Category

Daily Briefs

Oct 02
0

Daily Brief Japan: Kokusai Electric , Japan Airlines, Tokyo Stock Exchange Tokyo Price Index Topix, Daiichi Sankyo, PAL GROUP Holdings Co., Ltd., Seibu Giken and more

By | Daily Briefs, Japan

In today’s briefing:

  • Kokusai Electric IPO: The Bear Case
  • APAC Airline Sector – Cost Inflation Management Differentials Crucial as Cargo Yields Normalise
  • Too Many Portfolio Companies Is One of the Reasons for Not Enough Engagement
  • Daiichi Sankyo (4568 JP): Strong Start of FY24; Partnered Oncology Drug Candidate Hits First Goal
  • Pal Group’s 3Coins: Coining It
  • Seibu Giken IPO Trading – Still Not Particularly Enticing

Kokusai Electric IPO: The Bear Case

By Arun George

  • Kokusai Electric (6525 JP) is a speciality manufacturer of semiconductor production equipment. KKR & (KKR US) seeks to raise about US$750 million through listing Kokusai.
  • In Kokusai Electric IPO: The Bull Case, we highlighted the key elements of the bull case. In this note, we outline the bear case.
  • The bear case rests on a declining revenue trend, a challenging near-term growth target, high China revenue risk, margins on a downward trend, increasing inventory days and deteriorating FCF.

APAC Airline Sector – Cost Inflation Management Differentials Crucial as Cargo Yields Normalise

By Neil Glynn

  • We publish a detailed update on the APAC airline sector, featuring ANA, Cathay Pacific, JAL, Korean Air, Qantas and Singapore Airlines, addressing cargo yield normalisation, and unit cost inflation.
  • We see 24% upside to consensus EBITDAR for JAL in FY24 to March 2024, and 24% downside risk at Singapore Airlines based on our detailed analysis and quarterly earnings bridges.
  • We expect earnings at most carriers to decline in calendar 2024 versus 2023 as the combination of cargo yield normalisation, fuel price pressure, and further capacity restoration prompt margin declines.

Too Many Portfolio Companies Is One of the Reasons for Not Enough Engagement

By Aki Matsumoto

  • The problem of agenda setting in engagement with investment firms is due to the mismatch that is occurring in each of the listed companies and investors.
  • Meetings without top management present disappoint investors who have prepared thorough analyses of the issues facing the portfolio company. Top management should also avoid listening to template questions at meetings.
  • It’s unrealistic to ask passive funds that cannot devote resources not to ask template questions. Active funds of Japanese investment managers may have too many portfolio companies to engage adequately.

Daiichi Sankyo (4568 JP): Strong Start of FY24; Partnered Oncology Drug Candidate Hits First Goal

By Tina Banerjee

  • Daiichi Sankyo (4568 JP) reported a 25% YoY revenue growth in Q1FY24, mainly driven by oncology drug Enhertu. The company reiterated FY24 guidance, with revenue and operating profit growing double-digit.
  • Daiichi Sankyo’s drug candidate datopotamab deruxtecan demonstrated statistically significant and clinically meaningful progression-free survival benefit in certain types of breast cancer patients in pivotal phase 3 trial.
  • Enhertu is well-positioned for geography and indication expansion as well as market share gain. Strengthening oncology portfolio and rich late-stage pipeline entail significant growth opportunity for the company.

Pal Group’s 3Coins: Coining It

By Michael Causton

  • Pal Group posted record sales in FY2022 partly because fashion retail recovered but mostly because of it has a huge hit on its hands: variety store 3Coins.
  • Cheap variety stores have always been popular and are becoming even more so as prices rise and people spend more on the home.
  • 3Coins has doubled sales in 2 years but expects continued strong growth going forward. With fashion sales also improving, Pal Group is one of few solid bets in lifestyle retailing.

Seibu Giken IPO Trading – Still Not Particularly Enticing

By Sumeet Singh

  • Seibu Giken (6223 JP) (SG) raised around US$93m in its Japan IPO after pricing at the top of its downward revised range.
  • SG sells desiccant dehumidifiers and VOC concentrators in over fifty countries globally. Its two main products accounted for over 90% of its revenue in 2022.
  • In our previous notes, we looked at the company’s past performance and valuation. In this note, we talk about the trading dynamics.

