Smartkarma Daily Briefs, Author at Smartkarma

Sep 04

Daily Brief ESG: Upfield – ESG Report – Lucror Analytics and more

By Smartkarma Daily Briefs | Daily Briefs, ESG

In today’s briefing:

Upfield – ESG Report – Lucror Analytics
Boels – ESG Report – Lucror Analytics
Verisure – ESG Report – Lucror Analytics

Upfield – ESG Report – Lucror Analytics

By Tanvi Arora

Lucror Analytics’ ESG Scores are based on a 3-tiered scale and are adjusted for Controversies (if applicable).
We assess Upfield’s ESG as “Adequate”, in line with its Governance score. The Environmental and Social pillars are “Strong”. Controversies are “Immaterial” and Disclosure is “Strong”.

Boels – ESG Report – Lucror Analytics

By Leonard Law, CFA

Lucror Analytics’ ESG Scores are based on a 3-tiered scale and are adjusted for Controversies (if applicable).
We assess Boels’ ESG as “Adequate”, in line with its Environmental, Social and Governance scores. Controversies are “Immaterial” and Disclosure is “Adequate”.

Verisure – ESG Report – Lucror Analytics

By Leonard Law, CFA

Lucror Analytics’ ESG Scores are based on a 3-tiered scale and are adjusted for Controversies (if applicable).
We assess Verisure’s ESG as “Strong”, in line with its Social score, while the Environmental and Governance scores are “Adequate”. Controversies are “Immaterial” and Disclosure is “Strong”.

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Sep 04

Daily Brief ECM: CICT Placement – Accretive Acquisition and more

By Smartkarma Daily Briefs | Daily Briefs, ECM

In today’s briefing:

CICT Placement – Accretive Acquisition, Should Be Favored by Existing Unitholders
Auckland Airport Possible Placement – Getting Closer to a US$800m Cleanup
Didi Global Q224 Results: EBITA Margin Up | OpCF Still Strong | But Growth Slowed Noticeably

CICT Placement – Accretive Acquisition, Should Be Favored by Existing Unitholders

By Clarence Chu

Capitaland Integrated Commercial Trust (CICT SP) is looking to raise around S$350m (US$267m) in its primary placement. Included in the issuance is a preferential offering to raise an additional S$757m.
The proceeds will be geared towards acquiring a 50% interest in the ION Orchard mall from its Sponsor.
In this note, we run the deal through our ECM framework and comment on deal dynamics.

Auckland Airport Possible Placement – Getting Closer to a US$800m Cleanup

By Sumeet Singh

Almost exactly a year ago, Auckland City Council (ACC) raised around US$320m via selling around 7% of its stake in Auckland Intl Airport (AIA NZ).
ACC still has an 11% stake left, which it now plans to transfer to a future fund, which will be free to sell the shares
In this note, we will talk about the possible placement and other deal dynamics.

Didi Global Q224 Results: EBITA Margin Up | OpCF Still Strong | But Growth Slowed Noticeably

By Daniel Hellberg

Estimated take rate up vs year ago and vs Q124, and EBITA margin turned +ive
However, revenue growth in core China market slowed considerably in Q224
Cash Flow and Liquidity both appear ample, little pressure to raise new funds

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Sep 04

Daily Brief Thematic (Sector/Industry): Ohayo Japan | Nikkei Poised to Open Lower and more

By Smartkarma Daily Briefs | Daily Briefs, Thematic (Sector/Industry)

In today’s briefing:

Ohayo Japan | Nikkei Poised to Open Lower
Japan Morning Connection: Expect Volatility with Retail and SPE Stocks Under Pressure
[Blue Lotus Daily-TMT Update]:NTESUS/BABAUS/700HK/PDDUS/JDUS/VIPSUS/1810HK/SHEIN/WMTUS/4385JP/EBAYUS
# 54 India Insight: TCS Partnered with Google, Vedanta Bond Issuance, Mankind Raise Debt
[Blue Lotus Daily]:1519 HK/ZTO US/ATAT US/TCOM US/9926 HK/Macro Update

