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Smartkarma Daily Briefs

Jul 15
0

Daily Brief Health Care: Neuren Pharmaceuticals, Siloam International Hospitals, Bangkok Chain Hospital and more

By | Daily Briefs, Healthcare

In today’s briefing:

  • Neuren Pharmaceuticals (NEU AU): Shares Roar on Expanded Global Partnership for Newly Launched Drug
  • Siloam International Hospitals (SILO IJ) – Harnessing Outward Tourism with Greater Complexity
  • Bangkok Chain Hospital (BCH TB): High COVID-Related Base Effect Impacted 1Q23 Result

Neuren Pharmaceuticals (NEU AU): Shares Roar on Expanded Global Partnership for Newly Launched Drug

By Tina Banerjee

  • Neuren Pharmaceuticals (NEU AU) announced the expansion of partnership with Acadia Pharmaceuticals for trofinetide. Acadia’s exclusive license for trofinetide in North America has been expanded to a worldwide exclusive license. 
  • Neuren is now entitled for additional payments and will receive $100M up-front, plus additional potential milestone payments of upto $427M and royalties on net sales of trofinetide outside North America.
  • Neuren has also granted Acadia an exclusive worldwide license to develop and commercialize NNZ-2591 for Rett and Fragile X syndromes and retains worldwide rights to NNZ-2591 in all other indications.

Siloam International Hospitals (SILO IJ) – Harnessing Outward Tourism with Greater Complexity

By Angus Mackintosh

  • The recent announcement that Indonesia will allow foreign doctors to operate in Indonesia should benefit listed healthcare players with Siloam International Hospitals being a key beneficiary of the move.
  • The company has come out of the pandemic stronger and more profitable with an ongoing focus on increasing the complexity of treatments and the efficiency of operations. 
  • Siloam International Hospitals will continue to open 1-2 new hospitals each year but it only utilises 3,000 out of 7,000 bed capacity leaving room for organic growth. Valuations are attractive.

Bangkok Chain Hospital (BCH TB): High COVID-Related Base Effect Impacted 1Q23 Result

By Tina Banerjee

  • In 1Q23, Bangkok Chain Hospital (BCH TB) recorded 62% YoY decline in revenue from hospital operation, dragged by 39% YoY decline in revenue from general patients (66% of total revenue).
  • COVID-19 revenue contributed 48% of revenue in 1Q22, thereby creating a high base for 1Q23. Even if we exclude COVID-19 revenue received in 1Q22, 1Q23 revenue was down 28% YoY.
  • BCH will need time to recover and record growth. Consensus expects BCH to report revenue and EPS decline of 34% and 47%, YoY, respectively in 2023.

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Jul 15
0

Daily Brief Consumer: Tencent Music, Bloomberry Resorts and more

By | Consumer, Daily Briefs

In today’s briefing:

  • [Tencent Music (TME US, SELL, TP US$6) Preview]: Competition Is Still a Concern, Maintain SELL
  • Bloomberry Is Best Pure Play on Philippine Gaming Growth Cycle

[Tencent Music (TME US, SELL, TP US$6) Preview]: Competition Is Still a Concern, Maintain SELL

By Shawn Yang

  • We expect the 2Q23 online music revenue growth to be 34.4% YoY, driven by more promotions to drive up users’ retentions;
  • We anticipate the 2Q23 social entertainment growth rate to be (12.9%) YoY, due to intense competition and strengthened regulatory in live streaming. 
  • We expect TME’s 2Q23’s rev./non-GAAP net income to be (1.8%)/ (3.9%) vs cons. We maintain SELL because of continuous pressure from Bytedance’s Soda Music, Wechat Video Account and Kuaishou.

Bloomberry Is Best Pure Play on Philippine Gaming Growth Cycle

By Howard J Klein

  • A combination of strong property values, sound balance sheet and expansion to second Philippine property will produce strong result in sequential quarters ahead.
  • Macro factors in market blur expectations for investor interest at this point in other major players in the Entertainment Zone space.
  • Regulators predict Philippine GGR wil reach US$10b by 2027, making it among the globe’s most attractive gaming investment targets.

