Smartkarma Daily Briefs

Baidu’s revenue growth for the first quarter exceeded expectations, with a year-over-year increase of 4%, reaching RMB 23.8 billion.
Additionally, Baidu’s continued efforts in Gen AI path have resulted in a 12% year-over-year acceleration in the revenue growth from Baidu AI Cloud, which also delivered an operating profit on a non-GAAP basis.
These positive results signify the company’s successful transition from an internet-centric business to an AI-first business.

Tech Supply Chain Tracker (28-May-2024): Liquid cooling market to double by 2025, industry shakeout predicted.

By Tech Supply Chain Tracker

Liquid cooling market expected to double by 2025, but industry shakeout predicted by Auras chair.
Apple plans to ship over 9 million units of OLED iPad Pro, aiming to boost its market presence.
South Korea aims to enhance its IC design sector, currently holding just a 1% share of the global market.

Qualcomm Leapfrogs Intel & AMD To Power The First Microsoft CoPilot + PCs

By William Keating

Microsoft last week launched their CoPilot+ PC category which enables their CoPilot to run locally on your PC, as long as it has an NPU with >40 TOPS
With Qualcomm being the only one currently offering such an NPU, their Snapdragon processors will be powering the first wave of CoPilot+ PC’s
It’s an extraordinary accomplishment for Qualcomm & likely an inflection point for Arm powered PCs. It’s also really bad news for Intel and not great for AMD

JD.com Inc.: How Are They Strengthening the Platform Ecosystem & Continuing Their Market Dominance? – Major Drivers

JD.com, a China-based multinational technology conglomerate, has announced its first-quarter results for 2024 in an earnings call and reported robust profit and revenue growth, along with an encouragingly high Net Promoter Score (NPS).
The revenue growth was accelerated by strong execution amidst evolving industry dynamics, improved user experience, price competitiveness, and platform ecosystems.
Importantly, the general merchandise and supermarket category recorded a notable jump in terms of gross merchandise value (GMV) and revenue growth.

Seatrium – Offshore Ahoy!

By Rikki Malik

An overlooked old economy sector in Asia ripe for a comeback
Industry dynamics will provide a long-term tailwind for the company
Opportunity created by deletion from an index and corporate restructuring

Inox Wind : Block Deal Trade Special Situations and Tactical Trade Strategy

By Sudarshan Bhandari

Impending block deals which generally create supply over-hang on the stock leads to a negative impact on the stock
These block deals generally include selling promoters and big funds at a price discount to its current market price
Historically, such events suggest once the block deal is done; stock reacts positively creating a Special Situation Opportunity

iQIYI Inc.: Initiation of Coverage – How Are They Leveraging Generative AI capabilities? – Major Drivers

iQIYI, an innovative market-leading online entertainment service provider in China, delivered robust first-quarter 2024 results, achieving numerous record highs, such as non-GAAP operating income and its corresponding margin.
CEO, Mr. Yu Gong, shared that the expanding margin could be attributed to the high-quality growth of the company.
The Membership Services business continued its growth trajectory with monthly ARM observed an all-time high.

Amuse Inc (4301) – Monday, Feb 26, 2024

By Value Investors Club

The music industry in the west focuses on speculative assets and bundling services, while in Japan firms have 360-degree deals with artists.
Amuse, a major player in the Japanese music industry, historically managed the successful band Southern All Stars but has diversified beyond them.
Despite still having concentration in top acts like Masaharu Fukuyama, Amuse’s business model and intrinsic value are seen as attractive to investors.

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.

Take-Two Interactive Software: Increased Relevance of Mobile and Strategic Titles

Take-Two Interactive Software Inc reported a healthy performance for the fiscal fourth quarter of 2024 with net bookings of $1.35 billion.
The fiscal year 2024 saw net bookings of $5.33 billion.
The performance for the period was attributed to the success of NBA 2K24, Zynga’s in-app purchases, Match Factory!, the Red Dead Redemption series, and the Grand Theft Auto series.

