Smartkarma Daily Briefs

The relationship between Qorvo and Starboard Value has captured the attention of investors and market observers alike, as recent developments signal a potential turning point for the chip maker.
On January 17, 2025, it was revealed that Starboard Value, one of Wall Street’s most aggressive activist investors, has acquired a 7.7% stake in Qorvo, equating to a $500 million investment.
This announcement comes after a challenging year for Qorvo, during which its stock fell by 29%, weighed down by declining revenues in its mobile segment and an unfavorable product mix in the Android ecosystem.

Copper Tracker 20th Jan 2025: Encouraging China TSF Numbers To Boost Future Demand?

Copper prices finished up over 9000 USD/ton again this week after hovering around 3-5% of that level for close to a month.
The COMEX spread has reached a 10-week high, while the Yangshan premium shows signs of investor bullishness as it closes in on the 80 USD/ton.
With better TSF numbers from China and a slightly more optimistic picture of demand, we head into 2025 feeling better about copper pricing.

Plug Power’s $1.66 Billion Loan: Will It Thrive & Flourish In Trump’s Era?

Plug Power, a leading name in the hydrogen economy, recently secured a $1.66 billion loan guarantee from the U.S. Department of Energy (DOE).
This funding is set to propel the company’s plans to build several facilities for clean hydrogen production, with the first plant slated for Texas.
The announcement comes amid political uncertainty, as President Donald Trump is set to take office with a potentially contrasting stance on clean energy policies.

Titan America (TTAM): Peeking at the Prospectus of Potential February IPO for Titan Cement’s US Unit

By IPO Boutique

Company is a manufacturer and supplier of heavy building materials and services operating primarily on the Eastern Seaboard of the United States
They have experienced 50% revenue growth, 150% net income growth and 65% Adjusted EBITDA growth from fiscal 2019 to fiscal 2023.
New York Stock Exchange to list the US unit of Brussels-based Titan Cement International SA

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Jan 20

Daily Brief China: ZTO Express Cayman , J&T Global Express , Shanghai Henlius Biotech , Canvest Environmental Protection Group, Lonking Holdings, WuXi AppTec, JD.com Inc (ADR), Guming Holdings and more

By Smartkarma Daily Briefs | China, Daily Briefs

In today’s briefing:

ZTO Express (2057 HK): On Track for Double (Maybe Triple) Index Inclusion
J&T Global Express (1519 HK): Global Index Inclusion Coming Up
Weekly Deals Digest (19 Jan) – Henlius, GA Pack, Lifestyle China, Jamco, Macromill, Insignia, AVJ
Merger Arb Mondays (20 Jan) – Canvest, Henlius, Lifestyle China, Vesync, JAMCO, Insignia, AVJennings
Lonking (3339 HK): A (Massive) Positive Profit Alert
China Healthcare Weekly (Jan.19)- WuXi AppTec Sells Shares in WuXi XDC, National Biological Drug VBP
JD.com (JD US): Trusted Online Retailer Trading at a 9x P/E with a Coming Margin Inflection
Pre-IPO Guming Holdings (PHIP Updates) – Some Points Worth the Attention

ZTO Express (2057 HK): On Track for Double (Maybe Triple) Index Inclusion

With improved liquidity, ZTO Express Cayman (2057 HK) could be added to the HSCEI INDEX early March and then to a global index a couple of weeks later.
ZTO Express Cayman (2057 HK) is a lower probability inclusion to the Hang Seng Index (HSI INDEX) given the index committee discretion. Inclusion would further increase the impact.
The stock has had a big drawdown recently and the potential index inclusion and passive demand provide a low-risk entry point into the stock, especially hedged with its peers.

J&T Global Express (1519 HK): Global Index Inclusion Coming Up

J&T Global Express (1519 HK) listed in October 2023 and was added to one global index in June 2024 and to the HSCEI INDEX in September 2024.
J&T Global Express (1519 HK) could be added to a global index in February and there will be a big passive buying impact. The company is also buying back stock.
J&T Global Express (1519 HK) has underperformed its peers over the past year and the index inclusion could help in closing some of that gap.

