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Smartkarma Daily Briefs

Oct 13
0

Daily Brief ESG: Eletrobras – ESG Report – Lucror Analytics and more

By | Daily Briefs, ESG

In today’s briefing:

  • Eletrobras – ESG Report – Lucror Analytics

Eletrobras – ESG Report – Lucror Analytics

By Charles Macgregor

Lucror Analytics’ ESG Scores are based on a 3-tiered scale and are adjusted for Controversies (if applicable).
We assess Eletrobras’ ESG as “Strong”, in line with the Environmental pillar, while its Social and Governance scores are “Adequate”. Controversies are “Immaterial” and Disclosure is “Adequate”.

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Oct 13
0

Daily Brief Quantitative Analysis: ASX Short Interest Weekly (Oct 6th): BHP and more

By | Daily Briefs, Quantitative Analysis

In today’s briefing:

  • ASX Short Interest Weekly (Oct 6th): BHP, Liontown, ANZ, Suncorp, Domino’S Pizza E, Metcash

ASX Short Interest Weekly (Oct 6th): BHP, Liontown, ANZ, Suncorp, Domino’S Pizza E, Metcash

By Ke Yan, CFA, FRM

  • We analyzed the changes in short interest of ASX Stocks as of Oct 6th (reported today) which has an aggregated short interest worth USD16.3bn.
  • 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 BHP, Liontown, ANZ, Suncorp, Domino’S Pizza E, Metcash.

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Oct 13
0

Daily Brief Private Markets: SME Lender Funding Societies Nets US$27M Debt Funding and more

By | Daily Briefs, Private Markets

In today’s briefing:

  • SME Lender Funding Societies Nets US$27M Debt Funding
  • Impact Investor LeapFrog Investments Joins Bolttech Captable with a US$50M Investment

SME Lender Funding Societies Nets US$27M Debt Funding

By e27

  • Southeast Asian SME digital finance platform Funding Societies (known as Modalku in Indonesia) has secured US$27 million in debt funding led by AlteriQ Global. 
  • Aument Capital Partners (ACP) and Orange Bloom also invested.
  • The funds will be channelled via the fintech startup’s tailored financing solutions to support the underserved SME segments in its five markets.

Impact Investor LeapFrog Investments Joins Bolttech Captable with a US$50M Investment

By e27

  • Singapore-based insurtech company bolttech has raised US$50 million from impact investor LeapFrog Investments, bringing its total Series B round to US$246 million.
  • bolttech will use the new capital to grow in emerging markets and expand its technology-enabled ecosystem for protection and insurance for emerging consumers.
  • LeapFrog’s track record with tech-enabled insurance businesses in Africa and Asia will help bolttech to target its products to these growing markets.

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Oct 13
0

Daily Brief Thematic (Sector/Industry): Are Semiconductors Finally Recovering? and more

By | Daily Briefs, Thematic (Sector/Industry)

In today’s briefing:

  • Are Semiconductors Finally Recovering?
  • Ohayo Japan | US Consumer Prices Surprise Again; Toyota’s Lunar Cruiser Showcases Innovation
  • China Property Developers In Distress – Weekly News & Announcements Tracker | 6-12 October 2023
  • China TMT Update-Oct.13-KE/FUTU/BABA- Beike Acquires “iKongjian”/Futu Japan MAU/Lazada Waived Fees

Are Semiconductors Finally Recovering?

By Jim Handy

  • There are signs of a recovery in the chip sector
  • Memory spot prices are up, and revenues have risen for six consecutive months
  • Growth is higher than average, indicating the start of another super-cycle

Ohayo Japan | US Consumer Prices Surprise Again; Toyota’s Lunar Cruiser Showcases Innovation

By Mark Chadwick

  • Overseas: SPX -0.6% , Nasdaq -0.4%; Concerns again as bond yields rise on higher than expected consumer inflation
  • Today: NKY Futs v cash -0.7%, JPY149.8/$; Surprisingly strong outlook at Uniqlo; Toyota to work with Idemitsu on Solid State Batteries
  • JapanX: Toyota’s partnership with JAXA holds potential benefits for terrestrial challenges.

