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Smartkarma Daily Briefs

Sep 10
0

Daily Brief Industrials: Advantest Corp, Lonking Holdings, Amaero International Ltd, Hozon New Energy Automobile Co Ltd and more

By | Daily Briefs, Industrials

In today’s briefing:

  • Advantest (6857 JP): High Valuation, Low Visibility
  • Lonking (3339 HK): Small and Beautiful, Net Cash Equal 81% of Share Price
  • Amaero International Ltd – ADDMAN qualification of C103 powder a major milestone
  • Hozon New Energy Automobile Pre-IPO – The Positives – Has Been Ramping Up

Advantest (6857 JP): High Valuation, Low Visibility

By Scott Foster

  • Visibility is poor. Following excellent 1Q results, management raised FY Mar-25 sales guidance by 14%, operating profit guidance by 53% and net profit guidance by 57%. 
  • Strong demand for AI processors and memory should support more than 35% growth in IC tester revenues and a doubling of operating profit in the two years to Mar-26.
  • The shares have dropped to the bottom of their recent trading range, but are still selling at more than 30x our EPS estimate for next fiscal year.

Lonking (3339 HK): Small and Beautiful, Net Cash Equal 81% of Share Price

By Osbert Tang, CFA

  • Industry wheel loader sales rose 15.2% in Aug, continuing the healthy momentum. A low base in 2H24 will be another favourable factor, and Lonking Holdings (3339 HK) is well placed.   
  • Forklift outlook will stay strong and serve as a growth engine. There is also a significant pick-up in demand for industry excavator sales in Jul and Aug.
  • Net cash amounted to 81% of the share price. Including investments, it will increase to 118%. Conservative FY24 consensus earnings forecast means potential upside surprise.

Amaero International Ltd – ADDMAN qualification of C103 powder a major milestone

By Research as a Service (RaaS)

  • RaaS has published an update report on advanced materials manufacturing group Amaero International (ASX:3DA) following its announcement that it has completed qualification of C103 additive manufacturing powder with US advanced manufacturing conglomerate ADDMAN Group more than a quarter ahead of schedule.
  • Amaero notes that expected future sales from this relationship are material to its revenue and is a key assumption underpinning Amaero’s guidance that it will achieve EBITDA break-even in FY26.
  • Our FY26f EBITDA forecast of $0.1m assumes qualification is achieved.

Hozon New Energy Automobile Pre-IPO – The Positives – Has Been Ramping Up

By Sumeet Singh

  • Hozon New Energy Automobile is looking to raise up to US$1bn in its upcoming HK IPO. 
  • Hozon New Energy Automobile (HNEA) is a NEV technology company which sells cars under the Neta brand. The prices of its vehicles generally range between US$15,000 to US$45,000.
  • In this note, we talk about the positive aspects of the deal.

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Sep 10
0

Daily Brief Industrials: Advantest Corp, Lonking Holdings, Amaero International Ltd, Hozon New Energy Automobile Co Ltd and more

By | Daily Briefs, Industrials

In today’s briefing:

  • Advantest (6857 JP): High Valuation, Low Visibility
  • Lonking (3339 HK): Small and Beautiful, Net Cash Equal 81% of Share Price
  • Amaero International Ltd – ADDMAN qualification of C103 powder a major milestone
  • Hozon New Energy Automobile Pre-IPO – The Positives – Has Been Ramping Up

Advantest (6857 JP): High Valuation, Low Visibility

By Scott Foster

  • Visibility is poor. Following excellent 1Q results, management raised FY Mar-25 sales guidance by 14%, operating profit guidance by 53% and net profit guidance by 57%. 
  • Strong demand for AI processors and memory should support more than 35% growth in IC tester revenues and a doubling of operating profit in the two years to Mar-26.
  • The shares have dropped to the bottom of their recent trading range, but are still selling at more than 30x our EPS estimate for next fiscal year.