Weekly Deals Digest (19 Jan) – Henlius, GA Pack, Lifestyle China, Jamco, Macromill, Insignia, AVJ

A weekly summary of key developments across ECM and Event-Driven names tracked by us across Hong Kong, Australia, New Zealand, Singapore, Japan, Indonesia, Malaysia, Thailand, Korea, India and Chinese ADRs.
ECM developments: LG CNS (LGCNSZ KS) seeks to raise up to US$837 million through a primary/secondary offering.
Event-Driven developments: Shanghai Henlius Biotech (2696 HK), Greatview Aseptic Packaging (468 HK), Jamco Corp (7408 JP), Macromill, Inc (3978 JP), Insignia Financial (IFL AU), Avjennings Ltd (AVJ AU).

Merger Arb Mondays (20 Jan) – Canvest, Henlius, Lifestyle China, Vesync, JAMCO, Insignia, AVJennings

We summarise the latest spreads and newsflow of merger arb situations we cover across Hong Kong, Australia, New Zealand, Singapore, Japan, Indonesia, Malaysia, Philippines, Thailand and Chinese ADRs.
Highest spreads: Shanghai Henlius Biotech (2696 HK), Smart Share Global (EM US), Lifestyle China (2136 HK), Seven & I Holdings (3382 JP), Get Nice Financial Group Ltd (1469 HK).
Lowest spreads: Makino Milling Machine Co (6135 JP), Fuji Soft Inc (9749 JP), Avjennings Ltd (AVJ AU), Latin Resources (LRS AU), Pressance Corp (3254 JP).

Lonking (3339 HK): A (Massive) Positive Profit Alert

By Osbert Tang, CFA

Lonking Holdings (3339 HK)‘s positive profit alert suggested that FY24 earnings will beat the market consensus by a significant 25.8-34.6%.
Better profitability indicates that it will further accumulate net cash. At an unchanged 50% payout ratio, it yields 7.8%, but at a higher payout of 70%, it will be 10.9%.
Trading on 0.59x P/B, it is at the historical average valuation. If 1SD above average, there will be a 20% upside. It will go to HK$2.20 if 2SD above.

China Healthcare Weekly (Jan.19)- WuXi AppTec Sells Shares in WuXi XDC, National Biological Drug VBP

By Xinyao (Criss) Wang

Anhui Province will lead the first National biological drugs VBP in 2025. However, we are optimistic because we think the whole industry will start to bottom out from here.
EVER001 has the potential to become “a game changer” for membranous nephropathy treatment. We are waiting for Everest Medicines to reach licensing cooperation based on EVER001 in the future.
The real motivation for the Disposals of WuXi XDC shares could be to boost WuXi AppTec’s stock price first so that the management can again reduce positions at high level.

JD.com (JD US): Trusted Online Retailer Trading at a 9x P/E with a Coming Margin Inflection

By Michael Fritzell

China-focused Twitter user “pandawatch” posted a tweet comparing the total shareholder return of Chinese tech companies.
At the top of the list was online retailer JD.com (JD US — US$57 billion) with a total dividend yield and buyback yield of 10% — even after deducting share-based compensation. That’s impressively high.
JD is one of China’s largest e-commerce companies. It dominates the niche of selling authentic, branded goods online with fast and reliable delivery.

Pre-IPO Guming Holdings (PHIP Updates) – Some Points Worth the Attention

By Xinyao (Criss) Wang

Due to intense competition, freshly-made beverage market has shown signs of saturation after rapid growth in previous years. Guming is currently in a bottleneck period. Future performance growth will decline.
Due to a decrease in consumption, we have seen the price war in this industry. We think Guming’s profit margin performance will decline in the future if it reduces prices.
Guming’s valuation should be higher than Nayuki Holdings (2150 HK) and Sichuan Baicha Baidao Industrial (2555 HK) due to larger revenue scale/higher net profit margin, but lower than MIXUE.

