Smartkarma Daily Briefs

I tally 47 – mostly firm, mostly Asia-Pac – transactions currently being discussed and analysed on Smartkarma. Inside is a timetable of upcoming key events for each deal.
Two new deals discussed on Smartkarma this week: Asia Cement China (743 HK)‘s rubbish Scheme; and the low-balled MBO for Nagatanien Holdings (2899 JP).
Key updates took place on: CPMC Holdings (906 HK), APM Human Services (APM AU), Altium (ALU AU), Austal (ASB AU),Shinko Electric Industries (6967 JP), and Hollysys Automation Technologies (HOLI US).

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Jun 09

Daily Brief South Korea: SK Square and more

By Smartkarma Daily Briefs | Daily Briefs, South Korea

In today’s briefing:

Potential Merger Dynamics Involving SK Inc, SK Square, & SK Hynix

Potential Merger Dynamics Involving SK Inc, SK Square, & SK Hynix

By Sanghyun Park

Regardless of the divorce proceedings, SK still urgently needs SK Inc’s stock price to rise for other reasons. That reason is to position SK Hynix directly under SK Inc.
SK Inc boosts stake in SK Square with SK Telecom shares, followed by a public tender offer to exchange SK Square shares for new SK Inc shares.
SK Inc’s involvement in the divorce lawsuit makes it a focus for traders seeking relative outperformance among the SK companies involved in this situation.

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Jun 09

Daily Brief Singapore: Jardine Cycle & Carriage and more

By Smartkarma Daily Briefs | Daily Briefs, Singapore

In today’s briefing:

Last Week in Event SPACE: Jardine Cycle & Carriage, “Name & Shame”, Asia Cement, Northern Minerals

Last Week in Event SPACE: Jardine Cycle & Carriage, “Name & Shame”, Asia Cement, Northern Minerals

A new tool highlights which TSE companies have disclosed a policy/consideration; sometimes referred to as the “name and shame” list. In practice, more “name” than “shame”.
Jardine Cycle & Carriage (JCNC SP) is trading rich to its NAV. And the simple ratio (JCNC/Astra International (ASII IJ)) is the highest level outside the 2008 GFC.
This is a rubbish Offer for Asia Cement China (743 HK). Given how shareholders voted at last year’s AGM, expect this Scheme to be voted down. Avoid.

Before it’s here, it’s on Smartkarma

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Jun 09

Daily Brief United States: Chubb , Ciena Corp, Generac Holdings, Progressive Corp, Tempus AI, Travelers Cos and more

By Smartkarma Daily Briefs | Daily Briefs, United States

In today’s briefing:

Chubb Limited: What Is Their Investment Strategy & Do They Have A Strategic Competitive Advantage? – Major Drivers
Ciena Corporation: Increased Deployment of Coherent Pluggable Technology in Data Centers! – Major Drivers
Generac Holdings: What Is The Story Of Their Expansion in Energy Technology and Storage Solutions? – Major Drivers
The Progressive Corporation: Leveraging Technology for Competitive Pricing! – Major Drivers
Tempus AI IPO: AI in Diagnostics at Scale, Investor Sentiment Appears Positive
The Travelers Companies: How Are They Adapting To Socio-Economic and Regulatory Changes? – Major Drivers

Chubb Limited: What Is Their Investment Strategy & Do They Have A Strategic Competitive Advantage? – Major Drivers

Chubb Limited showcased a strong performance in its Q1 2024 update, with notable growth across multiple segments and a robust financial posture.
The demonstrated acceleration in core operating income by over 20% to $2.2 billion and an operating EPS increase of nearly 23% to $5.41 underlines a solid upward trajectory.
Particularly impressive was the company’s Property & Casualty (P&C) segment where underwriting income rose over 15% to $1.4 billion, underscoring a combination of earned premium growth and favorable underwriting margins.

Ciena Corporation: Increased Deployment of Coherent Pluggable Technology in Data Centers! – Major Drivers

Ciena Corporation reported its fiscal second quarter 2024 financial results, delivering a mixture of strengths and areas for caution.
Revenue for the quarter reached $911 million, aligned with market expectations but reflecting the ongoing variability in the order patterns of service providers, particularly impacted by inventory adjustments.
The adjusted gross margin stood at 43.5%, showcasing the company’s ability to maintain profitability even in a fluctuating market scenario.

