Smartkarma Daily Briefs

Eight months after shareholders approved the transfer from the KOSDAQ to the KOSPI market, Ecopro BM (247540 KS) has submitted the application for section transfer to the KRX.
Given historical precedent, the transfer could take place in February. Ecopro BM‘s deletion will mean an inclusion to the KOSDAQ150 Index to maintain the number of index constituents at 150.
Ecopro BM (247540 KS) will be deleted from the KOSDAQ 150 Index leading to passive selling and some short covering. Then will come the inclusion to the KOSPI 200 Index.

EQD | Global Option Implied Volatility – Kospi 200, Hang Seng, Nifty 50

By Gaudenz Schneider

The KOSPI 200 is in a steady bear market with political turmoil further depressing the outlook. Volatility increased in the near term, leading to an inverted term structure.
The Nifty 50 is approaching its 50-day average from below. Call options profit from low implied volatility and present an attractive opportunity to profit on the upside.
The Hang Seng continues to stand out as the index with positive correlation between implied volatility and index performance. Interestingly, the relationship is not symmetric between up- and down moves.

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Dec 05

Daily Brief Singapore: Micro Mechanics (Holdings) and more

By Smartkarma Daily Briefs | Daily Briefs, Singapore

In today’s briefing:

kopi-C with Micro-Mechanics’ CEO: ‘We’re creating five-star factories across the region’

kopi-C with Micro-Mechanics’ CEO: ‘We’re creating five-star factories across the region’

By Geoff Howie

Christopher Borch, CEO of Micro-Mechanics which produces precision tools and parts for the semiconductor industry, explains its strategies to thrive in an era of artificial intelligence and other changes.
People who walk into a five-star restaurant or hotel know they will receive the highest quality products and services, and that is the standard that Micro-Mechanics, which manufactures precision tools and parts for the semiconductor industry, has set for itself, says its founder and chief executive officer Christopher Borch.
Micro-Mechanics is a leading Next Generation Supplier of high precision tools and parts for process-critical applications in the wafer fabrication and assembly processes of the semiconductor industry.

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Dec 05

Daily Brief United States: Intel Corp, Ainos , Ecovyst, Telomir Pharmaceuticals, Vera Bradley, VolitionRX , Adeia, Zephyr Energy, MetaVia, Ocean Power Technologies and more

By Smartkarma Daily Briefs | Daily Briefs, United States

In today’s briefing:

Intel’s Next CEO Will Have To Deal With An Unholy Mess. But Who Will It Be?
Ainos, Inc.- Signed Veldona Partner for Manufacturing and Taiwan Marketing of Sjogren’s Drug
ECVT: Unlocking of Value
TELO: Another Potential Breakthrough
VRA; 3Q Preview: Learning and Moving Forward; Reiterate Buy, $6 Price Target
VNRX: Reports 3Q 2024 results. Over 110
ADEA: AMZN License Announced
Zephyr Energy Plc (AIM: ZPHR): FY24 production guidance re-iterated. Binding agreement with Paradox partner by YE24
MTVA: NeuroBo Becomes MetaVia Topline Results for Phase 2a
Ocean Power Technologies, Inc. – Delivers Strong 2QFY25

Intel’s Next CEO Will Have To Deal With An Unholy Mess. But Who Will It Be?

By William Keating

Gelsinger’s IDM 2.0 strategy will be up for debate by Intel’s BoD. Most likely it will be largely scaled back
The new CEO’s options will be limited by the legal agreements in place with Brookfield & Apollo, along with the restrictions imposed by the US DOC
Possible CEO candidates are the current Globalfoundries CEO, Tom Caulfield, former Intel board member Lip-Bu Tan and former Intel executive Stacy Smith, who recently joined Intel’s BoD

Ainos, Inc.- Signed Veldona Partner for Manufacturing and Taiwan Marketing of Sjogren’s Drug

By Water Tower Research

Key regional partner for Veldona; a good start for Ainos’ out-licensing strategy.
Ainos entered a strategic partnership with Taiwan Tanabe Seiyaku for Veldona in Sjogren’s syndrome.
Under a memorandum of understanding (MOU), the collaboration aims to advance Veldona development by leveraging Taiwan Tanabe’s established expertise in drug manufacturing and Taiwan market promotion.

ECVT: Unlocking of Value

By Small Cap Consumer Research

ECVT has gone through several business divestments and acquisitions over its history and the latest news suggests management is not content.
The timing is a surprise given the segment is to serve ECVT’s growth trajectory. The segment houses new technologies that should begin to contribute to sales in coming quarters.
Advanced materials and catalysts is also the segment that owns the 50% stake in JV Zeolyst, which has been core of issues this year related to ECVT’s adjusted EBITDA performance.