Lonking (3339 HK): Small and Beautiful, Net Cash Equal 81% of Share Price

By Osbert Tang, CFA

  • Industry wheel loader sales rose 15.2% in Aug, continuing the healthy momentum. A low base in 2H24 will be another favourable factor, and Lonking Holdings (3339 HK) is well placed.   
  • Forklift outlook will stay strong and serve as a growth engine. There is also a significant pick-up in demand for industry excavator sales in Jul and Aug.
  • Net cash amounted to 81% of the share price. Including investments, it will increase to 118%. Conservative FY24 consensus earnings forecast means potential upside surprise.

Amaero International Ltd – ADDMAN qualification of C103 powder a major milestone

By Research as a Service (RaaS)

  • RaaS has published an update report on advanced materials manufacturing group Amaero International (ASX:3DA) following its announcement that it has completed qualification of C103 additive manufacturing powder with US advanced manufacturing conglomerate ADDMAN Group more than a quarter ahead of schedule.
  • Amaero notes that expected future sales from this relationship are material to its revenue and is a key assumption underpinning Amaero’s guidance that it will achieve EBITDA break-even in FY26.
  • Our FY26f EBITDA forecast of $0.1m assumes qualification is achieved.

Hozon New Energy Automobile Pre-IPO – The Positives – Has Been Ramping Up

By Sumeet Singh

  • Hozon New Energy Automobile is looking to raise up to US$1bn in its upcoming HK IPO. 
  • Hozon New Energy Automobile (HNEA) is a NEV technology company which sells cars under the Neta brand. The prices of its vehicles generally range between US$15,000 to US$45,000.
  • In this note, we talk about the positive aspects of the deal.

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Sep 10
0

Daily Brief TMT/Internet: NVIDIA Corp, Via Technologies, LG Display, Dell Technologies , Kinatico and more

By | Daily Briefs, TMT/Internet

In today’s briefing:

  • Select Sector Indices: Inflows to Apple, Palantir, Dell Will Add to SPX Buying
  • Via Technologies Early Look – Wouldn’t Be a Large One to Digest
  • Tech Supply Chain Tracker (10-Sep-2024): SLMs expand in GenAI markets – DIGITIMES.
  • Is NVIDIA’s Unstoppable AI Growth About to Hit a Wall?
  • Dell Technologies & The Growing Demand For AI-Optimized Servers: Is There A Real Upside?
  • Kinatico Ltd – Recurring revenue streams top $21.7m in FY24

Select Sector Indices: Inflows to Apple, Palantir, Dell Will Add to SPX Buying

By Brian Freitas

Via Technologies Early Look – Wouldn’t Be a Large One to Digest

By Clarence Chu

  • Via Technologies (2388 TT) is looking to raise US$220m in its upcoming global depository receipts (GDRs) offering.
  • In July 2024, Via Technologies (Via Tech) announced its board’s resolution to issue up to 75m common shares via a GDR offering.
  • Similar to previous GDR listings, the deal is a long drawn out process with the firm required to jump through a number of board/shareholder/regulatory approval loops.

Tech Supply Chain Tracker (10-Sep-2024): SLMs expand in GenAI markets – DIGITIMES.

By Tech Supply Chain Tracker

  • SLMs aiming to expand presence in GenAI business opportunities, while Joinsoon Electronics plans for 50:50 production split in Thailand by 2025.
  • European carmakers face challenges from potential Chinese retaliation against tariffs; South Korean equipment makers benefit from Chinese companies targeting OLED technology.
  • Global gaming subscription market expected to reach US$19 billion by 2024, with ITRI, SIIQ, MOEA collaborating to develop resilient semiconductor industry ecosystem. Taiwan’s offshore wind farm installation signals industry shifts.

Is NVIDIA’s Unstoppable AI Growth About to Hit a Wall?

By Baptista Research

  • NVIDIA recently reported stellar financial achievements for its second quarter of fiscal 2025 with total revenue reaching $30 billion, marking a significant 122% increase year-over-year.
  • This surge was primarily driven by unprecedented growth in the Data Center segment, which reported revenues of $26.3 billion, reflecting a 154% increase from the previous year.
  • The strong demand for NVIDIA’s latest Hopper GPUs, coupled with the advancing deployment of Blackwell platforms, has significantly contributed to this uptrend.

