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Smartkarma Daily Briefs

Sep 18
0

Daily Brief Industrials: Keda Industrial Group, CALB, Itochu Corp and more

By | Daily Briefs, Industrials

In today’s briefing:

  • Keda Industrial (600499 CH): Lithium Play Backed by Multi-Pronged Growth Strategies
  • Keda Industrial Group: Concerns About Downturn in Ceramics Machinery Market & Uncompelling Valuation
  • ECM Weekly (18th Sep 2022) – CALB, Onewo, Leapmotor, WCP, Biogene, Socionext, Prop Guru, PayMate
  • Itochu Grabs Eddie Bauer and Barbour

Keda Industrial (600499 CH): Lithium Play Backed by Multi-Pronged Growth Strategies

By Osbert Tang, CFA

  • Through its 43.58% ownership in lithium carbonate producer Lanke Lithium Industry, Keda Industrial Group (600499 CH) is well placed to benefit from the increase in lithium demand.
  • Lanke’s capacity has recently been upgraded to 30,000 tonnes. Also, Keda is adding capacity to its own integrated anode materials factory in Fujian to capture the ever-rising demand. 
  • Overseas ceramic business will see solid growth from key markets in Africa as Keda raises capacity by 65% by FY23. The stock’s valuations are inexpensive relative to peers. 

Keda Industrial Group: Concerns About Downturn in Ceramics Machinery Market & Uncompelling Valuation

By Douglas Kim

  • We are Negative on Keda Industrial over the next year due to a potential downturn in the ceramics machinery market, uncompelling valuations, and concerns about expansion into lithium battery materials. 
  • Keda Industrial Group is one of the world’s leading suppliers of building ceramic machinery and equipment.
  • Its A-Shares listed on Shanghai Stock Exchange and it completed a private placement of GDRs listing the shares in SIX Swiss Exchange in July 2022. 

ECM Weekly (18th Sep 2022) – CALB, Onewo, Leapmotor, WCP, Biogene, Socionext, Prop Guru, PayMate

By Sumeet Singh

  • Aequitas Research puts out a weekly update on the deals that were covered by the team recently along with updates for upcoming IPOs.
  • On the IPO front, a few large Hong Kong IPOs are rumoured to be aiming to launch their bookbuild next week.
  • There was only the Atlas Arteria (ALX AU) mega entitlement offer this week, on the placements front.

Itochu Grabs Eddie Bauer and Barbour

By Michael Causton

  • A few years back, Itochu Corp (8001 JP) announced its intention to aggressively grow its consumer brand business. 
  • It has just confirmed deals with Eddie Bauer and Barbour after a year in which it also signed Reebok and Under Armour.
  • Although a small part of the Itochu empire, the consumer brand business, alongside retail interests such as Familymart, are key to the trading firm’s longer term profits.

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Sep 18
0

Daily Brief Event-Driven: A Walkthrough of Hyundai Department Store Demerger Event and more

By | Daily Briefs, Event-Driven

In today’s briefing:

  • A Walkthrough of Hyundai Department Store Demerger Event
  • Last Week in Event SPACE: NTT, Frasers Hospitality, Genting/Macau, United Tractor, Arb Shockers
  • (Mostly) Asia-Pac Weekly Risk Arb Wrap: Moya, Singapore Medical, Link Admin, Giordano,111 Inc, VNET
  • Hyundai Department Store & Hyundai Greenfood To Conduct Equity Spin-Offs to Create Holdcos & Opcos

A Walkthrough of Hyundai Department Store Demerger Event

By Sanghyun Park

  • This is an equity spinoff where the existing shareholders receive shares in the spun-off company. But this creates two LISTED companies. In such a case, there won’t be appraisal rights.
  • PASSIVE’s selling flow towards the trade suspension tends to be offset by ACTIVE’s buying flow aiming for value accretion. So, developing a timely entry/exit between these opposing flows is critical.
  • Holdco’s 30% rule dynamic generally, in relative terms, leads to an increase in the value of Opco’s stake and a decline in the value of Holdco’s stake.

Last Week in Event SPACE: NTT, Frasers Hospitality, Genting/Macau, United Tractor, Arb Shockers

By David Blennerhassett

  • NTT (9432 JP) results were better than Softbank Corp’s and KDDI’s. The good “drift trade” may still be to be long NTT vs a basket of KDDI and Softbank Corp. 
  • The Frasers Hospitality (FHT SP) Scheme failed.  The non-vocal minority simply didn’t show up. Maybe apathy. Maybe a holiday season. Maybe lack of premium paid encouraged people to not vote.
  • In a surprise move, Genting Bhd (GENT MK)– or Genting Malaysia (GENM MK) – has joined the six incumbents in bidding for new casino licences in Macau.

