All Posts By

Smartkarma Daily Briefs

Dec 31
0

Daily Brief Equity Bottom-Up: Bank Mandiri (BMRI IJ) – Growing By Digital Means and more

By | Daily Briefs, Equity Bottom-Up

In today’s briefing:

  • Bank Mandiri (BMRI IJ) – Growing By Digital Means
  • Eicher Motors (EIM IN) | “Hunting” Down Competition
  • Intel Vs. TSMC Monitor: After a Quiet December, January Will Be a Big Month

Bank Mandiri (BMRI IJ) – Growing By Digital Means

By Angus Mackintosh

  • Bank Mandiri (BMRI IJ) is seeing significant rewards already being harvested from its digital strategy as it attracts low-cost fund through both its Livin’ app and its KOPRA platform.
  • The bank’s 9M2022 results reflected the changing shape of its business, with lower costs and higher returns being generated through its move to higher-yielding assets and digital strategy.
  • Bank Mandiri (BMRI IJ) remains a core holding among the Indonesian banks as a proxy for the overall economy with valuations attractive given rising and sustainable returns. 

Eicher Motors (EIM IN) | “Hunting” Down Competition

By Pranav Bhavsar

  • The competitive position and demand environment for Eicher Motors (EIM IN)‘s “Classic 350” remains intact. 
  • The recent launch “Hunter 350” is expanding markets by taking on the competition.
  • Cannablisation fears from Hunter 350, remain unfounded, and unlikely to have any major impact on margin trajectory. 

Intel Vs. TSMC Monitor: After a Quiet December, January Will Be a Big Month

By Vincent Fernando, CFA

  • Intel outperformed TSMC in 1H December, and then TSMC outperformed after some negative rumors about an Intel product delay/cancellation.
  • After a quiet December, January will be a big month as we will have 4Q22E result for both companies. The expectatioins bar for INTC is set very low.
  • We see a potential Long INTC vs. Short TSMC opportunity after TSMC has released results and before INTC has released its results.

💡 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
Sign Up for Free
Dec 31
0

Most Read: Delta Electronics Thai, Meituan, SBI Holdings, LG Household & Health Care, Bank Mandiri Persero, iRobot Corp, Skyworth Group Limited and more

By | Daily Briefs, Most Read

In today’s briefing:

  • SET50 Index Rebalance: CENTEL, COM7, DELTA, RATCH Added; BLA, IRPC, KCE, SAWAD Out
  • Index Rebalance & ETF Flow Recap: SET50, Stock Connect, Kanzhun, Futu, AMFI
  • Meituan (3690 HK): Passive Selling Next Week; Plus the Prosus Overhang
  • “Buy the Worst” HSI Strategy: Big Win in 2022 and Let’s See if It Can Sustain in 2023
  • JPX-Nikkei 400 Rebal 2023: End-Dec 2022
  • Retrospectively Reviewing Prop Traders Vs. Retail on T±4 Ex-Date
  • Bank Mandiri (BMRI IJ) – Growing By Digital Means
  • Taiwan Semiconductors: Value Funds Drive Underweight
  • MergerTalk: Regulators May Be Hard Pressed To Prove The Amazon/IRobot Deal Harmful To Competition
  • Last Week in Event SPACE: Toyo, Takashimaya/H2O, Skyworth, Shandong Fengxiang, O2Micro

SET50 Index Rebalance: CENTEL, COM7, DELTA, RATCH Added; BLA, IRPC, KCE, SAWAD Out

By Brian Freitas

Index Rebalance & ETF Flow Recap: SET50, Stock Connect, Kanzhun, Futu, AMFI

By Brian Freitas

Meituan (3690 HK): Passive Selling Next Week; Plus the Prosus Overhang

By Brian Freitas

  • Tencent (700 HK)‘s in-specie distribution of Meituan (3690 HK) shares goes ex-dividend next Thursday. Passive Hang Seng trackers will sell Meituan (3690 HK) stock at the close on 4 January.
  • The passive impact is not very large but there could be selling from active investors, both before and after settlement of the shares that is scheduled for 24 March.
  • Prosus/Naspers will receive 258.93m shares (HK$47.69bn; 6.5x ADV; 4.18% of shares outstanding) of Meituan (3690 HK) and that will be an overhang on the stock for the near future.

