Smartkarma Daily Briefs

To date, 52 companies listed in Hong Kong have sought the conversion of their PRC domestic (and unlisted foreign shares) into H-shares.
This mechanism, ostensibly, enables founders or major shareholders holding unlisted domestic shares to float (and sell) shares, improving a company’s corporate governance and stock liquidity, ultimately increasing a company’s valuation.
Or in the case of China Huarong Asset Management (2799 HK), the conversion restored its minimum public float.

Good Morning Japan | Powell in Focus: Big Bets off the Table

By Mark Chadwick

Good Morning Japan: We strive to provide the best macro, stock and thematic overnight news that impacts your trading day in Japan. FOLLOW/LIKE TO KEEP ABREAST.
OVERSEAS: Powell in focus – little risk appetite; Semi 2023 forecast; China to vaccinate seniors – drives China-listed rally; iPhone Production hit up to ~$8bn;
JAPAN: USDJPY ¥138.69; NKY Fut -0.2% ahead of Powell speech; JGB 10Y hit 0.25%-BOJ shift soon ?; Sony =>the Metaverse; JP Bank invests ¥100bn in start-ups; Nomura cuts costs

China NEV Outlook: Life After Subsidies Is Still Beautiful

By Victoria Li

Despite the remaining EV subsidies finishing next year, we expect demand to be relatively unimpacted
Battery supply issues should be eased with Covid lockdowns easing and new capacity expansions
>100 new models due for launch in 2023E vs ~70 in 2022 and will keep potential customers and market excited in the sector

Global Emerging Markets: Reporting Season Summary, 3Q2022

By Wium Malan, CFA

The 200 largest weighted companies in the GEM index reported average EPS growth of +12.8%y/y for 3Q22-to-date, a significant slowdown from what was reported for 2Q22.
60% of companies delivered positive sales surprise, same as in 2Q22, whilst 65% delivered positive EPS surprise, up from 56% in 2Q22.
Historically, there has been a significant difference in relative share price performance between the largest positive versus negative surprise generators, for 3 months after the reporting date.

Asia Gaming: Macau Renews 6 Concessionaires Licenses Building a Bull Catalyst into Sector Stocks

By Howard J Klein

Lingering bearish speculation about Beijing pressures for Macau to oust US based gaming operators proved wrong. All were renewed.
Genting’s last minute wild card application was rejected indicating Macau has opted for long term stability with existing operators.
One major headwind remains: China’s travel bans with no duration predictable despite growing public unrest due to growing damage to macro economy and public income streams.

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Nov 30

Daily Brief Credit: Twitter’s Banks Are Stuck With Largest Chunk Of Unsold LBO Debt and more

By Smartkarma Daily Briefs | Credit, Daily Briefs

In today’s briefing:

Twitter’s Banks Are Stuck With Largest Chunk Of Unsold LBO Debt
Morning Views Asia: Kawasan Industri Jababeka

Twitter’s Banks Are Stuck With Largest Chunk Of Unsold LBO Debt

By Vicki Bryan

Twitter’s banks are stuck with 30% of total US LBO debt unsold debt.
The banks already had lost more than $500 million on Twitter’s LBO debt even before the deal closed. They could sell it even at 50-60 cents on the dollar.
The trouble with Elon aggressively blowing up Twitter is that it’s banks probably won’t take his calls when Twitter needs more cash—which it probably will in the near future.

Morning Views Asia: Kawasan Industri Jababeka

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.