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Jan 20

Daily Brief India: Kalyan Jewellers, Indian Hotels, NIFTY Index and more

By Smartkarma Daily Briefs | Daily Briefs, India

In today’s briefing:

Kalyan Jewellers: Rumour-Driven Stock Slide, F&O Ban—Is There Room for Further Correction?
NIFTY NEXT50 Index Rebalance Preview: 7 Potential Changes in March
EQD / NSE NIFTY50 Vol Update / India Budget Event Is Driving Price-Action in the Options Market

Kalyan Jewellers: Rumour-Driven Stock Slide, F&O Ban—Is There Room for Further Correction?

By Devi Subhakesan

Kalyan Jewellers (KALYANKJ IN) stock has dropped 36% year-to-date and is now under an F&O ban after open interest hit threshold limits.
The rumours driving the stock decline lack financial or strategic relevance with no substantial reason for long-term investors to panic.
The stock correction has realigned Kalyan’s P/E discount to Titan, with current levels likely to stabilise and thus provide a near term support for Kalyan Jeweller’s stock price.

NIFTY NEXT50 Index Rebalance Preview: 7 Potential Changes in March

With 10 trading days left in the review period, there could be 7 changes (including 2 migrations) for the NSE Nifty Next 50 Index (NIFTYJR INDEX) in March.
Estimated one-way turnover is 15.9% resulting in a one-way trade of INR 52bn (US$600m). All forecast changes, bar one, have over 1.5x ADV to trade from passive trackers.
All the forecast deletes are F&O members while two adds are not. NSE Indices could revisit the index membership criteria especially given the launch of futures on the index.

EQD / NSE NIFTY50 Vol Update / India Budget Event Is Driving Price-Action in the Options Market

By Sankalp Singh

India Budget on 01.02.2025 driving price-action in the Options Market. Monthly IVs marked up at 17.0% as contracts cover event-risk. Vol Regime Model pushed into “High & Up” state.
Vol term-structure bent into kinked-shape due to India Budget date. Skew characteristics are elevated while Smile largely unchanged with the exception of Monthly 10-Delta Strangles.
Trading Strategy Implications: (1) Switch to “High & Up” vol-state triggers a cutback in Short Gamma & Short Vega exposure. (2) Vol-barbell opportunity due to the kinked-shape of the Vol-curve.

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Jan 20

Daily Brief Japan: Macromill, Inc, Murata Manufacturing, TSE Tokyo Price Index TOPIX and more

By Smartkarma Daily Briefs | Daily Briefs, Japan

In today’s briefing:

CVC Bumps the Macromill (3978) Price, Declares Final, and That’s That… Or Is It?
ECM Weekly (20th Jan 2025) – Guming, LG India, Schloss (Leela), Freetech, Chongqing Terminus, Murata
Going Private Is Not an “exit” from the Market, but the Beginning of the Next Step

CVC Bumps the Macromill (3978) Price, Declares Final, and That’s That… Or Is It?

On Friday 17 January, the closing date of the CVC Tender Offer for Macromill, Inc (3978 JP) at ¥1,150/share, the bidder announced an extension of the Tender Offer.
They also announced a bump to ¥1,250/share, and that included a comment saying they resolved not to raise the price further.
This happened during market hours, and the price jumped to just below ¥1,250/share. But one should not consider this a done deal. For reasons…

ECM Weekly (20th Jan 2025) – Guming, LG India, Schloss (Leela), Freetech, Chongqing Terminus, Murata

By Sumeet Singh

Aequitas Research’s weekly update on the IPOs, placements, lockup expiry and other ECM linked events that were covered by the team over the past week.
On the IPO front, Guming Holdings appears to be gearing up for a launch soon.
On the placements front, while Wuxi XDC failed to perform, Murata Manufacturing (6981 JP) has been holding up so far.

