Daily Briefs

CIMC Vehicles (1839 HK) is currently suspended pursuant to Hong Kong’s Code on Takeovers and Mergers.
SOE-Backed CIMC Group controls ~74% of CMIC Vehicle’s H-shares. Presumably, if any Offer was to unfold, it would be from the parent.
And what price for the H-shares? Around HK$9/share, a life-time high, would be in keeping with premiums seen in precedent PRC-incorporated privatisations.

CIMC Vehicles (1839 HK): $7.00/Share Indicative Offer From Parent – Really?!

After CIMC Vehicle Group Co Ltd (1839 HK) was suspended yesterday pursuant to Hong Kong’s Takeover Code, the expectation was an H-share Offer from its parent, SOE-backed CIMC Group.
CIMC subsequently announced an indicative Offer yesterday evening, from its parent, at a $7.00/share for each H-share, a pitiful 8.6% premium to last close. There is no concurrent A-share Offer.
CIMC traded around $7.00 late September, and comfortably traded through the indicative terms for most of July.

Underwater robotics startup BeeX bags $2m

By Tech in Asia

BeeX, a Singapore-based maker of autonomous underwater robots, has raised US$2 million in a round co-led by Earth Venture Capital and ShipsFocus Ventures.
The startup will use the funds to speed up its go-to-market efforts for autonomous offshore wind farm inspections in Europe.
BeeX was established in 2018 by Grace Chia and Goh Eng Wei, researchers at the National University of Singapore.

💡 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

Nov 29

Daily Brief ECM: IREDA IPO Trading – Strong Insti Demand Boosts Overall Subscription Rates and more

By Smartkarma Daily Briefs | Daily Briefs, ECM

In today’s briefing:

IREDA IPO Trading – Strong Insti Demand Boosts Overall Subscription Rates

IREDA IPO Trading – Strong Insti Demand Boosts Overall Subscription Rates

By Ethan Aw

IREDA (1845911D IN) raised around US$258m in its India IPO, after the deal was priced at INR32/share. It will begin trading tomorrow on 29th Nov 2023.
Indian Renewable Energy Development Authority (IREDA) is a wholly owned Government of India (GoI) enterprise under the administrative control of the Ministry of New and Renewable Energy (MNRE).
We have looked at various aspects of the deal in our previous note. In this note, we talk about demand and trading dynamics.

💡 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

Nov 29

Daily Brief TMT/Internet: EduFi , Modhaus , Upworth, Authentick, AViC and more

By Smartkarma Daily Briefs | Daily Briefs, TMT/Internet

In today’s briefing:

EduFi raises $6.1m to boost AI-powered lending platform
Modhaus bags new money to blend K-pop with blockchain
Fintech startup Upworth secures funding to democratise money management | e27
Authentick secures US$4M for wallet-free digital collectible purchases | e27
AViC (9554 JP) – Moving To Achieve Mission With a Better Hand

EduFi raises $6.1m to boost AI-powered lending platform

By Tech in Asia

Credit penetration in Pakistan has historically been low, due in part to the country’s relatively subdued macroeconomic landscape.
This can be seen in the student loans segment, which currently lacks firms that are focused on the vertical.
Aleena Nadeem, a former tech investor and MIT graduate, is changing this.

Modhaus bags new money to blend K-pop with blockchain

By Tech in Asia

Seoul-based Modhaus, an entertainment agency using blockchain for fan engagement, has raised US$8 million in its series A funding round led by US-based investment firm Sfermion.
The new round pushes the company’s total funds raised to US$12 million.
Founded in December 2021, Modhaus operates a blockchain platform called Cosmo, which helps fans participate in the decision-making processes of their favorite idol groups

Fintech startup Upworth secures funding to democratise money management | e27

By e27

Upworth, an Australian fintech company that aims to democratise money management for all, has completed its AUD 1 million (US$650,000) funding round from unnamed business angels and entrepreneurs.
Founded by Alexandre Chavotier (CEO), Carlos Rios (CTO), and Maxime Chaury (COO & CMO), Sydney-headquartered Upworth provides an online platform to empower users with tools to track all their assets and liabilities in one place, plan their financial independence and grow their wealth.
Also Read: A penny saved is a penny earned: How Vircle cultivates money-smart kids All customer data is stored in Australia, and the data exchanges are subject to AES-256 military-grade encryption protocols.

