In today’s briefing:
- Money Forward (3994) | Show Me the Money
- Hisamitsu Pharmaceutical (4530 JP): Mixed Q2FY24 Result- Some Points Worth of Paying Attention
- Eicher Motors (EIM IN) | Competitive Position Strengthening
- WuXi AppTec (2359.HK/603259.CH) – Would the Recent Rebound in Share Price Be a Flash in the Pan?
- Have South32 Shares Bottomed Out?
- [Week 6] Namaste India 🙏 | TTAN’s Glittery Update and Earnings Workbook
- Valeura Energy (TSE VLE): ~20 mbbl/d production in 2Q23
- Marizyme, Inc. – DuraGraft Approved for US Markets
- Granite Ridge Resources, Inc. – Private Equity Growth Strategy in a Public E&P Company
- Micron Technology Inc.: Unpacking the Strategies Behind Their Recent Financial Performance! – Major Drivers
Money Forward (3994) | Show Me the Money
- Money Forward’s share price dipped 20% post-Q2 results, but strong operational performance and upward sales revisions make it appealing.
- We expect 42% YoY sales growth in Q3 and believe long-term growth prospects remain exceptional against the market size.
- Management to deliver profitability next FY, meeting investor demands to “show me the money” – we remain bullish
Hisamitsu Pharmaceutical (4530 JP): Mixed Q2FY24 Result- Some Points Worth of Paying Attention
- Hisamitsu Pharmaceutical Co (4530 JP) announced mixed Q2FY24 result, with single-digit revenue growth and bottom-line decline. Revenue grew 5% YoY to ¥34.9B, while operating profit declined 8% YoY to ¥4B.
- Salonpas line of OTC pain relieving patches have become major growth driver of the company. In Q2FY24, Salonpas revenue increased 14% YoY, lowest growth rate reported in last five quarters.
- Despite 70%+ progress of operating and net profits, Hisamitsu reiterated FY24 guidance. Declining margins, anticipated increase in SG&A expenses, and high base call for massive fall in profit in H2FY24.
Eicher Motors (EIM IN) | Competitive Position Strengthening
- Our dealer checks across a couple of Eicher Motors (EIM IN) and Bajaj Auto Ltd (BJAUT IN) dealerships indicate a strengthening competitive position for Royal Enfield.
- After the initial hype, customers are now shifting back to Royal Enfield.
- As competition ramps up production, we continue to believe that the market will expand, and there will be no fight for market share.
WuXi AppTec (2359.HK/603259.CH) – Would the Recent Rebound in Share Price Be a Flash in the Pan?
- WuXi AppTec’s share price has performed well recently, mainly driven by CXO’s “immune attributes” to anti-corruption campaign, investors’ bullish view of weight loss drug business, and the previous oversold rebound.
- Peptide CDMO business would contribute limited incremental performance to WuXi AppTec considering overall large business volume.Downward trend of CRO business is hard to be hedged by weight loss drug business.
- Due to higher-for-longer rate, China CXOs only have rebound value, but no reversal logic. It’s time to consider taking profits in a timely manner before the share price falls again.
Have South32 Shares Bottomed Out?
- South32 is an Australian metal and mining firm spun off from BHP in 2015. Unlike mining majors, South32 holds smaller but concentrated assets.
- Aluminium operations is the firm’s primary revenue source followed by coking coal operations. Coking coal contributes to 32% of the underlying EBITDA.
- With its share price having got battered, South32 stock is compellingly priced relative to MVR ETF paving way for a compelling long-short trade.
[Week 6] Namaste India 🙏 | TTAN’s Glittery Update and Earnings Workbook
- The index seems to be finding support at 19,500 for the second consecutive week. Bullish momentum could resume when we close above 19,800 on the NIFTY Index (NIFTY INDEX) .
- Names discussed include Titan Co Ltd (TTAN IN), Maruti Suzuki India (MSIL IN) and Metro Brands (METROBRA IN).
- We also introduce the Earnings Diary which will be part of the publication, tracking estimates and narratives around over coverage.
Valeura Energy (TSE VLE): ~20 mbbl/d production in 2Q23
- 2Q23 production was 19,961 bbl/d with the difference to our forecast mostly reflecting the timing of drilling.
- Wassana (1.6 mbbl/d production during 2Q23) was offline in 3Q23.
- Our YE24 estimated net cash (~US$450 mm given the late tax restructuring) represents 1.6x the current market cap of the company.
Marizyme, Inc. – DuraGraft Approved for US Markets
Key milestone in FDA approval. On October 6, Marizyme, Inc. (MRZM) announced a key milestone in its growth strategy, with FDA approval of its flagship DuraGraft (DG) technology for the US market.
Improved outcomes when used in cardiac care. DG has been proven to result in significantly improved outcomes and lower costs for cardiac surgery through multiple clinical trials as well as utilization in selected markets in Europe and Asia where adoption has recently accelerated.
Reflecting that, YTD DG-driven revenue is already more than double the level of 2022.
Granite Ridge Resources, Inc. – Private Equity Growth Strategy in a Public E&P Company
Granite Ridge was formed in 2022 to execute a private equity investment strategy in a public company vehicle.
The strategy is to allocate capital to non-operated oil and natural gas development opportunities in order to grow the company’s underlying asset base and support its common stock dividend.
Grey Rock Investment Partners contributed the assets of three investment funds to facilitate Granite Ridge’s business combination transaction with Executive Network Partnering Corporation (ENPC).
Micron Technology Inc.: Unpacking the Strategies Behind Their Recent Financial Performance! – Major Drivers
- Micron Technology, Inc. delivered a positive result and managed an all-around beat last quarter.
- Their management has provided insights into the ongoing underutilization charges and inventory write-downs that have impacted the company’s financials.
- This rise in underutilization has led to corresponding charges in the fourth quarter, which are expected to continue into fiscal year 2024.
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