Smartkarma Daily Briefs

J&T Global Express (1936374D CH) is looking to raise HK$3.92bn (US$501m) in its IPO by selling 326.55m shares at HK$12/share, valuing the company at HK$105.75bn (US$13.52bn).
J&T Global Express (1936374D CH) will not get Fast Entry to any indices but should be added to the HSCI in March. Inclusion to Southbound Stock Connect will take longer.
Inclusion in other indices will take longer with the highest probability of index inclusion in September 2024.

Alibaba (9988 HK): A Visit to Premier – Freshippo Begins to Try New Style Again

By Ming Lu

Freshippo opened its first high-end supermarket, Premier, in Shanghai in September.
We believe it is a good idea to take business from independent stores and small store chains.
However, we do not believe those foreigner-oriented foods will be popular.

J&T Global Express IPO – Team Effort for Some Heavy Lifting

By Sumeet Singh

J&T Global Express, a global logistics service provider, is looking to raise about US$500m in its Hong Kong IPO.
As per Frost & Sullivan (F&S), the firm is the leading express delivery business in Southeast Asia, with a 22.5% market share as per 2022 parcel volume.
We have looked at the company’s past performance and undertaken a peer comparison in our earlier notes. In this note, we talk about valuations.

Quiddity A/H Premium Tracker (To Oct13): Volatility Up Bigly, Wide Spreads Wider

The Brand-Spanking New (9 weeks old) A-H Monitor has tables, charts, measures galore to track A/H premium positioning, southbound and northbound positioning in pairs over time, etc.
We used to do it. We brought it back better, with lots of cool interactive tables, and charts, heat maps, and comparative data. And 50 Trade Recommendations.
The last 9 weeks (since the start of the new Trcker and Portfolio 8 weeks ago) have seen net portfolio performance of +0.50%, +1.35%, +0.14%, +0.47%, +0.15%, +0.12%, -0.29%, -0.71%.

J&T Global Express IPO: Valuation Insights

J&T Global Express (1519 HK), a leading express delivery business in Southeast Asia and China, has launched a HKEx IPO to raise US$500 million at a fixed price of HK$12.00.
We previously discussed the IPO in J&T Global Express IPO: The Bull Case, J&T Global Express IPO: The Bear Case and J&T Global Express IPO: Updates Tilts the Balance Positively.
The IPO price range is unattractive, with our SoTP valuation of HK$10.75 per share, 10% below the IPO price. Therefore, we would pass on the IPO.

Cainiao Pre-IPO – Peer Comparison

By Sumeet Singh

Cainiao Smart Logistics, Alibaba (9988 HK)’s logistics linked arm, is planning to raise at least US$1bn in its Hong Kong IPO.
Cainiao is the largest provider of cross-border e-commerce logistics services globally and a leader in China logistics services, according to CIC.
In our previous note we looked at the company’s past performance, in this note we will undertake a peer comparison.

Asymchem Laboratories (6821.HK/002821.CH) – A Heartening Rise in Share Price Could Be Drawing Near

By Xinyao (Criss) Wang

CDMO business usually have higher certainty/profit margin, and would be affected by the deterioration of overseas financing environment much later than CRO business. So, we prefer Asymchem to WuXi AppTec.
Total market size of GLP-1s could exceed the sum of semaglutide + the vast majority of chronic disease drugs.No matter how GLP-1s expand indications, Asymchem has the opportunity to benefit.
Asymchem needs to secure a large order related to GLP-1 drugs. Such big catalyst would certainly boost stock price, just like when COVID-19 order was received in November 2021.

