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Smartkarma Daily Briefs

Aug 14
0

Daily Brief ESG: Mandatory Disclosure of Gender Wage Differentials Is Still a First Step and more

By | Daily Briefs, ESG

In today’s briefing:

  • Mandatory Disclosure of Gender Wage Differentials Is Still a First Step

Mandatory Disclosure of Gender Wage Differentials Is Still a First Step

By Aki Matsumoto

  • There is the problem that a wage gap exists between men and women even among regular employees, and that the percentage of non-regular workers is very high among women.
  • Issues to be addressed include the creation of a social infrastructure in which workers don’t have to leave jobs due to childbirth or child-rearing, and fair wages for non-regular workers.
  • Mandatory disclosure is an important step. Managers should also think of employees as partners in creating new value, rather than simply as labor, which will help to eliminate this issue.

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Aug 14
0

Daily Brief ECM: ECM Weekly (14th Aug 2022) – China Tourism and more

By | Daily Briefs, ECM

In today’s briefing:

  • ECM Weekly (14th Aug 2022) – China Tourism, A/H Listing, Hongjiu Fruit, Socar, Betagro, ThaiBev, GQG
  • Weekly Deals Digest (14 Aug) – CTG Duty Free, OZ Minerals, Lifestyle Intl., EVOC, MACA, MyDeal

ECM Weekly (14th Aug 2022) – China Tourism, A/H Listing, Hongjiu Fruit, Socar, Betagro, ThaiBev, GQG

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.
  • On the IPO front, China Tourism launched its US$2.5bn IPO. 
  • There were no major placements this week and it likely to remain that way in the near future owing to it being earnings season.

Weekly Deals Digest (14 Aug) – CTG Duty Free, OZ Minerals, Lifestyle Intl., EVOC, MACA, MyDeal

By Arun George

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Aug 14
0

Daily Brief Thematic (Sector/Industry): China Healthcare Weekly (Aug.12)-AI Drug Discovery and more

By | Daily Briefs, Thematic (Sector/Industry)

In today’s briefing:

  • China Healthcare Weekly (Aug.12)-AI Drug Discovery, License-In Mode Valuation, Pet Medical Equipment
  • GEM Weekly (12 Aug 2022): China Inflation, Malaysia GDP; Baidu, Samsung Electronics, Alibaba, Naver

China Healthcare Weekly (Aug.12)-AI Drug Discovery, License-In Mode Valuation, Pet Medical Equipment

By Xinyao (Criss) Wang

  • While AI has had a profound impact in image recognition,there has been little comparable progress in drug discovery, far from the current levels of investment and expectations in this sector.
  • The success of license-in model must be based on the appropriate valuation level. The ultimate parameter to measure a drug company based on license-in model is its cash flow status.
  • Pet medical equipment is not subject to the negative policy impact of centralized procurement. Together with high demand, it is expected to become the second growth curve of enterprises.

GEM Weekly (12 Aug 2022): China Inflation, Malaysia GDP; Baidu, Samsung Electronics, Alibaba, Naver

By Wium Malan, CFA

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Aug 14
0

Daily Brief Crypto: The Sandbox and more

By | Crypto, Daily Briefs

In today’s briefing:

  • The Sandbox

The Sandbox

By Etherbridge

  • Last week we began a Metaverse series, starting with Decentraland. Decentraland was one of the first blockchain-based Metaverses to emerge, but it sure wasn’t the last.
  • We have seen several emerge since it launched, and no other Metaverse has offered it competition quite like The Sandbox.
  • As the Metaverse comes into the mainstream, and we see the competition between centralised and decentralised heat up, it is worth exploring the different approaches and competitors that exist. 

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Aug 14
0

Daily Brief Equity Bottom-Up: Asics (7936) | Strong Performance Meets Reasonable Valuation and more

By | Daily Briefs, Equity Bottom-Up

In today’s briefing:

  • Asics (7936) | Strong Performance Meets Reasonable Valuation
  • Mayne Pharma (MYX AU): CDMO Business Sale- A Step Towards Focus Solely on Specialty Pharma
  • SOBR Safe Inc.: A Unique Technology On The Cusp Of Commercialization
  • Advanced Micro Devices ($AMD)

Asics (7936) | Strong Performance Meets Reasonable Valuation

By Mark Chadwick

  • The stock price has rallied 40% since our last note. We are happy to take profit here, hence we label this insight as Bearish 
  • The results and full year guidance hike were positive but largely currency assisted  
  • We expect that a focus on China and Direct will drive margin expansion in the medium term

Mayne Pharma (MYX AU): CDMO Business Sale- A Step Towards Focus Solely on Specialty Pharma

By Tina Banerjee

  • Mayne Pharma (MYX AU) is selling its U.S.-based CDMO business, Metrics Contract Services for $475 million. The transaction is expected to close by the end of 2022.
  • Allowing for reinvestment needs, the net proceeds from the sale will be used to repay the syndicated debt facility and return surplus capital to shareholders.
  • Combined oral contraceptive Nextstellis remains the company’s most significant commercial opportunity. While Nextstellis was launched in the U.S. in June 2021, Mayne has launched Nextstellis in Australia in July 2022.  