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Oct 01
0

Daily Brief Quantitative Analysis: TWSE Short Interest Weekly (Sep 29th): Unimicron Tech and more

By | Daily Briefs, Quantitative Analysis

In today’s briefing:

  • TWSE Short Interest Weekly (Sep 29th): Unimicron Tech, Largan Precision, Wistron, Gigabyte Tech

TWSE Short Interest Weekly (Sep 29th): Unimicron Tech, Largan Precision, Wistron, Gigabyte Tech

By Ke Yan, CFA, FRM

  • We analyzed the changes in short interest of TWSE Stocks as of Sep 29th which has an aggregated short interest worth USD13.4bn.
  • 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 Unimicron Tech, Largan Precision, Wistron, Gigabyte Tech, Faraday Tech.

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Oct 01
0

Daily Brief ESG: Singapore Exchange and more

By | Daily Briefs, ESG

In today’s briefing:

  • Singapore Exchange, Korea Exchange Lead Exchange-Owned ESG Indexer Growth
  • PPF Telecom – ESG Report – Lucror Analytics
  • Sierracol – ESG Report – Lucror Analytics

Singapore Exchange, Korea Exchange Lead Exchange-Owned ESG Indexer Growth

By Kyle Rudden

  • Absolute value of index-linked assets is the ultimate measure of market share, but it misses an important aspect of the ESG-related indexing market – i.e., relative market share growth.
  • A category of ESG index providers that leads vis-à-vis relative growth is exchange-owned ESG index providers, a group which currently accounts for US$46.3 billion in indexed assets.
  • Asian exchange-owned ESG indexers are the clear leaders in that subcategory, with Singapore Exchange (SGX SP) and Korea Exchange leading that cohort with double-digit growth.

PPF Telecom – ESG Report – Lucror Analytics

By Charles Macgregor

  • Lucror Analytics’ ESG Scores are based on a 3-tiered scale and are adjusted for Controversies (if applicable).
  • We view PPF Telecom’s ESG as “Adequate”, in line with the Governance score, while the Environmental and Social scores are “Strong”. Controversies are “Immaterial” and Disclosure is “Adequate”.
  • PPF Telecom Group (PPF) is part of the PPF Group, a holding company with investments in financial services, telecommunications, real estate and other industries.

Sierracol – ESG Report – Lucror Analytics

By Charles Macgregor

  • Lucror Analytics’ ESG Scores are based on a 3-tiered scale and are adjusted for Controversies (if applicable).
  • We assess SierraCol’s ESG as “Adequate”, in line with the Environmental, Social and Governance pillars. Disclosure is “Adequate” and Controversies are “Immaterial”.
  • SierraCol has an “Adequate” Environmental score, mainly owing to the targets set for all key environmental factors.

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Oct 01
0

Daily Brief ECM: ECM Weekly (1st Oct 2023) – Cainiao and more

By | Daily Briefs, ECM

In today’s briefing:

  • ECM Weekly (1st Oct 2023) – Cainiao, J&T, Kokusai, Seoul Guarantee, Ecopro, Leapmotor, Bajaj Finance
  • Ecopro Materials IPO Valuation Analysis

ECM Weekly (1st Oct 2023) – Cainiao, J&T, Kokusai, Seoul Guarantee, Ecopro, Leapmotor, Bajaj Finance

By Sumeet Singh

Ecopro Materials IPO Valuation Analysis

By Douglas Kim

  • Our base case valuation for Ecopro Materials is implied price per share of 40,325 won per share, which is within the IPO price range of 36,200 won to 46,000 won.
  • Given the lack of upside relative to the IPO price range, we have a negative view of this IPO. 
  • Ecopro Materials is engaged in the business of manufacturing and selling high-nickel precursors, one of the key materials for high-nickel anode materials for secondary batteries.

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Oct 01
0

Daily Brief Thematic (Sector/Industry): Japan Weekly | Stocks Slump and more

By | Daily Briefs, Thematic (Sector/Industry)

In today’s briefing:

  • Japan Weekly | Stocks Slump, Oracle Outperforms, Activists Accumulate
  • China Banks: Depressed Positioning
  • US Big Banks – Wkly B/S 20 Sep, Slower Loans +1.5%, CRE -0.5%, Big Term-Deposits Up to 6.8% of Total

Japan Weekly | Stocks Slump, Oracle Outperforms, Activists Accumulate

By Mark Chadwick

  • Japanese stocks limped towards the end of the quarter, with Topix ending the week -2.2% lower. Bond yields hit 10 year high and yen ended play at Y149/$
  • Economic momentum may be slowing and tech stocks plumbing new lows, but Oracle Japan surprised the market with 12% top line growth in the first quarter. 
  • Yet more foreign / activist buying in the drug store sector. Consolidation is the story and Orbis want to write the ending.