Kawasan Industri Jababeka

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Nov 30

Daily Brief Event-Driven: HSI and more

By Smartkarma Daily Briefs | Daily Briefs, Event-Driven

In today’s briefing:

HSI, HSCEI, HSTECH: Rebalance Flows Post Capping (Dec 2022)
JPX-Nikkei 400 Rebal 2023: End-Nov 2022
StubWorld: Iljin Holdings – Discounts On Discounts
Doosan Bobcat Block Deal Sale – Overhang Remains
Sunshine Insurance (6963 HK) IPO – Index Inclusion Timeline
Philip Morris/Swedish Match: Squeeze-Out

HSI, HSCEI, HSTECH: Rebalance Flows Post Capping (Dec 2022)

The December rebalance of the HSI, HSCEI and HSTECH indices will use today’s closing prices to cap the index constituents at 8%. This will lead to large flows.
The largest inflows will be on Alibaba Group, Haier Smart Home, Kuaishou Technology, Li Auto, PetroChina, Tencent, JD.com, China Resources Mixc Lifestyle Services and Tingyi Holding.
The largest outflows will be on SMIC, NetEase, AIA Group, HSBC Holdings, China Construction Bank, Alibaba Health Information Technology, Innovent Biologics, China Mobile, Ping An Insurance and ICBC.

JPX-Nikkei 400 Rebal 2023: End-Nov 2022

By Janaghan Jeyakumar, CFA

JPX-Nikkei 400 is composed of common stocks listed on the Tokyo Stock Exchange. It is a free-float-adjusted market-value-weighted (capped) index composed of 400 constituents.
A periodic review is conducted by the Index providers, the JPX Group and Nikkei Inc, in August every year. We look at the potential forward inclusions and removals every month.
Below is a look at potential Inclusions and Removals for the JPX-Nikkei 400 Rebalance to come in August 2023 based on trading data as of end-November 2022.

StubWorld: Iljin Holdings – Discounts On Discounts

Iljin Holdings (015860 KS)‘s implied stub is around levels just prior to the onset of Covid, despite strong subsequent deconsolidated earnings. 50.1%-held Iljin Diamond (081000 KS) is itself heavily discounted.
Preceding my comments on Iljin are the current setup/unwind tables for Asia-Pacific Holdcos.
These relationships trade with a minimum liquidity of US$1mn, and a % market capitalisation >20%.

Doosan Bobcat Block Deal Sale – Overhang Remains

Doosan Bobcat Inc (241560 KS) announced a block deal sale of 5 million shares. representing 5% of outstanding shares.
There are three major reasons why we have a negative view of the block deal sale and on Doosan Bobcat.
Two of these reasons include an overhang associated with remaining shares which could be sold as well as a potential downturn in construction markets in North America and Europe.

Sunshine Insurance (6963 HK) IPO – Index Inclusion Timeline

Sunshine Insurance (SUN HK) is looking to raise between US$859m-US$950m by selling 1.15bn shares in its IPO. At the top end, the company will be valued at HK$74bn.
All of the pre-IPO shares are Domestic Shares and there appear to be no immediate plans to convert them to H-shares. The only H-shares will be the IPO shares.
MSCI China inclusion requires a higher stock price or conversion of Domestic Shares to H-shares; FTSE inclusion is likely in June; HSCI and Stock Connect inclusion is expected in March.

Philip Morris/Swedish Match: Squeeze-Out

By Jesus Rodriguez Aguilar

At the end of the further extended acceptance period, PMHH owns 93.11% of the shares of Swedish Match (obtained both through shares tendered and market purchases).
PMHH intends to initiate compulsory redemption under the Swedish Companies Act to acquire all remaining shares in Swedish Match and request delisting from Nasdaq Stockholm. PMI wins again.
Although the shares are still liquid, gross spread is 2 bps, and therefore there is no trade worth considering, in my view.

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Nov 30

Daily Brief Equity Bottom-Up: SONY (6758) | Regulators – Duty Calls and more

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

In today’s briefing:

SONY (6758) | Regulators – Duty Calls
Pinduoduo: The Odd One Out
Taiwan Dual-Listings: TSMC & UMC Nice Setup Opportunities, Chunghwa Rare Deep Discount
China Education Group (839 HK): Shining Through
Theme International Holdings (990 HK): Getting To Know You
Intel Vs. TSMC Monitor: TSMC Outperformed Too Much Too Soon?
Singtel: Demand Surge
Home First Finance (HOMEFIRS IN) | Bounce Rate and Sales Pressure
Bilibili (9626 HK): 3Q22, Growth Accelerated, Loss Shrank, 38% Upside
Nanya Technology: Inventory Risk, A 10% Downside Trade Is Still Available

