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Smartkarma Daily Briefs

Jun 20
0

United States: Ethereum and more

By | Daily Briefs, United States

In today’s briefing:

  • DeFi Saver

DeFi Saver

By Etherbridge

  • Managing all your DeFi assets can be complicated. Last week we covered the DeFi and Web3 aggregator Zerion, a general-purpose aggregator plugged into many different protocols.
  • This week our guide will cover another aggregator, one with a more granular focus on DeFi, called DeFi Saver.
  • Similar to Zerion, DeFi Saver is a DeFi aggregator. However, DeFi Saver differentiates itself as more of an asset management tool that offers several advanced services that a general-purpose aggregator such as Zerion does not.

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Jun 19
0

South Korea: Sk Chemicals Co Ltd/New, Chunbo Co Ltd and more

By | Daily Briefs, South Korea

In today’s briefing:

  • MSCI Korea August QIR Preview
  • Sungeel HiTech IPO Preview

MSCI Korea August QIR Preview

By Sanghyun Park

  • Small Caps → Standard migrations do not seem to happen at all in this QIR. Similarly, there will likely be no deletion of the existing constituents.
  • Among the Outside IMIs, Kakao Pay is the only one that has the possibility of inclusion. However, it also has uncertainty about the float rate in this QIR.
  • For FOL stocks, the telcos are on the event-triggering borderline. In particular, SKT deserves attention. But its foreign room is now above 3%, so its deletion possibility is getting slimmer.

Sungeel HiTech IPO Preview

By Douglas Kim

  • Sungeel Hitech is getting ready to complete its IPO in Korea in July. This is one of the market leaders in the recycling of rechargeable battery materials in Korea. 
  • It has experienced excellent growth in sales and profits. It had revenue of 147.3 billion won (up 123.3% YoY) and operating profit of 16.9 billion won in 2021.
  • The IPO price range is from 40,700 won to 47,500 won. The IPO base deal size ranges from $86 million to $100 million.

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Jun 19
0

Japan: World Co Ltd and more

By | Daily Briefs, Japan

In today’s briefing:

  • Japan Apparel Rethink: World Tries Diversification

Japan Apparel Rethink: World Tries Diversification

By Michael Causton

  • The outlook for big apparel remains uncertain; most executives are optimistic about a rebound in sales of premium apparel brands, they are also running around looking for ways to diversify.
  • Despite years of closing stores and a recent re-listing, World Co Ltd (3612 JP) remains in uncertain territory as it tries to boost sales of key brands.
  • More brands may need to close but the apparel firm is at least investing in new ventures, even if small scale.

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Jun 19
0

Macro: Recession Is Here! SPX(S&P500) Still Set to Test 3200.Last Week’s US Fed Move Makes This More Likely and more

By | Daily Briefs, Macro

In today’s briefing:

  • Recession Is Here! SPX(S&P500) Still Set to Test 3200.Last Week’s US Fed Move Makes This More Likely

Recession Is Here! SPX(S&P500) Still Set to Test 3200.Last Week’s US Fed Move Makes This More Likely

By Michael J. Howell

  • Bear market results from sharp monetary squeeze as Central Bank liquidity withdrawn, led by Fed. More pain to come. Recession is here
  • US Federal Reserve is driving markets lower and USD up. QT has officially started, but Fed has in fact been secretly tightening liquidity for months
  • Effective Fed balance sheet likely to contract by US$2 trillion under QT plans, but policy error could easily force a bigger US$3 trillion correction. Wall Street at risk.

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Jun 19
0

Industrials: Chunbo Co Ltd and more

By | Daily Briefs, Industrials

In today’s briefing:

  • Sungeel HiTech IPO Preview

Sungeel HiTech IPO Preview

By Douglas Kim

  • Sungeel Hitech is getting ready to complete its IPO in Korea in July. This is one of the market leaders in the recycling of rechargeable battery materials in Korea. 
  • It has experienced excellent growth in sales and profits. It had revenue of 147.3 billion won (up 123.3% YoY) and operating profit of 16.9 billion won in 2021.
  • The IPO price range is from 40,700 won to 47,500 won. The IPO base deal size ranges from $86 million to $100 million.

