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Smartkarma Daily Briefs

Feb 22
0

Daily Brief Equity Bottom-Up: Shortlist Of High Conviction Ideas: Income and more

By | Daily Briefs, Equity Bottom-Up

In today’s briefing:

  • Shortlist Of High Conviction Ideas: Income, Value, and Margin of Safety – February 2024
  • United Microelectronics Is Becoming a Great Long-Term Acquisition Target for Intel
  • Taiwan Tech Weekly: AI Plays Weak Ahead of Nvidia Results Today; Intel & UMC; ARM & Novatek
  • Singapore Airlines – Onset of Earnings Normalization to Heighten Focus on Efficiency
  • From Nvidia Results to See Supply Chain Stories?
  • ASEAN EV Ecosystem Update: Further Initiatives to Build a Regional EV Ecosystem
  • Monthly Container Shipping Tracker | LNY Timing, Red Sea Re-Routes Boosted Revenue | (February 2024)
  • R1 Rcm Inc (RCM) – Wednesday, Nov 22, 2023
  • ESG Brew with Lendlease REIT’s CEO: “I live more sustainably by taking public transport”
  • Asahi Kagaku Kogyo

Shortlist Of High Conviction Ideas: Income, Value, and Margin of Safety – February 2024

By Sameer Taneja

United Microelectronics Is Becoming a Great Long-Term Acquisition Target for Intel

By Vincent Fernando, CFA

  • UMC spoke at an investment bank’s recent conference, providing additional color on guidance and its collaboration with Intel for 12nm chip production.
  • UMC comments imply the key synergies between the two companies, whereby each can solve the other’s key problem,
  • While UMC most likely needs to remain a “Taiwanese company” in terms of optics given its history, Intel’s synergies with UMC establishes acquisition-value support for UMC shares in our view.

Taiwan Tech Weekly: AI Plays Weak Ahead of Nvidia Results Today; Intel & UMC; ARM & Novatek

By Vincent Fernando, CFA

  • Key Events: 1) Nvidia Results Coming Today in the U.S. 2) Elan & ChipMOS Tomorrow in Taiwan 3) U.S. PC Maker Results Next Week
  • Why United Microelectronics Is Becoming a Great Long-Term Acquisition Target for Intel 
  • Novatek a Top Gainer After Reports of Alliance with ARM to Build Neoverse V2 for AI

Singapore Airlines – Onset of Earnings Normalization to Heighten Focus on Efficiency

By Neil Glynn

  • We cut our SIA operating profit by 9% to S$2.6bn in FY24 and by 17% to S$1.5bn in FY25 versus consensus of S$2.1bn.
  • SIA’s cost control is under-examined and we publish a deep dive on a concerning level of inflation relative to key peers, which actually escalated in 3Q24.
  • Cargo broke even in peak season, and Scoot’s margins present a conundrum as it may need to be further utilization to help SIA with cost management.

From Nvidia Results to See Supply Chain Stories?

By Andrew Lu

  • Post 35% price gain in a quarter, many good news we expected and other analysts expected already factored into the share price. We believe the risk/reward not attractive here.
  • TSMC guides stronger 1Q24 and 2024, helped by Nvidia and copy cat AI GPU/ASIC orders. We see greater opportunities for alternative copy cat solutions like AMD and Alchip.
  • We attribute Nvidia customers’ sales discrepancy to AI server is cannibalizing non-AI server and Nvidia is allocating more GPUs to premium price paying customers in 1H24 and reverse in 2H24.

ASEAN EV Ecosystem Update: Further Initiatives to Build a Regional EV Ecosystem

By Shifara Samsudeen, ACMA, CGMA

  • EV supply chain is at a nascent stage in ASEAN and EV adoption in the region lags behind developed markets despite boasting a large population with a burgeoning middle class.
  • However, Governments in the region continue to introduce new initiatives and offer incentives to promote the sector, while companies continue to attract large investment to develop the EV market.
  • The four companies we looked at have reported earnings and we have discussed their latest results and our investment thesis.

