In today’s briefing:
- Olympus Corp (7733 JP): Started FY23 on a Strong Note Thanks to Favorable Foreign Exchange Rate
- Intel Corporation: The Ananki Acquisition & Other Developments
- Altria Group: Low Health Risk Products Upside
- Kroger Company: The Boost Membership & Other Drivers
- Sinopharm Group (1099.HK) – Industry Trends Hardly Support High Valuation Expectations
- TASCO : Earnings to Slow Down in 2H22
- T-Mobile US Inc: First VoNR Deployment & Other Drivers
- Faraday Future’s Weak Q2 Results & Cash Risks Ahead of New EV Launch
- CENTEL : Back to Net Profit Again in 2Q22 Before Recovering up In
- Oracle Corporation: OCI Push In India & Other Drivers
Olympus Corp (7733 JP): Started FY23 on a Strong Note Thanks to Favorable Foreign Exchange Rate
- Olympus Corp (7733 JP) reported double-digit revenue and operating profit growth in Q1FY23, thanks to favorable foreign exchange rate. Adjusting for FX, revenue was flat compared to year-ago period.
- Based on favorable foreign exchange rate, management has raised FY23 revenue and operating profit guidance by 5% and 12% to ¥1,019 billion and ¥231 billion, respectively.
- With more than 85% of total revenue coming from international markets, Olympus should remain a prime beneficiary of Japan’s weak currency.
Intel Corporation: The Ananki Acquisition & Other Developments
- Intel has witnessed a rapid and sudden decline in sales activity which resulted in the company delivering a very weak quarterly result where it failed to meet Wall Street expectations in terms of revenues as well as earnings.
- In its efforts to refocus itself on its core, the management continued to carry out various corporate restructuring efforts.
- We provide the stock of Intel with a ‘Hold’ rating and a revision in the target price.
Altria Group: Low Health Risk Products Upside
- Altria is facing a difficult macroeconomic climate since the start of 2022 which was responsible for a weaker tobacco performance.
- The company failed to meet Wall Street expectations in terms revenues despite the robust performance of Marlboro.
- The smokeable products division did generate excellent operating company income growth, while their moist smokeless tobacco brands kept boosting profitability resulting in the company delivering an earnings beat.
Kroger Company: The Boost Membership & Other Drivers
- Kroger Co. continued to navigate the challenging operating environment characterized by continued supply chain headwinds, including higher diesel fuel costs and inflationary cost pressures.
- The highlight of the last quarter was its launch of the Boost membership on grocery and fuel delivery.
- We provide the stock of Kroger Company with a ‘Hold’ rating with a revision in the target price.
Sinopharm Group (1099.HK) – Industry Trends Hardly Support High Valuation Expectations
- Over the past few years, Sinopharm’s revenue scale has continued to grow, but its gross profit margin declined due to negative policy pressure. Actually, it isn’t a highly profitable business.
- As industry leader, Sinopharm will benefit from the increasing industry concentration and further expand market share. The challenge is Sinopharm will face a situation of increasing revenues without increasing profits.
- For 2022 forecast, revenue YoY growth could be about 5%-7%. Net profit YoY growth could be below 10%., High valuation expectations cannot be supported considering the future industry trend.
TASCO : Earnings to Slow Down in 2H22
- We keep our SELL rating with a new TP of Bt14.50(+4% from prior TP),as we rollover to 1.41xPBV’23E, which is -2SD of its 5-yrs trading mean.Strong QoQ growth in 2Q22
- 2Q22 core profit posted strong QoQ Excluding extra items, its core profit was at Bt622m (-14%YoY, +250%QoQ). The strong QoQ rise was far above our expectation
- Neutral tone from the analyst meeting The management reaffirmed its sales volume guidance for asphalt at 1.20m tons in 2022E (-3%YoY), while its 1H22 volume is at 0.56m tons.
T-Mobile US Inc: First VoNR Deployment & Other Drivers
- T-Mobile has striven to provide the best pricing and network while operating in a cutthroat market and a macroeconomic situation that is rapidly changing.
- They also expanded the availability of T-Mobile Business Internet, making T-Mobile the first and only countrywide provider of the Internet for businesses.
- In this report, we have carried out a fundamental analysis of the historical financial statements of the company.
Faraday Future’s Weak Q2 Results & Cash Risks Ahead of New EV Launch
- Faraday Future (FF) saw a Q2 net loss of $142m & cash fell by 56% QoQ to $121m. As of Aug-9th, cash sunk another 59% to $52m.
- FF’s recently lined up financing provides $52m, but comes in stages through late October, which could hinder its Q4 new flagship EV launch.
- Risk statements regarding the launch of its new EV raise concerns about supplier relationships and marketing capabilities even if its first EV is launched in Q4.
CENTEL : Back to Net Profit Again in 2Q22 Before Recovering up In
- Maintain BUY recommendation for CENTEL with a target price of Bt49.0.The company’s 2Q22 net profit came out above our expectation at Bt22m in 2Q22, compared with Bt44m loss in 1Q22.
- Impressive performance for hospitality business.Hotel revenue hit nine quarter high at Bt1.4bn thanks to impressive performance for Thai hotels as RevPar for Bangkok and Upcountry hotels jumped sixfold and fourfold
- Food hit 10 quarter high at Bt2.9bn (+26%YoY+11%QoQ) on the back of strong SSSG at 19% compared with 0% and 10% in 2Q21 and 1Q22 respectively.
Oracle Corporation: OCI Push In India & Other Drivers
- Oracle has rebounded well in terms of financial performance with a strong all-around beat in the recent quarter.
- The company is currently developing a comprehensive set of applications for the healthcare industry’s whole ecosystem, beginning with healthcare providers like hospitals and clinics.
- Besides, during the quarter, Oracle launched an “OCI dedicated region” for the India market as part of its cloud services platform, Oracle Cloud Infrastructure (OCI), to provide customers with public cloud services on-premises.
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