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Smartkarma Daily Briefs

Oct 08
0

Daily Brief Equity Bottom-Up: Hero Motocorp (HMCL IN) | Brace for Disappointment and more

By | Daily Briefs, Equity Bottom-Up

In today’s briefing:

  • Hero Motocorp (HMCL IN) | Brace for Disappointment
  • Seven & I – The US Is About to Hit the Brakes
  • BASF India: Catalyzing Chemistry and Possibilities
  • Observability: ServiceNow Acquisition Threatens Dynatrace and Elastic
  • NTGR: Hotspot of a Preview
  • Ciena Corporation: Initiation of Coverage – Partnership With MSAR & Other Drivers

Hero Motocorp (HMCL IN) | Brace for Disappointment

By Pranav Bhavsar

  • Hero Motocorp (HMCL IN) has been outperforming the Nifty 50 over the last 6M
  • Our flash checks done in the south suggests the outperformance may not last long
  • Failure of a model, high competitive intensity, and changing preferences can again lead to high inventory levels leading to a possible correction in wholesales post-festive season. 

Seven & I – The US Is About to Hit the Brakes

By Oshadhi Kumarasiri

  • With OP up by 22% YoY to beat the consensus estimate by ¥2.0bn, Seven & I turned in a strong 2QFY23 along with a considerable upgrade to FY23 guidance.
  • However, the post-earnings price reaction seems to suggest that the market is a bit worried about the short-term performance of Seven & I Holdings (3382 JP)’s US convenience store business.
  • In addition, the struggling non-core businesses whose future remains undecided could also be weighing in on Seven & I’s price performance.

BASF India: Catalyzing Chemistry and Possibilities

By Gauri Anand

  • Pivoting the world’s biggest transformation; addresses chemistry needs of the new economy 
  • These new themes will outgrow world GDP growth – perhaps almost >2x 
  • BASF is systematically aligning to the emerging trends, investing in future technologies and is integrating all of this sustainably in its value chain

Observability: ServiceNow Acquisition Threatens Dynatrace and Elastic

By Aaron Gabin

  • ServiceNow acquired Era Software this week to extend its presence in the observability and log management space.
  • The deal is most threatening to DT/ESTC (we advocate as longs) and SPLK (short) because of ServiceNow’s ability to bundle functionality for larger deals.
  • That said…the observability space remains one of the hottest in digital transformations, and the deal is on net, more validating than threatening to DT/ESTC.

NTGR: Hotspot of a Preview

By Hamed Khorsand

  • NTGR is relying on the back-to-school shopping season to help sell through some of its lingering wireless router inventory as it transitions to higher end models
  • We continue to believe the retail market remains challenging for NTGR and the Company could have experienced difficulty in selling down inventory to desired levels
  • During the third quarter NTGR used Prime Day as an opportunity to reduce inventory for certain Nighthawk wireless routers. We expect the same again during Prime Day on October 11

Ciena Corporation: Initiation of Coverage – Partnership With MSAR & Other Drivers

By Baptista Research

  • This is our first report on Ciena Corporation, a networking systems, services and software player catering primarily to the telecom industry.
  • In spite of the elongated lead times and supply chain challenges, the strong secular demand trends have not shown any sign of abating.
  • In spite of the supply challenges, Ciena had a record quantity of quarter for its WaveLogic 5 shipments.

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Oct 08
0

Daily Brief Event-Driven: Myovant Sciences (MYOV US): Rejects Sumitomo’s $2.5B Bid; Remains Open for Better Offer and more

By | Daily Briefs, Event-Driven

In today’s briefing:

  • Myovant Sciences (MYOV US): Rejects Sumitomo’s $2.5B Bid; Remains Open for Better Offer
  • Shanghai/​​​​​​​​​​​​​​​Shenzhen Northbound Connect: Weekly Moves (7 October 2022)
  • Sumitomo/Myovant: Minorities Takeout
  • Shanghai/​​​​​​​​​​​​​​​Shenzhen Southbound Connect: Weekly Moves (7 October 2022)

Myovant Sciences (MYOV US): Rejects Sumitomo’s $2.5B Bid; Remains Open for Better Offer

By Tina Banerjee

  • Myovant Sciences (MYOV US) rejected $2.5 billion takeover offer from its largest shareholder, Sumitomo Dainippon Pharma Co (4506 JP), as the bid significantly undervalues the company.
  • Amid its tight cash situation, upcoming patent cliff, and ongoing late-stage clinical trials, Sumitomo is not expected to revise its offer upward.
  • New acquisition offer from marketing partner Pfizer is the most likely scenario. Even if the company does not receive any takeover offer, Myovant is capable of running its operating activities.