Going Private Is Not an “exit” from the Market, but the Beginning of the Next Step

By Aki Matsumoto

The previous share price of FUJISOFT did not reach the value it should have, and therefore, the company did not achieve its management goal of maximizing shareholder profit.
The decision for shareholder return or investment in growth rests with management. Cash returned to shareholders is simply invested by investors to find investments where they can earn better investment.
Rather than “shareholder pressure,” we should think this is the beginning of an effort to return to the basics of shareholder-oriented management, which is to expand shareholder interests.

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Jan 20

Most Read: Kokusai Electric , ZTO Express Cayman , Makino Milling Machine Co, J&T Global Express , Greatview Aseptic Packaging, Korea Stock Exchange KOSPI 200, Macromill, Inc, Flat Glass, Millennium & Copthorne Hotels Nz and more

By Smartkarma Daily Briefs | Daily Briefs, Most Read

In today’s briefing:

Nikkei 225 Index Rebalance Preview (Mar 2025): SHIFT Splits; Updated Ranking, Capping & Funding
ZTO Express (2057 HK): On Track for Double (Maybe Triple) Index Inclusion
Makino Milling (6135) – Trading Through Terms, May Need Investor Pushing
J&T Global Express (1519 HK): Global Index Inclusion Coming Up
GA Pack (468 HK): Shandong Xinjufeng’s Offer on the Cusp of Being Declared Unconditional
FSS’s Short Selling Guidelines: Breaking Down the Key Violation Cases and What They Mean
CVC Bumps the Macromill (3978) Price, Declares Final, and That’s That… Or Is It?
A/H Premium Tracker (To 17 Jan 2025): AH Premia Fall Further, Lowest Avg Premium in 5yrs
Top 10 Korean Stock Picks Bi-Weekly (Starting 20 January 2025)
Millennium & Copthorne Hotels (MCK NZ): City Dev’s Privatisation Offer

Nikkei 225 Index Rebalance Preview (Mar 2025): SHIFT Splits; Updated Ranking, Capping & Funding

The review period for the Nikkei 225 Index March rebalance ends in 3 weeks. There could be one outright change and one or two others driven by sector balance.
Shift Inc (3697 JP) will have a 15:1 stock split next week and that puts the stock in the list of potential inclusions over the next couple of rebalances.
The recent drop in Fast Retailing (9983 JP)‘s stock price will lead to a single step drop in the PAF. That means less passive selling and a smaller funding buy.

ZTO Express (2057 HK): On Track for Double (Maybe Triple) Index Inclusion

With improved liquidity, ZTO Express Cayman (2057 HK) could be added to the HSCEI INDEX early March and then to a global index a couple of weeks later.
ZTO Express Cayman (2057 HK) is a lower probability inclusion to the Hang Seng Index (HSI INDEX) given the index committee discretion. Inclusion would further increase the impact.
The stock has had a big drawdown recently and the potential index inclusion and passive demand provide a low-risk entry point into the stock, especially hedged with its peers.

Makino Milling (6135) – Trading Through Terms, May Need Investor Pushing

Nidec Corp (6594 JP) in late December proposed an unsolicited takeover of Makino Milling Machine Co (6135 JP), with a 3-month delay before launching a Tender Offer.
Makino has asked for an extension to the start. Nidec has said no. Makino is going about this the wrong way. Makino needs to assume Nidec thought this through.
Makino needs to open up the process to other bidders, and investors can help.

J&T Global Express (1519 HK): Global Index Inclusion Coming Up

J&T Global Express (1519 HK) listed in October 2023 and was added to one global index in June 2024 and to the HSCEI INDEX in September 2024.
J&T Global Express (1519 HK) could be added to a global index in February and there will be a big passive buying impact. The company is also buying back stock.
J&T Global Express (1519 HK) has underperformed its peers over the past year and the index inclusion could help in closing some of that gap.