SOBR Safe Inc.: A Unique Technology On The Cusp Of Commercialization

By Ishan Majumdar

  • Alcohol intoxication of employees during work hours is known to result in millions of dollars’ worth of productivity loss as well as many other risks to corporations each year.
  • Given this background, SOBR Safe (NASDAQ:SOBR) has a highly relevant technological solution that can help mitigate and minimize the these risks.
  • The company has a particularly large addressable market as it helps employers carry out the alcohol intoxication monitoring of workers with the help of its preventive detection technology platform.

Advanced Micro Devices ($AMD)

By MT Capital

  • Today I will be completing an in-depth analysis on AMD .
  • Within, I will break down the multitude of opportunities the company has in front of it and provide a succinct overview of the company’s vast technology portfolio.
  • Additionally, I will spend time discussing how the company is eating Intel’s lunch, dig deeper into their financials, and discuss some positive and risk-based factors alike that I am considering with respect to the company. 

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Aug 14
0

Daily Brief Macro: Strong Labour Market Challenges Fed and more

By | Daily Briefs, Macro

In today’s briefing:

  • Strong Labour Market Challenges Fed, as Risk Capital Outlook Rests on Rapid Inflation Decline

Strong Labour Market Challenges Fed, as Risk Capital Outlook Rests on Rapid Inflation Decline

By Said Desaque

  • The strong Employment Situation report for July has raised the ante on the Fed not to pivot to a more dovish stance in the near future.
  • The current size of the 10-year minus 2-year US Treasury note yield differential has historically been consistent with the pending onset of recession. 
  • Sticky inflation could prevent the speedy return of risk capital to US financial markets by preventing the Fed from adopting more dovish policy settings. 

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Aug 14
0

Daily Brief Event-Driven: Index Rebalance & ETF Flow Recap: MSCI and more

By | Daily Briefs, Event-Driven

In today’s briefing:

  • Index Rebalance & ETF Flow Recap: MSCI, S&P Global Water, TW Div+, FTSE JP, STI, OZ Minerals
  • Last Week in Event SPACE: Softbank, OZ Minerals, Lifestyle, Nexon, Magic Empire, Swire Pacific
  • Predicting Inclusion at MSCI Korea November IR: Hyundai Mipo Dockyard
  • (Mostly) Asia-Pac Weekly Risk Arb Wrap: Oz Minerals, Lifestyle, EVOC Tech, Shinoken, DTAC/True
  • POSCO Holdings Stock Cancellation: Tiggering a 5%p Float Change for FnGuide Top 10 ETF

Index Rebalance & ETF Flow Recap: MSCI, S&P Global Water, TW Div+, FTSE JP, STI, OZ Minerals

By Brian Freitas

Last Week in Event SPACE: Softbank, OZ Minerals, Lifestyle, Nexon, Magic Empire, Swire Pacific

By David Blennerhassett

  • BHP launched a bid for OZ Minerals (OZL AU). OZ has rejected it as being too low. BHP said the Offer provides certainty of funding growth. They are both right
  • This Offer price for Lifestyle International Holdings (1212 HK) is probably sufficient to get up. It has been declared final for that reason. Optically $6/share was a more reasonable level.
  • Nexon (3659 JP) announced another ¥100bn buyback over three years. However, the buyback is too small to pay back the Kim family inheritance tax obligations. 

Predicting Inclusion at MSCI Korea November IR: Hyundai Mipo Dockyard

By Sanghyun Park

  • The MSCI’s November IR will hardly see any new addition from Outside IMI. Additions will mostly come from Small Cap→Standard migration.
  • There are 12 candidates for Small Cap→Standard migration. They are all beating the float market cap hurdle. However, only Hyundai Mipo satisfies the full market cap requirement.
  • At the current market cap, Hyundai Mipo will likely cause passive inflows equivalent to 5.89x ADTV, equal to US$160M or 1.9M shares.