China Banks: Depressed Positioning

By Steven Holden

  • Fund exposure to China & HK Banks closes in on lowest levels on record
  • Asia Ex-Japan investors prefer Indian and Indonesian Banks, whilst Tech/Internet industry groups dominate portfolios.
  • China & HK Banks stand as the largest industry underweight, with 87% of funds positioned below the benchmark. Underperformance is expected.

US Big Banks – Wkly B/S 20 Sep, Slower Loans +1.5%, CRE -0.5%, Big Term-Deposits Up to 6.8% of Total

By Daniel Tabbush

  • Weekly balance sheets to 20 September show worsening general trends for large US banks, that can point to risk aversion, and worse net interest income and profit delta.
  • Loan growth ratcheted well lower from 2.04% YoY three weeks ago, to 1.89% two weeks ago and now to 1.54% in most recent week’s data. CRE loans see worsening contraction.
  • Large US banks continue to accelerating growth in Jumbo Time Deposits, now at 89.0% YoY vs 85.8% in preceding week. These are now 6.8% of deposits, 2.1% higher WoW.

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Oct 01
0

Daily Brief Event-Driven: Murakami-San’s Masterful Maneuvering to Stymy SBI’s Shysterish Shinsei Squeezeout and more

By | Daily Briefs, Event-Driven

In today’s briefing:

  • Murakami-San’s Masterful Maneuvering to Stymy SBI’s Shysterish Shinsei Squeezeout
  • Kasumigaseki Capital (3498) Moving To TOPIX End-November
  • Target Cosmo AM&T as a Prime Candidate for KOSPI 200 Special Entry in December
  • Last Week in Event SPACE: Toshiba, CK Infra/Power Assets, Rakuten Bank, Haitong Int’l Sec
  • (Mostly) Asia M&A, Sept 2023: JMDC, Pact, Takisawa, Golden Eagle Energy, Dic Corp
  • Index Rebalance & ETF Flow Recap: Thai Bev, Golden Agri, EcoPro Materials, Doosan Robotics, PCOMP
  • Symbio (SYM AU): Aussie Broadband’s Superior Proposal
  • (Mostly) Asia-Pac Weekly Risk Arb Wrap: System Info, Keiyo, Invocare, Liontown, ENM, Toyo Const.

Murakami-San’s Masterful Maneuvering to Stymy SBI’s Shysterish Shinsei Squeezeout

By Travis Lundy

  • The SBI Holdings (8473 JP) takeout of SBI Shinsei Bank (8303 JP) was opportunistic – done at a price SBI Shinsei’s Board considered not reasonable. Until it changed its mind.
  • I had thought appraisal rights a great trade. I also thought it a good trade to own the back end, but that involved one holder putting ¥55bn on the table. 
  • Activist Murakami-san’s S Grant Corporation has done that. It will own one share of 8 post-consolidation on Monday. They are now equal shareholders with the govt entities.  Wow.

Kasumigaseki Capital (3498) Moving To TOPIX End-November

By Travis Lundy

  • Real estate consultant/developer/speculator Kasumigaseki Capital (3498 JP) announced Friday that it would move from TSE Growth to TSE Prime on 6 October. 
  • The stock was on the list of top potential candidates in TOPIX Inclusions: Who Is Ready (Sep 2023) (and has been for nearly a year). It’s a good list.
  • This event leads to a TOPIX inclusion on 29 November. Analysis below.

Target Cosmo AM&T as a Prime Candidate for KOSPI 200 Special Entry in December

By Sanghyun Park

  • The introduction of float market cap is anticipated to apply not only to sector-based screening for the KOSPI 200 but also to special entry considerations.
  • Cosmo AM&T emerges as a direct beneficiary of this change. It currently ranks 52nd within the KOSPI, maintaining a tight gap with the borderline (50th).
  • Once it enters the KOSPI 200, it will also become a part of KOSPI 200 IT. As a result, the estimated flow size is approximately ₩230B, about 6x ADTV.

