Smartkarma Daily Briefs

We currently see one change each for the ASX20 and ASX100 indices, 4 changes for the S&P/ASX 200 and 10 adds/ 6 deletes for the ASX300 Index in March.
There could be an addition to the S&P/ASX 200 (AS51 INDEX) in January following Pendal Group (PDL AU)‘s acquisition by Perpetual Ltd (PPT AU).
PEXA Group (PXA AU) is a potential inclusion to the S&P/ASX 200 (AS51 INDEX) if Link Administration (LNK AU)‘s in-specie distribution of PEXA shares to its shareholders is approved.

MVIS Australia A-REITs Index Rebalance: Cromwell Property (CMW) Is a Deletion

Cromwell Property (CMW AU) is a deletion from the MVIS Australia A-REITS Index at the close on 16 December.
Passive trackers will need to sell 13.9m shares (5 days ADV) of Cromwell Property (CMW AU) and there appears to be little to no pre-positioning on the stock.
There are a few other stocks that will have over 0.5 days of ADV to buy from passive trackers.

KFin Technologies Pre-IPO – Large Domestic Player Continues to Get Larger

By Clarence Chu

KFin Technologies (1804170D IN) is looking to raise around US$300m in its India IPO.
KFin Technology (KFin) is a technology driven financial services platform providing comprehensive services and solutions to the capital markets ecosystem.
Under its offering, it primarily serves asset managers and corporate issuers domestically, while providing investor solutions for mutual funds and private retirement schemes in other regions.

Morning Views Asia: Yuexiu Property

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.

Yuexiu Property

Line Parent’s VC Firm Leads $2.3m Funding for Korean ETF Startup

By Tech in Asia

Akros Technologies, a South Korea-based fintech firm, has raised US$2.3 million in a strategic funding round.
The fundraise was led by ZVC – the investment arm of Line Corporation parent Z Holdings.
Founded last year, Akros Technologies manages its own exchange-traded funds (ETFs) powered by machine learning models.

💡 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

Dec 14

Daily Brief Consumer: Haidilao, Endeavour Group, Sula Vineyards, Seven & I Holdings, Xtep International, Weilong Delicious Global and more

By Smartkarma Daily Briefs | Consumer, Daily Briefs

In today’s briefing:

Haidilao’s Imminent SpinOff of the Super Hi Overseas Business – Index Treatment and Implications
Endeavour Group Placement – Recent Momentum Has Been Very Weak
Sula Vineyards IPO: Forensic Analysis
2021 & 2022 High Conviction Review: Time’s Up For Seven & I But Japan Tobacco Has More Room to Run
Long-Term Growth Intact: Xtep
Weilong Delicious Global IPO Trading – Liked by Retail but Still at a Premium

Haidilao’s Imminent SpinOff of the Super Hi Overseas Business – Index Treatment and Implications

By Travis Lundy

On 11 July, Haidilao (6862 HK) announced it would propose to spin off its international restaurant business (13-15% of revenue) to shareholders and employees. Shareholders approved in August.
There were interim announcements and indeed interim reports with some information, but not a lot. But Super Hi International Holding was headed for separate listing in HK.
Last week, Haidilao said it was going ahead with a Listing by Introduction pending listing approval by HKEX. Haidilao shares go ex- 16 December. Index providers have announced treatment.

Endeavour Group Placement – Recent Momentum Has Been Very Weak

Woolworths Ltd (WOW AU) plans to raise around US$438m via selling 5.5% of Endeavour Group (EDV AU).
Endeavour Group was demerged from Woolworths in Jun 2021 and it runs the drinks and hospitality business of Woolworths.
In this note, we will talk about the deal dynamics and run the deal through our ECM framework.

Sula Vineyards IPO: Forensic Analysis

By Nitin Mangal

Sula Vineyards (1332009D IN) has currently come up with its IPO. The ~INR 9.6 bn IPO comprises offer for sale and has a price band of INR 340-357 per share.
The company is a market leader with a market share crossing 50% in a relatively nascent INR 13.45 bn domestic 100% grape wine market.
Key forensic takeaways that one should consider is high litigation liabilities, emphasis on related party transactions, irrational dividends and absurd trend of line items.

2021 & 2022 High Conviction Review: Time’s Up For Seven & I But Japan Tobacco Has More Room to Run

By Oshadhi Kumarasiri

As the year draws to a close, we took time to assess the effectiveness of our high-conviction calls made during the past two years.
With further dividend hikes looking increasingly possible, our 2022 high-conviction call, Japan Tobacco (2914 JP) has more room to run this year.
However, it’s probably the right time to take profits from our 2021 high-conviction trade, Seven & I Holdings (3382 JP) as the US gas-stations profitability maxed-out in the last quarter.

