Daily Briefs

Barito Renewables Energy (BREN IJ) listed on the IDX in October 2023 and inclusion in global indices was expected in June and August.
The IDX threw a spanner in the works by placing Barito Renewables Energy (BREN IJ) onto its Watchlist under criteria 10. That resulted in cancellation of index inclusion in June.
Barito Renewables Energy (BREN IJ) will come off the Watchlist today and that could see a renewed move higher in the stock over the next few weeks.

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Jun 21

Daily Brief South Korea: SK Innovation and more

By Smartkarma Daily Briefs | Daily Briefs, South Korea

In today’s briefing:

Digging into Chosun Ilbo’s Report on SK Group’s SK Innovation & SK E&S Merger Plans

Digging into Chosun Ilbo’s Report on SK Group’s SK Innovation & SK E&S Merger Plans

By Sanghyun Park

SK Group plans to merge SK Innovation and 90%-owned SK E&S by month-end. Chosun Ilbo’s report solidifies market confidence due to its credibility and likely intentional leak by SK Group.
Initially considered but deemed lower priority than SK IE Technology sale; SK Group opts for this alternative due to challenging market conditions for SKITE sale.
SK Innovation and SKIET rise with hopes of resolving liquidity issues and avoiding sacrifice. SK Inc is negatively impacted by concerns over valuation double counting from this merger.

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Jun 21

Daily Brief United States: Perfect , J & J Snack Foods, SharkNinja , Kontoor Brands , Adient PLC, Office Properties Income Trust, Abercrombie & Fitch Co Cl A, Pvh Corp and more

By Smartkarma Daily Briefs | Daily Briefs, United States

In today’s briefing:

Perfect Corp.
J&J Snack Foods Corp.: Initiation Of Coverage – Growth from Branded Products & 3 Other Major Drivers
Sharkninja (SN) – Thursday, Mar 21, 2024
Kontoor Brands: Initiation Of Coverage – Are Its DTC & Tech Investments Yielding The Necessary Results? – Major Drivers
Adient plc: Initiation Of Coverage – What Is Its Business Strategy & How Is It Growing In China? – Major Drivers
Office Properties Incom Trust (OPI 4.5 2025) – Thursday, Mar 21, 2024
Abercrombie & Fitch Co Cl A – AKA: Snapping the Store: Building Unique Brands; Retierate Buy, $25 PT
Pvh Corp – VNCE: 1Q Review: Multiple Positives Coming to the Fore; Reiterate Buy, $3 PT

Perfect Corp.

By Zacks Small Cap Research

Perfect Corp. provides an AI and machine learning based B2B SaaS platform for virtual try on and marketing of beauty and fashion products as well as six mobile apps sold B2C for makeup suggestions, try-on, tutorials, photo and video editing and most recently, Gen AI creation and editing.
It is expanding its offering to new verticals and has strong IP as well as the largest database for AI training in the industry.
It has a dominant market share and serves almost all the major beauty brands worldwide.

J&J Snack Foods Corp.: Initiation Of Coverage – Growth from Branded Products & 3 Other Major Drivers

By Baptista Research

The first quarter earnings of J&J Snack Foods Corporation (J&J) highlights several aspects of the company’s financial health and operational performance.
The company’s Q1 2024 results were influenced by a challenging consumer environment, with many customers witnessing yearly declines in consumer traffic and consumption.
To counteract these trends, J&J leveraged its popular brands to optimize sales opportunities, resulting in less than a 1% sales decline.

Sharkninja (SN) – Thursday, Mar 21, 2024

SharkNinja is a newly listed company with popular consumer brands Shark and Ninja
Despite challenges in brand-building and international markets, the company achieved a 15% operating margin in 2023
Analysts project an annualized return of 18-20% based on current earnings yield and expected organic earnings growth

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

Kontoor Brands: Initiation Of Coverage – Are Its DTC & Tech Investments Yielding The Necessary Results? – Major Drivers

By Baptista Research

This is our first report on apparel major, Kontoor Brands Inc. The company released its financial results for the fourth quarter and fiscal year 2023 in its recent earnings conference call.
The company’s Vice President, President, Chief Executive Officer, Co-Chief Operating Officer, and Chief Financial Officer were on the call to provide insights on Kontoor’s business accomplishments and forecasts.
One crucial undertaking announced in the conference call was Project Jeanius.

