Category

Daily Briefs

Aug 10
0

Daily Brief United States: Chevron Corp, Goldman Sachs Group, Crude Oil, Gold, Reddit , Chesapeake Energy , Sprouts Farmers Market, Fmc Corp, Corn Active Contract, Barnes & Noble Education and more

By | Daily Briefs, United States

In today’s briefing:

  • [Earnings Review] Despite Production Growth Chevron’s Profit Falls Due to Lower Refining Margins
  • Goldman Sachs CIO on How the Bank Is Actually Using AI
  • [ETP 32/2024] Oil Prices Rebound; Occidental, Exxon, and Aramco Beat Earnings Estimates
  • What we learnt at Diggers 2024
  • Reddit (RDDT): Post-IPO Inclusion in US & Global Indices
  • Chesapeake Energy Corporation: Initiation Of Coverage – What Is Their Deferred Production Strategy and Market Responsiveness? – Major Drivers
  • Sprouts Farmers Market Inc.: Why Are They Expanding Store Footprint in Emerging Markets? – Major Drivers
  • FMC Corporation: Strengthening Market Position through Enhanced Formulations and Mixture Products! – Major Drivers
  • Will Delayed La Niña Onset Fuel Weather Risks Firing up Corn Prices?
  • BARNES & NOBLE EDUCATION INC (BNED) – Thursday, May 9, 2024

[Earnings Review] Despite Production Growth Chevron’s Profit Falls Due to Lower Refining Margins

By Suhas Reddy

  • Chevron’s Q2 revenue grew 4.7% YoY but its net profit fell by 26.2%. Revenue beat estimates by 1% while EPS missed expectations by 13%.
  • Production grew 11% YoY, driven by record output in the Permian, strong growth in the DJ Basin, and successful PDC Energy integration.
  • Q2 capex rose 5.2% YoY to USD 4 billion from higher upstream investments and PDC asset spending. Free cash flow dropped 8% YoY to USD 2.3 billion.

Goldman Sachs CIO on How the Bank Is Actually Using AI

By Odd Lots

  • Tracy and Joe discuss their favorite chat GPT and Claude prompts and how they use them for both serious and fun purposes
  • They acknowledge the limitations and risks of using AI in professional settings, especially in large companies like Goldman Sachs
  • Marco Argenti, Chief Information Officer at Goldman Sachs, explains his role in ensuring the smooth operation of technology within the company and the evolving use of AI in the financial industry

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

[ETP 32/2024] Oil Prices Rebound; Occidental, Exxon, and Aramco Beat Earnings Estimates

By Suhas Reddy

  • US crude inventories fell for the sixth straight week by 3.7 mb, exceeding the 1.6 mb decline expected by analysts. However, gasoline stocks rise by 1.3 mb.
  • For the week ending 02/Aug, US natural gas inventories were up 8.2% YoY and 14.9% above the 5-year seasonal average.
  • Occidental shares surged as it beat Q2 EPS estimates by 32.5%. Exxon and Aramco also exceeded EPS forecasts, while Chevron fell short.

What we learnt at Diggers 2024

By Money of Mine

  • Discussion on the recent market volatility, particularly in metals markets
  • Gold being a standout performer, while other commodities struggle
  • Challenges in finding solid investment opportunities and concerns about earnings for gold companies

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

Reddit (RDDT): Post-IPO Inclusion in US & Global Indices

By Dimitris Ioannidis

  • Reddit (RDDT US) is ineligible for inclusion for the upcoming August review because of fcap failing the fcap threshold if it qualifies for the standard segment. 
  • Reddit (RDDT US) is ineligible for inclusion for the upcoming September review because of failing the minimum public voting rights threshold.
  • The IPO lock-up expiry increases the probability for inclusion in November and December review for US and Global indices. Forecasted demand in December is ~$360m and 2.1 ADV. 

Chesapeake Energy Corporation: Initiation Of Coverage – What Is Their Deferred Production Strategy and Market Responsiveness? – Major Drivers

By Baptista Research

  • Chesapeake Energy Corporation’s second quarter 2024 earnings underscore a strategic balance between operational efficiency and financial stewardship amidst the dynamic conditions of the natural gas market.
  • The company has effectively reduced its operating costs and improved capital efficiency, pivotal in maneuvering through low-price environments.
  • Chesapeake has achieved a 50% improvement in Marcellus drilling performance since 2022, attributed to a 50% increase in daily drilling over the past two years and an extension in average lateral well length by nearly 3,000 feet in Q2.

Sprouts Farmers Market Inc.: Why Are They Expanding Store Footprint in Emerging Markets? – Major Drivers

By Baptista Research

  • Sprouts Farmers Market’s second quarter 2024 results demonstrate both growth and resilience amidst varying market conditions.
  • The company reported a significant increase in sales—up 12% year-over-year to $1.9 billion, propelled by a robust 6.7% growth in comparable store sales.
  • Key drivers of this growth include increased e-commerce sales, which surged by 30%, and now constitute 14% of total sales, and the company’s strategic expansion through new stores.

FMC Corporation: Strengthening Market Position through Enhanced Formulations and Mixture Products! – Major Drivers

By Baptista Research

  • FMC Corporation reported its second quarter 2024 earnings with what can be described as a mixed but cautiously optimistic outlook amidst a complex market environment.
  • CEO Pierre Brondeau, after reassuming his role, provided a comprehensive reassessment of the company’s position and future expectations.
  • During the earnings call, FMC Corporation outlined both achievements and challenges, as well as strategic adjustments aimed at long-term ustainability and growth.

Will Delayed La Niña Onset Fuel Weather Risks Firing up Corn Prices?

By Srinidhi Raghavendra

  • Last El Niño was one of the strongest on record, and typically are followed by La Niña, but this transition has yet to occur. 
  • Latest ONI Reading and trend shows possibility of La Niña developing in August-October, could coincide with winter. 
  • Historically, adverse weather changes and high hurricane incidence are likely to spoil bearish bets against corn and lead to sustained price recovery.

BARNES & NOBLE EDUCATION INC (BNED) – Thursday, May 9, 2024

By Value Investors Club

  • BNED’s trading price reflects potential turnaround in profitability, reduced financing risks, and potential for acquisition
  • Past disappointments with FDC offering and capital structure reshuffling have affected shareholder confidence
  • However, current low leverage and growth in profitability make BNED a potentially attractive long-term investment opportunity

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.

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Aug 10
0

Daily Brief Japan: Trend Micro Inc, Tokyo Electron, Fast Retailing, TSE Tokyo Price Index TOPIX, Euglena Co Ltd, Hosokawa Micron, Visco Technologies Corp, Elecom Co Ltd, Cyberlinks, G Tekt Corp and more

By | Daily Briefs, Japan

In today’s briefing:

  • Trend Micro (4704) Up For Sale? Would Be a HUGE Buyout But How Huge? And Who?
  • Tokyo Electron (8035 JP): Q1 FY03/25 flash update
  • Struggles in China Hurt Uniqlo’s Bottom Line
  • A New Type Of “Deemed Shareholding” Has Emerged!
  • Euglena Co Ltd (2931 JP): 1H FY12/24 flash update
  • Hosokawa Micron (6277 JP): Q3 FY09/24 Flash Update
  • Visco Technologies Corp (6698 JP): Q1 FY03/25 flash update
  • Elecom Co Ltd (6750 JP): Q1 FY03/25 flash update
  • Cyberlinks (3683 JP): 1H FY12/24 flash update
  • G Tekt Corp (5970 JP): Q1 FY03/25 flash update

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?

