In today’s briefing:
- Keyence – Strong as We Suggested
- GlobalWafers (6488.TT): Maintain Target Price at NT$880-960 for Siltronic Mergence Failed
- Hoya: Life Care Exceeds Pre-Covid Levels; Slight Upgrade to Forecasts with a Small Buyback
- Jcontentree: “All of Us Are Dead” Zombie Drama Surges to #1 in Netflix Global Charts
- Max Healthcare Institute (MAXHEALTH IN): Aggressive Expansion Amid High Occupancy to Boost Margin
- KDDI (Buy) – Follow-Up After Q3 21 Results
- Mitsubishi Motors – Further Recovery
- ASIAN: Unlock Value and Potential Growth of AAI Via IPO
Keyence – Strong as We Suggested
- Keyence’s 3Q numbers were noticeably stronger than consensus with revenue at ¥190bn (just below our estimate of ¥192bn+) vs. consensus at ¥182bn.
- OP also beat by 4.2% but was held back slightly by high SG&A.
- Nevertheless, this should move the outlook for 4Q up significantly setting up a reasonable full year beat and better prospects for next year.
GlobalWafers (6488.TT): Maintain Target Price at NT$880-960 for Siltronic Mergence Failed
- The GlobalWafers announced the deal to merge Siltronic did not get the approval by Germany government this morning. We maintain our Target Price for GlobalWafers doesn’t change at NT$880~960.
- The GlobalWafers points out that the results will not influence business activities, and the European market remains the importance for GlobalWafers.
- Comparing to 20s years ago, we think the semiconductor market has experienced a dramatic changes already.
Hoya: Life Care Exceeds Pre-Covid Levels; Slight Upgrade to Forecasts with a Small Buyback
- Hoya Corp (7741 JP) reported 3QFY03/2022 results today. Revenue grew 16.6% YoY to JPY171.3bn (vs. consensus JPY162.1bn) and OP grew 17.0% YoY to JPY53.5bn (vs. consensus JPY51bn).
- Life Care revenue which was severely impacted due to Covid-19, exceeded pre-Covid levels with a 11.7% YoY increase. IT revenue continued to maintain its momentum during the quarter.
- Hoya has slightly upgraded its full-year forecasts and also has announced a share buyback program for JPY60bn.
Jcontentree: “All of Us Are Dead” Zombie Drama Surges to #1 in Netflix Global Charts
- Jcontentree has hit a home-run with “All of Us Are Dead” zombie drama reaching number one in Netflix Inc’s global charts.
- According to Flixpatrol on the 31 January, All of Us Are Dead took the top spot in Netflix’s global popularity rankings for two consecutive days from its release.
- Jcontentree’s valuation multiples are likely to rise 20-30% or more in the coming days, driven by the global success of the All of Us Are Dead zombie drama.
Max Healthcare Institute (MAXHEALTH IN): Aggressive Expansion Amid High Occupancy to Boost Margin
- Max Healthcare Institute (MAXHEALT IN) plans to double its bed capacity with an investment of $450 million over the next four years. The company has a net debt/EBITDA of 0.2x.
- Due to its favorable market positioning, Max Healthcare demonstrates best-in-class occupancy and ARPOB. Its non-COVID occupancy was at five-month high of 82% in October.
- Despite having a big run in 2021, further stream is left in Max Healthcare shares, with upcoming capacities, business recovery, and margin expansion.
KDDI (Buy) – Follow-Up After Q3 21 Results
- We had a chat with KDDI after results last week including clarification on issues that came up on the analyst call (3G network shutdown, Q4 impacts on operating profit)
- The competitive environment in mobile looks similar to Q2 but wider distribution for sub-brands UQ (retail store presence) and Povo (first full quarter of availability) helped drive user growth
- We have updated our forecasts for Q3 results and remain at Buy
Mitsubishi Motors – Further Recovery
- MMC reported its 3QFY22 results on 31st January which saw revenues of ¥526bn (+14.6% QoQ, +39.1% YoY) and OP of ¥30.8bn.
- Revenue was in-line, only 0.3% higher than consensus estimates while OP beat consensus estimates by ¥15bn thanks to the 5.9% OPM.
- The result bodes well for the auto sector overall but weak top line and a dependence on forex have us going… meh.
ASIAN: Unlock Value and Potential Growth of AAI Via IPO
- Maintain BUY rating and roll forward valuations to FY22E, with a new target price of Bt23 (up 5% from previous TP),based on 10.3xPE’22, which is close to its 10-years historical
- Our ratings reflect positive view on pet food, frozen VAP, and aqua feed demand recovery post lockdown, and solid margin from baht weakening.
- The spin-off of AAI via IPO issuance will unlock its value and growth potential and we leave it as an upside to our TP.
Related tickers: Keyence Corp (6861.T), Globalwafers (6488.TWO), Hoya Corp (7741.T), Jcontentree Corp (036420.KQ), Max Healthcare Institute (MAXHEALTH.NS), KDDI Corp (9433.T), Mitsubishi Motors (7211.T), Asian Sea (ASIAN.BK)
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