Shanghai/​​​​​​​​​​​​​​​Shenzhen Northbound Connect: Weekly Moves (7 October 2022)

By David Blennerhassett

Sumitomo/Myovant: Minorities Takeout

By Jesus Rodriguez Aguilar

  • Sumitomo has offered $22.75/share in cash, 27% premium, for the 48% stake it doesn’t hold in Myovant, whose Board has rejected the offer and is open to negotiate.
  • The sell-side forecasts peak sales of over $2 billion for Orgovyx and Myfembree. Myovant also has a co-marketing deal with Pfizer could be worth $3.8 billion in milestones.
  • My TP is $22.84 (in line with consensus and the offer price). The market certainly believes that Sumitomo could be preparing a sweetened offer. Will Orgovyx become a blockbuster?

Shanghai/​​​​​​​​​​​​​​​Shenzhen Southbound Connect: Weekly Moves (7 October 2022)

By David Blennerhassett

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Oct 08
0

Daily Brief Macro: KOSDAQ 150 Rebalance in December Highlighted by Locals and more

By | Daily Briefs, Macro

In today’s briefing:

  • KOSDAQ 150 Rebalance in December Highlighted by Locals

KOSDAQ 150 Rebalance in December Highlighted by Locals

By Douglas Kim

  • This article discusses the potential inclusions and exclusions of KOSDAQ 150 rebalance in December 2022 (especially those that are highlighted by the locals). 
  • The stocks that are potential inclusions in the KOSDAQ 150 index include Sungeel Hitech (365340 KS), HPSP (403870 KS), and CanriaBio. We highlighted 8 companies in the potential inclusion list.
  • The potential exclusions in the KOSDAQ 150 index include Cmg Pharmaceutical (058820 KS), AptaBio Therapeutics (293780 KS), and Eugene Corp (023410 KS). 

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Oct 07
0

Daily Brief TMT/Internet: Kakao Pay, ISC Co Ltd, Globish, Ambarella Inc, Corning Inc, Binance Coin, Xperi, Trade Desk Inc, Xerox Corp and more

By | Daily Briefs, TMT/Internet

In today’s briefing:

  • Kakao Pay: Downsized Rights Offering of Kakao Pay Securities & Potential Selling by Alipay
  • KOSDAQ150 Index Rebalance Preview: Moving in the Right Direction
  • Thai Online Learning Platform Globish Closes US$2.5M Series A+
  • Ambarella Inc: Major Drivers
  • Corning Inc: Facility Expansion & Other Drivers
  • Introducing: Quarterly Market Report
  • ADEA & XPER: The Spin and Price Targets
  • The Trade Desk: The First-Party Data Playbook & Other Drivers
  • Xerox Corp: Acquisition Of Go Inspire & Other Drivers

Kakao Pay: Downsized Rights Offering of Kakao Pay Securities & Potential Selling by Alipay

By Douglas Kim

  • The lack of minority shareholders participation in Kakao Pay Securities rights offering is likely to be viewed negatively by many investors since Kakao Pay may need to inject more capital.
  • On 8 June 2022, Alipay sold 5 million shares of Kakao Pay and Alipay put a lockup on its remaining 46 million shares in Kakao Pay for another 120 days.
  • All in all, we continue to have a Negative view of Kakao Pay. 