“Buy the Worst” HSI Strategy: Big Win in 2022 and Let’s See if It Can Sustain in 2023

By Osbert Tang, CFA

JPX-Nikkei 400 Rebal 2023: End-Dec 2022

By Janaghan Jeyakumar, CFA

  • JPX-Nikkei 400 is composed of common stocks listed on the Tokyo Stock Exchange. It is a free-float-adjusted market-value-weighted (capped) index composed of 400 constituents.
  • A periodic review is conducted by the Index providers, the JPX Group and Nikkei Inc, in August every year. We look at the potential forward inclusions and removals every month.
  • Below is a look at potential Inclusions and Removals for the JPX-Nikkei 400 Rebalance to come in August 2023 based on trading data as of end-December 2022.

Retrospectively Reviewing Prop Traders Vs. Retail on T±4 Ex-Date

By Sanghyun Park

  • This year is less intense compared to previous years. However, given this year’s overall market returns and the lower visibility of yearend dividends, it is still a reasonably aggressive flow.
  • Most of this PROP flow should have been dividend hunting aimed at the distortion of ex-date price correction caused by RETAIL’s tax avoidance-driven selling flow.
  • The performance of the individual stock position strategy (entering on T-4~1 ex-date) might not have been as juicy as expected, but it still managed to deliver a positive return.

Bank Mandiri (BMRI IJ) – Growing By Digital Means

By Angus Mackintosh

  • Bank Mandiri (BMRI IJ) is seeing significant rewards already being harvested from its digital strategy as it attracts low-cost fund through both its Livin’ app and its KOPRA platform.
  • The bank’s 9M2022 results reflected the changing shape of its business, with lower costs and higher returns being generated through its move to higher-yielding assets and digital strategy.
  • Bank Mandiri (BMRI IJ) remains a core holding among the Indonesian banks as a proxy for the overall economy with valuations attractive given rising and sustainable returns. 

Taiwan Semiconductors: Value Funds Drive Underweight

By Steven Holden

  • GEM funds reduce exposure to Taiwanese Semiconductors, switching from overweight to their largest underweight in over a decade.
  • Absolute positioning levels still high, with Taiwanese Semiconductors the largest country/industry allocation for 61% of the managers in our analysis and a top 3 allocation for 78%.
  • Value investors moved first, switching from near equal weight in early 2020 to -1.95% underweight today.  All Style groups are now positioned underweight the MSCI EM benchmark, on average.

MergerTalk: Regulators May Be Hard Pressed To Prove The Amazon/IRobot Deal Harmful To Competition

By Robert Sassoon

  • Amazon’s pursuit of robotic vacuum manufacturer iRobot is being scrutinized by the FTC,  a merger which we think the regulator will be hard pressed  to prove is harmful to competition.
  • However, although unlikely, the pending ruling next month on the FTC’s unusual lawsuit against Meta’s acquisition of virtual reality start-up Within  could rewrite regulatory guidelines for vertical mergers 
  • The 27% spread offers a potentially lucrative trade generating double-digit IRR even if deal completion is delayed by regulatory review, although it might be wise to entertain some  downside protection

Last Week in Event SPACE: Toyo, Takashimaya/H2O, Skyworth, Shandong Fengxiang, O2Micro

By David Blennerhassett

  • YFO has played a relatively upfront game for Toyo Construction (1890 JP) – badly at first, then better. 
  • With Takashimaya (8233 JP) and H2O (8242 JP) now more secure and cross-shareholdings more problematic, they will sell off their equity in each other but continue to work on joint projects.
  • Skyworth Group Limited (751 HK)‘s latest buyback offers a minimum proration of 7.8%, although applying the last buyback two years ago, it’s likely to be 13%+.

