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Smartkarma Daily Briefs

Apr 16
0

Daily Brief South Korea: Samsung SDI and more

By | Daily Briefs, South Korea

In today’s briefing:

  • Price/Flow Impact on Four Constituent Changes in KODEX Top 5 Plus ETF Rebalancing in June

Price/Flow Impact on Four Constituent Changes in KODEX Top 5 Plus ETF Rebalancing in June

By Sanghyun Park

  • Samsung SDI and LG Chem are expected to be newly included in the index, while Hana Financial and KT&G Corporation are predicted to be excluded.
  • The correlation between the price movement and the flow direction on the rebalancing trading day of constituent changes from the past reviews was quite high.
  • We can set the price impact expectation for the upcoming review even more aggressively, given that the size of the flow x DTV is more significant than in previous cases.

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Apr 16
0

Daily Brief India: Kotak Mahindra Bank and more

By | Daily Briefs, India

In today’s briefing:

  • Index Rebalance & ETF Flow Recap: HSI, S&P/ASX, KOSDAQ150, TAMSCI, Kotak Mahindra Bank

Index Rebalance & ETF Flow Recap: HSI, S&P/ASX, KOSDAQ150, TAMSCI, Kotak Mahindra Bank

By Brian Freitas

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Apr 16
0

Daily Brief United States: Tesla Motors and more

By | Daily Briefs, United States

In today’s briefing:

  • Market Share Loss for Tesla Korea Accelerating in 1Q 2023

Market Share Loss for Tesla Korea Accelerating in 1Q 2023

By Douglas Kim

  • The fact that Tesla Korea is losing its market share significantly in Korea portends increased challenges for Tesla Motors on a global basis. 
  • The number of new Tesla vehicles registered in Korea was 1,303 units in 1Q 2023, down 52% YoY. 
  • In this insight, we provide three major reasons for Tesla’s market share losses in Korea. We also provide Tesla Korea’s 2022 results analysis.

💡 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

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  • ✓ Custom Watchlists
  • ✓ Company Data and News
  • ✓ Events & Webinars
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Apr 16
0

Daily Brief Japan: Arcland Service, Money Forward, Universal Entertainment, Tokyo Stock Exchange Tokyo Price Index Topix, Rakuten Bank and more

By | Daily Briefs, Japan

In today’s briefing:

  • Arcland Service (3085 JP): Share Exchange Offer from Arclands Corp
  • Money Forward (3994) | Costs Under Control
  • Okada Casino Momentum Signals an Entry Point Despite Legal Woes with Its Spac Hedge Fund Deal
  • Activist Investors Have Been Consistent, but Environment Around Companies Has Changed Significantly
  • ECM Weekly (16th Apr 2023) – Rakuten Bank, Harita Nickel, Merdeka Battery, ZJLD, Adicon, Supcon

Arcland Service (3085 JP): Share Exchange Offer from Arclands Corp

By Arun George

  • Arcland Service (3085 JP)/Arcland SHD has recommended Arcland Sakamoto (9842 JP)/Arclands’ share exchange offer at 1.87 Arclands shares per Archland SHD share.
  • The implied offer value of JPY3,051.84 per share at Arclands’ last close price is a 35.3% premium to the undisturbed price of JPY2,256.00 per share (14 April).
  • The offer requires Arcland OGM (25 May) and Arcland SHD EGM (22 June) shareholder approval. Arcland SHD shareholders will be supportive as the deal metrics are attractive.  

Money Forward (3994) | Costs Under Control

By Mark Chadwick

  • Money Forward’s Q1 sales grew 43% YoY to 6.8 billion yen, which beat the top end of guidance (Y6.2-6.6b).  
  • EBITDA came in at minus 704 million yen, far ahead of guidance for -Y1.2-1.7b. Money Forward drastically curtailed hiring in the quarter.
  • Money Forward’s stock has turned in a 26% performance so far this year. We believe the stock can continue to rally on focused cost control.

Okada Casino Momentum Signals an Entry Point Despite Legal Woes with Its Spac Hedge Fund Deal

By Howard J Klein

  • 26 Capital, a US hedge fund that has crafted an innovative spac deal to bring the leading Manila casino property into an IPO by this fall has stalled.
  • The overall tone of recovery in Philippine gaming in this early post-covid era is speeding up and expected to meet or surpass baseline 1919 growth easily.
  • We see an attractive entry point for Okada’s owner, Tokyo traded Universal Entertainment, based both on its strong performance and the ultimate success of the IPO.

Activist Investors Have Been Consistent, but Environment Around Companies Has Changed Significantly

By Aki Matsumoto

  • While the shareholding of banks and insurances has dropped significantly, that of foreign shareholders has risen to 30%, making it impossible to ignore the opinions of overseas investors as before.
  • Since the introduction of the Corporate Governance Code, the concept of governance and ROE has permeated companies, making it possible for them to understand the background of activist investors’ proposals.
  • Besides the close relationship between changes in valuations and changes in foreign shareholding, overseas investors account for 70% of TSE’s transactions, forcing management to increasingly listen to overseas investor’s voices.

