Category

Daily Briefs

Oct 21
0

Daily Brief Consumer: Seven & I Holdings, Exedy Corp, JD.com Inc (ADR), China Resources Beverage, Alibaba Group Holding , Mazda Motor and more

By | Consumer, Daily Briefs

In today’s briefing:

  • Merger Arb Mondays (21 Oct) – Seven & I, Fuji Soft, Henlius, Canvest, GA Pack, Dyna-Mac
  • [JAPAN ACTIVISM] Murakami Group Now 23.5% on Exedy (7278) – LOTS of Room Left To Run
  • JD.com (JD US): Boycotted by Male Users, Denies Run on JD Finance
  • Pre-IPO China Resources Beverage – Due to the Pain Points, High Valuation Is Not Justified
  • China Consumption Weekly (21 Oct 2024): Sun Art, Alibaba, Tesla, JD.com
  • Unloved Japan Roundup: Bracing for Q3

Merger Arb Mondays (21 Oct) – Seven & I, Fuji Soft, Henlius, Canvest, GA Pack, Dyna-Mac

By Arun George

[JAPAN ACTIVISM] Murakami Group Now 23.5% on Exedy (7278) – LOTS of Room Left To Run

By Travis Lundy

  • This past week, activist Murakami-san’s City Index Eleventh announced that the companies which jointly report now own 20.3%, which translates to 23.5% of voting rights. Average in-price?  ¥2,928/share.
  • The 2030 Plan from April saw 8% ROE by 2030, 6% by 2026. They’ve since bought back 11% of shares out. Better, but 1/4 of market cap is net cash+securities.
  • If one assumes they spend the net cash+securities to buy back stock 10% higher than here, pro-forma PBR is <0.6x. ROE would be 7+%. There’s room to run here, still. 

JD.com (JD US): Boycotted by Male Users, Denies Run on JD Finance

By Ming Lu

  • On October 18, JD denies there is a run on JD Finance.
  • Many male users claimed they boycott JD for the invitation of Miss Yang, a talk show celebrity.
  • We believe the event will negatively impact JD and benefit Alibaba.

Pre-IPO China Resources Beverage – Due to the Pain Points, High Valuation Is Not Justified

By Xinyao (Criss) Wang

  • The whole industry has entered a medium to low-speed growth stage, and the industry’s future growth rate will remain single-digit growth. So, CR Beverage’s future performance decline is inevitable.
  • Due to serious homogenization/competition of packaged drinking water market, there’s not much room for innovation/iteration. CR Beverage’s sales-driven model is hard to bring “new story” to break through the dilemma. 
  • CR Beverage is clearly inferior to Nongfu Spring. Its valuation should be lower than Nongfu Spring. We think reasonable valuation of CR Beverage is about US$4 billion (or lower).

China Consumption Weekly (21 Oct 2024): Sun Art, Alibaba, Tesla, JD.com

By Ming Lu

  • Alibaba is selling Sun Art, a listed supermarket subsidiary, as Sun Art’s revenue is shrinking.
  • Alibaba gained 6 million new retailers on its Taobao Tmall platform year to date.
  • In September Tesla’s sales volume increased by 66% YoY and all major Chinese NEV grew strongly.

Unloved Japan Roundup: Bracing for Q3

By Michael Allen

  • Mazda’s domestic unit volume was up 24% in September, compared to an industrywide total of only 1.1%.
  • Meanwhile, Q2 consensus EBIT estimates have come down by 32% since the release of Q1 results.
  • But the yield is over 6%, and the Payout ratio is only 17% even on the new estimates.