TELO: Another Potential Breakthrough

By Zacks Small Cap Research

Telomir Pharmaceuticals is a preclinical stage company focused on the science of lengthening telomere caps, which the company believes will extend human lifespans and improve quality of life as people age.
Preclinical tests showed that the company’s signature therapy, Telomir-1, appeared to address insulin resistance and achieving reversal to near pre-diabetic levels.
These results add to previous testing results showing a myriad of potential life improving and extending benefits.

VRA; 3Q Preview: Learning and Moving Forward; Reiterate Buy, $6 Price Target

We are reiterating our Buy rating, $6 price target and projections for Vera Bradley with the company announcing 3QFY25 (October) results before the open on Wednesday.
We believe 3Q, the first full quarter of operations after the relaunch of the Vera Bradley brand in both the main line and outlet stores, remained a key learning experience, as management, after dramatically shifting the entire main line store and materially changing the outlets, begins to calibrate feedback to maximize the shifts and begin to attract a wider customer base.
While we remain cautious in our projections in the nearer term, we believe the shifts will help revive Vera Bradley and drive strong returns in the longer term.

VNRX: Reports 3Q 2024 results. Over 110

By Zacks Small Cap Research

Volition’s Nu.Q Vet Canine Cancer Screening Test now available in 17 countries, particularly by Antech on its Element I+ diagnostic point-of-sale platform (in the U.S., Europe, Australia, India & Singapore) and by Fujifilm Vet Systems (Japan).
A Data Room that contains all clinical studies and other data related to Capture-PCR (human cancer detection method) and Nu.Q NETs for human sepsis has been set up to support licensing discussions and negotiations with interested parties.
Research continues on developing biomarkers for multiple cancers in proof of concept studies.

ADEA: AMZN License Announced

ADEA announced a licensing agreement with AMZN setting the path for greater free cash flow in 2025. ADEA has previously mentioned it was close to signing two major licensing agreements.
We assume ADEA’s full year guidance includes catch-up revenue associated with the license since AMZN was never a licensee before.
ADEA had already signed several video streaming licenses, but AMZN would serve as the largest to date. It gives the investment story a stronger foundation.

Zephyr Energy Plc (AIM: ZPHR): FY24 production guidance re-iterated. Binding agreement with Paradox partner by YE24

By Auctus Advisors

• 3Q24 production was 1,047 boe/d.
Zephyr has re-iterated its FY production guidance of 1,100-1,300 boe/d.
We are cautiously assuming 1,100 boe/d.

MTVA: NeuroBo Becomes MetaVia Topline Results for Phase 2a

By Zacks Small Cap Research

On November 18, 2024, NeuroBo Pharmaceuticals, Inc. (NRBO) announced a strategic realignment with a name change to MetaVia Inc. (MTVA).
The change became effective on November 29, 2024.
We are republishing the latest research report under the MTVA ticker.

Ocean Power Technologies, Inc. – Delivers Strong 2QFY25

By Water Tower Research

OPT reported preliminary 2QFY25 results and reaffirmed previous guidance of achieving profitability in 4Q25.
The company expects 2QFY25 revenue to come in at more than $2.0 million compared with $0.9 million in 2QFY24.
Net loss is expected to be lower at ~$4.0 million compared with $7.2 million last year, driven by a 40% reduction in operating expenses due to lower third-party spending and higher revenue.

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Dec 05

Daily Brief India: Zomato, Rain Industries, Aegis Logistics and more

By Smartkarma Daily Briefs | Daily Briefs, India

In today’s briefing:

Quiddity Leaderboard NIFTY Mar 25: Inflows for Zomato and Jiofin in Dec 24 and Mar 25
The Beat Ideas: Rain Industries Ltd Analysis, A Cycle Play
2025 High Conviction Idea:Aegis Logistics-A Decade Track Record of 25% Growth in Profits & Dividends

Quiddity Leaderboard NIFTY Mar 25: Inflows for Zomato and Jiofin in Dec 24 and Mar 25

By Janaghan Jeyakumar, CFA

NIFTY 50 represents the 50 largest stocks listed in the National Stock Exchange (NSE) of India and the NIFTY Next 50 index tracks the next 50 largest names.
In this insight, we take a look at the names leading the race to become ADDs/DELs for these indices in the March 2025 index rebal event.
Zomato (ZOMATO IN) and Jio Financial Services (JIOFIN IN) could see index inflows during the December 2024 rebalance and March 2025 rebalance.