Last Week in Event SPACE: Toshiba, CK Infra/Power Assets, Rakuten Bank, Haitong Int’l Sec

By David Blennerhassett

(Mostly) Asia M&A, Sept 2023: JMDC, Pact, Takisawa, Golden Eagle Energy, Dic Corp

By David Blennerhassett

  • For the month of September 2023, 8 new deals (firm and non-binding) were discussed on Smartkarma with an overall announced deal size of ~US$2bn.
  • The average premium for the new deals announced (or first discussed) in September was 37%. The average YTD is 35%.
  • This compares to the average premium for all deals in 2022 (106 deals), 2021 (165 deals), 2020 (158 deals), and 2019 (145 deals) of 41%, 33%, 31%, and 31% respectively.

Index Rebalance & ETF Flow Recap: Thai Bev, Golden Agri, EcoPro Materials, Doosan Robotics, PCOMP

By Brian Freitas

Symbio (SYM AU): Aussie Broadband’s Superior Proposal

By Arun George

  • Symbio Holdings (SYM AU)‘s indicative proposal from Aussie Broadband Pty Ltd (ABB AU) is A$2.36 + 0.192 ABB shares per SYM share, 10.6% premium to Superloop Ltd (SLC AU)’s offer.
  • The Board has declared ABB’s offer as the superior proposal and granted exclusive due diligence until 20 October. The Board intends to recommend a binding ABB proposal.
  • Superloop’s offer was the final offer in the absence of a superior proposal. If it chooses to enter a bidding war, Superloop will need a higher cash component. 

(Mostly) Asia-Pac Weekly Risk Arb Wrap: System Info, Keiyo, Invocare, Liontown, ENM, Toyo Const.

By David Blennerhassett

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Oct 01
0

Daily Brief Equity Bottom-Up: Ford Halts Construction of U.S. EV Battery Plant Using CATL Technology and more

By | Daily Briefs, Equity Bottom-Up

In today’s briefing:

  • Ford Halts Construction of U.S. EV Battery Plant Using CATL Technology
  • Taiwan AI Supply Chain Names: Four AI Plays to Short as Hedge Vs. An Nvidia Long
  • Prodia (PRDA IJ) – Going Digital with Precision
  • Delta Taiwan Vs. Thailand Monitor: Delta Thai Crashes After Parent Share Sale; Still Overvalued
  • Taiwan Dual Listings Monitor: TSMC & UMC Trading Ranges Working; Short ASE Spread at Latest Level
  • Kaspi.kz: The Super-App of Kazakhstan
  • VF Corporation: Understanding the Dynamics Behind The Recent Financial Performance! – Major Drivers
  • China Healthcare Weekly (Sep.29) – Be Rational About Biotech Investment, R&D Team Layoffs, Huadong
  • Emerald Holding: Does Onex Exploring A Sale Imply That The Company Has A Limited Upside?
  • PROS Holdings Acquisition Alert: A Golden Opportunity or a Mirage for Investors?

Ford Halts Construction of U.S. EV Battery Plant Using CATL Technology

By Caixin Global

  • Ford Motor Co. said Monday it was suspending construction of its $3.5 billion electric-vehicle (EV) battery plant in the U.S. midwestern state of Michigan, where it had planned to manufacture batteries using technology licensed from Contemporary Amperex Technology Co. Ltd. (CATL) (300750.SZ -0.31%).
  • “We’re pausing work and limiting spending on construction on the Marshall project until we’re confident about our ability to competitively operate the plant,” Ford spokesperson T.R. Reid said in a statement emailed to Caixin.
  • “There are a number of considerations. We haven’t been specific about what they are, nor made any final decision about the planned investment there,” Reid said.

Taiwan AI Supply Chain Names: Four AI Plays to Short as Hedge Vs. An Nvidia Long

By Vincent Fernando, CFA

  • Taiwan’s AI supply chain names have fallen over the last month, yet many have still outperformed Nvidia by a wide margin over the last six months.
  • We don’t want to sell our Nvidia despite market risks — We believe a basket of Taiwan AI stocks can act as a Short to hedge a Long Nvidia position.
  • Shorting a basket of Wistron, Quanta, Gold Circuit, and Asia Vital Components can act as a hedge vs. a Long Nvidia position. Below we explain why.