KOSDAQ150 Index Rebalance Preview: Moving in the Right Direction

By Brian Freitas

  • With 85% of the review period complete, we see 10 potential changes to the KOSDAQ 150 Index (KOSDQ150 INDEX) at the December rebalance.
  • There are a few stocks that are close adds/deletes on market cap and liquidity and could make it into the final list depending on price/volume over the next few weeks.
  • The potential adds have outperformed the potential deletes over the last month and pre-positioning could continue till the end of the review period.

Thai Online Learning Platform Globish Closes US$2.5M Series A+

By e27

  • Globish conducts 300,000 English and Chinese classes for learners comprising 20 per cent students and 80 per cent working-age people
  • Thailand’s edutech startup Globish, which provides a live online learning platform, has announced closing its US$2.5 million Series A+ funding round.
  • Globish will use the money for expansion into other ASEAN countries. It recently began expanding in Ho Chi Minh City in Vietnam and plans to expand into more markets.

Ambarella Inc: Major Drivers

By Baptista Research

  • Ambarella’s Q2 results were on par with management expectations and surpassed the analyst consensus on Wall Street.
  • The company’s revenue was up 2% from the same period last year, but it was down 10% sequentially.
  • The company’s blended average selling price surpassed $10 due to the considerable year-over-year growth in CV revenue.

Corning Inc: Facility Expansion & Other Drivers

By Baptista Research

  • Corning delivered a mixed set of quarterly results missing out on market expectations with respect to revenues given the challenging environment.
  • Optical communications were the greatest contributor to the growth of this quarter and were a key factor responsible for the company delivering an earnings beat.
  • We provide the stock of Corning with a ‘Buy’ rating and a revision in the target price.

Introducing: Quarterly Market Report

By Kaiko

  • Q3 was a whirlwind dominated by macro volatility, the Merge, and the ongoing fallout from the crypto credit crisis.
  • Yet, one relatively under-the-radar trend caught my attention: Binance’s increasingly bold moves to clinch market supremacy.
  • On July 8th, Binance eliminated trading fees for 13 BTC trading pairs and shortly after removed fees for ETH-BUSD.

ADEA & XPER: The Spin and Price Targets

By Hamed Khorsand

  • Adeia (ADEA) spun out Xperi Inc. (XPER) to shareholders. We are updating our coverage by downgrading ADEA to Buy Rating from Top Pick, initiating coverage of XPER with Top Pick.
  • The separation of the two businesses should allow the markets to appropriately price each stock. This should lead to a higher overall valuation compared to when the companies were together.
  • XPER is our Top Pick due to the multiple revenue opportunities from new products over the next 12 months.

The Trade Desk: The First-Party Data Playbook & Other Drivers

By Baptista Research

  • Trade Desk’s revenues have continued to grow over the past quarter and the company gained market share in spite of some macroeconomic uncertainty.
  • The worldwide pressure on Google appears to be creating a market opportunity for Trade Desk.
  • The company launched its first-party playbook teaching brands to have a self-assessment for companies and their first-party data for the companies to identify their potential steps in the journey of their first-party data.

Xerox Corp: Acquisition Of Go Inspire & Other Drivers

By Baptista Research

  • In spite of macroeconomic challenges, Xerox managed to deliver an earnings beat in the last quarterly result.
  • The signings of its content and capture business, including processing, data extraction, and digital mailroom services, grew double digits though the company did miss out on revenues.
  • Also, it has launched a worldwide intelligent document process offering to strengthen its content and capture capabilities.

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Oct 07
0

Daily Brief Industrials: Keppel Corp, Renesas Electronics, Sichuan Road&Bridge Co Lt A and more

By | Daily Briefs, Industrials

In today’s briefing:

  • Keppel O&M Spin-Off Approaching Quickly
  • Renesas (6723 JP): Steradian Acquisition Supports Alliance with Tata
  • State Construction Firm to Buy 50% of East African Potash Mine

Keppel O&M Spin-Off Approaching Quickly

By Travis Lundy

  • After 18mos of hints, and two rights recapitalisations at Sembcorp Marine (SMM SP), SMM and Keppel Corp (KEP SP) announced a deal to merge their O&M businesses at end-April.
  • Keppel shareholders would receive ~18 shares of SMM per share of Keppel owned, Keppel spins out the equity of its legacy rig assets and leaves the O&M biz clean.
  • The structure announced lets us examine “forward KEP”, and anticipate interest and valuations post-spin, which is “supposed to” happen in Q4. We’re in Q4 now, and Keppel is interesting here.

