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Smartkarma Daily Briefs

Oct 22
0

Daily Brief ESG: Challenge Is to Simultaneously Reduce Cash on Hand and Achieve Profitability over Cost of Capital and more

By | Daily Briefs, ESG

In today’s briefing:

  • Challenge Is to Simultaneously Reduce Cash on Hand and Achieve Profitability over Cost of Capital

Challenge Is to Simultaneously Reduce Cash on Hand and Achieve Profitability over Cost of Capital

By Aki Matsumoto

  • Managers self-analyze the factors that lead to P/B of below 1x, as companies fail to appreciate their growth potential and to ensure profitability in excess of their cost of capital.
  • This seems to be dilemma in that companies’ failure to realize sufficient profitability, along with insufficient growth investments, prevents them from sharing the image of corporate value growth with investors.
  • Managers believe that the first step is to improve ROE by reshuffling business portfolios and promoting profitability improvement, but reducing excess cash and increasing shareholder returns should be pursued simultaneously.

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Oct 22
0

Daily Brief Quantitative Analysis: TWSE Short Interest Weekly (Oct 20th): Quanta Computer and more

By | Daily Briefs, Quantitative Analysis

In today’s briefing:

  • TWSE Short Interest Weekly (Oct 20th): Quanta Computer, Alchip Tech, ASE, Largan Precision, Novatek

TWSE Short Interest Weekly (Oct 20th): Quanta Computer, Alchip Tech, ASE, Largan Precision, Novatek

By Ke Yan, CFA, FRM

  • We analyzed the changes in short interest of TWSE Stocks as of Oct 20th which has an aggregated short interest worth USD14.2bn.
  • We tabulate league table for top short by value and short as multiple of ADT, as well as weekly increases & decreases in short value, short as multiple of ADT.
  • We highlight short interest changes in Quanta Computer, Alchip Tech, ASE, Largan Precision, Novatek, Lite-On Tech, Accton Tech.

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Oct 22
0

Daily Brief Australia: S&P/ASX 200 and more

By | Australia, Daily Briefs

In today’s briefing:

  • EQD | S&P/ASX200 Directionless or Downtrending?

EQD | S&P/ASX200 Directionless or Downtrending?

By Nico Rosti

  • The S&P/ASX 200 INDEX last week closed down (CC=-1, breached the Q2 support at 6918, entering OVERSOLD territory). 
  • The index has been directionless since early August 2021, it is going down but it’s OVERSOLD MONTHLY (3 months down), so it could bounce in November.
  • The current MRM pattern is quite bullish from a CC perspective: here we analyze WEEKLY supports to see how far down the index can go, it could bounce soon.

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Oct 22
0

Daily Brief ECM: ECM Weekly (22nd Oct 2023) – J&T and more

By | Daily Briefs, ECM

In today’s briefing:

  • ECM Weekly (22nd Oct 2023) – J&T, Cuscal, Liontown, Cainiao, ZJLD, Taiwan Cement, Zomato, Hana Micro

ECM Weekly (22nd Oct 2023) – J&T, Cuscal, Liontown, Cainiao, ZJLD, Taiwan Cement, Zomato, Hana Micro

By Clarence Chu

  • Aequitas Research puts out a weekly update on the deals that were covered by the team recently along with updates for upcoming IPOs.
  • J&T Global Express (1519 HK) launched its US$500m HK IPO earlier in the week, with more than half of the Offer Shares going to its pre-IPO shareholders.
  • It was a busy week for placements as well, with Liontown Resources (LTR AU)‘s stealing the spotlight with its equity/debt raising, after Albemarle withdrew its acquisition bid. 

