Smartkarma Daily Briefs, Author at Smartkarma

Nov 18

Daily Brief China: Alibaba Group Holding , Dream International, Huawei Technology, Hygeia Healthcare Group, Wynn Macau Ltd, Hang Seng Index and more

By Smartkarma Daily Briefs | China, Daily Briefs

In today’s briefing:

Alibaba: Our Take on 2QFY24
Asian Dividend Gems: Dream International
First Huawei-Chery EV Ready for Pre-Order
Hygeia Healthcare Group (6078 HK): Double-Digit Revenue Growth in 1H23; Business Expansion Continues
Weekly Wrap – 17 Nov 2023
EQD | Volatility Update: Weekly Review of Vol Changes and Best Trades-Ride the Wave

Alibaba: Our Take on 2QFY24

By Oshadhi Kumarasiri

While Alibaba (ADR) (BABA US)‘s 2Q24 revenue and OP closely matched consensus expectations, the company experienced a significant sell-off, resulting in shares plummeting by over 9% yesterday.
Yesterday’s weak performance may be linked to a 10% pre-earnings price surge, anticipating robust results. The postponement of the Cloud Spin-off could also have contributed to the decline.
We maintain a bearish stance on Alibaba Group Holding (9988 HK) as we identify other fundamental and structural downside catalysts might become increasingly important and price-sensitive as time progresses.

Asian Dividend Gems: Dream International

By Douglas Kim

Based in Hong Kong, Dream International is one of the largest toy manufacturers in the world. It specializes on plush stuffed toys and plastic figures.
Despite the global toys markets going into destocking cycle, the company has generated significant growth in operating profit in the past year driven by strong demand for plush stuffed toys.
If we assume a moderate 20% YoY increase in dividends in 2023, this would imply DPS of HKD 0.48 and this would suggest a dividend yield of 12.7% current prices.

First Huawei-Chery EV Ready for Pre-Order

By Caixin Global

Huawei Technologies Co. Ltd. on Thursday began taking preorders for the first electric vehicle (EV) it co-developed with auto partner Chery Automobile Co. Ltd., upping the ante in its push into China’s highly competitive EV market.
Equipped with a digital cockpit powered by Huawei’s HarmonyOS 4.0 and an advanced assisted driving system, the Luxeed S7 is the first electric sedan marketed under Huawei’s Smart Selection business model. The previous releases with other auto partners were SUVs.
The Luxeed S7 is available for pre-order in four versions with a starting price of 258,000 yuan ($35,417), according to Huawei’s Vmall website.

Hygeia Healthcare Group (6078 HK): Double-Digit Revenue Growth in 1H23; Business Expansion Continues

By Tina Banerjee

In 1H23, Hygeia Healthcare Group (6078 HK) reported revenue growth of 15% YoY to RMB1,760 million, mainly driven by a 16% YoY growth in hospital business.
Hygeia’s gross profit margin contracted 20bps YoY to 32.4%. Riding on 5.6x increase in government grant, operating profit jumped 33% YoY to RMB420M, leading to 320bps margin expansion to 23.9%.
In July, Hygeia acquired Chang’an Hospital for RMB1,660 million. The acquisition will provide Hygeia with greater room to expand its business in the northwest region of the PRC.

Weekly Wrap – 17 Nov 2023

By Charles Macgregor

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:

and more…

EQD | Volatility Update: Weekly Review of Vol Changes and Best Trades-Ride the Wave

By Simon Harris

Weekly summary of vol changes and moves across Global Markets
Analysing ATM volatility and skew changes over the last 5 days
We suggest a few trades to take advantage of the implied vol surfaces

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

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

Nov 18

Daily Brief India: Tata Technologies, Wynn Macau Ltd and more

By Smartkarma Daily Briefs | Daily Briefs, India

In today’s briefing:

Tata Technologies IPO – Parent and Peer Rally Helps
Weekly Wrap – 17 Nov 2023

Tata Technologies IPO – Parent and Peer Rally Helps

By Sumeet Singh

Tata Technologies (TT) is looking to raise around US$370m in its upcoming India IPO.
Tata Technologies is a global engineering services company offering product development and digital solutions, including turnkey solutions, to global original equipment manufacturers (OEMs) and their tier 1 suppliers.
In our previous note, we looked at the company’s past performance. In this note, we talk about valuations.

