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Smartkarma Daily Briefs

Mar 19
0

Financials: Finblox, AU Small Finance Bank Limited, Tokyo Stock Exchange Tokyo Price Index Topix and more

By | Daily Briefs, Financials

In today’s briefing:

  • Sequoia Joins $3.9m Round of HK Digital Assets Platform
  • Reorganises itself into 10 SBUs to ensure sustainability and scalability
  • Japan’s Governance: What Are the Effective Factors for Stock Returns?

Sequoia Joins $3.9m Round of HK Digital Assets Platform

By Tech in Asia

  • Hong Kong-based Finblox has raised US$3.9 million in a new funding round from fintech and crypto-focused investors including Dragonfly Capital, Sequoia Capital India, and Saison Capital
  • Launched in December 2021, Finblox said it offers one of the highest interest rates in the digital assets space
  • The company generates yield on tokens through a range of strategies, including lending out the assets to financial institutions or trusted decentralized finance protocols.

Reorganises itself into 10 SBUs to ensure sustainability and scalability

By ICICI Securities Limited

  • AU Small Finance Bank (AU) has always remained ahead in pre-empting future business trends and building capabilities to serve the evolving needs of customers.
  • We derive this view from AU’s past initiatives.
  • .
Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Japan’s Governance: What Are the Effective Factors for Stock Returns?

By Aki Matsumoto

  • During the period from December 2020 to February 2022, the increase in foreign ownership and the increase in Tobin’s q contributed to the increase in market capitalization.
  • Since it’s difficult to expect board practices to directly affect market capitalization over one-year, I maintain the hypothesis that improving board practices raise it by leading to improving key actions.
  • Regarding key actions, rather than implementation of individual shareholder return policies alone, systematic implementation of such policies in the context of growth and capital allocation management policies is more effective.

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Mar 19
0

Consumer: Allego and more

By | Consumer, Daily Briefs

In today’s briefing:

  • Powering the Zero-Carbon Future

Powering the Zero-Carbon Future

By subSPAC

  • As automakers race to build the electric future, EV charging companies are looking to capitalize on the energy transformation by building out a national network of chargers to kill range anxiety.
  • Despite these lofty ambitions, EV adoption remains slim across the US, with approximately 3% of all vehicles sold being electric
  • Allego, which has gone public through a deal with Spartan Acquisition Corp, is a bet on the future of the European EV market

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Mar 19
0

TMT: Sea Ltd, Wiwynn Corp and more

By | Daily Briefs, TMT/Internet

In today’s briefing:

  • Sea Ltd.’s Money Machine Is Broken, Downside Is Not Fully Priced-In
  • Wiwynn Corp Placement – Selldown’s Timing Is Curious but Previous Deal Had Performed Well

Sea Ltd.’s Money Machine Is Broken, Downside Is Not Fully Priced-In

By Oshadhi Kumarasiri

  • Perhaps, misled by the Chinese tech rally due to the change in stance from the Chinese Government, Sea’s shares rose by 33% compared to the broader market’s 8.3%.
  • With fundamentals deteriorating and the Federal Reserve signalling an aggressive rate hike outlook, Sea Ltd (SE US)’s 33% move seems unwarranted.
  • Meanwhile, the downside potential is quite significant as Sea trades at a significant FY+2 EV/Sales premium to regional peers whose cyclical bottoms are unknown.

Wiwynn Corp Placement – Selldown’s Timing Is Curious but Previous Deal Had Performed Well

By Clarence Chu

  • Wistron Corp (3231 TT) aims to raise around US$204m (NT$5.8bn) via selling 3.3% of its stake in subsidiary, Wiwynn Corp (6669 TT) . This would not be a clean-up.
  • The timing is curious given Wiwynn having just announced its plans to offer up to 17m new shares in a primary follow-on offer. 
  • In this note, we will talk about the firm’s track record and run the deal through our ECM framework.

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Mar 19
0

Equity Capital Markets: Softbank Group, Wiwynn Corp and more

By | Daily Briefs, ECM

In today’s briefing:

  • Softbank – Why We Think Arm Is Worth Less Than $10bn
  • Wiwynn Corp Placement – Selldown’s Timing Is Curious but Previous Deal Had Performed Well

Softbank – Why We Think Arm Is Worth Less Than $10bn

By Mio Kato

  • Softbank is apparently trying to garner a $50bn valuation for Arm at its IPO and secure $8bn in margin loans on the back of that.
  • We think that is a stretch though it is certainly not impossible that it would succeed. 
  • However, in terms of real value we suspect Arm could be worth less than $10bn and articulate why below.

Wiwynn Corp Placement – Selldown’s Timing Is Curious but Previous Deal Had Performed Well

By Clarence Chu

  • Wistron Corp (3231 TT) aims to raise around US$204m (NT$5.8bn) via selling 3.3% of its stake in subsidiary, Wiwynn Corp (6669 TT) . This would not be a clean-up.
  • The timing is curious given Wiwynn having just announced its plans to offer up to 17m new shares in a primary follow-on offer. 
  • In this note, we will talk about the firm’s track record and run the deal through our ECM framework.

