In today’s briefing:
- Aster DM Healthcare’s Special Dividend & Restructuring
- TSMC (2330.TT; TSM.US): US$6.6bn from US CHIPS Act; the Earthquake Impact and the 2nd Japanese Fab.
- Gland Pharma Ltd (GLAND IN): Business Recovery Seems To Be Overlooked by Mr. Market
- Beaten Down Semiconductor Could be AI Play
- Memory Monitor: Nanya’s Results to Provide Latest Color on DRAM Post Earthquake; Short Int Rising
- Orion Holdings: Updated NAV, Higher Dividend Yield, and Exhuma Catalyst
- Ace Hardware Indonesia (ACES IJ) – New Product Cycles and Formats
- Flower Foods: Highlighting the 4 Central Pillars of Its Growth Dynamics! – Major Drivers
- Freshpet Inc.: Initiation Of Coverage – Healthy Expansion in North America & Europe And A Deep Analysis Of Its Business Strategy! – Major Drivers
- Amaero Internaitonal (ASX:3DA) RaaS Interview Transcript 8 April 2024
Aster DM Healthcare’s Special Dividend & Restructuring
- Aster DM Healthcare Ltd (ASTERDM IN) completes a significant restructuring, separating its India and GCC operations, with a consortium led by Fajr Capital acquiring a 65% stake in Aster GCC.
- The substantial cash consideration received provides financial flexibility for further investments, debt reduction, or strategic opportunities.
- Explore the implications of Aster’s restructuring on shareholder value, with a special dividend of INR 110 to INR 120 per share planned.
TSMC (2330.TT; TSM.US): US$6.6bn from US CHIPS Act; the Earthquake Impact and the 2nd Japanese Fab.
- Today, the U.S. Department of Commerce and TSMC Arizona have signed a non-binding preliminary memorandum of terms for US$6.6 billion in direct funding under the CHIPS and Science Act.
- We estimate the impact of the earthquake on April 3rd should result in a loss of within 0.5% in 2Q24F, which means it should not affect our 2Q24F revenue expectations.
- TSMC’s 1st Japan Fab is expected to commence pilot production in February, and the 2nd Fab is projected to begin production of N6/N7 in 2027F.
Gland Pharma Ltd (GLAND IN): Business Recovery Seems To Be Overlooked by Mr. Market
- Gland Pharma Ltd (GLAND IN) reported mid-single-digit revenue and EPS growth in its base business (ex-Cenexi) during 9M FY24. The company is confident to end FY24 on a high note.
- Gland Pharma starts FY25 on a strong note with gaining U.S. approval for eribulin mesylate injection, used for breast cancer that has spread to other parts of the body.
- Over the next 12–15 months, Gland Pharma is poised for enhanced geographical foot-print in Europe through Cenexi. The addressable CDMO business opportunity is estimated at €4B.
Beaten Down Semiconductor Could be AI Play
- Maxlinear has probably been among this semiconductor cycle’s worst companies, if not the worst.
- I think that it might be time to give them a fresh look.
- Maxlinear was founded in 2003 in Carlsbad, California, by eight engineers. Today, Kishore Seendripu (CEO/Chairmen) and Curtis Ling (CTO) are still founders and work at the company. Maxlinear is a fabless company focused on mixed-signal products in the semiconductor industry.
Memory Monitor: Nanya’s Results to Provide Latest Color on DRAM Post Earthquake; Short Int Rising
- DRAM producer Nanya Tech will report its 1Q24E results on April 10th.
- While Micron has said it is evaluating the impact of the Taiwan earthquake on its operations and has halted price discussions with clients, Nanya could provide latest DRAM outlook color.
- Short interest has spiked ahead of Nanya’s results; We note that the company has a large revenue and margin rebound it needs to deliver on to meet 2024E consensus.
Orion Holdings: Updated NAV, Higher Dividend Yield, and Exhuma Catalyst
- Our NAV valuation suggests implied market cap of 1 trillion won or NAV per share of 15,983 won which is 11% higher than current price.
- Orion Holdings has attractive dividend yields and payouts. The company’s dividend yield increased from 4.1% in 2021 to 4.6% in 2022 and 5.1% in 2023.
- The recent phenomenal performance of the movie Exhuma has resulted in a long-awaited revived positive sentiment on Showbox (which is 57.5% owned by Orion Holdings).
Ace Hardware Indonesia (ACES IJ) – New Product Cycles and Formats
- Ace Hardware Indonesia (ACES IJ) results revealed a positive finish to 2023 and an optimistic outlook for 2024, with new store rollout and shorter promotion periods set to boost sales.
- ACES continues to roll out its new format stores and renovate existing stores with a positive result, with 20 stores expected to be renovated in 2024 and 15-20 new stores,
- The company has seen strong momentum in 2M2024 with +10% SSSG and remains confident about the outlook, with positive guidance for growth. Valuations remain attractive versus history.
Flower Foods: Highlighting the 4 Central Pillars of Its Growth Dynamics! – Major Drivers
- Flowers Foods continued to show resilience in a challenging consumer environment in the fourth quarter and full year of 2023.
- The company’s brands gained unit and dollar share for the first time since Q1 2022.
- Dave’s Killer Bread was particularly noteworthy, reaching $1 billion in retail sales and growing unit volume by 10%.
Freshpet Inc.: Initiation Of Coverage – Healthy Expansion in North America & Europe And A Deep Analysis Of Its Business Strategy! – Major Drivers
- Freshpet Inc. delivered robust performance for the fiscal year 2023 and the fourth quarter, notching a significant growth in net sales and improving profitability.
- The management believes the pet food company reached an inflection point in its journey towards becoming a profitable business in the fresh/frozen segment of the pet food market.
- Baptista Research looks to evaluate the different factors that could influence the company’s price in the near future and attempts to carry out an independent valuation of the company using a Discounted Cash Flow (DCF) methodology.
Amaero Internaitonal (ASX:3DA) RaaS Interview Transcript 8 April 2024
- Interview discusses the offtake agreement and opportunity to expand beyond the current arrangement, the $20m capital raised and outlook for future funding needs, update on strategic equity/debt in the US and milestones to expect over the next six months.
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