Adient plc: Initiation Of Coverage – What Is Its Business Strategy & How Is It Growing In China? – Major Drivers

By Baptista Research

This is our first report on Adient, a global leader in automotive seating.
The company has continued to focus on business performance, launch execution, and continuous improvement in FY 2024.
Some highlights in the first fiscal quarter of 2024 include a total revenue of $3.7 billion, a slight decrease compared to the previous year’s first quarter, and an adjusted EBITDA totalling $216 million, reflecting an increase of 2%.

Office Properties Incom Trust (OPI 4.5 2025) – Thursday, Mar 21, 2024

By Small Cap Consumer Research

Buy long positions in OPI 4.5 2/1/25 bonds, currently trading at 83 with a 28% yield
Company has 11 months to refinance bonds with Moelis assisting in debt restructuring
With 5.3B in total assets and 1.74B already pledged as collateral, company has enough to secure upcoming 650M maturity

Abercrombie & Fitch Co Cl A – AKA: Snapping the Store: Building Unique Brands; Retierate Buy, $25 PT

We are reiterating our Buy rating, $25 price target and projections of a.k.a. Brands after touring the company’s Culture Kings store in Las Vegas and Princess Polly unit in Los Angeles.
We believe both locations represent impressive retail units which will allow for continued growth (and high returns) going forward, as a.k.a. expands their retail footprint, with three new Princess Polly stores on track for a 2H24 opening.
As such, we remain excited by the potential for the ongoing turn at the company, which we believe will be even further driven by continued retail expansion, and reiterate our Buy rating and $25 price target for AKA.

Pvh Corp – VNCE: 1Q Review: Multiple Positives Coming to the Fore; Reiterate Buy, $3 PT

By Small Cap Consumer Research

We are reiterating our Buy rating and $3 price target for Vince Holding Corp. after the company reported slightly better-than expected 1QFY24 (April) results and reiterated FY24 guidance.
We believe, as the Vince operating model continues to normalize in FY24, it will become increasingly clear to investors the material positives at Vince, from a focus on full price selling, strong wholesale order book, continuing emphasis on higher overall returns and a strengthening balance sheet, which we believe will drive a higher valuation for VNCE, especially with momentum ramping even higher from a “normalized” 2HFY24.
As such, we reiterate our Buy rating and $3 price target for VNCE.

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Jun 21

Daily Brief India: Muthoot Microfin, Hyundai Motor India and more

By Smartkarma Daily Briefs | Daily Briefs, India

In today’s briefing:

Muthoot Microfin Lockup Expiry – Pre-IPO Investors Well in the Money Despite the Stock’s Performance
Hyundai Motor India: Can It Thrive Amidst a Rapidly Evolving Mobility Landscape?

Muthoot Microfin Lockup Expiry – Pre-IPO Investors Well in the Money Despite the Stock’s Performance

By Ethan Aw

Muthoot Microfin (MUTHOOTM IN) raised around US$115m in its Indian IPO, after pricing the deal at the top end of its IPO range at INR291/share.
Muthoot Microfin is a microfinance institution providing micro-loans to women customers with a focus on the rural regions of India.
In this note, we will talk about the lock-up dynamics and updates since our last note.

Hyundai Motor India: Can It Thrive Amidst a Rapidly Evolving Mobility Landscape?

By Devi Subhakesan

India’s passenger vehicle industry is shifting towards alternative fuels and facing intense competition, amidst changing customer preferences.
Despite a growing vehicle market, Hyundai Motor India (HMIL) faces a tough battle to defend its market share given changing industry dynamics.
With more competitors in the fray, including its parent group company Kia and EV leader BYD, Hyundai Motor India is in for a challenging ride.

