Investment Rating - The investment rating for Cemig is Neutral with a 12-month price target of R$10.40 per share [5][6][23]. Core Insights - Cemig reported net revenue ex-construction of R$8,177 million for 2Q24, reflecting a 3% year-over-year increase, which aligns with UBS estimates and consensus [2][9]. - Adjusted EBITDA for the same period was R$1,726 million, which is 5% lower year-over-year and 4% below UBS estimates, while net income increased by 36% year-over-year to R$1,689 million, primarily due to a provision reversal of R$584 million [2][3][10]. - The company plans to ramp up capital expenditures significantly, with a guidance of R$6.2 billion for 2024, following a capex of R$1.4 billion in 2Q24 [2][3]. Financial Metrics - The volume of energy billed in the distribution business increased by 3% year-over-year, driven by a 7% increase in the residential segment and a 3% increase in the industrial segment [3]. - Consolidated costs and expenses rose by 2% year-over-year, with notable increases in personnel costs (17%) and materials and third-party services costs (11%) [3][9]. - The company announced a dividend payment of R$1.4 billion, resulting in a 4.2% dividend yield based on the last close [2][3]. Valuation and Forecast - The valuation of Cemig is based on a DCF FCFE model, with key assumptions including a long-term energy price of R$178/MWh and a cost of equity of 14.1% [5][6]. - Forecasts indicate a price appreciation of -6.3% and a dividend yield of 9.8%, leading to an expected stock return of 3.5% [11]

First Read Cardinal Health Inc First Take: Improved FY25 Guidance and LT Commitment to GMPD Conveyed Loaded Print: Improved FY25 Guide, Steady GMPD Outlook and More Aggressive Repos Should Buoy Sentiment Along with F4Q results, CAH tweaked preliminary FY25 financial expectations offered last quarter. Key guidance highlights include: (1) FY25 EPS range of $7.55-7.70 (prior: at least $7.50) on better Pharma EBIT growth of +1-3% ( prior: at least 1% - at midpoint adds ~$0.06); (2) lower interest and other (at ...

Online Games: Over August 14, 2024 Earnings Review Tencent Holdings (700 HK, BUY, TP: HK$485.00) BUY | --- | |-------------------------| | Target Price: HK$485.00 | | | | 52-Week High/Low (HK$) | | Market Cap (US$mn) | | Shares Outstanding (mn) | | 3-mth ADTV (US$mn) | | Free Float (%) | | Major Shareholder (%) | | Naspers | | Ma Huateng | | Lau Chi Ping Martin | | | | | Key Changes DiffNew Old RatingBUYBUYN/A Target Price (HK$)485.000%485.00 2024E EPS (RMB)23.1421.348% 2025E EPS (RMB)23.6622.933% 2026E EPS ...

Investment Rating - The investment rating for Viridian Therapeutics Inc. (VRDN) is "Buy" with a 12-month price target of $25.00, indicating an upside potential of 70.1% from the current price of $14.70 [9]. Core Insights - Viridian Therapeutics Inc. (VRDN) is well-positioned with its VRDN-003 product, which is expected to have best-in-class potential in the subcutaneous (SC) treatment of thyroid eye disease (TED) due to its dosing regimens and autoinjector properties [5][8]. - SLRN has refocused its pipeline strategy to prioritize lonigutamab for TED, moving directly to Phase 3 development by Q1 2025, which increases competitive pressure on VRDN-003 [2][3]. - VRDN plans to initiate Phase 3 trials for VRDN-003 in August 2024, with topline data expected in the first half of 2026, ahead of SLRN's timelines [3][5]. Summary by Sections Pipeline Strategy - SLRN has discontinued investments in HS/PsA and reduced its workforce by 33% to extend its cash runway to mid-2027, focusing solely on lonigutamab for TED [2]. - Early Phase 1/2 data for lonigutamab showed promising results, but VRDN-003's half-life extension and autoinjector features are seen as significant commercial advantages [2][5]. Clinical Development - VRDN-003's Phase 3 REVEAL-1/REVEAL-2 trials are set to begin in August 2024, with topline data expected in 1H26 and a BLA filing by the end of 2026 [3][5]. - SLRN's decision to skip Phase 2b/3 studies and move directly to Phase 3 could intensify competition, but VRDN-003 is anticipated to deliver data from its primary endpoints before SLRN [3][5]. Safety and Efficacy - Updates on tinnitus effects from SLRN's trials indicate that hearing adverse events are mostly transient and manageable, aligning with VRDN's observations [4][5]. - The Phase 3 studies for both VRDN and SLRN may reveal different occurrences of hearing adverse events due to their varying study durations [4].

