Smartkarma Daily Briefs

Celltrion received FDA approval for Omlyclo, the first and only biosimilar designated as interchangeable with Xolair. Ono Pharmaceutical in-licensed drug candidate for polycythemia vera from Ionis Pharmaceuticals.
Sun Pharmaceutical will acquire Checkpoint Therapeutics for an upfront cash payment of $4.10 per share. Syngene is acquiring Emergent’s biologics facility in Baltimore for $36.5M.
Zydus Lifesciences is acquiring 85.6% stake in in Amplitude Surgical for €257M. Sichuan Kelun received China approval for sacituzumab tirumotecan for certain types of non-small cell lung cancer.

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Mar 16

Daily Brief Event-Driven: Gunma Bank (8334) And DHFG (7327) In Integration Talks – ‘Guess The Ratio’ Is ‘Efficiency Vs Value’ and more

By Smartkarma Daily Briefs | Daily Briefs, Event-Driven

In today’s briefing:

Gunma Bank (8334) And DHFG (7327) In Integration Talks – ‘Guess The Ratio’ Is ‘Efficiency Vs Value’
(Mostly) Asia-Pac M&A: Seven & I, ESR Group, Japfa, Soundwill Holdings, Tenma, Naigai Trans Line
Last Week in Event SPACE: Rio Tinto, Proto, CK Hutch, Silk Logistics, HKBN
Tenma Corp (7958 JP): MBO Tender Offer at JPY3,580

Gunma Bank (8334) And DHFG (7327) In Integration Talks – ‘Guess The Ratio’ Is ‘Efficiency Vs Value’

By Travis Lundy

Nikkei Business reported Friday 14 March that Gunma Bank (8334 JP) and Daishi Hokuetsu Financial Group (7327 JP) (“DHFG”) were in talks to integrate to create a Super-Regional Bank
Gunma and Daishi-Hokuetsu are part of the same multiple-regional bank alliances, including the Gunma-Daishi Hokuetsu Alliance since 2021, in order to collaborate regionally, build scale, and lower service provision cost.
As Gunma and Daishi Hokuetsu serve adjacent jurisdictions, and they are already exploring sharing branches, this makes sense. The World with Interest (rates above zero) may cause more integration talk.

(Mostly) Asia-Pac M&A: Seven & I, ESR Group, Japfa, Soundwill Holdings, Tenma, Naigai Trans Line

I tally 58 – mostly firm, mostly Asia-Pac – transactions currently being discussed and analysed on Smartkarma.
Three news new deals discussed this week: Soundwill Holdings (878 HK), Tenma Corp (7958 JP), and Naigai Trans Line (9384 JP).
Key updates/news took place on: Seven & I Holdings (3382 JP), Silk Logistics (SLH AU), ESR Group (1821 HK), Proto Corp (4298 JP), and Japfa Ltd (JAP SP).

Last Week in Event SPACE: Rio Tinto, Proto, CK Hutch, Silk Logistics, HKBN

An independent appraisal repot supports Rio Tinto Ltd (RIO AU) unifying its dual-listed structure. Shareholders will get their say on the 3rd April.
Proto Corp (4298 JP)‘s MBO is the wrong price. The solution here is a really bump or a broken deal if investors keep the share price above the TOB price.
CK Hutchison Holdings (1 HK)gives back some of the recent gains as pro-Beijing media said CK Hutch “should think twice about which side it wants to stand with”.

Tenma Corp (7958 JP): MBO Tender Offer at JPY3,580

By Arun George

Tenma Corp (7958 JP) has recommended an MBO tender offer at JPY3,580 per share, a 37.1% premium to the last close of JPY2,611.
Despite implying a P/B multiple of 0.89x, the offer is attractive compared to historical trading ranges and peer multiples and represents an all-time high.
An irrevocable from Dalton, the largest shareholder, lowers the risk of activist agitation. Given that the offer is reasonable, the required minority acceptance rate of 28.5% is attainable.