Generac Holdings: What Is The Story Of Their Expansion in Energy Technology and Storage Solutions? – Major Drivers

Generac Holdings delivered a mixed performance for the first quarter of 2024.
Strength in the Home Standby Generator segment and operational improvements played favorable roles, while declines in the global portable generators and domestic energy storage markets were notable drags on revenue.
Generac’s consistent effort in expanding its dealer and installer networks, alongside investments in both traditional and emerging product lines, solidifies its market leadership and positions it well for long-term growth.

The Progressive Corporation: Leveraging Technology for Competitive Pricing! – Major Drivers

Progressive Corporation reported strong first quarter results for 2024, marking a period of robust growth and profitability.
This quarter was highlighted by an 18% increase in net premiums written and an impressive combined ratio of 86.1%.
These results represent both growth and a sound strategic approach to rate revisions and risk management, reflective of the company’s core values and business strategy.

Tempus AI IPO: AI in Diagnostics at Scale, Investor Sentiment Appears Positive

By Andrei Zakharov

Tempus AI, a healthcare IT company and provider of next-gen diagnostics, is expected to IPO next week. The company plans to raise $411M at the high end of the range.
The most recent S-1/A puts the expected price range per share at $35 to $37, implying a market cap of ~$6B at the midpoint.
Tempus AI provides personalized cancer care and brings AI to healthcare at scale. They train LLMs to develop AI applications and have the largest public genomic data sets in oncology

The Travelers Companies: How Are They Adapting To Socio-Economic and Regulatory Changes? – Major Drivers

Travelers Companies Inc.’s first quarter 2024 results exhibit a strong financial performance characterized by solid growth in both top-line and bottom-line metrics, further strengthened by strategic initiatives and investments that bolster its market position.
The company reported core income of $1.1 billion, reflecting a notable increase from the previous year, despite facing a $211 million one-time tax benefit in the prior year’s quarter.
This performance was bolstered by a core return on equity of 15.4%, showcasing effective capital utilization.

Before it’s here, it’s on Smartkarma

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Jun 09

Daily Brief China: CPMC Holdings, Meituan and more

By Smartkarma Daily Briefs | China, Daily Briefs

In today’s briefing:

CPMC Holdings (906 HK): ORG’s Competing Offer Kicks off an Auction
Game On As ORG Lobs Competing Offer For CPMC (906 HK)
[Meituan (3690 HK, BUY, TP HK$156) TP Change]: Counting on Execution to Navigate the Uncertainties

CPMC Holdings (906 HK): ORG’s Competing Offer Kicks off an Auction

CPMC Holdings (906 HK) disclosed a competing pre-conditional voluntary offer from ORG Technology Co., Ltd. A (002701 CH) at HK$7.21, a 4.9% premium to Changping Industrial’s HK$6.87 offer.
Like the Changping Industrial offer, ORG’s offer is pre-conditional on regulatory approvals and has a 50% minimum acceptance condition. Changping Industrial has secured all regulatory approvals except SAMR.
ORG’s skinny premium and precarious irrevocable from Mr Zhang Wei suggests Changping Industrial’s next move is to secure Mr Wei’s irrevocable with a revised higher offer.

Game On As ORG Lobs Competing Offer For CPMC (906 HK)

After six months had elapsed, and CPMC Holdings (906 HK)‘s Offeror just needing SAMR/SAFE clearance before launching a firm bid, a competing Offer from ORG Technology (002701 CH) appeared unlikely.
Yet in a surprise move, ORG has made a pre-conditional (NDRC, SAFE, MoC, SAMR, and shareholder approval) Offer at HK$7.21/share, a 4.9% premium to the ongoing SASAC/NCSSF Offer.
ORG’s pre-con Offer also has a 50% acceptance condition. ORG and concert parties have 24.43%. And Zhang Wei (22.01%) has given has an irrevocable. Directors have 0.87%. Intriguing situation.

[Meituan (3690 HK, BUY, TP HK$156) TP Change]: Counting on Execution to Navigate the Uncertainties

By Ying Pan

Meituan reported C1Q24 revenue 6.0%/6.2% higher our estimate/consensus, and adjusted net income 19%/29% higher than our estimate/consensus. The stock fell on lower takeout order and in-store revenue guidance for C2Q24;
The stock has two uncertainties:(1)Strategic moves by Douyin and Eleme,(2)success of overseas expansion. There are no easy answers to these two questions but we believe the corner has been turned
We maintain the stock as BUY rating and raise TP to HK$156/share to factor in the improvement in profitability.

