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Smartkarma Daily Briefs

Mar 20
0

Daily Brief ECM: Judo Capital Placement – Clean up but past Deal Didn’t Do Well and more

By | Daily Briefs, ECM

In today’s briefing:

  • Judo Capital Placement – Clean up but past Deal Didn’t Do Well
  • Anthem Biosciences Pre-IPO – The Negatives- Margins Aren’t There Yet
  • DN Solutions Pre-IPO – The Negatives – Stagnant Volumes

Judo Capital Placement – Clean up but past Deal Didn’t Do Well

By Nicholas Tan

  • Bain and GIC looking to raise US$130m by selling their remaining stake in Judo Capital (JDO AU).
  • The deal will be a large one to digest at 30.8 days of the stock’s three month ADV, representing 9.2% of its shares outstanding.
  • In this note, we will talk about the placement and run the deal through our ECM framework.

Anthem Biosciences Pre-IPO – The Negatives- Margins Aren’t There Yet

By Akshat Shah

  • Anthem Biosciences (1234D IN) is looking to raise up to US$400m in its upcoming India IPO.
  • Anthem Biosciences (ABS) is a contract research, development and manufacturing organisation (CRDMO) with fully integrated operations spanning drug discovery, development, and manufacturing.
  • In this note, we talk about the not-so-positive aspects of the deal.

DN Solutions Pre-IPO – The Negatives – Stagnant Volumes

By Sumeet Singh

  • DN Solutions (298440 KS) (DNS) aims to raise around US$1.1bn in its Korea IPO via selling a mix of primary and secondary shares.
  • DNS is engaged in the manufacture and sale of machine tools and the business of automation solutions and services related thereto.
  • In this note, we talk about the not-so-positive aspects of the deal.

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Mar 20
0

Daily Brief Credit: Lucror Analytics – Morning Views Asia and more

By | Credit, Daily Briefs

In today’s briefing:

  • Lucror Analytics – Morning Views Asia
  • Xiaomi Corp – Earnings Flash – FY 2024 Results – Lucror Analytics

Lucror Analytics – Morning Views Asia

By Leonard Law, CFA

  • In today’s Morning Views publication we comment on developments of the following high yield issuers: Yuexiu REIT, Cikarang Listrindo, Nickel Industries
  • In the US, the import price index rose 0.4% m-o-m (0.0% e / 0.4% revised p) in February. Separately, industrial production came in above estimates at 0.7% m-o-m (0.2% e / 0.3% revised p), with capacity utilisation up at 78.2% (77.8% e / 77.7% revised p).
  • Meanwhile, housing starts grew 11.2% m-o-m (1.4% e / -11.5% p) in February to 1.50 mn units, rebounding from the decline in January, which had been driven by cold weather. The February (preliminary) building permits fell 1.2% m-o-m (-1.4% e / -0.6% p) to 1.46 mn units.

Xiaomi Corp – Earnings Flash – FY 2024 Results – Lucror Analytics

By Trung Nguyen

  • Xiaomi Corp has released FY 2024 numbers that were excellent in our view, with record revenue, profitability and market share gains.
  • The company’s growth was driven by solid performance in the Smartphone x Artificial Intelligence of Things segment and rapid expansion of the Smart Electric Vehicle (EV) business.
  • While short-term challenges persist, particularly in the EV segment, Xiaomi’s long-term growth trajectory appears robust.

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Mar 20
0

Daily Brief Thematic (Sector/Industry): Semiconductors. Key Indicator Updates and more

By | Daily Briefs, Thematic (Sector/Industry)

In today’s briefing:

  • Semiconductors. Key Indicator Updates, 2024 In Review, 2025 Forecasts
  • Ohayo Japan | Fed Sticks to Rate Cut Outlook Amid Trade Tensions
  • #121 India Insight: PepsiCo Expands, Rafale Boost for Navy, India to Be 3rd Largest Economy
  • Steel: New Safeguard Measures Imply Outperformance Could Continue.
  • Tech Talk: The “Death” Of Windows 10 What Will People Do? Will It Cause a PC Upgrade Cycle?

