Smartkarma Daily Briefs, Author at Smartkarma

Sep 11

Daily Brief Financials: Soho China, Onewo Space-Tech and more

By Smartkarma Daily Briefs | Daily Briefs, Financials

In today’s briefing:

Last Week in Event SPACE: SOHO China, Nikkei 225 Review, SK Chemicals, SingTel, Porsche, Tyro
Onewo IPO: Trade-Offs Vs Peers

Last Week in Event SPACE: SOHO China, Nikkei 225 Review, SK Chemicals, SingTel, Porsche, Tyro

By David Blennerhassett

Soho China (410 HK)‘s Pan Shiyi is resigning to focus on “philanthropic pursuits”. That sounds like “donations”, which can be sourced from the Pans selling their stake in SOHO.
In the Nikkei 225 Annual Review, Nidec (6594 JP), SMC (6273 JP), Hoya (7741 JP) are IN. Unitika (3103 JP), Maruha (1333 JP), and Oki Electric (6703 JP) are OUT.
Volkswagen (VOW GR) confirms its intention to float a portion of its Porsche sports-car brand within weeks, in what is expected to be one of Germany’s largest-ever public debuts.

Onewo IPO: Trade-Offs Vs Peers

By Arun George

Onewo Space-Tech (ONEWO HK), China Vanke (000002 CH)’s property management unit, has begun pre-marketing a US$2.0 billion HKEx IPO.
We previously discussed the IPO in Onewo IPO: The Bull Case and Onewo IPO: The Bear Case.
A comparison with large-cap peers suggests that Onewo offers large-scale with parentco stability at the cost of low growth runaway from undelivered GFA and gross margin.

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Sep 11

Daily Brief Consumer: Samsung Kodex Autos ETF, Giordano International, Tokyo Stock Exchange Tokyo Price Index Topix and more

By Smartkarma Daily Briefs | Consumer, Daily Briefs

In today’s briefing:

Korea ETF Market Size Breakdown from a Flow Trading Perspective
Weekly Deals Digest (11 Sep) – Giordano, DTAC/True, Link Admin, Nitro, Tyro, Ramsay, CALB, Onewo
It Is Crucial that Corporate Governance Practices that Are Formally in Place Actually Function

Korea ETF Market Size Breakdown from a Flow Trading Perspective

By Sanghyun Park

There are 611 ETFs with a combined AUM of ₩76T. Korea is in the global top 7. ₩32T worth of ETFs belongs to local equity, half of which are index-trackers.
The market began to pay attention to the less crowded areas. The result is the rise of sector ETFs. Sector-type has also grown significantly, now with an AUM of ₩8.4T.
Lower predictability causes their rebalancings to be relatively less crowded. That is, the profit effect of acquiring prior information is much more dramatic on the day of rebalancing trading.

Weekly Deals Digest (11 Sep) – Giordano, DTAC/True, Link Admin, Nitro, Tyro, Ramsay, CALB, Onewo

By Arun George

A weekly summary of key developments across ECM and Event-Driven names tracked by us across Hong Kong, Australia, New Zealand, Singapore, Indonesia, Malaysia, Thailand, Korea, India and Chinese ADRs.
ECM developments – Leapmotor (2007699D HK), Onewo Space-Tech (ONEWO HK) and CALB (CALBLZ CH) are pre-marketing a US$1.5 billion, US$2.0 billion and US$2.0 billion HKEx IPOs, respectively.
Event-Driven developments – DTAC/True, Giordano International (709 HK), Link Administration (LNK AU), MyDeal.com.au Ltd (MYD AU), Nitro Software Ltd (NTO AU), Resapp Health (RAP AU), Tyro Payments (TYR AU).