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Jul 15
0

Daily Brief Financials: Atour Lifestyle Holdings and more

By | Daily Briefs, Financials

In today’s briefing:

  • [Atour Lifestyle (ATAT US, BUY, TP US$35) Preview]: Retail and Summer Travelling Are Two Catalysts

[Atour Lifestyle (ATAT US, BUY, TP US$35) Preview]: Retail and Summer Travelling Are Two Catalysts

By Shawn Yang

  • We expect Atour to report 2Q23 revenue and non-GAAP NI at 94% YoY and 259% YoY, which is 22% and 20% above BBG consensus respectively. 
  • We expect Atour’s RevPAR in 3Q23/2023 increase to 110%/114% of corresponding 2019 level from previous estimate at 105%/112%. 
  • We maintain the stock as BUY rating, and maintain TP at US$35 because the operational gains has been mitigated by FX loss in terms of valuation

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Jul 15
0

Daily Brief ECM: ALT Co IPO Bookbuilding Results Analysis and more

By | Daily Briefs, ECM

In today’s briefing:

  • ALT Co IPO Bookbuilding Results Analysis

ALT Co IPO Bookbuilding Results Analysis

By Douglas Kim

  • ALT’s IPO price has been determined a 25,000 won, which is 22% higher than the high end of the IPO price range.
  • A total of 1,937 institutional investors participated in the IPO offering with a competition demand ratio of 1,836 to 1.
  • Our base case valuation of ALT is market cap of 299 billion won or 33,365 won per share, which represents 33% higher than the IPO price range of 25,000 won.

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Jul 15
0

Daily Brief Credit: Renew Energy – Tear Sheet – Lucror Analytics and more

By | Credit, Daily Briefs

In today’s briefing:

  • Renew Energy – Tear Sheet – Lucror Analytics
  • Weekly Wrap – 14 Jul 2023
  • Azure Power – Event Flash – Auditor Change, New CEO/CFO And Delisting – Lucror Analytics

Renew Energy – Tear Sheet – Lucror Analytics

By Trung Nguyen

We view ReNew Energy Global as “Medium Risk” on the LARA scale. The company is India’s largest renewable power producer (13.7 GW of total capacity and 8 GW of operating capacity at end-March 2023), and enjoys good access to capital. It benefits from stable cash flows and priority dispatch to the grid (e.g. solar), resulting in a robust business profile. The key risk is counterparty payments (DISCOMs). The merger with RMG Acquisition Corp II, a Nasdaq-listed SPAC, has increased ReNew’s transparency, reporting standards, checks and balances as well as cash proceeds to fund capex. The credit is weighed down by high leverage and the company’s aggressive expansion plan to triple its capacity by FYE 2024-25, with capex expected to surge 3-4x to USD 1.5-2.4 bn.

Our Credit Bias is “Stable”, due to the robust nature of the utilities business.

Controversies are “Immaterial”. The ESG Impact on Credit is “Moderately Positive” in our view, due to the nature of ReNew’s business (renewable energy). This should facilitate better access to capital, especially from ESG-minded institutional investors.

Weekly Wrap – 14 Jul 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:

  1. Central China Real Estate
  2. Anton Oilfield
  3. Seazen (Formerly Future Land)
  4. Agung Podomoro Land
  5. Hopson Development

and more…

Azure Power – Event Flash – Auditor Change, New CEO/CFO And Delisting – Lucror Analytics

By Trung Nguyen

Azure Power’s change of auditor, appointment of new CEO and CFO, and the company’s delisting are credit negative in our view. The company had previously informed onshore lenders that the audit of FY 2021-22 results was nearly completed, and that Azure might be able to avoid being delisted. However, auditor SR Batliboi & Co’s resignation does not bode well for the company. The new auditor and new management will take time to get up to speed on Azure and the results. 

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Jul 15
0

Daily Brief Thematic (Sector/Industry): A Deep Dive on China Macro – The RMB and more

By | Daily Briefs, Thematic (Sector/Industry)

In today’s briefing:

  • A Deep Dive on China Macro – The RMB
  • Japan Weekly | Ryohin Keikaku, Nitori, Advantest, Welcia
  • China Property Developers In Distress – Weekly News & Announcements Tracker | 7-13 July 2023
  • China TMT Update-Premier’s Symposium;a Summary of Meituan Vs Douyin;feedbacks of Amazon Prime Day
  • Chinese Automakers Ride Overseas Demand as Global Expansion Pays Off
  • Large Cap GEM Bank Screener – Our Top Picks

A Deep Dive on China Macro – The RMB

By Jacob Cheng

  • The RMB has undergone significant changes in its history, evolving into a currency with increasing influence on global financial markets
  • RMB has significant impact on China’s economy, mainly through the trade balance (export/import) and its impact on outbound tourism
  • China has made key steps regarding internationalization of the currency, however, full internationalization is dependent on further financial market liberalization and opening up of the capital account.

