Category

Daily Briefs

Jan 28
0

Daily Brief Japan: Shinko Electric Industries, JSR Corp, TSE Tokyo Price Index TOPIX, Renesas Electronics and more

By | Daily Briefs, Japan

In today’s briefing:

  • (Mostly) Asia-Pac Weekly Risk Arb Wrap: Newmark, Payroll, Orecorp, Weiqiao, Mandala Multi, Shinko
  • JSR Corporation (4185 JP): Risk/Reward in Context of Shin-Etsu’s Re-Rating and Looming Tender Start
  • TSE Policy Seems to Be that Disclosure in English Is Left to the Companies’ Own Initiative
  • Index Rebalance & ETF Flow Recap: CSI300, CSI500, SSE50, ChiNext, KOSPI200, Renesas, IDX30/LQ45
  • Last Week in Event SPACE: T&K TOKA, Liquidated HK Stocks, JSR, Orecorp, Brilliance Auto, Hollysys
  • ECM Weekly (28th Jan 2024) – Renesas, FCT, Genda, Amer, Guming, FirstCry, Thai Credit

(Mostly) Asia-Pac Weekly Risk Arb Wrap: Newmark, Payroll, Orecorp, Weiqiao, Mandala Multi, Shinko

By David Blennerhassett

JSR Corporation (4185 JP): Risk/Reward in Context of Shin-Etsu’s Re-Rating and Looming Tender Start

By Arun George

  • JSR Corp (4185 JP) pre-conditional tender offer from JIC is JPY4,350 per share. Since the deal announcement, the gross spread has averaged 7.7%.
  • The wide gross spread reflects the risk in satisfying the pre-condition related to China SAMR approval and potentially shareholder approval due to Shin Etsu Chemical (4063 JP)’s re-rating.
  • SAMR conditional approval would fit with the late February tender start timeline (at the earliest). Despite Shin-Etsu’s re-rating, the offer still looks reasonable.

TSE Policy Seems to Be that Disclosure in English Is Left to the Companies’ Own Initiative

By Aki Matsumoto

  • It will be useful for investors if timely disclosure information, which has large market impact but is still disclosed in English by half of companies, is disclosed in English simultaneously.
  • By limiting the TSE policy to documents that are already disclosed in English by many companies, there is concern that other high-demand documents may not be disclosed in English.
  • An analysis of English disclosure status and value creation indicators shows that many companies, even those with high profitability and high stock valuation, are not ready for disclosure in English.

Index Rebalance & ETF Flow Recap: CSI300, CSI500, SSE50, ChiNext, KOSPI200, Renesas, IDX30/LQ45

By Brian Freitas

  • The review period for the NIFTY family of indices, Nikkei 225, STAR50, the KRX New Deal Index and a global index ends on 31 January.
  • The January rebalance of the IDX30 and LQ45 indices will be implemented at the close of trading on 31 January.
  • There have been huge inflows into the CSI 300 Index ETFs for another week. This will increase the impact on the index changes at the next rebalance.

Last Week in Event SPACE: T&K TOKA, Liquidated HK Stocks, JSR, Orecorp, Brilliance Auto, Hollysys

By David Blennerhassett

  • We expected a blandiloquent but bletcherous bump for T&K Toka Co Ltd (4636 JP).  We got bletcherous.
  • With the Hang Seng Index dipping below the 15,000 mark earlier this week, time to dust off some old school perspective with Benjamin Graham’s Net Nets.
  • JIC CEO Yokoo reckons the JSR Corp (4185 JP) deal to be done by March-end. Language is vague. If that means to start by then, that’s still 30% annualised.

ECM Weekly (28th Jan 2024) – Renesas, FCT, Genda, Amer, Guming, FirstCry, Thai Credit

By Sumeet Singh

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Jan 28
0

Daily Brief South Korea: Korean Air Lines, Samsung Biologics , Korea Stock Exchange KOSPI 200 and more

By | Daily Briefs, South Korea

In today’s briefing:

  • Korean Air – Another US Example Of A Ruling Against Consolidation Raises Asiana Merger Questions
  • Samsung Biologics (207940 KS): Stellar Performance in 4Q23; Outlook Remains Strong
  • EQD | The KOSPI 200 Could Go Lower

Korean Air – Another US Example Of A Ruling Against Consolidation Raises Asiana Merger Questions

By Neil Glynn

  • The US Department of Transport (DOT) has ordered the termination of Delta and Aeromexico’s joint venture from October 2024 due to access restrictions in Mexico City.
  • This follows the (unrelated) US blocking of JetBlue’s planned acquisition of Spirit Airlines on the grounds that it would negatively impact consumers.
  • Each case is different, but the US has previously voiced concerns regarding Korean Air’s planned merger with Asiana, and the bar continues to rise for M&A/JV approval globally.

