STOCKS TELEGRAPH

Author: ST Staff

  • Li Auto Inc. (LI) stock was down today: Things you need to know

    Shares of Li Auto Inc. (LI) stock were down in today’s pre-market session.LI stock price fell by 4.55% to drop at $25.60 a share at the time of this writing.LI stock seemed green at the previous closing with a 2.05% gain and $26.82 per share price.It seems that LI Auto is involved in the Hong Kong listings along with Nio Inc. and XPeng Inc. according to the IFR report.Let’s take a closer look at LI stock.

    What’s happening?

    Li Auto Inc. (LI) is the designer, developer, manufacturer, and seller of smart electric sports vehicles in China.LI stock is more focused on Hong Kong listings these days and is currently in touch with Goldman Sachs and UBS for this purpose.Li Auto was listed in the US in July 2020 which points that LI stock has not good track of two financial years of regulatory compliance thus not eligible for a secondary listing in the Hong Kong exchange.In response to this condition, LI is considering to opt the option of Hong Kong dual primary listing that does not require the two-year track records rather it requires additional disclosures.

    Recent Activities of Li Auto.

    On March 8, 2021, LI stock did announce the adoption of the 2021 Share Incentive Plan by its board of directors and compensation committee.The maximum number of Class B ordinary shares under the 2021 plan was 108,557,400 at that time.FurthermoreLi Auto granted a performance-based option to Mr. Xiang Li, the CEO of Li Auto, to purchase the 108,557,400 class B ordinary shares under the 2021 share incentive plan.

    The financial look of LI stock.

    On February 25, 2021, Li Auto announced its fourth quarter and financial full-year results of 2020 in which LI stock generated RMB4.15 billion total revenue in the fourth quarter which was 65.2% high as compared to the third quarter of 2020.Gross profit was surged by 45.9% to RMB724.6 million in the fourth quarter while the gross margin was 17.5% in the fourth quarter of 2020.

    Conclusion:

    LI stock was falling today after gaining in the previous open market session.LI Auto has shown positive results in the fourth-quarter earnings report and under the leadership of Mr. Xiang Li, Li Auto is optimistic to grow further in the future.

  • Share Price Of Chinese Fintech company, Jiayin Group (JFIN) surged by over 77% today. Here’s what happened

    Share Price Of Chinese Fintech company, Jiayin Group (JFIN) surged by over 77% today. Here’s what happened

    Stock price of Jiayin Group (NASDAQ:JFIN) soared by approximately 77% today due to NFT speculation. Shares prices have increaseda staggering 226% in five days as investors predict that these companies will increase in valuation due potential NFT investments which relates with their business model.

    NFTs allows you to buy and sell a unit of data or digital files such as art, video, and audio and keep track of their ownership using blockchain, which represents the digital ledger technology, where each NFT can depict a unique digital item.

    Certain NFTs have already been sold for Millions of dollars, which has further increased investor interest. JFIN has not directly been involved in the NFT space, however investors expect their current business model to have immense potential to shift towards NFTs, increasing their stock price significantly.However no official statement has been reported by the company yet.

    Jiayin Group Inc before NFT speculation

    JFIN Sponsored ADR and stocks surged 26.9% finishing the last trading session at approximately $5.42. The rise came on an impressive volume with a higher number of stocks being traded vs an ordinary session.

    Coronavirus has also provided a solid boost to the Fintech sector. Increasing demands for cashless transactions as well as a soaring number of online banking users has further strengthened JFIN stance in the financial technology world. Surge in the stock price can also be associated with increasing optimism over Jiayin Group’s expansion capability in China’s ever-growing fintech market.

    Conclusion

    Jiayin Group (NASDAQ:JFIN) operates in the lucrative field of financial technology connecting individual debtors to individual creditors. Recent buzz on social media has suggested thatthe company is expected to get into the NFT space, however the official stance of the company is still unknown.  JFIN’s long-term revenue growth and rising stock price has proven to be a success and an expected investment in NFT’s has peaked investor expectation for the company.

  • Oramed Inc. (ORMP) stock swells up during pre-market session. Here’s to know why:

    Oramed Inc. (NASDAQ: ORMP) stock surged by 13.32% in last trading closed whereas the ORMP stock rises by 58.86% during pre-market trading session after Oramed announced its successful development of oral vaccine for COVID-19 together with Premas Biotech. Oramed is a pharmaceutical company deals with the development of oral drug delivery systems especially an oral insulin for the treatment of type 2 diabetes.

