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Smartkarma Daily Briefs

Dec 01
0

Most Read: Haier Smart Home Co Ltd, Yum China Holdings Inc, Shanghai Fudan Microelectronics Group, Toyo Construction, Sunshine Insurance, Home Consortium Ltd, Appier Group, HYBE, Posco Chemical Co Ltd and more

By | Daily Briefs, Most Read

In today’s briefing:

  • HSI, HSCEI, HSTECH: Rebalance Flows Post Capping (Dec 2022)
  • FTSE China 50 Index Rebalance: JD Health, Yum China IN; Longfor, Xpeng OUT
  • CES China Semiconductor Chips Index Rebalance: Four Changes in December
  • Toyo Construction (1890) – Creeping Up On The Next “Tender Offer Start Date”….. Uh…. Maybe
  • Sunshine Insurance (6963 HK) IPO – Index Inclusion Timeline
  • FTSE EPRA Nareit Index Rebalance: One Deletion for Australia
  • Appier (4180) Nearing A TSE Prime (And TOPIX) Announcement?
  • End of Mandatory Lock-Up Periods for 58 Companies in Korea in December 2022
  • Good Morning Japan | Powell: “Pace of Hikes to Moderate in Dec; Landing Plausible”; Equities Rip
  • CSI KRX China-Korea: Rebalancing Results from KRX & Flow Trading Considerations

HSI, HSCEI, HSTECH: Rebalance Flows Post Capping (Dec 2022)

By Brian Freitas

FTSE China 50 Index Rebalance: JD Health, Yum China IN; Longfor, Xpeng OUT

By Brian Freitas

CES China Semiconductor Chips Index Rebalance: Four Changes in December

By Brian Freitas

Toyo Construction (1890) – Creeping Up On The Next “Tender Offer Start Date”….. Uh…. Maybe

By Travis Lundy

  • In March 2022, Toyo Construction (1890 JP) agreed to be taken over by equity affiliate stake owner INFRONEER Holdings (5076 JP) at what was a low price.
  • Nintendo Founder Family Office “YFO” objected, and bought 25+% of the company, then offered to buy it out 30% higher. Toyo Construction objected.
  • Four months later they finally signed an NDA and then started negotiating. Early in November the target date for a Tender Offer start by YFO was pushed to early December.

Sunshine Insurance (6963 HK) IPO – Index Inclusion Timeline

By Brian Freitas

  • Sunshine Insurance (SUN HK) is looking to raise between US$859m-US$950m by selling 1.15bn shares in its IPO. At the top end, the company will be valued at HK$74bn.
  • All of the pre-IPO shares are Domestic Shares and there appear to be no immediate plans to convert them to H-shares. The only H-shares will be the IPO shares.
  • MSCI China inclusion requires a higher stock price or conversion of Domestic Shares to H-shares; FTSE inclusion is likely in June; HSCI and Stock Connect inclusion is expected in March.

FTSE EPRA Nareit Index Rebalance: One Deletion for Australia

By Brian Freitas

  • There are no adds for the FTSE EPRA Nareit Developed Asia Index in December. The only deletion is Home Consortium Ltd (HMC AU). 
  • Passive trackers are estimated to sell 12x ADV on Home Consortium Ltd at the close 16 December. Short interest is nearly the same and there could be some covering.
  • Home Consortium Ltd (HMC AU) has underperformed its peers over the last 12 months and still trades more expensive to its peer group.

Appier (4180) Nearing A TSE Prime (And TOPIX) Announcement?

By Travis Lundy

  • On 17 Feb 2022, Janaghan Jeyakumar, CFA wrote about Appier Group (4180 JP) suggesting it was a TOPIX inclusion candidate in the not-distant future.
  • In mid-August 2022, he reiterated his opinion. Three days later, the company said they had applied for TSE Prime membership. We are coming up on the timing for an announcement.
  • It would mean buying, but the shareholder structure is interesting, and intentions are not easy to read. But if they announce imminently, the calendar makes the event even more interesting.

End of Mandatory Lock-Up Periods for 58 Companies in Korea in December 2022

By Douglas Kim

  • We discuss end of the mandatory lock-up periods for 58 stocks in Korea in December 2022, among which 9 are in KOSPI and 49 are in KOSDAQ.
  • These 58 stocks on average could be subject to further selling pressures in December and could underperform relative to the market. 
  • Among these 58 stocks, the top 5 market cap stocks include HYBE, Kakao Games, WCP, Sillajen, and Duksan Neolux. 

