Daily Briefs

BrainBees Solutions (0172540D IN), India’s largest multi-channel retailing platform for mothers’, babies’ and kids’ products, will launch an IPO to raise up to US$500 million.
We previously discussed the IPO in Brainbees Solutions (FirstCry) IPO: The Bull Case and Brainbees Solutions (FirstCry) IPO: The Bear Case. In this note, we examine the RHP update.
The RHP shows that positives (KPIs heading in the right direction, margin improvement, lower cash burn) offset the negatives (declining organic growth and deteriorating balance sheet).

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Aug 02

Daily Brief United States: Amazon.com Inc, Crude Oil, Exxon Mobil, Meta Platforms (Facebook), Sharecare , Laureate Education, American Tower, Radiant Logistics, Hawkins Inc, JAKKS Pacific and more

By Smartkarma Daily Briefs | Daily Briefs, United States

In today’s briefing:

Amazon Q2 Earnings: Eyes on AWS Margins, Website Traffic, and Advancements in Chips
[ETP 31/2024] Oil Prices Surge on Middle East Tensions; BP and Shell Beat Earnings Expectations
[Earnings Preview] Exxon Braces for Profit Hit as Refining Margins Tighten
Meta Surges 7% on Strong Q2 Report; Driven by Ad Growth, Q3 Forecast and AI Investments
Sharecare Inc (SHCR) – Wednesday, May 1, 2024
Laureate Education Inc (LAUR) – Wednesday, May 1, 2024
American Tower Corp (AMT) – Wednesday, May 1, 2024
Radiant Logistics Inc (RLGT) – Wednesday, May 1, 2024
HWKN: Rising Gross Margin Profile, PT to $122
JAKK: Setting Sail for Sunnier Climes; Reiterate Buy, $24 Price Target

Amazon Q2 Earnings: Eyes on AWS Margins, Website Traffic, and Advancements in Chips

Amazon anticipates a 13% YoY rise in Q2 2024 revenue to $148.67 billion and a 58% YoY jump in EPS to $1.03, highlighting robust earnings.
AWS is expected to see a $1 billion increase in quarterly revenue, reflecting an 18% year-over-year growth, driven by custom AI chips and model training services.
Analysts have reaffirmed buy ratings for Amazon, with an average target price of $228, reflecting strong confidence in the company’s growth prospects.

[ETP 31/2024] Oil Prices Surge on Middle East Tensions; BP and Shell Beat Earnings Expectations

US crude inventories fell for the fifth consecutive week by 3.4 mb, exceeding the 1.6 mb decline expected by analysts. Gasoline stocks also decreased by 3.7 mb.
As of the week ending 26/Jul, US natural gas inventories were up 8.4% YoY and 15.7% above the 5-year seasonal average.
European oil majors beat Q2 profit estimates. BP’s Q2 underlying net profit beat estimates by 7.7%. Shell’s Q2 EPS beat estimates by 5.1%.

[Earnings Preview] Exxon Braces for Profit Hit as Refining Margins Tighten

ExxonMobil anticipates a USD 1.1 billion to USD 1.5 billion dent on its Q2 earnings due to the industry-wide contraction in refining margins.
Exxon Mobil anticipates the USD 300 million to USD 700 million negative impact on earnings from lower gas prices to be offset by gains from higher oil prices.
Since acquiring Pioneer, Exxon more than doubled production to 1.3 mboepd from 2023. Full merger effects are expected in Q3.

Meta Surges 7% on Strong Q2 Report; Driven by Ad Growth, Q3 Forecast and AI Investments

Meta’s Q2 revenue of $39.1B surpassed expectations, up 22% YoY. EPS jumped 73% YoY to $5.16, beating estimates.
Ad revenue within the Family of Apps rose 22% YoY, driven by online commerce and strong performance in Europe and the Rest of the World.
Q3 revenue forecasted between $38.5B and $41B. Meta’s AI investments are set to enhance ad delivery and support long-term growth, despite increasing CapEx.

Sharecare Inc (SHCR) – Wednesday, May 1, 2024

Sharecare is a data-driven healthcare platform with three segments and access to a large amount of data from claims and eligibility information for 13 million covered lives
The company has a market cap of $243 million and generates around $445 million in revenue, with an adjusted EBITDA breakeven
Sharecare has a strong cash position, no debt, and a promising outlook for their life sciences segment, making it a potentially valuable 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.

Laureate Education Inc (LAUR) – Wednesday, May 1, 2024

Laureate is a branded consumer business in the private higher education market in Mexico and Peru with strong growth potential
The company has a solid balance sheet, is trading at low earnings multiples, and has untapped growth opportunities
Laureate’s shares are undervalued due to potential association with the troubled for-profit education sector, but management may explore selling assets if shares remain undervalued, providing downside protection for investors

American Tower Corp (AMT) – Wednesday, May 1, 2024

American Tower is a leading owner, operator, and developer of communications real estate with a large portfolio in the US
The author sees the current trading in American Tower as an attractive entry point for investors
The tower business is described as having valuable real estate, organic growth driven by data consumption, and strong demand for communication infrastructure

Radiant Logistics Inc (RLGT) – Wednesday, May 1, 2024

By Small Cap Consumer Research

Despite significant improvements in financial performance, Radiant Logistics’ share price has not reflected the company’s growth over the past seven years.
The company’s strong balance sheet, free cash flow generation, and potential for growth through acquisitions make the stock appear undervalued.
Radiant, a provider of third-party logistics services, may be an attractive acquisition target for larger logistics companies in the future.

HWKN: Rising Gross Margin Profile, PT to $122

By Hamed Khorsand

HWKN reported fiscal first quarter (June) where the water treatment business surpassed the industrial segment in sales and helped HWKN exceed our earnings estimate.
The water treatment business has grown through acquisition to a point where the segment has become a dominant portion of HWKN’s sales.
A higher earnings profile for HWKN and earnings continuing to grow in fiscals 2025 and 2026 leads us to raise our price target to $122 from $96.

JAKK: Setting Sail for Sunnier Climes; Reiterate Buy, $24 Price Target

We are reiterating our Buy rating and $24 price target and raising our 2024 and 2025 projections for JAKKS Pacific after the company handily beat our 2Q24 projections, as gains in the core business offset expected material weakness in content-led (i.e. movie driven) offerings.
Further, with the recent launch of The Simpsons and Authentic Brands driven licensed offerings, the upcoming launch of key Holiday movie properties (Moana 2 and Sonic the Hedgehog 3), new owned properties and a continued focus on international expansion, we view our projections, even after our top and bottom line increases, as conservative.
Further, with JAKK continuing to trade at a material discount to their peers, we believe the risk/reward in the name remains impressive, and we reiterate our Buy rating and $24 price target.