    What is happening?

    The Oral vaccine developed by Oramed and Premas Biotech has been a great achievement due to its efficacy. The vaccine is able to produce antibodies just after using it once. Now with the intention to make it successful in the market, Premas, Oramed and other shareholders have formed an Oravax Medical Inc. Both Oramed and Premas has provided license to Oravax for the development of oral COVID-19 vaccines.

    How does the vaccine work?

    Upon trial it has been observed that, Oravax COVID-19 capsule’s single dose is efficient enough to generate antibodies. Oravax vaccine provides systematic immunity through:

    • Immunoglobulin G (IgG) which is the most common antibody in blood and bodily fluids that provides protection against viral infections.
    • And Immunoglobulin A (IgA) provides protection to the respiratory and gastrointestinal tracts against any infection.

    The Premas protein-based VLP (Virus like particle) vaccine works in a way that it generates triple layer of protection against the SARS CoV-2 virus Spike, Membrane, and Envelope targets. At normal to high doses, the vaccine candidate is also not harmful, efficient, and well tolerated also it generates high titres of neutralizing antibodies. Premas’ proprietary D-CryptTM technology is used to build the VLP, which is highly expansible and can be generated in large quantities.

    COVID-19 is currently the most known problem faced by people around the world, and every country is looking for a reliable vaccine to save its people. In this situation, Oramed and Premas Biotech producing an efficient oral vaccine is a huge progress for them. This is possibly the reason behind the rise in ORMT stock price.

  • Here’s why Fulcrum Therapeutics Inc. (FULC) performed well

    Fulcrum Therapeutics Inc. (FULC) recently presented new data and information regarding imaging biomarkers and clinical outcome assessments for facioscapulohumeral muscular dystrophy (FSHD). FULC stock closed $11.98 on 22nd March, increasing 5.46% compared to the $11.36 close last week on 19th March.

    Overview of Fulcrum Therapeutics, Inc.

    Fulcrum Therapeutics Inc., headquartered in Cambridge, Massachusetts, is a clinical-stage biopharmaceutical company. Fulcrum has focused itself on making products that help in improving the lives of people that have genetically defined diseases, a medical area that is overlooked in the United States. The candidate products of Fulcrum are losmapimod and FTX-6058. Losmapimod is a small moleculein the second phase of a clinical trial for the cure and treatment of facioscapulohumeral muscular dystrophy. This rare muscle-wasting disorder leads to disability and significant physical impairments. The FTX-6058 is also a tiny molecule, but it is designed to upregulate fetal hemoglobin in patients with beta-thalassemia and sickle disease and is currently in phase-1 clinical development. Fulcrum was launched with a vision to revolutionize the course of genetically defined conditions by treating them at their root causes.

    Presentation of new data and information

    On 18th March 2021, Fulcrum Therapeutics Inc. presented new data and information regarding  imaging biomarkers and clinical outcome assessments for facioscapulohumeral muscular dystrophy (FSHD) at the online clinical and scientific conference of Muscular Dystrophy Association (MDA) 2021. The presentation included disease severity evaluation and the progression with WB-MSK-MRI (Whole Body Musculoskeletal Magnetic Resonance Imaging). AMRA medical and fulcrum have developed WB-MSK-MRI analysis algorithm and protocol to measure fat replacement of skeletal muscle in FSHD to use in multi-site clinical trials.

    FULC financial performance

    Fulcrum announced its fourth-quarter earnings on 3rd March 2021. Fulcrum reported a quarterly loss of $0.64 per share compared to the consensus estimate of a loss of $0.73. A year ago, Fulcrum reported a loss of $0.71 per share in the prior year. This quarterly report is a representation of an earnings surprise of 12.33%. It was expected that FULC would report a loss of $0.66 in the previous quarter, delivering a surprise of -6.06% and producing an actual loss of $0.70. Fulcrum has outperformed the market and has surpassed the consensus earnings per share in two of the last four quarters. Fulcrum has also reached the estimated revenue of 153.60% and reported $4.23 million for the fourth quarter. FULC stock closed $11.98 on 22nd March, increasing 5.46% compared to the $11.36 close last week on Friday.