The Beat Ideas: Rain Industries Ltd Analysis, A Cycle Play

By Sudarshan Bhandari

Rain Industries (RINDL IN) is the largest player of CTP and 2nd largest player of CPC in the world delivering loss due to downcycle in industry.
CAQM enabled the import of GPC and CPC improved the pricing and demand further and also has created an opportunity for Rain Industries to ramp up its SEZ plant.
Rain Industries is pivoting to future-ready sectors like EVs and batteries while addressing cyclical challenges. Focused debt reduction and strategic investments enhance its long-term growth potential despite near-term pressures.

2025 High Conviction Idea:Aegis Logistics-A Decade Track Record of 25% Growth in Profits & Dividends

By Sreemant Dudhoria

Aegis Logistics is India’s leading logistics player in Liquified Petroleum Gas (LPG/Propane) and Chemicals.
It has demonstrated a stellar track record over past decade, delivering a 25% CAGR in EBITDA and Net profit, along with a 28% CAGR in dividend payouts.
Given the strength of its partnership with Vopak and various capital expenditure lined up in medium term, it should continue to deliver robust operational and financial performance.

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Dec 05

Daily Brief China: ESR Group , Robosense Technology, Freetech Intelligent Systems, Water Oasis, Studio City International Holdings Limited, Dobot, Mao Geping Cosmetics and more

By Smartkarma Daily Briefs | China, Daily Briefs

In today’s briefing:

ESR Group (1821 HK): Consortium’s Scheme Cash/Scrip Privatisation Offer
ESR (1821 HK): HK$13.00/Share Offer
Robosense Technology, Driving in the Fast Lane While No One Is Looking
Freetech Intelligent Technology Ltd Pre-IPO Tearsheet
Parsing The Water Oasis (1161 HK) FY24 Profit Warning: Ex-One Offs Indicate Flat To Slight Growth
Lucror Analytics – Morning Views Asia
Shenzhen Yuejiang Technology IPO: PHIP and Valuation Updates, High Valuations and A Higher TAM
Pre-IPO Mao Geping Cosmetics (PHIP Updates) – Some Points Worth the Attention

ESR Group (1821 HK): Consortium’s Scheme Cash/Scrip Privatisation Offer

By Arun George

ESR Group (1821 HK)’s preconditional scheme offer from the consortium is either cash (HK$13.00), scrip or a combination of cash/scrip. The offer is final.
The precondition relates to several regulatory approvals. The precondition satisfaction does not carry the same risk as the China Traditional Chinese Medicine (570 HK) deal break.
The irrevocable (31.03% of outstanding shares) ensure that shareholders with blocking or close to blocking stakes are supportive. This is a done deal, with timing the key risk.

ESR (1821 HK): HK$13.00/Share Offer

By David Blennerhassett

HK$13.00/Share (deemed final). That’s the key takeaway here as the Starwood/Warburg Pincus Consortium (finally) tables a firm offer, by way of a pre-conditional Scheme.
Pre-Conditions are extensive, with a long stop date of the 4th September 2025.
HK$13.00 is below prior expectations of a HK$14+ handle. But with irrevocables of 30.79% of the register (and 51.24% of Scheme shares), this is done. A scrip option is afforded.

Robosense Technology, Driving in the Fast Lane While No One Is Looking

By David Mudd

Robosense Technology (2498 HK) has seen its sales of LiDAR solution systems grow substantially as it achieved the ability to mass produce for its customers.
The company integrates proprietary hardware and software, creating a barrier to entry for most LiDAR competitors, who produce only the hardware system.
Robosense announced a strong set of results for 3Q24 and expects to be profitable at some time in 2025. The company has been actively buying back shares.

Freetech Intelligent Technology Ltd Pre-IPO Tearsheet

By Rosita Fernandes

Freetech Intelligent Systems (1901036D CH) is planning to raise about US$200m through its upcoming Hong Kong IPO. The lead bookrunners for the deal are CITIC Securities, CICC, Huatai International, HSBC.
Freetech Intelligent Technology Ltd (FITL) is a provider of intelligent driving solutions, focusing on advanced driver assistance systems (ADAS) and autonomous driving systems (ADS) technologies.
It ranks third among domestic suppliers of Level 2 and Level 2+/2++ intelligent driving solutions in China, with a 2023 market share of 14.6%, according to CIC.

Parsing The Water Oasis (1161 HK) FY24 Profit Warning: Ex-One Offs Indicate Flat To Slight Growth

By Sameer Taneja

Headline profit numbers for FY24 indicate a 38-40% decline from 110 mn HKD in FY23 to 65-69 mn HKD, including non-cash impairment/property revaluation losses amounting to 44.2 mn HKD.
The implication is that core profits would have been 109-113 mn HKD for FY24; a slight earnings growth at the upper end is admirable in a weak HK demand environment.
Based on core earnings, the stock trades at 6x PE, >67% of the market capitalization in cash, and a 10% dividend yield. The company will release earnings on December 16th.

