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Smartkarma Daily Briefs

Jul 17
0

Daily Brief Consumer: Sumber Alfaria Trijaya Tbk Pt, Whole Earth Brands Inc and more

By | Consumer, Daily Briefs

In today’s briefing:

  • Sumber Alfaria Trijaya (AMRT IJ) – Talking Mini-Markets and Convenience
  • A Spoonful of Reality

Sumber Alfaria Trijaya (AMRT IJ) – Talking Mini-Markets and Convenience

By Angus Mackintosh

  • Sumber Alfaria Trijaya (AMRT IJ) booked some strong SSSG for June bringing its YTD number into line with its FY2023 projections after post Lebaran adjustment in May. 
  • The company will embark on a more aggressive store rollout for this year with plans for 2,100 new stores, including 200 Alfamidi stores and 500 Lawson convenience stores. 
  • Sumber Alfaria Trijaya Tbk Pt (AMRT IJ) continues to grow its membership program under AlfaGift with 16.3m members, which helps to gather valuable data and grow sales. Valuations are attractive.  

A Spoonful of Reality

By subSPAC

  • Whole Earth Brands, a sustainable sweetener firm, has seen a slowdown in growth, tightening margins, and rising debt since going public.
  • Despite the odds, the company is countering these challenges with a strategy that includes cost reduction, improved distribution, and portfolio expansion.
  • A recent buyout proposal from the company’s largest shareholder has added a new dimension to the company’s future. 

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Jul 17
0

Daily Brief Financials: Korea Stock Exchange KOSPI 200, Nikkei 225, Agung Podomoro Land and more

By | Daily Briefs, Financials

In today’s briefing:

  • EQD | KOSPI 200 Index WEEKLY Rising: How Far Can It Go?
  • EQD | Nikkei 225 (NKY) WEEKLY Falling: Support (Short-Term)
  • Morning Views Asia: Agung Podomoro Land, Azure Power Global Ltd

EQD | KOSPI 200 Index WEEKLY Rising: How Far Can It Go?

By Nico Rosti

  • A previously published insight correctly highlighted an high-probability opportunity to go LONG and join the KOSPI 200‘s current multi-month Bull run.
  • The index closed the week strongly up, now we want to evaluate how far this new leg up could go: a total of +3/+4 weeks up, price targets =359-385.
  • Holders of KOSPI 200 LONG positions: Covered Calls can be written at Strikes between 346 and 360, expiry August 10th (4 weeks). A pullback is highly probable from 360.

EQD | Nikkei 225 (NKY) WEEKLY Falling: Support (Short-Term)

By Nico Rosti

  • Nikkei 225 (NKY INDEX) has pulled back from its peak. Direction currently unclear but last week’s positive Close was super weak (+0.1%) , may lead to lower prices this week.
  • If the index falls this week, a -1 or -2 weeks down is the most common pattern, followed by a rebound. Reversal probability is =75% for -2 weeks down.
  • Valid support levels for buy-the-dips are between 32067 and 31554. If lower, up to -3 weeks down this pattern is still bullish, from -4 weeks it turns bearish.

Morning Views Asia: Agung Podomoro Land, Azure Power Global Ltd

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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Jul 17
0

Daily Brief Quantitative Analysis: HK Short Interest Weekly: ABC and more

By | Daily Briefs, Quantitative Analysis

In today’s briefing:

  • HK Short Interest Weekly: ABC, ICBC, Li Ning
  • A-H Premium Weekly (Jul 14th): 52 Week High A-H for Banks
  • Hong Kong Connect Flows (Jul 14th): Meituan, BYD
  • Northbound Flows (Jul 14th): Moutai, CATL, Wuliangye, Yangtze Power, China Telecom, Haitian

HK Short Interest Weekly: ABC, ICBC, Li Ning

By Ke Yan, CFA, FRM

  • We analyzed the latest HK SFC report for aggregate short position as of Jul 7th.
  • Top short increases and decreases were tabulated for one week and four week period. 
  • We highlight changes of short interests in ABC, ICBC, Li Ning.

