Smartkarma Daily Briefs

Mitsui&Co has been in Relia Inc (4708 JP) for a long time. As part of investing in BPO/RPA/AI services, they are buying out Relia, merging it with a KDDI sub.
They are buying it at an all-time high, and a 50% premium. Looks nice. But it’s not nice enough.
This is one of those times when I can reiterate, Japan Needs More Cowbell.

Liquid Universe of European Ordinary and Preferred Shares: January ‘23 Report

By Jesus Rodriguez Aguilar

Since mid-December, spreads have shown a mixed performance across our liquid universe (9 have widened, 9 tightened, 1 at same level).
Trade recommendations long ords / short prefs: Fuchs Petrolub, Henkel, Handelsbanken, SSAB Svenska Stal.
Trade recommendations long prefs / short ords: Sixt, VW, Danieli, MFE-Media for Europe, Grifols, Atlas Copco, Ericsson.

Stanley Black & Decker Inc.: Initiation of Coverage – New Launches & Other Drivers

This is our first report on Stanley Black & Decker, one of the largest global manufacturers of tools and engineering systems catering to a wide variety of industries.
The company delivered an all-around beat in its last result and has been making significant progress toward narrowing its focus and overhauling its supply chain in recent times.
We initiate coverage on the stock of Stanley Black & Decker with a ‘Hold’ rating.

Fastenal Company: Initiation of Coverage – Financial Forecasts

This is our first report on Fastenal, a major wholesale distributor of industrial and construction supplies.
The company delivered a strong performance in the last quarter surpassing Wall Street expectations in terms of revenues as well as earnings.
We initiate coverage on the stock of Fastenal Company with a ‘Hold’ rating.

Stanley Black & Decker Inc.: Detailed Credit Analysis & Financial Strength Evaluation Report

Stanley Black & Decker one of the largest providers of tools and engineering systems across the world and caters to a wide variety of industries.
The company has seen significant progress toward narrowing its focus and overhauling its supply chain in recent times.
We also have a dedicated analysis of the company’s Environmental, Social, and Governance (ESG) risk scores in order to evaluate the sustainability risk.

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

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

Jan 17

Daily Brief Consumer: Aristocrat Leisure, Tokyo Stock Exchange Tokyo Price Index Topix, Nitori Holdings, WM Motor Technology Co Ltd and more

By Smartkarma Daily Briefs | Consumer, Daily Briefs

In today’s briefing:

Aristocrat Leisure: Recent Dip in Last 90 Days Opens an Entry Point for This Uncut Gaming Tech Gem
A Few Students Were Motivated by Assignments from Their Teachers, and They Performed Differently
Interiors Long-Term Growth in Japan a Plus for Nitori
WM Motor Reverse Merger and Placement – The US$2bn Merger and US$500m Planned Placement

Aristocrat Leisure: Recent Dip in Last 90 Days Opens an Entry Point for This Uncut Gaming Tech Gem

By Howard J Klein

We have been bullish on the prospects of the Aussie gaming tech maker’s real world valuation in the light of its outstanding performance.
The company’s relatively low institutional holding profile suggests its visibility is limited.
WE put a one year PT on the stock at AUD$45 vs its current trade at AU$33 because it outperforms industry peers in ROE among other reasons.

A Few Students Were Motivated by Assignments from Their Teachers, and They Performed Differently

By Aki Matsumoto

Forcing companies to submit ROE targets as measure to counter the fact that half of companies languish below 1x P/B is like a teacher asking students to submit an assignment.
If that motivates the management, good for them. However, in our experience, only a small percentage of students are motivated by the teacher’s words and see their performance improve.
If companies are asked to submit ROE targets, they shouldn’t simply meet them by changing capital structure through shareholder returns, but should achieve them through investments for future earnings growth.

Interiors Long-Term Growth in Japan a Plus for Nitori

By Michael Causton

Growth in the Japanese home interiors and furniture markets is set to continue long-term.
At present, just a handful of brands have any major presence led by Nitori Holdings (9843 JP) which continues to expand market share.
With multiple formats, Nitori looks set to continue to dominate but faces competition from unlikely quarters, especially Yamada Denki (9831 JP).