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Oct 22
0

Daily Brief Thematic (Sector/Industry): Japan Weekly | Stocks Sink; Activists Lift Stakes in Rinnai and more

By | Daily Briefs, Thematic (Sector/Industry)

In today’s briefing:

  • Japan Weekly | Stocks Sink; Activists Lift Stakes in Rinnai, Topcon, Kureha

Japan Weekly | Stocks Sink; Activists Lift Stakes in Rinnai, Topcon, Kureha

By Mark Chadwick

  • Topix fell 2.3% due to Wall Street losses as Jerome Powell cited high inflation, and global stocks were pressured by surging bond yields.
  • Major Movers: Small-cap, high growth stocks got killed, especially on any slight earnings miss. Consumer staples, regional banks outperformed
  • Activist Watch: Investors lifting stakes in Rinnai (-3.4%), Topcon (+1.6%) and Kureha (+1%); Yaizu Suisan’s outcome remains uncertain after a failed tender offer

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Oct 22
0

Daily Brief Event-Driven: Index Rebalance & ETF Flow Recap: NKY and more

By | Daily Briefs, Event-Driven

In today’s briefing:

  • Index Rebalance & ETF Flow Recap: NKY, ASX, Liontown, J&T Express, JP/IN Positioning, IndusInd Bank
  • Last Week In Event SPACE: Shinko Electric Industries, MGM China, Decente, Sankei Real Estate,
  • (Mostly) Asia-Pac Weekly Risk Arb Wrap: Lithium Power, Vinda, Origin Energy, Liontown, Kenedix REITs
  • EQD | S&P/ASX200 Directionless or Downtrending?

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

By Brian Freitas

Last Week In Event SPACE: Shinko Electric Industries, MGM China, Decente, Sankei Real Estate,

By David Blennerhassett

(Mostly) Asia-Pac Weekly Risk Arb Wrap: Lithium Power, Vinda, Origin Energy, Liontown, Kenedix REITs

By David Blennerhassett

EQD | S&P/ASX200 Directionless or Downtrending?

By Nico Rosti

  • The S&P/ASX 200 INDEX last week closed down (CC=-1, breached the Q2 support at 6918, entering OVERSOLD territory). 
  • The index has been directionless since early August 2021, it is going down but it’s OVERSOLD MONTHLY (3 months down), so it could bounce in November.
  • The current MRM pattern is quite bullish from a CC perspective: here we analyze WEEKLY supports to see how far down the index can go, it could bounce soon.

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Oct 22
0

Daily Brief Equity Bottom-Up: China Healthcare Weekly (Oct.20)-Investment Returns on Weight Loss/AD and more

By | Daily Briefs, Equity Bottom-Up

In today’s briefing:

  • China Healthcare Weekly (Oct.20)-Investment Returns on Weight Loss/AD,GLP-1 Gene Therapy,AIM Vaccine
  • Novatek (3034.TT): Re-Qualify IPhone OLED Display DDIC; the Downturn Might Be Ending Soon.

China Healthcare Weekly (Oct.20)-Investment Returns on Weight Loss/AD,GLP-1 Gene Therapy,AIM Vaccine

By Xinyao (Criss) Wang

  • Weight loss and Alzheimer’s disease (AD) have been ranked among the top indications in the pharmaceutical history and are undeniable opportunities, but they are expected to generate different investment returns.
  • We have noticed that some companies have started developing GLP-1 gene therapy. We would be cautious about this.
  • Without strong fundamentals but is eager to go public on A-share market, AIM Vaccine (6660 HK) seems more enthusiastic about capital operations to make quick money.We consider this company risky.

Novatek (3034.TT): Re-Qualify IPhone OLED Display DDIC; the Downturn Might Be Ending Soon.

