Category

Daily Briefs

Sep 22
0

Daily Brief United States: Caterpillar Inc, F5 Networks Inc, Advanced Micro Devices, Ansys Inc, Fleetcor Technologies, Freeport Mcmoran, Lumen Technologies, Marizyme, Odyssey Marine Exploration , Paccar Inc and more

By | Daily Briefs, United States

In today’s briefing:

  • Caterpillar Inc.: North America’s Construction Boom: How Caterpillar Is Capitalizing on It! – Major Drivers
  • F5 Networks Inc: The Future Of Networking & AI Integration! – Major Drivers
  • Advanced Micro Devices (AMD): Setting the Pace in AI with New Acquisitions? – Major Drivers
  • ANSYS Inc.: The Role of SMBs in Driving Growth! – Major Drivers
  • Fleetcor Technologies Inc: Discover the 5 Key Moves Behind Their Success! – Major Drivers
  • Freeport-McMoRan Inc.: How Is The Company Adapting to Global Shifts? – Major Drivers
  • Lumen Technologies Inc.: The NaaS Offering Might be the Future of Networking? – Major Drivers
  • Marizyme, Inc. – Powerful Technology Platform Driving Strong Growth Potential
  • Odyssey Marine Exploration, Inc. – Minerals for the Future
  • PACCAR Inc.: Road to Dominance: Profits

Caterpillar Inc.: North America’s Construction Boom: How Caterpillar Is Capitalizing on It! – Major Drivers

By Baptista Research

  • Caterpillar managed to exceed analyst expectations in terms of revenue as well as earnings, with sales and revenues soaring by 22%, primarily driven by increased sales volume and price realization.
  • This remarkable growth extended across all three primary segments: Construction Industries, Resource Industries, and Energy & Transportation, with sales to users registering a substantial 16% increase year-over-year.
  • Energy & Transportation also witnessed a remarkable increase in sales to users across all applications, including oil and gas, power generation, industrial, and transportation.

F5 Networks Inc: The Future Of Networking & AI Integration! – Major Drivers

By Baptista Research

  • F5 Networks Inc. delivered an all-around beat in the most recent quarterly result.
  • F5 also continues to observe increased maintenance attach rates on older deployments due to customers worrying about their existing assets.
  • Their product revenue increased by 1%, their systems revenue increased by 5%, and their software revenue decreased by 3%.

Advanced Micro Devices (AMD): Setting the Pace in AI with New Acquisitions? – Major Drivers

By Baptista Research

  • Advanced Micro Devices Inc. (AMD) delivered mixed results for the previous quarter, with revenues above analyst expectations but below-par earnings, showcasing strategic execution and notable achievements.
  • Despite a year-over-year decline in revenue, the company reported steady performance compared to the previous quarter.
  • The data center segment experienced sequential growth, primarily attributed to cloud providers’ accelerated adoption of the fourth-gen EPYC CPUs.

ANSYS Inc.: The Role of SMBs in Driving Growth! – Major Drivers

By Baptista Research

  • ANSYS Inc. delivered a solid result and managed an all-around beat in the last quarter, surpassing its financial guidance across all key metrics.
  • During Q2, the company reported reliable performance, beating its ACV, revenue, operating margin, and EPS guidance.
  • Total revenue for the quarter exceeded expectations, reflecting the positive impact of ACV outperformance and the mix of license types sold.

Fleetcor Technologies Inc: Discover the 5 Key Moves Behind Their Success! – Major Drivers

By Baptista Research

  • Fleetcor Technologies managed to surpass the revenue expectations as well as the earnings expectations of Wall Street.
  • Both print revenue growth and organic revenue growth stood at 10% for the quarter.
  • While Q2 print revenue benefited from acquisition revenue, it was offset by lower fuel prices.

Freeport-McMoRan Inc.: How Is The Company Adapting to Global Shifts? – Major Drivers

By Baptista Research

  • Freeport-McMoRan Inc. delivered a mixed result in the recent quarter, with revenues above market expectations, but it failed to surpass the analyst consensus regarding earnings.
  • Despite this setback, Freeport-McMoRan outperformed expectations, achieving a lower-than-expected unit net cash cost of 47 per pound.
  • This, combined with solid copper prices, resulted in robust margins and an impressive EBITDA of 14 billion.