Tokyo Electron (8035 JP): Q1 FY03/25 flash update

By Shared Research

  • FY03/25 forecast: Revenue JPY2.30tn (+25.6% YoY), Operating profit JPY627.0bn (+37.4% YoY), Recurring profit JPY630.0bn (+36.0% YoY).
  • R&D investment plan: JPY1.5tn over FY03/25–FY03/29, with JPY253.0bn in FY03/25 for new development buildings and equipment.
  • Shareholder returns: JPY319.8bn total, including JPY79.9bn for share buybacks and JPY239.8bn for dividends.

Struggles in China Hurt Uniqlo’s Bottom Line

By Caixin Global

  • Uniqlo Co. Ltd.’s strategy of raising prices in the face of rising costs has taken a toll on the Japanese clothing retailer’s bottom line in China due to growing competition and thriftier consumers.
  • The fast-fashion chain’s Greater China profit and revenue both fell in local currency terms during the March-May period, dragged down by poor performance on the Chinese mainland and in Hong Kong, according to earnings results released last month by its parent company, Fast Retailing Co. Ltd. The results did not provide specific earnings figures for the period.
  • Fast Retailing attributed the poor performance to lackluster consumer appetite, unseasonal weather and an insufficient product lineup to satisfy local customer needs.

A New Type Of “Deemed Shareholding” Has Emerged!

By Aki Matsumoto

  • For first time in 30 years, the fund is back, matching the demand of companies that want to reduce cross-holdings immediately and companies that want more time to sell cross-holdings.
  • If the voting rights of cross-shareholdings contributed to the fund are retained, corporate governance will remain an issue until the fund’s investment is terminated.
  • In reviewing recently filed annual securities reports, we often see cases where cross-held shares in more closely related companies are contributed to retirement benefit trusts instead of being sold.

Euglena Co Ltd (2931 JP): 1H FY12/24 flash update

By Shared Research

  • Sales increased to JPY23.6bn (+3.7% YoY), operating profit reached JPY348mn, recurring profit JPY309mn, and net loss JPY267mn.
  • Biofuels segment sales dropped to JPY306mn (-66.0% YoY), with a segment loss of JPY251mn, reflecting the pilot plant’s closure.
  • Revised FY12/24 forecast: sales JPY48.0bn (+3.3% YoY), adjusted EBITDA JPY3.8bn (-71.0% YoY), sales forecast lowered by JPY2.0bn.

Hosokawa Micron (6277 JP): Q3 FY09/24 Flash Update

By Shared Research

  • Orders decreased 8.4% YoY to JPY46.6bn, while order backlog declined 6.2% YoY to JPY41.9bn.
  • Powder Processing Equipment segment sales rose 11.1% YoY to JPY49.4bn, with segment profit up 5.5% YoY to JPY5.9bn.
  • Blown Film segment orders increased 46.1% YoY to JPY17.0bn, with segment profit up 141.4% YoY to JPY1.1bn.

Visco Technologies Corp (6698 JP): Q1 FY03/25 flash update

By Shared Research

  • Q1 revenue increased by 27.4% YoY to JPY839mn, achieving an operating profit of JPY40mn and a recurring profit of JPY49mn.
  • Revised FY03/25 forecast: revenue JPY3.7bn (+16.1% YoY), operating profit JPY200mn, recurring profit JPY200mn, net income JPY13mn.
  • Company recorded JPY150mn in tender offer-related expenses in Q1 and will not distribute an annual dividend for FY03/25.

Elecom Co Ltd (6750 JP): Q1 FY03/25 flash update

By Shared Research

  • Sales reached JPY27.6bn (+5.4% YoY), driven by mobile batteries, AC chargers, and beauty appliances from Tescom Denki Group.
  • Operating profit was JPY2.5bn (-25.2% YoY) due to a rise in SG&A expenses despite higher gross profit.
  • B2C sales were JPY18.8bn (+12.6% YoY), with e-commerce sales at JPY4.9bn (+21.5% YoY), and B2B sales at JPY8.8bn (-7.3% YoY).

Cyberlinks (3683 JP): 1H FY12/24 flash update

By Shared Research

  • Revenue: JPY7.9bn (+3.4% YoY), recurring revenue: JPY3.9bn (+4.8% YoY), operating profit: JPY567mn (-0.9% YoY), net income: JPY333mn (+132.9% YoY).
  • Revenue: JPY2.3bn (+4.1% YoY), recurring profit: JPY341mn (-24.4% YoY), higher salaries and labor costs impacted profits.
  • Revenue: JPY2.1bn (+23.9% YoY), recurring profit: JPY161mn (+977.9% YoY), strong sales of high-priced handsets increased revenue and profit.

G Tekt Corp (5970 JP): Q1 FY03/25 flash update

By Shared Research

  • Revenue increased 10.2% YoY to JPY86.8bn, with Japan leading at 31.9%, despite a 17.8% decline in China.
  • Operating profit rose 17.2% YoY to JPY3.1bn, driven by revenue growth, sales composition changes, and cost reductions.
  • Recurring profit and net income attributable to owners of the parent grew 9.4% and 11.5% YoY, respectively.

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Aug 10
0

Daily Brief China: Swire Pacific (A), Yum China Holdings , Hang Seng Index, Semiconductor Manufacturing International Corp (SMIC), China Jinmao Holdings and more

By | China, Daily Briefs

In today’s briefing:

  • Thoughts On Swire Properties (1972 HK)’s Buyback
  • Yum China (9987 HK): The Best Long-Term China Catering Play
  • EQD | The HSI Rebound Can Reach Higher Prices in August
  • SMIC (981.HK): Revenue and GM Continued to Trend Up in 3Q24
  • Morning Views Asia: China Jinmao Holdings

Thoughts On Swire Properties (1972 HK)’s Buyback

By David Blennerhassett

Yum China (9987 HK): The Best Long-Term China Catering Play

By Eric Chen

  • We believe Yum China remains the best long-term China catering play. 2Q24 results highlight the resiliency and agility of its business model and management to navigate tough environment.
  • While cost optimization drove bottom-line beat, we share management’s view that it is not one-off exercise but will strengthen the company’s operation efficiency moat and market leadership.
  • Macro concerns are well known and fully priced in in our view. Otherwise investors won’t have the opportunity to own the name for low double-digit P/E.

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.

SMIC (981.HK): Revenue and GM Continued to Trend Up in 3Q24

By Patrick Liao

  • Expected sequential revenue growth of 13% to 15%, gross margin expected between 18% and 20%.
  • The company has not increased capacity utilization through price cuts but supports customers in facing competition to maintain market share.
  • Inventory replenishment behavior will end in the third quarter, and fourth-quarter orders will more accurately reflect actual demand rather than the impact of restocking.