Dell Technologies & The Growing Demand For AI-Optimized Servers: Is There A Real Upside?

By Baptista Research

  • Dell Technologies Inc. showcased robust performance in the second quarter of fiscal year 2025, driven mainly by solid advancements in artificial intelligence (AI) technology and strong server sales (a staggering 80% jump).
  • The company reported revenue of $25 billion, reflecting a 9% increase year-over-year, and diluted earnings per share (EPS) also rose by 9% to $1.89.
  • This growth was supported by significant demand in their infrastructure solutions group, particularly from Tier 2 cloud service providers, and an increasing engagement in AI server solutions from enterprise customers.

Kinatico Ltd – Recurring revenue streams top $21.7m in FY24

By Research as a Service (RaaS)

  • RaaS has published an update report on ‘Know Your People’ regtech company, Kinatico (ASX:KYP) following its 5 September webinar in which it highlighted for the first time the annual recurring revenue being generated across the group.
  • Total ARR for the group was 76% of revenue or $21.7m, comprising $12m in transactional ARR and $9.7m in SaaS revenue.
  • • Kinatico is targeting 80% of its revenues from SaaS (currently 34%) within three years, which is well ahead of our forecasts for 60% by FY27.

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Sep 10
0

Daily Brief Consumer: Midea Group Co Ltd A, Seven & I Holdings, Trent Ltd, Great Wall Motor, P N Gadgil Jewellers, Nongfu Spring , Dollar General and more

By | Consumer, Daily Briefs

In today’s briefing:

  • Midea Group H Share Listing (300 HK): Valuation Insights
  • 7&I Rejects ACT’s Bid As Too Low, Not Worth Discussing, ACT Whines, 7&I Taps The Sign
  • Midea A/H Listing – Bigger Deal, Better Pricing
  • Midea Group: Quick Overview of HK Offer, Post-Issue Valuations. Attractive.
  • Seven & I Says Not Enough to Alimentation Couche-Tard, Warns of US FTC Barriers
  • SENSEX Index Rebalance Preview: Trent Could Replace Bajaj Finserv; BUT F&O Adds Could Change That
  • The Heat Is On: News Flow and Sentiment in CHINA / HONG KONG (September 7)
  • P N Gadgil Jewellers IPO – RHP Updates & Quick Thoughts on Peer Comp and Valuation
  • Nongfu Spring (9633 HK):  Trading At Below 20x Forward PE With 15% NP 3-Year CAGR
  • Some More Thoughts on Dollar General

Midea Group H Share Listing (300 HK): Valuation Insights

By Arun George

7&I Rejects ACT’s Bid As Too Low, Not Worth Discussing, ACT Whines, 7&I Taps The Sign

By Travis Lundy

  • Late last week, the Nikkei reported Seven & I Holdings (3382 JP) would send a letter to Couche-Tard saying they reviewed ACT’s Proposal and deemed it “inadequate.” Indeed it was.
  • 7&i then published the Board’s letter, saying 7&i remained open to discussions but ACT’s Offer “grossly undervalued” 7&i’s intrinsic value and lacked in other areas. ACT responded with a “letter.”
  • But ACT’s “letter” was a press release aimed not at 7&i but the public. 7&i released a terse response today. ACT is the suitor. It needs to act like it.

Midea A/H Listing – Bigger Deal, Better Pricing

By Sumeet Singh

  • Midea Group Co Ltd A (000333 CH) aims to raise up to US$3.5bn in its H-share listing, the deal is somewhat larger than what was being spoken about earlier.
  • Midea Group is one of the world’s largest home appliance manufacturing companies with a presence in over 200 countries. Its A-shares have been listed since 2013.
  • We have covered the deal background in our previous notes. In this note, we talk about valuations.

Midea Group: Quick Overview of HK Offer, Post-Issue Valuations. Attractive.

By Devi Subhakesan

  • Midea Group Co Ltd A (000333 CH)  is offering 492.1 million shares in Hong Kong, priced between HKD52 and HKD54.8 per share.The valuation looks attractive.
  • Nearly one-third of the Hong Kong share offering has already been subscribed by cornerstone investors.
  • Midea’s strong market share in home appliances, consistent revenue growth, margin expansion, and appealing return ratios make a compelling investment case.

