All Posts By

Smartkarma Daily Briefs

Aug 30
0

Daily Brief Indonesia: Ultrajaya Milk and more

By | Daily Briefs, Indonesia

In today’s briefing:

  • Ultrajaya Milk (ULTJ IJ) – Back on Track with Dairy and Tea

Ultrajaya Milk (ULTJ IJ) – Back on Track with Dairy and Tea

By Angus Mackintosh

  • Ultrajaya Milk (ULTJ IJ) remains a core proxy for the under-penetration of dairy products in Indonesia, which stands at less than half of Thailand in terms of per capita consumption.
  • Ultrajaya has seen a strong rebound in sales this year for its UHT milk sales but material pressure persisted in 1H2023 but will abate in 2H2023 improving margins.  
  • Its carton tea products are seeing a strong rebound and a new distribution warehouse in Cikarang will improve distribution. Ultrajaya‘s growth trajectory is resuming and valuations are attractive. 

💡 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


Aug 30
0

Daily Brief Singapore: Solar AI Technologies and more

By | Daily Briefs, Singapore

In today’s briefing:

  • Singapore’s Rent-To-Own Solar Startup Solar AI Bags US$1.5M Seed Financing

Singapore’s Rent-To-Own Solar Startup Solar AI Bags US$1.5M Seed Financing

By e27

  • Singapore-based solar-as-a-service startup Solar AI Technologies has secured US$1.5 million in a seed funding round led by Earth Venture Capital with participation from Undivided Ventures, Investible, and climate-tech angel investor David Pardo.
  • The funds will primarily be used to upscale its rent-to-own (RTO) solar programme in the island nation before embarking on regional expansion in the next 12 months.
  • Started in 2020 by Chew (CEO), Gérald Chablowski (CTO), and Luke Ong, Solar AI seeks to make rooftop solar accessible and hassle-free for smaller, underserved property owners by providing them with zero upfront cost.

💡 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


Aug 30
0

Daily Brief South Korea: Posco Future M, Doosan Robotics, Zeus Co Ltd and more

By | Daily Briefs, South Korea

In today’s briefing:

  • Korea’s First Sector Inverse ETF: Discussing Flow Trading Impacts
  • Doosan Robotics IPO: The Bull Case
  • Zeus Co: Listing of JET Co Japanese Subsidiary and NAV Valuation
  • Zeus Co (079370 KS): Is J.E.T.’s Spin-Off Priced In?
  • Doosan Robotics IPO – Peer Comparison – Has Niche Offerings but Doesn’t Lack Competition

Korea’s First Sector Inverse ETF: Discussing Flow Trading Impacts

By Sanghyun Park

  • KB Asset Management has announced the release of an inverse ETF, containing the top 10 core stocks in the secondary battery sector.
  • Given the substantial fluctuations in SSF trading volume in Korea, the flow increase of this ETF might temporarily lead to an unusually high level of backwardation.
  • Also, we may observe a phenomenon known as ‘wag-the-dog’ as the flow of this inverse ETF could act as a triggering factor for a temporary spark.

Doosan Robotics IPO: The Bull Case

By Arun George

  • Doosan Robotics (DOOSANROBO KS) is a global industrial and collaborative robotics leader. It has opened the books on an up to US$318 million IPO.   
  • The international bookbuilding will run from 28 August to 15 September, while the domestic book will be open from 11 to 15 September. Pricing will be announced on 19 September.
  • The bull case rests on the market share gains, rapid forecasted growth, the industry’s largest product lineup, rapid expansion in sales channels and key accounts growth.

Zeus Co: Listing of JET Co Japanese Subsidiary and NAV Valuation

By Douglas Kim

  • Our NAV valuation of Zeus Co suggests an implied price target of 32,991 won, which is 13% lower than current share price. 
  • Given the lack of upside, we would avoid Zeus shares at current prices.
  • Currently, JET Co is listed on Tokyo PRO Market Exchange. JET Co is expected to switch its listing to the Tokyo Standard Market Exchange. 

Zeus Co (079370 KS): Is J.E.T.’s Spin-Off Priced In?

By David Blennerhassett

  • Zeus Co Ltd (079370 KS), a maker of semiconductor equipment, flat panel display equipment, and facility automation solutions, intends to spin off 95%-held J.E.T. Co (6228 JP) next month.
  • J.E.T., a  semiconductor etching equipment play, will list on the 25 September. Pricing is expected around the 5 September. 
  • Zeus’ share price has fallen 33% in the past month. That may be justified. 

Doosan Robotics IPO – Peer Comparison – Has Niche Offerings but Doesn’t Lack Competition

By Ethan Aw

  • Doosan Robotics (DOOSANROBO KS) is looking to raise up to US$314m in its Korean IPO. 
  • Doosan Robotics (DR) manufactures and sells collaborative robots (Cobots). The firm’s product portfolio primarily includes different series of robot arms as well as its coffee module. 
  • In our previous notes, we talked about the company’s past performance. In this note, we undertake a peer comparison.

