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

Cheng Shin Rubber Ind Co., Ltd. / Index Rebalance

Cheng Shin Rubber Ind Co., Ltd. (2105 TT)

<ul>
<li>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> rebalance was implemented last week and there were interesting moves at the close on implementation day.</li>
<li>The focus this week will be on pre-positioning for a global index rebalance where the review period commences next week.</li>
<li>Units outstanding on <a href="https://www.smartkarma.com/entities/ishares-msci-emerging-markets-223f5da3-7054-4e4f-bc55-b7f0852c2581" target="_blank" data-smartkarma-citation="entities:31998:1" rel="noopener">iShares Emerging Markets (EMXC US)</a> are at a new high while there continue to be redemptions in <a href="https://www.smartkarma.com/entities/ishares-msci-emerging-markets" target="_blank" data-smartkarma-citation="entities:438:1" rel="noopener">iShares Emerging Markets (EEM US)</a>. </li>
</ul>


The Philippines Stock Exchange PSEi Index (PCOMP INDEX) rebalance was implemented last week and there were interesting moves at the close on implementation day.
The focus this week will be on pre-positioning for a global index rebalance where the review period commences next week.
Units outstanding on iShares Emerging Markets (EMXC US) are at a new high while there continue to be redemptions in iShares Emerging Markets (EEM US). 


Index Rebalance & ETF Flow Recap: Taiwan Div+, Nifty50, Cainiao IPO, Delta Electronics

Event-Driven

<ul>
<li>Using data from the close on 28 September, there could be 6 adds and 5 deletes to the Yuanta/​P-Shares Taiwan Dividend Plus ETF in December.</li>
<li>There will also be capping and funding flows that will lead to a one-way turnover of 19.8% and a one-way trade of US$1.36bn.</li>
<li>There are 15 stocks with at least 3 days ADV to trade from passive trackers and another 10 stocks that have at least 1-day ADV to trade.</li>
</ul>


Using data from the close on 28 September, there could be 6 adds and 5 deletes to the Yuanta/​P-Shares Taiwan Dividend Plus ETF in December.
There will also be capping and funding flows that will lead to a one-way turnover of 19.8% and a one-way trade of US$1.36bn.
There are 15 stocks with at least 3 days ADV to trade from passive trackers and another 10 stocks that have at least 1-day ADV to trade.


Yuanta/​P-Shares Taiwan Dividend Plus ETF: 20% One-Way Turnover & US$2.72bn Trade

Pan-Asia Catalysts/Events, Quiddity Advisors

David Blennerhassett

Pan-Asia Catalysts/Events

Quiddity Advisors

Equity Bottom-Up

<ul>
<li>Despite a softening global demand backdrop, <strong><a href="https://www.smartkarma.com/entities/yue-yuen-industrial-holdings-limited" target="_blank" data-smartkarma-citation="entities:12281:1" rel="noopener">Yue Yuen Industrial (551 HK)</a></strong>, a global leader in the manufacture of athletic/outdoor and casual footwear, recently recorded its best 9M results since 2017.</li>
<li>Yue Yuen's shares have only just recovered from a 20-year low.</li>
<li>From both a historical perspective and relative to peers, Yue Yuen is undemanding here. </li>
</ul>


Despite a softening global demand backdrop, Yue Yuen Industrial (551 HK), a global leader in the manufacture of athletic/outdoor and casual footwear, recently recorded its best 9M results since 2017.
Yue Yuen's shares have only just recovered from a 20-year low.
From both a historical perspective and relative to peers, Yue Yuen is undemanding here. 


Yue Yuen (551 HK): Putting Their Best Feet Forward

HK/China Healthcare Analyst (ex-Fosun Pharma)

Xinyao (Criss) Wang

<ul>
<li>Yue Yuen is essentially a large traditional manufacturing company, which once benefitted from China's cheap labor and has brilliant history. But challenges seem inevitable as labor costs gradually increase.</li>
<li>Despite 22Q1-Q3 solid performance, in the environment of high inventory of brand customers and downward pressure on global economy, the order visibility of Yue Yuen in 22Q4/23Q1 could be low.</li>
<li>Either domestic demand or external demand, the overall situation may not be optimistic. Yue Yuen’s valuation is basically lower than its peers. However, we still recommend investors to remain vigilant.</li>
</ul>


Yue Yuen is essentially a large traditional manufacturing company, which once benefitted from China's cheap labor and has brilliant history. But challenges seem inevitable as labor costs gradually increase.
Despite 22Q1-Q3 solid performance, in the environment of high inventory of brand customers and downward pressure on global economy, the order visibility of Yue Yuen in 22Q4/23Q1 could be low.
Either domestic demand or external demand, the overall situation may not be optimistic. Yue Yuen’s valuation is basically lower than its peers. However, we still recommend investors to remain vigilant.