Seven & I Says Not Enough to Alimentation Couche-Tard, Warns of US FTC Barriers

By Oshadhi Kumarasiri

  • Last Friday, Seven & I Holdings (3382 JP) issued a response to Alimentation Couche-Tard (ATD CN)’s non-binding acquisition proposal.
  • At $14.86 per share, Seven & I’s special committee stated that the offer significantly undervalues the company.
  • The response also highlighted that the proposal fails to address the numerous and substantial regulatory challenges the transaction would encounter from U.S. competition authorities.

SENSEX Index Rebalance Preview: Trent Could Replace Bajaj Finserv; BUT F&O Adds Could Change That

By Brian Freitas

The Heat Is On: News Flow and Sentiment in CHINA / HONG KONG (September 7)

By David Mudd

P N Gadgil Jewellers IPO – RHP Updates & Quick Thoughts on Peer Comp and Valuation

By Akshat Shah

  • P N Gadgil Jewellers (1742652D IN) is looking to raise up to US$132m in its India IPO.
  • P N Gadgil Jewellers (PNGJ) is an Indian organized jewellery player. Its product offerings include traditional as well as modern and functional jewellery designs, in gold, diamond, silver and platinum.
  • Previously, we talked about the company’s historical performance. In this note, we provide a summary of its RHP updates and share our quick thoughts on peer comparison and valuation.

Nongfu Spring (9633 HK):  Trading At Below 20x Forward PE With 15% NP 3-Year CAGR

By Steve Zhou, CFA

  • Nongfu Spring (9633 HK)‘s valuation has come down to a much more reasonable 20x forward PE with expected net profit CAGR of 15% for the next 3 years.
  • The derating is largely due to the negative media portrayal of the company’s Nongfu brand since February 2024, resulting in a -18% decline in its water business in 1H24. 
  • Unsweetend tea business on the other hand has continued to shine, growing 59% yoy in sales in 1H24, while operating profit of the segment surged 63% yoy. 

Some More Thoughts on Dollar General

By MBI Deep Dives

  • After Dollar General’s (DG) disastrous earnings couple of weeks ago, I was quite concerned about their prospects in the near-term.

  • However, a week later after digesting through Dollar Tree (DLTR) as well as DG management’s explanation in the Goldman Sachs Retailing Conference, I have updated some of my thoughts about DG…in the positive direction.

  • Nonetheless, I have decided to abide by my decision not to inject more capital to DG, but to increase my notional exposure to DG via long-dated call options. 

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Sep 10
0

Daily Brief Health Care: Terumo Corp, Shanghai Henlius Biotech , Nanosonics Ltd, Tonix Pharmaceuticals Holding, Evaxion Biotech A/S, Oryzon Genomics, Basilea Pharmaceutica Ag and more

By | Daily Briefs, Healthcare

In today’s briefing:

  • Terumo Placement Follow-Up – Correction Has Been Inline with Recent Cross-Shareholding Unwind
  • Terumo (4543 JP): The Current Playbook
  • Shanghai Henlius Biotech (2696.HK) Privatization Update – Some New Information Worth the Attention
  • Nanosonics Ltd (NAN AU): Steering Back to Growth Trajectory; Outlook Is Improving
  • TNXP: Mpox Declared a Public Health Emergency of International Concern by World Health Organization
  • EVAX: Positive Test Data for Two Treatments
  • Oryzon Genomics – First patient dosed in new AML combination study
  • Basilea Pharmaceutica – H2 rewards continue: US$25m Cresemba milestone

Terumo Placement Follow-Up – Correction Has Been Inline with Recent Cross-Shareholding Unwind

By Clarence Chu

Terumo (4543 JP): The Current Playbook

By Arun George

  • Since the US$1.4 billion secondary placement announcement, Terumo Corp (4543 JP)’s shares are down 3.5% from the undisturbed price of JPY2,771 per share (29 August).
  • Looking at recent large Japanese placements is instructive to understand the potential trading pattern. So far, Terumo’s shares have followed the pattern of previous large placements.
  • The offering will likely be priced on 10 September. Despite Kokusai and Honda’s disappointing performance, the average large Japanese placement tends to generate positive returns.