Ohayo Japan | Nikkei Poised to Open Lower

By Mark Chadwick

U.S. stocks tumbled on Tuesday as September trading began, with major indexes posting their worst declines since August 5
UNIQLO’s August domestic same-store sales increased 25.3% year-on-year, the highest growth since February 2023
Bain Capital has made a 600 billion yen counteroffer to acquire Japanese firm Fuji Soft, outbidding KKR’s earlier 560 billion yen offer

Japan Morning Connection: Expect Volatility with Retail and SPE Stocks Under Pressure

By Andrew Jackson

Echoes of August with Japan looking to start the day very weak on the lead from US semi related.
Expect heavy selling for recent retail margin favourites e.g. Mercari, IHI, KHI and Socionext, and SPE winners such as Kokusai and Advantest, although the sector will start under heavy pressure.
Nothing from Nikkei Inc. yet on their NKY225 rebalance decision, but expect outsized volatility today with many multi-strategy pods shuttered during the August sell off.

[Blue Lotus Daily-TMT Update]:NTESUS/BABAUS/700HK/PDDUS/JDUS/VIPSUS/1810HK/SHEIN/WMTUS/4385JP/EBAYUS

By Ying Pan

NTES US/BABA US: NPPA Released August Domestic Game Code Approvals.(+/+)
700 HK: 700 HK: <Honor of Kings> July Grossing Up 26% MoM. (+)
BABA US: Alibaba backed AI-startup launches video and music generation model (+)

# 54 India Insight: TCS Partnered with Google, Vedanta Bond Issuance, Mankind Raise Debt

By Sudarshan Bhandari

ICICI Bank and Zee Entertainment Stocks in Focus Amid SEBI Chief Allegations
Mankind Pharma to Raise INR 9,000 Crore Debt for Bharat Serums and Vaccines Acquisition
Vedanta Resources Plans $1.5 Billion Bond Issuance to Refinance Debt

[Blue Lotus Daily]:1519 HK/ZTO US/ATAT US/TCOM US/9926 HK/Macro Update

By Eric Wen

1519 HK/ZTO US: Weekly parcel volume grew ~28% y-o-y (+)
ATAT US/TCOM US: Hotel industry showcased strong performance in the last week of August due to eased base effect.(+/+)
Macro Update: The mortgage interest rate for existing loans may be further reduced, releasing at least RMB200 billion of residents’ funds annually, bodes well for consumption in China(+)

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Sep 04

Daily Brief Credit: Morning Views Asia: Meituan and more

By Smartkarma Daily Briefs | Credit, Daily Briefs

In today’s briefing:

Morning Views Asia: Meituan, New World Development, Nickel Industries

Morning Views Asia: Meituan, New World Development, Nickel Industries

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.

Meituan
New World Development
Nickel Industries

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Sep 04

Daily Brief Event-Driven: [JAPAN ACTIVISM] Murakami Group Now 19+% on Exedy (7278) – LOTS of Room Left To Run and more

By Smartkarma Daily Briefs | Daily Briefs, Event-Driven

In today’s briefing:

[JAPAN ACTIVISM] Murakami Group Now 19+% on Exedy (7278) – LOTS of Room Left To Run
Select Sector Indices – Updated Flows as Round-Trip Trade Hits US$35bn
Fuji Soft (9749 JP): Bain’s Rumoured Counteroffer
HSI, HSCEI, HSTECH, HSIII: Rebalance Flows Post Capping (Sep 2024)
Trading Plays on Samsung C&T’s Holding Company Shift and Biologics Share Sell-Off
Hang Seng, HSCEI, HSTECH Sep24 Rebal Final Capping Flows
Nationwide/Virgin Money (VUK AU): At The Pointy End Of The Offer
MSC Aug 24 Rebalance: Brazil Takes the EM Flow, SA & China Downweighted Again (Tencent)
Potential Sale of SK Specialty and Deleveraging of the SK Group – Impact on SK Inc and NAV Analysis
Samsung C&T: Corporate Value-Up + Reduced Overhang Post Final Lee Family Inheritance Tax in 2025