Morning Views Asia: China Jinmao Holdings

By Leonard Law, CFA

Lucror Analytics Morning Views comprise our fundamental credit analysis, opinions and trade recommendations on high yield issuers in the region, based on key company-specific developments in the past 24 hours. Our Morning Views include a section with a brief market commentary, key market indicators and a macroeconomic and corporate event calendar.

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Aug 10
0

Most Read: Alibaba Group Holding , Fuji Soft Inc, Kyocera Corp, Topsports International Holdings, Tata Motors Ltd, Swire Pacific (A), POSCO Holdings, Trend Micro Inc, Celltrion Pharm, Astera Labs and more

By | Daily Briefs, Most Read

In today’s briefing:

  • Alibaba (9988 HK/BABA) Dual Primary Listing: Are We There Yet?
  • KKR ¥8,800 Takeover of Fuji Soft (9749) – Details and Arb Grid
  • StubWorld: Barito Renewables Rolling Over – More To Come. Also Kyocera/KDDI
  • China: Passive Selling Expected Later This Month
  • Tata Motors (TTMT IN): Index Impact of DVR Cancellation
  • Thoughts On Swire Properties (1972 HK)’s Buyback
  • Trading Opportunities from the Rise of Sector Pairs Trading Using SSFs & MM Unwinding at Expiry
  • Trend Micro (4704) Up For Sale? Would Be a HUGE Buyout But How Huge? And Who?
  • Targeting Spreads by Leveraging the High Predictability of the Celltrion Merger
  • Astera Labs: Solid 2Q’FY24, ADTV Jumped As IPO Lock-Up Expired, PT Moves To $39.00

Alibaba (9988 HK/BABA) Dual Primary Listing: Are We There Yet?

By Brian Freitas

  • In its last update, Alibaba Group announced that the company was preparing for its primary listing in Hong Kong and the process was expected to complete by the end August.
  • The Board meets on 14 August to approve results for the three months ending June. Could there be an announcement on the dual primary listing too?
  • Mainland Chinese own between 3.5%-15.5% of companies that converted from Secondary to Dual-Primary in the last few years. Similar buying in Alibaba could take the stock higher from here. 

KKR ¥8,800 Takeover of Fuji Soft (9749) – Details and Arb Grid

By Travis Lundy

  • KKR has announced its previously leaked takeover of Fuji Soft Inc (9749 JP). Two activists with 30+% between them have agreed to tender at ¥8,800.  
  • Given what the founder, crossholders, and other arbs own, this gets done easily. Congrats on the win to the activists. 
  • We will see more activism and more pressure on under-earning companies to go private to clean themselves up outside the public eye. Big opportunities for years.

StubWorld: Barito Renewables Rolling Over – More To Come. Also Kyocera/KDDI

By David Blennerhassett

China: Passive Selling Expected Later This Month

By Brian Freitas

  • The China equity markets have continued to trade lower with the CSI 300 Index outperforming other mainland indices as the National Team continues to pump money into ETFs tracking the index.
  • We currently estimate selling of around US$1.39bn across 74 stocks listed on the mainland and in Hong Kong. There could be fewer deletions depending on the review date chosen.
  • The potential deletes have dropped a lot since the start of the calendar year with big underperformance versus the HSCEI Index, CSI 300 Index and CSI Smallcap 500 Index.

Tata Motors (TTMT IN): Index Impact of DVR Cancellation

By Brian Freitas

Thoughts On Swire Properties (1972 HK)’s Buyback

By David Blennerhassett

Trading Opportunities from the Rise of Sector Pairs Trading Using SSFs & MM Unwinding at Expiry

By Sanghyun Park

  • Trading opportunities arise when overseas traders’ SSF positions face unwinding by local market makers, who enter SSF positions and take opposing spot positions, unwinding at expiry.
  • August-Expiry SSF data shows reverse flow impact by local market makers today, with varying degrees of impact per stock but an observable overall trend.
  • With ongoing market volatility in Korea, consider setups targeting price impacts from reverse flows of sector pairs trading on the next SSF expiration date.

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?

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.

Astera Labs: Solid 2Q’FY24, ADTV Jumped As IPO Lock-Up Expired, PT Moves To $39.00

By Andrei Zakharov

  • Astera Labs reported solid 2Q’FY24. The company beat all key estimates, showed relatively strong demand and operating metrics.  
  • With the stock trading at 19x EV/2024E Revenue and 13x EV/2025E Revenue I see shares as fairly-valued and expect the stock to trade in-line with peers. PT to $39.00.
  • All remaining Astera Labs shares held by stockholders became eligible for sale as IPO lock-up expired following public release of earnings for 2Q’FY24.

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Aug 10
0

Daily Brief Industrials: Hosokawa Micron, GXO Logistics, Idex Corp, Inabata & Co, Innodata , Mitsuboshi Belting, Nichiban Co Ltd, Oyo Corp, Punch Industry, C.H. Robinson Worldwide and more

By | Daily Briefs, Industrials

In today’s briefing:

  • Hosokawa Micron (6277 JP): Q3 FY09/24 Flash Update
  • Gxo Logistic Inc (GXO) – Friday, May 10, 2024
  • IDEX Corporation: Expansion in Life Sciences & Analytical Instrumentation & China Market Prospects Driving Our Optimism! – Financial Forecasts
  • Inabata & Co (8098 JP): Q1 FY03/25 flash update
  • INOD: Accelerated Growth, PT to $30
  • Mitsuboshi Belting (5192 JP): Q1 FY03/25 flash update
  • Nichiban Co Ltd (4218 JP): Q1 FY03/25 flash update
  • Oyo Corp (9755 JP): 1H FY12/24 flash update
  • Punch Industry (6165 JP): Q1 FY03/25 flash update
  • C.H. Robinson Worldwide: Leveraging Market Position & Building A Robust Expansion Strategy! – Major Drivers

Hosokawa Micron (6277 JP): Q3 FY09/24 Flash Update

By Shared Research

  • Orders decreased 8.4% YoY to JPY46.6bn, while order backlog declined 6.2% YoY to JPY41.9bn.
  • Powder Processing Equipment segment sales rose 11.1% YoY to JPY49.4bn, with segment profit up 5.5% YoY to JPY5.9bn.
  • Blown Film segment orders increased 46.1% YoY to JPY17.0bn, with segment profit up 141.4% YoY to JPY1.1bn.

Gxo Logistic Inc (GXO) – Friday, May 10, 2024

By Value Investors Club

  • GXO’s spin-off from XPO Logistics is seen as a bold and potentially beneficial move
  • The company now solely focuses on contract logistics and is well-positioned to benefit from e-commerce and supply chain trends
  • With a strong management team led by Brad Jacobs, GXO has the potential to thrive as a standalone business and deliver significant returns for investors

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.