Shanghai Henlius Biotech (2696.HK) Privatization Update – Some New Information Worth the Attention

By Xinyao (Criss) Wang

  • Fosun Pharma will make every effort to promote the success of this privatization. The management has disclosed the afterwards arrangements- Henlius and Fosun Pharma will further expand/integrate in the future.
  • Henlius’ revenue is expected to reach RMB6 billion in 2024 and RMB8-9 billion in next 2-3 years. Even if the privatization fails, things are still manageable due to strong fundamentals.
  • Fosun Pharma will not stop its capital operation against Henlius, but the plans of re-listing could be based on a new entity. So, the Cash Alternative is a better choice. 

Nanosonics Ltd (NAN AU): Steering Back to Growth Trajectory; Outlook Is Improving

By Tina Banerjee

  • Nanosonics Ltd (NAN AU) reported significant turnaround, with recording H2FY24 revenue of A$90M, up 14% over the first half, driven by 20% increase in capital revenue in H2 over H1.
  • For FY25, Nanosonics guided for accelerated revenue growth of 8–12%, driven by growing capital revenue with greater unit volumes and increasing recurring revenue aligned with growth in installed base.
  • The company expects FY25 gross profit margin of 77–79% versus 77.9% in FY24, on higher production volumes in FY25 after reducing inventory in FY24.

TNXP: Mpox Declared a Public Health Emergency of International Concern by World Health Organization

By Zacks Small Cap Research

  • In August 2024, the World Health Organization (WHO) declared mpox a public health emergency of international concern.
  • The number of cases of mpox in the Democratic Republic of Congo (DRC) has totaled more than 15,600 this year with 537 deaths.
  • In the past month, over 100 laboratory confirmed cases of Clade 1b have been reported in neighboring countries of the DRC.

EVAX: Positive Test Data for Two Treatments

By Zacks Small Cap Research

  • EVAX is a clinical stage company that has proprietary AI models designed to more efficiently and more accurately target much-needed treatments.
  • The company has two streams of possible revenue: from the treatments themselves and from the licensing of the AI technology.
  • The company announced that two of its vaccine candidates had positive testing data that furthers our belief in the ability of Evaxion to bring multiple life-changing products to market.

Oryzon Genomics – First patient dosed in new AML combination study

By Edison Investment Research

Oryzon Genomics has announced the commencement of patient dosing in the investigator-initiated Phase Ib trial evaluating iadademstat as a combination treatment in first-line acute myeloid leukemia (AML). The study, which aims to recruit c 24 patients, is sponsored by Oregon Health & Science University (OHSU). It is designed to evaluate the safety, tolerability and optimal dose of iadademstat when administered alongside standard-of-care treatments venetoclax and azacitidine. It will also test for preliminary efficacy. Oryzon has previously generated encouraging results when investigating iadademstat in combination with azacitidine for newly diagnosed AML patients (ALICE trial) and this new study will explore potential further synergies of the broader combination.

Basilea Pharmaceutica – H2 rewards continue: US$25m Cresemba milestone

By Edison Investment Research

H224 continues to be a rewarding period for Basilea Pharmaceutica, with the announcement of a third successive milestone payment for Cresemba in the last month following strong sales performance (+24% y-o-y growth in in-market sales to US$489m for the 12 months ending March 2024). The latest milestone (US$25m/CHF21m) was triggered by license partner Pfizer exceeding a predetermined sales threshold in Europe. In total, Cresemba has raked in upwards of CHF34m in milestone payments in the year to date (with c CHF32m in H224 thus far), and we expect a further c CHF5m before year-end based on the most recent guidance from management. Beyond Cresemba, we expect the key focus areas for Basilea in H224 to be finalising a US commercialisation partner for Zevtera and the initiation of the first Phase III study for fosmanogepix (in candidemia/invasive candidiasis).