Authentick secures US$4M for wallet-free digital collectible purchases | e27

By e27

Authentick, the creator of Authentickator, a wallet-free platform for easy browsing, purchasing, and authentication of digital collectibles, has successfully raised a US$4 million seed round, with Menyala as the lead investor.
The fresh funds will be used to execute the company’s roadmap, which encompasses expanding the marketplace, fostering collaborations with brands and creators, enhancing services, and advancing the product roadmap.
Authentickator has also announced partnerships with Southeast Asia’s leading e-commerce platform Lazada, social media giant TikTok, and Shopify to enable select users to easily purchase digital collectibles directly from each platform using traditional payment methods.

AViC (9554 JP) – Moving To Achieve Mission With a Better Hand

By Sessa Investment Research

Touting a mission of “improving people, companies, and society through marketing,” AViC is involved in the commissioned handling of internet advertising and provision of SEO (search engine optimization) consulting services with the goal of providing high quality digital marketing services to clients with small- to medium-sized advertising budgets.
Having transformed FACT Inc., which offers support services for EC mall sales promotion optimization, into a wholly-owned subsidiary in October 2023, the company is also moving forward with mutually supplementing its lineup of services and conducting cross-sales to clients.
The company’s competitiveness comes from (1) the deep understanding of various media algorithms possessed by its management team, particularly the company’s representative who was the chief executive of the internet advertisement business at CyberAgent, and content backed by experience and a track record

💡 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

Nov 29

Daily Brief Financials: Kotak Mahindra Bank, IREDA and more

By Smartkarma Daily Briefs | Daily Briefs, Financials

In today’s briefing:

Kotak Mahindra Bank – US$1.2 Billion Lockup Release
IREDA IPO Trading – Strong Insti Demand Boosts Overall Subscription Rates

Kotak Mahindra Bank – US$1.2 Billion Lockup Release

In Jun 2023, CPPIB raised around US$750m via selling a 1.6% stake in Kotak Mahindra Bank (KMB IN). Prior to that it had sold a similar amount in Mar 2022.
CPPIB will be released from its placement linked lockup early next month.
In this note, we will talk about the lockup dynamics and past deals performance.

IREDA IPO Trading – Strong Insti Demand Boosts Overall Subscription Rates

By Ethan Aw

IREDA (1845911D IN) raised around US$258m in its India IPO, after the deal was priced at INR32/share. It will begin trading tomorrow on 29th Nov 2023.
Indian Renewable Energy Development Authority (IREDA) is a wholly owned Government of India (GoI) enterprise under the administrative control of the Ministry of New and Renewable Energy (MNRE).
We have looked at various aspects of the deal in our previous note. In this note, we talk about demand and trading dynamics.

💡 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

Nov 29

Daily Brief Credit: Morning Views Asia: Meituan and more

By Smartkarma Daily Briefs | Credit, Daily Briefs

In today’s briefing:

Morning Views Asia: Meituan

Morning Views Asia: Meituan

By Charles Macgregor

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.

Meituan

💡 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

Nov 29

Daily Brief Health Care: Kaken Pharmaceutical, Dong E E Jiaoco Ltd A, Aspira Women’s Health and more

By Smartkarma Daily Briefs | Daily Briefs, Healthcare

In today’s briefing:

Kaken Pharmaceutical (4521 JP): Key Operating Parameters Weakened in H1; H2 Not Seem to Be Better
Dong E E Jiao Co Ltd (000423.CH) – The Situation Is Getting Better and Better
Aspira Women’s Health, Inc. – Secures Important Reimbursements

Kaken Pharmaceutical (4521 JP): Key Operating Parameters Weakened in H1; H2 Not Seem to Be Better

By Tina Banerjee

Kaken Pharmaceutical (4521 JP) reported 2% YoY decline in revenue H1FY24, while operating profit decreased 33% YoY. Top selling products are impacted by NHI drug price revision and increasing competition.
The company has reiterated FY24 guidance of flat revenue, 5% YoY decline in operating profit, and 23% YoY growth in net profit. Profitability is expected to deteriorate in H2.
Kaken is not expected to see any immediate respite as the small contribution from the new products will not compensate for the revenue loss from its top selling products.

