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Smartkarma Daily Briefs

Dec 12
0

Daily Brief ESG: Sustainability Information in Annual Securities Reports Is Evolving into Valuable Information and more

By | Daily Briefs, ESG

In today’s briefing:

  • Sustainability Information in Annual Securities Reports Is Evolving into Valuable Information

Sustainability Information in Annual Securities Reports Is Evolving into Valuable Information

By Aki Matsumoto

  • One year has passed since the disclosure of sustainability information in annual securities reports, and the FSA is considering restructuring its disclosure guidelines to support sustainability disclosure by listed companies.
  • Sustainability information in annual securities reports is shifting from “what should be stated” to “what content should be stated,” and the volume of information is increasing accordingly.
  • Valuable information is that investors can understand what initiatives the company has implemented to address the challenges, the goals and timelines it has set, and whether its progress is justified.

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Dec 12
0

Daily Brief Thematic (Sector/Industry): Yoon’s Impeachment a Lock and more

By | Daily Briefs, Thematic (Sector/Industry)

In today’s briefing:

  • Yoon’s Impeachment a Lock, Regime Change Trade Set for May
  • Ohayo Japan | Nasdaq Tops 20,000
  • Indian Textile Sector: Is It the End of Global Inventory Destocking?
  • $1.5B for a 4th Quartile Mine?
  • What’s News in Amsterdam – 11 December

Yoon’s Impeachment a Lock, Regime Change Trade Set for May

By Sanghyun Park

  • Korea’s impeachment drama hit a tipping point, with the second motion against Yoon set for a vote on the 14th, and the market pricing in a 100% chance of approval.
  • The market’s all-in on a Democratic Party win in May, as public sentiment against the president makes the ruling party’s chances virtually non-existent.
  • Target stocks impacted by corporate law changes, then focus on sector-specific plays, particularly the energy policy shift and growing support for virtual assets.

Ohayo Japan | Nasdaq Tops 20,000

By Mark Chadwick

  • The Nasdaq Composite surpassed 20,000 points for the first time, gaining 1.77% to 20,034
  • Japan’s government plans to propose corporate tax hikes starting April 2026 to fund increased defense spending, aiming to double its defense budget to 2% of GDP by 2027
  • Coincheck Group, a subsidiary of Monex Group, has completed its listing on the Nasdaq Global Market under the ticker symbol “CNCK”

Indian Textile Sector: Is It the End of Global Inventory Destocking?

By Sudarshan Bhandari

  • The Indian textile industry is poised for robust growth due to  confluence of factors, including the “China+1” strategy, instability in competing markets like Bangladesh and Vietnam, and supportive government initiatives.
  • This has led to India gaining market share in key export destinations, particularly in apparel exports to the US and the UK.
  • Furthermore, Indian textile companies anticipate improved demand and margins, driven by factors like the end of the global inventory destocking cycle and the stabilization of cotton and yarn prices.

$1.5B for a 4th Quartile Mine?

By Money of Mine

  • China announces bolder stimulus for 2025, signaling more rate cuts and commodity prices surge
  • Lundin Mining sells assets to focus on Vicuna project, raising questions on copper and zinc market dynamics
  • Boliden acquires assets from Lundin, strengthening their position in the copper and zinc markets

This content is sourced through publicly available sources and has been machine generated. Information displayed is for general informational purposes only.

What’s News in Amsterdam – 11 December

By The IDEA!

  • A federal judge has blocked the largest supermarket merger in U.S. history, Kroger’s USD 24.6bn acquisition of Albertsons.
  • U.S. District Judge Adrienne Nelson in Oregon issued a preliminary injunction, citing concerns the merger would reduce competition and harm consumers and workers.
  • This decision refers the case to the Federal Trade Commission (FTC) for further review, significantly diminishing the deal’s chances of completion.