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Oct 17

Daily Brief Macro: Steno Signals #69 – The recession playbook and more

By Smartkarma Daily Briefs | Daily Briefs, Macro

In today’s briefing:

Steno Signals #69 – The recession playbook
Positioning Watch: Seeking Shelter in the Fog of War
The Week That Was in ASEAN@Smartkarma – GoTo Initiatives, Ramayana Lestari, and Indonesia Strategy.
Macro Nugget: Is the UK Prepared for the Winter?
Labor Watch – Running through the anomalies in the labor market

Steno Signals #69 – The recession playbook

By Andreas Steno

We have now formalized our recession call for Q1-2024 (in the US) as we have patiently waited all year and called for better than feared performance in the US economy.
Interestingly, we see a diverging path for Manufacturing and Services ahead short-term, which will likely wrongfoot many economists and traders.
Manufacturing is currently restocking, while services are on the decline.

Positioning Watch: Seeking Shelter in the Fog of War

By Emil Moller

Chinese stimulus, US CPI, and Gaza Bombardment now likely turning into a land invasion.
Plenty of events to digest in the scope of one week! Which of course leaves us with the question we attempt to answer every Saturday: How are markets positioned?
But before diving into that, we think it prudent to act with some context to the nature of the situation that markets have to digest

The Week That Was in ASEAN@Smartkarma – GoTo Initiatives, Ramayana Lestari, and Indonesia Strategy.

By Angus Mackintosh

The past week saw insights on GoTo Gojek Tokopedia (GOTO IJ), Ramayana Lestari Sentosa (RALS IJ), Pakuwon Jati (PWON IJ), CP FOODS (CPF TB), and Thai Credit Bank IPO.
The was also a strategy piece on Indonesia as the pre-election jostling heats up and a macro insight on Thailand after the new PM’s maiden policy speech, which was underwhelming.
The Week That Was in ASEAN@Smartkarma is filled with an eclectic mix of differentiated, substantive, and actionable insights, macro and equity bottom-up, from across Southeast Asia.

Macro Nugget: Is the UK Prepared for the Winter?

By Emil Moller

We have recently witnessed a minor surprise in both Swedish and US inflation rates.
With the UK next in line, it seems appropriate to take a brief look at the state of the UK economy.
To put it bluntly, there’s no easy way to spin it—things are looking rather bleak.

Labor Watch – Running through the anomalies in the labor market

By Andreas Steno

The last NFP report caught markets’ attention with payroll data beating expectations massively on the upside, shuffling Fed pricing and showcasing a labor market that is far from done.
The labor market is not exactly the easiest part of the economy to grasp, as you need to aggregate multiple different surveys and data points from different sources, which sometimes can diverge greatly from each other, leaving us with the job of pointing out the correct data from the other.
We’ll try our best to do that today.

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Oct 16

Daily Brief Financials: Wells Fargo & Co, China Jinmao Holdings and more

By Smartkarma Daily Briefs | Daily Briefs, Financials

In today’s briefing:

WFC – Net Interest Income +8% YoY Vs +29% | CRE Non-Accruals +54% QoQ, +4.5x YoY | NIM -17bps in 6M
Morning Views Asia: Anton Oilfield, China Jinmao Holdings, Pan Brothers, Tata Motors ADR

WFC – Net Interest Income +8% YoY Vs +29% | CRE Non-Accruals +54% QoQ, +4.5x YoY | NIM -17bps in 6M

By Daniel Tabbush

WFC is seeing net interest income growth rate decelerate sharply from 29% YoY in 2Q23 to 8% YoY in 3Q23. Its deposit costs rose from 23bps to 192bps YoY
CRE NCO’s rose to USD93m in 3Q23 from reversals in 3Q22. Its CRE non-accruals rose to USD3,863m in 3Q23, vs USD2,507m in 2Q23, vs USD853m in 3Q22
Mortgage, Auto, CRE loans are down QoQ and YoY. C&I loans, its largest loan bucket are down 0.9% QoQ. Total gross loans declined USD5.5bn QoQ, now down USD13bn from peak.

Morning Views Asia: Anton Oilfield, China Jinmao Holdings, Pan Brothers, Tata Motors ADR

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.

