Category

Daily Briefs

Jul 28
0

Daily Brief Industrials: Nidec Corp and more

By | Daily Briefs, Industrials

In today’s briefing:

  • Nidec (6594 JP): Buy into Current Decline

Nidec (6594 JP): Buy into Current Decline

By Scott Foster

  • If further restructuring can be avoided, profitability should return to an acceptable level while sales growth continues. 
  • The decline of EV prices has probably run its course and global demand for factory automation continues to rise despite weakness in China.
  • Projected valuations are at a 10-year low. Investor attention can now shift to economic and operating risks.

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Jul 28
0

Daily Brief Energy/Materials: Shandong Gold Mining and more

By | Daily Briefs, Energy & Materials Sector

In today’s briefing:

  • A/H Premium Tracker (To 26 Jul 2024): SB Bought, NB Sold, HK/China Markets Weak, Spreads Volatile

A/H Premium Tracker (To 26 Jul 2024): SB Bought, NB Sold, HK/China Markets Weak, Spreads Volatile

By Travis Lundy

  • The New/Better A-H Premium Tracker has tables, charts, measures galore to track A/H premium positioning, southbound and northbound positioning/volatility in pairs over time, etc.
  • SOUTHBOUND inflow strong but SOEs not leading. Hang Seng down again, A-shares down more. Bank buying minimal. 
  • AH Premia fell 30bp on average. 1% for Liquid names. HK vs A-shares saw an even wider spread (the opposite of last week). SUPER-tight AH premia saw best H outperformance.

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Jul 28
0

Daily Brief TMT/Internet: Tencent, Taiwan Semiconductor (TSMC) – ADR, ASE Technology Holding , Cadence Design Sys, Acal PLC, Verizon Communications, Visa and more

By | Daily Briefs, TMT/Internet

In today’s briefing:

  • HK Connect SOUTHBOUND Flows (To 26 Jul 2024); ETFs Get Bought, Banks Have Gone Missing
  • Taiwan Dual-Listings Monitor: TSMC and ASE Premium Trading Range Blow-Outs During Recent Sell-Off
  • ASE Color Suggests Widening Performance Gap Between Leading-Edge and Mature Semiconductor Players
  • Cadence Design Systems: Increasing Demand for 3D-IC Technology & Recurring Revenue Growth Makes This A ‘Buy’? – Major Drivers
  • discoverIE Group – FY25 earnings expectations maintained
  • Verizon Communications: New Brand Strategy & Expansion of Fixed Wireless Access (FWA) Are The Highlights! – Major Drivers
  • Visa Inc.: Consistent Strong Performance in Value-Added Services (VAS) & Other Major Drivers

HK Connect SOUTHBOUND Flows (To 26 Jul 2024); ETFs Get Bought, Banks Have Gone Missing

By Travis Lundy

  • SOUTHBOUND was again a net buyer, for HK$7.8bn this week (now 25wks in a row of net buying), on smallish two-way volumes. 
  • I’ve thought national team was buying banks for months. This week, 1 bank showed up in the top 20 net buys after only 1 in the top ten last week.
  • There were three ETFs in the top six SOUTHBOUND buys this past week. That was unusual. Some high div SOEs got sold. 

Taiwan Dual-Listings Monitor: TSMC and ASE Premium Trading Range Blow-Outs During Recent Sell-Off

By Vincent Fernando, CFA

  • TSMC: Crashed Then Rebounded to +15.1% Premium; Likely to Break Down Again
  • UMC: -0.2% Discount; Earnings Imminent; Notable Decrease in ADR Headroom
  • ASE: Rebounded to +9.2 Premium After Major Breakdown; Likely to Drop Again

ASE Color Suggests Widening Performance Gap Between Leading-Edge and Mature Semiconductor Players

By Vincent Fernando, CFA

  • A TALE OF TWO SEMI INDUSTRIES: ASE’s latest earnings commentary indicates that the performance gap between “leading-edge” technologies and “traditional/mature” semiconductor technologies may be widening.
  • CAPITAL REQUIREMENT TO KEEP PACE IS RISING: Capacity utilization is starkly different for traditional vs. leading-edge capacity; and capital requirements to keep up in terms of advanced capacity is rising.
  • ENTRY BARRIERS RISING: We suspect that smaller players could face significant challenges in keeping up with the investments necessary for leading-edge packaging and testing capacity. ASE needs to invest heavily.

Cadence Design Systems: Increasing Demand for 3D-IC Technology & Recurring Revenue Growth Makes This A ‘Buy’? – Major Drivers

By Baptista Research

  • Cadence Design Systems, Inc. reported strong results and exceeded expectations for their second quarter of 2024, with broad-based momentum seen across their product portfolio.
  • The company also posted stronger bookings than anticipated, leading to a strong backlog, demonstrating the robust demand for their innovative products.
  • Cadence updated its revenue guidance for the year to over 13% year-over-year growth, reflecting its strong performance.

discoverIE Group – FY25 earnings expectations maintained

By Edison Investment Research

discoverIE’s Q125 trading update confirmed that underlying earnings expectations for FY25 are unchanged. While the Q125 revenue decline reflects the lower bookings environment in previous quarters, book-to-bill was above one and bookings increased organically year-on-year despite ongoing destocking by customers in the industrial market. Robust gross margins and a well-controlled cost base support the company’s 13.5% target operating margin for FY25 and we maintain our forecasts.

