Smartkarma Daily Briefs

The Sep24 Nikkei 225 Rebal was odd. They could have done 3. They did 2. For now, I see 2 IN and 2 OUT for the Mar25 Nikkei 225 Rebal.
There is also a capping event for Fast Retailing which on mild outperformance could become a double-capping event.
There is a bit of a tech bent to potential ADDs. Some Consumer Goods stocks need stock splits to get in. The Committee will regret not adding PPIH last time.

Impact on Korea Zinc’s Balance Sheet and Debt Ratios Post Massive Debt Raise Proposed by Choi Family

We discuss the impact on the balance sheet and debt ratios of Korea Zinc’s efforts to conduct a massive debt increase to buyback and cancel shares.
Although the Choi family may consider raising further debt to increase the tender offer price even further, we believe this could pose further balance sheet risk on Korea Zinc.
We provide sensitivity analysis of higher debt on the interest coverage ratios of Korea Zinc.

Shinko Electric (6967 JP) Takeover – Still Buy Dips, and Ibiden (4062 JP)

In August, Shinko Electric Industries (6967 JP) announced that the JIC consortium Tender Offer due to be launched by end-August would be delayed. Next update? January 2025.
Everyone had expected a delay, but the stock fell. Then tech/AI fell out of bed, Ibiden crashed, China export restrictions noise/pushback caused further upset. But Ibiden and tech are rebounding.
At 9% it was a raging buy;post-dip at 7% it was good. Now it’s 6+%. Still wide, still interesting, still stable but year-end path dependency… So I still like Ibiden.

(Mostly) Asia-Pac M&A: Descente, Shin Kong Financial, T Gaia, Shinsegae E&C, MPHB, Pacific Smiles

I tally 44 – mostly firm, mostly Asia-Pac – transactions currently being discussed and analysed on Smartkarma. Inside is a timetable of upcoming key events for each deal.
Three new deals discussed this week: T Gaia (3738 JP)‘s and Shinsegae E&C (034300 KS) Tender Offers, and MPHB (MPHB MK)‘s SCR. Plus ASMPT (522 HK) in the crosshairs. Again.
Key updates took place on: Sigma Healthcare (SIG AU), Descente Ltd (8114 JP), Shin Kong Financial Holding (2888 TT), Pacific Smiles (PSQ AU), and Greatview Aseptic Packaging (468 HK).

Last Week in Event SPACE: Shin Kong/Taishin, ASMPT, Korea Zinc/Young Poong Precision, Sigma Health

Taishin‘s bid clearly has governance/related party issues and a significant portion of the “non-Taishin” reps on the Shin Kong Board had issues. October 9th passage is not a done deal.
KKR’s “bid” for ASMPT (522 HK) has all the hallmarks of the “approach” by PAG last year. Which came to nought. From a regulatory standpoint, it’s unlikely to get up.
Never a dull moment for Korea Zinc (010130 KS). The Choi family makes Offers for KZ and Young Poong Precision (036560 KS) (YPP). Then MBK counters for both.

💡 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

Oct 06

Daily Brief Macro: A Powerful Buy Signal and more

By Smartkarma Daily Briefs | Daily Briefs, Macro

In today’s briefing:

A Powerful Buy Signal, With Caveats
Heard From Fortress Hill: Weekly Market Observations (04 Oct 2024)
U.S. September Nonfarm Payroll – A Strong Month and Less Downside Risk

A Powerful Buy Signal, With Caveats

By Cam Hui

The combination of easier monetary policy by most global central banks and strong price momentum is equity bullish.
However, investors should be aware of the risks to the growth outlook.
Global institutions are underweight risk and they may be forced to play catch-up. But fast money risk appetite is elevated, which makes stock prices vulnerable to short-term setbacks.

Heard From Fortress Hill: Weekly Market Observations (04 Oct 2024)

By Alex Ng

The center of this week market is still the impact of PBOC’s serial interest rate cuts and $800billion fund into the stock market.
Assuming the LTV ratio to be 0.6 and public-private fund ratio at 1:1, there will be RMB 4 trillion fund released to trade stock.
Divide this amount by 0.5 trillion transaction volume, all fund will dry up in about 8 trading days. After that, performance will depend on fundamentals and remnants of the euphoria.

