Pan-Asia Index Rebalances/ Events/ Delta One, Periscope Analytics

Brian Freitas

Pan-Asia Index Rebalances/ Events/ Delta One

Periscope Analytics

Periscope Analytics focuses on event-driven trades across Asia Pacific and provides comprehensive, timely and systematic coverage of index changes to major Asia Pacific indices in a structured manner.

The analysis includes forecasted inclusions and exclusions to all major Asian indices that have significant amount of tracking assets, including estimates of passive buy/sell flow on the stocks. The service also provides commentary and impact of market consultations, ground rule changes, and other events (IPOs, spin-offs, M&A) that could lead to index changes and passive flow.

Periscope Analytics works with multi-strategy hedge funds, proprietary trading firms, stat arb trading groups and long-only investors that invest and trade in the Asia Pacific region with the data being used to trade index rebalances, avoid pre-positioning and passive flow, and to time entry into and exit from stocks.

Event-Driven Trades Across Asia Pacific

Index Rebalance

<ul>
<li>
<a href="https://www.smartkarma.com/entities/metro-pacific-investments-co" target="_blank" data-smartkarma-citation="entities:1054:1" rel="noopener">Metro Pacific Investments Co (MPI PM)</a> has announced that the public float of the stock will drop to 2.78% following the Tender Offer.</li>
<li>
<a href="https://www.smartkarma.com/entities/metro-pacific-investments-co" target="_blank" data-smartkarma-citation="entities:1054:1" rel="noopener">Metro Pacific Investments Co (MPI PM)</a> shares are expected to be suspended from 26 September. That could see <a href="https://www.smartkarma.com/entities/bloomberry-resorts-corp" target="_blank" data-smartkarma-citation="entities:17961:1" rel="noopener">Bloomberry Resorts (BLOOM PM)</a> added to the <a href="https://www.smartkarma.com/entities/philippines-stock-exchange-psei-index" target="_blank" data-smartkarma-citation="entities:22912:1" rel="noopener">PCOMP INDEX</a> on 25 September.</li>
<li>There will be large passive inflows to <a href="https://www.smartkarma.com/entities/bloomberry-resorts-corp" target="_blank" data-smartkarma-citation="entities:17961:1" rel="noopener">Bloomberry Resorts (BLOOM PM)</a> as well as flows from active managers that track the <a href="https://www.smartkarma.com/entities/philippines-stock-exchange-psei-index" target="_blank" data-smartkarma-citation="entities:22912:1" rel="noopener">PCOMP INDEX</a>.</li>
</ul>



Metro Pacific Investments Co (MPI PM) has announced that the public float of the stock will drop to 2.78% following the Tender Offer.

Metro Pacific Investments Co (MPI PM) shares are expected to be suspended from 26 September. That could see Bloomberry Resorts (BLOOM PM) added to the PCOMP INDEX on 25 September.
There will be large passive inflows to Bloomberry Resorts (BLOOM PM) as well as flows from active managers that track the PCOMP INDEX.


PCOMP Index Rebalance Preview: MPI Delisting Could See Bloomberry Added

<ul>
<li>Based on data to the close on 27 April, we do not expect any changes to the <a href="https://www.smartkarma.com/entities/philippines-stock-exchange-psei-index" target="_blank" data-smartkarma-citation="entities:22912:1" rel="noopener">Philippines Stock Exchange PSEi Index (PCOMP INDEX)</a> at the August rebalance.</li>
<li>However, the <a href="https://www.smartkarma.com/entities/metro-pacific-investments-co" target="_blank" data-smartkarma-citation="entities:1054:1" rel="noopener">Metro Pacific Investments Co (MPI PM)</a> tender offer and voluntary delisting will open up an index spot that will need to be filled.</li>
<li>At the current time, <a href="https://www.smartkarma.com/entities/bloomberry-resorts-corp" target="_blank" data-smartkarma-citation="entities:17961:1" rel="noopener">Bloomberry Resorts (BLOOM PM)</a> is the highest ranked non-index constituent and is the most likely replacement.</li>
</ul>


Based on data to the close on 27 April, we do not expect any changes to the Philippines Stock Exchange PSEi Index (PCOMP INDEX) at the August rebalance.
However, the Metro Pacific Investments Co (MPI PM) tender offer and voluntary delisting will open up an index spot that will need to be filled.
At the current time, Bloomberry Resorts (BLOOM PM) is the highest ranked non-index constituent and is the most likely replacement.


PCOMP Index Rebalance Preview: MPI Tender Offer Opens Up an Index Spot

Global Gaming and Casinos Industry Specialist, Casino Business Review LLC

Howard J Klein

Global Gaming and Casinos Industry Specialist

Casino Business Review LLC

Extensive experience in marketing and development in the Asian gaming market

Global Gaming and Casinos Industry

Equity Bottom-Up

<ul>
<li>Last August 13th we urged investors to take a hard look at the spurt in the Philippine gaming market as soon as covid related shutdowns ended. Bloomberry traded at 7.1php.</li>
<li>We reiterated our bullish view this past November 13th at 9.7php.</li>
<li>Price at writing has fallen back to 7.50 indicates that conviction in the Philippine gaming recovery has not yet been recognized by investors in the space.</li>
</ul>


Last August 13th we urged investors to take a hard look at the spurt in the Philippine gaming market as soon as covid related shutdowns ended. Bloomberry traded at 7.1php.
We reiterated our bullish view this past November 13th at 9.7php.
Price at writing has fallen back to 7.50 indicates that conviction in the Philippine gaming recovery has not yet been recognized by investors in the space.