Japan Weekly | Ryohin Keikaku, Nitori, Advantest, Welcia

By Mark Chadwick

  • The focus was on the currency this week ahead of the next BOJ meeting and waning inflationary pressures in the US. 
  • Japanese stocks were basically flat. Retailers were up first announcing results – those with significant operations in China are doing very well.
  • Advantest continues to defy gravity. The stock is up 200% over the past twelve months. Think about that….a Japanese stock up 200%!

China Property Developers In Distress – Weekly News & Announcements Tracker | 7-13 July 2023

By Robert Ciemniak

  • A weekly curated selection of Chinese news articles and company announcements focused on developers in distress
  • We look for their deals, updates, specific project progress news (‘local signals’), as well as relevant local research commentaries about the market
  • We do not verify the underlying data or provide any opinion, we only select and summarize the information; see direct links to sources

China TMT Update-Premier’s Symposium;a Summary of Meituan Vs Douyin;feedbacks of Amazon Prime Day

By Shawn Yang

  • Premier Li Qiang chaired a symposium with internet platform enterprises
  • A summary of recent Meituan local news – counterattack against Douyin is showing initial effectiveness, but Wechat,Kuaishou and Xiaohongshu(Red) are coming
  • Chinese merchants’ feedbacks of this year’s Amazon Prime Day, a summary

Chinese Automakers Ride Overseas Demand as Global Expansion Pays Off

By Caixin Global

  • Chinese auto exports again shot up in the first six months of this year, largely fueled by rising demand for new-energy vehicles (NEVs) and surging deliveries to a sanction-hit Russia, as local carmakers sought to invigorate sales with a push overseas.
  • First-half shipments leapt 75.7% from the same period last year to 2.14 million vehicles, according to a report Tuesday by the China Association of Automobile Manufacturers (CAAM).
  • Overseas shipments of NEVs — a category that consists mainly of pure electric and hybrid models — more than doubled to 534,000 vehicles, accounting for nearly a quarter of the total exports, the CAAM report showed.

Large Cap GEM Bank Screener – Our Top Picks

By Victor Galliano

  • Among the large-cap EM Asia banks, we recommend CCB in China, HDFC Bank in India, Bank Mandiri in Indonesia and Hana Financial in South Korea
  • In LatAm, we turn positive on Banco do Brasil, for its big value attributes and lesser political risk; we turn cautious on Bradesco and stay cautious on Banorte in Mexico
  • Two large-cap names to watch are Credicorp in Peru and Standard Bank of South Africa; both have challenging macro-economic backdrops but sound “bottom up” credentials

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Jul 15
0

Daily Brief Event-Driven: KRX’s Revised CFD Oversight Guidelines & Ongoing Suspicious Incidents and more

By | Daily Briefs, Event-Driven

In today’s briefing:

  • KRX’s Revised CFD Oversight Guidelines & Ongoing Suspicious Incidents

KRX’s Revised CFD Oversight Guidelines & Ongoing Suspicious Incidents

By Sanghyun Park

  • The important point is that the regulations also incorporate a provision mandating the disclosure of the actual end traders’ identities when brokerages engage in CFD transactions disguised as proprietary trading.
  • Recent suspicious incidents raise concerns because they are carried out through brokerages’ proprietary trading practices, making them relatively more difficult for local regulatory authorities to detect and monitor.
  • We need to closely monitor the market’s abnormal volatility following the strengthened new rules on CFDs and carefully consider the setup for responding to these changes.

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Jul 15
0

Daily Brief Equity Bottom-Up: [Tencent Music (TME US and more

By | Daily Briefs, Equity Bottom-Up

In today’s briefing:

  • [Tencent Music (TME US, SELL, TP US$6) Preview]: Competition Is Still a Concern, Maintain SELL
  • Neuren Pharmaceuticals (NEU AU): Shares Roar on Expanded Global Partnership for Newly Launched Drug
  • Korean Holdcos Vs Opcos Gap Trading Opportunities in 3Q 2023
  • Siloam International Hospitals (SILO IJ) – Harnessing Outward Tourism with Greater Complexity
  • Bangkok Chain Hospital (BCH TB): High COVID-Related Base Effect Impacted 1Q23 Result
  • Bloomberry Is Best Pure Play on Philippine Gaming Growth Cycle
  • [Atour Lifestyle (ATAT US, BUY, TP US$35) Preview]: Retail and Summer Travelling Are Two Catalysts
  • Kinatico Ltd – Maiden FY23 Profit of $0.2m, Ahead of Forecast