A-H Premium Weekly (Jul 14th): 52 Week High A-H for Banks

By Ke Yan, CFA, FRM

  • We analyse the changes of A-H premium on 143 stocks over the last week. The average A-H premium was 117.2% as of Jul 14th.
  • The average A-H premium changed by -3.0ppt week on week, led by consumer discretionary, consumer staples, utilities and offset by real estate, communication services.
  • We highlight weekly changes in A-H premium for BankComm, ICBC, ABC, CCB, Remegen.

Hong Kong Connect Flows (Jul 14th): Meituan, BYD

By Ke Yan, CFA, FRM

  • We analyze the weekly Hong Kong Connect flows with our data engine for holding position as of July 14th.
  • The top stocks by inflows and outflows were tabulated for all market, HSCEI, mid cap and s/mid cap groups.
  • We estimate the outflows to be USD 538m and highlight flows for Meituan, BYD.

Northbound Flows (Jul 14th): Moutai, CATL, Wuliangye, Yangtze Power, China Telecom, Haitian

By Ke Yan, CFA, FRM

  • We analyze the weekly Shanghai/Shenzhen northbound Connect flows with our data engine for holding position as of July 14th.
  • We estimate the weekly inflows to be US$2,869.4 million, led by consumer discretionary, consumer staples, financials sectors.
  • We highlight flows for Moutai, CATL, Wuliangye, China Yangtze Power, China Telecom, Inspur Electronic Information Industry, Tcl Technology, China Mobile, BYD, Haitian Flavouring, Wus Printed Circuit (Kunshan).

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Jul 17
0

Daily Brief Credit: Morning Views Asia: Agung Podomoro Land and more

By | Credit, Daily Briefs

In today’s briefing:

  • Morning Views Asia: Agung Podomoro Land, Azure Power Global Ltd

Morning Views Asia: Agung Podomoro Land, Azure Power Global Ltd

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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Jul 17
0

Daily Brief Thematic (Sector/Industry): Semiconductor Events Deserving Your Attention @ 16/7/23 and more

By | Daily Briefs, Thematic (Sector/Industry)

In today’s briefing:

  • Semiconductor Events Deserving Your Attention @ 16/7/23
  • Japan Screen | Nice Niche Names
  • Semicon West: Big Shifts in the NAND Market
  • Weekly Stock Bullfinder – Week of 7/17
  • SPAC TALK – SPACs and Disappearing Projections

Semiconductor Events Deserving Your Attention @ 16/7/23

By William Keating

  • Gartner reports Q2’23 PC unit shipments amounted to 59.7 million units, a decrease of 16.6% YoY, but an increase of ~8% QoQ
  • TSMC Q2’23 revenue will marginally exceed midpoint of the guided range.
  • Intel CEO second trip to China in 3 months heightens speculation about China’s approval of the pending Tower Semi acquisition. 

Japan Screen | Nice Niche Names

By Mark Chadwick

  • METI identified 113 Japanese companies that were global niche winners – high market share, high margins, and high ratio of overseas sales
  • METI has done a pretty good job of selecting “quality companies” – the group enjoys higher margins and returns on capital than the average Japanese company
  • We screen for the “best of the best” and pick out MANI, one company that has underperformed this year

Semicon West: Big Shifts in the NAND Market

By Douglas O’Laughlin

  • Semicon West is “back”! Participation this year was up 65% compared to 2022, and I believe it’s an all-time high for visitors! Over 25,000 attendees came to Semicon this year, and that’s the best sign that semiconductor manufacturing in the US is back!
  • Amid Applied Material’s new tool Vistara, Lam Research talking about their simulation platform, and Tokyo Electron talking about a new etch tool, there was a flurry of news and product announcements.
  • The most exciting piece of news is Tokyo Electron’s cryogenic etch product. Their new product is a big deal.