Lucror Analytics – Morning Views Asia

By Leonard Law, CFA

In today’s Morning Views publication we comment on developments of the following high yield issuers: Studio City, Yuexiu Property, Rakuten Group
In the US, the October JOLTS job openings came in above estimates at 7.74 mn (7.52 mn e / 7.37 mn p).
Long-end USTs fell yesterday, while the front end outperformed on expectations that a December rate cut remains on the table.

Shenzhen Yuejiang Technology IPO: PHIP and Valuation Updates, High Valuations and A Higher TAM

By Andrei Zakharov

Shenzhen Yuejiang Technology, more commonly known as just Dobot, updated its PHIP and plans to raise fresh capital for technology development for intelligent cobots.
The company did not disclose the proposed size and price range for the offering. Guotai Junan international and ABC International are leading the IPO.
I believe cobot industry can grow faster than third-party forecasts while the integration of AI into cobots will drive the development of smart cobots.

Pre-IPO Mao Geping Cosmetics (PHIP Updates) – Some Points Worth the Attention

By Xinyao (Criss) Wang

Behind MAO GEPING’s high profitability, there are hidden risks. One is the potential quality issues from ODM/OEM model, and the other is excessive reliance on Mr. Mao Geping’s personal IP.
Without strong R&D capabilities, high-end positioning isn’t firm.With increasing downward pressure in the industry, MAO GEPING would become passive in fierce competition and the industry trend of customers pursuing cost-effectiveness.
MAO GEPING’s valuation could be lower than Giant Biogene due to concerns on future sustainable growth prospects and profitability, but higher than industry average due to the strong short-term financial performance.

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Dec 05

Daily Brief Japan: Seven & I Holdings, Nissan Tokyo Sales, Kioxia Holdings , Nextage Co Ltd, Geechs Inc, Geniee Inc and more

By Smartkarma Daily Briefs | Daily Briefs, Japan

In today’s briefing:

7&I (3382 JP) – Ito-San MBO Plan Includes 7-Eleven US IPO… Which LeadsTo A Modest Proposal
Nissan Tokyo Sales Holdings (8291 JP) – Large Offering on Tiny Cap With Deep Value
Kioxia IPO: Peer Comparison and Valuation
Understanding Kioxia, A Worthwhile IPO?
NextAge (3186): Here We Go Again?
GEECHS (7060 JP) – Q2 Follow-Up
Geniee (6562 JP) – Maintaining a Growth Profile

7&I (3382 JP) – Ito-San MBO Plan Includes 7-Eleven US IPO… Which LeadsTo A Modest Proposal

A Bloomberg article late in the trading session today said the Seven & I Holdings (3382 JP) MBO proposal by Ito family scion Ito Junro includes a US assets IPO.
The idea? IPO proceeds would help pay down MBO debt to Japanese banks. Seven & i would retain a stake. This is not dissimilar to Berkshire Hathaway buying a stake.
But more directly, this leads us back to 7&I (3382) – What If… A Modest Proposal. Possible strategic mistake by Ito-san here. ACT should act on this.

Nissan Tokyo Sales Holdings (8291 JP) – Large Offering on Tiny Cap With Deep Value

By Shifara Samsudeen, ACMA, CGMA

Nissan Tokyo Sales (8291 JP) is a network of 120 dealerships with revenue from sales and repairs of about US$1bn a year. Nissan owns 34%. P&C insurers own 21%.
The P&C insurers will sell their 21%, to an offering and a ToSTNeT-3 buyback. Expect the net offering to be 10.5%, which is still 60+ days of ADV.
But it has net cash, securities, more securities, and landholdings. It trades at <0.5x book and a very large part of book is finance-able. This looks like an MBO candidate.

Kioxia IPO: Peer Comparison and Valuation

Kioxia has announced the terms for its IPO, and plans to raise $730m through issuing new shares as well as offer by existing shareholders, at a market capitalisation of $819bn.
Kioxia Holdings (285A JP) ‘s earnings have been volatile and margins have trailed compared to peers Micron and SK Hynix. Earnings are approaching a new peak.
Kioxia’s implied valuation multiples are at a deep discount to peer multiples, suggesting there is significant upside to the indicative IPO price range.

Understanding Kioxia, A Worthwhile IPO?

By Jim Handy

Kioxia is planning to offer its IPO on 18 December 2024. This Insight profiles Kioxia and its market.
NAND flash, Kioxia’s product, is a commodity, and that results in dramatic price, revenue, and margin swings.
Kioxia is in a joint venture that provides excellent scale economies which are offset by a supply agreement that amplifies troubles caused by oversupplies

NextAge (3186): Here We Go Again?