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Aug 02

Daily Brief China: WeRide Corp, Budweiser Brewing APAC , DPC Dash, Luckin Coffee, China Shipbuilding Industry, International Housewares Retail and more

By Smartkarma Daily Briefs | China, Daily Briefs

In today’s briefing:

WeRide Pre-IPO – The Positives – Large Monetisation Opportunity on the Horizon
Budweiser APAC (1876 HK): Weak 2Q2024. Premium Beer, Cheap Valuations
DPC Dash (1405.HK): 1H24 Profit Alert Validating Investment Case
WeRide Pre-IPO – The Negatives – Losses Have Widened, Still in the Early Stages of Commercialization
[Luckin Coffee (LKNCY US, SELL, TP US$16.5) TP Change]: Milkteaization Diminishes Differentiation
China’s Giant Invests $690 Million in Dry Docks as Tide Turns For Shipbuilding
International Housewares Retail (1373 HK): Inflection Point In Earnings, 8.8x PE, 9% Div Yield

WeRide Pre-IPO – The Positives – Large Monetisation Opportunity on the Horizon

WeRide Corp (WER CH) is looking to raise around US$300m in its upcoming US IPO.
WeRide provides autonomous driving products and services from L2 to L4 of driving automation.
In this note, we will talk about the positive aspects of the deal.

Budweiser APAC (1876 HK): Weak 2Q2024. Premium Beer, Cheap Valuations

By Devi Subhakesan

Budweiser Brewing APAC (1876 HK)‘s performance could improve from 2H2024, driven by a likely recovery in China’s premium beer market and favourable commodity prices.
Stock’s upside potential from current price levels seem to outweigh downside risk.
With a high dividend payout and strong free cash flow generation, Budweiser trades at a 5% dividend yield and an 11% FCF yield.

DPC Dash (1405.HK): 1H24 Profit Alert Validating Investment Case

By Eric Chen

Company issued 1H24 profit alert after market yesterday which significantly beat even the high-end sell-side expectations.
Impressive SSSG and store-level unit economics imply sizable potential for operating leverage and earnings growth in the mid to long term.
The profit alert, along with 2Q operating data released earlier, reinforced our confidence in earnings estimates of RMB130 million/RMB300 million for FY24/25 respectively.

WeRide Pre-IPO – The Negatives – Losses Have Widened, Still in the Early Stages of Commercialization

WeRide Corp (WER CH) is looking to raise around US$300m in its upcoming US IPO.
WeRide provides autonomous driving products and services from L2 to L4 of driving automation.
In this note, we will talk about the not so positive aspects of the deal.

[Luckin Coffee (LKNCY US, SELL, TP US$16.5) TP Change]: Milkteaization Diminishes Differentiation

By Eric Wen

Luckin’s SSSG declined 20.9%YoY in the peak season, indicating diseconomies of scale for Luckin and a deteriorated competitive environment. We do not expect a quick turnaround in the near term.
We think Luckin has limited capability to further raise its prices in 3Q24, and expect its NPM to be 11.9%/7.1% in 3Q24/4Q24 as the new norm.
We keep SELL rating and lower TP to US$16.5/ADS. The stock trading at 20x/16x PE in 2024/2025, and we expect the NI to increase 15%CAGR in the next 2 years.

China’s Giant Invests $690 Million in Dry Docks as Tide Turns For Shipbuilding

By Caixin Global

China’s state-owned shipbuilding giant, China Shipbuilding Industry Co. Ltd. (601989.SH +2.12%), is to invest more than 5 billion yuan ($690 million) in two acquisition deals to expand its shipyard capacity and meet rising demand.
China Shipbuilding Industry, the Shanghai-listed arm of China State Shipbuilding Corp. Ltd. (CSSC), announced Saturday a 4.04 billion yuan acquisition of Tianjin Xingang Shipbuilding Heavy Industry Co. Ltd.’s assets in Lingang, northern China’s port city Tianjin.
The purchase includes a 500,000-ton and a 300,000 ton dry dock, each equipped with two gantry cranes, as well as associated plants, outfitting quays, ship repair docks, sea outlet docks and other shoreline facilities, according to the company’s filing.

International Housewares Retail (1373 HK): Inflection Point In Earnings, 8.8x PE, 9% Div Yield

By Sameer Taneja

FY24 marked a new low in earnings for International Housewares Retail (1373 HK), with core earnings falling 38% YoY to 101 mn HKD, placing it at 8.8x PE trailing.
Management continues to maintain an 80% payout, placing the stock at a ~9% dividend yield. It has more than 300 mn HKD of net cash (34% of Mkt cap).
The stock has been decimated and is down 63% from its peak in 2021. Earnings inflection looks around the corner.

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Aug 02

Daily Brief Japan: Exedy Corp, Pacific Metals, Nippon Express Holdings, CyberAgent Inc, Sumitomo Pharma, Career Design Center, AS ONE Corporation, Daiichi Jitsugyo, Marubun Corp, Cota Co Ltd and more

By Smartkarma Daily Briefs | Daily Briefs, Japan

In today’s briefing:

[JAPAN ACTIVISM] – Murakami Group Bigger and Bolder on Exedy – STILL Room to Run
Pacific Metals (5541 JP): Here We Go Again Murakami Becomes a Substantial Shareholder
Japan – Passive Selling in a Few Weeks & Shorts Build Up
High Conviction 2024 – CyberAgent: Strong Recovery Across All Three Business Segments
Sumitomo Pharma (4506 JP): Q1FY25 Result Shows Early Sign of Performance Reversal
Career Design Center (2410 JP): Q3 FY09/24 flash update
AS ONE Corporation (7476 JP): Q1 FY03/25 flash update
Daiichi Jitsugyo (8059 JP): Q1 FY03/25 flash update
Marubun Corp (7537 JP): Q1 FY03/25 flash update
Cota Co Ltd (4923 JP): Q1 FY03/25 flash update

[JAPAN ACTIVISM] – Murakami Group Bigger and Bolder on Exedy – STILL Room to Run

In late May, Toyota Group member Aisin (7259 JP) announced it would sell its 37% stake in Exedy Corp (7278 JP). The market dropped. But that was an opportunity.
There was an announcement, a ToSTNeT-3 buyback, the offering, and more buyback to come. On 30 May, I said “Buy the deal, buy in the market. It’s cheap and vulnerable.”
Exedy is up 21% since. On 17 June, activist Murakami-san’s group went over 5%. Then they bought more. Now they have 15%. Or more. Still cheap. Still vulnerable.

