All Posts By

Smartkarma Daily Briefs

Jan 20
0

Daily Brief Event-Driven: Identifying Specific Implementation Plans for Korea’s Low-PBR Improvement Policy and more

By | Daily Briefs, Event-Driven

In today’s briefing:

  • Identifying Specific Implementation Plans for Korea’s Low-PBR Improvement Policy
  • Genetron Holdings (GTH US): Clear Diagnosis
  • Medley (4480) To Buy Out Guppy’s (5127) At ¥3,250 (9.4x Aug26 EV/FCF)
  • Meaty Target
  • EQD | NIFTY Pullback Already OVERSOLD: Prepare for WEEKLY LONG Trade

Identifying Specific Implementation Plans for Korea’s Low-PBR Improvement Policy

By Sanghyun Park

  • The Korean government has introduced policies ahead of April’s elections, with a recent notable announcement addressing the “Korea Discount” by enhancing low PBR stock valuations.
  • A leading proposal involves creating an index of low PBR companies. There are hints of listing ETFs tracking this index, with potential directives compelling pension funds to invest.
  • Identifying early inclusions is vital. High-likelihood candidates are low PBR large caps with maintained earnings, dividends/share buyback potential, including Hyundai Dept, E-Mart, Hyundai Steel, IBK, Korean Re, & DL E&C.

Genetron Holdings (GTH US): Clear Diagnosis

By David Blennerhassett

  • Back on the 11th October 2023, Genetron Holdings Ltd (GTH US), a precision oncology platform, entered into a definitive take-private transaction, at $4.08/ADS, a 15% premium to undisturbed.
  • The EGM for shareholders to vote on the transaction will be held on the 21 February. The record date is the 9 Feb.
  • This merger requires approval from at least two-thirds of the votes cast, and 59.7% are supportive. Trading at a gross spread of 7.7%. This is a clean deal.

Medley (4480) To Buy Out Guppy’s (5127) At ¥3,250 (9.4x Aug26 EV/FCF)

By Travis Lundy

  • Medley (4480 JP) operates recruitment platforms in healthcare, elsewhere. GUPPY’s Inc (5127 JP) does too. They also offer exam prep for two niches where they have super-high market share.
  • GUPPY’s was listed 18mos ago, and the founder wants out. The deal is a nice premium (+86%) but it isn’t as generous a deal as it could be. 
  • That said, the shareholder structure looks like this deal gets done pretty easily. 

Meaty Target

By Jesus Rodriguez Aguilar

  • Marel HF (MARL IR) announced a third proposal from John Bean Technologies (JBT US) for a cash and shares offer, equivalent €3.60/share, to be launched in Q1, with 24.7% irrevocable undertakings.
  • There is strong market growth potential, due to growing middle-class demanding a higher proportion of animal protein in their diet. The overall sector, despite global economic woes, seems piping hot.
  • My base-case fair value estimate is €3.54 (9.0% WACC, 2% implied perpetuity growth rate). The median IBES consensus TP is €3.50. On this basis, the offer price seems fair. Buy.

EQD | NIFTY Pullback Already OVERSOLD: Prepare for WEEKLY LONG Trade

By Nico Rosti

  • Last week at Close the NIFTY Index was OVERBOUGHT, this week it became quickly OVERSOLD, bouncing off from a price area near the Inner Fence support  levels for CC=-1.
  • Another week down is possible but we see strong support in the 21250-20800 price area.
  • Should that support area be reached, it would be a good opportunity to re-enter this index’s Bull market.