It Is Crucial that Corporate Governance Practices that Are Formally in Place Actually Function

By Aki Matsumoto

The reason why TCFD’s progress is the slowest is that prudent companies are still exploring the minimum line that should be taken by other companies to see how they’re responding.
The lack of specific numerical targets for ensuring diversity, which are not explicitly stated in the Corporate Governance Code, is the main reason for the slow progress.
While some formal progress has been made, such as the establishment of nominating/compensation committees, there are many challenges ahead. Scandals have occurred even in companies that have implemented formal standards.

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Sep 11

Daily Brief Quantitative Analysis: HK Short Interest: Short Spike for Tech Stocks and more

By Smartkarma Daily Briefs | Daily Briefs, Quantitative Analysis

In today’s briefing:

HK Short Interest: Short Spike for Tech Stocks
TWSE Short Interest Weekly (Sep 8th): Taiwan Cement, Realtek, Formosa Plastics

HK Short Interest: Short Spike for Tech Stocks

By Ke Yan, CFA, FRM

We analyzed the latest HK SFC report for aggregate short position as of Sep 2nd.
Top short increases and decreases were tabulated for one week and four week period.
We highlight short spike for Tencent, Meituan, Jd.com, Baidu, and Cosco Shipping.

TWSE Short Interest Weekly (Sep 8th): Taiwan Cement, Realtek, Formosa Plastics

By Ke Yan, CFA, FRM

We analyzed the changes in short interest of TWSE Stocks as of Sep 8th which has an aggregated short interest worth USD12.5bn.
We tabulate league table for top short by value and short as multiple of ADT, as well as weekly increases & decreases in short value, short as multiple of ADT.
We highlight short interest changes in Taiwan Cement, Realtek, Formosa Plastics, China Airlines, Innolux.

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

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Sep 11

Daily Brief ESG: Global Backlash Against ESG (Part I) and more

By Smartkarma Daily Briefs | Daily Briefs, ESG

In today’s briefing:

Global Backlash Against ESG (Part I)
It Is Crucial that Corporate Governance Practices that Are Formally in Place Actually Function

Global Backlash Against ESG (Part I)

By Douglas Kim

This insight highlights the global backlash against ESG. This is a collaborative project between Douglas Kim and Kyle Rudden.
In particular, my insight will focus on three recent places of major backlash against ESG including United Kingdom, Texas, and Florida.
Despite efforts by ESG investors to increase renewables, a return to more BALANCED energy supplies is more likely, expanding the use of nuclear power and domestic oil & gas sources.

It Is Crucial that Corporate Governance Practices that Are Formally in Place Actually Function

By Aki Matsumoto

The reason why TCFD’s progress is the slowest is that prudent companies are still exploring the minimum line that should be taken by other companies to see how they’re responding.
The lack of specific numerical targets for ensuring diversity, which are not explicitly stated in the Corporate Governance Code, is the main reason for the slow progress.
While some formal progress has been made, such as the establishment of nominating/compensation committees, there are many challenges ahead. Scandals have occurred even in companies that have implemented formal standards.

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

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

Sep 11

Daily Brief Thematic (Sector/Industry): E-Commerce in Japan 2021-22: Another High Growth Year and more

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

In today’s briefing:

E-Commerce in Japan 2021-22: Another High Growth Year
GEM Weekly (9 Sep 2022): China FX, Inflation, South Africa GDP; Tencent, Prosus, Naspers
Wynn Resorts Ltd: Among the Best Value Propositions if and when Macau Reopens
China Healthcare Weekly(Sep9)-Innovative Device Policy,Commercial Success Definition,Don’t Be Fooled

E-Commerce in Japan 2021-22: Another High Growth Year

By Michael Causton

E-Commerce sales of physical goods in Japan jumped nearly 9% in FY2021.
Although this was well down on the pandemic-induced surge the year before, it is still higher than in any year since 2016.
This leaves the sector well on track to become the largest single format channel. Total sales finished above ¥20.6 trillion.