By Michael Allen

NextAge’s stock price dropped nearly 8% on December 5, when the Topix was up, with no apparent news on either the company’s website or any local media.
The next day, the Nikkei reported that the Financial Services Agency had raided the company’s office after confirming that insurance schemes had been deployed to defraud customers.
This sounds like an old story being leaked by rivals, so we called the company and confirmed: This is most likely old news.

GEECHS (7060 JP) – Q2 Follow-Up

By Sessa Investment Research

On November 8th, 2024, Geechs Inc. (hereafter, the “Company”) announced its H1 FY2025/3 earnings results.
Net sales rose 2.2% YoY to JPY 12,183 mn, EBITDA rose 3.5% YoY to JPY 256 mn, and operating profit rose 84.3% YoY to JPY 193 mn.
Steady expansion of its core IT freelance matching business (Japan), the Seed Tech business turning profitable for the first time, and the absence of losses from G2 Studios (former Game business), sold at the end of the previous fiscal year helped boost results, but losses widened in the IT freelance matching business (Overseas).

Geniee (6562 JP) – Maintaining a Growth Profile

By Astris Advisory Japan

Geniee demonstrated high double-digit growth in sales (+36.3% YoY) and reported OP (+77.2% YoY) for Q1-2 FY3/25 results.
The acquisitive impact from the consolidation of Socialwire (3929) in July 2024 was positive, with a one-time ¥0.07bn gain related to disposing of a shared office operation.
Other income also benefitted by ¥0.32bn from the transition of JAPAN AI Co. from a consolidated subsidiary to an affiliate company due to capital-raising activities.

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Dec 05

Most Read: Hamamatsu Photonics Kk, Sanrio, Goodman Group, Seven & I Holdings, Auckland Intl Airport, Kakao Corp, ESR Group , Ecopro BM and more

By Smartkarma Daily Briefs | Daily Briefs, Most Read

In today’s briefing:

Hamamatsu Photonics (6965) – Toyota Selling Yet Another Cross-Holding
Sanrio (8136 JP) – Kitty Behaving Badly
Goodman Group (GMG AU) Placement: Limited Index Flows
7&I (3382 JP) – Ito-San MBO Plan Includes 7-Eleven US IPO… Which LeadsTo A Modest Proposal
Auckland Airport (AIA NZ) Placement: Potential Index Flows
Latest Scoop on President Yoon’s Impeachment Motion and How to Play It in the Market
ESR Group (1821 HK): Consortium’s Scheme Cash/Scrip Privatisation Offer
Ecopro BM (247540 KS): Index Implications as KOSPI Transfer Nears
Auckland Airport Placement – NZ$1.3bn (US$770m) Cleanup Sale Will Remove the Overhang
ESR (1821 HK): HK$13.00/Share Offer

Hamamatsu Photonics (6965) – Toyota Selling Yet Another Cross-Holding

Today after the close we got news that after a year-plus of Hamamatsu Photonics Kk (6965 JP)‘s sliding stock price, Toyota Motor (7203 JP) is selling their 5+% stake.
The offering is standard. Probably prices 9 Sep 2024. HP’s amended buyback program and probable index upweights offset most of the offering size over the next several months.
So investors have to decide whether they want to catch the falling knife.

Sanrio (8136 JP) – Kitty Behaving Badly

Sanrio (8136 JP) announced a deal last week which I discussed in Sanrio (8136 JP) Large Secondary Offering – Don’t Say Hello Kitty! Too Soon. Next day it fell sharply.
There was shorting involved, and since then the stock has rallied 18% to clear the undisturbed price which itself was an all-time high, up 5% in the previous two days.
There is some LO buying, some HF covering, but a LOT of day-traders. In five days the stock has traded 903% of its Maximum Real World Float. That’s a lot.

Goodman Group (GMG AU) Placement: Limited Index Flows

China Investment Corp owns 7.84% of Goodman Group (GMG AU) and is looking to sell 50.4m shares (2.64% of shares out) at a price range of A$37.55-37.6/share, a tiny discount.
Goodman Group (GMG AU) has run away from its peers over the last couple of years and there could be a move lower in the stock following the placement.
There will be limited passive buying in the short-term coinciding with the placement. There will be some more passive buying in February.

7&I (3382 JP) – Ito-San MBO Plan Includes 7-Eleven US IPO… Which LeadsTo A Modest Proposal

A Bloomberg article late in the trading session today said the Seven & I Holdings (3382 JP) MBO proposal by Ito family scion Ito Junro includes a US assets IPO.
The idea? IPO proceeds would help pay down MBO debt to Japanese banks. Seven & i would retain a stake. This is not dissimilar to Berkshire Hathaway buying a stake.
But more directly, this leads us back to 7&I (3382) – What If… A Modest Proposal. Possible strategic mistake by Ito-san here. ACT should act on this.