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Sep 10
0

Daily Brief Financials: Haitong Securities Co Ltd (H), K Bank, Bajaj Housing Finance, Hotel Property Investments, USD, Midea Real Estate Holding , NIFTY Index, Solana, Martin Currie Portfolio Invest and more

By | Daily Briefs, Financials

In today’s briefing:

  • Guotai Junan (2611 HK) & Haitong (6837 HK) Merger Creates China’s Major Player
  • K Bank IPO – The Biggest IPO in Korea in 2024
  • Bajaj Housing Finance IPO- Forensic Analysis
  • Hotel Property (HPI AU) Rejects Charter Hall’s A$3.65/Share Offer
  • The Story Behind K-Bank Leaking Pricing Details Before the IPO Prospectus Dropped
  • Global FX & Rates: US rates and FX market after a rollercoaster Friday
  • Midea Real Estate (3990 HK): Now Trading Ex-In-Specie
  • EQD | The NIFTY Potential Upside From Here
  • Prasad Mahadik:
Is Solana Going Modular?
  • Martin Currie Global Portfolio Trust – Lower rates should be beneficial for performance

Guotai Junan (2611 HK) & Haitong (6837 HK) Merger Creates China’s Major Player

By David Blennerhassett

  • Guotai Junan Securities (2611 HK) and Haitong Securities Co Ltd (H) (6837 HK), two of China’s leading state-backed brokerages, intend to merger via a share swap, subject to regulatory approvals.
  • Via a Merger by Absorption. GJS will issue new A and H shares to Haitong shareholders. The ratio hasn’t been firmed. Upon completion, the MergeCo creates China’s largest securities entity.
  • A merger is welcome – possibly mandated – amid challenging capital markets and a tightening regulatory backdrop.

K Bank IPO – The Biggest IPO in Korea in 2024

By Douglas Kim

  • K Bank is the biggest IPO in Korea in 2024. The IPO price range is from 9,500 won to 12,000 won. It is offering 82 million shares in this IPO.
  • According to the bankers’ valuation, the expected market cap of the company is from 4.0 trillion won to 5.0 trillion won.
  • The IPO deal size is 779 billion (US$579 million) to 984 billion won (US$732 million). 

Bajaj Housing Finance IPO- Forensic Analysis

By Nitin Mangal

  • Bajaj Housing Finance (BHF IN) upcoming IPO is worth INR 65.6 bn, comprising of fresh issue worth INR 35.6 bn and offer for sale worth INR 30 bn. 
  • The company reports strong KPIs and has been better than peers in several aspects. AUM growth is strong and is driven by Developer Financing and Lease Rental Discounting. 
  • There are few important cautions regarding the NHB observations and assignments.

Hotel Property (HPI AU) Rejects Charter Hall’s A$3.65/Share Offer

By David Blennerhassett

The Story Behind K-Bank Leaking Pricing Details Before the IPO Prospectus Dropped

By Sanghyun Park

  • To justify a higher multiple, K-Bank is comparing itself to international internet banks, with KakaoBank as the only local peer. Differences in market conditions could complicate this comparison.
  • This might explains why K-Bank is cautiously testing the market by announcing the rights issue first and delaying the prospectus, amid regulatory crackdowns on inflated IPOs.
  • Controversy over high multiples from overseas peers and KakaoBank’s legal discount will be key in setting K-Bank’s IPO pricing.

Global FX & Rates: US rates and FX market after a rollercoaster Friday

By At Any Rate

  • Markets experienced significant volatility in response to comments from New York Fed presidents and Governor Waller, resulting in pricing of around 30 basis points for the September meeting
  • Labor market data suggests softening, with revisions showing a decline in private sector payroll growth, indicating a shift towards imminent Fed easing
  • Opportunities in Treasuries lie in steepeners, with a focus on front end steepening and potential for further broadening of the steepening trend as the Fed moves towards easing.