Before it’s here, it’s on Smartkarma

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Mar 19
0

China: China Conch Venture Holdings, Finblox, Agile Property Holdings, Sunac China Holdings and more

By | China, Daily Briefs

In today’s briefing:

  • China Conch Venture (586 HK): Last Day Of Entitlement
  • Sequoia Joins $3.9m Round of HK Digital Assets Platform
  • Chinese Property Weekly – 18 March 2022 – Lucror Analytics
  • Weekly Wrap – 18 Mar 2022

China Conch Venture (586 HK): Last Day Of Entitlement

By David Blennerhassett

  • Today (18 March) is the last day of dealing in China Conch Venture Holdings (586 HK) shares on a cum-entitlement basis for the Conch Environment Protection (CEEP) spin-off.
  • CEEP is expected to commence trading on the 30 March. The Listing Document is expected to be issued on or around the 22 March.
  • Separately, I see CCV trading at a 14% premium to its NAV, around its most extreme-ever level. 

Sequoia Joins $3.9m Round of HK Digital Assets Platform

By Tech in Asia

  • Hong Kong-based Finblox has raised US$3.9 million in a new funding round from fintech and crypto-focused investors including Dragonfly Capital, Sequoia Capital India, and Saison Capital
  • Launched in December 2021, Finblox said it offers one of the highest interest rates in the digital assets space
  • The company generates yield on tokens through a range of strategies, including lending out the assets to financial institutions or trusted decentralized finance protocols.

Chinese Property Weekly – 18 March 2022 – Lucror Analytics

By Charles Macgregor

The Chinese Property Weekly focuses on providing updates in the Chinese real-estate sector, including recent regulatory and company developments, top and bottom performers, rating actions, as well as a list of bond maturities in the next 30 days.

Weekly Wrap – 18 Mar 2022

By Charles Macgregor

Lucror Analytics Weekly Wraps provide an overview of all Morning Views comments and reports published by our analyst team in the past week, and also showcase a list of the most-read reports.

In this Insight:

  1. CIFI Holdings
  2. China Jinmao Holdings
  3. Kaisa Group Holdings
  4. Guangzhou R&F Properties
  5. Sunac China Holdings

and more…

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Mar 19
0

Singapore: Sea Ltd and more

By | Daily Briefs, Singapore

In today’s briefing:

  • Sea Ltd.’s Money Machine Is Broken, Downside Is Not Fully Priced-In

Sea Ltd.’s Money Machine Is Broken, Downside Is Not Fully Priced-In

By Oshadhi Kumarasiri

  • Perhaps, misled by the Chinese tech rally due to the change in stance from the Chinese Government, Sea’s shares rose by 33% compared to the broader market’s 8.3%.
  • With fundamentals deteriorating and the Federal Reserve signalling an aggressive rate hike outlook, Sea Ltd (SE US)’s 33% move seems unwarranted.
  • Meanwhile, the downside potential is quite significant as Sea trades at a significant FY+2 EV/Sales premium to regional peers whose cyclical bottoms are unknown.

Before it’s here, it’s on Smartkarma

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Mar 19
0

Event-Driven: China Conch Venture Holdings, Boskalis Westminster and more

By | Daily Briefs, Event-Driven

In today’s briefing:

  • China Conch Venture (586 HK): Last Day Of Entitlement
  • HAL Holding/​Royal Boskalis Westminster: Over the 50% Threshold

China Conch Venture (586 HK): Last Day Of Entitlement

By David Blennerhassett

  • Today (18 March) is the last day of dealing in China Conch Venture Holdings (586 HK) shares on a cum-entitlement basis for the Conch Environment Protection (CEEP) spin-off.
  • CEEP is expected to commence trading on the 30 March. The Listing Document is expected to be issued on or around the 22 March.
  • Separately, I see CCV trading at a 14% premium to its NAV, around its most extreme-ever level. 

HAL Holding/​Royal Boskalis Westminster: Over the 50% Threshold

By Jesus Rodriguez Aguilar

  • After some purchases in the market (at offer price), HAL Holding and concert parties have a 50.5% stake. HAL will not use the additional 4.3% voting rights before offer clearance.
  • If acceptances are below the squeeze-out threshold (95%), the target will usually co-operate so that the offeror will take full control and delist. Possible measures involve diluting the holdouts.
  • There are grounds for a sweetening of the offer. The market thinks so and the shares are trading 0.3% above the offer price, but HAL has a strong hand.

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Mar 19
0

Japan: Softbank Group, W Scope Corp, Sunac China Holdings, Tokyo Stock Exchange Tokyo Price Index Topix and more

By | Daily Briefs, Japan

In today’s briefing:

  • Softbank – Why We Think Arm Is Worth Less Than $10bn
  • W Scope (6619): Wrong Victim of Nickel Price Surge
  • Weekly Wrap – 18 Mar 2022
  • Japan’s Governance: What Are the Effective Factors for Stock Returns?

Softbank – Why We Think Arm Is Worth Less Than $10bn

By Mio Kato

  • Softbank is apparently trying to garner a $50bn valuation for Arm at its IPO and secure $8bn in margin loans on the back of that.
  • We think that is a stretch though it is certainly not impossible that it would succeed. 
  • However, in terms of real value we suspect Arm could be worth less than $10bn and articulate why below.