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Mar 16

Daily Brief Equity Bottom-Up: Top 10 Korean Stock Picks and Key Catalysts Bi-Weekly (17 March 2025) and more

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

In today’s briefing:

Top 10 Korean Stock Picks and Key Catalysts Bi-Weekly (17 March 2025)
Legend Biotech (LEGN US): Ends 2024 on a Promising Note; Carvykti Growth Prospect Brightens
ZIM Q424 Results, FY25 Guidance: Listen When Management Says “We’re Gonna Earn Much Less This Year”

Top 10 Korean Stock Picks and Key Catalysts Bi-Weekly (17 March 2025)

In this insight, we provide the top 10 stocks picks and key catalysts in the Korean stock market for the two weeks starting 17 March.
Some of the top 10 Korean stock picks in the bi-weekly (starting 17 March) include Kepco Plant Service & Engineering, Hyundai Wia, Poongsan, and Doosan Enerbility.
The biggest near-term negative catalyst on the Korean stock market remains tariffs. The final legal outcome on President Yoon Seok-Yeol is expected to be made by the end of March.

Legend Biotech (LEGN US): Ends 2024 on a Promising Note; Carvykti Growth Prospect Brightens

Legend Biotech Corp (LEGN US) reported better-than-expected 4Q24 result, with revenue and adjusted EPS beating consensus. With 2024 annual revenue of $963M (up 93% YoY), Carvykti nearly achieved blockbuster status.
With manufacturing capacity, indication, and geography expansion, Carvykti should be on accelerated growth path. Annual manufacturing capacity of Carvykti is expected to expand to 10,000 doses to meet demand.
Thus far, more than 5,000 patients have been treated with Carvykti. The drug has an estimated market opportunity of treating 150,000 MM patients eligible for CAR-T therapy.

ZIM Q424 Results, FY25 Guidance: Listen When Management Says “We’re Gonna Earn Much Less This Year”

By Daniel Hellberg

Rates fell by -24% Q/Q in Q424, but ZIM exceeded consensus Q4 revenue & earnings targets
Management guidance & commentary regarding 2025 profitability paints a bleak picture
In our view, investors in container carriers would do well to heed these clear warnings

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Mar 16

Daily Brief Macro: Overview #19 – Don’t Buy the D@nm Dip! and more

By Smartkarma Daily Briefs | Daily Briefs, Macro

In today’s briefing:

Overview #19 – Don’t Buy the D@nm Dip!
China May Restart Allowing Unprofitable Tech Firms to List, Sources Say

Overview #19 – Don’t Buy the D@nm Dip!

By Rikki Malik

A review of recent events/data impacting our investment themes or outlook
More evidence emerging of a regime change in global markets
What is different this time around from previous bear markets

China May Restart Allowing Unprofitable Tech Firms to List, Sources Say

By Caixin Global

China is likely to restart allowing unprofitable tech companies to list on Shanghai’s STAR Market, sources with knowledge of the matter said, showing intensified financing support for technology innovations.
The Shanghai Stock Exchange has recently told several intermediary institutions that it particularly supports the listing of high-tech firms, multiple sources from investment banks and private equity firms told Caixin.
It’s clear that regulators are paving the way for reopening the IPO channel to money-losing tech companies, they said.

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Mar 16

Daily Brief Australia: Pilbara Minerals, Rio Tinto Ltd and more

By Smartkarma Daily Briefs | Australia, Daily Briefs

In today’s briefing:

MV Global Rare Earth/Strategic Metals Index Rebalance: One Delete & Other Changes
Last Week in Event SPACE: Rio Tinto, Proto, CK Hutch, Silk Logistics, HKBN

MV Global Rare Earth/Strategic Metals Index Rebalance: One Delete & Other Changes

Standard Lithium (SLI US) will be deleted from the VanEck Rare Earth/Strategic Me (REMX US) at the close of trading on 21 March.
The constituent change, float changes and capping changes result in an estimated one-way turnover of 8.9% and in a round-trip trade of US$61m.
The largest inflows will be in Pilbara Minerals (PLS AU) and Albemarle (ALB US) while there will be outflows from MP Materials (MP US) and Lynas Corp (LYC AU).

Last Week in Event SPACE: Rio Tinto, Proto, CK Hutch, Silk Logistics, HKBN

An independent appraisal repot supports Rio Tinto Ltd (RIO AU) unifying its dual-listed structure. Shareholders will get their say on the 3rd April.
Proto Corp (4298 JP)‘s MBO is the wrong price. The solution here is a really bump or a broken deal if investors keep the share price above the TOB price.
CK Hutchison Holdings (1 HK)gives back some of the recent gains as pro-Beijing media said CK Hutch “should think twice about which side it wants to stand with”.