Yue Yuen Industrial Holdings (551.HK) - Challenging Prospects Overshadow Undervaluation

External broker reports(aggregated public sources), Capital Securities Corp

Capital Securities

External broker reports(aggregated public sources)

<p>Earnings may rise further; initiate coverage with TRADING BUY. Since its shoemaking business is expected to return to normal in FY22, FY22 revenue is estimated at NTD273.198bn (+12.71% YoY) with EPS of NTD3.65. Considering that Pou Chen’s FY22 earnings may rise again, coupled with its historical PBR range of 0.6~1.1x in the past three years, we initiate coverage on Pou Chen with TRADING BUY and TP of NTD36 (0.8x FY22 PBR).</p><div class="content-highlight"><em>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.</em></div>

Earnings may rise further; initiate coverage with TRADING BUY. Since its shoemaking business is expected to return to normal in FY22, FY22 revenue is estimated at NTD273.198bn (+12.71% YoY) with EPS of NTD3.65. Considering that Pou Chen’s FY22 earnings may rise again, coupled with its historical PBR range of 0.6~1.1x in the past three years, we initiate coverage on Pou Chen with TRADING BUY and TP of NTD36 (0.8x FY22 PBR).Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Pou Chen (9904 TT, TRADING BUY, NTD33.55)

Taiwan

Pou Chen Corporation manufactures and markets footwear products such as athletic shoes, leather shoes, plastics shoes and shoe soles. The Company markets its products in Taiwan and exports to the United States, South East Asia and Europe. Pou Chen's major business is shoe material trading.

Price Gauge
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Pou Chen (9904 TT)

Index Rebalance & ETF Flow Recap: Taiwan Div+, Nifty50, Cainiao IPO, Delta Electronics

This recap highlights Insights covering Asian index rebalances (announcements/ forecasts/ IPO Fast Entry/ M&A driven changes). We also highlight...

Brian Freitas

Yuanta/P-Shares Taiwan Dividend Plus ETF: 20% One-Way Turnover & US$2.72bn Trade

The Yuanta/P-Shares Taiwan Dividend Plus ETF may see 6 adds and 5 deletes in Dec, with a 1-way turnover of 19.8% and 1-way trade of US$1.36bn. The...

Brian Freitas

Yue Yuen (551 HK): Putting Their Best Feet Forward

Shares have bounced off a two-decade low in tandem with its best 9M net profit results since 2017. The current yield is 7.2% Upside is 60% if...

David Blennerhassett

Yue Yuen Industrial Holdings (551.HK) - Challenging Prospects Overshadow Undervaluation

Due to high inventory of brand customers/global economy downward pressure, Yue Yuen's order visibility in 22Q4/23Q1 is low.Its valuation's lower...

Xinyao (Criss) Wang

Pou Chen (9904 TT, TRADING BUY, NTD33.55)

Earnings may rise further; initiate coverage with TRADING BUY. Since its shoemaking business is expected to return to normal in FY22, FY22 revenue...

Capital Securities

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

Index Rebalance & ETF Flow Recap: Taiwan Div+, Nifty50, Cainiao IPO, Delta Electronics

This recap highlights Insights covering Asian index rebalances (announcements/ forecasts/ IPO Fast Entry/ M&A driven changes). We also highlight...

Brian Freitas

Yuanta/​P-Shares Taiwan Dividend Plus ETF: 20% One-Way Turnover & US$2.72bn Trade

The Yuanta/P-Shares Taiwan Dividend Plus ETF may see 6 adds and 5 deletes in Dec, with a 1-way turnover of 19.8% and 1-way trade of US$1.36bn. The...

Brian Freitas

Yue Yuen (551 HK): Putting Their Best Feet Forward

Shares have bounced off a two-decade low in tandem with its best 9M net profit results since 2017. The current yield is 7.2% Upside is 60% if...

David Blennerhassett

Yue Yuen Industrial Holdings (551.HK) - Challenging Prospects Overshadow Undervaluation

Due to high inventory of brand customers/global economy downward pressure, Yue Yuen's order visibility in 22Q4/23Q1 is low.Its valuation's lower...

Xinyao (Criss) Wang

Pou Chen (9904 TT, TRADING BUY, NTD33.55)

Earnings may rise further; initiate coverage with TRADING BUY. Since its shoemaking business is expected to return to normal in FY22, FY22 revenue...

Capital Securities

Yuanta/P-Shares Taiwan Dividend Plus ETF: 20% One-Way Turnover & US$2.72bn Trade