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Oct 21
0

Daily Brief Health Care: China Traditional Chinese Medicine, Legochem Biosciences, CVRx and more

By | Daily Briefs, Healthcare

In today’s briefing:

  • China Healthcare Weekly (Oct.20)-A Big Lesson from China TCM’s Deal Break, “Must Option” of Biotech
  • Legochem Biosciences (141080 KS): New ADC Deal Enhances Confidence on ConjuAll Technology Platform
  • CVRX: Great Technology that Now Has a Bright Future

China Healthcare Weekly (Oct.20)-A Big Lesson from China TCM’s Deal Break, “Must Option” of Biotech

By Xinyao (Criss) Wang

  • The “industry clearing”  of innovative drug companies is far longer and more brutal than imagined. But Chinese innovative drug ecosystem will ultimately usher in a better innovation pattern in the future.
  • For every innovative pharmaceutical company with ambitious goals, globalization is a “must option”. With more and more Chinese biotech achieving success, the internationalization prospects will become better and better.
  • China TCM’s privatization failure made us realize large SOEs we always believe in would violate their commitments to market/investors.Now, we need to get back to the fundamentals to minimize losses.

Legochem Biosciences (141080 KS): New ADC Deal Enhances Confidence on ConjuAll Technology Platform

By Tina Banerjee

  • Legochem Biosciences (141080 KS) entered into a license agreement with Ono Pharmaceutical for LCB97, a pre-clinical stage ADC targeting solid tumors for an upfront and milestone payment of $700M.
  • Legochem is now pursuing high-value package deals, combining platform and product deals or multi-target product deals. The above-mentioned deal with Ono is the first such package deal.
  • Legochem’s ADC technology platform is seeing rising demand as number of providers decreased (due to recent M&A deals) while big pharmaceutical companies are rapidly expanding their ADC businesses.   

CVRX: Great Technology that Now Has a Bright Future

By Pyari Menon

  • CVRx (CVRX US) was up 19% (including after hours) as the AMA accepted CPT Category I codes for Barostim. Codes are to be implemented on January 1, 2026
  • With Category I CPT codes CVRX should see the benefits of clinical validation, regulatory de-risking, reimbursement potential, increased market access and significant improvement in revenue potential
  • Barostim is the only neuromodulation device for heart failure and resistant hypertension, positioning CVRx as a compelling acquisition target due to its unique technology and strong market potential.

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Oct 20
0

Daily Brief Quantitative Analysis: A-H Premium Weekly (Oct 18th):TSINGTAO and more

By | Daily Briefs, Quantitative Analysis

In today’s briefing:

  • A-H Premium Weekly (Oct 18th):TSINGTAO, Goldwind, HAITONG, Guotai Junan Securities, Haohai, FMSH
  • HK Short Interest Weekly: Smic, Anta Sports, Cspc Pharma, Nci, Meituan, Tencent, Baba
  • Hong Kong Connect Flows (Oct 18th): Alibaba, CCB, SMIC, China Mobile, ICBC, Meituan, HKEx

A-H Premium Weekly (Oct 18th):TSINGTAO, Goldwind, HAITONG, Guotai Junan Securities, Haohai, FMSH

By Ke Yan, CFA, FRM

  • We analyse the changes of A-H premium on 149 stocks over the last week. The average A-H premium was 98.3% as of Oct 18th.
  • The average A-H premium changed by 3.8ppt week-on-week, led by consumer discretionary, consumer staples, financials and offset by health care.
  • We highlight weekly changes in A-H premium for TSINGTAO, Goldwind, HAITONG, Guotai Junan Securities, Haohai, FMSH.

HK Short Interest Weekly: Smic, Anta Sports, Cspc Pharma, Nci, Meituan, Tencent, Baba

By Ke Yan, CFA, FRM

  • We analyzed the latest HK SFC report for aggregate short position as of Oct 10th.
  • Top short increases and decreases were tabulated for one week and four week period. 
  • We highlight short changes in Smic, Anta Sports, Cspc Pharma, Nci, Meituan, Tencent, Baba.