ECM Weekly (16th Apr 2023) – Rakuten Bank, Harita Nickel, Merdeka Battery, ZJLD, Adicon, Supcon

By Sumeet Singh

  • Aequitas Research puts out a weekly update on the deals that were covered by the team recently along with updates for upcoming IPOs.
  • Momentum appears to be picking up on the IPO front with a few successful listing helping sentiment
  • On the placement front, GDR flow appears to have resumed.

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

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

Daily Brief China: Tencent, Hong Kong Hang Seng Index, Jafron Biomedical Co Ltd and more

By | China, Daily Briefs

In today’s briefing:

  • Last Week in Event SPACE: Tencent, Ecopro, Japan’s Governance, Jardines, Citizen
  • EQD | Volatility Update: Weekly Review of Vol Changes and Best Trades- Nothing to See Here!
  • China Healthcare Weekly (Apr.14)- Surgical Robot VBP, Only 5 Biotech to Stand Out, Jafron Biomedical

Last Week in Event SPACE: Tencent, Ecopro, Japan’s Governance, Jardines, Citizen

By David Blennerhassett

  • Prosus (PRX NA) moved 96mn shares of Tencent (700 HK) into CCASS. Tencent shares fell hard. If the share price fell because of a block offering, that would be unwarranted. 
  • Ecopro (086520 KS) is up an eye-watering 590% in the past three months, primarily on Ecopro BM (247540 KS)‘s outperformance, together with sentiment towards soon-to-be-listed 52.8% held Ecopro Materials. 
  • Japan’s Finance Minister said that companies need to improve their PBRs, and that “increasing corporate value of listed companies would allow for Japan to realise sustainable growth.”

EQD | Volatility Update: Weekly Review of Vol Changes and Best Trades- Nothing to See Here!

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

China Healthcare Weekly (Apr.14)- Surgical Robot VBP, Only 5 Biotech to Stand Out, Jafron Biomedical

By Xinyao (Criss) Wang

  • Anhui Province publicly solicits pre-bid data for the provincial centralized procurement of Class B large medical equipment, surgical robots included, which is worth investors’ attention.
  • No more than five biotech would truly stand out in the future. We suggest investors focus on those biotech in the first echelon, rather than betting on riskier smaller ones.
  • For Jafron, we analyzed some key points of the company. Due to the concerns, the temporary rebound in performance in 2023 is not enough to completely reverse the investment logic.

💡 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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Apr 16
0

Daily Brief Industrials: Hong Kong Hang Seng Index and more

By | Daily Briefs, Industrials

In today’s briefing:

  • EQD | Volatility Update: Weekly Review of Vol Changes and Best Trades- Nothing to See Here!

EQD | Volatility Update: Weekly Review of Vol Changes and Best Trades- Nothing to See Here!

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

💡 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
Apr 16
0

Daily Brief Energy/Materials: Newcrest Mining and more

By | Daily Briefs, Energy & Materials Sector

In today’s briefing:

  • (Mostly) Asia-Pac Weekly Risk Arb Wrap: Liann Beng, Newcrest, OZ Minerals, Glory Star New Media

(Mostly) Asia-Pac Weekly Risk Arb Wrap: Liann Beng, Newcrest, OZ Minerals, Glory Star New Media

By David Blennerhassett

💡 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
Sign Up for Free
Apr 16
0

Daily Brief Financials: Kotak Mahindra Bank, Rakuten Bank and more

By | Daily Briefs, Financials

In today’s briefing:

  • Index Rebalance & ETF Flow Recap: HSI, S&P/ASX, KOSDAQ150, TAMSCI, Kotak Mahindra Bank
  • ECM Weekly (16th Apr 2023) – Rakuten Bank, Harita Nickel, Merdeka Battery, ZJLD, Adicon, Supcon

Index Rebalance & ETF Flow Recap: HSI, S&P/ASX, KOSDAQ150, TAMSCI, Kotak Mahindra Bank

By Brian Freitas

ECM Weekly (16th Apr 2023) – Rakuten Bank, Harita Nickel, Merdeka Battery, ZJLD, Adicon, Supcon

By Sumeet Singh

  • Aequitas Research puts out a weekly update on the deals that were covered by the team recently along with updates for upcoming IPOs.
  • Momentum appears to be picking up on the IPO front with a few successful listing helping sentiment
  • On the placement front, GDR flow appears to have resumed.