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Jun 21

Daily Brief Japan: SBI Sumishin Net Bank , Mimasu Semiconductor Industry, Tatsuta Electric Wire & Cable, Ryohin Keikaku, Takeda Pharmaceutical , Mixi Inc and more

By Smartkarma Daily Briefs | Daily Briefs, Japan

In today’s briefing:

TOPIX Market Consultation: Wider Next-Gen Universe in a Couple of Years; But Stocks Moving Already
Shin-Etsu Chem TOB for Rest of Mimasu Semi (8155) – Far Too Cheap, But No Squeaky Wheel No Grease
Tatsuta Electric (5809 JP): Eneos Refuses to Bump, Board Capitulates
ENEOS Launches Tatsuta Elec (5809) “Minority” Takeout at Same Price as 18mos Ago
Sep24 Nikkei 225 Rebal – Still 1 ADD, 1 DELETE, 1 Dark Horse, But #2-Ranked ADD Is Close
Mimasu Semiconductor (8155 JP): Shin-Etsu (4063 JP)’s Tender Offer Launches
Additional Points Add to Our Recent Bearish View on Takeda.
MIXI Inc. (2121 JP) – At an Inflection Point to Generate Shareholder Value

TOPIX Market Consultation: Wider Next-Gen Universe in a Couple of Years; But Stocks Moving Already

JPX has commenced a market consultation on changes to the TSE Tokyo Price Index TOPIX (TPX INDEX) including expansion of the universe and periodic stock selection.
Based on current market cap/ liquidity, there could be 38 adds and 447 deletions for the TSE Tokyo Price Index TOPIX, though the changes only start in October 2026.
The deletions will be phased out of the index in 8 steps that will end in July 2028 and most of the stocks will move to the TOPIX Next-tier.

Shin-Etsu Chem TOB for Rest of Mimasu Semi (8155) – Far Too Cheap, But No Squeaky Wheel No Grease

Shin Etsu Chemical (4063 JP), owner of a 44% stake in Mimasu Semiconductor Industry (8155 JP), will launch the TOB to buy out Mimasu minority holders, as pre-announced 2mos ago.
Not surprising. They bought in 19yrs ago, raised to 40+% 18yrs ago, then waited. Finally, we have a deal. It’s too cheap but in 18yrs, I recall zero activism here.
Shin-Etsu starts with ~45%, and crossholders and the chairman get it to 53%. Then they need a bit to get them to 67% but it should be straightforward.

Tatsuta Electric (5809 JP): Eneos Refuses to Bump, Board Capitulates

18 months after announcing the offer, ENEOS Holdings (5020 JP) launched the Tatsuta Electric Wire & Cable (5809 JP) tender offer at unchanged JPY720, 4.9% below the last close price.
The Board requested a bump, but Eneos refused due to Tatsuta’s missed targets, no competing offer and the supportive updated IFA valuation
The lack of a bump, no vocal opposition, deal fatigue, the Board’s unexpected recommendation, weak earnings and 73.9% takeover premium will help acceptance.

ENEOS Launches Tatsuta Elec (5809) “Minority” Takeout at Same Price as 18mos Ago

ENEOS announced its deal for Tatsuta Electric Wire & Cable (5809 JP) 18mos ago. China approval took a while. Now they have launched.
The TOPIX Non-Ferrous Metals sector has returned 60%. TOPIX 50%. There is a new TSE Sheriff in town asking for PBR 1.0x. BVPS is up. Presumably, forward CF is up.
But the TOB Price is unchanged. That is disappointing. One reason why a higher price was rejected was that no other buyer approached to take over the company. 🤷🏻‍♂️

Sep24 Nikkei 225 Rebal – Still 1 ADD, 1 DELETE, 1 Dark Horse, But #2-Ranked ADD Is Close

The Sep 2024 Nikkei 225 Review base date is six weeks away. One can no extrapolate results quite accurately. It still gives us one ADD, one DELETE, and capping fun.
Recently, Yanai-san sold more Fast Retailing (9983 JP). More active holders own more stock (which may mean less interest to buy later), and only 1% to go to avoid capping.
There should be one DELETE, one ADD. There is a low-probability Dark Horse ADD but I expect Kokusai Electric (6525) to be added in March 2025.

