Daily Brief Equity Bottom-Up: Delfi Ltd (DELFI SP) – Sweeter Times Ahead? and more

• Delfi Ltd (DELFI SP) saw some impact from the weaker IDR and higher cocoa prices in 1H2024 but prospects for 2H2024 look more promising with less expected disruption.
• The company continues to roll out new distribution across modern trade independent and general trade as well as new variants for existing best-selling brands such as Silver Queen chocolate.
• The company remains confident that the cocoa price will decline from current levels although it may remain higher than historic levels. Valuations remain attractive. 

• Despite a share price correction this month, JD.com (9618 HK) remains firmly amid an earnings upgrade cycle driven by improved profitability expectations.
• Following significant share price volatility over the past 2 months, JD.com’s near-term momentum indicators currently display bullish signals.
• JD.com still trades at more than one standard deviation below its 5-year historic average forward PE ratio, and near the lowest level it has ever been.

• Haemonetics Corporation’s first quarter fiscal year 2025 results reveal mixed outcomes in a challenging market scenario.
• The company reported a revenue of $336 million, which represents an 8% increase on a reported basis and a 3% organic growth.
• Despite the revenue growth, the adjusted earnings per diluted share decreased by 3% to $1.02, reflecting some strain from operational challenges and the dynamic market conditions.

• nCino has posted its financial results for the second quarter of fiscal year 2025, delivering performance that exceeded initial forecasts in several key areas, including subscription revenues and non-GAAP operating income.
• The company has observed a notable improvement in the financial services industry in the United States compared to the previous year.
• nCino’s growth in the U.S. has been robust, particularly within its existing customer base which seems keen on leveraging the company’s expanded platform capabilities.

• The Chemours Company faced various challenges in the second quarter of 2024, yet demonstrated resilience and adaptability in managing these issues.
• Key points from the earnings call include the impact of a severe drought on their titanium dioxide production at Altamira, Mexico, which led to unplanned downtime and an $8 million cost for the quarter.
• Despite this, Chemours was proactive in addressing the immediate needs of affected employees and the community while optimizing production to meet customer demands, achieving a 16% increase in volumes compared to the first quarter.

• HK-Listed Apparel & Footwear Screener: Right Stocks Listed in the Wrong Market – Attractive Yield & Rapid Expansion Outside China – Sep 2024  helped us screen out great names.
• JNBY Design Ltd (3306 HK), an apparel retailer trading at 9.2x FY24 with a ~10% yield and a long-term track record of >34% 10 Yr-average ROCEs, is one such name. 
• Even with modest single-digit growth guidance, we see a growing yield and a great cash buffer (20% of the market cap), and dividends are sustainable. 

• PBF Energy’s second quarter 2024 earnings presentation reveals a mixed financial landscape marked by challenges and strategic achievements.
• Despite experiencing weaker-than-expected earnings, the company successfully maintained a robust cash position and further advanced its operational goals.
• The quarter faced unusual market conditions where RIN-adjusted crack spreads saw a significant decrease, contributing to tighter margins across the board.

• Nexstar Media Group’s second quarter of 2024 delivered robust overall performance as the company continued to showcase its ability to navigate challenging market dynamics effectively.
• As discussed during the recent earnings call, Nexstar achieved record total net revenue and distribution revenue, underscoring its strategic success in optimizing revenue streams amid continued industry shifts.
• Particularly noteworthy was the substantial growth in adjusted EBITDA and adjusted free cash flow, which highlights disciplined execution across operational facets.

• Boat OEM industry facing drop in demand post high sales period due to Covid
• MasterCraft has strong position in ski/wake category, a niche market
• Despite challenges from tepid retail demand and high inventory levels, MasterCraft could benefit from ski/wake category strength in long term

This content is sourced through publicly available sources and has been machine generated. Information displayed is for general informational purposes only. This article was originally published 3 months ago on Value Investors Club.

• IRDM started 2024 with changes to its reporting metrics and that trend continued when with Q3. 
• When IRDM reported third quarter 2024 results, the Company disclosed it would experience a decline in reported IOT subscriber metrics.   
• The change subscriber count would not impact IRDM’s revenue due to contract pricing. It could create negative headwind in 2025