Monthly Container Shipping Tracker | LNY Timing, Red Sea Re-Routes Boosted Revenue | (February 2024)

By Daniel Hellberg

  • January pricing momentum improved, helped by more operating days & re-routes
  • Throughput growth remained strong last month, including +18% into WC ports
  • Near term reality far rosier than downbeat view from industry giant Maersk

R1 Rcm Inc (RCM) – Wednesday, Nov 22, 2023

By Value Investors Club

Key points

  • Analysts believe R1 (RCM) presents a compelling investment opportunity despite recent challenges
  • Predictions suggest profitability improvements and potential doubling of stock value over the next few years
  • Long-term outlook remains strong due to industry-leading position and growth potential in healthcare IT sector

This content is sourced through publicly available sources and has been machine generated. Information displayed is for general informational purposes only. This article was originally published 3 months ago on Value Investors Club.

ESG Brew with Lendlease REIT’s CEO: “I live more sustainably by taking public transport”

By Geoff Howie

  • kopi-C with Lendlease REIT’s CEO The first Singapore REIT to reach net zero emissions, Lendlease Global Commercial REIT has its next target in sight: absolute zero by 2040.
  • When it comes to sustainability, Lendlease Global Commercial REIT is ahead of its peers.

Asahi Kagaku Kogyo

By Altay Capital

  • Asahi Kagaku Kogyo’s Facility in Kunshan, China Asahi Kagaku Kogyo (TYO 7928) is a $12m market cap net-net industrial plastics manufacturer that over the last 10 years mostly operates around breakeven.
  • The business itself isn’t interesting, but it’s a positive that they aren’t losing money.
  • There also isn’t a single writeup on this company or any mentions of it on X/Twitter, so it’s definitely under the radar.

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Feb 22
0

Daily Brief Macro: Indonesia’s Election – When the Music’s Over? and more

By | Daily Briefs, Macro

In today’s briefing:

  • Indonesia’s Election – When the Music’s Over?
  • 5 Things We Watch – Meeting Minutes, Cyclical Momentum, Natural Gas, Excess Retirements & China
  • Labour Nugget: Could the next move be a hike?
  • Indonesia Policy Rate 6.0% (consensus 6.0%) in Feb-24
  • Strong US and Weak Japanese Data Shifts Interest Rate Expectations – Implications for Stock Markets?

Indonesia’s Election – When the Music’s Over?

By Angus Mackintosh

  • Prabowo looks to have scored a resounding victory in Indonesia’s Presidential election, according to quick count results, with around 58% of the vote, which is positive from a visibility perspective.
  • Initial reaction suggests continuity from Jokowi’s legacy, with concerns centred around potentially nationalistic policies and increased government borrowing in the future, which may pressurise Indonesia’s budgetary position. 
  • We remain positive on the outlook for Indonesia, with increased government spending to fast-track Jokowi’s legacy projects. Prabowo also looks set on driving higher GDP growth next year.

5 Things We Watch – Meeting Minutes, Cyclical Momentum, Natural Gas, Excess Retirements & China

By Andreas Steno

  • The possibility of a comeback for both the manufacturing sector and inflationary pressures have reached the desks of macro enthusiasts, but markets have yet to fully acknowledge and factor in such possibilities, with initial bearish price action after both price releases being traded back within days, signaling that markets are still all about the direction of travel towards rate cuts.
  • Let’s dive right into this week’s 5 themes, and how to trade them!
  • This week we are watching out for the following 5 topics within global macro:
    • Meeting Minutes
    • Cyclical Momentum
    • Natural Gas
    • Excess Retirements
    • China

Labour Nugget: Could the next move be a hike?

By Andreas Steno

  • “The labor market remains tight, but supply and demand conditions continue to come into better balance,” We have heard Powell using this phrase continuously since last autumn and it has been a key ingredient in the dovish pivot in Q4.
  • But is the labour market truly coming into better balance, or is the post-pandemic equilibrium of higher wages and tighter labour market conditions of a more permanent character?
  • “Excess retirements” have grown sharply through 2023 again on improving wealth effects due to the rebound in equities, housing and crypto.

