Smartkarma Daily Briefs

In October 2022, FTSE Russell confirmed that the number of constituents in the FTSE TWSE Taiwan Dividend+ Index will be increased from 30 to 50 during the December 2022 Rebalance.
Considering the combined effect of expected index changes and capping flows, there could be 27 potential inflows names and 28 potential outflow names with total one-way flow size of US$2.45bn.
There are multiple names on both sides with several days of volume to trade.

FTSE TWSE Taiwan 50 Index Rebalance Preview: Far Eastern Could Replace AUO

Today is the review cutoff and we expect Far Eastern New Century (1402 TT) to replace AU Optronics (2409 TT) in the FTSE TWSE Taiwan 50 Index in December.
Passive Taiwan 50 trackers will need to buy nearly 6 days ADV on Far Eastern New Century (1402 TT) and sell 1.6 days of ADV on AU Optronics (2409 TT).
There will be same way flows from the FTSE TWSE Taiwan Dividend+ Index trackers and will substantially add to the impact on the stocks.

Taiwan Div+ Index Dec22 Rebal Trade Up 6% So Far – Small Changes To Basket But HODL Til The End

The Taiwan Div+ cutoff date for the data used to calculate the Dec 2022 rebalance was yesterday’s close. Janaghan Jeyakumar, CFA has published two updates.
I recommended a long vs short basket on 26 October. So far that long vs short basket is +6.1%. I recommend adjusting the basket to new names and continuing.
Historically, the pattern from cutoff to date to Inclusion and then Inclusion to Inclusion+20 is quite clean. I would not expect differently this time.

Daiei Kankyo Pre-IPO – Peer Comparison and Thoughts on Valuation

By Sumeet Singh

Daiei Kankyo (9336 JP) , a waste management company, aims to raise around US$280m 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 note, we looked at the company’s past performance. In this note, we undertake a peer comparison and talk about valuations.

Woodside Energy ADR: Initiation of Coverage – Business Strategy & Key Drivers

By Baptista Research

This is our first report on Australian Energy major, Woodside Energy.
Increased production volumes and increased pricing resulted in an increase in sales volume.
Woodland Energy to collaborate to secure a steady energy supply for Japan.

Ready, Aim, Fire

By subSPAC

Since the boom in 2020, SPACs have been instrumental in taking high-risk, technologically disruptive companies public.
This includes space startups building rockets focused on carrying payloads to space, Quantum Computing firms creating solutions for challenging tasks, and a host of Electric Vehicle Makers looking to challenge Tesla’s crown in building environmentally sound vehicles.
Texas-based True Velocity Ammo, which develops and markets composite-case ammunition, aims to disrupt the highly mature ammunition industry on the same scale as these other emerging firms, delivering lighter and more efficient solutions to the public and military.

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Nov 22

Daily Brief Equity Bottom-Up: Sumco (3436) | Bargain Basement and more

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

In today’s briefing:

Sumco (3436) | Bargain Basement
China Internet Weekly (21Nov2022): NetEase, Blizzard, Tencent, Meituan, Tencent Music, JD Logistics
Mandarin Oriental (MAND SP): Life Is Suite
Japan Post Bank – Unrealized Gains Down 95%
JD.com (9618 HK): 3Q22, Growth Recovered, Margin Reached Historical High
Disney: Could Iger Sell to Apple?
Honda Motor ADR: Initiation of Coverage – Recent JVs & Key Drivers
Arteria Networks (Buy) – Q2 22 Results Reaction: Core Business Growth Intact
Hon Hai & Yulon IPO: Media Reports of Electric Vehicle JV 1Q23 Listing, Stock Implications
Ascentage Pharma (6855.HK) – May Not Survive “This Winter”

Sumco (3436) | Bargain Basement

By Mark Chadwick

Sumco is a pure play wafer maker that is geared into demand for cutting edge 300mm wafers
Sumco is attractive given weak sentiment towards tech, attractive valuation, strong profitability and long-term earnings drivers
With the stock down 12% YTD, we believe the stocks is undervalued and see at least 20% upside from here

China Internet Weekly (21Nov2022): NetEase, Blizzard, Tencent, Meituan, Tencent Music, JD Logistics

The authorization contracts between Activision Blizzard and NetEase will terminate in January 2023.
Tencent plans to distribute 91% of its Meituan share as dividend.
JD Logistics revenue increased by 39% YoY and Net loss decreased to one tenth.