U.S. September Nonfarm Payroll – A Strong Month and Less Downside Risk

By Alex Ng

September’s non-farm payroll is well above consensus with a rise of 254k from 142k in August, above our in house forecast of 159K and the consensus of 150K.
. Unemployment unexpectedly fell to 4.1% from 4.2% and average hourly earnings were above trend at 0.4% again with upward back revisions.
This is clearly a strong report, even with a dip in the workweek to 34.2 from 34.3 hours.

💡 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

Oct 06

Daily Brief South Korea: Korea Zinc and more

By Smartkarma Daily Briefs | Daily Briefs, South Korea

In today’s briefing:

Impact on Korea Zinc’s Balance Sheet and Debt Ratios Post Massive Debt Raise Proposed by Choi Family

Impact on Korea Zinc’s Balance Sheet and Debt Ratios Post Massive Debt Raise Proposed by Choi Family

We discuss the impact on the balance sheet and debt ratios of Korea Zinc’s efforts to conduct a massive debt increase to buyback and cancel shares.
Although the Choi family may consider raising further debt to increase the tender offer price even further, we believe this could pose further balance sheet risk on Korea Zinc.
We provide sensitivity analysis of higher debt on the interest coverage ratios of Korea Zinc.

💡 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

Oct 06

Daily Brief United States: Alphabet, NVIDIA Corp, Reservoir Media , Broadridge Financial Solutions, Inc, Cable One Inc, Clear Secure, Corpay, Darden Restaurants, Factset Research Systems Inc, General Mills and more

By Smartkarma Daily Briefs | Daily Briefs, United States

In today’s briefing:

Google Q3 2024 Earnings Preview: AI Investments, Antitrust Battles, and Advertising in Focus
NVIDIA’s “Insane” Blackwell Demand & The New NVLM Model – Can It Redefine AI Computing in 2025?
Why Reservoir Media May Be Significantly Undervalued – Irenic Capital’s Bold Take!
Broadridge Financial Solutions: These Are The 7 Most Critical Factors Driving Its Performance In 2025 & Beyond! – Financial Forecasts
Cable One Inc.: Network Investments & Multi-Gig Speeds Are Driving Our Optimism! – Major Drivers
Clear Secure Inc.: How Will It Deal With The Challenge of Scaling Infrastructure Reliably? – Major Drivers
Corpay Inc.: Product Innovation & Market Fit As A Key Growth Catalyst! – Major Drivers
Darden Restaurants Inc.: Expanded Delivery Partnerships & Menu Enhancements Can Catalyze Growth? – Major Drivers
FactSet Research Systems: How Is It Dealing With The Risk of Aligning With Evolving Data Demands & Other Challenges? – Major Drivers
General Mills Inc.: A Tale Of Strategic Divestitures & Bolt-On Acquisitions! – Major Drivers

Google Q3 2024 Earnings Preview: AI Investments, Antitrust Battles, and Advertising in Focus

By Uttkarsh Kohli

Google’s AI infrastructure spending remains a priority, with capex exceeding $12 billion per quarter, highlighting aggressive expansion in cloud and AI-driven services.
Competition from Meta and TikTok has pressured Google’s advertising, especially YouTube. Q3 performance will gauge its ability to maintain dominance in digital ads.
Ongoing antitrust trials pose a long-term risk to Google’s business operations, particularly in search and advertising. Potential regulatory action could impact future growth strategies.

NVIDIA’s “Insane” Blackwell Demand & The New NVLM Model – Can It Redefine AI Computing in 2025?

NVIDIA (NASDAQ: NVDA) is on the brink of yet another significant leap in AI computing with its latest Blackwell GPU, as CEO Jensen Huang recently emphasized in an interview with CNBC.
Describing the demand as “insane,” Huang noted that Blackwell is already in full production and on track to be released to data centers for AI applications, with consumer availability slated for 2025.
The company’s growth, particularly in its Data Center division, has been fueled by AI workloads, driven by GPU computing, networking platforms, and accelerated AI demand.

