In today’s briefing:
- Huijin’s Increase in Shareholdings of the Big4 May Signal Temporary Bottoming of the Stocks
- Who Is Lina Khan? Why Should Investors Bother?
- Tesla Cuts Prices of Top Models After Deliveries Fall
- High Conviction Shift: Another Upbeat Quarter; Wipes Off Concerns Over an Earnings Slowdown
- GoTo Gojek Tokopedia (GOTO IJ) – Building Positive Resonance with New Initiatives
- Low Cost Apparel Sales Keep Rising: Shimamura Aims for ¥800 Billion
- Saizeriya (7581 JP): Japanese Company + Fast Casual Italian Food = China Growth Story?
- Suzuken Co Ltd (9987 JP): Better-Than-Expected Q1FY24 Result; Full Year Guidance Reiterated
- Plug Power Inc.: Unveiling Powerful Partnerships Yielding Extraordinary Results! – Major Drivers
- RingCentral Inc: How $330 Million ARR is Changing the UCaaS + CCaaS Game! – Major Drivers
Huijin’s Increase in Shareholdings of the Big4 May Signal Temporary Bottoming of the Stocks
- Central Huijin, the sovereign wealth fund, increased their shareholding of the Big 4 banks in China on 11 October 2023
- Contrary to their last similar action, Huijin will increase its stakes in these banks over the next 6 months period, providing stabilizing force of the stock prices
- Worries on property sector, LGFV and the overall health of the economy have significantly depressed banking stocks.
Who Is Lina Khan? Why Should Investors Bother?
- If you’re an investor in any firm with some form of dominance in US markets, then you need to know who Ms Lina Khan is.
- Corporate misbehavior is a topic of her interest. She shows zero tolerance towards large corporations who wield outsized market power.
- FTC along with 17 US states filed a lawsuit against Amazon for illegally maintaining monopoly power. How will Amazon be impacted?
Tesla Cuts Prices of Top Models After Deliveries Fall
- Tesla Inc. will have to sell a record number of cars in the fourth quarter to reach its goal for the year after third-quarter deliveries declined.
- The electric-car maker produced 430,488 vehicles in the third quarter, down 10% from the second, and delivered 435,059 units, down 6.7%, Tesla said Monday.
- The drop in deliveries resulted from production stoppages at its factory in Fremont, California. Tesla CEO Elon Musk said in July that production facilities would be closed at various times in the third quarter to perform plant upgrades.
High Conviction Shift: Another Upbeat Quarter; Wipes Off Concerns Over an Earnings Slowdown
- Shift Inc (3697 JP) reported 4Q and full-year FY08/2023 results today. 4Q revenue increased 38.2% YoY while OP more than doubled during the quarter. Both revenue and OP beat consensus estimates.
- Full-Year revenues and OP increased 35.7% and 67.4% respectively beating consensus estimates by 1.2% and 67.4% respectively. Both revenue and OP were above the company’s own guidance.
- Shift’s share price has dropped by about 17% since August as market became concerned over the growth prospects, however, share price has started to move up.
GoTo Gojek Tokopedia (GOTO IJ) – Building Positive Resonance with New Initiatives
- GoTo Gojek Tokopedia may see a stabilisation of the declines in GTV that it has experienced over the last 2Qs, with some of the platform’s new initiatives gaining traction.
- The closure of TikTok Shop should be positive at the margin for Tokopedia but it has also rolled back its platform fee, which has had a positive impact on growth.
- New initiatives include GoRide Transit, GoCorp, GoTo PLUS, and the GoPay app, with the latter seeing strong take-up. 3Q2023 results should reveal more details on initiatives. All-time low seems unjustified.
Low Cost Apparel Sales Keep Rising: Shimamura Aims for ¥800 Billion
- Price consciousness remains high among most Japanese consumers at present, a boost to low-cost apparel retailers.
- Shimamura, which has posted three straight years of growth But when price is the main driver, competition from the likes of Shein and Temu becomes a growing problem.
- So even Shimamura is trying to add value through branding, collaborations and Shein-like supply chains and the outlook is promising, suggesting significant upward gains for the stock.
Saizeriya (7581 JP): Japanese Company + Fast Casual Italian Food = China Growth Story?
- Saizeriya (7581 JP) is a Japanese restaurant chain of fast casual Italian food, with currently the majority of operating profit and growth coming from China.
- The Asia segment, which is primarily restaurants in China, nearly doubled operating profit in FY23 (year ending August) from pre-COVID FY19.
- The company is trading at 27x FY24E PE, with more than 80% expected growth in operating profit in FY24.
Suzuken Co Ltd (9987 JP): Better-Than-Expected Q1FY24 Result; Full Year Guidance Reiterated
- Suzuken Co Ltd (9987 JP) reported better-than-expected Q1FY24 result, due to an increase in specialty drug distribution contracts and a larger than expected contribution from products related to COVID-19.
- In Q1FY24, revenue increased 4% to ¥573.6B, driven by 4% YoY growth in pharmaceutical distribution business, due to increased sales of new drugs such as specialty drugs and COVID-19 therapeutics.
- The company guided for FY24 revenue of ¥2,231.9B, down 4% YoY. Operating profit is expected to decline 48% YoY to ¥17B. Net profit is guided at ¥13B, down 36% YoY.
Plug Power Inc.: Unveiling Powerful Partnerships Yielding Extraordinary Results! – Major Drivers
- Plug Power Inc. delivered a mixed set of results for the quarter, with revenues above the analyst consensus.
- Plug’s second quarter results show significant growth in a number of its recently introduced goods, especially in its cryogenic industry, which generated $69 million in revenue in the quarter, more than a threefold increase over the same period last year.
- In this report, we have carried out a fundamental analysis of the historical financial statements of the company.
RingCentral Inc: How $330 Million ARR is Changing the UCaaS + CCaaS Game! – Major Drivers
- RingCentral Inc. managed to surpass the revenue expectations as well as the earnings expectations of Wall Street.
- The profit increase also resulted in another quarter of significant free cash flow.
- Revenue from subscriptions increased 11% year over year to $514 million.
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