GA Pack (468 HK): Shandong Xinjufeng’s Offer on the Cusp of Being Declared Unconditional

Greatview Aseptic Packaging (468 HK)’s offer from Shandong Xinjufeng Technology Packaging (301296 CH) is HK$2.65 with a 50% minimum acceptance condition. The first closing date is 21 January.
The Board has recommended that shareholders not accept. However, based on CCASS data, including acceptances, Shandong Xinjufeng’s shareholding was 46.41% of outstanding shares as of 17 January.
Absent an unlikely competing offer, the offer is on the cusp of being declared unconditional. At the last close and 4 February payment, the gross/annualized spread is 3.1%/128%.

FSS’s Short Selling Guidelines: Breaking Down the Key Violation Cases and What They Mean

By Sanghyun Park

The issue with borrowing agreements is that contracts with conditions set later or changeable terms don’t count, creating uncertainty on how this will play out in practice.
Many borrowing agreements depend on recall timing for ownership recognition, even within the same day, creating confusion in practice.
Repayment period limits don’t apply to internal desk-to-desk trades within the same firm. Other than those, no new updates today on reporting requirements, T+2 reporting window, or lending limits.

CVC Bumps the Macromill (3978) Price, Declares Final, and That’s That… Or Is It?

On Friday 17 January, the closing date of the CVC Tender Offer for Macromill, Inc (3978 JP) at ¥1,150/share, the bidder announced an extension of the Tender Offer.
They also announced a bump to ¥1,250/share, and that included a comment saying they resolved not to raise the price further.
This happened during market hours, and the price jumped to just below ¥1,250/share. But one should not consider this a done deal. For reasons…

A/H Premium Tracker (To 17 Jan 2025): AH Premia Fall Further, Lowest Avg Premium in 5yrs

AH Premia are lower over the last few weeks of holiday and this past week of heavy SOUTHBOUND buying on telcos, banks, brokers, insurers, tech, and airlines.
The average AH Premium across all pairs is now the lowest it has been in five years.
The VERY WIDE Tech spreads bifurcated. SMIC (981) and Shanghai Fudan Microelectric (1385) both continued strongly. China Rail Signal (3969) and Flat Glass (6865) widened again.

Top 10 Korean Stock Picks Bi-Weekly (Starting 20 January 2025)

By Douglas Kim

We are starting a new series of insights called “Top 10 Korean Stock Picks Bi-Weekly.”
The main purpose of these insights is to pick top 10 stocks in Korea that could outperform KOSPI in the following two week period.
The top 10 stock picks include Kia Corp, Kangwon Land, OCI Holdings, HD Hyundai, Doosan Bobcat, BNK Financial, Hyundai Mobis, HMM, Hyundai Glovis, and Korean Reinsurance.

Millennium & Copthorne Hotels (MCK NZ): City Dev’s Privatisation Offer

By David Blennerhassett

Millennium & Copthorne Hotels (MCK NZ) (MCK), a Kiwi hotel chain, has announced that City Developments (CIT SP), its major shareholder, has made an Offer for shares not held.
City Dev is offering NZ$2.25/share, a 25% premium to last close. City holds 75.86% and the offer is conditional on a 90% holding, including shares currently held.
Reg approvals include OIA, which should be rubber-stamped. Very illiquid company.

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Jan 20

Daily Brief Industrials: ZTO Express Cayman , J&T Global Express , Canvest Environmental Protection Group, Lonking Holdings, Plug Power Inc and more

By Smartkarma Daily Briefs | Daily Briefs, Industrials

In today’s briefing:

ZTO Express (2057 HK): On Track for Double (Maybe Triple) Index Inclusion
J&T Global Express (1519 HK): Global Index Inclusion Coming Up
Merger Arb Mondays (20 Jan) – Canvest, Henlius, Lifestyle China, Vesync, JAMCO, Insignia, AVJennings
Lonking (3339 HK): A (Massive) Positive Profit Alert
Plug Power’s $1.66 Billion Loan: Will It Thrive & Flourish In Trump’s Era?