Long-Term Growth Intact: Xtep

By Xin Yu, CFA

4Q22 retail sales was negatively affected by the covid restrictions
Sales growth is expected to recover in 1Q23 with China’s nationwide loosening policy.
Long term growth is intact with continued upgrades of brands, products and channels

Weilong Delicious Global IPO Trading – Liked by Retail but Still at a Premium

Weilong Delicious Global (WDG), a spicy snack food company in China, raised around US$130m in its Hong Kong IPO.
According to F&S, WDG ranked first among spicy snack food enterprises in China, with a market share of 6.2%, and in the seasoned flour product and spicy vegetable snacks categories.
We have covered various aspects of the deal in our previous notes. In this note we will talk about the demand and trading dynamics.

💡 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

Dec 14

Daily Brief Health Care: Acotec Scientific Holdings, Intuitive Surgical, GlaxoSmithKline PLC and more

By Smartkarma Daily Briefs | Daily Briefs, Healthcare

In today’s briefing:

Acotec Scientific Holdings (6669.HK) – Logic Behind Boston Scientific’s Partial Offer and the Impact
Intuitive Surgical Inc.: Initiation of Coverage – Recent Approvals & Other Drivers
GlaxoSmithKline ADR: Initiation of Coverage – Business Strategy & Other Drivers

Acotec Scientific Holdings (6669.HK) – Logic Behind Boston Scientific’s Partial Offer and the Impact

By Xinyao (Criss) Wang

Boston Scientific angles for majority stake with US$523 million for Acotec Scientific Holdings (6669HK), which is the largest acquisition of a Chinese medical device company by a MNC since 2014.
Completion of the Partial Offer would further strengthen Boston Scientific’s presence in China and create the potential for commercialization of Acotec products globally. It’s a win-win deal for both sides.
Companies listed in HKEX don’t have to seek valuation within HKEX system. If they can find “new anchor points”, they’ll have higher valuation.Chapter 18A companies’ future stock prices would diverge.

Intuitive Surgical Inc.: Initiation of Coverage – Recent Approvals & Other Drivers

This is our first report on Intuitive Surgical, one of the largest players in robotic surgery offerings across the globe.
Korean growth remained steady, while Japanese procedure growth quickened compared to Q2.
We initiate coverage on the stock of Intuitive Surgical with a ‘Hold’ rating.

GlaxoSmithKline ADR: Initiation of Coverage – Business Strategy & Other Drivers

This is our first report on GlaxoSmithKline (GSK), one of the largest pharmaceutical companies in the world.
The company is making a significant performance in both operating performance and R&D productivity.
GSK continued disciplined cost control by prioritizing investments in the growth for supporting launches in Vaccines and Specialty Medicines, namely Shingrix.

💡 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

Dec 13

Daily Brief ESG: Is Effective Reform Only Possible After Future Problems with High-Risk Companies? and more

By Smartkarma Daily Briefs | Daily Briefs, ESG

In today’s briefing:

Is Effective Reform Only Possible After Future Problems with High-Risk Companies?

Is Effective Reform Only Possible After Future Problems with High-Risk Companies?

By Aki Matsumoto

Large audit firms focus on more profitable business and improving the profitability of their audit services. Consequently, high-risk firms that have been withdrawn from large firms flow to small-and-medium-sized firms.
“Enhancement of governance, including third-party evaluation function” is crucial to ensure that the audit firm has system to oversee and objectively determine the appropriateness of audit process and audit opinion.
Smaller audit firms will comply with the guidelines just for show, but only when future problems with high-risk firms arise will effective reforms be made in accordance with the guidelines.

💡 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

Dec 13

Daily Brief Crypto: Terra Collapse Returns to the Spotlight and more

By Smartkarma Daily Briefs | Crypto, Daily Briefs

In today’s briefing:

Terra Collapse Returns to the Spotlight

Terra Collapse Returns to the Spotlight

By Kaiko

Price Movements: BTC’s correlation with BNB has dropped significantly since FTX’s collapse, a sign that Binance’s token is diverging from wider markets.
Market Liquidity: Curve, the DEX optimized for stablecoin swaps, is still mostly used by whale traders.
Derivatives: Tron futures skew bearish after the network’s native stablecoin, USDD, depegged to $.97.

