Smartkarma Daily Briefs

Mmg Ltd (1208 HK) today announced a 2:5 Rights Offering to raise US$1.15bn at HK$2.62/share in order to pay down debt from their recent Botswanan copper mine acquisition.
It was a sizeable acquisition, and the near-term EV/EBITDA of the acquisition is 10x or above. The longer-term EV/EBITDA is in the 3s based on expansion later this decade.
The Rights Offering is underwritten, supported by its 67.5% owner. SOUTHBOUND holds 10+%. There are short dynamics, arb dynamics, “don’t wanna spend more” dynamics. There’s a path here.

Impact on SK Inc Post Record Divorce Ruling for SK Group Chairman Chey Tae-Won

By Douglas Kim

We discuss the outlook for the likely impact on SK Inc post record divorce ruling for the SK Group Chairman Chey Tae-Won and his estranged wife Roh So-Young.
Last week, a South Korean appellate court ordered Chairman Chey to pay 1.38 trillion won to Roh. Chey is appealing this case and the Supreme Court’s ruling is still pending.
It is in the best interest of SK Inc to raise the overall value of the company since the payment of the divorce is mostly based in cash.

Shinko Electric (6967) – Break/Gap Risk Early June 2024 Update

When this deal was announced, it was light. But the timing, JSR influence, large-ish float, ensured FUD would make this trade wide. It traded wider.
Nearly 5mos ago, Shinko had much-underperformed peer Ibiden, meaning downside gap risk from undisturbed was negative as spreads were wide. I reco’d a buy. Then 12wks ago, recommended taking profits.
Shinko had outperformed Ibiden, gross spreads had narrowed 5+% on JSR approval. Spreads are now 2.6% wider than at narrowest. In May, gap risk narrowed as Shinko underperformed Ibiden.

Kakao Pay Lockup Expiry – US$1bn Overhang from Alipay

By Sumeet Singh

Alipay will come out of its placement linked lockup for its remaining stake in Kakaopay (377300 KS) today.
Alipay (i.e. Alibaba Group (9988 HK)) had earlier sold some of its stake in Jun 2022 and Mar 2024. It still has over US$1bn worth of shares left to sell.
In this note, we talk about the deal dynamics and run the deal through our ECM framework.

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

By Brian Freitas

The June rebalance of the HSI, HSCEI INDEX, 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$32bn (US$4.1bn).
Li Auto, Alibaba, NetEase, Zijin Mining, SenseTime and BYD Electronics are the largest buys while Tencent, Meituan, JD.com, Kuaishou Technology, Xiaomi and HSBC Holdings are the largest sells.

StubWorld: What Now With Langham (1270 HK)?

Unexpectantly, Great Eagle Holdings (41 HK) said it would not proceed with an Offer; and Hong Kong hotel-play Langham Hospitality (1270 HK) promptly cratered. But why the flip flop?
Preceding my comments on GE, Langham and Champion REIT (2778 HK), are the current setup/unwind tables for Asia-Pacific Holdcos.
These relationships trade with a minimum liquidity of US$1mn, and a % market capitalisation >20%.

MSC May Rebalance: SA & China Net Sells, NPN, PRX & Tencent Sold Down on Buybacks

By Charlotte van Tiddens, CFA

MSC indices were rebalanced in the closing auction on Friday. Turnover for the day on the JSE was R41.9bn, R25bn traded in the closing auction (60%).
Turnover at the February rebalance was R25.6bn. Most SA constituents were pushed lower in the closing auction and for the day, consistent with the downweighting of SA Inc.
China was downweighted in the ACWI and EM indices for a second straight quarter, reducing the country weight in ACWI by 6bps to 2.69%.

HSI/HSCEI/HSTECH June 2024 Rebal Final Re-Capping (Or Re-Re-Capping) Flows

The HSI added BYD Electronics (285 HK) and deleted Country Garden Services (6098 HK). HSCEI added Zijin Mining Group Co Ltd H (2899 HK) deleted Xinyi Solar Holdings (968 HK)
HSTECH had no changes, but lots of flow. The index team sets capping levels, then resets them a three days before the actual rebalancing. There were some capping/recapping changes.
Below we offer tables showing all the changes and flows across the indices for each stock, ranked by Flows, ADV, and Ticker. And a spreadsheet with all the relevant data.