[Tencent Music (TME US, SELL, TP US$6) Preview]: Competition Is Still a Concern, Maintain SELL

By Shawn Yang

  • We expect the 2Q23 online music revenue growth to be 34.4% YoY, driven by more promotions to drive up users’ retentions;
  • We anticipate the 2Q23 social entertainment growth rate to be (12.9%) YoY, due to intense competition and strengthened regulatory in live streaming. 
  • We expect TME’s 2Q23’s rev./non-GAAP net income to be (1.8%)/ (3.9%) vs cons. We maintain SELL because of continuous pressure from Bytedance’s Soda Music, Wechat Video Account and Kuaishou.

Neuren Pharmaceuticals (NEU AU): Shares Roar on Expanded Global Partnership for Newly Launched Drug

By Tina Banerjee

  • Neuren Pharmaceuticals (NEU AU) announced the expansion of partnership with Acadia Pharmaceuticals for trofinetide. Acadia’s exclusive license for trofinetide in North America has been expanded to a worldwide exclusive license. 
  • Neuren is now entitled for additional payments and will receive $100M up-front, plus additional potential milestone payments of upto $427M and royalties on net sales of trofinetide outside North America.
  • Neuren has also granted Acadia an exclusive worldwide license to develop and commercialize NNZ-2591 for Rett and Fragile X syndromes and retains worldwide rights to NNZ-2591 in all other indications.

Korean Holdcos Vs Opcos Gap Trading Opportunities in 3Q 2023

By Douglas Kim

  • In this insight, we highlight the pricing gap divergences of the major Korean holdcos and opcos in 3Q 2023.
  • Of the 38 pair trades, 22 of them involved holdcos outperforming opcos YTD and 16 of them involved opcos outperforming holdcos in the same period.
  • We highlight 38 pair trades that involve Korean holdcos and opcos.

Siloam International Hospitals (SILO IJ) – Harnessing Outward Tourism with Greater Complexity

By Angus Mackintosh

  • The recent announcement that Indonesia will allow foreign doctors to operate in Indonesia should benefit listed healthcare players with Siloam International Hospitals being a key beneficiary of the move.
  • The company has come out of the pandemic stronger and more profitable with an ongoing focus on increasing the complexity of treatments and the efficiency of operations. 
  • Siloam International Hospitals will continue to open 1-2 new hospitals each year but it only utilises 3,000 out of 7,000 bed capacity leaving room for organic growth. Valuations are attractive.

Bangkok Chain Hospital (BCH TB): High COVID-Related Base Effect Impacted 1Q23 Result

By Tina Banerjee

  • In 1Q23, Bangkok Chain Hospital (BCH TB) recorded 62% YoY decline in revenue from hospital operation, dragged by 39% YoY decline in revenue from general patients (66% of total revenue).
  • COVID-19 revenue contributed 48% of revenue in 1Q22, thereby creating a high base for 1Q23. Even if we exclude COVID-19 revenue received in 1Q22, 1Q23 revenue was down 28% YoY.
  • BCH will need time to recover and record growth. Consensus expects BCH to report revenue and EPS decline of 34% and 47%, YoY, respectively in 2023.

Bloomberry Is Best Pure Play on Philippine Gaming Growth Cycle

By Howard J Klein

  • A combination of strong property values, sound balance sheet and expansion to second Philippine property will produce strong result in sequential quarters ahead.
  • Macro factors in market blur expectations for investor interest at this point in other major players in the Entertainment Zone space.
  • Regulators predict Philippine GGR wil reach US$10b by 2027, making it among the globe’s most attractive gaming investment targets.

[Atour Lifestyle (ATAT US, BUY, TP US$35) Preview]: Retail and Summer Travelling Are Two Catalysts

By Shawn Yang

  • We expect Atour to report 2Q23 revenue and non-GAAP NI at 94% YoY and 259% YoY, which is 22% and 20% above BBG consensus respectively. 
  • We expect Atour’s RevPAR in 3Q23/2023 increase to 110%/114% of corresponding 2019 level from previous estimate at 105%/112%. 
  • We maintain the stock as BUY rating, and maintain TP at US$35 because the operational gains has been mitigated by FX loss in terms of valuation

Kinatico Ltd – Maiden FY23 Profit of $0.2m, Ahead of Forecast

By Research as a Service (RaaS)

  • Kinatico Ltd (ASX:KYP) is a ‘Know Your People” regtech company providing workforce compliance monitoring and management technology and services.
  • KYP has announced in a flash update that it expects to report FY23 NPAT greater than $0.2m, marking its first profitable full year since listing.
  • This is ahead of our FY23 NPAT forecast of $0.14m. 