WM Motor Reverse Merger and Placement – The US$2bn Merger and US$500m Planned Placement

By Sumeet Singh

On 11th Jan 2023, WM Motor Technology Co Ltd announced its intention to merge with Apollo Future Mobility (860 HK) .
WM Motor failed to list in Hong Kong last year and this is essentially its attempt to undertake a reverse merger at a valuation well below its previous funding rounds.
In this note, we will talk about the deal dynamics and take an early look at its implications.

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

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

Jan 17

Daily Brief Industrials: Relia Inc, Sixt SE, Stanley Black & Decker, Fastenal Co and more

By Smartkarma Daily Briefs | Daily Briefs, Industrials

In today’s briefing:

Mitsui & Co To Buy Out Relia (4708) – Moshi Moshi Is TOO CHEAP
Liquid Universe of European Ordinary and Preferred Shares: January ‘23 Report
Stanley Black & Decker Inc.: Initiation of Coverage – New Launches & Other Drivers
Fastenal Company: Initiation of Coverage – Financial Forecasts
Stanley Black & Decker Inc.: Detailed Credit Analysis & Financial Strength Evaluation Report

Mitsui & Co To Buy Out Relia (4708) – Moshi Moshi Is TOO CHEAP

Mitsui&Co has been in Relia Inc (4708 JP) for a long time. As part of investing in BPO/RPA/AI services, they are buying out Relia, merging it with a KDDI sub.
They are buying it at an all-time high, and a 50% premium. Looks nice. But it’s not nice enough.
This is one of those times when I can reiterate, Japan Needs More Cowbell.

Liquid Universe of European Ordinary and Preferred Shares: January ‘23 Report

By Jesus Rodriguez Aguilar

Since mid-December, spreads have shown a mixed performance across our liquid universe (9 have widened, 9 tightened, 1 at same level).
Trade recommendations long ords / short prefs: Fuchs Petrolub, Henkel, Handelsbanken, SSAB Svenska Stal.
Trade recommendations long prefs / short ords: Sixt, VW, Danieli, MFE-Media for Europe, Grifols, Atlas Copco, Ericsson.

Stanley Black & Decker Inc.: Initiation of Coverage – New Launches & Other Drivers

This is our first report on Stanley Black & Decker, one of the largest global manufacturers of tools and engineering systems catering to a wide variety of industries.
The company delivered an all-around beat in its last result and has been making significant progress toward narrowing its focus and overhauling its supply chain in recent times.
We initiate coverage on the stock of Stanley Black & Decker with a ‘Hold’ rating.

Fastenal Company: Initiation of Coverage – Financial Forecasts

This is our first report on Fastenal, a major wholesale distributor of industrial and construction supplies.
The company delivered a strong performance in the last quarter surpassing Wall Street expectations in terms of revenues as well as earnings.
We initiate coverage on the stock of Fastenal Company with a ‘Hold’ rating.

Stanley Black & Decker Inc.: Detailed Credit Analysis & Financial Strength Evaluation Report

Stanley Black & Decker one of the largest providers of tools and engineering systems across the world and caters to a wide variety of industries.
The company has seen significant progress toward narrowing its focus and overhauling its supply chain in recent times.
We also have a dedicated analysis of the company’s Environmental, Social, and Governance (ESG) risk scores in order to evaluate the sustainability risk.

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

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

Jan 17

Daily Brief TMT/Internet: Tencent, Alibaba (ADR), Money Forward, Kuaishou Technology, Qingdao Ainnovation Technology Group, Taiwan Semiconductor (TSMC) – ADR and more

By Smartkarma Daily Briefs | Daily Briefs, TMT/Internet

In today’s briefing:

Quiddity Primer for HSCEI Rebalance Events
Alibaba: Buoyed By The Ending Crackdowns, Yet Expensive With No Turnaround in Sight For Cash Cows
China Internet Weekly (16Jan2023): Alibaba, Tencent, JD.com, ByteDance
EQD | Alibaba (BABA US): Leverage up Longs Using Call Ratios
Money Forward (3994) | Corporate ARR +55% YoY
Tencent Reach for Sell Zone
Kuaishou (1024 HK): Expanding Market, Will See Higher Growth and Profit
AInnovation Technology Lock-Up – US$670m Worth of Pre-IPO Investment Is Still Well in the Money
Taiwan Tech Weekly: UMC Vs. TSMC Results’ Vastly Different Performance, Japan Cautious on China Bans
Money Forward – Q4 Results Reaction: Encouraging Signs of User Growth and Monetization