💡 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

Dec 13

Daily Brief Credit: IDEX Corporation: Detailed Credit Analysis & Financial Strength Evaluation Report and more

By Smartkarma Daily Briefs | Credit, Daily Briefs

In today’s briefing:

IDEX Corporation: Detailed Credit Analysis & Financial Strength Evaluation Report
Morning Views Asia: China Vanke, Greenko Energy Holdings, Powerlong Commercial Management Holdings
AutoZone Inc.: Detailed Credit Analysis & Financial Strength Evaluation Report
Newmont Corporation: Detailed Credit Analysis & Financial Strength Evaluation Report

IDEX Corporation: Detailed Credit Analysis & Financial Strength Evaluation Report

IDEX Corporation is an industrial giant and is often in the news for its acquisition-led growth moves.
The company’s recent financial performance has been strong with double-digit growth in organic sales across its three segments: Fluid & Metering Technologies, Health & Science Technologies, and Fire & Safety/Diversified Products.
IDEX’s overall backlog positions remain strong though its operating margin has negatively impacted by incremental depreciation from recent acquisitions.

Morning Views Asia: China Vanke, Greenko Energy Holdings, Powerlong Commercial Management Holdings

By Charles Macgregor

China Vanke
Greenko Energy Holdings
Powerlong Commercial Management Holdings
Tata Motors ADR
Yuzhou Group

AutoZone Inc.: Detailed Credit Analysis & Financial Strength Evaluation Report

AutoZone is one of the largest players in the distribution of automotive replacement parts and accessories in the U.S.
The company has been delivering a decent set of results in recent times after the impact of the pandemic has gone down.
However, its domestic, commercial sales make up 30% of its domestic auto parts sales.

Newmont Corporation: Detailed Credit Analysis & Financial Strength Evaluation Report

Newmont Corporation is among the global leaders in the exploration and production of gold.
They are also stepping up development operations in Subika Underground and achieved record production drill meters while advancing the mine’s third production level’s development.
The arrival of a second underground production drill might help deliver the fourth quarter’s anticipated development and the ensuing ore tonnes in 2023.

💡 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

Dec 13

Daily Brief Thematic (Sector/Industry): Post Card from Dhaka – A Primer on the Bangladesh Market and more

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

In today’s briefing:

Post Card from Dhaka – A Primer on the Bangladesh Market
Japan’s Retailers, Hotels, Carriers Rejoice: Domestic Tourism Surges and Inbound Traffic Rises
Good Morning Japan |Positive Start Ahead of Fed/CPI; Energy Gets a Break
China E-Commerce 2023: Fortunes Unlikely To Change With China Moving To a State-Dominated Economy

Post Card from Dhaka – A Primer on the Bangladesh Market

By Pranav Bhavsar

Bangladesh is the eighth-most populous country in the world and is the second-largest economy in South Asia after India making it a consumer market that warrants close attention.
India – Bangladesh FTA promises to accelerate trade, but we find little excitement on the ground.
For an EM Investor, it may be a bit too adventurous to venture into this frontier market plagued with political dynamics and governance risks which are too large to ignore.

Japan’s Retailers, Hotels, Carriers Rejoice: Domestic Tourism Surges and Inbound Traffic Rises

By Michael Causton

The long awaited lifting of restrictions on inbound tourists in October seems to have given new confidence to domestic tourists too.
Major airlines, hotels and railways are all reporting a significant uplift in bookings with several forecasting that figures will exceed 2019 by March next year.
Retailers have benefitted too, notably department stores and lifestyle retailers. Now all Japan needs is for Chinese tourists to be allowed out.

Good Morning Japan |Positive Start Ahead of Fed/CPI; Energy Gets a Break

By Mark Chadwick

OVERSEAS: SPX +1.4% ahead of Fed/CPI; Energy and Tech lead with Industrials; Boeing +3.8% poised for massive Air India order; GS restructures its Consumer Banking biz
JAPAN: Nikkei Futures point +0.6% vs Cash; Yen weakens to ¥137.6; Govt clarifiies NISA expansiion-positive flows to stock mkt; Nov Beer sales weak; Mach Tool order in Nov -7.8%YoY
DAILY NUGGET: We are bullish IHI(7013) on the acceleration of Boeing’s orders but highlight some industry risks coming out of Europe to short-haul flights.