Good Morning Japan | Powell: “Pace of Hikes to Moderate in Dec; Landing Plausible”; Equities Rip

By Mark Chadwick

  • Good Morning Japan:  We strive to provide the best macro, stock and thematic overnight news that impacts your trading day in Japan. FOLLOW US TO KEEP ABREAST.
  • OVERSEAS: To Dog Powell confirms 50bps at the next Fed meeting;  Equities rip as it as a “no stock left behind day”; China COVID sentiment continues to improve. 
  • JAPAN: NKY to add 1-2% today; Yen at 130/USD; Eisai says the 2 deaths not due to their drug-positive; Shippers continue to diversify-MOL goes into Real Estate.

CSI KRX China-Korea: Rebalancing Results from KRX & Flow Trading Considerations

By Sanghyun Park

  • KRX unveiled the rebalancing results of the CSI KRX China-Korea indices for Korean constituents yesterday.
  • There is still insufficient evidence data to estimate specific passive impact. The previous rebalancing in June showed no clear correlation between constituent changes and price impact.
  • Although it may be risky to trade on this rebalancing, monitoring the correlation of their passive impact at this point, one year after the release, seems worthwhile.

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Dec 01
0

Daily Brief Utilities: China Water Affairs and more

By | Daily Briefs, Utilities Sector

In today’s briefing:

  • Morning Views Asia: China Water Affairs

Morning Views Asia: China Water Affairs

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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Dec 01
0

Daily Brief Industrials: Toyo Construction and more

By | Daily Briefs, Industrials

In today’s briefing:

  • Toyo Construction (1890) – Creeping Up On The Next “Tender Offer Start Date”….. Uh…. Maybe

Toyo Construction (1890) – Creeping Up On The Next “Tender Offer Start Date”….. Uh…. Maybe

By Travis Lundy

  • In March 2022, Toyo Construction (1890 JP) agreed to be taken over by equity affiliate stake owner INFRONEER Holdings (5076 JP) at what was a low price.
  • Nintendo Founder Family Office “YFO” objected, and bought 25+% of the company, then offered to buy it out 30% higher. Toyo Construction objected.
  • Four months later they finally signed an NDA and then started negotiating. Early in November the target date for a Tender Offer start by YFO was pushed to early December.

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Dec 01
0

Daily Brief TMT/Internet: Shanghai Fudan Microelectronics Group, Softbank Group, Appier Group, HYBE, Crowdstrike Holdings Inc, BLS International Services, Alibaba Health Information Technology, Marketingforce Management, Oracle Corp and more

By | Daily Briefs, TMT/Internet

In today’s briefing:

  • CES China Semiconductor Chips Index Rebalance: Four Changes in December
  • Softbank Group (9984 JP) –The Masa Hurdles
  • Appier (4180) Nearing A TSE Prime (And TOPIX) Announcement?
  • End of Mandatory Lock-Up Periods for 58 Companies in Korea in December 2022
  • FY3Q23: If It’s All Macro, Do You Buy the Dip?
  • BLS International Services Ltd: Forensic Analysis
  • Alibaba Health 1H: Cost Enhancements Support Margins but Sustainabaility Remains to Be Seen
  • Marketingforce Management Pre-IPO Tearsheet
  • Oracle: What To Expect As It Reports Q2 2023 Results

CES China Semiconductor Chips Index Rebalance: Four Changes in December

By Brian Freitas

Softbank Group (9984 JP) –The Masa Hurdles

By Victor Galliano

  • Masayoshi’s debt with Softbank group is big, and due to the poor performance of SoftBank Vision Fund 2, Masa’s equity interest as a co-investor is now zero
  • Internal hedge fund Northstar, in which Masa has a 33.3% stake, is in liquidation leaving Masa’s share of his Northstar debt to SoftBank at USD1.2bn
  • SoftBank’s collateral on Masa debt includes the Vision Fund 2 equity, as well as SoftBank shares and other personal assets; we expect SoftBank’s NAV discount of c 25% to widen

Appier (4180) Nearing A TSE Prime (And TOPIX) Announcement?