SONY (6758) | Regulators – Duty Calls

By Mark Chadwick

The next six months will be critical for the future of the global gaming industry as Regulators carry out further investigations into the Microsoft acquisition of Activision
This is particularly important for SONY, where games account for around one third of consolidated revenue and profits
This is a battle for the future of subscription services and cloud streaming – Call of Duty yields unprecedented power over the industry. Regulators need to do their Duty.

Pinduoduo: The Odd One Out

By Oshadhi Kumarasiri

Pinduoduo (PDD US)’s 3Q22 mirrored its strong previous quarter with revenue of RMB 35.5bn (consensus: RMB 30.8bn) and OP of RMB 10.4bn (consensus: RMB 6.7bn).
CCP’s anti-monopoly drive and common prosperity measures are helping Pinduoduo to outperform the competition.
Nonetheless, we refrain from being outright positive on any of the Chinese e-commerce names with the economy heading into a slowdown and the lowest sector-multiple at above 12x FY+1 OP.

Taiwan Dual-Listings: TSMC & UMC Nice Setup Opportunities, Chunghwa Rare Deep Discount

By Vincent Fernando, CFA

TSMC — Trading near parity, decent setup opportunity at the current level.
UMC — Trading at a discount, another decent setup opportunity.
Chunghwa Telecom — Rare opportunity here, trading at a steep discount compared to the tight historical range.

China Education Group (839 HK): Shining Through

By Osbert Tang, CFA

China Education Group (839 HK)‘s 27.8% growth in net profit affirmed its solid fundamentals and minimal exposure to regulatory risks. We also welcome its resumption of dividends.
Management expects profitability will be driven by the 48% new student enrollment growth, potential for tuition increase and global education segment recovery. Consensus forecasts are currently too conservative.
Weaker 2H FY22 profit is due to higher depreciation and finance costs but will be absorbed with higher enrollment. Capex will be light and we also like its deleveraging move.

Theme International Holdings (990 HK): Getting To Know You

Commodities trader Theme International Holdings (990 HK) is up 670% since the inset of Covid, and that is after declining 52% from the July 2021 peak.
A sharp increase in iron ore prices since 2020 resulted in FY21 net income of HK$1bn against HK$146mn in FY19. Net cash is currently HK$4.2bn, 38% of Theme’s market cap.
You Zhenhua is Theme’s largest shareholder. Theme recently acquired a 6.6% stake in You Zhenhua-controlled Esteel, which in turn holds a 61% stake in BRC Asia Ltd (BRC SP).

Intel Vs. TSMC Monitor: TSMC Outperformed Too Much Too Soon?

By Vincent Fernando, CFA

Intel has eked out a small outperformance vs. TSMC most recently, and we believe there is more to come.
Events appear to be in Intel’s favor in the near-term.
TSMC has outperformed by a historically extreme amount in just three weeks.

Singtel: Demand Surge

By Steven Holden

Sentiment switch for Singtel after surge in buying among Asia Ex-Japan funds
New positions from Fullerton Asia Focus, Jupiter Asian Fund and Fullerton Asia Growth & Income head a total of 14 funds opening exposure between 01/31/2022 and 10/31/2022.
Follows broader rotation in to key Singapore names despite heavy selling in Sea Ltd.

Home First Finance (HOMEFIRS IN) | Bounce Rate and Sales Pressure

By Pranav Bhavsar

We interact with Home First Finance (HOMEFIRS IN) branch managers to understand the reason behind the increase in bounce rates.
The overall NACH data also shows a high rejection rate in October despite being a festive month, which is surprising.
With 92% of Home First Finance (HOMEFIRS IN) loans being disbursed in less than 48 hours, this focus on TAT could lead to higher than industry-average asset quality issues.

