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Smartkarma Daily Briefs

Aug 01
0

Daily Brief Credit: Lippo Karawaci – Earnings Flash – H1 FY 2023 Results – Lucror Analytics and more

By | Credit, Daily Briefs

In today’s briefing:

  • Lippo Karawaci – Earnings Flash – H1 FY 2023 Results – Lucror Analytics
  • Morning Views Asia: Country Garden Holdings Co, Pan Brothers, Pertamina Geothermal Energy PT

Lippo Karawaci – Earnings Flash – H1 FY 2023 Results – Lucror Analytics

By Trung Nguyen

Lippo Karawaci’s (LPKR) H1/23 results were much better than expected, and showed that the company was on track to achieve its turnaround goals. All business segments performed well, with healthcare again the largest contributor to revenue and earnings. Still, we note positively that the real estate segment’s performance was in line with guidance amid a challenging operating environment, with high and rising interest rates. Conversely, the financial risk profile remains weak, with elevated leverage ratios and thin fixed charge cover. Liquidity is barely adequate.

The healthcare segment continues to be LPKR’s key pillar, accounting for two-thirds of revenue and boasting strong (and improved) EBITDA. Moreover, we note that the segment should be relatively immune to the volatility in the economy.

Morning Views Asia: Country Garden Holdings Co, Pan Brothers, Pertamina Geothermal Energy PT

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.

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Aug 01
0

Daily Brief Equity Bottom-Up: Taiwan Apple Ecosystem Monitor: Two Potential Event Trades into Apple Earnings and more

By | Daily Briefs, Equity Bottom-Up

In today’s briefing:

  • Taiwan Apple Ecosystem Monitor: Two Potential Event Trades into Apple Earnings
  • Nihon M&A: Earnings Miss, No Indication of a Business Turnaround Yet
  • Cisarua Mountain Dairy (CMRY IJ) – Yoghurt Sticks and Meatballs
  • Narrative and Numbers | Sula Vineyards (SULA IN) | FY23
  • Taiwan Tech Weekly: Wave of Taiwan Earnings Plus AMD & Apple; AI Accelerating DRAM & PC Recovery
  • M3: Weak Earnings and Overseas Business Further Slows Down
  • Oriental Watch (398 HK): Strong Data Points for H1 FY24, 14% Yield + >50% Mkt Cap in Cash
  • [SMIC (0981 HK, BUY, TP HK$26) Target Price Change]: Pricing Power Courtesy of Export Restrictions
  • Simplex Holdings (4373) – Firing on All Cylinders and Targeting Long- Term Growth
  • Scotiabank: Overlooked Risks Discussed

Taiwan Apple Ecosystem Monitor: Two Potential Event Trades into Apple Earnings

By Vincent Fernando, CFA

  • Apple will report its earnings on August 3rd, 14:00 PDT. We highlight two potential trades into the Apple earnings event.
  • Quanta Computer has massively outperformed Apple due to investors latching on to its AI-server growth story. One can consider to Long Apple / Short Quanta into the Apple earnings event.
  • Hon Hai, Flexium, and Zhen Ding have all lagged Apple’s shares yet generate significant revenue from Apple. One can Long a basket of the three into Apple’s earnings.

Nihon M&A: Earnings Miss, No Indication of a Business Turnaround Yet

By Shifara Samsudeen, ACMA, CGMA

  • Nihon M&A reported 1QFY03/2024 results on Friday. Both revenue and OP decreased 9.1% and 52.5% YoY to ¥8.2bn (vs consensus ¥9.8bn) and ¥1.7bn (vs consensus ¥3.6bn) respectively.
  • M&A sales decreased yet again in 1Q as the company is struggling to improve revenue per transaction despite there being an increase in the no. of transactions.
  • We think the company may not be able to achieve full-year target given declining per transaction revenues and falling other businesses.

