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Smartkarma Daily Briefs

Daily Brief TMT/Internet: Salesforce.Com Inc, Splunk Inc, Crowdstrike Holdings , Freshworks, Marvell Technology , Alteryx Inc and more

By | Daily Briefs, TMT/Internet

In today’s briefing:

  • Salesforce Inc.: Can The New Starter CRM Put Salesforce On A Different Level Of Growth? – Major Drivers
  • Splunk Inc.: Strategic Partnership with Microsoft & Other Major Drivers
  • CrowdStrike Holdings: Can The Launch Of Counter Adversary Operations Become A Revenue Driver? – Major Drivers
  • Freshworks: 2023 Investor Day and Valuation Update
  • Marvell Technology: Will The Launch Of COLORZ 800 Have A Significant Impact On Future Revenues? – Major Drivers
  • Alteryx Inc.: On the Precipice of a Game-changing Acquisition? – Major Drivers


Salesforce Inc.: Can The New Starter CRM Put Salesforce On A Different Level Of Growth? – Major Drivers

By Baptista Research

  • Salesforce delivered an all-around beat in the previous quarter.
  • The company’s non-GAAP operating margin increased in the quarter.
  • Salesforce also had fantastic victories throughout the quarter with JPMorgan, Bayer, FedEx, Maersk, as well as the Department of Veterans Affairs.

Splunk Inc.: Strategic Partnership with Microsoft & Other Major Drivers

By Baptista Research

  • Splunk Inc. delivered a decent result and managed an all-around beat in the last quarter, marked by solid execution, operational discipline, and favorable customer engagement.
  • Total revenue experienced a healthy year-over-year increase, demonstrating Splunk’s ability to achieve this growth while managing costs underscores its strategic approach.
  • Additionally, Splunk continued to innovate by leveraging AI in security and observability, introducing the concept of Splunk AI to empower organizations to detect, investigate, and respond more efficiently.

CrowdStrike Holdings: Can The Launch Of Counter Adversary Operations Become A Revenue Driver? – Major Drivers

By Baptista Research

  • CrowdStrike Holdings managed to exceed analyst expectations in terms of revenue as well as earnings.
  • The company outperformed top and bottom line metrics expectations, achieving strong, scalable growth, amazing leverage, and operating within its target model overall.
  • CrowdStrike also successfully implemented a go-to-market strategy centered on cloud security this past quarter, hosting a virtual cloud security summit with over 12,500 security and DevOp attendees, followed by cloud-focused partner and sales plays.

Freshworks: 2023 Investor Day and Valuation Update

By Andrei Zakharov

  • Freshworks, a cloud-based customer services software unicorn, held its first Investor Day on September 7, 2023. Management highlighted the long-term target to deliver the Rule of 40 by 2025. 
  • The 2023 Investor Day agenda included company vision and strategy, solutions in action, strategy for durable growth, customer spotlight, and financial overview, among others. 
  • Management plans to deliver a long-term balance of growth and profitability, with the 2026 model leading to an FCF margin of 20%+ and $1B+ revenue. 

Marvell Technology: Will The Launch Of COLORZ 800 Have A Significant Impact On Future Revenues? – Major Drivers

By Baptista Research

  • Marvell Technology delivered a positive result and managed an all-around beat in the last quarter, producing $1.34 billion in revenue.
  • Revenue in their data center end market was $460 million, up 6% sequentially and significantly more than their forecast of a flat outlook.
  • Notably, revenue from cloud AI and common cloud infrastructure both increased sequentially, with AI expanding more quickly.

Alteryx Inc.: On the Precipice of a Game-changing Acquisition? – Major Drivers

By Baptista Research

  • Alteryx Inc, a notable player in the tech and data analytics sphere has sent ripples of excitement across the investment domain, stirred by buzz surrounding its potential sale.
  • Boasting a formidable client base of over 8,300 entities, including industry behemoths such as Coca-Cola, Vodafone, Walmart, and Ford, Alteryx has firmly entrenched its position in the data analytics industry.
  • Insider sources suggest that the company has engaged the expertise of investment banking stalwart Qatalyst Partners to steer the preliminary talks with potential suitors.

