All Posts By

Smartkarma Daily Briefs

Daily Brief ESG: No Causality Between Shareholder Proposal Withdrawal and Share Price and more

By | Daily Briefs, ESG

In today’s briefing:

  • No Causality Between Shareholder Proposal Withdrawal and Share Price, but Dialogue Is a Good Thing

No Causality Between Shareholder Proposal Withdrawal and Share Price, but Dialogue Is a Good Thing

By Aki Matsumoto

  • I would like to discuss about the Nikkei article, “Shareholder Proposal ‘Withdrawn,’ Share Price Firm; Dialogue Leads to Compromise.”
  • Regarding “share prices of companies whose shareholder proposals are withdrawn are firm during sharp sell-off,” there seems little proof of causal relationship between withdrawal of shareholder proposals and stock performance.
  • Although Japanese corporate culture has tradition of doing everything without making a fuss, Japanese managers need to have serious discussion with shareholders on the balance between growth and shareholder returns.

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

Sign Up for Free

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

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

Daily Brief Credit: Chinese Property Weekly – 15 July 2022 – Lucror Analytics and more

By | Credit, Daily Briefs

In today’s briefing:

  • Chinese Property Weekly – 15 July 2022 – Lucror Analytics
  • Weekly Wrap – 15 Jul 2022

Chinese Property Weekly – 15 July 2022 – Lucror Analytics

By Charles Macgregor

The Chinese Property Weekly focuses on providing updates in the Chinese real-estate sector, including recent regulatory and company developments, top and bottom performers, rating actions, as well as a list of bond maturities in the next 30 days.


Weekly Wrap – 15 Jul 2022

By Charles Macgregor

Lucror Analytics Weekly Wraps provide an overview of all Morning Views comments and reports published by our analyst team in the past week, and also showcase a list of the most-read reports.

In this Insight:

  1. Yankuang Energy Group
  2. Powerlong Real Estate Holdings
  3. Sawit Sumbermas Sarana
  4. Vedanta Resources
  5. Tata Motors Ltd

and more…


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

Sign Up for Free

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

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

Daily Brief Equity Bottom-Up: Adi Sarana Armada (ASSA IJ) – Building on Pillars and more

By | Daily Briefs, Equity Bottom-Up

In today’s briefing:

  • Adi Sarana Armada (ASSA IJ) – Building on Pillars
  • M : Time to Harvest
  • Smartkarma Webinar | Trade Ideas in ASEAN
  • BayCurrent (6532) | Jumping in Ahead of Earnings
  • Hyundai Motor’s Ioniq 6 – To Take Away More Market Share From Tesla Model 3 Sedan?
  • India EV Sector: Electric Cars in Demand, but Limited Options. Tata’s Nexon EV Leads
  • TISCO : Small but Strong
  • Alkem Laboratories Ltd (ALKEM IN): Strong India Business to Drive Future Performance

Adi Sarana Armada (ASSA IJ) – Building on Pillars

By Angus Mackintosh

  • Adi Sarana Armada (ASSA IJ) continues to build on its three pillars of growth across transport, used car sales, and logistics including its leading last-mile delivery service under Anteraja.
  • The company’s market-leading auto leasing business provides stable revenue and a source of used cars for the auction and online used car business under Caroline.
  • Last-Mile delivery player Anteraja is already the largest revenue contributor and increasing profit driver, with significant upside through automation and scale. Valuations attractive after recent correction at 8.3x FY2022E EV/EBITDA.

M : Time to Harvest

By Pi Research

  • We recommend BUY for M supported by three main reason:1) a strong earnings recovery outlook in 2022-24,2) net cash position with upside from new M&A deal and LCS franchise fees
  • Earnings is expected to turn positive and strongly QoQ improvement in 2Q22 We expect 2Q22 net profit to be at Bt444m (+64%QoQ), recovery from a loss of Bt99m in 2Q21
  • Rising food costs are manageable   Most of costs are raw material costs and the major portion of food cost are pork and poultry.

Smartkarma Webinar | Trade Ideas in ASEAN

By Smartkarma Research

For our next Webinar, we are delighted to welcome back Analyst Henry Soediarko, who will go through his latest stock picks in the ASEAN region, and offer his outlook for 2H 2022.

