Daily Brief United States: Samsonite, NVIDIA Corp, Dollar Index, Immix Biopharma Inc, Eli Lilly & Co, Ecolab Inc, Bristol Myers Squibb Co, Illinois Tool Works and more

• Bloomberg reports that Samsonite (1910 HK) is drawing takeover interest from several PE firms which aim to relist Samsonite in the US to draw a higher valuation. 
• A standard takeover premium (around 30%) should be sufficient due to the shareholder register. There is no single large shareholder(s) to pose an issue to an offer. 
• The probability of an offer is medium, with an offer price likely around HK$30.00. Irrespective of a binding offer, the upside remains as Samsonite trades at an undemanding valuation. 

• Luggage maker Samsonite (1910 HK) is up 11.8% today, as I type, after Bloomberg reported it is working with advisers as it studies possibilities, including going private.
• With the reopening of China and the ongoing recovery in travel globally, Samsonite’s net sales improved markedly across all regions. 1H23 profit gained 185.3% versus 1H22.
• FY23 figures should be out in the middle of next month.

• Bloomberg reported that Samsonite (1910 HK) is considering several options, including going private, and there are several suitors including from buyout firms  
• Share price has surged by 14% in the morning session. Stock is still very cheap, at 10.5x PE, 7.5x EV/EBITDA with an impressive ROE of 30%
• Our quick take values Samsonite at HKD34/share, based on its forecasted +1 year earnings multiplied to its average long-term PE of 15.5x 

• Nvidia emerges as a strong challenger in the semiconductor industry, while intel remains the dominant player
• Intel makes significant strides in its foundry business, showcasing a clear focus on advanced nodes like 18A and 14A
• Intel positions itself as a serious player in the foundry market, attracting key customers like Microsoft and building a strong ecosystem around its offerings

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• Large-Cap indexes (S&P 500, Nasdaq 100, and DJI) remain bullish, all hitting new all-time highs last week while continuing to find short-term support at their respective 20-day MAs.
• Mid-Caps (S&P 400, Russell Mid-Cap) starting another leg higher following breakouts from 2-month consolidations. Small-caps (S&P 600, Russell 2000) are likely to follow in the footsteps of large- and mid-caps.
• Small-Cap indexes have been consolidating for 2.5 months following the historic rally from late-October to late-December 2023, a healthy sign. We expect they are gearing-up for another similar move higher.

IMMX has shared a 12-month recap, capturing key clinical and regulatory events from 2023, setting the stage for an active 2024. Its lead CAR-T asset (NXC-201) is a B-cell maturation antigen (BCMA) targeting therapy for amyloid light chain amyloidosis (ALA) and multiple myeloma (MM). The latest clinical data (Phase Ib/IIa NEXICART-1 trial) showed an overall response rate (ORR) of 100% in ALA patients (n=10) and 90% in MM patients (n=50). On the regulatory front, NXC-201 received Orphan Drug designation (ODD) in February 2024 from the EMA for ALA, and in Q323 from the FDA for ALA and MM. The FDA also cleared Immix’s Investigational New Drug (IND) application in Q423, permitting NXC-201 dosing at US trial sites (NEXICART-2 trial for ALA patients). We believe this is an important development step for NXC-201, and we look forward to rolling data readouts after the start of NEXICART-2, most likely in H124.

• Eli Lilly and Company’s Q4 2023 earnings showed a year of growth and advancement for the company.
• Revenue increased by 20 percent for the full year and 28 percent for the most recent quarter, as seen in the company’s newly launched portfolio gaining momentum.
• Notably, the company received regulatory approvals for Zepbound, Jaypirca, Omvoh, Ebglyss in the EU, and an expanded label for Verzenio and two new indications for Jardiance within 2023.

• Ecolab Inc., during their latest earnings, highlighted strong growth in their fourth quarter performance for 2023, solidifying a favorable year for the company.
• Despite unstable macroeconomic conditions, the team drove value-based pricing while consistently maintaining strong business momentum.
• Their success arose from creating value for customers by enhancing operational performance, as well as reducing water and energy consumption.

• Bristol-Myers Squibb (BMS) reported a strong fourth quarter for 2023 with sales momentum in both their established and new product portfolios, showing a growth of 9% and earning nearly $10 billion in revenue.
• Multiple key brands, including Eliquis, Opdivo, Reblozyl, Opdualag, Breyanzi, Camzyos, and Sotyktu, contributed to this growth.
• In addition, BMS generated significant cash flows from operations amounting to $4.3 billion.

• Generators and machine producer, Illinois Tool Works Inc.
• (ITW) has reported a modest growth amidst the unique operational challenges faced in the fourth quarter of 2023.
• In particular, the company confronted reduced demand for capital expenditure (CapEx), lean customer inventories and a strike within the automotive industry.