[JAPAN ACTIVISM] Murakami Group Now 19+% on Exedy (7278) – LOTS of Room Left To Run

By Travis Lundy

In late May, Toyota Group member Aisin (7259 JP) announced it would sell its 37% stake in Exedy Corp (7278 JP) . The market dropped. But that was the opportunity.
On 30 May, I said “Buy the deal, buy in the market. It’s cheap and vulnerable.” It’s up 21.5% since (the day after). Peers are down 15-20%.
The company completed its buyback. Murakami Group bought more. The stock (pro-forma) is at 0.62x book, 0.54x book for the non-cash portion. There’s LOTS of cash left.

Select Sector Indices – Updated Flows as Round-Trip Trade Hits US$35bn

By Brian Freitas

The changes to the S&P 500 INDEX (SPX INDEX), S&P400 Index and S&P600 Index will be announced after market close on Friday.
The conclusions of the market consultation to change the index weighting methodology for the Select Sector Indices to reduce concentration and avoid reverse turnover should also be announced.
Changes in the index weighting methodology will result in a round-trip trade of US$35bn across the Select Sector indices. The largest turnover is in the XLP and XLK.

Fuji Soft (9749 JP): Bain’s Rumoured Counteroffer

By Arun George

Nikkei reports that Bain will launch a competing tender offer for Fuji Soft Inc (9749 JP) around JPY9,200-9,300 per share, around 5% higher than KKR’s offer.
The Board responded that Bain submitted a non-binding proposal on 26 July. The special committee will consider its feasibility if a binding proposal is submitted.
KKR has three options to respond to a higher Bain offer: revise it, launch a hostile offer at unchanged terms, or walk away. The first option is the most likely.

HSI, HSCEI, HSTECH, HSIII: Rebalance Flows Post Capping (Sep 2024)

By Brian Freitas

The September rebalance of the HSI, HSCEI, HSTECH and HSIII indices will use today’s closing prices to cap the index constituent weights at 8%/12%. This will lead to large flows.
The round-trip trade across all stocks across the four indices is estimated at HK$18.1bn (US$2.3bn).
Kuaishou, ASM Pacific Technology, JD.com, J&T Global, Sunny Optical and New Oriental Education are the largest buys while Alibaba, Tencent, Meituan, Xiaomi and HSBC Holdings are the biggest sells.

Trading Plays on Samsung C&T’s Holding Company Shift and Biologics Share Sell-Off

By Sanghyun Park

Samsung C&T’s holding company ratio is closing in on 50%, driven by the Biologics rally, which has Samsung on high alert for a forced conversion.
Watch Samsung’s moves to avoid forced holding company status. The old Biologics-for-Electronics swap isn’t viable, so they’ll likely sell Biologics shares to lower the ratio.
Samsung C&T might sell Biologics shares at a ₩80T market cap. They’ve boosted construction to manage assets and the holding ratio, but beyond ₩80T, risks increase.

Hang Seng, HSCEI, HSTECH Sep24 Rebal Final Capping Flows

By Travis Lundy

The close of 3 September 2024 was the final price to determine capping for the Hang Seng Index Rebalances which will take place this Friday 6 September 2024 at close.
The numbers are largely unchanged, though price changes in the interim cause more Kuaishou Technology (1024 HK) to be bought, and more Xiaomi Corp (1810 HK) to be sold.
The biggest name in flows is, of course, ASM Pacific Technology (522 HK) which sees 15 days to buy.