Dong E E Jiao Co Ltd (000423.CH) – The Situation Is Getting Better and Better

By Xinyao (Criss) Wang

Some investors are disappointed with 23Q3 performance, but we think Dong-E-E-Jiao is getting back on track. The de-stocking has achieved great results and pressure on distribution channels has been alleviated.
Since Dong-E-E-Jiao’s contract liabilities hit a record high, we are optimistic about the performance in 23Q4 and 24Q1. China Resources could further improve Dong-E-E-Jiao’s dividend rate, making it more attractive.
Since Dong-E-E-Jiao’s performance is continuously improving, valuation still has room to grow. A significant increase in valuation in the short term depends on whether there would be M&A deal emerges.

Aspira Women’s Health, Inc. – Secures Important Reimbursements

By Water Tower Research

Aspira Women’s Health made two reimbursement announcements this week.
On November 27, Aspira announced that the Centers for Medicare and Medicaid Services (CMS) approved the crosswalk of the fee to be paid to the company for OvaWatch to the fee paid historically for Ova1.
Aspira will be reimbursed at a rate of $897 for all OvaWatch and Ova1 tests processed for Medicare patients meeting applicable coverage requirements beginning on January 1, 2024.

💡 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

Nov 29

Daily Brief Consumer: Denso Corp, Alibaba Group Holding , Asahi Group Holdings, ASICS Corp, Honasa Consumer , 888 holdings, PDD Holdings , Zomato and more

By Smartkarma Daily Briefs | Consumer, Daily Briefs

In today’s briefing:

Denso Corp Placement – Possible Placement by Toyota to Raise US$4.7bn
Denso Corp (6902 JP): Potential US$4.6bn Placement & Limited Passive Buying
Hang Seng Indices (HSI, HSCEI, HS Tech) Recapping the Recaps – A Bit More To Trade
HSI, HSCEI, HSTECH: Rebalance Flows Post Capping (Dec 2023)
Asahi Offering: Discount Presents a Good Entry Point As Price Hikes & Tax Reforms Strengthen Asahi
Asics (7936) | Stepping Ahead with New MTP
[Week 11] Namaste India 🙏 | Honasa’s Innovation or Innovative Narrative?
Quiddity Leaderboard F100/250 Dec 23: Final Expectations; Two Trading Days for Announcement
PDD (PDD US): 3Q23, Grew Dramatically Overseas, Still Upside After Reaching Our Last Target
Zomato Lock-Up – Last of the Softbank Selldown

Denso Corp Placement – Possible Placement by Toyota to Raise US$4.7bn

As per Reuters, Toyota Motor (7203 JP) could look to sell up to 10% of Denso Corp (6902 JP) to raise around US$4.7bn before the end of the year.
Toyota is the company’s largest shareholder and its largest customer.
In this note, we will talk about the deal dynamics.

Denso Corp (6902 JP): Potential US$4.6bn Placement & Limited Passive Buying

There could be a US$4.6bn secondary placement in Denso Corp (6902 JP) before year-end as Toyota Motor (7203 JP), Toyota Industries (6201 JP) and Aisin Corp (7259 JP) unwind cross-holdings.
Denso Corp (6902 JP) was down 4.85% yesterday (and even more intra-day) and the stock could remain under pressure for the next few weeks.
There will be limited passive buying in conjunction with the secondary offering and active investors will need to buy a lot of stock.

Hang Seng Indices (HSI, HSCEI, HS Tech) Recapping the Recaps – A Bit More To Trade

By Travis Lundy

The final datapoints for the December Hang Seng Indices rebalances were recorded today, slightly altering the initially expected weights and flows.
The expected flows have slightly increased since the initial estimates on 15 then 17 November.
Across all three indices, I see a net total of roughly HK$13.4bn a side to trade.