Pacific Metals (5541 JP): Here We Go Again Murakami Becomes a Substantial Shareholder

Murakami’s entity, City Index Eleventh, and daughter reported a 5.40% stake in Pacific Metals (5541 JP). The shares were purchased from 27 May to 25 July.
Murakami’s average buy-in price is JPY1,259 per share, an 11.1% discount to the last close price. Murakami has been a substantial shareholder twice before.
Murakami’s previous dealings in Pacific Metals were a pump-and-dump where he built up around 8% stake, only to sell into the share price pop subsequently. Expect more of the same.

Japan – Passive Selling in a Few Weeks & Shorts Build Up

By Shifara Samsudeen, ACMA, CGMA

Up to 12 stocks could be deleted from global passive portfolios in August. The deletion will lead to liquidity events where trackers will need to sell multiple days of ADV.
There has been a buildup of shorts on nearly all these stocks though the extent of the pre-positioning varies.
The increase in shorts is smaller than the estimated passive selling, though there is a fair amount of variability across the names.

High Conviction 2024 – CyberAgent: Strong Recovery Across All Three Business Segments

CyberAgent Inc (4751 JP) reported 3QFY09/24 results yesterday. Both revenue and OP grew YoY, while revenue beat consensus marginally, OP beat consensus by a huge margin.
All three business segments showed strong recovery with notable improvement in gaming business as newly released titles perform well including the newly released UMA MUSUME: Pretty Derby movie.
Media business reported OP for the second consecutive quarter and the company has plans to further strengthen monetisation around AbemaTV.

Sumitomo Pharma (4506 JP): Q1FY25 Result Shows Early Sign of Performance Reversal

By Tina Banerjee

Sumitomo Pharma (4506 JP) reported double-digit revenue growth in Q1FY25, driven by North America. Operating loss narrowed. Net profit stood at ¥16B in Q1FY25 (Q1FY24 net loss: ¥39B).
Robust performance of key products, gross margin expansion, achievement of sizable benefits from the North America business restructure, and streamlining R&D initiatives are the key positives in Q1FY25 result.
Sumitomo is expected to revise FY25 guidance during H1FY25 result announcement. Better-than-expected performance from key drugs as well as favorable Fx should lead to upward revision of revenue guidance.

Career Design Center (2410 JP): Q3 FY09/24 flash update

In cumulative Q3 FY09/24, revenue was JPY13.3bn (+2.1% YoY), operating profit JPY1.1bn (-17.2% YoY), and net income JPY752mn (-16.8% YoY).
Media Information business revenue was JPY4.5bn (+7.1% YoY), segment recurring profit JPY464mn (+39.0% YoY) in cumulative Q3 FY09/24.
Revised full-year FY09/24 forecast: revenue JPY17.8bn (+2.3% YoY), operating profit JPY1.4bn (-9.9% YoY), net income JPY989mn (-15.0% YoY).

AS ONE Corporation (7476 JP): Q1 FY03/25 flash update

Q1 FY03/25 sales were JPY24.2bn (+11.2% YoY), operating profit JPY2.7bn (+11.3% YoY), and net income JPY2.0bn (+10.9% YoY).
Research and Industrial Instruments sales JPY19.7bn (+10.9% YoY), Scientific sales JPY14.6bn (+10.0% YoY), Industrial sales JPY5.1bn (+13.6% YoY).
E-commerce sales JPY8.0bn (+23.3% YoY), overseas business sales JPY1.2bn (+4.6% YoY), China sales down 7.3% YoY.

Daiichi Jitsugyo (8059 JP): Q1 FY03/25 flash update

Orders: JPY45.4bn (+5.7% YoY), Revenue: JPY43.4bn (+26.1% YoY), Operating Profit: JPY2.1bn (+203.8% YoY), Net Income: JPY1.1bn (+144.9% YoY).
Revenue rose due to increased sales of plant equipment, lithium-ion battery manufacturing equipment, and molding machines.
Revenue declined YoY in electronic component manufacturing equipment, automotive industry equipment, and medical device manufacturing equipment.

Marubun Corp (7537 JP): Q1 FY03/25 flash update

Net sales: JPY50.8bn (-15.9% YoY); Operating income: JPY2.6bn (-15.4% YoY); Ordinary income: JPY572mn; Profit: JPY429mn.
Electronic Devices business: Net sales JPY40.6bn (-17.7% YoY); Operating income JPY2.7bn (-11.2% YoY); decreased semiconductor demand.
Foreign exchange losses: JPY1.1bn due to yen depreciation; minor impact on consolidated earnings for FY03/25.

Cota Co Ltd (4923 JP): Q1 FY03/25 flash update

Q1 FY03/25 sales were JPY1.5bn (-11.9% YoY) with an operating loss of JPY87mn and a net loss of JPY81mn.
Sales of toiletries totaled JPY1.1bn (-13.7% YoY), hair styling products JPY302mn (-13.7% YoY), and hair coloring products JPY80mn (+53.8% YoY).
The gross profit margin dropped 0.3pp YoY to 72.7%, and the SG&A ratio rose 11.5pp YoY to 78.6%.

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Aug 02

Most Read: Rio Tinto Ltd, Ryohin Keikaku, BayCurrent Consulting , Sun Corp, Tatsuta Electric Wire & Cable, Exedy Corp, Legend Biotech Corp, Pacific Metals, WeRide Corp, Hanwha Aerospace and more

By Smartkarma Daily Briefs | Daily Briefs, Most Read

In today’s briefing:

Rio Tinto (RIO AU/LN): Thinking About The “Unification”
Sep24 Nikkei 225 Rebal Final Predictions – Fastie Capped, Still 1 ADD, 1 DELETE, 1 Dark Horse and ?s
Nikkei 225 Index Rebalance Preview (Sep 2024): Review Period Done; Fast Retailing Capping Confirmed
True Wind Raises Partial Offer for Sun Corp Further, Leaving an Interesting Back End
ENEOS Bumps Tatsuta Elec (5809) Bid – 8.3% Bump Matches 8.7% Rise in BVPS Since Announcement
[JAPAN ACTIVISM] – Murakami Group Bigger and Bolder on Exedy – STILL Room to Run
Legend Biotech (LEGN.US) Offer Update – Some New Information About the Takeover Worth the Attention
Pacific Metals (5541 JP): Here We Go Again Murakami Becomes a Substantial Shareholder
WeRide Pre-IPO – The Positives – Large Monetisation Opportunity on the Horizon
Quiddity Leaderboard KOSPI 200 Dec 24: Up to 5 ADDs & 6 DELs Possible

Rio Tinto (RIO AU/LN): Thinking About The “Unification”

By David Blennerhassett

Just shy of three years ago, BHP (BHP AU) announced the unification of its dual-headed corporate structure to make BHP “simpler and more agile”.
Collapsing DLCs/share-classes was all the rage back then. The prior year, Unilever (UNA NA) collapsed its DLC; and Royal Dutch Shell unified its A and B lines in 2021.
Rio (RIO AU/LN) is one of only a handful of remaining DLCs. Renewed investor calls to unwind the DLC and the recent UK’s listing regime reform necessitate a rethink.