Why Reservoir Media May Be Significantly Undervalued – Irenic Capital’s Bold Take!

Reservoir Media, a company known for its engagement with talent and diverse music assets, delivered mixed results in its first quarter of fiscal year 2025.
Like many companies in the music industry, it is navigating a complex landscape influenced by digital transformations and global market trends.
On the positive side, Reservoir Media experienced notable growth in its Music Publishing segment, showing a 15% increase in revenue.

Broadridge Financial Solutions: These Are The 7 Most Critical Factors Driving Its Performance In 2025 & Beyond! – Financial Forecasts

Broadridge Financial Solutions has displayed robust financial performance and maintained consistent growth in its earnings, backed by a strategy focused on transforming and digitizing the financial services industry.
The company’s fiscal year 2024 concluded with a significant uplift in closed sales and improved earnings per share (EPS), demonstrating resilience and agility in a fluctuating market environment.
Baptista Research looks to evaluate the different factors that could influence the company’s price in the near future and attempts to carry out an independent valuation of the company using a Discounted Cash Flow (DCF) methodology.

Cable One Inc.: Network Investments & Multi-Gig Speeds Are Driving Our Optimism! – Major Drivers

Cable One’s Q2 2024 earnings reflected a transformative period for the company amidst evolving market challenges and the ending of the Affordable Connectivity Program (ACP).
A crucial aspect highlighted was the ending of ACP, which resulted in the loss of about 4,000 customers from an approximate total of 48,000 affected customers.
Despite these challenges, Cable One managed to sustain customer growth trends positively, leveraging their robust network and local market initiatives to mitigate losses.

Clear Secure Inc.: How Will It Deal With The Challenge of Scaling Infrastructure Reliably? – Major Drivers

Clear Secure remains steadfast in its commitment to grow its member base, enhance the customer experience, and improve its financial stability, with several significant developments detailed in the fiscal second quarter 2024 earnings call.
The company reported robust growth, adding 2.3 million new members, and highlighted its innovative projects, like the implementation of new technologies to make travel and identity verification smoother and more integrated.
Baptista Research looks to evaluate the different factors that could influence the company’s price in the near future and attempts to carry out an independent valuation of the company using a Discounted Cash Flow (DCF) methodology.

Corpay Inc.: Product Innovation & Market Fit As A Key Growth Catalyst! – Major Drivers

The latest earnings for Corpay outlined a comprehensive narrative of the company’s financial performance for the second quarter of 2024, its progress in addressing challenges, and strategic actions aimed at shaping its business landscape.
Starting with financials, Corpay reported that its Q2 2024 revenue stood at $976 million, marking a 7% increase, excluding the impact from the Russian market.
The adjusted cash EPS was announced to be at $4.55, up by 14%, also excluding Russia.

Darden Restaurants Inc.: Expanded Delivery Partnerships & Menu Enhancements Can Catalyze Growth? – Major Drivers

Darden Restaurants, Inc. has reported its financial performance for the first quarter of fiscal year 2025, exhibiting mixed results that underscore the prevailing challenges and operational strides within the competitive dining industry.
Despite burgeoning industry headwinds and a dip below expectations for the quarter, Darden’s strategic maneuvers and robust brand portfolio continue to fortify its market position.
Baptista Research looks to evaluate the different factors that could influence the company’s price in the near future and attempts to carry out an independent valuation of the company using a Discounted Cash Flow (DCF) methodology.

FactSet Research Systems: How Is It Dealing With The Risk of Aligning With Evolving Data Demands & Other Challenges? – Major Drivers

FactSet, a global financial data and software company, recently disclosed its fourth quarter and full-year fiscal 2024 results.
The company reported an annual organic ASV plus professional services growth of $104 million or 4.8%, a figure aligning with its forecasts.
Its total annual revenue climbed to $2.2 billion while adjusted operating margin improved to 37.8%, and adjusted earnings per share (EPS) increased to $16.45, evidencing a 12.3% growth.