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Dec 12
0

Daily Brief ECM: 2025 (“Year of the Snake”) Major IPOs Pipeline in Korea and more

By | Daily Briefs, ECM

In today’s briefing:

  • 2025 (“Year of the Snake”) Major IPOs Pipeline in Korea
  • Sai Life Sciences Pre-IPO – Portfolio Expansion and Increased Production Capacity to Drive Growth
  • A Review of Rights Offerings/Capital Raise Announcements in Korea in 2024
  • ISU Petasys Ignores FSS: A Likely Short-Term Dip Sets up an Opportunity to Target 15% Discount
  • DigiCo Infrastructure REIT IPO Trading – Now for the Real Test, Ex-Adjustments
  • Inventurus Pre-IPO – Accelerating Growth with Major Aquity Acquisition

2025 (“Year of the Snake”) Major IPOs Pipeline in Korea

By Douglas Kim

  • This is our 10th “Annual Edition of the Major Korean IPOs Pipeline Preview” at Smartkarma.
  • This insight will feature 50 of the biggest potential IPOs in Korea in 2025.
  • These 50 IPOs in Korea are likely to represent more than 80% of all capital raised through IPOs in Korea next year.

Sai Life Sciences Pre-IPO – Portfolio Expansion and Increased Production Capacity to Drive Growth

By Akshat Shah

  • SAI Life Sciences (SAILS12 IN) is looking to raise up to US$360m in its upcoming India IPO.
  • Sai Life Sciences is a contract research, development and manufacturing organisation providing end-to-end services across drug discovery, development and manufacturing value-chain, for small to global pharmaceutical innovators and biotechnology firms.
  • In this note, we talk about the company’s historical performance.

A Review of Rights Offerings/Capital Raise Announcements in Korea in 2024

By Douglas Kim

  • In this insight, we review the major rights offerings/capital raises that were announced in Korea in 2024.
  • In general, the major rights offerings/capital raises tend to result in lower share prices one month, three months, and over a longer time frame. 
  • There are some exceptions. Peptron and ABL Bio experienced higher share prices even after their capital raise announcements, especially after a longer time frame (3 months or more).

ISU Petasys Ignores FSS: A Likely Short-Term Dip Sets up an Opportunity to Target 15% Discount

By Sanghyun Park

  • ISU Petasys is betting the FSS chief, tied to the current administration, won’t have much market power due to the impeachment drama—and that gamble looks likely to pay off.
  • ISU Petasys’ rights offering still offers solid trade potential, with 97% stockholder allocation and only 21% from the major shareholder, increasing the chance of significant unclaimed shares hitting the market.
  • Our plan is to grab stock rights cheap, ride the 15% discount, and capitalize on stock pullbacks, though lack of futures limits short hedging. Still, an unhedged setup looks promising.

DigiCo Infrastructure REIT IPO Trading – Now for the Real Test, Ex-Adjustments

By Sumeet Singh

  • DigiCo REIT (DIGICO AU) raised around US$1.3bn in its Australian IPO.
  • DigiCo REIT (DREIT) aims to be a diversified owner, operator and developer of data centres, with a global portfolio and broad investment mandate across stabilised, value-add and development opportunities
  • We have looked at the company’s past performance in our previous notes. In this note, we will talk about the trading dynamics.

Inventurus Pre-IPO – Accelerating Growth with Major Aquity Acquisition

By Nicholas Tan

  • Inventurus Knowledge Solutions (IKSINCD IN) is looking to raise up to US$295m in its upcoming India IPO.
  • IKS is a technology-enabled healthcare solutions provider, assisting physician enterprises in US, Canada and Australia. It is a one-stop shop designed to handle physicians administrative tasks.
  • In this note, we look at the firm’s past performance.

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Dec 12
0

Daily Brief Credit: Lucror Analytics – Morning Views Asia and more

By | Credit, Daily Briefs

In today’s briefing:

  • Lucror Analytics – Morning Views Asia

Lucror Analytics – Morning Views Asia

By Tanvi Arora

  • In today’s Morning Views publication we comment on developments of the following high yield issuers: Continuum Green, Sunny Optical
  • Wall Street has been expressing confusion over the Fed’s potential decision (according to minutes of the November meeting) to lower the rate on its overnight reverse repo facility (RRP) by 5 bps, possibly as early as next week.
  • This adjustment comes alongside expectations of a quarter-point cut in the Fed’s main policy benchmark. 