The webinar will be hosted on Wednesday, 20 July 2022, 17:00 SGT/HKT.

Henry Soediarko is a Long & Short Investment Ideas generator for Asian Equities with 10 years of experience in a Hedge fund focused on bottom-up ideas, searching out mispriced ideas and misunderstood investment theses. He provides on-the-ground insights in various Asian markets with a sway towards ASEAN. 


BayCurrent (6532) | Jumping in Ahead of Earnings

By Mark Chadwick

  • The company will report Q1 earnings today. We think they will beat expectations
  • The stock has been a poor performer so far this year, despite profitable growth
  • BayCurrent is THE key beneficiary of Digital Transformation in Japan

Hyundai Motor’s Ioniq 6 – To Take Away More Market Share From Tesla Model 3 Sedan?

By Douglas Kim

  • Hyundai Motor (005380 KS) launched its long-awaited Ioniq 6 on 14 July. This is the first EV sedan by Hyundai Motor.
  • Ioniq 6 could be a big winner for Hyundai Motor. Among all the features of Ioniq 6, the driving range is the biggest improvement versus Ioniq 5. 
  • The combination of attractive price, sleek design, and higher driving range is likely to result in a strong demand for Ioniq 6.

India EV Sector: Electric Cars in Demand, but Limited Options. Tata’s Nexon EV Leads

By Devi Subhakesan

  • Tatas are scripting India’s early journey in electric carsTata Motors Ltd (TTMT IN) accounted for 87% of the 8077 electric cars sold in Q1FY23 (1605 units in Q1FY22).
  • The rapid roll-out of charging infrastructure across the country by Tata Power (TPWR IN) and the success of Tata’s electric car (compact SUV). Tata Nexon EV, are key factors. 
  • Demand and infrastructure for electric cars seem to be in place but market growth is restricted by a lack of choice/adequate supply in the popular price range (<USD 20K).

TISCO : Small but Strong

By Pi Research

  • Maintain BUY for TISCO with a target price of Bt106.00.We like its high dividend payment and solid fundamentals.TISCO’s net profit was 6% better than expected at Bt1.85bn in 2Q22,up 11%YoY
  • Despite lingering competition in the auto hire purchase market, loan growth would likely accelerate in 2H22 given an improvement in the chip shortage in the automotive industry. 
  • Credit costs would likely stay low for the next few years to potentially offset negative impacts from muted fee income from the volatility in the capital market.

Alkem Laboratories Ltd (ALKEM IN): Strong India Business to Drive Future Performance

By Tina Banerjee

  • Alkem Laboratories Ltd (ALKEM IN) earns 71% of total revenue from domestic business, which is the most important growth lever of the company. Domestic business revenue grew 29% in FY22.
  • The company dominates the anti-infective segment, through its mega brands, with a market share of 12.9%. In the chronic segment, Alkem is growing fast to emerge as a significant player.
  • Regular new product launches, including biosimilars, should continue to contribute to Alkem’s growth and fill portfolio gaps. Entry into new therapies would also be an important growth engine, going forward.

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

Sign Up for Free

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

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

Daily Brief ECM: SOCAR Revised Prospectus: Critical Issues Still Not Addressed and more

By | Daily Briefs, ECM

In today’s briefing:

  • SOCAR Revised Prospectus: Critical Issues Still Not Addressed
  • WCP IPO: Valuation Insights

SOCAR Revised Prospectus: Critical Issues Still Not Addressed

By Sanghyun Park

  • There must be a rationale for car sharing to receive a higher valuation than the traditional rental car business. For this, profit per vehicle must be provided, not sales.
  • Also, whether SOCAR can justify its valuation built on the relatively high valuation premiums granted to ccOS and FMS companies is still questionable.
  • Concerning fund flow, it is positive that SOCAR can aim for LG Energy’s six-month lockup release. But it is unclear how much flow will be left for SOCAR after WCP.

