Pan-Asia Catalysts/Events, Quiddity Advisors

Travis Lundy

Pan-Asia Catalysts/Events

Quiddity Advisors

Event-Driven

<ul>
<li>On 3 June 2022, the S&amp;P DJI Global Index team announced changes to the S&amp;P500, S&amp;P Midcap 400, and S&amp;P SmallCap 600 indices (and a number of other smaller indices).</li>
<li>
<a href="https://www.smartkarma.com/entities/vici-properties-inc" target="_blank" data-smartkarma-citation="entities:28786:1" rel="noopener"></a><strong>VICI Properties</strong> (VICI) will replace <strong>Cerner</strong> (CERN) in S&amp;P500 at close of 7 June. <strong>Keurig DrPepper</strong> and <strong>ON Semiconductor</strong> will replace <strong>UnderArmour</strong> and <strong>IPG Photonics</strong> at close 17 June.</li>
<li>This set of rebalances is particularly interesting in terms of non-offsetting flows, unlike many rebals which are just a game of musical shares between the three top indices.</li>
</ul>


On 3 June 2022, the S&amp;P DJI Global Index team announced changes to the S&amp;P500, S&amp;P Midcap 400, and S&amp;P SmallCap 600 indices (and a number of other smaller indices).

VICI Properties (VICI) will replace Cerner (CERN) in S&amp;P500 at close of 7 June. Keurig DrPepper and ON Semiconductor will replace UnderArmour and IPG Photonics at close 17 June.
This set of rebalances is particularly interesting in terms of non-offsetting flows, unlike many rebals which are just a game of musical shares between the three top indices.


S&P500, S&PMid400, and S&PSmall600 Index Changes for June 2022 - More Interesting Than Usual

External broker reports(aggregated public sources), CMB International

CMB International

External broker reports(aggregated public sources)

Incorporated in Hong Kong, supported by the mainland and targeting in global market, CMB International Capital Corporation Limited (“CMBI”) is an integrated financial institution providing comprehensive and professional services. As a wholly-owned subsidiary of China Merchants Bank ("CMB"), by leveraging on the Group’s synergy and coordination in domestic and overseas markets, as well as CMB’s strong resources and outstanding social reputation, CMBI and its subsidiaries have been actively implementing diversified business strategies and set up an overall layout of main business segments including Corporate Finance, Asset Management, Wealth Management, Global Markets and Structured Finance, etc. Adhering to the philosophy of “being clients oriented and increasing our own values by the way of creating value for clients”, CMBI endeavors to provide quality and integrated financial services to institutional, corporate and individual customers both domestic and overseas including Hong Kong IPO sponsorship and underwriting, share placement and rights issue for listed companies, financial advisors, bonds issuance services, asset management, direct investment, wealth management, equity sales and trading, etc.

Equity Bottom-Up

<ul><li>Maintain BUY and raise TP to HK$2.42 to reflect stronger demand of next-gen high-speed connectivity in AI servers in FY24/25E, backed by MCIO connectors /cables and high-speed I/O products, recent launch of 224G high-speed products at DesignCon, and collaboration with MediaTek for high-speed connectivity solutions in CPO sockets at OFC.</li><li>During our NDR last week, mgmt. was positive on rising copper connectivity trend in AI servers and expected 1) 15-20% YoY for networking/server in FY24E (30-40% GPM), and 2) AI server related revenue (mainly copper) to reach 8-10% FY24E sales (vs. 1% in FY23), backed by new copper products and high-speed connection products in AI server.</li><li>We lifted FY24-25 EPS by 9-10% to reflect stronger demand of AI-related products and share gain from the US peers (Amphenol, TEL, Molex) in global server connector market following mass production of new AI products in FY24/25E.</li></ul><p><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></p>

Maintain BUY and raise TP to HK$2.42 to reflect stronger demand of next-gen high-speed connectivity in AI servers in FY24/25E, backed by MCIO connectors /cables and high-speed I/O products, recent launch of 224G high-speed products at DesignCon, and collaboration with MediaTek for high-speed connectivity solutions in CPO sockets at OFC.During our NDR last week, mgmt. was positive on rising copper connectivity trend in AI servers and expected 1) 15-20% YoY for networking/server in FY24E (30-40% GPM), and 2) AI server related revenue (mainly copper) to reach 8-10% FY24E sales (vs. 1% in FY23), backed by new copper products and high-speed connection products in AI server.We lifted FY24-25 EPS by 9-10% to reflect stronger demand of AI-related products and share gain from the US peers (Amphenol, TEL, Molex) in global server connector market following mass production of new AI products in FY24/25E.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.

FIT Hon Teng (6088 HK) - Opportunities in US$1.7bn Server Connector/Cable Market

Korea/Asia, Events, IPOs, Douglas Research Advisory

Douglas Kim

Korea/Asia, Events, IPOs

Equity Capital Markets

<ul>
<li>Mobileye Global (MBLY US) is getting ready to complete its IPO next week. The IPO price range is between $18 and $20 per share.</li>
<li>Our base case valuation of Mobileye is implied market cap of $15.2 billion or $19 per share, which is within the IPO price range. </li>
<li>Given the low upside in our target price relative to the IPO price range, we have a Negative view of this IPO.</li>
</ul>


Mobileye Global (MBLY US) is getting ready to complete its IPO next week. The IPO price range is between $18 and $20 per share.
Our base case valuation of Mobileye is implied market cap of $15.2 billion or $19 per share, which is within the IPO price range. 
Given the low upside in our target price relative to the IPO price range, we have a Negative view of this IPO.