💡 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


Aug 30
0

Daily Brief China: Prosus NV, East Buy Holding , Sinopharm Group Co Ltd H, PDD Holdings , Shougang Fushan Resources, Chongqing Hongjiu Fruit , Hang Seng Index, Wuliangye Yibin Co Ltd A, ZTO Express Cayman , Shenzhen International and more

By | China, Daily Briefs

In today’s briefing:

  • Prosus/Naspers – The ουροβóρος Is Dead! Long Live The Ouroboros!
  • Final Hang Seng Index Flows for 1 Sep Rebal (AAC, EastBuy, BABA, Sinopharm, Trip.com)
  • HSI, HSCEI, HSTECH: Rebalance Flows Post Capping (Sep 2023)
  • Pinduoduo (PDD): 2Q23, Revenue Significantly Higher Than Consensus, Buy
  • Shougang Fushan Resources (639 HK): Partial Offer Is Unconditional
  • Chongqing Hongjiu Fruit Lockup Expiry – Price Has Come Back Down to Earth but Expect More Selling
  • EQD | Hang Seng Index (HSI) WEEKLY Weak Bounce: Resistance Analysis
  • Wuliangye (000858 CH):  Classic Value Trap
  • ZTO Express Q2 Results: Strong on Volume | Weak on Price | Margins Up in Q2, But H2 Much Tougher
  • Shenzhen Intl (152 HK): Brighter Outlook in 2H23 Not to Be Overlooked

Prosus/Naspers – The ουροβóρος Is Dead! Long Live The Ouroboros!

By Travis Lundy

  • Shareholders of Prosus NV (PRX NA) and Naspers (NPN SJ) approved AGM agenda items late last week to enable the two Capitalisation Issues and Naspers’ Share Consolidation to move forward.
  • What Will Happen: Prosus will issue new N shares to its shareholders and Naspers will reject them. Naspers will issue new shares to its shareholders, and Prosus will reject them.
  • Naspers will own ~42.9% of Prosus, Prosus will own 0.02% of Naspers. Sales of Tencent shares will continue. Share Buybacks too. But the ouroboros will have spit out its tail. 

Final Hang Seng Index Flows for 1 Sep Rebal (AAC, EastBuy, BABA, Sinopharm, Trip.com)

By Travis Lundy

  • The Hang Seng announces changes along with prospective flows 2wks before the actual change. Capping flows are calculated off the close three days before implementation. That was today.
  • There have been some minor movements in the rankings. Nothing major. There is still just over US$1bn to trade, one-way.
  • Enclosed are totals for each of the three major indices (Hang Seng, HSCEI, and HS Tech) and then netted flows. The biggest is US$470mm of BABA to sell. Spreadsheet attached.

HSI, HSCEI, HSTECH: Rebalance Flows Post Capping (Sep 2023)

By Brian Freitas

Pinduoduo (PDD): 2Q23, Revenue Significantly Higher Than Consensus, Buy

By Ming Lu

  • PDD’s revenue increased by 66% YoY to RMB52 bn, significantly higher than the market consensus RMB43 bn.
  • The operating margin declined to 24% in 2Q23 from 28% in 2Q22 due to aggressive expansion outside China.
  • We believe the stock still has an upside of 47% for year end 2023. Buy.

Shougang Fushan Resources (639 HK): Partial Offer Is Unconditional

By Arun George

  • Shougang Fushan Resources (639 HK) shareholders approved the partial offer to acquire a maximum of 125.0 million shares (2.47% of outstanding shares) at HK$2.40 per share and the whitewash waiver.
  • The partial offer is now unconditional and will close on 12 September. Considering the irrevocables not to tender, a 100% minority participation rate implies a minimum proration of 2.98%.
  • If the partial offer’s acceptance rate mirrors today’s general meeting minorities participation rate of 63.6%, it would imply a minimum proration of 4.69%. 

Chongqing Hongjiu Fruit Lockup Expiry – Price Has Come Back Down to Earth but Expect More Selling

By Ethan Aw

  • Chongqing Hongjiu Fruit (6689 HK) was listed on 5th Sep 2022, where it raised around US$71m in its Hong Kong IPO. Its one-year lockup will expire on 4th Sep 2023. 
  • Chongqing Hongjiu Fruit (CHJF) is a multi-brand fresh fruit distributor in China with an end-to-end supply chain. As per CIC, it was the largest fruit distributor by revenue in 2022. 
  • In this note, we will talk about the lock-up dynamics and updates since our last note.

