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Smartkarma Daily Briefs

Daily Brief Energy/Materials: Alcoa Inc and more

By | Daily Briefs, Energy & Materials Sector

In today’s briefing:

  • Alcoa Corp: The Alumina Price Upside & Other Drivers

Alcoa Corp: The Alumina Price Upside & Other Drivers

By Ishan Majumdar

  • Alcoa Corp is seeing improving shipment volumes and benefitting heavily from the stronger U.S. dollar as well as the higher alumina price index.
  • Higher costs and lower aluminum and alumina premiums combined with lower metal prices, which included about $40 million to set inventories to net realizable value, more than offset those advantages.
  • It is worth highlighting that Alcoa holds accreditations from the Aluminum Stewardship Initiative, the most comprehensive independent system for auditing ethical aluminum production.

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Daily Brief Financials: Moody’s Corp and more

By | Daily Briefs, Financials

In today’s briefing:

  • Moody’s Corporation: The Latam Expansion & Other Drivers

Moody’s Corporation: The Latam Expansion & Other Drivers

By Ishan Majumdar

  • Moody’s Corporation has seen its business get hit badly by the impact of volatile market conditions and foreign exchange fluctuations.
  • The issuance activity for high yield bonds and leveraged loans has been dampened in the prevailing high-interest rate environment affecting the company.
  • Given the current environmental uncertainty, we provide the stock of Moody’s Corporation with a ‘Hold’ rating with a revision in the target price.

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Daily Brief Health Care: Stryker Corp and more

By | Daily Briefs, Healthcare

In today’s briefing:

  • Stryker Corporation: The Vocera Acquisition & Other Drivers

Stryker Corporation: The Vocera Acquisition & Other Drivers

By Ishan Majumdar

  • Stryker Corporation has faced a challenging macro environment and is undergoing various supply shortages but this did not stop the company from delivering a solid growth in organic sales.
  • Spine and orthopedics net sales also increased in the quarter in constant currency.
  • We prove the stock of Stryker Corporation with a ‘Hold’ rating and a revision in the target price.

💡 Before it’s here, it’s on Smartkarma

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The Smartkarma Preview Pass is your entry to the Independent Investment Research Network

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  • ✓ Company Data and News
  • ✓ Events & Webinars

Daily Brief Industrials: WCP and more

By | Daily Briefs, Industrials

In today’s briefing:

  • Messed up Korea IPO Pipeline and Unexpected Beneficiaries

Messed up Korea IPO Pipeline and Unexpected Beneficiaries

By Sanghyun Park

  • Hyundai Oilbank, this year’s biggest fish, dropped the IPO. Another big fish, CJ Olive Young, also officially announced that it would give up its listing.
  • The bookbuilding results of SOCAR turned out to be disastrous, suggesting an increased possibility that a higher-than-typical flow level will likely be seen in WCP and K Bank. 
  • In particular, despite the valuation issues, we should pay attention to the possibility of an unexpected level of local institutional flows flocking to WCP, which has less schedule risk.

💡 Before it’s here, it’s on Smartkarma

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The Smartkarma Preview Pass is your entry to the Independent Investment Research Network

  • ✓ Unlimited Research Summaries
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  • ✓ Custom Watchlists
  • ✓ Company Data and News
  • ✓ Events & Webinars

Daily Brief TMT/Internet: Softbank Corp, Microsoft Corp and more

By | Daily Briefs, TMT/Internet

In today’s briefing:

  • JPX Nikkei 400 Index Rebalance: Some Biggish Impact Stocks
  • Index Rebalance & ETF Flow Recap: NKY, JPXNK400, FTSE CH50/A50/TW50, SenseTime, Orica
  • Microsoft Corporation: The Continuing Cloud Momentum

JPX Nikkei 400 Index Rebalance: Some Biggish Impact Stocks

By Brian Freitas

  • There are 36 adds and 34 deletes for the JPX Nikkei 400 Index to bring the number of index constituents back to 400. Some of the changes are interesting.
  • Based on the adds, deletes and capping changes, we estimate one way turnover of 4.75% and a two-way trade of JPY 444.45bn (US$3.3bn).
  • Oriental Land (4661 JP) is a delete from the JPX Nikkei 400 Index but a high probability inclusion to the Nikkei 225 (NKY INDEX) at the September rebalance.

