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Smartkarma Daily Briefs

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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Jul 16
0

Daily Brief United States: Allstate Corp, Bank Of New York Mellon, Molson Coors Brewing Co B, State Street and more

By | Daily Briefs, United States

In today’s briefing:

  • The Allstate Corporation: Initiation of Coverage – What Is Its Biggest Competitive Advantage? Financial Forecasts
  • Bank of New York Mellon Corp: Initiation of Coverage – Business Strategy & Other Drivers
  • Molson Coors Beverage Company: Initiation of Coverage – Diversification
  • State Street Corporation: Initiation of Coverage – Business Strategy & Other Drivers

The Allstate Corporation: Initiation of Coverage – What Is Its Biggest Competitive Advantage? Financial Forecasts

By Baptista Research

  • This is our first report on one of the largest insurance companies, the Allstate Corporation.
  • The company had a mediocre quarterly result and saw a 26% year-over-year increase in total revenues, totaling $13.8 billion.
  • This was fueled by a rise in premiums, investment income, and realized capital gains, with total premiums showing a 9% year-over-year growth to reach $12.5 billion, driven by growth across all segments, especially the auto insurance segment which grew 11% year over year.

Bank of New York Mellon Corp: Initiation of Coverage – Business Strategy & Other Drivers

By Baptista Research

  • This iThis is our first report on a global custodian and asset management behemoth, Bank of New York Mellon Corp.
  • This After a surge in deposit balances following recent market fluctuations, BNY Mellon finished the quarter slightly higher than its starting point.
  • The company’s broader liquidity platform, managing over $1.3 trillion of cash and short-term investments, witnessed growth in most channels.

Molson Coors Beverage Company: Initiation of Coverage – Diversification

By Baptista Research

  • This is our first report on global beverage giant, Molson Coors Beverage Company. has exhibited commendable resilience this quarter, particularly with their premium light brands in the U.S.
  • Their brands, Coors Light and Miller Lite, registered double-digit revenue growth, significantly aided by their first Super Bowl campaign in over three decades.
  • We initiate coverage on the stock of Molson Coors Beverage Company with a ‘Hold’ rating.

State Street Corporation: Initiation of Coverage – Business Strategy & Other Drivers

By Baptista Research

  • This is our first report on State Street, a prominent provider of asset servicing and other financial services in the U.S.
  • The company experienced a varied market performance in the second quarter due to continued strength in developed equity markets, weakness in emerging markets, and a subdued market environment.
  • State Street onboarded $1.2 trillion of Assets Under Custody/Administration (AUC/A) primarily through the State Street Alpha platform, underscoring its effectiveness.

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  • ✓ Events & Webinars
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Jul 16
0

Daily Brief South Korea: Celltrion Inc, LG Energy Solution and more

By | Daily Briefs, South Korea

In today’s briefing:

  • Last Week in Event SPACE: Celltrion, Fast Retailing, Canon, Costa, Chindata
  • ECM Weekly (16th July 2023) – LG Energy, Socionext, Plus Alpha, Syngenta, Cinema XXI, Genda, Fadu

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).

ECM Weekly (16th July 2023) – LG Energy, Socionext, Plus Alpha, Syngenta, Cinema XXI, Genda, Fadu

By Sumeet Singh

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Jul 16
0

Daily Brief Australia: Neuren Pharmaceuticals and more

By | Australia, Daily Briefs

In today’s briefing:

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

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

By Brian Freitas

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Jul 16
0

Daily Brief Japan: Tokyo Stock Exchange Tokyo Price Index Topix and more

By | Daily Briefs, Japan

In today’s briefing:

  • Nominating Committee Also Has Problems Achieving Only Formal Criteria of Corporate Governance Code

Nominating Committee Also Has Problems Achieving Only Formal Criteria of Corporate Governance Code

By Aki Matsumoto

  • Nominating Committee’s main activity is the selection of individual director candidates, and the Nominating Committee tends to be less involved in issues related to top management appointments, including succession planning.
  • Although most companies have a majority of independent directors as members of the nominating committee, the nominating committee may in fact be a body that approves top management’s proposals.
  • Companies focus only on prime market listing criteria of “committee establishment and committee member composition” and overlook original intent. The problem is that it’s all about achieving the formal criteria.