Mandarin Oriental (MAND SP): Life Is Suite

Hong Kong is – very gradually – rolling back Covid restrictions
That’s a welcome relief for tourists, and for hospitality companies dependent on tourism.
Mandarin Oriental International (MAND SP) is trading cheap at 0.7x P/B against 1.8x on average (five years) pre-Covid.

Japan Post Bank – Unrealized Gains Down 95%

By Daniel Tabbush

Japan Post Bank continues to see cratering net interest income
The company’s significant US CLO exposure is not supporting profit
Total unrealized gains on securities are down 95% in the past six months

JD.com (9618 HK): 3Q22, Growth Recovered, Margin Reached Historical High

The revenue growth rate bounced back to 11% YoY in 3Q22.
The operating margin improved to a historical high at 3.1%.
We believe the stock price has an upside of 27% for year end 2023.

Disney: Could Iger Sell to Apple?

By Aaron Gabin

The suprise return of Bob Iger as Disney CEO can fix certain Bob Chapek specific issues: relationships with investors, politicians, and creative types.
But Iger faces similar intractable issues: accelerating cord cutting, a transition to a less profitable form of media distribution, and a potential recession.
We think Iger will refocus investors on revenues/profits at Disney+ rather than subscribers, will more efficiently spend on content through decentralizing decision making… and potentially sell Disney to Apple.

Honda Motor ADR: Initiation of Coverage – Recent JVs & Key Drivers

By Baptista Research

This is our first report on global automobile behemoth, Honda Motors.
The Shanghai lockdown and semiconductor supply shortage resulted in a drop in unit sales and automobile production of Honda in the quarter, mainly in North America and China.
However, despite soaring raw material costs and a drop in automobile unit sales, the sales of motorcycle units were up which led to the revenue beat.

Arteria Networks (Buy) – Q2 22 Results Reaction: Core Business Growth Intact

By Kirk Boodry

Favorable industry trends like work from home and expanding mobile data usage are helping drive Arteria revenue growth
Headline profits are down but core OP is up when one-time gains last year are stripped out and quarterly results will start to look better in H2 when fully lapped
Management says macro concerns such as inflation and power costs are manageable and FY targets remain unchanged

Hon Hai & Yulon IPO: Media Reports of Electric Vehicle JV 1Q23 Listing, Stock Implications

By Vincent Fernando, CFA

Hon Hai Precision Industry (2317 TT) and Yulon Motor Company (2201 TT) plan to IPO their electric vehicles JV Foxtron Vehicle Technologies in 1Q23E, seeking NT$10bn.
The IPO’s valuation could be a major uplift for Yulon Motor Company (2201 TT)‘s valuation.
Hon Hai Precision Industry (2317 TT): Successful IPO would provide markets proof that its EV platform can create value uplifts again and again in the future. Accumulate.

Ascentage Pharma (6855.HK) – May Not Survive “This Winter”

By Xinyao (Criss) Wang

The R&D direction and field of Ascentage Pharma Group Corp (6855 HK) distinguish it from other domestic biotech companies. The Company has proved its R&D capability after the successful launch of olverembatinib.
The uncertainties of commercialization performance and R&D risks would make it difficult for Ascentage to achieve break-even. Due to increasing cash flow pressure, Ascentage must first solve the survival problem.
Considering the Risk return trade-off, we think Ascentage has short-term investment value only when it’s “extremely undervalued”.We suggest that it could be sold in a timely manner to secure gains.