Index Rebalance & ETF Flow Recap: NKY, JPXNK400, FTSE CH50/A50/TW50, SenseTime, Orica

By Brian Freitas


Microsoft Corporation: The Continuing Cloud Momentum

By Ishan Majumdar

  • Despite the massive size of its revenues, Microsoft has proven to be a remarkable story in terms of percentage-basis top-line growth over the past few years.
  • The Microsoft Cloud achieved a quarterly revenue milestone of $25 billion for the first time, up 28% and 33% in constant currency.
  • Additionally, Microsoft acquired the cyber threat research and analysis company Miburo to advance threat intelligence gathering on fresh foreign cyber threats.

💡 Before it’s here, it’s on Smartkarma

Sign Up for Free

The Smartkarma Preview Pass is your entry to the Independent Investment Research Network

  • ✓ Unlimited Research Summaries
  • ✓ Personalised Alerts
  • ✓ Custom Watchlists
  • ✓ Company Data and News
  • ✓ Events & Webinars

Daily Brief Industrials: WCP and more

By | Daily Briefs, Industrials

In today’s briefing:

  • Messed up Korea IPO Pipeline and Unexpected Beneficiaries

Messed up Korea IPO Pipeline and Unexpected Beneficiaries

By Sanghyun Park

  • Hyundai Oilbank, this year’s biggest fish, dropped the IPO. Another big fish, CJ Olive Young, also officially announced that it would give up its listing.
  • The bookbuilding results of SOCAR turned out to be disastrous, suggesting an increased possibility that a higher-than-typical flow level will likely be seen in WCP and K Bank. 
  • In particular, despite the valuation issues, we should pay attention to the possibility of an unexpected level of local institutional flows flocking to WCP, which has less schedule risk.

💡 Before it’s here, it’s on Smartkarma

Sign Up for Free

The Smartkarma Preview Pass is your entry to the Independent Investment Research Network

  • ✓ Unlimited Research Summaries
  • ✓ Personalised Alerts
  • ✓ Custom Watchlists
  • ✓ Company Data and News
  • ✓ Events & Webinars

Daily Brief Consumer: SJM Holdings, Super Hi International Holding, Yashili International Holdings, Zomato and more

By | Consumer, Daily Briefs

In today’s briefing:

  • Last Week In Event SPACE: SJM, Yashili, Cayman Headcount, ResApp, Honda Tsushin Kogyo
  • Visit to a Haidilao Restaurant in London & Listing of Super Hi International in Hong Kong
  • (Mostly) Asia-Pac Weekly Risk Arb Wrap: ResApp, Honda Tsushin Kogyo, Yashili, Link Admin, Lifestyle
  • ECM Weekly (7th Aug 2022) – Zomato, Orica, China Tourism, Hongjiu Fruit, Giant Biogene, Socar

Last Week In Event SPACE: SJM, Yashili, Cayman Headcount, ResApp, Honda Tsushin Kogyo

By David Blennerhassett

  • Participate in SJM Holdings (880 HK)‘s Excess Application Auction, though one would need to bid for a fantastically large quantity of shares to get anything, because everyone else will
  • At a 11% gross spread to terms, and potential 4Q22 completion, Yashili(1230 HK) IS A CLEAR BUY. The world is a bit risk averse and it shows up in spreads.
  • The ‘headcount test‘ for Cayman-incorporated companies failed to move with the times and address the fact that the majority of shares of Hong Kong-listed companies were held by HKSCC Nominees.

Visit to a Haidilao Restaurant in London & Listing of Super Hi International in Hong Kong

By Douglas Kim

  • In this insight, we discuss our recent visit to a Haidilao restaurant in London and the listing of Super Hi International in Hong Kong. 
  • On 13 July, Haidilao (6862 HK) provided the IPO prospectus of Super Hi International for a separate listing in Hong Kong bourse.
  • By spinning off Super Hi and listing this newco in Hong Kong, Haidilao is capitalizing on its best known global brand for hot pots amid zero COVID policy in China.

(Mostly) Asia-Pac Weekly Risk Arb Wrap: ResApp, Honda Tsushin Kogyo, Yashili, Link Admin, Lifestyle

By David Blennerhassett


ECM Weekly (7th Aug 2022) – Zomato, Orica, China Tourism, Hongjiu Fruit, Giant Biogene, Socar

By Clarence Chu

  • Aequitas Research puts out a weekly update on the deals that were covered by the team recently along with updates for upcoming IPOs.
  • Placements continued to take center stage this week, beginning with Uber’s clean-up sale of Zomato.
  • Socar launched its one-day bookbuild earlier in the week. We continued looking at the upcoming deals in our pipeline. 