Nationwide/Virgin Money (VUK AU): At The Pointy End Of The Offer

By David Blennerhassett

Back on the 21st March, Virgin Money UK (VUK AU/VMUK LN), UK’s sixth largest retail bank, entered into a Scheme with Nationwide Building Society, at 220 pence/share, in cash.
The consideration is a solid 38% premium to undisturbed. And shareholders backed terms at the 22nd May Court Meeting. Plus UK’s CMA signed off on the 19th July.
What now? FCA/PRA approvals are the key remaining conditions. These regulatory approvals are imminent.

MSC Aug 24 Rebalance: Brazil Takes the EM Flow, SA & China Downweighted Again (Tencent)

By Charlotte van Tiddens, CFA

South Africa was downweighted in ACW, EM and EM ex China for a second consecutive quarter.
Brazil was the largest upweight in ACW, EM and EM ex China.
Tencent was downweighted in the EM index but upweighted in ACW.

Potential Sale of SK Specialty and Deleveraging of the SK Group – Impact on SK Inc and NAV Analysis

By Douglas Kim

In this insight, we discuss the potential sale of SK Specialty by SK Inc (034730 KS) which owns 100% stake in the company.
If SK Inc could sell SK Specialty at about 3 trillion won to 4 trillion won, this could reduce significantly reduce debt burden of SK Inc.
Our base case NAV value per share for SK Inc is 203,288 won per share, representing 38% upside from current levels.

Samsung C&T: Corporate Value-Up + Reduced Overhang Post Final Lee Family Inheritance Tax in 2025

By Douglas Kim

We provide an updated NAV analysis of Samsung C&T, discuss the reduced overhang post final Lee family inheritance tax payment, and also provide further details of its Corporate Value-Up announcement.
Given 2025 will be the last year of major inheritance tax payment for the Lee family, there is likely to be reduced overhang associated with inheritance tax issue next year.
Our NAV analysis of Samsung C&T suggests NAV of 39.9 trillion won or NAV per share of 224,249 won which is 45% higher from current levels.

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Sep 04

Daily Brief Equity Bottom-Up: Nextage (3186): One Analyst and more

By Smartkarma Daily Briefs | Daily Briefs, Equity Bottom-Up

In today’s briefing:

Nextage (3186): One Analyst, Two Valuations, Both Wrong
Zhongsheng Group Holdings (881 HK, BUY, TP:HKD12.5): Chart Analysis Affirms Zhongsheng Is Too Cheap
Brainbees (FIRSTCRY IN): First Results Fail to Cheer. Lock-In Expiry May Test Stock Resilience
HK Exchanges: Position Cuts Deepen Among Asia Ex-Japan Funds
Li Auto (LI US): 2Q24, Look at Monthly Deliveries, But Not Quarterly Revenue
Intel’s Crisis Deepens: Is the Foundry Business Next on the Chopping Block?
Shortlist of High Conviction Philippines Equity Ideas – September 2024
[Akeso Inc. (9926 HK, BUY, TP HK$63) TP Change]: Too Many Positives to Count…Reiterate TOP BUY
CrowdStrike’s Post-Outage Reality: Navigating the Challenges Ahead!
Dongfang Electric (1072 HK): Finding a Bottom

Nextage (3186): One Analyst, Two Valuations, Both Wrong

By Michael Allen

Simply Wall Street published an article on Aug 20, 2024, suggesting the fair value of Nextage was ¥1,772 or 16% below the previous day’s closing price.
Yet, on the Simply Wall Street website’s stock page for Nextage, updated on August 26, they calculate the fair value at ¥5,726, or 189% above the close on Aug 19.
Both cannot be right. Here’s an interesting window into how markets mis-price stocks.

Zhongsheng Group Holdings (881 HK, BUY, TP:HKD12.5): Chart Analysis Affirms Zhongsheng Is Too Cheap

By Mohshin Aziz

Historical valuation affirms that Zhongzheng is the cheapest it has been in the past 10 years
Chart analysis is to compliment our recent report Zhongsheng Group Holdings (881 HK, BUY, TP:HKD12.5): A Contrarian Play published yesterday
Our TP of HKD12.5 is based on FY25 PE of 5x. This implies an UPSIDE POTENTIAL of 33%. It also delivers a dividend yield of ~9% at current prices.