Hong Kong Connect Flows (Oct 18th): Alibaba, CCB, SMIC, China Mobile, ICBC, Meituan, HKEx

By Ke Yan, CFA, FRM

  • We analyze the weekly Hong Kong Connect flows with our data engine for holding position as of October 18th.
  • The top stocks by inflows and outflows were tabulated for all market, HSCEI, mid cap and s/mid cap groups.
  • We highlight flows for Alibaba, CCB, SMIC, China Mobile, ICBC, Meituan, HKEx, Kuaishou Technology, CICC, Citic Securities.

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Oct 20
0

Daily Brief ESG: A Compensation Model Should Be Created to Maximize Outside Directors’ Abilities as Necessary Talents and more

By | Daily Briefs, ESG

In today’s briefing:

  • A Compensation Model Should Be Created to Maximize Outside Directors’ Abilities as Necessary Talents

A Compensation Model Should Be Created to Maximize Outside Directors’ Abilities as Necessary Talents

By Aki Matsumoto

  • Outside director compensation is increasing, but there is a considerable difference in compensation for outside directors between large and small companies and between small and medium-sized publicly traded companies.
  • Every time a scandal occurs, there is a lack of shareholder-oriented management and a smattering of outside board members who turn a blind eye to the scandal.
  • A compensation model that includes equity compensation should be created to maximize the power of outside directors, with “management from the perspective of shareholders” as a necessary condition.

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Oct 20
0

Daily Brief Thematic (Sector/Industry): Japan Weekly | Insane AI Demand and more

By | Daily Briefs, Thematic (Sector/Industry)

In today’s briefing:

  • Japan Weekly | Insane AI Demand
  • As Good as Gold – Take the Money and Run?
  • GEMWeekly (18 Oct 2024): Further Chinese Stimulus; China Macro Data; TSMC, Alibaba, Baidu
  • APAC Healthcare Weekly (Oct 20)- Eisai, Daiichi Sankyo, Junshi Bioscience, Akeso, Celltrion, Neuren
  • Pakistan IPPs: IPPs agreement revision/termination; Payouts to be impacted

Japan Weekly | Insane AI Demand

By Mark Chadwick

  • U.S. stocks showed a “slightly bullish” trend this week, driven by stronger-than-expected September Retail Sales, which pushed the S&P 500 up 0.9%
  • Japan’s stock market experienced a volatile week, with the Nikkei 225 Index declining 1.6% and the broader Topix Index down 0.6%
  • ASML’s cautious guidance hit Japanese SPE Stocks, but AI-related chip demand remains “insane” according to TSMC

As Good as Gold – Take the Money and Run?

By Rikki Malik

  • Precious Metals and the associated equities have been a high-conviction investment idea for us in 2024
  • Gold is up 39% YTD and a representative index of gold miners is up 32%
  • Should we take the money and run? Is it over?

GEMWeekly (18 Oct 2024): Further Chinese Stimulus; China Macro Data; TSMC, Alibaba, Baidu

By Wium Malan, CFA

APAC Healthcare Weekly (Oct 20)- Eisai, Daiichi Sankyo, Junshi Bioscience, Akeso, Celltrion, Neuren

By Tina Banerjee

  • Australia has recommended against the approval of Eisai Alzheimer’s disease drug Leqembi. Daiichi Sankyo’s Enhertu received conditional approval in China for the treatment of non-small cell lung cancer.
  • Nihon Kohden has revised its financial forecasts for H1FY25. Shanghai Junshi Biosciences’ toripalimab has been approved for marketing in India for treatment of recurrent or metastatic nasopharyngeal carcinoma.
  • Akeso Biopharma raised ~$250M, for funding its R&D activities. Celltrion has filed phase 3 clinical trial application in Europe for Cosentyx biosimilar in patients with moderate to severe plaque psoriasis.

