Smartkarma Daily Briefs

Iwasaki Electric (6924 JP) has recommended an MBO tender offer, sponsored by Carlyle Group Inc (CG US), of JPY4,460 per share, an 86.1% premium to the undisturbed price (6 February).
The transaction is a two-step acquisition through a cash tender offer and subsequent squeeze-out. The lower limit of the offer has been set to meet the 66.67% ownership ratio.
The tender offer is attractive and represents a ten-year share price high. This suggests a done deal. The tender offer period is from 7 February to 22 March.

USDJPY – Is USDJPY Confirming a Return to the Long-Term Uptrend?

At TMA we deliver high probability outcomes by focusing on our 3 pillars of technical analysis. •1) Response to key levels. •2) Price action. •3) Momentum confirmation.
Last week delivered a host of bullish MT USD reversal patterns across USD/G10 and USD/Asia pairs.
USDJPY has responded impulsively to critical LT support around 127.50. February has the potential to confirm a return to the multi-year uptrend with aggressive targets around 175/180.

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Feb 07

Daily Brief TMT/Internet: Tencent, Jeio, Com2us Corp, Delta Electronics Thai, Meta Platforms (Facebook), Advanced Micro Devices, Immersion Corporation, Ubiquiti Inc., Light Science Technologies Holdings and more

By Smartkarma Daily Briefs | Daily Briefs, TMT/Internet

In today’s briefing:

China Internet Weekly (6Feb2023): Tencent, JD.com, Microsoft
JEIO IPO: Book Building Results Analysis
Com2uS Corp: The Most Likely Corporate Activist Target in Korea’s Game Industry
Delta Electronics (DELTA TB / 2308 TT): Waiting for a Reversal
Meta Platforms: Q4 Earnings Update, Our Approach Now
Advanced Micro Devices (AMD): New Launches & Other Drivers
IMMR: Rumbles of a Special Sit, Initiating
UI: Margin Rebound with Revenue Growth
Light Science Technologies Holdings – Pluses and minuses of high energy costs

China Internet Weekly (6Feb2023): Tencent, JD.com, Microsoft

By Ming Lu

WeChat Usage increased by 23% YoY in physical store during Chinese New Year holidays.
JD.com will close its e-commerce platforms in Indonesia and Thailand in March.
Microsoft denies a layoff plan in China, but the details of the plan are spreading.

JEIO IPO: Book Building Results Analysis

By Douglas Kim

Jeio (418550 KS) announced its IPO price of 13,000 won, which was at the high end of the recently revised down IPO price range of 10,000 won to 13,000 won.
There were 1,174 institutional investors that participated in this IPO survey. The demand ratio was 352.6 to 1.
Our base case valuation of JEIO is target price of 12,575 won per share, which is 3.3% lower than the IPO price 13,000 won.

Com2uS Corp: The Most Likely Corporate Activist Target in Korea’s Game Industry

By Douglas Kim

Com2us Corp (078340 KS) is the most likely corporate activist target in Korea’s game industry.
Our base case valuation of Com2uS suggests a target price of 97,321 won which is 49% higher than current price.
Finally, the company is expected to launch at least 3-4 promising new games this year. All in all, we have a positive view of Com2uS Corp.

Delta Electronics (DELTA TB / 2308 TT): Waiting for a Reversal

Delta Electronics Thai (DELTA TB) is now the largest stock in Thailand by market cap. The recent SET50 INDEX inclusion has set the stock on fire.
The Delta Electronics Thai (DELTA TB) / Delta Electronics (2308 TT) spread is very wide now, but still well within the historical highs.
We’d put on a placeholder position and monitor the spread for an entry once there is a clearer indication of a reversal in the spread.

Meta Platforms: Q4 Earnings Update, Our Approach Now

By Moat Investing

Meta announced its Q4 earnings, exceeding expectations on the top line by 1.5%, but falling short on the bottom line by 20.8%.
The key highlights from the announcement included an increase in share buybacks, reductions in capital expenditures, and a lowered outlook for operating expenses.
Since the release of new earnings by Meta (NASDAQ:META), we have been following up on our last report, which got a very positive response.

Advanced Micro Devices (AMD): New Launches & Other Drivers

AMD had a strong quarter and managed an all-around beat despite the fact that the company navigated quite a challenging macro environment.
The company also launched the Ryzen 7000 mobile APUs, RX 7000 laptop GPUs, and V-cache chips.
For the company’s Xilinx data center as well as networking products, AMD had strong sales in the quarter.