Auckland Airport (AIA NZ) Placement: Potential Index Flows

Auckland City Council is looking to sell 163.23m shares of Auckland Intl Airport (AIA NZ) in a clean-up trade. This is big at NZ$1.3bn and 64 days of ADV.
The placement was expected by the market and the stock has run up despite that. The stock is in a trading halt and should open lower.
There will be passive buying at the time of settlement of the placement shares and that will mop up around 15% of the offering.

Latest Scoop on President Yoon’s Impeachment Motion and How to Play It in the Market

By Sanghyun Park

The key point is Saturday—watch if eight ruling party lawmakers defect. Hahn Dong-hoon may push for an early election, with 15 loyalists backing him, so it’s definitely possible.
I’d bet on the ruling party leader pivoting, accepting impeachment, and pushing for an early election. Time to scout beneficiaries and set up an aggressive trading play.
Short-Term, I’m eyeing Kakao affiliates, under-the-radar IT stocks, and those likely to benefit from corporate governance changes. Low birth rate-related sectors are also set for strong upside.

ESR Group (1821 HK): Consortium’s Scheme Cash/Scrip Privatisation Offer

By Arun George

ESR Group (1821 HK)’s preconditional scheme offer from the consortium is either cash (HK$13.00), scrip or a combination of cash/scrip. The offer is final.
The precondition relates to several regulatory approvals. The precondition satisfaction does not carry the same risk as the China Traditional Chinese Medicine (570 HK) deal break.
The irrevocable (31.03% of outstanding shares) ensure that shareholders with blocking or close to blocking stakes are supportive. This is a done deal, with timing the key risk.

Ecopro BM (247540 KS): Index Implications as KOSPI Transfer Nears

Eight months after shareholders approved the transfer from the KOSDAQ to the KOSPI market, Ecopro BM (247540 KS) has submitted the application for section transfer to the KRX.
Given historical precedent, the transfer could take place in February. Ecopro BM‘s deletion will mean an inclusion to the KOSDAQ150 Index to maintain the number of index constituents at 150.
Ecopro BM (247540 KS) will be deleted from the KOSDAQ 150 Index leading to passive selling and some short covering. Then will come the inclusion to the KOSPI 200 Index.

Auckland Airport Placement – NZ$1.3bn (US$770m) Cleanup Sale Will Remove the Overhang

By Clarence Chu

Auckland Council is looking to raise NZ$1.3bn (US$772m) from selling its entire stake in Auckland Intl Airport (AIA NZ).
Overall, the selldown will be a large one for the stock to digest at 10% of shares outstanding and 62 days of three month ADV.
In this note, we run the deal through our ECM framework and comment on deal dynamics.

ESR (1821 HK): HK$13.00/Share Offer

By David Blennerhassett

HK$13.00/Share (deemed final). That’s the key takeaway here as the Starwood/Warburg Pincus Consortium (finally) tables a firm offer, by way of a pre-conditional Scheme.
Pre-Conditions are extensive, with a long stop date of the 4th September 2025.
HK$13.00 is below prior expectations of a HK$14+ handle. But with irrevocables of 30.79% of the register (and 51.24% of Scheme shares), this is done. A scrip option is afforded.

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Dec 05

Daily Brief Utilities: Aegis Logistics and more

By Smartkarma Daily Briefs | Daily Briefs, Utilities Sector

In today’s briefing:

2025 High Conviction Idea:Aegis Logistics-A Decade Track Record of 25% Growth in Profits & Dividends

2025 High Conviction Idea:Aegis Logistics-A Decade Track Record of 25% Growth in Profits & Dividends

By Sreemant Dudhoria

Aegis Logistics is India’s leading logistics player in Liquified Petroleum Gas (LPG/Propane) and Chemicals.
It has demonstrated a stellar track record over past decade, delivering a 25% CAGR in EBITDA and Net profit, along with a 28% CAGR in dividend payouts.
Given the strength of its partnership with Vopak and various capital expenditure lined up in medium term, it should continue to deliver robust operational and financial performance.