By Travis Lundy

  • On 17 Feb 2022, Janaghan Jeyakumar, CFA wrote about Appier Group (4180 JP) suggesting it was a TOPIX inclusion candidate in the not-distant future.
  • In mid-August 2022, he reiterated his opinion. Three days later, the company said they had applied for TSE Prime membership. We are coming up on the timing for an announcement.
  • It would mean buying, but the shareholder structure is interesting, and intentions are not easy to read. But if they announce imminently, the calendar makes the event even more interesting.

End of Mandatory Lock-Up Periods for 58 Companies in Korea in December 2022

By Douglas Kim

  • We discuss end of the mandatory lock-up periods for 58 stocks in Korea in December 2022, among which 9 are in KOSPI and 49 are in KOSDAQ.
  • These 58 stocks on average could be subject to further selling pressures in December and could underperform relative to the market. 
  • Among these 58 stocks, the top 5 market cap stocks include HYBE, Kakao Games, WCP, Sillajen, and Duksan Neolux. 

FY3Q23: If It’s All Macro, Do You Buy the Dip?

By Aaron Gabin

  • First ever ARR miss, and big initial guide down on FY2024 ARR growth: low 30s vs. 37% into the Q. Pretty shocking given Crowdstrike’s track record.
  • Macro Macro Macro – deal close times pushed out for SMBs and Enterprise customers reworking timing of deal starts to match opex budgets.
  • Stock is overly punished down 20% and trading at 9x forward sales for a platform consolidator with 30% FCF margins.

BLS International Services Ltd: Forensic Analysis

By Nitin Mangal

  • BLS International Services (BLSIN IN) is engaged in business of providing outsourcing and administrative task of Visa, Passport and Consular services to various Diplomatic Missions across the world.
  • BLS is troubled with several forensic discomforts. One should take into account the discomforts on the subsidiaries end and other linked entities like DSS Gulf Realtors.
  • Other forensic setbacks include alarming bad debts, misstatement of operating cash flows and several grey areas pertaining to disclosure norms followed by the company.

Alibaba Health 1H: Cost Enhancements Support Margins but Sustainabaility Remains to Be Seen

By Shifara Samsudeen, ACMA, CGMA

  • Alibaba Health reported 1HFY03/2023 results on Monday. Revenue increased 22.9% YoY to RMB11.5bn and reported an adjusted net profit of RMB350m vs net loss of RMB283m reported in 1HFY03/2022.
  • Adjusted operating loss for the quarter decreased to RMB30m compared to RMB586m reported in the same quarter last year.
  • Ali Health’s fulfilment and S&M costs were the highest among peers and cutting down these costs has helped the company reduce its operating losses.

Marketingforce Management Pre-IPO Tearsheet

By Ethan Aw

  • Marketingforce Management (MFM HK) is looking to raise about US$100m in its upcoming HK IPO. The deal will be run by CICC and CCB International. 
  • Marketingforce Management (MFM) is a domestic marketing and sales SaaS solution provider in China and considered the largest in terms of revenue in 2021, according to Frost & Sullivan. 
  • Through its Marketingforce platform, MFM delivers integrated cloud-based solutions that cover the entire marketing and sales management process of enterprises, from content and experience to strategy and management, amongst others. 

Oracle: What To Expect As It Reports Q2 2023 Results

By Vladimir Dimitrov, CFA

  • Oracle’s share price drop presented a good opportunity for long-term shareholders to average down.
  • Lagging analysts’ sentiment still presents an opportunity for future multiple repricing.
  • Headwinds for profitability will likely be an issue for investors with short-term investment horizons.

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Dec 01
0

Daily Brief Consumer: Yum China Holdings Inc, Rakuten Inc, Ql Resources, Balrampur Chini Mills, Mahindra & Mahindra, Lava International, Berli Jucker, BGF Co Ltd, Sky Perfect Jsat, Weilong Delicious Global and more

By | Consumer, Daily Briefs

In today’s briefing:

  • FTSE China 50 Index Rebalance: JD Health, Yum China IN; Longfor, Xpeng OUT
  • Rakuten (Neutral) – Follow up After Results: Mobile Issues Far from Over
  • KLCI Index Rebalance: Preliminary Changes Announced; Should Be Same as Final
  • Balrampur Chini Mills Ltd- Forensic Analysis
  • Mahindra & Mahindra (MM IN) | Wake up and Smell the Coffee
  • Lava International IPO: Forensic Analysis
  • Berli Jucker (BJC TB) – Back on the Boil
  • BGF & BGF Retail Pair Trade: Two Sons of BGF Chairman Hong Receive a Combined 20.9% Stake in BGF
  • Sky Perfect JSAT (Buy) – Q2 Follow up Plus Amazon Proof of Concept for Space Compass
  • Weilong Delicious Global Pre-IPO – Updated Peer Comp and Valuation

FTSE China 50 Index Rebalance: JD Health, Yum China IN; Longfor, Xpeng OUT

By Brian Freitas

Rakuten (Neutral) – Follow up After Results: Mobile Issues Far from Over

By Kirk Boodry

  • Rakuten’s successful junk bond sale means the Rakuten Bank IPO will happen next year and not in December as some had feared
  • More detail on mobile shows that network costs including D&A are 4x that of service revenue and slightly higher QoQ. Roaming alone is higher than service revenue 
  • And that means Rakuten can’t aggressively go after new subscribers unless it wants operating losses to accelerate. Bad for Rakuten but good news for incumbents KDDI, NTT and Softbank. 

KLCI Index Rebalance: Preliminary Changes Announced; Should Be Same as Final

By Brian Freitas

Balrampur Chini Mills Ltd- Forensic Analysis

By Nitin Mangal

  • Balrampur Chini Mills (BRCM IN) is one of the major integrated sugar manufacturing companies in India. Besides sugar, the company also engages in the business of ethanol and power generation.
  • Balrampur has managed to turnaround its free cash flows and earnings quality. Additionally, it has also stabilized working capital on the back of declining debt. 
  • While there are not many red flags, care must be given to inventory reconciliation with bank statement.

Mahindra & Mahindra (MM IN) | Wake up and Smell the Coffee

By Pranav Bhavsar

  • Mahindra & Mahindra (MM IN) ‘s production data provides more questions than answers.
  • The drop in production for Thar and XUV 700 in October in spite of the high order backlog is surprising. 
  • Considering the industry outlook and the existing sales and production for these two models, we believe this demand forecast may not materialise

Lava International IPO: Forensic Analysis

By Nitin Mangal

  • Lava International (9263793Z IN)  is one of the leading end-to-end focused mobile handset and mobile handset Solutions Company based in India, with operations in a number of countries.
  • Major business risk arises from external environment, as Lava is one of the prominent leaders in feature phone segment, where the market is dying. 
  • Key forensic takeaways pertain to ECL provisioning and some absurd trend in line items. There are several discomforts on the governance end as well which must not be ignored.

Berli Jucker (BJC TB) – Back on the Boil

By Angus Mackintosh

  • Berli Jucker (BJC TB) is seeing a recovery underway although it has been masked by YoY comparisons and some pressure from higher raw material costs for its packaging business. 
  • The company is back into expansion mode in retail with 200 new Mini BIGC stores planned for 2023 plus it will increase its aluminium can capacity in Thailand by 10%.
  • Berli Jucker (BJC TB) continues to be an interesting recovery play as an indirect play on tourism and consumption recovery as well as now declining commodity prices. 

BGF & BGF Retail Pair Trade: Two Sons of BGF Chairman Hong Receive a Combined 20.9% Stake in BGF

By Douglas Kim

  • It was announced today that Hong Jung-Guk (eldest son) received a 10.5% stake in BGF Co. (10 million shares) from his father Hong Suk-Jo. 
  • Hong Jung-Hyeok’s (second son) stake in BGF also increased from 0.03% to 10.5%.
  • We like a pair trade between BGF Co (go long) and BGF Retail (go short). The combination of price momentum and valuation favor BGF vs BGF Retail. 

