Daily Brief Equity Bottom-Up: A Pair Trade Between Hanmi Science and Hanmi Pharm and more

• There has been a big divergence in the share prices of Hanmi Science and Hanmi Pharm in the past two months. 
• This divergence in share price appears to be a bit too excessive and we believe this gap is likely to narrow in the coming weeks.  
• We like a pair trade between going long Hanmi Science and going short on Hanmi Pharm. 

• FY 2023 was a record year for Richemont with double-digit growth, confirming the Company’s best-in-class fundamentals (pricing power and high barriers to entry), and resilience to challenging market conditions
• Coming out of the pandemic, Richemont Jewellery Maisons have been one of the clear market share winners in the sector
• The Company’s strong sales, profit and cash flows confirm the strong appeal for its Maisons and relevance for long-term growth

• M3’s share price dropped around 9% after 4QFY03/2023 earnings, however, it went up by more than 8% since then following the announcement regarding the acquisition of Kantar’s healthcare research businesses.
• Our estimates suggest that new acquisition would not contribute to any meaningful growth in the near term. Despite having large no. of M&A deals, growth rates have started to fall.
• We think there is further downside to M3 Inc (2413 JP) ‘s consensus FY+2 earnings estimates and we would recommend shorting the stock.

• CSL Ltd (CSL AU) has reduced its profit projection for FY23 due to higher-than-anticipated adverse impact from Fx. The company now expects a Fx headwind of $230–250M from $175M earlier.
• After considering modest recovery of CSL Behring gross margin and generic competition for Ferinject in Europe, CSL expects FY24 NPATA to grow 13–18% to $2.9–3.0B at constant currency.
• All eyes are now on the U.S. launch of the one-time gene therapy Hemgenix for Hemophilia B. CSL expects the first patient to take Hemgenix within the next few weeks.

• Recently, there has been an increase in discussions about Wechat Video Accounts (known as “ShiPinHao”) on local Chinese media and social networks. 
• Overall, merchants acknowledge the potential of Video Accounts and are willing to give it a try, but the results vary significantly among different businesses.
• We expect that Wechat Video Account will remain to have a high speed growth in the next several quarters, but the market expectation is also high.

• Hello from Kyoto! If there was a single big story from VLSI this year, it had to be Backside Power Delivery (BSPDN). VLSI is one of the premier conferences for semiconductor design and has been held since the 1980s.
• Today it’s one of the best places to present cutting-edge research in circuit technology.
• The key revolutionary announcement at VLSI this year was BSPDN. Let’s discuss.

Heliad Equity Partners (HEP) saw a decline in its NAV per share between end-2021 and end-March 2023 of c 48% to €7.35, mostly on the back of the de-ratings of listed holdings (in particular flatexDEGIRO), as well as an NAV dilutive share issue in March 2023. That said, the valuations of HEP’s private holdings have remained largely resilient during recent funding rounds, and Enpal even carried out a new round in Q422 at a significant uplift to its previous valuation. Moreover, flatexDEGIRO’s share price has rebounded by c 32% in the year to date. HEP recently announced its intention to enter into merger negotiations with FinLab (its major shareholder and owner of HEP’s investment manager).

Games Workshop Group’s (GAW’s) FY23 trading update indicates an improvement in underlying trading in the latter months of the period and the expected easing of cost pressures. The strength of the improvement is evident in the fact that FY23 PBT is greater than both our previous FY23 and FY24 estimates. We upgrade our FY24 PBT estimates by c 4%, which incorporates an underlying upgrade offset by a new foreign exchange headwind.