Indonesia Policy Rate 6.0% (consensus 6.0%) in Feb-24

By Heteronomics AI

  • Bank Indonesia’s decision to hold the BI-Rate at 6.00% balances persistent financial market uncertainties against strong domestic economic growth and the need for Rupiah stabilization.
  • Anticipated pressures from the global financial environment and domestic economic activities will dictate the future direction of interest rate policies, with a continued emphasis on ensuring Rupiah stability and controlling inflation within the set targets.
  • The central bank’s commitment to leveraging pro-market monetary tools and enhancing financial system digitalization underscores a forward-looking approach to monetary policy aimed at bolstering economic resilience and inclusion.
This content is sourced through publicly available sources and has been machine generated. Information displayed is for general informational purposes only.

Strong US and Weak Japanese Data Shifts Interest Rate Expectations – Implications for Stock Markets?

By Rikki Malik

  • Some recent US data has been stronger than expected especially on the inflation front.
  • Japanese domestic economy confirmed to be  in recession as we expected
  • Both markets remain buoyant – the question is for how long?

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Feb 22
0

Daily Brief Australia: Azure Minerals, CSR Ltd, Qantm Intellectual Property, Vection Technologies Ltd and more

By | Australia, Daily Briefs

In today’s briefing:

  • Azure Minerals (AZS AU): MinRes Selling Out Paves the Way for the Scheme
  • Azure (AZS AU): MinRes’ Discounted Exit
  • CSR Ltd (CSR AU): Saint-Gobain’s A$9/Share Offer
  • Azure Minerals Block – Removal of Overhang but Still a Risky Bet
  • CSR (CSR AU): Saint-Gobain’s Non-Binding Proposal at A$9.00
  • QANTM Intellectual Property Ltd – Strong H1 Reflects Organic Growth and Fiscal Discipline
  • Vection Technologies – Contract wins underpin strong start to H224
  • Strong H1 reflects organic growth and fiscal discipline

Azure Minerals (AZS AU): MinRes Selling Out Paves the Way for the Scheme

By Arun George

  • The AFR reports that JPMorgan is selling 14.5% of Azure Minerals (AZS AU) shares at A$3.42. The primary seller is said to be Mineral Resources (MIN AU), seeking to exit.
  • MinRes’ decision to sell out a discount rather than accept the scheme A$3.70 offer reflects the cost of securing a say on Andover and the opportunity cost of capital. 
  • The transaction booklet will be despatched in early March. At the last close and for an early May scheme payment, the gross/annualised spread is 2.5%/13.4%. 

Azure (AZS AU): MinRes’ Discounted Exit

By David Blennerhassett

  • JPMorgan is placing MinRes (MIN AU)‘s 14.5% stake in Azure Minerals (AZS AU) at A$3.42/share, a 5% discount to last close and a 7.6% discount to the A$3.70/share Scheme price. 
  • It was reported last month that MinRes, who paid up to ~A$4.00/share for some of its stake, was looking to exit. But cash now vs. ~8% more in two months?
  • Given the recent rout in lithium and nickel prices, one wonders if a MAC landmine lurks. Or, quite simply, MinRes just needs the cash. Expect Azure to fall tomorrow.

CSR Ltd (CSR AU): Saint-Gobain’s A$9/Share Offer

By Brian Freitas

  • Cie De Saint-Gobain (SGO FP) has approached CSR Ltd (CSR AU) with a non-binding indicative offer to acquire all of CSR’s shares at A$9/share via a scheme of arrangement.
  • At the last close of CSR (pre-trading halt) the gross spread to the offer price is 13.21%. That will close significantly once the stock resumes trading.
  • Given the large premium to the last close, at a price higher than the highest high, and support from the CSR Board, the deal should go through.

Azure Minerals Block – Removal of Overhang but Still a Risky Bet

By Ethan Aw

  • Mineral Resources (MIN AU) is looking to raise up to A$229m (US$150m) via a secondary block trade in Azure Minerals (AZS AU), which will be a clean-up. 
  • The deal is a large one to digest, at approximately 51.6 days of three month ADV and 13.8% of current mcap. 
  • In this note, we’ll run the deal through our ECM framework and comment on deal dynamics.