Cisarua Mountain Dairy (CMRY IJ) – Yoghurt Sticks and Meatballs

By Angus Mackintosh

  • Cisarua Mountain Dairy (CMRY IJ) remains one of the most interesting and dynamic staple players in Indonesia, with a leading position in yoghurt and growing strength in consumer foods. 
  • CMRY continues to achieve strong top-line growth of +21% in 1H2023, with consumer foods driving growth and 50% of sales but we expect dairy to see better performance in 2H2023. 
  • Cisarua Mountain Dairy (CMRY IJ) continues to invest in marketing through digital channels, including TikTok. Valuations remain attractive relative to its growth prospects, with more than 20% 3-year EPS CAGR.

Narrative and Numbers | Sula Vineyards (SULA IN) | FY23

By Pranav Bhavsar

  • Sula Vineyards (SULA IN) is one of the leading wine producers in India.  
  • Focus on premiumization, market leadership, and industry prospects are attractive. 
  • However, high working capital, recent resignations, and customer concentration along with market’s high valuations make it a watch-list candidate.

Taiwan Tech Weekly: Wave of Taiwan Earnings Plus AMD & Apple; AI Accelerating DRAM & PC Recovery

By Vincent Fernando, CFA

  • Wave of earnings this week — AMD, Qualcomm, Apple internationally… and Delta, Advantech, Innolux, Winbond, Realtek, plus others in Taiwan.
  • We visited Micron’s A3 fab in Taiwan; SK Hynix gives strongest comments yet on Memory turn-around; Long Nanya Tech on DRAM turn-around.
  • Intel results readthrough: PC cycle improving and could be accelerated by AI-demand… We continue to see Elan Micro as a laggard play on rallying PC names.

M3: Weak Earnings and Overseas Business Further Slows Down

By Shifara Samsudeen, ACMA, CGMA

  • M3 Inc (2413 JP) reported 1QFY03/2024 results on Friday. Revenue increased 0.7% YoY to ¥57.4bn (vs consensus ¥58.1bn) while OP decreased 3.7% YoY to ¥18.0bn (vs consensus ¥18.1bn).
  • Overseas revenue growth further slowed down to 5.3% despite the company expecting overseas business growth to help offset slowdown in pharma marketing business going forward.
  • This proves that m3’s long list of M&A’s have not been really successful as we have not observed any meaningful growth from these new acquisitions.

Oriental Watch (398 HK): Strong Data Points for H1 FY24, 14% Yield + >50% Mkt Cap in Cash

By Sameer Taneja

  • Oriental Watch (398 HK) cycled into favorable comps for April-June 2023 owing to COVID-related closures in China in 2022 for the same period. 
  • Another favorable data point was the Emperor Watch & Jewellery (887 HK) positive profit alert for H1 FY23 ( Jan-Jun 2023), where the company guided >100% net profit growth. 
  • Oriental Watch (398 HK) trades at 6.9x FY24e, with more than 50% of the market cap in cash and a ~100% payout ratio resulting in a 14% dividend yield. 

[SMIC (0981 HK, BUY, TP HK$26) Target Price Change]: Pricing Power Courtesy of Export Restrictions

By Shawn Yang

  • We expect SMIC to report C1Q23 top-line and non-IFRS net income 2% and 16% vs. consensus, respectively.
  • We suggest SMIC’s ability to supply sanctioned firms with 14/7nm nodes provides it with significant pricing power. We expect the decline in SMIC’s wafer ASP to slow.
  • We expect overall 2H demand to improve due to (1) normalizing fabless inventory levels, and (2) stabilized smartphone demand. We maintain BUY rating and raise our TP to HK$ 26.

Simplex Holdings (4373) – Firing on All Cylinders and Targeting Long- Term Growth

By Astris Advisory Japan

  • High earnings visibility – Q1 FY3/2024 results indicate a robust start to the year with record-high quarterly sales, orders, and backlog.
  • We believe the company exhibits robust earnings visibility, which can be attributed to its adeptness in delivering high-value-added services within a highly competitive market, with its high-quality workforce and sufficient capacity.
  • Aiming for long-term sustainable growth –whilst strong results are appealing, we are encouraged by the following which we believe will allow the business the sustain long-term growth

Scotiabank: Overlooked Risks Discussed

By Pearl Gray Equity and Research

  • Many analysts have a bullish outlook on The Bank of Nova Scotia’s stock, which is arguably warranted.
  • But plenty of risk factors are being overlooked, and late payments are mounting with short-term retail obligations in particular focus.
  • Scotiabank’s emerging market strategy could present compelling trend growth.