IDEX Corporation: Expansion in Life Sciences & Analytical Instrumentation & China Market Prospects Driving Our Optimism! – Financial Forecasts

By Baptista Research

  • IDEX Corporation (IEX) presented its financial and operational performance for the second quarter of 2024, reflecting a mixture of achievements and challenges amid a complex macroeconomic environment.
  • The company reported achieving slightly higher than anticipated results in terms of adjusted EBITDA margin and adjusted EPS, attributed to strong execution across its global teams.
  • From a revenue and orders perspective, IDEX faced a nuanced landscape.

Inabata & Co (8098 JP): Q1 FY03/25 flash update

By Shared Research

  • Q1 FY03/25 results: Sales JPY213.6bn (+15.7% YoY), Operating profit JPY6.8bn (+34.6% YoY), Net income JPY6.4bn (-17.5% YoY).
  • Segment performance: FPD-related products strong, solar cell-related products decreased, automotive applications robust, inkjet printer sales increased.
  • Full-year targets: Progress 25.7% for sales, 30.3% for operating profit, 33.7% for recurring profit, 37.5% for net income.

INOD: Accelerated Growth, PT to $30

By Hamed Khorsand

  • INOD hired more people in the second quarter to keep up with demand as revenue grew by approximately 66 percent from the year ago period. 
  • INOD has expanded its relationship with technology companies and announced an additional customer win. INOD has seven large technology companies as customers
  • The pace of wins over the course of this year puts INOD on the path to exceed our original estimates. INOD’s updated guidance for 2024  

Mitsuboshi Belting (5192 JP): Q1 FY03/25 flash update

By Shared Research

  • Revenue grew 9.2% YoY to JPY22.4bn, with increases across all segments, but operating profit declined 21.5% YoY.
  • Q1 FY03/25 revenue was 49.9% of the 1H forecast, with strong net income progress due to a JPY3.4bn extraordinary gain.
  • Belts (Outside Japan) segment revenue increased 10.2% YoY, but operating profit fell 29.4% YoY due to weak repair parts sales.

Nichiban Co Ltd (4218 JP): Q1 FY03/25 flash update

By Shared Research

  • Revenue increased by 5.6% YoY to JPY11.5bn, driven by healthcare demand recovery and price revisions in the Tape business.
  • Operating profit rose 48.6% YoY to JPY514mn, with a gross profit margin increase of 0.7pp YoY to 30.4%.
  • Net income attributable to owners of the parent grew 18.5% YoY to JPY333mn, despite JPY53mn impairment losses.

Oyo Corp (9755 JP): 1H FY12/24 flash update

By Shared Research

  • Orders increased to JPY45.3bn (+20.4% YoY), revenue to JPY34.6bn (+19.5% YoY), and operating profit to JPY340mn (+131.7% YoY).
  • Orders for Disaster Prevention and Infrastructure: JPY15.1bn (+12.5% YoY), revenue: JPY12.0bn (+9.0% YoY), operating profit: JPY170mn.
  • Orders for Environment and Energy: JPY21.9bn (+50.2% YoY), revenue: JPY1.7bn (+20.0% YoY), operating profit: JPY1.8bn (+55.7% YoY).

Punch Industry (6165 JP): Q1 FY03/25 flash update

By Shared Research

  • Revenue was JPY9.7bn (+2.3% YoY) with operating profit at JPY303mn (+209.2% YoY) and recurring profit at JPY358mn (+5.9% YoY).
  • Gross profit increased 4.8% YoY to JPY2.5bn with a gross profit margin of 26.2% (+0.6pp YoY).
  • Revenue by region: Japan JPY2.9bn (-11.3% YoY), China JPY5.4bn (+13.4% YoY), Southeast Asia JPY445mn (-6.1% YoY), Europe/US/other JPY890mn (-2.6% YoY).

C.H. Robinson Worldwide: Leveraging Market Position & Building A Robust Expansion Strategy! – Major Drivers

By Baptista Research

  • C.H. Robinson Worldwide, Inc. provided a comprehensive review of its second quarter 2024 performance during their recent earnings call.
  • The company discussed various strategic adjustments and improvements to address the challenges posed by an ongoing freight recession and a fluctuating global market.
  • During the quarter, C.H. Robinson focused on refining its operating strategies, aiming for operational excellence through the introduction of a new operating model based on lean principles.

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Aug 10
0

Daily Brief Industrials: Hosokawa Micron, GXO Logistics, Idex Corp, Inabata & Co, Innodata , Mitsuboshi Belting, Nichiban Co Ltd, Oyo Corp, Punch Industry, C.H. Robinson Worldwide and more

By | Daily Briefs, Industrials

In today’s briefing:

  • Hosokawa Micron (6277 JP): Q3 FY09/24 Flash Update
  • Gxo Logistic Inc (GXO) – Friday, May 10, 2024
  • IDEX Corporation: Expansion in Life Sciences & Analytical Instrumentation & China Market Prospects Driving Our Optimism! – Financial Forecasts
  • Inabata & Co (8098 JP): Q1 FY03/25 flash update
  • INOD: Accelerated Growth, PT to $30
  • Mitsuboshi Belting (5192 JP): Q1 FY03/25 flash update
  • Nichiban Co Ltd (4218 JP): Q1 FY03/25 flash update
  • Oyo Corp (9755 JP): 1H FY12/24 flash update
  • Punch Industry (6165 JP): Q1 FY03/25 flash update
  • C.H. Robinson Worldwide: Leveraging Market Position & Building A Robust Expansion Strategy! – Major Drivers

Hosokawa Micron (6277 JP): Q3 FY09/24 Flash Update

By Shared Research

  • Orders decreased 8.4% YoY to JPY46.6bn, while order backlog declined 6.2% YoY to JPY41.9bn.
  • Powder Processing Equipment segment sales rose 11.1% YoY to JPY49.4bn, with segment profit up 5.5% YoY to JPY5.9bn.
  • Blown Film segment orders increased 46.1% YoY to JPY17.0bn, with segment profit up 141.4% YoY to JPY1.1bn.

Gxo Logistic Inc (GXO) – Friday, May 10, 2024

By Value Investors Club

  • GXO’s spin-off from XPO Logistics is seen as a bold and potentially beneficial move
  • The company now solely focuses on contract logistics and is well-positioned to benefit from e-commerce and supply chain trends
  • With a strong management team led by Brad Jacobs, GXO has the potential to thrive as a standalone business and deliver significant returns for investors

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.

IDEX Corporation: Expansion in Life Sciences & Analytical Instrumentation & China Market Prospects Driving Our Optimism! – Financial Forecasts

By Baptista Research

  • IDEX Corporation (IEX) presented its financial and operational performance for the second quarter of 2024, reflecting a mixture of achievements and challenges amid a complex macroeconomic environment.
  • The company reported achieving slightly higher than anticipated results in terms of adjusted EBITDA margin and adjusted EPS, attributed to strong execution across its global teams.
  • From a revenue and orders perspective, IDEX faced a nuanced landscape.

Inabata & Co (8098 JP): Q1 FY03/25 flash update

By Shared Research

  • Q1 FY03/25 results: Sales JPY213.6bn (+15.7% YoY), Operating profit JPY6.8bn (+34.6% YoY), Net income JPY6.4bn (-17.5% YoY).
  • Segment performance: FPD-related products strong, solar cell-related products decreased, automotive applications robust, inkjet printer sales increased.
  • Full-year targets: Progress 25.7% for sales, 30.3% for operating profit, 33.7% for recurring profit, 37.5% for net income.