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Daily Brief Financials: Nikkei 225, Seazen (Formerly Future Land) and more

By | Daily Briefs, Financials

In today’s briefing:

  • EQD | Nikkei 225 (NKY) MONTHLY Trajectories Analysis
  • Morning Views Asia:


EQD | Nikkei 225 (NKY) MONTHLY Trajectories Analysis

By Nico Rosti

  • The Nikkei 225 INDEX fell -5.77% during July and August (CC=-2). Currently the index is down for September: this month’s negative Close would be = CC=-3, a strong LONG signal.
  • The index reached a low = 31275.25 in August, right in the middle of the 32391-30600 support price band indicated in our previous MONTHLY Trajectories Analysis,  50%-75% reversal probability.
  • LONG Support levels are confirmed, in this insight we will analyze the new, re-calculated Resistance levels, to evaluate how far/how long the index could rise, if it rallies.

Morning Views Asia:

By Charles Macgregor

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.


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    Daily Brief Health Care: JMDC , Eoflow , Shandong Weigao Group Medical Polymer Co, Veeva Systems Inc Class A and more

    By | Daily Briefs, Healthcare

    In today’s briefing:

    • Weekly Deals Digest (10 Sep) – JMDC, Intage, Mason, Liontown, Newcrest, ARM, Integral, Doosan, VNG
    • Merger Arb Mondays (11 Sep) – Eoflow, Mason, Liontown, Newcrest, United Malt, OreCorp, MPI
    • Shandong Weigao Group Medical Polymer (1066.HK) – Performance Rebound May Not Be as Fast as Imagined
    • Veeva Systems Inc.: An Insider Peek Into Their Financial Operations! – Major Drivers


    Weekly Deals Digest (10 Sep) – JMDC, Intage, Mason, Liontown, Newcrest, ARM, Integral, Doosan, VNG

    By Arun George



    Shandong Weigao Group Medical Polymer (1066.HK) – Performance Rebound May Not Be as Fast as Imagined

    By Xinyao (Criss) Wang

    • Weigao’s 23H1 performance was unsatisfactory. 2023 full-year performance may continue to be under pressure because Weigao needs some time to digest the negative impact of centralized procurement on orthopaedic business.
    • Weigao has hired advisers to find potential buyers for Argon. if Argon is ultimately sold, then the long-term prospects of Weigao’s interventional business and internationalization need to be reassessed.
    • The unsatisfactory share price performance is related to Weigao’s business model – spin-off subsidiaries and IPO separately. There could be rebounds, but it is still possible for Weigao to underperform.

    Veeva Systems Inc.: An Insider Peek Into Their Financial Operations! – Major Drivers

    By Baptista Research

    • Veeva Systems managed to exceed the revenue expectations as well as the earnings expectations of Wall Street, with a total revenue of $590 million and a non-GAAP operating income of $212 million.
    • The Veeva team has made some truly impressive accomplishments as they develop the next generation of CRM.
    • Nearly 25% of their revenue comes from Veeva CRM and their add-ons.

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    Daily Brief Consumer: United Malt Group Ltd, BYD , Tuhu Car, Taste Gourmet, Dollar Tree Inc, Burlington Stores, Ulta Beauty , Gap Inc/The, Brown Forman Corp Class B and more

    By | Consumer, Daily Briefs

    In today’s briefing:

    • United Malt: Shareholder Vote On 12th Oct
    • Quiddity Mainland Connect NORTHBOUND Flows (Week to 8Sep23) : BYD, ZTE, Zhongji Innolight, Amperex
    • TUHU Car IPO: The Investment Case
    • Taste Gourmet: Reaching an Inflection Point on Earnings Solid H1 FY24 Expected
    • Dollar Tree Inc.: Revolutionizing The Retail Landscape With Multi-Price Models! – Major Drivers
    • Burlington Stores: Expanding Its Footprint Through The Acquisition of Former Bed Bath & Beyond Leases! – Major Drivers
    • Ulta Beauty Inc.: The Powerhouses Behind Their Double-Digit Comp Growth! – Major Drivers
    • The Gap Inc.: A Bold Strategy To Strengthen Their Balance Sheet! – Major Drivers
    • Brown-Forman Corporation: The New Distribution Business in Slovakia Could Be A Decent Revenue Contributor? – Major Drivers