Anton Oilfield
China Jinmao Holdings
Pan Brothers
Tata Motors ADR

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Oct 16

Daily Brief Industrials: Hanwha Ocean, Nws Holdings, J&T Global Express, Ushio Inc and more

By Smartkarma Daily Briefs | Daily Briefs, Industrials

In today’s briefing:

Trading Angles Using Severely Backwardated Hanwha Ocean’s SSFs Ahead of the Rights Trading
Merger Arb Mondays (16 Oct) – NWS, Haitong Intl, Eoflow, Liontown, Origin Energy, Estia, Pact, JSR
J&T Global Express Pre-IPO, Part 6 | How We Could Potentially Get Closer To US$13 Bn Valuation
Ushio (6925 JP): Preparing for the Next Growth Cycle

Trading Angles Using Severely Backwardated Hanwha Ocean’s SSFs Ahead of the Rights Trading

By Sanghyun Park

First, we can take on some risk and build up a short position using SSFs from now, aiming for an aggressively low price (likely Day 1) during the rights trading.
If this approach seems somewhat risky, the second is to wait until the rights trading and, although accepting some sacrifice in the spread, build positions relatively risk-free.
We can also actively build up a long position in the significantly backwardated SSFs from now and, instead, set up an aggressive short on the underlying shares.

Merger Arb Mondays (16 Oct) – NWS, Haitong Intl, Eoflow, Liontown, Origin Energy, Estia, Pact, JSR

We summarise the latest spreads and newsflow of merger arb situations we cover across Hong Kong, Australia, New Zealand, Singapore, Japan, Indonesia, Malaysia, Philippines, Thailand and Chinese ADRs.
Highest spreads – 111 Inc (YI US), Eoflow (294090 KS), Hollysys Automation Technologies (HOLI US), Haitong International Securities Group (665 HK), Orecorp Ltd (ORR AU), Liontown Resources (LTR AU).
Owest spreads Yaizu Suisankagaku Industry (2812 JP), Healius (HLS AU), Pact Group Holdings (PGH AU), Origin Energy (ORG AU), T&K Toka Co Ltd (4636 JP), Healthway Medical Corp (HMED SP).

J&T Global Express Pre-IPO, Part 6 | How We Could Potentially Get Closer To US$13 Bn Valuation

By Daniel Hellberg

In this insight we consider what it would take to pull our valuation up closer to US$13 bn
Such a valuation would require solid revenue growth (+17-18% Y/Y or better), plus sustained progress on raising China and ‘Other’ EBITDA margins, which are currently negative
Even with these optimistic assumptions, J&T would trade at 20x EV/2025 Adj EBITDA & at historical EV/Revenue multiples far above more profitable Chinese express names

Ushio (6925 JP): Preparing for the Next Growth Cycle

By Scott Foster

Ushio is making substantial investments in it core light source technologies, sacrificing short term profit for long-term growth potential.
Geared to rising demand for EUV mask and IC package lithography, bio-medical equipment, and solid-state light sources. Digital cinema business rebounding from COVID.
Selling at 21x current EPS guidance, 12x management’s FY Mar-26 EPS target and 0.9x book value. Upside potential to book value while waiting for confirmation of forecast recovery.

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Oct 16

Daily Brief Energy/Materials: Boss Resources, EcoPro Materials and more

By Smartkarma Daily Briefs | Daily Briefs, Energy & Materials Sector

In today’s briefing:

S&P/ASX200 Index Ad Hoc Rebalance Preview: Replacement for Invocare (IVC)
EcoPro Materials IPO: Valuation Insights

S&P/ASX200 Index Ad Hoc Rebalance Preview: Replacement for Invocare (IVC)

Light & Wonder (LNW AU) will replace United Malt Group Ltd (UMG AU) in the S&P/ASX 200 (AS51 INDEX) at the close on 17 October.
Invocare Ltd (IVC AU) is expected to stop trading after the close on 3 November and Boss Resources (BOE AU) is best placed to be the replacement.
There are stocks that are close on the heels of Boss Resources (BOE AU) and will compete for a place. Two of those could be added at the December rebalance.