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

Sign Up for Free

The Smartkarma Preview Pass is your entry to the Independent Investment Research Network

  • ✓ Unlimited Research Summaries
  • ✓ Personalised Alerts
  • ✓ Custom Watchlists
  • ✓ Company Data and News
  • ✓ Events & Webinars
Sign Up for Free


Jan 20
0

Daily Brief Macro: Mint Macro Roundup: Barring BoJ Intervention and more

By | Daily Briefs, Macro

In today’s briefing:

  • Mint Macro Roundup: Barring BoJ Intervention, Will Yen to Tank to New Lows?
  • Mint Macro Roundup: Upbeat US Retail Sales in Dec Trims Markets Rate Cut Expectations in March
  • CX Daily: China Financial Regulator Aims for Greater Consistency With New Departments
  • UK: False Retail Trend Break in Dec-23

Mint Macro Roundup: Barring BoJ Intervention, Will Yen to Tank to New Lows?

By Pranay Yadav

  • Fundamental weakening bias in Yen has returned with BoJ unlikely to exit loose policy as inflation has cooled and sustainable economic growth remains uncertain.
  • Dollar also looks stronger as economic data from the US has shown a rebound in inflation as well as an unexpectedly strong economy.
  • Yen likely to maintain weakening trend, barring intervention. However, it may face resistance as it approaches November lows.

Mint Macro Roundup: Upbeat US Retail Sales in Dec Trims Markets Rate Cut Expectations in March

By Suhas Reddy

  • Retail sales in December rose by 0.6% MoM, beating analyst expectations. Core retail sales also grew stronger than expected. 
  • Automobile, clothing and accessories, and online store sales led growth on a MoM basis, while food services sales growth remained flat.
  • Given the buoyant growth in sales, traders pared back their expectations of a Fed interest rate cut in March 2024.

CX Daily: China Financial Regulator Aims for Greater Consistency With New Departments

By Caixin Global

  • Reform / In Depth: China financial regulator aims for greater consistency with new departments 
  • Davos /Davos attendees weigh China’s strengths and weaknesses at Caixin luncheon
  • Corruption /Shanghai state media veteran tried for accepting millions in bribes

UK: False Retail Trend Break in Dec-23

By Phil Rush

  • UK retail sales crashed by 3.2% m-o-m in the official estimates for Dec-23, appearing to break the well-established trends of rising values and flat volumes.
  • Expenditure for Christmas should be read across November and December, recognising that the sales events are challenging for the ONS to adjust for seasonally.
  • Non-Seasonally adjusted sales were consistent with the performance in recent years, suggesting the trend break is a temporary statistical issue, not a fundamental one.

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

Sign Up for Free

The Smartkarma Preview Pass is your entry to the Independent Investment Research Network

  • ✓ Unlimited Research Summaries
  • ✓ Personalised Alerts
  • ✓ Custom Watchlists
  • ✓ Company Data and News
  • ✓ Events & Webinars
Sign Up for Free


Jan 20
0

Daily Brief South Korea: Hyundai Steel and more

By | Daily Briefs, South Korea

In today’s briefing:

  • Identifying Specific Implementation Plans for Korea’s Low-PBR Improvement Policy

Identifying Specific Implementation Plans for Korea’s Low-PBR Improvement Policy

By Sanghyun Park

  • The Korean government has introduced policies ahead of April’s elections, with a recent notable announcement addressing the “Korea Discount” by enhancing low PBR stock valuations.
  • A leading proposal involves creating an index of low PBR companies. There are hints of listing ETFs tracking this index, with potential directives compelling pension funds to invest.
  • Identifying early inclusions is vital. High-likelihood candidates are low PBR large caps with maintained earnings, dividends/share buyback potential, including Hyundai Dept, E-Mart, Hyundai Steel, IBK, Korean Re, & DL E&C.