Renesas (6723 JP): Steradian Acquisition Supports Alliance with Tata

By Scott Foster

  • Acquisition of Steradian Semiconductors complements Renesas’ partnership with Tata Group and expands its presence in India. 
  • Follows purchase of Reality Analytics of the U.S. and Celeno Communications of Israel. Global footprint growing, technological sophistication rising to meet ADAS, AI and IIoT requirements.
  • P/E below 10x on current guidance, but vulnerable to semiconductor down-cycle. Accumulate for long-term potential.

State Construction Firm to Buy 50% of East African Potash Mine

By Caixin Global

  • State-owned infrastructure construction firm Sichuan Road and Bridge Group Co. Ltd. (SRBG) is planning to acquire a 50% stake in a major potash mine in East Africa in its latest push into the mining industry.
  • Chengdu-headquartered SRBG has signed a $166 million deal to acquire half the stake in the Colluli Potash Project in Eritrea from Australian fertilizer developer Danakali Ltd.
  • Once the deal is finalized, the Colluli potash mine will be SRBG’s second mining project in Eritrea

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Oct 07
0

Daily Brief Industrials: Keppel Corp, Renesas Electronics, Sichuan Road&Bridge Co Lt A and more

By | Daily Briefs, Industrials

In today’s briefing:

  • Keppel O&M Spin-Off Approaching Quickly
  • Renesas (6723 JP): Steradian Acquisition Supports Alliance with Tata
  • State Construction Firm to Buy 50% of East African Potash Mine

Keppel O&M Spin-Off Approaching Quickly

By Travis Lundy

  • After 18mos of hints, and two rights recapitalisations at Sembcorp Marine (SMM SP), SMM and Keppel Corp (KEP SP) announced a deal to merge their O&M businesses at end-April.
  • Keppel shareholders would receive ~18 shares of SMM per share of Keppel owned, Keppel spins out the equity of its legacy rig assets and leaves the O&M biz clean.
  • The structure announced lets us examine “forward KEP”, and anticipate interest and valuations post-spin, which is “supposed to” happen in Q4. We’re in Q4 now, and Keppel is interesting here.

Renesas (6723 JP): Steradian Acquisition Supports Alliance with Tata

By Scott Foster

  • Acquisition of Steradian Semiconductors complements Renesas’ partnership with Tata Group and expands its presence in India. 
  • Follows purchase of Reality Analytics of the U.S. and Celeno Communications of Israel. Global footprint growing, technological sophistication rising to meet ADAS, AI and IIoT requirements.
  • P/E below 10x on current guidance, but vulnerable to semiconductor down-cycle. Accumulate for long-term potential.

State Construction Firm to Buy 50% of East African Potash Mine

By Caixin Global

  • State-owned infrastructure construction firm Sichuan Road and Bridge Group Co. Ltd. (SRBG) is planning to acquire a 50% stake in a major potash mine in East Africa in its latest push into the mining industry.
  • Chengdu-headquartered SRBG has signed a $166 million deal to acquire half the stake in the Colluli Potash Project in Eritrea from Australian fertilizer developer Danakali Ltd.
  • Once the deal is finalized, the Colluli potash mine will be SRBG’s second mining project in Eritrea

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Oct 07
0

Daily Brief Energy/Materials: Eagle Cement Corp, DuPont, Growatt Technology, Williams Cos and more

By | Daily Briefs, Energy & Materials Sector

In today’s briefing:

  • San Miguel Turns Its Sights To Eagle Cement
  • Eagle Cement’s Potential MTO of PHP22.02 from San Miguel
  • DuPont de Nemours: Micromax Launch & Other Drivers
  • Growatt IPO: Strong Potential Amidst Increasing Demand for Energy Solutions
  • The Williams Companies Inc: The NorTex Midstream Acquisition & Other Drivers