Genel Energy (GENL.L) – Monday, Feb 26, 2024

By Value Investors Club

Genel Energy is a high-risk arbitration opportunity with potential for significant reward due to its legal dispute with the Kurdistan government
Despite previous market capitalization reduction in the 2014 oil crisis, Genel Energy is now an undervalued asset with strong cash position and minimal debt
With current market cap at £210 million and significant cash reserves, the company has notable potential for growth, but the unpredictable nature of the situation makes it difficult to model or quantify with certainty

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May 28

Daily Brief Event-Driven: Cash-Rich Exedy (7278) Sees Huge Offering Offset by Huge Buyback – Watch For Short-Term Games and more

By Smartkarma Daily Briefs | Daily Briefs, Event-Driven

In today’s briefing:

Cash-Rich Exedy (7278) Sees Huge Offering Offset by Huge Buyback – Watch For Short-Term Games
Infocom (4348 JP) – The Meaning of ‘Binding Bids’ and ‘¥250bn’
HYBE: Block Deal Sale of SM Entertainment
Yuanta Taiwan Div+ ETF Rebalance Preview: 5 Changes as Names Move Around; US$2.35bn Round-Trip Trade
Huafa Property Services (982 HK)’s Knockout Offer
Activism Takes On CMCDI (133 HK)
Huafa Property Services (982 HK): Scheme Offer at HK$0.29
Taiwan Top 50 ETF Rebalance Preview: Asia Vital Components (3017 TT) In Back-To-Back Inclusion?
Best World (BEST SP): Best & Final Offer
An Early Look at Potential Deletions and Additions to KOSPI200 in December 2024

Cash-Rich Exedy (7278) Sees Huge Offering Offset by Huge Buyback – Watch For Short-Term Games

By Travis Lundy

Toyota equity affiliate Aisin (7259 JP) last September said it would sell all its crossholdings. That now includes a 36.5% stake in Exedy Corp (7278 JP).
Today, they announced an offering of all the shares (when including the greenshoe). That is nearly ¥50bn. That is offset by a ¥15bn buyback which could reduce the offering size.
Games may be played, but there is considerable accretion, and Exedy will see higher float and still-high net cash.

Infocom (4348 JP) – The Meaning of ‘Binding Bids’ and ‘¥250bn’

By Travis Lundy

A variety of articles of recent from private media sources have suggested that Teijin Ltd (3401 JP) has its 55% stake in Infocom Corp (4348 JP) up for auction.
According to earlier articles, binding Second Round bids were due last week. According to an article out late last week, binding bids have been made, with some “around ¥250bn.”
What that means for price may depend on what the “around ¥250bn” means. A brief exploration below.

HYBE: Block Deal Sale of SM Entertainment

After the market close on 27 May, HYBE (352820 KS) announced that it will conduct a block deal sale of 0.75 million to 0.94 million shares of SM Entertainment.
The block deal sale price discount is 4% to 5.5% discount to the closing price on 27 May (95,800 won).
One of the major positive, recent issues facing the Korean K-Pop related stocks has been the potential easing of Korean content restrictions by China.

Yuanta Taiwan Div+ ETF Rebalance Preview: 5 Changes as Names Move Around; US$2.35bn Round-Trip Trade

By Brian Freitas

With the review period now complete, there could be 5 changes to the Yuanta/P-Shares Taiwan Dividend Plus ETF in June.
Price changes and changes to dividend estimates have led to names dropping off the list of potential adds and deletes over the last week.
Constituent changes, capping and funding flows will lead to a one-way turnover of 12.7% and a one-way trade of US$1.17bn. There are 12 stocks with over 4x ADV to trade.

Huafa Property Services (982 HK)’s Knockout Offer

After entering a trading halt on the 16th May pursuant to the Takeover’s Code, property manager Huafa Property Services (982 HK) has now announced a privatisation by way of a Scheme.
The cancellation price of A$0.29/share is a 30.63% to last close, a 70.59% premium over the 30-day average close, and a life-time high price. The price is final.
The Offeror, Zhuhai Huafa, a state-owned enterprise wholly-owned by Zhuhai SASAC, plus concert parties hold 42.63% of shares out. Clean deal.

Activism Takes On CMCDI (133 HK)

In January this year, Argyle Street, a (now) 8% shareholder of China Merchants China Direct Investments (133 HK) (CMCDI), a closed-end investment company, proposed a solution to boost shareholder value.
Two months later, Rydal Value Fund (stake unknown) also proposed a means to boosting shareholder value along similar lines.
CMCDI is currently trading at a ~63% discount to NAV. But it is up 78% since Argyle’s initial proposal, and recently touched a six-year high. Argyle is still buying.