GEM Weekly (9 Sep 2022): China FX, Inflation, South Africa GDP; Tencent, Prosus, Naspers

By Wium Malan, CFA

The Global Emerging Markets weekly provides a summary of the key news and related developments impacting the largest countries and constituents of the Global Emerging Markets equity indices.
Macro data points:Chinese foreign reserves, currency, net exports and inflation data, South Africa GDP
Companies mentioned:Tencent (700 HK), Prosus (PRX NA), Naspers (NPN SJ)

Wynn Resorts Ltd: Among the Best Value Propositions if and when Macau Reopens

By Howard J Klein

Wynn parent shares have historically traded significantly above peers due to its upscale player focus in Las Vegas that has remained central in its two Macau properties.
The remaining headwind in China’s covid policy has no certain duration. Until then, Wynn’s Las Vegas and Boston properties offset some negative impacts of Macau cash burn.
Its 52 week high to date hit $105.90, far above peers equally hammered by Beijing zero tolerance policies.

China Healthcare Weekly(Sep9)-Innovative Device Policy,Commercial Success Definition,Don’t Be Fooled

By Xinyao (Criss) Wang

NHSA will set aside a certain market to provide space for innovative medical devices/consumables to explore the market in addition to centralized procurement. However, we tend to be cautiously optimistic.
We think it is important to clarify for investors what constitutes “commercialization success” – That is to generate revenue at scale and stable profitability through the sale of drugs.
All the products that covered by VBP begin to lose logic. Don’t be fooled by those positive interpretations. We are bearish on the sectors with downward logic in long cycle.

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Sep 11

Daily Brief ECM: CALB IPO Preview and more

By Smartkarma Daily Briefs | Daily Briefs, ECM

In today’s briefing:

CALB IPO Preview
Onewo IPO: Trade-Offs Vs Peers

CALB IPO Preview

By Douglas Kim

China Aviation Lithium Battery (CALB) is getting ready for an IPO in Hong Kong.
In the past several days, CALB received the approval from the Hong Kong stock exchange for an IPO.
In the next two years, CALB expects its production capacity for lithium batteries to increase to about 55 GWh which is more than 6x the capacity at end of 2021.

Onewo IPO: Trade-Offs Vs Peers

By Arun George

Onewo Space-Tech (ONEWO HK), China Vanke (000002 CH)’s property management unit, has begun pre-marketing a US$2.0 billion HKEx IPO.
We previously discussed the IPO in Onewo IPO: The Bull Case and Onewo IPO: The Bear Case.
A comparison with large-cap peers suggests that Onewo offers large-scale with parentco stability at the cost of low growth runaway from undelivered GFA and gross margin.

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

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

Sep 11

Daily Brief Event-Driven: MVIS Global Junior Gold Miners Index Rebalance: One Delete & Plenty of Float Changes and more

By Smartkarma Daily Briefs | Daily Briefs, Event-Driven

In today’s briefing:

MVIS Global Junior Gold Miners Index Rebalance: One Delete & Plenty of Float Changes
MVIS Global Rare Earth/Strategic Metals Index Rebalance: Three Adds, Two Deletes
Korea ETF Market Size Breakdown from a Flow Trading Perspective
Last Week in Event SPACE: SOHO China, Nikkei 225 Review, SK Chemicals, SingTel, Porsche, Tyro
Weekly Deals Digest (11 Sep) – Giordano, DTAC/True, Link Admin, Nitro, Tyro, Ramsay, CALB, Onewo
(Mostly) Asia-Pac Weekly Risk Arb Wrap: Tyro, Shidax, Link Admin, Giordano, Hitachi Transport
Index Rebalance & ETF Flow Recap: NKY, HSCEI, REMX, GDXJ, Link Admin

MVIS Global Junior Gold Miners Index Rebalance: One Delete & Plenty of Float Changes

By Brian Freitas

Great Panther (GPL US) is a deletion from the VanEck Vectors Junior Gold Miners ETF (GDXJ US). There are a lot of float changes that will result in passive flows.
One way turnover is estimated at 3.4% and will result in a one-way trade of US$106m at the September rebalance.
Most index constituents have traded poorly over the last few months and the stocks with passive inflows could outperform their peers in the short-term.