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Jun 09

Daily Brief Japan: Teijin Ltd and more

By Smartkarma Daily Briefs | Daily Briefs, Japan

In today’s briefing:

Weekly Deals Digest (09 Jun) – Teijin, Nagatanien, CF Logistics, Asia Cement, CPMC, MMG, Shift Up

Weekly Deals Digest (09 Jun) – Teijin, Nagatanien, CF Logistics, Asia Cement, CPMC, MMG, Shift Up

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: MMG (1208 HK) US$1.2 billion rights issue. Shift Up (462870 KS) seeks to raise up to US$320 million.
Event-Driven developments: Asia Cement China (743 HK), CPMC Holdings (906 HK), Chilled & Frozen Logistics Holdings (9099 JP), Nagatanien Holdings (2899 JP), Teijin Ltd (3401 JP), Altium Ltd (ALU AU).

Before it’s here, it’s on Smartkarma

The Smartkarma Preview Pass is your entry to the Independent Investment Research Network

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✓ Events & Webinars

Jun 09

Most Read: IDP Education, SK Square , CPMC Holdings, Altium Ltd, Yanolja, indie Semiconductor , Teijin Ltd, NIFTY Index and more

By Smartkarma Daily Briefs | Daily Briefs, Most Read

In today’s briefing:

MV Australia Equal Weight Index Rebalance Preview: Close Deletions in June
Potential Merger Dynamics Involving SK Inc, SK Square, & SK Hynix
Altium (ALU AU)’s 12th July Scheme Vote. Renesas’ Done Deal
CPMC Holdings (906 HK): ORG’s Competing Offer Kicks off an Auction
(Mostly) Asia-Pac M&A: CPMC, Nagatanien, APM Services, Altium, Austal, Shinko Elect, Hollysys
Initial Thoughts on the Yanolja IPO
Can indie Semiconductor Get Acquired? A Market-Defining Technology With High Differentiation & 3 Critical Factors Making It An Attractive Target! – Major Drivers
Weekly Deals Digest (09 Jun) – Teijin, Nagatanien, CF Logistics, Asia Cement, CPMC, MMG, Shift Up
EQD | The NIFTY Swung Big But the Rally Could Continue For +2 Weeks
Game On As ORG Lobs Competing Offer For CPMC (906 HK)

MV Australia Equal Weight Index Rebalance Preview: Close Deletions in June

By Brian Freitas

With the review period complete, there are 3 stocks that are close to the deletion zone and could be removed from the index at the June rebalance.
Even if there are no constituent changes, capping changes will lead to one-way turnover of 3.6% and a one-way trade of A$83m.
There are 6 stocks with over A$5m to trade from passive trackers but the impact on the stocks is not very high.

Potential Merger Dynamics Involving SK Inc, SK Square, & SK Hynix

By Sanghyun Park

Regardless of the divorce proceedings, SK still urgently needs SK Inc’s stock price to rise for other reasons. That reason is to position SK Hynix directly under SK Inc.
SK Inc boosts stake in SK Square with SK Telecom shares, followed by a public tender offer to exchange SK Square shares for new SK Inc shares.
SK Inc’s involvement in the divorce lawsuit makes it a focus for traders seeking relative outperformance among the SK companies involved in this situation.

Altium (ALU AU)’s 12th July Scheme Vote. Renesas’ Done Deal

Back on the 15th Feb, Renesas Electronics (6723 JP), a supplier of advanced semiconductors, entered into a Scheme with Altium Ltd (ALU AU).
Altium shareholders are being offered A$68.50/share, in cash, a lifetime high.
The Scheme Booklet is now out, with a Scheme Meeting to be held on the 12th July. Expected implementation on the 1 August. The IE says fair & reasonable.

CPMC Holdings (906 HK): ORG’s Competing Offer Kicks off an Auction

CPMC Holdings (906 HK) disclosed a competing pre-conditional voluntary offer from ORG Technology Co., Ltd. A (002701 CH) at HK$7.21, a 4.9% premium to Changping Industrial’s HK$6.87 offer.
Like the Changping Industrial offer, ORG’s offer is pre-conditional on regulatory approvals and has a 50% minimum acceptance condition. Changping Industrial has secured all regulatory approvals except SAMR.
ORG’s skinny premium and precarious irrevocable from Mr Zhang Wei suggests Changping Industrial’s next move is to secure Mr Wei’s irrevocable with a revised higher offer.