Lumen Technologies Inc.: The NaaS Offering Might be the Future of Networking? – Major Drivers

By Baptista Research

  • Lumen Technologies, Inc. delivered a mixed result in the quarter, with revenues below anticipations but surpassed the Wall Street consensus regarding earnings.
  • The total revenue was $3.661 billion, decreased 2.1% sequentially.
  • In the quarter, free cash flow was negative $896 million, including $938 million in taxes paid in connection with their two divestitures from the previous year.

Marizyme, Inc. – Powerful Technology Platform Driving Strong Growth Potential

By Water Tower Research

  • Marizyme, Inc. (MRZM) is a fast-growing biomedical company with a powerful multi-technology platform.

  • At the forefront is DuraGraft (DG), which has already demonstrated improved outcomes and lower costs for cardiac care through clinical trials and actual implementation in select overseas markets.

  • In addition to continued ‘OUS’ expansion, MRZM is readying for the implementation of DG in US markets, pending FDA approval.

Odyssey Marine Exploration, Inc. – Minerals for the Future

By Water Tower Research

  • Initiating coverage of Odyssey Marine Exploration (OMEX), a pioneer in deep-ocean exploration that has pivoted away from exploring shipwrecks and is now using the vast experience accumulated over decades of undersea work to discover, validate, and develop subsea deposits rich in critical metals and minerals that are beneficial to society, including polymetallic nodules containing metals critical to battery production and phosphate, an important fertilizer component.

  • It’s all over but the waiting. Having completed the evidentiary phase and submitted post-hearing briefs in September 2022, OMEX is currently awaiting the decision of a NAFTA tribunal related to its arbitration against Mexico over what it believes was an illegal denial of an environmental permit to develop a phosphate resource located off the western coast of the country.

  • The potential for an award of monetary damages may exceed $2 billion and can provide longer-term project funding and development opportunities that would be made possible by such an infusion of capital.

PACCAR Inc.: Road to Dominance: Profits

By Baptista Research

  • PACCAR Inc. managed to exceed analyst expectations in terms of revenue and earnings.
  • PACCAR Parts reported double-digit revenue growth, accompanied by substantial pretax profit increases.
  • PACCAR Financial Services also contributed positively to the company’s strong quarter, benefiting from an excellent portfolio and favorable used truck results.

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Sep 22
0

Daily Brief Industrials: Hanwha Systems Co Ltd, Evergreen Marine Corp, Caterpillar Inc, Ametek Inc, Odyssey Marine Exploration , Paccar Inc, Trex Company and more

By | Daily Briefs, Industrials

In today’s briefing:

  • A Proactive Long Short Basket Setup Targeting KOSPI Size Index’s Next Rebal
  • Monthly Container Shipping Tracker | Rates Stable | Fuel (Barely) Lower Y/Y | (September 2023)
  • Caterpillar Inc.: North America’s Construction Boom: How Caterpillar Is Capitalizing on It! – Major Drivers
  • AMETEK Inc.: Recent Acquisition Could Skyrocket Its Growth! – Major Drivers
  • Odyssey Marine Exploration, Inc. – Minerals for the Future
  • PACCAR Inc.: Road to Dominance: Profits
  • Trex Company Inc.: Innovating Beyond Traditional Decking Boundaries! – Major Drivers

A Proactive Long Short Basket Setup Targeting KOSPI Size Index’s Next Rebal

By Sanghyun Park

  • We need to focus on the top 2 candidates among the Mid→Large candidates in the screening table mentioned above and the bottom 4 candidates among the Large→Mid candidates.
  • Since they are relatively far from the borderline, there is a significant likelihood that their classification will change. So, flow trading timing on these candidates could be brought forward.
  • Monitoring Doosan Robotics’s market cap potentially nearing ₩3T and keeping an eye on the listing date of Ecopro Materials, we should make changes to the Mid→Large candidates from early December.