W Scope (6619): Wrong Victim of Nickel Price Surge

By Henry Soediarko

  • Nickel price was the catalyst for the share price underperformance in the last 2 weeks, especially after the Russian invasion of Ukraine which drove it up to a 100% increase.
  • Its main product is a lithium-ion secondary battery separator that is critical for rechargeable battery safety. Thus the sell-off due to the higher commodity price especially nickel is unwarranted.
  • W Scope Corp (6619 JP) share price has underperformed the NCM and LFP battery makers presents a compelling buying opportunity. 

Weekly Wrap – 18 Mar 2022

By Charles Macgregor

Lucror Analytics Weekly Wraps provide an overview of all Morning Views comments and reports published by our analyst team in the past week, and also showcase a list of the most-read reports.

In this Insight:

  1. CIFI Holdings
  2. China Jinmao Holdings
  3. Kaisa Group Holdings
  4. Guangzhou R&F Properties
  5. Sunac China Holdings

and more…

Japan’s Governance: What Are the Effective Factors for Stock Returns?

By Aki Matsumoto

  • During the period from December 2020 to February 2022, the increase in foreign ownership and the increase in Tobin’s q contributed to the increase in market capitalization.
  • Since it’s difficult to expect board practices to directly affect market capitalization over one-year, I maintain the hypothesis that improving board practices raise it by leading to improving key actions.
  • Regarding key actions, rather than implementation of individual shareholder return policies alone, systematic implementation of such policies in the context of growth and capital allocation management policies is more effective.

Before it’s here, it’s on Smartkarma

Learn More
Mar 19
0

Health Care: Eubiologics and more

By | Daily Briefs, Healthcare

In today’s briefing:

  • EuBiologics (206650 KS): Base Business Recovery; COVID Vaccine Undergoing Phase 3 Trial

EuBiologics (206650 KS): Base Business Recovery; COVID Vaccine Undergoing Phase 3 Trial

By Tina Banerjee

  • Eubiologics (206650 KS) signed contract with UNICEF to deliver 67.1 million doses of its oral cholera vaccine, Euvichol-Plus, through 2023. Euvichol-Plus is the cash cow for the company.
  • The company’s COVID-19 vaccine EuCorVac-19 is in phase 3 trial and is one of the early movers among Korean vaccine manufacturers in terms of clinical timeline.
  • EuBiologics has successfully diversified portfolio and its pipeline of non-cholera vaccine and non-vaccine product candidates are also progressing, thereby lending long-term visibility beyond COVID.

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Mar 19
0

Equity Bottom-Up: Sea Ltd, W Scope Corp, Eubiologics and more

By | Daily Briefs, Equity Bottom-Up

In today’s briefing:

  • Sea Ltd.’s Money Machine Is Broken, Downside Is Not Fully Priced-In
  • W Scope (6619): Wrong Victim of Nickel Price Surge
  • EuBiologics (206650 KS): Base Business Recovery; COVID Vaccine Undergoing Phase 3 Trial

Sea Ltd.’s Money Machine Is Broken, Downside Is Not Fully Priced-In

By Oshadhi Kumarasiri

  • Perhaps, misled by the Chinese tech rally due to the change in stance from the Chinese Government, Sea’s shares rose by 33% compared to the broader market’s 8.3%.
  • With fundamentals deteriorating and the Federal Reserve signalling an aggressive rate hike outlook, Sea Ltd (SE US)’s 33% move seems unwarranted.
  • Meanwhile, the downside potential is quite significant as Sea trades at a significant FY+2 EV/Sales premium to regional peers whose cyclical bottoms are unknown.

W Scope (6619): Wrong Victim of Nickel Price Surge

By Henry Soediarko

  • Nickel price was the catalyst for the share price underperformance in the last 2 weeks, especially after the Russian invasion of Ukraine which drove it up to a 100% increase.
  • Its main product is a lithium-ion secondary battery separator that is critical for rechargeable battery safety. Thus the sell-off due to the higher commodity price especially nickel is unwarranted.
  • W Scope Corp (6619 JP) share price has underperformed the NCM and LFP battery makers presents a compelling buying opportunity. 

EuBiologics (206650 KS): Base Business Recovery; COVID Vaccine Undergoing Phase 3 Trial

By Tina Banerjee

  • Eubiologics (206650 KS) signed contract with UNICEF to deliver 67.1 million doses of its oral cholera vaccine, Euvichol-Plus, through 2023. Euvichol-Plus is the cash cow for the company.
  • The company’s COVID-19 vaccine EuCorVac-19 is in phase 3 trial and is one of the early movers among Korean vaccine manufacturers in terms of clinical timeline.
  • EuBiologics has successfully diversified portfolio and its pipeline of non-cholera vaccine and non-vaccine product candidates are also progressing, thereby lending long-term visibility beyond COVID.

Related tickers: Sea Ltd (SE.N), W Scope Corp (6619.T), Eubiologics (206650.KQ)

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