In today’s briefing:
- Ferrari: Classic Fisher Company, Almost Perfect Score on The Fisher 15 Framework
- Hoya (7741) | A Visionary Company with a Blurry Future
- Nissin Foods’ FQ4 Earnings: A Possible 59% Operating Profit Surprise?
- Alfresa Holdings (2784 JP): FY23 Result Is Expected to Exceed Previous Forecast
- Globalwafers Q1’23 Revenues up 1% QoQ, 14.2% YoY
- Danaher Corporation: This Diagnostics Innovator Continues To Go Strong – Key Drivers
- [Coupang Inc. (CPNG US) Earnings Preview]: Market Share Solid Given Limited Competitive Threat
- Shenzhen Mindray Bio-Medical Electronics (300760.CH) – This Year’s Challenge Is Not over Yet
- Biogen Inc.: The Lecanemab Progress On The Alzheimer’s Front & Other Drivers
- General Electric Company: Acquisition of Baker Hughes’ Nexus Controls & Other Drivers
Ferrari: Classic Fisher Company, Almost Perfect Score on The Fisher 15 Framework
- Ferrari NV (RACE IM) has been a steady compounder of earnings growing operating profits at 14% CAGR and sales volumes at 6% CAGR over the last 20 years.
- The company has expanded EBITDA margins from 25% in 2014 to 35% in 2022 and is expected to increase by another 300 bps in FY23 to 38%, as per guidance.
- At 41x/35x FY23e/FY24e, we conceded it is a tad expensive, but we would look at investing in this company over the long term.
Hoya (7741) | A Visionary Company with a Blurry Future
- Hoya has an impressive business model that results in high Returns on Invested Capital
- Hoya reported strong Q4 results but there is little for investors to get excited about in the outlook
- We see a lack of catalysts and an expensive valuation as working against the stock in the short term
Nissin Foods’ FQ4 Earnings: A Possible 59% Operating Profit Surprise?
- Nissin Foods Holdings (2897 JP) to report FQ4 results on May 10th with ¥158.5bn revenue and ¥8.1bn operating profit expected according to revised Feb 2023 guidance.
- Consensus predicts Nissin Foods’ operating profit to be ¥6.6bn from a revenue of ¥167.8bn, which is lower than the company’s latest annual guidance.
- Meanwhile, a higher FQ4 operating profit of ¥10.5bn is expected based on our analysis, exceeding consensus by 59%.
Alfresa Holdings (2784 JP): FY23 Result Is Expected to Exceed Previous Forecast
- Alfresa Holdings (2784 JP) revised its consolidated performance forecast for FY23. Revenue, operating profit, and net profit forecast have been raised by 3%, 2%, and 21%, respectively.
- This is attributed to greater-than-expected growth in ethical pharmaceuticals market and the company’s recovery from the bidding nomination suspension from medical institutions stemming from a violation of the Antimonopoly Act.
- In March 2023, Alfresa received a cease and desist order and a surcharge payment order from the Japan Fair Trade Commission (FTC) in relation to violation of the Antimonopoly Act.
Globalwafers Q1’23 Revenues up 1% QoQ, 14.2% YoY
- Q1’23 revenues of NT$18.6 billion, up 14.2% YoY and up ~1% QoQ.
- No specific Q2’23 forecast provided but we fully expect a sequential decline and the end of a 13 quarter growth streak
- YTD silicon carbide revenues have already exceeded full year 2022 revenues, albeit coming from a low base.
Danaher Corporation: This Diagnostics Innovator Continues To Go Strong – Key Drivers
- Danaher successfully navigated a dynamic operating environment in this quarter to deliver an all-around beat.
- The strength of its customer base business grew by 6% in this quarter.
- For the quarter, the gross profit margin was 61% and the operating margin was down due to lower COVID volume in its diagnostics and biotechnology businesses.
[Coupang Inc. (CPNG US) Earnings Preview]: Market Share Solid Given Limited Competitive Threat
- We expect CPNG to report C1Q23 top-line and non-GAAP net income 2.0% and 4.8% vs. consensus, respectively.
- AliExpress became S. Korea’s most downloaded app after increasing spending, but product overlap with Coupang is limited, while other S. Korean competitors recorded declining MAU, in our understanding.
- South Korean economic indicators, including CPI and retail data, point towards a recovery. We maintain our BUY rating and US$19 TP.
Shenzhen Mindray Bio-Medical Electronics (300760.CH) – This Year’s Challenge Is Not over Yet
- There’s an obvious declining trend in net profit YoY growth.Considering unsatisfactory growth of MI and IVD in 22H2,if it weren’t for the strong growth of PMLS,Mindray’s overall growth could have been “surprising”.
- The current question is whether IVD and MI segments would have high enough growth to offset the potential performance decline of PMLS segment in post-pandemic era. Problems may emerge afterwards.
- There are still some unresolved technical challenges that constrain the development of Mindray. Without good performance in internationalization, there is no incremental market. Thus no reason to maintain high valuation.
Biogen Inc.: The Lecanemab Progress On The Alzheimer’s Front & Other Drivers
- Biogen had a successful first quarter with an all-around beat.
- The company executed the launch of Leqembi, an immediate transformative product in the Alzheimer’s disease therapeutic area.
- Biogen has been experiencing a lot of competition, making it necessary to think about how to grow the business in the future.
General Electric Company: Acquisition of Baker Hughes’ Nexus Controls & Other Drivers
- GE’s stock has been on a strong upward momentum and delivered an all-around beat in the quarter.
- The top-line momentum was strong, with strong market demand as well as execution driving growth.
- In this report, we have carried out a fundamental analysis of the historical financial statements of the company.
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