Monthly Container Shipping Tracker | Rates Stable | Fuel (Barely) Lower Y/Y | (September 2023)

By Daniel Hellberg

  • Our index suggests pricing momentum remains depressed, but stable in Q3; fuel prices have begun to rise from Q2 lows, but probably don’t offer much lift to earnings now
  • We looked at intra-Asian carrier TS Lines (which applied to list its shares in Hong Kong in April) and provided a quick update on market conditions in the Intra-Asian trade
  • Shares of a few container shipping companies — including Evergreen Marine of Taiwan — have performed well YTD in 2023; we remain positive on the sector’s medium-term outlook

Caterpillar Inc.: North America’s Construction Boom: How Caterpillar Is Capitalizing on It! – Major Drivers

By Baptista Research

  • Caterpillar managed to exceed analyst expectations in terms of revenue as well as earnings, with sales and revenues soaring by 22%, primarily driven by increased sales volume and price realization.
  • This remarkable growth extended across all three primary segments: Construction Industries, Resource Industries, and Energy & Transportation, with sales to users registering a substantial 16% increase year-over-year.
  • Energy & Transportation also witnessed a remarkable increase in sales to users across all applications, including oil and gas, power generation, industrial, and transportation.

AMETEK Inc.: Recent Acquisition Could Skyrocket Its Growth! – Major Drivers

By Baptista Research

  • AMETEK Inc. delivered an all-around beat in the most recent quarterly result, characterized by outstanding operational execution and significant results.
  • The company achieved strong sales growth, surpassing expectations and setting histories for sales, operating income, operating margins, earnings per share, and EBITDA.
  • AMETEK’s Electronic Instruments Group demonstrated exceptional performance with widespread sales growth across divisions, while the Electromechanical Group also reported strong sales growth.

Odyssey Marine Exploration, Inc. – Minerals for the Future

By Water Tower Research

  • Initiating coverage of Odyssey Marine Exploration (OMEX), a pioneer in deep-ocean exploration that has pivoted away from exploring shipwrecks and is now using the vast experience accumulated over decades of undersea work to discover, validate, and develop subsea deposits rich in critical metals and minerals that are beneficial to society, including polymetallic nodules containing metals critical to battery production and phosphate, an important fertilizer component.

  • It’s all over but the waiting. Having completed the evidentiary phase and submitted post-hearing briefs in September 2022, OMEX is currently awaiting the decision of a NAFTA tribunal related to its arbitration against Mexico over what it believes was an illegal denial of an environmental permit to develop a phosphate resource located off the western coast of the country.

  • The potential for an award of monetary damages may exceed $2 billion and can provide longer-term project funding and development opportunities that would be made possible by such an infusion of capital.

PACCAR Inc.: Road to Dominance: Profits

By Baptista Research

  • PACCAR Inc. managed to exceed analyst expectations in terms of revenue and earnings.
  • PACCAR Parts reported double-digit revenue growth, accompanied by substantial pretax profit increases.
  • PACCAR Financial Services also contributed positively to the company’s strong quarter, benefiting from an excellent portfolio and favorable used truck results.

Trex Company Inc.: Innovating Beyond Traditional Decking Boundaries! – Major Drivers

By Baptista Research

  • Trex Company, Inc. delivered an all-around beat in the previous quarter, demonstrating the durability of customer demand for its goods and the power of the outdoor living market.
  • Despite a slight sales dip compared to the significant second quarter of last year, Trex saw mid-single-digit growth in channel sell-through.
  • Trex unveiled the Trex Select T-Rail system in the quarter.

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Sep 22
0

Daily Brief China: Midea Group Co Ltd A, Champion REIT, Vedanta Resources and more

By | China, Daily Briefs

In today’s briefing:

  • Midea A/H Listing – Early Look – Probably Raising Acquisition Currency
  • Champion REIT 2778 HK: Facing Multiple Headwinds, an Uphill Battle.  Bearish
  • Morning Views Asia: China Jinmao Holdings, China Vanke , Greentown China, Vedanta Resources

Midea A/H Listing – Early Look – Probably Raising Acquisition Currency

By Sumeet Singh

  • Midea Group Co Ltd A (000333 CH), one of the world’s largest home appliance producers, aims to raise up to  US$5bn in its H-share listing.
  • Midea Group is one of the world’s largest home appliance manufacturing companies with a presence in over 200 countries. Its A-shares have been listed since 2013.
  • In this note, we look at its past performance and other deal dynamics that might impact the listing.

