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Smartkarma Daily Briefs

Aug 29
0

Daily Brief ECM: Interglobe Aviation (Indigo) Placement – Another US$800m+ Deal and more

By | Daily Briefs, ECM

In today’s briefing:

  • Interglobe Aviation (Indigo) Placement – Another US$800m+ Deal, This Time by the Correct Co-Founder
  • Niva Bupa Health Insurance Pre-IPO – Strong GWP Growth, However Some Risks Remain
  • IGI (India) Pre-IPO Tearsheet
  • Inventurus Knowledge Solutions Pre-IPO Tearsheet
  • Pre-IPO Zhou Liu Fu Jewellery – The Potential Risks and Concerns Brought by the Business Model

Interglobe Aviation (Indigo) Placement – Another US$800m+ Deal, This Time by the Correct Co-Founder

By Sumeet Singh

  • InterGlobe Aviation Ltd (INDIGO IN)’s co-founder, Rakesh Gangwal, aims to raise around US$850m via selling around 3.8% stake in Indigo.
  • He had earlier stated his intention to pare down his stake after a long drawn, and very public battle, with his co-founder Rahul Bhatia. He has sold many times before.
  • In this note, we will talk about the lockup dynamics and possible placement.

Niva Bupa Health Insurance Pre-IPO – Strong GWP Growth, However Some Risks Remain

By Clarence Chu

  • Niva Bupa Health Insurance (1226871D IN) is looking to raise US$360m from its upcoming India IPO. The IPO will consist of both primary and secondary shares.
  • Niva Bupa Health Insurance (Niva Bupa) is a health insurance firm. Its portfolio consists of health (including retail and group), personal accident, and travel insurance.
  • In this note, we look at the firm’s past performance.

IGI (India) Pre-IPO Tearsheet

By Akshat Shah

  • IGI (India) Limited (2261751D IN) is looking to raise about US$480m in its upcoming India IPO. The deal will be run by Axis, Kotak, MS, and SBI Caps.
  • IGI India is part of the International Gemmological Institute (IGI) group. As of 22nd August 2024, IGI India handled operations of the IGI business in India and Türkiye.
  • Its primary business is in provision of services related to certification and accreditation of natural diamonds, laboratory-grown diamonds, studded jewellery and coloured stones as well as offering of educational programs.

Inventurus Knowledge Solutions Pre-IPO Tearsheet

By Ethan Aw

  • Inventurus Knowledge Solutions (IKSINCD IN) is looking to raise up to US$400m in its upcoming India IPO. The deal will be run by ICICI, JM Financial, Jefferies, Nomura and JPM. 
  • Inventurus Knowledge Solutions (Inventurus from hereon) is a technology-enabled healthcare solutions provider, offering a care enablement platform which assists physician enterprises in the US, Canada and Australia. 
  • Its physician-oriented platform includes clinical documentation solutions, patient scheduling assistance, automated prescription refill solutions and clinical document management, amongst others. 

Pre-IPO Zhou Liu Fu Jewellery – The Potential Risks and Concerns Brought by the Business Model

By Xinyao (Criss) Wang

  • The franchise model of Zhou Liu Fu is the biggest performance contributor, which is also the main reason for the Company’s rapid expansion and high gross profit margin.  
  • However, the CSRC questioned the rationality of franchise model and thus rejected its A-share IPO. We think the high revenue growth/profit margin may not be sustainable in the long term.
  • Pre-IPO post-investment valuation was approximately 7.407 billion yuan. Zhou Liu Fu has applied for H-Share full circulation, which may put pressure on stock price performance after the lockdown period expires.

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Aug 29
0

Daily Brief Thematic (Sector/Industry): Ohayo Japan | Nvidia -5% After Results and more

By | Daily Briefs, Thematic (Sector/Industry)

In today’s briefing:

  • Ohayo Japan | Nvidia -5% After Results
  • Japan Morning Connection: NVDA Disappoints
  • US Lags Behind China and Europe in EV Charging Infrastructure
  • # 51 India Insight: Zee-Sony Settle Dispute, NSE Files for IPO, HUL INR 962 Crores GST Notice
  • What Is the Implication if RMB Appreciates 10%?
  • China’s Duty-Free Haven Hands Out $3.4 Million Vouchers to Spur Spending