MMG (1208 HK): US$1.2bn Highly Dilutive Rights Issue

By Arun George

Mmg Ltd (1208 HK) will raise HK$9.1bn (US$1.2bn) through 2 rights shares for every 5 existing shares rights offering. The rights price is HK$2.62, a 24.7% discount to the TERP.
The rights proceeds will be used to repay existing debt, which will allow it to use other funds to better support the ongoing development of the operating mines.
MMG shares should continue to decline heading into the ex-rights date. The shares go ex-rights on 11 June, and the rights start trading from 24 June to 2 July (inclusive).

Northern Minerals (NMI AU): Chinese Investors Forced To Exit

Back in February last year, the Aussie Treasurer prohibited Yuxiao Fund from buying an additional 9.92% in Northern Minerals (NTU AU) which would have increased its stake to 19.9%.
On the 20th November 2023, Yuxiao sought the removal of Nicholas Curtis as director of the rare-metal play at an EGM; however Curtis resigned his post and the EGM cancelled.
The Aussie Treasurer has now made orders requiring Yuxiao and four (deemed) associated investors to sell their holdings (~10.4% all-in) within 60 days.

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

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

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

Jun 05

Daily Brief Energy/Materials: Mmg Ltd, Northern Mining, Marathon Oil, Omai Gold Mines and more

By Smartkarma Daily Briefs | Daily Briefs, Energy & Materials Sector

In today’s briefing:

MMG (1208 HK) – $1.1bn+ Rights Offering – Expect Regular Rights Trading Dynamics
MMG (1208 HK): US$1.2bn Highly Dilutive Rights Issue
Northern Minerals (NMI AU): Chinese Investors Forced To Exit
MMG Limited’s Rights Issue (1208.HK)
ConocoPhillips/Marathon Oil and Shale Consolidation
Omai Gold Mines Corp – Mining Monthly: May Edition

MMG (1208 HK) – $1.1bn+ Rights Offering – Expect Regular Rights Trading Dynamics

Mmg Ltd (1208 HK) today announced a 2:5 Rights Offering to raise US$1.15bn at HK$2.62/share in order to pay down debt from their recent Botswanan copper mine acquisition.
It was a sizeable acquisition, and the near-term EV/EBITDA of the acquisition is 10x or above. The longer-term EV/EBITDA is in the 3s based on expansion later this decade.
The Rights Offering is underwritten, supported by its 67.5% owner. SOUTHBOUND holds 10+%. There are short dynamics, arb dynamics, “don’t wanna spend more” dynamics. There’s a path here.

MMG (1208 HK): US$1.2bn Highly Dilutive Rights Issue

By Arun George

Mmg Ltd (1208 HK) will raise HK$9.1bn (US$1.2bn) through 2 rights shares for every 5 existing shares rights offering. The rights price is HK$2.62, a 24.7% discount to the TERP.
The rights proceeds will be used to repay existing debt, which will allow it to use other funds to better support the ongoing development of the operating mines.
MMG shares should continue to decline heading into the ex-rights date. The shares go ex-rights on 11 June, and the rights start trading from 24 June to 2 July (inclusive).

Northern Minerals (NMI AU): Chinese Investors Forced To Exit

By Research as a Service (RaaS)

Back in February last year, the Aussie Treasurer prohibited Yuxiao Fund from buying an additional 9.92% in Northern Minerals (NTU AU) which would have increased its stake to 19.9%.
On the 20th November 2023, Yuxiao sought the removal of Nicholas Curtis as director of the rare-metal play at an EGM; however Curtis resigned his post and the EGM cancelled.
The Aussie Treasurer has now made orders requiring Yuxiao and four (deemed) associated investors to sell their holdings (~10.4% all-in) within 60 days.

