Daily Brief Equity Bottom-Up: Go Airlines (India) Limited- What’s at Stake? and more

• Go Air Limited (GO IN)‘s resistance to put its operational woes aside, has come to an end as the company has filed for insolvency.
• In our previous IPO insight, Go Air IPO- In Search Of Smooth Landing we had highlighted several issues that were haunting the company, including the Pratt and Whitney trouble.
• Now that the company has filed for insolvency, the search of smooth landing extends to the shareholders and the lenders.

• The sharp rebound of Advanced Micro Devices, Inc. (NASDAQ:AMD) over the recent months came to a sudden halt after market participants were once again surprised by the deteriorating outlook for the company.
• Prompted by the bear market rally in equities, AMD’s stock has almost doubled in a matter of just a couple of months from October of last year to March 2023.
• While everyone was cheering the new wave of AI-driven demand, the quarterly report from earlier this week is a warning that should not be ignored.

• Prodia booked a softer set of numbers in 1Q2023 but reflected a higher COVID base plus 1Q2023 was impacted by the fasting month but the testing mix was positive.
• The company will significantly increase capex this year with more outlet expansion and more investment into its digital business, which is becoming an increasingly important growth driver. 
• Prodia (PRDA IJ) stands out as the unique diagnostic leader in Indonesia,  which trades at a significant discount to both local healthcare players and Indian diagnostic peers.

• For 2022, SK Biopharmaceuticals Co Ltd (326030 KS) recorded Xcopri U.S. revenue of KRW169B, up 116% YoY. This year, the company expects to secure Xcopri sales of ~KRW300B in U.S.
• Thus far, Xcopri has been launched in 15 countries in Europe. The company expects to launched Xcopri in eight more countries in Europe this year.
• By 2025, SKBP plans to submit sNDA for cenobamate in primary generalized tonic-clonic (PGTC) seizures and pediatric patients, and carisbamate for orphan pediatric epilepsy.

• Nihon M&A reported 4QFY03/2023 results last week. Revenue increased 86.7% YoY to ¥11.4bn (vs consensus ¥10.0bn) while OP for the quarter more than quadrupled to ¥4.2bn (vs consensus ¥4.9bn).
• Full-Year FY03/2023 revenue of ¥41.3bn and OP of ¥15.3bn were slightly below guidance of ¥42bn and ¥18bn respectively and the company has put aside its medium-term growth plan by 2years.
• We continue to prefer Baycurrent over Nihon M&A Center (2127 JP) in the Japanese consulting/M&A space as Baycurrent continues to make strong progress.

• Q1’23 revenues of NT$95.7 billion, down 11.6% sequentially and 33% year-over-year.
• Q2’23 revenues sequentially flat at the midpoint. Longer replacement cycles and growing refurbishment market will see 2023 unit shipments decline a further ~10% YoY.
• Strength in Smart Edge products (TV, Tablet, Telco, Automotive) continues to offset weakness in smartphones

• It was a successful Q4 for Cleveland-Cliffs as the company managed an all-around beat with lower-than-expected losses.
• Cleveland-Cliffs supplies over 7 million tons of steel to the automotive industry, including 5 million tons of direct sales and over 2 million tons of indirect sales.
• With typical volumes of 5 million tons per year, the company expects its full-year 2023 carbon flat-rolled steel selling price to increase to $1,415 per net ton, a $115 per net ton increase year over year.

• RemeGen’s C1Q23 top line came in as 31% of our C1H23 estimate while IFRS operating loss came in as 55%. 
• C1Q23 gross margin exceeded our C1H23 estimate by 12ppt, mainly due to restraining in shipment
• We cut our product sales estimates and raise WACC by 1ppt to reflect concentrated risk, leading to TP reduction from US$64 to US$46.

• This morning, Trigon Metals Inc. (TM:TSXV), announced additional high-grade drill results from its Kombat Mine in Namibia.
• The Company reported drill results from 12 holes totalling 996m at the Kavango West area, 150m west of the Main Kavango Pit (Figure 1).
• These results build upon the already reported high-grade copper drill results from the Main Kavango Pit and East 400 area (150m east of the Kavango Pit), highlighting the strong mineralization across the Kombat trend.

Epwin’s FY22 results highlight both the challenging trading environment but also management’s ability to successfully handle inflationary pressures. Well-established long-term growth trends imply that Epwin is well placed to leverage off increasing demand for its energy efficient and low-maintenance building products. The acquisition of Poly-Pure and Mayfield underscore the company’s ambition and ability to self-finance accretive expansion. We anticipate further deals in the foreseeable future. Epwin trades on a P/E of 8.3x for FY23e versus a long-term average of 10.9x, with upside as and when margins recover further.