    United Malt: Shareholder Vote On 12th Oct

    By David Blennerhassett

    • Back on the 3 July, United Malt Group Ltd (UMG AU) and Malteries Soufflet entered into a binding agreement of A$5.00/share, by way of a Scheme. 
    • The Scheme Booklet has now been lodged with ASIC. UMG shareholders vote on the transaction on the 12 October, with implementation on the 15 November.
    • The Offer remains subject to FIRB and other regulatory approvals. Malteries Soufflet and UMG are the second and fourth-largest maltsters in the world.

    Quiddity Mainland Connect NORTHBOUND Flows (Week to 8Sep23) : BYD, ZTE, Zhongji Innolight, Amperex

    By Travis Lundy

    • This is the brand spanking new Quiddity Mainland Connect NORTHBOUND Monitor. We work off the same presentation as the A/H Premium Monitor and HK Connect SOUTHBOUND Monitor.
    • The data on liquid names is presented for 5 days and four weeks and anything seen can be ranked in tables or selected and charted (names, sectors, outperformance, etc).
    • We like the nifty interactive tables and charts. We welcome feedback on how to make it more useful going forward.

    TUHU Car IPO: The Investment Case

    By Arun George

    • Tuhu Car (2007986D HK), a leading integrated online and offline platform for automotive service in China, is set to open books for its US$300 million IPO.   
    • Among independent aftermarket (IAM) stores in China, Tuhu ranked first in terms of both number of stores as of 31 December 2022 and annual automotive service revenue in 2022.
    • The investment case rests on the return to growth, improving gross margin, a shift to profitability and a return to cash generation.

    Taste Gourmet: Reaching an Inflection Point on Earnings Solid H1 FY24 Expected

    By Sameer Taneja

    • With 46 restaurants in HK (up 35% YoY) and the end of dining restrictions, we estimate an inflection point in earnings for Q2 FY24 for Taste Gourmet (8371 HK) 
    • We estimate revenues/earnings up 45%/40% YoY for Q2 2024 ( to be reported in November) and that the company declares a semi-annual dividend of around 5.5-6 cents (8% annualized). 
    • With a solid base for H2 2024, the stock trades at 8.5x/5.9x PE FY23/24e and a 10% FY24e dividend yield with 23% of the market cap in cash.

    Dollar Tree Inc.: Revolutionizing The Retail Landscape With Multi-Price Models! – Major Drivers

    By Baptista Research

    • Dollar Tree delivered a solid result and managed an all-around beat in the last quarter.
    • For the quarter, Dollar Tree produced a combined increase in sales of 8.2% to $7.3 billion, 6.9% enterprise comp growth, and operating income of $287.8 million, resulting in earnings per share of $0.91.
    • In the Dollar Tree sector, with a slight offset from average ticket, their 7.8% comp was driven by 9.6% increased visitation.

    Burlington Stores: Expanding Its Footprint Through The Acquisition of Former Bed Bath & Beyond Leases! – Major Drivers

    By Baptista Research

    • Burlington Stores managed to exceed the revenue expectations and the earnings expectations of Wall Street.
    • Comparable store sales increased by 4%, while overall sales increased by 9%.
    • This was caused by a 130 basis point drop in freight costs and a 150 basis point increase in merchandise margin.

    Ulta Beauty Inc.: The Powerhouses Behind Their Double-Digit Comp Growth! – Major Drivers

    By Baptista Research

    • Ulta Beauty surpassed the revenue and earnings expectations of Wall Street.
    • For the quarter, all major categories produced comp growth.
    • The quarter saw double-digit growth in both prestige and mass skin care.