Pakistan IPPs: IPPs agreement revision/termination; Payouts to be impacted

By Topline Securities

  • Reportedly, Government of Pakistan is planning to enter into agreement with 5 power producers in Pakistan for premature termination of their Power Purchase Agreement (PPA). This includes 2 listed names, i.e. base power plant for Hub Power (HUBC), and Lalpir Power Limited (LPL), and 1 indirect listed name, Roush Power (through Altern Energy), and 2 unlisted players, Saba Power and Atlas Power.
  • Based on the news reports, 4 of the above are set to sign agreement with the Governments, while 1 (HUBC) is expected to sign it soon.
  • The objective behind early termination of these plants is to avoid any further capacity payments to the producers, thus taking one step ahead out of many to reduce power cost in the country. This step may result in benefit of Rs0.6/Kwh, as per news.

Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

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Oct 20
0

Daily Brief ECM: Horizon Robotics (9660 HK) IPO: The Bear Case and more

By | Daily Briefs, ECM

In today’s briefing:

  • Horizon Robotics (9660 HK) IPO: The Bear Case

Horizon Robotics (9660 HK) IPO: The Bear Case

By Arun George

  • Horizon Robotics (9660 HK), a provider of autonomous driving products and services, is seeking to raise up to US$696 million through a HKEx IPO.
  • In Horizon Robotics (9660 HK) IPO: The Bull Case, we highlighted the key elements of the bull case. In this note, we outline the bear case.
  • The bear case rests on high related parties’ revenue, customer concentration risk, pricing pressure, uncertain path to profitability, high cash conversion cycle and FCF burn.

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Oct 20
0

Daily Brief Event-Driven: TCM (570 HK): Likely Rush for The Exits As Deal Busts and more

By | Daily Briefs, Event-Driven

In today’s briefing:

  • TCM (570 HK): Likely Rush for The Exits As Deal Busts
  • Fuji Soft (9749) Reiterates Support for KKR Tender#1, Recos Shareholders Wait, Ignores Nozawa Letter
  • (Mostly) Asia-Pac M&A: GJS/Haitong, Fuji Soft, Bossini, Dyna-Mac, Beijing Capital Grand, TCM
  • A/H Premium Tracker (To 18 Oct 2024): AH Premia Drop Sharply; High Premia May Contract More
  • HK Connect SOUTHBOUND Flows (To 18 Oct 2024); Net Flows Big, Selling in Brokers, Buying in Props
  • Last Week in Event SPACE: Seven & I/Couche-Tard, Intouch, SAMTY, Korea Zinc/Young Poong
  • Weekly Deals Digest (20 Oct) – China TCM, GA Pack, Tokyo Metro, Rigaku, CR Beverage, Horizon Robotic

TCM (570 HK): Likely Rush for The Exits As Deal Busts

By David Blennerhassett

  • China Traditional Chinese Medicine (570 HK)  (TCM) has been a frustrating deal, for a deal that shouldn’t be frustrating.
  • As feared from its 16th October monthly update, the inability to secure investor group consents appears to have torpedoed the transaction. Will we eventually find out why this got stonewalled?
  • This deal lapse changes the Hong Kong M&A landscape; if you can’t rely on SOE transactions to get up, what next?  The immediate question now is downside support on Monday.  

Fuji Soft (9749) Reiterates Support for KKR Tender#1, Recos Shareholders Wait, Ignores Nozawa Letter

By Travis Lundy

  • On Tuesday, Fuji Soft Inc (9749 JP) said they had received the legally-binding Bain proposal on 11 October, but noted they could not confirm founder Nozawa-san’s agreement or intentions.
  • Founder Nozawa Hiroshi responded with a pair of impassioned letters Thursday criticising process, asking Fuji Soft to withdraw support for KKR, and switch to or allow the Bain Offer.
  • Fuji Soft on Friday reiterated support for the KKR First Tender, but interestingly, saw a majority resolve to suggest common shareholders NOT tender because of the optionality.