EQD | Hang Seng Index (HSI) WEEKLY Weak Bounce: Resistance Analysis

By Nico Rosti

  • HSI reversal was overdue, but the bounce looks weak: so far it did not even reach Q1 resistance on week 1 and on week 2 (current).
  • Resistance level to watch where the current bounce could end is 18874, or any price around that area at Close, at the end of this week. High probability SHORT.
  • If some unexpected catalyst pushes the index to rally, look for resistance at 19459 on week 3, we think this won’t happen but a tail is always possible.

Wuliangye (000858 CH):  Classic Value Trap

By Steve Zhou, CFA

  • Wuliangye Yibin Co Ltd A (000858 CH), the second largest Chinese liquor company in China, trades at one of the lowest PE multiples in the space. 
  • Kweichow Moutai (600519 CH), the largest Chinese liquor company trades at 26x 2024 expected earnings, and most other listed Chinese liquor names trade above 20x 2024 expected earnings.
  • Upon closer look, Wuliangye is actually a classic case of value trap – slow growth with no change or slowly deteriorating PE multiples. 

ZTO Express Q2 Results: Strong on Volume | Weak on Price | Margins Up in Q2, But H2 Much Tougher

By Daniel Hellberg

  • Solid Q2 results from ZTO, with deep unit cost reductions offseting weak pricing
  • But ultimately, Q2/H1 results are merely in-line with guidance — not better, nor worse
  • In this environment, it’s difficult to see what will move ZTO out of recent trading range

Shenzhen Intl (152 HK): Brighter Outlook in 2H23 Not to Be Overlooked

By Osbert Tang, CFA

  • Poor 1H23 result at Shenzhen International (152 HK) should have been anticipated, and we believe there is good room for sharp earnings improvement in 2H23.
  • Completion of logistics projects, more asset value realisation (through REIT and private equity funds), contribution from Yicheng Qiwanli and lower finance costs should underpin outlook.
  • SZI is an asset play with significant upside and this is reflected in the undemanding 0.42x P/B. Against its historical average of 0.67x, such a level is almost -2SD below. 

💡 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


Aug 30
0

Daily Brief United States: VNG (VinaGame), First Trust Dj Internet Ind and more

By | Daily Briefs, United States

In today’s briefing:

  • VNG Pre-IPO – The Positives – Vietnam’s Mini-Tencent
  • VNG Pre-IPO – The Negatives – Vietnam’s Mini-Tencent
  • Oversold Bounce Underway Amid Consolidation Phase; Buys in IT Consulting, Uranium, Technology

VNG Pre-IPO – The Positives – Vietnam’s Mini-Tencent

By Sumeet Singh

  • Vng (VNG US), Vietnam’s leading internet platform, aims to raise up to US$300m in its US IPO.
  • VNG is Vietnam’s leading homegrown digital ecosystem, as per the company, with diverse product offerings across games, communications and media, fintech and other opportunities
  • In this note, we talk about the positive aspects of the deal.

VNG Pre-IPO – The Negatives – Vietnam’s Mini-Tencent

By Sumeet Singh

  • VNG (VinaGame) (VNG US), Vietnam’s leading internet platform, aims to raise up to US$300m in its US IPO.
  • VNG is Vietnam’s leading homegrown digital ecosystem, as per the company, with diverse product offerings across games, communications and media, fintech and other opportunities
  • In this note, we talk about the not-so-positive aspects of the deal.

Oversold Bounce Underway Amid Consolidation Phase; Buys in IT Consulting, Uranium, Technology

By Joe Jasper

  • Last week (8/22/23) we discussed our expectations for an oversold bounce due to an overwhelming number of indexes/Sectors/industries testing multi-month supports, combined with Treasury yields and the DXY testing resistance.
  • The bounce has begun with the SPP ending higher last week for the first time in a month, and it is possible we have seen the lows for this pause/pullback.
  • A meaningful correction cannot happen if the SPX is above 4300-4325, but we would not be surprised to see another month or more of consolidation between 4300 and 4600.

💡 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


Aug 30
0

Daily Brief Japan: Core Concept Technologies Inc, Oriental Land and more

By | Daily Briefs, Japan

In today’s briefing:

  • Core Concept Technologies (4371 JP) – A BIGLY 2ndary Offering (Re-IPO), and Eventual TOPIX Inclusion
  • Oriental Land: Google Searches For Tokyo Disneyland Dips Double Digits in July & August 2023

Core Concept Technologies (4371 JP) – A BIGLY 2ndary Offering (Re-IPO), and Eventual TOPIX Inclusion

By Travis Lundy

  • Last week I wrote about another situation, noting Equity Offering Into TOPIX Inclusion is a standard construct. Here we have another. 
  • DX and HR Support company Core Concept Technologies Inc (4371 JP) today announced a large (it ups Real World Float by 64%, and is 33 days of ADV) secondary offering.
  • The “reason” for the offering mentions a desire to move to TSE Prime in future.