💡 Before it’s here, it’s on Smartkarma

Sign Up for Free

The Smartkarma Preview Pass is your entry to the Independent Investment Research Network

  • ✓ Unlimited Research Summaries
  • ✓ Personalised Alerts
  • ✓ Custom Watchlists
  • ✓ Company Data and News
  • ✓ Events & Webinars

Daily Brief Thematic (Sector/Industry): Asia Gaming: Performance of Philippines Casinos Reinforces Our Bullish Outlook for the Market and more

By | Daily Briefs, Thematic (Sector/Industry)

In today’s briefing:

  • Asia Gaming: Performance of Philippines Casinos Reinforces Our Bullish Outlook for the Market
  • Japan Stocks on the Move | Money Forward, Monotaro, CyberAgent
  • GEM Weekly (5 Aug 2022): Asia PMIs, SK CPI, India Interest Rates; Alibaba, TSMC, NetEase, Tencent
  • China Healthcare Weekly (Aug.5) – HK IPO, Innovent, BeiGene, the Largest IVD Centralized Procurement

Asia Gaming: Performance of Philippines Casinos Reinforces Our Bullish Outlook for the Market

By Howard J Klein

  • Philippine casinos are on a run in a rapid recovery path from covid headwinds.
  • Entertainment City operators are leading the charge. Our favorite remains Bloomberry Resorts for a steady growth path to a projected EBITDA of US$500m by 2027.
  • Macau continues beset by China headwinds with no certain estimates of duration. Manila casinos will benefit from growing cross border arrivals of tourists and VIPs.

Japan Stocks on the Move | Money Forward, Monotaro, CyberAgent

By Mark Chadwick

  • The Nikkei was up 0.6% last week (-2.1% YTD) while the yen weakened 1.2% to 135/$ 
  • Prime Minister Kishida met with US House Speaker Nancy Pelosi. China cancelled a meeting between the Foreign Ministers of Japan and China.  
  • Record high temperatures of 40c, record high Covid cases, 575k people evacuated due to torrential rain & flooding…..keep calm and carry on.

GEM Weekly (5 Aug 2022): Asia PMIs, SK CPI, India Interest Rates; Alibaba, TSMC, NetEase, Tencent

By Wium Malan, CFA


China Healthcare Weekly (Aug.5) – HK IPO, Innovent, BeiGene, the Largest IVD Centralized Procurement

By Xinyao (Criss) Wang

  • IVD field ushered in the largest centralized procurement in history – the liver function biochemical testing reagents,which would bring great reshuffle effect to the competition pattern of biochemical diagnostics market.
  • Innovent Biologics Inc (1801 HK) and Sanofi reached two major cooperation. Meanwhile, Innovent’s CCO Liu Min resigned. We deep dived the logic and impact behind. 
  • For HK IPO, market participants have come up with ways to reduce issuance scale in an attempt to stabilize the performance of new shares after IPO, which wouldn’t help.

💡 Before it’s here, it’s on Smartkarma

Sign Up for Free

The Smartkarma Preview Pass is your entry to the Independent Investment Research Network

  • ✓ Unlimited Research Summaries
  • ✓ Personalised Alerts
  • ✓ Custom Watchlists
  • ✓ Company Data and News
  • ✓ Events & Webinars

Daily Brief Equity Bottom-Up: Alcoa Corp: The Alumina Price Upside & Other Drivers and more

By | Daily Briefs, Equity Bottom-Up

In today’s briefing:

  • Alcoa Corp: The Alumina Price Upside & Other Drivers
  • Microsoft Corporation: The Continuing Cloud Momentum
  • Moody’s Corporation: The Latam Expansion & Other Drivers
  • Stryker Corporation: The Vocera Acquisition & Other Drivers

Alcoa Corp: The Alumina Price Upside & Other Drivers

By Ishan Majumdar

  • Alcoa Corp is seeing improving shipment volumes and benefitting heavily from the stronger U.S. dollar as well as the higher alumina price index.
  • Higher costs and lower aluminum and alumina premiums combined with lower metal prices, which included about $40 million to set inventories to net realizable value, more than offset those advantages.
  • It is worth highlighting that Alcoa holds accreditations from the Aluminum Stewardship Initiative, the most comprehensive independent system for auditing ethical aluminum production.