IMMR: Rumbles of a Special Sit, Initiating

By Hamed Khorsand

We are initiating coverage of Immersion (IMMR) with a Buy Rating and $11 target
IMMR is a haptics technology developer that has undergone a management change that could further result in a series of material developments
IMMR naming Eric Singer as its CEO suggests there is more to come from IMMR than the cost cuts IMMR undertook two years ago when Mr. Singer joined the Board

UI: Margin Rebound with Revenue Growth

By Hamed Khorsand

Ubiquiti (UI) reported fiscal second quarter (December) results affirming our expectations of the enterprise segment being the source of growth
Ubiquiti has introduced several new products lines over the past two years, which we believe are becoming an important part of the revenue story
The product mix and reduced shipping costs resulted in Ubiquiti reporting gross margin of 40 percent. This is the first time in four quarters gross margin reached 40 percent

Light Science Technologies Holdings – Pluses and minuses of high energy costs

In December, Light Science Technologies Holdings (LSTH) noted that high input costs have resulted in strong interest in the group’s controlled environment agriculture (CEA) products because they help growers operate more efficiently. This demand has generated a sales pipeline for the group of quoted work worth more than £60m (as of December 2022), including forward orders and contracts of £18m (contingent on meeting certain milestones). However, high input costs have caused growers to defer capital investment decisions, resulting in longer sales cycles. This has adversely affected FY22 trading because some anticipated revenue streams for the CEA division are now more likely to materialise in FY23 rather than FY22. Based on this information, we are introducing estimates for FY22 and FY23.

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Feb 07

Daily Brief Industrials: Jeju Air, Boustead Projects, Iwasaki Electric, Zhejiang Hangke Technology-A and more

By Smartkarma Daily Briefs | Daily Briefs, Industrials

In today’s briefing:

Korea NPS Reportedly Finalized Additional 50 KOSPI Stocks in Its BM for Direct Management
Boustead Projects (BOCJ SP): Unconditional Offer at S$0.90 from Boustead Singapore
Iwasaki Electric (6924 JP): JPY4,460 MBO Tender Offer from Carlyle
Zhejiang HangKe Technology-A (688006 CH) – Confirming a Tradeable Bullish Multi-Month Opportunity

Korea NPS Reportedly Finalized Additional 50 KOSPI Stocks in Its BM for Direct Management

By Sanghyun Park

NPS said it would add 50 KOSPI stocks to KOSPI 200 for direct management. However, the key was when this would be implemented and which ones would be included.
SBS, one of Korea’s major networks, exclusively reported that NPS finalized the constituent stocks of the NPS-KR250 and started rebalancing trading on the 50 additional KOSPI stocks from January.
Hence, tracing and identifying who these additional 50 KOSPI stocks are is becoming the hottest topic in Korea’s local market at this point.

Boustead Projects (BOCJ SP): Unconditional Offer at S$0.90 from Boustead Singapore

Boustead Projects (BOCJ SP)/BPL has disclosed a voluntary unconditional offer from Boustead Singapore Limited (BOCS SP) at S$0.90 per share, a 7.8% premium to the undisturbed price (3 February).
The offer price is unattractive in comparison to peer multiples, historical trading ranges and precedent transactions. However, the offer price is not final.
As Boustead Singapore aims to privatise BPL there is a possibility of a bump. The offer document will be despatched and the offer opens by 27 February.

Iwasaki Electric (6924 JP): JPY4,460 MBO Tender Offer from Carlyle

Iwasaki Electric (6924 JP) has recommended an MBO tender offer, sponsored by Carlyle Group Inc (CG US), of JPY4,460 per share, an 86.1% premium to the undisturbed price (6 February).
The transaction is a two-step acquisition through a cash tender offer and subsequent squeeze-out. The lower limit of the offer has been set to meet the 66.67% ownership ratio.
The tender offer is attractive and represents a ten-year share price high. This suggests a done deal. The tender offer period is from 7 February to 22 March.

Zhejiang HangKe Technology-A (688006 CH) – Confirming a Tradeable Bullish Multi-Month Opportunity

At TMA we deliver high probability outcomes by focusing on our 3 pillars of technical analysis. •1) Response to key levels. •2) Price action. •3) Momentum confirmation.
January completed a bullish 3 month reversal pattern in 688006 CH and thus confirmed a likely MT bottom.
688006 CH has had an incredible pivotal relationship with its 50 week MA since 2020. A weekly close above the 50 week MA will confirm a high probability MT uptrend.