General Mills Inc.: A Tale Of Strategic Divestitures & Bolt-On Acquisitions! – Major Drivers

General Mills noted a slight improvement in the macro environment, with North America Retail categories experiencing some growth.
However, this wasn’t attributed significantly to a permanent shift in consumer behavior towards more at-home food consumption, but rather a reaction to current economic stresses where at home meals remain a more economical option for consumers than eating out.
Baptista Research looks to evaluate the different factors that could influence the company’s price in the near future and attempts to carry out an independent valuation of the company using a Discounted Cash Flow (DCF) methodology.

💡 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

Oct 06

Daily Brief China: Contemporary Amperex Technology (CATL), TCL Corp (A), Sihuan Pharmaceutical Hldgs, Lalatech Holdings Co Ltd and more

By Smartkarma Daily Briefs | China, Daily Briefs

In today’s briefing:

CATL Chairman Sees Recycled Lithium as the Future of EV-Battery Making
TCL Acquires LG Display’s LCD Plants in Guangzhou as Industry Consolidates
China Healthcare Weekly (Oct.6) – WuXi to Sell Assets, Be Rational on China CXO, Sihuan Underperform
Lalatech IPO | Review of H124 Financials & Operating Stats | Strike While the Iron Is Hot-Ish?

CATL Chairman Sees Recycled Lithium as the Future of EV-Battery Making

Half of all lithium-ion batteries could be made with recycled lithium by 2042, according to the founder of power cell giant Contemporary Amperex Technology Co. Ltd. (CATL) (300750.SZ +11.06%), who presented a vision of an eco-friendlier industry at a recent event.
Speaking at the World New Energy Vehicles Congress on Friday, Zeng Yuqun, also CATL’s chairman, highlighted the critical role power cells can play in driving the EV industry toward a zero-carbon future, saying that the sustainable development of the industry hinges on the use of recycled battery raw materials.
CATL’s battery recycling business has already taken shape, with a current annual capacity to process 270,000 tons of used batteries, Zeng said.

TCL Acquires LG Display’s LCD Plants in Guangzhou as Industry Consolidates

TCL Technology Group Corp.
(000100.SZ +7.51%), a leading Chinese electronics maker, has agreed to pay 10.8 billion yuan ($1.54 billion) to acquire LG’s two display factories in Guangzhou, as Chinese manufacturers strengthen their dominance in the liquid crystal displays (LCD).
TCL China Star Optoelectronics Technology (TCL CSOT), a subsidiary of TCL Technology, will acquire 80% of LG Display China and the entire stake of LG Display Guangzhou.

China Healthcare Weekly (Oct.6) – WuXi to Sell Assets, Be Rational on China CXO, Sihuan Underperform

By Xinyao (Criss) Wang

Investors always have expectations for Chinese CXOs, believing that BIOSECURE Act will not pass and Chinese CXOs will bottom out. We can understand this, but we have to be rational.
Selling the operations that have been negatively affected is a reasonable choice, which helps stabilize WuXi’s business/market expectations. But this does not necessarily mean the geopolitical conflict will end here.
Without persuasive long-term logic, share price of Sihuan would still underperform. Despite strong performance of Chinese stocks, we advise investors to do short-term trading on Sihuan Pharmaceutical Hldgs (460 HK).

Lalatech IPO | Review of H124 Financials & Operating Stats | Strike While the Iron Is Hot-Ish?

By Daniel Hellberg

In a new filing with HKEX, we can see Lalatech’s revenue growth slow
The company’s grip on CoR loosened, but OpEx growth in H1 was minimal
Given improving market conditions, we believe Lalatech may finally sell shares

💡 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

Oct 06

Daily Brief Japan: Kokusai Electric , Ibiden Co Ltd, Descente Ltd, Tokyo Metro, TSE Tokyo Price Index TOPIX and more

By Smartkarma Daily Briefs | Daily Briefs, Japan

In today’s briefing:

Quiddity Mar25 Nikkei 225 Rebal: Likely 2 IN, 2 OUT, Again; Minimal Surprise Factor
Shinko Electric (6967 JP) Takeover – Still Buy Dips, and Ibiden (4062 JP)
(Mostly) Asia-Pac M&A: Descente, Shin Kong Financial, T Gaia, Shinsegae E&C, MPHB, Pacific Smiles
Weekly Deals Digest (06 Oct) – Tokyo Metro, Rigaku, CR Beverage, K Bank, ASMPT, Samson, T-Gaia
Will TSE’s Mock Engagement Measures Work?