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Dec 12
0

Daily Brief Event-Driven: NEC Networks (1973 JP) Final Showdown I – Extendy-Extendy and more

By | Daily Briefs, Event-Driven

In today’s briefing:

  • NEC Networks (1973 JP) Final Showdown I – Extendy-Extendy, But Not Yet Bumpity Bumpity
  • 7&I (3382JP) – Spanners in the Works: FTC Blocks Another US Retail Merger and 7-11 Japan Sales Slump
  • Topcon (7732 JP): Privatisation Auction Underscores Underlying Value
  • Quiddity Leaderboard HSTECH Mar 25: Two ADDs/DELs Likely but Different Conviction Levels
  • Fuji Soft (9749 JP): Bain Can’t Take No for an Answer and Returns with a JPY9,600 Offer
  • Nasdaq100 December 2024 Forecast (Final): Palantir’s Last-Minute Entry; Arm’s Subtle Retention
  • NIFTY200 Momentum30 Index Rebalance: 38 Changes; 65% Turnover; US$1.7bn Trade
  • LG Electronics India: IPO Details & Index Entry Timing
  • CPMC Holdings (906.HK) Update – It’s Time to Prepare for Different Scenarios
  • REPT BATTERO Energy IPO Lockup – US$1.2bn Lockup Release

NEC Networks (1973 JP) Final Showdown I – Extendy-Extendy, But Not Yet Bumpity Bumpity

By Travis Lundy

  • Two days before the close of its TOB on subsidiary Nec Networks & System Integr (1973 JP), NEC Corp (6701 JP) announced it had no plans to raise the price. 
  • The next day, the second largest shareholder reported a stake increase from 11.68% to 13.12%. That changes the dynamic further, and a change in terms was likely. 
  • Today post-close, NEC extended the Tender Offer by 10 days. It is worthwhile understanding the likely current disposition of shares. 

7&I (3382JP) – Spanners in the Works: FTC Blocks Another US Retail Merger and 7-11 Japan Sales Slump

By Michael Causton

  • Recent reports suggest an MBO if firming up, with partial sale of US to ACT and even the Japan CVS business so a big value solution for all concerned.
  • Not so fast: an ACT purchase of 7-11 US looks more likely to be blocked given yesterday’s ruling on the merger of grocery giants Kroger and Albertsons.
  • The valuation of the Japan business may need a correction too if the last six months of poor numbers continue – given this is because of price perception, they may.

Topcon (7732 JP): Privatisation Auction Underscores Underlying Value

By Arun George

  • Topcon Corp (7732 JP) shares rose 51% over two days, confirming a Bloomberg report that is conducting a privatisation auction. The process is in the second round of bids.
  • Exploring the privatisation process is unsurprising, as Topcon has materially underperformed the Nikkei 225 since its last medium-term management term plan was announced on 12 May 2023.
  • Despite the share price pop, Topcon trades at a discount to median peer multiples. At an offer of JPY3,000, Topcon would trade in line with median peer multiples.

Quiddity Leaderboard HSTECH Mar 25: Two ADDs/DELs Likely but Different Conviction Levels

By Janaghan Jeyakumar, CFA

  • The HSTECH Index tracks the performance of the top 30 technology companies listed in Hong Kong that have high business exposure to certain technology themes.
  • In this insight, we take a look at the rankings of potential ADDs and potential DELs for the March 2025 index rebal event.
  • We see two index changes based on the latest available data. However, the reference period is not complete which means our expectations can change over the next few weeks.

Fuji Soft (9749 JP): Bain Can’t Take No for an Answer and Returns with a JPY9,600 Offer

By Arun George

  • The battle for Fuji Soft Inc. (9749 JP) took an unexpected turn. Bain revised its offer to JPY9,600, a 1.6% premium to KKR’s JPY9,451 second tender offer. 
  • Bain has introduced a minimum number of shares to be purchased criterion. Bain’s offer is structured to address most but not all of the special committee’s reasons for opposition.
  • The Board’s first reaction will be to ask KKR, its preferred bidder, to bump. Given the amount of time and effort KKR has put into this bid, it will bump. 