EcoPro Materials IPO: Valuation Insights

EcoPro Materials (ECO123 KS) is a leading player in the electrode material industry. It is seeking to raise up to US$470 million in a KRX IPO.
We previously discussed the IPO in EcoPro Materials IPO: The Bull Case and EcoPro Materials IPO: The Bear Case.
In this note, we look at the syndicate’s valuation methodology. Our valuation analysis suggests that the IPO price range is unattractive, and we would pass on the IPO.

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Oct 16

Daily Brief Industrials: Hanwha Ocean, Nws Holdings, J&T Global Express, Ushio Inc and more

By Smartkarma Daily Briefs | Daily Briefs, Industrials

In today’s briefing:

Trading Angles Using Severely Backwardated Hanwha Ocean’s SSFs Ahead of the Rights Trading
Merger Arb Mondays (16 Oct) – NWS, Haitong Intl, Eoflow, Liontown, Origin Energy, Estia, Pact, JSR
J&T Global Express Pre-IPO, Part 6 | How We Could Potentially Get Closer To US$13 Bn Valuation
Ushio (6925 JP): Preparing for the Next Growth Cycle

Trading Angles Using Severely Backwardated Hanwha Ocean’s SSFs Ahead of the Rights Trading

By Sanghyun Park

First, we can take on some risk and build up a short position using SSFs from now, aiming for an aggressively low price (likely Day 1) during the rights trading.
If this approach seems somewhat risky, the second is to wait until the rights trading and, although accepting some sacrifice in the spread, build positions relatively risk-free.
We can also actively build up a long position in the significantly backwardated SSFs from now and, instead, set up an aggressive short on the underlying shares.

Merger Arb Mondays (16 Oct) – NWS, Haitong Intl, Eoflow, Liontown, Origin Energy, Estia, Pact, JSR

By Shifara Samsudeen, ACMA, CGMA

We summarise the latest spreads and newsflow of merger arb situations we cover across Hong Kong, Australia, New Zealand, Singapore, Japan, Indonesia, Malaysia, Philippines, Thailand and Chinese ADRs.
Highest spreads – 111 Inc (YI US), Eoflow (294090 KS), Hollysys Automation Technologies (HOLI US), Haitong International Securities Group (665 HK), Orecorp Ltd (ORR AU), Liontown Resources (LTR AU).
Owest spreads Yaizu Suisankagaku Industry (2812 JP), Healius (HLS AU), Pact Group Holdings (PGH AU), Origin Energy (ORG AU), T&K Toka Co Ltd (4636 JP), Healthway Medical Corp (HMED SP).

J&T Global Express Pre-IPO, Part 6 | How We Could Potentially Get Closer To US$13 Bn Valuation

By Daniel Hellberg

In this insight we consider what it would take to pull our valuation up closer to US$13 bn
Such a valuation would require solid revenue growth (+17-18% Y/Y or better), plus sustained progress on raising China and ‘Other’ EBITDA margins, which are currently negative
Even with these optimistic assumptions, J&T would trade at 20x EV/2025 Adj EBITDA & at historical EV/Revenue multiples far above more profitable Chinese express names

Ushio (6925 JP): Preparing for the Next Growth Cycle

By Scott Foster

Ushio is making substantial investments in it core light source technologies, sacrificing short term profit for long-term growth potential.
Geared to rising demand for EUV mask and IC package lithography, bio-medical equipment, and solid-state light sources. Digital cinema business rebounding from COVID.
Selling at 21x current EPS guidance, 12x management’s FY Mar-26 EPS target and 0.9x book value. Upside potential to book value while waiting for confirmation of forecast recovery.