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Jun 19
0

Most Read: Sea Ltd, GoGoX Holdings, Russell 2000 Index, Sk Chemicals Co Ltd/New, World Co Ltd and more

By | Daily Briefs, Most Read

In today’s briefing:

  • Sea Ltd (SE US) – Navigating Challenging Waters With Sails Set
  • GOGOX IPO: Growth at All Costs
  • US Small Caps Macro Buy Zone
  • MSCI Korea August QIR Preview
  • Japan Apparel Rethink: World Tries Diversification

Sea Ltd (SE US) – Navigating Challenging Waters With Sails Set

By Angus Mackintosh

  • There has been a recent press commentary about Sea Ltd laying off staff, which although unpleasant reflects management’s decisive and pragmatic decision-making style which is no bad thing.
  • It is unclear how many staff are being laid off and where but it seems that Indonesia is not impacted in a big way and core markets continue to perform.
  • We will not follow on the coattails of liquidity with a negative recommendation when what management is doing looks positive and Sea Ltd (SE US) is batting above its peers.

GOGOX IPO: Growth at All Costs

By Arun George

  • GoGoX Holdings (GOGO HK) is a major online intra-city logistics platform in Asia. It has passed the listing hearing for an HKEx IPO to raise US$100-150 million.   
  • In GOGOX IPO Initiation: A Less than Perfect Delivery, we noted that as the losses are expected to persist over the next three years, we would avoid the IPO.
  • In this note, we examine the PHIP for the 2021 results and recent developments. The fundamentals remain unattractive and we would give the IPO a pass. 

US Small Caps Macro Buy Zone

By Thomas Schroeder

  • We continue to see US equity downside risk on the back of earnings estimates seeing further downgrades. Small caps are at/near some interesting macro support.
  • RTY met key support to establish a perform position as the SPX finds a foothold into late June. Near term cycle date due early this week.
  • June bottoming cycle into July ahead of a more bullish August that then runs into the dreaded weak September cycle.

MSCI Korea August QIR Preview

By Sanghyun Park

  • Small Caps → Standard migrations do not seem to happen at all in this QIR. Similarly, there will likely be no deletion of the existing constituents.
  • Among the Outside IMIs, Kakao Pay is the only one that has the possibility of inclusion. However, it also has uncertainty about the float rate in this QIR.
  • For FOL stocks, the telcos are on the event-triggering borderline. In particular, SKT deserves attention. But its foreign room is now above 3%, so its deletion possibility is getting slimmer.

Japan Apparel Rethink: World Tries Diversification

By Michael Causton

  • The outlook for big apparel remains uncertain; most executives are optimistic about a rebound in sales of premium apparel brands, they are also running around looking for ways to diversify.
  • Despite years of closing stores and a recent re-listing, World Co Ltd (3612 JP) remains in uncertain territory as it tries to boost sales of key brands.
  • More brands may need to close but the apparel firm is at least investing in new ventures, even if small scale.

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Jun 19
0

Equity Capital Markets: Chunbo Co Ltd, Sichuan Tianqi Lithium Industries, Inc and more

By | Daily Briefs, ECM

In today’s briefing:

  • Sungeel HiTech IPO Preview
  • ECM Weekly (19th June 2022) – Tianqi, GoAir, China United, Hongjiu Fruit, Airtel/Singtel, ExaWizards

Sungeel HiTech IPO Preview

By Douglas Kim

  • Sungeel Hitech is getting ready to complete its IPO in Korea in July. This is one of the market leaders in the recycling of rechargeable battery materials in Korea. 
  • It has experienced excellent growth in sales and profits. It had revenue of 147.3 billion won (up 123.3% YoY) and operating profit of 16.9 billion won in 2021.
  • The IPO price range is from 40,700 won to 47,500 won. The IPO base deal size ranges from $86 million to $100 million.

ECM Weekly (19th June 2022) – Tianqi, GoAir, China United, Hongjiu Fruit, Airtel/Singtel, ExaWizards

By Sumeet Singh

  • Aequitas Research puts out a weekly update on the deals that were covered by the team recently along with updates for upcoming IPOs.
  • IPO volumes remain subdued across the region, although a number of deals are said to be looking to launch soon.
  • Given the recent market volatility, there were no large placements this week.

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Jun 19
0

Consumer: World Co Ltd, Medical Developments International and more

By | Consumer, Daily Briefs

In today’s briefing:

  • Japan Apparel Rethink: World Tries Diversification
  • Melco: By Far the Cheapest Bet on Recovery in the Asian Gaming Sector–With Cautions

Japan Apparel Rethink: World Tries Diversification

By Michael Causton

  • The outlook for big apparel remains uncertain; most executives are optimistic about a rebound in sales of premium apparel brands, they are also running around looking for ways to diversify.
  • Despite years of closing stores and a recent re-listing, World Co Ltd (3612 JP) remains in uncertain territory as it tries to boost sales of key brands.
  • More brands may need to close but the apparel firm is at least investing in new ventures, even if small scale.