Ohayo Japan | Nvidia -5% After Results

By Mark Chadwick

  • Stocks retreated on Wednesday as investors awaited Nvidia’s crucial earnings report. The Nasdaq Composite led declines, falling 1.12%
  • Nvidia reported strong Q4 earnings, beating expectations with $30.04 billion in revenue and $0.68 EPS.
  • Super Micro Computer’s stock plunged 19% after announcing a delay in filing its annual report, following accusations of “accounting manipulation” by Hindenburg Research

Japan Morning Connection: NVDA Disappoints

By Andrew Jackson

  • NVDA disappoints market expectations and trades -7% after-market, setting a very weak tone for Japanese SPE and tech related names to start.
  • The bad news for 4911 Shiseido continues, with the tone out of a small sell-side meeting held yesterday after-market pointed to further earnings downside.
  • Expect a continued rotation into value and domestic defensives as the market pivots away from AI/tech with plenty of room for profit taking after the recent rebound.

US Lags Behind China and Europe in EV Charging Infrastructure

By Garvit Bhandari

  • US considerably lags behind China and Europe which had 3.2 million and 0.9 million public charging points at the end of July 2024. US had just 180,136.
  • US aims to reach 500,000 public EV chargers by 2030. This compared with EU’s target of 3.5 million chargers by the same timeframe.
  • EV adoption remains slow in the U.S. impacted by pricing and lack of infrastructure.

# 51 India Insight: Zee-Sony Settle Dispute, NSE Files for IPO, HUL INR 962 Crores GST Notice

By Sudarshan Bhandari

  • Zee and Sony Amicably Settle Disputes Over Failed Merger, Withdraw Claims
  • NSE Files for SEBI NOC to Gain Approval for Long-Awaited IPO Listing
  • ReNew and Microsoft Forge 437.6 MW Green Energy Pact to Advance Carbon-Negative Goals

What Is the Implication if RMB Appreciates 10%?

By Jacob Cheng

  • News report today that RMB may appreciate 10% due to potential USD weakness and capital inflow of USD1trn back into China, causing upward pressure of the currency
  • The capital inflow comes from potential unwinding of carry trade, as Chinese companies borrow CNY at low interest rate and place capital in USD deposit, at higher interest rate
  • We think this scenario is unlikely unless China economy is showing strong recovery.  But, if this happens, it will hurt export but positive for HK-listed Chinese property stocks

China’s Duty-Free Haven Hands Out $3.4 Million Vouchers to Spur Spending

By Caixin Global

  • China’s tropical island province of Hainan is to hand out 24 million yuan ($3.4 million) in spending vouchers to encourage tourists to splash out and reverse falling retail sales in the duty-free haven.
  • The provincial government said it will distribute the vouchers, including 9 million yuan to buy airline tickets and 15 million yuan for tax-free shopping, between late August and October.
  • The initial batch of flight ticket vouchers will apply to Hainan Airlines’ services, but other carriers can request to join the program, the government said.

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Aug 29
0

Daily Brief Event-Driven: Jardine Matheson (JM SP): Trading “Cheap” and more

By | Daily Briefs, Event-Driven

In today’s briefing:

  • Jardine Matheson (JM SP): Trading “Cheap”
  • Hyundai Motor’s Value-Up Disclosure: Trading Implications from Release Timing & Pref-Skewed Buyback
  • Huafa Props (982 HK): A Quick Word On Voting
  • Alpha Generation from the New Entries in the ‘KOSDAQ Rising Stars’
  • MV Australia Equal Weight Index Rebalance Preview: One Add & A Few Deletes
  • HM Sampoerna (HMSP IJ): Global Index Deletion Following IDX Segment Shift
  • Quiddity Leaderboard ES50 Sep 24: DSM Addition Unlikely; Engie Could Replace Kering (US$1bn+ Flows)
  • Impact of Woori Financial’s Tongyang Life Acquisition Below ₩1.5T on Value-Up Flows
  • Misunderstood Takeover Target
  • Silverlake Axis (SILV SP): Goh’s Hybrid Offer

Jardine Matheson (JM SP): Trading “Cheap”

By David Blennerhassett

Hyundai Motor’s Value-Up Disclosure: Trading Implications from Release Timing & Pref-Skewed Buyback

By Sanghyun Park

  • Hyundai’s TSR target is 35%+ (dividends plus buybacks), up 10 percentage points from previous years. They’ve also set a new annual dividend of ₩10,000, paid evenly quarterly.
  • Hyundai’s Value-Up targets may not fully meet market expectations, but the key is the timing. By aligning early with government policies, Hyundai has reduced risks and secured investment flow.
  • Hyundai plans a pref-skewed buyback, likely continuing this approach as retiring preferred shares first may boost ROE.