Nasdaq100 December 2024 Forecast (Final): Palantir’s Last-Minute Entry; Arm’s Subtle Retention

By Dimitris Ioannidis

NIFTY200 Momentum30 Index Rebalance: 38 Changes; 65% Turnover; US$1.7bn Trade

By Brian Freitas

  • There are 19 changes a side for the Nifty200 Momentum30 Index that will be implemented at the close on 30 December. All names are exactly in line with our forecast.
  • Estimated one-way turnover is 64.9% resulting in a one-way trade of INR 72.7bn (US$857m). There are 18 stocks with over 1x ADV to trade.
  • The adds have continued to outperform the deletes even after the end of the review period. There could be further upside heading into year-end and implementation of the changes.

LG Electronics India: IPO Details & Index Entry Timing

By Brian Freitas

  • LG Electronics India (123D IN) is looking to list on the exchanges by selling 101.8m shares at a valuation of around US$12-13bn and raising around US$1.8bn in its IPO.
  • The draft RHP was filed on 6 December, so the IPO could complete in the first quarter of 2025.
  • The stock will not get Fast Entry to global indices. Inclusion at regular rebalances could commence in June/September next year depending on when the stock lists.

CPMC Holdings (906.HK) Update – It’s Time to Prepare for Different Scenarios

By Xinyao (Criss) Wang

  • If ORG cannot obtain the SAFE approval by the end of December, this indicates something is wrong in the process. Then the success rate of this transaction is greatly reduced.
  • Acquiring CPMC is in line with Baosteel’s strategic goals and CPMC is important to Baosteel.So, the possibility of state-owned capital to agree to withdraw completely from CPMC is not high.
  • It’s unclear whether Zhang Wei will continue to side with ORG, or whether he still want to exit. This actually depends on the renegotiations between Baosteel/China Foods/COFCO and Zhang Wei.

REPT BATTERO Energy IPO Lockup – US$1.2bn Lockup Release

By Sumeet Singh

  • REPT BATTERO Energy raised around US$270m in its Hong Kong IPO in Dec 2023. Its pre-IPO investors holding around US$1.2bn worth of shares will be released from their lockup soon.
  • REPT is a lithium-ion battery manufacturer in China, focusing on R&D, production, and sales of EV/ESS lithium-ion battery products such as battery cells, modules and packs.
  • In this note, we will talk about the lockup dynamics and possible placement.

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Dec 12
0

Daily Brief Equity Bottom-Up: SingPost (SPOST SP): What Next After FMH Sale? and more

By | Daily Briefs, Equity Bottom-Up

In today’s briefing:

  • SingPost (SPOST SP): What Next After FMH Sale?
  • Fast Retailing (9983) | Inditex’s Q3 Miss – Implications for Uniqlo
  • AMD’s Lisa Su Named Time CEO Of The Year
  • Shortlist Of High Conviction Ideas: Income, Value, and Margin of Safety – December 2024
  • Vishal Mega Mart IPO- Forensic Analysis
  • Pou Sheng (3813) – Wednesday, Sep 11, 2024
  • Baltic Classifieds Group (BCG LN) – Tuesday, Sep 10, 2024
  • Tal Education Group (TAL) – Wednesday, Sep 11, 2024
  • GTN Ltd – Cost out, utilisation recovery and capital management
  • Raksul (4384) – Tuesday, Sep 10, 2024

SingPost (SPOST SP): What Next After FMH Sale?

By David Blennerhassett

  • Singapore Post (SPOST SP) is selling its key asset, Australian-based Freight Management Holdings (FMH), for an enterprise value of S$897.6mn, which will generate a gain on disposal of S$312.1mn.
  • SingPost will apply the proceeds to paring down its Aussie dollar-denominated debt. SingPost will also consider, in due course, the payment of a special dividend.
  • Once the FMH transaction completes, the board will “review and reset the Group’s strategic plan, with a continued focus on shareholder value“.