MMG Limited’s Rights Issue (1208.HK)

By Rikki Malik

Short term overhang from expanded share count and selling from unwilling participants
The copper supply and demand story is intact and the fundamentals of the company remain strong
Parent’s uptake of the rights is positive but the stock will take time to build a base for the next leg up

ConocoPhillips/Marathon Oil and Shale Consolidation

By Jesus Rodriguez Aguilar

Conocophillips is set to acquire Marathon Oil in an all-stock deal (0.2550 COP US per 1 MRO US) valued at $22.5 billion ($30.33/share), including $5,379 million in net debt.
Most of the frenzy in the US oil industry has focused on the consolidation within the Permian Basin, a maturing region that offers opportunities to reduce costs and increase profitability.
The acquisition of Marathon will add highly complementary acreage to ConocoPhillips’ existing U.S. onshore portfolio. Spread as of 4 June is 2.6%/4.7% (gross/annualised, assuming settlement by late Q4).

Omai Gold Mines Corp – Mining Monthly: May Edition

By Atrium Research

May was silver’s time to shine, hitting 12-year highs up 13.7% on the month, significantly outperforming gold and other metals.
The silver equities also followed suit, up 13.4%.
Gold and copper posted smaller gains, despite both metals setting all-time highs mid-month, closing up 0.2% and 1.7%, respectively.

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

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

Jun 05

Daily Brief Industrials: Guangzhou Great Power Ener-A, Kosaido, Amaero International Ltd, Melrose Industries and more

By Smartkarma Daily Briefs | Daily Briefs, Industrials

In today’s briefing:

Quiddity ChiNext/ChiNext 50 Jun 24 Rebalance: ~US$700mn One-Way Flows; Thoughts on Surprises
KOSAIDO Holdings (7868) – Pursuing Comprehensive Growth
Amaero International Ltd – Atomiser commissioned ahead of June 30 deadline
Melrose Industries – Crystallisation of the 2020 Employee Share Plan

Quiddity ChiNext/ChiNext 50 Jun 24 Rebalance: ~US$700mn One-Way Flows; Thoughts on Surprises

By Janaghan Jeyakumar, CFA

The June 2024 index review results for the ChiNext and ChiNext 50 indices were announced yesterday.
There will be seven changes for the ChiNext index and five changes for the ChiNext 50 index. Some of these names surprised us.
In this insight, we take a look at our final flow expectations for the confirmed index changes and our thoughts on the selection process.

KOSAIDO Holdings (7868) – Pursuing Comprehensive Growth

By Astris Advisory Japan

Results underline high earnings visibility in Profit-Generating Funeral Services – Q1-4 FY3/24 results were in line with guidance, with positive high growth momentum being sustained at Profit- Generating Funeral Services.
The legacy businesses (Information and HR) missed forecasts, highlighting turnaround challenges.
However, the new business Asset Consulting has started strongly as a high-margin activity, and the outlook is positive.

Amaero International Ltd – Atomiser commissioned ahead of June 30 deadline

RaaS Research Group has published a flash comment on advanced materials manufacturing group Amaero International (ASX:3DA) following its announcement that the first atomiser has been commissioned at its Tennessee facility ahead of schedule.
The commissioning is an important step toward the production of C103 and specialty alloy powder at the facility and allows the company to move to the next step of achieving qualification and, ultimately, commercialisation.
Amaero’s announcement underpins our confidence in the production timing we have applied to our estimates.

Melrose Industries – Crystallisation of the 2020 Employee Share Plan

The crystallisation of the employee plan highlights the value created through the GKN acquisition, benefiting from the strong performance from the restructuring programme and current positive trends in the aerospace sector. The impact of the scheme on our forecasts will be limited, having already assumed the full value the scheme would accrue. There are no changes to our valuation of 654p per share as set out in our previous note.

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

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

Jun 05

Daily Brief Health Care: China Traditional Chinese Medicine, MediciNova , Organovo Holdings , Oryzon Genomics and more

By Smartkarma Daily Briefs | Daily Briefs, Healthcare

In today’s briefing:

China TCM (570.HK) Privatization Update – Investors May Need to Prepare for a Longer Wait
MNOV: Multiple Abstracts Presented at 92nd EAS Congress
ONVO: Annual Report Bolsters Case for Company
Oryzon Genomics – ALICE data published in The Lancet Haematology

China TCM (570.HK) Privatization Update – Investors May Need to Prepare for a Longer Wait

By Xinyao (Criss) Wang

The approval/filing process of China TCM’s privatization is complicated and would take some time, but there’re almost no cases of disapproval. It also depends on the adequacy of materials submitted.
Due to the extension of time for the despatch of Scheme Document, this process would be delayed for more months.But we should receive clear information by October at the latest.
For arbitrageurs, China TCM is an investment opportunity of high success rate, which becomes more attractive if HK stock market is depressed.It’s better suited to idle funds considering potential risks/returns.