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Dec 05

Daily Brief Consumer: Seven & I Holdings, Nissan Tokyo Sales, Zomato, Freetech Intelligent Systems, Studio City International Holdings Limited, Water Oasis, Mao Geping Cosmetics, Vera Bradley, Adeia and more

By Smartkarma Daily Briefs | Consumer, Daily Briefs

In today’s briefing:

7&I (3382 JP) – Ito-San MBO Plan Includes 7-Eleven US IPO… Which LeadsTo A Modest Proposal
Nissan Tokyo Sales Holdings (8291 JP) – Large Offering on Tiny Cap With Deep Value
Quiddity Leaderboard NIFTY Mar 25: Inflows for Zomato and Jiofin in Dec 24 and Mar 25
Freetech Intelligent Technology Ltd Pre-IPO Tearsheet
Lucror Analytics – Morning Views Asia
Parsing The Water Oasis (1161 HK) FY24 Profit Warning: Ex-One Offs Indicate Flat To Slight Growth
Pre-IPO Mao Geping Cosmetics (PHIP Updates) – Some Points Worth the Attention
VRA; 3Q Preview: Learning and Moving Forward; Reiterate Buy, $6 Price Target
ADEA: AMZN License Announced

7&I (3382 JP) – Ito-San MBO Plan Includes 7-Eleven US IPO… Which LeadsTo A Modest Proposal

A Bloomberg article late in the trading session today said the Seven & I Holdings (3382 JP) MBO proposal by Ito family scion Ito Junro includes a US assets IPO.
The idea? IPO proceeds would help pay down MBO debt to Japanese banks. Seven & i would retain a stake. This is not dissimilar to Berkshire Hathaway buying a stake.
But more directly, this leads us back to 7&I (3382) – What If… A Modest Proposal. Possible strategic mistake by Ito-san here. ACT should act on this.

Nissan Tokyo Sales Holdings (8291 JP) – Large Offering on Tiny Cap With Deep Value

By Small Cap Consumer Research

Nissan Tokyo Sales (8291 JP) is a network of 120 dealerships with revenue from sales and repairs of about US$1bn a year. Nissan owns 34%. P&C insurers own 21%.
The P&C insurers will sell their 21%, to an offering and a ToSTNeT-3 buyback. Expect the net offering to be 10.5%, which is still 60+ days of ADV.
But it has net cash, securities, more securities, and landholdings. It trades at <0.5x book and a very large part of book is finance-able. This looks like an MBO candidate.

Quiddity Leaderboard NIFTY Mar 25: Inflows for Zomato and Jiofin in Dec 24 and Mar 25

By Janaghan Jeyakumar, CFA

NIFTY 50 represents the 50 largest stocks listed in the National Stock Exchange (NSE) of India and the NIFTY Next 50 index tracks the next 50 largest names.
In this insight, we take a look at the names leading the race to become ADDs/DELs for these indices in the March 2025 index rebal event.
Zomato (ZOMATO IN) and Jio Financial Services (JIOFIN IN) could see index inflows during the December 2024 rebalance and March 2025 rebalance.

Freetech Intelligent Technology Ltd Pre-IPO Tearsheet

By Rosita Fernandes

Freetech Intelligent Systems (1901036D CH) is planning to raise about US$200m through its upcoming Hong Kong IPO. The lead bookrunners for the deal are CITIC Securities, CICC, Huatai International, HSBC.
Freetech Intelligent Technology Ltd (FITL) is a provider of intelligent driving solutions, focusing on advanced driver assistance systems (ADAS) and autonomous driving systems (ADS) technologies.
It ranks third among domestic suppliers of Level 2 and Level 2+/2++ intelligent driving solutions in China, with a 2023 market share of 14.6%, according to CIC.

Lucror Analytics – Morning Views Asia

By Leonard Law, CFA

In today’s Morning Views publication we comment on developments of the following high yield issuers: Studio City, Yuexiu Property, Rakuten Group
In the US, the October JOLTS job openings came in above estimates at 7.74 mn (7.52 mn e / 7.37 mn p).
Long-end USTs fell yesterday, while the front end outperformed on expectations that a December rate cut remains on the table.

Parsing The Water Oasis (1161 HK) FY24 Profit Warning: Ex-One Offs Indicate Flat To Slight Growth

By Sameer Taneja

Headline profit numbers for FY24 indicate a 38-40% decline from 110 mn HKD in FY23 to 65-69 mn HKD, including non-cash impairment/property revaluation losses amounting to 44.2 mn HKD.
The implication is that core profits would have been 109-113 mn HKD for FY24; a slight earnings growth at the upper end is admirable in a weak HK demand environment.
Based on core earnings, the stock trades at 6x PE, >67% of the market capitalization in cash, and a 10% dividend yield. The company will release earnings on December 16th.