Before it’s here, it’s on Smartkarma

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Mar 16

Daily Brief South Korea: Kepco Plant Service & Engineering and more

By Smartkarma Daily Briefs | Daily Briefs, South Korea

In today’s briefing:

Top 10 Korean Stock Picks and Key Catalysts Bi-Weekly (17 March 2025)

Top 10 Korean Stock Picks and Key Catalysts Bi-Weekly (17 March 2025)

In this insight, we provide the top 10 stocks picks and key catalysts in the Korean stock market for the two weeks starting 17 March.
Some of the top 10 Korean stock picks in the bi-weekly (starting 17 March) include Kepco Plant Service & Engineering, Hyundai Wia, Poongsan, and Doosan Enerbility.
The biggest near-term negative catalyst on the Korean stock market remains tariffs. The final legal outcome on President Yoon Seok-Yeol is expected to be made by the end of March.

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

Mar 16

Daily Brief United States: Legend Biotech Corp, Broadcom and more

By Smartkarma Daily Briefs | Daily Briefs, United States

In today’s briefing:

Legend Biotech (LEGN US): Ends 2024 on a Promising Note; Carvykti Growth Prospect Brightens
MV US Listed Semiconductor 25 Index Rebalance: Round-Trip Trade Over US$1.2bn

Legend Biotech (LEGN US): Ends 2024 on a Promising Note; Carvykti Growth Prospect Brightens

Legend Biotech Corp (LEGN US) reported better-than-expected 4Q24 result, with revenue and adjusted EPS beating consensus. With 2024 annual revenue of $963M (up 93% YoY), Carvykti nearly achieved blockbuster status.
With manufacturing capacity, indication, and geography expansion, Carvykti should be on accelerated growth path. Annual manufacturing capacity of Carvykti is expected to expand to 10,000 doses to meet demand.
Thus far, more than 5,000 patients have been treated with Carvykti. The drug has an estimated market opportunity of treating 150,000 MM patients eligible for CAR-T therapy.

MV US Listed Semiconductor 25 Index Rebalance: Round-Trip Trade Over US$1.2bn

There are no constituent changes for the VanEck Vectors Semiconductor (SMH US) ETF in March but there are a lot of float and capping changes.
Estimated one-way turnover is 3% resulting in a round-trip trade of US$1.2bn. Impact on the stocks is small given they are highly liquid.
There is expected to be US$600m to sell in Broadcom from the Technology Select Sector and Invesco S&P500 Equal Weight ETFs at the same time as the selling from VanEck Vectors Semiconductor.

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Mar 16

Most Read: Kuang-Chi Technologies , Samsung SDI, Xiangtan Electric Manufacturing Co,Ltd., Hoa Phat Group Jsc, SGX Rubber Future TSR20, DN Solutions, Waypoint REIT, Daishi Hokuetsu Financial Group, Kepco Plant Service & Engineering and more

By Smartkarma Daily Briefs | Daily Briefs, Most Read

In today’s briefing:

CSI300 Index Rebalance Preview: 7 Changes a Side as Market Trades in a Range
Samsung SDI Capital Raise: A Mega Deal Rarely Seen in the Local Market
CSI 1000 Index Rebalance Preview: US$3.7bn Trade; Adds Outperform as ETFs Face Redemptions
MarketVector Vietnam Local Index Rebalance: One Add, Capping & Float Changes
Plant-based Butadiene Emerges, Thanks To Zeon And Yokohama
EUDR: EC Mandates Due Diligence For All In Rubber Supply Chain Except SMEs
DN Solutions IPO Preview
MV Australia A-REITs Index Rebalance: Waypoint REIT (WPR AU) Deleted
Gunma Bank (8334) And DHFG (7327) In Integration Talks – ‘Guess The Ratio’ Is ‘Efficiency Vs Value’
Top 10 Korean Stock Picks and Key Catalysts Bi-Weekly (17 March 2025)

CSI300 Index Rebalance Preview: 7 Changes a Side as Market Trades in a Range

There could be 7 changes at the June rebalance with the Information Technology sector gaining 3 index spots and the Materials sector losing 3 spots.
We estimate one-way turnover of 1.45% at the rebalance leading to a round-trip trade of CNY 28.1bn (US$3.9bn). There are 6 stocks with over 2x ADV to trade.
There have been redemptions in mainland China ETFs over the last couple of months and that leads to a lower impact on the stocks compared to the last rebalance.

