All Posts By

Smartkarma Daily Briefs

Jun 05
0

Daily Brief TMT/Internet: Nexon and more

By | Daily Briefs, TMT/Internet

In today’s briefing:

  • Nexon Founder Family Hands Over 4.7 Trillion Won Worth of NXC to Korean Government

Nexon Founder Family Hands Over 4.7 Trillion Won Worth of NXC to Korean Government

By Douglas Kim

  • The late Nexon founder Kim Jung-Ju’s family recently paid nearly 4.7 trillion won worth of inheritance taxes to the Korean government by handing over 29.3% stake (paid-in-kind) in NXC Corp.
  • We view this handing over the 29.3% stake to the Korean government to be positive overall on Nexon in the near term.
  • However, we do not expect this could bring about change in controlling ownership of the Nexon Group in the near term to result in re-rating of the Nexon Group shares. 

💡 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
Jun 05
0

Daily Brief Industrials: Golden Energy & Resources, T.S. Lines and more

By | Daily Briefs, Industrials

In today’s briefing:

  • Weekly Deals Digest (04 Jun) – Golden Energy, Challenger, ENM, Golden Eagle Retail, Amman Mineral
  • TS Lines Pre-IPO | Like Wan Hai Lines, but Smaller | Intra-Asia Update | Approaches to Valuation

Weekly Deals Digest (04 Jun) – Golden Energy, Challenger, ENM, Golden Eagle Retail, Amman Mineral

By Arun George

TS Lines Pre-IPO | Like Wan Hai Lines, but Smaller | Intra-Asia Update | Approaches to Valuation

By Daniel Hellberg

  • In terms of fleet characteristics, market exposure, and recent financial performance, we believe T.S. Lines (TSL HK) and Taiwan’s Wan Hai Lines (2615 TT) are directly comparable
  • WHL has more exposure to the Transpacific, but still boasts a much larger Intra-Asia operation owing to its scale advantage (fleet and revenue about four times the size of TSL)
  • Given the similarities we outline in this insight, we believe TSL’s shares should trade at EV/Fleet and EV/Revenue multiples in line with WHL’s; no premium is justified, in our view

💡 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
Jun 05
0

Daily Brief Financials: SoFi and more

By | Daily Briefs, Financials

In today’s briefing:

  • Beyond Student Loans

Beyond Student Loans

By subSPAC

  • With the inception of the pandemic, borrowers have largely been wrestling with financial distress, compelling fintech companies like SoFi technologies, which banks on student loan financing, to largely reimagine their business model.
  • SoFi has moved away from its core business over the past three years, instead casting a wider net, extending its services to include diverse financial products, personal loans, and its banking-as-a-service business targeting enterprise customers.
  • In 2023, SoFi has had to grapple with mounting external pressures emanating from a slowing economy.

💡 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
Jun 05
0

Daily Brief Energy/Materials: YFY Inc and more

By | Daily Briefs, Energy & Materials Sector

In today’s briefing:

  • Quiddity TDIV/50/100 Jun 23 Rebal: 15/18 as Expected; Some Surprises, US$1.1bn+ One Way

Quiddity TDIV/50/100 Jun 23 Rebal: 15/18 as Expected; Some Surprises, US$1.1bn+ One Way

By Janaghan Jeyakumar, CFA

  • In this insight, we take a look at the final ADDs/DELs for the TDIV, T50, and T100 Indices for the June 2023 Rebalance.
  • Across these three indices there will be 18 changes and 15 of them were in line with expectations.
  • Our updated flow expectations show that there could be US$1.1bn one-way flow in the June 2023 rebalance.

💡 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
Jun 05
0

Daily Brief Industrials: Golden Energy & Resources, T.S. Lines and more

By | Daily Briefs, Industrials

In today’s briefing:

  • Weekly Deals Digest (04 Jun) – Golden Energy, Challenger, ENM, Golden Eagle Retail, Amman Mineral
  • TS Lines Pre-IPO | Like Wan Hai Lines, but Smaller | Intra-Asia Update | Approaches to Valuation

Weekly Deals Digest (04 Jun) – Golden Energy, Challenger, ENM, Golden Eagle Retail, Amman Mineral

By Arun George

TS Lines Pre-IPO | Like Wan Hai Lines, but Smaller | Intra-Asia Update | Approaches to Valuation

By Daniel Hellberg

  • In terms of fleet characteristics, market exposure, and recent financial performance, we believe T.S. Lines (TSL HK) and Taiwan’s Wan Hai Lines (2615 TT) are directly comparable
  • WHL has more exposure to the Transpacific, but still boasts a much larger Intra-Asia operation owing to its scale advantage (fleet and revenue about four times the size of TSL)
  • Given the similarities we outline in this insight, we believe TSL’s shares should trade at EV/Fleet and EV/Revenue multiples in line with WHL’s; no premium is justified, in our view