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Nov 22

Daily Brief Event-Driven: FTSE TWSE Taiwan Dividend+ Index Rebalance Preview: 46% One-Way Turnover and US$5bn Two-Way Trade and more

By Smartkarma Daily Briefs | Daily Briefs, Event-Driven

In today’s briefing:

FTSE TWSE Taiwan Dividend+ Index Rebalance Preview: 46% One-Way Turnover and US$5bn Two-Way Trade
FTSE TWSE Dividend+ Dec 22 Quiddity Final Expectations: Crucial Shift in Tracking AUM a GAME CHANGER
FTSE TWSE Taiwan 50 Index Rebalance Preview: Far Eastern Could Replace AUO
Meritz Merger Event: Swap Conditions, Spread Arb Trade, & K200 Flow Implementation
Medley (4480) – Move to Prime Means TOPIX Inclusion Next Month
AXXZIA (4936 JP) – TOPIX Inclusion Is Likely In February
FTSE TWSE 50 & 100 Dec 22 Final Expectations: Greatek Is Still the Main Talking Point
Meritz Financial Group: Comprehensive Stock Swap + Delisting of Meritz Sec. And Meritz F&M Insurance
Lifestyle (1212 HK)’s Scheme Gets Up
FTSE China 50 Index Rebalance Preview: JD Health Could Replace Xpeng

FTSE TWSE Taiwan Dividend+ Index Rebalance Preview: 46% One-Way Turnover and US$5bn Two-Way Trade

Today is the review cutoff for dividend data and stock prices that will be used to select the inclusions and exclusions as well as for capping of index weights.
We see 26 adds and 5 deletes for the index at the December rebalance resulting in one-way turnover of 46% and a one-way trade of TWD 78.1bn (US$2.51bn).
Passive trackers will need to buy over 5 days of ADV on 15 stocks and sell over 5 days of ADV on 19 stocks and this will present trading opportunities.

FTSE TWSE Dividend+ Dec 22 Quiddity Final Expectations: Crucial Shift in Tracking AUM a GAME CHANGER

In October 2022, FTSE Russell confirmed that the number of constituents in the FTSE TWSE Taiwan Dividend+ Index will be increased from 30 to 50 during the December 2022 Rebalance.
Considering the combined effect of expected index changes and capping flows, there could be 27 potential inflows names and 28 potential outflow names with total one-way flow size of US$2.45bn.
There are multiple names on both sides with several days of volume to trade.

FTSE TWSE Taiwan 50 Index Rebalance Preview: Far Eastern Could Replace AUO

Today is the review cutoff and we expect Far Eastern New Century (1402 TT) to replace AU Optronics (2409 TT) in the FTSE TWSE Taiwan 50 Index in December.
Passive Taiwan 50 trackers will need to buy nearly 6 days ADV on Far Eastern New Century (1402 TT) and sell 1.6 days of ADV on AU Optronics (2409 TT).
There will be same way flows from the FTSE TWSE Taiwan Dividend+ Index trackers and will substantially add to the impact on the stocks.

Meritz Merger Event: Swap Conditions, Spread Arb Trade, & K200 Flow Implementation

By Sanghyun Park

The last trading day to secure appraisal rights is today (the 22nd). You must buy stocks by today to make arb trade possible using appraisal rights.
We should consider LONG FINANCIAL SHORT FIRE/SECURITIES. KSD allows us to maintain borrowed stocks of the target company without redemption procedures if new stocks are listed after the merger.
K200 trackers will have to buy in for FIRE at the close on January 27, whereas SECURITIES will be on March 31. We should design a setup targeting this preemptively.

Medley (4480) – Move to Prime Means TOPIX Inclusion Next Month

A year ago, TSE Growth-listed Medley (4480 JP) said they would “make preparations” for a listing on TSE Prime. Last month, Janaghan Jeyakumar, CFA had it at “Almost Ready.”
Today they announced they would list on TSE Prime on 28 November which means a TOPIX Inclusion at end-December.
Shareholder structure and stock bias matter a lot in this case. It’s very much worth looking at the details.