💡 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
Apr 16
0

Daily Brief TMT/Internet: Tencent, Money Forward, Samsung SDI, Calnex Solutions PLC and more

By | Daily Briefs, TMT/Internet

In today’s briefing:

  • Last Week in Event SPACE: Tencent, Ecopro, Japan’s Governance, Jardines, Citizen
  • Money Forward (3994) | Costs Under Control
  • Price/Flow Impact on Four Constituent Changes in KODEX Top 5 Plus ETF Rebalancing in June
  • Calnex: De-Facto Standards for High-Speed Network Infrastructure Worldwide

Last Week in Event SPACE: Tencent, Ecopro, Japan’s Governance, Jardines, Citizen

By David Blennerhassett

  • Prosus (PRX NA) moved 96mn shares of Tencent (700 HK) into CCASS. Tencent shares fell hard. If the share price fell because of a block offering, that would be unwarranted. 
  • Ecopro (086520 KS) is up an eye-watering 590% in the past three months, primarily on Ecopro BM (247540 KS)‘s outperformance, together with sentiment towards soon-to-be-listed 52.8% held Ecopro Materials. 
  • Japan’s Finance Minister said that companies need to improve their PBRs, and that “increasing corporate value of listed companies would allow for Japan to realise sustainable growth.”

Money Forward (3994) | Costs Under Control

By Mark Chadwick

  • Money Forward’s Q1 sales grew 43% YoY to 6.8 billion yen, which beat the top end of guidance (Y6.2-6.6b).  
  • EBITDA came in at minus 704 million yen, far ahead of guidance for -Y1.2-1.7b. Money Forward drastically curtailed hiring in the quarter.
  • Money Forward’s stock has turned in a 26% performance so far this year. We believe the stock can continue to rally on focused cost control.

Price/Flow Impact on Four Constituent Changes in KODEX Top 5 Plus ETF Rebalancing in June

By Sanghyun Park

  • Samsung SDI and LG Chem are expected to be newly included in the index, while Hana Financial and KT&G Corporation are predicted to be excluded.
  • The correlation between the price movement and the flow direction on the rebalancing trading day of constituent changes from the past reviews was quite high.
  • We can set the price impact expectation for the upcoming review even more aggressively, given that the size of the flow x DTV is more significant than in previous cases.

Calnex: De-Facto Standards for High-Speed Network Infrastructure Worldwide

By Steven Chen

  • Despite a micro-cap status, Calnex is the key player behind the evolution of high-speed network infrastructure on a truly global basis;
  • The company has a market-dominant position at several critical points across the global telecoms ecosystem;
  • The recent plunge in share price demonstrates Mr. Market’s short-termism and presents a good opportunity for incoming shareholders, in our opinion.

💡 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
Apr 16
0

Daily Brief Consumer: Tesla Motors, Arcland Service, Universal Entertainment, Tokyo Stock Exchange Tokyo Price Index Topix and more

By | Consumer, Daily Briefs

In today’s briefing:

  • Market Share Loss for Tesla Korea Accelerating in 1Q 2023
  • Arcland Service (3085 JP): Share Exchange Offer from Arclands Corp
  • Okada Casino Momentum Signals an Entry Point Despite Legal Woes with Its Spac Hedge Fund Deal
  • Activist Investors Have Been Consistent, but Environment Around Companies Has Changed Significantly

Market Share Loss for Tesla Korea Accelerating in 1Q 2023

By Douglas Kim

  • The fact that Tesla Korea is losing its market share significantly in Korea portends increased challenges for Tesla Motors on a global basis. 
  • The number of new Tesla vehicles registered in Korea was 1,303 units in 1Q 2023, down 52% YoY. 
  • In this insight, we provide three major reasons for Tesla’s market share losses in Korea. We also provide Tesla Korea’s 2022 results analysis.

Arcland Service (3085 JP): Share Exchange Offer from Arclands Corp

By Arun George

  • Arcland Service (3085 JP)/Arcland SHD has recommended Arcland Sakamoto (9842 JP)/Arclands’ share exchange offer at 1.87 Arclands shares per Archland SHD share.
  • The implied offer value of JPY3,051.84 per share at Arclands’ last close price is a 35.3% premium to the undisturbed price of JPY2,256.00 per share (14 April).
  • The offer requires Arcland OGM (25 May) and Arcland SHD EGM (22 June) shareholder approval. Arcland SHD shareholders will be supportive as the deal metrics are attractive.  

Okada Casino Momentum Signals an Entry Point Despite Legal Woes with Its Spac Hedge Fund Deal

By Howard J Klein

  • 26 Capital, a US hedge fund that has crafted an innovative spac deal to bring the leading Manila casino property into an IPO by this fall has stalled.
  • The overall tone of recovery in Philippine gaming in this early post-covid era is speeding up and expected to meet or surpass baseline 1919 growth easily.
  • We see an attractive entry point for Okada’s owner, Tokyo traded Universal Entertainment, based both on its strong performance and the ultimate success of the IPO.

Activist Investors Have Been Consistent, but Environment Around Companies Has Changed Significantly

By Aki Matsumoto

  • While the shareholding of banks and insurances has dropped significantly, that of foreign shareholders has risen to 30%, making it impossible to ignore the opinions of overseas investors as before.
  • Since the introduction of the Corporate Governance Code, the concept of governance and ROE has permeated companies, making it possible for them to understand the background of activist investors’ proposals.
  • Besides the close relationship between changes in valuations and changes in foreign shareholding, overseas investors account for 70% of TSE’s transactions, forcing management to increasingly listen to overseas investor’s voices.

💡 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