WCP IPO: Valuation Insights

By Arun George

  • WCP (WCP KS), a lithium-ion batteries separator company, is planning to launch a KRW900 billion (US$692 million) IPO in August.
  • In WCP IPO: Hooked on Lithium we noted that WCP has attractive fundamentals due to the favourable demand/supply balance, technology, strong revenue growth and improving margins. 
  • In this note, we look at the syndicate’s valuation methodology. Our valuation analysis suggests that the IPO price range is unattractive and we would pass on the IPO.

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

Sign Up for Free

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

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

Daily Brief Crypto: A Quick Review of the Celsius Bankruptcy Filing and more

By | Crypto, Daily Briefs

In today’s briefing:

  • A Quick Review of the Celsius Bankruptcy Filing

A Quick Review of the Celsius Bankruptcy Filing

By Rose Choy

  • Celsius filed for bankruptcy on July 14 and we parse through the filings to shed some light on the lender and its activities.
  • Quick analysis shows that unsecured creditors can get back 60 cents on the dollar.
  • The May “Bank Run” post LUNA crash, asset-liability mismatch and poor market conditions ultimately led the Company to file for bankruptcy. 

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

Sign Up for Free

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

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

Daily Brief Event-Driven: Punters Take A Gamble on Genting Singapore and more

By | Daily Briefs, Event-Driven

In today’s briefing:

  • Punters Take A Gamble on Genting Singapore
  • WISE Theme Indexes Rebalancing: Conformity of Passive Flow to Price Return
  • Genting Singapore in the Crosshairs of Potential Suitors
  • AGL – Down, Not Out. Tight Coal Vs FIDs. And MCB Waiting
  • Shanghai/​​​​​​​​Shenzhen Northbound Connect: Weekly Moves (15 July 2022)
  • Shanghai/​​​​​​​​Shenzhen Southbound Connect: Weekly Moves (15 July 2022)
  • Shaftesbury/Capco: Unattractive Spread
  • ASX200 Index Rebalance: West African Resources (WAF) In; Uniti Group (UWL) Out

Punters Take A Gamble on Genting Singapore

By David Blennerhassett

  • Bloomberg is reporting Genting Singapore (GENS SP) has been attracting suitors, including MGM Resorts International (MGM US).
  • With Macau all-but emulating a Shanghai-style lockdown, including the recent shuttering of all casinos, large global casino operators will be looking to diversify their revenue base. 
  • But with Singapore potentially emerging as Asia’s go-to gaming destination going forward, it’s unlikely the Lim family will exit their Genting flagship.

WISE Theme Indexes Rebalancing: Conformity of Passive Flow to Price Return

By Sanghyun Park

  • The ETF operator (TIGER)’s index tracking conformity was high enough to create trading opportunities aimed at the rebalancing flow.
  • Flow/Price directions were mostly synched with only a few exceptions. Of particular importance is that the price impact was substantial compared to the passive flow size. 
  • The yield of the tradable names suitable for a basket based on the projected passive impact size was 4.51%.

Genting Singapore in the Crosshairs of Potential Suitors

By Arun George

  • Bloomberg reported MGM Resorts International (MGM US) recently approached Genting Singapore (GENS SP)’s controlling shareholder, Genting Bhd (GENT MK), to express an interest in a deal.  
  • While the discussions with MGM Resorts have fizzled out, other potential suitors are reportedly interested. Shares are in a trading halt pending a response to an SGX query.
  • Genting Singapore trades at a discount to peers. Precedent transactions suggest a potential privatisation price of at least S$1.00 per share, a 33% premium to the last close. 

AGL – Down, Not Out. Tight Coal Vs FIDs. And MCB Waiting

By Travis Lundy

  • In the last six weeks, AGL Energy Ltd (AGL AU) has fallen and is now at the low end of its post-Brookfield bid trading range. Now below the A$8.25 bid.
  • AGL has one generator down – the Loy Yang A Unit 2 – which will be back in late Sep. Guidance is left… unguided. There will be a related loss.
  • In the meantime, the rest of the producing assets have probably been having a field day. But given shareholder structure, we’re still in limbo.