Quiddity Mar25 Nikkei 225 Rebal: Likely 2 IN, 2 OUT, Again; Minimal Surprise Factor

The Sep24 Nikkei 225 Rebal was odd. They could have done 3. They did 2. For now, I see 2 IN and 2 OUT for the Mar25 Nikkei 225 Rebal.
There is also a capping event for Fast Retailing which on mild outperformance could become a double-capping event.
There is a bit of a tech bent to potential ADDs. Some Consumer Goods stocks need stock splits to get in. The Committee will regret not adding PPIH last time.

Shinko Electric (6967 JP) Takeover – Still Buy Dips, and Ibiden (4062 JP)

In August, Shinko Electric Industries (6967 JP) announced that the JIC consortium Tender Offer due to be launched by end-August would be delayed. Next update? January 2025.
Everyone had expected a delay, but the stock fell. Then tech/AI fell out of bed, Ibiden crashed, China export restrictions noise/pushback caused further upset. But Ibiden and tech are rebounding.
At 9% it was a raging buy;post-dip at 7% it was good. Now it’s 6+%. Still wide, still interesting, still stable but year-end path dependency… So I still like Ibiden.

(Mostly) Asia-Pac M&A: Descente, Shin Kong Financial, T Gaia, Shinsegae E&C, MPHB, Pacific Smiles

I tally 44 – mostly firm, mostly Asia-Pac – transactions currently being discussed and analysed on Smartkarma. Inside is a timetable of upcoming key events for each deal.
Three new deals discussed this week: T Gaia (3738 JP)‘s and Shinsegae E&C (034300 KS) Tender Offers, and MPHB (MPHB MK)‘s SCR. Plus ASMPT (522 HK) in the crosshairs. Again.
Key updates took place on: Sigma Healthcare (SIG AU), Descente Ltd (8114 JP), Shin Kong Financial Holding (2888 TT), Pacific Smiles (PSQ AU), and Greatview Aseptic Packaging (468 HK).

Weekly Deals Digest (06 Oct) – Tokyo Metro, Rigaku, CR Beverage, K Bank, ASMPT, Samson, T-Gaia

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: Tokyo Metro (9023 JP), Rigaku Holdings (268A JP), K Bank (279570 KS) and China Resources Beverage (CRB HK) IPOs.
Event-Driven developments: ASM Pacific Technology (522 HK), Greatview Aseptic Packaging (468 HK), Samson Holding (531 HK), Descente Ltd (8114 JP), T Gaia Corp (3738 JP).

Will TSE’s Mock Engagement Measures Work?

By Aki Matsumoto

TSE’s classification translates into three groups: companies which can independently increase capital profitability, companies which haven’t yet fully implemented plans, and companies which haven’t yet responded to “TSE’s request.”
Mock engagements by TSE, which doesn’t have voting rights, will be focused on whether they actually make the company think about management strategies and implement them, thereby increasing corporate value.
To help companies effectively implement “TSE’s request,” an idea would be to offer time-limited discount on listing fee paid to TSE by companies that have significantly increased their market capitalization.

💡 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

Oct 06

Most Read: Ventia, Auckland Intl Airport, Longfor Properties, Kokusai Electric , Korea Zinc, Ibiden Co Ltd, Descente Ltd, Tokyo Metro and more

By Smartkarma Daily Briefs | Daily Briefs, Most Read

In today’s briefing:

ASX100/ASX200 Index: Replacement Candidates for Virgin Money (VUK AU)
Auckland Airport (AIA NZ) Placement: Index Impact
HSCEI Index Rebalance Preview: High & Low Probability Changes
HK RE Series (4) With Macro Backdrop in US & China, HK Is Positioned for a Strong Rerating, Buy Now!
Quiddity Mar25 Nikkei 225 Rebal: Likely 2 IN, 2 OUT, Again; Minimal Surprise Factor
Impact on Korea Zinc’s Balance Sheet and Debt Ratios Post Massive Debt Raise Proposed by Choi Family
Shinko Electric (6967 JP) Takeover – Still Buy Dips, and Ibiden (4062 JP)
(Mostly) Asia-Pac M&A: Descente, Shin Kong Financial, T Gaia, Shinsegae E&C, MPHB, Pacific Smiles
ASX Short Interest Weekly (Sep 27th): Rio Tinto, BHP, Fortescue, Goodman, Santos
Weekly Deals Digest (06 Oct) – Tokyo Metro, Rigaku, CR Beverage, K Bank, ASMPT, Samson, T-Gaia

ASX100/ASX200 Index: Replacement Candidates for Virgin Money (VUK AU)

By Brian Freitas

Following its acquisition by Nationwide, Virgin Money UK Plc (VUK AU) is scheduled to stop trading on the ASX Ltd (ASX AU) after market close on 25 September.
Virgin Money UK Plc (VUK AU) is a member of the S&P/ASX100 Index and S&P/ASX 200 (AS51 INDEX) and there will be adhoc inclusions at the close on 25 September.
There are a couple of stocks vying for inclusion in each index and the next couple of days will determine which ones make it.

Auckland Airport (AIA NZ) Placement: Index Impact

By Brian Freitas

Auckland Intl Airport (AIA NZ) has announced an underwritten placement of NZ$1.2bn and a non-underwritten retail offer to raise NZ$200m.
The stock is trading near the low end of its range over the last few years and the 7% discount from the last close should attract investor interest.
We estimate passive trackers will need to buy around 13.5% of the placement shares coinciding with the settlement date on 20 September.

HSCEI Index Rebalance Preview: High & Low Probability Changes

By Brian Freitas

PICC Property & Casualty H (2328 HK) inclusion and Longfor Properties (960 HK) deletion are high probability changes for the Hang Seng China Enterprises Index (HSCEI INDEX) in December.
There is a lower probability of China Resources Power (836 HK) being added and of Sino Biopharmaceutical (1177 HK) being deleted at the rebalance.
There has been big short covering in PICC Property & Casualty (2328 HK) over the last couple of months while shorts would have covered Longfor Properties (960 HK) recently.

HK RE Series (4) With Macro Backdrop in US & China, HK Is Positioned for a Strong Rerating, Buy Now!

By Jacob Cheng

The wait is finally over. The Fed delivered a 50bps rate cut in September meeting, kick- starting a new rate cut cycle
The rate cut is an absolute game changer for Hong Kong real estate. Physical market will recover with lower mortgage rate and companies will enjoy lower borrow rate
With the macro backdrop in US and China, Hong Kong is well positioned for as strong re-rating with mega catalysts ahead – Buy HK real estate, especially SHKP and NWD

Quiddity Mar25 Nikkei 225 Rebal: Likely 2 IN, 2 OUT, Again; Minimal Surprise Factor

The Sep24 Nikkei 225 Rebal was odd. They could have done 3. They did 2. For now, I see 2 IN and 2 OUT for the Mar25 Nikkei 225 Rebal.
There is also a capping event for Fast Retailing which on mild outperformance could become a double-capping event.
There is a bit of a tech bent to potential ADDs. Some Consumer Goods stocks need stock splits to get in. The Committee will regret not adding PPIH last time.

Impact on Korea Zinc’s Balance Sheet and Debt Ratios Post Massive Debt Raise Proposed by Choi Family

We discuss the impact on the balance sheet and debt ratios of Korea Zinc’s efforts to conduct a massive debt increase to buyback and cancel shares.
Although the Choi family may consider raising further debt to increase the tender offer price even further, we believe this could pose further balance sheet risk on Korea Zinc.
We provide sensitivity analysis of higher debt on the interest coverage ratios of Korea Zinc.

Shinko Electric (6967 JP) Takeover – Still Buy Dips, and Ibiden (4062 JP)

In August, Shinko Electric Industries (6967 JP) announced that the JIC consortium Tender Offer due to be launched by end-August would be delayed. Next update? January 2025.
Everyone had expected a delay, but the stock fell. Then tech/AI fell out of bed, Ibiden crashed, China export restrictions noise/pushback caused further upset. But Ibiden and tech are rebounding.
At 9% it was a raging buy;post-dip at 7% it was good. Now it’s 6+%. Still wide, still interesting, still stable but year-end path dependency… So I still like Ibiden.