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Oct 16

Daily Brief TMT/Internet: Money Forward , Nanya Technology and more

By Smartkarma Daily Briefs | Daily Briefs, TMT/Internet

In today’s briefing:

Money Forward: Weakening Top Line Growth and Huge Convertible Bond Issuance to Support Growth
Nanya Tech: Sharply Worse Margin Performance Than Micron & SK Hynix, But Supports Memory Recovery

Money Forward: Weakening Top Line Growth and Huge Convertible Bond Issuance to Support Growth

Money Forward (3994 JP) reported 3QFY11/2023 results on Friday. 3Q revenue fell below consensus despite increasing 37.4% YoY while reported operating losses were slightly below consensus estimated operating losses.
MF also has provided more details on its ¥12bn convertible bond issuance in August to secure funds to further grow its SaaS and fintech businesses.
This is concerning given the huge debt in the company’s balance sheet and it seems that the company may not be able to make profits in the near-term.

Nanya Tech: Sharply Worse Margin Performance Than Micron & SK Hynix, But Supports Memory Recovery

By Vincent Fernando, CFA

Nanya Technology’s results missed expectations last week, showing a sharp decline in margin, underperforming the recent results performance of Micron & SK Hynix.
The company was more conservative on a pricing recovery outlook for its memory ASPs than Micron & SK, due to lacking DDR5 DRAM products and lacking High Bandwith Memory DRAM.
Nevertheless the company is cautiously reporting an improving environment and improved customer inventory levels, hence we believe the result still implies an improving memory industry pricing environment into year end.

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Oct 16

Daily Brief Health Care: Eoflow , TSE Tokyo Price Index TOPIX and more

By Smartkarma Daily Briefs | Daily Briefs, Healthcare

In today’s briefing:

EOFLOW/Medtronic Tender: Pretrial Timetable and Latest Court Filings
Return Targets and Use of Cash Should Be Disclosed Together with Cost of Capital

EOFLOW/Medtronic Tender: Pretrial Timetable and Latest Court Filings

Latest filings on Insulet Corp (PODD US)’s voluntary dismissal without prejudice only to Flex (FLEX US), Eoflow (294090 KS)’s motion to restart Korean sales, dismiss a count and a timetable.
Examining the court filings suggests Medtronic Plc (MDT US)’s access to court unredacted documents is restricted. Medtronic’s limited access makes evaluating the transaction’s potential litigation risk challenging.
Eoflow’s defence in the court documents is based on reverse engineering and procedural arguments. The KRX will rule on Eoflow’s share trading suspension by 1 November.

Return Targets and Use of Cash Should Be Disclosed Together with Cost of Capital

By Aki Matsumoto

Cash usage and return targets should be presented to investors along with cost of capital, but few companies can successfully envision future design due to poor planning for growth investments.
Since there’s a significant positive correlation between ROE+DOE and TOPIX, the company should optimize its cash allocation by demonstrating enhanced shareholder returns until it can design a growth investment plan.
Ajinomoto, which provided cost of capital projections and ROIC targets by business segment, should be commended for its constant communication with investors seeking better disclosure in good times and bad.

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Oct 16

Most Read: Liontown Resources, Allkem Ltd, CyberAgent Inc, Japan Post Bank, Eoflow , Tsi Holdings, Boss Resources, Light & Wonder and more

By Smartkarma Daily Briefs | Daily Briefs, Most Read

In today’s briefing:

Liontown Resources (LTR AU): Passive Selling on Lower Float
Liontown Warms To Albemarle’s Bump
Allkem/Livent (AKE AU | LTHM US) Merger Update: MUCH More Than Meets The Eye
Japan – Increase in Shorts on Some Interesting* Stocks
Index Rebalance & ETF Flow Recap: HSCEI, HSTECH, TOPIX FFW, SSE50, AS51, ChiNext, Kenedix, Liontown
Last Week In Event SPACE: EOFlow, Fast Retailing, JMDC, Origin Energy
EOFLOW/Medtronic Tender: Pretrial Timetable and Latest Court Filings
TSI Holdings (3608) – Yet Another Big Buyback; Still Good, Still Cheap, Now W/ Engagement Investors
S&P/ASX200 Index Ad Hoc Rebalance Preview: Replacement for Invocare (IVC)
Light & Wonder CDIs Replace United Malts in ASX200 – Be Careful Is All I Can Say