Semiconductors. Key Indicator Updates, 2024 In Review, 2025 Forecasts

By William Keating

  • Global semiconductor sales for the month of January 2025 hit $56.5 billion, an increase of 17.9% YoY, but down 1.7% MoM
  • TSMC is also off to an excellent start in 2025. YTD revenues through February are up 39.2%.
  • 2025 Semi forecast? Think 2024 without the memory boom and way more volatility

Ohayo Japan | Fed Sticks to Rate Cut Outlook Amid Trade Tensions

By Mark Chadwick

  • Stocks rallied Wednesday as the S&P 500 rebounded further from its recent correction, driven by the Fed maintaining its outlook for two rate cuts in 2025
  • SK On has secured a contract with Nissan to supply on-board batteries for electric vehicles at its US plant.
  • Seven & i Holdings has signed a non-disclosure agreement with Canadian retailer Alimentation Couche-Tard and others regarding the potential sale of its US convenience stores

#121 India Insight: PepsiCo Expands, Rafale Boost for Navy, India to Be 3rd Largest Economy

By Sudarshan Bhandari

  • Pepsico Inc (PEP US) plans to scale its snacks and food business in India by customizing products for regional tastes and promoting innovation.
  • India is projected to become the world’s third-largest economy by 2028, driven by reforms, consumption, and infrastructure growth.
  • India finalizes a $7.6 billion deal for 26 Rafale M jets, boosting naval air power and strengthening Indo-Pacific deterrence..

Steel: New Safeguard Measures Imply Outperformance Could Continue.

By Rahul Jain

  • On March 19, 2025, India’s Directorate General of Trade Remedies (DGTR) recommended a 12% provisional safeguard duty on imports of certain steel products for 200 days.
  • Past measures have produced mixed results but given the massive expansion plans of most large steel majors they have been aggressively lobbying for its implementation.
  • Outperformance to continue? JSW Steel Ltd (JSTL IN),Tata Steel Ltd (TATA IN) ,Jindal Steel & Power (JSP IN)have significantly outperformed benchmark Nifty over the last 6 months despite weak earnings.

Tech Talk: The “Death” Of Windows 10 What Will People Do? Will It Cause a PC Upgrade Cycle?

By Water Tower Research

  • The “death” of Windows 10 refers to the end of its support life cycle, which Microsoft has set for October 14, 2025.
  • Essentially, while Windows 10 will continue to function on existing devices, it will become increasingly vulnerable to security risks as new threats emerge and are not patched.
  • Microsoft is offering an Extended Security Update (ESU) program. 

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Mar 20
0

Daily Brief Event-Driven: The Japan March-End Rebal and Dividend Trade and more

By | Daily Briefs, Event-Driven

In today’s briefing:

  • The Japan March-End Rebal and Dividend Trade
  • ENN Energy (2688 HK): ENN Natural Gas to Launch a Privatisation Offer?
  • Quiddity Leaderboard CSI 300/​​500 Jun25: US$6bn+ One-Way Flows; One Intra-Review Addition Soon
  • POSCO Holdings Is Selling Nippon Steel Shares Worth 468 Billion Won
  • Makino Milling Machine (6135 JP): Proposes Countermeasures
  • Quess Corp Demerger: Value Unlocking & Strategic Shift to Drive Growth
  • Ramelius-Spartan Merger As Gold Ekes Out New Highs

The Japan March-End Rebal and Dividend Trade

By Travis Lundy

  • Every year it’s the same trade. But sometimes it is not. This year it is Thursday and Friday. Or not.
  • The month-end and quarter-end bring big flows, or not, depending on how things have gone.
  • Over the past 10 years or so, the two-day return on the March trade is pretty good. This year? Well read on!

ENN Energy (2688 HK): ENN Natural Gas to Launch a Privatisation Offer?