Pre-IPO Mao Geping Cosmetics (PHIP Updates) – Some Points Worth the Attention

By Xinyao (Criss) Wang

Behind MAO GEPING’s high profitability, there are hidden risks. One is the potential quality issues from ODM/OEM model, and the other is excessive reliance on Mr. Mao Geping’s personal IP.
Without strong R&D capabilities, high-end positioning isn’t firm.With increasing downward pressure in the industry, MAO GEPING would become passive in fierce competition and the industry trend of customers pursuing cost-effectiveness.
MAO GEPING’s valuation could be lower than Giant Biogene due to concerns on future sustainable growth prospects and profitability, but higher than industry average due to the strong short-term financial performance.

VRA; 3Q Preview: Learning and Moving Forward; Reiterate Buy, $6 Price Target

We are reiterating our Buy rating, $6 price target and projections for Vera Bradley with the company announcing 3QFY25 (October) results before the open on Wednesday.
We believe 3Q, the first full quarter of operations after the relaunch of the Vera Bradley brand in both the main line and outlet stores, remained a key learning experience, as management, after dramatically shifting the entire main line store and materially changing the outlets, begins to calibrate feedback to maximize the shifts and begin to attract a wider customer base.
While we remain cautious in our projections in the nearer term, we believe the shifts will help revive Vera Bradley and drive strong returns in the longer term.

ADEA: AMZN License Announced

ADEA announced a licensing agreement with AMZN setting the path for greater free cash flow in 2025. ADEA has previously mentioned it was close to signing two major licensing agreements.
We assume ADEA’s full year guidance includes catch-up revenue associated with the license since AMZN was never a licensee before.
ADEA had already signed several video streaming licenses, but AMZN would serve as the largest to date. It gives the investment story a stronger foundation.

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Dec 05

Daily Brief Energy/Materials: De Grey Mining, Ferrexpo Plc, Rain Industries, YPF SA, Ecovyst, Omai Gold Mines, Zephyr Energy, Empire Energy, KEFI Minerals PLC, Nicola Mining and more

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

In today’s briefing:

NST’s $5B Deal: Most Expensive Undeveloped Gold Mine Ever
FOOTSIE UK December 2024 Forecast (Final): ALW and STJ for Top 100; ROO and ONT for Next 250
The Beat Ideas: Rain Industries Ltd Analysis, A Cycle Play
Initiating Coverage on YPF: Outperform Opportunity Amid Macro and Shale Expansion
ECVT: Unlocking of Value
OMG: Drilling Continues with Wide and High-Grade Results
Zephyr Energy Plc (AIM: ZPHR): FY24 production guidance re-iterated. Binding agreement with Paradox partner by YE24
Empire Energy Group Ltd – Debt funding in place – full speed (drilling) ahead
KEFI Gold and Copper – Clearing the decks
NIM: Operational & Exploration Update + Closes Financing

NST’s $5B Deal: Most Expensive Undeveloped Gold Mine Ever

By Money of Mine

De Grey acquiring Northern Star for $5 billion
Northern Star issuing new shares to De Grey shareholders
Transformational deal with potential for future spin-offs and M&A opportunities

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

FOOTSIE UK December 2024 Forecast (Final): ALW and STJ for Top 100; ROO and ONT for Next 250

By Dimitris Ioannidis

Deliveroo (ROO LN) and Oxford Nanopore Technologies (ONT LN) are newly eligible securities forecasted to be added to F250 due to the recent change of the FCA listing category framework.
Ferrexpo Plc (FXPO LN) is the new forecasted addition-migration to F250 following its ~25% price jump over the last two days which made it surpass the entry threshold.
Applied Nutrition Plc (APN LN) is a newly eligible, forecasted to be added to small-cap following its IPO listing on 24 October 2024.

The Beat Ideas: Rain Industries Ltd Analysis, A Cycle Play

By Sudarshan Bhandari

Rain Industries (RINDL IN) is the largest player of CTP and 2nd largest player of CPC in the world delivering loss due to downcycle in industry.
CAQM enabled the import of GPC and CPC improved the pricing and demand further and also has created an opportunity for Rain Industries to ramp up its SEZ plant.
Rain Industries is pivoting to future-ready sectors like EVs and batteries while addressing cyclical challenges. Focused debt reduction and strategic investments enhance its long-term growth potential despite near-term pressures.

Initiating Coverage on YPF: Outperform Opportunity Amid Macro and Shale Expansion

By Leandro Gubler

We are initiating coverage on YPF with an Outperform recommendation.
Improving macroeconomic conditions in Argentina and YPF’s strategic focus on expanding unconventional production and investing in infrastructure, particularly export capacity, are expected to enhance its credit profile.
We favor the YPFDAR (Caa3/CCC/CCC) 8.500% 2029 unsecured bonds, YPFDAR 9.000% 2029 unsecured bonds, and YPFDAR 9.500% 2031 secured bonds.

ECVT: Unlocking of Value