Samsung Biologics (207940 KS): Stellar Performance in 4Q23; Outlook Remains Strong

By Tina Banerjee

  • Samsung Biologics (207940 KS) reported 11% YoY growth in revenue to KRW1.07 trillion in 4Q23 driven by the ramp-up of operation of its Plant 4 and robust sales backlog.
  • The company closed 2023 with record high revenue and operating profit, bucking the weakening trend in overall global CDMO sector.
  • The outlook remains strong, with resilient business performance expected to drive a 10–15% annual growth in revenue for 2024.

EQD | The KOSPI 200 Could Go Lower

By Nico Rosti

  • The KOSPI 200 INDEX closed the last week up, after 3 weeks down in a row (CC=-3).
  • The index could pullback again this week, after last week’s bounce, support is around 332-325 or, if the market goes lower, around the 313 price area.
  • Most likely the pullback will last only for 1-2 weeks (if any), but caution is advised: a longer pullback that could reach below 313 is not impossible.

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Jan 28
0

Most Read: Jiangsu Zhongtian Technologies Co, Ltd., Prudential and more

By | Daily Briefs, Most Read

In today’s briefing:

  • CSI300 Index Rebalance Preview: A Dozen Changes for June
  • APAC Insurers Series (#4): How We See the 3 Insurance Stocks in 2024

CSI300 Index Rebalance Preview: A Dozen Changes for June

By Brian Freitas

  • With three-quarters of the review period nearly complete, there could be 12 changes for the Shanghai Shenzhen CSI 300 Inde (SHSZ300 INDEX) in June.
  • We estimate one-way turnover of 1.3% at the June rebalance leading to a one-way trade of CNY 5.06bn. There are a lot of stocks with over 1x ADV to trade.
  • There have been big ETF inflows to the CSI 300 Index trackers, but the potential adds have still outperformed the index and the potential deletes.

APAC Insurers Series (#4): How We See the 3 Insurance Stocks in 2024

By Alec Tseung

  • PICC P&C’s Q3 underwriting profitability deteriorated due to typhoon/catastrophe-related losses in both motor and non-motor business.
  • Samsung Life’s new business growth momentum continued in Q3’23; new business CSM margin slightly improved QoQ.
  • Prudential disclosed limited details in its Q3 results but we can see the growth trend of new business volume and profits continuing in the quarter.

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Jan 28
0

Daily Brief India: Sanghi Industries and more

By | Daily Briefs, India

In today’s briefing:

  • Adani’s Ambuja Cement Acquisition of Sanghi Cement Raises Questions Amidst Favorable Terms

Adani’s Ambuja Cement Acquisition of Sanghi Cement Raises Questions Amidst Favorable Terms

By Nimish Maheshwari

  • Adani’s $600 million acquisition of Sanghi Cement in August 2023 marked its significant debut in the cement sector, following controversies around the group’s infrastructure ventures.
  • The Master Supply Agreement with Ambuja & pricing structure, based on cost plus a 10% markup, has raised concerns about lower EBITDA realizations for Sanghi Cement, deviating from industry norms.
  • Issues surrounding potential profit loss (Rs 357 crore) and investor skepticism echo previous instances, like the NDTV case, where minority shareholders experienced less favorable terms compared to the promoter. 

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Jan 28
0

Top 10 Highlights from the APAC PE, VC and Startup Ecosystem this Week – 28 Jan 2024

By | Private Markets, Smartkarma Newswire

Top ten highlights from the APAC PE, VC, and startup ecosystem this week:

  1. Indonesia’s sovereign wealth fund INA is open to more collaborations and co-investments with private investors, as it deployed $3.3 billion in 2023.
  2. GoTo chief Patrick Walujo credited TikTok for saving Tokopedia from intense competition in the Indonesian e-commerce market.
  3. Limited partners (LPs) are shifting their focus to mid-sized funds in Southeast Asia as capital flow in China slows down.
  4. Southeast Asian startups saw a 51% decrease in private capital raised, according to a recent report.
  5. Venture investors expect the funding market in the region to remain turbulent this year.
  6. BPEA Credit plans to launch a $750 million India-Southeast Asia fund.
  7. Canada’s largest pension funds are expanding into private credit.
  8. The International Finance Corporation is considering a $25-40 million investment in Navis Capital’s debut credit fund.
  9. Private market investors are turning to buyout opportunities, especially in Greater China, due to macroeconomic headwinds.
  10. AC Ventures raised $210 million for its latest fund and co-investment vehicles, with investments from IFC and institutional investors from the US, Middle East, and North Asia.

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