In today’s briefing:
- Taiwan Tech Weekly: TSMC Wins Major U.S. Support; Nanya Results; UMC Rush Orders
- [#21] Namaste India 🙏 | Business Updates and Earnings Playbook
- China Pair Trade Idea: Long Air China (753 HK), Short CSA (1055 HK)
- Unilever (ULVR) To Separate Its Ice Cream Business
- 10 in 10 – All about Singapore Depository Receipts (SDRs)
- TAL Education Group: Initiation Of Coverage – What Is Its Real Business Strategy And What Is The Impact Of AI On Its Business? – Major Drivers
- Full Report – Golf Digest Online (3319 JP)
- Cardonomics
- Alpha Metallurgical Resources Inc.: Initiation Of Coverage – What Are The Geopolitical Factors Influencing Coal Markets? – Major Drivers
- Masimo Corporation: Initiation Of Coverage – Expansion into Hearables and Wearables Market! – Major Drivers
Taiwan Tech Weekly: TSMC Wins Major U.S. Support; Nanya Results; UMC Rush Orders
- TSMC (2330.TT; TSM.US): US$6.6bn from US CHIPS Act; the Earthquake Impact and the 2nd Japanese Fab.
- Memory Monitor: Nanya’s Results to Provide Latest Color on DRAM Post Earthquake; Short Int Rising
- UMC (2303.TT; UMC.US): Some Rush Orders Coming in and 2Q24F Could Post Positive QoQ.
[#21] Namaste India 🙏 | Business Updates and Earnings Playbook
- Market momentum continues to be strong. As we head into earnings season, the momentum is likely to continue.
- Strong operational updates Info Edge India (INFOE IN); Aavas Financiers Ltd (AAVAS IN) & Sula Vineyards (SULA IN).
- The overall market sentiment, represented by the average revisions across all sectors, is nearly flat, with a slight positive revision for FY1E at 0.02% and essentially stable for FY2E.
China Pair Trade Idea: Long Air China (753 HK), Short CSA (1055 HK)
- Air China Ltd (H) (753 HK) had 15.4% interest-bearing debt denominated in USD, vs. 21.3% for China Southern Airlines (1055 HK), making it less exposed to Rmb depreciation.
- Recovery of international traffic and routes will help to lower unit costs. Air China’s unit costs for FY23 were Rmb4.0445, whereas CSA’s were only Rmb3.2000.
- There is more upside for Air China’s load factor which was down 7.8pp YoY in FY23, compared with -4.7pp for CSA.
Unilever (ULVR) To Separate Its Ice Cream Business
- Unilever announced plans to separate its ice cream business into a separate publicly listed company (SpinCo), potentially via a spin-off transaction.
- Post separation, Unilever will focus on four core businesses: beauty and wellbeing, personal care, home care, and nutrition. The separation is expected to be completed by the end of 2025.
- The separation will allow Unilever to allocate capital and resources more efficiently towards higher growth categories with significant potential to scale.
10 in 10 – All about Singapore Depository Receipts (SDRs)
10 in 10 – All about Singapore Depository Receipts (SDRs)
TAL Education Group: Initiation Of Coverage – What Is Its Real Business Strategy And What Is The Impact Of AI On Its Business? – Major Drivers
- TAL Education Group (TAL) reported net revenues of USD 373.5 million for its third quarter fiscal year 2024, exhibiting an increase of 60.5% and 63.7% in U.S. dollar and RMB terms.
- Despite the impressive revenue growth, profitability remained a concern with non-GAAP loss from operations and non-GAAP net loss attributable to TAL amounting to USD 10.2 million and USD 1.9 million, respectively.
- Baptista Research looks to evaluate the different factors that could influence the company’s price in the near future and attempts to carry out an independent valuation of the company using a Discounted Cash Flow (DCF) methodology.
Full Report – Golf Digest Online (3319 JP)
- On the surface, FY23/12 consolidated OP -68% YoY, profit ATOP -53%, and FY24/12 initial guidance for a profit ATOP net loss may appear to indicate a challenging earnings environment.
- However, closer examination reveals steady earnings improvement, and the new MTP through FY26/12 targets recouping major overseas growth investments.
- The table below shows sequential improvement in the amount change YoY for Group EBITDA, OP and profit ATOP every quarter, with profits at all 9 levels posting YoY gains in the 4Q.
Cardonomics
- Given that it has already been 6 months since I first bought Card Factory and the stock is currently trading only slightly above my average purchase price, I decided to send you guys a short and sweet thesis on why I believe $CARD.L is an attractive opportunity.
- Card Factory is a greeting card and other “celebration essentials” retailer operating primarily in the UK.
- What is unique about the Northern Europeans, particularly the British, is their habit of buying greeting cards. It is ingrained in their culture
Alpha Metallurgical Resources Inc.: Initiation Of Coverage – What Are The Geopolitical Factors Influencing Coal Markets? – Major Drivers
- Alpha Metallurgical Resources, a supplier of metallurgical products for the steel industry, closed its fourth quarter with adjusted EBITDA of $266 million and achieved over $1 billion in adjusted EBITDA for the year.
- This is the second consecutive year in which the company attained such a milestone despite facing considerable challenges during the year.
- Alpha highlighted the robustness of its management approach which included proactive identification of issues and proactive response plans that ensured minimal impact on performance.
Masimo Corporation: Initiation Of Coverage – Expansion into Hearables and Wearables Market! – Major Drivers
- Masimo Corporation had a mixed Q4 and fiscal year 2023 earnings call, reporting both positive results and some challenges.
- The company generated over $2 billion in consolidated revenues, with healthcare revenues reaching $1.28 billion.
- In addition, Masimo saw strong growth in its hearables business and reported a record number of contract wins.
💡 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