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

Sign Up for Free

The Smartkarma Preview Pass is your entry to the Independent Investment Research Network

  • ✓ Unlimited Research Summaries
  • ✓ Personalised Alerts
  • ✓ Custom Watchlists
  • ✓ Company Data and News
  • ✓ Events & Webinars
Sign Up for Free


Jan 20
0

Daily Brief India: IndiaMart, Tata Steel Ltd, NIFTY Index and more

By | Daily Briefs, India

In today’s briefing:

  • Indiamart Intermesh (INDIAMART) – Friday, Oct 20, 2023
  • Weekly Wrap – 19 Jan 2024
  • EQD | NIFTY Pullback Already OVERSOLD: Prepare for WEEKLY LONG Trade

Indiamart Intermesh (INDIAMART) – Friday, Oct 20, 2023

By Value Investors Club

Key points (machine generated)

  • IndiaMart is India’s largest online B2B marketplace with a market cap of $2 billion.
  • The company has a 60% market share of B2B e-commerce in India, indicating a large potential for growth.
  • IndiaMart benefits from a negative working capital business model, upfront supplier subscription payments, and a net cash balance sheet. It also has the option to invest in new business lines to expand its monetization opportunities. Despite limited advertising spend, the platform attracts over 1 billion in traffic.

This article is sourced from an online content aggregator through publicly available sources and is displayed below for general informational purposes only. This article was originally published 3 months ago on Value Investors Club.

Weekly Wrap – 19 Jan 2024

By Leonard Law, CFA

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

In this Insight:

  1. Lippo Malls Indonesia Retail Trust
  2. Vedanta Resources
  3. ReNew Energy Global
  4. China Jinmao Holdings
  5. Geely Auto

and more…

EQD | NIFTY Pullback Already OVERSOLD: Prepare for WEEKLY LONG Trade

By Nico Rosti

  • Last week at Close the NIFTY Index was OVERBOUGHT, this week it became quickly OVERSOLD, bouncing off from a price area near the Inner Fence support  levels for CC=-1.
  • Another week down is possible but we see strong support in the 21250-20800 price area.
  • Should that support area be reached, it would be a good opportunity to re-enter this index’s Bull market.

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

Sign Up for Free

The Smartkarma Preview Pass is your entry to the Independent Investment Research Network

  • ✓ Unlimited Research Summaries
  • ✓ Personalised Alerts
  • ✓ Custom Watchlists
  • ✓ Company Data and News
  • ✓ Events & Webinars
Sign Up for Free


Jan 20
0

Daily Brief Singapore: Tata Steel Ltd and more

By | Daily Briefs, Singapore

In today’s briefing:

  • Weekly Wrap – 19 Jan 2024

Weekly Wrap – 19 Jan 2024

By Leonard Law, CFA

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

In this Insight:

  1. Lippo Malls Indonesia Retail Trust
  2. Vedanta Resources
  3. ReNew Energy Global
  4. China Jinmao Holdings
  5. Geely Auto

and more…

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

Sign Up for Free

The Smartkarma Preview Pass is your entry to the Independent Investment Research Network

  • ✓ Unlimited Research Summaries
  • ✓ Personalised Alerts
  • ✓ Custom Watchlists
  • ✓ Company Data and News
  • ✓ Events & Webinars
Sign Up for Free


Jan 20
0

Daily Brief United States: Limbach Holdings , FirstCash Holdings , VAALCO Energy and more

By | Daily Briefs, United States

In today’s briefing:

  • Limbach Holdings Inc (LMB) – Friday, Oct 20, 2023
  • Firstcash Holdings Inc (FCFS) – Friday, Oct 20, 2023
  • VAALCO Energy (NYSE: EGY): Good operational performance in 4Q23

Limbach Holdings Inc (LMB) – Friday, Oct 20, 2023

By Value Investors Club

Key points (machine generated)

  • IBP is a leading roll-up strategist in the building industry, having executed over 100 acquisitions in a short period of time.
  • The company leverages its national platform, supplier relationships, and operational expertise to enhance value while keeping the acquired companies’ local brands, talent, and customer relationships intact.
  • IBP’s successful acquisition strategy, along with its strong commitment to timely delivery and solid financial position, has helped the company become a key player in the insulation industry.

This article is sourced from an online content aggregator through publicly available sources and is displayed below for general informational purposes only. This article was originally published 3 months ago on Value Investors Club.