(Mostly) Asia-Pac M&A: Descente, Shin Kong Financial, T Gaia, Shinsegae E&C, MPHB, Pacific Smiles

I tally 44 – mostly firm, mostly Asia-Pac – transactions currently being discussed and analysed on Smartkarma. Inside is a timetable of upcoming key events for each deal.
Three new deals discussed this week: T Gaia (3738 JP)‘s and Shinsegae E&C (034300 KS) Tender Offers, and MPHB (MPHB MK)‘s SCR. Plus ASMPT (522 HK) in the crosshairs. Again.
Key updates took place on: Sigma Healthcare (SIG AU), Descente Ltd (8114 JP), Shin Kong Financial Holding (2888 TT), Pacific Smiles (PSQ AU), and Greatview Aseptic Packaging (468 HK).

ASX Short Interest Weekly (Sep 27th): Rio Tinto, BHP, Fortescue, Goodman, Santos

By Ke Yan, CFA, FRM

We analyzed the changes in short interest of ASX Stocks as of Sep 27th (reported today) which has an aggregated short interest worth USD27.6bn.
We tabulate league table for top short by value and short as multiple of ADT, as well as weekly increases & decreases in short value, short as multiple of ADT.
We highlight short interest changes in Rio Tinto, BHP, Fortescue, Goodman, Santos.

Weekly Deals Digest (06 Oct) – Tokyo Metro, Rigaku, CR Beverage, K Bank, ASMPT, Samson, T-Gaia

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: Tokyo Metro (9023 JP), Rigaku Holdings (268A JP), K Bank (279570 KS) and China Resources Beverage (CRB HK) IPOs.
Event-Driven developments: ASM Pacific Technology (522 HK), Greatview Aseptic Packaging (468 HK), Samson Holding (531 HK), Descente Ltd (8114 JP), T Gaia Corp (3738 JP).

💡 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

Oct 06

Daily Brief Industrials: Tokyo Metro, Contemporary Amperex Technology (CATL), Lyft and more

By Smartkarma Daily Briefs | Daily Briefs, Industrials

In today’s briefing:

Weekly Deals Digest (06 Oct) – Tokyo Metro, Rigaku, CR Beverage, K Bank, ASMPT, Samson, T-Gaia
CATL Chairman Sees Recycled Lithium as the Future of EV-Battery Making
Lyft Inc.: Expansion of Serviceable Addressable Market Driving Our Optimism! – Major Drivers

Weekly Deals Digest (06 Oct) – Tokyo Metro, Rigaku, CR Beverage, K Bank, ASMPT, Samson, T-Gaia

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: Tokyo Metro (9023 JP), Rigaku Holdings (268A JP), K Bank (279570 KS) and China Resources Beverage (CRB HK) IPOs.
Event-Driven developments: ASM Pacific Technology (522 HK), Greatview Aseptic Packaging (468 HK), Samson Holding (531 HK), Descente Ltd (8114 JP), T Gaia Corp (3738 JP).

CATL Chairman Sees Recycled Lithium as the Future of EV-Battery Making

Half of all lithium-ion batteries could be made with recycled lithium by 2042, according to the founder of power cell giant Contemporary Amperex Technology Co. Ltd. (CATL) (300750.SZ +11.06%), who presented a vision of an eco-friendlier industry at a recent event.
Speaking at the World New Energy Vehicles Congress on Friday, Zeng Yuqun, also CATL’s chairman, highlighted the critical role power cells can play in driving the EV industry toward a zero-carbon future, saying that the sustainable development of the industry hinges on the use of recycled battery raw materials.
CATL’s battery recycling business has already taken shape, with a current annual capacity to process 270,000 tons of used batteries, Zeng said.