By Arun George

  • ENN Energy (2688 HK) is in a trading halt “pending the issuance of an announcement pursuant to the Hong Kong Code on Takeovers and Mergers containing inside information of the Company.” 
  • ENN Natural Gas (600803 CH), also in a trading halt, is likely seeking to privatise ENN through a Cayman scheme. A high AGM minority participation necessitates an attractive offer.
  • I use several methods to triangulate the likely offer price, which suggests a price range of HK$66.50-85.01, with an average of HK$76.04, a 28% premium to the last close.

Quiddity Leaderboard CSI 300/​​500 Jun25: US$6bn+ One-Way Flows; One Intra-Review Addition Soon

By Janaghan Jeyakumar, CFA

  • CSI 300 represents the 300 largest stocks by market cap and liquidity from the Shanghai and Shenzhen Exchanges. CSI 500 is the next 500 names.
  • In this insight, we take a look at the potential ADDs and DELs leading the race for the semiannual index rebal event in June 2025.
  • Currently, we see 6 ADDs/DELs for the CSI 300 index and 50 ADDs/DELs for the CSI 500 index.

POSCO Holdings Is Selling Nippon Steel Shares Worth 468 Billion Won

By Douglas Kim

  • On 19 March, POSCO Holdings (005490 KS) announced that it is selling its stake in Nippon Steel Corporation (5401 JP) worth nearly 468 billion won (US$320 million).
  • POSCO Holdings’ sale of nearly US$320 million worth of Nippon Steel would be about 1.3% of its market cap. 
  • POSCO Holdings’ sale of its stake in Nippon Steel is a positive move for POSCO Holdings as the company is continuing to execute its strategy of selling off non-core assets.

Makino Milling Machine (6135 JP): Proposes Countermeasures

By Arun George

  • The Makino Milling Machine Co (6135 JP) Board has proposed introducing countermeasures to nudge Nidec Corp (6594 JP) to delay the start of the tender to 9 May. 
  • The countermeasure was likely needed to facilitate a competing offer rather than force Nidec to provide the required information and delay the start (Nidec is still evaluating the request).
  • Nidec’s offer at current terms has a low chance of success, necessitating revised terms. The Board claims that there is a sufficient probability of a competing proposal.

Quess Corp Demerger: Value Unlocking & Strategic Shift to Drive Growth

By Nimish Maheshwari

  • Quess Corp Ltd (QUESS IN) is strategically demerging into 3 distinct segments, enabling focused strategies and boosting growth potential for each, paving the way for greater success and innovation.
  • Previously, the high-margin Global Technology Solutions segment contributed 12% of revenue, but its potential was overlooked within the larger company. Now, with demerging, it gains specialized focus and proper valuation.
  • The demerger gives investors the flexibility to choose between cash-generating, high-margin, or moderate-margin businesses, with the added option of a platform for job hunting, all backed by focused, specialized management.

Ramelius-Spartan Merger As Gold Ekes Out New Highs

By David Blennerhassett

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Mar 20
0

Daily Brief Equity Bottom-Up: Tencent (700 HK): 4Q24 and more

By | Daily Briefs, Equity Bottom-Up

In today’s briefing:

  • Tencent (700 HK): 4Q24, Revenue Growth Back to Two Digits
  • China Resources Beer Signals a Bottom in Consumption?
  • Anta Sports (2020 HK): Need to Exercise Caution
  • TSMC Takeover of Intel: An Official Denial
  • Adobe’s Gen AI Playbook: The $200 Billion Opportunity You Can’t Ignore!
  • AIA Group & HDFC Bank: Big Hitters Lose Momentum
  • Asia Real Estate Tracker (19-Mar-2025): Invesco buys Korea senior homes.
  • Dell Technologies: Is There Going To Be A Robust Impact Of AI and Data Center Solutions Growth In The Coming Years?
  • Ecolab: The Untold Truth Behind Its Razor-and-Blade Model—And Why It’s a Cash Machine!
  • Broadcom’s Future Looks Bright Despite NVIDIA CEO Jensen Huang’s Claims! Here’s What We Think!

Tencent (700 HK): 4Q24, Revenue Growth Back to Two Digits

By Ming Lu

  • The growth rate of total revenue came back to two digits in 4Q24.
  • The growth rate of game revenue reached 20% YoY in 4Q24.
  • The gross margins of all business lines improved YoY in 4Q24.