💡 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
Jun 05
0

Daily Brief Health Care: CStone Pharmaceuticals, Shanghai Pharmaceuticals Holding and more

By | Daily Briefs, Healthcare

In today’s briefing:

  • China Healthcare Weekly (Jun.2) – New Era for Medical Device, Shareholders’ Reduction in CXO, Cstone
  • Shanghai Pharmaceuticals Holding (601607.CH/2607.HK) – The Situation of Undervaluation Would Change

China Healthcare Weekly (Jun.2) – New Era for Medical Device, Shareholders’ Reduction in CXO, Cstone

By Xinyao (Criss) Wang

  • In the second half of this year, innovative device companies could be listed on the SSE STAR Market one after another, which is a systematic opportunity.
  • Shareholders’ reduction in CXO will continue. Then, CXO could become a company mainly controlled by various funds, with the original owners all cashing out and leaving, such as WuXi AppTec. 
  • We analyzed some key points of CStone Pharmaceuticals (2616 HK). We remain conservative about the Company, and its stock price may continue to remain weak.

Shanghai Pharmaceuticals Holding (601607.CH/2607.HK) – The Situation of Undervaluation Would Change

By Xinyao (Criss) Wang

  • Different from peers whose pharmaceutical assets are scattered in different listed companies, all assets/resources of SH Pharma are integrated within the Company. The intrinsic value of this model is greater.
  • SH Pharma is in a traditional industry, facing weak profitability and negative policy impacts, Thus, the Company lacks attractiveness and imagination space for investors, leading to long-term undervaluation. 
  • Considering the transformation to more high-margin businesses, SH Pharma’s performance/profitability would improve. Since China hopes to establish a valuation system with Chinese characteristics, there’s valuation repair opportunity for SH Pharma.

💡 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
Jun 05
0

Daily Brief Consumer: Cafe De Coral Holdings, Enm Holdings, Golden Eagle Retail, Health And Happiness (H&H) and more

By | Consumer, Daily Briefs

In today’s briefing:

  • HSCI Index Rebalance Preview and Stock Connect: Potential Changes in September
  • ENM Holdings (128 HK): Privatisation Bid at HK$0.58 Per Share
  • Merger Arb Mondays (05 Jun) – Golden Eagle Retail, ENM, AAG, Yashili, Golden Energy, Challenger Tech
  • Morning Views Asia: NagaCorp Ltd

HSCI Index Rebalance Preview and Stock Connect: Potential Changes in September

By Brian Freitas

  • Fenbi Ltd (2469 HK) was added to the Hang Seng Composite Index (HSCI) at the close Friday and will be added to Southbound Stock Connect from open of trading today.
  • We see 22 potential adds, 19 potential deletes, couple of close deletes, 5 deletes on prolonged suspension and 4 close liquidity deletes for the HSCI in September.
  • There are 11 potential deletions where holdings via Stock Connect are more than 20% of shares outstanding. There could be some unwinding of positions over the next couple of months.

ENM Holdings (128 HK): Privatisation Bid at HK$0.58 Per Share

By Arun George

  • Enm Holdings (128 HK) announced a privatisation offer from Chime Corporation at HK$0.58 per scheme share, a 54.7% premium to the undisturbed price of HK$0.375 per share (24 May). 
  • The key condition is the scheme be approved by at least 75% disinterested shareholders (<10% disinterested shareholders rejection). No shareholder holds a blocking stake. The offer price is final.
  • Detractors will argue the offer is low due to ENM’s net cash (75% of the market cap). However, the offer is reasonable compared to historical multiples and share prices. 

Merger Arb Mondays (05 Jun) – Golden Eagle Retail, ENM, AAG, Yashili, Golden Energy, Challenger Tech

By Arun George

Morning Views Asia: NagaCorp 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.

💡 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
Jun 05
0

Daily Brief Quantitative Analysis: HK Short Interest Weekly: CK Asset and more

By | Daily Briefs, Quantitative Analysis

In today’s briefing:

  • HK Short Interest Weekly: CK Asset, Baba
  • A-H Premium Weekly (Jun 2nd): Conch Cement, China Vanke, China Southern, CSC Financial, COSCO Ship
  • Northbound Flows (Jun 2nd): Moutai, Wuliangye, China Tourism, Ping An Insurance, Sany Heavy
  • Northbound Flows Monthly (May): $1.7bn Outflows
  • TWSE Short Interest Weekly (Jun 2nd): Wistron, Mediatek, Gigabyte Tech, Lite-On Tech, Yageo
  • Hong Kong Connect Flows Monthly: $2.7 Bn of Inflows in May
  • Hong Kong Connect Flows (Jun 2nd): Meituan, China Construction Bank, Cnooc

HK Short Interest Weekly: CK Asset, Baba

By Ke Yan, CFA, FRM

  • We analyzed the latest HK SFC report for aggregate short position as of May 25th.
  • Top short increases and decreases were tabulated for one week and four week period. 
  • We estimate the total short interest to decrease by 4.2% WoW and highlight short changes in CK Asset, Alibaba.