Champion REIT 2778 HK: Facing Multiple Headwinds, an Uphill Battle.  Bearish

By Jacob Cheng

  • Champion REIT is facing multiple headwinds, including weakness in its office building due to upcoming office supply
  • Its retail asset Langham is doing better post COVID, but not enough to offset the weakness in office
  • DPU may continue to decline over time. Therefore we stay bearish until we see turn-around signal

Morning Views Asia: China Jinmao Holdings, China Vanke , Greentown China, Vedanta Resources

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.

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Sep 22
0

Daily Brief Health Care: Stryker Corp, Tandem Diabetes Care and more

By | Daily Briefs, Healthcare

In today’s briefing:

  • Stryker Corporation: A Health Giant Flexing its Muscles in MedSurg and Neurotech! – Major Drivers
  • Tandem Diabetes Care (TNDM US): Q2 Sales Declined, Margin Deteriorated; 2023 Guidance Revised Lower

Stryker Corporation: A Health Giant Flexing its Muscles in MedSurg and Neurotech! – Major Drivers

By Baptista Research

  • Stryker Corporation delivered a strong result and managed an all-around beat in the last quarter, marked by robust organic sales growth of 11.9%.
  • US and international organic sales demonstrated strong momentum despite a slight unfavorable impact from foreign currency exchange.
  • Lastly, the company expects organic sales growth for the entire year and adjusted EPS, highlighting its strong performance and positive outlook.

Tandem Diabetes Care (TNDM US): Q2 Sales Declined, Margin Deteriorated; 2023 Guidance Revised Lower

By Tina Banerjee

  • Tandem Diabetes Care (TNDM US) reported underwhelming Q2 results, with both revenue and EPS missing consensus. Adjusted EBITDA declined and adjusted operating loss increased on a year-over-year basis.
  • To reflect lower sales visibility, the company has lowered 2023 guidance. The company has guided for 2023 sales of at least $785M, compared with earlier guidance of $885–900M.
  • Tandem has also withdrawn correlating year for its long-term target. Achievement of long-term target is highly dependent on the adoption of the company’s recently approved insulin delivery system, Mobi.

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Sep 22
0

Daily Brief India: Vedanta Resources and more

By | Daily Briefs, India

In today’s briefing:

  • Morning Views Asia: China Jinmao Holdings, China Vanke , Greentown China, Vedanta Resources

Morning Views Asia: China Jinmao Holdings, China Vanke , Greentown China, Vedanta Resources

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.

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Sep 22
0

Daily Brief Consumer: Intage Holdings, Midea Group Co Ltd A, Melco Resorts & Entertainment, Costa Group Holdings, Constellation Brands, Restaurant Brands Internationa and more

By | Consumer, Daily Briefs

In today’s briefing:

  • Intage Holdings (4326 JP): NAVF Selldown and Proration for NTT’s Partial Offer
  • Midea A/H Listing – Early Look – Probably Raising Acquisition Currency
  • Melco Resorts – ESG Report – Lucror Analytics
  • Costa Backs Paine Schwartz’s Lower Bid
  • Constellation Brands Inc.: Making Waves in the Beverage World! – Major Drivers
  • Restaurant Brands International: The Recent Digital Surge – A Game-Changer in U.S. Market? – Major Drivers

Intage Holdings (4326 JP): NAVF Selldown and Proration for NTT’s Partial Offer

By Arun George

Midea A/H Listing – Early Look – Probably Raising Acquisition Currency

By Sumeet Singh

  • Midea Group Co Ltd A (000333 CH), one of the world’s largest home appliance producers, aims to raise up to  US$5bn in its H-share listing.
  • Midea Group is one of the world’s largest home appliance manufacturing companies with a presence in over 200 countries. Its A-shares have been listed since 2013.
  • In this note, we look at its past performance and other deal dynamics that might impact the listing.

