In today’s briefing:
- SEBI’s New Measures to Tackle IPO Call Auction Manipulation
- Ohayo Japan | Mixed Message Monday
- Relief Comes to Global Supply Chain with Panama Canal Returns to Normalcy
- #17 India Insight: Fintech Dominance, Electronics Boom, Tata Steel Challenge
- Japan Drugstores: More M&A as Sector Attacks Supermarkets and Conbini
- Semiconductor WFE Q124 Revenues, China’s Share & What Are They Doing With All Those Tools?
- Oilfield Services: Still Way Too Cheap
- Furniture/Furnishings Weekly – June 24, 2024
- Biopharma Week in Review – June 24, 2024
- The Highlights – Cannabis News for the Week Ending June 21, 2024
SEBI’s New Measures to Tackle IPO Call Auction Manipulation
- SEBI shortens IPO pre-open call auction sessions, introduces random closure, and enhances surveillance to combat manipulation.
- These measures aim to improve price discovery, transparency, and prevent artificial inflation of demand and supply in IPOs.
- SEBI’s proactive steps bolster market integrity, making IPO processes fairer and more reliable for investors.
Ohayo Japan | Mixed Message Monday
- The Dow Jones Industrial Average gained 260 points (0.7%) to extend its winning streak to five days
- Nvidia’s 6.7% drop dragging the Nasdaq down by 1.1% and putting Nvidia into correction territory.
- Shimamura’s March-May 2024 profits hit a record high, driven by strong sales of high-end private brands
Relief Comes to Global Supply Chain with Panama Canal Returns to Normalcy
- The ACP has expedited the increase of the maximum authorized draft for vessels to forty-five feet in line with rising water levels and the start of the rainy season.
- Adjustments to draft and transit schedules are driven by higher-than-expected water levels in Gatun and Alajuela Lakes since May 26.
- ACP is implementing range of water-saving initiatives and planning infrastructure investments such as a new reservoir, to enhance capacity and resilience against climate variability.
#17 India Insight: Fintech Dominance, Electronics Boom, Tata Steel Challenge
- India’s fintech startups to dominate future unicorns, contributing $11.4 billion value
- Electronics manufacturing sector projected to hit $500 billion valuation by 2030
- Tata Steel might expedite furnace closures amid strike and job cut disputes
Japan Drugstores: More M&A as Sector Attacks Supermarkets and Conbini
- The big merger between Welcia and Tsuruha is part of a wider concentration of market share in the drugstore sector as the leaders take on supermarkets and even convenience stores.
- Japan’s drugstores have morphed into multiple sub-formats, selling food and other FMCG products in ever higher ratios, creating massive pressure for other sectors.
- The net effect is the emergence of a powerful new retail sector that is impacting all other FMCG retail formats and even lifestyle categories like cosmetics.
Semiconductor WFE Q124 Revenues, China’s Share & What Are They Doing With All Those Tools?
- Global semiconductor equipment billings amounted to $26.4 billion in Q124, down 6% QoQ and down 2% YoY
- China’s annual WFE spending has roughly doubled between 2020 and 2023 to $36.6 billion
- A combination of China’s WFE customers including new entrants and a high failure rate among semi startups means that spending has not yet translated into corresponding increase in semi output
Oilfield Services: Still Way Too Cheap
- We anticipate oil prices to remain within the US$80-$90 range, which will sustain the current uptick in E&P capital expenditure and foster a strong environment for oilfield services firms.
- Our peer group continues to trade at deep-value multiples; currently at 4.5x/4.0x 2024E/2025E EBITDA.
- We highlight a few of our favourite small-cap names that we believe have significant upside as we move into H2/24.
Furniture/Furnishings Weekly – June 24, 2024
- SCS and LZB both reported strong earnings. Steelcase gained 7.2% for the week after posting strong orders and margins in 1QFY25 with adjusted EPS of $0.16, beating consensus of $0.10 and our estimate of $0.11. LZB surged 12.4% after posting adjusted 4QFY24 EPS of $0.95 versus consensus of $0.70.
- It was a mixed week for the Water Tower Research Furniture/Furnishings indexes.
- The Commercial/Contract Furniture Index was up 3.3% for the week, while the Residential Manufacturers & Suppliers Index was down 1.1% and the Home Goods Retailers Index was down 1.2%.
Biopharma Week in Review – June 24, 2024
- We are initiating our Biopharma Week in Review.
- In this report, we will review coverage items and last week’s biopharma news for meaningful clinical data, regulatory updates, research innovation, and M&A.
- We published an initiation of coverage on Ainos, Inc. (AIMD). Click here for the full report.
The Highlights – Cannabis News for the Week Ending June 21, 2024
- US cannabis stocks climbed higher last week, with the US cannabis MSOS ETF gaining 5.15%, while the global YOLO ETF lost 2.04%.
- Among the larger MSOs, Verano (NEO: VRNO, OTCQX: VRNOF) had the best week, jumping 9.84%.
- Verano rose after sharing it authorized a $50 million share repurchase program on Monday.
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