(Mostly) Asia-Pac M&A: CPMC, Nagatanien, APM Services, Altium, Austal, Shinko Elect, Hollysys

I tally 47 – mostly firm, mostly Asia-Pac – transactions currently being discussed and analysed on Smartkarma. Inside is a timetable of upcoming key events for each deal.
Two new deals discussed on Smartkarma this week: Asia Cement China (743 HK)‘s rubbish Scheme; and the low-balled MBO for Nagatanien Holdings (2899 JP).
Key updates took place on: CPMC Holdings (906 HK), APM Human Services (APM AU), Altium (ALU AU), Austal (ASB AU),Shinko Electric Industries (6967 JP), and Hollysys Automation Technologies (HOLI US).

Initial Thoughts on the Yanolja IPO

By Douglas Kim

Yanolja is getting ready to complete its IPO in the US in the next several months. Softbank invested about US$1.7 billion in Yanolja in 2021.
The valuation of Yanolja could be between US$7 billion to US$9 billion. The company could raise nearly US$400 million in this IPO.
Overall, we are concerned about the valuations of Yanolja if indeed the bankers push ahead with the IPO at the valuation range of US$7 billion to US$9 billion.

Can indie Semiconductor Get Acquired? A Market-Defining Technology With High Differentiation & 3 Critical Factors Making It An Attractive Target! – Major Drivers

Indie Semiconductor’s Q1 2024 financial results and strategic discussion provide both encouraging and cautionary insights.
During this period, the company reported a year-over-year revenue increase of 29% to $52.4 million, driven by strong performance in their Autotech market segment, albeit slightly below the provided guidance.
Gross profit stood at $26.4 million, reflecting a gross margin of 50.3%, which fell short of expectations due to unfavorable product mix adjustments.

Weekly Deals Digest (09 Jun) – Teijin, Nagatanien, CF Logistics, Asia Cement, CPMC, MMG, Shift Up

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: MMG (1208 HK) US$1.2 billion rights issue. Shift Up (462870 KS) seeks to raise up to US$320 million.
Event-Driven developments: Asia Cement China (743 HK), CPMC Holdings (906 HK), Chilled & Frozen Logistics Holdings (9099 JP), Nagatanien Holdings (2899 JP), Teijin Ltd (3401 JP), Altium Ltd (ALU AU).

EQD | The NIFTY Swung Big But the Rally Could Continue For +2 Weeks

By Nico Rosti

The NIFTY Index has been swinging wildly as of lately, but the odds look good for a continuation of the rally at the moment.
The index is in a pattern where it can rally for 1-2 more weeks.
Wait for prices in the 23500/23700 resistance area before considering a SHORT trade.

Game On As ORG Lobs Competing Offer For CPMC (906 HK)

After six months had elapsed, and CPMC Holdings (906 HK)‘s Offeror just needing SAMR/SAFE clearance before launching a firm bid, a competing Offer from ORG Technology (002701 CH) appeared unlikely.
Yet in a surprise move, ORG has made a pre-conditional (NDRC, SAFE, MoC, SAMR, and shareholder approval) Offer at HK$7.21/share, a 4.9% premium to the ongoing SASAC/NCSSF Offer.
ORG’s pre-con Offer also has a 50% acceptance condition. ORG and concert parties have 24.43%. And Zhang Wei (22.01%) has given has an irrevocable. Directors have 0.87%. Intriguing situation.

Before it’s here, it’s on Smartkarma

The Smartkarma Preview Pass is your entry to the Independent Investment Research Network

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

Jun 09

Daily Brief Industrials: SK Square , Generac Holdings and more

By Smartkarma Daily Briefs | Daily Briefs, Industrials

In today’s briefing:

Potential Merger Dynamics Involving SK Inc, SK Square, & SK Hynix
Generac Holdings: What Is The Story Of Their Expansion in Energy Technology and Storage Solutions? – Major Drivers

Potential Merger Dynamics Involving SK Inc, SK Square, & SK Hynix

By Sanghyun Park

Regardless of the divorce proceedings, SK still urgently needs SK Inc’s stock price to rise for other reasons. That reason is to position SK Hynix directly under SK Inc.
SK Inc boosts stake in SK Square with SK Telecom shares, followed by a public tender offer to exchange SK Square shares for new SK Inc shares.
SK Inc’s involvement in the divorce lawsuit makes it a focus for traders seeking relative outperformance among the SK companies involved in this situation.

