In today’s briefing:
- Medley (4480 JP): 2023 Started on Strong Note; Full-Year Guidance Reaffirmed; Mid-Term Plan Revised
- Meilan Airport (357 HK): Positive on The Only China Airport Trading Below Book Value
- Taiwan Tech Weekly: Micron Results Key for Nanya; Hon Hai New 52-Week High; AI Leaders Basket
- Alphamab Co Ltd (9966.HK) – Valuation Is Already Low, but Many Issues Hinder the Bullish View
- Yamaha Motors (7272) | Choppy Waters Ahead
- EDG: First Batch of Drill Results Don’t Disappoint
- Takamiya Co., Ltd (2445 JP) – 23/3 Full Year Follow-Up
- Monster Beverage Corporation: Still A GARP Opportunity
- PI: Red Tagged, Initiating with Sell
- Update Note – Steelcase, Inc. (SCS)
Medley (4480 JP): 2023 Started on Strong Note; Full-Year Guidance Reaffirmed; Mid-Term Plan Revised
- Medley (4480 JP) started 2023 on a strong note, with 1Q23 revenue increasing 56% YoY to ¥4.4B, mainly driven by 83% YoY revenue growth in medical platform business.
- Despite better-than-usual progress in Q1 result, Medley did not change 2023 guidance. However, the company sees a strong possibility of surpassing 2023 profit targets at the EBITDA level and below.
- Medley has revised its mid-term target and brough forward the timeline for achievement of the goals by one year. The company now aims to achieve revenue of ¥23B in 2024.
Meilan Airport (357 HK): Positive on The Only China Airport Trading Below Book Value
- A slew of bad news from weak China consumption, depreciating RMB to negative progress in an arbitration sent Meilan Airport stock down to below book value.
- Yet when it comes to the fundamental of the company itself, we believe concerns are over-blown and very much priced in.
- Meilan Airport is the most under-valued major airport in China airport space in our view. Patience will pay off.
Taiwan Tech Weekly: Micron Results Key for Nanya; Hon Hai New 52-Week High; AI Leaders Basket
- Micron results this week; will give a key readthrough for Nanya Tech. The latest memory chip pricing data implies it was another tough quarter.
- Hon Hai’s break out continues, with the shares achieving a new 52-week high. The company’s new JV with automaker Stellantis may finally be winning over naysayers.
- AI Leaders Basket: TSMC and ASML have substantially lagged Nvidia and could serve as AI-exposure alternatives to chasing Nvidia’s rally.
Alphamab Co Ltd (9966.HK) – Valuation Is Already Low, but Many Issues Hinder the Bullish View
- KN046’s commercialization prospects is limited if it doesn’t demonstrate better results than PD-1 in head-to-head trial. The value of KN046 still lies in its potential to treat PDAC not sqNSCLC.
- KN026 is difficult to become a blockbuster variety. JSKN003 may not have good opportunity in front of DS-8201. Many investors are unhappy with Alphamab’s credibility and information disclosure quality.
- Alphamab’s valuation is already at low level. However, considering the current pessimistic sentiment towards biotech in HKEX, investors are advised to remain cautious, and just short-term trade is recommended.
Yamaha Motors (7272) | Choppy Waters Ahead
- Yamaha Motors had blow-out 1Q results. The 20% share price rally since then suggests much of the good news is in the price
- We are concerned that deteriorating macro-economic conditions in the US due to higher interest rates could derail demand for marine engines and boats
- The stock price of US peer, Brunswick has already started to correct. Yamaha now trades at a premium valuation
EDG: First Batch of Drill Results Don’t Disappoint
- 2,100m of the 15,000m 2023 program have been completed to-date.
- This morning, Endurance Gold Corporation (EDG:TSXV) provided an update on the ongoing exploration program at its Reliance Gold Project and assay results for three drill holes completed at the Imperial and Diplomat target areas.
- Eight holes have been completed over 2,100m of the ongoing 15,000m program which commenced in May.
Takamiya Co., Ltd (2445 JP) – 23/3 Full Year Follow-Up
- FY23/3 full-year results were announced in the last month.
- In its consolidated earnings, Operating profit rose 33.9%, ¥2,253 mn, on a 5.3% rise in sales, to ¥41,894 mn. Ordinary profit was up 22.9%, to ¥2,400 mn, and net profit rose 51.3%, to ¥1,460mn.
- Compared to the company’s forecast at the time of the 3Q results announcement, net sales fell short by about 7%, but operating profit and net profit were in line.
Monster Beverage Corporation: Still A GARP Opportunity
- Qualitative factors and key metrics suggest that Monster Beverage Corporation presents a GARP opportunity.
- The company is growing at scale and holds down a significant part of the energy drinks market.
- The generational consumer shift into stimulated drinks lends researchers much scope to delve into the prospects of Monster Beverage Corporation (NASDAQ:MNST).
PI: Red Tagged, Initiating with Sell
- Impinj was a late beneficiary to the COVID-19 pandemic and could now be on the cusp of a correction in its revenue growth trajectory
- The developer of radio frequency identification (“RFID”) chips used in RFID tags benefited when companies were facing supply chain issues resulting in ordering much more inventory than necessary
- Consensus estimates are for another 36 percent increase in revenue in 2023 even though Impinj is heavily dependent on retail apparel
Update Note – Steelcase, Inc. (SCS)
- This note follows up on the Steelcase 1QFY24 earnings release, management’s earnings conference call, and our earnings analysis note from June 22.
- Herein, we refresh our estimates for Steelcase.
- Steelcase has been tied to the fortunes of commercial/contract furniture, where the company is a global leader.
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