China E-Commerce 2023: Fortunes Unlikely To Change With China Moving To a State-Dominated Economy

By Oshadhi Kumarasiri

Chinese e-commerce companies have underperformed in the last couple of years with immense regulatory-pressure. Although, there’s been a resurgence lately, we are not expecting a complete change of fortunes next-year.
Regulatory crackdowns have already had their stab at curtailing Chinese e-commerce valuations but the effects of Common Prosperity and a State-Dominated-Economy will continue to impact the industry over-medium-long term.
Meanwhile, the Chinese economy looks fragile with high unemployment among youths and many local governments on the brink of bankruptcy.

💡 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

Dec 13

Daily Brief ECM: 2023 IPOs Pipeline Worldwide (Top 100 Companies) and more

By Smartkarma Daily Briefs | Daily Briefs, ECM

In today’s briefing:

2023 IPOs Pipeline Worldwide (Top 100 Companies)
Sula Vineyards IPO – Does Offer a Unique Exposure with Lots of Ifs and Buts
Bionote: IPO Price Reduced Significantly & Bookbuilding Results
Vinfast Auto IPO: Initial Thoughts
Skymark Airlines IPO Trading – Subscription Has Been Strong Despite Asking More than Peers
Daiei Kankyo IPO Trading – Peers Have Been Correcting

2023 IPOs Pipeline Worldwide (Top 100 Companies)

By Douglas Kim

This is our fourth annual edition of the IPOs Pipeline Worldwide (Top 100 Companies) report.
Among 100 companies in our list, those from the US, India, China/HK, and the UK account for 79% of total.
For those investors that closely monitor the global IPO opportunities, this is a good reference insight to check out the largest potential IPOs that could get completed next year.

Sula Vineyards IPO – Does Offer a Unique Exposure with Lots of Ifs and Buts

By Shifara Samsudeen, ACMA, CGMA

Sula Vineyards is looking to raise around US$117m in its upcoming India IPO.
Sula Vineyards (SV) distributes wines under a bouquet of brands. In addition to its flagship brand “Sula,” popular brands include “RASA,” “Dindori”, “The source,” “Satori”, “Madera” & “Dia”.
We have looked at various aspects of the deal in our previous notes. In this note, we will talk about recent updates and valuations.

Bionote: IPO Price Reduced Significantly & Bookbuilding Results

By Douglas Kim

Bionote slashed its IPO price to 9,000 won, which is 50% lower than the low end of the previous IPO valuation range.
Our base case valuation has been revised down to 12,741 won per share in target price, which is 41% higher than the IPO price of 9,000 won.
The company is expected to have more than 615 billion in net cash post the IPO, which is expected to represent nearly 65% of its market cap!

Vinfast Auto IPO: Initial Thoughts

VinFast (1905332D VN) is a full-scale mobility platform in Vietnam focused on manufacturing electric vehicles including e-scooters and e-buses looking to raise US$1bn via a NASDAQ IPO.
The company has switched its business model from ICE vehicles to EVs and looking to sell its electric cars in Vietnam, the US and the Europe.
With relatively new to EV manufacturing and having not sold previously in overseas markets including the US and the EU, we remain conscious over Vinfast’s prospects in the medium-term.

Skymark Airlines IPO Trading – Subscription Has Been Strong Despite Asking More than Peers

By Clarence Chu

Skymark Airlines (9204 JP) raised US$242m in its Japan IPO. Skymark Airlines (SA) is a Japanese low-cost airline, being the third largest domestic airline according to the company.
SA began its operations in Japan as a domestic airline and gradually increased the number of routes offered to passengers. However, it has a mired history of bankruptcy.
In our previous notes, we looked at the company’s past performance and talked about valuations. In this note, we’ll talk about the trading dynamics.

Daiei Kankyo IPO Trading – Peers Have Been Correcting

Daiei Kankyo (9336 JP) , a waste management company, raised around US$314m in its Japan IPO.
Daiei Kankyo is involved in the waste management and related businesses in Japan. The core of its operations consists of its waste management and recycling business
In our previous notes, we looked at the company’s past performance and talked about valuations. In this note, we’ll talk about the trading dynamics.