Mimasu Semiconductor (8155 JP): Shin-Etsu (4063 JP)’s Tender Offer Launches

Mimasu Semiconductor Industry (8155 JP) notes that the pre-condition for Shin Etsu Chemical (4063 JP)’s JPY3,700 tender offer has been satisfied. The tender runs from 21 June to 5 August.
The share price has traded at or above the offer on 15 out of 38 trading days, partly due to expectations of a counteroffer.
While the offer is below the midpoint of the IFA DCF valuation range, it represents an all-time high. The lack of activists or competing offers suggests a done deal.

Additional Points Add to Our Recent Bearish View on Takeda.

By Avien Pillay

Production problems of Vyvanse generics seem to be largely resolved with nine of the ten suppliers back in stock.
Safety concerns with Takeda’s approved psoriasis competitor does raise further concerns as they are both TYK-2 inhibitors.
The company’s $900 m big restructure and cited areas for margin improvement are not “convincing” and lack detail.

MIXI Inc. (2121 JP) – At an Inflection Point to Generate Shareholder Value

By Astris Advisory Japan

Approaching a transformational phase – MIXI Inc. is a digital content company generating earnings from its ‘MONSTER STRIKE’ mobile gaming franchise.
Operating in a mature domestic gaming market, the company has successfully diversified into lifestyle and sports, but to date has experienced limited earnings contribution.
We believe this is about to change, driven by the new monetization strategy for the ‘FamilyAlbum’ video and photo- sharing service app in FY3/25.

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Jun 21

Daily Brief China: Taste Gourmet, SenseTime Group , PC Partner, Hengdeli Holdings, Shanghai Rural Commercial Bank, Sa Sa International Hldgs, China Merchants China Direct Investments, Road King Infrastructure and more

By Smartkarma Daily Briefs | China, Daily Briefs

In today’s briefing:

Taste Gourmet (8371 HK): Strong FY24, 6.7x PE, Cash ~23% of Mkt Cap and >8% Dividend Yield
Sensetime Placement – Seems Highly Opportunistic
PC Partners (1263 HK) Muses SGX Listing & HKEx Withdrawal
Hengdeli Holdings (3389 HK)’s Pitiful Partial Offer
Quiddity Leaderboard CSI 300/500 Dec 24: A Long-Short Basket Trade Idea with High Momentum
Sa Sa Intl (178 HK): Every Coin Has Two Sides
CMCDI Update: Warning Shot Fired At AGM Despite Kan’s Successful Re-Election
Morning Views Asia: Road King Infrastructure

Taste Gourmet (8371 HK): Strong FY24, 6.7x PE, Cash ~23% of Mkt Cap and >8% Dividend Yield

By Sameer Taneja

Taste Gourmet (8371 HK) reported revenues up 37% YoY and profits up 29% YoY (lower than our expectation of 39% profit growth) due to a slightly weaker-than-expected Q4.
Dividends for H2 were 7.4 cents/share (overall FY24:12.9 cents), implying an 8.1% dividend yield. Net cash on the balance sheet was 143 mn HKD (23% of market cap).
Trading at 6.7x PE FY24 (March end) and with an excellent execution track record, we believe that the company will be able to post more robust numbers in FY25.

Sensetime Placement – Seems Highly Opportunistic

By Sumeet Singh

SenseTime Group (20 HK) aims to raise up to US$263m via selling around 4.5% stake.
Sensetime hasn’t had the best of times since listing, however, the shares have rebounded recently on generative AI buzz around the stock.
In this note, we will talk about the placement and run the deal through our ECM framework.