Huafa Props (982 HK): A Quick Word On Voting

By David Blennerhassett

  • Huafa Property (982 HK) shareholders overwhelmingly approved (99.52% [of shares present and/or via proxy] FOR; 0.48% AGAINST) the Scheme yesterday. This part was expected. The headcount test was less certain.
  • The final headcount tally, on a look-through basis into HKSCC Nominees by CCASS Participants, was 111 FOR, 14 AGAINST. Again, a pretty clear pass.
  • Normally a Scheme Vote, if approved, wouldn’t warrant a full note. But when the headcount test is involved, it is worthwhile understanding the mechanics.

Alpha Generation from the New Entries in the ‘KOSDAQ Rising Stars’

By Douglas Kim

  • In this insight, we discuss the potential alpha generation from new entries in the “KOSDAQ Rising Stars.”
  • For the KOSDAQ Rising Stars New Entries in 2023, there was a massive outperformance. Of course, we want to reiterate that past performance is NOT indicative of future performance.
  • On 28 August 2024, KRX provided a list of 39 KOSDAQ Rising Stars companies (including 29 existing ones and 10 new companies).

MV Australia Equal Weight Index Rebalance Preview: One Add & A Few Deletes

By Brian Freitas

  • With 2 days left to review cutoff, there could be 1 inclusion and 3 deletions for the index at the September rebalance.
  • Even if there are no constituent changes, capping changes will lead to one-way turnover of 4.4% and a round-trip trade of A$212m.
  • The final list of inclusions/exclusions will depend on price movements till Friday and whether the index provider makes any significant changes to the free float of stocks in the universe.

HM Sampoerna (HMSP IJ): Global Index Deletion Following IDX Segment Shift

By Dimitris Ioannidis

  • HM Sampoerna (HMSP IJ) has been announced as a deletion from the Large cap of the Global Index at the September 2024 review.
  • The reason for the security’s removal is due to a change of listing from an eligible to an ineligible exchange segment of the Indonesian Stock Exchange (IDX).
  • Forecasted passive fund supply is ~$24.6m and ~11.9 ADV at the close of 20 September 2024. The significant ADV is because of the security’s low free float.

Quiddity Leaderboard ES50 Sep 24: DSM Addition Unlikely; Engie Could Replace Kering (US$1bn+ Flows)

By Janaghan Jeyakumar, CFA

  • The ES50 Index is one of the most highly-tracked indices in Europe and the annual index review takes place in September every year.
  • In this insight, we take a look at Quiddity’s estimation of the latest ranks of potential ADDs and DELs for the upcoming index rebal event in September 2024.
  • The rankings will be finalized at the end of this week. Currently, we see one expected ADD/DEL but the expectations can change since there are three more trading days left.

Impact of Woori Financial’s Tongyang Life Acquisition Below ₩1.5T on Value-Up Flows

By Sanghyun Park

  • Woori Financial’s value-up plan centers on improving the CET1 ratio to boost shareholder returns, with the total return ratio directly tied to the CET1 ratio.
  • The market believed that if the acquisition cost stayed under ₩1.9 trillion, the CET1 ratio impact would be minimal, potentially leading to mid-term gains from non-banking profits.
  • Though this may hurt Tongyang Life’s short-term stock, it opened the door for local institutional investors, especially NPS, to consider Woori Financial for value-up investments.

Misunderstood Takeover Target

By Jesus Rodriguez Aguilar

  • Allfunds Group, a global WealthTech firm born in Spain, attracts market interest, but no firm offers yet. Its top two shareholders (48.1%) are open to selling at the right price.
  • Since listing, Allfunds’ total return has been -59%, driven by interest rate hikes, major distributors shifting to low-risk assets, stock overhang from top shareholders, and low share liquidity.
  • ChatGPTAllfunds’ forward P/E of 12.9x (vs. peers at 18.6x) and 9.5% FCF yield undervalue its strong business model, momentum, market share gains, robust cash conversion, and solid balance sheet.

