CK Hutchison reported Q1 results this morning, but without a much-anticipated Vodafone-Three merger announcement (albeit Hutchison gave the very strong signal that this could come soon). In this Quick Take note we review retail trends in the UK and Italy mobile markets, and the read-across that this could have for BT, VMO2, Vodafone and Telecom Italia.
CK Hutchison reported 2022 results this morning, but without a much-anticipated Vodafone-Three merger announcement (albeit Hutchison gave the very strong signal that this could come soon). In this quick take note, we review retail trends in the UK and Italy mobile markets, and discuss whether Three UK has a sustainable position in the UK market.
Vodafone and Hutchison have confirmed that they are in talks regarding a combination of their UK entities, with a 51/49 equity split respectively, which we think could be a significant step forward for Vodafone and an important part of our Buy case.
HUTCHMED has ambitious near- and medium-term growth plans, centred on its novel oncology products, to initially create a sizeable commercial organisation addressing Greater China whilst also building the appropriate infrastructure to address key global markets. The first product wave - Elunate (fruquintinib), Orpathys (savolitinib) and Sulanda (surufatinib) - are expected to post FY22 revenues of $160-$190m in China. The second and third waves of innovative programmes are progressing through dev...
HUTCHMED continues its transition from a development stage company into a global commercial organisation. Two products are now marketed successfully by the China Oncology/Immunology sales platform, with a third by a partner. These assets are in late-stage development ex-China, with several global pivotal studies underway and potential to complete first registration filings across multiple regions in 2023, followed by first launch in 2024. A second development wave, focused on haem-oncology produ...
BRITISH AMER TOBACCO (MY), a company active in the Tobacco industry, now shows a lower overall rating. The independent financial analyst theScreener confirms the fundamental rating of 2 out of 4 stars. However, the market behaviour deterioration triggered a risk requalification, which can be thus described as moderately risky. theScreener believes that increased risk justifies the general evaluation downgrade to Neutral. As of the analysis date April 5, 2022, the closing price was MYR 12.42 and ...
CK Hutchison reported results for its Telecoms group this morning, followed by a management webcast. In this brief note, we review retail trends in the UK and Italy mobile markets, and discuss implications for O2D from declining wholesale revenues in Italy.
CK HUTCHISON HOLDINGS (HK), a company active in the Real Estate Holding & Development industry, is favoured by a more supportive environment. The independent financial analyst theScreener has confirmed the fundamental rating of the title, which shows 3 out of 4 stars, as well as its unchanged, defensive market behaviour. The title leverages a more favourable environment and raises its general evaluation to Positive. As of the analysis date February 22, 2022, the closing price was HKD 58.10 and i...
The independent financial analyst theScreener just lowered the general evaluation of HOSHIZAKI (JP), active in the Durable Household Products industry. As regards its fundamental valuation, the title now shows 1 out of 4 stars while market behaviour can be considered moderately risky. theScreener believes that the title remains under pressure due to the loss of a star(s) and downgrades its general evaluation to Slightly Negative. As of the analysis date October 29, 2021, the closing price was JP...
Full Article at IIR has reaffirmed its Recommended rating for PIA after undertaking a review post the appointment of a new Portfolio Manager, Harding Loevner. The full report can be found on the IIR website. On 26 July 2021, Pengana International Equities Limited (PIA) announced a fully franked dividend of 1.35 cents per share for the June quarter. This represents an 8% increase on the March quarter dividend and takes the total dividends declared for FY21 of 5.1 cents per share, fully franked....
HUTCHMED is transitioning from a development stage company into a global commercial organisation. Successful creation of a dedicated China Oncology sales platform, now marketing two products, reveals the path for global development. FY21 guidance for Oncology/Immunology revenues of $110m-130m (FY20 $30.2m) highlights the magnitude and trajectory of this shift, with approval of further products and indications on the near-term horizon. The impressive success of the discovery platform has generate...
A director at CK Hutchison Holdings Ltd bought 577,000 shares at 57.746HKD and the significance rating of the trade was 67/100. Is that information sufficient for you to make an investment decision? This report gives details of those trades and adds context and analysis to them such that you can judge whether these trading decisions are ones worth following. Included in the report is a detailed share price chart which plots discretionary trades by all the company's directors over the last two ...
Hutchison China MediTech (Chi-Med) has achieved several significant milestones recently, with the early halt for efficacy of surufatinib in the SANET-p study being the latest. Surufatinib will be the first wholly owned asset to be approved and planning for the required commercial infrastructure is well advanced. The other clinical pipeline assets are also progressing well. Notably, savolitinib, partnered with AstraZeneca, is seemingly set to carve out a valuable role in managing Tagrisso’s lif...
Trinity Delta view: This fund raise has been well flagged and should be welcomed. The original plan outlined in April 2019 for an additional listing in Hong Kong to raise equity finance and sell down CK Hutchison’s stake (held through its HHHL subsidiary), to below the strategically important 50%, was one of several future funding options open to Chi-Med. These also included the prospect of enhanced revenues from Elunate following NRDL inclusion and near-term China approvals/launches, plus pos...
Trinity Delta view: Chi-Med’s April 2019 announcement emphasised two key objectives: (1) a Hong Kong listing and global raise, and (2) the reduction in CK Hutchison’s shareholding to below 50%. Today’s announcements indicate that the second of these objectives has been achieved just ahead of end-H119. The closing of the secondary placement should improve Chi-Med’s liquidity and, while it may have been assumed that these events would occur in tandem, the decoupling of the two objectives s...
We revise Hoshizaki’s stewardship rating to Poor from Standard. We are concerned that the company lacks sufficient discipline and corporate governance, as Hoshizaki postponed its earnings report twice in fiscal 2018. However, we retain our wide moat and stable moat trend ratings, as we believe that Hoshizaki’s economic moat, which stems from the strong brand name and its nationwide distribution channels, is intact. As Hoshizaki forecasts that the investigation by the third-party committee wi...
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