MNOV: Multiple Abstracts Presented at 92nd EAS Congress

By Zacks Small Cap Research

On May 28, 2024, MediciNova, Inc. (MNOV) announced that two abstracts regarding MN-001 (tipelukast) and MN-002 were presented as posters at the 92nd European Atherosclerosis Society (EAS) 2024 Congress.
The poster on MN-001 discussed the objectives and design of the ongoing Phase 2 clinical trial enrolling patients with Type 2 diabetes, dyslipidemia, and NAFLD, which has now enrolled a total of 33 patients.
The other presentation regarded the mechanism of action of MN-001/MN-002 in lipid metabolism.

ONVO: Annual Report Bolsters Case for Company

By Zacks Small Cap Research

Organovo is a biotech company that has 3D technology enabling the company to produce various human tissues, allowing the company to target diseases and accelerate the drug development process.
The company released its annual report that showed good cash balances, and also recently released positive Phase 2 results for one of its primary treatments-FXR314.
These results are very encouraging and bolster our belief in the future prospects for ONVO.

Oryzon Genomics – ALICE data published in The Lancet Haematology

By Research as a Service (RaaS)

Oryzon Genomics has announced the publication of the final ALICE trial results in the recognised peer-reviewed journal The Lancet Haematology. The Phase IIa trial investigated iadademstat (Oryzon’s lead oncology LSD1 inhibitor) in combination with azacitidine for the treatment of acute myeloid leukaemia (AML) in newly diagnosed elderly/unfit patients. The trial demonstrated strong efficacy signals, with an objective response rate (ORR) of 81.5%, with three patients still on treatment through compassionate use and in complete remission after four years from the start of treatment. A Phase Ib, investigator-sponsored, dose-finding study evaluating iadademstat (in combination with azacitidine and venetoclax) in the first-line setting is expected to start recruitment by mid-2024. We note that the company’s near-term focus is the Phase Ib FRIDA study (in patients with advanced AML with an FLT3 mutation), from which interim data is expected imminently.

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

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

Jun 05

Daily Brief Industrials: Guangzhou Great Power Ener-A, Kosaido, Amaero International Ltd, Melrose Industries and more

By Smartkarma Daily Briefs | Daily Briefs, Industrials

In today’s briefing:

Quiddity ChiNext/ChiNext 50 Jun 24 Rebalance: ~US$700mn One-Way Flows; Thoughts on Surprises
KOSAIDO Holdings (7868) – Pursuing Comprehensive Growth
Amaero International Ltd – Atomiser commissioned ahead of June 30 deadline
Melrose Industries – Crystallisation of the 2020 Employee Share Plan

Quiddity ChiNext/ChiNext 50 Jun 24 Rebalance: ~US$700mn One-Way Flows; Thoughts on Surprises

By Janaghan Jeyakumar, CFA

The June 2024 index review results for the ChiNext and ChiNext 50 indices were announced yesterday.
There will be seven changes for the ChiNext index and five changes for the ChiNext 50 index. Some of these names surprised us.
In this insight, we take a look at our final flow expectations for the confirmed index changes and our thoughts on the selection process.

KOSAIDO Holdings (7868) – Pursuing Comprehensive Growth

By Astris Advisory Japan

Results underline high earnings visibility in Profit-Generating Funeral Services – Q1-4 FY3/24 results were in line with guidance, with positive high growth momentum being sustained at Profit- Generating Funeral Services.
The legacy businesses (Information and HR) missed forecasts, highlighting turnaround challenges.
However, the new business Asset Consulting has started strongly as a high-margin activity, and the outlook is positive.