Quiddity Primer for HSCEI Rebalance Events

By Janaghan Jeyakumar, CFA

The Hang Seng China Enterprises Index (HSCEI INDEX) is one of the most widely discussed indices in the Hang Seng Indices family.
The HSCEI serves as a benchmark to reflect the overall performance of “Mainland” Securities listed in Hong Kong.
In this insight, we take a brief look at the selection criteria and the historical price performance of past Rebalance Events.

Alibaba: Buoyed By The Ending Crackdowns, Yet Expensive With No Turnaround in Sight For Cash Cows

By Oshadhi Kumarasiri

Alibaba (ADR) (BABA US), along with several other Chinese tech names have rallied more than 100% over the past 2.5 months with the Chinese government indicating regulatory crackdowns are over.
However, we think this could just be a temporary respite for tech names as there’s a lot more to be done in terms of a data security and privacy standpoint.
Nevertheless, Alibaba Group (9988 HK) is still quite expensive, given that government interventions have pretty much curtailed Alibaba’s avenues for growth in the domestic market.

China Internet Weekly (16Jan2023): Alibaba, Tencent, JD.com, ByteDance

By Ming Lu

The Chinese government may possibly buy minor shares in Alibaba and Tencent.
JD.com’s long-term competitor, Dangdang, opened a bookstore in JD.com’s app.
In 2022, both Tencent Video Account’s active user base and time on site reached 80% of We Chat.

EQD | Alibaba (BABA US): Leverage up Longs Using Call Ratios

By Simon Harris

BABA US is up 85% from October lows and continues to trade well in 2023 up 32% in January
Stock has benefitted from not only improved economic sentiment but also an end to the 2-year crack down on the Internet Sector
We suggest using call ratios to increase upside leverage prior to earnings release

Money Forward (3994) | Corporate ARR +55% YoY

By Mark Chadwick

Money Forward Q4 sales rose +42% YoY to Y6.2bn driven by corporate ARR (+55% YoY)
Full year revenue guidance for FY11/23 is in line with consensus
We still see over 20% upside in the stock if the company hits the top end of revenue guidance

Tencent Reach for Sell Zone

By Thomas Schroeder

Tencent faces formidable resistance at 385 that may not be seen for a while. 385 is where old lows and old highs coincide.
RSI is extended (ST sell and bounce). Buy volumes are descent but have been drifting since late 2022.
385 a good zone to sell cash positions or short to challenge pivot supports outlined. 320 is an intermediate level to hold to keep things glued together.

Kuaishou (1024 HK): Expanding Market, Will See Higher Growth and Profit

By Ming Lu

Short video continued to accumulate active users in China and the company’s light-version grew the most rapidly.
We believe the revenue growth rate will rise from 2Q23 and the company will have positive operating profit from 2024.
We set the price target at HK$103, which is 44% over the market price.

AInnovation Technology Lock-Up – US$670m Worth of Pre-IPO Investment Is Still Well in the Money

By Clarence Chu

Qingdao Ainnovation Technology Group (2121 HK) was listed on 27th Jan 2022, with its one-year lockup expiring on 27th January 2023.
Qingdao AInnovation Technology Group is an AI solutions provider offering full-stack AI-based products and solutions.
Coming up for one-year lockup expiry are the pre-IPO shareholders. Bulk of them are in the money as some have invested as early as 2018.

Taiwan Tech Weekly: UMC Vs. TSMC Results’ Vastly Different Performance, Japan Cautious on China Bans

UMC vs. TSMC results review comparison: Vastly different tones of results shows the large gap in industry performance for the most advanced chips products vs. the lesser advanced.
Japan gives mixed signals about rapidly joining U.S. chip restrictions vs. China.
TSMC and UMC were some of the most net-bought stocks in Taiwan by foreigners last week.