Lyft Inc.: Expansion of Serviceable Addressable Market Driving Our Optimism! – Major Drivers

Lyft, Inc. recently released its financial results for the second quarter of 2024, highlighting some significant milestones and challenges.
The quarter was notable as it marked the first instance of GAAP profitability for Lyft, signaling a robust measure of cost management and efficiency within the company.
However, this financial highlight comes amid various strategic shifts and external factors that could influence the company’s trajectory moving forward.

💡 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

Oct 06

Daily Brief Industrials: Tokyo Metro, Contemporary Amperex Technology (CATL), Lyft and more

By Smartkarma Daily Briefs | Daily Briefs, Industrials

In today’s briefing:

Weekly Deals Digest (06 Oct) – Tokyo Metro, Rigaku, CR Beverage, K Bank, ASMPT, Samson, T-Gaia
CATL Chairman Sees Recycled Lithium as the Future of EV-Battery Making
Lyft Inc.: Expansion of Serviceable Addressable Market Driving Our Optimism! – Major Drivers

Weekly Deals Digest (06 Oct) – Tokyo Metro, Rigaku, CR Beverage, K Bank, ASMPT, Samson, T-Gaia

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: Tokyo Metro (9023 JP), Rigaku Holdings (268A JP), K Bank (279570 KS) and China Resources Beverage (CRB HK) IPOs.
Event-Driven developments: ASM Pacific Technology (522 HK), Greatview Aseptic Packaging (468 HK), Samson Holding (531 HK), Descente Ltd (8114 JP), T Gaia Corp (3738 JP).

CATL Chairman Sees Recycled Lithium as the Future of EV-Battery Making

Half of all lithium-ion batteries could be made with recycled lithium by 2042, according to the founder of power cell giant Contemporary Amperex Technology Co. Ltd. (CATL) (300750.SZ +11.06%), who presented a vision of an eco-friendlier industry at a recent event.
Speaking at the World New Energy Vehicles Congress on Friday, Zeng Yuqun, also CATL’s chairman, highlighted the critical role power cells can play in driving the EV industry toward a zero-carbon future, saying that the sustainable development of the industry hinges on the use of recycled battery raw materials.
CATL’s battery recycling business has already taken shape, with a current annual capacity to process 270,000 tons of used batteries, Zeng said.

Lyft Inc.: Expansion of Serviceable Addressable Market Driving Our Optimism! – Major Drivers

Lyft, Inc. recently released its financial results for the second quarter of 2024, highlighting some significant milestones and challenges.
The quarter was notable as it marked the first instance of GAAP profitability for Lyft, signaling a robust measure of cost management and efficiency within the company.
However, this financial highlight comes amid various strategic shifts and external factors that could influence the company’s trajectory moving forward.

💡 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

Oct 06

Daily Brief Energy/Materials: Korea Zinc, Ovintiv , Teck Resources and more

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

In today’s briefing:

Impact on Korea Zinc’s Balance Sheet and Debt Ratios Post Massive Debt Raise Proposed by Choi Family
Ovintiv: A Prime Acquisition Target for Coterra Energy?
Teck Resources Limited: Expanding Copper Production Capacity & An Insight Into Its Business Strategy! – Major Drivers

Impact on Korea Zinc’s Balance Sheet and Debt Ratios Post Massive Debt Raise Proposed by Choi Family

We discuss the impact on the balance sheet and debt ratios of Korea Zinc’s efforts to conduct a massive debt increase to buyback and cancel shares.
Although the Choi family may consider raising further debt to increase the tender offer price even further, we believe this could pose further balance sheet risk on Korea Zinc.
We provide sensitivity analysis of higher debt on the interest coverage ratios of Korea Zinc.

Ovintiv: A Prime Acquisition Target for Coterra Energy?

Ovintiv has been making headlines recently as it is rumored to have been approached by Coterra Energy for a potential takeover.
While this creates buzz, Ovintiv’s position in the market makes it a compelling acquisition target for strategic buyers like Coterra and others.
The company’s operational execution has been solid, as evidenced by its recent earnings beat, with Ovintiv reporting strong production figures and significant free cash flow generation.

Teck Resources Limited: Expanding Copper Production Capacity & An Insight Into Its Business Strategy! – Major Drivers