China Property Developers In Distress – Weekly News & Announcements Tracker | 6-12 October 2023

By Robert Ciemniak

  • A weekly curated selection of Chinese news articles and company announcements focused on developers in distress
  • We look for their deals, updates, specific project progress news (‘local signals’), as well as relevant local research commentaries about the market
  • We do not verify the underlying data or provide any opinion, we only select and summarize the information; See direct links to sources

China TMT Update-Oct.13-KE/FUTU/BABA- Beike Acquires “iKongjian”/Futu Japan MAU/Lazada Waived Fees

By Shawn Yang

  • KE Holdings Inc: Beike is going to acquire the home renovation company “iKongjian” on RMB1.55bn
  • Futu Holdings: Futu Japan app’s MAU increase rapidly, then monetization pace is the key
  • BABA： Alibaba’s Lazada waived seller fees to take back merchants from TikTok Shop（+）

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Oct 13
0

Daily Brief ECM: Ecopro Materials: Reduces IPO Price Range and more

By | Daily Briefs, ECM

In today’s briefing:

  • Ecopro Materials: Reduces IPO Price Range
  • EcoPro Materials IPO: The Bear Case
  • Ingenia Communities Placement – Largest Shareholder Selling Isn’t Particularly Well Flagged

Ecopro Materials: Reduces IPO Price Range

By Douglas Kim

  • Ecopro Materials reduced the upper end of the IPO price range from 46,000 won to 44,000 won.
  • The bankers reduced the IPO discount, EV/EBITDA valuation multiple, and outstanding shares. 
  • We maintain our Bearish view of the Ecopro Materials IPO. Our base case valuation of 37,436 won per share is towards to lower end of the IPO price range. 

EcoPro Materials IPO: The Bear Case

By Arun George

  • EcoPro Materials (ECO123 KS) is a leading player in the electrode material industry. It is seeking to raise up to US$477 million in a KRX IPO.
  • In EcoPro Materials IPO: The Bull Case, we highlighted the key elements of the bull case. In this note, we outline the bear case.
  • The bear case rests on weakening sector market sentiment, margin pressure likely to persist, cash burn, elevated leverage and high related-party transactions.

Ingenia Communities Placement – Largest Shareholder Selling Isn’t Particularly Well Flagged

By Clarence Chu

  • Sun Communities (SUI US) is looking to raise A$165m (US$106m) via selling its entire stake in Ingenia Communities (INA AU).
  • With the investor selling down its entire stake, the deal will be a large one for the firm to digest, with shares representing 32.9 days of three month ADV.
  • While short covering could potentially provide some support for share price post-deal, the selldown here doesn’t seem particularly well flagged.

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Oct 13
0

Daily Brief Event-Driven: WisdomTree Emerging Markets SmallCap Dividend Index Rebalance: 45% Turnover & US$2.5bn to Trade and more

By | Daily Briefs, Event-Driven

In today’s briefing:

  • WisdomTree Emerging Markets SmallCap Dividend Index Rebalance: 45% Turnover & US$2.5bn to Trade
  • Shinko Electric (6967) – Waiting for a Package
  • WisdomTree Emerging Markets High Dividend Index Rebalance: Huge Turnover & Trade Next Week
  • Fast Retailing (9983) Beats Guidance, Stronger Forecasts, STILL Has a Nikkei 225 Problem
  • NWS Holding (659 HK): Offer Opens with NWD Vote on 2 November
  • Korea Finally Offers Reliable Data Channel on Companies with Improved Dividend Procedures
  • Zomato Lock-Up – A US$240m+ Softbank Linked Lockup Release
  • WisdomTree Emerging Markets Ex-State-Owned Enterprises Index Rebalance: 16% Turnover, US$660m Trade
  • Estia & Bain: 15th Nov Shareholder Vote
  • Quiddity Leaderboard CSI 300/​​500 Dec 23: Basket Trade Off to A Positive Start; US$2.8bn One-Way

WisdomTree Emerging Markets SmallCap Dividend Index Rebalance: 45% Turnover & US$2.5bn to Trade

By Brian Freitas

  • The WisdomTree Emerging Markets SmallCap Dividend Index is a fundamentally weighted index that measures the performance of small cap stocks within Emerging Markets.
  • The October rebalance will result in a one-way turnover of ~45% and in a one-way trade of US$1.24bn. There are ~300 stocks with over 1 day of ADV to trade.
  • With only 4 trading days to implementation, there could be large moves on stocks with large flows and impact over the next few days.