(Mostly) Asia-Pac Weekly Risk Arb Wrap: Moya, Singapore Medical, Link Admin, Giordano,111 Inc, VNET

By David Blennerhassett

Hyundai Department Store & Hyundai Greenfood To Conduct Equity Spin-Offs to Create Holdcos & Opcos

By Douglas Kim

  • On 16 September, Hyundai Dept Store and Hyundai Greenfood announced that they will complete equity spin-offs to create holding companies structures.
  • It appears that the real reason these companies are trying to set up these structures maybe to raise the control by the major shareholders including Ji-Seon Chung and Kyo-Seon Chung.
  • The spin-off ratio between the two companies is 23.24% for Hyundai Department Store Holdings and 76.76% for Hyundai Department Store. 

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Sep 18
0

Daily Brief Equity Bottom-Up: Keda Industrial (600499 CH): Lithium Play Backed by Multi-Pronged Growth Strategies and more

By | Daily Briefs, Equity Bottom-Up

In today’s briefing:

  • Keda Industrial (600499 CH): Lithium Play Backed by Multi-Pronged Growth Strategies
  • Keda Industrial Group: Concerns About Downturn in Ceramics Machinery Market & Uncompelling Valuation
  • Rakuten’s Netsuper Expands with New Partners
  • Itochu Grabs Eddie Bauer and Barbour

Keda Industrial (600499 CH): Lithium Play Backed by Multi-Pronged Growth Strategies

By Osbert Tang, CFA

  • Through its 43.58% ownership in lithium carbonate producer Lanke Lithium Industry, Keda Industrial Group (600499 CH) is well placed to benefit from the increase in lithium demand.
  • Lanke’s capacity has recently been upgraded to 30,000 tonnes. Also, Keda is adding capacity to its own integrated anode materials factory in Fujian to capture the ever-rising demand. 
  • Overseas ceramic business will see solid growth from key markets in Africa as Keda raises capacity by 65% by FY23. The stock’s valuations are inexpensive relative to peers. 

Keda Industrial Group: Concerns About Downturn in Ceramics Machinery Market & Uncompelling Valuation

By Douglas Kim

  • We are Negative on Keda Industrial over the next year due to a potential downturn in the ceramics machinery market, uncompelling valuations, and concerns about expansion into lithium battery materials. 
  • Keda Industrial Group is one of the world’s leading suppliers of building ceramic machinery and equipment.
  • Its A-Shares listed on Shanghai Stock Exchange and it completed a private placement of GDRs listing the shares in SIX Swiss Exchange in July 2022. 

Rakuten’s Netsuper Expands with New Partners

By Michael Causton

  • The battle for online food sales continues to heat up, with Rakuten and Amazon squaring up to challenge for supremacy. 
  • Although Amazon has signed two of the largest names, Life and Valor, Rakuten is quickly catching up, last month adding Comodi-Iida to existing members, Seiyu, Beisia and Inageya.
  • Other supermarket chains are already preparing to sign-up with Rakuten. 

Itochu Grabs Eddie Bauer and Barbour

By Michael Causton

  • A few years back, Itochu Corp (8001 JP) announced its intention to aggressively grow its consumer brand business. 
  • It has just confirmed deals with Eddie Bauer and Barbour after a year in which it also signed Reebok and Under Armour.
  • Although a small part of the Itochu empire, the consumer brand business, alongside retail interests such as Familymart, are key to the trading firm’s longer term profits.

💡 Before it’s here, it’s on Smartkarma

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  • ✓ Unlimited Research Summaries
  • ✓ Personalised Alerts
  • ✓ Custom Watchlists
  • ✓ Company Data and News
  • ✓ Events & Webinars
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Sep 18
0

Daily Brief TMT/Internet: Link Administration and more

By | Daily Briefs, TMT/Internet

In today’s briefing:

  • (Mostly) Asia-Pac Weekly Risk Arb Wrap: Moya, Singapore Medical, Link Admin, Giordano,111 Inc, VNET

(Mostly) Asia-Pac Weekly Risk Arb Wrap: Moya, Singapore Medical, Link Admin, Giordano,111 Inc, VNET

By David Blennerhassett

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  • ✓ Personalised Alerts
  • ✓ Custom Watchlists
  • ✓ Company Data and News
  • ✓ Events & Webinars
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Sep 18
0

Daily Brief Industrials: Keda Industrial Group, CALB, Itochu Corp and more

By | Daily Briefs, Industrials

In today’s briefing:

  • Keda Industrial (600499 CH): Lithium Play Backed by Multi-Pronged Growth Strategies
  • Keda Industrial Group: Concerns About Downturn in Ceramics Machinery Market & Uncompelling Valuation
  • ECM Weekly (18th Sep 2022) – CALB, Onewo, Leapmotor, WCP, Biogene, Socionext, Prop Guru, PayMate
  • Itochu Grabs Eddie Bauer and Barbour

Keda Industrial (600499 CH): Lithium Play Backed by Multi-Pronged Growth Strategies

By Osbert Tang, CFA

  • Through its 43.58% ownership in lithium carbonate producer Lanke Lithium Industry, Keda Industrial Group (600499 CH) is well placed to benefit from the increase in lithium demand.
  • Lanke’s capacity has recently been upgraded to 30,000 tonnes. Also, Keda is adding capacity to its own integrated anode materials factory in Fujian to capture the ever-rising demand. 
  • Overseas ceramic business will see solid growth from key markets in Africa as Keda raises capacity by 65% by FY23. The stock’s valuations are inexpensive relative to peers. 

Keda Industrial Group: Concerns About Downturn in Ceramics Machinery Market & Uncompelling Valuation

By Douglas Kim

  • We are Negative on Keda Industrial over the next year due to a potential downturn in the ceramics machinery market, uncompelling valuations, and concerns about expansion into lithium battery materials. 
  • Keda Industrial Group is one of the world’s leading suppliers of building ceramic machinery and equipment.
  • Its A-Shares listed on Shanghai Stock Exchange and it completed a private placement of GDRs listing the shares in SIX Swiss Exchange in July 2022. 

ECM Weekly (18th Sep 2022) – CALB, Onewo, Leapmotor, WCP, Biogene, Socionext, Prop Guru, PayMate

By Sumeet Singh

  • Aequitas Research puts out a weekly update on the deals that were covered by the team recently along with updates for upcoming IPOs.
  • On the IPO front, a few large Hong Kong IPOs are rumoured to be aiming to launch their bookbuild next week.
  • There was only the Atlas Arteria (ALX AU) mega entitlement offer this week, on the placements front.

Itochu Grabs Eddie Bauer and Barbour

By Michael Causton

  • A few years back, Itochu Corp (8001 JP) announced its intention to aggressively grow its consumer brand business. 
  • It has just confirmed deals with Eddie Bauer and Barbour after a year in which it also signed Reebok and Under Armour.
  • Although a small part of the Itochu empire, the consumer brand business, alongside retail interests such as Familymart, are key to the trading firm’s longer term profits.

💡 Before it’s here, it’s on Smartkarma

Sign Up for Free

The Smartkarma Preview Pass is your entry to the Independent Investment Research Network

  • ✓ Unlimited Research Summaries
  • ✓ Personalised Alerts
  • ✓ Custom Watchlists
  • ✓ Company Data and News
  • ✓ Events & Webinars
Sign Up for Free
Sep 18
0

Daily Brief Consumer: Hyundai Dept Store Co, Leapmotor, Rakuten Inc and more

By | Consumer, Daily Briefs

In today’s briefing:

  • A Walkthrough of Hyundai Department Store Demerger Event
  • Weekly Deals Digest (18 Sep) – Leapmotor, Onewo, WCP, Link, Ramsay, Giordano, VNET, FHT, Moya
  • Rakuten’s Netsuper Expands with New Partners
  • Hyundai Department Store & Hyundai Greenfood To Conduct Equity Spin-Offs to Create Holdcos & Opcos

A Walkthrough of Hyundai Department Store Demerger Event

By Sanghyun Park

  • This is an equity spinoff where the existing shareholders receive shares in the spun-off company. But this creates two LISTED companies. In such a case, there won’t be appraisal rights.
  • PASSIVE’s selling flow towards the trade suspension tends to be offset by ACTIVE’s buying flow aiming for value accretion. So, developing a timely entry/exit between these opposing flows is critical.
  • Holdco’s 30% rule dynamic generally, in relative terms, leads to an increase in the value of Opco’s stake and a decline in the value of Holdco’s stake.

Weekly Deals Digest (18 Sep) – Leapmotor, Onewo, WCP, Link, Ramsay, Giordano, VNET, FHT, Moya

By Arun George

Rakuten’s Netsuper Expands with New Partners

By Michael Causton

  • The battle for online food sales continues to heat up, with Rakuten and Amazon squaring up to challenge for supremacy. 
  • Although Amazon has signed two of the largest names, Life and Valor, Rakuten is quickly catching up, last month adding Comodi-Iida to existing members, Seiyu, Beisia and Inageya.
  • Other supermarket chains are already preparing to sign-up with Rakuten. 