    The Gap Inc.: A Bold Strategy To Strengthen Their Balance Sheet! – Major Drivers

    By Baptista Research

    • The Gap, Inc. delivered a mixed result in the quarter, with revenues below expectations but surpassed the analyst consensus regarding earnings.
    • The company continued to enhance its cash flows and strengthen its balance sheet by reducing inventory by 29% year over year, generating over $300 million in free cash flow.
    • Second quarter sales were down in the mid- to high single digits, with net sales of $3.5 billion, down 8% from last year.

    Brown-Forman Corporation: The New Distribution Business in Slovakia Could Be A Decent Revenue Contributor? – Major Drivers

    By Baptista Research

    • The company reported net sales growth climbed by 3%, with organic net sales growth up by 2%.
    • Jack Daniel’s Tennessee Whiskey, Jack Daniel’s Tennessee Apple, and El Jimador all had continued increases in the quarter, which fueled organic net sales growth.
    • Jack Daniel’s Tennessee Apple increased organic net sales by more than half.

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    Most Read: JMDC , Zhejiang Huayou Cobalt , Evolution Mining, Vinhomes , Softbank Group, United Malt Group Ltd, Youngpoong Paper Mfg, SK Square and more

    By | Daily Briefs, Most Read

    In today’s briefing:

    • Omron Partial Offer for JMDC (4483) – The Engagement Is On! This Is the Script, This Is the Timing
    • MVIS Global Rare Earth/​​​​​Strategic Metals Index Rebalance: One Add, Two Deletes & Big Turnover
    • MVIS Global Junior Gold Miners Index Rebalance: One Add, One Delete, Float, Capping = Big Impact
    • Weekly Deals Digest (10 Sep) – JMDC, Intage, Mason, Liontown, Newcrest, ARM, Integral, Doosan, VNG
    • MarketVector Vietnam Local Index Rebalance: Some Big Impact Changes
    • ECM Weekly (10th Sep 2023) – ARM, VNG, Tuhu, Integral, Doosan, Orora, JFE, RR Kabel, Samhi Hotel
    • United Malt: Shareholder Vote On 12th Oct
    • KOSPI Size Indices – Changes in September & Implications
    • KRX Sector Index Series Rebalancing: Heavy Shorting on SK Square Is Anticipated
    • Quiddity HK Connect SOUTHBOUND Flows (Week to 8Sep23) Banks, Brokers, Telcos, Energy, and Vanke


    Omron Partial Offer for JMDC (4483) – The Engagement Is On! This Is the Script, This Is the Timing

    By Travis Lundy

    • In February 2022, Noritsu Koki (7744 JP) sold a chunk of JMDC (4483 JP) to Omron Corp (6645 JP) for nearly US$1bn. 7mos later, Omron supported a primary offering.
    • Now Omron is going to 50+%, as Noritsu Koki is getting out. Other investors have to participate for this to succeed. 
    • The question of pro-ration may be a question of Elmer vs Mr Partridge. But Elmer has a point here. 

    MVIS Global Rare Earth/​​​​​Strategic Metals Index Rebalance: One Add, Two Deletes & Big Turnover

    By Brian Freitas

    • There is one add and two deletes for the MVIS Global Rare Earth/Strategic Metals Index at the September rebalance. Plus there are free float and capping changes.
    • One way turnover is estimated at 11.1% and will result in a one-way trade of US$58m. There are a few stocks with over 0.5 days of ADV to trade.
    • The inclusion of Sociedad Quimica y Minera de Chile (SQM US) and deletion of Zhejiang Huayou Cobalt (603799 CH) are surprises.

    MVIS Global Junior Gold Miners Index Rebalance: One Add, One Delete, Float, Capping = Big Impact

    By Brian Freitas


    Weekly Deals Digest (10 Sep) – JMDC, Intage, Mason, Liontown, Newcrest, ARM, Integral, Doosan, VNG

    By Arun George


    MarketVector Vietnam Local Index Rebalance: Some Big Impact Changes

    By Brian Freitas

    • There are no constituent changes for the index but there are float and capping changes that will be implemented at the close on 15 September.
    • Estimated one-way turnover is 3.3% and the one-way trade is US$21.5m. There are eight stocks where passive trackers need to trade over 1 day of ADV.
    • After large creations for Market Vectors Vietnam ETF (VNM US) at the start of the year, there has not been a lot of follow-on activity as the market moves higher.