AXXZIA (4936 JP) – TOPIX Inclusion Is Likely In February

Just under two weeks ago, AXXZIA Inc (4936 JP) announced it had on that day (9 November) applied to move to TSE Prime from TSE Growth.
It’s an interesting one because of the strange differential between “tradable shares” and “float.”
After some study, I think this could be a TOPIX inclusion at end-Feb 2023, but there are steps to take between now and then.

FTSE TWSE 50 & 100 Dec 22 Final Expectations: Greatek Is Still the Main Talking Point

The base date for the December 2022 index review FTSE TWSE Taiwan 50 and Taiwan Mid-Cap 100 for the December 2022 Rebalance is today (21st November 2022).
In this insight, we take a look at Quiddity’s final predictions for expected ADDs/DELs for the December 2022 index review.
I expect one change for the Taiwan 50 Index and one change for the Taiwan Mid-Cap 100 index.

Meritz Financial Group: Comprehensive Stock Swap + Delisting of Meritz Sec. And Meritz F&M Insurance

By Douglas Kim

After the market close today, Meritz Financial Group (MFG) made one of the biggest announcements in the history of the group.
It announced that Meritz Fire & Marine Insurance and Meritz Securities will become fully owned subsidiaries of Meritz Financial Group. Meritz F&M Insurance and Meritz Securities will also be delisted.
MFG is making a real positive change through the share swaps among the three companies. This will likely have the biggest positive impact will be on MFG.

Lifestyle (1212 HK)’s Scheme Gets Up

Independent shareholders of Lifestyle International Holdings (1212 HK) comfortably voted through the Scheme resolution.
94.93% of stakeholders present (and via proxy) voted FOR, with 5.07% voting AGAINST.
The last day of trading is the 6 December with payment expected on or before the 30 December.

FTSE China 50 Index Rebalance Preview: JD Health Could Replace Xpeng

At the end of the review period for the December rebalance, we see JD Health (6618 HK) replacing XPeng (9868 HK) in the FTSE China 50 Index.
There is a very slim possibility of Longfor Properties (960) being deleted; it could be replaced with either Yum China Holdings Inc (9987) or PICC Property & Casualty H (2328).
Short interest has stayed rangebound on JD Health (6618 HK) this year, while shorts have gone parabolic on XPeng (9868 HK) over the last few months.

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Nov 22

Daily Brief Thematic (Sector/Industry): Good Morning Japan | Holiday Blues – More of the Same and more

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

In today’s briefing:

Good Morning Japan | Holiday Blues – More of the Same
Portfolios Built Based on Innovation Score by Datamining Technical Publications

Good Morning Japan | Holiday Blues – More of the Same

By Mark Chadwick

Good Morning Japan: We strive to provide the very best breaking macro, stock and thematic overnight news that will impact your trading day in Japan. FOLLOW US to keep abreast
OVERSEAS. Equity markets consoldiate – with strong Technical support ahead of holidays; Mometum over Beta/Growth; Defensives lead; Oil market confusion; Disney mgmt coup
JAPAN. Quiet Start; Yen weaker at ¥142/USD; Ahead of holiday’s tomorrow(and US Thanksgiving), expect low volumes and little px movement; Buffet bullish Japanese Traders; Broker initiations on Kajima(BUY); Shimizu(SELL)

Portfolios Built Based on Innovation Score by Datamining Technical Publications

By Pyari Menon

We built a large cap, a mid cap and a small cap portfolio of twenty stocks each. The constituents are based on how technical publications score and rank their innovations
Only algo driven scores were considered to pick the stocks. Metrics like sales and profit growth, cashflow, leverage, returns, margins, valuations, estimates, news flow, price momentum were NOT considered
The portfolios are market cap weighted. We avoided including the mega caps Apple, Microsoft, Amazon and Google, due to the significant skew their weights will have on the portfolio