Microsoft Corporation: The Continuing Cloud Momentum

By Ishan Majumdar

  • Despite the massive size of its revenues, Microsoft has proven to be a remarkable story in terms of percentage-basis top-line growth over the past few years.
  • The Microsoft Cloud achieved a quarterly revenue milestone of $25 billion for the first time, up 28% and 33% in constant currency.
  • Additionally, Microsoft acquired the cyber threat research and analysis company Miburo to advance threat intelligence gathering on fresh foreign cyber threats.

Moody’s Corporation: The Latam Expansion & Other Drivers

By Ishan Majumdar

  • Moody’s Corporation has seen its business get hit badly by the impact of volatile market conditions and foreign exchange fluctuations.
  • The issuance activity for high yield bonds and leveraged loans has been dampened in the prevailing high-interest rate environment affecting the company.
  • Given the current environmental uncertainty, we provide the stock of Moody’s Corporation with a ‘Hold’ rating with a revision in the target price.

Stryker Corporation: The Vocera Acquisition & Other Drivers

By Ishan Majumdar

  • Stryker Corporation has faced a challenging macro environment and is undergoing various supply shortages but this did not stop the company from delivering a solid growth in organic sales.
  • Spine and orthopedics net sales also increased in the quarter in constant currency.
  • We prove the stock of Stryker Corporation with a ‘Hold’ rating and a revision in the target price.

💡 Before it’s here, it’s on Smartkarma

Sign Up for Free

The Smartkarma Preview Pass is your entry to the Independent Investment Research Network

  • ✓ Unlimited Research Summaries
  • ✓ Personalised Alerts
  • ✓ Custom Watchlists
  • ✓ Company Data and News
  • ✓ Events & Webinars

Daily Brief ECM: Messed up Korea IPO Pipeline and Unexpected Beneficiaries and more

By | Daily Briefs, ECM

In today’s briefing:

  • Messed up Korea IPO Pipeline and Unexpected Beneficiaries
  • Visit to a Haidilao Restaurant in London & Listing of Super Hi International in Hong Kong
  • ECM Weekly (7th Aug 2022) – Zomato, Orica, China Tourism, Hongjiu Fruit, Giant Biogene, Socar

Messed up Korea IPO Pipeline and Unexpected Beneficiaries

By Sanghyun Park

  • Hyundai Oilbank, this year’s biggest fish, dropped the IPO. Another big fish, CJ Olive Young, also officially announced that it would give up its listing.
  • The bookbuilding results of SOCAR turned out to be disastrous, suggesting an increased possibility that a higher-than-typical flow level will likely be seen in WCP and K Bank. 
  • In particular, despite the valuation issues, we should pay attention to the possibility of an unexpected level of local institutional flows flocking to WCP, which has less schedule risk.

Visit to a Haidilao Restaurant in London & Listing of Super Hi International in Hong Kong

By Douglas Kim

  • In this insight, we discuss our recent visit to a Haidilao restaurant in London and the listing of Super Hi International in Hong Kong. 
  • On 13 July, Haidilao (6862 HK) provided the IPO prospectus of Super Hi International for a separate listing in Hong Kong bourse.
  • By spinning off Super Hi and listing this newco in Hong Kong, Haidilao is capitalizing on its best known global brand for hot pots amid zero COVID policy in China.

ECM Weekly (7th Aug 2022) – Zomato, Orica, China Tourism, Hongjiu Fruit, Giant Biogene, Socar

By Clarence Chu

  • Aequitas Research puts out a weekly update on the deals that were covered by the team recently along with updates for upcoming IPOs.
  • Placements continued to take center stage this week, beginning with Uber’s clean-up sale of Zomato.
  • Socar launched its one-day bookbuild earlier in the week. We continued looking at the upcoming deals in our pipeline. 

💡 Before it’s here, it’s on Smartkarma

Sign Up for Free

The Smartkarma Preview Pass is your entry to the Independent Investment Research Network

  • ✓ Unlimited Research Summaries
  • ✓ Personalised Alerts
  • ✓ Custom Watchlists
  • ✓ Company Data and News
  • ✓ Events & Webinars