Brainbees (FIRSTCRY IN): First Results Fail to Cheer. Lock-In Expiry May Test Stock Resilience

By Devi Subhakesan

BrainBees Solutions (FIRSTCRY IN) reported marginal decline in 1QFY2025 revenues and GMV (India operations) versus previous quarter, though both were up 17% YoY; fell short of market expectations.
Key operating metrics for India business too were soft with Average Order Value slipping both on a QoQ and YoY basis, impacting GMV growth and segment margins.
With 0% promoter holding, nearly 30%-50% shares could possibly start trading post lock-in expiry and this could test the stock’s resilience. Softbank Group(9984 JP), the biggest stake holder, owns 19.99%.

HK Exchanges: Position Cuts Deepen Among Asia Ex-Japan Funds

By Steven Holden

Asia Ex-Japan fund managers continue to reduce their positions in Hong Kong Exchanges & Clearing.
Percentage of funds invested and the average weight of the stock in portfolios have been on a downward trend since the recent peak in early 2023
Wave of position closures in 2024 by Allianz, T Rowe Price, and Baillie Gifford has resulted in over half of the historical investor base exiting the stock

Li Auto (LI US): 2Q24, Look at Monthly Deliveries, But Not Quarterly Revenue

By Ming Lu

Monthly deliveries recovered to the 2023 level in the three months – June, July, and August 2024.
Li Auto’s deliveries growth outperformed the China NEV market size in July.
We set the price target at US$26.90, which is 38% above the market price.

Intel’s Crisis Deepens: Is the Foundry Business Next on the Chopping Block?

By Baptista Research

Intel Corporation finds itself at a critical juncture as it heads into its mid-September 2024 board meeting, grappling with a series of severe challenges that threaten the company’s stability and future prospects.
Once a titan of the semiconductor industry, Intel has been beset by financial difficulties, including continuous losses, declining market share, and an increasingly competitive landscape.
The situation has been exacerbated by the recent departure of key executives, adding to the uncertainty surrounding the company’s strategic direction.

Shortlist of High Conviction Philippines Equity Ideas – September 2024

By Sameer Taneja

We are slowly building out a high-conviction coverage of ideas for the mid and small-caps in the Philippines.
We set criteria for high ROCE, reasonable growth (10-15% YoY), strong balance sheets, and reasonable capital allocation (dividend yields), all ingredients for being multi-baggers.
We like Ginebra San Miguel (GSMI PM), The Keepers Holdings (KEEPR PM), and DigiPlus Interactive (PLUS PM). We are building our library and will cover more names in the future.

[Akeso Inc. (9926 HK, BUY, TP HK$63) TP Change]: Too Many Positives to Count…Reiterate TOP BUY

By Eric Wen

Akeso reported C1H24 top line, non-IFRS operating loss and IFRS net loss 10% above, 13% narrower and 3.5% narrower than our estimates.
The most positive takeaway from the result is the Phase III start of CD-47 mAb (AK117), which can potentially be a global first-in-class (FIC).
We raised TP from HK$58 to HK$63 and reiterate our TOP BUY.

CrowdStrike’s Post-Outage Reality: Navigating the Challenges Ahead!

By Baptista Research

CrowdStrike, a leader in cybersecurity known for its AI-driven Falcon platform, now finds itself grappling with significant challenges in the wake of a global IT outage that has shaken its foundations.
While the company has long been recognized for its robust growth, technological innovation, and a solid client base, the recent incident has exposed vulnerabilities that could impact its future trajectory.
The outage, which disrupted services across critical sectors, has raised questions about the resilience of CrowdStrike’s operations and the reliability of its platform.