Huafa Property Services (982 HK): Scheme Offer at HK$0.29

By Arun George

Huafa Property Services Group (982 HK) announced a privatisation offer from Huafa Industrial Co., Ltd. Zhuhai (600325 CH) at HK$0.29 per share, a 30.6% premium to the undisturbed price.
Key conditions include approval by at least 75% of independent shareholders (<10% of independent shareholders rejection) and a headcount test. No shareholder holds a blocking stake.
The offer, which has been declared final, is attractive compared to historical share prices and peer multiples. This is a done deal, with payment likely in November.

Taiwan Top 50 ETF Rebalance Preview: Asia Vital Components (3017 TT) In Back-To-Back Inclusion?

By Brian Freitas

Asia Vital Components (3017 TT) could replace Chang Hwa Commercial Bank (2801 TT) in the Yuanta/P-Shares Taiwan Top 50 ETF at the June rebalance.
This ETF inclusion for Asia Vital Components (3017 TT) could come back-to-back with another index inclusion scheduled for the end of May.
Shorts in Asia Vital Components (3017 TT) have been increasing recently while shorts in Chang Hwa Commercial Bank (2801 TT) are near their lows.

Best World (BEST SP): Best & Final Offer

The $2.50/share Exit Offer announced last month seemed fair. Not great, but okay. Best World International (BEST SP)‘s founders Dora Hoan and Doreen Tan have now blinked, and bumped.
Terms are S$2.56/share – best & final. The increase in the Exit Offer price followed “a review of its most recent financial and cash position“. More likely, shareholder pushback.
Elsewhere, nephews and siblings of Hoan, bought shares just prior to the initial Offer announcement; and have been selling since. Not a great look.

An Early Look at Potential Deletions and Additions to KOSPI200 in December 2024

By Research as a Service (RaaS)

In this insight, we provide an early look at the potential additions and deletions to KOSPI200 rebalance in December 2024.
The seven potential additions are up on average 53.9% from end of 2023. The seven potential deletion candidates are down on average 14.2% YTD.
The average market cap of the seven potential additions is 2.2 trillion won. The average market cap of the seven potential deletion candidates is 0.7 trillion won.

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May 28

Daily Brief Australia: Telix Pharmaceuticals, Adriatic Metals PLC, Qantm Intellectual Property and more

By Smartkarma Daily Briefs | Australia, Daily Briefs

In today’s briefing:

Telix Pharmaceutical US ADS – Past Deal Record Hasn’t Been Strong, but Fortune Could Be Turning
Another “fully funded” capital raise?
Qantm Intellectual Property – Revised guidance to incorporate scheme costs

Telix Pharmaceutical US ADS – Past Deal Record Hasn’t Been Strong, but Fortune Could Be Turning

By Clarence Chu

Telix Pharmaceuticals (TLX AU) aims to raise at least US$100m in its US ADS listing. The bookrunners on the deal are Jefferies, Morgan Stanley, Truist Securities, and William Blair.
TLX is a commercial-stage biopharmaceutical company focused on the development and commercialization of therapeutic and diagnostic radiopharmaceuticals.
In this note, we talk about the deal dynamics and the listing impact.

Another “fully funded” capital raise?

By Money of Mine

Adriatic is raising an additional $50 million in capital through a discounted offering
Orion is selling down half of their equity position in the raise, with plans to trim further after 90 days
Queens Road Capital converted their $20 million convertible debt into equity ahead of schedule in March

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

Qantm Intellectual Property – Revised guidance to incorporate scheme costs

RaaS has published an update report on IP services group QANTM Intellectual Property (ASX:QIP) following its update on earnings guidance, incorporating the impact of transaction costs on reported EPS in FY24.
QIP said that as a result of transaction costs it expects to incur up to 30 June in relation to the Scheme of Arrangement with Adamantem Capital, FY24 EPS is now expected to be from $0.075 to $0.08/share.
The company also provided a new underlying EBITDA range of $33.0m to $33.5m, noting there has been no material change to underlying trading conditions.

