All Posts By

Smartkarma Daily Briefs

Oct 29
0

Daily Brief Equity Bottom-Up: Siloam International Hospitals (SILO IJ) – Sustainable Base Case Revival and more

By | Daily Briefs, Equity Bottom-Up

In today’s briefing:

  • Siloam International Hospitals (SILO IJ) – Sustainable Base Case Revival
  • Wynn: Market Has Not Caught on yet to Speed of Macau Recovery Making Current Entry Point Attractive
  • China Healthcare Weekly (Oct.27) – TCM Formula Granules VBP, Medical Statistics to Watch, Livzon
  • SK Bioscience (302440 KS): Significantly Improved 3Q Result Benefitted From One-Time Payment

Siloam International Hospitals (SILO IJ) – Sustainable Base Case Revival

By Angus Mackintosh

  • Siloam International Hospitals booked strong set of 3Q2023 with continuing evidence of the recovery in its core base-case business together with the effectiveness of its cost and efficiency initiatives. 
  • The company saw a strong recovery across outpatient visits and inpatient admissions, with evidence of greater treatment complexity along with higher intensity with less time spent in hospital. 
  • Siloam International Hospitals continues to focus on digitising its processes to improve both patient experience and its internal processes. Valuations remain attractive versus listed peers.

Wynn: Market Has Not Caught on yet to Speed of Macau Recovery Making Current Entry Point Attractive

By Howard J Klein

  • Investors appear to be divided in  outlook  on Wynn. Some concern about post covid Las Vegas boom losing steam vs. exploding  Macau recovery beyond most early forecasts.
  • Wynn’s Macau properties are particularly aimed at the all  important premium  mass segment which is already showing itself in dramatic casino win  games at  Wynn propeties.
  • The company still  benefits from the  vision  of  founder Steve Wynn in the properties developed before his controversial resignation in 2018.

China Healthcare Weekly (Oct.27) – TCM Formula Granules VBP, Medical Statistics to Watch, Livzon

By Xinyao (Criss) Wang

  • The results of the first VBP of TCM formula granules in China were announced. 200 varieties of TCM formula granules have been included, with an average price reduction of 50.77%.
  • According to the recently released Statistical Bulletin on the Development of Health Care in 2022, we have listed some key points worth investors’ attention.
  • Livzon’s 23Q3 performance was below expectations, which was more related to external factors such as anti-corruption campaign, VBP. However, Chairman’s share buyback proposal indicates possibility of a future reversal.

SK Bioscience (302440 KS): Significantly Improved 3Q Result Benefitted From One-Time Payment

By Tina Banerjee

  • In 3Q23, revenue jumped 2.5x YoY and 12.1x QoQ to KRW231.8 billion, mainly due to the inflow related to Novavax vaccine contract settlement and resumption of flu vaccine production.
  • Despite significantly improved Q3 result, SK Bioscience is expected to end 2023 on a weak note, due to the absence of contract manufacturing revenue from Novavax.
  • SK Bioscience has applied for EUA for the updated Novavax COVID-19 vaccine in Korea. Once approved, the company targets to distribute the vaccine during 2023–2024 winter seasons in Korea.

💡 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


Oct 29
0

Daily Brief Macro: EUR Inflation Watch: A Dovish Surprise in the Making and more

By | Daily Briefs, Macro

In today’s briefing:

  • EUR Inflation Watch: A Dovish Surprise in the Making

EUR Inflation Watch: A Dovish Surprise in the Making

By Andreas Steno

  • We received the first inflation evidence from the Euro area already earlier today as the German regional office in Brandenburg released the preliminary October numbers printing at 0.0% MoM.
  • That is a very soft reading, fitting hand in glove with our dovish EUR-flation view, and it looks favorable both in unadjusted and seasonally adjusted terms.
  • A reasonable expectation (based on seasonal patterns + trend) would be to expect a 0.2-0.3% MoM print in Brandenburg for October, so it strengthens our case for a material dovish surprise.