Silverlake Axis (SILV SP): Goh’s Hybrid Offer

By David Blennerhassett

  • Goh Peng Ooi, the Executive Chairman and founder, has made a voluntary unconditional general Offer for the 25.9% in Silverlake Axis (SILV SP) not held.
  • The S$0.36/share cash Offer for the software solutions play is a 20% premium to last close. Or a 31.9% premium to the 12-month VWAP.
  • The quirk in the terms is the option to receive A$0.30/share (in cash), plus one new redeemable preference share in the Offeror, to be redeemed at A$0.18/share after five years. 

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Aug 29
0

Daily Brief Credit: SJM Holdings – Earnings Flash – H1 FY 2024 Results – Lucror Analytics and more

By | Credit, Daily Briefs

In today’s briefing:

  • SJM Holdings – Earnings Flash – H1 FY 2024 Results – Lucror Analytics
  • Morning Views Asia: Anton Oilfield, Meituan, Yuexiu Property

SJM Holdings – Earnings Flash – H1 FY 2024 Results – Lucror Analytics

By Leonard Law, CFA

SJM Holdings’ Q2/24 results were soft. The company reported flat GGR q-o-q (outpacing the industry’s slight decline), supported by the continued ramp-up of GLP. This was partly offset by a weaker showing at GL. Positively, the drag from excess staff costs continued to shrink. In addition, management disclosed that SJM’s market share grew further in July and August, which could support continued earnings outperformance in Q3.

That said, there was little net debt reduction and the company’s pace of deleveraging was slower than peers. Still, liquidity remains adequate, and we do not foresee material refinancing risks for the company.

Morning Views Asia: Anton Oilfield, Meituan, Yuexiu Property

By Leonard Law, CFA

Lucror Analytics Morning Views comprise our fundamental credit analysis, opinions and trade recommendations on high yield issuers in the region, based on key company-specific developments in the past 24 hours. Our Morning Views include a section with a brief market commentary, key market indicators and a macroeconomic and corporate event calendar.

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Aug 29
0

Daily Brief Crypto: Eternal Chop and more

By | Crypto, Daily Briefs

In today’s briefing:

  • Eternal Chop

Eternal Chop

By Delphi Digital

  • Powell’s Pivot: A New Era for Crypto Markets as Interest Rates Shift. Discover how the Fed’s changing stance may ignite new demand in the crypto market.
  • BTC’s Rally: Can It Sustain Its Momentum Amidst Shifting Economic Policies? Explore the critical market movements and the implications of BTC’s recent surge.
  • Stablecoin Growth: The Catalyst for the Next Crypto Boom? Understand the vital role of stablecoins and credit in the future of crypto market growth.

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Aug 29
0

Daily Brief Equity Bottom-Up: Seven & I (3382) | Strategic Refocus and Acquisition Interest Signal Major Upside Potential and more

By | Daily Briefs, Equity Bottom-Up

In today’s briefing:

  • Seven & I (3382) | Strategic Refocus and Acquisition Interest Signal Major Upside Potential
  • Alibaba Group (9988-HK): Positive Technical Analysis Signals
  • Pinduoduo: Anticipating Slower Growth And Potential Profit Dip
  • Hyundai Motor Announces Its Corporate Value Up Policies
  • Monthly Chinese Tourism Tracker | Outbound Activity Approaches Pre-Covid Levels | (August 2024)
  • [Pinduoduo (PDD US, BUY, TP US$160) TP Change]: Investment Means Continued High Growth
  • [Trip.com (TCOM US, BUY, TP US$50) Rating Change]: Beyond the Difficult Time…Upgrade to BUY
  • Earnings Preview (Nvidia and Marvell)
  • All Eyes on Nvidia
  • IOS18 Unveils Major Updates, Delayed AI Features Paving Path for a Significant Upgrade Cycle

Seven & I (3382) | Strategic Refocus and Acquisition Interest Signal Major Upside Potential

By Mark Chadwick

  • 7&I Holdings is reviewing a confidential acquisition proposal from $ATD, highlighting significant potential for value creation through strategic refocusing on its core convenience store business
  • ValueAct Capital previously criticized 7&I as an “unfocused holding company,” urging a focus on core assets, estimating a potential value of ¥4,200 per share.
  • Our valuation suggests 7&I could reach ¥3,700 per share, driven by the repricing of its overseas CVS business; $ATD will need a strong offer.