China Resources Beer Signals a Bottom in Consumption?

By Rikki Malik

  • Historical results as expected with a sales and profit decline
  • The first 2 months of the year show a positive trend
  • Market reaction to the results should highlight low investor expectations 

Anta Sports (2020 HK): Need to Exercise Caution

By Osbert Tang, CFA

  • Anta Sports Products (2020 HK)‘s strong FY24 result is masked by one-offs and Amer Sports (AS US). Without them, its earnings would have declined by an alarming 5.4% in 2H24. 
  • Its ANTA and FILA brands have seen YoY operating profit drop in 2H24, with heavy margin pressure. Their revenue growth has also showed meaningful slowdown sequentially.
  • The 18.6x PER for FY25 is at a 50% premium to the sector, but the market expectation of 15% growth looks challenging. The YTD rally has opened room for profit-taking.

TSMC Takeover of Intel: An Official Denial

By Nicolas Baratte

  • The latest TSMC taking over Intel Foundry was on 13 March and involved joint investments by AMD, Broadcom, Nvidia, Qualcomm. Complicated.
  • Yesterday, TSMC Board member and Taiwan Minister of National Development Paul LIU flatly denied: “such a topic has never been discussed at the board level”.
  • As a result, Intel stock declined -6% yesterday. TSMC has corrected by -16% since early Feb. The stock is at average valuations, no obvious upside to Consensus.

Adobe’s Gen AI Playbook: The $200 Billion Opportunity You Can’t Ignore!

By Baptista Research

  • Adobe’s Q1 fiscal year 2025 financial results have demonstrated a robust performance, with the company reporting a record $5.71 billion in revenue, marking an 11% year-over-year increase.
  • The company also achieved a notable growth in its GAAP and non-GAAP earnings per share, which rose by 13% year-over-year.
  • Adobe’s results underscore the essential role its products play in the global digital economy, reaffirming its fiscal ’25 targets in light of the strong quarterly performance.

AIA Group & HDFC Bank: Big Hitters Lose Momentum

By Steven Holden

  • Ownership levels in AIA Group Ltd (1299 HK) and HDFC Bank (HDFCB IN) have started to reverse from the highs. 
  • SK Hynix, Meituan and Mediatek Inc all make recent gains in fund ownership, while HDFC Bank and AIA Group see closures.
  • UBS in AIA Group and TT International in HDFC Bank lead the fund-level closures.

Asia Real Estate Tracker (19-Mar-2025): Invesco buys Korea senior homes.

By Asia Real Estate Tracker

  • Invesco makes investment in Korea senior living portfolio by acquiring local operator Caredoc.
  • KKR, Gaw, Alyssa Partners collaborate to host forum discussing Japan multi-family housing on Wednesday.
  • Thailand approves funding of $2.7B for data centers with a total capacity of 347MW.

Dell Technologies: Is There Going To Be A Robust Impact Of AI and Data Center Solutions Growth In The Coming Years?

By Baptista Research

  • Dell Technologies Inc. recently reported its fiscal year 2025 fourth-quarter financial results, demonstrating a mixed performance that offers both opportunities and challenges for investors.
  • The company recorded $95.6 billion in revenue for the fiscal year, reflecting an 8% increase, and achieved an operating income of $8.5 billion.
  • Notably, Dell achieved a record EPS of $8.14, an increase of 10%, attributing this success to efficiency improvements and cost reductions, with operating expenses decreasing by 4% year-over-year.

Ecolab: The Untold Truth Behind Its Razor-and-Blade Model—And Why It’s a Cash Machine!

By Baptista Research

  • Ecolab has reported another record-setting year with impressive growth in sales, earnings, margins, and free cash flow in 2024, amid a steady organic sales growth of 4% in the last quarter.
  • The firm sees consistent success in its largest and most profitable market, the United States, where organic sales increased by mid-single digits.
  • Nonetheless, geographic variations persist, with other global regions experiencing low single-digit growth, affected by mixed macroeconomic trends.