💡 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
Sign Up for Free
Dec 31
0

Daily Brief South Korea: HPSP and more

By | Daily Briefs, South Korea

In today’s briefing:

  • End of Mandatory Lock-Up Periods for 57 Companies in Korea in January 2023

End of Mandatory Lock-Up Periods for 57 Companies in Korea in January 2023

By Douglas Kim

  • We discuss end of the mandatory lock-up periods for 57 stocks in Korea in January 2023, among which 5 are in KOSPI and 52 are in KOSDAQ.
  • These 57 stocks on average could be subject to further selling pressures in December and could underperform relative to the market. 
  • Among these 57 stocks, the top 5 market cap stocks include Sungeel Hitech, HPSP, CJ CGV, Sillajen, and Eoflow. 

💡 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
Sign Up for Free
Dec 31
0

Daily Brief Indonesia: Bank Mandiri Persero and more

By | Daily Briefs, Indonesia

In today’s briefing:

  • Bank Mandiri (BMRI IJ) – Growing By Digital Means

Bank Mandiri (BMRI IJ) – Growing By Digital Means

By Angus Mackintosh

  • Bank Mandiri (BMRI IJ) is seeing significant rewards already being harvested from its digital strategy as it attracts low-cost fund through both its Livin’ app and its KOPRA platform.
  • The bank’s 9M2022 results reflected the changing shape of its business, with lower costs and higher returns being generated through its move to higher-yielding assets and digital strategy.
  • Bank Mandiri (BMRI IJ) remains a core holding among the Indonesian banks as a proxy for the overall economy with valuations attractive given rising and sustainable returns. 

💡 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
Sign Up for Free
Dec 31
0

Daily Brief India: Eicher Motors and more

By | Daily Briefs, India

In today’s briefing:

  • Eicher Motors (EIM IN) | “Hunting” Down Competition

Eicher Motors (EIM IN) | “Hunting” Down Competition

By Pranav Bhavsar

  • The competitive position and demand environment for Eicher Motors (EIM IN)‘s “Classic 350” remains intact. 
  • The recent launch “Hunter 350” is expanding markets by taking on the competition.
  • Cannablisation fears from Hunter 350, remain unfounded, and unlikely to have any major impact on margin trajectory. 

💡 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
Sign Up for Free
Dec 31
0

Daily Brief China: Skyworth Group Limited and more

By | China, Daily Briefs

In today’s briefing:

  • Last Week in Event SPACE: Toyo, Takashimaya/H2O, Skyworth, Shandong Fengxiang, O2Micro

Last Week in Event SPACE: Toyo, Takashimaya/H2O, Skyworth, Shandong Fengxiang, O2Micro

By David Blennerhassett

  • YFO has played a relatively upfront game for Toyo Construction (1890 JP) – badly at first, then better. 
  • With Takashimaya (8233 JP) and H2O (8242 JP) now more secure and cross-shareholdings more problematic, they will sell off their equity in each other but continue to work on joint projects.
  • Skyworth Group Limited (751 HK)‘s latest buyback offers a minimum proration of 7.8%, although applying the last buyback two years ago, it’s likely to be 13%+.

💡 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
Sign Up for Free
Dec 31
0

Daily Brief TMT/Internet: HPSP, Taiwan Semiconductor (TSMC) – ADR and more

By | Daily Briefs, TMT/Internet

In today’s briefing:

  • End of Mandatory Lock-Up Periods for 57 Companies in Korea in January 2023
  • Intel Vs. TSMC Monitor: After a Quiet December, January Will Be a Big Month

End of Mandatory Lock-Up Periods for 57 Companies in Korea in January 2023

By Douglas Kim

  • We discuss end of the mandatory lock-up periods for 57 stocks in Korea in January 2023, among which 5 are in KOSPI and 52 are in KOSDAQ.
  • These 57 stocks on average could be subject to further selling pressures in December and could underperform relative to the market. 
  • Among these 57 stocks, the top 5 market cap stocks include Sungeel Hitech, HPSP, CJ CGV, Sillajen, and Eoflow. 