    ECM Weekly (10th Sep 2023) – ARM, VNG, Tuhu, Integral, Doosan, Orora, JFE, RR Kabel, Samhi Hotel

    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, things are getting busy again with multiple deals live across the region, whic his a refreshing change from the slow start in the first half.
    • There were only a few placement this week, but what the lacked in volume they made up for in size. 

    United Malt: Shareholder Vote On 12th Oct

    By David Blennerhassett

    • Back on the 3 July, United Malt Group Ltd (UMG AU) and Malteries Soufflet entered into a binding agreement of A$5.00/share, by way of a Scheme. 
    • The Scheme Booklet has now been lodged with ASIC. UMG shareholders vote on the transaction on the 12 October, with implementation on the 15 November.
    • The Offer remains subject to FIRB and other regulatory approvals. Malteries Soufflet and UMG are the second and fourth-largest maltsters in the world.

    KOSPI Size Indices – Changes in September & Implications

    By Brian Freitas

    • There are 8 migrations from MidCap to LargeCap, 7 LargeCap to MidCap, 8 new additions to MidCap, 17 SmallCap to MidCap, 23 MidCap to SmallCap, 5 new additions to SmallCap.
    • The migrations from SmallCap to MidCap have outperformed the stocks migrating between other segments by a huge margin over the last few months.
    • Given the huge outperformance and looking at how the migrations have performed historically, we’d expect the stocks migrating to MidCap to underperform post implementation of the changes.

    KRX Sector Index Series Rebalancing: Heavy Shorting on SK Square Is Anticipated

    By Sanghyun Park

    • The most noteworthy developments include Samsung Electronics being newly added to the Semicon sector, while SK Square has been removed.
    • We must be mindful of the potential concentration of shorting flow on SK Square as most names expected to experience negative flows do not fall under the KS200/KQ150 membership.
    • Our strategic approach can take three directions: 1. aim at only those receiving positive flows, 2. heavy shorting SK Square, and 3. long-short the four with the most flow size.

    Quiddity HK Connect SOUTHBOUND Flows (Week to 8Sep23) Banks, Brokers, Telcos, Energy, and Vanke

    By Travis Lundy

    • This is the brand spanking new Quiddity HK Connect SOUTHBOUND Monitor. We work off the same presentation as the A/H Premium Monitor and Mainland Connect NORTHBOUND Monitor.
    • The data on liquid names is presented for 5 days and four weeks and anything seen can be ranked in tables or selected and charted (names, sectors, outperformance, etc).
    • We like the nifty interactive tables and charts. We welcome feedback on how to make it more useful going forward.

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    Daily Brief Quantitative Analysis: TWSE Short Interest Weekly (Sep 8th): Realtek Semi and more

    By | Daily Briefs, Quantitative Analysis

    In today’s briefing:

    • TWSE Short Interest Weekly (Sep 8th): Realtek Semi, Faraday Tech, Auo, Asustek Computer, Mediatek


    TWSE Short Interest Weekly (Sep 8th): Realtek Semi, Faraday Tech, Auo, Asustek Computer, Mediatek

    By Ke Yan, CFA, FRM

    • We analyzed the changes in short interest of TWSE Stocks as of Sep 8th which has an aggregated short interest worth USD13.3bn.
    • 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 Realtek Semi, Faraday Tech, Auo, Asustek Computer, Mediatek, Lite-On Tech, Elite Material.