Alibaba Group (9988-HK): Positive Technical Analysis Signals

By Wium Malan, CFA

  • Despite a negative share price reaction following its 1Q2025 earnings report, Alibaba Group Holding (9988 HK) seems to have entered an earnings upgrade cycle due to improved profitability expectations.
  • Despite recent share price pressure, due to negative industry readthroughs from peers, Alibaba Group’s near-term momentum indicators are displaying bullish signals.
  • Alibaba Group trades at more than one standard deviation below its 5-year historic average forward PE ratio, and near the lowest level it has ever been.

Pinduoduo: Anticipating Slower Growth And Potential Profit Dip

By Oshadhi Kumarasiri

  • PDD Holdings (PDD US) shares fell 28% on Monday after a 3% revenue miss, with shares dropping an additional 4% yesterday.
  • The results themselves weren’t bad enough to justify such a sharp price reaction.
  • However, management’s comments on slower growth and a potential drop in profits triggered a significant sell-off.

Hyundai Motor Announces Its Corporate Value Up Policies

By Douglas Kim

  • On 28 August, Hyundai Motor announced its Corporate Value Up policies, including a minimum dividend per share this year targeting 10,000 won per share for common shares. 
  • Hyundai Motor plans to implement a shareholder return policy based on a total shareholder return (TSR) of 35% or more from 2025 to 2027.
  • Hyundai Motor’s Corporate Value Up plan of providing TSR of 35% or more from 2025 to 2027 is certainly better than what it provided in the past three years (26%). 

Monthly Chinese Tourism Tracker | Outbound Activity Approaches Pre-Covid Levels | (August 2024)

By Daniel Hellberg

  • July outbound travel (and seat capacity) fnally approached pre-Covid19 levels
  • Domestic air travel demand also showed modest Y/Y improvement in July 
  • We still like Trip.com on improving profitability, BUY with US$55 target

[Pinduoduo (PDD US, BUY, TP US$160) TP Change]: Investment Means Continued High Growth

By Ying Pan

  • PDD reported C2Q24 top line, non-GAAP operating income and GAAP net income (3.9%), (1.2%) and (4.4%) below our estimates, and (2.9%), 12% and 16% above consensus. 
  • We believe PDD’s upgrade in its ecosystem and infrastructure is long overdue. Such investment would support its growth, especially in overseas. 
  • Trading at 6.4x 2025 PE, we believe PDD is undervalued. We reiterate BUY and place it as TOP PICK of China’s e-commerce sector.

[Trip.com (TCOM US, BUY, TP US$50) Rating Change]: Beyond the Difficult Time…Upgrade to BUY

By Eric Wen

  • TCOM reported C2Q24 revenue in-line with our est./cons., non-GAAP operating income also in-line with our est./cons., and non-GAAP net income beat our est./cons. by 18%/40%,mainly due to rising equity income
  • Robust int’l growth offset weakness in domestic. With services possibly included in the government consume subsidy in C2H24/1H25 and Rmb’s appreciation.
  • We feel it is time to buy TCOM again, TP to US$50 from US$42.

Earnings Preview (Nvidia and Marvell)

By Douglas O’Laughlin

  • It’s about to be primetime for the AI semiconductor trade, and for the first time in a long time (maybe ever), I wanted to write an earnings preview. It might be the first time (ever) and hopefully the last time.
  • Two critical companies report this week. I’ll start with Marvell, the less important but the one I like, and then talk about some exciting dynamics at Nvidia that could lead to volatility and why it might not even matter.
  • Marvell has always been a favorite of this newsletter. I won’t lie; I root for the hometown on this one. Inphi was my first paid post, and it worked out with a buyout by Marvell only two weeks later.

All Eyes on Nvidia

By Jesus Rodriguez Aguilar

  • This Wednesday, after the Wall Street close, NVIDIA Corp (NVDA US) will release its second-quarter figures, concluding the current earnings season. The stock has returned 155% YTD.
  • Nvidia’s results will be crucial in determining whether its stock recovery continues (+25% since its August 5 low and 11.8% below its all-time high of $140.76 on June 20).
  • Historically, when Nvidia’s earnings and guidance have been strong, its stock has rebounded by c. 30% and over in four occasions.

