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

Equity Bottom-Up

<ul>
<li>We analyse <a href="https://www.smartkarma.com/entities/champion-iron-ltd" target="_blank" data-smartkarma-citation="entities:19734:1" rel="noopener">Champion Iron (CIA AU)</a> after improvements in its operations in Q2FY26. The company destocked 477k tons and is down to 1.7 million tons to further reduce the stockpile.</li>
<li>The company also saw an improvement in its realized iron ore price (to 128 CAD/ton or 19% YoY) as it reduced its contractual arrangements for material. </li>
<li>Despite the improvement in operational performance, which will drive profitability up 52% YoY, the stock trades at 11.7x FY26 PE and is fairly valued. We prefer <a href="https://www.smartkarma.com/entities/fenix-resources-ltd" target="_blank" data-smartkarma-citation="entities:7405:1" rel="noopener">Fenix Resources (FEX AU)</a> </li>
</ul>


We analyse Champion Iron (CIA AU) after improvements in its operations in Q2FY26. The company destocked 477k tons and is down to 1.7 million tons to further reduce the stockpile.
The company also saw an improvement in its realized iron ore price (to 128 CAD/ton or 19% YoY) as it reduced its contractual arrangements for material. 
Despite the improvement in operational performance, which will drive profitability up 52% YoY, the stock trades at 11.7x FY26 PE and is fairly valued. We prefer Fenix Resources (FEX AU) 


Champion Iron Ore (CIA AU): Fairly Valued Despite Operational Improvements

Asia Pac IPO & Placement Research, China biotech, Aequitas Research

Ke Yan, CFA, FRM

Asia Pac IPO & Placement Research, China biotech

IPOs and Placements coverage across Asia Pacific

Aequitas Research

We cover all listing across the Asia Pacific along with follow-up placements. As of Dec 2020, our team had covered 539 IPOs with a hit rate of 73.5% and 685 placements with a hit rate of 66.8%.

We combine fundamental bottom-up views with our proprietary quantitative framework to provide a holistic coverage across new listings and placements. Our coverage includes pre-IPO notes before the deal is launched, follow-up analysis once the deal is live and post-listing trading analysis as well.

Quantitative Analysis

<ul>
<li>We analyzed the changes in short interest of ASX Stocks as of Dec 12th (reported today). The aggregated short interest was USD29.2bn.</li>
<li>We tabulate league tables 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 JB Hi-Fi, National Australia Bank, Bluescope Steel, Scentre, Metcash.</li>
</ul>


We analyzed the changes in short interest of ASX Stocks as of Dec 12th (reported today). The aggregated short interest was USD29.2bn.
We tabulate league tables 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 JB Hi-Fi, National Australia Bank, Bluescope Steel, Scentre, Metcash.


ASX Short Interest Weekly (Dec 12th): JB Hi-Fi, National Australia Bank, Bluescope Steel, Scentre

Derivatives and Quantitative Strategist

Gaudenz Schneider

<ul>
<li>
Context: The <a href="https://www.smartkarma.com/entities/champion-iron-ltd" target="_blank" data-smartkarma-citation="entities:19734:1" rel="noopener">Champion Iron (CIA AU)</a> vs. <a href="https://www.smartkarma.com/entities/stanmore-coal-ltd" target="_blank" data-smartkarma-citation="entities:15252:1" rel="noopener">Stanmore Resources (SMR AU)</a> price-ratio has deviated more than two standard deviations from its one-year average, presenting a potential relative value opportunity.</li>
<li>
Highlights: The trade targets ~12% return to the one-standard-deviation line.</li>
<li>
Why Read: Essential for quantitative traders seeking mean-reversion opportunities, with detailed execution framework, risk management protocols, and historical simulation showing the statistical basis for this relative value play.</li>
</ul>



Context: The Champion Iron (CIA AU) vs. Stanmore Resources (SMR AU) price-ratio has deviated more than two standard deviations from its one-year average, presenting a potential relative value opportunity.

Highlights: The trade targets ~12% return to the one-standard-deviation line.

Why Read: Essential for quantitative traders seeking mean-reversion opportunities, with detailed execution framework, risk management protocols, and historical simulation showing the statistical basis for this relative value play.


Champion Iron (CIA AU) Vs. Stanmore (SMR AU): Coal–Steel Mean Reversion Targeting 12%

Financial News, Analysis and Data, FNArena

FNArena

Financial News, Analysis and Data

Online financial media company focused on Australian equities, with a global perspective

<ul><li>Rising costs and weak pricing weighed on first quarter earnings for Champion Iron, but development projects remain on course to support growth.</li><li> -Champion Iron&rsquo;s first quarter production and earnings disappoint -Record sales, but rising costs and lower realised pricing -Capex projects on track, liquidity expected to improve -Improving balance sheet, but still sensitive to commodity prices</li></ul>

Rising costs and weak pricing weighed on first quarter earnings for Champion Iron, but development projects remain on course to support growth. -Champion Iron&rsquo;s first quarter production and earnings disappoint -Record sales, but rising costs and lower realised pricing -Capex projects on track, liquidity expected to improve -Improving balance sheet, but still sensitive to commodity prices

Can Champion Iron Deliver On Growth Projects?

<ul>
<li>Following our initiation on <a href="https://www.smartkarma.com/entities/mount-gibson-iron-ltd" target="_blank" data-smartkarma-citation="entities:19043:1" rel="noopener">Mount Gibson Iron (MGX AU)</a> and <a href="https://www.smartkarma.com/entities/kumba-iron-ore-ltd" target="_blank" data-smartkarma-citation="entities:25094:1" rel="noopener">Kumba Iron Ore (KIO SJ)</a>, recently we initiate coverage on <a href="https://www.smartkarma.com/entities/champion-iron-ltd" target="_blank" data-smartkarma-citation="entities:19734:1" rel="noopener">Champion Iron (CIA AU)</a>, a pure play with Canadian assets.</li>
<li>Although it is more richly priced than the other two names, it offers a 50% volume expansion opportunity in FY25/26, subject to financing availability. </li>
<li>Trading at 8.6x FY25 (March-end) PE, 4.6x EV-EBITDA, and a 6% dividend yield (subject to capex), this is not our favorite name at the current price due to production uncertainty. </li>
</ul>


Following our initiation on Mount Gibson Iron (MGX AU) and Kumba Iron Ore (KIO SJ), recently we initiate coverage on Champion Iron (CIA AU), a pure play with Canadian assets.
Although it is more richly priced than the other two names, it offers a 50% volume expansion opportunity in FY25/26, subject to financing availability. 
Trading at 8.6x FY25 (March-end) PE, 4.6x EV-EBITDA, and a 6% dividend yield (subject to capex), this is not our favorite name at the current price due to production uncertainty. 


Champion Iron (CIA CN): Another Expansion Iron Ore Pure Play on High-Grade Ore

Australia

champion Iron Limited is a exploration company. The Company acquires, explores and develops properties for iron ore deposits.

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Champion Iron (CIA AU)

Champion Iron Ore (CIA AU): Fairly Valued Despite Operational Improvements

Champion Iron (CIA CN) has seen a dramatic turnaround in its operations. We discuss its prospects, Q2 results, and its valuation and contrast it...

Sameer Taneja

ASX Short Interest Weekly (Dec 12th): JB Hi-Fi, National Australia Bank, Bluescope Steel, Scentre

We analyzed ASX short interest report for the past week and highlight short interest changes in JB Hi-Fi, National Australia Bank, Bluescope Steel,...

Ke Yan, CFA, FRM