(Mostly) Asia-Pac M&A: GJS/Haitong, Fuji Soft, Bossini, Dyna-Mac, Beijing Capital Grand, TCM

By David Blennerhassett

A/H Premium Tracker (To 18 Oct 2024): AH Premia Drop Sharply; High Premia May Contract More

By Travis Lundy

  • Huge volumes traded on the mainland, Southbound volumes dropped, AH Premia contracted a little bit, but not much. Things are starting to stabilise.
  • Average AH pairwise volatility is super high. Intracorrelation of spreads quite low. Lots of room to market-make wide spreads/high premia. High premia may continue to contract on speculation.
  • Continuing different onshore and offshore opinion regarding the nature and vibe of Chinese stimulus will continue to lead to interesting dispersion. Identify the trend, then market make around it.

HK Connect SOUTHBOUND Flows (To 18 Oct 2024); Net Flows Big, Selling in Brokers, Buying in Props

By Travis Lundy

  • This past week saw mainland investors trade HK$476bn of stock. Not as big as last “week” but still big. BABA buying has slowed, but net buying was still HK$24.4bn 
  • The buying is starting to see a longer tail of net positive names, and properties this week saw big net buying, even before the Sunac placement which added more.
  • High-Div SOEs are seeing outflows as beta sees inflows. I expect this to continue.

Last Week in Event SPACE: Seven & I/Couche-Tard, Intouch, SAMTY, Korea Zinc/Young Poong

By David Blennerhassett

  • Couche-Tard execs do the rounds in Tokyo, complaining about not being able to do the rounds. This sounds like they are trying to make themselves sound nice. For now
  • First the low-balled VTOs for AIS (ADVANC TB) and Thaicom (THCOM TB). Then the Intouch (INTUCH TB)/Gulf Energy (GULF TB) amalgamation. Then, arguably, the next unorthodox development will take place.
  • Investors buying SAMTY HOLDINGS (187A JP) in size may withhold shares, either they’ll try to become the fulcrum investor to get into the Bidco OR they will try for a bump.

Weekly Deals Digest (20 Oct) – China TCM, GA Pack, Tokyo Metro, Rigaku, CR Beverage, Horizon Robotic

By Arun George

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Oct 20
0

Daily Brief Equity Bottom-Up: Allegro MicroSystems Inc.: Enhanced Product Portfolio With Focus on Automotive & E-mobility Applications Driving Our Bullishness! – Major Drivers and more

By | Daily Briefs, Equity Bottom-Up

In today’s briefing:

  • Allegro MicroSystems Inc.: Enhanced Product Portfolio With Focus on Automotive & E-mobility Applications Driving Our Bullishness! – Major Drivers
  • Asian Dividend Gems: Puregold Price Club
  • NextAge (3186): What Went Wrong?
  • Blackbaud Inc.: Is The Recent Underperformance Here To Stay? – Major Drivers
  • frontdoor Inc.: Engagement & Upscaling via Technological Advancements & Other Major Developments
  • Gentex Corporation: Recent Expansion of Full Display Mirror (FDM) Adoption
  • Monthly Container Shipping Tracker: As Momentum Wanes, Best to Avoid Carriers’ Shares (October 2024)
  • Halozyme Therapeutics Inc.: New Launches
  • Braze Inc.: These Are The 5 Factors Driving Our ‘Buy’ Rating! – Major Drivers
  • 10x Genomics Inc.: How Are They Adapting to Market Conditions & Customer Needs? – Major Drivers

Allegro MicroSystems Inc.: Enhanced Product Portfolio With Focus on Automotive & E-mobility Applications Driving Our Bullishness! – Major Drivers

By Baptista Research

  • Allegro MicroSystems presented their first fiscal quarter 2025 results, positioning themselves within a competitive and challenging market environment.
  • Positive indicators can be discerned from their performance, although there remain areas of concern which reflect broader market conditions and segment-specific issues.
  • Starting with the positives, Allegro MicroSystems reported first-quarter sales of $167 million, which was above the midpoint of their guidance.