A-H Premium Weekly (Jun 2nd): Conch Cement, China Vanke, China Southern, CSC Financial, COSCO Ship

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 116.5% as of Jun 2nd.
  • The average A-H premium changed by 3.0ppt week on week, led by communication services, financials, industrials and offset by consumer discretionary.
  • We highlight weekly changes in A-H premium for Conch Cement, China Vanke, China Southern, CSC Financial, COSCO Ship, China Longyuan.

Northbound Flows (Jun 2nd): Moutai, Wuliangye, China Tourism, Ping An Insurance, Sany Heavy

By Ke Yan, CFA, FRM

  • We analyze the weekly Shanghai/Shenzhen northbound Connect flows with our data engine for holding position as of June 2nd.
  • We estimate the weekly inflows to be US$899.7 million, led by information technology, materials, health care sectors, and offset by financials, consumer staples.
  • We highlight flows for Nantong Fujitsu Microelectronics, Xinjiang Daqo New Energy, Zhejiang Dahua Technology, Moutai, Wuliangye, China Tourism, Ping An Insurance, Sany Heavy Industry, Foxconn Industrial Internet, Haitian Flavouring.

Northbound Flows Monthly (May): $1.7bn Outflows

By Ke Yan, CFA, FRM

  • We analyze the monthly Shanghai/Shenzhen northbound Connect flows with our data engine.
  • We tabulate the top stocks by inflows, outlfows, and holding by foreign investors.
  • We highlight inflows  for CATL, Kunlun Tech, BJ-SH HSR, CCB, Mindray, Longi, Wuliangye, Gree, Moutai, Midea.

TWSE Short Interest Weekly (Jun 2nd): Wistron, Mediatek, Gigabyte Tech, Lite-On Tech, Yageo

By Ke Yan, CFA, FRM

  • We analyzed the changes in short interest of TWSE Stocks as of Jun 2nd which has an aggregated short interest worth USD14.5bn.
  • We tabulate league table for top short by value and short as multiple of ADT, as well as weekly increases & decreases in short value, short as multiple of ADT.
  • We highlight short interest changes in Wistron, Mediatek, Gigabyte Tech, Lite-On Tech, Yageo, Global Unichip, Chunghwa Telecom, Eva Airways, Nanya Tech.

Hong Kong Connect Flows Monthly: $2.7 Bn of Inflows in May

By Ke Yan, CFA, FRM

  • We analyze the monthly Hong Kong Connect flows with our data engine.
  • We tabulate the top stocks by inflows, outlfows, and holding by mainland investors.
  • We highlight flows for Tencent, CNPC, CNOOC, Meituan, CCB, HKEX, BYD, ABC, CR Beer.

Hong Kong Connect Flows (Jun 2nd): Meituan, China Construction Bank, Cnooc

By Ke Yan, CFA, FRM

  • We analyze the weekly Hong Kong Connect flows with our data engine for holding position as of June 2nd.
  • The top stocks by inflows and outflows were tabulated for all market, HSCEI, mid cap and s/mid cap groups.
  • We highlight flows for Meituan, China Construction Bank, and Cnooc.

💡 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
Jun 05
0

Daily Brief Credit: Morning Views Asia: NagaCorp Ltd and more

By | Credit, Daily Briefs

In today’s briefing:

  • Morning Views Asia: NagaCorp Ltd

Morning Views Asia: NagaCorp 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.

💡 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
Jun 05
0

Daily Brief ECM: TS Lines Pre-IPO | Like Wan Hai Lines and more

By | Daily Briefs, ECM

In today’s briefing:

  • TS Lines Pre-IPO | Like Wan Hai Lines, but Smaller | Intra-Asia Update | Approaches to Valuation

TS Lines Pre-IPO | Like Wan Hai Lines, but Smaller | Intra-Asia Update | Approaches to Valuation

By Daniel Hellberg

  • In terms of fleet characteristics, market exposure, and recent financial performance, we believe T.S. Lines (TSL HK) and Taiwan’s Wan Hai Lines (2615 TT) are directly comparable
  • WHL has more exposure to the Transpacific, but still boasts a much larger Intra-Asia operation owing to its scale advantage (fleet and revenue about four times the size of TSL)
  • Given the similarities we outline in this insight, we believe TSL’s shares should trade at EV/Fleet and EV/Revenue multiples in line with WHL’s; no premium is justified, in our view

💡 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