Weekly Stock Bullfinder – Week of 7/17

By Weekly Stock Bull Finder

  • After witnessing a parabolic advance at the beginning of the Federal Reserve’s tightening cycle in early 2022, the US dollar has decisely break down below prior weekly support levels in a large bearish engulfing candle last week.
  • This breakdown can serve as a tailwind for multi-nationals (especially technology names), commodities, emerging markets, treasuries, and cryptos.
  • The dollar is now sitting at a 15 month low. This decline may not be over as the MACD indicator is now crossing down.

SPAC TALK – SPACs and Disappearing Projections

By Water Tower Research

  • A quiet July…so far. July has been a relatively quiet month to date.
  • Two SPAC IPOs have been priced, which is par for the course in the context of the low-single digit numbers we have been reporting the past twelve months.
  • The exit doors also seem to be less crowded this month, with only nine SPACs scheduled for liquidations vs the average twenty per month that elected to liquidate their trust funds in the first half of the year.

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Jul 17
0

Daily Brief Event-Driven: SK Telecom (017670 KS): Foreign Room Increase Has Implications and more

By | Daily Briefs, Event-Driven

In today’s briefing:

  • SK Telecom (017670 KS): Foreign Room Increase Has Implications
  • Merger Arb Mondays (17 Jul) – Chindata, Eoflow, JSR, IMAX, Mason, Estia, Musgrave, Origin, InvoCare
  • Lutronic Tender Offer by Hahn & Company: 2nd Round
  • Quiddity Leaderboard ASX Sep 23: Intra-Review Replacement for BKL and Many Other Expected Changes
  • EQD | KOSPI 200 Index WEEKLY Rising: How Far Can It Go?
  • EQD | Nikkei 225 (NKY) WEEKLY Falling: Support (Short-Term)
  • Liquid Universe of European Ordinary and Preferred Shares: July‘23 Report

SK Telecom (017670 KS): Foreign Room Increase Has Implications

By Brian Freitas

Merger Arb Mondays (17 Jul) – Chindata, Eoflow, JSR, IMAX, Mason, Estia, Musgrave, Origin, InvoCare

By Arun George

Lutronic Tender Offer by Hahn & Company: 2nd Round

By Douglas Kim

  • According to local media (Seoul Economic Daily), Hahn & Company plans to make a second round of tender offer for Lutronic Corp, in order to meet the delisting requirements.  
  • The tender offer price is 36,700 won, the same as the first tender offer price.
  • We believe that Hahn & Co is likely to successfully complete this second round of tender offer of Lutronic and it is likely to be delisted in the coming months.

Quiddity Leaderboard ASX Sep 23: Intra-Review Replacement for BKL and Many Other Expected Changes

By Janaghan Jeyakumar, CFA

  • In this insight, we take a look at the potential index changes for ASX 300, 200, 100, 50, and 20 in the run up to the September 2023 Rebalance.
  • Blackmores Ltd (BKL AU) could get deleted from the index family, triggering intra-review changes in the next few days.
  • Including the intra-review changes, ASX 300 could see 12 ADDs and 10 DELs, ASX 200 could see 4 changes, and ASX 100 could see one change between now and September.

EQD | KOSPI 200 Index WEEKLY Rising: How Far Can It Go?

By Nico Rosti

  • A previously published insight correctly highlighted an high-probability opportunity to go LONG and join the KOSPI 200‘s current multi-month Bull run.
  • The index closed the week strongly up, now we want to evaluate how far this new leg up could go: a total of +3/+4 weeks up, price targets =359-385.
  • Holders of KOSPI 200 LONG positions: Covered Calls can be written at Strikes between 346 and 360, expiry August 10th (4 weeks). A pullback is highly probable from 360.