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

Midea Real Estate (3990 HK): Now Trading Ex-In-Specie

By David Blennerhassett

  • Back on the 23 June 2024, property developer Midea Real Estate Holding (3990 HK) announced the in-specie distribution of its core ops, either in unlisted scrip, or HK$5.90/share in cash.
  • The in-specie involved distributing 97.8% of Midea’s assets (involved in property development and sales); accounting for 95% of revenue and ~91% of profit. All figures as at FY23.
  • Midea went ex yesterday, closing down just HK$4.87/share. Midea, ex-in-specie, is currently trading at a trailing 0.6x P/B, and 2.3x PER. Pricing looks full.

EQD | The NIFTY Potential Upside From Here

By Nico Rosti

  • The NIFTY Index closed down last week, but if the rally restarts from here it would be good to analyse the pattern trend, to estimate how high it could go.
  • The current WEEKLY pattern favors uptrend that last for 2 or 3 weeks up in a row, on average, and up to 5 consecutive weeks up in a row.
  • Some additional reasoning is necessary to highlight the strongest resistance levels, we will do it in the insight.

Prasad Mahadik:
Is Solana Going Modular?

By The Delphi Podcast

  • Austin from Solana tweeted about Solana’s new network extensions
  • Kyle Samani discussed how Solana rollups will differ from Ethereum’s
  • Prasad observed developments in Solana rollups, including SVM separation and new apps like Magic Block and Spicenet.

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

Martin Currie Global Portfolio Trust – Lower rates should be beneficial for performance

By Edison Investment Research

Martin Currie Global Portfolio Trust’s (MNP’s) performance was negatively affected in 2022 by the shift in interest rate expectations as US rates quickly moved up from 0.25% to 5.50%, in response to rising prices. Now, with inflation coming down, the consensus view is that US interest rates will soon be lowered, which should be beneficial for the valuation of long-duration growth stocks. Also, Zehrid Osmani, MNP’s manager since October 2018, has a proven track record of successful stock picking during periods when the stock market is driven by company fundamentals rather than when investor focus is on macroeconomic developments. Hence, Osmani has a high degree of confidence that there are better times ahead for MNP’s performance.

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Sep 09
0

Daily Brief Quantitative Analysis: China & HK Strategy: Sell in September and Go Away and more

By | Daily Briefs, Quantitative Analysis

In today’s briefing:

  • China & HK Strategy: Sell in September and Go Away, Really?
  • KRX Foreign Holding Weekly (Sep 6th): Samsung Electronics, Sk Hynix, Kia Corp.
  • TWSE Foreign Holding Weekly (Sep 6th): Yageo, Shin Kong Financial, TSMC, Mediatek, Ctbc Financial
  • TWSE Short Interest Weekly (Sep 6th): TSMC, Cathay Financial, Visual Photonics Epitaxy, Innolux

China & HK Strategy: Sell in September and Go Away, Really?

By Osbert Tang, CFA

  • The HSI has declined 3% MTD, but based on history, there is more downside risk. Over the last 10 years, the Index has only returned positively in two September.
  • October is also not good, and the Index declined an average of 1.9% in the month since 2019. However, November and December are normally the best-performing ones. 
  • Prudent investors should stay conservative until October. By the end of next month, there are opportunities to increase position to take hold of the potential year-end rally. 

KRX Foreign Holding Weekly (Sep 6th): Samsung Electronics, Sk Hynix, Kia Corp.

By Ke Yan, CFA, FRM

  • We analyzed the changes in foreign holdings of KRX stocks as of Sep 6th which has an aggregated holding worth USD545.5bn.
  • We estimate that foreign flows to be outflows of USD1,276mln. We tabulate the league table for top changes by value for 1W/4W/1Y and top stocks held by foreign institutions.
  • We highlight changes of foreign holdings in Samsung Electronics, Sk Hynix, Kia Corp..

TWSE Foreign Holding Weekly (Sep 6th): Yageo, Shin Kong Financial, TSMC, Mediatek, Ctbc Financial

By Ke Yan, CFA, FRM

  • We analyzed the changes in foreign holdings of TWSE Stocks as of Sep 6th which has an aggregated holding worth USD928.2bn.
  • We estimate that foreign flows to be outflows of USD2,648mln. We tabulate the league table for top changes by value for 1W/4W/1Y and top stocks held by foreign institutions.
  • We highlight changes of foreign holdings in Yageo, Shin Kong Financial, TSMC, Mediatek, Ctbc Financial, Quanta Computer, Unimicron Technology.