Samsung SDI Capital Raise: A Mega Deal Rarely Seen in the Local Market

By Sanghyun Park

The discount’s tight, but this near-2-trillion-won raise is a rare mega-deal in Korea, despite the issuance ratio below 20%.
Samsung Electronics is in for 150 billion won, but plenty of supply remains. A smooth clearance? Unlikely. This could drive stock rights costs lower as price discovery unfolds.
The optimal approach is to wait for a decline in rights prices and assess hedge costs through single stock futures (or TRS, if doable), given the shorting restrictions.

CSI 1000 Index Rebalance Preview: US$3.7bn Trade; Adds Outperform as ETFs Face Redemptions

With over 85% of the review period now complete, we forecast 100 changes (the maximum permitted) for the CSI 1000 Index at the close on 13 June.
We estimate a one-way turnover of 11% at the rebalance resulting in a round-trip trade of CNY26.9bn (US$3.7bn). The Industrials sector could gain the most index spots.
The forecast adds have outperformed the forecast deletes this calendar year. Part of that can be attributed to the outflows from ETFs tracking the CSI1000 Index.

MarketVector Vietnam Local Index Rebalance: One Add, Capping & Float Changes

Nam A Commercial Joint Stock Bank (NAB VN) will be added to the MarketVector Vietnam Local Index at the close on 21 March.
Estimated one-way turnover is 3.1% and that results in a round-trip trade of US$26m. There are 3 stocks with more than 1x ADV to trade from passives.
Vietnam is on the watchlist of a global index provider for possible reclassification from Frontier to Secondary Emerging Market and that could lead to inflows to the stocks.

Plant-based Butadiene Emerges, Thanks To Zeon And Yokohama

By Vinod Nedumudy

Zeon will develop BR and Yokohama will make tires with it
Facility to be installed at Zeon’s Tokuyama Plant in Shunan City in Japan
Trial production scheduled for 2026 and mass production by 2030

EUDR: EC Mandates Due Diligence For All In Rubber Supply Chain Except SMEs

By Vinod Nedumudy

EC publishes 11 commodities’ scenarios including rubber
Non-SME operators, dealers tasked with due diligence onus
German Rubber Association criticism fails to make impact

DN Solutions IPO Preview

DN Solutions is getting ready to complete its IPO in Korea in May 2025. The IPO price range is from 65,000 won to 89,700 won.
The book building for the institutional investors will last from 22 to 28 April. The expected IPO offering amount is from 1.14 trillion won to 1.57 trillion won.
The IPO price range is based on DN Solutions’ net profit of 317.4 billion won, P/E of 25.2x, and IPO discount rates of 29.1% to 48.6%.

MV Australia A-REITs Index Rebalance: Waypoint REIT (WPR AU) Deleted

Waypoint REIT (WPR AU) will be deleted from the Vaneck Vectors Australian Property ETF (MVA AU) next week. There are float changes and capping changes too.
Estimated one-way turnover is 4.3% and will result in a round-trip trade of A$49m. There are 3 stocks with over 0.5x ADV to trade from passive trackers.
We had Waypoint REIT (WPR AU) as a delete in December, but the stock was not deleted from the index. We had it as a close delete this time.

Gunma Bank (8334) And DHFG (7327) In Integration Talks – ‘Guess The Ratio’ Is ‘Efficiency Vs Value’

By Travis Lundy

Nikkei Business reported Friday 14 March that Gunma Bank (8334 JP) and Daishi Hokuetsu Financial Group (7327 JP) (“DHFG”) were in talks to integrate to create a Super-Regional Bank
Gunma and Daishi-Hokuetsu are part of the same multiple-regional bank alliances, including the Gunma-Daishi Hokuetsu Alliance since 2021, in order to collaborate regionally, build scale, and lower service provision cost.
As Gunma and Daishi Hokuetsu serve adjacent jurisdictions, and they are already exploring sharing branches, this makes sense. The World with Interest (rates above zero) may cause more integration talk.