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    Daily Brief Thematic (Sector/Industry): GEMWeekly (8 Sep 2023): EM Asia Inflation and more

    By | Daily Briefs, Thematic (Sector/Industry)

    In today’s briefing:

    • GEMWeekly (8 Sep 2023): EM Asia Inflation, China Macro; Alibaba, Tencent, TSMC, MediaTek, SK Hynix


    GEMWeekly (8 Sep 2023): EM Asia Inflation, China Macro; Alibaba, Tencent, TSMC, MediaTek, SK Hynix

    By Wium Malan, CFA


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    Daily Brief ESG: After Selling the Property and more

    By | Daily Briefs, ESG

    In today’s briefing:

    • After Selling the Property, There Appears to Be No Set Plan for How the Cash Will Be Used


    After Selling the Property, There Appears to Be No Set Plan for How the Cash Will Be Used

    By Aki Matsumoto

    • The need to obtain investment capital for future business development or the presence of stakeholders with a strong desire to improve asset efficiency may be the catalyst for selling property.
    • Of course, cash should be used to return to shareholders, but the stock market expects more profit growth, so higher profit margins and ROE are required.
    • The data from Ministry of Finance indicates that cash still hasn’t been spent on investments. Cash appears to be currently being used reluctantly for investments that will generate future profits.

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    Daily Brief ECM: ECM Weekly (10th Sep 2023) – ARM and more

    By | Daily Briefs, ECM

    In today’s briefing:

    • ECM Weekly (10th Sep 2023) – ARM, VNG, Tuhu, Integral, Doosan, Orora, JFE, RR Kabel, Samhi Hotel


    ECM Weekly (10th Sep 2023) – ARM, VNG, Tuhu, Integral, Doosan, Orora, JFE, RR Kabel, Samhi Hotel

    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, things are getting busy again with multiple deals live across the region, whic his a refreshing change from the slow start in the first half.
    • There were only a few placement this week, but what the lacked in volume they made up for in size. 

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    Daily Brief Event-Driven: MVIS US Listed Semiconductor 25 Index Rebalance: Upweight for TSMC and more

    By | Daily Briefs, Event-Driven

    In today’s briefing:

    • MVIS US Listed Semiconductor 25 Index Rebalance: Upweight for TSMC
    • MVIS Australia A-REITs Index Rebalance: Abacus Group Deletion Means More Outflow
    • Progress of Merger Between Celltrion Inc and Celltrion Healthcare & Appraisal Rights Issue
    • Omron Partial Offer for JMDC (4483) – The Engagement Is On! This Is the Script, This Is the Timing
    • MVIS Global Junior Gold Miners Index Rebalance: One Add, One Delete, Float, Capping = Big Impact
    • MVIS Australia Equal Weight Index Rebalance: Float & Capping Changes
    • MVIS Global Rare Earth/​​​​​Strategic Metals Index Rebalance: One Add, Two Deletes & Big Turnover
    • MarketVector Vietnam Local Index Rebalance: Some Big Impact Changes
    • Index Rebalance & ETF Flow Recap: NKY, ASX, CSI300, KOSDAQ150, Yuanta ETFs, MVA, MVW, SMH
    • Newcrest Mining (NCM AU): Scheme Meeting on 13 October


    MVIS US Listed Semiconductor 25 Index Rebalance: Upweight for TSMC

    By Brian Freitas

    • The upcoming rebalance of the MVIS US Listed Semiconductor 25 Index will be implemented on 15 September. There are no constituent changes, but there are float and capping changes.
    • The VanEck Vectors Semiconductor (SMH US) ETF tracks the index and has an AUM of US$9.7bn.
    • Estimated one-way turnover is 5.9% resulting in a one-way trade of US$595m. The stocks are extremely liquid, the impact on the stock in terms of ADV to trade is small.

    MVIS Australia A-REITs Index Rebalance: Abacus Group Deletion Means More Outflow

    By Brian Freitas

    • As expected, Abacus Group (ABG AU) will be deleted from the MVIS Australia A-REIT Index at the close on 15 September.
    • Abacus Group (ABG AU) will also be deleted from the S&P/ASX 200 (AS51 INDEX) on the same day, so this increases the sell flow on the stock.
    • Estimated one-way turnover at the rebalance is 3.8% resulting in a one-way trade of A$23.8m. There are a few stocks with over 1x ADV to trade from passive trackers.

