Index Rebal/Special Situations, Quiddity Advisors

Janaghan Jeyakumar, CFA

Index Rebal/Special Situations

Quiddity Advisors

Pan-Asia Catalysts/Events

Index Rebalance

<ul>
<li>In this insight, we take a look at the names leading the race to become ADDs/DELs for the T50 and T100 Indices for the June 2024 index rebal event.</li>
<li>According to our estimates, there are currently no expected index changes for the T50 index.</li>
<li>However, there could be five changes for the T50 and one of the expected DELs  <a href="https://www.smartkarma.com/entities/bizlink-holding-inc" target="_blank" data-smartkarma-citation="entities:6779:1" rel="noopener">Bizlink Holding (3665 TT)</a> could also be deleted from the TDIV index. </li>
</ul>


In this insight, we take a look at the names leading the race to become ADDs/DELs for the T50 and T100 Indices for the June 2024 index rebal event.
According to our estimates, there are currently no expected index changes for the T50 index.
However, there could be five changes for the T50 and one of the expected DELs  Bizlink Holding (3665 TT) could also be deleted from the TDIV index. 


Quiddity Leaderboard T50/​​​100 Jun 24: Bizlink TDIV Deletion Deep in the Money

Asia Pac ECM and Index Rebal, Shenton Research

Ke Yan, CFA, FRM

Asia Pac ECM and Index Rebal

Asia Pac IPO & Placement Research, China Biotech

DZT Research

DZT Research is an independent Asia Pacific equity specialist. Our quantitative research covers index rebalancing flows, alongside exchange data analytics accross Asia Pacific. On the equity capital markets side, we focus on Asia Pacific ECM, especially biotech and TMT. Our lead analyst is frequently cited by international media.

Quantitative Analysis

<ul>
<li>We analyzed the changes in short interest of TWSE Stocks as of Jan 13th which has an aggregated short interest worth USD12.1bn.</li>
<li>We tabulate league table for top short by value and short as multiple of ADT, as well as weekly increases &amp; decreases in short value, short as multiple of ADT.</li>
<li>We highlight short interest changes in Delta Elec, Cathay Financial, Gigabyte Tech.</li>
</ul>


We analyzed the changes in short interest of TWSE Stocks as of Jan 13th which has an aggregated short interest worth USD12.1bn.
We tabulate league table for top short by value and short as multiple of ADT, as well as weekly increases &amp; decreases in short value, short as multiple of ADT.
We highlight short interest changes in Delta Elec, Cathay Financial, Gigabyte Tech.


TWSE Short Interest Weekly (Jan 13th): Delta Elec, Cathay Financial, Gigabyte Tech

Pan-Asia Catalysts/Events, Quiddity Advisors

David Blennerhassett

Event-Driven

<ul>
<li>
<a href="https://www.smartkarma.com/entities/yorkey-optical-international-cayman" target="_blank" data-smartkarma-citation="entities:12407:1" rel="noopener">Yorkey Optical International Cayman (2788 HK)</a>'s Scheme Document is now out, with the Court Meeting to be held on the 22 February.</li>
<li>
<a href="https://www.smartkarma.com/entities/asia-optical-co-inc" target="_blank" data-smartkarma-citation="entities:11214:1" rel="noopener">Asia Optical (3019 TT)</a> is offering HK$0.999/share, a 75.3% premium to the undisturbed close. David Webb has given an irrevocable undertaking to vote his shares in favour of the Scheme </li>
<li>This transaction is all stitched up. The Independent Financial Advisor considers the terms to be fair and reasonable. </li>
</ul>



Yorkey Optical International Cayman (2788 HK)'s Scheme Document is now out, with the Court Meeting to be held on the 22 February.

Asia Optical (3019 TT) is offering HK$0.999/share, a 75.3% premium to the undisturbed close. David Webb has given an irrevocable undertaking to vote his shares in favour of the Scheme 
This transaction is all stitched up. The Independent Financial Advisor considers the terms to be fair and reasonable. 


Yorkey Optical (2788 HK): Court Meeting On 22 Feb. IFA Says Fair

<ul>
<li>
<a href="https://www.smartkarma.com/entities/asia-optical-co-inc" target="_blank" data-smartkarma-citation="entities:11214:1" rel="noopener">Asia Optical Co (3019 TT)</a> has <a href="https://www1.hkexnews.hk/listedco/listconews/sehk/2022/0104/2022010401243.pdf%20https://www.smartkarma.com/discussion/121157" target="_blank" rel="noopener">bumped</a> its Scheme Offer Price for <a href="https://www.smartkarma.com/entities/yorkey-optical-international-cayman" target="_blank" data-smartkarma-citation="entities:12407:1" rel="noopener">Yorkey Optical International (2788 HK)</a> to HK$0.999/share, a 13.5% increase over its original Offer Price of HK$0.88/share.</li>
<li>David Webb, who previously indicated the original price was inadequate, has given an irrevocable undertaking to vote his 49.588mn shares (10.4% of Independent Scheme Shares) in favour of the Scheme  </li>
<li>This transaction is now done. The Scheme Document is expected to be dispatched on the 25 January suggesting payment early April.</li>
</ul>



Asia Optical Co (3019 TT) has bumped its Scheme Offer Price for Yorkey Optical International (2788 HK) to HK$0.999/share, a 13.5% increase over its original Offer Price of HK$0.88/share.
David Webb, who previously indicated the original price was inadequate, has given an irrevocable undertaking to vote his 49.588mn shares (10.4% of Independent Scheme Shares) in favour of the Scheme  
This transaction is now done. The Scheme Document is expected to be dispatched on the 25 January suggesting payment early April.