IOS18 Unveils Major Updates, Delayed AI Features Paving Path for a Significant Upgrade Cycle

By Uttkarsh Kohli

  • IOS 18 beta offers new Home Screen and Control Centre customization; AI features like Advanced Siri Capabilities delayed until iOS 18.1, set to arrive later this year. 
  • Morgan Stanley forecasts Apple will ship five hundred million iPhones over two years, driven by the AI-powered Apple Intelligence, with a 4%-5% growth in iPhone average selling prices. 
  • Only 15% of current Apple devices support new AI features, pushing a significant upgrade cycle; 24% of iPads are compatible, suggesting a mini-upgrade cycle in the tablet market.

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Aug 29
0

Daily Brief Macro: Real Estate:  India/China Rotation Sparks Sector Growth and more

By | Daily Briefs, Macro

In today’s briefing:

  • Real Estate:  India/China Rotation Sparks Sector Growth
  • Ifo Watch: Is Germany flirting with a recession?
  • JPY Revisited-Bullish Case
  • CX Daily: China’s Used-Car Dealers Face a Bumpy Ride as Price Wars Intensify
  • CX Daily: Chinese Brokerages’ Dual Roles in Bond Market Sparks Concern for Conflicts of Interest
  • Positioning Watch – No Signs of a Recession in Positioning Data Yet

Real Estate:  India/China Rotation Sparks Sector Growth

By Steven Holden

  • Uptick in Real Estate positioning driven by a shift towards Indian Real Estate stocks, which has outweighed reductions in exposure to China & HK Real Estate
  • Three names stand out: Phoenix Mills, Macrotech Developers, and DLF Limited, all of which have seen ownership rise to record levels.
  • New positions in Indian Real Estate by Allianz and JKC have been offset by closures in Chinese Real Estate by LO Funds and SEB, among others.

Ifo Watch: Is Germany flirting with a recession?

By Ulrik Simmelholt

  • Take aways: More and more Ifo data suggests that Germany is heading into a recession. Fears of a wage-price spiral in Germany are overstated by German hawks.
  • Service price expectations look to settle above pre pandemic trends Remember to look at hard data to get the full picture. Following the full release of the monthly Ifo figures, let’s examine the growth and inflation prospects in Germany as we head into autumn.
  • Increasingly, Ifo data hints that a recession may be imminent in Germany, with both growth and inflation expected to slow.

JPY Revisited-Bullish Case

By Alex Ng

  • From our last piece in early Aug 2024, Japanese Yen, we believe Yen will recover to 110 level as US Treasury Yields move lower.
  • Compared to our last analysis, further JPY interest rate hike is plausible, or at least on the table
  • Japan 10 Year Government Bond Interest Rate is at 0.92%, compared to 0.90% the previous market day and 0.65% last year. This is lower than the long term average of 2.08%.

CX Daily: China’s Used-Car Dealers Face a Bumpy Ride as Price Wars Intensify

By Caixin Global

  • Used cars / In Depth: China’s used-car dealers face a bumpy ride as price wars intensify
  • Housing /: China pilots government-funded housing renovation system in 22 cities
  • Banks /: Standard Chartered names new China CEO

CX Daily: Chinese Brokerages’ Dual Roles in Bond Market Sparks Concern for Conflicts of Interest

By Caixin Global

  • Bonds / Cover Story: Chinese brokerages’ dual roles in bond market sparks concern for conflicts of interest that raises systemic risk 
  • Internet /: New digital ID system is optional, not mandatory, ministry researcher says
  • Air crash /: Two children among five Chinese nationals killed in Thai plane crash

Positioning Watch – No Signs of a Recession in Positioning Data Yet

By Andreas Steno

  • Hello everyone, and welcome back to our weekly positioning watch.
  • Markets have found their way back to pre-NFP levels as the storm seems to have calmed in equity markets.
  • Meanwhile, fixed income markets are focused on four rate cuts, despite many taking the NFP revisions last week too seriously, likely underestimating the impact of immigration on payroll data.

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Aug 29
0

Daily Brief Australia: Pro Medicus Ltd, Paladin Energy and more

By | Australia, Daily Briefs

In today’s briefing:

  • MV Australia Equal Weight Index Rebalance Preview: One Add & A Few Deletes
  • Will the Paladin-Fission deal blowout?