Sky Perfect JSAT (Buy) – Q2 Follow up Plus Amazon Proof of Concept for Space Compass

By Kirk Boodry

  • We are publishing updated forecasts and commentary for Sky Perfect after meeting the company post-results 
  • Media results were predictably weak but the company hopes to make up ground in H2 as it ramps up marketing spend to support sport packages that launch in Spring
  • Amazon’s reveal that it has tested LEO-based satellite software highlights cloud platform interest in space ICT infrastructure like that being pursued by Sky Perfect JSAT and NTT

Weilong Delicious Global Pre-IPO – Updated Peer Comp and Valuation

By Sumeet Singh

  • Weilong Delicious Global (WDG HK), a spicy snack food company in China, aims to raise around US$200m in its Hong Kong IPO.
  • According to F&S, WDG ranked first among spicy snack food enterprises in China, with a market share of 6.2%, and in the seasoned flour product and spicy vegetable snacks categories.
  • In this note, we provide an update to our earlier peer comparison and valuations.

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Dec 01
0

Daily Brief Energy/Materials: Posco Chemical Co Ltd, Warrego Energy, Lygend Resources & Technology, Origin Energy, ABM Investama, Indocement Tunggal Prakarsa and more

By | Daily Briefs, Energy & Materials Sector

In today’s briefing:

  • CSI KRX China-Korea: Rebalancing Results from KRX & Flow Trading Considerations
  • Reinhart Edges Stokes In Tussle For Warrego Energy
  • Lygend Resources & Technology IPO: Trading Debut
  • Warrego (WGO AU) In a Three-Way Tussle with Hancock’s A$0.23 Offer
  • (Mostly) Asia M&A Nov 2022 Roundup: Origin, Perpetual, Mori Trust, Uzabase, Chip Eng, Golden Energy
  • Asia HY Trade Book – November 2022 – Lucror Analytics
  • Lygend Resources & Technology IPO Trading – Tepid Subscription but Potential Upside Remains
  • Indocement (INTP IJ) – Increasing Reach, Reducing Costs, and Improving Sustainability

CSI KRX China-Korea: Rebalancing Results from KRX & Flow Trading Considerations

By Sanghyun Park

  • KRX unveiled the rebalancing results of the CSI KRX China-Korea indices for Korean constituents yesterday.
  • There is still insufficient evidence data to estimate specific passive impact. The previous rebalancing in June showed no clear correlation between constituent changes and price impact.
  • Although it may be risky to trade on this rebalancing, monitoring the correlation of their passive impact at this point, one year after the release, seems worthwhile.

Reinhart Edges Stokes In Tussle For Warrego Energy

By David Blennerhassett

  • Gina Rinehart’s Hancock Prospecting has joined the bidding war for Warrego Energy (WGO AU) with a A$0.23/share, all cash, off-market Offer versus Beach Energy (BPT AU)‘s management-backed A$0.20/share Scheme Offer.
  • Hancock has already lodged the Bidder’s Statement. There is no minimum acceptance condition attached to  this offer.
  • Warrego currently recommends Beach’s Offer, subject to no superior proposal emerging. Beach has matching rights under the SID entered into on the 14 November. 

Lygend Resources & Technology IPO: Trading Debut

By Arun George

Warrego (WGO AU) In a Three-Way Tussle with Hancock’s A$0.23 Offer

By Arun George

  • Hancock’s offer of A$0.23 is at a 15% premium to Beach Energy (BPT AU)’s A$0.20 offer and a 21.1% premium to Strike Energy (STX AU)’s scrip value on 29 November. 
  • The Hancock off-market offer for Warrego Energy (WGO AU) has no minimum acceptance condition or a material adverse change clause. The offer closes on 31 January 2023.
  • STX could be Hancock’s next logical target to facilitate Perth Basin consolidation. Between STX and BPT, BPT is more likely to return with an improved offer.  

(Mostly) Asia M&A Nov 2022 Roundup: Origin, Perpetual, Mori Trust, Uzabase, Chip Eng, Golden Energy

By David Blennerhassett

  • For the month of November, 11 new deals (firm and non-binding) were discussed on Smartkarma with an overall announced deal size of ~US$20bn.
  • The average premium for the new deals announced (or first discussed) in November was ~52%, and a year-to-date average of 41%.
  • This compares to the average premium for all deals in 2021 (165 deals), 2020 (158 deals), and 2019 (145 deals) of 33%, 31%, and 31.5% respectively.

Asia HY Trade Book – November 2022 – Lucror Analytics

By Charles Macgregor

The Asia HY Trade Book for November 2022 includes a summary of our recommendations, as well as our high-conviction ideas. The report also features relative-value charts and lists of the bonds across Asia (ex-Japan) HY and crossover credits.

