In today’s briefing:
- Appier (4180) | Be Happier
- IDFC First Bank – Mkt Cap Up Big, Can Gain More Interest, With Improved Fundamentals & Amalgamation
- Korea Small Cap Gem #24: Sindoh Co [Net Cash More than 220% of Market Cap]
- Sea Ltd 2Q23: Revenue Should Align with Consensus, Profitability a Puzzle
- NAB – Pillar 3 Data Shows Worst PD Buckets Highest Growth, Best Buckets Down, Risk To Credit Costs
- Fortress Minerals’ CEO Ivan Chee raises his stake
- Shionogi & Co (4507 JP): Non-Recurring Income Lifts Q1 Revenue; FY24 Guidance Reiterated
- Taiwan Tech Weekly: Hon Hai AI Servers Taking Share, Asus Specifies When AI PCs Will Drive Market
- Ford Motor Company: Does It Have Any Kind Of Competitive Edge In This EV Wave? – Key Drivers
- Mondelez International Inc.: Why They Are Called the Titans of the Snack World! – Key Drivers
Appier (4180) | Be Happier
- Strong Q2 results with revenue +42% yoy versus +33% in Q1
- Gross margin expansion to 51.3% on improving AI algorithm performance
- Stock down around 20% over past couple of months, No change to bullish growth forecasts.
IDFC First Bank – Mkt Cap Up Big, Can Gain More Interest, With Improved Fundamentals & Amalgamation
- IDFC First Bank is now at USD7bn market cap, and it will now be seen by more than before
- Net interest income rising from INR27.5bn to INR37.5bn is amongst best in India banking
- Credit metrics improving dramatically, but credit costs have yet to trail lower – to come
Korea Small Cap Gem #24: Sindoh Co [Net Cash More than 220% of Market Cap]
- Sindoh Co Ltd (029530 KS) is the 24th company in our Korea Small Cap Gems series.
- Sindoh has one of the highest net cash/market cap ratios in the entire Korean stock market. Net cash at end of 1Q 2023 was 226% of its market cap.
- Sindoh’s operations turned around in 1Q 2023. It had sales of 105.5 billion won (up 26.6% YoY) and operating profit of 9.8 billion won (turned black) in 1Q 2023.
Sea Ltd 2Q23: Revenue Should Align with Consensus, Profitability a Puzzle
- We remain bearish on Sea (SE US) leading upto Q2 results on 15th August 2023.
- Our analysis suggests Sea Ltd could hit around $3.25bn revenue in 2Q23, in line with consensus. However, profitability could fall short of consensus expectations.
- Nonetheless, any downside stemming from a minor earnings shortfall could be rather limited given the existing low consensus and the lackluster price performance leading up to the Q2 earnings announcement.
NAB – Pillar 3 Data Shows Worst PD Buckets Highest Growth, Best Buckets Down, Risk To Credit Costs
- We turn to granular Pillar 3 disclosure of NAB seeing divergent moves in PD buckets
- Its worst PD buckets are seeing sharp rise, while best buckets are falling, flat-ish
- LT credit cost data, PD buckets, timely CBA data, suggests higher provision costs
Fortress Minerals’ CEO Ivan Chee raises his stake
- Share buybacks by primary listed companies 4 – 10 Aug 2023 Institutions were net buyers of Singapore stocks over the four trading sessions through to Aug 10, with S$136 million of net institutional inflow, with eight primary-listed companies conducting buybacks with a total consideration of S$7.7 million.
- The previous mandate saw the company buy back 14,250,100 of its shares which represented 2.12 per cent of its total number of issued shares (excluding treasury shares).
Shionogi & Co (4507 JP): Non-Recurring Income Lifts Q1 Revenue; FY24 Guidance Reiterated
- In Q1FY24, Shionogi & Co (4507 JP) recorded 52% YoY revenue growth to ¥109B, reflecting a one-time payment received for the transfer of co-development and co-commercialization license for ADHD drugs.
- Shionogi has reiterated FY24 guidance. The company expects FY24 revenue of ¥450B (up 6% YoY), operating profit of ¥150B (up 1% YoY), and net profit of ¥155B (down 16% YoY).
- Despite competition, Xocova captured a 60% market share of the treatment group patients in Japan. Over a six-month period since emergency approval, more than 70K patients have used Xocova.
Taiwan Tech Weekly: Hon Hai AI Servers Taking Share, Asus Specifies When AI PCs Will Drive Market
- Hon Hai beat expecations by nearly 30% but reduced 2023E sales guidance. However, the company’s AI server business is expected to take market share and its EV business is developing.
- Asustek management provided some clarity on when AI PCs might turn from dream into reality — 3Q24E is when the company believes they will contribute significantly to sales volume.
- Himax reported some improvement in demand from China beleaguered automotive industry and said it expects its dominant global market position for automotive display drivers to continue.
Ford Motor Company: Does It Have Any Kind Of Competitive Edge In This EV Wave? – Key Drivers
- Ford Motor delivered an all-around beat in the previous quarter.
- With over $47 billion in liquidity at the end of the quarter, Ford Motor has sufficient funds for future investments.
- We give Ford Motor Company a ‘Hold’ rating with a revised target price.
Mondelez International Inc.: Why They Are Called the Titans of the Snack World! – Key Drivers
- Mondelez International managed to surpass the revenue expectations as well as the earnings expectations of Wall Street.
- The company managed double-digit organic net revenue growth across each area, good pricing execution, decent profit dollar growth, and carried out considerable brand investments.
- We give Mondelez International a ‘Hold’ rating with a revised target price.
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