(Mostly) Asia-Pac Weekly Risk Arb Wrap: Oz Minerals, Lifestyle, EVOC Tech, Shinoken, DTAC/True

By David Blennerhassett

POSCO Holdings Stock Cancellation: Tiggering a 5%p Float Change for FnGuide Top 10 ETF

By Sanghyun Park

  • POSCO Holdings announced it would cancel ₩567B worth of 2.6M treasury shares last Friday. It represents 3% of the shares outstanding, reducing the treasury shares from 13% to 10%.
  • With this cancellation, the float change reaches 5%p, triggering an adjustment from 68% to 73% in the upcoming cycle, just in time for the FnGuide Top 10’s December rebalancing.
  • As a result, POSCO Holdings suddenly becomes a strong contender to beat KB Financial in the FnGuide Top 10 rebalancing as they will be in a very tight race.

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Aug 14
0

Most Read: Softbank Group, Alibaba (ADR), Kasikornbank PCL, Guangdong Investment, Hong Kong Hang Seng Index, Posco International Corporation, Dollar Index, Samsung Electronics, Evergreen Marine Corp, Mayne Pharma and more

By | Daily Briefs, Most Read

In today’s briefing:

  • Softbank Confirms BABA Selldown – Big Changes on Softie’s Balance Sheet and BABA Index Implications
  • Alibaba to Pursue Dual Primary Listing in HK – Impact on Stock Connect, Indices, Etc
  • MSCI August 2022 Index Rebalance: The Last QIR Throws Up One Big Surprise
  • S&P Global Water Index: Market Consultation Driven Potential Changes
  • HFCAA, AHFCAA, China ADRs & FTSE Index Treatment: Speeding Up The Process & Implications
  • Posco International Merger: Deal Structure & Arbitrage Dynamics
  • U.S. Dollar Topping?; Bullish Reversals Continue; Ideas in Growth/Cyclicals, Financials
  • Samsung’s Lee Jae-Yong Receives Pardon & Get Out of Jail Card: A Signal of Major M&As by Samsung?
  • Index Rebalance & ETF Flow Recap: MSCI, S&P Global Water, TW Div+, FTSE JP, STI, OZ Minerals
  • Mayne Pharma (MYX AU): CDMO Business Sale- A Step Towards Focus Solely on Specialty Pharma

Softbank Confirms BABA Selldown – Big Changes on Softie’s Balance Sheet and BABA Index Implications

By Travis Lundy

  • Softbank today confirmed that the stories circulating about Softbank having hedged a decent portion – 200+mm shares – of its BABA position were true. 
  • The market expectation had been that these pre-paid forwards would be held for another two years. The announcement today is that they will be physically settled early. 
  • This means the entire accounting effect – worth ¥4.6trln – will hit the income statement (and balance sheet) in the current quarter. There are investment and index implications

Alibaba to Pursue Dual Primary Listing in HK – Impact on Stock Connect, Indices, Etc

By Travis Lundy

  • This morning – 26 July – Alibaba (ADR) (BABA US) / Alibaba Group (9988 HK) issued an announcement it would pursue a primary listing on the HKEX.
  • When Alibaba listed in NY, it was on ADRs. When it listed in HK, it was the shares underlying the ADRs but it was a quickie secondary listing.
  • It will now seek a dual primary listing as others have. This will make BABA Southbound-eligible and will slightly improve BABA’s HSI funding trade prospects in future. 

MSCI August 2022 Index Rebalance: The Last QIR Throws Up One Big Surprise

By Brian Freitas

  • As announced, there are 8 adds and 3 deletes for the MSCI Standard indices in Asia Pacific. To trade, there are 8 adds and 2 deletes.
  • Most of the changes are inline with what we forecast. The non-inclusion of Gcl Poly Energy Holdings Limited (3800 HK) is the big surprise, though that could change.
  • All the adds in China are potential inclusions to the FTSE All-World Index in September and that will add to the passive inflows on the stocks.

S&P Global Water Index: Market Consultation Driven Potential Changes

By Brian Freitas

  • S&P DJI commenced a market consultation for the S&P Global Water Index on 29 July and that could lead to quite a few changes to the index in October.
  • We currently see 14 deletions and 10 inclusions for the index in October. Most of the changes will have a high impact from passive fund trading.
  • There could be more changes in April 2023 once stocks listed in Emerging Markets are included in the index.

HFCAA, AHFCAA, China ADRs & FTSE Index Treatment: Speeding Up The Process & Implications

By Brian Freitas

  • The Holding Foreign Companies Accountable Act (HFCAA) could result in China ADRs being delisted in 2024. The Accelerated HFCAA, if passed, will bring that date ahead to 2023.
  • FTSE has announced its implementation plan to migrate the China ADRs in its indices to the local listings using an accelerated schedule.
  • Expect a lot more secondary listings/ dual primary listing in Hong Kong over the next few months. The increase free float market cap could keep a lid on prices.