Sep24 Nikkei 225 Rebal Final Predictions – Fastie Capped, Still 1 ADD, 1 DELETE, 1 Dark Horse and ?s

The Sep 2024 Nikkei 225 Review base date is here. As before, I see one ADD, one DELETE, one capping, and one Very Dark Horse.
The rules are clear, but not. This causes confusion. There may be unwritten rules keeping the Very Dark Horse out til next time.
The Nikkei Index Team announced Fast Retailing (9983 JP) would be capped. I didn’t expect that now. That means $2.2bn+ of selling 30Sep and a reverse funding trade.

Nikkei 225 Index Rebalance Preview (Sep 2024): Review Period Done; Fast Retailing Capping Confirmed

The review period for the Nikkei 225 (NKY INDEX) September rebalance ended yesterday. There could be three changes at the rebalance with sector balance in focus for the additions.
Fast Retailing (9983 JP)‘s capping in the index has been confirmed and its index weight will drop by around 0.9% resulting in big selling at the close on 30 September.
Passive trackers will need to buy between 3.5-35x ADV (2.4%-24% of real float) on the inclusions and sell between 3.7-42.5x ADV on the deletions.

True Wind Raises Partial Offer for Sun Corp Further, Leaving an Interesting Back End

On 10 June, Sun Corp subsidiary Cellebrite DI (CLBT US)‘s SPAC sponsor True Wind Capital launched a Tender Offer for 19% of SunCorp at a premium but discount to NAV.
The price was too low. CLBT shares rose. They lifted the TOB price by 8% to ¥4750. Still too low. It was trading there. Now they have lifted to ¥5500.
Now a 49% premium to undisturbed, 29.4% premium to all-time high prior to the first tender. Changes in terms means this could get done. More bullish than it looks.

ENEOS Bumps Tatsuta Elec (5809) Bid – 8.3% Bump Matches 8.7% Rise in BVPS Since Announcement

Several weeks ago, ENEOS Holdings (5020 JP) launched its long-delayed Tender Offer for Tatsuta Electric Wire & Cable (5809 JP) with no bump despite the time value of money.
It said the price reflected Tatsuta’s value sufficiently. A week ago on the 19th, ENEOS extended the Tender Offer, likely because they didn’t have the shares. Price was still “sufficient.”
I suggested it might not be; I didn’t expect a big bump, but caveated earnings. Friday produced great Q1 earnings, and a bump from ¥720/share to ¥780/share.

[JAPAN ACTIVISM] – Murakami Group Bigger and Bolder on Exedy – STILL Room to Run

In late May, Toyota Group member Aisin (7259 JP) announced it would sell its 37% stake in Exedy Corp (7278 JP). The market dropped. But that was an opportunity.
There was an announcement, a ToSTNeT-3 buyback, the offering, and more buyback to come. On 30 May, I said “Buy the deal, buy in the market. It’s cheap and vulnerable.”
Exedy is up 21% since. On 17 June, activist Murakami-san’s group went over 5%. Then they bought more. Now they have 15%. Or more. Still cheap. Still vulnerable.

Legend Biotech (LEGN.US) Offer Update – Some New Information About the Takeover Worth the Attention

By Xinyao (Criss) Wang

This takeover could be at negotiation stage and different parties haven’t reached an agreement.When Legend Bio releases official announcement, it means main issues of the deal have been agreed upon.
Genscript will be a big winner if Legend Bio is acquired. Major shareholders would take measures to maximize personal interests.The concern is whether Genscript will offer dividends to small/medium shareholders/investors.
Whether the takeover is successful or not, reasonable valuation of Legend Bio is between US$12.5- US$15 billion. Due to uncertainties, we recommend investors buy Legend Bio directly rather than Genscript.

Pacific Metals (5541 JP): Here We Go Again Murakami Becomes a Substantial Shareholder

Murakami’s entity, City Index Eleventh, and daughter reported a 5.40% stake in Pacific Metals (5541 JP). The shares were purchased from 27 May to 25 July.
Murakami’s average buy-in price is JPY1,259 per share, an 11.1% discount to the last close price. Murakami has been a substantial shareholder twice before.
Murakami’s previous dealings in Pacific Metals were a pump-and-dump where he built up around 8% stake, only to sell into the share price pop subsequently. Expect more of the same.

WeRide Pre-IPO – The Positives – Large Monetisation Opportunity on the Horizon

WeRide Corp (WER CH) is looking to raise around US$300m in its upcoming US IPO.
WeRide provides autonomous driving products and services from L2 to L4 of driving automation.
In this note, we will talk about the positive aspects of the deal.

Quiddity Leaderboard KOSPI 200 Dec 24: Up to 5 ADDs & 6 DELs Possible

KOSPI 200 is a Korean blue-chip index that tracks the 200 largest and most-liquid names listed in the KOSPI section of the Korea Exchange (KRX).
In this insight, we take a look at the names leading the race to become ADDs and DELs during the upcoming semiannual review in December 2024.
We expect up to five ADDs and six DELs in the KOSPI 200 index during the December 2024 index rebal event based on the latest available data.

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Aug 02

Daily Brief TMT/Internet: WeRide Corp, Amazon.com Inc, Melexis NV, Meta Platforms (Facebook), Freelancer Ltd, Ryoden Trading, Softcreate Holdings, Marubun Corp, Hakuto Co Ltd and more

By Smartkarma Daily Briefs | Daily Briefs, TMT/Internet

In today’s briefing:

WeRide Pre-IPO – The Positives – Large Monetisation Opportunity on the Horizon
Amazon Q2 Earnings: Eyes on AWS Margins, Website Traffic, and Advancements in Chips
WeRide Pre-IPO – The Negatives – Losses Have Widened, Still in the Early Stages of Commercialization
Tech Supply Chain Tracker (02-Aug-2024): E Ink & Himax reveal color e-paper controller.
Meta Surges 7% on Strong Q2 Report; Driven by Ad Growth, Q3 Forecast and AI Investments
Freelancer – Using AI to enhance revenue and profit growth
Ryoden Trading (8084 JP): Q1 FY03/25 flash update
Softcreate Holdings (3371 JP): Q1 FY03/25 flash update
Marubun Corp (7537 JP): Q1 FY03/25 flash update
Hakuto Co Ltd (7433 JP): Q1 FY03/25 flash update

WeRide Pre-IPO – The Positives – Large Monetisation Opportunity on the Horizon

WeRide Corp (WER CH) is looking to raise around US$300m in its upcoming US IPO.
WeRide provides autonomous driving products and services from L2 to L4 of driving automation.
In this note, we will talk about the positive aspects of the deal.