  • QuantumScape Inc. (QS) stock rises during ore-market session. Here’s what’s happening:

    QuantumScape Inc. (NASDAQ: QS) stock gained by 8.34% in the last trading close whereas the QS stock price declines by 8.52% in the pre-market trading session. The rise and decline in QS stock has been observed after QuantumScape announced its underwritten public offering of Class A common stock. QuantumScape deals with production of solid state lithium metal batteries for electric cars. The American Company, aims to bring advancement in energy storage to ensure a sustainable future.

    Motive of QuantumScape behind this public offering

    On March 22, QuantumScape started off an underwritten public offering comprised of 13,000,000 shares of its Class A common stock offered by QuantumScape. Under this offering, the underwriters will have a 30-day option to buy up to an additional 1,950,000 shares of Class A common stock from QuantumScape. The offering is dependent on market conditions, and there is no assurance to whether or when it will be completed, or as to the size or terms of the offering.

    The motive of this offering is that QuantumScape will utilize the money generated through this offering:

    • Firstly QuantumScape is looking forward to make a larger QS-0 pre-pilot line than the already announced one.
    • To finance its full share of equity contributions for its joint project with VW for the previously disclosed 20GWh expansion of QS-1 joint manufacturing facility.
    • And lastly for working capital and general corporate purposes.

    Meanwhile,

    Goldman Sachs & Co. LLC and Morgan Stanley are working together to joint lead book running managers for this offering. As well as, Deutsche Bank Securities is also working as an additional book-running manager.  It has also been declared that the offering will only be finalized through the means of a prospectus.

  • China Jo-Jo Drugstores Inc. (CJJD) stock rises during pre-market session. Let’s find out why:

    China Jo-Jo Drugstores Inc. (NASDAQ: CJJD) stock showed a decline of 0.89% in the last trading close whereas the CJJD stock price rises by 8.11% during pre-market trading session. There is no recent news hitting the media related to the rise in CJJD stock price. Whereas the change in CJJD stock might be followed by the financial results of third quarter fiscal 2021 that is announced on February 12 by China Jo-Jo drugstore. CJJD is a well-known retailer and wholesale distributor of health care and drugstore products through both online and offline ways, in China. CJJD also provides healthcare services.

    Financial results for Third quarter fiscal 2021

    • China Jo-Jo Drugstore has generated the revenue of $35.54 million for the third quarter ended December 31, 2020. The revenue has increased by 6.5 % since it was $33.36 million for the third quarter of fiscal 2020. The increase in revenue is mainly due to the growth in online pharmacy business.
    • Gross Profit is recorded as $8.09 million for the third quarter fiscal 2021 as compared to $7.28 million for the same period of last year. This means that the gross profit of CJJD has increased by 11.0%.
    • The Gross margin for CJJD has also increased by 1 %. For the third quarter fiscal 2021 the gross margin is 22.8% whereas it was 21.8% for the same time period of last year.
    • Lastly the net loss for CJJD was $6.29 million or $0.15 per basic and diluted share for the three months ended on December 31, 2020. For the previous year the net income was $0.46 million or $0.02 per basic and diluted share.

    Conclusion

    Company’s year to date financial results shows that CJJD has made progress.Therefore it is expected that they will continue to grow in the same manner especially due the online pharmacy system because after the COVID-19 pandemic situation it is extremely convenient for people to get what they need without stepping out.

  • TurkcellIletisimHizmetleri (TKC) Stock Price Dropped By 14% Today. Here’s What happened

    TurkcellIletisimHizmetleri (TKC) Stock Price Dropped By 14% Today. Here’s What happened

    Turkcell Iletisim Hizmetleri (NYSE: TKC), the leading Turkish mobile phone operator and telecom company, most usually known as”Turkcell”, plummeted immensely on the New York Stock Exchange, dropping approximately 14.6% as of 22nd March.

    The huge decline in stock price is not solely due to Turkcell’s incompetence. The whole Turkish currency devalued due to high levels of Inflation and plunged a staggering 15% in value. This happened as President Recep Tayyip Erdogan removed the governor of CBRT – Central Bank of Turkey’s Republic. Even after the currency’s initial recovery, the Turkish Lira was stagnant on a 12.5% tumble on its value. Hence, investors expect high inflation levels if the money supply remains rampant and the central bank does not change the monetary policy.