💡 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


Oct 29
0

Most Read: DISCO Corp, Kurita Water Industries, Youngone Holdings, Shinsung Delta Tech, Tuhu Car, Japan Post Bank, Sam A Aluminum, Adaro Energy, Zhejiang Leapmotor Technologie and more

By | Daily Briefs, Most Read

In today’s briefing:

  • Nikkei 225 Index Rebalance Preview (Mar 2024): Ranking, Capping, Funding & Other Changes
  • Index Rebalance & ETF Flow Recap: HSCEI, HSTECH, TOPIX FFW, SSE50, AS51, ChiNext, Kenedix, Liontown
  • Index Rebalance & ETF Flow Recap: NKY, ASX, Liontown, J&T Express, JP/IN Positioning, IndusInd Bank
  • KOSPI200 Index Rebalance Preview: The Tail End
  • KOSDAQ150 Index Rebalance Preview: Big Sell Off Among Potential Inclusions as Momentum Fades
  • HSCI Index Rebalance Preview: Tuhu Car in the Driver’s Seat; Keep Inc in the Running
  • Japan Post Bank (7182) October TOPIX FFW Upweight Upon Us
  • KOSPI200/KOSDAQ150 Index Rebalances: KRX Increases Opacity on Stock Selection
  • IDX30/​​LQ45/IDX80 Index Rebalance: Float & Capping Changes on Tuesday
  • Leapmotor (9863 HK): Stellantis’ Stake Doesn’t Come Cheap

Nikkei 225 Index Rebalance Preview (Mar 2024): Ranking, Capping, Funding & Other Changes

By Brian Freitas

  • The review period for the Nikkei 225 (NKY INDEX) March rebalance ends end January. There could be three changes at the rebalance with sector balance in focus.
  • Depending on the changes, passive trackers will need to buy between 6-28x ADV (11-50% of real float) on the inclusions and sell between 2.8-44x ADV on the deletions.
  • Fast Retailing (9983 JP) could be capped at 11% of the index weight and there will be buying in Nitori Holdings (9843 JP) due to the stepwise addition.

Index Rebalance & ETF Flow Recap: HSCEI, HSTECH, TOPIX FFW, SSE50, AS51, ChiNext, Kenedix, Liontown

By Brian Freitas

Index Rebalance & ETF Flow Recap: NKY, ASX, Liontown, J&T Express, JP/IN Positioning, IndusInd Bank

By Brian Freitas

KOSPI200 Index Rebalance Preview: The Tail End

By Brian Freitas

  • With the review period nearly complete, we expect 7 changes to the Korea Stock Exchange KOSPI 200 (KOSPI2 INDEX) in December. Couple of changes are low probability though.
  • The Materials sector could be the biggest gainer at the rebalance while nearly all deletions could come from the Consumer Discretionary sector.
  • The impact on the potential inclusion ranges from 0.15-15 days of ADV while the impact on the potential deletions varies from 1.7-8.1 days of ADV.

KOSDAQ150 Index Rebalance Preview: Big Sell Off Among Potential Inclusions as Momentum Fades

By Brian Freitas

  • With the review period nearly complete, we see 15 potential changes for the KOSDAQ 150 Index (KOSDQ150 INDEX) at the December rebalance.
  • There could be index changes even before the December rebalance if there are prolonged trading suspensions and stocks migrate from the KOSDAQ Market to the KOSPI Market.
  • The potential adds have sold off hard over the last six weeks, similar to the performance at the June rebalance.

HSCI Index Rebalance Preview: Tuhu Car in the Driver’s Seat; Keep Inc in the Running

By Brian Freitas

  • There were only 14 new listing on the Main Board of the HKEX (388 HK) in the third quarter. Half of the listings were in the last week of September.
  • Of those stocks, only Tuhu Car (9690 HK) and Keep (3650 HK) have a chance of being added to the HSCI in December and then into Southbound Stock Connect.
  • Keep Inc (3650 HK) could be added to Stock Connect in early December while Tuhu Car (9690 HK) will have to wait till April for inclusion to the link.