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Feb 07

Most Read: Kakao Pay, Jiangxi Special Electric Motor A, Bangkok Bank Public, Newcrest Mining, Korea Stock Exchange Kospi 200 Index, Jeju Air, Omni Bridgeway, Iwasaki Electric and more

By Smartkarma Daily Briefs | Daily Briefs, Most Read

In today’s briefing:

Index Rebalance & ETF Flow Recap: MSCI, ASX, STAR50, China 50, NIFTY100, SMM SP, Pertamina Geo IPO
CSI500 Index Rebalance Preview: Potential Adds Continuing to Outperform
Newmont’s Indicative Offer for Newcrest Mining (NCM AU)
BBL/KBANK: Huge Outperformance as BBL Nears NVDR Limit
Newmont Proposes Taking Newcrest Back Into The Fold
Korea: Upcoming Changes to Dividend Rules & Implications
Korea NPS Reportedly Finalized Additional 50 KOSPI Stocks in Its BM for Direct Management
Quiddity Leaderboard-S&P/ASX Mar 23: Time to Be Bullish ASX 200 & 300 Potential ADDs
Newcrest Mining (NCM AU): Newmont’s Light All-Scrip Offer
Iwasaki Electric (6924 JP): JPY4,460 MBO Tender Offer from Carlyle

Index Rebalance & ETF Flow Recap: MSCI, ASX, STAR50, China 50, NIFTY100, SMM SP, Pertamina Geo IPO

There were some review cutoffs last week as well as the implementation of the PCOMP INDEX, IDX 30 Index, LQ 45 Index and IDX 80 Index.
The big event in the coming week is the announcement of the MSCI February QCIR on Friday morning Asia time with implementation at the close of trading on 28 February.
Inflows to iShares Core MSCI Emerging Markets ETF (IEMG US) continue while IShares Edge MSCI Min Vol Emerging Markets ETF (EEMV US) continues to see redemptions.

CSI500 Index Rebalance Preview: Potential Adds Continuing to Outperform

Three quarters of the way through the review period for the June rebalance of the CSI500 Index, we forecast 50 changes (the maximum permitted) at the close on 9 June.
There is a big sector skew in the potential changes. We estimate a one-way turnover of 11.47% at the June rebalance resulting in a one-way trade of CNY 10.11bn.
The potential adds have outperformed the potential deletes and the CSI500 Index over the last few weeks. There could be more outperformance till nearer the end of the review period.

Newmont’s Indicative Offer for Newcrest Mining (NCM AU)

Newmont Mining (NEM US) has made an indicative, non-binding and conditional proposal to acquire Newcrest Mining (NCM AU). The exchange ratio is 0.38 Newmont shares for each Newcrest share.
At Newmont Mining (NEM US)‘s last close, this values Newcrest Mining (NCM AU) at A$27.4/share and at an equity value of A$17.3bn, a 22% premium to the last close.
Newmont Mining (NEM US) intends to list CDIs on the ASX following the acquisition and that will have implications for changes in the S&P/ASX family of indices.

BBL/KBANK: Huge Outperformance as BBL Nears NVDR Limit

Bangkok Bank (BBL TB) has outperformed Kasikornbank PCL (KBANK TB) by 33% over the last 11 months and the price ratio is nearing the high end of the historical range.
The number of NVDRs issued on Bangkok Bank Public (BBL TB) have continued to increase while decreasing on Kasikornbank PCL (KBANK TB).
Bangkok Bank Public (BBL TB) now trades at a higher forward PE as compared to Kasikornbank PCL (KBANK TB) and the gap in price to book has narrowed significantly.

Newmont Proposes Taking Newcrest Back Into The Fold

By David Blennerhassett

Newmont Mining (NEM US), the world’s largest gold miner, has pitched a non-binding, all-scrip proposal for Newcrest Mining (NCM AU), Australia’s largest listed gold company.
The proposal offers 0.38 Newmont shares for every Newcrest share, or an indicative Offer price of A$27.16/share, a 21% premium to last close. An earlier proposal from Newmont was rejected.
The proposal is subject to a raft of conditions, including granting of exclusivity to Newmont, due diligence, Newmont shareholder approval, and regulatory approvals, including FIRB.