Weekly Wrap – 17 Nov 2023

By Charles Macgregor

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:

and more…

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

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

Nov 18

Daily Brief Japan: Rakuten Bank , TSE Tokyo Price Index TOPIX and more

By Smartkarma Daily Briefs | Daily Briefs, Japan

In today’s briefing:

Rakuten Bank (5838 JP) Remains a Positive Pick in the Japanese Neobanks
Another Catalyst for Expected Reduction in Policy Shareholdings

Rakuten Bank (5838 JP) Remains a Positive Pick in the Japanese Neobanks

By Victor Galliano

Rakuten Bank shares have experienced something of a re-rating, but we believe it has further to go, with attractive fundamentals and relatively undemanding valuations compared to its digital peers
Rakuten Bank is well positioned to benefit from the tailwind of the steepening yield curve in Japan, with its low LDR, growing loan book and healthy capital ratio
It is leveraging off the Rakuten Group eco-system; not only is it growing its client base, but also nearly a third of clients use Rakuten Bank as their primary bank

Another Catalyst for Expected Reduction in Policy Shareholdings

By Aki Matsumoto

Since Corporate Governance Code limits disclosures on climate change to prime market companies, it’ll encourage the transition from Prime to Standard market and discourage the transition from Sandard to Prime.
While it’ll be interesting to see how many years “Scope 3” disclosures will be mandatory, more attention will be paid to how companies uses the cash from reducing policy shareholdings.
Although the situation is different than it was in 2000 because few companies are underfunded, attention should be paid to whether retirement benefit trusts will become a refuge for policy-shareholdings.

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

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

Nov 18

Most Read: Pasona Group, Ninebot , 21Vianet Group, Korea Stock Exchange KOSPI 200, Asahi Group Holdings, Eoflow , AIA Group Ltd, Alibaba Group Holding and more

By Smartkarma Daily Briefs | Daily Briefs, Most Read

In today’s briefing:

Pasona: The Wrong Price
STAR50 Index Rebalance Preview: Big Impact Expected on the Changes
Hina/IBC’s Non-Binding Proposal For VNET
New Phase in Korean Short Selling: Immediate Impact of MM and LP Short Selling Ban
Asahi Group Holdings (2502) Offering – Some Index Demand But Needs Lots of Active Long-Onlies
Asahi Group (2502 JP): Big Placement with Limited Index Buying; Timing Is Key
Key Points We Should Know Regarding the Current Status of EOFlow
US Fed. Rtir’mt Thrift Board Changes Intl Benchmark, Excludes HK, US$1.6bn HK to Sell, $20bn 1-Way
Alibaba: Our Take on 2QFY24
Asahi Group (2502 JP): US$1.3bn Secondary Placement

Pasona: The Wrong Price

By Travis Lundy

As discussed here in a piece about the Partial Tender Offer, Pasona Group (2168) has agreed to sell its controlling stake in Benefit One (2412) to M3 (2413).
That will leave Pasona Group with a fair chunk of cash and possibly a residual stake in Benefit One, depending on the results.
Though we don’t know what the future holds, Pasona now is the wrong price for its future.

STAR50 Index Rebalance Preview: Big Impact Expected on the Changes

By Brian Freitas

With the review period complete, we expect one change for the STAR50 INDEX in December if the index committee continues to use a 6-month minimum listing history.
With net inflows to mainland China ETFs over the last few months, passive trackers will need to trade between 9-25 days of ADV on the potential add and delete.
SMIC (688981 CH) will be capped and there will be reverse funding flows on the index constituents. One-way turnover is estimated at 1.8% resulting in a one-way trade of CNY2,580m.

Hina/IBC’s Non-Binding Proposal For VNET

By David Blennerhassett

Chinese Internet data center services provider 21Vianet Group (VNET US) has recently received a non-binding proposal letter from the Hina Group and Shanghai’s Industrial Bank Co.
The indicative Offer price is US$8.00/ADS, or ~US$1.3333 per ordinary share.
The Offer Price is utterly underwhelming. A successful outcome will more than likely find its way to the Cayman Court.

New Phase in Korean Short Selling: Immediate Impact of MM and LP Short Selling Ban

By Sanghyun Park

There is a prevailing sentiment in the local market that short selling by market makers (MM) and liquidity providers (LP) will effectively be prohibited very shortly.
The widening of the futures basis extends the influence of futures on the spot market prices. This is precisely where trading opportunities that we should be keenly observing may arise.
It also leads to a significant widening of ETF tracking errors due to the direct sell-off of underlying shares. We must capitalize on extreme spreads in ETFs.

Asahi Group Holdings (2502) Offering – Some Index Demand But Needs Lots of Active Long-Onlies

By Travis Lundy

Asahi Group Holdings (2502 JP) today announced a collection of 10 shareholders (mostly financial institutions) would sell a total of 33.48mm shares (6.6% of shares out) in Asahi Group.
This will become more of a thing going forward. Cross-holders “want” to unwind. And in many cases, the cross-held want to buy back stock (reduce E, raise ROE).
This deal is “good” in that it clears out a lot of the bank cross-holders in one fell swoop. But there are more crossholders behind.