INOD: Accelerated Growth, PT to $30

By Hamed Khorsand

  • INOD hired more people in the second quarter to keep up with demand as revenue grew by approximately 66 percent from the year ago period. 
  • INOD has expanded its relationship with technology companies and announced an additional customer win. INOD has seven large technology companies as customers
  • The pace of wins over the course of this year puts INOD on the path to exceed our original estimates. INOD’s updated guidance for 2024  

Mitsuboshi Belting (5192 JP): Q1 FY03/25 flash update

By Shared Research

  • Revenue grew 9.2% YoY to JPY22.4bn, with increases across all segments, but operating profit declined 21.5% YoY.
  • Q1 FY03/25 revenue was 49.9% of the 1H forecast, with strong net income progress due to a JPY3.4bn extraordinary gain.
  • Belts (Outside Japan) segment revenue increased 10.2% YoY, but operating profit fell 29.4% YoY due to weak repair parts sales.

Nichiban Co Ltd (4218 JP): Q1 FY03/25 flash update

By Shared Research

  • Revenue increased by 5.6% YoY to JPY11.5bn, driven by healthcare demand recovery and price revisions in the Tape business.
  • Operating profit rose 48.6% YoY to JPY514mn, with a gross profit margin increase of 0.7pp YoY to 30.4%.
  • Net income attributable to owners of the parent grew 18.5% YoY to JPY333mn, despite JPY53mn impairment losses.

Oyo Corp (9755 JP): 1H FY12/24 flash update

By Shared Research

  • Orders increased to JPY45.3bn (+20.4% YoY), revenue to JPY34.6bn (+19.5% YoY), and operating profit to JPY340mn (+131.7% YoY).
  • Orders for Disaster Prevention and Infrastructure: JPY15.1bn (+12.5% YoY), revenue: JPY12.0bn (+9.0% YoY), operating profit: JPY170mn.
  • Orders for Environment and Energy: JPY21.9bn (+50.2% YoY), revenue: JPY1.7bn (+20.0% YoY), operating profit: JPY1.8bn (+55.7% YoY).

Punch Industry (6165 JP): Q1 FY03/25 flash update

By Shared Research

  • Revenue was JPY9.7bn (+2.3% YoY) with operating profit at JPY303mn (+209.2% YoY) and recurring profit at JPY358mn (+5.9% YoY).
  • Gross profit increased 4.8% YoY to JPY2.5bn with a gross profit margin of 26.2% (+0.6pp YoY).
  • Revenue by region: Japan JPY2.9bn (-11.3% YoY), China JPY5.4bn (+13.4% YoY), Southeast Asia JPY445mn (-6.1% YoY), Europe/US/other JPY890mn (-2.6% YoY).

C.H. Robinson Worldwide: Leveraging Market Position & Building A Robust Expansion Strategy! – Major Drivers

By Baptista Research

  • C.H. Robinson Worldwide, Inc. provided a comprehensive review of its second quarter 2024 performance during their recent earnings call.
  • The company discussed various strategic adjustments and improvements to address the challenges posed by an ongoing freight recession and a fluctuating global market.
  • During the quarter, C.H. Robinson focused on refining its operating strategies, aiming for operational excellence through the introduction of a new operating model based on lean principles.

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Aug 10
0

Daily Brief Health Care: Celltrion Pharm, Rubicon Research Limited, Exact Sciences, GSK , Hologic Inc, Medius Holdings, Nipro Corp, Poppins Holdings Inc, United Therapeutics, AFT Pharmaceuticals and more

By | Daily Briefs, Healthcare

In today’s briefing:

  • Targeting Spreads by Leveraging the High Predictability of the Celltrion Merger
  • Rubicon Research Pre-IPO Tearsheet
  • Exact Sciences Corporation: Expansion into Care Gap Programs & Other Major Drivers
  • GlaxoSmithKline plc: Enhancing Market Position with AREXVY and Other Major Brands! – Major Drivers
  • Hologic Inc.: Breast Health Innovations
  • Medius Holdings (3154 JP): Full-year FY06/24 flash update
  • Nipro Corp (8086 JP): Q1 FY03/25 flash update
  • Poppins Holdings Inc (7358 JP): 1H FY12/24 flash update
  • United Therapeutics Corporation: Tyvaso DPI Adoption & Market Penetration As Growth Drivers! – Major Drivers
  • AFT Pharmaceuticals – Hikma partnership expands to include Combogesic

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.

Rubicon Research Pre-IPO Tearsheet

By Akshat Shah

  • Rubicon Research Limited (1453591D IN) is looking to raise about US$130m in its upcoming India IPO. The deal will be run by Axis, IIFL, JM Fin and SBI Caps. 
  • Rubicon Research is a pharmaceutical formulations company with an increasing portfolio of specialty products and drug-device combination products targeting regulated markets, particularly, the United States.
  • It was ranked among the top 10 Indian companies, in terms of total Abbreviated New Drug Application (ANDA) approvals, as per Frost & Sullivan (F&S).

Exact Sciences Corporation: Expansion into Care Gap Programs & Other Major Drivers

By Baptista Research

  • Exact Sciences Corp. recently reported its second quarter 2024 earnings demonstrating strong performance and strategic advancements in its diagnostic offerings.
  • The company marked a significant milestone by screening over 1 million people with Cologuard for colon cancer within the quarter, the highest number ever recorded.
  • Additionally, global testing for Oncotype DX also reached unprecedented levels.

GlaxoSmithKline plc: Enhancing Market Position with AREXVY and Other Major Brands! – Major Drivers

By Baptista Research

  • GSK’s recent quarterly report underlines a robust upward trajectory with significant growth figures, showcasing the strength and diversity of its product portfolio in pharmaceuticals and healthcare.
  • The company reported a 13% growth in sales to GBP 7.9 billion and a 21% increase in core operating profit to GBP 2.5 billion.
  • Core earnings per share also rose by 17% to 43.4p, excluding COVID solutions.

Hologic Inc.: Breast Health Innovations

By Baptista Research

  • Hologic had a strong third quarter in fiscal 2024, demonstrating resilience and strategic efficiency in navigating post-pandemic market conditions.
  • The company reported total revenue of $1.01 billion and a non-GAAP earnings per share of $1.06, both numbers topping their guidance predictions.
  • This marked a return to revenue growth, with a notable 3.1% increase compared to the previous year, signaling a solid recovery trajectory after the challenges posed by COVID-19 and subsequent global disruptions such as the chip shortage.

Medius Holdings (3154 JP): Full-year FY06/24 flash update

By Shared Research

  • FY06/24 revenue grew 8.7% YoY to JPY259.8bn, with operating profit at JPY1.3bn (-29.4% YoY) and net income at JPY1.1bn (-24.9% YoY).
  • Gross profit in FY06/24 was JPY31.1bn (+6.1% YoY) with SG&A expenses at JPY29.7bn (+8.5% YoY), maintaining an SG&A ratio of 11.5%.
  • FY06/25 revenue is projected at JPY280.0bn (+7.8% YoY), with operating profit at JPY1.4bn (+5.5% YoY) and net income at JPY1.3bn (+13.8% YoY).