Investment Rating - The report indicates a forecast of three more rate cuts in 2024 and one additional cut in 2025, leading to a terminal rate of 2.75% [4][8]. Core Insights - The Riksbank's Executive Board maintained the policy rate at 3.75% during the last meeting, with guidance suggesting potential cuts if inflation prospects remain favorable [4]. - Recent inflation data shows that July core inflation was 2.2% year-over-year, aligning with Riksbank's projections, while the activity picture remains subdued with a Q2 GDP decline of -0.8% quarter-over-quarter [5][7]. - The report anticipates a 25 basis point cut to 3.5% in the upcoming meeting, with expectations for further cuts in August, September, and November [8]. Summary by Sections Monetary Policy Outlook - The Riksbank's policy rate is projected to decrease to 3.33% in Q4 2024 and 2.94% in Q2 2025, reflecting a cautious approach due to global developments and economic activity slowdown [4]. - The majority of the Executive Board members are open to delivering three more rate cuts this year, citing favorable inflation prospects and a slowing economy [4]. Inflation Trends - Core inflation metrics have shown mixed progress, with July's core inflation at 2.2% year-over-year and a sequential increase of 0.37% month-over-month [5][6]. - The trade-weighted krona has remained stable since the June meeting, indicating a lack of significant volatility [6]. Economic Activity - The economic activity remains subdued, with a flash GDP print of -0.8% quarter-over-quarter for Q2, following a growth of 0.7% in Q1 [7]. - Unemployment rates have stabilized at 8.2%, and consumer confidence has shown signs of improvement, suggesting potential for economic recovery in Q3 [7].

Investment Rating - The report does not explicitly provide an investment rating for the Polish inflation outlook but indicates a more dovish long-term outlook compared to the National Bank of Poland (NBP) [3]. Core Insights - The final July inflation estimate confirmed a rise from +2.6% year-on-year (yoy) in June to +4.2% yoy in July, primarily driven by higher utility inflation, which increased from -1.6% yoy in June to +10.1% yoy in July due to the partial expiry of energy price shields [2][4]. - Food inflation also rose for the third consecutive month, from +2.5% yoy to +3.2% yoy in July, while core inflation slightly increased from +3.6% yoy to +3.8% yoy [2][4]. - The report forecasts lower-than-expected Polish inflation in the medium term, attributing this to external factors, the recent appreciation of the zloty, and favorable food prices [3]. Summary by Sections Inflation Overview - July inflation rose to +4.2% yoy from +2.6% yoy in June, with a month-on-month (mom) increase of 26.2% (seasonally adjusted, annualized) [2][4]. - Core inflation increased to +3.8% yoy in July from +3.6% yoy in June, with a mom increase of 6.6% (seasonally adjusted, annualized) [4]. Key Figures - Utility inflation surged to +10.1% yoy in July from -1.6% yoy in June, while food inflation rose to +3.2% yoy from +2.5% yoy [4]. - The report highlights significant changes in various inflation components, including a dramatic increase in electricity, gas, and other fuels, which saw a yoy increase of +10.1% [4]. Long-term Outlook - The long-term outlook remains dovish, with expectations of a temporary rebound in inflation due to the expiry of energy price caps, but overall disinflation is anticipated in the second half of 2024 [3][7].

15 Aug 2024 CMB International Global Markets | Equity Research | Company Update Tencent (700 HK) Inline 2Q24 results; games business to drive revenue growth acceleration in 2H24E Tencent reported 2Q24 results on 14 Aug: total revenue grew by 8% YoY to RMB161.1bn, in line with our/consensus estimate of RMB160.9/161.4bn; non- IFRS operating profit grew by 27% YoY to RMB58.4bn, largely in line with our estimate of RMB57.7bn; non-IFRS net income increased by 53% YoY to RMB57.3bn and was 17/18% ahead of our/cons ...