HSI, HSCEI, HSTECH: Rebalance Flows Post Capping (Dec 2023)

The December rebalance of the HSI, HSCEI and HSTECH indices will use today’s closing prices to cap the index constituent weights at 8%. This will lead to large flows.
Li Auto (2015 HK) will have the largest inflows due to the HSI inclusion while Xiaomi (1810 HK) will have the largest outflow due to HSTECH capping.
There will be passive selling in HSBC Holdings (5 HK) for yet another rebalance due to capping of the stock in the Hang Seng Index (HSI INDEX).

Asahi Offering: Discount Presents a Good Entry Point As Price Hikes & Tax Reforms Strengthen Asahi

By Oshadhi Kumarasiri

Two weeks ago, Asahi Group Holdings (2502 JP) revealed plans for a secondary offering, aiming to sell 33.48m common shares in international markets.
In this insight, we delve into the fundamentals of the business, identifying an opportunity if the offering is priced at a decent discount compared to Asahi’s current price.
We think recent price hikes and ongoing alcohol tax reforms position Asahi to outperform Kirin Holdings (2503 JP) in the next 3-4 years.

Asics (7936) | Stepping Ahead with New MTP

By Mark Chadwick

Asics unveils MTP with focus on financial milestones: 7-10% Sales CAGR to 660 billion yen and Operating profit of 80 billion yen by 2026.
The biggest risk to the MTP looks to be market share goals in the US. However, we think overall sales and margin targets are achievable.
The share price is up 80% YTD and stock is no longer cheap. However, plugging in the MTP assumptions into a DCF reveals further 17% upside

[Week 11] Namaste India 🙏 | Honasa’s Innovation or Innovative Narrative?

By Pranav Bhavsar

We are back with our regular weekly updates after taking an earnings break and a Diwali vacation.
Ishares Msci India Small-Cap (SMIN US) appears to be where the most market action is currently. We also maintain a long bias on the NIFTY Index (NIFTY INDEX).
Honasa Consumer (HONASA IN) is the star of the week that is playing an innovative narrative that which street seems to like, but warrants attention.

Quiddity Leaderboard F100/250 Dec 23: Final Expectations; Two Trading Days for Announcement

By Janaghan Jeyakumar, CFA

The F100 and F250 December 2023 index changes are likely to be announced after the close on Wednesday 29th December 2023.
In this insight, we take a look at the potential index changes for F100 and F250 based on rankings as of 27th November 2023.
There could be one change for the F100 index and six separate changes for the F250 index. Some names lurking close to the border can still make it.

PDD (PDD US): 3Q23, Grew Dramatically Overseas, Still Upside After Reaching Our Last Target

By Ming Lu

In 3Q23, total revenue surged by 94% YoY, as Temu started operations in nine European countries in August.
Operating profits increased by 60% YoY in 3Q23, so we believe overseas businesses have made profits.
The stock price reached our last target, but we believe there is still an upside of 40% for 2024.

Zomato Lock-Up – Last of the Softbank Selldown

In Aug 2022, Zomato (ZOMATO IN) completed the acquisition of 91% of Blinkit’s outstanding shares via issuing its own shares. These shares were released from their lockup in Aug 2023.
Leading to a selldown by Softbank Group (9984 JP) in the same month, followed by another selldown in Oct 2023. Softbank will once again be released from its lockup soon.
In this note, we will talk about the lock-up dynamics and recent updates.