Verizon Communications: New Brand Strategy & Expansion of Fixed Wireless Access (FWA) Are The Highlights! – Major Drivers

By Baptista Research

  • Verizon Communications Inc. had a successful second quarter of 2024 as the company reports strong results, with wireless service revenue climbing 3.5% year-over-year, adjusted EBITDA rise by 2.8%, and free cash flow increasing by 3% compared to last year.
  • In addition, the company’s customer-centric measures such as myPlan and Verizon Business Complete are resonating with its consumers, leading to further growth and stronger customer relationships.
  • The company’s impressive results follow its commitment to innovation and the implementation of a brand refresh, signifying its evolution and future visions for connectivity.

Visa Inc.: Consistent Strong Performance in Value-Added Services (VAS) & Other Major Drivers

By Baptista Research

  • Visa Inc.’s fiscal third quarter of 2024 reveals a strong financial position, but also indicates room for improvement.
  • Net revenue was $8.9B, notching a 10% YoY increase and included a 12% YoY rise for EPS, indicating an increased level of profitability.
  • One of Visa’s strongest areas this past quarter has been its focus on global client engagement, resulting in a 3-pt increase in their global Net Promoter Score (NPS) to 76.

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Jul 28
0

Daily Brief Industrials: Nidec Corp and more

By | Daily Briefs, Industrials

In today’s briefing:

  • Nidec (6594 JP): Buy into Current Decline

Nidec (6594 JP): Buy into Current Decline

By Scott Foster

  • If further restructuring can be avoided, profitability should return to an acceptable level while sales growth continues. 
  • The decline of EV prices has probably run its course and global demand for factory automation continues to rise despite weakness in China.
  • Projected valuations are at a 10-year low. Investor attention can now shift to economic and operating risks.

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Jul 28
0

Daily Brief Consumer: Tohokushinsha Film, Fancl Corp, TSE Tokyo Price Index TOPIX, Tesla and more

By | Consumer, Daily Briefs

In today’s briefing:

  • Tohokushinsha Film (2329 JP): Potential Scenarios as 3D Lobs a Privatisation Proposal
  • Weekly Deals Digest (28 Jul) – Fancl, Furukawa Battery, Sun Corp, TFC, Canvest, CPMC, GAPack, Arvida
  • What Investors and Companies Should Do to Make Engagement More Effective ….
  • Tesla’s Bold Ambitions vs. Harsh Realities Of Product Delays & Slowing Growth Of EV Demand! – Major Drivers

Tohokushinsha Film (2329 JP): Potential Scenarios as 3D Lobs a Privatisation Proposal

By Arun George

  • On 24 July, 3D Investment Partners proposed to privatise Tohokushinsha Film (2329 JP) through a tender offer at JPY600-650 per share. A special committee will evaluate the proposal. 
  • 3D’s privatisation plan, in its current terms, is a non-starter as the price is low, and its activism campaign has so far been met with the Board’s scepticism.
  • The possible scenarios are that a white knight emerges to buy 3D’s stake/launch a counteroffer, 3D bumps the offer price, or the Board introduces a more ambitious MTM plan.

Weekly Deals Digest (28 Jul) – Fancl, Furukawa Battery, Sun Corp, TFC, Canvest, CPMC, GAPack, Arvida

By Arun George

What Investors and Companies Should Do to Make Engagement More Effective ….

By Aki Matsumoto

  • The high percentage of foreign ownership is a characteristic of companies that have improved capital profitability and increased valuations, which is effective for overseas investor engagement.
  • If the system is revised to help collaborative engagement and the identification of substantial shareholders, some of the challenges will be eliminated for both investors and the company.
  • To make the engagement more effective, investors should increase active funds and companies should decrease cross-shareholdings.

Tesla’s Bold Ambitions vs. Harsh Realities Of Product Delays & Slowing Growth Of EV Demand! – Major Drivers

By Baptista Research

  • Tesla remains a polarizing entity in the stock market, consistently capturing the imagination of investors with its bold vision and ambitious projects.
  • The company’s latest earnings highlighted both its impressive achievements and notable challenges, leaving a mixed bag for potential investors, resulting in the stock going down.
  • On the positive side, Tesla continues to lead the electric vehicle (EV) market with record revenues and promising advancements in autonomous driving technology.