Amaero International Ltd – Atomiser commissioned ahead of June 30 deadline

RaaS Research Group has published a flash comment on advanced materials manufacturing group Amaero International (ASX:3DA) following its announcement that the first atomiser has been commissioned at its Tennessee facility ahead of schedule.
The commissioning is an important step toward the production of C103 and specialty alloy powder at the facility and allows the company to move to the next step of achieving qualification and, ultimately, commercialisation.
Amaero’s announcement underpins our confidence in the production timing we have applied to our estimates.

Melrose Industries – Crystallisation of the 2020 Employee Share Plan

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

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

Jun 05

Daily Brief TMT/Internet: Shinko Electric Industries, Tencent, BYD Electronics, Raspberry Pi, Taiwan Semiconductor (TSMC), Wirecard AG and more

By Smartkarma Daily Briefs | Daily Briefs, TMT/Internet

In today’s briefing:

Shinko Electric (6967) – Break/Gap Risk Early June 2024 Update
MSC May Rebalance: SA & China Net Sells, NPN, PRX & Tencent Sold Down on Buybacks
HSI/HSCEI/HSTECH June 2024 Rebal Final Re-Capping (Or Re-Re-Capping) Flows
Raspberry Pi IPO Valuation Analysis
Tech Supply Chain Tracker (05-Jun-2024): Gelsinger forecasts Intel Taiwan party for 40th anniversary.
Using AI to Detect Fraud and Protect Your Investments

Shinko Electric (6967) – Break/Gap Risk Early June 2024 Update

When this deal was announced, it was light. But the timing, JSR influence, large-ish float, ensured FUD would make this trade wide. It traded wider.
Nearly 5mos ago, Shinko had much-underperformed peer Ibiden, meaning downside gap risk from undisturbed was negative as spreads were wide. I reco’d a buy. Then 12wks ago, recommended taking profits.
Shinko had outperformed Ibiden, gross spreads had narrowed 5+% on JSR approval. Spreads are now 2.6% wider than at narrowest. In May, gap risk narrowed as Shinko underperformed Ibiden.

MSC May Rebalance: SA & China Net Sells, NPN, PRX & Tencent Sold Down on Buybacks

By Charlotte van Tiddens, CFA

MSC indices were rebalanced in the closing auction on Friday. Turnover for the day on the JSE was R41.9bn, R25bn traded in the closing auction (60%).
Turnover at the February rebalance was R25.6bn. Most SA constituents were pushed lower in the closing auction and for the day, consistent with the downweighting of SA Inc.
China was downweighted in the ACWI and EM indices for a second straight quarter, reducing the country weight in ACWI by 6bps to 2.69%.

HSI/HSCEI/HSTECH June 2024 Rebal Final Re-Capping (Or Re-Re-Capping) Flows

The HSI added BYD Electronics (285 HK) and deleted Country Garden Services (6098 HK). HSCEI added Zijin Mining Group Co Ltd H (2899 HK) deleted Xinyi Solar Holdings (968 HK)
HSTECH had no changes, but lots of flow. The index team sets capping levels, then resets them a three days before the actual rebalancing. There were some capping/recapping changes.
Below we offer tables showing all the changes and flows across the indices for each stock, ranked by Flows, ADV, and Ticker. And a spreadsheet with all the relevant data.

Raspberry Pi IPO Valuation Analysis

By Douglas Kim

Raspberry Pi is expected to raise about £157 million in this IPO. The conditional trading for this IPO is expected to be take place on 11 June.
We estimate Raspberry Pi to generate sales of US$342.1 million (up 28.7% YoY) and operating profit of US$48.5 million (up 29.3% YoY) in 2024.
Our base case valuation of Raspberry Pi is market cap of £772 million or £4 per share (43% higher than the high end of the initial IPO price range).

Tech Supply Chain Tracker (05-Jun-2024): Gelsinger forecasts Intel Taiwan party for 40th anniversary.

By Tech Supply Chain Tracker

Gelsinger excited for AI PC breakthrough at Computex 2024, plans Intel’s 40th anniversary event in Taiwan next year.
MediaTek unveils AI and wireless advancements at Computex 2024, demonstrating commitment to technology innovation.
Nvidia CEO predicts rise of robots in the future; Taiwan’s LEO satellite program delayed by funding and tech transfer issues.