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Nov 22

Daily Brief Health Care: Medley, Ascentage Pharma Group Corp and more

By Smartkarma Daily Briefs | Daily Briefs, Healthcare

In today’s briefing:

Medley (4480) – Move to Prime Means TOPIX Inclusion Next Month
Ascentage Pharma (6855.HK) – May Not Survive “This Winter”

Medley (4480) – Move to Prime Means TOPIX Inclusion Next Month

A year ago, TSE Growth-listed Medley (4480 JP) said they would “make preparations” for a listing on TSE Prime. Last month, Janaghan Jeyakumar, CFA had it at “Almost Ready.”
Today they announced they would list on TSE Prime on 28 November which means a TOPIX Inclusion at end-December.
Shareholder structure and stock bias matter a lot in this case. It’s very much worth looking at the details.

Ascentage Pharma (6855.HK) – May Not Survive “This Winter”

By Xinyao (Criss) Wang

The R&D direction and field of Ascentage Pharma Group Corp (6855 HK) distinguish it from other domestic biotech companies. The Company has proved its R&D capability after the successful launch of olverembatinib.
The uncertainties of commercialization performance and R&D risks would make it difficult for Ascentage to achieve break-even. Due to increasing cash flow pressure, Ascentage must first solve the survival problem.
Considering the Risk return trade-off, we think Ascentage has short-term investment value only when it’s “extremely undervalued”.We suggest that it could be sold in a timely manner to secure gains.

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Nov 22

Daily Brief TMT/Internet: Greatek Electronics, SUMCO Corp, Tencent, Ant Financial Services Group, ARTERIA Networks Corp, Hon Hai Precision Industry and more

By Smartkarma Daily Briefs | Daily Briefs, TMT/Internet

In today’s briefing:

FTSE TWSE 50 & 100 Dec 22 Final Expectations: Greatek Is Still the Main Talking Point
Sumco (3436) | Bargain Basement
China Internet Weekly (21Nov2022): NetEase, Blizzard, Tencent, Meituan, Tencent Music, JD Logistics
Ant Group: Consumer Finance Finds Investors But Beijing Could Throw New Obstacles At Ant’s Direction
Arteria Networks (Buy) – Q2 22 Results Reaction: Core Business Growth Intact
Hon Hai & Yulon IPO: Media Reports of Electric Vehicle JV 1Q23 Listing, Stock Implications

FTSE TWSE 50 & 100 Dec 22 Final Expectations: Greatek Is Still the Main Talking Point

The base date for the December 2022 index review FTSE TWSE Taiwan 50 and Taiwan Mid-Cap 100 for the December 2022 Rebalance is today (21st November 2022).
In this insight, we take a look at Quiddity’s final predictions for expected ADDs/DELs for the December 2022 index review.
I expect one change for the Taiwan 50 Index and one change for the Taiwan Mid-Cap 100 index.

Sumco (3436) | Bargain Basement

By Mark Chadwick

Sumco is a pure play wafer maker that is geared into demand for cutting edge 300mm wafers
Sumco is attractive given weak sentiment towards tech, attractive valuation, strong profitability and long-term earnings drivers
With the stock down 12% YTD, we believe the stocks is undervalued and see at least 20% upside from here

China Internet Weekly (21Nov2022): NetEase, Blizzard, Tencent, Meituan, Tencent Music, JD Logistics

The authorization contracts between Activision Blizzard and NetEase will terminate in January 2023.
Tencent plans to distribute 91% of its Meituan share as dividend.
JD Logistics revenue increased by 39% YoY and Net loss decreased to one tenth.

Ant Group: Consumer Finance Finds Investors But Beijing Could Throw New Obstacles At Ant’s Direction

By Oshadhi Kumarasiri

Earlier this year, an RMB 22.0bn fundraising was likely blocked by Beijing with the state-backed asset manager, China Cinda pulling out of the deal at the last moment.
Several media outlets reported last week that Ant Group is pushing ahead yet again with an RMB 10.5bn fundraising effort for its Consumer Finance business.
This fundraising could yet again face obstacles as Beijing might want Ant Financial Services Group (6688 HK) to surrender a controlling stake in the Consumer Finance business to state-backed firms.