Japan Post Bank (7182) October TOPIX FFW Upweight Upon Us

By Travis Lundy

  • Japan Post Bank (7182 JP) gets a dramatic upweight in TOPIX on Monday 30 October. There is a LOT of stock to buy. Call it US$2.2bn. 
  • Shares have to come from someplace. Basically it will all come from retail or from those who pre-positioned themselves in the stock (buying from retail). Some could come from short-sellers.
  • The stock WAS not cheap vs regional banks (what I see as their best set of comps) and the Q2 Unrealised Loss on Securities has ballooned. But care is needed.

KOSPI200/KOSDAQ150 Index Rebalances: KRX Increases Opacity on Stock Selection

By Brian Freitas

  • KRX has amended the stock selection methodology for the KOSPI2 INDEX and KOSDQ150 INDEX and added ‘Expert Judgement’ as a criteria.
  • The qualitative and quantitative criteria and the detailed filtering standards will be described in the manual but will NOT be publicly disclosed.
  • There is no change from using full market cap to free float market cap in stock selection, so the stocks that could be added/deleted will be broadly same as forecasts.

IDX30/​​LQ45/IDX80 Index Rebalance: Float & Capping Changes on Tuesday

By Brian Freitas

Leapmotor (9863 HK): Stellantis’ Stake Doesn’t Come Cheap

By David Blennerhassett

  • Stellantis, a merger between France’s PSA with Fiat Chrysler Automobiles NV (FCAM BQ), is buying a 17% stake (14.53% fully diluted) in Zhejiang Leapmotor Technologie (9863 HK). 
  • Leapmotor will issue 194mn H shares at HK$43.8/share, a 19% premium to last close, in a HK$8.51bn transaction. Stellantis will also hold a 51% stake in newly formed JV. 
  • Stellantis is paying a chunky 3.64x market cap-trailing-revenue; but ~2.25x forward revs, which compares to the average for key peers of 1.9x.

💡 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 Analytics and News
  • ✓ Events & Webinars
Sign Up for Free



Oct 29
0

Daily Brief Australia: Newcrest Mining and more

By | Australia, Daily Briefs

In today’s briefing:

  • Last Week In Event SPACE: Newcrest/Newmont, Keisei Electric, PCCW, Cosmo Energy, Leapmotor

Last Week In Event SPACE: Newcrest/Newmont, Keisei Electric, PCCW, Cosmo Energy, Leapmotor

By David Blennerhassett

💡 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


Oct 29
0

Daily Brief South Korea: Eoflow , SK Bioscience and more

By | Daily Briefs, South Korea

In today’s briefing:

  • (Mostly) Asia-Pac Weekly Risk Arb Wrap: Azure, EOFlow, Hollysys, Essential Metals, Celltrion Health
  • SK Bioscience (302440 KS): Significantly Improved 3Q Result Benefitted From One-Time Payment

(Mostly) Asia-Pac Weekly Risk Arb Wrap: Azure, EOFlow, Hollysys, Essential Metals, Celltrion Health

By David Blennerhassett

SK Bioscience (302440 KS): Significantly Improved 3Q Result Benefitted From One-Time Payment

By Tina Banerjee

  • In 3Q23, revenue jumped 2.5x YoY and 12.1x QoQ to KRW231.8 billion, mainly due to the inflow related to Novavax vaccine contract settlement and resumption of flu vaccine production.
  • Despite significantly improved Q3 result, SK Bioscience is expected to end 2023 on a weak note, due to the absence of contract manufacturing revenue from Novavax.
  • SK Bioscience has applied for EUA for the updated Novavax COVID-19 vaccine in Korea. Once approved, the company targets to distribute the vaccine during 2023–2024 winter seasons in Korea.

💡 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


Oct 29
0

Daily Brief Indonesia: Siloam International Hospitals and more

By | Daily Briefs, Indonesia

In today’s briefing:

  • Siloam International Hospitals (SILO IJ) – Sustainable Base Case Revival

Siloam International Hospitals (SILO IJ) – Sustainable Base Case Revival

By Angus Mackintosh

  • Siloam International Hospitals booked strong set of 3Q2023 with continuing evidence of the recovery in its core base-case business together with the effectiveness of its cost and efficiency initiatives. 
  • The company saw a strong recovery across outpatient visits and inpatient admissions, with evidence of greater treatment complexity along with higher intensity with less time spent in hospital. 
  • Siloam International Hospitals continues to focus on digitising its processes to improve both patient experience and its internal processes. Valuations remain attractive versus listed peers.