Prodia (PRDA IJ) – Going Digital with Precision

By Angus Mackintosh

  • Prodia is the leading diagnostics company in Indonesia, with over 40% market share as the most trusted brand in the country, given accreditation from the College of American Physicians.
  • The company was a huge beneficiary of all the testing over COVID with the result of a post-pandemic correction but sales should see a strong 2H2023 with more like-for-like comparisons.
  • Prodia (PRDA IJ) remains one of our top healthcare picks in Indonesia, with rising health consciousness driving higher demand for testing. Valuations are extremely attractive versus Indian peers. 

Delta Taiwan Vs. Thailand Monitor: Delta Thai Crashes After Parent Share Sale; Still Overvalued

By Vincent Fernando, CFA

  • Delta Thailand shares crashed over 20% in one day after its Taiwan parent sold a stake in the company.
  • Given the small size of the stake sale, we believe the share sale by the parent represents an opportunistic sale to crystallize value from Delta Thailand’s high share price.
  • We spoke with Delta Taiwan to update our model. Delta Taiwan continues to offer much better value than Delta Thailand, earning more than double Thailand’s net profit with similar growth.

Taiwan Dual Listings Monitor: TSMC & UMC Trading Ranges Working; Short ASE Spread at Latest Level

By Vincent Fernando, CFA

  • Our range for TSMC’s spread trading appears to be working. Premium has rebounded lately and we would Short if breaks above 9.8%.
  • Our UMC trading range also appears to be working. We should Short if the premium increases slightly further to break 1%.
  • One can consider Shorting ASE’s ADR premium at the current 10.8% premium level. After latest premium spike, risk appears skewed to the downside in the coming weeks.

Kaspi.kz: The Super-App of Kazakhstan

By Alec Tseung

  • Kaspi.kz is the local super-app in Kazakhstan, with payments, marketplace, and Fintech as its three main business segments.
  • The company has achieved strong topline and bottom line growth since listing with a RoAE >70% over the years and its share price having gone up ~3x.
  • Key concerns arise from its political ties and future growth potential, given the country’s relatively low population/user size.

VF Corporation: Understanding the Dynamics Behind The Recent Financial Performance! – Major Drivers

By Baptista Research

  • VF Corporation delivered a mixed result in the past quarter, with revenues above anticipations, but it failed to surpass the analyst consensus in terms of earnings.
  • While their on-time performance and in-stock percentages were both back in line with their expectations, lead times concluded the quarter at typical levels.
  • Vans experienced a 22% decline in the quarter and was significantly impacted by the brand’s expected 40% decline in wholesale sales in the Americas.

China Healthcare Weekly (Sep.29) – Be Rational About Biotech Investment, R&D Team Layoffs, Huadong

By Xinyao (Criss) Wang

  • We have discovered something interesting from the innovative drug evaluations disclosed by the NMPA over the years. It’s recommended to establish rational expectations for the investment return of biopharmaceutical industry.
  • We analyzed the different situations faced by Biotech in IPO/M&A process, so as to help investors make rational judgments. R&D team is likely to be cut regardless of the circumstances.
  • We updated views on Huadong. Its old businesses dragged down valuation. It may need to wait until Huadong delivers better-than-expected sales/profit growth in weight-loss management business before further boosting valuation.

Emerald Holding: Does Onex Exploring A Sale Imply That The Company Has A Limited Upside?

By Baptista Research

  • This is a special one-time report on Emerald Holding that is creating ripples in the news circuit, courtesy of the exploration endeavors by its predominant shareholder, Onex.
  • Emerald Holding, though operating with a low profile, has been wielding a silent yet significant influence over the events sphere.
  • In this report, we have carried out a fundamental analysis of the historical financial statements of the company.

PROS Holdings Acquisition Alert: A Golden Opportunity or a Mirage for Investors?

By Baptista Research

  • This is a special one-time report on PROS Holdings which has garnered attention due to speculation around a potential sale, as noted in a Reuters report.
  • Despite its significant role and contributions to various industries, including airlines, PROS has encountered notable challenges, struggling to achieve profitability.
  • Thus, the pertinent questions that arise are related to the feasibility of an acquisition of PROS Holdings and the potential premium that early investors might garner from such a transaction.

