In today’s briefing:
- 2023 High Conviction Update: Revolution Medicines, RVMD/EQRx Deal Adds $1B+ Of Capital
- Eisai Co (4523 JP): Better-Than-Expected Q1FY24 Result; Reaffirmed FY24 Guidance
- China Healthcare Weekly (Aug.4) – TCM Rally Ends, P/E Ratio Becomes Ineffective, IRay Technology
- Mettler-Toledo International Inc.: 5 Facts About Strong Service Growth You Need to Know! – Financial Forecasts
- The Hershey Company: 5 Essential Lessons from Their Recent Performance – Financial Forecasts
- Keurig Dr Pepper Inc.: Collaboration with La Colombe & Other Major Developments
- Royal Caribbean Cruises Ltd.: 3 Reasons Behind Their Recent Growth! – Financial Forecasts
- WW Grainger Inc.: What Is Their Biggest Competitive Edge? – Key Drivers
- Valero Energy Corporation: 4 Major Drivers Responsible For Their Future Growth – Financial Forecasts
- Martin Marietta Materials Inc.: 5 Critical Highlights From The Recent Financial Performance! – Financial Forecasts
2023 High Conviction Update: Revolution Medicines, RVMD/EQRx Deal Adds $1B+ Of Capital
- Sanofi, a French multinational healthcare company, terminated the SHP2 inhibitor RMC-4630 development and commercialization agreement in 2022. The company did not disclose any specific reasons.
- However, Revolution Medicines regained all global rights granted to Sanofi, and management reiterated that RMC-4630 is a potentially important RAS oral inhibitor in the company’s pipeline.
- A US-based oncology company completed a public equity offering in March and raised ~$324M of net proceeds. Moreover, Revolution Medicines acquired EQRx and secured access to $1B+ of capital.
Eisai Co (4523 JP): Better-Than-Expected Q1FY24 Result; Reaffirmed FY24 Guidance
- Eisai Co Ltd (4523 JP) reported 7% YoY revenue growth in Q1FY24, due to the growth of anticancer agent Lenvima mainly in the U.S. and insomnia treatment Dayvigo in Japan.
- The company has reiterated FY24 guidance, which calls for 4% YoY revenue decline, 25% YoY growth in operating profit, and 31% YoY decline in net profit.
- On July 6, 2023, Eisai received full FDA approval for Leqembi (lecanemab) injection for the treatment of Alzheimer’s disease. Leqembi is progressing steadily toward treating 10K U.S. patients in FY24.
China Healthcare Weekly (Aug.4) – TCM Rally Ends, P/E Ratio Becomes Ineffective, IRay Technology
- The rally of TCM companies has probably come to an end. But we think there would be good trading opportunities in 23Q4. Things could become challenging again in 24Q1.
- If P/E is used when calculating the valuation of innovative pharmaceutical companies, unreasonable situations may arise. Sales profit rather than net profit could be a better choice for P/E.
- Although iRay’s current P/E has fallen in reasonable range, due to concerns about its long-term growth prospects, valuation could further decline in long term. So, just short-term trade is recommended.
Mettler-Toledo International Inc.: 5 Facts About Strong Service Growth You Need to Know! – Financial Forecasts
- Mettler-Toledo International delivered a mixed result in the recent quarter, with revenues below market expectations but managed to surpass the analyst consensus regarding earnings.
- The sales growth included strong growth in the company’s service business as well as solid performance across its industrial product classes.
- In China, market demand deteriorated due to growing uncertainty around the pace of limited government stimulus and economic growth.
The Hershey Company: 5 Essential Lessons from Their Recent Performance – Financial Forecasts
- The Hershey Company delivered mixed results for the previous quarter, with revenues well below analyst expectations but managed earnings beat.
- The categories continued performing pretty well, with consumer demand for every great-tasting snack staying quite buoyant across the globe.
- Advertisements, as well as related consumer marketing expenses, increased.
Keurig Dr Pepper Inc.: Collaboration with La Colombe & Other Major Developments
- Keurig Dr Pepper delivered a solid result and managed an all-around beat in the last quarter.
- The consolidated results of the quarter were quite healthy, with strong revenue momentum and sequentially accelerating EPS and income growth.
- In the CSD category, Dr Pepper gained market share, strengthened by the success of Strawberries and Cream and the continued momentum of Dr Pepper Zero Sugar.
Royal Caribbean Cruises Ltd.: 3 Reasons Behind Their Recent Growth! – Financial Forecasts
- Royal Caribbean managed to exceed analyst expectations in terms of revenue as well as earnings.
- During the quarter, the company delivered an increase in the number of vacations and saw good guest satisfaction scores.
- For Royal Caribbean Cruises, new hardware has been quite a great differentiator enabling it to attract new customers into its vacation ecosystem and drive quality demand.
WW Grainger Inc.: What Is Their Biggest Competitive Edge? – Key Drivers
- WW Grainger Inc. delivered mixed results for the previous quarter, with revenues below the analyst consensus.
- The quarter finished with daily sales growth.
- Along with the strong top-line growth of WW Grainger, it delivered continued ROIC, robust operating cash flow, and substantial EPS growth.
Valero Energy Corporation: 4 Major Drivers Responsible For Their Future Growth – Financial Forecasts
- Valero Energy Corporation delivered a mixed set of results in its most recent result, with revenues falling short of Wall Street expectations but above-par earnings.
- The refineries of Valero ran well with the throughput capacity utilization because refinery margins were supported by continuous demand balances and tight product supply.
- We give Valero Energy Corporation a ‘Hold’ rating with a revised target price.
Martin Marietta Materials Inc.: 5 Critical Highlights From The Recent Financial Performance! – Financial Forecasts
- Martin Marietta Materials delivered an all-around beat in the most recent quarterly results.
- Martin Marietta achieved robust results across many areas, which includes an increase in consolidated total revenues, consolidated gross profit, adjusted EBITDA, and aggregates gross profit.
- We give Martin Marietta Materials a ‘Hold’ rating with a revised target price.
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