💡 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

Dec 13

Daily Brief Event-Driven: HSCEI: Index Handling Changes for Secondary & Dual-Primary Listings and more

By Smartkarma Daily Briefs | Daily Briefs, Event-Driven

In today’s briefing:

HSCEI: Index Handling Changes for Secondary & Dual-Primary Listings
Acotec Scientific Holdings: Boston Scientific’s Partial Offer
Acotec Scientific (6669 HK)’s Partial Offer of HK$20 from Boston Scientific
HSTECH: Index Handling Changes & Flows in March
Genesis Minerals (GMD AU) And St Barbara (SBM AU) Merger
Home Consortium (HMC AU) FTSE EPRA Index Deletion – Underperforming but STILL Expensive
St Barbara’s Reverse Merger Of Genesis
Dongkuk Steel Mill: Demerger Details & Passive Outflow Trading

HSCEI: Index Handling Changes for Secondary & Dual-Primary Listings

Hang Seng Indexes has changed the index handling treatment for Secondary Listings and Dual Primary Listings from the next rebalance in March.
The changes could lead to an increase in the index weighting for Li Auto (2015 HK) and the inclusion of XPeng (9868 HK) at the March rebalance.
The improved rankings for the Secondary and Dual Primary listings will lead to other changes to the index in March.

Acotec Scientific Holdings: Boston Scientific’s Partial Offer

By David Blennerhassett

Acotec Scientific Holdings (6669 HK), a Chinese medical technology company, has announced a Partial Offer from Boston Scientific (BSX US).
The Offer Price for up to 65% of shares out is HK20/share, a 31.6% premium to last close, but below last year’s IPO price of HK$23.80/share.
Irrevocables who intend to tender a total of up to 60.14% of shares out. This includes the CEO and the key pre-IPO investor.

Acotec Scientific (6669 HK)’s Partial Offer of HK$20 from Boston Scientific

By Arun George

Acotec Scientific Holdings (6669 HK) disclosed a partial offer from Boston Scientific (BSX US) to acquire a maximum of 203.7 million shares at HK$20 per share.
The partial offer is conditional on the offeror hitting 50.01% voting rights and approval by the requisite majority of shareholders. Irrevocables represent a minimum of 55.14% of outstanding shares.
Despite the recent share price pop on the back of FDA approval for Vericor, the partial offer represents an all-time share price high. Therefore, the offer will be declared unconditional.

HSTECH: Index Handling Changes & Flows in March

Hang Seng Indexes has changed the index handling treatment for Secondary Listings and Dual Primary Listings from the next rebalance in March.
The change could result in Tencent Music Entertainment Group (1698 HK) replacing Ming Yuan Cloud Group (909 HK) in the index.
There could be passive buying on Li Auto (2015 HK) and XPeng (9868 HK) due to an increase in the index shares with outflows on other index constituents.

Genesis Minerals (GMD AU) And St Barbara (SBM AU) Merger

By Arun George

St Barbara Ltd (SBM AU) and Genesis Minerals (GMD AU) will merge via a scheme at a gross exchange ratio of 2.0338 SBM shares per GMD share.
The deal metrics are favourable for GMD shareholders. The gross exchange ratio is attractive and values GMD at a slight premium to mid-cap ASX peers on an EV/Resource basis.
The likely pushback from SMB shareholders is that the terms were struck from a position of share price weakness. However, the low SMB shareholder voting threshold (50%) will help.

Home Consortium (HMC AU) FTSE EPRA Index Deletion – Underperforming but STILL Expensive

By Travis Lundy

Home Consortium Ltd (HMC AU) is a Super Stapled Security, having developed HomeCo Daily Needs REIT (HDN AU), overseen the Aventus Group (AVN AU) merger, IPOed HealthCo REIT (HCW AU).
The current market cap is 1.6x book and probably closer to 2x tangible book as a large “management and development capability premium” is baked in.
There is a FTSE EPRA Nareit index deletion on Friday. That could prompt further underperformance.

St Barbara’s Reverse Merger Of Genesis

By David Blennerhassett

Gold miners St Barbara Ltd (SBM AU) and Genesis Minerals (GMD AU) have agreed to merge via a Scheme. Inter-conditionally, SBM will demerge Atlantic, Simberi, and other assets.
SBM will issue 2.0338 of its own shares for each GMD share. Conditional on the Scheme and asset demerger, Genesis will raise $275m to fund the merged entity.
At completion, SBM shareholders will hold 38% in the combined group, current Genesis shareholders 41%, with the remaining 22% held by participants in the capital raising.

Dongkuk Steel Mill: Demerger Details & Passive Outflow Trading

By Sanghyun Park

The size of treasury shares in the Dongkuk Steel demerger event is not too large to expect a value accretion to the combined market cap after the split.
Based on the current market cap, all three companies will likely leave the KOSPI 200. To this end, K200 trackers must dispose of Dongkuk Steel right before the trade suspension.
The size of rebalancing trading before trade suspension should be about ₩40T. We should consider setting our entry into flow trading as early as two weeks towards the trade suspension.