Fast Retailing (9983) | Inditex’s Q3 Miss – Implications for Uniqlo

By Mark Chadwick

  • Inditex’s rare quarterly miss on sales and profit, driven by currency fluctuations, may heighten sensitivity around Fast Retailing’s upcoming Q1 results
  • For Fast, the risk would be a top-line miss given high valuation multiples and elevated expectations
  • Over the past several quarters, Fast’s superior top line growth has supported higher valuation multiples. We expect 9% revenue growth in Q1

AMD’s Lisa Su Named Time CEO Of The Year

By William Keating

  • AMD’s Lisa Su has been honoured as Time’s CEO of the year, a fitting tribute to a leader who  pulled off what many thought to be impossible
  • Despite flawless execution and carving out a brand new $5 billion market segment within AI Acceleration, AMD’s share prices is down 44% from its 52 week high
  • AMD will ultimately face headwinds from Arm but, for the time being, their growth will come from continuing to take market share from Intel and building on their Instinct platform 

Shortlist Of High Conviction Ideas: Income, Value, and Margin of Safety – December 2024

By Sameer Taneja

Vishal Mega Mart IPO- Forensic Analysis

By Nitin Mangal

  • Vishal Mega Mart (1620871D IN) IPO worth INR 80 bn is about to open this week. The IPO constitutes entirely of OFS. 
  • The company is one of the top 3 offline first retailers, the most diversified retailers and caters to middle income and lower income group, largely in Tier 2 locations. 
  • As far as forensics are concerned, one must pay attention to exorbitantly high attrition levels, rising related party transactions, few puzzling line items noticed in books, etc.

Pou Sheng (3813) – Wednesday, Sep 11, 2024

By Value Investors Club

  • Pou Sheng, the second-largest sporting goods retailer in China, is facing challenges like declining sales
  • The company is trading at an undervalued price with a negative EV but remains profitable
  • Despite concerns about China’s geopolitical situation and low cash returns, Pou Sheng offers a high dividend yield and has a strong balance sheet with significant net tangible asset value, indicating potential for upside if sales performance improves.

This content is sourced through publicly available sources and has been machine generated. Information displayed is for general informational purposes only. This article was originally published 3 months ago on Value Investors Club.

Baltic Classifieds Group (BCG LN) – Tuesday, Sep 10, 2024

By Value Investors Club

  • BCG is a dominant operator of online classified assets in Lithuania and Estonia, with potential expansion into Latvia
  • Despite being in the early stages of monetization, BCG shows strong earnings growth potential and appeals to private equity buyers
  • BCG’s focus on generalist and vertical classifieds, with various monetization strategies, positions them well for continued growth and success

This content is sourced through publicly available sources and has been machine generated. Information displayed is for general informational purposes only. This article was originally published 3 months ago on Value Investors Club.

Tal Education Group (TAL) – Wednesday, Sep 11, 2024

By Value Investors Club

  • The author presents an analysis of TAL Education Group, highlighting its low valuation and steady growth among Chinese ADRs
  • TAL has a current market cap of $4.5B, net cash of $3.8B, and generated $200m in operating cash flow in the last quarter
  • The company is projected to have $4.5B in net cash by the end of 2025, with revenue expected to grow at a 30% CAGR and reach over $2.5B with a 15% operating margin by 2026

This content is sourced through publicly available sources and has been machine generated. Information displayed is for general informational purposes only. This article was originally published 3 months ago on Value Investors Club.

GTN Ltd – Cost out, utilisation recovery and capital management

By Research as a Service (RaaS)

  • RaaS is initiating coverage of media group GTN (ASX:GTN) with a base peer EV/EBITDA-derived valuation of $0.81/share, representing potential capital upside of 40% from the current share price, although we suggest premiums of 10% and 20% to the peer average are justified based on GTN’s superior metrics.
  • • GTN has seen improved adjusted EBITDA across FY23 (+13.5%) and FY24 (+15%) but the utilisation rate of advertising spots is still below pre-pandemic levels.
  • We believe further improvements in utilisation together with some stock-specific cost reductions will drive EBITDA 31% higher in FY25, placing the group on very attractive multiples relative to peers.