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Aug 01
0

Daily Brief Australia: Abacus Storage King, Costa Group Holdings, Rent.com.au Ltd and more

By | Australia, Daily Briefs

In today’s briefing:

  • ASK Listing Trading – Priced at a Discount to Peer, Although Asset Quality Seems More Attractive
  • (Mostly) Asia M&A, July 2023: Costa Group, Pacific Current, IMAX, Takisawa Machine Tools, Yachiyo
  • Rent.com.au Ltd – Advertising Recovers, Strong Customer Growth in RentPay

ASK Listing Trading – Priced at a Discount to Peer, Although Asset Quality Seems More Attractive

By Clarence Chu

  • Abacus Property (ABP AU) de-stapled Abacus Storage King (ASK AU), its self-storage business. 
  • Offering 1 ASK share for every 5.6 ABP share, the REIT raised A$225m (US$150m) after the deal was priced at the bottom end of the indicative price band at A$1.41/share.
  • The deal is effectively an IPO, and after having been in the making for some time now, it is well flagged as well.

(Mostly) Asia M&A, July 2023: Costa Group, Pacific Current, IMAX, Takisawa Machine Tools, Yachiyo

By David Blennerhassett

  • For the month of July 2023, 6 new deals (firm and non-binding) were discussed on Smartkarma with an overall announced deal size of ~US$2.2bn.
  • The average premium for the new deals announced (or first discussed) in July was 40%. The average YTD is 36%.
  • This compares to the average premium for all deals in 2022 (106 deals), 2021 (165 deals), 2020 (158 deals), and 2019 (145 deals) of 41%, 33%, 31%, and 31% respectively.

Rent.com.au Ltd – Advertising Recovers, Strong Customer Growth in RentPay

By Research as a Service (RaaS)

  • Rent.com.au Limited (ASX:RNT) is a purpose-led company seeking to empower home renters through its technology platform and a growing number of aligned transactional services.
  • The company has reported Q4 FY23 revenue of $0.71m, up 12% on the seasonally strongest March 2023 quarter, but down 20% on the previous corresponding period (pcp) of FY22.
  • Underlying EBITDA was an estimated loss of $0.71m, compared with an EBITDA loss of $0.42m in Q4 FY22, with the bulk of the loss attributable to the investment in RentPay ($0.679m). 

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Aug 01
0

Daily Brief Crypto: Analysis: The Impact of Binance’s Zero-Fee Markets and more

By | Crypto, Daily Briefs

In today’s briefing:

  • Analysis: The Impact of Binance’s Zero-Fee Markets

Analysis: The Impact of Binance’s Zero-Fee Markets

By Kaiko

  • About a year ago, right as crypto trade volumes started to slump in the aftermath of the Celsius and Terra collapses, Binance vastly expanded its zero-fee trading promotions to 13 BTC pairs.
  • This practice, though not new, had never been implemented on such a large scale.
  • However, just nine months later the exchange decided to reverse this strategy and adopt a more selective approach.

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Aug 01
0

Daily Brief Event-Driven: JAPAN PASSIVE: Who Owns What 2023? and more

By | Daily Briefs, Event-Driven

In today’s briefing:

  • JAPAN PASSIVE: Who Owns What 2023?
  • Nikkei 225 Index Rebalance Preview (Sep 2023): Final Look as Review Period Ends
  • End of Mandatory Lock-Up Periods for 40 Companies in Korea in August 2023
  • Toshiba – Earnings Preview 1QFY24
  • Macquarie Korea Infra Fund Announces A Rights Offering Worth 361 Billion Won
  • EQD | Nikkei 225 (NKY) MONTHLY Trajectories
  • (Mostly) Asia M&A, July 2023: Costa Group, Pacific Current, IMAX, Takisawa Machine Tools, Yachiyo

JAPAN PASSIVE: Who Owns What 2023?

