Stock research on global mid-cap companies

Evaluate Research

Evaluate Research provides institutional quality stock research on small-cap and  mid-cap companies on a global basis, thus helping connect investors with the company.

At Evaluate Research, we provide free of cost to all investors a 20-25 page Initiation Report which evaluates in great detail all aspects of the company:  growth opportunities, catalysts, business description, competitive positioning, SWOT analysis, risks, etc.  In addition, we determine specific price targets for the company based on detailed 5-year complete forecasts of financial statements including IS, BS, CF, ratios, etc.  Finally, whereas many sell-side brokers offer sketchy and irregular ongoing maintenance research of companies, if not outright dropped or termination of coverage, at Evaluate Research we systematically monitor and regularly publish Update Notes covering quarterly earnings, major corporate events, etc.

All of the research reports are broadly and freely disseminated globally to leading Fund Managers and analysts who invest specifically in mid-size equities, and also on leading investment information platforms including: Bloomberg, Thomson Reuters, FactSet etc.

Stock research on global mid-cap companies, Evaluate Research

Equity Bottom-Up

<p>Buy-rated Hywin Holdings [NASDAQ: HYW; US$6.83; $190 million market cap]&nbsp;reported a solid set of results for the fiscal 2nd&nbsp;Half [ended June], in terms of both income statement growth as well as key client metrics. &nbsp;Given weak global financial markets and slowing GDP growth, the results have easily surpassed competitors and outperformed our expectations. Full-year revenue and EPS were both a couple percent above our published estimates. &nbsp;Amazingly, the YoY growth for the 2nd&nbsp;Half were better than that of the 1st&nbsp;Half, despite the global economic environment being increasingly much more uncertain as time progresses.</p>
<p>We are reiterating our Buy-rating on Hywin, and our unchanged US$12.00 ADS target suggesting over 70% upside. &nbsp;The stock continues to trade at compelling “deep value” levels with a P/E of 5.5x on trailing/actual FY 6/2022 reported earnings, as well as 5.6x and 4.8x on our 6/2023 and 6/2024 forecasts. &nbsp;Hywin had US$78 million in unrestricted net cash [not including restricted cash &amp; customer deposits, with zero debt] as of June-end, or US$2.79 per share which is equal to 41% of the current stock price. &nbsp;This helps to significantly mitigate downside risk, in our opinion, and produce very favourable risk-reward for investors. &nbsp;We recently had a positive meeting with a Senior Director of Hywin, and this reinforced many of the key tenets of our thesis – further details in our report.</p>

Buy-rated Hywin Holdings [NASDAQ: HYW; US$6.83; $190 million market cap]&nbsp;reported a solid set of results for the fiscal 2nd&nbsp;Half [ended June], in terms of both income statement growth as well as key client metrics. &nbsp;Given weak global financial markets and slowing GDP growth, the results have easily surpassed competitors and outperformed our expectations. Full-year revenue and EPS were both a couple percent above our published estimates. &nbsp;Amazingly, the YoY growth for the 2nd&nbsp;Half were better than that of the 1st&nbsp;Half, despite the global economic environment being increasingly much more uncertain as time progresses.
We are reiterating our Buy-rating on Hywin, and our unchanged US$12.00 ADS target suggesting over 70% upside. &nbsp;The stock continues to trade at compelling “deep value” levels with a P/E of 5.5x on trailing/actual FY 6/2022 reported earnings, as well as 5.6x and 4.8x on our 6/2023 and 6/2024 forecasts. &nbsp;Hywin had US$78 million in unrestricted net cash [not including restricted cash &amp; customer deposits, with zero debt] as of June-end, or US$2.79 per share which is equal to 41% of the current stock price. &nbsp;This helps to significantly mitigate downside risk, in our opinion, and produce very favourable risk-reward for investors. &nbsp;We recently had a positive meeting with a Senior Director of Hywin, and this reinforced many of the key tenets of our thesis – further details in our report.

HYWIN [HYW]: +27% EPS Growth, 4.8x P/E. 41% Net Cash, Secular Growth