    Turkcell Before Inflation and what the future holds

    Before the sudden devaluation of the Turkish Lira, TKC’s low point in a52-weektime framewas a ballpark figure of $4.36 per stock, with $6.36 as the highest value in the 52 weeks. In those 52 weeks,thecompany’s stock trading volume soared to 443709 sharesa day, which showed a higher amount of shares traded compared to its competitors. Having a market capitalization of $5.01B and a total of 18,999 employees, TKC had intrigued confident investors who expected the company to skyrocket in the future.

    However, President Erdogan’s’Authoritarian’ approach in running the economy, such as imposing capital controls and putting a cap on trading Lira, has shown a halt in investments in the Turkish based company declining the stock price of the company listed on NYSE.

    Conclusion

    TKC offered a better-than-expected outlook for the current quarter and anticipated a decent profit, however devaluation of the Turkish Lira had plummeted TKC stocks substantially, spooking out stakeholders of the company due to unstable and unfavorable conditions for investing.

  • Kansas City Stock (KSU) surges due to a merger; Here are the details

    Kansas City Stock (KSU) surges due to a merger; Here are the details

    The KSU stock has surged by 0.38% in the market at the current price of $224.16. The major movement that is happening is in the pre-market where it jumped by more than 15%.

    This jump in prices comes following the news of the merger between the train-operating company Kansas City Southern (KSY) and the railway company known as Canadian Pacific Railway.

    The first ever railway network between Canada, US and Mexico.

    This merger is expected to create the first ever freight railway network between Canada, US and Mexico. Both of these companies are two of the largest North American railroad and train operating companies. The Merger took place on Sunday where the Canadian Pacific has agreed to purchase Kansas City Southern (KSU) for approximately $29 billion.

    The Canadian railway has accepted to take into consideration the $3.8 billion debt of KSU as part of the $29 billion deal package. This will value the KSU shares at $275 apiece. However investors need to keep in mind that the deal is subject to approval by the US Surface Transportation Board (STB).

    JP Morgan upgrades rating of KSU to “Overweight”

    From KSU stock point of view, another is exciting news is that JP Morgan analysts have given an upgrade rating from “Neutral” to “Overweight”. This upgraded rating suggests that the scope of this deal contains vast future prospects for good business and fundamental operations.

    What makes this deal a game changer

    This holds true especially due to the fact that the revised NAFTA trade deal between USA, Mexico and Canada is taking place. The merger deal holds more significance in relation to this USMCA trade deal. This is because the trade integration between the three countries will require for efficient supply chain network between the three countries and the merged railway network could be the potential answer for it.

    The merged company would then be employing a workforce of 20,000 people operating on a 20,000 miles of railway network. The estimated annual sale generation will be estimated to be around $8.7 billion annually. Canadian Pacific’s debt will jump to about $20 billion.Furthermore, as part of this transaction Canadian Pacific has decided to issue 44.5 million new shares.

    After the completion of the merger, the combined company will come to be known as Canadian Pacific Kansas City (CPKC). CPKC will then have a joint network in Missouri, Kansas city. This interchange point would allow speeding up of the shipment and cargo delivery service with fewer roadblocks.

    Future prospects of this deal

    The deal may create some roadblocks of its own as the companies may fight antitrust regulations while shareholders and investors may face lengthy reviews (due to merger) for their share payouts. However, both companies are focusing on helping the shareholders on this by getting Canadian Pacific to create an independent trust. This trust would acquire shares of KSU ahead of regulatory actions and then the combined company would acquire that trust.

    This plan would shorten the review process for the shareholders however this plan and this whole deal is hedged on the hopes that Surface Transportation Board will sign off on the deal.

  • Shares of Yunji Inc. (YJ) stock were down today. Why did it happen?

    Shares of Yunji Inc. (YJ) stock were down today. Why did it happen?

    Yunji Inc. (YJ), an eCommerce platform in China, today reported its fourth quarter and fiscal year 2020 unaudited results after which the YJ stock price fell by 9.13% to drop at $2.39 a share as of this writing. YJ stock seemed red at the previous closing with a 3.31% drop and $2.63 per share price. Let’s analyze the earnings to understand the drop.