EQD | Nikkei 225 (NKY) WEEKLY Falling: Support (Short-Term)

By Nico Rosti

  • Nikkei 225 (NKY INDEX) has pulled back from its peak. Direction currently unclear but last week’s positive Close was super weak (+0.1%) , may lead to lower prices this week.
  • If the index falls this week, a -1 or -2 weeks down is the most common pattern, followed by a rebound. Reversal probability is =75% for -2 weeks down.
  • Valid support levels for buy-the-dips are between 32067 and 31554. If lower, up to -3 weeks down this pattern is still bullish, from -4 weeks it turns bearish.

Liquid Universe of European Ordinary and Preferred Shares: July‘23 Report

By Jesus Rodriguez Aguilar

  • Since mid-June, spreads have generally widened across our liquid universe (10 have widened, 8 widened, 1 at same level).
  • Recommended trades long ordinary / short preferred shares: Fuchs, Henkel, Schindler, SSAB Svenska Stal.
  • Recommended trades long preferred / short ordinary shares: Carlsberg, Ericsson, Media-for-Europe, Sixt, VW, Grifols, Atlas Copco.

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Jul 17
0

Daily Brief Macro: Positioning Watch – Preparing for (dis)inflation? and more

By | Daily Briefs, Macro

In today’s briefing:

  • Positioning Watch – Preparing for (dis)inflation?
  • What Next for US Equity-Bond Yield Correlations? Fiscal & Monetary Policy Conduct Takes Centre Stage
  • The Soft Landing Vs. Slowdown Debate
  • Steno Signals #57 – What on earth is going on with the USD?
  • What to Watch For in a Pivotal Earnings Season

Positioning Watch – Preparing for (dis)inflation?

By Emil Moller

  • Welcome back to the weekly Positioning Watch, where we crunch through the positioning data and point out the biggest positioning trends in global markets.
  • Main takeaway: Bond bears had a significant setback this week following a mild inflation report – and that comes after a substantial surge in yields the previous week.
  • Now, we eagerly examine the market’s repositioning here in the aftermath of the reversal.

What Next for US Equity-Bond Yield Correlations? Fiscal & Monetary Policy Conduct Takes Centre Stage

By Said Desaque

  • The correlation between US bond yields and equity prices has shifted over time and has been heavily influenced by changes in the inflationary backdrop and Fed policy credibility.
  • Bond investors have embraced a secular stagnation thesis for the US economy (low growth and inflation), putting them on collision course with the Fed about the appropriate conduct of policy.
  • Prospective fiscal policy conduct could have a major impact on the correlation between bond yields and equities as testified by the events of October 1987.

The Soft Landing Vs. Slowdown Debate

By Cam Hui

  • Team Soft Landing and Team Slowdown are engaged in a cage match
  • Incoming data in the coming weeks will decide the winner.
  • In the short run, the market is overbought and posed for a period of consolidation or correction.

Steno Signals #57 – What on earth is going on with the USD?

By Andreas Steno

  • Happy Sunday and welcome to our weekly flagship publication “Steno Signals”.
  • We have had a great week trading-wise except for being stopped out in our EUR/USD shorts and we find the price action in the USD extremely interesting to assess.
  • Could the moves we see in FX space be a harbinger of an unexpected cyclical rebound?

What to Watch For in a Pivotal Earnings Season

By Cam Hui

  • The upcoming Q2 earnings reporting season could be pivotal for investors.
  • The direction of the economy and the earnings outlook could go either way. There are many questions but no definitive  answers.
  • We offer some signposts to watch for clues to future market direction.