MVIS Global Rare Earth/Strategic Metals Index Rebalance: Three Adds, Two Deletes

By Brian Freitas

Sayona Mining (SYA AU), Sigma Lithium (SGML US) and Tianqi Lithium (9696 HK) will replace Australian Strategic Materials (ASM AU) and Sierra Rutile Holdings (SRX AU) in the index.
Sayona Mining (SYA AU) is also an inclusion to the FTSE All-Cap and S&P/ASX 200 on the same day as the VanEck Vectors Rare Earth/Strategic Metals ETF (REMX US) addition.
We had Sayona Mining (SYA AU) and Tianqi Lithium (9696 HK) as potential adds while Australian Strategic Materials (ASM AU) and Sierra Rutile Holdings (SRX AU) were high probability deletes.

Korea ETF Market Size Breakdown from a Flow Trading Perspective

By Sanghyun Park

There are 611 ETFs with a combined AUM of ₩76T. Korea is in the global top 7. ₩32T worth of ETFs belongs to local equity, half of which are index-trackers.
The market began to pay attention to the less crowded areas. The result is the rise of sector ETFs. Sector-type has also grown significantly, now with an AUM of ₩8.4T.
Lower predictability causes their rebalancings to be relatively less crowded. That is, the profit effect of acquiring prior information is much more dramatic on the day of rebalancing trading.

Last Week in Event SPACE: SOHO China, Nikkei 225 Review, SK Chemicals, SingTel, Porsche, Tyro

By David Blennerhassett

Soho China (410 HK)‘s Pan Shiyi is resigning to focus on “philanthropic pursuits”. That sounds like “donations”, which can be sourced from the Pans selling their stake in SOHO.
In the Nikkei 225 Annual Review, Nidec (6594 JP), SMC (6273 JP), Hoya (7741 JP) are IN. Unitika (3103 JP), Maruha (1333 JP), and Oki Electric (6703 JP) are OUT.
Volkswagen (VOW GR) confirms its intention to float a portion of its Porsche sports-car brand within weeks, in what is expected to be one of Germany’s largest-ever public debuts.

Weekly Deals Digest (11 Sep) – Giordano, DTAC/True, Link Admin, Nitro, Tyro, Ramsay, CALB, Onewo

By Arun George

A weekly summary of key developments across ECM and Event-Driven names tracked by us across Hong Kong, Australia, New Zealand, Singapore, Indonesia, Malaysia, Thailand, Korea, India and Chinese ADRs.
ECM developments – Leapmotor (2007699D HK), Onewo Space-Tech (ONEWO HK) and CALB (CALBLZ CH) are pre-marketing a US$1.5 billion, US$2.0 billion and US$2.0 billion HKEx IPOs, respectively.
Event-Driven developments – DTAC/True, Giordano International (709 HK), Link Administration (LNK AU), MyDeal.com.au Ltd (MYD AU), Nitro Software Ltd (NTO AU), Resapp Health (RAP AU), Tyro Payments (TYR AU).

(Mostly) Asia-Pac Weekly Risk Arb Wrap: Tyro, Shidax, Link Admin, Giordano, Hitachi Transport

By David Blennerhassett

There are 49 – mostly firm, mostly Asia-Pac – transactions currently being discussed and analysed on Smartkarma. Inside is a timetable of upcoming key events for each deal.
Two new deals were discussed this week: Potentia’s rejected proposal forTyro Payments (TYR AU) and Oisix ra daichi (3182 JP)‘s tilt for Shidax Corp (4837 JP).
Key updates took place for Link Administration (LNK AU), Giordano International (709 HK), and Hitachi Transport System (9086 JP).