CSR (CSR AU): Saint-Gobain’s Non-Binding Proposal at A$9.00

By Arun George

  • In response to media speculation, Cie De Saint-Gobain (SGO FP) confirmed a non-binding proposal for CSR Ltd (CSR AU) at A$9.00, a 32.9% premium to the undisturbed price.
  • Saint-Gobain is conducting confirmatory due diligence. CSR is at a trading halt concerning receiving a proposal regarding a potential material transaction involving CSR.
  • Shareholders should be supportive as the offer represents a 15-year high. The timing of a binding agreement is the key risk.  

QANTM Intellectual Property Ltd – Strong H1 Reflects Organic Growth and Fiscal Discipline

By Research as a Service (RaaS)

  • QANTM Intellectual Property Ltd (ASX:QIP) owns a group of intellectual property (IP) services businesses operating under the independent brands of Davies Collison Cave (DCC), FPA Patent Attorneys and Sortify.tm.
  • It is a major player in the mature and regulated Australian patent, trade marks and IP legal services market with ~14.4% market share (H1 FY24) in its key patents segment (67% of service revenue) and a diversified mix of local and foreign clients.
  • The company has reported a significantly better-than- forecast H1 FY24 result, driven by stronger revenue, productivity gains and cost improvements. 

Vection Technologies – Contract wins underpin strong start to H224

By Edison Investment Research

Vection Technologies secured multiple contracts in February, generating total contract value (TCV) of A$5.8m, with management expecting to recognise the associated revenue and cash across H224. Year to date, the group has delivered more than A$22.5m in TCV, c 80% of FY23 TCV, underpinning growth momentum in FY24. The most substantial contract, valued at A$4.9m, was won with an existing customer in the defence sector, Vection’s second-largest vertical, showing that management is delivering on its upsell strategy. The other contracts spanned healthcare, retail and real estate, reflecting growing demand for extended/virtual reality technologies across a myriad of commercial applications.

Strong H1 reflects organic growth and fiscal discipline

By Research as a Service (RaaS)

  • QANTM Intellectual Property Ltd (ASX:QIP) owns a group of intellectual property (IP) services businesses operating under the independent brands of Davies Collison Cave (DCC), FPA Patent Attorneys and Sortify.tm.
  • It is a major player in the mature and regulated Australian patent, trade marks and IP legal services market with ~14.4% market share (H1 FY24) in its key patents segment (67% of service revenue) and a diversified mix of local and foreign clients.
  • The company has reported a significantly better-than-forecast H1 FY24 result, driven by stronger revenue, productivity gains and cost improvements.

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Feb 22
0

Daily Brief Thailand: Delta Electronics Thailand and more

By | Daily Briefs, Thailand

In today’s briefing:

  • Delta Electronics (DELTA TB / 2308 TT): More Downside from Here

Delta Electronics (DELTA TB / 2308 TT): More Downside from Here

By Brian Freitas

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Feb 22
0

Daily Brief South Korea: Korea Stock Exchange Kospi Index, Hanwha Corporation and more

By | Daily Briefs, South Korea

In today’s briefing:

  • Korea NPS Abruptly Joins Corporate Value Up Program: According to Document Obtained from NPS
  • NPS Plans to Select Three Asset Management Companies For “Corporate Value Up” Program

Korea NPS Abruptly Joins Corporate Value Up Program: According to Document Obtained from NPS

By Sanghyun Park

  • NPS abruptly joins ‘Corporate Value Up Program’, plans to select three asset managers. Deadline: this month’s 29th; results: March 19th, possibly linked to Korea Premium Index ETF launch in mid-May.
  • The document outlines guidelines, allocating 90-100% to value stocks, with KOSDAQ under 20%. While benchmarked to the internally-built index, it will likely focus on Korea Premium Index and KOSDAQ Global.
  • The fund size is crucial. NPS will disclose details later. But still, there is considerable room to this year’s ceiling for local equity; a significant amount could flow into this.