Korea: Upcoming Changes to Dividend Rules & Implications

On 31 January, Korea’s Financial Services Commission (FSC) and the Ministry of Justice announced plans to improve rules regarding dividends to bring them in line with international standards.
Companies will be able to decide the dividend amount prior to the record dates for quarterly dividends, while the ex-date of the final dividend will be post the AGM.
This was one of the issues highlighted by MSCI for Korea’s upgrade from EM to DM. There are also implications for the KOSPI200 futures basis and futures rolls.

Korea NPS Reportedly Finalized Additional 50 KOSPI Stocks in Its BM for Direct Management

By Sanghyun Park

NPS said it would add 50 KOSPI stocks to KOSPI 200 for direct management. However, the key was when this would be implemented and which ones would be included.
SBS, one of Korea’s major networks, exclusively reported that NPS finalized the constituent stocks of the NPS-KR250 and started rebalancing trading on the 50 additional KOSPI stocks from January.
Hence, tracing and identifying who these additional 50 KOSPI stocks are is becoming the hottest topic in Korea’s local market at this point.

Quiddity Leaderboard-S&P/ASX Mar 23: Time to Be Bullish ASX 200 & 300 Potential ADDs

By Janaghan Jeyakumar, CFA

In this insight, we take a look at the potential index changes for S&P ASX 20, 50, 100, 200, 300 in the run up to the March 2023 Rebalance.
There could be one change for ASX 20 and one change for ASX 100 while ASX 200 could see four ADDs/DELs.
For ASX 300, there could be 15 ADDs and 12 DELs in the March 2023 Rebalance including some high impact names based on days-to-trade.

Newcrest Mining (NCM AU): Newmont’s Light All-Scrip Offer

Newcrest Mining (NCM AU) confirmed a non-binding indicative privatisation proposal from Newmont Mining (NEM US) at 0.380 Newmont shares per Newcrest share.
The offer values Newcrest at a discount to Tier 1 gold producer EV/Resource multiples. Also, the offer carries the volatility risk around Newmont shares and FX rates.
The offer underscores Newcrest’s value and helps the Board seek better terms. There is a possibility of a counterbid from other Tier 1 producers such as Barrick Gold (GOLD US).

Iwasaki Electric (6924 JP): JPY4,460 MBO Tender Offer from Carlyle

Iwasaki Electric (6924 JP) has recommended an MBO tender offer, sponsored by Carlyle Group Inc (CG US), of JPY4,460 per share, an 86.1% premium to the undisturbed price (6 February).
The transaction is a two-step acquisition through a cash tender offer and subsequent squeeze-out. The lower limit of the offer has been set to meet the 66.67% ownership ratio.
The tender offer is attractive and represents a ten-year share price high. This suggests a done deal. The tender offer period is from 7 February to 22 March.

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Feb 07

Daily Brief Energy/Materials: Newcrest Mining, Ambuja Cements, Natural Gas, Greatpower Nickel & Cobalt Materials and more

By Smartkarma Daily Briefs | Daily Briefs, Energy & Materials Sector

In today’s briefing:

Newmont Proposes Taking Newcrest Back Into The Fold
Newcrest Mining (NCM AU): Newmont’s Light All-Scrip Offer
Ambuja Cements – Quick Insight on Valuation
Major Commodity Fund Outflows Continue in January
Greatpower Nickel and Cobalt Materials Pre-IPO – Should Turnaround once COVID Is Over

Newmont Proposes Taking Newcrest Back Into The Fold

By David Blennerhassett

Newmont Mining (NEM US), the world’s largest gold miner, has pitched a non-binding, all-scrip proposal for Newcrest Mining (NCM AU), Australia’s largest listed gold company.
The proposal offers 0.38 Newmont shares for every Newcrest share, or an indicative Offer price of A$27.16/share, a 21% premium to last close. An earlier proposal from Newmont was rejected.
The proposal is subject to a raft of conditions, including granting of exclusivity to Newmont, due diligence, Newmont shareholder approval, and regulatory approvals, including FIRB.