Raksul (4384) – Tuesday, Sep 10, 2024

By Value Investors Club

  • Raksul operates niche B2B online marketplaces in Japan with exceptional shareholder alignment
  • Recent dip in stock value due to market trends, but shows promise for 2-4x returns in next two years
  • Unique approach to collecting tolls on indirect costs for SMEs in Japan sets them apart in the industry

This content is sourced through publicly available sources and has been machine generated. Information displayed is for general informational purposes only. This article was originally published 3 months ago on Value Investors Club.

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Dec 12
0

Daily Brief Crypto: TON Part 2: A Win-Win Outcome from One Year of Partnership and more

By | Crypto, Daily Briefs

In today’s briefing:

  • TON Part 2: A Win-Win Outcome from One Year of Partnership
  • Sui Network: Demystifying the Monolithic Contender

TON Part 2: A Win-Win Outcome from One Year of Partnership

By Animoca Brands Research

  • In September 2023, TON Foundation and Telegram announced a strategic partnership with the ambitious goal of onboarding 30% of Telegram’s active users to TON by 2028. Serving as the infrastructure layer, TON leveraged Telegram Mini-App to reach and engage Telegram’s vast user base.
  • The success of Notcoin paved the way for activating Mini-App users through social games. Subsequently, users were introduced to crypto through airdrops of game-launched tokens and meme coins. To support this growth trajectory, the foundation has utilized TON Grants, The Open League, and offline events to align with these objectives.
  • By July 2024, Telegram Mini Apps reached 500 million monthly active users (MAUs), elevating Telegram’s MAUs to a new peak of 950 million. By October, 30 million of these users had transitioned into the cryptocurrency world.

Sui Network: Demystifying the Monolithic Contender

By Delphi Digital

  • Sui Network, a blockchain platform from Mysten Labs, is redefining scaling with its object-centric architecture, parallel execution model, and Move programming language.
  • By combining innovative consensus mechanisms like Mysticeti and upgrades such as Adelie and Mahi-Mahi, Sui is advancing beyond traditional L1 architectures to support high-throughput and low-latency operations.
  • Its ecosystem spans diverse sectors, from DeFi to gaming, while its robust tokenomics and cryptographic features enhance usability and security.

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Dec 12
0

Daily Brief Macro: The Drill – Will Chinese stimulus be a home run for commodities? and more

By | Daily Briefs, Macro

In today’s briefing:

  • The Drill – Will Chinese stimulus be a home run for commodities?
  • Strategic Outlook 2025: Winter Is Coming, Can Asia Keep Itself Warm?
  • Rains Continue To Pummel SL Rubber, Percolate To Downstream Too
  • Actinver Research – Macro Daily: Inflation 2h-Nov
  • CX Daily: China’s Auto Industry Reaches Turning Point as EV Exports Slow

The Drill – Will Chinese stimulus be a home run for commodities?

By Andreas Steno

  • Welcome back to our weekly editorial on everything commodity and energy-related!This week is all about China as the Politburo and PBoC have announced new (undefined) stimulus measures aimed at simultaneously countering tariffs from the Trump administration in 2025 and bolstering the economy, regaining confidence as China battles structural issues.
  • This naturally raises the question of how this will impact commodities.
  • As the world’s largest importer of commodities by a significant margin, China’s injection of capital into its economy could provide a substantial boost.

Strategic Outlook 2025: Winter Is Coming, Can Asia Keep Itself Warm?

By Manu Bhaskaran

  • With the US and China distracted from stabilizing the world geopolitical order, flare-ups and stresses will occur more frequently as various actors feel emboldened to undertake risky gambits. 
  • The world, including emerging Asia, will have to contend with “much higher for much longer” geopolitical risk and its aftereffects on global trade, investments, and financial markets. 
  • But most economies in the region retain agency to adapt to a more hostile environment by bolstering internal resilience and forming new coalitions of the willing to pursue shared objectives. 