Oriental Land: Google Searches For Tokyo Disneyland Dips Double Digits in July & August 2023

By Oshadhi Kumarasiri

  • During the initial months of 2QFY24, both Tokyo Disneyland and Tokyo DisneySea experienced a significant double-digit QoQ drop in Google search interest.
  • Using Google Search trends data for the first two months of 2QFY24, we anticipate a QoQ decline of about 17% in Oriental Land’s Theme Parks revenue, dropping below ¥100bn.
  • 2QFY24 consensus OP is 2.5x above the company’s guidance, and both short and medium term consensus revenue and OP targets for Oriental Land (4661 JP) appear blatantly unachievable.

💡 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


Aug 30
0

Daily Brief India: Power Finance and more

By | Daily Briefs, India

In today’s briefing:

  • AMFI Stock Reclassification Preview (Dec 2023): Overlap Between Active & Passive Flows

AMFI Stock Reclassification Preview (Dec 2023): Overlap Between Active & Passive Flows

By Brian Freitas

  • We see 8 stocks moving from MidCap to LargeCap, 8 stocks moving from LargeCap to MidCap, 13 stocks from SmallCap to MidCap, and 13 stocks from MidCap to SmallCap.
  • The expected migrations from SmallCap to MidCap have outperformed the other potential migrations with all stocks moving higher over the last six month.
  • Active managers could continue to realign their portfolios. Some of the upward migrations will have passive flows in the next few days and over the next few months.

💡 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


Aug 30
0

Daily Brief ESG: Schoeller Allibert – ESG Report – Lucror Analytics and more

By | Daily Briefs, ESG

In today’s briefing:

  • Schoeller Allibert – ESG Report – Lucror Analytics

Schoeller Allibert – 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 Schoeller Allibert’s ESG as “Adequate”, in line with its Environmental, Social and Governance scores. Controversies are “Immaterial” and Disclosure is “Adequate”.
  • Schoeller Allibert is a leading manufacturer of returnable transit packaging (RTP) products in Europe.

💡 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


Aug 30
0

Daily Brief Private Markets: Singapore’s Rent-To-Own Solar Startup Solar AI Bags US$1.5M Seed Financing and more

By | Daily Briefs, Private Markets

In today’s briefing:

  • Singapore’s Rent-To-Own Solar Startup Solar AI Bags US$1.5M Seed Financing
  • Malaysian Startup Secures Antler Funding to Address Networking Pain Points

Singapore’s Rent-To-Own Solar Startup Solar AI Bags US$1.5M Seed Financing

By e27

  • Singapore-based solar-as-a-service startup Solar AI Technologies has secured US$1.5 million in a seed funding round led by Earth Venture Capital with participation from Undivided Ventures, Investible, and climate-tech angel investor David Pardo.
  • The funds will primarily be used to upscale its rent-to-own (RTO) solar programme in the island nation before embarking on regional expansion in the next 12 months.
  • Started in 2020 by Chew (CEO), Gérald Chablowski (CTO), and Luke Ong, Solar AI seeks to make rooftop solar accessible and hassle-free for smaller, underserved property owners by providing them with zero upfront cost.

Malaysian Startup Secures Antler Funding to Address Networking Pain Points

By Tech in Asia

  • The business world has long been a push and pull between extroverts and introverts. Nowhere is that more apparent than in networking sessions.
  • This has led Mole, a Malaysian startup building an all-in-one networking platform, to organize an event series dubbed “I Hate Networking.”
  • “We understand that networking can be uncomfortable for anyone, and especially for those who are introverted,” said co-founder and COO Melly Ling. “Mole’s vision is to create a world where professionals network for real connections that go beyond business transactions.”

💡 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


Aug 30
0

Daily Brief Technical Analysis: Oversold Bounce Underway Amid Consolidation Phase; Buys in IT Consulting and more

By | Daily Briefs, Technical Analysis

In today’s briefing:

  • Oversold Bounce Underway Amid Consolidation Phase; Buys in IT Consulting, Uranium, Technology

Oversold Bounce Underway Amid Consolidation Phase; Buys in IT Consulting, Uranium, Technology

By Joe Jasper

  • Last week (8/22/23) we discussed our expectations for an oversold bounce due to an overwhelming number of indexes/Sectors/industries testing multi-month supports, combined with Treasury yields and the DXY testing resistance.
  • The bounce has begun with the SPP ending higher last week for the first time in a month, and it is possible we have seen the lows for this pause/pullback.
  • A meaningful correction cannot happen if the SPX is above 4300-4325, but we would not be surprised to see another month or more of consolidation between 4300 and 4600.

💡 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