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Jul 17
0

Daily Brief ECM: Weekly Deals Digest (16 Jul) – Socionext and more

By | Daily Briefs, ECM

In today’s briefing:

  • Weekly Deals Digest (16 Jul) – Socionext, Tryt, IMAX, Shougang Resources, Invocare, Musgrave
  • Pre-IPO WuXi XDC – The Beautiful Story and the Truth Behind
  • Guangdong Archealth Health Industry Group Tearsheet

Weekly Deals Digest (16 Jul) – Socionext, Tryt, IMAX, Shougang Resources, Invocare, Musgrave

By Arun George

Pre-IPO WuXi XDC – The Beautiful Story and the Truth Behind

By Xinyao (Criss) Wang

  • Although WuXi XDC has financing needs, we’re more inclined to view this spin-off listing as another capital operation of WuXi AppTec/WuXi Bio, who may not want to take risks alone.
  • Global ADC/broader bioconjugate market is at a nascent stage of development, with high R&D risks/commercialization uncertainties. We cannot guarantee whether WuXi XDC will maintain its industry-leading position in the future.
  • Although high growth can bring good stories, we’re not sure how much actual market space WuXi XDC will have in the future,which is the key to determining the valuation ceiling.

Guangdong Archealth Health Industry Group Tearsheet

By Clarence Chu

  • Guangdong Archealth Health Industry Group (GAHI HK) is looking to raise around US$100m in its upcoming Hong Kong IPO. The bookrunners on the deal are CICC and ABCI.
  • Guangdong Archealth Health Industry Group (GAHI) is a digital health management provider.
  • According to F&S, the firm ranked first in the weight management industry and first in the digital weight management industry in China as per 2022 sales.

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Jul 17
0

Daily Brief Equity Bottom-Up: Sumber Alfaria Trijaya (AMRT IJ) – Talking Mini-Markets and Convenience and more

By | Daily Briefs, Equity Bottom-Up

In today’s briefing:

  • Sumber Alfaria Trijaya (AMRT IJ) – Talking Mini-Markets and Convenience
  • Taiwan Dual-Listings Monitor: TSMC Premium Staying High Ahead of Earnings This Week; UMC at Par
  • High Conviction Shift: Upbeat Quarter, Share Price Up More Than 39% YTD and There’s Further Upside
  • New Horizon Health 1H23: Management Call Takeaway
  • Union Gas Holdings’ Teo Hark Piang ups stake to 8.05%
  • [JD Logistics (2618 HK, SELL, TP HK$9.4) TP Change]: Premium Parcel Delivery Is Increasingly Crowded
  • REIT Watch – 10 S-Reits which outperformed in H1
  • A Spoonful of Reality

Sumber Alfaria Trijaya (AMRT IJ) – Talking Mini-Markets and Convenience

By Angus Mackintosh

  • Sumber Alfaria Trijaya (AMRT IJ) booked some strong SSSG for June bringing its YTD number into line with its FY2023 projections after post Lebaran adjustment in May. 
  • The company will embark on a more aggressive store rollout for this year with plans for 2,100 new stores, including 200 Alfamidi stores and 500 Lawson convenience stores. 
  • Sumber Alfaria Trijaya Tbk Pt (AMRT IJ) continues to grow its membership program under AlfaGift with 16.3m members, which helps to gather valuable data and grow sales. Valuations are attractive.  

Taiwan Dual-Listings Monitor: TSMC Premium Staying High Ahead of Earnings This Week; UMC at Par

By Vincent Fernando, CFA

  • TSMC: 9.9% premium, continues to stay above one standard deviation from historical median… Earnings coming this week.
  • UMC: 0.0% ADR premium… Trading on par with local shares… Earnings next week.
  • Chunghwa Telecom: -0.8% discount represents relatively deep discount vs. history.

High Conviction Shift: Upbeat Quarter, Share Price Up More Than 39% YTD and There’s Further Upside

By Shifara Samsudeen, ACMA, CGMA

  • Shift reported 3QFY08/2023 results on Friday and the company’s revenues increased 34.2% YoY and OP more than doubled during the quarter. Both revenue and OP beat consensus estimates.
  • Conclusion of unprofitable projects and expansion into upstream services have helped earnings to expand, and we expect full-year earnings to comfortably beat guidance and consensus estimates.
  • Shift’s share price moved up by 19% following earnings announcement and has been up more than 39% YTD, and we would recommend holding on as there is further upside.