Newcrest Mining (NCM AU): Newmont’s Light All-Scrip Offer

Newcrest Mining (NCM AU) confirmed a non-binding indicative privatisation proposal from Newmont Mining (NEM US) at 0.380 Newmont shares per Newcrest share.
The offer values Newcrest at a discount to Tier 1 gold producer EV/Resource multiples. Also, the offer carries the volatility risk around Newmont shares and FX rates.
The offer underscores Newcrest’s value and helps the Board seek better terms. There is a possibility of a counterbid from other Tier 1 producers such as Barrick Gold (GOLD US).

Ambuja Cements – Quick Insight on Valuation

By Nurture Capital Advisory

Cement sector is witnessing a margin recovery and valuations are reasonable.
Ambuja Cements, the second largest in the sector provides a tactical opportunity for a valuation pop.
Avoid | as any inclusion amounts to adding to the risk rather than to the return of the portfolio.

Major Commodity Fund Outflows Continue in January

By The Commodity Report

Glencore said last week that its copper production fell 12% in 2022.
The miner and trader said it produced 1.06 million tonnes of copper last year and kept its 2023 outlook unchanged at around 1.04 million tonnes.
Many miners revise their copper output lower, as extreme weather, labor issues, or lower grades have caused companies to deal with problems and limit the output accordingly.

Greatpower Nickel and Cobalt Materials Pre-IPO – Should Turnaround once COVID Is Over

By Ethan Aw

Greatpower Nickel & Cobalt Materials (1919613D CH) is looking to raise about US$300m in its upcoming Hong Kong IPO.
Greatpower Nickel and Cobalt Materials (GNCM) is a supplier of new energy battery materials in China, with a dual focus on nickel and cobalt for the production of cathode materials.
The firm has made itself one of the top Chinese players in terms of cobalt refining by sales volume and nickel by trading volume. However, its profitability was significantly impacted.

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Feb 07

Daily Brief Industrials: Jeju Air, Boustead Projects, Iwasaki Electric, Zhejiang Hangke Technology-A and more

By Smartkarma Daily Briefs | Daily Briefs, Industrials

In today’s briefing:

Korea NPS Reportedly Finalized Additional 50 KOSPI Stocks in Its BM for Direct Management
Boustead Projects (BOCJ SP): Unconditional Offer at S$0.90 from Boustead Singapore
Iwasaki Electric (6924 JP): JPY4,460 MBO Tender Offer from Carlyle
Zhejiang HangKe Technology-A (688006 CH) – Confirming a Tradeable Bullish Multi-Month Opportunity

Korea NPS Reportedly Finalized Additional 50 KOSPI Stocks in Its BM for Direct Management

By Sanghyun Park

NPS said it would add 50 KOSPI stocks to KOSPI 200 for direct management. However, the key was when this would be implemented and which ones would be included.
SBS, one of Korea’s major networks, exclusively reported that NPS finalized the constituent stocks of the NPS-KR250 and started rebalancing trading on the 50 additional KOSPI stocks from January.
Hence, tracing and identifying who these additional 50 KOSPI stocks are is becoming the hottest topic in Korea’s local market at this point.

Boustead Projects (BOCJ SP): Unconditional Offer at S$0.90 from Boustead Singapore

Boustead Projects (BOCJ SP)/BPL has disclosed a voluntary unconditional offer from Boustead Singapore Limited (BOCS SP) at S$0.90 per share, a 7.8% premium to the undisturbed price (3 February).
The offer price is unattractive in comparison to peer multiples, historical trading ranges and precedent transactions. However, the offer price is not final.
As Boustead Singapore aims to privatise BPL there is a possibility of a bump. The offer document will be despatched and the offer opens by 27 February.

Iwasaki Electric (6924 JP): JPY4,460 MBO Tender Offer from Carlyle

Iwasaki Electric (6924 JP) has recommended an MBO tender offer, sponsored by Carlyle Group Inc (CG US), of JPY4,460 per share, an 86.1% premium to the undisturbed price (6 February).
The transaction is a two-step acquisition through a cash tender offer and subsequent squeeze-out. The lower limit of the offer has been set to meet the 66.67% ownership ratio.
The tender offer is attractive and represents a ten-year share price high. This suggests a done deal. The tender offer period is from 7 February to 22 March.

Zhejiang HangKe Technology-A (688006 CH) – Confirming a Tradeable Bullish Multi-Month Opportunity

By Research as a Service (RaaS)

At TMA we deliver high probability outcomes by focusing on our 3 pillars of technical analysis. •1) Response to key levels. •2) Price action. •3) Momentum confirmation.
January completed a bullish 3 month reversal pattern in 688006 CH and thus confirmed a likely MT bottom.
688006 CH has had an incredible pivotal relationship with its 50 week MA since 2020. A weekly close above the 50 week MA will confirm a high probability MT uptrend.

