In today’s briefing:
- Nationalization of Lithium Industry in Chile – Impact on Korean Rechargeable Batteries Value Chain
- HDFC Bank: Steady Q4FY23 Results | Merger Update – RBI Concessions
- Las Vegas Sands: Starting a Run as Macau Recovery Gains Speed. Up 23% YTD.
- China Healthcare Weekly (Apr.21) – A Brutal Reality, Benign Returns from China Biotech, Pharmaron
- BlackLine Inc.: Major Drivers
- Ambev S.A.: Major Drivers
- Broadridge Financial Solutions Inc.: Recurring Sales
Nationalization of Lithium Industry in Chile – Impact on Korean Rechargeable Batteries Value Chain
- On 20 April, Chile’s government announced that it will be nationalizing the country’s lithium industry. Chile is the second largest producer of lithium in the world.
- The nationalization of the lithium industry in Chile will likely have a long-term negative impact on the rechargeable batteries related companies in Korea.
- This is mainly due to greater challenges of getting access to lithium at more affordable prices.
HDFC Bank: Steady Q4FY23 Results | Merger Update – RBI Concessions
- HDFC Bank (HDFCB IN) reported a steady and broadly in-line-with-expected Q4FY23 earnings. In particular, its growth in deposits at 8.7% QoQ was commendable.
- Advances also grew at a healthy pace of 6% QoQ. Retail advances grew 5% QoQ, while CRB (Commercial and Rural Banking) grew the most at 9.7% QoQ.
- Aided by low credit costs, HDFCB continues to invest in expanding its geographical and digital distribution to deepen its penetration.
Las Vegas Sands: Starting a Run as Macau Recovery Gains Speed. Up 23% YTD.
- LVS just reported 1Q23 results showing a surging recovery of GGR and daily arrivals in Macau driving gains in revenue and profit profile.
- Labor shortages that have limited availability of LVS’ 12,000 rooms are beginning to subside. Golden Week just ahead expected to reach +90% room occupancy.
- Stock has moved over 20% since our buy call at $53. Our PT is raised to $80.
China Healthcare Weekly (Apr.21) – A Brutal Reality, Benign Returns from China Biotech, Pharmaron
- Pharmaceutical companies shouldn’t always emphasize being the first to enter the market, but focus on how to best enter the market and maintain a dominant position as long as possible.
- It’s truly felt that the assets of China’s pharmaceutical companies are accelerating their global recognition. As their internationalization strategy becomes increasingly mature, investors are expected to obtain more benign returns.
- For Pharmaron, financial profit decline was the main reason for profit drop.If deducting fair value change of biological assets, operating profit growth was negative. We remain conservative about its outlook.
BlackLine Inc.: Major Drivers
- BlackLine completed a year of profitable expansion with strong financial results for the fourth quarter.
- The company had total sales of $140 million in Q4 and managed an all-around beat, including a top-line growth of 21%.
- Moreover, increased utilization was caused by a stronger-than-anticipated demand for professional services due to customers’ willingness to access the solutions’ embedded value.
Ambev S.A.: Major Drivers
- Ambev delivered mixed results in Q4.
- The company saw a 1.5% increase in volumes though its revenues were below Wall Street expectations.
- Also, despite the impact of inflationary pressures on Ambev’s expenditures and expenses, normalized EBITDA increased in the quarter and the company delivered an earnings beat.
Broadridge Financial Solutions Inc.: Recurring Sales
- Broadridge delivered a mixed set of results in the quarter.
- Recurring sales increased by 8% on a constant currency basis, and both segments experienced significant growth but overall revenues were below analyst expectations.
- However, the top-line growth combined with strict expense control helped to boost adjusted EPS by 11% which resulted in an earnings beat.
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