Yorkey Optical (2788 HK): Webb Backs Asia Optical's Bump

<ul>
<li>After reassessing <a href="https://www.smartkarma.com/entities/yorkey-optical-international-cayman" target="_blank" data-smartkarma-citation="entities:12407:1" rel="noopener">Yorkey Optical International (2788 HK)</a>'s property interest, Jones Lang LaSalle's revised NAV increases to $0.94/share, from $0.818/share as at June 30, compared to the cancellation price of $0.88/share.</li>
<li>David Webb, whose holding in Yorkey is sufficient to disrupt the Scheme vote, assessed an increase in the NAV of HK$0.365/share when properties were booked to market.</li>
<li>Note: the Offer Price has still not been declared final.</li>
</ul>


After reassessing Yorkey Optical International (2788 HK)'s property interest, Jones Lang LaSalle's revised NAV increases to $0.94/share, from $0.818/share as at June 30, compared to the cancellation price of $0.88/share.
David Webb, whose holding in Yorkey is sufficient to disrupt the Scheme vote, assessed an increase in the NAV of HK$0.365/share when properties were booked to market.
Note: the Offer Price has still not been declared final.


Yorkey Optical (2788 HK): JLL Meets Asia Optical And Webb Halfway... Sort Of...

Taiwan

Asia Optical Co., Inc. manufactures and markets electro-optical products.  The Company's products include optical components, cameras, fax machines, and contact image sensor (CIS) electronic products.  Asia Optical sells its products in Taiwan and exports worldwide.

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Asia Optical Co (3019 TT)

Quiddity Leaderboard T50/100 Jun 24: Bizlink TDIV Deletion Deep in the Money

While Bizlink has appeared as an expected DEL multiple times in our past Leaderboards, the conviction level for Bizlink's T100 deletion has never...

Janaghan Jeyakumar, CFA

TWSE Short Interest Weekly (Jan 13th): Delta Elec, Cathay Financial, Gigabyte Tech

We analyzed TWSE short interest report for the past week and highlight short interest changes in Delta Elec, Cathay Financial, Gigabyte Tech.

Ke Yan, CFA, FRM

Yorkey Optical (2788 HK): Court Meeting On 22 Feb. IFA Says Fair

Trading at a 3.0%/18.3% gross/annualised spread. That looks like the right level. It may narrow a spread following the release of this Scheme Doc....

David Blennerhassett

Yorkey Optical (2788 HK): Webb Backs Asia Optical's Bump

This transaction is done. I'd probably pay up to ~HK$0.97 or a 3.0%/11.4% gross/annualised spread, assuming early April completion. However, this...

David Blennerhassett

Yorkey Optical (2788 HK): JLL Meets Asia Optical And Webb Halfway... Sort Of...

I still believe Asia Optical needs to bump, at least at, or slightly above the reassessed NAV, even if Webb considers that revised NAV falls short.

David Blennerhassett

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Quiddity Leaderboard T50/​​​100 Jun 24: Bizlink TDIV Deletion Deep in the Money

While Bizlink has appeared as an expected DEL multiple times in our past Leaderboards, the conviction level for Bizlink's T100 deletion has never...

Janaghan Jeyakumar, CFA

TWSE Short Interest Weekly (Jan 13th): Delta Elec, Cathay Financial, Gigabyte Tech

We analyzed TWSE short interest report for the past week and highlight short interest changes in Delta Elec, Cathay Financial, Gigabyte Tech.

Ke Yan, CFA, FRM

Yorkey Optical (2788 HK): Court Meeting On 22 Feb. IFA Says Fair

Trading at a 3.0%/18.3% gross/annualised spread. That looks like the right level. It may narrow a spread following the release of this Scheme Doc....

David Blennerhassett

Yorkey Optical (2788 HK): Webb Backs Asia Optical's Bump

This transaction is done. I'd probably pay up to ~HK$0.97 or a 3.0%/11.4% gross/annualised spread, assuming early April completion. However, this...

David Blennerhassett

Yorkey Optical (2788 HK): JLL Meets Asia Optical And Webb Halfway... Sort Of...

I still believe Asia Optical needs to bump, at least at, or slightly above the reassessed NAV, even if Webb considers that revised NAV falls short.

David Blennerhassett

Quiddity Leaderboard T50/100 Jun 24: Bizlink TDIV Deletion Deep in the Money