Using AI to Detect Fraud and Protect Your Investments

By Mark Jolley

Accounting fraud costs the global economy at least US$1 trillion each year in losses to investors, suppliers and consumers
Detecting accounting fraud early gives investors valuable intel to rethink certain stock or bond holdings.
Transparently.AI’s AI-powered solution is highly accurate in measuring and detecting accounting manipulation and fraud.

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

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

Jun 05

Daily Brief Financials: Great Eagle Holdings, Dexus Property, Tosei Corp, Alpha Group International , Bitcoin Pro, Bitcoin, China Vanke and more

By Smartkarma Daily Briefs | Daily Briefs, Financials

In today’s briefing:

StubWorld: What Now With Langham (1270 HK)?
MV Australia A-REITs Index Rebalance Preview: ASK May Be Deleted; HMC Close Add; Capping Changes
Tosei (8923) | Strong Performance with Dalton’s Governance Watch
Quiddity Leaderboard F100/250 Jun 24: Last Day of Trading Before Rankings; Many Possibilities
April Showers Bring May Flowers
Crypto Crisp: Three In A Row
Morning Views Asia: China Vanke

StubWorld: What Now With Langham (1270 HK)?

By Small Cap Consumer Research

Unexpectantly, Great Eagle Holdings (41 HK) said it would not proceed with an Offer; and Hong Kong hotel-play Langham Hospitality (1270 HK) promptly cratered. But why the flip flop?
Preceding my comments on GE, Langham and Champion REIT (2778 HK), are the current setup/unwind tables for Asia-Pacific Holdcos.
These relationships trade with a minimum liquidity of US$1mn, and a % market capitalisation >20%.

MV Australia A-REITs Index Rebalance Preview: ASK May Be Deleted; HMC Close Add; Capping Changes

By Brian Freitas

The review period for the June rebalance ended last week. There could be one deletion from the index and a bunch of capping changes.
There is one stock that is close to inclusion zone but may not make it in June.
The expected index changes will lead to a one-way turnover of 2.5% resulting in a one-way trade of A$14m. That will increase if there is an inclusion.

Tosei (8923) | Strong Performance with Dalton’s Governance Watch

By Mark Chadwick

Tosei achieved record revenue and profit, driven by robust growth in its fund management business and a balanced portfolio of stable and sales-driven operations.
Activist investor Dalton acquired a 5.02% stake, highlighting concerns over recent governance decisions and potential Board independence dilution due to the Nagoya Railroad alliance.
Dalton’s involvement ensures heightened scrutiny, promising better governance, and potentially favorable outcomes for minority shareholders amid Tosei’s continued strong business performance.

Quiddity Leaderboard F100/250 Jun 24: Last Day of Trading Before Rankings; Many Possibilities

By Janaghan Jeyakumar, CFA

The rankings for the F100/250 June 2024 index rebalance event will be decided based on the full market cap rankings at the close of trading today (4th June 2024).
Since there have been a couple of intra-review index changes and some ranking changes due to price movements, we have decided to update our expectations for the June 2024 review.
We currently see 2 changes for the F100 index and 3 separate changes for the F250 index. However, the rankings can still change if prices move sharply today.

April Showers Bring May Flowers

By Delphi Digital

BTC Spot ETFs Net $2Bn in May: Discover how consistent ETF inflows are driving Bitcoin’s impressive rally and near all-time highs.
BTC Market Structure Insights: Learn about the consolidation patterns and market scenarios that could lead to Bitcoin breaking new highs.
Upcoming Token Unlocks: Stay informed about significant upcoming token unlocks and their potential market impact.

Crypto Crisp: Three In A Row

By Mads Eberhardt

In the past one and a half months, exchange-traded crypto funds have been launched in two countries.
Hong Kong introduced both Bitcoin and Ethereum exchange-traded products in late April, followed by the UK doing the same last week.
Tomorrow, Australia will launch its Bitcoin spot ETF, but like the recent launches in Hong Kong and the UK, we do not expect it to be a major success.

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.