NPS Plans to Select Three Asset Management Companies For “Corporate Value Up” Program

By Douglas Kim

  • On 21 February, NPS announced that it will select three domestic asset management companies to manage funds that will be allocated to the “corporate value up” program. 
  • NPS plans to accept proposals from the local asset management and investment advisory companies from 21 to 29 February. NPS is likely to finalize the selected candidates sometime in March. 
  • We provide a list of 34 companies where the NPS has at least 5% ownership stake, with PBR of 0.5x or less, and included in KOSPI 200.

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Feb 22
0

Daily Brief Singapore: Singapore Airlines, Lendlease Global Commercial REIT and more

By | Daily Briefs, Singapore

In today’s briefing:

  • Singapore Airlines – Onset of Earnings Normalization to Heighten Focus on Efficiency
  • ESG Brew with Lendlease REIT’s CEO: “I live more sustainably by taking public transport”

Singapore Airlines – Onset of Earnings Normalization to Heighten Focus on Efficiency

By Neil Glynn

  • We cut our SIA operating profit by 9% to S$2.6bn in FY24 and by 17% to S$1.5bn in FY25 versus consensus of S$2.1bn.
  • SIA’s cost control is under-examined and we publish a deep dive on a concerning level of inflation relative to key peers, which actually escalated in 3Q24.
  • Cargo broke even in peak season, and Scoot’s margins present a conundrum as it may need to be further utilization to help SIA with cost management.

ESG Brew with Lendlease REIT’s CEO: “I live more sustainably by taking public transport”

By Geoff Howie

  • kopi-C with Lendlease REIT’s CEO The first Singapore REIT to reach net zero emissions, Lendlease Global Commercial REIT has its next target in sight: absolute zero by 2040.
  • When it comes to sustainability, Lendlease Global Commercial REIT is ahead of its peers.

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Feb 22
0

Daily Brief Indonesia: Merdeka Battery Materials and more

By | Daily Briefs, Indonesia

In today’s briefing:

  • ASEAN EV Ecosystem Update: Further Initiatives to Build a Regional EV Ecosystem

ASEAN EV Ecosystem Update: Further Initiatives to Build a Regional EV Ecosystem

By Shifara Samsudeen, ACMA, CGMA

  • EV supply chain is at a nascent stage in ASEAN and EV adoption in the region lags behind developed markets despite boasting a large population with a burgeoning middle class.
  • However, Governments in the region continue to introduce new initiatives and offer incentives to promote the sector, while companies continue to attract large investment to develop the EV market.
  • The four companies we looked at have reported earnings and we have discussed their latest results and our investment thesis.

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Feb 22
0

Daily Brief United States: NVIDIA Corp, R1 RCM , Russell 2000 Index, BGC Group , DocGo , HEICO Corp, iPower , Soluna Holdings and more

By | Daily Briefs, United States

In today’s briefing:

  • From Nvidia Results to See Supply Chain Stories?
  • R1 Rcm Inc (RCM) – Wednesday, Nov 22, 2023
  • Small Caps Outperform Despite “Hot” Inflation Reports; Equal-Weighted S&P 500 Breakout
  • Bgc Group Inc (BGC) – Tuesday, Nov 21, 2023
  • Docgo Inc (DCGO) – Wednesday, Nov 22, 2023
  • HEICO: Parts for Planes – [Business Breakdowns, EP.150]
  • IPower, Inc. – 2QFY24 Review – Lean and Toward Profitability?
  • Soluna Holdings, Inc. – New Hosting Deal Expands AI Initiative

From Nvidia Results to See Supply Chain Stories?

By Andrew Lu

  • Post 35% price gain in a quarter, many good news we expected and other analysts expected already factored into the share price. We believe the risk/reward not attractive here.
  • TSMC guides stronger 1Q24 and 2024, helped by Nvidia and copy cat AI GPU/ASIC orders. We see greater opportunities for alternative copy cat solutions like AMD and Alchip.
  • We attribute Nvidia customers’ sales discrepancy to AI server is cannibalizing non-AI server and Nvidia is allocating more GPUs to premium price paying customers in 1H24 and reverse in 2H24.