Bilibili (9626 HK): 3Q22, Growth Accelerated, Loss Shrank, 38% Upside

By Ming Lu

The revenue growth rate rose for the first time in one year and a half.
Also, operating loss shrank for the first time in one year and a half.
We believe the stock has an upside of 38% for year end 2023.

Nanya Technology: Inventory Risk, A 10% Downside Trade Is Still Available

By Vincent Fernando, CFA

Nanya Tech shares have dropped, but there’s still a 10% trading sell from these levels.
The company had dramatically outperformed the Taiwan market and Memory chip peers, yet is heading into weakening end-demand with inventory levels at multi-year highs.
We see the potential for inventory write-downs and a negative operating margin in the coming quarters. Meanwhile, opportunities for near-term good news appear limited.

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Nov 30

Daily Brief Macro: Korean Financial Regulators Propose Changes to Dividends and more

By Smartkarma Daily Briefs | Daily Briefs, Macro

In today’s briefing:

Korean Financial Regulators Propose Changes to Dividends, IPOs, & Foreign Investor Registration
China: Shifts in Policymaking
CX Daily: China Lines Up Yet More Aid for the Property Sector, But Will It Be Enough? (Part 1）
What Does an Anwar-Led Administration Mean for Malaysia?
Money in the Bank(s)
CX Daily: China’s Share Markets Back on the Fundraising Menu for Ailing Developers (Part 2)

Korean Financial Regulators Propose Changes to Dividends, IPOs, & Foreign Investor Registration

On 28 November, the Korean FSC made a public presentation of potential changes to regulations related to dividends, IPOs, and foreign investors registration which could reduce the long-term “Korea Discount.”
FSC has announced that it will improve the dividend payment process of listed Korean companies by benchmarking more advanced countries such as the United States.
With regards to IPOs in Korea, the potential expansion of the price limit on the first day of trading post IPO from 90-200% (current) to 60-400% (revised) has been proposed.

China: Shifts in Policymaking

By Manu Bhaskaran

Monetary policy was eased with a cut to the RRR rate and additional credit support is being planned for the real estate sector.
These moves show that policymaking is shifting from piecemeal actions to substantive pro-growth efforts.
However, headwinds to growth have grown and this latest move may not suffice to promote growth.

CX Daily: China Lines Up Yet More Aid for the Property Sector, But Will It Be Enough? (Part 1）

By Caixin Global

Cover Story: China lines up yet more aid for the property sector, but will it be enough? (Part 1）
Guangzhou spares homebound from mass Covid testing
Cold snap in Northwest China leaves livestock trapped and herdsmen missing

What Does an Anwar-Led Administration Mean for Malaysia?

By Manu Bhaskaran

Reformist stalwart Anwar Ibrahim has finally achieved his ambition of becoming Malaysia’s prime minister. He now faces a formidable in-tray of political and economic challenges.
He leads a coalition government of unlikely bedfellows. The politics of holding his coalition together will constrain certain aspects of economic policy.
However, cooperation between the former political enemies may pave the way for healing social divisions and longer-lasting economic reforms.

Money in the Bank(s)

By Mark Tinker

Ultra low rates did not cause inflation, a dramatic increase in the money supply during Covid did.
Equally, the forthcoming recession will not be about higher rates, but about the equally dramatic collapse in money supply growth since April.
Instead, ultra low rates stimulated the financial markets through cheap credit and low discount rates, that bubble is already unwinding as rates rise.