MV Australia Equal Weight Index Rebalance Preview: One Add & A Few Deletes

By Brian Freitas

  • With 2 days left to review cutoff, there could be 1 inclusion and 3 deletions for the index at the September rebalance.
  • Even if there are no constituent changes, capping changes will lead to one-way turnover of 4.4% and a round-trip trade of A$212m.
  • The final list of inclusions/exclusions will depend on price movements till Friday and whether the index provider makes any significant changes to the free float of stocks in the universe.

Will the Paladin-Fission deal blowout?

By Money of Mine

  • Paladin and Fission uranium corp are in the process of trying to lock in a script merger
  • The date of the Paladin Fission scheme vote has been extended to September 9
  • Two thirds of votes cast in favor are needed for the merger to proceed

This content is sourced through publicly available sources and has been machine generated. Information displayed is for general informational purposes only.

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Aug 29
0

Daily Brief Thailand: Valeura Energy Inc and more

By | Daily Briefs, Thailand

In today’s briefing:

  • Valeura Energy: Production Guidance Re-Iterated but Lower Capex and Additional Resources

Valeura Energy: Production Guidance Re-Iterated but Lower Capex and Additional Resources

By Auctus Advisors

  • Net production at Nong Yao has reached a stable level of ~12.1 mbbl/d. This compares with 6.3 mbbl/d in 2Q24.
  • This production, when combined with the Wassana field being back online, has resulted in stable aggregate WI oil production over the past week of 26.2 mbbl/d.
  • We are assuming only 20.4 mbbl/d for 3Q24, which might be too conservative.

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Aug 29
0

Daily Brief South Korea: Hyundai Motor, Lunit , Woori Financial Group and more

By | Daily Briefs, South Korea

In today’s briefing:

  • Hyundai Motor’s Value-Up Disclosure: Trading Implications from Release Timing & Pref-Skewed Buyback
  • Alpha Generation from the New Entries in the ‘KOSDAQ Rising Stars’
  • Hyundai Motor Announces Its Corporate Value Up Policies
  • Impact of Woori Financial’s Tongyang Life Acquisition Below ₩1.5T on Value-Up Flows

Hyundai Motor’s Value-Up Disclosure: Trading Implications from Release Timing & Pref-Skewed Buyback

By Sanghyun Park

  • Hyundai’s TSR target is 35%+ (dividends plus buybacks), up 10 percentage points from previous years. They’ve also set a new annual dividend of ₩10,000, paid evenly quarterly.
  • Hyundai’s Value-Up targets may not fully meet market expectations, but the key is the timing. By aligning early with government policies, Hyundai has reduced risks and secured investment flow.
  • Hyundai plans a pref-skewed buyback, likely continuing this approach as retiring preferred shares first may boost ROE.

Alpha Generation from the New Entries in the ‘KOSDAQ Rising Stars’

By Douglas Kim

  • In this insight, we discuss the potential alpha generation from new entries in the “KOSDAQ Rising Stars.”
  • For the KOSDAQ Rising Stars New Entries in 2023, there was a massive outperformance. Of course, we want to reiterate that past performance is NOT indicative of future performance.
  • On 28 August 2024, KRX provided a list of 39 KOSDAQ Rising Stars companies (including 29 existing ones and 10 new companies).

Hyundai Motor Announces Its Corporate Value Up Policies

By Douglas Kim

  • On 28 August, Hyundai Motor announced its Corporate Value Up policies, including a minimum dividend per share this year targeting 10,000 won per share for common shares. 
  • Hyundai Motor plans to implement a shareholder return policy based on a total shareholder return (TSR) of 35% or more from 2025 to 2027.
  • Hyundai Motor’s Corporate Value Up plan of providing TSR of 35% or more from 2025 to 2027 is certainly better than what it provided in the past three years (26%). 

Impact of Woori Financial’s Tongyang Life Acquisition Below ₩1.5T on Value-Up Flows

By Sanghyun Park

  • Woori Financial’s value-up plan centers on improving the CET1 ratio to boost shareholder returns, with the total return ratio directly tied to the CET1 ratio.
  • The market believed that if the acquisition cost stayed under ₩1.9 trillion, the CET1 ratio impact would be minimal, potentially leading to mid-term gains from non-banking profits.
  • Though this may hurt Tongyang Life’s short-term stock, it opened the door for local institutional investors, especially NPS, to consider Woori Financial for value-up investments.

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