Asahi Group (2502 JP): Big Placement with Limited Index Buying; Timing Is Key

By Brian Freitas

Nine shareholders are looking to sell 33.48m shares of Asahi Group Holdings (2502 JP). That is US$1.28bn, 24x ADV and 6.6% of shares outstanding.
Given the recent run up in the stock, there could be downside over the next couple of weeks ahead of the pricing date.
There will be buying from global trackers but nothing from TOPIX trackers, so not a lot of stock will be mopped up. Passive buying before settlement could create a squeeze.

Key Points We Should Know Regarding the Current Status of EOFlow

By Sanghyun Park

It can be considered that the suspension of EOFlow’s trading and, furthermore, the risk of delisting have been completely eliminated at this point.
EOFlow emphasizes the possibility of circumventing sales of EOPatch by supplying EOPump to a JV in China. The key factors that initially sparked Medtronic’s interest in EOFlow are still valid.
If CEO Kim fails to repay a stock collateral loan of ₩20B or secure additional loans, approximately 4% of the total issued shares could be sold in the market.

US Fed. Rtir’mt Thrift Board Changes Intl Benchmark, Excludes HK, US$1.6bn HK to Sell, $20bn 1-Way

By Travis Lundy

The Federal Retirement Thrift Investment Board which manages the four major funds in the Thrift Savings Plan for US federal government employees will change benchmark for its International Fund
This was announced on 14 November. The transition will take place “in 2024.” It entails moving from MSCI EAFE to MSCI All Country World ex-USA ex-China ex-HongKong Investable Market Index.
The explanation: double the countries, lots more stocks, BUT CHINA! This means selling ~US$1.6bn of HK stocks but US$20bn of one-way flow in total (lots of Japan/UK/Europe to sell)

Alibaba: Our Take on 2QFY24

By Oshadhi Kumarasiri

While Alibaba (ADR) (BABA US)‘s 2Q24 revenue and OP closely matched consensus expectations, the company experienced a significant sell-off, resulting in shares plummeting by over 9% yesterday.
Yesterday’s weak performance may be linked to a 10% pre-earnings price surge, anticipating robust results. The postponement of the Cloud Spin-off could also have contributed to the decline.
We maintain a bearish stance on Alibaba Group Holding (9988 HK) as we identify other fundamental and structural downside catalysts might become increasingly important and price-sensitive as time progresses.

Asahi Group (2502 JP): US$1.3bn Secondary Placement

By Arun George

Asahi Group Holdings (2502 JP) announced a pure secondary offering of 33.5 million or 6.61% of outstanding shares. At the last close, the placement was worth JPY194 billion (US$1.3 billion).
Notwithstanding Asahi’s explanation, the selling shareholders’ motivation for exiting their shareholding is likely to capitalise on the strong share price performance – Asahi shares are up 45% YTD.
Looking at recent large Japanese placements is instructive to understand the potential offer price. The pricing date will fall between 28 November and 1 December (likely 28 November).

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

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

Nov 18

Daily Brief Quantitative Analysis: Hong Kong Buybacks Weekly (Nov 17th): AIA and more

By Smartkarma Daily Briefs | Daily Briefs, Quantitative Analysis

In today’s briefing:

Hong Kong Buybacks Weekly (Nov 17th): AIA, United Energy, China Petroleum & Chemical

Hong Kong Buybacks Weekly (Nov 17th): AIA, United Energy, China Petroleum & Chemical

By Ke Yan, CFA, FRM

We analyze statistics on top repurchases over one week, one month, one quarter and one year periods ended on Nov 17th based on HKEx daily reports.
In the past 7 days, the top 3 companies repurchased the most shares from the market were AIA (1299 HK), United Energy (467 HK), China Petroleum & Chemical (386 HK).
In the past 30 days, the top 3 companies repurchased the most shares from the market were AIA (1299 HK), China Petroleum & Chemical (386 HK), Dongfeng Motor (489 HK).

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

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

Nov 18

Daily Brief Technical Analysis: Year-End Rally Underway; Many Bullish Reversals/False Breakdowns; Buys: Tech and more

By Smartkarma Daily Briefs | Daily Briefs, Technical Analysis

In today’s briefing:

Year-End Rally Underway; Many Bullish Reversals/False Breakdowns; Buys: Tech, Cons. Disc., RE, Steel

Year-End Rally Underway; Many Bullish Reversals/False Breakdowns; Buys: Tech, Cons. Disc., RE, Steel

By Joe Jasper

We believe there is significant evidence that global equities (MSCI ACWI) have bottomed, and a year-end rally has begun. Buys highlighted in global Technology, Discretionary, Real Estate, and Steel/Mining.
We discussed in our prior Int’l Compass (11/2/23) how the false breakdown in MSCI ACWI (local currency) was bullish, and a potent rally has ensued. We expect more upside ahead.
Now getting bullish 3+ month downtrend reversals and false breakdowns in the EURO STOXX 50, ACWI-US, MSCI ACWI ex-US (ACWX-US), MSCI EM (EEM-US), and EAFE (EFA-US). Major risk-on signals everywhere.

