Daily Brief Equity Bottom-Up: Spot Container Rates Surge | New Fees Also Boosting Carrier Revenue | Increases Could Lift ’24 Rates and more

• Spot container rates have surged, owing to conflict near Red Sea / Suez Canal
• On top of higher spot rates, imposition of new fees also boosting carrier revenue
• Evergreen’s average monthly US$ revenue increased from Q123 to Q423

• Tencent will allow Douyin to broadcast the game Honor of Kings after a four-year ban.
• Dada’s stock plunged after the company released its suspicious auditing result.
• Alibaba’s mobile office app, Dingding, has accumulated 120,000 paying users.

• Saizeriya (7581 JP) reported FY1Q24 results (September to November) last week.  Sales grew 22% yoy, and was 2% higher than company guidance.  Operating profit grew 104%.
• Operating profit for the Asia business, the key growth driver of the company, was Y3.3bn, up 56% yoy and above management guidance. 
• Overall thesis remains intact, as the Asia business performed slightly better than expectations. 

• We compile our selection of small and mid-cap names with our desired characteristics of high dividend yields, value, and margin of safety.
• Our top picks: Perfect Medical Health (1830 HK), Water Oasis (1161 HK), Taste Gourmet (8371 HK), Uchi Technologies (UCHI MK), and The Keepers Holdings (KEEPR PM).
• We recently added Plover Bay Technologies (1523 HK) to our list of companies under coverage. We believe there are some excellent near-term catalysts in the name. 

• WuXi Bio’s optimism about new orders failed to generated expected surge in its stock price. Many investors raised great doubts about the credibility and professionalism in communication of WuXi Bio.
• It’s easy/cost-effective for WuXi Bio to “adjust” order number. However, it’s more difficult to inflate revenue/cash flow. We have to wait for future financial results to know the real situation.
• XBI is essentially “a bond”.Recent surge of XBI is driven by the expectations of Fed’s rate cut + US soft landing, rather than virtual improvement of external environment.Much remains unclear.  

• Sumitomo Pharma (4506 JP) still expects FY24 revenue of ¥362 billion (down 35% YoY). This implies H2FY24 revenue of ¥209.4 billion, up 37% compared with H1FY24.
• To achieve this target, North America needs to perform strongly. H1FY24 revenue from North America has shown a progress rate of just 35% against full-year FY24 revenue guidance.
• With the absence of any strong catalyst, we expect recent rally in Sumitomo shares fueled by encouraging clinical trial result and new drug approval in China, will be short-lived.

Key points (machine generated)

• Steve Madden is considered a good investment opportunity due to its strong management team and attractive price.
• The shoe industry has faced challenges, but Steve Madden is seen to have minimal downside risk due to its solid balance sheet and reasonable valuation.
• Steve Madden’s focus on branded shoes also makes it an attractive acquisition target, and if it achieves estimated 2025 earnings of $3 per share, its stock price could potentially increase by 40%.

This article is sourced from an online content aggregator through publicly available sources and is displayed below for general informational purposes only. This article was originally published 3 months ago on Value Investors Club.

Key points (machine generated)

• Vanda Pharmaceuticals has established revenue-generating drugs and a pipeline of potential candidates in development.
• The company has a strong balance sheet with ample cash reserves, offering potential for investments or acquisitions.
• Despite these positive traits, the market values Vanda as if its core business is worthless, presenting a potential investment opportunity with significant upside potential.

This article is sourced from an online content aggregator through publicly available sources and is displayed below for general informational purposes only. This article was originally published 3 months ago on Value Investors Club.

• Accrelist chairman Terence Tea increases stake in firm CapitaLand Investment led the consideration tally, buying back 1,072,100 shares at an average price of S$3.00 per share on Jan 10.
• Between Jan 4 and 9, Accrelist executive chairman and managing director Terence Tea acquired 2,365,900 shares at S$0.039 per share.