of the parent decreased 0.7% YoY to JPY9.7bn, despite overall sales and operating profit growth.

Apple Inc.: Are Its 2025 Lineup & Apple Intelligence Enough To Warrant Any Kind Of Optimism? – Financial Forecasts

Apple reported an impressive fiscal third quarter with revenue reaching $85.8 billion, marking a 5% year-over year increase and setting a new record for the June quarter.
This growth in revenue was accompanied by a double-digit increase in earnings per share (EPS) to $1.40, also a record for the period, reflecting robust financial performance amidst challenging market conditions.
On the product forefront, iPhone sales were slightly down by 1% at $39.3 billion compared to last year, although there was growth on a constant-currency basis.

💡 Before it’s here, it’s on Smartkarma

The Smartkarma Preview Pass is your entry to the Independent Investment Research Network

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✓ Custom Watchlists
✓ Company Data and News
✓ Events & Webinars

Aug 11

Daily Brief Industrials: IHI Corp and more

By Smartkarma Daily Briefs | Daily Briefs, Industrials

In today’s briefing:

IHI (7013 JP): Buy Back in for Post-Crash Recovery

IHI (7013 JP): Buy Back in for Post-Crash Recovery

By Scott Foster

1Q results supported management’s full-year sales and profit guidance, which remains unchanged. Operating profit was up 2.7x YoY on a 17% increase in sales.
Total new orders received increased by only 4.2% YoY and fell short of sales, but Aerospace & Defense orders were up 35.5% and slightly exceeded sales.
Our own forecast – above management’s guidance this year with further growth next year – and our share price target are unchanged. 21% potential upside.

💡 Before it’s here, it’s on Smartkarma

The Smartkarma Preview Pass is your entry to the Independent Investment Research Network

✓ Unlimited Research Summaries
✓ Personalised Alerts
✓ Custom Watchlists
✓ Company Data and News
✓ Events & Webinars

Aug 11

Daily Brief Consumer: Toyota Motor, GHCL Textiles, Meituan, Toyota Motor Corp Spon Adr, Booking Holdings, China Education Group, MercadoLibre , Etsy Inc, Norwegian Cruise Line Holdings, Bausch + Lomb and more

By Smartkarma Daily Briefs | Consumer, Daily Briefs

In today’s briefing:

Last Week in Event SPACE: Toyota, Swire, Fancl, Barito Complex, Descente
GHCL Textile Q1 FY25 Update
O2O Playing a More Prominent Role in China Street Drinks
Toyota Motor Corporation: Investment In Future Technologies & Geographic Optimization Driving Our Optimism! – Major Drivers
Booking Holdings: Their Strategy Of Expansion Into Alternative Accommodations Paying Off? – Major Drivers
Technically Speaking, Breakouts and Breakdowns: HONG KONG (AUGUST 9)
MercadoLibre Inc.: Strategic Utilization of Distribution Space in Brazil & Other Major Drivers
Etsy Inc.: Leveraging Advanced Technologies for Enhanced User Experience! – Major Drivers
Norwegian Cruise Line Holdings Ltd.: These Are The 4 Major Growth Levers Driving Our ‘Buy’ Rating! – Financial Forecasts
Bausch + Lomb Corporation: Acquisition of Trukera Medical A Potential Game Changer? – Major Drivers

Last Week in Event SPACE: Toyota, Swire, Fancl, Barito Complex, Descente

The trade in Toyota Motor (7203 JP)‘s Tender offer Buyback is to understand what YOU can do in your particular position.
Despite Swire Properties (1972 HK)‘s recent share buyback, Swire Pacific (A) (19 HK) is still preferable on a look-through P/B of 0.34x.
Kirin bumps the Offer for Fancl (4921 JP). Given market gyration, it may represent enough of a switching opportunity to let those who still object in principle to re-allocate elsewhere.

GHCL Textile Q1 FY25 Update

By Sudarshan Bhandari

Rs. 1,000 crores allocated for growth, with Rs. 350 crores deployed. 25,000 spindles added by May 2025.
Shift towards value-added products, including knitting, weaving, and dyed fabrics, with plans to double revenue in 3-5 years.
Despite expansion and potential opportunities, capacity constraints and global demand shifts temper expectations in the short term.

O2O Playing a More Prominent Role in China Street Drinks

By Andy Fu

On August 7th, Meituan’s on-demand order volume reached a historical high of 98mn on surging orders from street drinks. Meituan has connected to the backend systems of street drink vendors;
Delivery order is a double-edged sword. It boosts volume at the expense of margin. Further, the ownership of the volume is questionable;
With Pin-hao-fan, Meituan already atomized the small restaurants. Now Meituan is playing the same trick with street drinks. The result will be more dramatic to the benefit of Meituan.