China Vanke

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

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

Jun 05

Daily Brief Consumer: JD.com , Pop Mart International Group L, GS Retail, Chow Tai Fook Jewellery, Carnival Corp, Betterware de Mexico Sab de CV, OPAP SA and more

By Smartkarma Daily Briefs | Consumer, Daily Briefs

In today’s briefing:

HSI, HSCEI, HSTECH, HSIII: Rebalance Flows Post Capping (June 2024)
Pop Mart (9992 HK): Accelerating Momentum Internationally; Raising My Estimates
GS Retail: Equity Spin Off of Parnas Hotel and Freshmeat Subsidiaries
Chow Tai Fook (1929 HK): What if Special Dividends Are Declared?
Carnival Corporation &Amp; Plc (CCL) – Tuesday, Mar 5, 2024
BWMX: Snapping the Catalog: Tough Comps Not an Issue; Reiterate Buy, $22.50 PT
OPAP – Steady progress towards FY24 guidance

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

By Brian Freitas

The June rebalance of the HSI, HSCEI INDEX, 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$32bn (US$4.1bn).
Li Auto, Alibaba, NetEase, Zijin Mining, SenseTime and BYD Electronics are the largest buys while Tencent, Meituan, JD.com, Kuaishou Technology, Xiaomi and HSBC Holdings are the largest sells.

Pop Mart (9992 HK): Accelerating Momentum Internationally; Raising My Estimates

By Steve Zhou, CFA

In 1Q24, Pop Mart International Group L (9992 HK)‘s international sales grew around 250% yoy, and made up around one quarter of sales (vs. 17% of sales in 2023).
I now expect 39% sales growth in 2024, driven by 140% yoy growth in the international business and 18% growth in domestic China business.
I further expect a 50% yoy growth in net profit growth in 2024 driven by a 0.8ppt increase in gross margin and 0.5ppt in operating leverage.

GS Retail: Equity Spin Off of Parnas Hotel and Freshmeat Subsidiaries

By Douglas Kim

On 3 June, GS Retail (007070 KS) announced that it will spin off Parnas Hotel and Freshmeat subsidiaries to simplify its business structure and enhance shareholder value.
The company plans to create a new entity tentatively called Parnas Holdings which will include Parnas hotel and Freshmeat (a meat processing company).
We have a positive view of GS Retail’s decision to conduct this equity spin off which simplifies the business structures and it could raise the valuation multiples of GS Retail.

Chow Tai Fook (1929 HK): What if Special Dividends Are Declared?

By Osbert Tang, CFA

The market’s assumption of no special dividends in Chow Tai Fook Jewellery (1929 HK)‘s upcoming FY24 result is conservative, and this does not fit into its usual pattern.
Should it pay special DPS, the dividend yield may reach an attractive 10.7%. With its net cash position, CTF can financially maintain the average 135.6% payout ratio.
A return to its historical average dividend yield of 7.4% means that CTF’s share price will need to go up by 45% from the current level.

Carnival Corporation &Amp; Plc (CCL) – Tuesday, Mar 5, 2024

By Value Investors Club

Carnival Corporation is the world’s largest cruise ship operator with a large fleet and significant market share
The company was severely impacted by the COVID-19 pandemic, halting service for 15 months and taking on substantial debt
Since resuming cruises in July 2021, Carnival has seen a rebound in revenues driven by strong demand for post-COVID travel, but still faces challenges with cashflow and debt sustainability

This content is sourced through publicly available sources and has been machine generated. Information displayed is for general informational purposes only. This article was originally published 3 months ago on Value Investors Club.

BWMX: Snapping the Catalog: Tough Comps Not an Issue; Reiterate Buy, $22.50 PT

We are reiterating our Buy rating, $22.50 price target and projections for Betterware de Mexico after reviewing the June catalog.
Despite the return of normalized comparisons, as supply chain issues began to normalize last year, June was another solid month for Betterware, as the catalog registered further SKU growth, continued higher levels of newness, and lower discounting.
Further, these results were achieved despite the company pulling back from prior categories (Better Kids and Pets), making the YoY gains even more impressive.

OPAP – Steady progress towards FY24 guidance