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Jul 28
0

Daily Brief Financials: Mandala Multifinance, Molten Ventures and more

By | Daily Briefs, Financials

In today’s briefing:

  • Mandala Multifinance (MFIN IJ): Offer Now Open
  • Molten Ventures – Making progress on its realisation agenda

Mandala Multifinance (MFIN IJ): Offer Now Open

By David Blennerhassett

  • Waaay back in June 2023, MUFG (8306 JP) and 92.7%-held Adira Dinamika (ADMF IJ) entered into SPAs with key shareholders to acquire an 80.6% stake in Mandala Multifinance (MFIN IJ).
  • MFIN’s shareholders overwhelmingly approved the change of control at the 13th Feb EGM. OJK signing off was the next hurdle.
  • The Tender Offer is now open, at the (expected) price of  IDR 3,297/share. The close of the Offer is the 21st August, with payment on the 28th August. 

Molten Ventures – Making progress on its realisation agenda

By Edison Investment Research

Molten Ventures has recently completed the exits from Perkbox, Endomag and Graphcore. This translates into more than £70m realisation proceeds, which means Molten is on track to reach the £100m that management expects for FY25. As a result, Molten has announced a £10m buyback programme (starting on 26 July), in line with its recently updated capital allocation policy of earmarking at least 10% of realisation proceeds for share repurchases. Molten has also agreed a new £180m debt facility that replaces the previous £150m facility maturing in September 2024.

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Jul 28
0

Daily Brief Health Care: Arvida, Dr. Reddy’s Laboratories, Jeisys Medical, OSE Immuno and more

By | Daily Briefs, Healthcare

In today’s briefing:

  • (Mostly) Asia-Pac M&A: Furukawa Battery, Arvida, Warehouse Group, Pacific Smiles, Canvest, Jeisys
  • Quiddity Leaderboard NIFTY Sep 24: Final Expectations; Trades Perform Positively; New Ideas
  • Last Week in Event SPACE: Sun Corp, Amorepacific, Canon Marketing, Jeisys Medical
  • OSE Immunotherapeutics – Lusvertikimab shines in Phase II UC trial

(Mostly) Asia-Pac M&A: Furukawa Battery, Arvida, Warehouse Group, Pacific Smiles, Canvest, Jeisys

By David Blennerhassett

Quiddity Leaderboard NIFTY Sep 24: Final Expectations; Trades Perform Positively; New Ideas

By Janaghan Jeyakumar, CFA

  • NIFTY 50 represents the 50 largest stocks listed in the National Stock Exchange (NSE) of India and the NIFTY Next 50 index tracks the next 50 largest names.
  • With three more trading days left in the reference period, we are presenting our final  expectations for ADDs and DELs for the September 2024 index rebal event.
  • We see five changes for the NIFTY 100 index which will also affect the NIFTY Next 50 index. There could also be multiple changes for the NIFTY 50 index.

Last Week in Event SPACE: Sun Corp, Amorepacific, Canon Marketing, Jeisys Medical

By David Blennerhassett

OSE Immunotherapeutics – Lusvertikimab shines in Phase II UC trial

By Edison Investment Research

OSE Immunotherapeutics’ run of positive news continues with the announcement of encouraging data from the Phase II proof-of-concept CoTikiS study, evaluating Lusvertikimab as a novel treatment for ulcerative colitis (UC). The randomised, double-blind trial (n=136) has reported encouraging, statistically significant benefits, reflected in material improvements on the Modified Mayo Score (MMS). The full data set will be presented in due course, and we expect the next stage of development to be undertaken in partnership, which we estimate will be in place in 2025. Lusvertikimab is a potentially first-in-class IL-7R antagonist, offering a differentiated mechanism of action to other available biologics that currently dominate the UC market. We expect the next major catalyst for OSE to be the initiation of the Phase III trial for lead asset Tedopi, anticipated to commence imminently (previous guided timeline was Q224).

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Jul 28
0

Top 10 Highlights from the APAC PE, VC and Startup Ecosystem this Week – 28 Jul 2024

By | Private Markets, Smartkarma Newswire

Top ten highlights from the APAC PE, VC, and startup ecosystem this week:

  1. Southeast Asian startups experienced a decline in equity funding in the second quarter, marking a reversal from previous upward trends.
  2. In the first half of 2024, the total value of proceeds in the region stood at $2.29 billion, showing a 36% year-on-year decline, the lowest level in more than five years.
  3. Indonesia saw a significant drop in funding activities, with deal volume hitting a new low in the second quarter.
  4. Early-stage startup funding surpassed late-stage funding in the first semester, indicating a shift from the past five years.
  5. Indian startups raised the highest funding in June, with $2.24 billion compared to $1.85 billion in May 2024.
  6. Indian e-commerce startups dominated big-ticket funding transactions, securing $1.9 billion in the first half of 2024.
  7. Several companies in Southeast Asia reported financial updates, including 2C2P trimming its losses and Naver-backed Planetarium Labs experiencing revenue growth despite increased losses.
  8. Singapore’s GIC posted a 3.9% annualized real rate of return for the 20-year period ending in March 2024.
  9. ANEXT Bank in Singapore saw losses rise in 2023 despite a significant revenue increase.
  10. Overall, the venture capital landscape in Southeast Asia remains cautious, with investors eyeing opportunities in various sectors and markets.”

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