Asian Dividend Gems: Puregold Price Club

By Douglas Kim

  • Puregold has built an enormous moat in the Philippines around its hypermarket, supermarket, and discount/membership stores, which is evident on its steady growth in sales and profits amid challenging  environment. 
  • Puregold has attractive valuations. Puregold is trading at attractive valuations of 2.7x EV/EBITDA, P/E of 8.6x, and P/B of 0.9x, based on 2025 consensus earnings estimates.
  • In the next several years, the Philippines is expected to move into the upper middle-income economy which should have a positive impact on the consumption-led categories including supermarkets and hypermarkets.

NextAge (3186): What Went Wrong?

By Michael Allen

  • Sales per outlet and gross margin per vehicle were supposed to rise in Q3. Instead, both went south, causing management to lower FY guidance about 50%. 
  • Evidence from the 1st and 2nd quarters that indicated an immanent turnaround simply vanished in the 3rd quarter. 
  • We lower our rating form “Massive Growth at Huge Discount” to “Decent Growth at Reasonable Price, No immanent catalyst.”

Blackbaud Inc.: Is The Recent Underperformance Here To Stay? – Major Drivers

By Baptista Research

  • Blackbaud, Inc. reported a strong second quarter in 2024, showing significant improvement in various financial metrics and advancing its strategic initiatives.
  • The company, a leading provider of software to power social impact, has focused on product innovation tailored for non-profit organizations while implementing crucial revenue initiatives and maintaining careful attention to cost management and cash flow enhancement.
  • 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.

frontdoor Inc.: Engagement & Upscaling via Technological Advancements & Other Major Developments

By Baptista Research

  • Frontdoor, Inc. delivered a robust financial performance for the second quarter of 2024, with notable progress on strategic fronts, despite facing macroeconomic challenges and a tough real estate environment.
  • The company reported a revenue increase of 4% reaching $542 million and observed a significant expansion in gross margin, up by 470 basis points to 56%.
  • Adjusted EBITDA improved by 31% to $158 million, and free cash flow saw a substantial rise, more than doubling to $91 million.

Gentex Corporation: Recent Expansion of Full Display Mirror (FDM) Adoption

By Baptista Research

  • Gentex Corporation reported its financial results for the second quarter of 2024, revealing challenges in light vehicle production and sales.
  • Net sales for the quarter were $572.9 million, a decrease from $583.5 million in the same period last year.
  • The decline is attributed to a 3% drop in light vehicle production in North America, Europe, and Japan/Korea.

Monthly Container Shipping Tracker: As Momentum Wanes, Best to Avoid Carriers’ Shares (October 2024)

By Daniel Hellberg

  • In the September data are clear signs of slowing momentum & price moderation
  • Seasonality, NAM de-stocking, anniversary of Red Sea re-routes all contributing
  • Without catalysts, we would AVOID holding shares of global container names

Halozyme Therapeutics Inc.: New Launches

By Baptista Research

  • Halozyme’s recent quarterly performance underscored a strong trajectory in its financial and operational fronts.
  • The company, which specializes in the ENHANZE drug delivery technology, reported robust second-quarter earnings, with total revenue hitting $231 million, showing a growth that aligns with the company’s full-year expectations of 13% to 22%.
  • Notably, royalty revenues increased by 12%, reaching $125 million.

Braze Inc.: These Are The 5 Factors Driving Our ‘Buy’ Rating! – Major Drivers

By Baptista Research

  • Braze, a prominent player in customer engagement technology, showcased a robust fiscal second quarter for 2025, demonstrating continued growth and financial improvements.
  • The company reported a 26% rise in revenue, reaching $145.5 million, driven by both existing customer expansions and new client acquisitions.
  • Notably, non-GAAP gross margin improved by 90 basis points year-over-year to 70.9%, reflecting operational efficiencies.