Lygend Resources & Technology IPO Trading – Tepid Subscription but Potential Upside Remains

By Clarence Chu

  • Lygend Resources & Technology (2245 HK) raised US$470m in its Hong Kong IPO.
  • Lygend Resources & Technology (Lygend) is a nickel trading and production firm with a portfolio covering multiple areas across the nickel industry value chain.
  • In this note we will talk about the trading dynamics.

Indocement (INTP IJ) – Increasing Reach, Reducing Costs, and Improving Sustainability

By Angus Mackintosh

  • Indocement Tunggal Prakarsa (INTP IJ) has had a tough year with rising energy costs prompting price increases which impacted demand but 3Q2022 saw a strong rebound in sales growth.
  • Margins remained under pressure but increasing prices and the use of alternative fuels are helping to offset the impact of energy costs and more recently coal prices have been declining. 
  • Indocement continues to impress with its focus on sustainability, significantly beating on emissions and dust. Valuations look attractive versus history and with a potential recovery in earnings in 2023.

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Dec 01
0

Daily Brief Industrials: Toyo Construction and more

By | Daily Briefs, Industrials

In today’s briefing:

  • Toyo Construction (1890) – Creeping Up On The Next “Tender Offer Start Date”….. Uh…. Maybe

Toyo Construction (1890) – Creeping Up On The Next “Tender Offer Start Date”….. Uh…. Maybe

By Travis Lundy

  • In March 2022, Toyo Construction (1890 JP) agreed to be taken over by equity affiliate stake owner INFRONEER Holdings (5076 JP) at what was a low price.
  • Nintendo Founder Family Office “YFO” objected, and bought 25+% of the company, then offered to buy it out 30% higher. Toyo Construction objected.
  • Four months later they finally signed an NDA and then started negotiating. Early in November the target date for a Tender Offer start by YFO was pushed to early December.

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Dec 01
0

Daily Brief Health Care: Nippon Shinyaku, Esco Lifesciences Group, WuXi AppTec Co Ltd and more

By | Daily Briefs, Healthcare

In today’s briefing:

  • Nippon Shinyaku (4516 JP): Viltepso Has Strong Muscle Power; New Seizure Drug Launch in Japan
  • Esco Lifesciences Pre-IPO Tearsheet
  • WuXi AppTec (603259.CH/2359.HK) – Interpretation of the Recent Proposed Disposal of A Shares

Nippon Shinyaku (4516 JP): Viltepso Has Strong Muscle Power; New Seizure Drug Launch in Japan

By Tina Banerjee

  • Driven by continued strong performance of Viltepso and other partnered drugs, Nippon Shinyaku (4516 JP)  is expected to report accelerated revenue growth momentum.
  • Viltepso is expected to be the top selling drug of Nippon Shinyaku in FY23. For FY23, the drug is expected to report revenue of ¥14.7 billion (+90% y/y).
  • In November, Nippon Shinyaku launched Fintepla (fenfluramine) for the treatment of seizures in patients with Dravet syndrome (DS) as an add-on therapy to other anti-epileptic medicines in Japan.

Esco Lifesciences Pre-IPO Tearsheet

By Ethan Aw

  • Esco Lifesciences Group (1891571D SP) is looking to raise about US$300m in its upcoming HK IPO. The deal will be run by JP Morgan, BofA and Jefferies.
  • Esco Lifesciences (EL) is a global provider of life sciences, pharmaceutical and bioprocessing tools, with an aim to develop, discover and commercialize technology-driven life sciences, pharmaceutical and bioprocessing tools. 
  • According to CIC, it is the second largest supplier of biosafety cabinets and the third largest supplier of time-lapse incubators globally as measured by revenue in 2021.

WuXi AppTec (603259.CH/2359.HK) – Interpretation of the Recent Proposed Disposal of A Shares

By Xinyao (Criss) Wang

  • WuXi AppTec announced its proposed disposal of A Shares again. Investors’re worried about the signal behind – Performance growth has reached certain limit. There’s the possibility of a turning point.
  • Such proposed disposal (regardless of share price) could continue to weigh on the valuation performance of the whole CXO sector – There is still “bubble” in share price.
  • In fact, Li Ge (Founder of WuXi AppTec) knows CXO industry much better than anyone, when he decides to resolutely reduce his shareholding, it is very telling. 