Nipro Corp (8086 JP): Q1 FY03/25 flash update

By Shared Research

  • Consolidated sales increased by 8.4% YoY, driven by strong performance in Medical-Related, Pharmaceutical-Related, and PharmaPackaging businesses.
  • Operating profit declined 21.1% YoY due to rising raw material prices, increased labor costs, and higher SG&A expenses.
  • Recurring profit decreased 27.9% YoY due to higher interest expenses and increased equity in losses of affiliates.

Poppins Holdings Inc (7358 JP): 1H FY12/24 flash update

By Shared Research

  • Revenue increased to JPY15.7bn (+13.4% YoY), with operating profit at JPY710mn (+379.7% YoY) and recurring profit at JPY743mn (+370.3% YoY).
  • Family Care Services revenue grew due to expanded babysitter services, while Edu-care business saw steady growth from new nursery schools.
  • SG&A expenses rose to JPY2.5bn (+2.7% YoY) due to higher taxes, public charges, and call center and system maintenance expenses.

United Therapeutics Corporation: Tyvaso DPI Adoption & Market Penetration As Growth Drivers! – Major Drivers

By Baptista Research

  • United Therapeutics Corporation reported a strong second quarter for 2024, showcasing significant strides in revenue growth and continued advancement in its product lines and clinical trials.
  • With a strategy delineated into three distinct waves—established products, next-generation treatments, and innovative organ manufacturing—the company is steering a future-oriented path, albeit with candidly acknowledged challenges and uncertainties, particularly regarding clinical trial outcomes for its second-wave products.
  • The positive takeaways include a notable 20% rise in revenue year-over-year, reaching $715 million.

AFT Pharmaceuticals – Hikma partnership expands to include Combogesic

By Edison Investment Research

AFT Pharmaceuticals has expanded its licensing partnership with Hikma in the US to include distribution of the recently launched Combogesic tablets (Maxigesic Rapid). We view this as a logical step, given Hikma’s established footprint in the US, with synergistic benefits likely on costs and sales uptake. Hikma already holds exclusive distribution rights to Maxigesic/Combogesic IV in the US and will now also market the tablet formulation in the same hospital and ambulatory setting. Management expects to book the first sales within CY24 and, while the deal economics have not been fully disclosed, the agreement includes a profit share for Hikma according to our understanding. Note that unlike the IV formulation, AFT’s sales strategy for the tablets entails having different distribution partners across sales channels. The first distribution agreement for the Combogesic tablets was signed with Alexso in June 2024.

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Aug 10
0

Daily Brief Energy/Materials: Aarti Industries, Chevron Corp, Siemens Energy AG, Crude Oil, Gold, Chesapeake Energy , Fmc Corp, DuPont, Dic Corp, Mitsubishi Steel Mfg and more

By | Daily Briefs, Energy & Materials Sector

In today’s briefing:

  • The Beat Ideas: Aarti Industries Ltd.- Capex, Growth, Value Addition!
  • [Earnings Review] Despite Production Growth Chevron’s Profit Falls Due to Lower Refining Margins
  • Siemens Energy: Winds of Change – [Business Breakdowns, EP.177]
  • [ETP 32/2024] Oil Prices Rebound; Occidental, Exxon, and Aramco Beat Earnings Estimates
  • What we learnt at Diggers 2024
  • Chesapeake Energy Corporation: Initiation Of Coverage – What Is Their Deferred Production Strategy and Market Responsiveness? – Major Drivers
  • FMC Corporation: Strengthening Market Position through Enhanced Formulations and Mixture Products! – Major Drivers
  • DuPont de Nemours Inc.: Enhanced E&I Growth from AI Integration and Advanced Nodes! – Major Drivers
  • Dic Corp (4631 JP): 1H FY12/24 flash update
  • Mitsubishi Steel Mfg (5632 JP): Q1 FY03/25 flash update

The Beat Ideas: Aarti Industries Ltd.- Capex, Growth, Value Addition!

By Sudarshan Bhandari

  • Aarti Industries (ARTO IN)  is planning a huge capex of 2500 Cr, which will increase their PPE by more than 50% from current CWIP and new capex.
  • Company is targeting 1450 to 1700Cr EBITDA in next year which is almost 1.5x to 2x of the existing EBITDA.
  • Introducing new products in the value chain, which has high-value added and high margins.

[Earnings Review] Despite Production Growth Chevron’s Profit Falls Due to Lower Refining Margins

By Suhas Reddy

  • Chevron’s Q2 revenue grew 4.7% YoY but its net profit fell by 26.2%. Revenue beat estimates by 1% while EPS missed expectations by 13%.
  • Production grew 11% YoY, driven by record output in the Permian, strong growth in the DJ Basin, and successful PDC Energy integration.
  • Q2 capex rose 5.2% YoY to USD 4 billion from higher upstream investments and PDC asset spending. Free cash flow dropped 8% YoY to USD 2.3 billion.

Siemens Energy: Winds of Change – [Business Breakdowns, EP.177]

By Business Breakdowns

  • Siemens Energy is a spin-off from Siemens focused on gas, power, and renewables, positioning itself at the forefront of the energy transition.
  • The company faces challenges, particularly in its renewables division, dealing with supply chain disruptions and technical issues.
  • Mark Heiley, founder of The Analyst, discusses Siemens Energy’s history, impetus for demerger, and potential in addressing renewable energy challenges.

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

[ETP 32/2024] Oil Prices Rebound; Occidental, Exxon, and Aramco Beat Earnings Estimates

By Suhas Reddy

  • US crude inventories fell for the sixth straight week by 3.7 mb, exceeding the 1.6 mb decline expected by analysts. However, gasoline stocks rise by 1.3 mb.
  • For the week ending 02/Aug, US natural gas inventories were up 8.2% YoY and 14.9% above the 5-year seasonal average.
  • Occidental shares surged as it beat Q2 EPS estimates by 32.5%. Exxon and Aramco also exceeded EPS forecasts, while Chevron fell short.

What we learnt at Diggers 2024

By Money of Mine

  • Discussion on the recent market volatility, particularly in metals markets
  • Gold being a standout performer, while other commodities struggle
  • Challenges in finding solid investment opportunities and concerns about earnings for gold companies

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

Chesapeake Energy Corporation: Initiation Of Coverage – What Is Their Deferred Production Strategy and Market Responsiveness? – Major Drivers

By Baptista Research

  • Chesapeake Energy Corporation’s second quarter 2024 earnings underscore a strategic balance between operational efficiency and financial stewardship amidst the dynamic conditions of the natural gas market.
  • The company has effectively reduced its operating costs and improved capital efficiency, pivotal in maneuvering through low-price environments.
  • Chesapeake has achieved a 50% improvement in Marcellus drilling performance since 2022, attributed to a 50% increase in daily drilling over the past two years and an extension in average lateral well length by nearly 3,000 feet in Q2.