PC Partners (1263 HK) Muses SGX Listing & HKEx Withdrawal

By David Blennerhassett

On the 18th June, personal computer (PC) parts and accessories play PC Partner (1263 HK) announced a profit alert for 1H24.
That’s positive. What is also interesting is that the board is considering an SGX listing, by way of introduction, and applying for the withdrawal of the HKEx listing.
Precedents are thin on the ground. And for good reason. The process is not straightforward.

Hengdeli Holdings (3389 HK)’s Pitiful Partial Offer

By David Blennerhassett

After watch accessory play Hengdeli Holdings (3389 HK) was suspended on the 17th June pursuant to the Takeovers Code, I didn’t hold out high hopes of a knock-out Offer.
And on cue, CEO Tony Cheung (16%), son of founder Zhang Yuping (holding 17%), has made a Partial Offer (for 15% of shares outstanding) at HK$0.16/share, towards gaining majority control.
That’s a 18.5% premium to last close … and a 80% discount to NAV, and a 47% discount to Hengdeli’s net cash as at 31 December 2023.

Quiddity Leaderboard CSI 300/500 Dec 24: A Long-Short Basket Trade Idea with High Momentum

By Janaghan Jeyakumar, CFA

CSI 300 represents the 300 largest stocks by market cap and liquidity from the Shanghai and Shenzhen Exchanges. CSI 500 is the next 500.
In this insight, we take a look at the potential ADDs and DELs leading the race for the semiannual index rebal event in December 2024.
Currently, we see 16 ADDs/DELs for the CSI 300 index and 50 ADDs/DELs for the CSI 500 index.

Sa Sa Intl (178 HK): Every Coin Has Two Sides

By Osbert Tang, CFA

Despite missing market consensus, Sa Sa International Hldgs (178 HK)‘s FY24 result still have silver linings. Its resumption of dividends with a 70% payout ratio is welcoming.
Tax credit in 2H23 has distorted comparison. At pre-tax level, 2H24 profit has gone up by 29.5%. Cost management is solid, generating a 0.9pp FY24 operating margin expansion.
While overall 1Q25 sales have dropped, mainland China sales surged 83.9%. The macro environment should have bottomed and government efforts to attract tourists will pay off.

CMCDI Update: Warning Shot Fired At AGM Despite Kan’s Successful Re-Election

By Alec Tseung

While Elizabeth Kan barely survived the AGM vote, ASM has effectively mobilized minority shareholders.
Lazard (owns 15% of CMCDI) probably voted alongside ASM (owns 9%). Other than China Merchants Group and Victor Chu, almost no “outside shareholders” voted in favor of Kan, .
The next battleground is a vote in November when CMCDI needs to renew its investment management agreement. Intense behind-the-scene negotiations are expected, given the bargaining power ASM now demonstrated.

Morning Views Asia: Road King Infrastructure

By Leonard Law, CFA

Lucror Analytics Morning Views comprise our fundamental credit analysis, opinions and trade recommendations on high yield issuers in the region, based on key company-specific developments in the past 24 hours. Our Morning Views include a section with a brief market commentary, key market indicators and a macroeconomic and corporate event calendar.

Road King Infrastructure

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Jun 21

Daily Brief Utilities: Barito Renewables Energy and more

By Smartkarma Daily Briefs | Daily Briefs, Utilities Sector

In today’s briefing:

Barito Renewables Energy (BREN IJ): Back to Normal Trading & Index Implications

Barito Renewables Energy (BREN IJ): Back to Normal Trading & Index Implications

Barito Renewables Energy (BREN IJ) listed on the IDX in October 2023 and inclusion in global indices was expected in June and August.
The IDX threw a spanner in the works by placing Barito Renewables Energy (BREN IJ) onto its Watchlist under criteria 10. That resulted in cancellation of index inclusion in June.
Barito Renewables Energy (BREN IJ) will come off the Watchlist today and that could see a renewed move higher in the stock over the next few weeks.