Melco Resorts – ESG Report – Lucror Analytics

By Leonard Law, CFA

Lucror Analytics’ ESG Scores are based on a 3-tiered scale and are adjusted for Controversies (if applicable).
We assess Melco Resorts’ ESG as “Adequate”, in line with its Social and Governance scores. The Environmental pillar is “Strong”. Controversies are “Immaterial” and Disclosure is “Strong”.

Costa Backs Paine Schwartz’s Lower Bid

By David Blennerhassett

  • On the 18 September, Costa Group Holdings (CGC AU) announced A$3.20/share best and final Offer from Paine Schwartz Partners (PSP) down from the A$3.50/share NBIO in July.
  • Costa’s shares wobbled – would they, won’t they be supportive? A break price beyond the undisturbed price loomed. Vanguard kicked out a chunk of shares below A$3.
  • This morning Costa and PSP entered into a Scheme Implementation Deed. The transaction is expected to close in 1Q24. Key conditions are Costa’s shareholder vote and FIRB/SAMR/EU approval. 

Constellation Brands Inc.: Making Waves in the Beverage World! – Major Drivers

By Baptista Research

  • Constellation Brands, Inc. managed to exceed analyst expectations in terms of revenue as well as earnings.
  • The company’s beer business generated significant growth for the quarter while steadily moving forward with all 4 of its strategic projects.
  • Their larger premium and luxury brands in the higher-end wine area of their portfolio experienced weaker segment demand in April.

Restaurant Brands International: The Recent Digital Surge – A Game-Changer in U.S. Market? – Major Drivers

By Baptista Research

  • Restaurant Brands International Inc. delivered an all-around beat in the previous quarter, marked by impressive growth, with year-over-year consolidated system-wide sales increasing significantly.
  • Strong comparable sales and net restaurant growth drove this substantial growth.
  • Popeyes US achieved substantial growth in similar sales, driven by menu extensions, operational enhancements, and digital sales growth.

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Sep 22
0

Daily Brief Japan: Kokusai Electric , Intage Holdings, Softbank Group and more

By | Daily Briefs, Japan

In today’s briefing:

  • Kokusai Electric (6525 JP) IPO: Listing in October, TPX Inclusion in November, Global Indices Later
  • Intage Holdings (4326 JP): NAVF Selldown and Proration for NTT’s Partial Offer
  • Softbank Group – Tear Sheet – Lucror Analytics

Kokusai Electric (6525 JP) IPO: Listing in October, TPX Inclusion in November, Global Indices Later

By Brian Freitas

  • Kokusai Electric (6525 JP)‘s listing has been approved by the JPX and the stock is expected to start trading on the Prime Market from 25 October.
  • At the reported indicative IPO price of JPY 1890/share, Kokusai Electric (6525 JP) will be valued at JPY 435bn (US$2.94bn).
  • The stock should be added to the TPX INDEX at the close on 29 November where trackers will need to buy over 14% of the stock issued in the IPO.

Intage Holdings (4326 JP): NAVF Selldown and Proration for NTT’s Partial Offer

By Arun George

Softbank Group – Tear Sheet – Lucror Analytics

By Trung Nguyen

We view Softbank Group (SBG) as “Low Risk” on the LARA scale. This is mainly due to the group’s low reported leverage, as measured by LTV. SBG has demonstrated its ability to manage LTV, by periodically monetising large holdings of liquid assets (e.g. Alibaba Group Holding or T-Mobile/Deutsche Telekom shares) via derivatives or non-recourse margin loans. Investors can derive comfort from SBG’s remaining holdings of those liquid assets on the balance sheet. Domestic telco Softbank Corp is the only significant cash generator consolidated into SBG. We see risks stemming from the group’s reliance on its Alibaba stake (which may be volatile), as well as the use of cash from the asset monetisation programme. We are also concerned about the large share repurchase programmes despite SBG’s weak results, as well as the company’s ability to invest.