Toyota Motor Corporation: Investment In Future Technologies & Geographic Optimization Driving Our Optimism! – Major Drivers

Toyota Motor Corporation has released its financial results for the fiscal year ended March 2024, providing a comprehensive overview that reflects both the company’s recent successes and its strategic investments towards future growth.
In fiscal year 2024, Toyota reported robust financial performance with total vehicle sales reaching 9.443 million units, marking a 7.0% increase from the previous fiscal year.
This growth was largely propelled by escalated sales outside Japan, counterbalancing the dip in domestic sales due to shipment suspensions from Daihatsu Motor Company and Toyota Industries Corporation.

Booking Holdings: Their Strategy Of Expansion Into Alternative Accommodations Paying Off? – Major Drivers

Booking Holdings, a prominent player in the global online travel market, reported its second quarter 2024 financial results, highlighting a performance that exceeded expectations in various key metrics including room nights, revenue, and adjusted EBITDA.
Room nights booked during the quarter grew by 7% year-over-year, achieving a total of 287 million.
Revenue and adjusted EBITDA both rose by 7% to $5.9 billion and $1.9 billion respectively, while adjusted earnings per share experienced an 11% increase.

Technically Speaking, Breakouts and Breakdowns: HONG KONG (AUGUST 9)

By David Mudd

Consumer sectors in China are gaining more focus as the government lays out steps to increase domestic consumption.
Hong Kong markets performed well relative to region during recent market turmoil.
China Education Group (839 HK) and China Reinsurance (Group) (1508 HK) experienced breakouts and China Telecom (H) (728 HK) had a breakdown. Anhui Conch Cement (914 HK) is more positive.

MercadoLibre Inc.: Strategic Utilization of Distribution Space in Brazil & Other Major Drivers

MercadoLibre’s financial performance in the second quarter of 2024 highlighted robust growth and profitability, demonstrating strong execution across its primary business segments: commerce and fintech.
Notably, Marcos Galperin, the company’s CEO, reiterated MercadoLibre’s commitment to enhancing the financial and operational accessibility for numerous small and medium-sized enterprises across Latin America, a principle that has been foundational since the company’s inception 25 years ago.
From a financial perspective, the revenue reached $5.1 billion, marking a significant year-over-year growth of over 40%.

Etsy Inc.: Leveraging Advanced Technologies for Enhanced User Experience! – Major Drivers

Etsy, during the company’s Second Quarter 2024 Earnings, reported a Gross Merchandise Sales (GMS) of $2.9 billion, reflecting a slight year-over-year decline of 2.1% on a consolidated basis.
Despite the dip in GMS, revenue saw an uptick of 3%, totaling $648 million.
Moreover, Etsy maintained a robust adjusted EBITDA margin of approximately 28%.

Norwegian Cruise Line Holdings Ltd.: These Are The 4 Major Growth Levers Driving Our ‘Buy’ Rating! – Financial Forecasts

Norwegian Cruise Line Holdings recently discussed its financial performance for the second quarter of 2024, and the results have been promising, outperforming the company’s expectations and leading to upward revisions in full-year guidance.
President and CEO Harry Sommer along with CFO Mark Kempa provided an overview of the quarter’s milestones, emphasizing the company’s strategic balance between return on experience (ROX) and return on investment (ROI).
The positive outcomes from the quarter were underpinned by robust demand and strong pricing dynamics, leading to record-breaking advanced ticket sales.

Bausch + Lomb Corporation: Acquisition of Trukera Medical A Potential Game Changer? – Major Drivers

In the second quarter of 2024, Bausch + Lomb demonstrated notable performance across its diverse business segments and geographic regions, sustaining a trajectory of robust growth.
The company reported a significant year-over-year constant currency revenue growth of 20%, reflecting increases in both product volume and geographic expansion.
Revenue growth was consistently robust across various segments, with Surgical, Vision Care, and Pharmaceuticals growing by 9%, 11%, and 61%, respectively.