CX Daily: China’s Share Markets Back on the Fundraising Menu for Ailing Developers (Part 2)

By Caixin Global

Cover Story: China’s share markets back on the fundraising menu for ailing developers (Part 2)
China steps up timetable for senior vaccinations as Covid cases surge
China’s President Xi Jinping meets with Mongolian President

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Nov 30

Most Read: Hainan Drinda Automotive Trim, Hunan Zhongke Electric Co,Ltd., Daiei Kankyo, Growatt Technology, Haier Smart Home Co Ltd, Sony Corp, Sunshine Insurance, Doosan Bobcat Inc, SBI Holdings and more

By Smartkarma Daily Briefs | Daily Briefs, Most Read

In today’s briefing:

2023 High Conviction: Semiconductor Down Market
SZSE1000 Index Rebalance: Changes & Potential MSCI/FTSE Inclusions & Exclusions
ChiNext/ChiNext 50 Index Rebalance: Materials & Industrials Take Spots from IT, Health Care
Daiei Kankyo IPO – Final Thoughts on Valuation
Growatt Technology IPO: Valuation First Look
HSI, HSCEI, HSTECH: Rebalance Flows Post Capping (Dec 2022)
SONY (6758) | Regulators – Duty Calls
Sunshine Insurance Group Pre-IPO – Peer Comparison – Fastest in One Segment, Slowest in the Other
Doosan Bobcat Placement – Momentum Is Strong but past Deals Have Been a Mixed Bag
JPX-Nikkei 400 Rebal 2023: End-Nov 2022

2023 High Conviction: Semiconductor Down Market

By Jim Handy

The current semiconductor market meltdown can be expected to continue through the end of 2024
This will reduce 2022 market growth to 5%, and will drive a decline of 19% in 2023
Stocks will be unevenly influenced by this, with the most dramatic declines hitting makers of volume commodities, smaller declines in differentiated products, and a weak impact on older technology products.

SZSE1000 Index Rebalance: Changes & Potential MSCI/FTSE Inclusions & Exclusions

There are 47 changes for the SZSE 1000 index that will be implemented at the close of trading on 9 December.
We see 51 stocks being added to Shenzhen Stock Connect (47 index adds + 4 existing constituents) and 83 deletions from Stock Connect (15 index adds + 68 existing constituents).
There could be 4 adds to the MSCI China in February and 11 adds to the FTSE All-World/All-Cap in March. Plus a bunch of deletes at the close 9 December.

ChiNext/ChiNext 50 Index Rebalance: Materials & Industrials Take Spots from IT, Health Care

There will be 10 changes for the Chinext Price Index and 5 changes for the ChiNext 50 Index. Implementation is at the close on 9 December.
One surprise is the inclusion of Hunan Zhongke Electric Co,Ltd. (300035 CH) in both indices. Four stocks are adds to both indices while two stocks are deletes from both indices.
The adds have outperformed the deletes over the last 8 months but have given up some of the gains over the last month. There is a big sector skew.

Daiei Kankyo IPO – Final Thoughts on Valuation

By Sumeet Singh

Daiei Kankyo (9336 JP) (DK), a waste management company, aims to raise 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 undertook a peer comparison. In this note, we talk about final valuations.

Growatt Technology IPO: Valuation First Look

By Arun George

Growatt Technology (1833969D CH), a leading PV inverters manufacturer, is pre-marketing a US$1.0 billion HKEx IPO, according to press reports.
We previously discussed the IPO in Growatt Technology IPO: The Bull Case, Growatt Technology IPO: The Bear Case and Growatt Technology IPO: Growing Watts.
In this note, we present our forecasts and take the first look at Giant Biogene’s potential valuation range.

HSI, HSCEI, HSTECH: Rebalance Flows Post Capping (Dec 2022)

The December rebalance of the HSI, HSCEI and HSTECH indices will use today’s closing prices to cap the index constituents at 8%. This will lead to large flows.
The largest inflows will be on Alibaba Group, Haier Smart Home, Kuaishou Technology, Li Auto, PetroChina, Tencent, JD.com, China Resources Mixc Lifestyle Services and Tingyi Holding.
The largest outflows will be on SMIC, NetEase, AIA Group, HSBC Holdings, China Construction Bank, Alibaba Health Information Technology, Innovent Biologics, China Mobile, Ping An Insurance and ICBC.