Investment Rating - The report does not explicitly provide an investment rating for the industry or Prudential plc Core Insights - Prudential plc is undergoing a customer-centric transformation driven by digital transformation, with a focus on data and artificial intelligence as key enablers while maintaining the importance of human interaction [1][3] - The company aims to enhance customer experiences through personalized, proactive, and efficient services, leveraging data-driven insights to drive sustainable growth across global markets [3][4] - AI is recognized as a transformative force in the service industry, simplifying processes, enhancing customer interactions, and improving operational efficiency [4][5] Summary by Sections Customer-Centric Transformation - Prudential is prioritizing customer-centricity by establishing a new customer function to centralize data-driven approaches and enhance customer experiences [3][6] - The company has over 18 million customers and operates in 24 markets, emphasizing the need for a sustainable business model that maximizes customer value [3][4] Role of Data and AI - Prudential has been leveraging AI and data analytics for several years to analyze vast amounts of data, enabling better decision-making and risk management [4][5] - AI applications include simplifying underwriting, detecting fraud, and enhancing customer service in call centers, which leads to faster and more accurate service delivery [4][5] Employee Empowerment and Culture Shift - The transformation requires equipping employees with the right mindset, skill set, and tool set to foster a customer-centric culture [6][7] - Prudential is investing in building a unified data platform to gain a comprehensive view of customers and ensure consistent data governance across markets [8][9] Customer Feedback and Satisfaction - The company is adopting customer satisfaction scores to assess progress in becoming more customer-centric, aiming to improve customer experiences and build trust [9] - Prudential's vision includes enriching customers' lives and achieving top quartile customer satisfaction scores by 2027 [9]

Investment Ratings - The report maintains an "Overweight" rating for the cement sector and several specific companies including Gold Cup Electric Apparatus, Weixing, Fuyao Glass, Naipu Mining Machinery, and SMICS [4][5][9][10][11]. Core Insights - The demand for electromagnetic wire is rapidly increasing, benefiting Gold Cup Electric Apparatus, which is projected to have a net profit of RMB611 million in 2024 [4]. - The cement sector is experiencing a decline in sales volume and prices, but specific regions like Tibet are seeing growth due to infrastructure projects [5]. - The chemical sector has faced a decline in the market index, but certain chemicals have seen significant price increases, indicating potential opportunities [6]. - The fund market is showing a high-risk appetite with sector rotation strategies favoring electric power, public utilities, and other sectors [8]. Summary by Sections Top Recommendations - Gold Cup Electric Apparatus (002533): OW, TP@RMB10.36 with a forecasted net profit of RMB611 million for 2024 [4]. - Weixing (002003): OW, TP@RMB14.48 with an increase in EPS forecasts [9]. - Fuyao Glass (600660): OW, TP@RMB55.58 with a revenue increase of 19.12% year-on-year [10]. - Naipu Mining Machinery (300818): OW, TP@RMB26.27 benefiting from overseas market expansion [11]. - SMICS (688981): OW, TP@RMB62.50 with raised revenue forecasts due to market recovery [11]. Sector Ratings - Cement Sector: Overweight rating maintained despite overall market decline, with specific growth in Tibet [5]. - Chemical Sector: Noted price increases in key chemicals, indicating potential investment opportunities [6]. - Fund Market: High-risk appetite with sector rotation strategies favoring specific sectors [8]. Latest Reports - Weixing's revenue and profit exceeded expectations, leading to an increase in EPS forecasts [9]. - Fuyao Glass reported strong quarterly results, maintaining its target price and rating [10]. - Naipu Mining Machinery is positioned well due to the expansion of Chinese mining companies [11]. - SMICS is benefiting from the recovery in the global consumer market, leading to revised revenue forecasts [11].

Investment Rating - The investment rating for Ganyuan Foods is maintained as BUY with a target price of RMB 69.36, indicating a potential upside of 26% from the closing price of RMB 54.90 as of August 7, 2024 [8][9]. Core Insights - Ganyuan Foods experienced a quarter-on-quarter slowdown in revenue growth in 2Q24 due to off-season effects and personnel adjustments within the distribution team. However, year-on-year growth remains strong with revenue, attributable net profit, and recurring net profit for 1H24 increasing by 26.1%, 39.3%, and 40.0% respectively [3][4]. - The company’s gross profit margin (GPM) declined by 0.6 percentage points year-on-year in 2Q24, attributed to structural changes in product sales channels and weakening economies of scale. Despite this, the company expects to increase its payout ratio, enhancing shareholder returns [5][6]. - Ganyuan Foods' classic products, including green peas, melon seeds, and flavored nuts, showed robust revenue growth, with significant contributions from membership supermarkets and bulk sales channels [4][6]. Financial Performance Summary - For 1H24, Ganyuan Foods reported revenues of RMB 1,040 million, with a net profit of RMB 170 million. In 2Q24, revenues were RMB 460 million, reflecting a 4.9% year-on-year increase [3][4]. - The company’s revenue projections for the upcoming years are as follows: RMB 2,254 million for 2024, RMB 2,714 million for 2025, and RMB 3,193 million for 2026, with corresponding net profits of RMB 380.61 million, RMB 468.71 million, and RMB 551.05 million [7][9]. - The estimated earnings per share (EPS) for 2024, 2025, and 2026 are RMB 4.08, RMB 5.03, and RMB 5.91 respectively, with a price-to-earnings (PE) ratio projected at 17x for 2024 [6][7].