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May 28

Daily Brief Crypto: Crypto Crisp: “There Is No Second Place” and more

By Smartkarma Daily Briefs | Crypto, Daily Briefs

In today’s briefing:

Crypto Crisp: “There Is No Second Place”

Crypto Crisp: “There Is No Second Place”

By Mads Eberhardt

Do we even need to mention the most significant news from last week? Probably not.
However, here is a brief summary: the U.S. Securities and Exchange Commission (SEC) approved an Ethereum spot ETF on Thursday.
Almost as significant as the approval itself is the shift in the U.S. regulatory environment’s tone toward crypto.

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May 28

Daily Brief Macro: Thailand: Ready (Re)SET Go! and more

By Smartkarma Daily Briefs | Daily Briefs, Macro

In today’s briefing:

Thailand: Ready (Re)SET Go!
FSC Head Remarks Short Selling Could Resume in 1Q 2025 and Launch of Financial Investment Income Tax
The Week That Was in ASEAN@Smartkarma – Kalbe Farma, Grab Holdings, and Philippine StockExchange
This Is How Fund Managers Can Close Their Research Gap in Agricultural Commodities
Energy Cable: A new supply side crisis brewing in Nat Gas space?

Thailand: Ready (Re)SET Go!

By Warut Promboon

Nothing has changed since our last BMM and the SET has underperformed as expected, declining further to 1,364.5 on 24-May versus 1,398.1 on 28-February.
Here we suggest on what the SET should do to move forward, now that the SET is seeking a new President.
Here are the five to-do list for SET. Read or Not…

FSC Head Remarks Short Selling Could Resume in 1Q 2025 and Launch of Financial Investment Income Tax

On 27 May, Lee Bok-Hyun (Head of FSC) remarked that short selling of stocks in Korea could resume sometime in 1Q -4Q 2025.
The centralized system to detect short selling of stocks in Korea on a live basis could be completed as early as 1Q 2025.
The financial investment income tax is likely to be LAUNCHED in January 2025, which could negatively impact the local stock market.

The Week That Was in ASEAN@Smartkarma – Kalbe Farma, Grab Holdings, and Philippine StockExchange

By Angus Mackintosh

The past week saw insights on Kalbe Farma (KLBF IJ), Grab Holdings (GRAB US), Philippine Stock Exchange (PSE PM), Best World International (BEST SP), and PropertyGuru (PGRU US).
There were also macro insights on Malaysia, Singapore, and Indonesia plus insights on Citicore Renewable Energy IPO, Singapore banks and CrossASEAN Ground Zero on Food Panda, GoTo, and PropertyGuru.
The Week That Was in ASEAN@Smartkarma is filled with an eclectic mix of differentiated, substantive, and actionable insights, macro and equity bottom-up, from across Southeast Asia.

This Is How Fund Managers Can Close Their Research Gap in Agricultural Commodities

By The Commodity Report

Expectations of an “above-normal” monsoon in 2024 currently help to keep prices for commodities that are in large parts grown in India under control.
That includes rice as well as sugar prices.
According to the IRI’s latest ENSO forecast, La Niña becomes the most probable category in Aug-Oct, 2024 through Jan-Mar, 2025.

Energy Cable: A new supply side crisis brewing in Nat Gas space?

By Andreas Steno

The natural gas trade has started to move in recent weeks as the supply side looks constrained again.
While the current situation doesn’t exactly mirror 2021, there are some similarities when we look more closely.
Firstly, given the new supply outlook post-energy crisis, we believe there are no fundamental reasons for TTF natural gas to trade in its pre-crisis range.

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May 28

Daily Brief South Korea: S.M.Entertainment Co, APR, Celltrion Inc, Shift Up and more

By Smartkarma Daily Briefs | Daily Briefs, South Korea

In today’s briefing:

HYBE: Block Deal Sale of SM Entertainment
An Early Look at Potential Deletions and Additions to KOSPI200 in December 2024
FnGuide Top 5 Plus Index Rebalance Preview: Celltrion Could Replace KT&G
Shift Up IPO – Peer Comparison – Small in Size but Ranks High on Growth and Margins

HYBE: Block Deal Sale of SM Entertainment

After the market close on 27 May, HYBE (352820 KS) announced that it will conduct a block deal sale of 0.75 million to 0.94 million shares of SM Entertainment.
The block deal sale price discount is 4% to 5.5% discount to the closing price on 27 May (95,800 won).
One of the major positive, recent issues facing the Korean K-Pop related stocks has been the potential easing of Korean content restrictions by China.