Arteria Networks (Buy) – Q2 22 Results Reaction: Core Business Growth Intact

By Kirk Boodry

Favorable industry trends like work from home and expanding mobile data usage are helping drive Arteria revenue growth
Headline profits are down but core OP is up when one-time gains last year are stripped out and quarterly results will start to look better in H2 when fully lapped
Management says macro concerns such as inflation and power costs are manageable and FY targets remain unchanged

Hon Hai & Yulon IPO: Media Reports of Electric Vehicle JV 1Q23 Listing, Stock Implications

By Vincent Fernando, CFA

Hon Hai Precision Industry (2317 TT) and Yulon Motor Company (2201 TT) plan to IPO their electric vehicles JV Foxtron Vehicle Technologies in 1Q23E, seeking NT$10bn.
The IPO’s valuation could be a major uplift for Yulon Motor Company (2201 TT)‘s valuation.
Hon Hai Precision Industry (2317 TT): Successful IPO would provide markets proof that its EV platform can create value uplifts again and again in the future. Accumulate.

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Nov 22

Daily Brief Crypto: Implication for Decentralized Exchange Amid the FTX Collapse – A Case of Uniswap and more

By Smartkarma Daily Briefs | Crypto, Daily Briefs

In today’s briefing:

Implication for Decentralized Exchange Amid the FTX Collapse – A Case of Uniswap
Markets Dip Lower as FTX Contagion Spreads

Implication for Decentralized Exchange Amid the FTX Collapse – A Case of Uniswap

By Edward Wu

Despite Centralized exchanges (CEX) being unregulated and opaque in operation, over 90% of crypto transactions happened on CEXs.
DeFi exchanges are transparent and impossible for appropriation, but gain market share very slowly due technically difficult of building on blockchain.
Uniswap is the largest spot decentralized exchange that stands to benefit from capital relocation from CEX to DEX, Uniswap token is a pure governance token without value capture.

Markets Dip Lower as FTX Contagion Spreads

By Kaiko

Price Movements: DEX tokens have been least impacted by the market collapse while L1 tokens have been the worst performers, led by SOL.
Market Liquidity: Uniswap v3 recorded one of its highest volume days ever, although both CEX and DEX volumes have since tumbled.
Derivatives: Binance and Bybit captured FTX’s market share of perpetual futures since the exchange collapsed.

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Nov 22

Daily Brief Financials: Highwealth Construction, Meritz Financial Group, Japan Post Bank, Uniswap, Taiwan Stock Exchange Weighted Index, Alam Sutera Realty, DeXe and more

By Smartkarma Daily Briefs | Daily Briefs, Financials

In today’s briefing:

FTSE TWSE Taiwan Dividend+ Index Rebalance Preview: 46% One-Way Turnover and US$5bn Two-Way Trade
Meritz Merger Event: Swap Conditions, Spread Arb Trade, & K200 Flow Implementation
Meritz Financial Group: Comprehensive Stock Swap + Delisting of Meritz Sec. And Meritz F&M Insurance
Japan Post Bank – Unrealized Gains Down 95%
Implication for Decentralized Exchange Amid the FTX Collapse – A Case of Uniswap
Asia Long Rotation
Alam Sutera – Tear Sheet – Lucror Analytics
Markets Dip Lower as FTX Contagion Spreads

FTSE TWSE Taiwan Dividend+ Index Rebalance Preview: 46% One-Way Turnover and US$5bn Two-Way Trade

Today is the review cutoff for dividend data and stock prices that will be used to select the inclusions and exclusions as well as for capping of index weights.
We see 26 adds and 5 deletes for the index at the December rebalance resulting in one-way turnover of 46% and a one-way trade of TWD 78.1bn (US$2.51bn).
Passive trackers will need to buy over 5 days of ADV on 15 stocks and sell over 5 days of ADV on 19 stocks and this will present trading opportunities.

