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Smartkarma Daily Briefs

Jun 18
0

Daily Brief Japan: Keisei Electric Railway Co, Tokyo Stock Exchange Tokyo Price Index Topix and more

By | Daily Briefs, Japan

In today’s briefing:

  • Last Week in Event SPACE: Kesei/Oriental Land, Intouch, Abacus Property, Great Eagle, JS Global
  • The Problem Is that Many Managers Know that ROE Is Below Cost of Capital but Are Not Taking Action

Last Week in Event SPACE: Kesei/Oriental Land, Intouch, Abacus Property, Great Eagle, JS Global

By David Blennerhassett

The Problem Is that Many Managers Know that ROE Is Below Cost of Capital but Are Not Taking Action

By Aki Matsumoto

  • The essence of problem lies in the fact that even half of them believe that ROE doesn’t exceed cost of capital, yet managers haven’t taken measures to address this problem.
  • In reality, management reform is still a long way off, as constructive proposals from shareholders are often not accepted until the % of foreign shareholders rises to the 30% level.
  • TSE has made it possible to compare the superiority of management skills with share price. Attention will be focused on how managers will answer questions about share prices at AGMs.

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Jun 18
0

Most Read: Chow Tai Fook Jewellery, Koolearn, State Bank Of India, Piotech, DL E&C Co Ltd, Trip.com, Hong Kong Hang Seng Index, Almac and more

By | Daily Briefs, Most Read

In today’s briefing:

  • HSCEI Index Rebalance Preview: Two Changes Likely in September
  • HSTECH Index Rebalance Preview (Sep): One Change or Two?
  • CPSE / CNXBANK Index Rebalance Preview: Capping Changes in June
  • STAR50 Index Rebalance Preview: One High Probability Change; One ‘It Depends’
  • Gap Trades of Small Cap Korean Pref Vs Common Shares
  • China A-Shares: Stock Positioning Chart Pack
  • Japan Weekly | Japan Rally – Toyota, ASICS, Nikon
  • Index Rebalance & ETF Flow Recap: HSCEI, HSTECH, STAR50, KOSDAQ150, CPSE/CNXBANK, Kenedix Merger
  • EQD | Volatility Update: Weekly Review of Vol Changes and Best Trades-A Rising Tide Lifts All Boats
  • Almac IPO Bookbuilding Results Analysis

HSCEI Index Rebalance Preview: Two Changes Likely in September

By Brian Freitas

HSTECH Index Rebalance Preview (Sep): One Change or Two?

By Brian Freitas

  • We expect one change to the Hang Seng Tech Index (HSTECH INDEX) in September – though there could be a second change as well.
  • Estimated one-way turnover is 2.13% resulting in a one-way trade of HK$2.01bn in case there are two index changes. Turnover will be lower if there is only one change.
  • Short interest on some of the potential changes is over 15% of float and there could be big moves on the stocks post announcement of the changes.

CPSE / CNXBANK Index Rebalance Preview: Capping Changes in June

By Brian Freitas

  • The CPSE ETF (CPSEBE IN) and Nifty Bank Index (NSEBANK INDEX) will have its quarterly rebalancing at the close on 29 June.
  • There are no constituent changes for the indices in June but there will be capping and float changes for the stocks and there is a reasonable impact on many stocks.
  • Both indices have performed well over the recent past and active investors can take advantage of the passive flows to increase or decrease existing positions.

STAR50 Index Rebalance Preview: One High Probability Change; One ‘It Depends’

By Brian Freitas

  • The review period for the September rebalance ends 31 July. We expect the changes to be announced 25 August with the implementation taking place after the close on 8 September.
  • We expect the index committee to continue using a 6-month minimum listing history resulting in two changes to the index.
  • One way turnover is estimated at 3.45% resulting in a one-way trade of CNY 3,675m. The impact on the deletions will be larger than that on the inclusions.

Gap Trades of Small Cap Korean Pref Vs Common Shares

By Douglas Kim

  • In this insight, we provide gap trade opportunities among 30 small cap Korean preferred stocks with market cap of less than 100 billion won and more than 20 billion won.
  • Among these 30 companies, there are some in interesting gap trade opportunities, especially among those with relatively high dividend yields (more than 5%).
  • We have ranked these 30 stocks in terms of three criteria including market cap, pref/common share price ratio, and dividend yields. 