Melco: By Far the Cheapest Bet on Recovery in the Asian Gaming Sector–With Cautions

By Howard J Klein

  • No stock in the sector among major operators has taken a bigger hit than Melco, down over 60% this year.
  • The bet is tied to whether Beijing will begin to ease travel bans and lockdowns or not before the end of this year. If so, Melco is very cheap here.
  • Performance of its Manila property, the opening of its new Cyprus resorts could carry the company safely until Macau recovery is in place.

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Jun 19
0

Event-Driven: Sk Chemicals Co Ltd/New, Frasers Hospitality Trust, Link Administration, SenseTime Group and more

By | Daily Briefs, Event-Driven

In today’s briefing:

  • MSCI Korea August QIR Preview
  • Last Week in Event SPACE: Frasers Hospitality, Toyo Construction, Link Admin, Kito Corporation
  • Asia-Pac Weekly Risk Arb Wrap: ResApp Health, Kto Corp, Link Admin, Toyo, Fraser Hospitality
  • Index Rebalance & ETF Flow Recap: HSCEI, LQ45, Kakao Pay, Thai Life

MSCI Korea August QIR Preview

By Sanghyun Park

  • Small Caps → Standard migrations do not seem to happen at all in this QIR. Similarly, there will likely be no deletion of the existing constituents.
  • Among the Outside IMIs, Kakao Pay is the only one that has the possibility of inclusion. However, it also has uncertainty about the float rate in this QIR.
  • For FOL stocks, the telcos are on the event-triggering borderline. In particular, SKT deserves attention. But its foreign room is now above 3%, so its deletion possibility is getting slimmer.

Last Week in Event SPACE: Frasers Hospitality, Toyo Construction, Link Admin, Kito Corporation

By David Blennerhassett

  • Frasers Hospitality (FHT SP)‘s Offer comes at an all-time high price, exceeding the end-2019 price on a dividend-adjusted basis.  This should be done, but it is worth thinking about how.
  • There is clearly an intentional miscommunication and bad faith posturing by Toyo Construction (1890 JP). 
  • Link Admin (LNK AU) has to exit PEXA to appease ACCC. But how badly do D&D want PEXA? Will they walk? Time to look at Link fundamentally.

Asia-Pac Weekly Risk Arb Wrap: ResApp Health, Kto Corp, Link Admin, Toyo, Fraser Hospitality

By David Blennerhassett

Index Rebalance & ETF Flow Recap: HSCEI, LQ45, Kakao Pay, Thai Life

By Brian Freitas

  • It was a busy Friday with multiple implementations of the June rebalance – FTSE All-World/All-Cap, FTSE China 50/A50/TW50, S&P/ASX, REMX and GDXJ among others.
  • We highlight potential upcoming changes to the HSCEI INDEX and LQ45 Index, when Kakao Pay (377300 KS) could be added in MSCI Korea & the Thai Life IPO index inclusion.
  • There were large inflows to China and Korea focused ETFs during the week.

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Jun 19
0

TMT: Link Administration, SenseTime Group and more

By | Daily Briefs, TMT/Internet

In today’s briefing:

  • Asia-Pac Weekly Risk Arb Wrap: ResApp Health, Kto Corp, Link Admin, Toyo, Fraser Hospitality
  • Index Rebalance & ETF Flow Recap: HSCEI, LQ45, Kakao Pay, Thai Life

Asia-Pac Weekly Risk Arb Wrap: ResApp Health, Kto Corp, Link Admin, Toyo, Fraser Hospitality

By David Blennerhassett

Index Rebalance & ETF Flow Recap: HSCEI, LQ45, Kakao Pay, Thai Life

By Brian Freitas

  • It was a busy Friday with multiple implementations of the June rebalance – FTSE All-World/All-Cap, FTSE China 50/A50/TW50, S&P/ASX, REMX and GDXJ among others.
  • We highlight potential upcoming changes to the HSCEI INDEX and LQ45 Index, when Kakao Pay (377300 KS) could be added in MSCI Korea & the Thai Life IPO index inclusion.
  • There were large inflows to China and Korea focused ETFs during the week.

Before it’s here, it’s on Smartkarma

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