By Travis Lundy

  • The 2023 Version of JAPAN PASSIVE: Who Owns What? where we break down the major (and minor) passive tracking indices and which category of investor owns how much of each. 
  • Even if you do not “play” index changes, understanding impact is important. Advantest is up 100% in 3mos. Existing passive ownership and new passive buying were crucial to that performance.
  • Understanding the nature of the ownership and flows is crucial to understanding how to trade certain stocks in Japan. 

Nikkei 225 Index Rebalance Preview (Sep 2023): Final Look as Review Period Ends

By Brian Freitas

  • The review period for the Nikkei 225 (NKY) September rebalance ended yesterday. There should be three index changes, potential stepwise inclusion, no Fast Retailing capping and a big funding trade.
  • There appears to be decent positioning on the potential adds, while it is the close adds that are spiking along with a big increase in traded volumes.
  • If the three changes are on expected lines, estimated one-way turnover at the rebalance is 2.01% resulting in a one-way trade of JPY 461bn (US$3.24bn). 

End of Mandatory Lock-Up Periods for 40 Companies in Korea in August 2023

By Douglas Kim

  • We discuss the end of the mandatory lock-up periods for 40 stocks in Korea in August 2023, among which 2 are in KOSPI and 38 are in KOSDAQ.
  • These 40 stocks on average could be subject to further selling pressures in August and could underperform relative to the market. 
  • Among these 40 stocks, the top five market cap stocks include HK inno.N, PhilEnergy, CJ CGV Co Ltd, Sure Soft Tech, and CanariaBio.

Toshiba – Earnings Preview 1QFY24

By Mio Kato

  • Toshiba announced on Friday that JIP’s upcoming tender offer would not make the July end deadline. 
  • At this point delays for Toshiba are par for the course and we do not think anything needs to be read into this. 
  • With earnings coming up next week we examine the likely trends and the possibility of a revision to guidance.

Macquarie Korea Infra Fund Announces A Rights Offering Worth 361 Billion Won

By Douglas Kim

  • On 28 July, Macquarie Korea Infra Fund (088980 KS) announced that it will conduct a rights offering worth 361 billion won, representing 7.4% of its current market cap. 
  • The major uses of funds from the rights offering include acquisition of a city gas supplier (128 billion won) and investment in Incheon-Gimpo Expressway private investment project (128 billion won).
  • We have a positive view of this rights offering. We believe the acquisition of CN City Energy and the investment in Incheon-Gimpo Expressway will add additional value on the company. 

EQD | Nikkei 225 (NKY) MONTHLY Trajectories

By Nico Rosti

  • The Nikkei 225 (NKY INDEX) rallied +27% in the first 6 months of 2023. 6 months closed up, July closed (barely) down. The index can rise further in Aug/Sep.
  • If August is down, a LONG opportunity: look at support prices between 32391 and 30600,  good probability to see the market going higher from there.
  • If rallying in August, Nikkei could rise between +1.73% (33745) and +3.29% (34265). Continuation of the rally into September could reach higher prices but will encounter resistance at +8.29% (35922).

(Mostly) Asia M&A, July 2023: Costa Group, Pacific Current, IMAX, Takisawa Machine Tools, Yachiyo

By David Blennerhassett

  • For the month of July 2023, 6 new deals (firm and non-binding) were discussed on Smartkarma with an overall announced deal size of ~US$2.2bn.
  • The average premium for the new deals announced (or first discussed) in July was 40%. The average YTD is 36%.
  • This compares to the average premium for all deals in 2022 (106 deals), 2021 (165 deals), 2020 (158 deals), and 2019 (145 deals) of 41%, 33%, 31%, and 31% respectively.