ZTO Express (2057 HK): On Track for Double (Maybe Triple) Index Inclusion

With improved liquidity, ZTO Express Cayman (2057 HK) could be added to the HSCEI INDEX early March and then to a global index a couple of weeks later.
ZTO Express Cayman (2057 HK) is a lower probability inclusion to the Hang Seng Index (HSI INDEX) given the index committee discretion. Inclusion would further increase the impact.
The stock has had a big drawdown recently and the potential index inclusion and passive demand provide a low-risk entry point into the stock, especially hedged with its peers.

J&T Global Express (1519 HK): Global Index Inclusion Coming Up

J&T Global Express (1519 HK) listed in October 2023 and was added to one global index in June 2024 and to the HSCEI INDEX in September 2024.
J&T Global Express (1519 HK) could be added to a global index in February and there will be a big passive buying impact. The company is also buying back stock.
J&T Global Express (1519 HK) has underperformed its peers over the past year and the index inclusion could help in closing some of that gap.

Merger Arb Mondays (20 Jan) – Canvest, Henlius, Lifestyle China, Vesync, JAMCO, Insignia, AVJennings

We summarise the latest spreads and newsflow of merger arb situations we cover across Hong Kong, Australia, New Zealand, Singapore, Japan, Indonesia, Malaysia, Philippines, Thailand and Chinese ADRs.
Highest spreads: Shanghai Henlius Biotech (2696 HK), Smart Share Global (EM US), Lifestyle China (2136 HK), Seven & I Holdings (3382 JP), Get Nice Financial Group Ltd (1469 HK).
Lowest spreads: Makino Milling Machine Co (6135 JP), Fuji Soft Inc (9749 JP), Avjennings Ltd (AVJ AU), Latin Resources (LRS AU), Pressance Corp (3254 JP).

Lonking (3339 HK): A (Massive) Positive Profit Alert

By Osbert Tang, CFA

Lonking Holdings (3339 HK)‘s positive profit alert suggested that FY24 earnings will beat the market consensus by a significant 25.8-34.6%.
Better profitability indicates that it will further accumulate net cash. At an unchanged 50% payout ratio, it yields 7.8%, but at a higher payout of 70%, it will be 10.9%.
Trading on 0.59x P/B, it is at the historical average valuation. If 1SD above average, there will be a 20% upside. It will go to HK$2.20 if 2SD above.

Plug Power’s $1.66 Billion Loan: Will It Thrive & Flourish In Trump’s Era?

Plug Power, a leading name in the hydrogen economy, recently secured a $1.66 billion loan guarantee from the U.S. Department of Energy (DOE).
This funding is set to propel the company’s plans to build several facilities for clean hydrogen production, with the first plant slated for Texas.
The announcement comes amid political uncertainty, as President Donald Trump is set to take office with a potentially contrasting stance on clean energy policies.

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Jan 20

Daily Brief Industrials: ZTO Express Cayman , J&T Global Express , Canvest Environmental Protection Group, Lonking Holdings, Plug Power Inc and more

By Smartkarma Daily Briefs | Daily Briefs, Industrials

In today’s briefing:

ZTO Express (2057 HK): On Track for Double (Maybe Triple) Index Inclusion
J&T Global Express (1519 HK): Global Index Inclusion Coming Up
Merger Arb Mondays (20 Jan) – Canvest, Henlius, Lifestyle China, Vesync, JAMCO, Insignia, AVJennings
Lonking (3339 HK): A (Massive) Positive Profit Alert
Plug Power’s $1.66 Billion Loan: Will It Thrive & Flourish In Trump’s Era?