    Progress of Merger Between Celltrion Inc and Celltrion Healthcare & Appraisal Rights Issue

    By Douglas Kim

    • The appraisal right prices of Celltrion Inc (068270 KS) is 150,813 won (2.2% higher than current price) and Celltrion Healthcare (091990 KS) is 67,251 won (1.9% higher than current price).
    • Celltrion Inc has mentioned that the merger could be cancelled if the total amount of appraisal share purchase amount exceeds 1 trillion won. 
    • Although some investors are likely to exercise their appraisal rights in this merger, we would attach a higher probability of this merger getting completed (80-90%+). 

    Omron Partial Offer for JMDC (4483) – The Engagement Is On! This Is the Script, This Is the Timing

    By Travis Lundy

    • In February 2022, Noritsu Koki (7744 JP) sold a chunk of JMDC (4483 JP) to Omron Corp (6645 JP) for nearly US$1bn. 7mos later, Omron supported a primary offering.
    • Now Omron is going to 50+%, as Noritsu Koki is getting out. Other investors have to participate for this to succeed. 
    • The question of pro-ration may be a question of Elmer vs Mr Partridge. But Elmer has a point here. 

    MVIS Global Junior Gold Miners Index Rebalance: One Add, One Delete, Float, Capping = Big Impact

    By Brian Freitas


    MVIS Australia Equal Weight Index Rebalance: Float & Capping Changes

    By Brian Freitas

    • There are no constituent changes for the MVIS Australia Equal Weight Index at the September rebalance. JB Hi-Fi Ltd (JBH AU) and Charter Hall (CHC AU) have avoided deletion.
    • Float and capping changes will result in a one-way turnover of 3.5% and in a one-way trade of A$69m.
    • There is a lot of short interest on stocks that will have passive buy/sell flows, but there will not be enough volume traded for shorts to use to reduce positions.

    MVIS Global Rare Earth/​​​​​Strategic Metals Index Rebalance: One Add, Two Deletes & Big Turnover

    By Brian Freitas

    • There is one add and two deletes for the MVIS Global Rare Earth/Strategic Metals Index at the September rebalance. Plus there are free float and capping changes.
    • One way turnover is estimated at 11.1% and will result in a one-way trade of US$58m. There are a few stocks with over 0.5 days of ADV to trade.
    • The inclusion of Sociedad Quimica y Minera de Chile (SQM US) and deletion of Zhejiang Huayou Cobalt (603799 CH) are surprises.

    MarketVector Vietnam Local Index Rebalance: Some Big Impact Changes

    By Brian Freitas

    • There are no constituent changes for the index but there are float and capping changes that will be implemented at the close on 15 September.
    • Estimated one-way turnover is 3.3% and the one-way trade is US$21.5m. There are eight stocks where passive trackers need to trade over 1 day of ADV.
    • After large creations for Market Vectors Vietnam ETF (VNM US) at the start of the year, there has not been a lot of follow-on activity as the market moves higher.

    Index Rebalance & ETF Flow Recap: NKY, ASX, CSI300, KOSDAQ150, Yuanta ETFs, MVA, MVW, SMH

    By Brian Freitas

    • The changes at the Nikkei 225 September rebalance were announced on 4 September. The rebalance of the HSI, HSCEI, HSTECH and HSCI was implemented on the same day.
    • The changes to the MVIS indices were announced on 8 September and will be implemented at the close on 15 September. The S&P/ASX family will also rebalance on 15 September.
    • After a month and a half of big inflows to onshore China ETFs, there were small outflows from a lot of ETFs during the week.

    Newcrest Mining (NCM AU): Scheme Meeting on 13 October

    By Arun George

    • Newcrest Mining (NCM AU)‘s IE considers Newmont Mining (NEM US)’s offer of 0.400 Newmont shares per Newcrest share + special dividend + FY2023 dividend to be reasonable but not fair.
    • The IE valued Newcrest at US$18.64-21.13 per share vs. the transaction value of US$17.10-18.70 per share. The sharp sector de-rating, including Newmont’s shares, has impacted the scrip-heavy offer.
    • The offer remains attractive compared to peer multiples, historical prices and VWAP exchange ratios. At the last close prices and for the 6 November payment, the gross/annualised spread is 1.2%/7.8%. 

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