Shinko Electric (6967) – Waiting for a Package

By Travis Lundy

  • Shinko Electric Industries (6967 JP) has been on the block. 2nd Round Bids were apparently due last month, but with “Economic Security” considerations, one wonders if that stretches a bit.
  • The stock is now at the low end of its range vs Ibiden, and the timing is right for a deal which could give it a pop. 
  • A “split price” takeover seems reasonable as a structure. I expect upside. Still. 

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). 

Fast Retailing (9983) Beats Guidance, Stronger Forecasts, STILL Has a Nikkei 225 Problem

By Travis Lundy

  • Fast Retailing (9983 JP) today announced better than guided results, and 10% revenue growth, 18% OP growth to August 2024. NP is light, but still well higher than street consensus.
  • At 10.37% Nikkei 225 weight, it is still above the target for 31 July 2024. If it does not underperform Nikkei 225 between now and then, US$2bn to sell end-Sep24.
  • If people like the growthiness, that can be absorbed. But if the stock were to go up 10% vs Nikkei, there’d be US$2bn, then maybe another US$2bn to sell. 

NWS Holding (659 HK): Offer Opens with NWD Vote on 2 November

By Arun George

  • Nws Holdings (659 HK)’s IFA opines that the conditional voluntary general offer from the Cheng family is fair and reasonable. The offer + 2H dividend is HK$9.46 per share.
  • The key condition is (majority vote) approval by independent NWD shareholders (EGM on 2 November). The timetable is designed such that the shareholders will also receive the NWS final dividend.
  • NWD has a high but declining AGM minority participation rate. Retail forums suggest support for the transaction. On balance, we believe that this deal gets up. 

Korea Finally Offers Reliable Data Channel on Companies with Improved Dividend Procedures

By Sanghyun Park

  • The Obligatory Corporate Governance Report Disclosure System will stand as the only source for furnishing trustworthy data on the proportion of listed companies that have genuinely adopted enhanced dividend procedures.
  • From a dividend strategy perspective, the companies of primary interest for strategic trading are predominantly those falling under the scope of this disclosure obligation.
  • Next year, it’s anticipated that with dependable data, we will have the means to craft dividend strategies aimed at this specific group.

Zomato Lock-Up – A US$240m+ Softbank Linked Lockup Release

By Sumeet Singh

  • In Aug 2022, Zomato (ZOMATO IN) completed the acquisition of 91% of Blinkit’s outstanding shares via issuing its own shares. These shares were released from their lockup in Aug 2023.
  • Softbank then sold a part of its stake in Aug 2023, the rest of its stake will come out of lockup soon.
  • In this note, we will talk about the lock-up dynamics and recent updates.

WisdomTree Emerging Markets Ex-State-Owned Enterprises Index Rebalance: 16% Turnover, US$660m Trade

By Brian Freitas

  • The WisdomTree Emerging Markets ex-State-Owned Enterprises Index measures the performance of emerging markets stocks that are not state-owned enterprises.
  • The October rebalance will result in a one-way turnover of ~16% and in a one-way trade of US$329m. There are 16 stocks with over US$3m to trade.
  • HDFC Bank (HDFCB IN) will be added to the index while there will be selling in Taiwan Semiconductor (TSMC) (2330 TT).

Estia & Bain: 15th Nov Shareholder Vote

By David Blennerhassett

  • On the 7 August, aged care provider Estia Health (EHE AU) and Bain Capital entered into a Scheme Implementation Agreement at A$3.20/share (less any dividends), a 50% premium to undisturbed
  • The Scheme Booklet is now out. A shareholder meeting will be held on the 15th of November with implementation expected on the 30th of November. 
  • Estia paid a fully franked dividend of A$0.12/share on the 15th of September. Currently trading  tight to the adjusted terms of A$3.08/share. This still needs FIRB approval.

Quiddity Leaderboard CSI 300/​​500 Dec 23: Basket Trade Off to A Positive Start; US$2.8bn One-Way

By Janaghan Jeyakumar, CFA

  • CSI 300 represents the 300 largest stocks by market capitalization and liquidity from the entire universe of Shanghai and Shenzhen Stock Exchanges. CSI 500 represents the next largest 500 names.
  • In this insight, we take a look at the potential ADDs/DELs for the CSI 300 and CSI 500 rebalance in December 2023.
  • A couple of baskets I suggested in my last insight have both outperformed the CSI 300 index by more than 2% in less than a month.