Amazon Q2 Earnings: Eyes on AWS Margins, Website Traffic, and Advancements in Chips

Amazon anticipates a 13% YoY rise in Q2 2024 revenue to $148.67 billion and a 58% YoY jump in EPS to $1.03, highlighting robust earnings.
AWS is expected to see a $1 billion increase in quarterly revenue, reflecting an 18% year-over-year growth, driven by custom AI chips and model training services.
Analysts have reaffirmed buy ratings for Amazon, with an average target price of $228, reflecting strong confidence in the company’s growth prospects.

WeRide Pre-IPO – The Negatives – Losses Have Widened, Still in the Early Stages of Commercialization

WeRide Corp (WER CH) is looking to raise around US$300m in its upcoming US IPO.
WeRide provides autonomous driving products and services from L2 to L4 of driving automation.
In this note, we will talk about the not so positive aspects of the deal.

Tech Supply Chain Tracker (02-Aug-2024): E Ink & Himax reveal color e-paper controller.

By Tech Supply Chain Tracker

E Ink and Himax introduce new color e-paper controller to enhance display technology, offering improved visual experience.
Taiwan’s Economic Minister outlines plans to boost global competitiveness, focusing on strategic initiatives to strengthen economy.
Shanghai commits $13.7 billion investment in IC, AI, and biopharma industries, driving growth in technology sectors.

Meta Surges 7% on Strong Q2 Report; Driven by Ad Growth, Q3 Forecast and AI Investments

Meta’s Q2 revenue of $39.1B surpassed expectations, up 22% YoY. EPS jumped 73% YoY to $5.16, beating estimates.
Ad revenue within the Family of Apps rose 22% YoY, driven by online commerce and strong performance in Europe and the Rest of the World.
Q3 revenue forecasted between $38.5B and $41B. Meta’s AI investments are set to enhance ad delivery and support long-term growth, despite increasing CapEx.

Freelancer – Using AI to enhance revenue and profit growth

By Edison Investment Research

Freelancer reported a mixed performance in H124, with Escrow.com volumes down significantly after a very strong Q123, while the Freelancer platform benefited from growth in the Loadshift business. There are several promising opportunities in the enterprise business, including providing AI model training services and integration into new verticals within Escrow.com, that could reinvigorate growth from H224. Management is focused on making incremental improvements to the core marketplace platform with the aim of encouraging clients to become regular users of the platform and expanding the size of projects.

Ryoden Trading (8084 JP): Q1 FY03/25 flash update

Revenue decreased to JPY55.2bn (-13.1% YoY) with a progress rate of 25.2%; operating profit fell to JPY1.0bn (-42.6% YoY).
Recurring profit dropped to JPY1.2bn (-28.4% YoY) with a progress rate of 17.3%; net income attributable to owners was JPY862mn (-20.8% YoY).
Strong sales in North America and Europe, robust memory and sensor IC sales, but weak power device sales due to excess inventory.

Softcreate Holdings (3371 JP): Q1 FY03/25 flash update

In Q1 FY03/25, revenue increased 6.7% YoY to JPY7.1bn, while operating profit decreased 15.1% YoY to JPY1.1bn.
The EC Solutions business saw a 6.8% YoY rise in revenue to JPY4.0bn and a 5.8% YoY decline in operating profit.
The IT Solutions business reported a 6.5% YoY revenue increase to JPY3.1bn and an 11.5% YoY decrease in operating profit.

Marubun Corp (7537 JP): Q1 FY03/25 flash update

Net sales: JPY50.8bn (-15.9% YoY); Operating income: JPY2.6bn (-15.4% YoY); Ordinary income: JPY572mn; Profit: JPY429mn.
Electronic Devices business: Net sales JPY40.6bn (-17.7% YoY); Operating income JPY2.7bn (-11.2% YoY); decreased semiconductor demand.
Foreign exchange losses: JPY1.1bn due to yen depreciation; minor impact on consolidated earnings for FY03/25.

Hakuto Co Ltd (7433 JP): Q1 FY03/25 flash update

Q1 FY03/25 results: Sales JPY42.4bn (-5.4% YoY), Operating profit JPY1.7bn (-13.1% YoY), Recurring profit JPY2.3bn (+30.6% YoY), Net income JPY1.5bn.
Segment sales: Electronic Devices and Components JPY34.8bn (-3.1% YoY), Electronic and Electric Equipment JPY4.7bn (-18.0% YoY), Industrial Chemicals JPY2.8bn (-8.9% YoY).
Segment profit: Electronic Devices and Components JPY1.6bn (+7.3% YoY), Electronic and Electric Equipment JPY127mn (-68.8% YoY), Industrial Chemicals JPY45mn (-75.5% YoY).

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Aug 02

Daily Brief Industrials: Hanwha Aerospace, Nippon Express Holdings, China Shipbuilding Industry, Radiant Logistics, Career Design Center, Shinmaywa Industries, Takara Standard, Tocalo Co Ltd, Tokai Holdings, Daiichi Jitsugyo and more

By Smartkarma Daily Briefs | Daily Briefs, Industrials

In today’s briefing:

Quiddity Leaderboard KOSPI 200 Dec 24: Up to 5 ADDs & 6 DELs Possible
Japan – Passive Selling in a Few Weeks & Shorts Build Up
China’s Giant Invests $690 Million in Dry Docks as Tide Turns For Shipbuilding
Radiant Logistics Inc (RLGT) – Wednesday, May 1, 2024
Career Design Center (2410 JP): Q3 FY09/24 flash update
Shinmaywa Industries (7224 JP): Q1 FY03/25 flash update
Takara Standard (7981 JP): Q1 FY03/25 flash update
Tocalo Co Ltd (3433 JP): Q1 FY03/25 flash update
Tokai Holdings (3167 JP): Q1 FY03/25 flash update
Daiichi Jitsugyo (8059 JP): Q1 FY03/25 flash update

Quiddity Leaderboard KOSPI 200 Dec 24: Up to 5 ADDs & 6 DELs Possible

KOSPI 200 is a Korean blue-chip index that tracks the 200 largest and most-liquid names listed in the KOSPI section of the Korea Exchange (KRX).
In this insight, we take a look at the names leading the race to become ADDs and DELs during the upcoming semiannual review in December 2024.
We expect up to five ADDs and six DELs in the KOSPI 200 index during the December 2024 index rebal event based on the latest available data.