Shanghai/​​​​​​​​Shenzhen Northbound Connect: Weekly Moves (15 July 2022)

By David Blennerhassett


Shanghai/​​​​​​​​Shenzhen Southbound Connect: Weekly Moves (15 July 2022)

By David Blennerhassett

  • Inside is a recap of movements in the last week relating to the Shanghai and Shenzhen-Hong Kong Stock Connect facilities, broken down by company and industry.
  • Overall, the net outflow over the past week was ~US$0.56bn, split (-US$0.44bn) for Shanghai and (-US$0.12bn) for Shenzhen.
  • The largest inflows were into Geely Auto (175 HK) and Hang Seng H Share Index ETF (2828 HK). The largest outflow was in Meituan (3690 HK) and CNOOC (883 HK).

Shaftesbury/Capco: Unattractive Spread

By Jesus Rodriguez Aguilar

  • Capco agreed to acquire Shaftesbury in a stock swap reverse takeover transaction (1 SHB LN x 3.356 CAPC LN). Shaftesbury shareholders will own 53% while Capco shareholders will own 47%.
  • The market is not reacting positively to the deal. As per the exchange ratio, the deal implies a transfer of value from Shaftesbury to Capco, in my view.
  • The spread is trading at a 3.4% premium. Although the premium is tightening, I am still unsure many Shaftesbury shareholders would like to accept the offer in its current terms.

ASX200 Index Rebalance: West African Resources (WAF) In; Uniti Group (UWL) Out

By Brian Freitas


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

Sign Up for Free

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

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

Daily Brief Thailand: MK Restaurants Group, Tisco Financial Group and more

By | Daily Briefs, Thailand

In today’s briefing:

  • M : Time to Harvest
  • TISCO : Small but Strong

M : Time to Harvest

By Pi Research

  • We recommend BUY for M supported by three main reason:1) a strong earnings recovery outlook in 2022-24,2) net cash position with upside from new M&A deal and LCS franchise fees
  • Earnings is expected to turn positive and strongly QoQ improvement in 2Q22 We expect 2Q22 net profit to be at Bt444m (+64%QoQ), recovery from a loss of Bt99m in 2Q21
  • Rising food costs are manageable   Most of costs are raw material costs and the major portion of food cost are pork and poultry.

TISCO : Small but Strong

By Pi Research

  • Maintain BUY for TISCO with a target price of Bt106.00.We like its high dividend payment and solid fundamentals.TISCO’s net profit was 6% better than expected at Bt1.85bn in 2Q22,up 11%YoY
  • Despite lingering competition in the auto hire purchase market, loan growth would likely accelerate in 2H22 given an improvement in the chip shortage in the automotive industry. 
  • Credit costs would likely stay low for the next few years to potentially offset negative impacts from muted fee income from the volatility in the capital market.

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

Sign Up for Free

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

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

Daily Brief Australia: AGL Energy Ltd, West African Resources and more

By | Australia, Daily Briefs

In today’s briefing:

  • AGL – Down, Not Out. Tight Coal Vs FIDs. And MCB Waiting
  • ASX200 Index Rebalance: West African Resources (WAF) In; Uniti Group (UWL) Out

AGL – Down, Not Out. Tight Coal Vs FIDs. And MCB Waiting

By Travis Lundy

  • In the last six weeks, AGL Energy Ltd (AGL AU) has fallen and is now at the low end of its post-Brookfield bid trading range. Now below the A$8.25 bid.
  • AGL has one generator down – the Loy Yang A Unit 2 – which will be back in late Sep. Guidance is left… unguided. There will be a related loss.
  • In the meantime, the rest of the producing assets have probably been having a field day. But given shareholder structure, we’re still in limbo.

ASX200 Index Rebalance: West African Resources (WAF) In; Uniti Group (UWL) Out

By Brian Freitas


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

Sign Up for Free

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

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

Daily Brief Singapore: Genting Singapore, Far East Hospitality Trust and more

By | Daily Briefs, Singapore

In today’s briefing:

  • Punters Take A Gamble on Genting Singapore
  • Genting Singapore in the Crosshairs of Potential Suitors
  • Smartkarma Webinar | Trade Ideas in ASEAN

Punters Take A Gamble on Genting Singapore

By David Blennerhassett

  • Bloomberg is reporting Genting Singapore (GENS SP) has been attracting suitors, including MGM Resorts International (MGM US).
  • With Macau all-but emulating a Shanghai-style lockdown, including the recent shuttering of all casinos, large global casino operators will be looking to diversify their revenue base. 
  • But with Singapore potentially emerging as Asia’s go-to gaming destination going forward, it’s unlikely the Lim family will exit their Genting flagship.