San Miguel Turns Its Sights To Eagle Cement

By David Blennerhassett

Eagle Cement’s Potential MTO of PHP22.02 from San Miguel

By Arun George

  • Eagle Cement Corp (EAGLE PM)/ECC’s selling shareholders (88.50% of the outstanding shares) have signed a SPA to sell their stake to San Miguel (SMC PM) at PHP22.02 per share.
  • Post-Completion of the SPA, San Miguel will be required to launch a mandatory tender offer to acquire the remaining 11.50% minority shares at PHP22.02 per share. 
  • As the regulator previously viewed San Miguel and ECC as part of the same group, regulatory approval should be forthcoming. At the last close, the gross spread is 14.1%.

DuPont de Nemours: Micromax Launch & Other Drivers

By Baptista Research

  • DuPont delivered a solid set of quarterly results in a challenging environment.
  • The Roger acquisition also made great progress and DuPont is supposed to close the deal in the next quarter.
  • Also, DuPont continues to actively invest in both introducing new products and advancing the technology within its existing product portfolio.

Growatt IPO: Strong Potential Amidst Increasing Demand for Energy Solutions

By Shifara Samsudeen, ACMA, CGMA

  • Growatt Technology (1833969D CH) is a distributed energy solution provider looking to list in the Hong Kong Stock Exchange. The company plans to raise proceeds of US$ 500m.
  • The company has the #1 market share for PV inverters and energy storage inverters, allowing them strong potential to benefit from the growing market.
  • The company was able to experience strong revenue growth amidst increasing demand for energy solutions globally. Growatt’s margins also have improved with scale, making us largely positive on the company.

The Williams Companies Inc: The NorTex Midstream Acquisition & Other Drivers

By Baptista Research

  • The Williams Companies delivered a solid result in the second quarter surpassing Wall Street expectations on all counts.
  • With 14% growth, the second quarter continued the year’s promising start, reflecting both the success of the company’s core business and the potential gains from its upstream joint ventures.
  • Increased maintenance work during the current year’s second quarter contributed to greater operating and maintenance expenditures.

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Oct 07
0

Daily Brief Health Care: Tokyo Stock Exchange Tokyo Price Index Topix, Regeneron Pharmaceuticals and more

By | Daily Briefs, Healthcare

In today’s briefing:

  • Companies Should Communicate Their Human Resources Strategy Rather than Detailed Disclosure Rules
  • Regeneron Pharmaceuticals: The Libtayo Stake Acquisition & Other Driver

Companies Should Communicate Their Human Resources Strategy Rather than Detailed Disclosure Rules

By Aki Matsumoto

  • Companies had expected detailed rules, as with various disclosure documents, but was puzzled by government’s guidelines, which were conceptual and didn’t provide guidance on what to disclose and how much.
  • It is likely that the disclosure in annual securities reports, which are legal documents, will fill the space by disclosing items that are specifically identified and easy to show quantitatively.
  • Companies that cannot clearly explain their policies on investment in human capital and human resource strategies in their management strategies are unlikely to attract human resources.

Regeneron Pharmaceuticals: The Libtayo Stake Acquisition & Other Driver

By Baptista Research

  • Regeneron had a successful second quarter surpassing Wall Street expectations on all counts with noteworthy performance in every segment.
  • The company made considerable pipeline progress in addition to having good commercial execution, with 3 regulatory approvals, 2 accepted regulatory filings, and 1 positive Phase III readout.
  • After five years and more than 450,000 patients treated since its launch, Dupixent is still expanding at a good rate.

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Oct 07
0

Daily Brief Financials: S&P 500, Sygnum, ICBC (H), Bizbaz, CIFI Holdings, Manulife US REIT (MUST) and more

By | Daily Briefs, Financials

In today’s briefing:

  • SPX Transition Twist Post Squeeze
  • Thai Media Giant to Work with Sygnum for $300m Hybrid Equity-NFT Raise
  • EQD | HSBA Vs ICBC (5 HK,1398 HK): Trade a Relative Value Vol Spread
  • Bizbaz Raises US$4M in Seed Funding Led by HSBC AM to Accelerate Product Development
  • Morning Views Asia: CIFI Holdings, Times China
  • Manulife US REIT: Resilient Amidst Evolving Dynamics

SPX Transition Twist Post Squeeze

By Thomas Schroeder

  • Update to our transition to bullish risk hinges on SPX 3,650/30 on the next downside test. Below would see that new low, holding more bullish.
  • NKY, ASX, STI and Eurostoxx 50 met initial buy levels and now meeting reduce PT’s. Yields and the USD are set to rise, inducing a fresh equity draw down.
  • Late October is our cycle window for an ideal equity cycle low where we plan to go long in a bigger way.