R1 Rcm Inc (RCM) – Wednesday, Nov 22, 2023

By Value Investors Club

Key points

  • Analysts believe R1 (RCM) presents a compelling investment opportunity despite recent challenges
  • Predictions suggest profitability improvements and potential doubling of stock value over the next few years
  • Long-term outlook remains strong due to industry-leading position and growth potential in healthcare IT sector

This content is sourced through publicly available sources and has been machine generated. Information displayed is for general informational purposes only. This article was originally published 3 months ago on Value Investors Club.

Small Caps Outperform Despite “Hot” Inflation Reports; Equal-Weighted S&P 500 Breakout

By Joe Jasper

  • In spite of last week’s hotter-than-expected inflation reports, the Russell 2000 (IWM) outperformed relative to the SPX and QQQ, and ended the week at YTD weekly closing highs.
  • The fact that small- and mid-caps outperformed during a week with two hot inflation reports is a sign we could see more outperformance in the weeks/months ahead.
  • Adding to the risk-on theme, the DXY displays a false breakout at $104.60-$104.70. Our bullish outlook that we have had since early November 2023 remains intact. 

Bgc Group Inc (BGC) – Tuesday, Nov 21, 2023

By Value Investors Club

Key points

  • Previous VIC writeup accurately predicted BGC’s stock performance and highlighted key factors such as historical developments, valuation, and potential catalysts
  • Minimal feedback received on previous writeup, but insights proved valuable as stock outperformed
  • New writeup aims to provide more detail, updates, and analysis to support case for BGC’s potential growth, currently the largest position for the author.

This content is sourced through publicly available sources and has been machine generated. Information displayed is for general informational purposes only. This article was originally published 3 months ago on Value Investors Club.

Docgo Inc (DCGO) – Wednesday, Nov 22, 2023

By Value Investors Club

Key points

  • DocGo revolutionizing ambulance industry through technology and non-emergency ambulatory services
  • Went public in 2021 raising $158M, expanded services to include COVID testing, vaccinations, and patient monitoring
  • Revenue sources mostly low-quality, non-recurring, and government-contract dependent, struggling to maintain profitability outside of COVID-related services

This content is sourced through publicly available sources and has been machine generated. Information displayed is for general informational purposes only. This article was originally published 3 months ago on Value Investors Club.

HEICO: Parts for Planes – [Business Breakdowns, EP.150]

By Business Breakdowns

  • Investment firms are using Ten East to diversify personal portfolios
  • Business Breakdowns podcast explores successful businesses like Heiko in niche markets
  • Heiko operates in the aerospace industry, offering cost-saving solutions for aircraft parts and repairs, similar to generic drugs in the pharmaceutical industry

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

IPower, Inc. – 2QFY24 Review – Lean and Toward Profitability?

By Water Tower Research

  • iPower reported 2QFY24 revenue of $16.8 million versus $19.3 million a year ago, driven primarily by continued inventory tightening at its main online retail partner.
  • Nevertheless, gross margin improved to 43.6% from 41.4% Y/Y, driven by a favorable product mix, lower warehouse costs, and service revenue.
  • The secular inventory tightening, following the supply disruptions of 2022, has now run its course, and might have been exacerbated this quarter by iPower’s main retail online partner end of the year considerations.

Soluna Holdings, Inc. – New Hosting Deal Expands AI Initiative

By Water Tower Research

  • Announces hosting agreement with GPU startup for AI computing.
  • Soluna announced a co-location agreement with an AI-focused GPU startup that will locate its GPU units in Soluna’s existing modular data center at the 25MW Project Sophie in Kentucky.
  • New contract is another milestone in the company’s growth into AI.