Firstcash Holdings Inc (FCFS) – Friday, Oct 20, 2023

By Value Investors Club

Key points (machine generated)

  • FCFS has a strong growth potential with an estimated 6% to 12% growth.
  • The company has a well-diversified business model, with pawn shops in both the US and Mexico, indicating a strong cash flow generation.
  • FCFS benefits from serving the underbanked population, providing a stable customer base and making it a solid investment option with a track record of outperformance and potential for future growth.

This article is sourced from an online content aggregator through publicly available sources and is displayed below for general informational purposes only. This article was originally published 3 months ago on Value Investors Club.

VAALCO Energy (NYSE: EGY): Good operational performance in 4Q23

By Auctus Advisors

  • • 4Q23 WI production of 23.1-23.5 mboe/d was comfortably within the management guidance of 22.9-24.6 mboe/d. • VAALCO held >US$120 mm in cash and cash equivalents at the end of December, up from US$103 mm at the end of September.
  • The YE23 cash position was impacted by the fact the Egyptian sales during 4Q23 were for the domestic market rather than exported (domestic sales carry a lower value than exported cargoes).

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

Sign Up for Free

The Smartkarma Preview Pass is your entry to the Independent Investment Research Network

  • ✓ Unlimited Research Summaries
  • ✓ Personalised Alerts
  • ✓ Custom Watchlists
  • ✓ Company Data and News
  • ✓ Events & Webinars
Sign Up for Free


Jan 20
0

Daily Brief Japan: Dai Ichi Life Insurance, GUPPY’s Inc, iShares MSCI ACWI ETF, Softbank Group, TSE Tokyo Price Index TOPIX and more

By | Daily Briefs, Japan

In today’s briefing:

  • Dai-Ichi Life Holdings – 4 Quarters Strongly Rising Profit, ROE: 3% to 12%, A Profit Upgrade?
  • Medley (4480) To Buy Out Guppy’s (5127) At ¥3,250 (9.4x Aug26 EV/FCF)
  • Pause/Pullback Underway; Downgrading Europe and Mexico; Buys in Services, Tech, Comm, Healthcare
  • Softbank (9984 JP): Big Fat NAV Discount, but Headwinds Outweigh Tailwinds Going Forward
  • What Can Be Done to Make the Independence of the Committee Function that Investors Have Questioned?

Dai-Ichi Life Holdings – 4 Quarters Strongly Rising Profit, ROE: 3% to 12%, A Profit Upgrade?

By Daniel Tabbush

  • Dai Ichi Life Insurance (8750 JP) has seen rebounding net profit at a strong rate of growth for the past four quarters.
  • ROE has moved from a dismal 3.4% to 11.8% from 2Q23 to 2Q24, where a single US bank impairment should now drop out of the numbers
  • New business annual premiums are up from JPY97bn to JPY122bn from 2Q23 to 2Q24 with a high solvency ratio of 654%

Medley (4480) To Buy Out Guppy’s (5127) At ¥3,250 (9.4x Aug26 EV/FCF)

By Travis Lundy

  • Medley (4480 JP) operates recruitment platforms in healthcare, elsewhere. GUPPY’s Inc (5127 JP) does too. They also offer exam prep for two niches where they have super-high market share.
  • GUPPY’s was listed 18mos ago, and the founder wants out. The deal is a nice premium (+86%) but it isn’t as generous a deal as it could be. 
  • That said, the shareholder structure looks like this deal gets done pretty easily. 

Pause/Pullback Underway; Downgrading Europe and Mexico; Buys in Services, Tech, Comm, Healthcare

By Joe Jasper

  • We see global equities (MSCI ACWI) going through a pause/pullback amid short-term breakouts in the U.S. dollar (DXY) and global sovereign 10-year yields.
  • A rising DXY and climbing yields is a near-term headwind, and we could continue to see more choppy price action in the weeks ahead.
  • With that said, as long as the DXY remains below $106, the 10-year Treasury yield remains below 4.35%, and ACWI-US is above $98, we would view pullbacks as buying opportunities.