Meritz Merger Event: Swap Conditions, Spread Arb Trade, & K200 Flow Implementation

By Sanghyun Park

The last trading day to secure appraisal rights is today (the 22nd). You must buy stocks by today to make arb trade possible using appraisal rights.
We should consider LONG FINANCIAL SHORT FIRE/SECURITIES. KSD allows us to maintain borrowed stocks of the target company without redemption procedures if new stocks are listed after the merger.
K200 trackers will have to buy in for FIRE at the close on January 27, whereas SECURITIES will be on March 31. We should design a setup targeting this preemptively.

Meritz Financial Group: Comprehensive Stock Swap + Delisting of Meritz Sec. And Meritz F&M Insurance

By Douglas Kim

After the market close today, Meritz Financial Group (MFG) made one of the biggest announcements in the history of the group.
It announced that Meritz Fire & Marine Insurance and Meritz Securities will become fully owned subsidiaries of Meritz Financial Group. Meritz F&M Insurance and Meritz Securities will also be delisted.
MFG is making a real positive change through the share swaps among the three companies. This will likely have the biggest positive impact will be on MFG.

Japan Post Bank – Unrealized Gains Down 95%

By Daniel Tabbush

Japan Post Bank continues to see cratering net interest income
The company’s significant US CLO exposure is not supporting profit
Total unrealized gains on securities are down 95% in the past six months

Implication for Decentralized Exchange Amid the FTX Collapse – A Case of Uniswap

By Edward Wu

Despite Centralized exchanges (CEX) being unregulated and opaque in operation, over 90% of crypto transactions happened on CEXs.
DeFi exchanges are transparent and impossible for appropriation, but gain market share very slowly due technically difficult of building on blockchain.
Uniswap is the largest spot decentralized exchange that stands to benefit from capital relocation from CEX to DEX, Uniswap token is a pure governance token without value capture.

Asia Long Rotation

By Thomas Schroeder

NKY, ASX and H shares have been our top long bets with rotation now favoring Korea and Taiwan (China as well) at the expense of Japan.
USD weakness call from DXY 113 and 109 makes Asian equities more attractive into early December and an integral part of our rotation theme.
Korea and Taiwan are favored bets on dips. China will run out of steam near A50 12,900 and act as the lead energy driver for Asia.

Alam Sutera – Tear Sheet – Lucror Analytics

By Trung Nguyen

We view Alam Sutera (ASRI) as “High Risk” on the LARA scale, given the company’s refinancing risk amid the challenging financing environment. ASRI’s pre-sales have been soft, which is a concern for rating agencies. We also note the group’s asset concentration and cash-flow volatility. The company was highly reliant on land sales to key partner CFLD until 2021, when CFLD defaulted on debt. Execution risks are increasing due to ASRI’s shift away from developing townships to high-rise buildings.

The company has very low recurring income compared to peers. That said, it has a large and low-cost land bank that is bigger than most peers’. The land bank has high potential value, and could be a source of liquidity, supporting high margins for the business. Positively, ASRI’s successful cash tender offer in October 2022 has alleviated refinancing risk. It now has no significant maturities until 2025.

We maintain our “Stable” Credit Bias, as we expect the company’s operations to remain satisfactory, with some positive FCF, and no significant maturities until 2025.

Controversies are “Immaterial” and the ESG Impact on Credit is “Neutral”.

Markets Dip Lower as FTX Contagion Spreads

By Kaiko

Price Movements: DEX tokens have been least impacted by the market collapse while L1 tokens have been the worst performers, led by SOL.
Market Liquidity: Uniswap v3 recorded one of its highest volume days ever, although both CEX and DEX volumes have since tumbled.
Derivatives: Binance and Bybit captured FTX’s market share of perpetual futures since the exchange collapsed.