By Patrick Liao

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Oct 22
0

Daily Brief Japan: Kurita Water Industries, Shinko Electric Industries, TSE Tokyo Price Index TOPIX and more

By | Daily Briefs, Japan

In today’s briefing:

  • Index Rebalance & ETF Flow Recap: NKY, ASX, Liontown, J&T Express, JP/IN Positioning, IndusInd Bank
  • Last Week In Event SPACE: Shinko Electric Industries, MGM China, Decente, Sankei Real Estate,
  • Challenge Is to Simultaneously Reduce Cash on Hand and Achieve Profitability over Cost of Capital

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

By Brian Freitas

Last Week In Event SPACE: Shinko Electric Industries, MGM China, Decente, Sankei Real Estate,

By David Blennerhassett

Challenge Is to Simultaneously Reduce Cash on Hand and Achieve Profitability over Cost of Capital

By Aki Matsumoto

  • Managers self-analyze the factors that lead to P/B of below 1x, as companies fail to appreciate their growth potential and to ensure profitability in excess of their cost of capital.
  • This seems to be dilemma in that companies’ failure to realize sufficient profitability, along with insufficient growth investments, prevents them from sharing the image of corporate value growth with investors.
  • Managers believe that the first step is to improve ROE by reshuffling business portfolios and promoting profitability improvement, but reducing excess cash and increasing shareholder returns should be pursued simultaneously.

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

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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
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Oct 22
0

Daily Brief China: AIM Vaccine, Alibaba Group Holding , Vinda International and more

By | China, Daily Briefs

In today’s briefing:

  • China Healthcare Weekly (Oct.20)-Investment Returns on Weight Loss/AD,GLP-1 Gene Therapy,AIM Vaccine
  • ECM Weekly (22nd Oct 2023) – J&T, Cuscal, Liontown, Cainiao, ZJLD, Taiwan Cement, Zomato, Hana Micro
  • (Mostly) Asia-Pac Weekly Risk Arb Wrap: Lithium Power, Vinda, Origin Energy, Liontown, Kenedix REITs

China Healthcare Weekly (Oct.20)-Investment Returns on Weight Loss/AD,GLP-1 Gene Therapy,AIM Vaccine

By Xinyao (Criss) Wang

  • Weight loss and Alzheimer’s disease (AD) have been ranked among the top indications in the pharmaceutical history and are undeniable opportunities, but they are expected to generate different investment returns.
  • We have noticed that some companies have started developing GLP-1 gene therapy. We would be cautious about this.
  • Without strong fundamentals but is eager to go public on A-share market, AIM Vaccine (6660 HK) seems more enthusiastic about capital operations to make quick money.We consider this company risky.

ECM Weekly (22nd Oct 2023) – J&T, Cuscal, Liontown, Cainiao, ZJLD, Taiwan Cement, Zomato, Hana Micro

By Clarence Chu

  • Aequitas Research puts out a weekly update on the deals that were covered by the team recently along with updates for upcoming IPOs.
  • J&T Global Express (1519 HK) launched its US$500m HK IPO earlier in the week, with more than half of the Offer Shares going to its pre-IPO shareholders.
  • It was a busy week for placements as well, with Liontown Resources (LTR AU)‘s stealing the spotlight with its equity/debt raising, after Albemarle withdrew its acquisition bid. 

(Mostly) Asia-Pac Weekly Risk Arb Wrap: Lithium Power, Vinda, Origin Energy, Liontown, Kenedix REITs

By David Blennerhassett

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Oct 22
0

Most Read: Bharat Electronics, Cheng Shin Rubber Ind Co., Ltd., Li Auto , Astra International, China Unicom Hong Kong, Wuhan Jingce Electronic Group, Japan Post Bank, Liontown Resources, Giordano International, Kurita Water Industries and more

By | Daily Briefs, Most Read

In today’s briefing:

  • NIFTY50 Index Rebalance Preview: Two’s Company; Three’s A Crowd
  • Index Rebalance & ETF Flow Recap: Taiwan Div+, Nifty50, Cainiao IPO, Delta Electronics
  • HSTECH Index Rebalance Preview: Round-Trip Trade of US$556m in December
  • WisdomTree Emerging Markets High Dividend Index Rebalance: Huge Turnover & Trade Next Week
  • HSCEI Index Rebalance Preview: One Change; Capping Impact Increases
  • ChiNext/​​​ChiNext50 Index Rebalance Preview: Sector Rotation Continues
  • Index Rebalance & ETF Flow Recap: HSCEI, HSTECH, TOPIX FFW, SSE50, AS51, ChiNext, Kenedix, Liontown
  • Liontown Resources (LTR AU): State of Play
  • Asian Dividend Gems: Giordano International
  • Index Rebalance & ETF Flow Recap: NKY, ASX, Liontown, J&T Express, JP/IN Positioning, IndusInd Bank

NIFTY50 Index Rebalance Preview: Two’s Company; Three’s A Crowd

By Brian Freitas

  • There should be two changes for the NIFTY Index (NIFTY INDEX) in March. That could increase to three, but that would take some big price moves from now to January.
  • Impact on the potential changes is pretty large at over 6 days of ADV to trade from passive trackers. The impact is over 11 days of delivery volume.
  • Inclusion of Avenue Supermarts Ltd (DMART IN) in the F&O segment before January could lead to another change.

Index Rebalance & ETF Flow Recap: Taiwan Div+, Nifty50, Cainiao IPO, Delta Electronics

By Brian Freitas

HSTECH Index Rebalance Preview: Round-Trip Trade of US$556m in December

By Brian Freitas

  • With no stocks in inclusion or deletion zone, we do not expect any constituent changes for the Hang Seng TECH Index (HSTECH INDEX) in December.
  • Capping changes will result in a one-way turnover of 2.16% and that will result in a round-trip trade of US$556m.
  • The impact of capping changes has doubled over the last month and there will be more changes from now till the official capping is done on 28 November.

WisdomTree Emerging Markets High Dividend Index Rebalance: Huge Turnover & Trade Next Week

By Brian Freitas

  • The WisdomTree Emerging Markets High Dividend Index is a fundamentally weighted index that measures the performance of high dividend yield stocks within emerging markets.
  • The October rebalance will result in a one-way turnover of ~37% and in a one-way trade of US$926m. There are 92 stocks with over 1 day of ADV to trade.
  • In Asia, the largest buy flows are expected on Astra International (ASII IJ) and the largest sell flows on POSCO Holdings (005490 KS). 

HSCEI Index Rebalance Preview: One Change; Capping Impact Increases

By Brian Freitas

ChiNext/​​​ChiNext50 Index Rebalance Preview: Sector Rotation Continues

By Brian Freitas

  • Nearing the end of the review period, we forecast 8 changes for the ChiNext Index (SZ399006 INDEX) and 5 changes for the ChiNext 50 Index in December.
  • Given stock selection uses liquidity as a major input, the impact of passive trading will be much larger on the deletions as compared to the additions.
  • The potential adds have outperformed the potential deletes, but relative performance has been drifting lower over the last few months. There are stocks that will have flows from other indices.

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

By Brian Freitas

Liontown Resources (LTR AU): State of Play

By Brian Freitas

  • Liontown Resources (LTR AU) resumes trading today after announcing a raise of up to A$1.18bn to fully fund the Kathleen Valley Lithium Project to first production and beyond.
  • The equity component is up to A$421m and the placement price of A$1.8/share is a 35.5% discount to the last close.
  • The placement price is higher than the stock price prior to the Albemarle Corp (ALB US) offer and during a period when its peers have performed poorly.

Asian Dividend Gems: Giordano International

By Douglas Kim

  • Giordano, one of the most recognizable apparel business in Asia, has been improving its operations materially with solid growth in sales and profits. 
  • Giordano provides very high dividend yield and payout. The consensus expects DPS of HKD 0.28 for Giordano in 2023, which would suggest a dividend yield of 12.8%. 
  • We like the company’s high dividend yield, loyal customer base, and attractive valuations. It is trading at EV/EBITDA of 3.6x and P/B of 1.5x. 

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

By Brian Freitas

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