The latest in enterprise and strategic research are at your fingertips below, summarized in Gaussian's research monitor.
Medical Park and Memorial are reportedly planning to list their shares through public offerings next year. Private equity plans to divest stakes are no surprise but the valuations may fail to impress the sellers. GEM sector valuations are uninspiring as disappointed investors have reduced exposure since the beginning of 2016.
Read MoreThe consensus earnings are understated by at least 10% on 2017, and more on 2018. Looking at the turnaround in economic activity and seeing strong earnings momentum not yet fully recognized by the market, we reckon share price gains will continue in 2H17. The earnings momentum alone warrants 25% upside.
Read MoreThe treatment of intellectual property, corporate identity, brands and other enterprise intangibles is fairly relaxed in the countries which collectively make up the region we call Emerging Europe. The rather careless attitude towards or lack of interest in intangible assets undermines equity values particularly in Greece, Turkey, Russia, and the Balkans.
Read MoreWith Turkish GDP growth outstripping its peers, consumer price inflation steadily improving between now and the year end, and the market not having a strong view on either, Turkish assets should outperform global benchmarks. We project the Turkish Lira yield curve to shift down by at least 200bp before December. The equity valuations should also improve 20-25% by year-end.
Read MoreThis is a short story of Finansbank and its founder. The story is mostly based on facts and our experience with these two banks as an analyst over the years.
Read MoreThe purpose of this note is to show how dramatic the Chinese excess capacity is and how hard it will be to narrow the output gap in the near future unless some capacity is shut down. One way of looking at the output gap in China is to measure any excess capacity relative to population.
Read MoreThe December quarter results came in marginally better than consensus. The sources of positive surprise to earnings include higher-than-expected yields on CPI-linkers, NPL reversals and somewhat better-than expected F&CI. However, full year results have demonstrated yet again that Turkish banks continue to struggle to grow earnings with profits falling two years in a row.
Akbank, Garanti and TSKB top the equity valuation tables with price to book multiples above 1x. (2015). The remaining banks are trading at least 20% below book. Halkbank's current valuation implies excessively high cost of equity, which is out of sync with its peers.
Read MoreIHH reported decent sales growth across regions. The margins are somewhat weaker due to investments. RM2.3B in December quarter revenues registering 18% growth. EBITDA reads RM614.3M (+5%). Earnings posted 74% YoY growth to RM415.8B on several one-off items and exceptional gains. Full fiscal year 2015 revenues and EBITDA grew by 15% and 10% YoY to RM8.5B and RM2.1B, respectively. Investments are broadly on track to meet targets.
Read MoreTurkish banks' earnings growth has declined steadily since 2005. From as high as 40-50% pa between 2003-05, the EPS growth first fell towards mid-teens by 2010, then slowed to low single digits from 2010 and finally turned negative in 2014/2015. We identify three reasons for the deceleration in pace of earnings growth. The no.1 reason is the decline in the level of inflation hurting core business margins. The second reason is the lower annual volatility in CPI itself, which has had an adverse impact on trading incomes. The third reason is tighter regulation over credit.
Read MoreLokman Hekim reported one of its strongest quarters since Van hospitals were acquired. December quarter sales grew 24.0% on the year, driven by growth in inpatient admissions at Van hospitals and improvement in patient traffic at Sincan, Lokman's flagship. The company also reported solid margin gains with EBITDA margin widening by 394bp on the year.
Read MoreIndia is a bright spot in emerging markets attracting interest from global healthcare providers. IHH Healthcare Berhad and Life Healthcare are among the most prolific investors in India. The industry should post 20%+ sales CAGR to 2019. We discuss how acquisitions are changing the industry and prospects for future capex.
Read More2015 was a busy year both with consolidation and capacity investments led by IHH and South African providers. Capex should slow down to allow demand to mature in 2016 but the backlog of investments remains rich. There is little change in industry margins despite investments. Recap of investments, M&A valuations in India, Myanmar and UAE are in the main text.
Read MoreStrong dollar, weaker demand in emerging markets, shrinking repo balance sheets at U.S. institutions and excess capacity in China should force Fed tone down the rate hike rhetoric.
Read MoreOutflows continue with some shuffling. We are not out of the woods by any stretch of imagination; and it is too early to say the worst is over. EM investors will be compelled to trade stocks.
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