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Jun 21

Daily Brief Industrials: Tatsuta Electric Wire & Cable, Mma Offshore, SharkNinja and more

By Smartkarma Daily Briefs | Daily Briefs, Industrials

In today’s briefing:

Tatsuta Electric (5809 JP): Eneos Refuses to Bump, Board Capitulates
ENEOS Launches Tatsuta Elec (5809) “Minority” Takeout at Same Price as 18mos Ago
MMA Offshore (MRM AU): Disappointing Final Offer Poses a Vote Risk
Sharkninja (SN) – Thursday, Mar 21, 2024

Tatsuta Electric (5809 JP): Eneos Refuses to Bump, Board Capitulates

18 months after announcing the offer, ENEOS Holdings (5020 JP) launched the Tatsuta Electric Wire & Cable (5809 JP) tender offer at unchanged JPY720, 4.9% below the last close price.
The Board requested a bump, but Eneos refused due to Tatsuta’s missed targets, no competing offer and the supportive updated IFA valuation
The lack of a bump, no vocal opposition, deal fatigue, the Board’s unexpected recommendation, weak earnings and 73.9% takeover premium will help acceptance.

ENEOS Launches Tatsuta Elec (5809) “Minority” Takeout at Same Price as 18mos Ago

ENEOS announced its deal for Tatsuta Electric Wire & Cable (5809 JP) 18mos ago. China approval took a while. Now they have launched.
The TOPIX Non-Ferrous Metals sector has returned 60%. TOPIX 50%. There is a new TSE Sheriff in town asking for PBR 1.0x. BVPS is up. Presumably, forward CF is up.
But the TOB Price is unchanged. That is disappointing. One reason why a higher price was rejected was that no other buyer approached to take over the company. 🤷🏻‍♂️

MMA Offshore (MRM AU): Disappointing Final Offer Poses a Vote Risk

Cyan Renewables has bumped its Mma Offshore (MRM AU) offer to A$2.70 per share, a 3.8% premium to the previous A$2.60 offer.
The bump is derisory in the context of recent earnings upgrades. Since the binding proposal, MMA has upgraded its FY24 EBITDA and EBIT guidance by 9.8% and 15.5%, respectively.
The AFR reported that around 30% of the register opposed the previous offer. A cursory 3.8% bump is unlikely to sway most of these dissenters to change their views.

Sharkninja (SN) – Thursday, Mar 21, 2024

SharkNinja is a newly listed company with popular consumer brands Shark and Ninja
Despite challenges in brand-building and international markets, the company achieved a 15% operating margin in 2023
Analysts project an annualized return of 18-20% based on current earnings yield and expected organic earnings growth

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Jun 21

Daily Brief Energy/Materials: SK Innovation, Tamboran Resources and more

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

In today’s briefing:

Digging into Chosun Ilbo’s Report on SK Group’s SK Innovation & SK E&S Merger Plans
Tamboran Resources US Offering – Strong Recent Momentum but CDIs Have Been Volatile Since Listing

Digging into Chosun Ilbo’s Report on SK Group’s SK Innovation & SK E&S Merger Plans

By Sanghyun Park

SK Group plans to merge SK Innovation and 90%-owned SK E&S by month-end. Chosun Ilbo’s report solidifies market confidence due to its credibility and likely intentional leak by SK Group.
Initially considered but deemed lower priority than SK IE Technology sale; SK Group opts for this alternative due to challenging market conditions for SKITE sale.
SK Innovation and SKIET rise with hopes of resolving liquidity issues and avoiding sacrifice. SK Inc is negatively impacted by concerns over valuation double counting from this merger.

Tamboran Resources US Offering – Strong Recent Momentum but CDIs Have Been Volatile Since Listing

By Clarence Chu

Tamboran Resources (TBN AU) is looking to raise US$175m from listing its shares in the US.
Tamboran Resources is an early stage, independent natural gas exploration and production company.
In this note, we talk about the deal dynamics and the listing impact.