💡 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

  • ✓ Unlimited Research Summaries
  • ✓ Personalised Alerts
  • ✓ Custom Watchlists
  • ✓ Company Data and News
  • ✓ Events & Webinars
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Jul 16
0

Daily Brief China: Wharf Real Estate Investment, Hong Kong Hang Seng Index, Unisound AI Technology and more

By | China, Daily Briefs

In today’s briefing:

  • Wharf REIC 1997HK: Should We Bet on HK Luxury Retail? Lack of Catalyst & Weak Chinese Spending Power
  • EQD | Volatility Update: Weekly Review of Vol Changes and Best Trades-Summer Lull
  • Unisound AI Technology IPO: Speech Recognition AI Unicorn And Developer of LLM UniGPT

Wharf REIC 1997HK: Should We Bet on HK Luxury Retail? Lack of Catalyst & Weak Chinese Spending Power

By Jacob Cheng

  • In this insight, we conducted fundamental analysis on Wharf REIC .  It has a simple business model that it operates key malls in HK including Harbour City and Times Square
  • Macro-Wise, despite Wharf REIC should be seeing a recovery trend in terms of retail sales, the weak Chinese economy could pose concern on Wharf REIC’s retail sales
  • Wharf REIC is also facing several headwinds such as high interest cost and weak office market in Hong Kong.  We view the re-rating potential limited despite attractive valuation

EQD | Volatility Update: Weekly Review of Vol Changes and Best Trades-Summer Lull

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

Unisound AI Technology IPO: Speech Recognition AI Unicorn And Developer of LLM UniGPT

By Andrei Zakharov

  • Founded in 2012, Unisound AI Technology is a Beijing-based pioneer in Artificial General Intelligence (AGI). The company offers easy-to-deploy AI products and solutions in China. 
  • Unisound AI Technology seeks to raise capital for R&D activities, international expansion, and general working capital purposes. The company chose CICC and Haitong to tap capital markets with HK IPO. 
  • I like growing brand recognition, in-house 60B-parameter LLM UniGPT, high growth in the Smart Life segment, and the opportunity to sell self-developed proprietary AI chips in China.

💡 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

  • ✓ Unlimited Research Summaries
  • ✓ Personalised Alerts
  • ✓ Custom Watchlists
  • ✓ Company Data and News
  • ✓ Events & Webinars
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Jul 16
0

Daily Brief Consumer: LG Energy Solution, Molson Coors Brewing Co B, Tokyo Stock Exchange Tokyo Price Index Topix and more

By | Consumer, Daily Briefs

In today’s briefing:

  • ECM Weekly (16th July 2023) – LG Energy, Socionext, Plus Alpha, Syngenta, Cinema XXI, Genda, Fadu
  • Molson Coors Beverage Company: Initiation of Coverage – Diversification
  • Nominating Committee Also Has Problems Achieving Only Formal Criteria of Corporate Governance Code

ECM Weekly (16th July 2023) – LG Energy, Socionext, Plus Alpha, Syngenta, Cinema XXI, Genda, Fadu

By Sumeet Singh

Molson Coors Beverage Company: Initiation of Coverage – Diversification

By Baptista Research

  • This is our first report on global beverage giant, Molson Coors Beverage Company. has exhibited commendable resilience this quarter, particularly with their premium light brands in the U.S.
  • Their brands, Coors Light and Miller Lite, registered double-digit revenue growth, significantly aided by their first Super Bowl campaign in over three decades.
  • We initiate coverage on the stock of Molson Coors Beverage Company with a ‘Hold’ rating.

Nominating Committee Also Has Problems Achieving Only Formal Criteria of Corporate Governance Code

By Aki Matsumoto

  • Nominating Committee’s main activity is the selection of individual director candidates, and the Nominating Committee tends to be less involved in issues related to top management appointments, including succession planning.
  • Although most companies have a majority of independent directors as members of the nominating committee, the nominating committee may in fact be a body that approves top management’s proposals.
  • Companies focus only on prime market listing criteria of “committee establishment and committee member composition” and overlook original intent. The problem is that it’s all about achieving the formal criteria.

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

Sign Up for Free

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

  • ✓ Unlimited Research Summaries
  • ✓ Personalised Alerts
  • ✓ Custom Watchlists
  • ✓ Company Data and News
  • ✓ Events & Webinars
Sign Up for Free


Jul 16
0

Daily Brief TMT/Internet: Hong Kong Hang Seng Index, Unisound AI Technology and more

By | Daily Briefs, TMT/Internet

In today’s briefing:

  • EQD | Volatility Update: Weekly Review of Vol Changes and Best Trades-Summer Lull
  • Unisound AI Technology IPO: Speech Recognition AI Unicorn And Developer of LLM UniGPT

EQD | Volatility Update: Weekly Review of Vol Changes and Best Trades-Summer Lull

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

Unisound AI Technology IPO: Speech Recognition AI Unicorn And Developer of LLM UniGPT

By Andrei Zakharov

  • Founded in 2012, Unisound AI Technology is a Beijing-based pioneer in Artificial General Intelligence (AGI). The company offers easy-to-deploy AI products and solutions in China. 
  • Unisound AI Technology seeks to raise capital for R&D activities, international expansion, and general working capital purposes. The company chose CICC and Haitong to tap capital markets with HK IPO. 
  • I like growing brand recognition, in-house 60B-parameter LLM UniGPT, high growth in the Smart Life segment, and the opportunity to sell self-developed proprietary AI chips in China.