Broadcom’s Future Looks Bright Despite NVIDIA CEO Jensen Huang’s Claims! Here’s What We Think!

By Baptista Research

  • Broadcom’s stock surged following its impressive fiscal first-quarter earnings, signaling resilience in the artificial intelligence trade despite recent market volatility.
  • The company reported revenue of $14.92 billion, surpassing Wall Street’s expectation of $14.62 billion, while adjusted earnings of $1.60 per share exceeded analysts’ estimates of $1.51.
  • Additionally, Broadcom projected $14.9 billion in revenue for the current quarter, above the consensus estimate of $14.71 billion.

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Mar 20
0

Daily Brief Macro: The Drill: China to the commodity rescue? and more

By | Daily Briefs, Macro

In today’s briefing:

  • The Drill: China to the commodity rescue?
  • Unloved Stocks in Asia Ex-Japan
  • EA Inflation Shrunk For Spring 2025
  • Yokohama Shuts Three Plants In Quick Succession, Relaunches Another In China
  • [US Crude Oil Options Weekly 2025/11] WTI Snaps Losing Streak on Rising Geopolitical Tensions
  • [US Nat Gas Options Weekly 2025/11] Henry Hub Slipped on Mild Weather Forecasts and Surging Output
  • Bear Stearns, Tariffs, and the Credit Crisis: Lessons from 2008 | The New Barbarians #012
  • CX Daily: China Tables Fiscal Salvo for Flagging Domestic Demand
  • Time To Consider Russia
  • Japan: Policy Rate Held At 0.5% (Consensus 0.5%) in Mar-25

The Drill: China to the commodity rescue?

By Andreas Steno

  • Welcome to our weekly editorial on everything Geopolitics and Commodities.
  • Industrial metals (and precious metals) have performed very well this year, and we’ve thankfully been part of (parts of) this ride.
  • With new signs emerging of a stimulus targeting consumption patterns in the economy, Wall Street’s takeaway has been that China has regained significant momentum.

Unloved Stocks in Asia Ex-Japan

By Steven Holden

  • Bank Of China Ltd, Celltrion Inc and Li Auto top the list as the largest index constituents held by less that 5% of active Asia Ex-Japan funds.
  • Unloved stock numbers increase after China A-share inclusion in 2018/19 and further amplified by post-2020 restrictions on select Chinese military-linked firms.
  • Select funds do own sizeable positions in these stocks.  Are they the ultimate contrarian trades?

EA Inflation Shrunk For Spring 2025

By Phil Rush

  • Eurostat shrunk the final Euro area inflation print for February by 5bp, rounding it down to 2.3% after German revisions, reversing the upward surprise from the flash release.
  • French energy utility prices drove this decline, and petrol prices seem set to drag it down further in March. However, the median impulse is also relatively subdued.
  • ECB policy is unlikely to be affected by this revision and the temporary impact of energy prices on inflation. We still expect it to hold rates in April before a final cut in June.

Yokohama Shuts Three Plants In Quick Succession, Relaunches Another In China

By Vinod Nedumudy

  • Trelleborg plant in the US to shut down in April, 2025
  •  Israel, Prague plants too stop working in 2025
  • Hangzhou to have car tire plant producing 9 million tires a year

[US Crude Oil Options Weekly 2025/11] WTI Snaps Losing Streak on Rising Geopolitical Tensions

By Suhas Reddy

  • WTI futures rose 0.2% for the week ending 14/Mar, reversing a seven-week losing streak, driven by Middle East tensions and tighter-than-expected U.S. crude inventories.
  • U.S. rig count remained unchanged at 592, after falling by one last week. The oil rig count grew by one to 487 and gas rigs fell by one to 100.
  • WTI OI PCR rose to 0.93 on 14/Mar from 0.91 on 07/Mar. Call OI increased by 5.6% WoW, while put OI rose by 7.6%.