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Oct 01
0

Daily Brief TMT/Internet: Cosmo AM&T, NVIDIA Corp, Alibaba (ADR), Taiwan Semiconductor (TSMC) – ADR, Delta Electronics, Symbio Holdings, Kaspi.KZ , Emerald Holding , US Cellular, PPF Telecom Group B.V. and more

By | Daily Briefs, TMT/Internet

In today’s briefing:

  • Target Cosmo AM&T as a Prime Candidate for KOSPI 200 Special Entry in December
  • Taiwan AI Supply Chain Names: Four AI Plays to Short as Hedge Vs. An Nvidia Long
  • ECM Weekly (1st Oct 2023) – Cainiao, J&T, Kokusai, Seoul Guarantee, Ecopro, Leapmotor, Bajaj Finance
  • Taiwan Dual Listings Monitor: TSMC & UMC Trading Ranges Working; Short ASE Spread at Latest Level
  • Delta Taiwan Vs. Thailand Monitor: Delta Thai Crashes After Parent Share Sale; Still Overvalued
  • Symbio (SYM AU): Aussie Broadband’s Superior Proposal
  • Kaspi.kz: The Super-App of Kazakhstan
  • Emerald Holding: Does Onex Exploring A Sale Imply That The Company Has A Limited Upside?
  • UScellular’s Exploration of Sale: A Strategic Move Or A Desperate Measure?
  • PPF Telecom – ESG Report – Lucror Analytics

Target Cosmo AM&T as a Prime Candidate for KOSPI 200 Special Entry in December

By Sanghyun Park

  • The introduction of float market cap is anticipated to apply not only to sector-based screening for the KOSPI 200 but also to special entry considerations.
  • Cosmo AM&T emerges as a direct beneficiary of this change. It currently ranks 52nd within the KOSPI, maintaining a tight gap with the borderline (50th).
  • Once it enters the KOSPI 200, it will also become a part of KOSPI 200 IT. As a result, the estimated flow size is approximately ₩230B, about 6x ADTV.

Taiwan AI Supply Chain Names: Four AI Plays to Short as Hedge Vs. An Nvidia Long

By Vincent Fernando, CFA

  • Taiwan’s AI supply chain names have fallen over the last month, yet many have still outperformed Nvidia by a wide margin over the last six months.
  • We don’t want to sell our Nvidia despite market risks — We believe a basket of Taiwan AI stocks can act as a Short to hedge a Long Nvidia position.
  • Shorting a basket of Wistron, Quanta, Gold Circuit, and Asia Vital Components can act as a hedge vs. a Long Nvidia position. Below we explain why.

ECM Weekly (1st Oct 2023) – Cainiao, J&T, Kokusai, Seoul Guarantee, Ecopro, Leapmotor, Bajaj Finance

By Sumeet Singh

Taiwan Dual Listings Monitor: TSMC & UMC Trading Ranges Working; Short ASE Spread at Latest Level

By Vincent Fernando, CFA

  • Our range for TSMC’s spread trading appears to be working. Premium has rebounded lately and we would Short if breaks above 9.8%.
  • Our UMC trading range also appears to be working. We should Short if the premium increases slightly further to break 1%.
  • One can consider Shorting ASE’s ADR premium at the current 10.8% premium level. After latest premium spike, risk appears skewed to the downside in the coming weeks.

Delta Taiwan Vs. Thailand Monitor: Delta Thai Crashes After Parent Share Sale; Still Overvalued

By Vincent Fernando, CFA

  • Delta Thailand shares crashed over 20% in one day after its Taiwan parent sold a stake in the company.
  • Given the small size of the stake sale, we believe the share sale by the parent represents an opportunistic sale to crystallize value from Delta Thailand’s high share price.
  • We spoke with Delta Taiwan to update our model. Delta Taiwan continues to offer much better value than Delta Thailand, earning more than double Thailand’s net profit with similar growth.

Symbio (SYM AU): Aussie Broadband’s Superior Proposal

By Arun George

  • Symbio Holdings (SYM AU)‘s indicative proposal from Aussie Broadband Pty Ltd (ABB AU) is A$2.36 + 0.192 ABB shares per SYM share, 10.6% premium to Superloop Ltd (SLC AU)’s offer.
  • The Board has declared ABB’s offer as the superior proposal and granted exclusive due diligence until 20 October. The Board intends to recommend a binding ABB proposal.
  • Superloop’s offer was the final offer in the absence of a superior proposal. If it chooses to enter a bidding war, Superloop will need a higher cash component. 

