In today’s briefing:
- MMG Limited (1208.HK) Rights Issue – 98.18% Taken Up
- Ride-Hailing Operator Chenqi Drops on Hong Kong Debut
- Sam Chun Dang Pharm (000250 KS): Positive Momentum to Continue
- China Healthcare Weekly (July.14) – CXO’s Disputed Business Model, Remegen Shares Plunged, Kelun Bio
- 10x Genomics Inc.: Expansion into the Spatial Genomics Market & Other Major Drivers
- Tianqi Warns of $670 Million-Plus Loss Over Lithium Price Plunge
- Gentex Corporation: How They Are Capitalizing On The Diversification Opportunities & Expanding The Market! – Major Drivers
- Enjin (7370 JP): Full-year FY05/24 flash update
- Endava plc: Focus on Core Modernization For Better AI Integration
- Balchem Corporation: What Are The Challenges Faced In Animal Nutrition & Health? – Major Drivers
MMG Limited (1208.HK) Rights Issue – 98.18% Taken Up
- While there may be still be some overhang once the rights shares start trading, this is a good entry point
- Applications for 6.4 Billion excess rights shares received from 11 applications
- Rights shares will start trading on Tuesday 16th of July
Ride-Hailing Operator Chenqi Drops on Hong Kong Debut
- Chenqi Technology Ltd., operator of the ride-sharing platform OnTime, closed its first trading day in Hong Kong 3.14% below the offering price, after raising $124 million in its initial public offering.
- Chenqi’s shares closed at HK$33.9 ($4.3) each, recovering from a 14% drop during its debut on the Hong Kong Stock Exchange. The company’s market cap stood at HK$6.92 billion.
- Chenqi, also known as Ruqi Mobility, offered more than 30 million shares at HK$35 each in its IPO, raising a net HK$969 million.
Sam Chun Dang Pharm (000250 KS): Positive Momentum to Continue
- Sam Chun Dang Pharm (000250 KS) secured exclusive 10-year contract to supply Eylea biosimilar (SCD411) to nine European countries. The company will receive 55% of gross sales of the product.
- Last month, the company placed 500K shares (~2% of issued capital) to Shinhan Investment Securities to raise KRW71.4B. Proceeds will be utilized to fund the company’s global clinical trial cost.
- The company has started exporting generic glaucoma eye drop to the U.S. and expects to start exporting at least two more generic ophthalmic products in the U.S. this year.
China Healthcare Weekly (July.14) – CXO’s Disputed Business Model, Remegen Shares Plunged, Kelun Bio
- One “unique” feature of China’s CXOs is that they like investment more than drug R&D business, but the investment-driven model will result in “interest-to-conflict”, which actually “crosses the line”.
- RemeGen’s shares plummet last week. In current situation of investors’ lack of confidence/trust in RemeGen, stock price may not have hit bottom yet, so no need to rush to bottom-fish.
- For Kelun Bio, if SKB264 fails to deliver good data, valuation would face the risk of pullback. After the lock-up expiry, there could be opportunity to buy at lower price.
10x Genomics Inc.: Expansion into the Spatial Genomics Market & Other Major Drivers
- 10x Genomics recently disclosed its financial results for the first quarter ended March 31, 2024, showcasing a revenue increase of 5% to $141 million.
- The company’s earnings overview indicates a mixed performance with significant developments in its product offerings that could influence its future market positioning, financial health, and competitive edge.
- Positively, 10x Genomics reported robust growth in its spatial biology segment, primarily fueled by its Visium franchise and the launch of Visium HD.
Tianqi Warns of $670 Million-Plus Loss Over Lithium Price Plunge
- Chinese lithium giant Tianqi Lithium Corp. (002466.SZ -1.01%) is forecasting a net loss exceeding $670 million for the first half of the year as plummeting lithium prices hurt the bottom line of producers of this essential battery raw material.
- Tianqi said Tuesday that it anticipates a significant net loss of between 4.9 billion yuan and 5.5 billion yuan ($674 million and $756 million) for the six-month period.
- This includes a projected net loss of between 983 million yuan and 1.6 billion yuan for the second quarter, which is narrower than the 4 billion-yuan loss reported in the first quarte
Gentex Corporation: How They Are Capitalizing On The Diversification Opportunities & Expanding The Market! – Major Drivers
- Gentex Corporation reported its financial results for the first quarter of 2024, revealing a mixed outlook tempered by challenges in the global auto industry yet bolstered by strategic advancements and product development.
- Net sales saw a 7% increase to $590.2 million compared to the same period last year, a performance that came notwithstanding a 3% drop in light vehicle production in the company’s primary markets.
- This discrepancy highlights Gentex’s ability to outperform the broader market, largely attributable to increased take rates of advanced features like Full Display Mirrors and growth in the auto-dimming mirror sector.
Enjin (7370 JP): Full-year FY05/24 flash update
- FY05/24 revenue was JPY3.3bn, operating profit JPY1.0bn, recurring profit JPY1.1bn, and net income JPY749mn, all down YoY.
- Enjin’s FY05/25 forecast: revenue JPY2.7bn, operating profit JPY548mn, recurring profit JPY548mn, and net income JPY380mn, all expected to decline YoY.
- Enjin revised its medium-term business plan due to HR challenges and plans to release updated targets reflecting the current environment.
Endava plc: Focus on Core Modernization For Better AI Integration
- Endava’s recent fiscal performance and strategic initiatives highlight a dynamic period for the company as it navigates a challenging economic landscape marked by cautious client spending and macroeconomic uncertainties.
- The third-quarter results for the fiscal year 2024 saw a revenue figure of GBP 174.4 million, which represents an 11.8% decrease in constant currency terms year-over-year from GBP 203.5 million.
- This performance was within the expected guidance range but underscored the challenges faced by the technology services sector broadly.
Balchem Corporation: What Are The Challenges Faced In Animal Nutrition & Health? – Major Drivers
- Balchem Corporation’s first quarter of 2024 displayed commendable performance with a blend of robust financial metrics and strategic corporate initiatives.
- Revenues increased by 3.1% to $240 million, indicative of heightened product demand and expanded market reach.
- This was accompanied by an impressive 11.4% growth in gross margin dollars, with a significant margin expansion to 34%.
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