💡 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


Oct 29
0

Daily Brief China: Livzon Pharmaceutical Group, Lansen Pharmaceutical Holdings Co, Ltd. and more

By | China, Daily Briefs

In today’s briefing:

  • China Healthcare Weekly (Oct.27) – TCM Formula Granules VBP, Medical Statistics to Watch, Livzon
  • Lansen Pharma (503 HK): 27th November Scheme Vote

China Healthcare Weekly (Oct.27) – TCM Formula Granules VBP, Medical Statistics to Watch, Livzon

By Xinyao (Criss) Wang

  • The results of the first VBP of TCM formula granules in China were announced. 200 varieties of TCM formula granules have been included, with an average price reduction of 50.77%.
  • According to the recently released Statistical Bulletin on the Development of Health Care in 2022, we have listed some key points worth investors’ attention.
  • Livzon’s 23Q3 performance was below expectations, which was more related to external factors such as anti-corruption campaign, VBP. However, Chairman’s share buyback proposal indicates possibility of a future reversal.

Lansen Pharma (503 HK): 27th November Scheme Vote

By David Blennerhassett

  • On the 17 September, specialty prescription drug manufacturer Lansen Pharmaceutical Holdings Co, Ltd. (503 HK), a perennial takeover target, finally announced an Offer.
  • Wu Zhen Tao, NED and Chairman of Lansen, made an Offer for shares not indirectly held, of HK$1.80/share, by way of a Scheme, a 26.76% premium to last close.
  • Composite Doc is now out. Court Meeting is the 27th November. Expected last day of trading is the 28 Nov. 28 December payment. IFA says fair and reasonable. Looks done.

💡 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


Oct 29
0

Daily Brief Japan: GMO Payment Gateway, Kokusai Electric , TSE Tokyo Price Index TOPIX and more

By | Daily Briefs, Japan

In today’s briefing:

  • Index Rebalance & ETF Flow Recap: KS200, KQ150, Yuanta Div+, LIT, HSCI, IDX, Japan Positioning
  • ECM Weekly (29th Oct 2023) – Kokusai, J&T, Midea, Wuxi XDC, Cirrus, Cello World, Honasa, SIA
  • % of Female Board Members Asks “Seriousness” Of Improving Profitability and Governance Etc.
  • Only 20% of Current CEOs in Japan Expected to Have a Female CEO Within 10 Years

Index Rebalance & ETF Flow Recap: KS200, KQ150, Yuanta Div+, LIT, HSCI, IDX, Japan Positioning

By Brian Freitas

ECM Weekly (29th Oct 2023) – Kokusai, J&T, Midea, Wuxi XDC, Cirrus, Cello World, Honasa, SIA

By Sumeet Singh

  • Aequitas Research puts out a weekly update on the deals that were covered by the team recently along with updates for upcoming IPOs.
  • In the IPO space, Kokusai Electric (6525 JP) provided some relief in the ECM space, even as J&T Global Express (1519 HK) didn’t do much.
  • Given the earnings seasons, there weren’t any placement during the week. We did look at Singapore Airlines (SIA SP)‘s upcoming placement lockup expiry. 

% of Female Board Members Asks “Seriousness” Of Improving Profitability and Governance Etc.

By Aki Matsumoto

  • While necessary talent should be sought from both outside and inside the company, it is not good for the company’s future if the most of internal executive directors are male.
  • The appointment of women and foreign board members is an effective way to transform the board of directors to ensure transparency and objectivity, without compromising the traditional atmosphere of familiarity.
  • Companies with a higher percentage of female board members tend to be more proactive in their corporate governance practices and more diligent about improving profitability and stock valuation.