FMC Corporation: Strengthening Market Position through Enhanced Formulations and Mixture Products! – Major Drivers

By Baptista Research

  • FMC Corporation reported its second quarter 2024 earnings with what can be described as a mixed but cautiously optimistic outlook amidst a complex market environment.
  • CEO Pierre Brondeau, after reassuming his role, provided a comprehensive reassessment of the company’s position and future expectations.
  • During the earnings call, FMC Corporation outlined both achievements and challenges, as well as strategic adjustments aimed at long-term ustainability and growth.

DuPont de Nemours Inc.: Enhanced E&I Growth from AI Integration and Advanced Nodes! – Major Drivers

By Baptista Research

  • DuPont’s second quarter 2024 earnings reflected a strong recovery trajectory, with CEO Lori Koch and CFO Antonella Franzen outlining improvements across key performance metrics.
  • The company reported revenue and earnings that surpassed previous guidance, buoyed by a broad-based electronics recovery and gains in the Water and Protection (W&P) business.
  • On the financial front, DuPont registered an increase in net sales by 2% compared to the previous year, totaling $3.2 billion.

Dic Corp (4631 JP): 1H FY12/24 flash update

By Shared Research

  • Sales in 1H FY12/24 were JPY538.8bn (+4.6% YoY), with a 1.5% decrease on a local currency basis.
  • Operating profit in 1H FY12/24 was JPY21.9bn (+120.3% YoY), with a 116.7% increase on a local currency basis.
  • The company revised its FY12/24 forecast to JPY1.10tn in sales and JPY40.0bn in operating profit.

Mitsubishi Steel Mfg (5632 JP): Q1 FY03/25 flash update

By Shared Research

  • Consolidated Q1 FY03/25 results: Revenue JPY40.6bn (-1.7% YoY), Operating profit JPY1.3bn (+66.7% YoY), Recurring profit JPY1.2bn (+87.9% YoY), Net loss JPY147mn (+345.5% YoY).
  • Segment performance: Revenue JPY20.5bn (-11.4% YoY), Operating profit JPY562mn (-40.6% YoY); Revenue JPY18.1bn (+12.1% YoY), Operating profit JPY580mn (JPY295mn loss in Q1 FY03/24).
  • Additional segments: Revenue JPY2.4bn (+8.3% YoY), Operating profit JPY157mn (+582.6% YoY); Revenue JPY1.6bn (-19.3% YoY), Operating loss JPY12mn; Revenue JPY967mn (+14.0% YoY), Operating profit JPY59mn (+145.8% YoY).

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Aug 10
0

Daily Brief TMT/Internet: Trend Micro Inc, Reddit , Tokyo Electron, Unimicron Technology, Semiconductor Manufacturing International Corp (SMIC), Visco Technologies Corp, Cognizant Tech Solutions A, Cdw Corp/De, Arisawa Mfg, Elecom Co Ltd and more

By | Daily Briefs, TMT/Internet

In today’s briefing:

  • Trend Micro (4704) Up For Sale? Would Be a HUGE Buyout But How Huge? And Who?
  • Reddit (RDDT): Post-IPO Inclusion in US & Global Indices
  • Tokyo Electron (8035 JP): Q1 FY03/25 flash update
  • Tech Supply Chain Tracker (10-Aug-2024): TSMC breaks records with record July orders.
  • SMIC (981.HK): Revenue and GM Continued to Trend Up in 3Q24
  • Visco Technologies Corp (6698 JP): Q1 FY03/25 flash update
  • Cognizant Technology Solutions: Increased Focus on Large Deal Acquisitions To Grow The Top-Line Inorganically! – Major Drivers
  • CDW Corporation: Focus on Emerging Technologies & Other Factors Driving Our Optimism! – Financial Forecasts
  • Arisawa Mfg (5208 JP): Q1 FY03/25 flash update
  • Elecom Co Ltd (6750 JP): Q1 FY03/25 flash update

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?

Reddit (RDDT): Post-IPO Inclusion in US & Global Indices

By Dimitris Ioannidis

  • Reddit (RDDT US) is ineligible for inclusion for the upcoming August review because of fcap failing the fcap threshold if it qualifies for the standard segment. 
  • Reddit (RDDT US) is ineligible for inclusion for the upcoming September review because of failing the minimum public voting rights threshold.
  • The IPO lock-up expiry increases the probability for inclusion in November and December review for US and Global indices. Forecasted demand in December is ~$360m and 2.1 ADV. 

Tokyo Electron (8035 JP): Q1 FY03/25 flash update

By Shared Research

  • FY03/25 forecast: Revenue JPY2.30tn (+25.6% YoY), Operating profit JPY627.0bn (+37.4% YoY), Recurring profit JPY630.0bn (+36.0% YoY).
  • R&D investment plan: JPY1.5tn over FY03/25–FY03/29, with JPY253.0bn in FY03/25 for new development buildings and equipment.
  • Shareholder returns: JPY319.8bn total, including JPY79.9bn for share buybacks and JPY239.8bn for dividends.

Tech Supply Chain Tracker (10-Aug-2024): TSMC breaks records with record July orders.

By Tech Supply Chain Tracker

  • TSMC achieves record-breaking performance in July thanks to high demand from key clients like Apple, Intel, and Nvidia.
  • Chang Wah Electromaterials appoints new CEO and plans a major US$100M expansion in Malaysia through CWTC.
  • South Korean micro LED component makers target the backplane market with AI-driven AR and VR technologies gaining popularity, while Taiwan’s PCB sector faces sustainability challenges in Southeast Asia.

SMIC (981.HK): Revenue and GM Continued to Trend Up in 3Q24

By Patrick Liao

  • Expected sequential revenue growth of 13% to 15%, gross margin expected between 18% and 20%.
  • The company has not increased capacity utilization through price cuts but supports customers in facing competition to maintain market share.
  • Inventory replenishment behavior will end in the third quarter, and fourth-quarter orders will more accurately reflect actual demand rather than the impact of restocking.

Visco Technologies Corp (6698 JP): Q1 FY03/25 flash update

By Shared Research

  • Q1 revenue increased by 27.4% YoY to JPY839mn, achieving an operating profit of JPY40mn and a recurring profit of JPY49mn.
  • Revised FY03/25 forecast: revenue JPY3.7bn (+16.1% YoY), operating profit JPY200mn, recurring profit JPY200mn, net income JPY13mn.
  • Company recorded JPY150mn in tender offer-related expenses in Q1 and will not distribute an annual dividend for FY03/25.

Cognizant Technology Solutions: Increased Focus on Large Deal Acquisitions To Grow The Top-Line Inorganically! – Major Drivers

By Baptista Research

  • In evaluating Cognizant Technology Solutions’ performance for the second quarter of 2024, several important factors come to the forefront, presenting a mixed picture of the company’s financial health and operational execution.
  • The company, driven by strategic acquisitions and improved operational efficiency, posted better-than expected revenue and margin figures, but has notably seen year-over-year revenue decline and continuous pressure in certain industry sectors.
  • Positively, Cognizant’s revenue in Q2 amounted to $4.85 billion, surpassing the high end of their guidance range and marking a 2.1% sequential growth in constant currency, the highest since 2022.