10x Genomics Inc.: How Are They Adapting to Market Conditions & Customer Needs? – Major Drivers

By Baptista Research

  • 10x Genomics, a leader in single-cell and spatial technologies, presented a mixed financial and operational report for Q2 2024, characterized by modest revenue growth alongside strategic advancements and evident pressures from the external economic environment.
  • On the financial front, 10x Genomics reported a revenue increment of 4% year-over-year, reaching $153 million, driven particularly by robust demand for spatial consumables and a sequential increase in single-cell consumables.
  • Notably, the company achieved a free cash flow positive status during the quarter.

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Oct 20
0

Daily Brief Macro: OPEC and more

By | Daily Briefs, Macro

In today’s briefing:

  • OPEC, EIA, and IEA Slash Demand Forecasts Again; EIA Sees US LNG Exports Boosting Henry Hub Prices

OPEC, EIA, and IEA Slash Demand Forecasts Again; EIA Sees US LNG Exports Boosting Henry Hub Prices

By Suhas Reddy

  • OPEC cuts demand growth estimates for the third consecutive month, lowering its 2024 and 2025 forecasts by 4.9% and 5.7%, respectively, citing demand weakness in China.
  • Total production of OPEC members obliged to implement supply cuts averaged 21.32m bpd in September, exceeding the target by 180k bpd.
  • The EIA reduced its 2024 and 2025 oil price forecasts due to September’s sharp decline but expects prices to rise from current levels on declining oil inventories.

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Oct 20
0

Daily Brief United States: Crude Oil, Blackbaud Inc, frontdoor Inc, Gentex Corp, Halozyme Therapeutics, Power Integrations, Rambus, Sabre Corp, Sensata Technologies Holding P, Sonos Inc and more

By | Daily Briefs, United States

In today’s briefing:

  • OPEC, EIA, and IEA Slash Demand Forecasts Again; EIA Sees US LNG Exports Boosting Henry Hub Prices
  • Blackbaud Inc.: Is The Recent Underperformance Here To Stay? – Major Drivers
  • frontdoor Inc.: Engagement & Upscaling via Technological Advancements & Other Major Developments
  • Gentex Corporation: Recent Expansion of Full Display Mirror (FDM) Adoption
  • Halozyme Therapeutics Inc.: New Launches
  • Power Integrations Inc.: An Insight Into Its Market Position & Share Gains in Consumer Electronics! – Major Drivers
  • Rambus Inc.: Will The Strategic Growth from DDR5 Server PMICs Last? – Major Drivers
  • Sabre Corporation: Expansion into NDC & Multisource Platform & Development of SabreMosaic Can Revolutionize Growth? – Major Drivers
  • Sensata Technologies Holding plc: Will Its Expansion into High-Value Sensing and Electrical Protection Be A Game Changer? – Major Drivers
  • Sonos Inc.: The Tale Of Market Expansion Through Category Diversification! – Major Drivers

OPEC, EIA, and IEA Slash Demand Forecasts Again; EIA Sees US LNG Exports Boosting Henry Hub Prices

By Suhas Reddy

  • OPEC cuts demand growth estimates for the third consecutive month, lowering its 2024 and 2025 forecasts by 4.9% and 5.7%, respectively, citing demand weakness in China.
  • Total production of OPEC members obliged to implement supply cuts averaged 21.32m bpd in September, exceeding the target by 180k bpd.
  • The EIA reduced its 2024 and 2025 oil price forecasts due to September’s sharp decline but expects prices to rise from current levels on declining oil inventories.

Blackbaud Inc.: Is The Recent Underperformance Here To Stay? – Major Drivers

By Baptista Research

  • Blackbaud, Inc. reported a strong second quarter in 2024, showing significant improvement in various financial metrics and advancing its strategic initiatives.
  • The company, a leading provider of software to power social impact, has focused on product innovation tailored for non-profit organizations while implementing crucial revenue initiatives and maintaining careful attention to cost management and cash flow enhancement.
  • 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.

frontdoor Inc.: Engagement & Upscaling via Technological Advancements & Other Major Developments

By Baptista Research

  • Frontdoor, Inc. delivered a robust financial performance for the second quarter of 2024, with notable progress on strategic fronts, despite facing macroeconomic challenges and a tough real estate environment.
  • The company reported a revenue increase of 4% reaching $542 million and observed a significant expansion in gross margin, up by 470 basis points to 56%.
  • Adjusted EBITDA improved by 31% to $158 million, and free cash flow saw a substantial rise, more than doubling to $91 million.