Money Forward – Q4 Results Reaction: Encouraging Signs of User Growth and Monetization

By Kirk Boodry

Q4 revenue growth of 43% was driven by growth in sales to corporates (+54%) on new user growth, customer mix, and upside from cross-selling
EBITDA erosion improved from the peak losses of Q3 and whilst it has not issued full-year FY23 guidance, it says it expects steady improvements as the year goes on
This was a good quarter but we expect that is largely reflected in the share price after a 61% run over the last six months

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

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

Jan 17

Daily Brief Financials: Mizuho Financial Group, JPY, S&P 500, Bitcoin, Bitcoin Pro, Fantasia Holdings Group Co and more

By Smartkarma Daily Briefs | Daily Briefs, Financials

In today’s briefing:

Thinking About Japanese Banks – Go Big, Go Small, Go Insurance
Bond Watch – Will Japan Pull the Rug from Under the Yield Curve Control?
SPX Trendline to Define
No Worry, DCG, Genesis, and Grayscale Won’t Cause Another Crash in the Crypto Market
The Return of the Bulls
Morning Views Asia: Azure Power Global Ltd, China Hongqiao, Fantasia Holdings Group Co

Thinking About Japanese Banks – Go Big, Go Small, Go Insurance

Japanese Banks have had a good run recently. From the day before the BOJ changed the 10yr yield target in December in its YCC programme to today, +30% vs TOPIX.
The question is how that is spread out. There are lots of banks. Some are cheaper than others. Some are better than others. Can we draw conclusions to trade better?
If you are looking at Japanese Banks to play a change in BOJ policy when Governor Kuroda’s term ends shortly, there are definitely conclusions one can draw. I offer comments.

Bond Watch – Will Japan Pull the Rug from Under the Yield Curve Control?

By Andreas Steno

Markets price more than 35 bps ahead of the BoJ meeting. Is that too much?
BoJ is not scared of inflation. They fear a lack of market functioning in JGB markets.
JPY may be overbought into the meeting, while USTs are oversold

SPX Trendline to Define

By Thomas Schroeder

Adjusted our SPX resistance level given overshoots with a focus on SPX futures trendline at 4,080 and price pivot at 4,100.
We will take this week to measure overbought conditions and sentiment. Near term upside risk to SPX trendline that defines the LT trend.
We have not given up on our macro bear cycle as long as trendline caps. Fine tuning top signals is the chore at hand.

No Worry, DCG, Genesis, and Grayscale Won’t Cause Another Crash in the Crypto Market

By Edward Wu

DCG’s subsidiary Genesis is likely to become the next insolvent crypto lender, market fears its failure will lead to the dissolving of Grayscale, which held 3% of bitcoin’s total supply;
Grayscale is a profitable business with $200 million annual fee income from the GBTC trust, DCG or any new buyer of Grayscale has no intention to dissolve the cash cow;
Even if Grayscale dissolve, it won’t cause another crash as only $1 billion value of bitcoin may be dumped into the market, only 3.3% of bitcoin daily trading volume;

The Return of the Bulls

By Kaiko

Price Movements: Bullish sentiment has returned to crypto, with BTC up 20% over the past week.
Market Liquidity: Binance.US’s market share relative to other U.S. exchanges climbed to 15%, a marked increase after dropping to 6% post-FTX.
Derivatives: BTC open interest fell sharply after a short squeeze caused millions in liquidations.

Morning Views Asia: Azure Power Global Ltd, China Hongqiao, Fantasia Holdings Group Co

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.

Azure Power Global Ltd
China Hongqiao
Fantasia Holdings Group Co
Fosun International

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

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

Jan 17

Most Read: Mizuho Financial Group, Bank of Kyoto, Wuxi Biologics, Relia Inc, Tencent, Alibaba (ADR), Taiwan Semiconductor (TSMC) – ADR and more

By Smartkarma Daily Briefs | Daily Briefs, Most Read

In today’s briefing:

Thinking About Japanese Banks – Go Big, Go Small, Go Insurance
Bank of Kyoto (8369) – Not a Normal Regional Bank
Wuxi Biologics Placement – Lesser Discount than Recent Deals but Still Looks Good
Mitsui & Co To Buy Out Relia (4708) – Moshi Moshi Is TOO CHEAP
Quiddity Primer for HSCEI Rebalance Events
Alibaba: Buoyed By The Ending Crackdowns, Yet Expensive With No Turnaround in Sight For Cash Cows
Taiwan Dual-Listings: TSMC Premium In Upper Range, UMC Briefing This Afternoon
TSMC Analyst Call Take-Aways: Signs of Industry Stabilization & 2H23E Recovery
HK Short Interest Weekly: Tencent, Baba, CMB, Bidu, Meituan, HSBC, Differ, Li Auto
Good Morning Japan |US Off = Directionless; BOJ in Focus +2trn JGB Buying; Kuroda off to Davos

Thinking About Japanese Banks – Go Big, Go Small, Go Insurance

Japanese Banks have had a good run recently. From the day before the BOJ changed the 10yr yield target in December in its YCC programme to today, +30% vs TOPIX.
The question is how that is spread out. There are lots of banks. Some are cheaper than others. Some are better than others. Can we draw conclusions to trade better?
If you are looking at Japanese Banks to play a change in BOJ policy when Governor Kuroda’s term ends shortly, there are definitely conclusions one can draw. I offer comments.

Bank of Kyoto (8369) – Not a Normal Regional Bank

Bank of Kyoto (8369 JP) is a classic “deep value” trade. It has a low PBR, and… “Dude, it’s equity portfolio alone is worth more than the whole bank.”
It has a larger market cap than most super-low PBR Japanese regional banks, is more liquid, and the narrative is quite easy to tell.
Japanese Banks are the hottest new thing but unless you think This Particular Leopard is going to change its spots, it is still best thought of as a range trade.

Wuxi Biologics Placement – Lesser Discount than Recent Deals but Still Looks Good

By Ethan Aw

Wuxi Biologics Holdings is looking to raise up to US$513m by selling about 1.3% of Wuxi Biologics (2269 HK).
This is the company’s 16th placement since it listed in June 2017.
In this note, we will discuss deal dynamics, past deal performance, and share the scores on our ECM framework.

Mitsui & Co To Buy Out Relia (4708) – Moshi Moshi Is TOO CHEAP

Mitsui&Co has been in Relia Inc (4708 JP) for a long time. As part of investing in BPO/RPA/AI services, they are buying out Relia, merging it with a KDDI sub.
They are buying it at an all-time high, and a 50% premium. Looks nice. But it’s not nice enough.
This is one of those times when I can reiterate, Japan Needs More Cowbell.

Quiddity Primer for HSCEI Rebalance Events

By Janaghan Jeyakumar, CFA

The Hang Seng China Enterprises Index (HSCEI INDEX) is one of the most widely discussed indices in the Hang Seng Indices family.
The HSCEI serves as a benchmark to reflect the overall performance of “Mainland” Securities listed in Hong Kong.
In this insight, we take a brief look at the selection criteria and the historical price performance of past Rebalance Events.

Alibaba: Buoyed By The Ending Crackdowns, Yet Expensive With No Turnaround in Sight For Cash Cows

By Oshadhi Kumarasiri

Alibaba (ADR) (BABA US), along with several other Chinese tech names have rallied more than 100% over the past 2.5 months with the Chinese government indicating regulatory crackdowns are over.
However, we think this could just be a temporary respite for tech names as there’s a lot more to be done in terms of a data security and privacy standpoint.
Nevertheless, Alibaba Group (9988 HK) is still quite expensive, given that government interventions have pretty much curtailed Alibaba’s avenues for growth in the domestic market.

Taiwan Dual-Listings: TSMC Premium In Upper Range, UMC Briefing This Afternoon

TSMC ADRs are trading at the high end of the recent premium/discount range.
UMC ADRs are near the middle of their premium/discount range, however the company will host its analyst results call this afternoon.
ASE’s ADR premium is at the upper end of its range.

TSMC Analyst Call Take-Aways: Signs of Industry Stabilization & 2H23E Recovery

TSMC’s comments during its 4Q22 analyst call indicate the company expects an industry recovery in 2H23E, adding further confirmation to this view expressed by other firms.
TSMC grew faster than the industry in 2022 and expects to grow faster than the industry in 2023E again.
Based on our cycle-adjusted PE valuation metric, TSMC my not be super cheap vs. history, but it is also inexpensive.