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Jul 15
0

Daily Brief Macro: US CPI Update: If There Was Only Inflation and more

By | Daily Briefs, Macro

In today’s briefing:

  • US CPI Update: If There Was Only Inflation, Things Would Still Look Complicated
  • CX Daily: As China’s Property Crisis Deepens, Sinking Shares Spark Delisting Threat
  • Portfolio Watch: From a bond bear bonanza to a stock rally
  • TPW Advisory Friday Musings: When Facts Rock Fiction

US CPI Update: If There Was Only Inflation, Things Would Still Look Complicated

By Jeroen Blokland

  • US headline inflation dropped to 3.0%, reaching its lowest level since March 2021. Core inflation declined to 4.8%, falling below the 5% threshold for the first time since November 2021.
  • The average 1-month annualized CPI inflation in June was 1.1%, well below the Fed target. Prices barely rose in June.
  • Unlike headline inflation, Core CPI and Core Services ex Shelter CPI have ample room to decline further this year. Unfortunately, markets are already way ahead of this again.

CX Daily: As China’s Property Crisis Deepens, Sinking Shares Spark Delisting Threat

By Caixin Global

  • Delisting /In Depth: As China’s property crisis deepens, sinking shares spark delisting threat
  • Carbon /: Xi calls for adopting ‘dual control’ system for carbon emissions and intensity
  • Corruption /: Top Shanghai lawmaker under graft investigation

Portfolio Watch: From a bond bear bonanza to a stock rally

By Emil Moller

  • Good Friday everyone!We are back with our Portfolio Watch here as we embark on the week’s last trading day!We are not surprised by this week’s bounce nor are we unhappy with the profits we’ve made on the back of it.
  • As I wrote in last week’s Portfolio Watch: “(…)We have been taking in some water in our longs in bonds and equities and while we won’t be surprised by a rebound next week, we may be entering a phase where adding shorts is a prudent risk/reward option” and here we are with what looks like the best week for global stocks since NovemberChart 1: Global Equity PerformanceWe accurately anticipated and benefited from the release of the CPI data, as our long bonds and equity beta allocations proved fruitful.
  • Our models indicated a CPI reading below market consensus, leading us to maintain our long exposure and anticipate potential difficulties for bond shorts.

TPW Advisory Friday Musings: When Facts Rock Fiction

By TPW Advisory

  • Excited to finally get to use this title – it’s been in the back pocket for quite some time but after this week’s global, cross asset, market moves its time.
  • We had the opportunity to try it out on BTV’s The Open show this morning; today’s Musings come straight from my notes for the hit.
  • The full line is “When Facts Rock Fiction, Always Cause Friction” (any guesses as to band or song? LMK).

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Jul 15
0

Most Read: Foxconn Industrial Internet, HDFC Bank, Plus Alpha Consulting, Ecopro Co Ltd, Fast Retailing, Canon Inc, IMAX China Holding, Kum Yang, ALT Semicon and more

By | Daily Briefs, Most Read

In today’s briefing:

  • SSE50 Index Rebalance Preview: Potential Adds Powering Higher
  • Index Rebalance & ETF Flow Recap: HSCI, HSCEI, HSI, CSI300, CSI500, SSE50, HDFC Bank, Sensex
  • Plus Alpha Consulting (4071 JP) – ¥30bn Offer Leads to ¥5bn TOPIX Inclusion
  • Korea – A Look at Ecopro, Kumyang & JYP Entertainment
  • Fast Retailing UPs Forecasts, Which Creates A Sell/Short Opportunity
  • Canon (7751) Buyback Almost Done, TPX Selldown to Come = Trade Vs Ricoh or Basket
  • IMAX China (1970 HK): IMAX Corp’s Privatisation Offer
  • KRX’s Revised CFD Oversight Guidelines & Ongoing Suspicious Incidents
  • A Deep Dive on China Macro – The RMB
  • ALT Co IPO Bookbuilding Results Analysis

SSE50 Index Rebalance Preview: Potential Adds Powering Higher

By Brian Freitas

  • Two thirds of the way through the review period, we see 10 potential adds/8 potential deletes in December. However, there can be a maximum of 5 changes at a review.
  • We estimate a one-way turnover of 5.8% at the December rebalance leading to a one-way trade of CNY 4.67bn. Index arb balances could increase the impact on the stocks.
  • The potential adds have outperformed the potential deletes over the last six months and there has been renewed outperformance over the last month.

