In today’s briefing:
- StubWorld: Stay Long PICC (1339 HK)
- Multibintang Q1 FY24: Soft Start, Down to 13x PE and a >7% Dividend Yield
- Bright Day For Darktrace: Thoma Bravo Adds Cybersecurity Unicorn To Its Portfolio
- Bumrungrad Hospital (BH TB): Record High Margins in 1Q24; Reasonable Growth in Foreign Patients
- Teledyne Technologies Incorporated: Initiation Of Coverage – What Is Their Segmentwise Performance & Future Outlook? – Major Drivers
- Waste Connections Inc.: Initiation of Coverage – 4 Pivotal Factors Driving Its Performance In 2024 & Beyond! – Major Drivers
- Hilton Worldwide Holdings: Resilient Demand In Key Regions Driving Growth! – Major Drivers
- Teradyne Inc.: How Will The Memory Market Volatility Impact Its Business? – Major Drivers
- O’Reilly Automotive Inc.: Expansion Into The Mexican Market & 5 Major Factors Driving Its Growth! – Financial Forecasts
- AIXI: AI commercialization efforts accelerate but significant hurdles remain.
StubWorld: Stay Long PICC (1339 HK)
- People’s Insurance (PICC) (1339 HK) has bounced off its lifetime low implied stub and simple ratio (PICC/PICC Property & Casualty (2328 HK)); but still trades below its historical trailing/forward metrics.
- Preceding my comments on PICC are the current setup/unwind tables for Asia-Pacific Holdcos.
- These relationships trade with a minimum liquidity of US$1mn, and a % market capitalisation >20%.
Multibintang Q1 FY24: Soft Start, Down to 13x PE and a >7% Dividend Yield
- Multi Bintang Indonesia (MLBI IJ) showed a weak print, with sales down 10% YoY and profitability flat for Q1 FY24. Consumption was weak locally despite strong Bali tourism.
- On the positive side, the company improved its net cash position to substantially to 900 bn Rph ( or 6% of Mkt Cap) and expanded margins by 400 bps YoY.
- Trading at 13x FY23 PE (with a 7% dividend yield assuming a 100% payout), there is great value in this market leader (60% Mkt share) of beer consumption in Indonesia.
Bright Day For Darktrace: Thoma Bravo Adds Cybersecurity Unicorn To Its Portfolio
- Darktrace shares rallied ~64% in 2024 after the company raised FY24 revenue, adj. EBITDA guidance and Thoma Bravo offered 620 pence/share in cash to take Darktrace private.
- The acquisition is expected to complete during 3Q or 4Q of 2024. The cybersecurity unicorn has delivered revenue growth at scale coupled with solid profitability and cash flow generation.
- I maintained a bullish view on the undervalued stock and initiated coverage of Darktrace on January 11, 2023, with a 497p price target as steep discount was unjustified.
Bumrungrad Hospital (BH TB): Record High Margins in 1Q24; Reasonable Growth in Foreign Patients
- Bumrungrad Hospital Pub Co (BH TB) reported strong 1Q24 results, with revenue growing 8% YoY to THB6,576M, EBITDA climbing 22% to THB2,676M, and net profit increasing 25% to THB1,985M.
- International patients revenue increased 6% YoY. Slow growth in the revenue from international patients can be attributable to high base, as it grew by a whopping 105% YoY in 1Q23.
- With tight control on cost, the company has reported record high margins in 1Q24, with gross, EBITDA, and net margin reaching 51.7%, 40.7%, and 30.2%, respectively.
Teledyne Technologies Incorporated: Initiation Of Coverage – What Is Their Segmentwise Performance & Future Outlook? – Major Drivers
- Teledyne Technologies, a prominent industrial conglomerate focused on aerospace and defense, instrumentation, digital imaging, and engineered systems, reported its Q1 2024 earnings.
- In the call, management touted robust results including record first quarter non-GAAP operating margin, record adjusted earnings per share, and record free cash flow.
- The company’s strong performance was driven by growth in its marine, aviation, and select defense businesses which offset sales declines in other areas.
Waste Connections Inc.: Initiation of Coverage – 4 Pivotal Factors Driving Its Performance In 2024 & Beyond! – Major Drivers
- Waste Connections, Inc. reported a strong start to 2024, delivering better-than-expected operating and financial results, including adjusted EBITDA margin expansion of 160 basis points to 31.4% in Q1.
- The company’s earnings exceeded projections due to improvements in employee retention and safety trends, along with rising commodity values.
- Waste Connections management highlighted several notable trends impacting its business, including continued improvement in employee turnover rates and safety incidents, suggesting an effective culture of accountability within the company.
Hilton Worldwide Holdings: Resilient Demand In Key Regions Driving Growth! – Major Drivers
- Hilton has reported its first-quarter results for 2024, which the company states have continued to demonstrate the strength of Hilton’s business along with its development story.
- Although the company’s RevPAR growth found itself at the lower end of its guidance, both adjusted EBITDA and adjusted EPS exceeded predictions significantly.
- Some of Hilton’s newly announced partnerships and portfolio additions have solidified its confidence in future growth.
Teradyne Inc.: How Will The Memory Market Volatility Impact Its Business? – Major Drivers
- Teradyne, Inc delivered first quarter 2024 financial results that exceeded its revenue, gross margin and earnings guidance ranges, led by stronger than projected performance in Memory and System on a Chip (SOC) driven primarily by AI applications.
- Teradyne capitalized on the impact of AI in networking as well as in Edge AI applications like Advanced Driver Assistance Systems (ADAS), with AI applications driving over 40% of memory shipments in Q1.
- Nonetheless, the mobile sector was weaker than expected for the same period, but the company’s Robotics business met its plan for a third consecutive quarter.
O’Reilly Automotive Inc.: Expansion Into The Mexican Market & 5 Major Factors Driving Its Growth! – Financial Forecasts
- In the first quarter of 2024, O’Reilly Automotive, Inc., had a 3.4% comparable store sales growth, which was primarily driven by mid-single-digit comps in Professional.
- This marked continuous strong top line sales results and was a testament to consistent execution across all 6,200+ stores.
- The company noted that its store volumes continued to grow despite the company’s size and market share gains over the years.
AIXI: AI commercialization efforts accelerate but significant hurdles remain.
- Xiao-I (NASDAQ: AIXI) is leveraging its experience as a chatbot provider to establish itself as a provider of AI models, principally in China.
- The company is focused on commercializing products in the consumer, marketing, and banking sectors in 2024 and exploring international expansion opportunities.
- The company is competing with some of the most successful companies in China for mindshare in AI markets.
💡 Before it’s here, it’s on Smartkarma
Sign Up for Free
The Smartkarma Preview Pass is your entry to the Independent Investment Research Network
- ✓ Unlimited Research Summaries
- ✓ Personalised Alerts
- ✓ Custom Watchlists
- ✓ Company Data and News
- ✓ Events & Webinars