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Aug 11

Daily Brief Health Care: Acadia Healthcare Co, Jazz Pharmaceuticals, Regeneron Pharmaceuticals, Vertex Pharmaceuticals and more

By Smartkarma Daily Briefs | Daily Briefs, Healthcare

In today’s briefing:

Acadia Healthcare Company: Can They Achieve Portfolio Optimization through Facility Closures? – Major Drivers
Jazz Pharmaceuticals plc: Expansion of Xywav in Narcolepsy and Idiopathic Hypersomnia Markets & Other Major Drivers
Regeneron Pharmaceuticals: A Deep Dive Into Bear’s Perspective! – Major Drivers
Vertex Pharmaceuticals: Advancements in Rare Disease Treatments & Overall Pipeline Development Driving Growth! – Major Drivers

Acadia Healthcare Company: Can They Achieve Portfolio Optimization through Facility Closures? – Major Drivers

Acadia Healthcare’s second quarter of 2024 earnings presentation illustrated a company navigating the complex terrain of the behavioral healthcare industry with notable successes as well as areas that demand attention.
In their earnings report, the company reported revenue of $796 million, marking an 8.8% increase over the previous year, driven by rate improvements and growth in patient days.
This growth is a reflection of Acadia’s ability to capture market demand, particularly in the behavioral healthcare sector, which continues to see rising need.

Jazz Pharmaceuticals plc: Expansion of Xywav in Narcolepsy and Idiopathic Hypersomnia Markets & Other Major Drivers

Jazz Pharmaceuticals recently reported its financial results for the second quarter of 2024, reflecting strong commercial performance and significant revenue growth across its diversified portfolio, which facilitated the company’s largest revenue quarter in its history, surpassing $1 billion.
In the neuroscience therapeutic area, Xywav, a key product for narcolepsy and idiopathic hypersomnia (IH), highlighted the portfolio with a significant increase of 13% in net sales compared to the same quarter the previous year.
Baptista Research looks to evaluate the different factors that could influence the company’s price in the near future and attempts to carry out an independent valuation of the company using a Discounted Cash Flow (DCF) methodology.

Regeneron Pharmaceuticals: A Deep Dive Into Bear’s Perspective! – Major Drivers

Regeneron Pharmaceuticals reported substantial growth in its second quarter of 2024, with a 12% increase in total revenues to $3.55 billion.
This rise was driven significantly by the U.S. sales of EYLEA HD, which reached $304 million in its third quarter on the market.
The combined net product sales of EYLEA HD and EYLEA were $1.53 billion, marking a 2.3% year-over-year growth.

Vertex Pharmaceuticals: Advancements in Rare Disease Treatments & Overall Pipeline Development Driving Growth! – Major Drivers

Vertex Pharmaceuticals displayed robust performance in the second quarter of 2024, marked by significant progress across its various operational and developmental sectors.
The company’s revenue for the quarter was $2.65 billion, representing a 6% increase year-over-year.
Most notably, Vertex has raised its full-year product revenue guidance to between $10.65 billion and $10.85 billion, indicating a projected growth of approximately 9% compared to 2023.

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Aug 11

Daily Brief Financials: Advance Create, Coinbase Global , Intercontinental Exchange and more

By Smartkarma Daily Briefs | Daily Briefs, Financials

In today’s briefing:

Advance Create (8798 JP): Q3 FY09/24 flash update
Coinbase Global: These Are The 4 Biggest Factors Driving Our Bullish Thesis! – Major Drivers
Intercontinental Exchange: Sustaining Growth Through Strategic Acquisitions! – Major Drivers

Advance Create (8798 JP): Q3 FY09/24 flash update

Revenue decreased JPY2.2bn YoY (-26.0% YoY) to JPY6.4bn, with significant declines in the Insurance Agency and Media businesses.
Operating loss decreased JPY26mn YoY to JPY610mn, with notable improvements in the Insurance Agency and Media businesses.
Full-year forecast revised: Revenue JPY9.5bn, Operating profit JPY200mn, Recurring profit JPY100mn, Net income JPY70mn, EPS JPY3.19.

Coinbase Global: These Are The 4 Biggest Factors Driving Our Bullish Thesis! – Major Drivers

Coinbase’s Q2 2024 earnings presentation revealed several vital insights into the company’s current financial health and its strategic initiatives moving forward.
As an investment consideration, the company disclosed robust endeavors in regulatory clarity, product development, and a diversified revenue stream along with advances in subscription and services reaching an all-time high despite a decline in transaction revenue from the previous quarter.
On the regulatory front, Coinbase continues to emphasize significant advancements, noting active participation in shaping cryptocurrency legislation—an undertaking likely to have profound effects on not only the company’s operations but also the broader crypto ecosystem.

Intercontinental Exchange: Sustaining Growth Through Strategic Acquisitions! – Major Drivers