In today’s briefing:
- Peijia Medical (9996.HK) Vs Venus MedTech (2500.HK) Vs CardioFlow (2160.HK)-Pain Points and Solution
- ICICI Bank – Continued Improvement
- CLFD: Dropping Coverage, 32% Return in 4 Days
- SIS: New Business Segments Will Drive Growth In Earnings and Price
- TTB: Focusing on Quality Growth
- RS: Rising for Sustainable Growth in 2022
- SYNEX: 4Q21 Net Profit Will Be an All-Time High
Peijia Medical (9996.HK) Vs Venus MedTech (2500.HK) Vs CardioFlow (2160.HK)-Pain Points and Solution
- Venus MedTech (2500 HK) is taking the lead in TAVR industry, but Peijia Medical (9996 HK) has advantages in development progress of future products. So, the market pattern is not yet determined.
- The high cost of TAVR surgery is the main reason for lower-than-expected sales performance of related companies and low market penetration. The fierce competition would also bring more challenges.
- A good solution is to enter developing markets with CE mark, which would offer a new commercialization option and also a wider expansion beyond just European and American markets.
ICICI Bank – Continued Improvement
- ICICI reported FY 3Q22 earnings of INR 61.9 bn, increasing INR 6.8 bn (12.4%) linked quarter, driven by net interest and fee improvement and a provision cut;
- Net new NPLs continued to increase 11.4% on an annualized basis at FY 3Q22 versus INR 44.1 bn 43.7% at FY 3Q21; and
- We find that ICICI is short on reserves to the tune of INR 116 bn or just over a half year of ICICI’s core operating result.
CLFD: Dropping Coverage, 32% Return in 4 Days
- We are electing to close out our Sell Rating on Clearfield (CLFD) after an unprecedented market response to our initiation.
- In less than 4 trading days, CLFD’s stock has declined by approximately 32.3 percent
- We see less of a reason to maintain coverage when the market has priced in for the business risks we had originally highlighted.
SIS: New Business Segments Will Drive Growth In Earnings and Price
- Maintain BUY rating with a new TP of Bt50 (+10% from last TP) based on 19.7xPE’22 (+2.5SD historical 5-Year PE) due to positive prospects from new cloud and cybersecurity segments
- We rerate PE target to 19.7xPE’22 from 18.1xPE’22 to factor in upside from change in market valuations. While SIS trades at 16.2xPE’22,SYNEX and COM7 trade at an average of 35.5xPE’22
- •Expect earnings to grow 28% YoY in 22E, off the backs of new high-margin and high-demand cloud and cybersecurity segments.
TTB: Focusing on Quality Growth
- We reiterate our BUY rating with a target price at Bt1.60. Our BUY call reflects (1) steady growth ahead; (2) adequate reserves against new NPLs, and (3) compelling valuation
- The bank will concentrate its strategic efforts on improving the quality of its growth and bolstering its capital position in the face of uncertainty
- TTB expects modest lending growth ahead in 2022 with a focus on the retail market expansion
RS: Rising for Sustainable Growth in 2022
- We believe RS’s 2022E target revenue at Bt5.1bn (+31% from our 2021E forecast) is a bit optimistic given a slower-than-expected recovery in people purchasing power during post-COVID-19. However
- Our expectation over earnings recovery in 2022E will be driven by 1.) an absence of heavy SG&A expense allocation after key product launch(Camu- C) in 2021, 2.) equity income recognition
- Expect earnings in 4Q21 to reach bottom at Bt10m loss due to slower-than-expected recovery in MPC sales and Ads spending.
SYNEX: 4Q21 Net Profit Will Be an All-Time High
- We maintain HOLD rating with a TP of Bt28.40 derived from 27.0xPE’22E, (+2S.D. ten-year average). We believe that the company’s strong expected growth in 22E is largely priced in.
- We expect 4Q21 net profit to be Bt218mn (+12%QoQ), which is the company’s all time-high. All-time high revenue of Bt10.5bn (+19%QoQ),will be driven by strong sales of new Apple products
- Positive earnings growth in 2022,driven by sales in gaming devices and equipment, which are high-margin products. Gaming equipment sales come from partnerships with major gaming-related companies like Nintendo, Sony (Playstation),Razer.
Related tickers: ICICI Bank Ltd (ICBK.NS), Clearfield Inc (CLFD.OQ), SiS Distribution (Thailand) PCL (SIS.BK), TMBThanachart Bank (TTB.BK), RS PCL (RS.BK), Synnex Thailand (SYNEX.BK)
Before it’s here, it’s on Smartkarma