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

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

Nov 18

Daily Brief ESG: Another Catalyst for Expected Reduction in Policy Shareholdings and more

By Smartkarma Daily Briefs | Daily Briefs, ESG

In today’s briefing:

Another Catalyst for Expected Reduction in Policy Shareholdings
Iochpe-Maxion – ESG Report – Lucror Analytics

Another Catalyst for Expected Reduction in Policy Shareholdings

By Aki Matsumoto

Since Corporate Governance Code limits disclosures on climate change to prime market companies, it’ll encourage the transition from Prime to Standard market and discourage the transition from Sandard to Prime.
While it’ll be interesting to see how many years “Scope 3” disclosures will be mandatory, more attention will be paid to how companies uses the cash from reducing policy shareholdings.
Although the situation is different than it was in 2000 because few companies are underfunded, attention should be paid to whether retirement benefit trusts will become a refuge for policy-shareholdings.

Iochpe-Maxion – 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 Iochpe-Maxion’s ESG as “Adequate”, in line with its Environmental, Social and Governance scores. Controversies are “Immaterial” and Disclosure is “Strong”.

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

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

Nov 18

Daily Brief Thematic (Sector/Industry): Takeaways After Global Semi Equipment Model Updated and Our View on 2024/2025 and more

By Smartkarma Daily Briefs | Daily Briefs, Thematic (Sector/Industry)

In today’s briefing:

Takeaways After Global Semi Equipment Model Updated and Our View on 2024/2025
Alibaba, JD.com Report Double 11 Sales Growth
Japan Weekly | CPI Drives Yields Lower, Stocks Higher. New Activist Positions

Takeaways After Global Semi Equipment Model Updated and Our View on 2024/2025

By Andrew Lu

Takeaways: 1. Semi equipment vendors beat 4Q23E; 2. China and DRAM customers stronger ; 3. Margin stable due to lack of depreciation; 4. Top four controls over 90% of shares;
More takeaways: 5. Semi equipment companies’ share price performance should lag behind foundries, foundries should lag behind fabless customers; 6. China semi equipment vendors outperforming global peers on local replacement;
Estimating a flattish global semiconductor equipment sales growth for 2023 and 2024 but expecting a double digit y/y sales growth of 17% for 2025 and 10% for 2026.

Alibaba, JD.com Report Double 11 Sales Growth

By Caixin Global

China’s two biggest e-commerce companies reported higher sales from this year’s Double 11 shopping extravaganza, but kept tight-lipped about just how high, as they rolled out discount-heavy strategies to encourage reluctant consumers to spend.
Alibaba Group Holding Ltd. and JD.com Inc. had offered a slew of discounts to attract shoppers as the recovery in household consumption in the world’s second largest economy slowly gained momentum in recent months.
Alibaba said that both gross merchandise value (GMV) and order amount on Taobao and Tmall from Oct. 24 to Nov. 11 rose from the same period last year.

Japan Weekly | CPI Drives Yields Lower, Stocks Higher. New Activist Positions

By Mark Chadwick

Market Watch: U.S. CPI disappointment led to a sharp yield drop, boosting growth stocks; Nikkei rose for a third week, Topix up 26% YTD; Expect lower volatility next week
Major Movers: Benesse (+33%) on MBO, Benefit One (+28%) on sale to M3, Ebara (+17%) & Horiba (+15%) on positive results. Speculation that Tsuruha (+13%) is open to offers
Activist Watch: Dalton and Strategic Capital start new positions in Iwaki Pumps and Teraoka Seisakusho respectively

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

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

Nov 18

Daily Brief Credit: Weekly Wrap – 17 Nov 2023 and more

By Smartkarma Daily Briefs | Credit, Daily Briefs

In today’s briefing:

Weekly Wrap – 17 Nov 2023

Weekly Wrap – 17 Nov 2023

By Charles Macgregor

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:

and more…

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

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

Nov 18

Daily Brief ECM: Tata Technologies IPO – Parent and Peer Rally Helps and more

By Smartkarma Daily Briefs | Daily Briefs, ECM

In today’s briefing:

Tata Technologies IPO – Parent and Peer Rally Helps

Tata Technologies IPO – Parent and Peer Rally Helps

By Sumeet Singh

Tata Technologies (TT) is looking to raise around US$370m in its upcoming India IPO.
Tata Technologies is a global engineering services company offering product development and digital solutions, including turnkey solutions, to global original equipment manufacturers (OEMs) and their tier 1 suppliers.
In our previous note, we looked at the company’s past performance. In this note, we talk about valuations.

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

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

Smartkarma Daily Briefs

Recent Posts

SOLUTIONS

ABOUT

LEGAL

Contact

DOWNLOAD