Softbank (9984 JP): Big Fat NAV Discount, but Headwinds Outweigh Tailwinds Going Forward

By Victor Galliano

  • SoftBank group’s headline NAV discount is over 50%, factoring in the T-Mobile shares windfall at December-end
  • SoftBank Corp is looking to IPO digital payments company PayPay, which should also be a positive driver for SoftBank Group shares going forward, but only a marginal one
  • Arm shares have been defying gravity, but we see downside risk going forward, as well as questions over SVF1 and SVF2 private company valuations; and the threat of JPY appreciation

What Can Be Done to Make the Independence of the Committee Function that Investors Have Questioned?

By Aki Matsumoto

  • While disclosure of committee activities in annual securities report provides clues to the independence of committee, this might create higher hurdle for moving to Company with US type 3 Committees.
  • Based on the premise that disclosure of committee activities can change management’s mindset and enable committees to function, more specific details should need to be disclosed to all listed companies.
  • Many companies have nominating committees that meet 1-2 times a year before the AGM. Few companies have a Succession Plan, which is of great interest to investors.

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

Sign Up for Free

The Smartkarma Preview Pass is your entry to the Independent Investment Research Network

  • ✓ Unlimited Research Summaries
  • ✓ Personalised Alerts
  • ✓ Custom Watchlists
  • ✓ Company Data and News
  • ✓ Events & Webinars
Sign Up for Free


Jan 20
0

Daily Brief China: Genetron Holdings Ltd, Country Garden Services, Travelsky Technology Ltd H, Tata Steel Ltd and more

By | China, Daily Briefs

In today’s briefing:

  • Genetron Holdings (GTH US): Clear Diagnosis
  • Country Garden Pledges to Deliver More Than 480,000 Homes in 2024
  • Travelsky (696 HK | BUY | TP:HKD9.92): Forget 2023, Think of 2024-25 Which Will Be Much Better
  • Weekly Wrap – 19 Jan 2024

Genetron Holdings (GTH US): Clear Diagnosis

By David Blennerhassett

  • Back on the 11th October 2023, Genetron Holdings Ltd (GTH US), a precision oncology platform, entered into a definitive take-private transaction, at $4.08/ADS, a 15% premium to undisturbed.
  • The EGM for shareholders to vote on the transaction will be held on the 21 February. The record date is the 9 Feb.
  • This merger requires approval from at least two-thirds of the votes cast, and 59.7% are supportive. Trading at a gross spread of 7.7%. This is a clean deal.

Country Garden Pledges to Deliver More Than 480,000 Homes in 2024

By Caixin Global

  • Chinese property developer Country Garden Holdings Co. Ltd. vowed to deliver more than 480,000 homes in 2024, a more modest target than 2023 after it failed to achieve its 700,000-unit goal last year.
  • The focus of 2024 is still to “guarantee delivery, guarantee operation and guarantee credit,” of which delivery is the bottom line that Country Garden “must firmly hold,” Chairwoman Yang Huiyan said at the developer’s annual meeting Monday.
  • Country Garden, once China’s No. 1 developer by sales, delivered more than 600,000 units last year, short of its goal set at the beginning of 2023, the developer said.

