Equity Bottom-Up: Geo Energy Resources, Trend Micro Inc, MTR Corp, New Horizon Health, Misumi Group, JD.com Inc (ADR), Renewable Energy Group and more

For our next Corporate Webinar we are glad to welcome Geo Energy Resources (GERL SP) CEO and Executive Director, Kum Hon Tung.

In the upcoming webinar, Kum Hon will share a short company presentation, after which he will engage in a fireside chat with Smartkarma Insight Provider, Nicolas Van Broekhoven. The Corporate Webinar will include a live Q&A session.

The Corporate Webinar will be hosted on Tuesday, 8 March 2022, 17:00 SGT.

Geo Energy Group is a coal mining group, established in 2008, with offices in Singapore and Indonesia and production operations in Kalimantan, Indonesia. The group has transitioned from being primarily a coal mining services provider to a coal producer that subcontracts its coal mining operation.

Geo Energy has been listed on Singapore Stock Exchange’s main board (Stock Code: RE4) since 2012 and is part of the Singapore FTSE index.

• The demand for cybersecurity products and services has been expanding in Japan amidst an increase in frequent and sophisticated cyber-attacks in the country.
• Due to shortage of in-house IT professionals with knowledge on cyber security, there has been growing demand for outsourced managed security services in Japan.
• We have identified Trend Micro Inc (4704 JP) as our top pick in the Japanese cyber security market as there is further potential for top line and margins to expand.

• Zero COVID policy calls for another lockdown in Hong Kong as the number of cases rises.
• A reduction in the number of services will help to cushion the blow but may not help the overall grim prospect of the firm. 
• Lower traffic is negative for MTR Corp (66 HK)transport revenue as well as the commercial business from the station which combined make up to 50% of total revenue.

• New Horizon Health (6606 HK) has made some improvements based on 2021 preliminary financial data. The newly launched UU Tube also enriches the product line. 
• However, the industry is still at the early stage. In front of fierce competition, ColoClear’s bottleneck is obvious. The cheaper products (Pupu Tube, UU Tube) could have more market acceptance. 
• Based on our analysis, our view is that the Company may rebound temporarily, but it is too early for a complete reversal.

• The shares have dropped back nearly 30% and their valuation is now reasonable. Guidance looks reasonable, but recent sales and profit trends show weakness.
• Factory Automation, Die Components and the VONA e-commerce business have all recovered.
• A new era of higher profitability may be at hand, but in view of market and economic uncertainty, approach with caution.

• We believe revenue will grow by 23% YoY in 4Q21 and by 18% in 2022.
• We believe JD is the most promising direct-sales e-commerce company in China.
• However, short video apps have been taking advertising market share from e-commerce apps.

• REGI being bought by CVX for $61.50 per share in cash
• We believe the valuation of approximately $3 billion is high enough to deter another bidder from surfacing
• At $61.50, REGI’s stock returned 265.4 percent since we initiated coverage on April 24, 2019, and 44.9 percent on a year-to-date basis