Our Credit Bias is “Stable”. We believe the worst is over for SBG. The North American and Chinese tech sectors appear to be improving. SBG executed a major asset monetisation exercise in FY 2022-23 to shore up the balance sheet, raising it to a healthy level. LTV is very low, and liquidity is sound. We see little downside going forward, and more upside.

Controversies are “Immaterial”, but the ESG Impact on Credit is “Moderately Negative”. SBG has faced governance concerns, particularly over internal controls and the outsized influence of Chairman, CEO and founder Masayoshi Son. Such issues flare up on occasion, weighing on the credit. One concern is that the chairman could make imprudent investments, lowering the value of SBG’s holdings while driving leverage up.

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Sep 22
0

Daily Brief Financials: Champion REIT, Bank Mandiri Persero, Bank Negara Indonesia Persero and more

By | Daily Briefs, Financials

In today’s briefing:

  • Champion REIT 2778 HK: Facing Multiple Headwinds, an Uphill Battle.  Bearish
  • Bank Mandiri (BMRI IJ) – Higher Returns While Livin’ It Up
  • BBNI – Stock Split to Double Shares on 10 October | NPLs Are in Sharp Decline, Especially Loss Loans

Champion REIT 2778 HK: Facing Multiple Headwinds, an Uphill Battle.  Bearish

By Jacob Cheng

  • Champion REIT is facing multiple headwinds, including weakness in its office building due to upcoming office supply
  • Its retail asset Langham is doing better post COVID, but not enough to offset the weakness in office
  • DPU may continue to decline over time. Therefore we stay bearish until we see turn-around signal

Bank Mandiri (BMRI IJ) – Higher Returns While Livin’ It Up

By Angus Mackintosh

  • Bank Mandiri (BMRI IJ) continues to positively surprise on loans, NIMs, and credit costs, with a consequential improvement in returns, only non-interest income seeing a slowdown but likely temporary.
  • Digital banking initiatives through Livin’ and KOPRA continue to grow and help the bank drive higher CASA and fee income whilst reducing costs, with smart branches also improving returns.
  • Bank Mandiri remains a core holding as a proxy to the Indonesian economy with its digital initiatives driving higher returns. Valuations remain attractive on 2.2x FY2023 PBV with 20% ROE.

BBNI – Stock Split to Double Shares on 10 October | NPLs Are in Sharp Decline, Especially Loss Loans

By Daniel Tabbush

  • The bank expects its 2 new for 1 old stock split to be done on 10 October
  • Total shares should move from 18.6tr to 37.3tr after the stock split
  • Compared with peers, BBNI has low market cap/assets, good ROA

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Sep 22
0

Most Read: Toshiba Corp, Newcrest Mining, Bloomberry Resorts, Kokusai Electric , SK Square , Midea Group Co Ltd A, Intage Holdings, Hanwha Systems Co Ltd, LG Corp, Kum Yang and more

By | Daily Briefs, Most Read

In today’s briefing:

  • Toshiba Tender Offer Ends Today – Upcoming Index Selldown Schedule
  • Newcrest-Newmont Merger: Fancy Index Shenanigans
  • PCOMP Index Rebalance Preview: MPI Delisting Could See Bloomberry Added
  • Kokusai Electric (6525 JP) IPO: Listing in October, TPX Inclusion in November, Global Indices Later
  • SK Square: Updated NAV Analysis Amid Potential Sale of 11st to Alibaba
  • Midea A/H Listing – Early Look – Probably Raising Acquisition Currency
  • Intage Holdings (4326 JP): NAVF Selldown and Proration for NTT’s Partial Offer
  • A Proactive Long Short Basket Setup Targeting KOSPI Size Index’s Next Rebal
  • LG Corp: Updated NAV Analysis & Outperformance Likely Driven by Value Investors
  • KRX Plans to Introduce Float Market Cap & Extreme Price Increases to KOSPI 200 Screening

Toshiba Tender Offer Ends Today – Upcoming Index Selldown Schedule

By Travis Lundy

  • The JIP Tender Offer for Toshiba Corp (6502 JP) closes today. I expect that we will see results announced as early as late tonight, but by law, by latest tomorrow.
  • There will be at least three major index downweights, and possibly deletions, most likely in the following five trading days.
  • This shows the approximate maximum share and dollar amounts to be sold, and approximate dates. 