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

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

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Feb 07

Daily Brief Consumer: Nissan Motor, Tod’s SpA, Pinduoduo, HUGO BOSS AG, BetMakers Technology Group, General Motors and more

By Smartkarma Daily Briefs | Consumer, Daily Briefs

In today’s briefing:

Renault & Nissan Deal Done: Still a Trading Nothing🍔 So Far, OK Framework but Need Shaq Fingerguns
Tod’s: Failed Privatization Provides Red Carpet for LVMH Bid
EM Outperformance to Continue (Vs. EAFE) — Add on a Pullback; DXY Needs to Hold Below $106
Hugo Boss: Self-Help Growth Story
BetMakers Technology Group Ltd – Turning Point
General Motors Company: EV Plant In Canada & Other Developments

Renault & Nissan Deal Done: Still a Trading Nothing🍔 So Far, OK Framework but Need Shaq Fingerguns

By Travis Lundy

As “disclosed” recently, we have a deal. Nissan Motor (7201 JP) will invest “up to 15%” in Ampere. Mitsubishi Motors (7211 JP) may join. They have many potential joint projects.
The key is the Governance Framework, which replaces RAMA. Renault SA (RNO FP) puts 28.4% of Nissan in an open-ended Trust. Renault and Nissan have 15% reciprocal voting rights.
The webcast is more optimistic than I am. Luca de Meo made special mention of the joint projects. This sounds good. It sounds like what has always been promised.

Tod’s: Failed Privatization Provides Red Carpet for LVMH Bid

By Nicolas Van Broekhoven

Tod’s founder Diego Della Valle is undoubtedly frustrated his bid to privatize Tod’s at 40 EUR failed in 4Q22
It was the ideal time to privatize in order to maximize value for his family before selling to LVMH, the most logical buyer since 2017
Our conviction that Tod’s ends up in the LVMH stable of brands is stronger than ever, an exit offer of 60 EUR per share would be a reasonable assumption

EM Outperformance to Continue (Vs. EAFE) — Add on a Pullback; DXY Needs to Hold Below $106

By Joe Jasper

The MSCI EM vs.EAFE ratio (local currency) shows EM has outperformed relative to EAFE since the DXY peaked in November 2022, and also shows signs of reversing the 2-year downtrend.
As long as the DXY remains below $103.50-$106, we expect outperformance from EM to continue.
China/Hong Kong, Greece, South Africa, and Mexico stand out as attractive countries. Our top actionable Sectors include Communications, Consumer Discretionary, and Technology. We highlight 76 attractive EM stocks.

Hugo Boss: Self-Help Growth Story

By Alexis Dwek

Under the new leadership led by CEO Daniel Grieder, Hugo Boss’s new refreshed brand has been gaining market share over the last few quarters
Growth has been driven by strong marketing campaigns aimed at younger consumers and an improved execution.
Hugo Boss is a self-help growth story with further margin expansion potential. Valuation remains appealing at these levels and should re-rate in line with the sector. Upside 15%

BetMakers Technology Group Ltd – Turning Point

BetMakers Technology Group (ASX:BET) is a B2B software services business providing racing, wagering and integrity data, software and hardware products to bookmakers, racing authorities and rights holders globally.
BET announced a significant restructure of its senior management team and board with the appointment of the company’s largest shareholder and gaming tech investor Matt Davey to the position of President and Executive Chairman; the transition of Chairman Nick Chan to Non-Executive Director; the promotion of COO Jake Henson to the position of Chief Executive Officer and the appointment of CEO Todd Buckingham to Chief Growth Officer.
Mr Buckingham also steps down from the board and has surrendered 10m of his performance rights.

General Motors Company: EV Plant In Canada & Other Developments

General Motors managed to deliver an all-around beat in the recent result with an increase in the market share and record ATPs.
In the commercial fleet business, the company gained a profitable, considerable market share.
We provide the stock of General Motors with a ‘Hold’ rating and a revision in the target price.

