In today’s briefing:
- Tencent (700 HK): 1Q24 Preview, EPS Up by 40%, But Upside Narrowed by Significant Price Rise
- Alibaba (BABA US) 4Q24 Preview: Many Moves Under One-Digit Growth, 46% Upside
- China After-School Tutoring: Still In The Early Innings; Prefer China Beststudy Over EDU
- Revisiting Jafco (8595.T) – Company Reaches An Important Milestone
- Komatsu (6301) | 6% TSR and Clean Energy Winner
- Tech Supply Chain Tracker (06-May-2024): Samsung SDI boosts investment despite weak 1Q24.
- Ajanta Pharma (AJP IN): Stellar Q4 Performance; INR3B Buyback Plan Announced
- TAL Education Group: What Is The Progress In Terms Of Expansion of Learning Services? – Major Drivers
- Royal Caribbean Group: Focus on Millennial Customers and New Cruise Experiences! – Major Drivers
- Newmont Corporation: What Is Its Asset Divestments Strategy? – Major Drivers
Tencent (700 HK): 1Q24 Preview, EPS Up by 40%, But Upside Narrowed by Significant Price Rise
- We believe total revenue will grow by 7% YoY in 1Q24 and faster in the remaining three quarters of 2024.
- We believe EPS will grow by 41% to HK$3.80, which is higher than the market consensus.
- The stock has risen by 26% since our last Buy rating, but there is still an upside of 9% till the end of 2024.
Alibaba (BABA US) 4Q24 Preview: Many Moves Under One-Digit Growth, 46% Upside
- We believe revenue will grow by 6% YoY in 4Q24, but by 11% for FY2026 (roughly 2025 calendar year).
- We believe Alibaba has been actively raising its revenue growth, but this the effect cannot be seen in the short run.
- We conclude the stock has an upside of 46% and a price target of US$120.
China After-School Tutoring: Still In The Early Innings; Prefer China Beststudy Over EDU
- China after-school tutoring remains one of the most attractive and visible sectors in the next 2-3 years time frame.
- Even though New Oriental Education & Techn (EDU US) had some hiccups in FY3Q24 results, they were mainly due to factors not related to the core after-school tutoring business.
- My sector top pick is China Beststudy Education Group (3978 HK), as valuation is lower and growth is higher, though it has a much smaller market cap..
Revisiting Jafco (8595.T) – Company Reaches An Important Milestone
- The company’s management fees now cover the operating costs after many years of losses
- Recent fund raising has surpassed expectations for its latest VC fund
- The company’s steps towards better capital allocation are trending in the right direction
Komatsu (6301) | 6% TSR and Clean Energy Winner
- Komatsu’s operating profits for FY3/24 of Y607 billion (+24% YoY) surpassed estimates on strong U.S. equipment sales
- Komatsu guides for FY3/25 operating profits of ¥557 billion (-8.3% YoY), assuming ¥140/US$
- We believe that the market remains too focused on the near-term growth slowdown, while we believe that Komatsu is attractively priced at under 10x EV/EBIT
Tech Supply Chain Tracker (06-May-2024): Samsung SDI boosts investment despite weak 1Q24.
- Samsung SDI exhibits confidence in future growth and innovation by increasing investments despite weak 1Q24 results.
- UnaBiz boosts Sigfox 0G Technology by reducing device energy usage by up to 18 times, enhancing efficiency.
- Sharp considers establishing a display plant in India, potentially boosting the country’s electronics manufacturing sector.
Ajanta Pharma (AJP IN): Stellar Q4 Performance; INR3B Buyback Plan Announced
- Ajanta Pharma (AJP IN) reported strong Q4FY24 results, with double-digit revenue and PAT growth, and improving margins, driven by growth across all the business segments.
- The company has announced INR3.5B buyback plan, involving purchase of 10,28,881 equity shares (0.82% of the total paid-up equity share capital) at a price of INR2,770 per equity share.
- Ajanta Pharma is confident of maintaining double-digit growth going ahead with the existing products gaining market share, new launches, and expansion of field force.
TAL Education Group: What Is The Progress In Terms Of Expansion of Learning Services? – Major Drivers
- TAL Education Group showcased a strong financial performance in the fiscal fourth quarter and full fiscal year of 2024.
- The group’s Learning Services and Content Solutions segments demonstrated growth, driven by focused product development and a broadening customer base.
- The Learning Services sector saw continuous growth, supported by the expansion of learning centers and increased enrollment.
Royal Caribbean Group: Focus on Millennial Customers and New Cruise Experiences! – Major Drivers
- Royal Caribbean Group has made impressive strides in reshaping the business in the first quarter of 2024.
- The company described its Q1 2024 as robust and experiencing an upward trajectory in business operations, bolstered by the consumers’ demand for vacation experiences.
- The results of Q1 2024 were significantly better than anticipated, with the company’s brands being stronger than ever and demand for vacation experiences showing consistent acceleration.
Newmont Corporation: What Is Its Asset Divestments Strategy? – Major Drivers
- The first quarter 2024 earnings for Newmont Corporation presents an operational and strategic snapshot for the company in a balanced manner.
- To lay out the salient attributes and challenges of investing in Newmont: Positively, Newmont executives highlight the company’s robust operational performance for the 1st quarter 2024.
- Despite experiencing the loss of three employees due to on-site incidents, Newmont still looks set to meet its 2024 guidance, thereby proving the underlying stability of its operations.
💡 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