Bloomberry Resorts: Flagging the Philippine Casino Market's Fastest Recovery in All of Asia

Equity, Bottom-up Analyst, Investics Research

Sameer Taneja

Equity, Bottom-up Analyst

Investics Research

It is important to note that the information provided by Investics Research is based on publicly available data and own knowledge, which has been gathered and analyzed from a variety of sources. While every effort has been made to ensure the accuracy and completeness of the information provided, it is not guaranteed to be free from errors or omissions. All forecasts and estimates are based on information that has been obtained from public sources that are considered to be reliable. The sources include but are not limited to, company announcements, exchange filings, presentations, etc. Investics does not guarantee the accuracy and completeness of the forecasts, estimates, and/or other information.

Equity Bottom-up Research

<ul>
<li><span>The <a target="_blank" rel="noopener">ICTSI (ICT PM)</a>, the largest container port terminal operator in the Philippines (also with a global presence), trades at 17x PE, 9x EV-EBITDA trailing, with a dividend yield of ~3.2%.</span></li>
<li>The company operates container terminals efficiently, boasting EBITDA and net margins of 65% and 31%, respectively, and improving ROCE metrics exceeding 20% (averaging 14% over the past decade).</li>
<li>The company demonstrates strong pricing power in a challenging global environment, presenting an opportunity to explore further if additional market corrections occur.</li>
</ul>


The ICTSI (ICT PM), the largest container port terminal operator in the Philippines (also with a global presence), trades at 17x PE, 9x EV-EBITDA trailing, with a dividend yield of ~3.2%.
The company operates container terminals efficiently, boasting EBITDA and net margins of 65% and 31%, respectively, and improving ROCE metrics exceeding 20% (averaging 14% over the past decade).
The company demonstrates strong pricing power in a challenging global environment, presenting an opportunity to explore further if additional market corrections occur.


ICTSI (ICT PM): Terminal Operator, Serial Grower With Pricing Power, 20% ROCE, 30% Net Margins

<ul>
<li>
<a href="https://www.smartkarma.com/entities/digiplus-interactive-corp" target="_blank" data-smartkarma-citation="entities:23060:1" rel="noopener">DigiPlus Interactive (PLUS PM)</a> reported robust Q1 FY25 results, driven by an increase in MAUs to 7.5 million (6.5 in Q4). The company maintained its market share at ~45%.</li>
<li>Net margins expanded 200 bps QoQ (to 18.2%), as the company benefited from a 500 bps reduction in its share of GGR to PAGCOR. </li>
<li>The stock has increased by &gt;400% since January 2024, but it trades at 14.1x FY25 PE, with growth catalysts from the Philippines and Brazil expected in the future. </li>
</ul>



DigiPlus Interactive (PLUS PM) reported robust Q1 FY25 results, driven by an increase in MAUs to 7.5 million (6.5 in Q4). The company maintained its market share at ~45%.
Net margins expanded 200 bps QoQ (to 18.2%), as the company benefited from a 500 bps reduction in its share of GGR to PAGCOR. 
The stock has increased by &gt;400% since January 2024, but it trades at 14.1x FY25 PE, with growth catalysts from the Philippines and Brazil expected in the future. 


DigiPlus Interactive (PLUS PM): Galloping Away Into A Strong Q2 FY25

Philippines

Bloomberry Resorts Corp is a holding company for its subsidiaries which provide lodging and leisure services. The Subsidiaries operates and develops, tourist facilities, casinos, and hotel and amusement-themed projects.

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Bloomberry Resorts (BLOOM PM)

PCOMP Index Rebalance Preview: MPI Delisting Could See Bloomberry Added

Following the tender offer, MPI's public float will drop to 2.78% and the last trading day is expected to be 26 Sep. Bloomberry Resorts could be...

Brian Freitas

PCOMP Index Rebalance Preview: MPI Tender Offer Opens Up an Index Spot

The MPI tender offer and voluntary delisting could see Bloomberry Resorts added to the PCOMP. Passive trackers will need to buy a lot of stock and...

Brian Freitas

Bloomberry Resorts: Flagging the Philippine Casino Market's Fastest Recovery in All of Asia

Bloomberry's Solaire property and its two new ones imminently to come reflect a vitality of recovery in the Philippine gaming market speedier than...

Howard J Klein

ICTSI (ICT PM): Terminal Operator, Serial Grower With Pricing Power, 20% ROCE, 30% Net Margins

We initiate coverage on the ICTSI PM, the largest container port operator in the Philippines, with a global presence. The company has a stellar...

Sameer Taneja

DigiPlus Interactive (PLUS PM): Galloping Away Into A Strong Q2 FY25

We summarize the strong results posted by (PLUS PM) DigiPlus Interactive and our concall with the management. The stock trades at 14.1x FY25 P/E,...

Sameer Taneja

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