💡 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

Dec 13

Daily Brief Equity Bottom-Up: BILIBILI (BILI US): Can Achieving Breakeven Justify US$10bn Market Cap? and more

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

In today’s briefing:

BILIBILI (BILI US): Can Achieving Breakeven Justify US$10bn Market Cap?
IHI (7013) | Boeing Orders Take Off
China Internet Weekly (12Dec2022): Bilibili, Tencent, JD.com
Akeso Biopharma (9926.HK) – Behind the Deal with Summit: A Snake Swallows an Elephant?
Humana Inc.: Initiation of Coverage – Expansion Of CenterWell & Other Drivers
AutoZone Inc.: Initiation of Coverage – Business Model & Key Drivers
Getaround This SPAC Deal
IDEX Corporation: Initiation of Coverage – & Other Drivers
Newmont Corporation: Initiation of Coverage – Macro For Gold Mining & Other Drivers
Sporting Crypto – Dec 12th: Starbucks Launch Web3 Loyalty Program; Odyssey

BILIBILI (BILI US): Can Achieving Breakeven Justify US$10bn Market Cap?

By Eric Chen

BILIBILI shares have rallied more than 200% since early November on prospects of China exiting zero-COVID, short covering, and accelerated breakeven timeline.
Yet simply achieving breakeven doesn’t justify its US$10 billion valuation. It has to be accompanied by decent profitable growth – an unlikely scenario given the aggressive downsizing needed for breakeven.
BILI’s businesses also entail structurally low margin. Stock could easily de-rate by 30% or more when growth euphoria recedes and disappointed profitability checks in during 2023.

IHI (7013) | Boeing Orders Take Off

By Mark Chadwick

Boeing’s stock price is recovering sharply as it benefits from recent multi-billion-dollar order wins
Japanese stocks (IHI, MHI, KHI & Subaru) are highly geared into the Boeing supply chain
We highlight IHI as a top pick on this thematic and believe aero-engine revenues will continue to recover, driving a stock re-rating

China Internet Weekly (12Dec2022): Bilibili, Tencent, JD.com

By Ming Lu

Bilibili is dismissing employees in live streaming, cartoon, and main station.
The Chinese mobile game market began to expand, but the global market is shrinking.
JD.com chairman reorganized its company, reducing the departments from eight to three.

Akeso Biopharma (9926.HK) – Behind the Deal with Summit: A Snake Swallows an Elephant?

By Xinyao (Criss) Wang

Akeso Biopharma Inc (9926 HK) and Summit Therapeutics entered into a collaborative and licensing agreement for AK112, which has set a new record for China’s innovative drug license-out cooperation.
While the market remained positive about the transaction, there are also doubts. We deep dive the potential logic of the deal.
We recommended investors not to neglect “the nature of the deal” and “the real motivation” behind. It’s also important to see whether the subsequent operations can make some achievements overseas.

Humana Inc.: Initiation of Coverage – Expansion Of CenterWell & Other Drivers

This is our first report on Humana, a leading player in the medical insurance space in the U.S.
The company’s third quarter results were reasonably strong as it met Wall Street’s revenue expectations while managing an earnings beat.
In addition to improving plan offers for their larger membership, the management strengthened their consumer segment strategy.

AutoZone Inc.: Initiation of Coverage – Business Model & Key Drivers

This is our first report on AutoZone, one of the largest distributors of automotive replacement parts and accessories in the U.S.
The company had a strong fourth quarter, and managed an all-around beat.
However, its domestic, commercial sales made up 30% of its domestic auto parts sales.

Getaround This SPAC Deal

By subSPAC

This week, digital car-sharing platform Getaround made the headlines as the latest De-SPAC casualty to crash and burn on its stock market debut.
After initially announcing plans to go public through a merger with interPrivate II Acquisition Corp in a deal valuing the combined company at $1.2 billion in May 2022, the company saw a decline of 65% on its debut.
Essentially, at its current valuation, the market thinks that Getaround is worth a little more than the cash generated from its SPAC deal and less than half of the total cash it has raised to date.

IDEX Corporation: Initiation of Coverage – & Other Drivers

This is our first report on industrials major, IDEX Corporation.
The company is regularly in the news for its frequent acquisitions and generated good results in the third quarter, surpassing Wall Street expectations on all fronts.
We initiate coverage on the stock of IDEX Corporation with a ‘Hold’ rating.

Newmont Corporation: Initiation of Coverage – Macro For Gold Mining & Other Drivers