Daily Brief Equity Bottom-Up: Shimano: An Opportunity for Activist Investors and more

• Shimano, the Japanese maker of bicycle components and fishing equipment, is in need of a strategic gear change
• A significant -25% decline in FY23 net sales highlights Shimano’s struggles. Revenues dropped a further -11% in the first nine months of 2024
• For investors seeking opportunity at the bottom of the cycle, Shimano presents a compelling case. The stock is trading at 2.3x book value

• Tempus AI reported its third-quarter 2024 financial results, reflecting positive revenue growth but continuing to face profitability challenges.
• Revenue rose by 33%, reaching $180.9 million, driven by growth in the Genomics and Data and Services segments.
• Notably, the Genomics unit growth accelerated to 23.9%, which shows a significant uptick from the previous quarter.

• Nextage is a prominent player in Japan’s fragmented used car dealer market
• The company is looking to grow through suburban superstores, similar to CarMax in the US
• Despite recent scandal involving competitors, Nextage is positioned for growth with potential for expansion in Japan’s used vehicle market

This content is sourced through publicly available sources and has been machine generated. Information displayed is for general informational purposes only. This article was originally published 3 months ago on Value Investors Club.

• Global aviation supply continues to suffer from various supply chain disruptions, driving up lease rates and aircraft values and benefiting aircraft lessors, such as BOC Aviation (BOCA) 
• Although BOCA’s interim results were disappointing due to delayed aircraft deliveries, I expect its momentum to recover in 2025, driven by incoming aircraft and lower interest costs. 
• Stock is trading at 0.9x PB, nearing its historical trough of 0.8x, and offering a decent 5% dividend yield.

• Broadcom Inc.’s financial results for the fourth quarter and fiscal year 2024 reveal a year marked by significant growth driven by strategic acquisitions and advancements in AI technologies.
• The company’s consolidated revenue for the fiscal year reached $51.6 billion, showcasing a 44% year-over-year increase.
• This growth was bolstered not only by strong organic growth of over 9% but also by the strategic acquisition and integration of VMware, which contributed notably to Broadcom’s financial achievements.

• Temu, the Chinese cross-border e-commerce platform owned by PDD Holdings Inc. has suffered its first major setback since launching in 2022 after Vietnam banned its operations citing regulatory non-compliance only two months after it entered the market.
• Temu was ordered by the Ministry of Industry and Trade to stop using the Vietnamese language on its website and app, to notify customers that its e-commerce registration was under review, and to halt all marketing activities in the country, according to a report by Vietnam News Agency on Dec.
• The suspension is Temu’s first since expanding into more than 80 countries around the world.

• Nicola Tangen and Adena Friedman discuss the importance of integrity, transparency, and trust in the financial system
• Nasdaq’s vision is to be the trusted fabric for the world’s financial system, focusing on technology and partnerships
• Adena shares her leadership journey, emphasizing the importance of empowerment, curiosity, and kindness in leadership. She also highlights the lessons learned from Korean kickboxing, pottery, and pickleball in relaxation and personal growth.

This content is sourced through publicly available sources and has been machine generated. Information displayed is for general informational purposes only.

• The H share market continues to be the top performing market in Asia in 2024.  The HSCEI has outperformed all Asian markets on a USD basis.
• China Longyuan Power (916 HK) was rated a BUY at JP Morgan with the company hosting a roadshow to discuss its future growth strategy. 
• China Resources Beverage (2460 HK) was initiated as a BUY at CMB International as the company rapidly expands into the ready-to-drink category with teas and sports drinks.

• Investors are disappointed with Citigroup’s lackluster profitability compared to other large US banks, leading to a low valuation of 0.65x TBV
• Potential for improvement as the company has excess capital and may be able to increase profitability to reach a 10% ROTE in the next two years
• Predictions suggest that if Citigroup reaches its targets, there could be a significant increase in share value, with TBV/share reaching $100 and EPS of $10 by 2026, presenting a compelling investment opportunity for those willing to take a risk on the bank’s future performance.

This content is sourced through publicly available sources and has been machine generated. Information displayed is for general informational purposes only. This article was originally published 3 months ago on Value Investors Club.

• Berli Jucker (BJC TB) has started to see better performance from Big C SSSG from 3Q2024, with strong performance in October and November, with an expected strong finish to FY2024. 
• The company continues to focus on expanding its fresh food offering, introducing more private labels into its modern retail segment, and using AI to improve logistics performance. 
• Berli Jucker‘s packaging business is benefitting from raw material lower input costs coupled with active hedging as well as a switch to Aluminium cans from PET. Valuations remain attractive.