HK Short Interest Weekly: Tencent, Baba, CMB, Bidu, Meituan, HSBC, Differ, Li Auto

We analyzed the latest HK SFC report for aggregate short position as of Jan 6th.
Top short increases and decreases were tabulated for one week and four week period.
We highlight short changes in Tencent, Baba, Cm Bank, Bidu, Meituan, HSBC, Differ Gp Auto, Li Auto-W.

Good Morning Japan |US Off = Directionless; BOJ in Focus +2trn JGB Buying; Kuroda off to Davos

By Mark Chadwick

OVERSEAS: US MLK Holidays – World markets directionless; US Equity Futs flat; European Markets bid on Inflation peak; BOJ decision to lead markets this week.
JAPAN: NKY Futures +0.2% vs Cash ; USDJPY flat at 128.52 ; BOJ speculation dominates local headlines; Kuroda heads to Davos = no fireworks? ; Dec Machine Tools orders +1%YoY
DAILY NUGGET: Fast Retailing and Sustainability: Set to introduce a new repair service in its domestic stores.

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

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

Jan 16

Daily Brief Quantitative Analysis: A-H Premium Weekly (Jan 13th): Fuyao Glass and more

By Smartkarma Daily Briefs | Daily Briefs, Quantitative Analysis

In today’s briefing:

A-H Premium Weekly (Jan 13th): Fuyao Glass, Shenhua, Minsheng, Yankuang Energy, China Longyuan
HK Short Interest Weekly: Tencent, Baba, CMB, Bidu, Meituan, HSBC, Differ, Li Auto
Hong Kong Connect Flows (Jan 13th): Tencent Profit Taking
TWSE Short Interest Weekly (Jan 13th): Delta Elec, Cathay Financial, Gigabyte Tech
Northbound Flows (Jan 13th): 1Y High Weekly Inflows

A-H Premium Weekly (Jan 13th): Fuyao Glass, Shenhua, Minsheng, Yankuang Energy, China Longyuan

We analyse the changes of A-H premium on 142 stocks over the last week. The average A-H premium was 109.1% as of Jan 13th.
The average A-H premium changed by -0.1ppt week on week, led by real estate, information technology, communication services and offset by utilities, financials, health care.
We highlight weekly changes in A-H premium for Fuyao Glass, Shenhua, Minsheng, Yankuang Energy, China Longyuan, Flat Glass.

HK Short Interest Weekly: Tencent, Baba, CMB, Bidu, Meituan, HSBC, Differ, Li Auto

We analyzed the latest HK SFC report for aggregate short position as of Jan 6th.
Top short increases and decreases were tabulated for one week and four week period.
We highlight short changes in Tencent, Baba, Cm Bank, Bidu, Meituan, HSBC, Differ Gp Auto, Li Auto-W.

Hong Kong Connect Flows (Jan 13th): Tencent Profit Taking

We analyze the weekly Hong Kong Connect flows with our data engine for holding position as of January 13th.
The top stocks by inflows and outflows were tabulated for all market, HSCEI, mid cap and s/mid cap groups.
We highlight flows for China Mobile, Simcere Pharmaceutical, Tencent, Geely Automobile.

TWSE Short Interest Weekly (Jan 13th): Delta Elec, Cathay Financial, Gigabyte Tech

We analyzed the changes in short interest of TWSE Stocks as of Jan 13th which has an aggregated short interest worth USD12.1bn.
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 Delta Elec, Cathay Financial, Gigabyte Tech.

Northbound Flows (Jan 13th): 1Y High Weekly Inflows

We analyze the weekly Shanghai/Shenzhen northbound Connect flows with our data engine for holding position as of January 13th.
We estimate the weekly inflows to be US$6,510.6 million, led by financials, consumer staples, information technology sectors, and offset by energy, real estate.
We highlight flows for CATL, Ping An Insurance, Moutai, Wuliangye, Longi Green Energy Technology, Jiangsu Hengrui Medicine.

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

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

Jan 16

Daily Brief Thematic (Sector/Industry): Good Morning Japan |Fed 1 Inflation 0 and more

By Smartkarma Daily Briefs | Daily Briefs, Thematic (Sector/Industry)

In today’s briefing:

Good Morning Japan |Fed 1 Inflation 0, Fed Wins; Equity Bid Continues; Telsa Cuts Px; BOJ in Focus
Identify New Directions of China Healthcare in 2023 – Major Changes In Highest Level Policy Document
The Innovations Portfolio – Week Eight
What’s Going On With Okada Manila’s SPAC Deal?