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Oct 13
0

Daily Brief Credit: Morning Views Asia: Adani Ports & Special Economic Zone and more

By | Credit, Daily Briefs

In today’s briefing:

  • Morning Views Asia: Adani Ports & Special Economic Zone, Shui On Land, Yuexiu Property

Morning Views Asia: Adani Ports & Special Economic Zone, Shui On Land, Yuexiu Property

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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Oct 13
0

Daily Brief Equity Bottom-Up: Huijin’s Increase in Shareholdings of the Big4 May Signal Temporary Bottoming of the Stocks and more

By | Daily Briefs, Equity Bottom-Up

In today’s briefing:

  • Huijin’s Increase in Shareholdings of the Big4 May Signal Temporary Bottoming of the Stocks
  • Who Is Lina Khan? Why Should Investors Bother?
  • Tesla Cuts Prices of Top Models After Deliveries Fall
  • High Conviction Shift: Another Upbeat Quarter; Wipes Off Concerns Over an Earnings Slowdown
  • GoTo Gojek Tokopedia (GOTO IJ) – Building Positive Resonance with New Initiatives
  • Low Cost Apparel Sales Keep Rising: Shimamura Aims for ¥800 Billion
  • Saizeriya (7581 JP):  Japanese Company + Fast Casual Italian Food = China Growth Story?
  • Suzuken Co Ltd (9987 JP): Better-Than-Expected Q1FY24 Result; Full Year Guidance Reiterated
  • Plug Power Inc.: Unveiling Powerful Partnerships Yielding Extraordinary Results! – Major Drivers
  • RingCentral Inc: How $330 Million ARR is Changing the UCaaS + CCaaS Game! – Major Drivers

Huijin’s Increase in Shareholdings of the Big4 May Signal Temporary Bottoming of the Stocks

By Fern Wang

  • Central Huijin, the sovereign wealth fund, increased their shareholding of the Big 4 banks in China on 11 October 2023
  • Contrary to their last similar action, Huijin will increase its stakes in these banks over the next 6 months period, providing stabilizing force of the stock prices 
  • Worries on property sector, LGFV and the overall health of the economy have significantly depressed banking stocks. 

Who Is Lina Khan? Why Should Investors Bother?

By Srinidhi Raghavendra

  • If you’re an investor in any firm with some form of dominance in US markets, then you need to know who Ms Lina Khan is.
  • Corporate misbehavior is a topic of her interest. She shows zero tolerance towards large corporations who wield outsized market power.
  • FTC along with 17 US states filed a lawsuit against Amazon for illegally maintaining monopoly power. How will Amazon be impacted?

Tesla Cuts Prices of Top Models After Deliveries Fall

By Caixin Global

  • Tesla Inc. will have to sell a record number of cars in the fourth quarter to reach its goal for the year after third-quarter deliveries declined.
  • The electric-car maker produced 430,488 vehicles in the third quarter, down 10% from the second, and delivered 435,059 units, down 6.7%, Tesla said Monday.
  • The drop in deliveries resulted from production stoppages at its factory in Fremont, California. Tesla CEO Elon Musk said in July that production facilities would be closed at various times in the third quarter to perform plant upgrades.

High Conviction Shift: Another Upbeat Quarter; Wipes Off Concerns Over an Earnings Slowdown

By Shifara Samsudeen, ACMA, CGMA

  • Shift Inc (3697 JP) reported 4Q and full-year FY08/2023 results today. 4Q revenue increased 38.2% YoY while OP more than doubled during the quarter. Both revenue and OP beat consensus estimates.
  • Full-Year revenues and OP increased 35.7% and 67.4% respectively beating consensus estimates by 1.2% and 67.4% respectively. Both revenue and OP were above the company’s own guidance.
  • Shift’s share price has dropped by about 17% since August as market became concerned over the growth prospects, however, share price has started to move up.

GoTo Gojek Tokopedia (GOTO IJ) – Building Positive Resonance with New Initiatives

By Angus Mackintosh

  • GoTo Gojek Tokopedia may see a stabilisation of the declines in GTV that it has experienced over the last 2Qs, with some of the platform’s new initiatives gaining traction.
  • The closure of TikTok Shop should be positive at the margin for Tokopedia but it has also rolled back its platform fee, which has had a positive impact on growth.
  • New initiatives include GoRide Transit, GoCorp, GoTo PLUS, and the GoPay app, with the latter seeing strong take-up. 3Q2023 results should reveal more details on initiatives. All-time low seems unjustified.