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Aug 01
0

Daily Brief Macro: Emerging Market Funds:  Top-Down Positioning and Fund Flows Update and more

By | Daily Briefs, Macro

In today’s briefing:

  • Emerging Market Funds:  Top-Down Positioning and Fund Flows Update
  • Steno Signals #58 – The One on Banana Republics, Yield Curve Controls and the Yuge EUR Consensus
  • Money Watch – Is money growth BACK?
  • EA: HICP Slowing Slightly in Summer-23
  • The Week That Was in ASEAN@Smartkarma – Astra’s Omnipresence, Grab’s Taxi Win, and AKRA
  • AFC Vietnam Fund July 2023 Report
  • Hong Kong’s Economic Bind
  • Stocks Vs. Commodities Ratio // China Wants to Boost Its Property Sector (But How)
  • Credit Watch: If you SLOOS you lose – the 5 best charts from the SLOOS survey
  • Macro Regime Indicator: PMIs to drive price action together with headline inflation

Emerging Market Funds:  Top-Down Positioning and Fund Flows Update

By Steven Holden

  • Asia underweight funds LATAM overweight.  Asia’s ‘big 4’, account for 64.4% of the average fund.  MENA region suffers from a lack of ownership, with Saudi Arabia held underweight by -2.92%.
  • Tech moves to the top sector holding after capturing strong inflows, displacing Financials which saw heavy outflows and negative rotation.
  • TSMC, Samsung, Tencent and Alibaba are the consensus holding.  All 4 are owned by at least 70% of funds and form the backbone of most active GEM equity funds.

Steno Signals #58 – The One on Banana Republics, Yield Curve Controls and the Yuge EUR Consensus

By Andreas Steno

  • The outlook for the economy, rates, fx and other assets apparently never fails to surprise!
  • We have thankfully made very decent returns through a tough trading week as some of our cyclical rotations had a tremendous start to the week before taking a minor hit when the change of the yield curve regime in Japan was announced.
  • First things first. The decision to move the cap in the 10yr point of the Japanese Government Bond (JGB) curve from 0.5% to 1.0% was a big surprise to many timing-wise.

Money Watch – Is money growth BACK?

By Andreas Steno

  • With the central bank tightening and continuing globally with Fed and ECB hiking rates 25bps and BoJ moving the YCC cap, we have a look at global money trends again today to see if correlations hold and what to expect next in global markets.
  • Main take-aways: M1 growth looks outright horrible in the West, while Asian money trends looks very bullishM2 sub-components are still pointing towards more money flowing into more illiquid time-depositsReal M2 is starting to turn positive.
  • Could reignite inflation and fuel further economic growth.

EA: HICP Slowing Slightly in Summer-23

By Phil Rush

  • EA inflation slowed as expected by 21bp to 5.31% in the Jul-23 flash. Downside news in some member states did not extend to the EA, unlike the trend since Nov-22.
  • Energy prices offset upside news in core inflation again, which is a hawkish mix. It probably isn’t enough to trigger another rate hike in September.
  • A similar slight slowing remains likely in August before September steps down more broadly. HICP inflation should reach a welcome 2-handle in the Autumn.

The Week That Was in ASEAN@Smartkarma – Astra’s Omnipresence, Grab’s Taxi Win, and AKRA

By Angus Mackintosh

AFC Vietnam Fund July 2023 Report

By Asia Frontier Capital

  • In July, the Vietnamese stock market received robust backing from local retail investors who were enthused by the positive macro-economic indicators, leading to an upswing in investment sentiment.
  • As a result, the VN-Index surged by an impressive 9.11%, reaching 1,222.9 points and surpassing the critical 1,200 level.
  • This marked a significant milestone for the market.
     

Hong Kong’s Economic Bind

By Untying The Gordian Knot

  • We can observe a similar situation of temporarily tight liquidity when we compare Overnight or 1-week HIBOR to 1-month HIBOR, which tends to be more volatile.
  • However, it is worth noting that the curve remains flat from 1 week to three months.
  • In December, yields peaked, and the curve remained steep, possibly due to year-end demand.

Stocks Vs. Commodities Ratio // China Wants to Boost Its Property Sector (But How)

By The Commodity Report

  • The Chinese Communist Party’s Politburo, one of the country’s top decision-making bodies, on Monday, released a statement outlining plans to boost the country’s ailing property sector.

