Investment Rating - The report assigns a 12-month rating of "Neutral" to Brinker International Inc [2][15]. Core Insights - The report highlights a strong sales performance in F4Q with revenues of $1.21 billion, exceeding consensus estimates of $1.16 billion, but notes a disappointing adjusted EBITDA of $141.8 million compared to the expected $144.7 million [2]. - The guidance for FY25 includes projected revenues of $4.55-4.62 billion, adjusted EPS of $4.35-4.75, and capital expenditures of $195-215 million, which are mixed compared to consensus expectations [2]. - The report anticipates a negative market reaction due to lower-than-expected earnings flow-through despite strong sales, as well as FY25 EPS guidance falling below investor expectations [2]. Summary by Sections Financial Performance - F4Q adjusted EBITDA was $141.8 million, missing consensus of $144.7 million, with restaurant margins at 15.2% versus the expected 15.5% [2]. - Revenues for F4Q were $1.21 billion, surpassing the consensus of $1.16 billion [2]. - Adjusted EPS for F4Q was $1.61, below the consensus estimate of $1.72 [2]. Guidance and Projections - FY25 revenue guidance is set at $4.55-4.62 billion, compared to the consensus of $4.49 billion [2]. - Adjusted EPS guidance for FY25 is $4.35-4.75, below the consensus of $4.80 [2]. - Capital expenditures are projected at $195-215 million, slightly above the consensus of $193.1 million [2]. Market Expectations - The report suggests that the stock may react negatively due to the disappointing earnings flow-through and lower-than-expected EPS guidance for FY25 [2]. - The focus for the upcoming earnings call will likely be on traffic and sales trends, as well as further details on FY25 guidance [2].

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].