Good Morning Japan |Fed 1 Inflation 0, Fed Wins; Equity Bid Continues; Telsa Cuts Px; BOJ in Focus

By Mark Chadwick

OVERSEAS: SPX +0.4%DoD +2.7%WoW; Semi run continues with SOX +0.4%DoD +6.2%WoW; Beta and Growth the big WoW winners; Fed’s Bostic leans to 25bp hike; Tesla cuts prices
JAPAN: NKY Futs -1.3% vs Cash; JGB 10Yr Yld hits 0.512% despite BOJ 10trn yen buying; USDJPY up to127.87; DECARBONIZATION: Resonac (Showa Denko) expansion; Toray expansion; METI CCS roadmap
DAILY NUGGET: Slowing EV sales in China ? Maybe, but its still the largest EV market in the world. We see Nidec as the best way to play.

Identify New Directions of China Healthcare in 2023 – Major Changes In Highest Level Policy Document

By Xinyao (Criss) Wang

China issued the “Outline of the Strategic Plan for Expanding Domestic Demand (2022-2035)”, where some statements are different from those in the “14th Five-year Plan” and the 20th National Congress report.
We analyzed our interpretation and speculated the “wind direction” behind the difference in statements, so as to identify some possible changes in China healthcare industry in 2023.
The Outline is not only in line with the adjustment of COVID policies,but also highly relevant to the major contradictions/changes in internal and external situations. Investors need to follow the trend.

The Innovations Portfolio – Week Eight

By Pyari Menon

We again write about one stock each from the large, mid and small cap portfolios, briefly giving the reasons for their inclusion.
The three companies we write about this week are Bank Of America (BAC US)3M Co (MMM US) and SKF AB (SKFB SS)
For the eight weeks since inception ended 13 Jan the combined innovation portfolio was +4.2%, versus DJIA +1.7%, S&P500 +0.9%, Nasdaq -0.6%, Russell2000 +2%, MSCI-ACWI-ETF +3.2%, all in US$ terms

What’s Going On With Okada Manila’s SPAC Deal?

By subSPAC

The Saga surrounding Okada Manila and the efforts by a US-listed SPAC to bring the Philippines integrated resort operator public is one of the more unusual events concerning SPACs in recent memory.
The deal, which was announced as far back as October 2021, valuing Okada at $2.6 billion, has been stuck in Limbo amidst a heated battle for control.
After several twists and turns, the SPAC dealmakers & current management are still looking to close the deal, recently taking a one-year extension.

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

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

Jan 16

Daily Brief Equity Bottom-Up: Venture Corporation – A Dialogue from the Past Might Give Some Insight on the Future and more

By Smartkarma Daily Briefs | Daily Briefs, Equity Bottom-Up

In today’s briefing:

Venture Corporation – A Dialogue from the Past Might Give Some Insight on the Future
TSMC Analyst Call Take-Aways: Signs of Industry Stabilization & 2H23E Recovery
China Power International (2380 HK): A Look into the Positive Profit Alert
Stellantis: Can It Double?
AvidXchange: How Mid-Market Can Save Money. Attractive Valuation and Low-Risk Entry Point
British American Tobacco: Attractive Return Potential, 6%+ Yield Likely To Sustain
Small Cap Idea: Diversey Holdings (DSEY)
Weekly Liquidity Risk Short Candidates: Natera, Silk Road Med, Floor & Decor Hldgs

Venture Corporation – A Dialogue from the Past Might Give Some Insight on the Future

By Pyari Menon

After a gap of over fifteen years from formal coverage of Venture Corp (VMS SP), I took a look again this week, not much seems to have changed.
Venture Corp’s management hankering for “charm” in its contracts, with respect to NOT just return on investment but also return on effort will be the primary risk for growth
Excellent anchor customers have boosted margins. The tech slowdown might entice larger EMS to be more aggressive and chase these businesses placing margins at risk.

TSMC Analyst Call Take-Aways: Signs of Industry Stabilization & 2H23E Recovery