An Early Look at Potential Deletions and Additions to KOSPI200 in December 2024

In this insight, we provide an early look at the potential additions and deletions to KOSPI200 rebalance in December 2024.
The seven potential additions are up on average 53.9% from end of 2023. The seven potential deletion candidates are down on average 14.2% YTD.
The average market cap of the seven potential additions is 2.2 trillion won. The average market cap of the seven potential deletion candidates is 0.7 trillion won.

FnGuide Top 5 Plus Index Rebalance Preview: Celltrion Could Replace KT&G

By Brian Freitas

The Samsung KODEX Top5Plus Total Return ETF (315930 KS) tracks the FnGuide Top 5 Plus Index and has an AUM of KRW 1,357bn (~US$1bn).
We currently see a high probability of Celltrion Inc (068270 KS) replacing KT&G Corporation (033780 KS) in the index at the June rebalance.
There is between 1-2 days of ADV to trade on the potential add and delete and smaller flows on the other index members due to capping and funding changes.

Shift Up IPO – Peer Comparison – Small in Size but Ranks High on Growth and Margins

By Sumeet Singh

Shift Up (462870 KS) plans to raise up to US$320m in its upcoming South Korean IPO.
Shift Up is a South Korean games developer, which as released three games so far for the global markets.
In our previous note, we looked at the company’s past performance. In this note, we will undertake a peer comparison.

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May 28

Daily Brief Singapore: Best World International, Seatrium , Linnovate Partners Afs , Allies Group , Grab Holdings , Staple AI , OUE Ltd and more

By Smartkarma Daily Briefs | Daily Briefs, Singapore

In today’s briefing:

Best World (BEST SP): Best & Final Offer
Seatrium – Offshore Ahoy!
SeaTown leads US$40M funding of asset servicing firm Linnovate Partners | e27
EBITA-profitable Allies of Skin raises $20m for US expansion
Grab Holdings: Improving Marketplace Efficiencies and Operating Leverage!
Wavemaker leads $4m round of Staple
AEM, UMS, NetLink and Baker Tech directors acquire stock

Best World (BEST SP): Best & Final Offer

The $2.50/share Exit Offer announced last month seemed fair. Not great, but okay. Best World International (BEST SP)‘s founders Dora Hoan and Doreen Tan have now blinked, and bumped.
Terms are S$2.56/share – best & final. The increase in the Exit Offer price followed “a review of its most recent financial and cash position“. More likely, shareholder pushback.
Elsewhere, nephews and siblings of Hoan, bought shares just prior to the initial Offer announcement; and have been selling since. Not a great look.

Seatrium – Offshore Ahoy!

By Rikki Malik

An overlooked old economy sector in Asia ripe for a comeback
Industry dynamics will provide a long-term tailwind for the company
Opportunity created by deletion from an index and corporate restructuring

SeaTown leads US$40M funding of asset servicing firm Linnovate Partners | e27

By e27

Singapore-based Linnovate Partners, an asset servicing and fintech company for the alternative investment industry, has received a US$40 million funding commitment led by Temasek-owned SeaTown Private Capital Master Fund.
This capital infusion will enable Linnovate to scale operations and drive innovation.
Henry Lin, founder and CEO of Linnovate Partners, said: “This investment will be instrumental in accelerating our growth trajectory, providing us with the necessary resources to enhance our service offering, and continue delivering cutting-edge solutions to our clients and the industry itself.”

EBITA-profitable Allies of Skin raises $20m for US expansion

By Tech in Asia

Singapore-based beauty brand Allies of Skin is set to expand into the US after raising a US$20 million funding round from Meaningful Partners.
This follows the company hitting positive EBITA in 2023, its founder Nicolas Travis told Tech in Asia.
Allies of Skin, founded in 2016, said the round is its first institutional raise, but it has received private investments in the past – including capital from Crazy Rich Asians star Henry Golding.

Grab Holdings: Improving Marketplace Efficiencies and Operating Leverage!