SONY (6758) | Regulators – Duty Calls

By Mark Chadwick

The next six months will be critical for the future of the global gaming industry as Regulators carry out further investigations into the Microsoft acquisition of Activision
This is particularly important for SONY, where games account for around one third of consolidated revenue and profits
This is a battle for the future of subscription services and cloud streaming – Call of Duty yields unprecedented power over the industry. Regulators need to do their Duty.

Sunshine Insurance Group Pre-IPO – Peer Comparison – Fastest in One Segment, Slowest in the Other

By Sumeet Singh

Sunshine Insurance Group (SIG), a life, health and P&C insurance company, aims to raise up to US$1bn in its HK IPO.
SIG is an integrated insurance provider which offers both life and health (L&H) and property and casualty (P&C) insurance in China.
We have looked at the company’s past performance in our previous notes. In this note, we will undertake a peer comparison.

Doosan Bobcat Placement – Momentum Is Strong but past Deals Have Been a Mixed Bag

Doosan Bobcat Inc (241560 KS) aims to sell a US$145m block. Its recent price momentum is strong but past deals have shown mixed results.
The deal doesn’t appear to be well flagged and is a relatively large one to digest, representing 20.9 days of its three month ADV.
In this note, we will run the deal through our ECM framework and comment on other deal dynamics.

JPX-Nikkei 400 Rebal 2023: End-Nov 2022

By Janaghan Jeyakumar, CFA

JPX-Nikkei 400 is composed of common stocks listed on the Tokyo Stock Exchange. It is a free-float-adjusted market-value-weighted (capped) index composed of 400 constituents.
A periodic review is conducted by the Index providers, the JPX Group and Nikkei Inc, in August every year. We look at the potential forward inclusions and removals every month.
Below is a look at potential Inclusions and Removals for the JPX-Nikkei 400 Rebalance to come in August 2023 based on trading data as of end-November 2022.

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Nov 30

Daily Brief Industrials: Doosan Bobcat Inc, Iljin Holdings and more

By Smartkarma Daily Briefs | Daily Briefs, Industrials

In today’s briefing:

Doosan Bobcat Placement – Momentum Is Strong but past Deals Have Been a Mixed Bag
StubWorld: Iljin Holdings – Discounts On Discounts
Doosan Bobcat Block Deal Sale – Overhang Remains

Doosan Bobcat Placement – Momentum Is Strong but past Deals Have Been a Mixed Bag

Doosan Bobcat Inc (241560 KS) aims to sell a US$145m block. Its recent price momentum is strong but past deals have shown mixed results.
The deal doesn’t appear to be well flagged and is a relatively large one to digest, representing 20.9 days of its three month ADV.
In this note, we will run the deal through our ECM framework and comment on other deal dynamics.

StubWorld: Iljin Holdings – Discounts On Discounts

Iljin Holdings (015860 KS)‘s implied stub is around levels just prior to the onset of Covid, despite strong subsequent deconsolidated earnings. 50.1%-held Iljin Diamond (081000 KS) is itself heavily discounted.
Preceding my comments on Iljin are the current setup/unwind tables for Asia-Pacific Holdcos.
These relationships trade with a minimum liquidity of US$1mn, and a % market capitalisation >20%.

Doosan Bobcat Block Deal Sale – Overhang Remains

Doosan Bobcat Inc (241560 KS) announced a block deal sale of 5 million shares. representing 5% of outstanding shares.
There are three major reasons why we have a negative view of the block deal sale and on Doosan Bobcat.
Two of these reasons include an overhang associated with remaining shares which could be sold as well as a potential downturn in construction markets in North America and Europe.