Kaspi.kz: The Super-App of Kazakhstan

By Alec Tseung

  • Kaspi.kz is the local super-app in Kazakhstan, with payments, marketplace, and Fintech as its three main business segments.
  • The company has achieved strong topline and bottom line growth since listing with a RoAE >70% over the years and its share price having gone up ~3x.
  • Key concerns arise from its political ties and future growth potential, given the country’s relatively low population/user size.

Emerald Holding: Does Onex Exploring A Sale Imply That The Company Has A Limited Upside?

By Baptista Research

  • This is a special one-time report on Emerald Holding that is creating ripples in the news circuit, courtesy of the exploration endeavors by its predominant shareholder, Onex.
  • Emerald Holding, though operating with a low profile, has been wielding a silent yet significant influence over the events sphere.
  • In this report, we have carried out a fundamental analysis of the historical financial statements of the company.

UScellular’s Exploration of Sale: A Strategic Move Or A Desperate Measure?

By Baptista Research

  • This is a special one-time research report on United States Cellular Corporation (UScellular).
  • In light of recent announcements, the company emerges as a subject of intricate valuation and examination for potential investors and acquisition entities.
  • With the strategic review underway without a definitive completion timetable, it’s crucial for investors to understand the merits and demerits of UScellular as an acquisition target.

PPF Telecom – ESG Report – Lucror Analytics

By Charles Macgregor

  • Lucror Analytics’ ESG Scores are based on a 3-tiered scale and are adjusted for Controversies (if applicable).
  • We view PPF Telecom’s ESG as “Adequate”, in line with the Governance score, while the Environmental and Social scores are “Strong”. Controversies are “Immaterial” and Disclosure is “Adequate”.
  • PPF Telecom Group (PPF) is part of the PPF Group, a holding company with investments in financial services, telecommunications, real estate and other industries.

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Oct 01
0

Daily Brief Energy/Materials: EcoPro Materials, SierraCol Energy and more

By | Daily Briefs, Energy & Materials Sector

In today’s briefing:

  • Ecopro Materials IPO Valuation Analysis
  • Sierracol – ESG Report – Lucror Analytics

Ecopro Materials IPO Valuation Analysis

By Douglas Kim

  • Our base case valuation for Ecopro Materials is implied price per share of 40,325 won per share, which is within the IPO price range of 36,200 won to 46,000 won.
  • Given the lack of upside relative to the IPO price range, we have a negative view of this IPO. 
  • Ecopro Materials is engaged in the business of manufacturing and selling high-nickel precursors, one of the key materials for high-nickel anode materials for secondary batteries.

Sierracol – ESG Report – Lucror Analytics

By Charles Macgregor

  • Lucror Analytics’ ESG Scores are based on a 3-tiered scale and are adjusted for Controversies (if applicable).
  • We assess SierraCol’s ESG as “Adequate”, in line with the Environmental, Social and Governance pillars. Disclosure is “Adequate” and Controversies are “Immaterial”.
  • SierraCol has an “Adequate” Environmental score, mainly owing to the targets set for all key environmental factors.

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Oct 01
0

Daily Brief Industrials: Toshiba Corp, Toyo Construction, HEICO Corp and more

By | Daily Briefs, Industrials

In today’s briefing:

  • Last Week in Event SPACE: Toshiba, CK Infra/Power Assets, Rakuten Bank, Haitong Int’l Sec
  • (Mostly) Asia-Pac Weekly Risk Arb Wrap: System Info, Keiyo, Invocare, Liontown, ENM, Toyo Const.
  • HEICO Corporation: Behind The Scenes Of The Recent Performance & The Wencor Acquisition! – Major Drivers

Last Week in Event SPACE: Toshiba, CK Infra/Power Assets, Rakuten Bank, Haitong Int’l Sec

By David Blennerhassett

(Mostly) Asia-Pac Weekly Risk Arb Wrap: System Info, Keiyo, Invocare, Liontown, ENM, Toyo Const.

By David Blennerhassett

HEICO Corporation: Behind The Scenes Of The Recent Performance & The Wencor Acquisition! – Major Drivers

By Baptista Research

  • HEICO Corporation managed to exceed the revenue and earnings expectations of Wall Street.
  • These results primarily represent a 12% quarterly consolidated organic net sales growth and the impact of acquisitions.
  • In the quarter, The Flight Support Group’s net sales grew 23% to $405 million, up from $330.3 million in the third quarter of fiscal 2022.

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