Japan – Passive Selling in a Few Weeks & Shorts Build Up

Up to 12 stocks could be deleted from global passive portfolios in August. The deletion will lead to liquidity events where trackers will need to sell multiple days of ADV.
There has been a buildup of shorts on nearly all these stocks though the extent of the pre-positioning varies.
The increase in shorts is smaller than the estimated passive selling, though there is a fair amount of variability across the names.

China’s Giant Invests $690 Million in Dry Docks as Tide Turns For Shipbuilding

By Caixin Global

China’s state-owned shipbuilding giant, China Shipbuilding Industry Co. Ltd. (601989.SH +2.12%), is to invest more than 5 billion yuan ($690 million) in two acquisition deals to expand its shipyard capacity and meet rising demand.
China Shipbuilding Industry, the Shanghai-listed arm of China State Shipbuilding Corp. Ltd. (CSSC), announced Saturday a 4.04 billion yuan acquisition of Tianjin Xingang Shipbuilding Heavy Industry Co. Ltd.’s assets in Lingang, northern China’s port city Tianjin.
The purchase includes a 500,000-ton and a 300,000 ton dry dock, each equipped with two gantry cranes, as well as associated plants, outfitting quays, ship repair docks, sea outlet docks and other shoreline facilities, according to the company’s filing.

Radiant Logistics Inc (RLGT) – Wednesday, May 1, 2024

Despite significant improvements in financial performance, Radiant Logistics’ share price has not reflected the company’s growth over the past seven years.
The company’s strong balance sheet, free cash flow generation, and potential for growth through acquisitions make the stock appear undervalued.
Radiant, a provider of third-party logistics services, may be an attractive acquisition target for larger logistics companies in the future.

Career Design Center (2410 JP): Q3 FY09/24 flash update

In cumulative Q3 FY09/24, revenue was JPY13.3bn (+2.1% YoY), operating profit JPY1.1bn (-17.2% YoY), and net income JPY752mn (-16.8% YoY).
Media Information business revenue was JPY4.5bn (+7.1% YoY), segment recurring profit JPY464mn (+39.0% YoY) in cumulative Q3 FY09/24.
Revised full-year FY09/24 forecast: revenue JPY17.8bn (+2.3% YoY), operating profit JPY1.4bn (-9.9% YoY), net income JPY989mn (-15.0% YoY).

Shinmaywa Industries (7224 JP): Q1 FY03/25 flash update

Revenue rose JPY5.0bn (+9.6% YoY) due to higher revenue at Special Purpose Truck and Parking Systems businesses.
Operating profit increased JPY1.2bn (+189.2% YoY) mainly due to higher profit at Special Purpose Truck and Parking Systems businesses.
The company did not revise its full-year outlook for revenue and profit at the time of the Q1 earnings announcement.

Takara Standard (7981 JP): Q1 FY03/25 flash update

Revenue reached JPY57.3bn (+0.1% YoY), operating profit JPY3.1bn (+15.4% YoY), and recurring profit JPY3.3bn (+14.2% YoY).
Revenue from the new housing complex market increased by 15.9% YoY, while the remodeling market declined by 9.3% YoY.
Shipment volumes decreased across all segments, with the highest decline in the JPY14.3bn revenue segment at -9.5% YoY.

Tocalo Co Ltd (3433 JP): Q1 FY03/25 flash update

Sales increased 9.1% YoY to JPY12.9bn, driven by semiconductors, FPDs, industrial machinery, and steel-related applications.
Operating profit rose 18.5% YoY to JPY2.7bn, with recurring profit up 22.9% YoY to JPY2.9bn.
Orders grew 10.7% YoY to JPY13.6bn, with the order backlog increasing 13.0% YoY to JPY10.0bn.

Tokai Holdings (3167 JP): Q1 FY03/25 flash update

The company reported Q1 sales of JPY56.2bn (+4.1% YoY), operating profit of JPY3.3bn (+33.6% YoY), and net income of JPY1.9bn (+39.9% YoY).
Energy segment sales were JPY24.7bn (+2.9% YoY) with operating profit of JPY933mn (+1,480.0% YoY), driven by customer acquisition.
Information and Communications segment sales were JPY14.0bn (+3.9% YoY) with operating profit of JPY829mn (-25.0% YoY) due to higher amortization expenses.

Daiichi Jitsugyo (8059 JP): Q1 FY03/25 flash update

Orders: JPY45.4bn (+5.7% YoY), Revenue: JPY43.4bn (+26.1% YoY), Operating Profit: JPY2.1bn (+203.8% YoY), Net Income: JPY1.1bn (+144.9% YoY).
Revenue rose due to increased sales of plant equipment, lithium-ion battery manufacturing equipment, and molding machines.
Revenue declined YoY in electronic component manufacturing equipment, automotive industry equipment, and medical device manufacturing equipment.

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Aug 02

Daily Brief Industrials: Hanwha Aerospace, Nippon Express Holdings, China Shipbuilding Industry, Radiant Logistics, Career Design Center, Shinmaywa Industries, Takara Standard, Tocalo Co Ltd, Tokai Holdings, Daiichi Jitsugyo and more

By Smartkarma Daily Briefs | Daily Briefs, Industrials

In today’s briefing:

Quiddity Leaderboard KOSPI 200 Dec 24: Up to 5 ADDs & 6 DELs Possible
Japan – Passive Selling in a Few Weeks & Shorts Build Up
China’s Giant Invests $690 Million in Dry Docks as Tide Turns For Shipbuilding
Radiant Logistics Inc (RLGT) – Wednesday, May 1, 2024
Career Design Center (2410 JP): Q3 FY09/24 flash update
Shinmaywa Industries (7224 JP): Q1 FY03/25 flash update
Takara Standard (7981 JP): Q1 FY03/25 flash update
Tocalo Co Ltd (3433 JP): Q1 FY03/25 flash update
Tokai Holdings (3167 JP): Q1 FY03/25 flash update
Daiichi Jitsugyo (8059 JP): Q1 FY03/25 flash update

Quiddity Leaderboard KOSPI 200 Dec 24: Up to 5 ADDs & 6 DELs Possible

KOSPI 200 is a Korean blue-chip index that tracks the 200 largest and most-liquid names listed in the KOSPI section of the Korea Exchange (KRX).
In this insight, we take a look at the names leading the race to become ADDs and DELs during the upcoming semiannual review in December 2024.
We expect up to five ADDs and six DELs in the KOSPI 200 index during the December 2024 index rebal event based on the latest available data.