Low Cost Apparel Sales Keep Rising: Shimamura Aims for ¥800 Billion

By Michael Causton

  • Price consciousness remains high among most Japanese consumers at present, a boost to low-cost apparel retailers.
  • Shimamura, which has posted three straight years of growth But when price is the main driver, competition from the likes of Shein and Temu becomes a growing problem.
  • So even Shimamura is trying to add value through branding, collaborations and Shein-like supply chains and the outlook is promising, suggesting significant upward gains for the stock.

Saizeriya (7581 JP):  Japanese Company + Fast Casual Italian Food = China Growth Story?

By Steve Zhou, CFA

  • Saizeriya (7581 JP) is a Japanese restaurant chain of fast casual Italian food, with currently the majority of operating profit and growth coming from China. 
  • The Asia segment, which is primarily restaurants in China, nearly doubled operating profit in FY23 (year ending August) from pre-COVID FY19.
  • The company is trading at 27x FY24E PE, with more than 80% expected growth in operating profit in FY24. 

Suzuken Co Ltd (9987 JP): Better-Than-Expected Q1FY24 Result; Full Year Guidance Reiterated

By Tina Banerjee

  • Suzuken Co Ltd (9987 JP) reported better-than-expected Q1FY24 result, due to an increase in specialty drug distribution contracts and a larger than expected contribution from products related to COVID-19.
  • In Q1FY24, revenue increased 4% to ¥573.6B, driven by 4% YoY growth in pharmaceutical distribution business, due to increased sales of new drugs such as specialty drugs and COVID-19 therapeutics.
  • The company guided for FY24 revenue of ¥2,231.9B, down 4% YoY. Operating profit is expected to decline 48% YoY to ¥17B. Net profit is guided at ¥13B, down 36% YoY.

Plug Power Inc.: Unveiling Powerful Partnerships Yielding Extraordinary Results! – Major Drivers

By Baptista Research

  • Plug Power Inc. delivered a mixed set of results for the quarter, with revenues above the analyst consensus.
  • Plug’s second quarter results show significant growth in a number of its recently introduced goods, especially in its cryogenic industry, which generated $69 million in revenue in the quarter, more than a threefold increase over the same period last year.
  • In this report, we have carried out a fundamental analysis of the historical financial statements of the company.

RingCentral Inc: How $330 Million ARR is Changing the UCaaS + CCaaS Game! – Major Drivers

By Baptista Research

  • RingCentral Inc. managed to surpass the revenue expectations as well as the earnings expectations of Wall Street.
  • The profit increase also resulted in another quarter of significant free cash flow.
  • Revenue from subscriptions increased 11% year over year to $514 million.

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Oct 13
0

Daily Brief Macro: Major Revisions of the Corporate Governance Report Guidelines in Korea: To Reduce “Korea Discount” and more

By | Daily Briefs, Macro

In today’s briefing:

  • Major Revisions of the Corporate Governance Report Guidelines in Korea: To Reduce “Korea Discount”
  • China’s Real Estate Market Gets Some Relief in September on Policy Changes
  • CPI Reaction Watch: Cementing a hike in November/December?
  • UK Data Changes Yet Stay The Same
  • CX Daily: Exclusive Interview: Lou Jiwei on Tackling a Greying China
  • OPEC & EIA nugget: A day of reckoning ahead for Oil

Major Revisions of the Corporate Governance Report Guidelines in Korea: To Reduce “Korea Discount”

By Douglas Kim

  • On 12 October, the Financial Services Commission (FSC) announced major Revisions of the Corporate Governance Report Guidelines, including improvement of dividend procedures and revisions of governance principles.
  • The major revisions of the Corporate Governance Report Guidelines in Korea should be catalysts for reducing “Korea Discount.”
  • These new Corporate Governance Report will recommend the KOSPI listed companies with assets of more than 500 billion won to comply with the new guidelines effective 2024.

China’s Real Estate Market Gets Some Relief in September on Policy Changes

By Caixin Global

  • Real estate sales in China increased in September from the previous month following efforts by some of the country’s biggest cities to spur homebuying.
  • Last month, new property sales by China’s 100 largest developers grew 17.9% from August to 404.3 billion yuan ($55.4 billion), following two straight month-on-month declines, according to data provided Saturday by consultancy China Real Estate Information Corp. (CRIC). 
  • More than 60% of the developers reported month-on-month sales increases in September, with 29 registering jumps of more than 30%, the data showed.

