Daily Brief Equity Bottom-Up: Freee: New Invoicing System Helps Onboard Corporate Clients Though Losses Widen and more

• Freee KK (4478 JP) reported 2QFY06/2024 results today. 2Q revenue increased 35.1% YoY, however, both revenue and operating losses fell below consensus estimates.
• As expected, upfront investment in selling and marketing and personnel expenses prior to the new invoicing system led to an increase in operating losses.
• However, these investments have helped the company acquire a large no. of corporate paying users and we expect losses to decline going forward.

• Stylam Industries (SYIL IN) reported its best-ever EBITDA margin of 22.3% Vs 16.8% due to a raw material price decline. Revenues continued to remain soft, with growth of -8% YoY.
• The company completed its brownfield expansion to increase the plant capacity by 40% and is now embarking on a capacity expansion of 200 crores in FY25, effectively doubling its revenues. 
• Stylam Industries (SYIL IN) trades at 22x/19x FY24e/25e, with a potential for doubling of revenues over the next 3-5 years.

Key points (machine generated)

• The Krane Shares California Carbon Allowance Strategy ETF (KCCA) is recommended for investment due to increasing demand and shrinking supply of California Carbon Allowances (CCA).
• The demand for CCAs is growing as carbon emission restrictions in California become stricter, while the supply is decreasing due to a decreasing supply bank and auction schedule.
• CCAs have no substitutes, making it necessary for polluters to buy them to avoid fines if they cannot reduce carbon emissions. 

This article is sourced from an online content aggregator through publicly available sources and is displayed below for general informational purposes only. This article was originally published 3 months ago on Value Investors Club.

• We screen our coverage universe for earnings disappointments, EPS downgrades, and management narratives to identify fundamental shorts.
• Stocks in focus include SBI Cards & Payment Services (SBICARD IN) , Pvr Inox (PVRINOX IN), and Escorts Kubota Limited (ESCORTS IN). 
• Credit Cost for SBI is expected to remain elevated, PVR management seems to be misreading consumer preferences, and Macro uncertainties cloud ESCORTS.

• The first two wells of the Wassana drilling programme have exceeded the company’s expectations with production from the field now over 4,000 bbl/d.
• With a third well expected to boost production further in the next few days, production from the field could be higher than the target of 4.5 mbbl/d.
• The company has decided to extend the current drilling programme at Wassana by adding two wells (from 3 to 5).

Key points (machine generated)

• Clarus’s non-ESG portfolio consists of reputable outdoor brands such as Black Diamond, Pieps, Sierra Bullets, Barnes Bullets, and SKINourishment.
• Their ESG portfolio includes brands like Industry West, Snow Peak, Royal Robbins, Stonewear, and Hummingbird, which focus on sustainable and environmentally friendly products.
• With Warren Kanders’s ownership and track record, the recent underperformance of Clarus’s stock is deemed unacceptable, but the inclusion of reputable outdoor brands and the commitment to sustainability provide potential for stock price appreciation.

This article is sourced from an online content aggregator through publicly available sources and is displayed below for general informational purposes only. This article was originally published 3 months ago on Value Investors Club.

Key points (machine generated)

• Daktronics Inc has improved its financial profile through operational upgrades and a recapitalization.
• As the industry standard in large screens and a market leader in scoreboards and programmable display solutions, Daktronics is in a strong position to benefit from increased adoption and upgrade cycles.
• Despite a recent stock price increase, investing in Daktronics is currently seen as very attractive, with potential for over 100% upside in the next few quarters.

This article is sourced from an online content aggregator through publicly available sources and is displayed below for general informational purposes only. This article was originally published 3 months ago on Value Investors Club.

• Goldwin has had a remarkable run of record sales and profits, a beneficiary of the continuing growth in the outdoor market as well as its own retail strategy. 
• Although much of its success has come from The North Face, Goldwin is determined to become a more diversified – and global – sports business.
• When we first recommended the stock it was around ¥5,000 and rose to a peak of ¥12,600 but is now about ¥9,000. Will it grow again? We think so.

In its post-Indaba release of 13 February, KEFI announced that the multi-party, subsidiary-level financing of its Tulu Kapi gold project in Ethiopia is now advancing on the back of Ethiopian federal government commitments finally received in October 2023. As a result, the lead lender quickly processed its approval in December 2023 and now all other stakeholders are triggering their respective flow-on processes. At the same time, the Federal Government of Ethiopia has confirmed that its equity capital investment has been fully documented, committed and already partly invested, while the contractors to the project have reaffirmed their intention and readiness to enter into the already drafted agreements to enable full project launch in H124 (as previously indicated by KEFI).

The Diverse Income Trust’s (DIVI’s) managers Gervais Williams and Martin Turner focus on generating a dividend income stream that is more resilient and has the potential to grow faster than those of the trust’s peers. They believe that over time this strategy should lead to superior capital appreciation as well as income growth. Since launch in 2011, DIVI’s dividend has compounded at an average annual rate of around 6%. UK stocks have been out of favour with global investors, who now make up around two-thirds of the UK shareholder base compared with 17% in 1994. As a result, the UK market looks very attractively valued in both absolute and relative terms, so there may be considerable upside potential from an improvement in sentiment towards UK stocks.