New Horizon Health 1H23: Management Call Takeaway

By Ke Yan, CFA, FRM

  • New Horizon Health reported a solid set of preliminary results for 1H2023
  • We speak to the company’s management post result announcement to figure out the key drivers and summarize the key points in this note.
  • The company upgraded its full year guidance and is on track to meet its long term target.

Union Gas Holdings’ Teo Hark Piang ups stake to 8.05%

By Geoff Howie

  • Union Gas Holdings’ Teo Hark Piang ups stake to 8.05% Seatrium, Wilmar International, Singapore Airlines (SIA), UOL Group and DBS Group led the net institutional inflow for the five sessions.
  • With over 40 years of operating track record, Union Gas Holdings’ three key businesses comprise liquefied petroleum gas (LPG), natural gas, and diesel.

[JD Logistics (2618 HK, SELL, TP HK$9.4) TP Change]: Premium Parcel Delivery Is Increasingly Crowded

By Shawn Yang

  • We expect JDL to report C2Q23 revenue and non-IFRS net profit margin (1.5%) and 0.4ppts vs. consensus. We expect 2Q revenue (excl. Deppon) to grow 5%~ YoY .
  • JDL is facing increasing competition from (1) the recent launch of Cainiao’s high-end delivery service, (2) improved ZTO service, and (2) Douyin’s actions to increasingly in-source logistics.
  • We maintain JDL’s SELL rating but raise its TP to HK$ 9.4, as we expect JDL will lower staffing costs, and by reducing staff redundancy.

REIT Watch – 10 S-Reits which outperformed in H1

By Geoff Howie

  • SINGAPORE-LISTED real estate investment trusts (S-Reits) continue to hold up despite decelerating global growth, with the iEdge S-Reit Index generating 2.1 per cent in total returns in the first half of 2023, outperforming the Straits Times Index’s 1.2 per cent and the FTSE EPRA Nareit Asia ex Japan Index’s -1.7 per cent.
  • The 10 S-Reits were Keppel DC Reit, Cromwell European Reit (Cromwell E-Reit), Frasers Logistics & Commercial Trust, Frasers Hospitality Trust, Paragon Reit, Frasers Centrepoint Trust, Aims Apac Reit, ParkwayLife Reit, CapitaLand India Trust, and CapitaLand Ascott Trust.
  • Outperformance was driven across specialised, healthcare and hospitality sub-sectors at 7.5 per cent, 5.2 per cent, and 4.1 per cent total returns respectively.

A Spoonful of Reality

By subSPAC

  • Whole Earth Brands, a sustainable sweetener firm, has seen a slowdown in growth, tightening margins, and rising debt since going public.
  • Despite the odds, the company is countering these challenges with a strategy that includes cost reduction, improved distribution, and portfolio expansion.
  • A recent buyout proposal from the company’s largest shareholder has added a new dimension to the company’s future. 

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Jul 17
0

Most Read: Cameco Corp, Liontown Resources, Neuren Pharmaceuticals, SK Telecom, Samsung C&T, Celltrion Inc, Chindata Group, Lutronic Corp, Taiwan Semiconductor (TSMC) – ADR and more

By | Daily Briefs, Most Read

In today’s briefing:

  • Solactive Global Uranium & Nuclear Components Index Rebalance Preview: Potential Changes
  • S&P/​​​​​​​​ASX Index Rebalance Preview: Potential Changes in September
  • Index Rebalance & ETF Flow Recap: ASX, Chinext, URA, Korea Stocks, NKY
  • SK Telecom (017670 KS): Foreign Room Increase Has Implications
  • Korean Holdcos Vs Opcos Gap Trading Opportunities in 3Q 2023
  • Last Week in Event SPACE: Celltrion, Fast Retailing, Canon, Costa, Chindata
  • Merger Arb Mondays (17 Jul) – Chindata, Eoflow, JSR, IMAX, Mason, Estia, Musgrave, Origin, InvoCare
  • Lutronic Tender Offer by Hahn & Company: 2nd Round
  • Taiwan Dual-Listings Monitor: TSMC Premium Staying High Ahead of Earnings This Week; UMC at Par
  • Quiddity Leaderboard ASX Sep 23: Intra-Review Replacement for BKL and Many Other Expected Changes

Solactive Global Uranium & Nuclear Components Index Rebalance Preview: Potential Changes

By Brian Freitas

  • Based on prices and turnover from 10 July, there could be one deletion from the index in July. Plus there will be capping and float changes.
  • There are four stocks that meet the inclusion criteria but all are non-pure play companies and the index is already at the limit of 15 non-pure play companies.
  • There will be a large impact on a lot of stocks but the flows are not very large due to the limited assets tracking the index.

S&P/​​​​​​​​ASX Index Rebalance Preview: Potential Changes in September

By Brian Freitas

  • We forecast 22 changes across the ASX50 Index, ASX100 Index, S&P/ASX 200 (AS51 INDEX) and ASX300 Index at the September rebalance.
  • Some of the changes are high probability while others are close to cutoffs. The impact of passive trading will be pretty large on a lot of stocks.
  • Short interest on the potential deletes indicates some pre-positioning but there should still be a fair bit more to do.

Index Rebalance & ETF Flow Recap: ASX, Chinext, URA, Korea Stocks, NKY

By Brian Freitas

SK Telecom (017670 KS): Foreign Room Increase Has Implications

By Brian Freitas

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.

Last Week in Event SPACE: Celltrion, Fast Retailing, Canon, Costa, Chindata

By David Blennerhassett

  • According to Invest Chosun, Celltrion Inc (068270 KS) plans to submit a merger registration statement to the KRX in July, with Mirae Asset Securities acting as the lead underwriter.
  • 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%.
  • Canon (7751 JP)‘s most recent buyback should be done now-ish. They have been ~15-20% of volume over the past month. The Trade would be short Canon vs Ricoh (7752 JP).

Merger Arb Mondays (17 Jul) – Chindata, Eoflow, JSR, IMAX, Mason, Estia, Musgrave, Origin, InvoCare

By Arun George

Lutronic Tender Offer by Hahn & Company: 2nd Round

By Douglas Kim

  • According to local media (Seoul Economic Daily), Hahn & Company plans to make a second round of tender offer for Lutronic Corp, in order to meet the delisting requirements.  
  • The tender offer price is 36,700 won, the same as the first tender offer price.
  • We believe that Hahn & Co is likely to successfully complete this second round of tender offer of Lutronic and it is likely to be delisted in the coming months.

Taiwan Dual-Listings Monitor: TSMC Premium Staying High Ahead of Earnings This Week; UMC at Par

By Vincent Fernando, CFA

  • TSMC: 9.9% premium, continues to stay above one standard deviation from historical median… Earnings coming this week.
  • UMC: 0.0% ADR premium… Trading on par with local shares… Earnings next week.
  • Chunghwa Telecom: -0.8% discount represents relatively deep discount vs. history.

Quiddity Leaderboard ASX Sep 23: Intra-Review Replacement for BKL and Many Other Expected Changes

By Janaghan Jeyakumar, CFA

  • In this insight, we take a look at the potential index changes for ASX 300, 200, 100, 50, and 20 in the run up to the September 2023 Rebalance.
  • Blackmores Ltd (BKL AU) could get deleted from the index family, triggering intra-review changes in the next few days.
  • Including the intra-review changes, ASX 300 could see 12 ADDs and 10 DELs, ASX 200 could see 4 changes, and ASX 100 could see one change between now and September.

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