Articles from Caixin Global, Caixin Global

Caixin Global

Articles from Caixin Global

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News from Caixin

Cross Asset Strategy

<ul><li>In Depth: Will Fosun’s $2.2 billion steel unit sale save the conglomerate?</li><li>Covid lockdowns stoke merchant concerns ahead of peak shopping season</li><li>Trending in China: Social media users hail the return of a top Chinese biologist from the U.S.</li></ul>

In Depth: Will Fosun’s $2.2 billion steel unit sale save the conglomerate?Covid lockdowns stoke merchant concerns ahead of peak shopping seasonTrending in China: Social media users hail the return of a top Chinese biologist from the U.S.

CX Daily: Will Fosun’s $2.2 Billion Steel Unit Sale Save The Conglomerate?

Actionable Insights, Assured Alpha, ANTYA Investments

ANTYA Investments

Actionable Insights, Assured Alpha

Investing That Empowers You

ANTYA Investments Inc., regulated by the Ontario Securities Commission, is registered to provide wealth management services in Canada. ANTYA manages institutional, and high net-worth client portfolios on a discretionary basis. Our investment philosophy embraces a Core-Satellite approach.  The core of the portfolio is chosen from a group of fifteen asset classes. A few stock specific asymmetrical investment opportunities comprise the satellite segment. ANTYA invests only in global, large capitalization, and investment grade companies.  

Equity Capital Markets

China is a land of many opportunities. <a href="https://www.smartkarma.com/entities/923" target="_blank" data-smartkarma-citation="entities:923:1">Softbank Group Corp (ADR) </a>and <a href="https://www.smartkarma.com/entities/786" target="_blank" data-smartkarma-citation="entities:786:1">Altaba Inc (AABA US)</a> hit a home run with <a href="https://www.smartkarma.com/entities/787" target="_blank" data-smartkarma-citation="entities:787:1">Alibaba Group Holding Ltd (BABA US)</a>. <a href="https://www.smartkarma.com/entities/21085" target="_blank" data-smartkarma-citation="entities:21085:1">Naspers Ltd (NPN SJ)</a> can thank Tencent for its riches. In our opinion, Xiaomi is not in that league.

China is a land of many opportunities. Softbank Group Corp (ADR) and Altaba Inc (AABA US) hit a home run with Alibaba Group Holding Ltd (BABA US). Naspers Ltd (NPN SJ) can thank Tencent for its riches. In our opinion, Xiaomi is not in that league. 

Xiaomi Corporation - U.S.$100B, $80B, $50B – Stop Dreaming. We Believe Even $20 Billion Is Too Much

External broker reports(aggregated public sources), Topline Securities

Topline Securities

External broker reports(aggregated public sources)

Topline Securities is one of the fastest growing brokerage houses in Pakistan. It has strong equity brokerage, economic / equity research, mutual fund distribution, commodity trading and corporate finance & advisory functions. Content available is external broker reports authored by a third party outside the Smartkarma network and has been aggregated by an online aggregator through publicly available sources and is displayed by Smartkarma in this format for user's convenience and general informational purposes only. Content does not constitute investment or financial advice and Smartkarma makes no representation or warranty regarding its accuracy or contents. Original third party author retains all copyright and other proprietary rights in the content. Access or use of third party links not controlled by Smartkarma are at the user's own risk.

Thematic (Sector/Industry)

<ul><li>Pakistan market is expected to continue its uptrend in 2017 given tangible gains from China Pakistan Economic Corridor (CPEC) projects and rising domestic demand leading to higher economic growth prospects. This coupled with liquidity with local investors will likely set the stage for further gains in 2017, we believe.</li><li>Pakistan market currently trades at 2017F PE of 9.6x, which is at 23% and 29% discount to Morgan Stanley Composite Index (MSCI) Frontier Markets (FM) forward PE of 12.4x and MSCI Emerging Markets (EM) forward PE of 13.6x, respectively. We are of the view that Pakistan Market PE can potentially re-rate to 10x in 2017. This would be in line with the PE witnessed during high growth period of 2005-08 when Pakistan was part of EM index.</li><li>We expect benchmark KSE-100 Index to rise to 56,000 points by Dec 2017 generating 21% returns (inclusive of dividend). Our sample companies’ profit (representing 70% of KSE-100 index) is expected to grow by 23% in 2017, compared to increase of 1% in 2016, due to 1) re-bound in oil prices and higher oil production, 2) bottoming out of interest rates, 3) higher sales of oil, fertilizer and autos and 4) increased investment in energy sector.</li><li>Resultantly, we expect market capitalization of Pakistan to cross US$100bn in 2017 (30% of GDP) vs. US$89bn now.</li><li>Among other events that can potentially impact market movement is transition to MSCI EM in May 2017, which will keep optimism high. Further, local political issues, global sell-off and delays in implementation of CPEC projects can affect local bourse in 2017, we believe.</li><li>During 2016 YTD, the KSE-100 Index is up 41% compared to relatively flat performance in 2015. This is despite foreign selling of US$267mn during the year, thanks to local liquidity where local mutual funds bought US$264mn and Non-Banking Financial Corporations (NBFC) bought US$215mn whereas Companies and Banks sold total of US$221mn. Pakistan market performance in 2016 remained exceptional compared to regional markets where MSCI FM is down 2% while MSCI EM increased 10% in 2016 YTD.</li><li>We maintain ‘overweight’ stance on Cements, Consumers/Autos, Oil &amp; Gas Marketing and Steel sectors. We expect these sectors to be prime beneficiaries of rising domestic demand and expansion activities led by CPEC. We are of the view that Banks/Insurance will continue to benefit from increased economic activity.</li><li>Our top picks for 2017, which are expected to generate above average returns, are: Habib Bank (HBL), Lucky Cement (LUCK), Pakistan State Oil (PSO), DG Khan Cement (DGKC), Sui North Gas Pipelines (SNGP), Pak Suzuki Motors (PSMC), Pak Elektron (PAEL) and Adamjee Insurance (AICL).</li></ul>