Rains Continue To Pummel SL Rubber, Percolate To Downstream Too

By Vinod Nedumudy

  • Squeezed supply owing to rains lifts prices in domestic market
  • Exports down 23.4% MoM at US$79.5 million in Sept
  • Michelin seeks proactive policies to up rubber production 

Actinver Research – Macro Daily: Inflation 2h-Nov

By Actinver

  • Inflation for the second half of November stood at -0.12%, supported by the extended effects of “El Buen Fin” sales event.
  • During this period, general inflation benefited from the continuation of discounts offered during “El Buen Fin.”
  • This year, the discount season began on November 15 and extended through November 18.

CX Daily: China’s Auto Industry Reaches Turning Point as EV Exports Slow

By Caixin Global

  • Autos / In Depth: China’s auto industry reaches turning point as EV exports slow
  • Funds /: Chart of the Day: Value of China’s mutual funds comes down from peak
  • Nvidia /: Nvidia asserts commitment to fair competition amid China antitrust probe

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Dec 12
0

Daily Brief Australia: DigiCo REIT, Global Traffic Network and more

By | Australia, Daily Briefs

In today’s briefing:

  • DigiCo Infrastructure REIT IPO Trading – Now for the Real Test, Ex-Adjustments
  • GTN Ltd – Cost out, utilisation recovery and capital management

DigiCo Infrastructure REIT IPO Trading – Now for the Real Test, Ex-Adjustments

By Sumeet Singh

  • DigiCo REIT (DIGICO AU) raised around US$1.3bn in its Australian IPO.
  • DigiCo REIT (DREIT) aims to be a diversified owner, operator and developer of data centres, with a global portfolio and broad investment mandate across stabilised, value-add and development opportunities
  • We have looked at the company’s past performance in our previous notes. In this note, we will talk about the trading dynamics.

GTN Ltd – Cost out, utilisation recovery and capital management

By Research as a Service (RaaS)

  • RaaS is initiating coverage of media group GTN (ASX:GTN) with a base peer EV/EBITDA-derived valuation of $0.81/share, representing potential capital upside of 40% from the current share price, although we suggest premiums of 10% and 20% to the peer average are justified based on GTN’s superior metrics.
  • • GTN has seen improved adjusted EBITDA across FY23 (+13.5%) and FY24 (+15%) but the utilisation rate of advertising spots is still below pre-pandemic levels.
  • We believe further improvements in utilisation together with some stock-specific cost reductions will drive EBITDA 31% higher in FY25, placing the group on very attractive multiples relative to peers.

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Dec 12
0

Daily Brief Singapore: Singapore Post, SGX Rubber Future TSR20, Continuum Green Energy and more

By | Daily Briefs, Singapore

In today’s briefing:

  • SingPost (SPOST SP): What Next After FMH Sale?
  • Rains Continue To Pummel SL Rubber, Percolate To Downstream Too
  • Lucror Analytics – Morning Views Asia

SingPost (SPOST SP): What Next After FMH Sale?

By David Blennerhassett

  • Singapore Post (SPOST SP) is selling its key asset, Australian-based Freight Management Holdings (FMH), for an enterprise value of S$897.6mn, which will generate a gain on disposal of S$312.1mn.
  • SingPost will apply the proceeds to paring down its Aussie dollar-denominated debt. SingPost will also consider, in due course, the payment of a special dividend.
  • Once the FMH transaction completes, the board will “review and reset the Group’s strategic plan, with a continued focus on shareholder value“.

Rains Continue To Pummel SL Rubber, Percolate To Downstream Too

By Vinod Nedumudy

  • Squeezed supply owing to rains lifts prices in domestic market
  • Exports down 23.4% MoM at US$79.5 million in Sept
  • Michelin seeks proactive policies to up rubber production 

Lucror Analytics – Morning Views Asia

By Tanvi Arora

  • In today’s Morning Views publication we comment on developments of the following high yield issuers: Continuum Green, Sunny Optical
  • Wall Street has been expressing confusion over the Fed’s potential decision (according to minutes of the November meeting) to lower the rate on its overnight reverse repo facility (RRP) by 5 bps, possibly as early as next week.
  • This adjustment comes alongside expectations of a quarter-point cut in the Fed’s main policy benchmark. 

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