Liontown Resources (LTR AU): Passive Selling on Lower Float

Liontown Resources (LTR AU) is trading near A$3/share, the level of Albemarle Corp (ALB US)‘s revised offer and where Hancock Prospecting has been buying recently.
With Hancock Prospecting accumulating a stake of nearly 17% over the last month, there will be a float reduction for Liontown Resources (LTR AU) in the next few months.
Short interest has been increasing and the passive selling could provide an exit for the shorts. But Hancock Prospecting could also use the opportunity to buy more Liontown Resources stock.

Liontown Warms To Albemarle’s Bump

By David Blennerhassett

Back on the 28 March, Liontown Resources (LTR AU) rejected the third proposal of $2.50/share from Albemarle (ALB US), the world’s largest lithium producer, citing terms were opportunistic.
Then everything went quiet. There appeared to be an interested party building a stake ~$2.75/share, but nothing concrete emerged.
Now Albemarle has returned with a revised indicative proposal of $3.00/share – best and final. Due diligence has been granted. The board is supportive if terms are firmed.

Allkem/Livent (AKE AU | LTHM US) Merger Update: MUCH More Than Meets The Eye

The Allkem/Livent “merger of equals” discussed in Allkem/Livent (AKE AU | LTHM US) Merger Of Lithium Equals Has Index Surprises and Allkem/Livent: Enlarged Charging Unit is on track.
As of the end of last month, all approvals are received or are expected to be received. The Scheme Booklet is expected next month. Deal is expected to close end-CY2023.
The deal STILL has interesting side issues with index. Even more interesting than Newcrest/Newmont. This is an update with more detail as we probably have 8-10 weeks left.

Japan – Increase in Shorts on Some Interesting* Stocks

CyberAgent, Lixil Group, Hakuhodo Dy Holdings, Kobayashi Pharmaceutical, Welcia Holdings, Persol Holdings, GMO Payment Gateway, Kurita Water Industries and Open House have all underperformed the Nikkei 225 over the recent past.
The underperformance could lead to adjustments in global passive portfolios and liquidity events on some of the stocks.
Short interest has increased on some stocks and there could be more pre-positioning to come over the next few weeks.

Index Rebalance & ETF Flow Recap: HSCEI, HSTECH, TOPIX FFW, SSE50, AS51, ChiNext, Kenedix, Liontown

An ad hoc S&P/ASX 200 (AS51 INDEX) rebalance will be implemented at the close on 17 October with Light & Wonder (LNW AU) replacing United Malt Group Ltd (UMG AU).
The rebalances of Wisdomtree Emerging Markets (DEM US), Wisdomtree Em Small Cap (DGS US) and Wisdmtree Emerg Mkt Ex-St Ow (XSOE US) will be implemented on 18 October.
There were net outflows from onshore China ETFs with inflows to larger cap ETFs and outflows mainly from the CSI Smallcap 500 Index and CSI 1000 Index trackers.

Last Week In Event SPACE: EOFlow, Fast Retailing, JMDC, Origin Energy

By David Blennerhassett

Should the nominated directors, to be voted on by EOFlow (294090 KS)‘s shareholders at the November EGM, include Medtronic Plc (MDT US) executives, then game on.
Fast Retailing (9983 JP) STILL has a Nikkei 225 problem, which means it probably has to underperform Nikkei 225 slightly between now and the Base Date (31 July 2024).
JMDC (4483 JP) has been one of the more annoying partial tenders out there. Even post-facto, it is tough to know what the disposition was. This is extraordinarily vexing.