Hyundai Department Store & Hyundai Greenfood To Conduct Equity Spin-Offs to Create Holdcos & Opcos

By Douglas Kim

  • On 16 September, Hyundai Dept Store and Hyundai Greenfood announced that they will complete equity spin-offs to create holding companies structures.
  • It appears that the real reason these companies are trying to set up these structures maybe to raise the control by the major shareholders including Ji-Seon Chung and Kyo-Seon Chung.
  • The spin-off ratio between the two companies is 23.24% for Hyundai Department Store Holdings and 76.76% for Hyundai Department Store. 

💡 Before it’s here, it’s on Smartkarma

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The Smartkarma Preview Pass is your entry to the Independent Investment Research Network

  • ✓ Unlimited Research Summaries
  • ✓ Personalised Alerts
  • ✓ Custom Watchlists
  • ✓ Company Data and News
  • ✓ Events & Webinars
Sign Up for Free
Sep 17
0

Daily Brief United States: Tether, Howard Hughes Corp, Sherwin Williams Co and more

By | Daily Briefs, United States

In today’s briefing:

  • Updates on Centralized Stablecoins: Reserve Assets, Transparency, and Regulatory Recognition
  • HHC: Tower Opening Affirms FFO Outlook
  • 83: Initial Thoughts On Sherwin-Williams (SHW)

Updates on Centralized Stablecoins: Reserve Assets, Transparency, and Regulatory Recognition

By Edward Wu

  • Benefiting from safer reserve assets and lower regulatory risk, Circle’s USDC is quickly eating into Tether’s USDT market share in recent months
  • USDT is highly used in the crypto on-off-ramp and as a quote currency in trading pairs, while a large share of USDC is locked into Defi protocols
  • BUSD is in its own niche to serve Binance’s ecosystem. The recent move of Binance to only keep BUSD & USDT in its exchange will have a profound impact

HHC: Tower Opening Affirms FFO Outlook

By Hamed Khorsand

  • HHC. announced the opening of 565-unit Ward Village development, Ko’ula. HHC had been forecasting the opening of the new tower at Ward Village since last year
  • The opening results in HHC recognizing revenue from the sale of each unit within the tower. The opening of Ko’ula affirms our outlook for the year
  • The opening of Ko’ula puts HHC on pace to meet 2022 condo sales guidance of $650 million to $700 million

83: Initial Thoughts On Sherwin-Williams (SHW)

By Watchlist Investing

  • I’m currently working on the September issue of Watchlist Deep Dives, which features Sherwin-Williams.
  • My research process is primary-sources focused and that means reading lots of 10K’s, which include a report from the company’s auditors.
  • I was surprised to see that Ernst & Young had served as SHW’s auditor since 1908.

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Sep 17
0

Daily Brief Indonesia: Sino-Ocean Group and more

By | Daily Briefs, Indonesia

In today’s briefing:

  • Weekly Wrap – 16 Sep 2022

Weekly Wrap – 16 Sep 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. Fosun International
  2. China SCE
  3. CIFI Holdings
  4. Vedanta Resources
  5. China Jinmao Holdings

and more…

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Sep 17
0

Daily Brief South Korea: Golfzon Commerce and more

By | Daily Briefs, South Korea

In today’s briefing:

  • Golfzon Commerce IPO Preview

Golfzon Commerce IPO Preview

By Douglas Kim

  • Golfzon Commerce is getting ready to complete its IPO in Korea in October. The total offering amount is from 80.2 billion won to 99.8 billion won. 
  • The expected market cap of the IPO is from 323 billion won to 336 billion won. The book building for the institutional investors starts on 11 October. 
  • Golfzon Commerce operates Golfzon Market (a leading golf shop chain in Korea) and Golping (golf related e-commerce site). 

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Sep 17
0

Daily Brief India: Ajanta Pharma and more

By | Daily Briefs, India

In today’s briefing:

  • Ajanta Pharma (AJP IN): Branded Generics Focus Ensures Consistent Growth

Ajanta Pharma (AJP IN): Branded Generics Focus Ensures Consistent Growth

By Tina Banerjee

  • Ajanta Pharma (AJP IN) has a well-diversified business model in terms of markets and therapies. The company’s largest revenue contributing segment, branded generics is seeing healthy double-digit revenue growth.
  • Ajanta focuses on limited competition product in US. Going forward, the US business will see accelerated growth, driven by new launches. Ajanta plans to file 10–12 ANDAs during FY23.
  • Ajanta has taken 1% price increase across all its market, which should drive margin improvement in coming quarters. The company has guided for EBITDA margin of 26–27% for FY23.

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