Gentex Corporation: Recent Expansion of Full Display Mirror (FDM) Adoption

By Baptista Research

  • Gentex Corporation reported its financial results for the second quarter of 2024, revealing challenges in light vehicle production and sales.
  • Net sales for the quarter were $572.9 million, a decrease from $583.5 million in the same period last year.
  • The decline is attributed to a 3% drop in light vehicle production in North America, Europe, and Japan/Korea.

Halozyme Therapeutics Inc.: New Launches

By Baptista Research

  • Halozyme’s recent quarterly performance underscored a strong trajectory in its financial and operational fronts.
  • The company, which specializes in the ENHANZE drug delivery technology, reported robust second-quarter earnings, with total revenue hitting $231 million, showing a growth that aligns with the company’s full-year expectations of 13% to 22%.
  • Notably, royalty revenues increased by 12%, reaching $125 million.

Power Integrations Inc.: An Insight Into Its Market Position & Share Gains in Consumer Electronics! – Major Drivers

By Baptista Research

  • Power Integrations presented its Q2 2024 financial results, reflecting a phase of cautious optimism as the company inches towards recovery amid uncertain macro conditions.
  • This period has been characterized by improved revenue streams, particularly within its consumer category, and a tightening of inventory levels, which are seen as positive developments for the semi-conductor manufacturing firm.
  • 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.

Rambus Inc.: Will The Strategic Growth from DDR5 Server PMICs Last? – Major Drivers

By Baptista Research

  • Rambus has recently reported its financial outcomes for the second quarter of the fiscal year 2024, holding a detailed discussion during their earnings call, highlighting multiple areas of its operations and strategies moving forward.
  • During this call, insights into their recent performance, including specifics around their product segments and financial metrics, were shared by both Desmond Lynch, the Chief Financial Officer, and Luc Seraphin, the CEO.
  • 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.

Sabre Corporation: Expansion into NDC & Multisource Platform & Development of SabreMosaic Can Revolutionize Growth? – Major Drivers

By Baptista Research

  • Sabre Corporation recently announced its second quarter 2024 financial results, exceeding initial forecasts and setting a positive trajectory towards achieving its strategic and financial objectives.
  • The company reported steady revenue growth, a substantial increase in adjusted EBITDA, margin expansion, and generated positive second quarter free cash flow for the first time in five years, leading Sabre to revise its full-year 2024 revenue and adjusted EBITDA guidance upwards.
  • 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.

Sensata Technologies Holding plc: Will Its Expansion into High-Value Sensing and Electrical Protection Be A Game Changer? – Major Drivers

By Baptista Research

  • Sensata Technologies repoted its Q2 2024 earnings with positive insights alongside challenges reflected in their financial outcomes.
  • During Q2 2024, Sensata reported revenue of approximately $1.036 billion compared to $1.062 billion in the same period in 2023.
  • Despite the decline, the company executed product elimination strategies targeting underperforming products, which, adjusted for, would depict a stable revenue curve slightly ahead of guidance.

Sonos Inc.: The Tale Of Market Expansion Through Category Diversification! – Major Drivers

By Baptista Research

  • Sonos, a key player in the audio technology sector, presented its third quarter fiscal 2024 results that signaled both promises and challenges.
  • The call, led by Patrick Spence, CEO of Sonos, detailed the current predicaments mainly centered around the recent overhaul of their mobile application, alongside highlights of new product introductions and financial metrics.
  • 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.

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