  • But it didn’t give much detail or signal any major measures as some commodity traders had hoped.

  • This uncertainty was also perfectly displayed in the price action of copper.

Credit Watch: If you SLOOS you lose – the 5 best charts from the SLOOS survey

By Andreas Steno

  • The ECB survey on credit conditions in the Euro area was out last week, and it revealed a small rebound in both the ease of getting credit and the demand for getting credit.
  • The trends are interestingly slightly weaker in the US SLOOS survey, which is the first hint of a US Economy, which may surprise negatively 2-3 quarters ahead relatively to Europe.
  • Yes, I see a rate of change move from a very negative number to a slightly less negative number as a positive, as markets care about the rate of change and not nominal levels, even if it means that demand is still subdued.

Macro Regime Indicator: PMIs to drive price action together with headline inflation

By Andreas Steno

  • Every month, we assess the risk/reward in asset allocation via our Macro Regime Indicator framework, where we use our asset allocation model to provide input for our thought process and positioning ahead of the new month’s trading.
  • In early July we wrote that: “We remain a bit split on whether we will see a pronounced change of the Macro Regime from “down, down, down” (in liquidity, inflation and growth) to Goldilocks without QE with inflation down, liquidity down and growth slightly up.
  • Our portfolio will hence combine the best of the two regimes for the month of July.

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Aug 01
0

Daily Brief Thailand: SCG Decor PCL and more

By | Daily Briefs, Thailand

In today’s briefing:

  • SCG Decor Pre-IPO Tearsheet

SCG Decor Pre-IPO Tearsheet

By Clarence Chu

  • SCG Decor PCL (SCGD TB) is looking to raise at least US$100m in its upcoming Thailand IPO.
  • SCG Decor (SCGD) is Siam Cement Group’s core company in the decor surfaces and bathroom business.
  • Primarily operating via its subsidiaries, the firm is a manufacturer of floor and wall tiles domestically and abroad, including ASEAN markets such as Vietnam, the Philippines and Indonesia.

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Aug 01
0

Daily Brief South Korea: CJ CGV Co Ltd, Macquarie Korea Infra Fund and more

By | Daily Briefs, South Korea

In today’s briefing:

  • End of Mandatory Lock-Up Periods for 40 Companies in Korea in August 2023
  • Macquarie Korea Infra Fund Announces A Rights Offering Worth 361 Billion Won

End of Mandatory Lock-Up Periods for 40 Companies in Korea in August 2023

By Douglas Kim

  • We discuss the end of the mandatory lock-up periods for 40 stocks in Korea in August 2023, among which 2 are in KOSPI and 38 are in KOSDAQ.
  • These 40 stocks on average could be subject to further selling pressures in August and could underperform relative to the market. 
  • Among these 40 stocks, the top five market cap stocks include HK inno.N, PhilEnergy, CJ CGV Co Ltd, Sure Soft Tech, and CanariaBio.

Macquarie Korea Infra Fund Announces A Rights Offering Worth 361 Billion Won

By Douglas Kim

  • On 28 July, Macquarie Korea Infra Fund (088980 KS) announced that it will conduct a rights offering worth 361 billion won, representing 7.4% of its current market cap. 
  • The major uses of funds from the rights offering include acquisition of a city gas supplier (128 billion won) and investment in Incheon-Gimpo Expressway private investment project (128 billion won).
  • We have a positive view of this rights offering. We believe the acquisition of CN City Energy and the investment in Incheon-Gimpo Expressway will add additional value on the company. 