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

Sign Up for Free

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

  • ✓ Unlimited Research Summaries
  • ✓ Personalised Alerts
  • ✓ Custom Watchlists
  • ✓ Company Data and News
  • ✓ Events & Webinars
Sign Up for Free


Jul 16
0

Daily Brief Financials: Wharf Real Estate Investment, Allstate Corp, Bank Of New York Mellon, State Street and more

By | Daily Briefs, Financials

In today’s briefing:

  • Wharf REIC 1997HK: Should We Bet on HK Luxury Retail? Lack of Catalyst & Weak Chinese Spending Power
  • The Allstate Corporation: Initiation of Coverage – What Is Its Biggest Competitive Advantage? Financial Forecasts
  • Bank of New York Mellon Corp: Initiation of Coverage – Business Strategy & Other Drivers
  • State Street Corporation: Initiation of Coverage – Business Strategy & Other Drivers

Wharf REIC 1997HK: Should We Bet on HK Luxury Retail? Lack of Catalyst & Weak Chinese Spending Power

By Jacob Cheng

  • In this insight, we conducted fundamental analysis on Wharf REIC .  It has a simple business model that it operates key malls in HK including Harbour City and Times Square
  • Macro-Wise, despite Wharf REIC should be seeing a recovery trend in terms of retail sales, the weak Chinese economy could pose concern on Wharf REIC’s retail sales
  • Wharf REIC is also facing several headwinds such as high interest cost and weak office market in Hong Kong.  We view the re-rating potential limited despite attractive valuation

The Allstate Corporation: Initiation of Coverage – What Is Its Biggest Competitive Advantage? Financial Forecasts

By Baptista Research

  • This is our first report on one of the largest insurance companies, the Allstate Corporation.
  • The company had a mediocre quarterly result and saw a 26% year-over-year increase in total revenues, totaling $13.8 billion.
  • This was fueled by a rise in premiums, investment income, and realized capital gains, with total premiums showing a 9% year-over-year growth to reach $12.5 billion, driven by growth across all segments, especially the auto insurance segment which grew 11% year over year.

Bank of New York Mellon Corp: Initiation of Coverage – Business Strategy & Other Drivers

By Baptista Research

  • This iThis is our first report on a global custodian and asset management behemoth, Bank of New York Mellon Corp.
  • This After a surge in deposit balances following recent market fluctuations, BNY Mellon finished the quarter slightly higher than its starting point.
  • The company’s broader liquidity platform, managing over $1.3 trillion of cash and short-term investments, witnessed growth in most channels.

State Street Corporation: Initiation of Coverage – Business Strategy & Other Drivers

By Baptista Research

  • This is our first report on State Street, a prominent provider of asset servicing and other financial services in the U.S.
  • The company experienced a varied market performance in the second quarter due to continued strength in developed equity markets, weakness in emerging markets, and a subdued market environment.
  • State Street onboarded $1.2 trillion of Assets Under Custody/Administration (AUC/A) primarily through the State Street Alpha platform, underscoring its effectiveness.

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

Sign Up for Free

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

  • ✓ Unlimited Research Summaries
  • ✓ Personalised Alerts
  • ✓ Custom Watchlists
  • ✓ Company Data and News
  • ✓ Events & Webinars
Sign Up for Free


Jul 16
0

Daily Brief Health Care: Neuren Pharmaceuticals, Celltrion Inc and more

By | Daily Briefs, Healthcare

In today’s briefing:

  • Index Rebalance & ETF Flow Recap: ASX, Chinext, URA, Korea Stocks, NKY
  • Last Week in Event SPACE: Celltrion, Fast Retailing, Canon, Costa, Chindata

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

By Brian Freitas

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).

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

Sign Up for Free

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

  • ✓ Unlimited Research Summaries
  • ✓ Personalised Alerts
  • ✓ Custom Watchlists
  • ✓ Company Data and News
  • ✓ Events & Webinars
Sign Up for Free