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✓ Company Data and News
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Nov 22

Daily Brief Consumer: AXXZIA Inc, Mandarin Oriental International, Lifestyle International Holdings, Ql Resources, JD Health, JD.com Inc., The Walt Disney Co, Honda Motor and more

By Smartkarma Daily Briefs | Consumer, Daily Briefs

In today’s briefing:

AXXZIA (4936 JP) – TOPIX Inclusion Is Likely In February
Mandarin Oriental (MAND SP): Life Is Suite
Lifestyle (1212 HK)’s Scheme Gets Up
KLCI Index Rebalance Preview: No More Glovemakers in the Index (Or How the Mighty Have Fallen)
FTSE China 50 Index Rebalance Preview: JD Health Could Replace Xpeng
Lifestyle International (1212 HK)’s Court Meeting – And that Is a Pass
JD.com (9618 HK): 3Q22, Growth Recovered, Margin Reached Historical High
Disney: Could Iger Sell to Apple?
Honda Motor ADR: Initiation of Coverage – Recent JVs & Key Drivers
Disney Replaces Bob Chapek with Bob Iger – Will The Magic Return at Disney?

AXXZIA (4936 JP) – TOPIX Inclusion Is Likely In February

Just under two weeks ago, AXXZIA Inc (4936 JP) announced it had on that day (9 November) applied to move to TSE Prime from TSE Growth.
It’s an interesting one because of the strange differential between “tradable shares” and “float.”
After some study, I think this could be a TOPIX inclusion at end-Feb 2023, but there are steps to take between now and then.

Mandarin Oriental (MAND SP): Life Is Suite

Hong Kong is – very gradually – rolling back Covid restrictions
That’s a welcome relief for tourists, and for hospitality companies dependent on tourism.
Mandarin Oriental International (MAND SP) is trading cheap at 0.7x P/B against 1.8x on average (five years) pre-Covid.

Lifestyle (1212 HK)’s Scheme Gets Up

Independent shareholders of Lifestyle International Holdings (1212 HK) comfortably voted through the Scheme resolution.
94.93% of stakeholders present (and via proxy) voted FOR, with 5.07% voting AGAINST.
The last day of trading is the 6 December with payment expected on or before the 30 December.

KLCI Index Rebalance Preview: No More Glovemakers in the Index (Or How the Mighty Have Fallen)

Ql Resources (QLG MK) and AMMB Holdings (AMM MK) could replace Hartalega Holdings (HART MK) and Top Glove Corp (TOPG MK) in the Kuala Lumpur Composite Index (KLCI) (FBMKLCI INDEX).
If the changes go through, glove makers will have no representation in the index. At one point in 2020, glove makers made up nearly 20% of the FBMKLCI INDEX.
One-Way turnover at the rebalance will be around 3% and the impact of passive trading will be higher on the inclusions as compared to the deletions.

FTSE China 50 Index Rebalance Preview: JD Health Could Replace Xpeng

At the end of the review period for the December rebalance, we see JD Health (6618 HK) replacing XPeng (9868 HK) in the FTSE China 50 Index.
There is a very slim possibility of Longfor Properties (960) being deleted; it could be replaced with either Yum China Holdings Inc (9987) or PICC Property & Casualty H (2328).
Short interest has stayed rangebound on JD Health (6618 HK) this year, while shorts have gone parabolic on XPeng (9868 HK) over the last few months.

Lifestyle International (1212 HK)’s Court Meeting – And that Is a Pass

By Arun George

Lifestyle International Holdings (1212 HK)’s scheme resolution was approved at today’s court meeting – 94.93% of independent share votes cast FOR (2.31% of all independent shareholders AGAINST).
This is in line with our expectations – in Lifestyle International (1212 HK)’s Wide Spread Heading into the 21 November Vote that despite the wide spread, the offer would succeed.
At the last close and for the 30 December payment date, the gross and annualised spread to the offer is 2.0% and 20.6%, respectively.

JD.com (9618 HK): 3Q22, Growth Recovered, Margin Reached Historical High