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Feb 07

Daily Brief Health Care: Shanghai Junshi Bioscience, New Ruipeng Pet Group, Edwards Lifesciences, Actinogen Medical, Remegen Co Ltd, Context Therapeutics, Stryker Corp and more

By Smartkarma Daily Briefs | Daily Briefs, Healthcare

In today’s briefing:

Shanghai Junshi Bioscience (1877 HK/688180 CH): US Approval of Toripalimab Is Still In Doldrums
New Ruipeng Pet Group IPO: Struggling Pet Hospital Operator. Hard To Justify Premium Valuation
Edwards Lifesciences: Sapien-3 Ultra Resilia Valve Launch & Other Developments
Actinogen Medical – On track to start Phase IIb XanaMIA study
Remegen Co Ltd (9995.HK) – There’s Expectation Difference in Valuation; Trading Opportunity Occurs
Context Therapeutics – Encouraging positive efficacy signals from OATH trial
Stryker Corporation: The Citrefix Launch & Other Developments

Shanghai Junshi Bioscience (1877 HK/688180 CH): US Approval of Toripalimab Is Still In Doldrums

By Tina Banerjee

Shanghai Junshi Bioscience (688180 CH) did not receive FDA approval for toripalimab in US, as the agency could not conduct on-site inspection of the company’s manufacturing facility for the drug.
Toripalimab (branded as TUOYI) is showing decelerated revenue growth rate in China. Besides being approved for small patient population, TUOYI has seen reduction in price after being included in NRDL.
In May 2022, the company launched adalimumab biosimilar in China. It marks a late entry in a highly competitive market. COVID-19 oral drug should not bode well for the company.

New Ruipeng Pet Group IPO: Struggling Pet Hospital Operator. Hard To Justify Premium Valuation

By Andrei Zakharov

New Ruipeng Pet Group, a China-based pet clinic operator and provider of pet care services, filed for a U.S. IPO. The company plans to list ADSs under the ticker “RPET.”
The company’s most recent private round was a $500M venture round led by Boehringer Ingelheim and Tencent at a ~$4.4B valuation in September 2020.
We believe investors should think twice before investing in the New Ruipeng IPO as the pet hospital operator struggled to grow revenues, operating losses mounted, and labor costs increased.

Edwards Lifesciences: Sapien-3 Ultra Resilia Valve Launch & Other Developments

Despite the healthcare disruptions in several key geographies, Edwards Lifesciences delivered a good result surpassing the analyst consensus estimates in terms of revenues as well as earnings.
In the quarter Edwards made a series of some external investments in several promising early-stage technologies.
We provide the stock of Edwards Lifesciences with a ‘Hold’ rating and a revision in the target price.

Actinogen Medical – On track to start Phase IIb XanaMIA study

Actinogen’s recent quarterly update confirmed that the company remains on track to start US recruitment in H1 CY23 for its six-month, placebo-controlled Phase IIb portion of the XanaMIA study. The study is designed to assess the safety and efficacy of Xanamem in a population of patients with mild cognitive impairment (CI) and mild Alzheimer’s disease (AD), who at baseline will have been confirmed as biomarker-positive for AD (as determined through elevated blood phosphorylated Tau, or pTau). The company also started enrolment in Q4 CY22 for its XanaCIDD Phase IIa study assessing Xanamem in patients with CI relating to persistent depression despite ongoing treatment with standard-of-care medications. We expect the next material clinical data milestone for the company will be the XanaCIDD results, due in late CY23 or early CY24.

Remegen Co Ltd (9995.HK) – There’s Expectation Difference in Valuation; Trading Opportunity Occurs

By Xinyao (Criss) Wang

RemeGen’s revenue declined in 22H2, leading to lower-than-expected performance last year.However, 2022’s low base is good for the growth this year,especially when non-COVID treatment returns to normal after China reopens.
We analyzed our revenue forecast on RC48 and RC18. We don’t think there should be big difference between the market value of RemeGen and Akeso. So, RemeGen’s valuation is attractive.
The sentiment in HKEX has changed this year, so the trading strategy should be different. The pullback could be a buying opportunity, especially for good biotech companies such as RemeGen.

Context Therapeutics – Encouraging positive efficacy signals from OATH trial

Context Therapeutics has announced that two patients enrolled in the Phase II OATH trial (ONA-XR+anastrozole in advanced endometrial cancer) have achieved partial response (tumor shrinkage) to the treatment. This translates to an overall response rate (ORR) of 22% (two of nine evaluable patients) and strengthens the previously announced positive data from the study (four-month progression free survival (PFS) rate of 77.7%). Management expects to report additional data from the study in Q223 and similar results from a wider cohort should further validate the therapeutic potential of the combination treatment, in our opinion. The beginning of 2023 has been eventful for Context and we expect heightened investor interest given anticipated data readouts from multiple ONA-XR studies (including the SMILE and ELONA trials in breast cancer) later this year.