Thai Media Giant to Work with Sygnum for $300m Hybrid Equity-NFT Raise

By Tech in Asia

  • Sygnum, a Switzerland-based digital asset bank, has partnered with Thai media giant T&B Media Global.

  • Sygnum will provide the Thai firm with digital asset services, which includes advising in and setting up the hybrid equity-NFT structure, developing metaverse token economic models, and providing custody for traditional tokens.

  • The hybrid equity-NFT structure is meant to provide both issuers and investors with a regulated means of participating in the opportunities presented by the metaverse.

EQD | HSBA Vs ICBC (5 HK,1398 HK): Trade a Relative Value Vol Spread

By Simon Harris

  • We looked at HSBC and ICBC to consider relative vol surfaces 
  • We evaluate relative risks of credit deterioration in China on both stocks
  • We suggest a relative value vol trade that offers good risk reward in various scenarios

Bizbaz Raises US$4M in Seed Funding Led by HSBC AM to Accelerate Product Development

By e27

  • The Bizbaz solutions combine insights from applied behavioural sciences, anthropology, and machine learning technologies.
  • Bizbaz, a Singapore-headquartered customer intelligence and risk assessment company, announced that it had closed a US$4 million seed funding round led by HSBC Asset Management (HSBC AM).
  • Bizbaz aims to empower financial services providers by offering them comprehensive customer intelligence and risk assessment solutions.

Morning Views Asia: CIFI Holdings, Times China

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.

Manulife US REIT: Resilient Amidst Evolving Dynamics

By Geoff Howie

  • Manulife US REIT: Resilient Amidst Evolving Dynamics You can learn something from every single person on your team, no matter their rank or role.” The REIT Manager is Manulife U.S.
  • Real Estate Management Pte Ltd, an indirect wholly owned subsidiary of the Sponsor.

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Oct 07
0

Daily Brief Consumer: Jardine Cycle & Carriage, Tunas Ridean, BYD Co Ltd, Seven & I Holdings, Betagro, Alibaba Group, Sands China Ltd, Shopback, Sundrug Co Ltd and more

By | Consumer, Daily Briefs

In today’s briefing:

  • JCNC Is Overstretched Vs. Astra
  • Tunas Ridean: Sell Or Tender, But Don’t Do Nothing
  • BYD Sales Hit Record High as China Steers Stimulus to Auto Market
  • Seven & I (3382) | U.S. Gas Margins Offset Rising Energy Costs at Home
  • Betagro IPO: Valuation Insights
  • Betagro Pre-IPO -Refiling Updates- Continued Their Upward Trajectory but Paid Itself Large Dividends
  • Alibaba, ICBC, Tencent, and Ping An
  • Sands China Ltd: The Best Value Entry Point in the Sector as EVisa Easing Begins
  • ShopBack Raises $80m from Temasek-Backed 65 Equity Partners
  • Buying Japanese Drug Store Names: Welcia (3141-JP) And Sundrug (9989-JP)

JCNC Is Overstretched Vs. Astra

By David Blennerhassett

  • Jardine Cycle & Carriage (JCNC SP) is currently trading at a ~9% discount to NAV, around the narrowest since the post-Covid nadir in April 2020.
  • JCNC’s recent results highlighted a marked improvement in its unlisted Vietnamese automotive ops. 
  • Weakness in the Indonesian rupiah has taken some of the shine off Astra International (ASII IJ)‘s strong sales growth. 