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Dec 01
0

Daily Brief Financials: Home Consortium Ltd, Credit Acceptance, European Smaller Companies, iShares China Large-Cap (FXI), Saratoga Investama Sedaya, Sunshine Insurance, Hana Financial and more

By | Daily Briefs, Financials

In today’s briefing:

  • FTSE EPRA Nareit Index Rebalance: One Deletion for Australia
  • A Blessing in Disguise
  • FTSE UK Dec 22 Rebal: Quiddity Announcement Day Thoughts
  • EQD | FXI (FXI US): – Could Chinese Equities Lead the Way Higher? Use Options for Delta-Revisited
  • Saratoga Investama Sedaya (SRTG IJ) – A World of Indonesian Themes
  • Sunshine Insurance Group IPO: Valuation Insights
  • South Korean Banks Screener; Hana Financial in the Positive Spotlight

FTSE EPRA Nareit Index Rebalance: One Deletion for Australia

By Brian Freitas

  • There are no adds for the FTSE EPRA Nareit Developed Asia Index in December. The only deletion is Home Consortium Ltd (HMC AU). 
  • Passive trackers are estimated to sell 12x ADV on Home Consortium Ltd at the close 16 December. Short interest is nearly the same and there could be some covering.
  • Home Consortium Ltd (HMC AU) has underperformed its peers over the last 12 months and still trades more expensive to its peer group.

A Blessing in Disguise

By Steven Chen

  • We try to stay away from the fool’s errand of forecasting the economy;
  • But often, we notice that high-quality businesses actually benefit from harsh economic conditions in terms of (long-term) shareholder value;
  • We provided an example of a company that we own to illustrate how.

FTSE UK Dec 22 Rebal: Quiddity Announcement Day Thoughts

By Janaghan Jeyakumar, CFA

  • The December 2022 Rebalance of the FTSE UK Index series will be based on the closing prices of 29th November 2022. 
  • The results will be announced after market close later today (30th November 2022).
  • Below are Quiddity’s final expectations for index changes and flow parameters for the December 2022 Rebalance event. You have the day to trade this.

EQD | FXI (FXI US): – Could Chinese Equities Lead the Way Higher? Use Options for Delta-Revisited

By Simon Harris

  • Chinese equities have been on a volatile path but are finally gaining some upside momentum
  • Dollar seems to have peaked and USDCNH is retreating with renewed optimism for the Chinese economy reopening. 
  • We revisit the trade and look at potential restructuring options

Saratoga Investama Sedaya (SRTG IJ) – A World of Indonesian Themes

By Angus Mackintosh

Sunshine Insurance Group IPO: Valuation Insights

By Arun George

South Korean Banks Screener; Hana Financial in the Positive Spotlight

By Victor Galliano

  • Six of the seven South Korean banks screen favourably on valuation versus returns metrics to September 2022; we add Hana Financial, to our buy rating on KB Financial
  • Hana has undemanding valuations, and improving pre-provision and post-provision returns,  it also has sound core capital ratio of close to 13%
  • We remain neutral on digital bank KakaoBank where we are deterred by high cost of risk metrics relative to its peers; we continue to seek positive catalysts on this name

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Dec 01
0

Daily Brief Singapore: Esco Lifesciences Group and more

By | Daily Briefs, Singapore

In today’s briefing:

  • Esco Lifesciences Pre-IPO Tearsheet

Esco Lifesciences Pre-IPO Tearsheet

By Ethan Aw

  • Esco Lifesciences Group (1891571D SP) is looking to raise about US$300m in its upcoming HK IPO. The deal will be run by JP Morgan, BofA and Jefferies.
  • Esco Lifesciences (EL) is a global provider of life sciences, pharmaceutical and bioprocessing tools, with an aim to develop, discover and commercialize technology-driven life sciences, pharmaceutical and bioprocessing tools. 
  • According to CIC, it is the second largest supplier of biosafety cabinets and the third largest supplier of time-lapse incubators globally as measured by revenue in 2021.

💡 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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  • ✓ Personalised Alerts
  • ✓ Custom Watchlists
  • ✓ Company Data and News
  • ✓ Events & Webinars
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