Stryker Corporation: The Citrefix Launch & Other Developments

Stryker managed to deliver an all-around beat in its recent result despite facing inflationary challenges and unprecedented supply chain challenges.
The company saw growth in organic sales and interestingly, the international organic growth rate exceeded the company’s U.S. growth rate, demonstrating its globalization progress.
The great progress of Stryker’s Mako offense resulted in strong growth of its installed base and continued utilization increases.

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Feb 07

Daily Brief Financials: Korea Stock Exchange Kospi 200 Index, Omni Bridgeway, Bitcoin, JPY, PICC Property & Casualty H, Greentown China, JPMorgan Global Growth & Income, Celsius Network and more

By Smartkarma Daily Briefs | Daily Briefs, Financials

In today’s briefing:

Korea: Upcoming Changes to Dividend Rules & Implications
Quiddity Leaderboard-S&P/ASX Mar 23: Time to Be Bullish ASX 200 & 300 Potential ADDs
What to Watch in 2023
USDJPY – Is USDJPY Confirming a Return to the Long-Term Uptrend?
PICC P&C (2328 HK): Performance Recoupling; Breaking Support at HKD7.25?
Morning Views Asia: Country Garden Holdings Co, Greentown China
JPMorgan Global Growth & Income – Income and outperformance in uncertain times
CEL Token Inflated By Insiders

Korea: Upcoming Changes to Dividend Rules & Implications

On 31 January, Korea’s Financial Services Commission (FSC) and the Ministry of Justice announced plans to improve rules regarding dividends to bring them in line with international standards.
Companies will be able to decide the dividend amount prior to the record dates for quarterly dividends, while the ex-date of the final dividend will be post the AGM.
This was one of the issues highlighted by MSCI for Korea’s upgrade from EM to DM. There are also implications for the KOSPI200 futures basis and futures rolls.

Quiddity Leaderboard-S&P/ASX Mar 23: Time to Be Bullish ASX 200 & 300 Potential ADDs

By Janaghan Jeyakumar, CFA

In this insight, we take a look at the potential index changes for S&P ASX 20, 50, 100, 200, 300 in the run up to the March 2023 Rebalance.
There could be one change for ASX 20 and one change for ASX 100 while ASX 200 could see four ADDs/DELs.
For ASX 300, there could be 15 ADDs and 12 DELs in the March 2023 Rebalance including some high impact names based on days-to-trade.

What to Watch in 2023

By Etherbridge

Investors will remember 2022 as the first real credit crisis that bitcoin and the broader crypto space have suffered. In historical terms, it was a significant year.
The ensuing deleveraging eliminated many entities that got overzealous in the bull market and didn’t adjust their strategies to new market conditions.
Almost the entirety of those now-insolvent entities were centralised conduits to the world of blockchain and digital assets.

USDJPY – Is USDJPY Confirming a Return to the Long-Term Uptrend?

At TMA we deliver high probability outcomes by focusing on our 3 pillars of technical analysis. •1) Response to key levels. •2) Price action. •3) Momentum confirmation.
Last week delivered a host of bullish MT USD reversal patterns across USD/G10 and USD/Asia pairs.
USDJPY has responded impulsively to critical LT support around 127.50. February has the potential to confirm a return to the multi-year uptrend with aggressive targets around 175/180.

PICC P&C (2328 HK): Performance Recoupling; Breaking Support at HKD7.25?

By Stanley Tsai, CFA

PICC P&C was a shelter for investors in 2022, as its earnings were largely shielded from the pandemic. However, momentum has shifted in favor of the rest of the sector.
As the reopening story tails off, we expect the stock’s performance to recouple to the broader H-Financials index.
Valuation is undemanding, but the same can be said of almost any other stock in the space. If the HKD7.25/share resistance level breaks, we may see a major correction.

Morning Views Asia: Country Garden Holdings Co, Greentown China

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.

Country Garden Holdings Co
Greentown China

JPMorgan Global Growth & Income – Income and outperformance in uncertain times