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Feb 22
0

Daily Brief China: China Traditional Chinese Medicine, HSBC Holdings, Numans Health Food Holdings and more

By | China, Daily Briefs

In today’s briefing:

  • China Traditional Chinese Medicine (570 HK): Sinopharm-Led Pre-Conditional Offer at HK$4.60
  • TCM (570 HK): Sinopharm’s $4.60/Share Offer
  • HSBC – The Narrative Seems to Be Missing Many Points of the Reality
  • Pre-IPO Numans Health Food Holdings – Due to Flawed Business Model, Future Growth Is Uncertain

China Traditional Chinese Medicine (570 HK): Sinopharm-Led Pre-Conditional Offer at HK$4.60

By Arun George

  • China Traditional Chinese Medicine (570 HK) announced a privatisation offer from the Sinopharm-led consortium at HK$4.60 per share, a 47.4% premium to the undisturbed price.
  • The pre-condition relates to various Chinese regulatory approvals. As SOE entities own the offeror, regulatory approvals will be a formality. The offer price is final. 
  • Ping An Insurance (H) (2318 HK), which holds a blocking stake, will be supportive. The offer is fair when the previously (higher) rumoured offers are adjusted for the market downturn. 

TCM (570 HK): Sinopharm’s $4.60/Share Offer

By David Blennerhassett

  • $4.60/Share. That’s the number – by way of a Scheme – that only matters. Below the recently rumoured $6/share, and $5.10/share a little over three years ago. Terms are final.
  • As widely expected, the Offeror is SASAC-managed China National Pharmaceutical Group Corporation (CNPGC), indirectly owning 32.46% in China Traditional Chinese Medicine (570 HK) (TCM) via Sinopharm Group Hongkong,
  • Optically, the Offer price appears light. But this should still get up. TCM is trading rich to peers. No other competing bidder will emerge. Expect regulatory pre-cons to be fast-tracked.

HSBC – The Narrative Seems to Be Missing Many Points of the Reality

By Daniel Tabbush

  • In the most recent quarters HSBC saw its NIM decline from around 1.7% to 1.5%
  • As the bank de-risks its CRE lending it is left with a greater proportion of bad CRE loans
  • There can be more significant impairment charges on BoCom, the USD3bn done was small

Pre-IPO Numans Health Food Holdings – Due to Flawed Business Model, Future Growth Is Uncertain

By Xinyao (Criss) Wang

  • Numans values light asset model, which helps reduce cost/expenditures, and thereby increase profits. However, such business model has flaws – no R&D/production, only terminal sales/brand operation, no control over upstream.
  • Revenue growth of core business Algal oil DHA products declined.Numans attempts to change its monotonous product line and enter milk powder industry, but the results weren’t ideal. Numans suffered losses. 
  • If Numans only plays the role of a “porter” of finished products from abroad and lacks core competitiveness/technological content, it will face multiple challenges to achieve sustained high performance growth.

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Feb 22
0

Daily Brief India: Union Bank Of India, FirstCry, Adani Transmission and more

By | Daily Briefs, India

In today’s briefing:

  • Union Bank of India (UNBK IN) Placement: Using Index Inclusion Well
  • Union Bank of India QIP – Well-Flagged and Just in Time for Index Inclusion
  • Brainbees Solutions (FirstCry) IPO | Channel Feedback
  • Morning Views Asia:

Union Bank of India (UNBK IN) Placement: Using Index Inclusion Well

By Brian Freitas

  • Union Bank Of India (UNBK IN) is looking to raise up to INR 30bn (US$362m) with the floor price set at INR 142.78/share and a maximum discount of 5%.
  • The stock has run up a lot and with index inclusion around the corner, this is as good a time as any to issue stock.
  • Union Bank Of India (UNBK IN) trades cheaper than peers and could continue to outperform over the near-term.

Union Bank of India QIP – Well-Flagged and Just in Time for Index Inclusion

By Sumeet Singh

Brainbees Solutions (FirstCry) IPO | Channel Feedback

By Pranav Bhavsar

  • We visited FirstCry Franchisee stores in Ajmer (Rajasthan), and Hosur (Tamil Nadu).
  • FirstCry has a high brand recall, limited competition, and healthy franchisee relations.
  • The ability to leverage FirstCry and Baby Oye is a good margin lever.

Morning Views Asia:

By Leonard Law, CFA

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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