CDW Corporation: Focus on Emerging Technologies & Other Factors Driving Our Optimism! – Financial Forecasts

By Baptista Research

  • CDW’s earnings for the second quarter of 2024 indicated a cautious consumer behavior resulting in elongated sales cycles and a preference to prioritize immediate needs over expansion endeavors.
  • CDW has witnessed a hesitation in capital investments, particularly those tied to data center and network modernization, alongside a significant interaction with client device refresh activities.
  • Additionally, unexpected market-specific dynamics, such as escalated challenges in the UK market and concerns around federal funding in the US, were cited as influencing factors.

Arisawa Mfg (5208 JP): Q1 FY03/25 flash update

By Shared Research

  • Revenue for Q1 FY03/25 was JPY12.1bn (+27.2% YoY), with operating profit at JPY1.1bn and recurring profit at JPY1.3bn.
  • Electronic Materials segment revenue increased 32.7% YoY to JPY7.2bn, with an operating profit of JPY488mn (loss of JPY260mn in Q1 FY03/24).
  • Display Materials segment revenue increased 75.9% YoY to JPY1.3bn, with an operating profit of JPY515mn (+309.9% YoY).

Elecom Co Ltd (6750 JP): Q1 FY03/25 flash update

By Shared Research

  • Sales reached JPY27.6bn (+5.4% YoY), driven by mobile batteries, AC chargers, and beauty appliances from Tescom Denki Group.
  • Operating profit was JPY2.5bn (-25.2% YoY) due to a rise in SG&A expenses despite higher gross profit.
  • B2C sales were JPY18.8bn (+12.6% YoY), with e-commerce sales at JPY4.9bn (+21.5% YoY), and B2B sales at JPY8.8bn (-7.3% YoY).

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Aug 10
0

Daily Brief Financials: Swire Pacific (A), Goldman Sachs Group, Hang Seng Index, China Jinmao Holdings, Sun Frontier Fudousan, Timbercreek Financial, Urbanet Corp, Ethereum, Global Indemnity Group LLC, Raysum Co Ltd and more

By | Daily Briefs, Financials

In today’s briefing:

  • Thoughts On Swire Properties (1972 HK)’s Buyback
  • Goldman Sachs CIO on How the Bank Is Actually Using AI
  • EQD | The HSI Rebound Can Reach Higher Prices in August
  • Morning Views Asia: China Jinmao Holdings
  • Sun Frontier Fudousan (8934 JP): Q1 FY03/25 flash update
  • Timbercreek Financial Corp (TF.) – Thursday, May 9, 2024
  • Urbanet Corp (3242 JP): Full-year FY06/24 flash update
  • Crypto Moves #38 – Ethereum versus Solana
  • GBLI: Global Indemnity announces 2nd quarter 2024 financial results and announces affirmation of A rating from A.M. Best.
  • Raysum Co Ltd (8890 JP): Q1 FY03/25 flash update

Thoughts On Swire Properties (1972 HK)’s Buyback

By David Blennerhassett

Goldman Sachs CIO on How the Bank Is Actually Using AI

By Odd Lots

  • Tracy and Joe discuss their favorite chat GPT and Claude prompts and how they use them for both serious and fun purposes
  • They acknowledge the limitations and risks of using AI in professional settings, especially in large companies like Goldman Sachs
  • Marco Argenti, Chief Information Officer at Goldman Sachs, explains his role in ensuring the smooth operation of technology within the company and the evolving use of AI in the financial industry

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

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.

Morning Views Asia: China Jinmao Holdings

By Leonard Law, CFA

Lucror Analytics Morning Views comprise our fundamental credit analysis, opinions and trade recommendations on high yield issuers in the region, based on key company-specific developments in the past 24 hours. Our Morning Views include a section with a brief market commentary, key market indicators and a macroeconomic and corporate event calendar.

Sun Frontier Fudousan (8934 JP): Q1 FY03/25 flash update

By Shared Research

  • Q1 FY03/25 revenue was JPY15.7bn (-15.0% YoY), operating profit JPY2.86bn (-32.6% YoY), net income JPY1.9bn (-40.1% YoY).
  • Real Estate Revitalization business saw revenue JPY8.7bn (+13.2% YoY), profit JPY2.3bn (+14.7% YoY), profit margin 27.0% (+0.3pp YoY).
  • Hotel and Tourism business reported revenue JPY3.7bn (-54.2% YoY), profit JPY845mn (-68.0% YoY), profit margin 23.0% (-9.9pp YoY).

Timbercreek Financial Corp (TF.) – Thursday, May 9, 2024

By Value Investors Club

  • Timbercreek’s high dividend payout ratio is unsustainable and relies on one-time gains on sales, suggesting a future dividend cut may be necessary
  • The company’s exposure to higher risk loans, particularly in Quebec, and a declining rate environment may lower its net interest margins and profitability
  • These factors lead to a bearish outlook on Timbercreek, indicating that the stock’s current valuation may be overly optimistic

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.

Urbanet Corp (3242 JP): Full-year FY06/24 flash update

By Shared Research

  • FY06/24 sales reached JPY28.0bn (+38.0% YoY), operating profit JPY2.7bn (+12.2% YoY), and net income JPY1.7bn (+17.5% YoY).
  • Consolidation of K-nine in Q3 and early revenue recognition from projects boosted FY06/24 sales and profits.
  • FY06/24 total assets were JPY47.0bn (+JPY2.7bn YoY), liabilities JPY31.9bn (+JPY2.9bn YoY), and net assets JPY15.1bn (+JPY128mn YoY).

Crypto Moves #38 – Ethereum versus Solana

By Mads Eberhardt

  • Solana, currently the fifth-largest cryptocurrency, has made a remarkable resurgence, particularly since the beginning of 2023.
  • This comeback is extremely impressive given that many had written off Solana after the collapse of Sam Bankman-Fried’s FTX empire in November 2022.
  • FTX had been crucial in promoting Solana and establishing its vital network effect from the start.

GBLI: Global Indemnity announces 2nd quarter 2024 financial results and announces affirmation of A rating from A.M. Best.

By Zacks Small Cap Research

  • Global Indemnity Group, LLC, provides specialty and niche insurance products nationwide.
  • GBLI focuses on small market property and casualty business.
  • The company has made a concerted effort to reduce its property exposure.

Raysum Co Ltd (8890 JP): Q1 FY03/25 flash update

By Shared Research

  • Revenue: JPY15.6bn (-0.3% YoY); Operating profit: JPY1.4bn (-62.3% YoY); Recurring profit: JPY1.3bn (-64.9% YoY); Net income: JPY885mn (-64.1% YoY).
  • Asset Value Creation segment: Revenue decreased 3.5% YoY; Operating profit decreased 53.1% YoY; Operating profit margin fell 15.1pp YoY.
  • Future Value Creation segment: Revenue increased 34.2% YoY; Operating loss: JPY382mn; Operating loss widened slightly from Q1 FY03/24.

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