APAC IPOs & Placements

Zhen Zhou, Toh

Smartkarma

Smartkarma unites the fragmented investment industry, connecting institutional investors, independent research providers, and corporates within a single network.

Research Reinvented

<p><em>The Smartkarma ECM Team puts out a weekly update on the deals we have covered recently, along with updates for upcoming IPOs.</em></p><div class="content-highlight">
<p>This week's listings did far better than our expectation. <a href="https://www.smartkarma.com/entities/22868" target="_blank" data-smartkarma-citation="entities:22868:1">FIT Hon Teng (6088 HK)</a> rallied 40.7% above IPO price after a relatively slow while <a href="https://www.smartkarma.com/entities/23996" target="_blank" data-smartkarma-citation="entities:23996:1">B Grimm Power (BGRIM TB)</a> closed 18.1% above IPO price is a similar fashion. On the other hand, <a href="https://www.smartkarma.com/entities/23683" target="_blank" data-smartkarma-citation="entities:23683:1">NetLink NBN Trust (NETLINK SP)</a> made a tepid debut.</p>
<p>However, it seems like the market has been overly optimistic on FIT Hon Teng as it…</p>
</div>

The Smartkarma ECM Team puts out a weekly update on the deals we have covered recently, along with updates for upcoming IPOs.
This week's listings did far better than our expectation. FIT Hon Teng (6088 HK) rallied 40.7% above IPO price after a relatively slow while B Grimm Power (BGRIM TB) closed 18.1% above IPO price is a similar fashion. On the other hand, NetLink NBN Trust (NETLINK SP) made a tepid debut.
However, it seems like the market has been overly optimistic on FIT Hon Teng as it…


Smartkarma: ECM Coverage Weekly Update (22 July 2017)

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

Ke Yan, CFA, FRM

Asia Pac IPO & Placement Research, China biotech

<p><a href="https://www.smartkarma.com/entities/22868" target="_blank" data-smartkarma-citation="entities:22868:1">FIT Hon Teng (6088 HK)</a> relaunched its IPO to raise up to US$393m after its previous IPO was pulled in 2016. We have covered the fundamental aspects of the company previously (<a href="https://www.smartkarma.com/insights/fit-hon-teng-ipo-early-thought-parent-hon-hai-has-a-different-focus" target="_blank">link</a> to previous insight). In this insight, we will look at changes since its previous listing attempt, and score the deal in our ECM framework. </p><div><h2>Deal and framework score overview</h2></div><p>Regular readers will be familiar with the below embed from our IPO tool which has been designed to provide you with timely information on all IPO…</p>

FIT Hon Teng (6088 HK) relaunched its IPO to raise up to US$393m after its previous IPO was pulled in 2016. We have covered the fundamental aspects of the company previously (link to previous insight). In this insight, we will look at changes since its previous listing attempt, and score the deal in our ECM framework. Deal and framework score overviewRegular readers will be familiar with the below embed from our IPO tool which has been designed to provide you with timely information on all IPO…

FIT Hon Teng: IPO Relaunched, What's New and So What?

Switzerland

TE Connectivity Limited provides engineered electronic components, network solutions, undersea telecommunication systems, and wireless systems. The Company designs, manufactures, and markets products for customers in industries ranging from automotive, appliance, and aerospace and defense to telecommunications, computers, and consumer electronics.

Te Connectivity (TEL US)

S&P500, S&PMid400, and S&PSmall600 Index Changes for June 2022 - More Interesting Than Usual

The June 2022 S&P500, S&P Midcap 400 and S&P SmallCap 600 Rebalance was announced on 3 June 2022. VICI will replace CERN at the close of 7 June,...

Travis Lundy

FIT Hon Teng (6088 HK) - Opportunities in US$1.7bn Server Connector/Cable Market

Maintain BUY and raise TP to HK$2.42 to reflect stronger demand of next-gen high-speed connectivity in AI servers in FY24/25E, backed by MCIO...

CMB International

Mobileye Global IPO Valuation Analysis

Our base case valuation of Mobileye is implied market cap of $15.2 billion or $19 per share, which is within the IPO price range. We have a...

Douglas Kim

Smartkarma: ECM Coverage Weekly Update (22 July 2017)

The Smartkarma ECM Team puts out a weekly update on the deals we have covered recently, along with updates for upcoming IPOs. This week's listings...

Zhen Zhou, Toh

FIT Hon Teng: IPO Relaunched, What's New and So What?

FIT Hon Teng (6088 HK) relaunched its IPO to raise up to US$393m after its previous IPO was pulled in 2016. We have covered the fundamental aspects...

Ke Yan, CFA, FRM