EOFLOW/Medtronic Tender: Pretrial Timetable and Latest Court Filings

Latest filings on Insulet Corp (PODD US)’s voluntary dismissal without prejudice only to Flex (FLEX US), Eoflow (294090 KS)’s motion to restart Korean sales, dismiss a count and a timetable.
Examining the court filings suggests Medtronic Plc (MDT US)’s access to court unredacted documents is restricted. Medtronic’s limited access makes evaluating the transaction’s potential litigation risk challenging.
Eoflow’s defence in the court documents is based on reverse engineering and procedural arguments. The KRX will rule on Eoflow’s share trading suspension by 1 November.

TSI Holdings (3608) – Yet Another Big Buyback; Still Good, Still Cheap, Now W/ Engagement Investors

In April 2022, I wrote about Tsi Holdings (3608 JP) saying in the first three bullet points it could double in two years. It doubled in one.
They bought back shares held by JDB in April 2022, then they launched another buyback program in January 2023, and completed it last month.
Now they have launched another to buy back 8.46% with a ToSTNeT-3 for half on Monday AM. The rest is expected on market through end-March 2024.

S&P/ASX200 Index Ad Hoc Rebalance Preview: Replacement for Invocare (IVC)

Light & Wonder (LNW AU) will replace United Malt Group Ltd (UMG AU) in the S&P/ASX 200 (AS51 INDEX) at the close on 17 October.
Invocare Ltd (IVC AU) is expected to stop trading after the close on 3 November and Boss Resources (BOE AU) is best placed to be the replacement.
There are stocks that are close on the heels of Boss Resources (BOE AU) and will compete for a place. Two of those could be added at the December rebalance.

Light & Wonder CDIs Replace United Malts in ASX200 – Be Careful Is All I Can Say

Post-Close Friday it was announced that Light & Wonder (LNW AU) Chess Depositary Interests would replace United Malt Group Ltd (UMG AU) at the close on 17 October.
This was announced before US markets opened. Light & Wonder (LNW US) shares popped 5.65%, closing 5.8% through the Aussie line.
This is a possibly deceptive index add. I’d be quite careful.

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Oct 16

Daily Brief Consumer: CyberAgent Inc, Tsi Holdings, Light & Wonder , Ramayana Lestari Sentosa, Sa Sa International Hldgs, Aeon Co Ltd and more

By Smartkarma Daily Briefs | Consumer, Daily Briefs

In today’s briefing:

Japan – Increase in Shorts on Some Interesting* Stocks
TSI Holdings (3608) – Yet Another Big Buyback; Still Good, Still Cheap, Now W/ Engagement Investors
Light & Wonder CDIs Replace United Malts in ASX200 – Be Careful Is All I Can Say
Ramayana Lestari Sentosa (RALS IJ) -A Challenging Transformation Process
Sa Sa Intl (178 HK): Revival Well on Track
Aeon Keeps Working After High Profit Growth

Japan – Increase in Shorts on Some Interesting* Stocks

CyberAgent, Lixil Group, Hakuhodo Dy Holdings, Kobayashi Pharmaceutical, Welcia Holdings, Persol Holdings, GMO Payment Gateway, Kurita Water Industries and Open House have all underperformed the Nikkei 225 over the recent past.
The underperformance could lead to adjustments in global passive portfolios and liquidity events on some of the stocks.
Short interest has increased on some stocks and there could be more pre-positioning to come over the next few weeks.

TSI Holdings (3608) – Yet Another Big Buyback; Still Good, Still Cheap, Now W/ Engagement Investors

In April 2022, I wrote about Tsi Holdings (3608 JP) saying in the first three bullet points it could double in two years. It doubled in one.
They bought back shares held by JDB in April 2022, then they launched another buyback program in January 2023, and completed it last month.
Now they have launched another to buy back 8.46% with a ToSTNeT-3 for half on Monday AM. The rest is expected on market through end-March 2024.

Light & Wonder CDIs Replace United Malts in ASX200 – Be Careful Is All I Can Say