Smartkarma Daily Briefs

• The TIP Taiwan Select High Dividend ETF (00919 TW) tracks the TIP Customized Taiwan Select High Dividend Index and has an AUM of TWD 284bn (US$8.7bn).
• We forecast 8 changes a side at the December rebalance with an estimated one-way turnover of around 15.8% and a round-trip trade of around US$2.75bn.
• An equal weighted basket of potential inclusions has outperformed an equal weighted basket of potential deletions since beginning September with a pick-up in pace over the last 2-3 weeks.

• The S.F. Holding (002352 CH) H-shares are being offered at a price range of HK$32.3-36.3/share, a discount of 20.2%-29% to the A-shares. The max raise (including oversubscription) is US$912m.
• Unlike Midea Group (300 HK), the S.F. Holding (002352 CH) H-shares will not get Fast Entry to any indices. Southbound Stock Connect inclusion will take place on 23 December.
• With no index inclusion in the short-term, the H-shares discount to the A-shares should remain wide. The H-shares could become short sell eligible in February.

• SF Holding’s HKEX listing launched on Tuesday, November 19th; deal to be priced by 26th
• SF hopes to raise about US$800 mn, less than originally anticipated in financial media
• About one quarter of the offering will be taken up by ten cornerstone investors

• The third quarter 2024 financial results for Lyft, Inc. provide a complex picture of the company’s current standing and future outlook.
• On the positive side, Lyft reported gross bookings exceeding $4.1 billion, marking a 16% year-over-year increase.
• The company also saw strong demand across its services with a 9% growth in active riders and a 6% rise in ride frequency, propelled by various strategic initiatives such as the ‘Price Lock’ feature aimed at commuters.

Melrose Industries’ H224 trading has been in line with management’s expectations despite the volatility in the civil aerospace market, highlighting the strength of the business, in particular in the aftermarket. As 2024 draws to a close and investors look to focus increasingly on FY25, Melrose’s valuation becomes increasingly attractive.

• KULR Technology Group, Inc. develops and commercializes high-performance thermal management technologies for electronics, batteries, and other components across a range of applications.
• Currently, it is focused on high performance aerospace and Department of Defense applications, such as space exploration, satellite communications, and underwater vehicles, and applying them to mass market commercial applications, such as lithium-ion battery energy storage, electric vehicles, 5G, cloud computer infrastructure, consumer and industrial devices.
• It is also applying its zero-vibration technology to fans in commercial markets which has already resulted in a licensing agreement.

• Reforms transforming returns – Although the demand environment remains somewhat mixed, we believe that demand has bottomed for the key product Electronic Discharge Machines.
• Q1-3 FY12/24 results highlighted that definitive progress is being made in terms of raising returns through structural reforms.
• This focus on raising profitability can be seen through upselling activities and improved factory utilization.

• TransDigm Group Inc., a prominent aerospace components manufacturer, recently released its Q4 2024 financial results, showcasing strong performance amidst challenging macroeconomic conditions.
• The company continues to benefit from its strategic focus on producing unique proprietary products, a strategy that has enabled it to maintain strong aftermarket margins which remain a core driver of its earnings.
• Baptista Research looks to evaluate the different factors that could influence the company’s price in the near future and attempts to carry out an independent valuation of the company using a Discounted Cash Flow (DCF) methodology.

• The TIP Taiwan Select High Dividend ETF (00919 TW) tracks the TIP Customized Taiwan Select High Dividend Index and has an AUM of TWD 284bn (US$8.7bn).
• We forecast 8 changes a side at the December rebalance with an estimated one-way turnover of around 15.8% and a round-trip trade of around US$2.75bn.
• An equal weighted basket of potential inclusions has outperformed an equal weighted basket of potential deletions since beginning September with a pick-up in pace over the last 2-3 weeks.

• The S.F. Holding (002352 CH) H-shares are being offered at a price range of HK$32.3-36.3/share, a discount of 20.2%-29% to the A-shares. The max raise (including oversubscription) is US$912m.
• Unlike Midea Group (300 HK), the S.F. Holding (002352 CH) H-shares will not get Fast Entry to any indices. Southbound Stock Connect inclusion will take place on 23 December.
• With no index inclusion in the short-term, the H-shares discount to the A-shares should remain wide. The H-shares could become short sell eligible in February.

• SF Holding’s HKEX listing launched on Tuesday, November 19th; deal to be priced by 26th
• SF hopes to raise about US$800 mn, less than originally anticipated in financial media
• About one quarter of the offering will be taken up by ten cornerstone investors

• The third quarter 2024 financial results for Lyft, Inc. provide a complex picture of the company’s current standing and future outlook.
• On the positive side, Lyft reported gross bookings exceeding $4.1 billion, marking a 16% year-over-year increase.
• The company also saw strong demand across its services with a 9% growth in active riders and a 6% rise in ride frequency, propelled by various strategic initiatives such as the ‘Price Lock’ feature aimed at commuters.

Melrose Industries’ H224 trading has been in line with management’s expectations despite the volatility in the civil aerospace market, highlighting the strength of the business, in particular in the aftermarket. As 2024 draws to a close and investors look to focus increasingly on FY25, Melrose’s valuation becomes increasingly attractive.

• KULR Technology Group, Inc. develops and commercializes high-performance thermal management technologies for electronics, batteries, and other components across a range of applications.
• Currently, it is focused on high performance aerospace and Department of Defense applications, such as space exploration, satellite communications, and underwater vehicles, and applying them to mass market commercial applications, such as lithium-ion battery energy storage, electric vehicles, 5G, cloud computer infrastructure, consumer and industrial devices.
• It is also applying its zero-vibration technology to fans in commercial markets which has already resulted in a licensing agreement.

• Reforms transforming returns – Although the demand environment remains somewhat mixed, we believe that demand has bottomed for the key product Electronic Discharge Machines.
• Q1-3 FY12/24 results highlighted that definitive progress is being made in terms of raising returns through structural reforms.
• This focus on raising profitability can be seen through upselling activities and improved factory utilization.

• TransDigm Group Inc., a prominent aerospace components manufacturer, recently released its Q4 2024 financial results, showcasing strong performance amidst challenging macroeconomic conditions.
• The company continues to benefit from its strategic focus on producing unique proprietary products, a strategy that has enabled it to maintain strong aftermarket margins which remain a core driver of its earnings.
• Baptista Research looks to evaluate the different factors that could influence the company’s price in the near future and attempts to carry out an independent valuation of the company using a Discounted Cash Flow (DCF) methodology.