    Fourth-quarter Results

    • Yunji Inc generated RMB1,327.4 million revenue in the fourth quarter of 2020 which shows a significant decrease as compared to RMB2,449.4 million in the fourth quarter of 2019.
    • Merchandise sales revenue was RMB1,165.2 representing a 45.2% decrease as compared to the same period in 2019.
    • The membership program recorded RMB0.04 million as compared to RMB145.9 million in the same period of 2019.This decrease was mainly due to Yunji’s ongoing refinement of its membership enrollment system.
    • Marketplace business revenue was RMB151.7 million representing a decrease of 10.3%
    • The total cost of revenues of YJ stock wasRMB986.6 million representing a 46.8% decrease as compared to RMB1,854.9 million in the same tenure of the previous year while operating expenses were RMB367.9 million with a 44.5% decrease as compared to the fourth quarter of 2019.

    The financial year 2020 Results

    • Full 2020-year revenue of the YJ stock dropped to RMB5,530.3 million as compared to RMB11,672.0 million in 2019.
    • Merchandise sales revenue was RMB4,829.4 million representing a 54.2%decrease over the year.
    • Membership program generated RMB42.4 million revenue while it was RMB776.8 million in 2019, thus representinga 94.5% decrease over the year.
    • marketplace business revenue surged by 92.3% to RMB599.9 million in 2020 as compared to RMB311.9 million in 2019.
    • The total cost of revenues of YJ stock was RMB3,940.0 million with a 57.4% drop over the year while operating expenses dropped toRMB1,720.9 million as compared to RMB2,746.0 million in 2019.
    • Yunji stock suffered RMB97.5 million loss from its operations while this loss was RMB254.8 million in 2019.
    • RMB151.7 million of net loss was recorded in 2020 as compared to RMB123.8 million in 2019.

    Past Developments

    On January 29, 2021,YJ stock launched its first private label food brand, Li Ba Tian, in response to the increasing demand for children’s food in China.Furthermore, in the lunar year period, Yunji launched many campaigns for the growth of its e-commerce business.

    Conclusion:

    Yunji stock is facing bearish sentiment as far as the stock market is concerned. Yunji revenues showed a significant decrease in 2020 as compared to prior year revenue. Hence it is better to analyze Yunji’s balance sheet, its fundamentals, and future growth deeply before making any decision about it.

  • Why RLX Technology Inc. (RLX) stock is falling today?

    Why RLX Technology Inc. (RLX) stock is falling today?

    Shares of RLX Technology Inc. (RLX) fell over 41.11%. RLX stock price was down by 33.61% to drop $12.92 a share at the time of this writing. It seems that RLX stock happened to be down after the spread of the news that Chinese regulators are planning to introduce laws to govern the sales of e-cigarettes in line with ordinary cigarettes.RLX stock was green at the previous closing with a gain of 4.85% and  $19.46 per share price. Let’s dive deeply to explore the current scenarios.

    What’s happening?

    Two of China’s regulators namely, the Ministry of Industry and Information Technology (MIIT) and China’s State Tobacco Monopoly Administration recently posted the draft that explains the rules and regulations for the sale of E-cigarettes. These new laws might affect the sales of E-cigarettes as well as other tobacco products thus lowering the potential revenue in this fastest growing industry.

    In 2019, the Chinese regulators had forbidden the sale of e-cigarettes through an e-commerce platform that greatly affected the growth of this business and many brands in response to that restriction shifted themselves from online seller to offline seller.

    In the first week of March 2021, RLX appointed Professor Youmin Xi to be an independent director to its board of directors. Professor Youmin is now serving as a member of the audit committee, compensation committee, and corporate governance committee of RLX Technology’s board.

    About RLX Technology

    RLX Technology Inc. (RLX) is the leading brand of e-vapors products in the People’s Republic of China.RLX operating areas include research, development, manufacturing, and distribution of e-vapors products in China. RLX Technology is founded in 2018 and headquartered in Beijing, China.

    Conclusion:

    The recent news about the governing laws for the sale of e-cigarettes and other tobacco products has added pain to the RLX stock as RLX Technology stock fell more than 41.11% in Monday’s current market session. Let’s see how the RLX management will react to this situation and its fourth quarter and fiscal year 2020 results to be announced on March 26, 2021, will further decide the fate of the stock.