In today’s briefing:
- PT Surya Citra Media Tbk (SCMA IJ) – On the Cusp of a Convincing Recovery
- Shiseido (4911 JP) | Wrinkle Free
- Tencent: Domestic Game Approvals Over-Hyped as a Revenue Growth Driver
- RPPL: Strong Earnings Led by Robust Demand and Margin Expansion
- Bumrungrad Hospital Pub Co (BH TB): Flying High on Return of Medical Tourism
- CIMC Enric (3899 HK): Growth Outlook Supported by Multiple Engines
- Sumo Logic. 2QFY23 Wrap: Rising From The Ashes?
- Jafron Biomedical (300529CH) 22H1- Possibility of Logic Reversal and Upside Potential of Stock Price
PT Surya Citra Media Tbk (SCMA IJ) – On the Cusp of a Convincing Recovery
- PT Surya Citra Media 1H2022 reflects a recovery in advertising activity but also a normalisation of costs and investment in future growth, especially in its leading Indonesian OTT business Vidio.
- The company continues to gain audience share, as it invests in new fresh content and its sporting content such as Liga 1, and the English Premier League kicks in.
- PT Surya Citra Media is a proxy for recovering advertising spending as the Indonesian economy recovers plus its digital strategy through Vidio has already been proving successful.
Shiseido (4911 JP) | Wrinkle Free
- We turn Bullish on Shiseido. The market has now digested the weak results for 2022 and can look to a recovery over the next year
- Recent commentary from Estee Lauder’s CEO suggest that China is recovering and that the outlook is bright
- Shiseido is one of the key beneficiaries as Japan re-opens its borders to foreign travellers
Tencent: Domestic Game Approvals Over-Hyped as a Revenue Growth Driver
- New title approvals halved during 2021, yet overall industry games revenue grew by 3.4%y/y. 1H22 new games approvals are down a further 82%y/y, yet games revenue is down 1.8%.
- Tencent has lost revenue market share to the overall Chinese online game software market, most notably to NetEase, this year.
- Tencent’s paying gamer participation rate has dropped to levels last seen during 2018.
RPPL: Strong Earnings Led by Robust Demand and Margin Expansion
- Q1FY23 earnings came in strong for RPPL led by robust demand and margin expansion. Volumes grew by 23.6% YoY and 24.5% QoQ.
- Operational EBITDA per kg grew by 25%+ YoY and 36%+ QoQ to INR 37.5+ per kg as the price rise in raw materials was passed on.
- RPPL has guided for a strong FY23. It can clock a volume of 10500+ MT and EBITDA of INR 35+ per kg, barring any adverse volatility in raw material prices.
Bumrungrad Hospital Pub Co (BH TB): Flying High on Return of Medical Tourism
- Bumrungrad Hospital Pub Co (BH TB) reported strong Q2 2022 results, with revenue growth of 64% y/y, mainy driven by a 121% y/y increase in revenue from non-Thai patients.
- Despite international patient volume is recovering, it is still lower than pre-COVID levels. Non-Thai patients contributed 66.2% of total revenue in Q2 2019, higher than 62.3% reported for Q2 2022.
- Thailand targets 10 million foreign tourist arrivals this year, which should augur well for Bumrungrad.
CIMC Enric (3899 HK): Growth Outlook Supported by Multiple Engines
- We see the positive share price reaction of CIMC Enric Holdings (3899 HK) after posting a 34.5% 1H22 core profit growth not yet enough to reflect its encouraging earnings outlook.
- Good order backlog, recovery at clean energy and increase in liquid food demand will add to the strength at chemical and environment segment as CIMC Enric’s drivers.
- Hydrogen energy business made impressive contribution growth and it should benefit from local governments’ hydrogen initiatives. The stock’s high PERs are just reflection of huge long-term potential.
Sumo Logic. 2QFY23 Wrap: Rising From The Ashes?
- Sumo Logic Inc (SUMO US) surprised investors and reported solid 2QFY23 results pushing shares up over 10% during a regular trading session on Friday.
- Provider of cloud-based machine data analytics reported revenue/non-GAAP EPS of $74.1M/($0.10), above consensus, and improved FY23 outlook.
- Management focused on delivering more efficient growth and reduced hiring plans. Customer metrics remained strong, with a dollar-based net retention rate of 115%.
Jafron Biomedical (300529CH) 22H1- Possibility of Logic Reversal and Upside Potential of Stock Price
- The centralized procurement of hemoperfusion cartridge is the major risk. This is why capital market is divided over the logic of long-term growth when performance continued to grow in 2022H1.
- Jafron is not without chances to get out of a passive situation. Either business diversification or internationalization would help re-establish the investment logic and improve the outlook.
- The valuation of Jafron Biomedical Co Ltd (300529 CH)has entered the “hitting zone”. After continuous correction, there could be some rebound, like 10%-20% upside potential. Short term trade is recommended.
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