CPI Reaction Watch: Cementing a hike in November/December?

By Andreas Steno

  • September’s CPI numbers just dropped with a small surprise in the headline, coming in at 0.4% vs 0.3% expected (3.7% YoY vs 3.6% expected), while core is in line with analysts’ median forecast.
  • Headline rates stay on their disinflationary paths, and YoY rates are not accelerating due to base effects.
  • Energy and shelter – the 2 nightmares throughout 21/22 – are taking the headlines again, with shelter re-accelerating and energy inflation staying at levels too far from target despite sluggish demand signals coming from the EIA.

UK Data Changes Yet Stay The Same

By Phil Rush

  • Benchmark UK GDP revisions raised the level without changing trends, fiscal space, or public sector performance. Our Q3 GDP forecast rounds down to -0.1% q-o-q.
  • UK GDP data remain resilient relative to recent labour market data, while the EA is nearer the opposite. Residual seasonality appears to have corrupted both narratives.
  • The artificial depression in surveys and UK employment is at its seasonal worst. A reversal still underpins our contrarian hawkish November BoE call and Euro optimism.

CX Daily: Exclusive Interview: Lou Jiwei on Tackling a Greying China

By Caixin Global

  • Lou Jiwei /: Exclusive Interview: Lou Jiwei on tackling a greying China
  • Corruption /: Trending in China: ‘Lenient’ punishment of corrupt retired official sparks anger
  • XPeng /: XPeng suspends supply chain chief in internal graft crackdown

OPEC & EIA nugget: A day of reckoning ahead for Oil

By Andreas Steno

  • The weekly EIA data is out at 11.00 am ET after last week’s data sparked a massive sell-off in oil markets.
  • The implied Gasoline demand dropped 12-13% also in seasonally adjusted terms after a cocktail of decreased production and increased inventories of retail gasoline.
  • The actual road congestion is up >5% since the early parts of October, meaning that demand is likely up (at least) as much before considering the technicalities of the EIA report that could have led to a flawed low number.

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Oct 13
0

Daily Brief Energy/Materials: EcoPro Materials, Pan American Silver, Westrock Co and more

By | Daily Briefs, Energy & Materials Sector

In today’s briefing:

  • Ecopro Materials: Reduces IPO Price Range
  • EcoPro Materials IPO: The Bear Case
  • Pan American Silver – La Colorada to restart after suspension
  • WestRock Company: Leveraging Scale and Relationships For A Strong Performance Despite Market Challenges! – Major Drivers

Ecopro Materials: Reduces IPO Price Range

By Douglas Kim

  • Ecopro Materials reduced the upper end of the IPO price range from 46,000 won to 44,000 won.
  • The bankers reduced the IPO discount, EV/EBITDA valuation multiple, and outstanding shares. 
  • We maintain our Bearish view of the Ecopro Materials IPO. Our base case valuation of 37,436 won per share is towards to lower end of the IPO price range. 

EcoPro Materials IPO: The Bear Case

By Arun George

  • EcoPro Materials (ECO123 KS) is a leading player in the electrode material industry. It is seeking to raise up to US$477 million in a KRX IPO.
  • In EcoPro Materials IPO: The Bull Case, we highlighted the key elements of the bull case. In this note, we outline the bear case.
  • The bear case rests on weakening sector market sentiment, margin pressure likely to persist, cash burn, elevated leverage and high related-party transactions.

Pan American Silver – La Colorada to restart after suspension

By Edison Investment Research

Pan American Silver (PAAS) has announced that it will begin restarting operations at the La Colorada mine on 16 October. Operating activities at the project have temporarily been suspended since 5 October due to security concerns at the mine site following the concentrate robbery. The company does not expect any impact on the FY23 production and cost guidance from the suspension of production. We maintain our estimates and valuation.

WestRock Company: Leveraging Scale and Relationships For A Strong Performance Despite Market Challenges! – Major Drivers

By Baptista Research

  • WestRock Company delivered a mixed result in the recent quarter, with revenues below market expectations but surpassing the analyst consensus regarding earnings.
  • The company delivered outstanding results this quarter, surpassing expectations through effective execution, increased productivity, and managed input costs.
  • Despite changing conditions in the global paper business, WestRock is leveraging its scale, diverse substrate portfolio, and strategic customer relationships.

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