Genting Singapore in the Crosshairs of Potential Suitors

By Arun George

  • Bloomberg reported MGM Resorts International (MGM US) recently approached Genting Singapore (GENS SP)’s controlling shareholder, Genting Bhd (GENT MK), to express an interest in a deal.  
  • While the discussions with MGM Resorts have fizzled out, other potential suitors are reportedly interested. Shares are in a trading halt pending a response to an SGX query.
  • Genting Singapore trades at a discount to peers. Precedent transactions suggest a potential privatisation price of at least S$1.00 per share, a 33% premium to the last close. 

Smartkarma Webinar | Trade Ideas in ASEAN

By Smartkarma Research

For our next Webinar, we are delighted to welcome back Analyst Henry Soediarko, who will go through his latest stock picks in the ASEAN region, and offer his outlook for 2H 2022.

The webinar will be hosted on Wednesday, 20 July 2022, 17:00 SGT/HKT.

Henry Soediarko is a Long & Short Investment Ideas generator for Asian Equities with 10 years of experience in a Hedge fund focused on bottom-up ideas, searching out mispriced ideas and misunderstood investment theses. He provides on-the-ground insights in various Asian markets with a sway towards ASEAN. 


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

Sign Up for Free

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

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

Daily Brief South Korea: T’Way Air, Hyundai Motor, SOCAR, WCP and more

By | Daily Briefs, South Korea

In today’s briefing:

  • WISE Theme Indexes Rebalancing: Conformity of Passive Flow to Price Return
  • Hyundai Motor’s Ioniq 6 – To Take Away More Market Share From Tesla Model 3 Sedan?
  • SOCAR Revised Prospectus: Critical Issues Still Not Addressed
  • WCP IPO: Valuation Insights

WISE Theme Indexes Rebalancing: Conformity of Passive Flow to Price Return

By Sanghyun Park

  • The ETF operator (TIGER)’s index tracking conformity was high enough to create trading opportunities aimed at the rebalancing flow.
  • Flow/Price directions were mostly synched with only a few exceptions. Of particular importance is that the price impact was substantial compared to the passive flow size. 
  • The yield of the tradable names suitable for a basket based on the projected passive impact size was 4.51%.

Hyundai Motor’s Ioniq 6 – To Take Away More Market Share From Tesla Model 3 Sedan?

By Douglas Kim

  • Hyundai Motor (005380 KS) launched its long-awaited Ioniq 6 on 14 July. This is the first EV sedan by Hyundai Motor.
  • Ioniq 6 could be a big winner for Hyundai Motor. Among all the features of Ioniq 6, the driving range is the biggest improvement versus Ioniq 5. 
  • The combination of attractive price, sleek design, and higher driving range is likely to result in a strong demand for Ioniq 6.

SOCAR Revised Prospectus: Critical Issues Still Not Addressed

By Sanghyun Park

  • There must be a rationale for car sharing to receive a higher valuation than the traditional rental car business. For this, profit per vehicle must be provided, not sales.
  • Also, whether SOCAR can justify its valuation built on the relatively high valuation premiums granted to ccOS and FMS companies is still questionable.
  • Concerning fund flow, it is positive that SOCAR can aim for LG Energy’s six-month lockup release. But it is unclear how much flow will be left for SOCAR after WCP.

WCP IPO: Valuation Insights

By Arun George

  • WCP (WCP KS), a lithium-ion batteries separator company, is planning to launch a KRW900 billion (US$692 million) IPO in August.
  • In WCP IPO: Hooked on Lithium we noted that WCP has attractive fundamentals due to the favourable demand/supply balance, technology, strong revenue growth and improving margins. 
  • In this note, we look at the syndicate’s valuation methodology. Our valuation analysis suggests that the IPO price range is unattractive and we would pass on the IPO.

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

Sign Up for Free

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

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