China A-Shares: Stock Positioning Chart Pack

By Steven Holden

Japan Weekly | Japan Rally – Toyota, ASICS, Nikon

By Mark Chadwick

  • The stars are aligned for a rally in the Japanese equity markets – Earnings, Activism, and Capital Allocation. 
  • We highlight some of the stocks that moved the market this week – Toyota excited the market with promises of Solid State battery production
  • Shareholders continue to test Japanese management with a barrage of proposals

Index Rebalance & ETF Flow Recap: HSCEI, HSTECH, STAR50, KOSDAQ150, CPSE/CNXBANK, Kenedix Merger

By Brian Freitas

EQD | Volatility Update: Weekly Review of Vol Changes and Best Trades-A Rising Tide Lifts All Boats

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

Almac IPO Bookbuilding Results Analysis

By Douglas Kim

  • Almac announced its IPO price of 50,000 won, which is 11% higher than the high end of the IPO price range. Demand ratio was very high at 1,697 to 1.
  • A 98.7% of the IPO shares applied thought that the company’s value is more than 45,000 won
  • Given the exceptional demand for IPO shares, it is likely that the IPO share price is likely to trade at higher end of the IPO range in our sensitivity analysis.

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Jun 18
0

Daily Brief Energy/Materials: Almac and more

By | Daily Briefs, Energy & Materials Sector

In today’s briefing:

  • Almac IPO Bookbuilding Results Analysis

Almac IPO Bookbuilding Results Analysis

By Douglas Kim

  • Almac announced its IPO price of 50,000 won, which is 11% higher than the high end of the IPO price range. Demand ratio was very high at 1,697 to 1.
  • A 98.7% of the IPO shares applied thought that the company’s value is more than 45,000 won
  • Given the exceptional demand for IPO shares, it is likely that the IPO share price is likely to trade at higher end of the IPO range in our sensitivity analysis.

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Jun 18
0

Daily Brief TMT/Internet: Hong Kong Hang Seng Index and more

By | Daily Briefs, TMT/Internet

In today’s briefing:

  • EQD | Volatility Update: Weekly Review of Vol Changes and Best Trades-A Rising Tide Lifts All Boats

EQD | Volatility Update: Weekly Review of Vol Changes and Best Trades-A Rising Tide Lifts All Boats

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

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Jun 18
0

Daily Brief Health Care: Viva Biotech Holdings, Lutronic Corp and more

By | Daily Briefs, Healthcare

In today’s briefing:

  • Viva Biotech Holdings (1873 HK): Fund Raising Through Offloading Stake in CRO Arm
  • (Mostly) Asia-Pac Weekly Risk Arb Wrap: Lutronic, Hailan, Mason, Tesserent, Kenedix

Viva Biotech Holdings (1873 HK): Fund Raising Through Offloading Stake in CRO Arm

By Tina Banerjee

  • Viva Biotech Holdings (1873 HK) is raising RMB1.06 billion (~$150 million) through offloading ~24% of its equity interest in Viva Shanghai, the primary entity of the company’s CRO business.
  • The consideration implies a revenue ratio and gross profit ratio of 4.90x and 11.04x, respectively. The ratios are at the similar level of the average ratios of other comparable peers.
  • Going ahead, Viva Biotech is planning to spin off its CRO business for separate listing in the A-shares market. IPO application is expected to be filed by June 30, 2024.

(Mostly) Asia-Pac Weekly Risk Arb Wrap: Lutronic, Hailan, Mason, Tesserent, Kenedix

By David Blennerhassett

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Jun 18
0

Daily Brief Industrials: Keisei Electric Railway Co and more

By | Daily Briefs, Industrials

In today’s briefing:

  • Last Week in Event SPACE: Kesei/Oriental Land, Intouch, Abacus Property, Great Eagle, JS Global

Last Week in Event SPACE: Kesei/Oriental Land, Intouch, Abacus Property, Great Eagle, JS Global

By David Blennerhassett

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Jun 18
0

Daily Brief Industrials: Keisei Electric Railway Co and more

By | Daily Briefs, Industrials

In today’s briefing:

  • Last Week in Event SPACE: Kesei/Oriental Land, Intouch, Abacus Property, Great Eagle, JS Global

Last Week in Event SPACE: Kesei/Oriental Land, Intouch, Abacus Property, Great Eagle, JS Global

By David Blennerhassett

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

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Jun 18
0

Daily Brief Consumer: Trip.com, JD.com Inc (ADR), Tokyo Stock Exchange Tokyo Price Index Topix and more

By | Consumer, Daily Briefs

In today’s briefing:

  • Index Rebalance & ETF Flow Recap: HSCEI, HSTECH, STAR50, KOSDAQ150, CPSE/CNXBANK, Kenedix Merger
  • ECM Weekly (18th June 2023) – JD Property, Tata Tech, SBFC Fin, Auckland Air, Weilong, Sula, Abacus
  • The Problem Is that Many Managers Know that ROE Is Below Cost of Capital but Are Not Taking Action

Index Rebalance & ETF Flow Recap: HSCEI, HSTECH, STAR50, KOSDAQ150, CPSE/CNXBANK, Kenedix Merger

By Brian Freitas

ECM Weekly (18th June 2023) – JD Property, Tata Tech, SBFC Fin, Auckland Air, Weilong, Sula, Abacus

By Sumeet Singh

  • Aequitas Research puts out a weekly update on the deals that were covered by the team recently along with updates for upcoming IPOs.
  • In the IPO space,  HK remained quiet with Australia seeing some more action.
  • On the placement front, Bain continued to exit Axis Bank Ltd (AXSB IN) while Weilong Delicious Global (9985 HK) and Sula Vineyards had lock-up expiries.

The Problem Is that Many Managers Know that ROE Is Below Cost of Capital but Are Not Taking Action

By Aki Matsumoto

  • The essence of problem lies in the fact that even half of them believe that ROE doesn’t exceed cost of capital, yet managers haven’t taken measures to address this problem.
  • In reality, management reform is still a long way off, as constructive proposals from shareholders are often not accepted until the % of foreign shareholders rises to the 30% level.
  • TSE has made it possible to compare the superiority of management skills with share price. Attention will be focused on how managers will answer questions about share prices at AGMs.

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

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

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  • ✓ Custom Watchlists
  • ✓ Company Data and News
  • ✓ Events & Webinars
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Jun 18
0

Daily Brief Financials: Puradelta Lestari, Thai Life Insurance and more

By | Daily Briefs, Financials

In today’s briefing:

  • Puradelta Lestari (DMAS IJ) – Cars, Drugs, and Data Centres
  • SET50 Index Rebalance: TLI, WHA to Replace JMART, JMT

Puradelta Lestari (DMAS IJ) – Cars, Drugs, and Data Centres

By Angus Mackintosh

  • Puradelta Lestari (DMAS IJ) remains one of the most interesting industrial estate developers in Indonesia with a high-quality tenant base across growth sectors including autos, 2W, pharmaceuticals, and data centres.
  • The completion of a new AEON Mall will provide a further draw for the estate as a destination and a place to live and work and is increasingly well-connected.
  • DMAS had a slower start to the year for revenues but marketing sales are running ahead of schedule having beat last year, with bookings expected to pick up in 2023.

SET50 Index Rebalance: TLI, WHA to Replace JMART, JMT

By Brian Freitas

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Jun 18
0

Daily Brief Quantitative Analysis: Hong Kong Buybacks Weekly (Jun 16th): Tencent and more

By | Daily Briefs, Quantitative Analysis

In today’s briefing:

  • Hong Kong Buybacks Weekly (Jun 16th): Tencent, Aia, Ck Asset

Hong Kong Buybacks Weekly (Jun 16th): Tencent, Aia, Ck Asset

By Ke Yan, CFA, FRM

  • We analyze statistics on top repurchases over one week, one month, one quarter and one year periods ended on Jun 16th based on HKEx daily reports.
  • In the past 7 days, the top 3 companies that repurchased the most shares from the market were Tencent (700 HK), AIA (1299 HK), CK Asset (1113 HK).
  • In the past 30 days, the top 3 companies that repurchased the most shares from the market were Tencent (700 HK), AIA (1299 HK), CK Asset (1113 HK).

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