Posco International Merger: Deal Structure & Arbitrage Dynamics

By Sanghyun Park

  • We still have the chance to become eligible. We will still receive the rights if we buy Posco International next Tuesday. But we will exercise them at ₩20,590, NOT ₩27,801.
  • Given that there is little cancellation risk, we can capitalize on the price falling below the appraisal price by opening both Long and Short at the same price.
  • We close Short if the price goes under ₩20,590 and fix the arb spread by exercising the rights with Long.

U.S. Dollar Topping?; Bullish Reversals Continue; Ideas in Growth/Cyclicals, Financials

By Joe Jasper

  • This is now the third Int’l Compass/third week in a row where we are discussing an increasing number of country indexes experiencing bullish 3.5-9-month downtrend reversals.
  • Importantly, all of the previously mentioned indexes are holding above their breakout levels (i.e., there has yet to be any failed breakouts).
  • Now, the U.S. dollar (DXY) is starting to show early signs of topping. We continue to believe that global equities are going through a bottoming process.

Samsung’s Lee Jae-Yong Receives Pardon & Get Out of Jail Card: A Signal of Major M&As by Samsung?

By Douglas Kim

  • On 12 August, the South Korean government finally gave a presidential pardon to Samsung’s heir Lee Jae-Yong.
  • With Lee Jae-Yong given the presidential pardon, there is an increasing likelihood that the Samsung Group could become more aggressive in making major global M&As in the next several years.
  • Three major M&As that Samsung could make in the next several years include ARM, Infineon, and NXP Semiconductor. 

Index Rebalance & ETF Flow Recap: MSCI, S&P Global Water, TW Div+, FTSE JP, STI, OZ Minerals

By Brian Freitas

Mayne Pharma (MYX AU): CDMO Business Sale- A Step Towards Focus Solely on Specialty Pharma

By Tina Banerjee

  • Mayne Pharma (MYX AU) is selling its U.S.-based CDMO business, Metrics Contract Services for $475 million. The transaction is expected to close by the end of 2022.
  • Allowing for reinvestment needs, the net proceeds from the sale will be used to repay the syndicated debt facility and return surplus capital to shareholders.
  • Combined oral contraceptive Nextstellis remains the company’s most significant commercial opportunity. While Nextstellis was launched in the U.S. in June 2021, Mayne has launched Nextstellis in Australia in July 2022.  

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Aug 14
0

Daily Brief China: China Tourism Group Duty Free Corp Ltd and more

By | China, Daily Briefs

In today’s briefing:

  • ECM Weekly (14th Aug 2022) – China Tourism, A/H Listing, Hongjiu Fruit, Socar, Betagro, ThaiBev, GQG
  • Weekly Deals Digest (14 Aug) – CTG Duty Free, OZ Minerals, Lifestyle Intl., EVOC, MACA, MyDeal

ECM Weekly (14th Aug 2022) – China Tourism, A/H Listing, Hongjiu Fruit, Socar, Betagro, ThaiBev, GQG

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.
  • On the IPO front, China Tourism launched its US$2.5bn IPO. 
  • There were no major placements this week and it likely to remain that way in the near future owing to it being earnings season.

Weekly Deals Digest (14 Aug) – CTG Duty Free, OZ Minerals, Lifestyle Intl., EVOC, MACA, MyDeal

By Arun George

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Aug 14
0

Daily Brief Australia: Mayne Pharma, OZ Minerals Ltd and more

By | Australia, Daily Briefs

In today’s briefing:

  • Mayne Pharma (MYX AU): CDMO Business Sale- A Step Towards Focus Solely on Specialty Pharma
  • (Mostly) Asia-Pac Weekly Risk Arb Wrap: Oz Minerals, Lifestyle, EVOC Tech, Shinoken, DTAC/True

Mayne Pharma (MYX AU): CDMO Business Sale- A Step Towards Focus Solely on Specialty Pharma

By Tina Banerjee

  • Mayne Pharma (MYX AU) is selling its U.S.-based CDMO business, Metrics Contract Services for $475 million. The transaction is expected to close by the end of 2022.
  • Allowing for reinvestment needs, the net proceeds from the sale will be used to repay the syndicated debt facility and return surplus capital to shareholders.
  • Combined oral contraceptive Nextstellis remains the company’s most significant commercial opportunity. While Nextstellis was launched in the U.S. in June 2021, Mayne has launched Nextstellis in Australia in July 2022.  

(Mostly) Asia-Pac Weekly Risk Arb Wrap: Oz Minerals, Lifestyle, EVOC Tech, Shinoken, DTAC/True

By David Blennerhassett

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