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Aug 01
0

Daily Brief Indonesia: Cisarua Mountain Dairy, Cinema XXI, Lippo Karawaci, Sino-Ocean Group and more

By | Daily Briefs, Indonesia

In today’s briefing:

  • Cisarua Mountain Dairy (CMRY IJ) – Yoghurt Sticks and Meatballs
  • Nusantara Sejahtera Raya (Cinema XXI) IPO Trading – Should Be a Steady Listing
  • Lippo Karawaci – Earnings Flash – H1 FY 2023 Results – Lucror Analytics
  • Morning Views Asia: Country Garden Holdings Co, Pan Brothers, Pertamina Geothermal Energy PT

Cisarua Mountain Dairy (CMRY IJ) – Yoghurt Sticks and Meatballs

By Angus Mackintosh

  • Cisarua Mountain Dairy (CMRY IJ) remains one of the most interesting and dynamic staple players in Indonesia, with a leading position in yoghurt and growing strength in consumer foods. 
  • CMRY continues to achieve strong top-line growth of +21% in 1H2023, with consumer foods driving growth and 50% of sales but we expect dairy to see better performance in 2H2023. 
  • Cisarua Mountain Dairy (CMRY IJ) continues to invest in marketing through digital channels, including TikTok. Valuations remain attractive relative to its growth prospects, with more than 20% 3-year EPS CAGR.

Nusantara Sejahtera Raya (Cinema XXI) IPO Trading – Should Be a Steady Listing

By Sumeet Singh

  • Cinema XXI raised around US$150m in its Indonesia IPO, after pricing at the bottom-end.
  • Cinema XXI is a premium theatrical exhibition, F&B and experience company. It is the largest cinema chain operator in Indonesia.
  • We have looked at the company’s past performance and undertaken a peer comparison and valuation in our earlier notes. In this note, we talk about the trading dynamics.

Lippo Karawaci – Earnings Flash – H1 FY 2023 Results – Lucror Analytics

By Trung Nguyen

Lippo Karawaci’s (LPKR) H1/23 results were much better than expected, and showed that the company was on track to achieve its turnaround goals. All business segments performed well, with healthcare again the largest contributor to revenue and earnings. Still, we note positively that the real estate segment’s performance was in line with guidance amid a challenging operating environment, with high and rising interest rates. Conversely, the financial risk profile remains weak, with elevated leverage ratios and thin fixed charge cover. Liquidity is barely adequate.

The healthcare segment continues to be LPKR’s key pillar, accounting for two-thirds of revenue and boasting strong (and improved) EBITDA. Moreover, we note that the segment should be relatively immune to the volatility in the economy.

Morning Views Asia: Country Garden Holdings Co, Pan Brothers, Pertamina Geothermal Energy PT

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.

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Aug 01
0

Daily Brief United States: Copper, Bitcoin Pro, Spdr Portfolio High Yield Bo and more

By | Daily Briefs, United States

In today’s briefing:

  • Stocks Vs. Commodities Ratio // China Wants to Boost Its Property Sector (But How)
  • Analysis: The Impact of Binance’s Zero-Fee Markets
  • SPHY ETF: Rare Opportunity For Price Gains

Stocks Vs. Commodities Ratio // China Wants to Boost Its Property Sector (But How)

By The Commodity Report

  • The Chinese Communist Party’s Politburo, one of the country’s top decision-making bodies, on Monday, released a statement outlining plans to boost the country’s ailing property sector.

  • But it didn’t give much detail or signal any major measures as some commodity traders had hoped.

  • This uncertainty was also perfectly displayed in the price action of copper.

Analysis: The Impact of Binance’s Zero-Fee Markets

By Kaiko

  • About a year ago, right as crypto trade volumes started to slump in the aftermath of the Celsius and Terra collapses, Binance vastly expanded its zero-fee trading promotions to 13 BTC pairs.
  • This practice, though not new, had never been implemented on such a large scale.
  • However, just nine months later the exchange decided to reverse this strategy and adopt a more selective approach.

SPHY ETF: Rare Opportunity For Price Gains

By Pearl Gray Equity and Research

  • Key indicators suggest the SPDR® Portfolio High Yield Bond ETF might benefit from price returns in the coming quarters.
  • Investors will soon “down credit” and “down duration” amid receding market risk premiums coupled with an improving U.S. current account, we say.
  • Today’s analysis covers the SPDR® Portfolio High Yield Bond ETF (NYSEARCA:SPHY), which is a U.S.-centric high-yield corporate bond exchange-traded fund, or ETF, managed by State Street Global Advisors.

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