In today’s briefing:
- Acotec Scientific Holdings (6669 HK): Base Business, Geography Expansion, New Launch to Drive Growth
- Hamamatsu Photonics (6965 JP): Earning Momentum Fading
- Acotec Scientific Holdings (6669.HK) – A Game Changer with Solid Long-Term Logic
- Asia Gaming: Raising Recent Guidance on Melco Resorts as Catalysts Begin to Move Market Sentiment
Acotec Scientific Holdings (6669 HK): Base Business, Geography Expansion, New Launch to Drive Growth
- Acotec Scientific Holdings (6669 HK) is an early-mover in peripheral drug coated balloon market in China and holds a dominant 85%+ market share.
- On November 7, Acotec received its first FDA approval for Vericor, a peripheral support catheter designed to enhance access to peripheral vessels.
- Acotec started 2022 on a strong note, with revenue increasing 25% y/y in H1 2022 due to increasing adoption of the company’s product in Chinese hospitals.
Hamamatsu Photonics (6965 JP): Earning Momentum Fading
- As expected, FY Sep-22 results were ahead of guidance. Management is forecasting further growth this fiscal year, but guiding for a YoY decline in operating profit in 2H.
- In addition, the depreciation of the yen, which added 5% to sales at 17% to operating profit last fiscal year, has reversed, economies have weakened and interest rates are up.
- We continue to recommend profit taking. We would like to buy the shares at ¥6,000 – 15% down from the Dec. 9 close.
Acotec Scientific Holdings (6669.HK) – A Game Changer with Solid Long-Term Logic
- The peripheral vascular interventional device market in China is mainly dominated by foreign companies, but leading domestic company such as Acotec is the one to break the current market pattern.
- With more products getting CE/FDA approval in the future, Acotec Scientific Holdings (6669 HK) is able to enter more overseas markets. Acotec’s globalization process will diversify the revenue stream.
- Acotec has turned loss into profit by relying on product revenue. The Company has entered a new stage of innovation and harvest. We think Acotec has solid long term logic.
Asia Gaming: Raising Recent Guidance on Melco Resorts as Catalysts Begin to Move Market Sentiment
- In last month’s insight, we noted that Melco was poised for an upside as it was among the most seriously undervalued stock in the sector.
- Despite continuing covid travel ban related losses in 3Q22 earnings release, we saw an upside coming in near term catalysts.
- Improving performance by 1Q23 will turn sentiment even stronger as the bull case materializes due to positives now poised in place.
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