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

Event-Driven

<ul>
<li>The China equity markets have continued to slide and the lower market caps and free float market caps will see a lot of stocks deleted from passive portfolios in February.</li>
<li>We currently estimate selling of around US$1.66bn across 74 stocks listed on the mainland, in HK and the U.S., and that number could increase as markets continue to underperform.</li>
<li>The potential deletes have dropped a lot over the last 4 months and there has been a marked underperformance versus the headline indices over the last month.</li>
</ul>


The China equity markets have continued to slide and the lower market caps and free float market caps will see a lot of stocks deleted from passive portfolios in February.
We currently estimate selling of around US$1.66bn across 74 stocks listed on the mainland, in HK and the U.S., and that number could increase as markets continue to underperform.
The potential deletes have dropped a lot over the last 4 months and there has been a marked underperformance versus the headline indices over the last month.


China: Sliding Market Leads to Passive Selling

Equity Analyst

Xin Yu, CFA

Equity Bottom-Up

<ul>
<li>Minth's stock price has been weak in the past year but its improving fundamentals started to reflect in the results in 2H22. </li>
<li>2023 revenue growth will be supported by the overseas auto market recovery and fast-growing battery housing business. </li>
<li>Minth's valuation is near historical low and is at a discount to its peers</li>
</ul>


Minth's stock price has been weak in the past year but its improving fundamentals started to reflect in the results in 2H22. 
2023 revenue growth will be supported by the overseas auto market recovery and fast-growing battery housing business. 
Minth's valuation is near historical low and is at a discount to its peers


Asian Insight Provider - Actionable ideas, CrossASEAN Research

Henry Soediarko

Asian Insight Provider - Actionable ideas

CrossASEAN Research

At CrossASEAN Research we strive to produce unbiased and differentiated on the ground insights on companies across South East Asia. Our Research is produced for the most part after face to face meetings and conversations with company management to dig deep into the long term vision and strategy of the companies we cover. We seek to deliver investable and actionable themes on sectors and markets across SE Asia, often in collaboration with other Insight Providers across the region, pooling the vast experience of the analysts within the Smartkarma Ecosystem. We also offer bespoke work and tailor made trips for our clients. 

Insights across South East Asia

<ul>
<li>Share price sell-off is overdone as the prospect of the war worsening is less likely.</li>
<li>Channel checks have shown that EV sales remain upbeat despite the war.</li>
<li>The long-term prospect to participate in the growing EV industry through battery housing and body parts remain intact. </li>
</ul>


Share price sell-off is overdone as the prospect of the war worsening is less likely.
Channel checks have shown that EV sales remain upbeat despite the war.
The long-term prospect to participate in the growing EV industry through battery housing and body parts remain intact. 


<ul>
<li>Aluminum is <a href="https://www.smartkarma.com/entities/minth-group-ltd" target="_blank" data-smartkarma-citation="entities:9232:1" rel="noopener">Minth Group Ltd (425 HK)</a> biggest raw material.</li>
<li>The war that spiked the commodity price does not show any sign of ending soon therefore margin contraction is expected. </li>
<li>Get out or short it if you are a hedgehog. </li>
</ul>


Aluminum is Minth Group Ltd (425 HK) biggest raw material.
The war that spiked the commodity price does not show any sign of ending soon therefore margin contraction is expected. 
Get out or short it if you are a hedgehog. 


<ul>
<li>
<a href="https://www.smartkarma.com/entities/minth-group-ltd" target="_blank" data-smartkarma-citation="entities:9232:1" rel="noopener">Minth Group Ltd (425 HK)</a> has a new product, battery housing, that allows it to participate in the EV value chain including Tesla. </li>
<li>Aluminum content in EV is expected to double from 10 to 20%.</li>
<li>Trading at a deep discount (19x) vs other EV OEMs and EVs suppliers. </li>
</ul>



Minth Group Ltd (425 HK) has a new product, battery housing, that allows it to participate in the EV value chain including Tesla. 
Aluminum content in EV is expected to double from 10 to 20%.
Trading at a deep discount (19x) vs other EV OEMs and EVs suppliers. 


China

Minth Group Ltd. manufactures exterior automobile body parts.  The Company produces structural body parts, decorative parts, and trim.  Minth supplies multinational automobile manufacturers operating in China.

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Minth Group Ltd (425 HK)

China: Sliding Market Leads to Passive Selling

A rapidly falling market could be upwards of 74 China stocks being deleted from passive portfolios. These stocks have underperformed the headline...

Brian Freitas

Minth: Buy

Minth's revenue will be driven by the fast-growing battery housing business and recovery of US and EU auto markets this year. Each segment's GM is...

Xin Yu, CFA

Minth (425): Hop On

Post sell-off and recent downgrades by the sell-side, it may be a good entry point to own Minth again considering the potential from providing EV...

Henry Soediarko

Minth (425): Margin Contraction

aluminum price rose - a key raw material for Minth - has spooked investors as the outlook for the company's earnings has changed 180 degrees. It is...

Henry Soediarko

Minth (425 HK): EV Is Next

Minth (425.HK) new battery housing for EV has prompted investors to consider them as part of EVs value chain and channel check suggested aluminum...

Henry Soediarko

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