[US Nat Gas Options Weekly 2025/11] Henry Hub Slipped on Mild Weather Forecasts and Surging Output

By Suhas Reddy

  • For the week ending 14/Mar, U.S. natural gas prices fell by 6.7% due to milder weather forecasts and increased U.S. production.
  • Henry Hub hit a two-year high early in the week but quickly retreated due to warmer-than-expected winter forecasts. Prices ended the week below the 9-day and 21-day moving averages.
  • Henry Hub OI PCR increased to 1.03 on 14/Mar compared to 1.00 on 07/Mar. Call OI rose by 3.1% WoW, while put OI grew by 7%.

Bear Stearns, Tariffs, and the Credit Crisis: Lessons from 2008 | The New Barbarians #012

By William Mann

  • Discussion of podcast topics on St. Patrick’s Day and credit crisis history
  • Analysis of current market trends and performance, including digital assets and tariffs
  • Comparison of market patterns from previous years to predict future performance and impact of events like tariffs

This content is sourced through publicly available sources and has been machine generated. Information displayed is for general informational purposes only.

CX Daily: China Tables Fiscal Salvo for Flagging Domestic Demand

By Caixin Global

  • Fiscal / Analysis: China tables fiscal salvo for flagging domestic demand
  • Loans /: Chinese banks relax loan terms to fuel tech sector M&A deals
  • Tesla FSD: Tesla Inc. is offering its Chinese customers a one-month free trial of its Full-Self Driving (FSD) feature, which still requires drivers to keep their hands on the wheel…

Time To Consider Russia

By Sharmila Whelan

  • Russia is at a turning point. This together with its size, mineral riches, cheap valuations and common sense suggest investors should be looking to enter the market.
  • The end of the Ukraine and the re-integration of Russia into world trade and financial markets will be a turning point for the country. 
  • At home the war time economic boom is winding down. High interest rates and inflation are dampening demand and growth will slow this year. Even so Russia’s outlook is brightening.

Japan: Policy Rate Held At 0.5% (Consensus 0.5%) in Mar-25

By Heteronomics AI

  • The Bank of Japan held its uncollateralised overnight call rate at around 0.5%, in line with expectations, reflecting a moderate economic recovery and sustained inflationary pressures.
  • Core CPI inflation remains at 3.0-3.5% year-on-year, with underlying inflation expected to gradually rise towards the BoJ’s target by 2025, driven by a tightening labour market and wage-price dynamics.
  • The BoJ remains data-dependent, with policy direction contingent on wage growth sustainability, yen depreciation effects, and global economic risks, suggesting a cautious approach to normalisation.
This content is sourced through publicly available sources and has been machine generated. Information displayed is for general informational purposes only.

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Mar 20
0

Most Read: Korea Stock Exchange KOSPI 200, BayCurrent Consulting , Maynilad Water Services, Jiangxi Zhengbang Tech A, ENN Energy, Samsung KODEX Autos ETF, POSCO Holdings, SAIC Motor, Makino Milling Machine Co, Judo Capital and more

By | Daily Briefs, Most Read

In today’s briefing:

  • Korea: Short Selling Is Back in March; Trade Ideas
  • The Japan March-End Rebal and Dividend Trade
  • Maynilad Water (MYNLD PM): Index Inclusion Timing for a Large Philippines IPO
  • Quiddity Leaderboard CSI 300/​​500 Jun25: US$6bn+ One-Way Flows; One Intra-Review Addition Soon
  • ENN Energy (2688 HK): ENN Natural Gas to Launch a Privatisation Offer?
  • Schedule Info for Front-Running Korea Sector ETF Rebalancing Trades
  • POSCO Holdings Is Selling Nippon Steel Shares Worth 468 Billion Won
  • SSE50 Index Rebalance Preview: Three Changes; Some Misses
  • Makino Milling Machine (6135 JP): Proposes Countermeasures
  • Judo Capital Placement – Clean up but past Deal Didn’t Do Well

Korea: Short Selling Is Back in March; Trade Ideas

By Brian Freitas

  • Since short selling was banned in November 2023, short interest has plunged in Korea as shorts were covered. Markets have not done much over the last 16 months though. 
  • Foreign investor holdings have dropped from 32.05% in July to 28.57%. The top 25 stocks bought by foreign investors outperformed the top 25 stocks sold by 128% in 16 months.
  • There will be trade opportunities across indices, pref/ords, index migrations and deletions, potential market upgrades and overvalued stocks being sold.