Pakistan market is expected to continue its uptrend in 2017 given tangible gains from China Pakistan Economic Corridor (CPEC) projects and rising domestic demand leading to higher economic growth prospects. This coupled with liquidity with local investors will likely set the stage for further gains in 2017, we believe.Pakistan market currently trades at 2017F PE of 9.6x, which is at 23% and 29% discount to Morgan Stanley Composite Index (MSCI) Frontier Markets (FM) forward PE of 12.4x and MSCI Emerging Markets (EM) forward PE of 13.6x, respectively. We are of the view that Pakistan Market PE can potentially re-rate to 10x in 2017. This would be in line with the PE witnessed during high growth period of 2005-08 when Pakistan was part of EM index.We expect benchmark KSE-100 Index to rise to 56,000 points by Dec 2017 generating 21% returns (inclusive of dividend). Our sample companies’ profit (representing 70% of KSE-100 index) is expected to grow by 23% in 2017, compared to increase of 1% in 2016, due to 1) re-bound in oil prices and higher oil production, 2) bottoming out of interest rates, 3) higher sales of oil, fertilizer and autos and 4) increased investment in energy sector.Resultantly, we expect market capitalization of Pakistan to cross US$100bn in 2017 (30% of GDP) vs. US$89bn now.Among other events that can potentially impact market movement is transition to MSCI EM in May 2017, which will keep optimism high. Further, local political issues, global sell-off and delays in implementation of CPEC projects can affect local bourse in 2017, we believe.During 2016 YTD, the KSE-100 Index is up 41% compared to relatively flat performance in 2015. This is despite foreign selling of US$267mn during the year, thanks to local liquidity where local mutual funds bought US$264mn and Non-Banking Financial Corporations (NBFC) bought US$215mn whereas Companies and Banks sold total of US$221mn. Pakistan market performance in 2016 remained exceptional compared to regional markets where MSCI FM is down 2% while MSCI EM increased 10% in 2016 YTD.We maintain ‘overweight’ stance on Cements, Consumers/Autos, Oil &amp; Gas Marketing and Steel sectors. We expect these sectors to be prime beneficiaries of rising domestic demand and expansion activities led by CPEC. We are of the view that Banks/Insurance will continue to benefit from increased economic activity.Our top picks for 2017, which are expected to generate above average returns, are: Habib Bank (HBL), Lucky Cement (LUCK), Pakistan State Oil (PSO), DG Khan Cement (DGKC), Sui North Gas Pipelines (SNGP), Pak Suzuki Motors (PSMC), Pak Elektron (PAEL) and Adamjee Insurance (AICL).

South Africa

Naspers Limited operates in the technology industry. The Company invests in global internet companies across the world.

Naspers (NPN SJ)

CX Daily: Will Fosun’s $2.2 Billion Steel Unit Sale Save The Conglomerate?

In Depth: Will Fosun’s $2.2 billion steel unit sale save the conglomerate? Covid lockdowns stoke merchant concerns ahead of peak shopping season

Caixin Global

Xiaomi Corporation - U.S.$100B, $80B, $50B – Stop Dreaming. We Believe Even $20 Billion Is Too Much

China is a land of many opportunities. Softbank Group Corp (ADR) and Altaba Inc (AABA US) hit a home run with Alibaba Group Holding Ltd (BABA US)....

ANTYA Investments

Pakistan Market Outlook 2017

Pakistan market is expected to continue its uptrend in 2017 given tangible gains from China Pakistan Economic Corridor (CPEC) projects and rising...

Topline Securities