Travelsky (696 HK | BUY | TP:HKD9.92): Forget 2023, Think of 2024-25 Which Will Be Much Better

By Mohshin Aziz

  • Travelsky Technology Ltd H (696 HK) (TravelSky) issued its 2023 operating statistics and a profit warning that is far below market expectations, the share price has plunged by 36% 
  • Our analysis suggests that staff cost, commission, and systems costs have soared. This will be contained when traffic accelerates and absorbs these fixed cost items 
  • Our target price of HKD9.92 (+21% UPSIDE) is based on 2024 PE 14.8x (1SD below mean). Keep an eye, worthwhile trade, due for a bounce    

Weekly Wrap – 19 Jan 2024

By Leonard Law, CFA

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

In this Insight:

  1. Lippo Malls Indonesia Retail Trust
  2. Vedanta Resources
  3. ReNew Energy Global
  4. China Jinmao Holdings
  5. Geely Auto

and more…

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

Sign Up for Free

The Smartkarma Preview Pass is your entry to the Independent Investment Research Network

  • ✓ Unlimited Research Summaries
  • ✓ Personalised Alerts
  • ✓ Custom Watchlists
  • ✓ Company Data and News
  • ✓ Events & Webinars
Sign Up for Free


Jan 19
0

Most Read: Fujitsu General, Douzone Bizon, Taiwan Semiconductor (TSMC), Budweiser Brewing APAC , Emperador, Taiwan Semiconductor (TSMC) – ADR, EcoPro Materials, Irc Ltd, APR and more

By | Daily Briefs, Most Read

In today’s briefing:

  • Fujitsu General (6755) – Fujitsu Wants Out, May Force the Issue
  • KRX New Deal Index Rebalance Preview: Changes with Flow & Impact
  • What Stories TSMC Investor Conference Telling Us About Customers, Supply Chains, and Competitors
  • Bud APAC (1876 HK): Nursing a Hangover; Now Comes a Passive Overhang
  • STTF Rebalance Preview: One Potential Change in March
  • TSMC Results Make Buy Story Even More Clear; Strong 2024E Guidance & Reiterates Multi-Year Growth
  • KOSPI Size Indices – The Outperformance Continues
  • Spotting Position Patterns: TIGER Battery ETF January Review & KODEX ETF’s March Rebalancing
  • IRC (1029 HK)’s MBO’s MGO: Still An Avoid
  • Why Is APR IPO Getting Delayed?

Fujitsu General (6755) – Fujitsu Wants Out, May Force the Issue

By Travis Lundy

  • In 2019, it became apparent Fujitsu Ltd (6702 JP) wanted to sell down its stakes in non-core businesses (Shinko Electric, Fujitsu General, and FDK), and move on to better things.
  • In early January 2023, a Bloomberg article suggested a sale process. A 20 Jan 2023 article suggested Fujitsu General’s auction was imminent. I wrote a piece. It was not bullish.
  • The stock rose a bit, then fell 40+% through last week. Now another article suggests some urgency at Fujitsu. That changes things.

KRX New Deal Index Rebalance Preview: Changes with Flow & Impact

By Brian Freitas

What Stories TSMC Investor Conference Telling Us About Customers, Supply Chains, and Competitors

By Andrew Lu

  • TSMC expects 2024 semi sector in recovery with 20-25% y/y growth itself, driven by AI customers. By controlling capex, more rooms to raise dividends but no growth for equipment vendors.
  • Faster ramp on N3, likely N3E, N3P than competitor’s. TSMC expects 3nm from 6% of sales in 3Q23, 12.7% in 4Q23 to 15% in 2024, 3x y/y increase in 2024.
  • TSMC reports a nearly 30% q/q drop on IOT and consumer IC demand and sees weakness on 12″ mature technology despite better demand 8″ specialty technology.

Bud APAC (1876 HK): Nursing a Hangover; Now Comes a Passive Overhang

By Brian Freitas

STTF Rebalance Preview: One Potential Change in March

By Brian Freitas

TSMC Results Make Buy Story Even More Clear; Strong 2024E Guidance & Reiterates Multi-Year Growth

By Vincent Fernando, CFA

  • TSMC reported 4Q23 results at the upper end of its guidance. More importantly, the company guided for low/mid 20% 2024E sales growth and reiterated an expected 15-20% multi-year CAGR.
  • The company provided optimistic guidance for the overall semiconductor industry, forecasting 10% growth in 2024E. TSMC expects to grow much faster than the industry, however.
  • TSMC is one of our Structural Longs; our NT$760 target implies 29% upside. The latest results make TSMC’s Buy case even more clear, in our view.