The Japan March-End Rebal and Dividend Trade

By Travis Lundy

  • Every year it’s the same trade. But sometimes it is not. This year it is Thursday and Friday. Or not.
  • The month-end and quarter-end bring big flows, or not, depending on how things have gone.
  • Over the past 10 years or so, the two-day return on the March trade is pretty good. This year? Well read on!

Maynilad Water (MYNLD PM): Index Inclusion Timing for a Large Philippines IPO

By Brian Freitas

  • Maynilad Water Services (MYNLD PH) is looking to raise up to US$860m by selling shares at ₱20/share, valuing the company at US$2.82bn.
  • The market cap and free float will depend on the number of shares sold in the IPO and whether the shares in the upsize option are primary or secondary shares.
  • Global index inclusions should take place in November and December, while Philippines Stock Exchange PSEi Index (PCOMP INDEX) inclusion could take place in August 2026.

Quiddity Leaderboard CSI 300/​​500 Jun25: US$6bn+ One-Way Flows; One Intra-Review Addition Soon

By Janaghan Jeyakumar, CFA

  • CSI 300 represents the 300 largest stocks by market cap and liquidity from the Shanghai and Shenzhen Exchanges. CSI 500 is the next 500 names.
  • In this insight, we take a look at the potential ADDs and DELs leading the race for the semiannual index rebal event in June 2025.
  • Currently, we see 6 ADDs/DELs for the CSI 300 index and 50 ADDs/DELs for the CSI 500 index.

ENN Energy (2688 HK): ENN Natural Gas to Launch a Privatisation Offer?

By Arun George

  • ENN Energy (2688 HK) is in a trading halt “pending the issuance of an announcement pursuant to the Hong Kong Code on Takeovers and Mergers containing inside information of the Company.” 
  • ENN Natural Gas (600803 CH), also in a trading halt, is likely seeking to privatise ENN through a Cayman scheme. A high AGM minority participation necessitates an attractive offer.
  • I use several methods to triangulate the likely offer price, which suggests a price range of HK$66.50-85.01, with an average of HK$76.04, a 28% premium to the last close.

Schedule Info for Front-Running Korea Sector ETF Rebalancing Trades

By Sanghyun Park

  • Demand for less crowded rebalancing plays is rising, making off-the-radar flows more critical. A structured timeline is key to tracking and managing these setups efficiently.
  • Key ETFs to watch are local sector names with solid AUM—about 20 names. But the trading approach isn’t one-size-fits-all.
  • Stick to the schedule, track potential flow setups, and front-run by securing rebalance details early and positioning ahead of the crowd.

POSCO Holdings Is Selling Nippon Steel Shares Worth 468 Billion Won

By Douglas Kim

  • On 19 March, POSCO Holdings (005490 KS) announced that it is selling its stake in Nippon Steel Corporation (5401 JP) worth nearly 468 billion won (US$320 million).
  • POSCO Holdings’ sale of nearly US$320 million worth of Nippon Steel would be about 1.3% of its market cap. 
  • POSCO Holdings’ sale of its stake in Nippon Steel is a positive move for POSCO Holdings as the company is continuing to execute its strategy of selling off non-core assets.

SSE50 Index Rebalance Preview: Three Changes; Some Misses

By Brian Freitas

  • With nearly 90% of the review period complete, 2 non-constituents are in inclusion zone and 3 constituents are in deletion zone.
  • We estimate one-way turnover of 4.7% at the June rebalance leading to a round-trip trade of CNY 16.4bn (US$2.27bn). Index arb balances will increase the impact on the stocks.
  • The forecast adds have outperformed the forecast deletes over the last 6 months but there has been a retracement in returns over the last month.