Dongfang Electric (1072 HK): Finding a Bottom

By Osbert Tang, CFA

Dongfang Electric (1072 HK) is now closer to the bottom after underperformance due to a weaker-than-expected 1H24 result dragged by low-margin coal-fired products.
New contract momentum, however, stayed resilient with a 14.8% YoY increase to Rmb56.1bn in 1H24. Forward backlog coverage is now at 1.8x FY24F revenue.
There is a significant Rmb6.3bn positive operating cash flow swing in 1H24. This helps to raise net cash (excluding contract liabilities) to 76.4% of the share price.

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Sep 04

Daily Brief Crypto: Crypto Crisp: Macro Is Not Your Friend and more

By Smartkarma Daily Briefs | Crypto, Daily Briefs

In today’s briefing:

Crypto Crisp: Macro Is Not Your Friend

Crypto Crisp: Macro Is Not Your Friend

By Mads Eberhardt

As we enter a new month, it is a good time to reassess the market outlook.
Throughout August, we held the belief that the crypto market would gradually recover from its early-month lows.
While this expectation was partly fulfilled, we now recognize several indicators suggesting a downward trend or, at best, sideways movement throughout September.

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Sep 04

Daily Brief Macro: The Week At A Glance: No one trusts the July job report and more

By Smartkarma Daily Briefs | Daily Briefs, Macro

In today’s briefing:

The Week At A Glance: No one trusts the July job report, but should they?
CX Daily: China Formally Enlists ‘Miracle’ Drug in Fight Against Ballooning Obesity Rate
EU Politics: A Tale Of Three Cities
Technically Speaking, Breakouts and Breakdowns: HONG KONG (SEPTEMBER 3)

The Week At A Glance: No one trusts the July job report, but should they?

By Andreas Steno

Happy Labor Day! In this article, we are going to look into a feisty week of economic releases from the US economy given the backdrop of our nowcasting slowing considerably into September again.
Our congestion based data has remained at muted growth levels, while the taxation data is starting to re-weaken, which is interesting into an otherwise strong tax season in September.
Chart of the week: The Macro Environment is weakening in the US. Looking at the week ahead, we are on growth, liquidity, and inflation watch, especially focusing on the US.

CX Daily: China Formally Enlists ‘Miracle’ Drug in Fight Against Ballooning Obesity Rate

By Caixin Global

Drugs / Cover Story: China formally enlists ‘miracle’ drug in fight against ballooning obesity rate Fang Xia, a 24-year-old woman, has faced a lifelong struggle with obesity, a condition that has plagued her both physically and psychologically.
But like millions of others around the world, her life was turned around after taking semaglutide, a glucagon-like peptide-1 (GLP-1) analog that mimics a hormone that triggers a sense of fullness and helps overweight people shed the pounds.
She was among the first batch of patients in China to be given the drug, originally prescribed to treat diabetes but repurposed “off label” to help people lose weight, and after 10 months, Fang lost over 50 pounds.

EU Politics: A Tale Of Three Cities

By Alastair Newton

There is a potential for unstable governance in the short to medium term in both Berlin and Paris.
Investors should be particularly cautious due to this instability.
The incoming College of European Commissioners may be significantly weaker than the previous one, increasing investor concerns.

Technically Speaking, Breakouts and Breakdowns: HONG KONG (SEPTEMBER 3)

By David Mudd

Hong Kong market quietly broke its downward trend channel last week, however the HSI met strong resistance at 18200 (100 Week Moving Average).
PICC Property & Casualty H (2328 HK) and China Petroleum & Chemical (386 HK) broke to new highs relative to MSCI indices. Sinopec may benefit from stronger RMB in 2H24.
Shenzhou Intl Group Holdings (2313 HK) had a short-term turnaround from its downtrend. The company reported growth in sales and better margins in 2Q24.