Only 20% of Current CEOs in Japan Expected to Have a Female CEO Within 10 Years

By Aki Matsumoto

  • The group of companies with lower than 25% female board member will only manage to meet the targets by “matching numbers,” as few companies have high awareness regarding the practice.
  • Since the government target of 30% female managers was set in 2005, companies’ awareness remains low. It’s not easy to raise the ratio to 30% by the methods so far.
  • There are a number of initiatives that will not progress unless top management is replaced by women, including accelerated promotion of women to management positions and female board members.

💡 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


Oct 28
0

Daily Brief Australia: Cobalt Blue Holdings, Akora Resources, Resources & Energy and more

By | Australia, Daily Briefs

In today’s briefing:

  • Cobalt Blue Holdings – Mining-To-Refining Cobalt for Global Battery Supply Chain
  • Akora Resources Ltd – Developing High-Grade Iron Ore for the Green Steel Future
  • Resources & Energy Group – Nickel, Cobalt and Gold Focus in Western Australia

Cobalt Blue Holdings – Mining-To-Refining Cobalt for Global Battery Supply Chain

By Research as a Service (RaaS)

  • Cobalt Blue Holdings Ltd (ASX:COB) is a mining and mineral processing company focused onadvancing cobalt mining and refining operations in Australia.
  • The company is developing the Broken Hill Cobalt Project (BHCP) in far west NSW and concurrently in planning on a Kwinanacobalt refinery in WA with a definitive feasibility study underway.
  • Cobalt Blue Holdings wasfounded in 2016 and listed on the ASX in early 2017. 

Akora Resources Ltd – Developing High-Grade Iron Ore for the Green Steel Future

By Research as a Service (RaaS)

  • Akora Resources Ltd (ASX:AKO) is an exploration company engaged in the development of three iron ore projects, Bekisopa, Tratramarina and Ambodilafa, in Madagascar.
  • The company has initially focused on Bekisopa, which has a maiden resource of 194.7Mt with the potential for significant high-grade lump direct ship ore (DSO).
  • The Indicated DSO is 4.4Mt at 61% Fe, “Green Steel” 34Mt at 58% DTR to 69% Fe concentrate. 

Resources & Energy Group – Nickel, Cobalt and Gold Focus in Western Australia

By Research as a Service (RaaS)

  • Resources & Energy Group Ltd (ASX:REZ) is an exploration company engaged in the development of its flagship East Menzies gold project, 130km north of Kalgoorlie, Western Australia.
  • The company has been operating as a gold, nickel and cobalt exploration and development company since 2015 and currently has gold and silver resources of 183koz gold and 862koz silver.
  • REZ recently announced (17-Oct) that optimisation studies at the Goodenough and Maranoa gold prospects within the East Menzies district had confirmed an opportunity for a low cost, near- term open cut mining operation at Goodenough, which had previously been worked as an underground resource with historic production of ~21,532t at 14.91g/t. 

💡 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


Oct 28
0

Daily Brief South Korea: Selvas AI Inc, Medco Energi and more

By | Daily Briefs, South Korea

In today’s briefing:

  • Passive Flow Trading Opportunities Emerge from L&F’s Transition to KOSPI Listing
  • Weekly Wrap – 27 Oct 2023

Passive Flow Trading Opportunities Emerge from L&F’s Transition to KOSPI Listing

By Sanghyun Park

  • L&F will likely be listed on the KOSPI in mid-December. The top reserved issue within the KOSDAQ 150 IT Sector will be added to the index via an ad-hoc change.
  • Selvas AI stands as the foremost candidate for the screened top reserved issue, with a mere two trading days remaining in the six-month screening period.
  • Given the relatively limited proactive position buildup due to more uncertainty regarding timing, the price impact leading up to the effective date might become even more significant.

Weekly Wrap – 27 Oct 2023

By Charles Macgregor

Lucror Analytics Weekly Wraps provide an overview of all Morning Views comments and reports published by our analyst team in the past week, and also showcase a list of the most-read reports.

In this Insight:

  1. Adani Green Energy
  2. Vedanta Resources
  3. China Jinmao Holdings
  4. Geely Auto
  5. First Pacific Co

and more…

💡 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