Index Rebalance & ETF Flow Recap: HSCI, HSCEI, HSI, CSI300, CSI500, SSE50, HDFC Bank, Sensex

By Brian Freitas

Plus Alpha Consulting (4071 JP) – ¥30bn Offer Leads to ¥5bn TOPIX Inclusion

By Travis Lundy

  • Plus Alpha Consulting (4071 JP) listed on TSE Growth at end-June 2021 at ¥2300/share, which was 90x the trailing fiscal year’s earnings. but only about 65x then-current year earnings.
  • The stock popped 20+% on Day 1 to close ¥2803. Last Friday, two years and 13% higher at ¥3185/share, the company announced a Secondary Offering and move to TSE Prime.
  • It’s a big offering. It’s a smaller TOPIX inclusion event. Next spring we’ll see more upweights.  

Korea – A Look at Ecopro, Kumyang & JYP Entertainment

By Brian Freitas

Fast Retailing UPs Forecasts, Which Creates A Sell/Short Opportunity

By Travis Lundy

  • Fast Retailing (9983 JP) investors are in a conundrum. The stock is doing well. With one quarter to go, the company just raised its full-year EPS target by 8.3%.
  • It also raised its H2 dividend by 20+% so the full-year div will be more than 20% higher than previously forecast and up 35+% since last year. All good. 
  • Except for the selling. Potentially lots of selling. And more outperformance begets more selling. Then even more selling in 2024. And 2025? What about 2025? More outperformance begets more selling.

Canon (7751) Buyback Almost Done, TPX Selldown to Come = Trade Vs Ricoh or Basket

By Travis Lundy

  • Canon Inc (7751 JP) announced a second buyback this fiscal year on 15 June. As discussed here previously, Canon buybacks are short, sharp, and sweet. 
  • The recent one should be done imminently (15 May start ended 13 July). 16 June start? (Note: Canon reports buyback results at 3pm local time, and did not report today).
  • This time we have a double-setup with buyback ending and a large TOPIX sell on Canon on 28 July. 

IMAX China (1970 HK): IMAX Corp’s Privatisation Offer

By Arun George

  • IMAX China Holding (1970 HK) disclosed a scheme privatisation offer from IMAX Corp (IMAX US) at HK$10.00 per share, a 39.5% premium to the undisturbed price (HK$7.17 on 10 July).
  • The key condition is approval by at least 75% of disinterested shareholders (<10% of all disinterested shareholders rejection). No independent shareholder holds a blocking stake. 
  • The offer price is final. While the offer price is light compared to peer multiples and historical share prices, the deal will likely succeed. 

KRX’s Revised CFD Oversight Guidelines & Ongoing Suspicious Incidents

By Sanghyun Park

  • The important point is that the regulations also incorporate a provision mandating the disclosure of the actual end traders’ identities when brokerages engage in CFD transactions disguised as proprietary trading.
  • Recent suspicious incidents raise concerns because they are carried out through brokerages’ proprietary trading practices, making them relatively more difficult for local regulatory authorities to detect and monitor.
  • We need to closely monitor the market’s abnormal volatility following the strengthened new rules on CFDs and carefully consider the setup for responding to these changes.

A Deep Dive on China Macro – The RMB

By Jacob Cheng

  • The RMB has undergone significant changes in its history, evolving into a currency with increasing influence on global financial markets
  • RMB has significant impact on China’s economy, mainly through the trade balance (export/import) and its impact on outbound tourism
  • China has made key steps regarding internationalization of the currency, however, full internationalization is dependent on further financial market liberalization and opening up of the capital account.

ALT Co IPO Bookbuilding Results Analysis

By Douglas Kim

  • ALT’s IPO price has been determined a 25,000 won, which is 22% higher than the high end of the IPO price range.
  • A total of 1,937 institutional investors participated in the IPO offering with a competition demand ratio of 1,836 to 1.
  • Our base case valuation of ALT is market cap of 299 billion won or 33,365 won per share, which represents 33% higher than the IPO price range of 25,000 won.

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