Japan – Passive Selling in a Few Weeks & Shorts Build Up

Up to 12 stocks could be deleted from global passive portfolios in August. The deletion will lead to liquidity events where trackers will need to sell multiple days of ADV.
There has been a buildup of shorts on nearly all these stocks though the extent of the pre-positioning varies.
The increase in shorts is smaller than the estimated passive selling, though there is a fair amount of variability across the names.

China’s Giant Invests $690 Million in Dry Docks as Tide Turns For Shipbuilding

By Caixin Global

China’s state-owned shipbuilding giant, China Shipbuilding Industry Co. Ltd. (601989.SH +2.12%), is to invest more than 5 billion yuan ($690 million) in two acquisition deals to expand its shipyard capacity and meet rising demand.
China Shipbuilding Industry, the Shanghai-listed arm of China State Shipbuilding Corp. Ltd. (CSSC), announced Saturday a 4.04 billion yuan acquisition of Tianjin Xingang Shipbuilding Heavy Industry Co. Ltd.’s assets in Lingang, northern China’s port city Tianjin.
The purchase includes a 500,000-ton and a 300,000 ton dry dock, each equipped with two gantry cranes, as well as associated plants, outfitting quays, ship repair docks, sea outlet docks and other shoreline facilities, according to the company’s filing.

Radiant Logistics Inc (RLGT) – Wednesday, May 1, 2024

Despite significant improvements in financial performance, Radiant Logistics’ share price has not reflected the company’s growth over the past seven years.
The company’s strong balance sheet, free cash flow generation, and potential for growth through acquisitions make the stock appear undervalued.
Radiant, a provider of third-party logistics services, may be an attractive acquisition target for larger logistics companies in the future.

Career Design Center (2410 JP): Q3 FY09/24 flash update

In cumulative Q3 FY09/24, revenue was JPY13.3bn (+2.1% YoY), operating profit JPY1.1bn (-17.2% YoY), and net income JPY752mn (-16.8% YoY).
Media Information business revenue was JPY4.5bn (+7.1% YoY), segment recurring profit JPY464mn (+39.0% YoY) in cumulative Q3 FY09/24.
Revised full-year FY09/24 forecast: revenue JPY17.8bn (+2.3% YoY), operating profit JPY1.4bn (-9.9% YoY), net income JPY989mn (-15.0% YoY).

Shinmaywa Industries (7224 JP): Q1 FY03/25 flash update

Revenue rose JPY5.0bn (+9.6% YoY) due to higher revenue at Special Purpose Truck and Parking Systems businesses.
Operating profit increased JPY1.2bn (+189.2% YoY) mainly due to higher profit at Special Purpose Truck and Parking Systems businesses.
The company did not revise its full-year outlook for revenue and profit at the time of the Q1 earnings announcement.

Takara Standard (7981 JP): Q1 FY03/25 flash update

Revenue reached JPY57.3bn (+0.1% YoY), operating profit JPY3.1bn (+15.4% YoY), and recurring profit JPY3.3bn (+14.2% YoY).
Revenue from the new housing complex market increased by 15.9% YoY, while the remodeling market declined by 9.3% YoY.
Shipment volumes decreased across all segments, with the highest decline in the JPY14.3bn revenue segment at -9.5% YoY.

Tocalo Co Ltd (3433 JP): Q1 FY03/25 flash update

Sales increased 9.1% YoY to JPY12.9bn, driven by semiconductors, FPDs, industrial machinery, and steel-related applications.
Operating profit rose 18.5% YoY to JPY2.7bn, with recurring profit up 22.9% YoY to JPY2.9bn.
Orders grew 10.7% YoY to JPY13.6bn, with the order backlog increasing 13.0% YoY to JPY10.0bn.

Tokai Holdings (3167 JP): Q1 FY03/25 flash update

The company reported Q1 sales of JPY56.2bn (+4.1% YoY), operating profit of JPY3.3bn (+33.6% YoY), and net income of JPY1.9bn (+39.9% YoY).
Energy segment sales were JPY24.7bn (+2.9% YoY) with operating profit of JPY933mn (+1,480.0% YoY), driven by customer acquisition.
Information and Communications segment sales were JPY14.0bn (+3.9% YoY) with operating profit of JPY829mn (-25.0% YoY) due to higher amortization expenses.

Daiichi Jitsugyo (8059 JP): Q1 FY03/25 flash update

Orders: JPY45.4bn (+5.7% YoY), Revenue: JPY43.4bn (+26.1% YoY), Operating Profit: JPY2.1bn (+203.8% YoY), Net Income: JPY1.1bn (+144.9% YoY).
Revenue rose due to increased sales of plant equipment, lithium-ion battery manufacturing equipment, and molding machines.
Revenue declined YoY in electronic component manufacturing equipment, automotive industry equipment, and medical device manufacturing equipment.

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Aug 02

Daily Brief Energy/Materials: Pacific Metals, Crude Oil, Exxon Mobil, Iron Ore, Hawkins Inc, Taiyo Holdings, Antero Midstream Corp, Chugoku Marine Paints, Serica Energy, ADX Energy Ltd and more

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

In today’s briefing:

Pacific Metals (5541 JP): Here We Go Again Murakami Becomes a Substantial Shareholder
[ETP 31/2024] Oil Prices Surge on Middle East Tensions; BP and Shell Beat Earnings Expectations
[Earnings Preview] Exxon Braces for Profit Hit as Refining Margins Tighten
Miners at Peak Risk/Reward
HWKN: Rising Gross Margin Profile, PT to $122
Taiyo Holdings (4626 JP): Q1 FY03/25 flash update
Antero Midstream Corp (AM) – Wednesday, May 1, 2024
Chugoku Marine Paints (4617 JP): Q1 FY03/25 flash update
Serica Energy Plc (AIM: SQZ): Reflections on the UK Fiscal Regime Changes
ADX Energy (ASX: ADX): Reflections on Welchau

Pacific Metals (5541 JP): Here We Go Again Murakami Becomes a Substantial Shareholder

Murakami’s entity, City Index Eleventh, and daughter reported a 5.40% stake in Pacific Metals (5541 JP). The shares were purchased from 27 May to 25 July.
Murakami’s average buy-in price is JPY1,259 per share, an 11.1% discount to the last close price. Murakami has been a substantial shareholder twice before.
Murakami’s previous dealings in Pacific Metals were a pump-and-dump where he built up around 8% stake, only to sell into the share price pop subsequently. Expect more of the same.