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Nov 30

Daily Brief Health Care: Fangzhou Group, iShares Russell 2000 ETF, Becton Dickinson and Co, Beijing Tiantan Biological Products and more

By Smartkarma Daily Briefs | Daily Briefs, Healthcare

In today’s briefing:

Fangzhou Group Pre-IPO Tearsheet
Time to Get Defensive After 1.5-Month Uptrend Breaks; High Yield Spreads Widening Much Like Mid-Aug.
Becton Dickinson and Co (BDX US): EO Ruling Is Positive; Strong Base Business to Drive Growth Ahead
Beijing Tiantan Biological Products (600161CH)-A Good Defensive Investment Target but May Overvalued

Fangzhou Group Pre-IPO Tearsheet

Fangzhou Group (FANGZHOU HK) is looking to raise about US$300m in its upcoming HK IPO. The deal will be run by Citibank, UBS and ABC International.
Fangzhou Group is an online chronic disease management platform in China, considered the largest in terms of average MAU in 2021, according to CIC.
It focuses on common and chronic diseases such as hypertension, cardiovascular and respiratory chronic diseases, providing tailored medical care and precision medicine covering the full disease cycle for patients.

Time to Get Defensive After 1.5-Month Uptrend Breaks; High Yield Spreads Widening Much Like Mid-Aug.

By Joe Jasper

Since early-October we have discussed our expectation for a bear rally, targeting the 200-day MAs on the $IWM and $SPX; targets were hit (within 0.5% of hitting on SPX).
We are now seeing short-term uptrend breaks on the IWM and the DJIA; this is a good time to get defensive and/or take profits, as the 1.5-month rally appears over.
We expect more weakness in the weeks ahead, and we cannot rule out another test of the 2022 lows.

Becton Dickinson and Co (BDX US): EO Ruling Is Positive; Strong Base Business to Drive Growth Ahead

By Tina Banerjee

Ruling on Ethylene Oxide in favor of Sotera is a positive for all the medical devices companies including Becton Dickinson and Co (BDX US), who have EO sterilization facilities.
In FY22, BD reported strong base business, which grew 6.9% y/y on reported basis. On currency-neutral basis, base business increased 9.4% y/y in FY22, accelerated from 8.1% in FY21.
FY22 marks 51st consecutive year of dividend increase for BD, which makes it one of the leading dividend yield stocks. Currently, the stock has a dividend yield of 1.53%.

Beijing Tiantan Biological Products (600161CH)-A Good Defensive Investment Target but May Overvalued

By Xinyao (Criss) Wang

Tiantan is a good defensive investment target in unfriendly external environment to control the pullback due to its advantageous background and resources, but its profit margin/efficiency needs to improve.
After a large performance decline in Q1, Tiantan recovered well in Q2, but due to the pandemic and some acquisitions/resource integration, its profit performance declined in Q3.
Tiantan’s performance growth is expected to slow down in 2022, with single-digit YoY revenue growth. Accordingly, the current valuation may have overdrawn certainty.

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Nov 30

Daily Brief Industrials: Doosan Bobcat Inc, Iljin Holdings and more

By Smartkarma Daily Briefs | Daily Briefs, Industrials

In today’s briefing:

Doosan Bobcat Placement – Momentum Is Strong but past Deals Have Been a Mixed Bag
StubWorld: Iljin Holdings – Discounts On Discounts
Doosan Bobcat Block Deal Sale – Overhang Remains

Doosan Bobcat Placement – Momentum Is Strong but past Deals Have Been a Mixed Bag

Doosan Bobcat Inc (241560 KS) aims to sell a US$145m block. Its recent price momentum is strong but past deals have shown mixed results.
The deal doesn’t appear to be well flagged and is a relatively large one to digest, representing 20.9 days of its three month ADV.
In this note, we will run the deal through our ECM framework and comment on other deal dynamics.

StubWorld: Iljin Holdings – Discounts On Discounts

Iljin Holdings (015860 KS)‘s implied stub is around levels just prior to the onset of Covid, despite strong subsequent deconsolidated earnings. 50.1%-held Iljin Diamond (081000 KS) is itself heavily discounted.
Preceding my comments on Iljin are the current setup/unwind tables for Asia-Pacific Holdcos.
These relationships trade with a minimum liquidity of US$1mn, and a % market capitalisation >20%.

Doosan Bobcat Block Deal Sale – Overhang Remains