KOSPI Size Indices – The Outperformance Continues

By Brian Freitas

  • The review period for the March rebalance of the KOSPI Size Indices started 1 December and will end 29 February. The changes will be implemented at the close 14 March.
  • We currently see 3 migrations from MidCap to LargeCap, 3 new adds to LargeCap, 6 migrations from LargeCap to MidCap, and 11 migrations from SmallCap to MidCap.
  • Historically, stocks migrating from SmallCap to MidCap have outperformed stocks that are migrating between other categories.

Spotting Position Patterns: TIGER Battery ETF January Review & KODEX ETF’s March Rebalancing

By Sanghyun Park

  • TIGER ETF (305540) rebalanced on January 11th, with Ecopro Materials correcting by 4%, contrasting a 20% surge from Jan 8-10. TIGER recorded net purchases aligning with a 2% inclusion weight.
  • Preemptive positions by local hedge funds were observed from Jan 8-10, closing on the 11th. Despite a KOSPI decline and minimal sector movement, Ecopro Materials exhibited this unusual price pattern.
  • Observing this pattern implies a potential recurrence during the March rebalancing of KODEX ETF. Notably, local hedge funds may initiate similar preemptive positions. We should consider this in position setup.

IRC (1029 HK)’s MBO’s MGO: Still An Avoid

By David Blennerhassett

  • Back on the 1st November, Nikolai Levitskii, Russian iron-ore play IRC (1029 HK)‘s chairman and largest shareholder, acquired 4.72% of shares out, lifting his stake above 30%, triggering an MGO.
  • The Offer is conditional on Levitskii holding more than 50% of shares out. His intention is to maintain IRC’s listing. At the first close, he held 35.77% (5.16% had tendered). 
  • The current spread is 9.2%. MIC, with 16.67% of shares out, has yet to tender. Nor do I expect them to. Plus IRC is on the OFAC sanction list. Avoid.

Why Is APR IPO Getting Delayed?

By Douglas Kim

  • APR announced it will delay its IPO. Now, APR’s book building has been postponed to 2 to 8 February. The IPO price range remains the same.
  • The company has provided updated preliminary sales and operating profits for 2023 in the revised IPO prospectus. Revenue was a bit light but OP was better than expected in 4Q23.
  • Our base case valuation of APR is 370,809 won per share which represents an 85% upside from the high end of the bankers’ valuation range (200,000 won).

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

Sign Up for Free

The Smartkarma Preview Pass is your entry to the Independent Investment Research Network

  • ✓ Unlimited Research Summaries
  • ✓ Personalised Alerts
  • ✓ Custom Watchlists
  • ✓ Company Analytics and News
  • ✓ Events & Webinars
Sign Up for Free



Jan 19
0

Daily Brief Utilities: NHPC and more

By | Daily Briefs, Utilities Sector

In today’s briefing:

  • NHPC OFS – While the Overhang Remains, Momentum on the Stock Has Been Very Strong

NHPC OFS – While the Overhang Remains, Momentum on the Stock Has Been Very Strong

By Clarence Chu

  • The GoI is looking to raise US$199m in trimming a portion of its stake in NHPC (NHPC IN). There is an upsize option to increase the deal size to US$279m.
  • Assuming that the deal upsizes, the deal here would be a relatively large one to digest at 11 days of the stock’s ADV.
  • The deal appears to be well flagged, with the selldown by the GoI appearing to be part of its divestment drive across PSUs in India.

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

Sign Up for Free

The Smartkarma Preview Pass is your entry to the Independent Investment Research Network

  • ✓ Unlimited Research Summaries
  • ✓ Personalised Alerts
  • ✓ Custom Watchlists
  • ✓ Company Data and News
  • ✓ Events & Webinars
Sign Up for Free