In today’s briefing:
- KLAC. Bouncing Along The Bottom
- M3: Margins Continue to Dip and Likely to Miss Full Year Guidance
- CIMC Enric (3899 HK): Surge in Overall New Order Momentum
- China Consumption Weekly (30 Oct 2023): Alibaba, Trip.com, New Oriental, Weibo
- Aier Eye Hospital (300015.CH) 23Q3 – While Enjoy the Rebound, Recognize the Endgame Behind the Story
- Fresenius Medical Care: Evaluating The New Strategic Plan & The Threat From Novo Nordisk
- Monthly Container Shipping Tracker | Rebound in NAM Volume Could Be Inflection Point (October 2023)
- HDFCL Vs SBIL: The Low Down on the Best Life Insurance Stocks In India Right Now (+SBIL 2Q24 Review)
KLAC. Bouncing Along The Bottom
- Q323 revenues of $2.40 billion, at the upper end of the guidance range, up 2% QoQ but down 12.5% YoY
- Current quarter revenue forecast of $2.45 billion, essentially flat sequentially
- Services revenue on track for ~8% YoY growth despite overall revenues tracking to an 8.6% YoY decline..
M3: Margins Continue to Dip and Likely to Miss Full Year Guidance
- M3 Inc (2413 JP) reported 2QFY03/2023 results on Friday. Revenues increased 3.0YoY while OP decreased 7.1% YoY, both revenues and OP fell below consensus estimates by 0.2% and 4.7% respectively.
- Medical Platform’s earnings continue to deteriorate while we are yet to see a meaningful improvement in overseas segment’s earnings to drive the next phase of growth for m3.
- Given continued decrease in profits, we think the company will struggle to meet its full-year guidance suggesting there is further downside to m3’s share price.
CIMC Enric (3899 HK): Surge in Overall New Order Momentum
- CIMC Enric Holdings (3899 HK) has a solid 3Q23 with excellent new order pick-up, surging by 52.8% YoY on the back of strengths in clean energy and liquid food segments.
- Hydrogen energy revenue is on target to reach Rmb700m in FY23. Meanwhile, management revealed that there is a slight gross margin expansion so far this year.
- With order backlog rising 27.6% YoY to Rmb22.2bn at end-9M23, earnings outlook is well protected. Its net cash position is another credit, making its premium multiples justified.
China Consumption Weekly (30 Oct 2023): Alibaba, Trip.com, New Oriental, Weibo
- JD is in fact competing with a broadcaster on Alibaba’s app, but not Alibaba itself.
- Trip.com’s domestic orders during National Holidays were double last year.
- New Oriental’s revenue increased strongly with new learning centers in 1Q24.
Aier Eye Hospital (300015.CH) 23Q3 – While Enjoy the Rebound, Recognize the Endgame Behind the Story
- Aier’s 23Q3 profit growth exceeded expectations. Considering the low base in 22Q4, Aier’s 23Q4 performance could show an obvious rebound. Then, the 2023 full-year results would be more certain.
- Aier has a considerable amount of “off-balance-sheet profits” that can be incorporated into statements in the future. So, although Aier’s growth rate has decreased, it wouldn’t collapse in short term.
- More hidden problems would be exposed in the process of transferring off-balance sheet profits to the on-balance sheet. All the repurchased shares should be cancelled to reduce Aier’s registered capital.
Fresenius Medical Care: Evaluating The New Strategic Plan & The Threat From Novo Nordisk
- FMC has put in place a new strategic plan designed to improve operational performance, thereby unlocking value to achieve an operating profit margin of 10-14% by 2025
- FMC has recently faced a potential threat to its dominant market position in renal care: Novo Nordisk. What’s Novo’s next move?
- As the Company’s overall financial and operational performance improve, combined with the market’s realization that FMC is not going anywhere, we conclude that the stock should re-rate
Monthly Container Shipping Tracker | Rebound in NAM Volume Could Be Inflection Point (October 2023)
- Price momentum stagnant, but could North American volume surge be an inflection point?
- Fuel price hasn’t risen since outbreak of violence in mideast, but no longer a tailwind, either
- Look to Maersk results on November 3 for guidance, US inventory de-stocking commentary
HDFCL Vs SBIL: The Low Down on the Best Life Insurance Stocks In India Right Now (+SBIL 2Q24 Review)
- We make two arguments in this note (A) Why you should invest in the Indian Life Insurance Sector right now; (B) Why you should start with SBILIFE over HDFCLIFE
- Answers (A) The train has left-the-station on the long runway of double-digit growth in the sector; (B) The sector valuations are very reasonable due to short-term pressures, SBIL especially so.
- We compare SBILIFE and HDFCL’s valuations, and narrow the focus on to One Crucial Factor showcasing the fundamental strength of these businesses.
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