💡 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

Nov 29

Daily Brief Event-Driven: Denso Corp Placement – Possible Placement by Toyota to Raise US$4.7bn and more

By Smartkarma Daily Briefs | Daily Briefs, Event-Driven

In today’s briefing:

Denso Corp Placement – Possible Placement by Toyota to Raise US$4.7bn
Denso Corp (6902 JP): Potential US$4.6bn Placement & Limited Passive Buying
Kotak Mahindra Bank – US$1.2 Billion Lockup Release
CIMC Vehicles (1839 HK): Possible H Share Buyback Offer
Hang Seng Indices (HSI, HSCEI, HS Tech) Recapping the Recaps – A Bit More To Trade
HSI, HSCEI, HSTECH: Rebalance Flows Post Capping (Dec 2023)
CIMC Vehicles (1839 HK): Parent Privatisation?
CIMC Vehicles (1839 HK): $7.00/Share Indicative Offer From Parent – Really?!
Asahi Offering: Discount Presents a Good Entry Point As Price Hikes & Tax Reforms Strengthen Asahi
Quiddity Leaderboard F100/250 Dec 23: Final Expectations; Two Trading Days for Announcement

Denso Corp Placement – Possible Placement by Toyota to Raise US$4.7bn

As per Reuters, Toyota Motor (7203 JP) could look to sell up to 10% of Denso Corp (6902 JP) to raise around US$4.7bn before the end of the year.
Toyota is the company’s largest shareholder and its largest customer.
In this note, we will talk about the deal dynamics.

Denso Corp (6902 JP): Potential US$4.6bn Placement & Limited Passive Buying

There could be a US$4.6bn secondary placement in Denso Corp (6902 JP) before year-end as Toyota Motor (7203 JP), Toyota Industries (6201 JP) and Aisin Corp (7259 JP) unwind cross-holdings.
Denso Corp (6902 JP) was down 4.85% yesterday (and even more intra-day) and the stock could remain under pressure for the next few weeks.
There will be limited passive buying in conjunction with the secondary offering and active investors will need to buy a lot of stock.

Kotak Mahindra Bank – US$1.2 Billion Lockup Release

In Jun 2023, CPPIB raised around US$750m via selling a 1.6% stake in Kotak Mahindra Bank (KMB IN). Prior to that it had sold a similar amount in Mar 2022.
CPPIB will be released from its placement linked lockup early next month.
In this note, we will talk about the lockup dynamics and past deals performance.

CIMC Vehicles (1839 HK): Possible H Share Buyback Offer

By Arun George

CIMC Vehicle Group Co Ltd (1839 HK) possible H Share buyback offer, excluding China International Marine Cntnrs Gp (2039 HK)’s shares, is HK$7.00, an 8.7% premium to the undisturbed price.
The key condition is approval by at least 75% of independent H Shareholders (<10% of all independent H Shareholders rejection). There could also be a 90% minimum acceptance condition.
The offer is light, but independent H shareholders holding blocking stakes will likely be supportive. The final offer will be made on “same or better terms”, suggesting a potential bump.

Hang Seng Indices (HSI, HSCEI, HS Tech) Recapping the Recaps – A Bit More To Trade

By Travis Lundy

The final datapoints for the December Hang Seng Indices rebalances were recorded today, slightly altering the initially expected weights and flows.
The expected flows have slightly increased since the initial estimates on 15 then 17 November.
Across all three indices, I see a net total of roughly HK$13.4bn a side to trade.

HSI, HSCEI, HSTECH: Rebalance Flows Post Capping (Dec 2023)

The December rebalance of the HSI, HSCEI and HSTECH indices will use today’s closing prices to cap the index constituent weights at 8%. This will lead to large flows.
Li Auto (2015 HK) will have the largest inflows due to the HSI inclusion while Xiaomi (1810 HK) will have the largest outflow due to HSTECH capping.
There will be passive selling in HSBC Holdings (5 HK) for yet another rebalance due to capping of the stock in the Hang Seng Index (HSI INDEX).

CIMC Vehicles (1839 HK): Parent Privatisation?

CIMC Vehicles (1839 HK) is currently suspended pursuant to Hong Kong’s Code on Takeovers and Mergers.
SOE-Backed CIMC Group controls ~74% of CMIC Vehicle’s H-shares. Presumably, if any Offer was to unfold, it would be from the parent.
And what price for the H-shares? Around HK$9/share, a life-time high, would be in keeping with premiums seen in precedent PRC-incorporated privatisations.

CIMC Vehicles (1839 HK): $7.00/Share Indicative Offer From Parent – Really?!