Index Rebalance & ETF Flow Recap: NKY, HSCEI, REMX, GDXJ, Link Admin

By Brian Freitas

The last week had the announcement of the Nikkei 225 (NKY INDEX) September changes and the implementation of the SSE STAR50 (STAR50 INDEX) rebalance.
The coming week will have the implementation of the FTSE AW/AC, FTSE China 50/A50, Taiwan 50/Div+, STI, EPRA Nareit, S&P/ASX, REMX and GDXJ rebalances.
There were large outflows from iShares MSCI ACWI ETF (ACWI US) and iShares MSCI Emerging Markets (EEM US) during the week.

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Sep 10

Daily Brief Singapore: Crowdstrike Holdings Inc, Enphase Energy, Ralph Lauren and more

By Smartkarma Daily Briefs | Daily Briefs, Singapore

In today’s briefing:

CrowdStrike Holdings: Increasing Cybercrime & Ransomware Upside & Other Drivers
Enphase Energy: The GreenCom Networks Acquisition & Other Drivers
Ralph Lauren: Increased Digital Marketing Efforts

CrowdStrike Holdings: Increasing Cybercrime & Ransomware Upside & Other Drivers

By Baptista Research

CrowdStrike saw its quarterly revenue exceed the $500 million threshold for the first time in the last quarter and delivered an all-around beat.
For the second consecutive quarter, gross retention increased to a new high, and dollar-based net retention soared to its highest point in seven quarters.
In the quarter, the public sector also became stronger, fueled by record-breaking success in U.S. federal and international government agencies.

Enphase Energy: The GreenCom Networks Acquisition & Other Drivers

By Baptista Research

Enphase had a good quarter and managed to exceed Wall Street expectations on all counts.
Its total revenue for the second quarter was $530.2 million, an increase of 20% from the previous quarter.
In the third quarter, they supplied microinverters rated at about 1,213 megawatts DC and actuators rated at 132.4-megawatt hours.

Ralph Lauren: Increased Digital Marketing Efforts

By Baptista Research

Ralph Lauren delivered strong results this quarter surpassing revenue expectations of Wall Street as a result of solid growth across all key regions.
Ralph delivered solid consumer metrics, which include increased net promoter scores, purchase intent, and global brand consideration through an engaging mix of performance marketing and purpose-led investments.
We provide the stock of Ralph Lauren with a ‘Hold’ rating and a revision in the target price.

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

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Sep 10

Daily Brief Australia: Tyro Payments and more

By Smartkarma Daily Briefs | Australia, Daily Briefs

In today’s briefing:

Tyro Payments Rejects Potentia’s Proposal. MCB Accepts

Tyro Payments Rejects Potentia’s Proposal. MCB Accepts

By David Blennerhassett

Tyro Payments (TYR AU) has rejected a proposal from a Potentia-led consortium at A$1.27/share, by way of a Scheme.
Mike Cannon-Brookes’ Grok Ventures, holding 12.5% and Tyro’s largest shareholder, has backed the Offer.
Tyro’s board considered the proposal to be materially below Tyro’s fundamental value and highly opportunistic. Tyro’s share price was down 66% ytd prior to Potentia’s approach.

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

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

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Sep 10

Daily Brief Indonesia: Bank Mandiri Persero and more

By Smartkarma Daily Briefs | Daily Briefs, Indonesia

In today’s briefing:

Indonesian Banks 2Q22 Screener; Stick with Bank Mandiri, and Negara Is Our Value Pick

Indonesian Banks 2Q22 Screener; Stick with Bank Mandiri, and Negara Is Our Value Pick

By Victor Galliano

In 2Q22, the six Indonesian banks retain their strong capital adequacy ratios, healthy credit quality and good NPL coverage; yet we see select credit quality headwinds, especially in MSME credit
We maintain our positive view on Bank Mandiri, with its attractive pre-provision profitability and healthy cost of risk, whilst trading on attractive multiples; we prefer Bank Negara to Bank Rakyat
We await stronger signals from Bank Permata for its “turn around” potential, especially if management can improve credit quality, and keep lowering its cost of risk to boost returns

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

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

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