Makino Milling Machine (6135 JP): Proposes Countermeasures

By Arun George

  • The Makino Milling Machine Co (6135 JP) Board has proposed introducing countermeasures to nudge Nidec Corp (6594 JP) to delay the start of the tender to 9 May. 
  • The countermeasure was likely needed to facilitate a competing offer rather than force Nidec to provide the required information and delay the start (Nidec is still evaluating the request).
  • Nidec’s offer at current terms has a low chance of success, necessitating revised terms. The Board claims that there is a sufficient probability of a competing proposal.

Judo Capital Placement – Clean up but past Deal Didn’t Do Well

By Nicholas Tan

  • Bain and GIC looking to raise US$130m by selling their remaining stake in Judo Capital (JDO AU).
  • The deal will be a large one to digest at 30.8 days of the stock’s three month ADV, representing 9.2% of its shares outstanding.
  • In this note, we will talk about the placement and run the deal through our ECM framework.

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Mar 20
0

Daily Brief Australia: Judo Capital, Spartan Resources and more

By | Australia, Daily Briefs

In today’s briefing:

  • Judo Capital Placement – Clean up but past Deal Didn’t Do Well
  • Ramelius-Spartan Merger As Gold Ekes Out New Highs

Judo Capital Placement – Clean up but past Deal Didn’t Do Well

By Nicholas Tan

  • Bain and GIC looking to raise US$130m by selling their remaining stake in Judo Capital (JDO AU).
  • The deal will be a large one to digest at 30.8 days of the stock’s three month ADV, representing 9.2% of its shares outstanding.
  • In this note, we will talk about the placement and run the deal through our ECM framework.

Ramelius-Spartan Merger As Gold Ekes Out New Highs

By David Blennerhassett

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Mar 20
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Daily Brief South Korea: Samsung KODEX Autos ETF, POSCO Holdings, DN Solutions and more

By | Daily Briefs, South Korea

In today’s briefing:

  • Schedule Info for Front-Running Korea Sector ETF Rebalancing Trades
  • POSCO Holdings Is Selling Nippon Steel Shares Worth 468 Billion Won
  • DN Solutions Pre-IPO – The Negatives – Stagnant Volumes

Schedule Info for Front-Running Korea Sector ETF Rebalancing Trades

By Sanghyun Park

  • Demand for less crowded rebalancing plays is rising, making off-the-radar flows more critical. A structured timeline is key to tracking and managing these setups efficiently.
  • Key ETFs to watch are local sector names with solid AUM—about 20 names. But the trading approach isn’t one-size-fits-all.
  • Stick to the schedule, track potential flow setups, and front-run by securing rebalance details early and positioning ahead of the crowd.

POSCO Holdings Is Selling Nippon Steel Shares Worth 468 Billion Won

By Douglas Kim

  • On 19 March, POSCO Holdings (005490 KS) announced that it is selling its stake in Nippon Steel Corporation (5401 JP) worth nearly 468 billion won (US$320 million).
  • POSCO Holdings’ sale of nearly US$320 million worth of Nippon Steel would be about 1.3% of its market cap. 
  • POSCO Holdings’ sale of its stake in Nippon Steel is a positive move for POSCO Holdings as the company is continuing to execute its strategy of selling off non-core assets.

DN Solutions Pre-IPO – The Negatives – Stagnant Volumes

By Sumeet Singh

  • DN Solutions (298440 KS) (DNS) aims to raise around US$1.1bn in its Korea IPO via selling a mix of primary and secondary shares.
  • DNS is engaged in the manufacture and sale of machine tools and the business of automation solutions and services related thereto.
  • In this note, we talk about the not-so-positive aspects of the deal.

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Mar 20
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Daily Brief Singapore: SGX Rubber Future TSR20 and more

By | Daily Briefs, Singapore

In today’s briefing:

  • Yokohama Shuts Three Plants In Quick Succession, Relaunches Another In China

Yokohama Shuts Three Plants In Quick Succession, Relaunches Another In China

By Vinod Nedumudy

  • Trelleborg plant in the US to shut down in April, 2025
  •  Israel, Prague plants too stop working in 2025
  • Hangzhou to have car tire plant producing 9 million tires a year

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