[ETP 31/2024] Oil Prices Surge on Middle East Tensions; BP and Shell Beat Earnings Expectations

US crude inventories fell for the fifth consecutive week by 3.4 mb, exceeding the 1.6 mb decline expected by analysts. Gasoline stocks also decreased by 3.7 mb.
As of the week ending 26/Jul, US natural gas inventories were up 8.4% YoY and 15.7% above the 5-year seasonal average.
European oil majors beat Q2 profit estimates. BP’s Q2 underlying net profit beat estimates by 7.7%. Shell’s Q2 EPS beat estimates by 5.1%.

[Earnings Preview] Exxon Braces for Profit Hit as Refining Margins Tighten

ExxonMobil anticipates a USD 1.1 billion to USD 1.5 billion dent on its Q2 earnings due to the industry-wide contraction in refining margins.
Exxon Mobil anticipates the USD 300 million to USD 700 million negative impact on earnings from lower gas prices to be offset by gains from higher oil prices.
Since acquiring Pioneer, Exxon more than doubled production to 1.3 mboepd from 2023. Full merger effects are expected in Q3.

Miners at Peak Risk/Reward

By Money of Mine

Champion Iron Ore, also known as Champ, is a premium producer in the iron ore sector with potential for increased attention over time.
Adriatic Metals is ramping up production at their Vares silver-zinc polymetallic deposit in Bosnia, but facing challenges with cash flow and development rates.
Cash flow issues, teething problems with mining services, and logistical challenges are hindering Adriatic’s ramp up, but they are on track to reach their nameplate by Q4.

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

HWKN: Rising Gross Margin Profile, PT to $122

By Hamed Khorsand

HWKN reported fiscal first quarter (June) where the water treatment business surpassed the industrial segment in sales and helped HWKN exceed our earnings estimate.
The water treatment business has grown through acquisition to a point where the segment has become a dominant portion of HWKN’s sales.
A higher earnings profile for HWKN and earnings continuing to grow in fiscals 2025 and 2026 leads us to raise our price target to $122 from $96.

Taiyo Holdings (4626 JP): Q1 FY03/25 flash update

FY03/25 sales increased 29.3% YoY, with Electronics segment sales at JPY21.5bn (+36.6% YoY) and Medical and Pharmaceuticals at JPY8.3bn (+12.6% YoY).
Operating profit grew 83.2% YoY, driven by yen depreciation and increased sales of high value-added white dry films.
Full-year FY03/25 earnings forecasts revised: Sales JPY116.1bn (+10.8% YoY), Operating profit JPY20.6bn (+13.2% YoY), Net income JPY13.8bn (+59.5% YoY).

Antero Midstream Corp (AM) – Wednesday, May 1, 2024

Low natural gas prices benefit AM and AR due to their low-cost structure and hedging program
AR has improved its financial position by reducing debt and improving liquidity
AM’s partnership with AR provides stability and growth potential, making it an attractive investment option for investors looking for dividend yield and capital appreciation.

Chugoku Marine Paints (4617 JP): Q1 FY03/25 flash update

CMP’s Q1 FY03/25 sales were JPY29.1bn (+9.8% YoY), with notable increases in marine, industrial, and container paints.
Operating profit was JPY3.4bn (+62.3% YoY), recurring profit JPY3.9bn (+61.9% YoY), and net income JPY4.9bn (+186.2% YoY).
Profits increased in all regions, with sales up YoY in Japan, South Korea, and Southeast Asia, but down in Europe and the US.

Serica Energy Plc (AIM: SQZ): Reflections on the UK Fiscal Regime Changes

By Auctus Advisors

As expected, the rate of the Energy Profits Levy (EPL) will increase from 35% to 38% and the 29% investment allowance introduced with the EPL will be removed.
The changes will be effective from 01 November 2024 and run until 31 March 2030.
The government has also signalled that capital allowances (including first year allowances) in relation to the EPL will be reduced, but has said that the extent of this will be established after consultation with stakeholders and published in the 30 October fiscal event.

ADX Energy (ASX: ADX): Reflections on Welchau

By Auctus Advisors

Independent consultants have calculated that each of the three reservoirs encountered at Welchau (Reifling – 128 metres, Steinalm -118 metres and the Guttenstein – 111 metres) are hydrocarbon bearing with uncertainty on the hydrocarbon type.
Laboratory work on the Steinalm reservoir has confirmed the full properties ofthe 43° API light sweet oil that was recovered in an MDT sample run in the Steinalm Formation.
The vertical extent of this light oil in the Steinalm or in the shallower Reifling and deeper Guttenstein is uncertain and there is no clear evidence of a hydrocarbon-water contact in any of the reservoir formations based on the open hole wireline log data.

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Aug 02

Daily Brief Financials: IP Group PLC, Picton Property Income, American Tower, Aruhi Corp and more

By Smartkarma Daily Briefs | Daily Briefs, Financials

In today’s briefing:

IP Group – Novo Holdings invests in Oxford Nanopore
Picton Property Income – Increased DPS driving positive returns
American Tower Corp (AMT) – Wednesday, May 1, 2024
Aruhi Corp (7198 JP): Q1 FY03/25 flash update

IP Group – Novo Holdings invests in Oxford Nanopore

By Edison Investment Research

IP Group’s largest life sciences holding at end-2023, Oxford Nanopore (ONT), which developed a new generation of nanopore-based sensing technology, announced earlier today that it has successfully completed an issue of 66.7m ordinary shares (c 7.6% of its issued capital), raising £80m of gross proceeds (upsized from the initial £75m as the issue was multiple times oversubscribed). This includes a £50m strategic investment by Novo Holdings (the controlling shareholder of Novo Nordisk and Novozymes), with the remaining proceeds coming from institutional investors. As per the announcement, Novo Holdings currently intends (subject to availability and price, among others) to purchase another £10m worth of ONT shares over time in the market.

Picton Property Income – Increased DPS driving positive returns

By Edison Investment Research

Picton Property Income’s Q125 trading update shows DPS, increased by 6% from Q423, fully covered by EPRA earnings. Our unchanged forecasts show continuing earnings growth, driven by positive leasing momentum and asset management initiatives underway. Net asset value has stabilised, supported by improving sentiment in the property market and the prospect of interest rate reductions.

American Tower Corp (AMT) – Wednesday, May 1, 2024

American Tower is a leading owner, operator, and developer of communications real estate with a large portfolio in the US
The author sees the current trading in American Tower as an attractive entry point for investors
The tower business is described as having valuable real estate, organic growth driven by data consumption, and strong demand for communication infrastructure

Aruhi Corp (7198 JP): Q1 FY03/25 flash update