TWSE Short Interest Weekly (Sep 6th): TSMC, Cathay Financial, Visual Photonics Epitaxy, Innolux

By Ke Yan, CFA, FRM

  • We analyzed the changes in short interest of TWSE Stocks as of Sep 6th which has an aggregated short interest worth USD19.8bn.
  • We tabulate league table for top short by value and short as multiple of ADT, as well as weekly increases & decreases in short value, short as multiple of ADT.
  • We highlight short interest changes in TSMC, Cathay Financial, Visual Photonics Epitaxy, Innolux, Formosa Petrochemical, Ctbc Financial, Shin Kong Financial, Alchip Technologies.

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Sep 09
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Daily Brief ESG: Parent-Subsidiary Listing Issues Lead to Reasons Why ROE Is Not Increasing and more

By | Daily Briefs, ESG

In today’s briefing:

  • Parent-Subsidiary Listing Issues Lead to Reasons Why ROE Is Not Increasing

Parent-Subsidiary Listing Issues Lead to Reasons Why ROE Is Not Increasing

By Aki Matsumoto

  • The most significant reason for decreasing parent-subsidiary listings is the presence of overseas investors who have long pointed out the problems with this issue. This TSE’s request will support them.
  • The issue of parent-subsidiary listing is whether the listed parent should incorporate the profitability of equity-method affiliate/listed subsidiary to enhance its profitability, or effectively use its assets by divesting them.
  • If extending to equity-method affiliates, there are many companies that haven’t made progress in reviewing their business portfolios, and this is where the fundamental issue of ROE not increasing lies.

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Sep 09
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Daily Brief Thematic (Sector/Industry): Ohayo Japan | Volatile Week Ahead and more

By | Daily Briefs, Thematic (Sector/Industry)

In today’s briefing:

  • Ohayo Japan | Volatile Week Ahead
  • Japan Morning Connection: US Export Curbs Tighten on China
  • Global Tech Weekly – Focus on AI, Semis, China V U.S., Software V Hardware. AI Party Ending?
  • Improvement in Solar and Battery Technology

Ohayo Japan | Volatile Week Ahead

By Mark Chadwick

  • U.S. stocks slumped Friday, capping a volatile week as weak August jobs data fueled concerns about the economy
  • Seiren: Hong Kong’s activist fund Oasis Management acquired a 6.28% stake in Seiren, becoming its third-largest shareholder
  • Toyota announced plans to produce next-generation EV batteries at new plants in Fukuoka and Hyogo prefectures.

Japan Morning Connection: US Export Curbs Tighten on China

By Andrew Jackson

  • The US released its framework for further semiconductor related export restrictions to China late last week, including access to quantum computers and components, chipmaking tools including gate all-around (GAA) technologies.
  • US homebuilders jumped after a survey showed new home orders rebounded sharply in August ahead of the expected rate cuts in September.
  • Plenty of positive headlines for Alimentation Couche-Tard’s bid for 7&I, including comments that they are confident financing the deal in cash, and ready and willing to advance friendly discussions.

Global Tech Weekly – Focus on AI, Semis, China V U.S., Software V Hardware. AI Party Ending?

By Neil Campling

Improvement in Solar and Battery Technology

By Alex Ng

  • Recent improvements in solar and battery technologies have been driven by advances in materials science, manufacturing techniques, and system efficiency.
  • Solid-State batteries replace the liquid electrolyte in traditional lithium-ion batteries with a solid electrolyte, energy density, and charging speeds. They are seen as a game-changer, especially for electric vehicles.
  • Both solar and battery technologies are becoming cheaper, making renewable energy more accessible and economically viable.

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Sep 09
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Daily Brief Credit: Morning Views Asia: China Vanke and more

By | Credit, Daily Briefs

In today’s briefing:

  • Morning Views Asia: China Vanke

Morning Views Asia: China Vanke

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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