In today’s briefing:
- Tesla Q2 Results Beat, But Earnings Call Reveals Many Risks
- How Real Are the Capex Cuts for Hynix?
- Yamato Builds Courier Ecosystem
- Sanrio: The Market Is a Bit Too Excited About The Licensing Agreement With Alifish
- China Debuts $3 Billion State Iron Ore Giant
- Pfizer Inc (PFE US): What’s Lie Ahead of Comirnaty? Potential Blockbuster Drugs in Pipeline
- Alphyn Capital Management Letter To Investors Q2 2022
- Mayar Capital Q1 2022 Letter To Partners
- PT Metrodata Electronics (MTDL IJ) – Rising with the Digital Tide
- Abbott Laboratories (ABT US): Beat-And-Raise Q2; Nutrition Drags; Full-Year EPS Guidance Raised
Tesla Q2 Results Beat, But Earnings Call Reveals Many Risks
- Tesla beat both our estimates and the Street’s by a wide margin, but the earnings call had some cautiousness regarding order backlogs, production ramps & 4680 cells.
- Tesla sold 75% of their Bitcoin holdings at a gain in Q2, which largely accounts for the earnings beat. It is also a sign of larger cash needs than expected.
- The stock was only +1.5% after hours and it was noteworthy that the biggest Tesla bull on the Street said this huge beat wasn’t a “step change” to consensus.
How Real Are the Capex Cuts for Hynix?
- Are the cuts a sign of discipline that we have been waiting for or
- Is it due to lack of ability to procure the equipment?
- Seems a combination of both if you listen to the words of the Chairman
Yamato Builds Courier Ecosystem
- Yamato Transport is Japan’s largest courier service, owning nearly 50% share, but even the biggest player needs to race to keep up with booming demand for e-commerce.
- Over the past six years, it has gradually built an ecosystem of online tools and physical infrastructure to help vendors and customers, importing knowhow when needed.
- So far, these measures have helped it stay on top of spiralling demand but there remain pressures.
Sanrio: The Market Is a Bit Too Excited About The Licensing Agreement With Alifish
- Sanrio (8136 JP) , the company behind Hello Kitty, has bounced 12% since striking a deal with Alibaba’s IP licensing platform Alifish to produce and sell merchandise of 26 characters.
- This seems like a way to combat copyright infringements. However, we are sceptical that this agreement could stop cheap counterfeits from entering the market.
- Sanrio badly needs a revival. However, history is not on the company’s side as they have been trying to revive the business over the last 20 years.
China Debuts $3 Billion State Iron Ore Giant
- China’s central government formally launched a state-owned iron ore giant to consolidate China’s massive mining investments and coordinate global purchases of steelmaking materials for the world’s largest steel producing nation
- With registered capital of 20 billion yuan ($3 billion), China Mineral Resources Group was established Tuesday in the Xiongan New Area
- Creation of the enterprise is seen as part of China’s long-pursued goal of enhancing its position in the global iron ore trade
Pfizer Inc (PFE US): What’s Lie Ahead of Comirnaty? Potential Blockbuster Drugs in Pipeline
- Comirnaty had had a significant positive impact on Pfizer Inc (PFE US)’s revenue in 2021. 2022 will be no different. However, outlook for COVID-19 vaccine is uncertain beyond 2022.
- Apart from the existing blockbuster fast-growing drugs, Pfizer has a rich late-stage pipeline. Its alopecia areata drug candidate, ritlecitinib has potential to become a blockbuster drug.
- Pfizer aims to add $25 billion revenue to its 2030 top-line expectations. Thus far, the company has announced two deals toward this ambition, entailing potential revenue addition of $7.5 billion.
Alphyn Capital Management Letter To Investors Q2 2022
- Alphyn Capital Management LLC (“ACML”) is a registered investment advisor in New York. We help clients invest in high quality public companies to both preserve and grow their wealth over the long-term.
- The Master Account, in which I am personally invested alongside SMA clients, returned -14.7% net in Q2 2022, as reported by our fund administrator.
- With the threat of increasing rates, investors have renewed their focus on profits.
- I try not to take a position on a discrete event, such as interest rates or quarterly earnings, as the odds of getting these right are too low, and the costs of getting these wrong are too high.
Mayar Capital Q1 2022 Letter To Partners
- Mayar Capital provides investment management services to institutions, family offices, and high net-worth individuals.
- For the three months ending March 31, 2021, Mayar Fund (Class A) was down 6.6% net of all expenses and fees.
- Several of our SMA clients have chosen to switch their investment to the Fund, so we expect Fund assets to increase to approximately $170 million once the transfer is complete.
PT Metrodata Electronics (MTDL IJ) – Rising with the Digital Tide
- PT Metrodata Electronics remains one of the key enablers for the digital economy and overall digitalisation of corporate Indonesia through both providing hardware, software, solutions, and consulting services.
- The key driver for its ICT distribution comes from PCs, laptops, smartphones, and gaming whilst its solutions and consulting business is driven increasingly by the formation of digital banks.
- PT Metrodata Electronics is benefitting from increasing mobility, which has started to boost its higher margin solutions and consulting business. Valuations are attractive and it’s in a net cash position.
Abbott Laboratories (ABT US): Beat-And-Raise Q2; Nutrition Drags; Full-Year EPS Guidance Raised
- Abbott Laboratories (ABT US) reported strong Q2 results, thanks to higher-than-expected COVID-19 test-related sales of $2.3 billion. However, base business remained muted due to nutrition product recall and manufacturing shutdown.
- FreeStyle Libre revenue grew 19% y/y to $1.1 billion in the quarter, with a global user base exceeding 4 million. Abbott received FDA approval for FreeStyle Libre 3 system.
- The company has raised 2022 EPS guidance 4% to $4.90 and ahead of consensus. COVID testing revenue guidance was also raised by 36% to $6.1 billion.
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