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Jun 21

Daily Brief Financials: SBI Sumishin Net Bank , Muthoot Microfin, Shanghai Rural Commercial Bank, China Merchants China Direct Investments, Hargreaves Lansdown, Office Properties Income Trust, Road King Infrastructure and more

By Smartkarma Daily Briefs | Daily Briefs, Financials

In today’s briefing:

TOPIX Market Consultation: Wider Next-Gen Universe in a Couple of Years; But Stocks Moving Already
Muthoot Microfin Lockup Expiry – Pre-IPO Investors Well in the Money Despite the Stock’s Performance
Quiddity Leaderboard CSI 300/500 Dec 24: A Long-Short Basket Trade Idea with High Momentum
CMCDI Update: Warning Shot Fired At AGM Despite Kan’s Successful Re-Election
CVC Consortium/Hargreaves Lansdown: Cheap Possible Offer
Office Properties Incom Trust (OPI 4.5 2025) – Thursday, Mar 21, 2024
Morning Views Asia: Road King Infrastructure

TOPIX Market Consultation: Wider Next-Gen Universe in a Couple of Years; But Stocks Moving Already

JPX has commenced a market consultation on changes to the TSE Tokyo Price Index TOPIX (TPX INDEX) including expansion of the universe and periodic stock selection.
Based on current market cap/ liquidity, there could be 38 adds and 447 deletions for the TSE Tokyo Price Index TOPIX, though the changes only start in October 2026.
The deletions will be phased out of the index in 8 steps that will end in July 2028 and most of the stocks will move to the TOPIX Next-tier.

Muthoot Microfin Lockup Expiry – Pre-IPO Investors Well in the Money Despite the Stock’s Performance

By Ethan Aw

Muthoot Microfin (MUTHOOTM IN) raised around US$115m in its Indian IPO, after pricing the deal at the top end of its IPO range at INR291/share.
Muthoot Microfin is a microfinance institution providing micro-loans to women customers with a focus on the rural regions of India.
In this note, we will talk about the lock-up dynamics and updates since our last note.

Quiddity Leaderboard CSI 300/500 Dec 24: A Long-Short Basket Trade Idea with High Momentum

By Janaghan Jeyakumar, CFA

CSI 300 represents the 300 largest stocks by market cap and liquidity from the Shanghai and Shenzhen Exchanges. CSI 500 is the next 500.
In this insight, we take a look at the potential ADDs and DELs leading the race for the semiannual index rebal event in December 2024.
Currently, we see 16 ADDs/DELs for the CSI 300 index and 50 ADDs/DELs for the CSI 500 index.

CMCDI Update: Warning Shot Fired At AGM Despite Kan’s Successful Re-Election

By Alec Tseung

While Elizabeth Kan barely survived the AGM vote, ASM has effectively mobilized minority shareholders.
Lazard (owns 15% of CMCDI) probably voted alongside ASM (owns 9%). Other than China Merchants Group and Victor Chu, almost no “outside shareholders” voted in favor of Kan, .
The next battleground is a vote in November when CMCDI needs to renew its investment management agreement. Intense behind-the-scene negotiations are expected, given the bargaining power ASM now demonstrated.

CVC Consortium/Hargreaves Lansdown: Cheap Possible Offer

By Jesus Rodriguez Aguilar

The private equity consortium (CVC, Nordic Capital, and Abu Dhabi Investment Authority) has upped the possible offer to 1,140p/share in cash, including 30p final dividend, with a rollover equity alternative.
The offer implied valuation of 17.2x NTM forward P/E and dividend yield of 4.25% are historically low for HL. An offer in line with peer’s multiples would imply 1,326p.
The rollover equity alternative appears to be intended to give founders a means of sharing in HL’s future success. Gross spread is 0.5%.

Office Properties Incom Trust (OPI 4.5 2025) – Thursday, Mar 21, 2024