Intel Vs. TSMC Monitor: After a Quiet December, January Will Be a Big Month

By Vincent Fernando, CFA

  • Intel outperformed TSMC in 1H December, and then TSMC outperformed after some negative rumors about an Intel product delay/cancellation.
  • After a quiet December, January will be a big month as we will have 4Q22E result for both companies. The expectatioins bar for INTC is set very low.
  • We see a potential Long INTC vs. Short TSMC opportunity after TSMC has released results and before INTC has released its results.

💡 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
Sign Up for Free
Dec 31
0

Daily Brief Financials: Bank Mandiri Persero and more

By | Daily Briefs, Financials

In today’s briefing:

  • Bank Mandiri (BMRI IJ) – Growing By Digital Means

Bank Mandiri (BMRI IJ) – Growing By Digital Means

By Angus Mackintosh

  • Bank Mandiri (BMRI IJ) is seeing significant rewards already being harvested from its digital strategy as it attracts low-cost fund through both its Livin’ app and its KOPRA platform.
  • The bank’s 9M2022 results reflected the changing shape of its business, with lower costs and higher returns being generated through its move to higher-yielding assets and digital strategy.
  • Bank Mandiri (BMRI IJ) remains a core holding among the Indonesian banks as a proxy for the overall economy with valuations attractive given rising and sustainable returns. 

💡 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
Sign Up for Free
Dec 31
0

Daily Brief Consumer: Skyworth Group Limited, Eicher Motors and more

By | Consumer, Daily Briefs

In today’s briefing:

  • Last Week in Event SPACE: Toyo, Takashimaya/H2O, Skyworth, Shandong Fengxiang, O2Micro
  • Eicher Motors (EIM IN) | “Hunting” Down Competition

Last Week in Event SPACE: Toyo, Takashimaya/H2O, Skyworth, Shandong Fengxiang, O2Micro

By David Blennerhassett

  • YFO has played a relatively upfront game for Toyo Construction (1890 JP) – badly at first, then better. 
  • With Takashimaya (8233 JP) and H2O (8242 JP) now more secure and cross-shareholdings more problematic, they will sell off their equity in each other but continue to work on joint projects.
  • Skyworth Group Limited (751 HK)‘s latest buyback offers a minimum proration of 7.8%, although applying the last buyback two years ago, it’s likely to be 13%+.

Eicher Motors (EIM IN) | “Hunting” Down Competition

By Pranav Bhavsar

  • The competitive position and demand environment for Eicher Motors (EIM IN)‘s “Classic 350” remains intact. 
  • The recent launch “Hunter 350” is expanding markets by taking on the competition.
  • Cannablisation fears from Hunter 350, remain unfounded, and unlikely to have any major impact on margin trajectory. 

💡 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
Sign Up for Free
Dec 30
0

Daily Brief ESG: Is the Solution to the Problem to Make the AGM Attractive? and more

By | Daily Briefs, ESG

In today’s briefing:

  • Is the Solution to the Problem to Make the AGM Attractive?

Is the Solution to the Problem to Make the AGM Attractive?

By Aki Matsumoto

  • Since many companies struggle to meet quorum requirements for AGMs, many companies mail accompanying documents along with the voting form in paper form, even though Companies Act has been amended.
  • The use of DX, such as hybrid shareholder meetings and online voting, comes to mind to meet quorum requirements for shareholder meetings, and this will help reduce administrative costs.
  • The fundamental issue, however, is that there are many conventional AGMs with little appeal and little substance, such as few managers whom we would really like to hear speak live.

💡 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
Sign Up for Free