ZTO Express (2057 HK): On Track for Double (Maybe Triple) Index Inclusion

With improved liquidity, ZTO Express Cayman (2057 HK) could be added to the HSCEI INDEX early March and then to a global index a couple of weeks later.
ZTO Express Cayman (2057 HK) is a lower probability inclusion to the Hang Seng Index (HSI INDEX) given the index committee discretion. Inclusion would further increase the impact.
The stock has had a big drawdown recently and the potential index inclusion and passive demand provide a low-risk entry point into the stock, especially hedged with its peers.

J&T Global Express (1519 HK): Global Index Inclusion Coming Up

J&T Global Express (1519 HK) listed in October 2023 and was added to one global index in June 2024 and to the HSCEI INDEX in September 2024.
J&T Global Express (1519 HK) could be added to a global index in February and there will be a big passive buying impact. The company is also buying back stock.
J&T Global Express (1519 HK) has underperformed its peers over the past year and the index inclusion could help in closing some of that gap.

Merger Arb Mondays (20 Jan) – Canvest, Henlius, Lifestyle China, Vesync, JAMCO, Insignia, AVJennings

We summarise the latest spreads and newsflow of merger arb situations we cover across Hong Kong, Australia, New Zealand, Singapore, Japan, Indonesia, Malaysia, Philippines, Thailand and Chinese ADRs.
Highest spreads: Shanghai Henlius Biotech (2696 HK), Smart Share Global (EM US), Lifestyle China (2136 HK), Seven & I Holdings (3382 JP), Get Nice Financial Group Ltd (1469 HK).
Lowest spreads: Makino Milling Machine Co (6135 JP), Fuji Soft Inc (9749 JP), Avjennings Ltd (AVJ AU), Latin Resources (LRS AU), Pressance Corp (3254 JP).

Lonking (3339 HK): A (Massive) Positive Profit Alert

By Osbert Tang, CFA

Lonking Holdings (3339 HK)‘s positive profit alert suggested that FY24 earnings will beat the market consensus by a significant 25.8-34.6%.
Better profitability indicates that it will further accumulate net cash. At an unchanged 50% payout ratio, it yields 7.8%, but at a higher payout of 70%, it will be 10.9%.
Trading on 0.59x P/B, it is at the historical average valuation. If 1SD above average, there will be a 20% upside. It will go to HK$2.20 if 2SD above.

Plug Power’s $1.66 Billion Loan: Will It Thrive & Flourish In Trump’s Era?

Plug Power, a leading name in the hydrogen economy, recently secured a $1.66 billion loan guarantee from the U.S. Department of Energy (DOE).
This funding is set to propel the company’s plans to build several facilities for clean hydrogen production, with the first plant slated for Texas.
The announcement comes amid political uncertainty, as President Donald Trump is set to take office with a potentially contrasting stance on clean energy policies.

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Jan 20

Daily Brief Energy/Materials: Mongolian Mining, Copper, Iron Ore, Titan America and more

By Smartkarma Daily Briefs | Daily Briefs, Energy & Materials Sector

In today’s briefing:

Mongolia Mining (975 HK): Q4 2024 Operational Updates and Commencement of Buybacks
Copper Tracker 20th Jan 2025: Encouraging China TSF Numbers To Boost Future Demand?
Iron Ore Tracker (20-Jan-2025): Temporary Closure of Hedland and Dampier to Boost Prices
Titan America (TTAM): Peeking at the Prospectus of Potential February IPO for Titan Cement’s US Unit

Mongolia Mining (975 HK): Q4 2024 Operational Updates and Commencement of Buybacks

Mongolian Mining (975 HK) reported its production update, which is in line with our estimates for 7.9 million tons of washed coal sold for FY24.
The company commenced buybacks, purchasing 0.26% of its outstanding shares at 6.65 HKD/share. We believe the company will also announce a dividend in its upcoming results.
After the massive correction in share price owing to a weaker coking coal price, the stock trades at 4.2x PE, 1.9x EV-EBITDA, and a 7-10% dividend yield (30-50% payout ratio).