Generac Holdings: What Is The Story Of Their Expansion in Energy Technology and Storage Solutions? – Major Drivers

Generac Holdings delivered a mixed performance for the first quarter of 2024.
Strength in the Home Standby Generator segment and operational improvements played favorable roles, while declines in the global portable generators and domestic energy storage markets were notable drags on revenue.
Generac’s consistent effort in expanding its dealer and installer networks, alongside investments in both traditional and emerging product lines, solidifies its market leadership and positions it well for long-term growth.

Before it’s here, it’s on Smartkarma

The Smartkarma Preview Pass is your entry to the Independent Investment Research Network

✓ Unlimited Research Summaries
✓ Personalised Alerts
✓ Custom Watchlists
✓ Company Data and News
✓ Events & Webinars

Jun 09

Daily Brief Energy/Materials: CPMC Holdings, Teijin Ltd and more

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

In today’s briefing:

CPMC Holdings (906 HK): ORG’s Competing Offer Kicks off an Auction
Weekly Deals Digest (09 Jun) – Teijin, Nagatanien, CF Logistics, Asia Cement, CPMC, MMG, Shift Up
Game On As ORG Lobs Competing Offer For CPMC (906 HK)

CPMC Holdings (906 HK): ORG’s Competing Offer Kicks off an Auction

CPMC Holdings (906 HK) disclosed a competing pre-conditional voluntary offer from ORG Technology Co., Ltd. A (002701 CH) at HK$7.21, a 4.9% premium to Changping Industrial’s HK$6.87 offer.
Like the Changping Industrial offer, ORG’s offer is pre-conditional on regulatory approvals and has a 50% minimum acceptance condition. Changping Industrial has secured all regulatory approvals except SAMR.
ORG’s skinny premium and precarious irrevocable from Mr Zhang Wei suggests Changping Industrial’s next move is to secure Mr Wei’s irrevocable with a revised higher offer.

Weekly Deals Digest (09 Jun) – Teijin, Nagatanien, CF Logistics, Asia Cement, CPMC, MMG, Shift Up

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: MMG (1208 HK) US$1.2 billion rights issue. Shift Up (462870 KS) seeks to raise up to US$320 million.
Event-Driven developments: Asia Cement China (743 HK), CPMC Holdings (906 HK), Chilled & Frozen Logistics Holdings (9099 JP), Nagatanien Holdings (2899 JP), Teijin Ltd (3401 JP), Altium Ltd (ALU AU).

Game On As ORG Lobs Competing Offer For CPMC (906 HK)

After six months had elapsed, and CPMC Holdings (906 HK)‘s Offeror just needing SAMR/SAFE clearance before launching a firm bid, a competing Offer from ORG Technology (002701 CH) appeared unlikely.
Yet in a surprise move, ORG has made a pre-conditional (NDRC, SAFE, MoC, SAMR, and shareholder approval) Offer at HK$7.21/share, a 4.9% premium to the ongoing SASAC/NCSSF Offer.
ORG’s pre-con Offer also has a 50% acceptance condition. ORG and concert parties have 24.43%. And Zhang Wei (22.01%) has given has an irrevocable. Directors have 0.87%. Intriguing situation.

Before it’s here, it’s on Smartkarma

The Smartkarma Preview Pass is your entry to the Independent Investment Research Network

✓ Unlimited Research Summaries
✓ Personalised Alerts
✓ Custom Watchlists
✓ Company Data and News
✓ Events & Webinars

Jun 09

Daily Brief TMT/Internet: Altium Ltd, Ciena Corp and more

By Smartkarma Daily Briefs | Daily Briefs, TMT/Internet

In today’s briefing:

(Mostly) Asia-Pac M&A: CPMC, Nagatanien, APM Services, Altium, Austal, Shinko Elect, Hollysys
Ciena Corporation: Increased Deployment of Coherent Pluggable Technology in Data Centers! – Major Drivers

(Mostly) Asia-Pac M&A: CPMC, Nagatanien, APM Services, Altium, Austal, Shinko Elect, Hollysys

I tally 47 – mostly firm, mostly Asia-Pac – transactions currently being discussed and analysed on Smartkarma. Inside is a timetable of upcoming key events for each deal.
Two new deals discussed on Smartkarma this week: Asia Cement China (743 HK)‘s rubbish Scheme; and the low-balled MBO for Nagatanien Holdings (2899 JP).
Key updates took place on: CPMC Holdings (906 HK), APM Human Services (APM AU), Altium (ALU AU), Austal (ASB AU),Shinko Electric Industries (6967 JP), and Hollysys Automation Technologies (HOLI US).

Ciena Corporation: Increased Deployment of Coherent Pluggable Technology in Data Centers! – Major Drivers