Tunas Ridean: Sell Or Tender, But Don’t Do Nothing

By David Blennerhassett

  • Indonesian auto dealership play Tunas Ridean (TURI IJ)‘s buyback – and subsequent delisting – has been extended to the 12 October. 
  • TURI shareholders who do not tender – or sell in the market – will be left holding listed scrip.
  • Currently trading a gross spread of ~3% to terms, net of the sales tax levy.

BYD Sales Hit Record High as China Steers Stimulus to Auto Market

By Caixin Global

  • China’s largest new-energy vehicle (NEV) manufacturer BYD Co. Ltd. reported record sales last month as China stepped up stimulus to shore up sluggish economic growth.
  • In September, Hong Kong- and Shenzhen-listed BYD sold 201,259 NEVs, a category that includes electric and hybrid vehicles.
  • The figure was up 183% year-on-year and marked the seventh consecutive month of growth.

Seven & I (3382) | U.S. Gas Margins Offset Rising Energy Costs at Home

By Mark Chadwick

  • 1H results, OP up +26% YoY, were good but in line with the recent Nikkei preview. 
  • The U.S. convenience store operation was the standout performer and the reason for the full year guidance raise
  • We remain bullish on the stock. It is just too cheap relative to global peers

Betagro IPO: Valuation Insights

By Arun George

  • Betagro (BTG TB), Thailand’s leading integrated food company, will open its books for its THB17.4 billion (US$462 million) from 10 to 25 October.
  • We previously discussed the IPO in Betagro IPO: The Bull Case and Betagro IPO: The Bear Case. 
  • Our valuation analysis suggests that Betagro is fully priced at the IPO price. Give the IPO a pass, awaiting a lower entry point.

Betagro Pre-IPO -Refiling Updates- Continued Their Upward Trajectory but Paid Itself Large Dividends

By Clarence Chu

  • Betagro (BTG TB) is looking to raise about US$460m in its Thailand IPO. 
  • Betagro is an integrated agro-industrial and food business in Thailand. Sales continued to stage an upward trajectory, and higher ASPs, combined with a changing sales mix led to expanding profitability.
  • However, the growth in sales hadn’t been uniform across all segments and the bounce in 1H22’s profitability seems to come off a low base as well. 

Alibaba, ICBC, Tencent, and Ping An

By Untying The Gordian Knot

  • The YTD performance of HSI -22%, HSI Tech Index -35%, HSI Properties -18.6%, and continued 23-25% short trading volume are set up for sharp rallies.
  • Investment banks and brokers forecast economic recovery for buying in Q4 2022 or 2023.
  • Overall volume continues to fall [something evident from HKEX share price as well].

Sands China Ltd: The Best Value Entry Point in the Sector as EVisa Easing Begins

By Howard J Klein

  • With five major China mainland markets expected to re-open by November, we see pent up demand sparking daily visitor footfall to Macau.
  • Golden Week total arrivals could reach an aggregate 170,000 despite Beijing’s warning travelers to stay home. 2019 Golden Week drew 665,000 visitors.
  • At HK$19.960 a share at writing, market sentiment does not yet appear to recognize the first meaningful easing in China travel bans since the 2020 lockdowns.

ShopBack Raises $80m from Temasek-Backed 65 Equity Partners

By Tech in Asia

  • ShopBack has entered into a subscription agreement to raise US$80 million in the second tranche of its series F round

  • The Singapore-based shopping and rewards platform’s latest backer is a Temasek-backed investment firm with US$3.3 billion in assets under management.

  • Founded by Henry Chan and Joel Leong in 2014, ShopBack allows users to get cashback from their online and offline transactions

Buying Japanese Drug Store Names: Welcia (3141-JP) And Sundrug (9989-JP)

By Joe Jasper

  • Japan has been a favorite country since late-March, and we have continued to see improvement ever since.
  • Vermilion’s international Group CS-35 Drug Stores, Japan displays bullish price and RS downtrend reversals, giving us added confidence that outperformance is likely to continue
  • The two stocks highlighted today display base breakouts over the last couple of days, making them timely buys. Buy: Welcia Holdings (3141-JP) and Sundrug (9989-JP)

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