Copper Tracker 20th Jan 2025: Encouraging China TSF Numbers To Boost Future Demand?

Copper prices finished up over 9000 USD/ton again this week after hovering around 3-5% of that level for close to a month.
The COMEX spread has reached a 10-week high, while the Yangshan premium shows signs of investor bullishness as it closes in on the 80 USD/ton.
With better TSF numbers from China and a slightly more optimistic picture of demand, we head into 2025 feeling better about copper pricing.

Iron Ore Tracker (20-Jan-2025): Temporary Closure of Hedland and Dampier to Boost Prices

Iron ore bounced back 7.7% last week to finish at 104 USD/ton. The short-term bullishness was due to temporary port closures for Hedland and Dampier due to cyclone warnings.
China TSF exceeded expectations for December, coming in at 2.85 trillion RMB, up 47% year over year (compared to street expectations of 2.15 trillion RMB).
We like the small-cap Fenix Resources (FEX AU). Read our research Fenix Resources (FEX AU): Deep Value, >35% of Mkt Cap in Cash, 2.5x PE/0.3 EV-EBITDA on Ramp Up.

Titan America (TTAM): Peeking at the Prospectus of Potential February IPO for Titan Cement’s US Unit

By IPO Boutique

Company is a manufacturer and supplier of heavy building materials and services operating primarily on the Eastern Seaboard of the United States
They have experienced 50% revenue growth, 150% net income growth and 65% Adjusted EBITDA growth from fiscal 2019 to fiscal 2023.
New York Stock Exchange to list the US unit of Brussels-based Titan Cement International SA

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Jan 20

Daily Brief TMT/Internet: Taiwan Semiconductor (TSMC), Taiwan Semiconductor (TSMC) – ADR, Murata Manufacturing, Qorvo Inc, Sunrise Communications and more

By Smartkarma Daily Briefs | Daily Briefs, TMT/Internet

In today’s briefing:

TSMC. The Juggernaut Accelerates!
Taiwan Tech Weekly: UMC Results Ahead; Nvidia & TSMC Partner for Silicon Photonics Technology
ECM Weekly (20th Jan 2025) – Guming, LG India, Schloss (Leela), Freetech, Chongqing Terminus, Murata
Activist Spotlight: How Starboard Value Could Transform Qorvo’s Prospects
Weekly Update (SNRE, HHH, ANGI, MRP)

TSMC. The Juggernaut Accelerates!

By William Keating

AI related demand accounted for ~15% of revenue in 2024, i.e. ~$13.5 billion. This is set to double to $27 billion in 2025
5 year growth CAGR of 20%, at the top end of the previously guided 15-20% range
On track for $100 billion revenue in 2025, and most likely, $200 billion by 2030

Taiwan Tech Weekly: UMC Results Ahead; Nvidia & TSMC Partner for Silicon Photonics Technology

By Vincent Fernando, CFA

UMC Results This Week; Insight Into Supply/Demand Environment for More Mature Semiconductor Segments
Nvidia and TSMC Announce Partnership in Silicon Photonics Technology — Will Enable More Energy-Efficient AI
TSMC 4Q24 Results Signal Multi-Year Market Share Gains; Margin Strength; Sustainable Industry Growth

ECM Weekly (20th Jan 2025) – Guming, LG India, Schloss (Leela), Freetech, Chongqing Terminus, Murata

By Sumeet Singh

Aequitas Research’s weekly update on the IPOs, placements, lockup expiry and other ECM linked events that were covered by the team over the past week.
On the IPO front, Guming Holdings appears to be gearing up for a launch soon.
On the placements front, while Wuxi XDC failed to perform, Murata Manufacturing (6981 JP) has been holding up so far.

Activist Spotlight: How Starboard Value Could Transform Qorvo’s Prospects