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Sep 04

Daily Brief Australia: Virgin Money UK Plc, Latin Resources, Rio Tinto Ltd, Opthea Ltd, Nickel Industries and more

By Smartkarma Daily Briefs | Australia, Daily Briefs

In today’s briefing:

Nationwide/Virgin Money (VUK AU): At The Pointy End Of The Offer
Latin Resources (LRS AU): Pilbara Minerals’ All-Scrip Offer
Selected European HoldCos and DLC: August’24 Report
Opthea (OPT AU): Getting Closer to Commercialization of First Drug; Fund Raising Adds to Confidence
Morning Views Asia: Meituan, New World Development, Nickel Industries

Nationwide/Virgin Money (VUK AU): At The Pointy End Of The Offer

By David Blennerhassett

Back on the 21st March, Virgin Money UK (VUK AU/VMUK LN), UK’s sixth largest retail bank, entered into a Scheme with Nationwide Building Society, at 220 pence/share, in cash.
The consideration is a solid 38% premium to undisturbed. And shareholders backed terms at the 22nd May Court Meeting. Plus UK’s CMA signed off on the 19th July.
What now? FCA/PRA approvals are the key remaining conditions. These regulatory approvals are imminent.

Latin Resources (LRS AU): Pilbara Minerals’ All-Scrip Offer

By Arun George

On 15 August, Latin Resources (LRS AU) disclosed a binding offer from Pilbara Minerals (PLS AU) at 0.07 PLS share per LRS share, a 66.3% premium to the undisturbed price.
The key condition is LRS shareholder approval. No disinterested shareholder holds the 25% blocking stake, and low retail ownership lowers the headcount test risk.
The Salinas definitive feasibility study, expected in September, provides option value. A strong result could draw a competing offer or force PLS into sweetening terms.

Selected European HoldCos and DLC: August’24 Report

By Jesus Rodriguez Aguilar

Discounts to NAV of covered holdcos did not follow a clear trend during August. Discounts to NAV: C.F.Alba, 46.2% (vs. 45.3% as of August 9); GBL, 41.1% (vs. 42.2%);
Heineken Holding, 16.5% (vs. 16%); Industrivärden C, 1.7% (vs. 2.2%); Investor B, 1.9% (vs.7.5%); Porsche Automobile Holding, 35.7% (vs. 34.6%). Rio DLC spread tightened to 19.8% (vs. 22.1%).
What seems interesting (unchanged views): Porsche SE vs. listed assets and the Rio DLC (long RIO LN/short RIO AU).

Opthea (OPT AU): Getting Closer to Commercialization of First Drug; Fund Raising Adds to Confidence

By Tina Banerjee

Opthea Ltd (OPT AU) completed enrollment in two Phase 3 trials for sozinibercept in wet AMD. Topline data from these trials are expected by mid-2025.
During FY24, Opthea raised $295M to extend runway through topline data readouts of Phase 3 clinical trials. Further, in July, Opthea raised $38M through retail entitlement offer.
Although Opthea is well-funded through mid-2025, any fund requirement beyond that period will be easier to meet amid lower interest rate scenario.

Morning Views Asia: Meituan, New World Development, Nickel Industries

By Leonard Law, CFA

Meituan
New World Development
Nickel Industries

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Sep 04

Daily Brief Singapore: Capitaland Integrated Commercial Trust and more

By Smartkarma Daily Briefs | Daily Briefs, Singapore

In today’s briefing:

CICT Placement – Accretive Acquisition, Should Be Favored by Existing Unitholders

CICT Placement – Accretive Acquisition, Should Be Favored by Existing Unitholders

By Clarence Chu

Capitaland Integrated Commercial Trust (CICT SP) is looking to raise around S$350m (US$267m) in its primary placement. Included in the issuance is a preferential offering to raise an additional S$757m.
The proceeds will be geared towards acquiring a 50% interest in the ION Orchard mall from its Sponsor.
In this note, we run the deal through our ECM framework and comment on deal dynamics.

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