In today’s briefing:
- Shimano (7309): Bumpy
- Citi’s Well-Off Retail Clients May Not Travel Meekly to Axis Bank
- Chongqing Zhifei Biological Products (300122.CH) – WHO’s One-Dose HPV Vaccine Regimen & The Outlook
- Legend Biotech Corp (LEGN US): Carvykti Approval Is the Silver Lining Amid Uncertainty of Delisting
- Tesla (TSLA): Shanghai’s Lockdown Killing Whole Chinese Automobile Supply Chain
Shimano (7309): Bumpy
- Giant Manufacturing (9921 TT) , one of Shimano’s top customers, is reportedly having a production issue and can only sort it out by the end of this year.
- Shimano Inc (7309 JP) is no longer Japan-centric but a global company with customers all over the world.
- Low valuation gives an illusion that it is cheap historically but expects a bumpy road ahead.
Citi’s Well-Off Retail Clients May Not Travel Meekly to Axis Bank
- Post announcement of the acquisition of Citibank India’s consumer finance unit, Axis Bank has outperformed the market
- However, Axis Bank shareholders need to be more cautious about whether the acquisition will deliver the returns that the market is expecting.
- Competitors who either did not bid or lost out in the acquisition are focusing on poaching Citibank’s premier customers.
Chongqing Zhifei Biological Products (300122.CH) – WHO’s One-Dose HPV Vaccine Regimen & The Outlook
- Under the current policy in China, any minor changes to vaccine doses require a series of clinical data support and registration changes. So, WHO’s recommendation won’t affect Zhifei’s short-term performance.
- The increasing domestic competing HPV vaccines in the future would be a big threat to Zhifei’s agency business. Its self-developed products may not be strong enough to compensate.
- The performance in 2022 is expected to be solid before real challenge comes in 2024. The valuation logic and outlook won’t be brighten unless there’s new breakthrough in agency business.
Legend Biotech Corp (LEGN US): Carvykti Approval Is the Silver Lining Amid Uncertainty of Delisting
- Legend Biotech Corp (LEGN US) received FDA approval for its first product Carvykti in February as a fifth-line treatment of relapsed or refractory multiple myeloma.
- Label expansion of Carvykti for earlier line of multiple myeloma treatments should expand addressable market, thereby increasing peak sales opportunity to $5 billion from initial expectation of $1.5 billion.
- The U.S. Securities and Exchange Commission has added Legend to their delisting watchlist last week. The company needs to release required evidence by May 3 to stay listed.
Tesla (TSLA): Shanghai’s Lockdown Killing Whole Chinese Automobile Supply Chain
- Many automakers said they suspended their productions due to the lockdown of Shanghai.
- A vice minister of Industry and Information Technology announced that 666 companies will resume production in Shanghai.
- We believe it is hard to resume the automobile soon because of the complication of a vehicle and the traffic jams around Shanghai.
Related tickers: Shimano Inc (7309.T), Axis Bank Ltd (AXBK.NS), Chongqing Zhifei Biological Products (300122.SZ), Legend Biotech Corp (LEGN.O), Tesla Motors (TSLA.OQ)
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