Top 10 Korean Stock Picks and Key Catalysts Bi-Weekly (17 March 2025)

In this insight, we provide the top 10 stocks picks and key catalysts in the Korean stock market for the two weeks starting 17 March.
Some of the top 10 Korean stock picks in the bi-weekly (starting 17 March) include Kepco Plant Service & Engineering, Hyundai Wia, Poongsan, and Doosan Enerbility.
The biggest near-term negative catalyst on the Korean stock market remains tariffs. The final legal outcome on President Yoon Seok-Yeol is expected to be made by the end of March.

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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✓ Personalised Alerts
✓ Custom Watchlists
✓ Company Analytics and News
✓ Events & Webinars

Mar 16

Daily Brief Japan: Daishi Hokuetsu Financial Group, Seven & I Holdings, Tenma Corp, TSE Tokyo Price Index TOPIX and more

By Smartkarma Daily Briefs | Daily Briefs, Japan

In today’s briefing:

Gunma Bank (8334) And DHFG (7327) In Integration Talks – ‘Guess The Ratio’ Is ‘Efficiency Vs Value’
(Mostly) Asia-Pac M&A: Seven & I, ESR Group, Japfa, Soundwill Holdings, Tenma, Naigai Trans Line
Tenma Corp (7958 JP): MBO Tender Offer at JPY3,580
Translated Materials Differ Between Disclosures in English that Meet Investor Demand and Reluctance

Gunma Bank (8334) And DHFG (7327) In Integration Talks – ‘Guess The Ratio’ Is ‘Efficiency Vs Value’

By Travis Lundy

Nikkei Business reported Friday 14 March that Gunma Bank (8334 JP) and Daishi Hokuetsu Financial Group (7327 JP) (“DHFG”) were in talks to integrate to create a Super-Regional Bank
Gunma and Daishi-Hokuetsu are part of the same multiple-regional bank alliances, including the Gunma-Daishi Hokuetsu Alliance since 2021, in order to collaborate regionally, build scale, and lower service provision cost.
As Gunma and Daishi Hokuetsu serve adjacent jurisdictions, and they are already exploring sharing branches, this makes sense. The World with Interest (rates above zero) may cause more integration talk.

(Mostly) Asia-Pac M&A: Seven & I, ESR Group, Japfa, Soundwill Holdings, Tenma, Naigai Trans Line

I tally 58 – mostly firm, mostly Asia-Pac – transactions currently being discussed and analysed on Smartkarma.
Three news new deals discussed this week: Soundwill Holdings (878 HK), Tenma Corp (7958 JP), and Naigai Trans Line (9384 JP).
Key updates/news took place on: Seven & I Holdings (3382 JP), Silk Logistics (SLH AU), ESR Group (1821 HK), Proto Corp (4298 JP), and Japfa Ltd (JAP SP).

Tenma Corp (7958 JP): MBO Tender Offer at JPY3,580

By Arun George

Tenma Corp (7958 JP) has recommended an MBO tender offer at JPY3,580 per share, a 37.1% premium to the last close of JPY2,611.
Despite implying a P/B multiple of 0.89x, the offer is attractive compared to historical trading ranges and peer multiples and represents an all-time high.
An irrevocable from Dalton, the largest shareholder, lowers the risk of activist agitation. Given that the offer is reasonable, the required minority acceptance rate of 28.5% is attainable.

Translated Materials Differ Between Disclosures in English that Meet Investor Demand and Reluctance

By Aki Matsumoto

In Prime Market where 99% of companies already disclose some material in English, it is a step that is expected to expand the number of disclosure materials disclosed in English.
Companies with 10-20% foreign ownership have followed the TSE’s request to disclose information in English. These companies remain reluctant to disclose information-rich materials in English.
Companies with over 30% foreign ownership improved more than any other group by foreign ownership in disclosing information-rich materials in English, which is result of responding to overseas investor demand.

Before it’s here, it’s on Smartkarma

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✓ Custom Watchlists
✓ Company Data and News
✓ Events & Webinars

Mar 16

Daily Brief Health Care: Legend Biotech Corp and more

By Smartkarma Daily Briefs | Daily Briefs, Healthcare

In today’s briefing:

Legend Biotech (LEGN US): Ends 2024 on a Promising Note; Carvykti Growth Prospect Brightens

Legend Biotech (LEGN US): Ends 2024 on a Promising Note; Carvykti Growth Prospect Brightens