Newcrest-Newmont Merger: Fancy Index Shenanigans

By Travis Lundy

PCOMP Index Rebalance Preview: MPI Delisting Could See Bloomberry Added

By Brian Freitas

Kokusai Electric (6525 JP) IPO: Listing in October, TPX Inclusion in November, Global Indices Later

By Brian Freitas

  • Kokusai Electric (6525 JP)‘s listing has been approved by the JPX and the stock is expected to start trading on the Prime Market from 25 October.
  • At the reported indicative IPO price of JPY 1890/share, Kokusai Electric (6525 JP) will be valued at JPY 435bn (US$2.94bn).
  • The stock should be added to the TPX INDEX at the close on 29 November where trackers will need to buy over 14% of the stock issued in the IPO.

SK Square: Updated NAV Analysis Amid Potential Sale of 11st to Alibaba

By Douglas Kim

  • In this insight, we provide an updated valuation analysis of SK Square (402340 KS) amid a potential sale of 11st to Alibaba (ADR) (BABA US).
  • Our NAV analysis of SK Square suggests NAV of 9.2 trillion won or NAV per share of 65,069 won, representing a 55% upside from current levels.
  • If SK Square is able to sell its stake in 11st to Alibaba, the capital inflow from the sale could be used to raise dividends and complete more share buybacks. 

Midea A/H Listing – Early Look – Probably Raising Acquisition Currency

By Sumeet Singh

  • Midea Group Co Ltd A (000333 CH), one of the world’s largest home appliance producers, aims to raise up to  US$5bn in its H-share listing.
  • Midea Group is one of the world’s largest home appliance manufacturing companies with a presence in over 200 countries. Its A-shares have been listed since 2013.
  • In this note, we look at its past performance and other deal dynamics that might impact the listing.

Intage Holdings (4326 JP): NAVF Selldown and Proration for NTT’s Partial Offer

By Arun George

A Proactive Long Short Basket Setup Targeting KOSPI Size Index’s Next Rebal

By Sanghyun Park

  • We need to focus on the top 2 candidates among the Mid→Large candidates in the screening table mentioned above and the bottom 4 candidates among the Large→Mid candidates.
  • Since they are relatively far from the borderline, there is a significant likelihood that their classification will change. So, flow trading timing on these candidates could be brought forward.
  • Monitoring Doosan Robotics’s market cap potentially nearing ₩3T and keeping an eye on the listing date of Ecopro Materials, we should make changes to the Mid→Large candidates from early December.

LG Corp: Updated NAV Analysis & Outperformance Likely Driven by Value Investors

By Douglas Kim

  • Our NAV analysis of LG Corp suggests an implied market cap of 16.9 trillion won or 107,217 won per share which is 28.4% higher than current share price. 
  • We believe that LG Corp could announce another share buybacks representing 2-3% of outstanding shares in the next 6-12 months. 
  • Another reason that could result in LG Corp’s shares outperforming other major LG related shares is due to the value investors increasing capital allocation to higher dividend paying LG Corp.

KRX Plans to Introduce Float Market Cap & Extreme Price Increases to KOSPI 200 Screening

By Sanghyun Park

  • In addition to full market cap and trading value, float-adjusted market cap will be added as a quantitative screening tool. 
  • Regarding extreme price increases, KRX plans to utilize the deviation between the average daily market capitalizations for two, three, and six months leading up to the screening base date.
  • We should consider designing trading setups that target stocks with relatively low free-float rates and high price volatility in recent months.

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Sep 21
0

Daily Brief Private Markets: Antler and more

By | Daily Briefs, Private Markets

In today’s briefing:

  • Antler, EFishery CEO Back Profitable Indonesian Corn Startup
  • Sustainable Farming, Supply Chain Traceability Startup Koltiva Raises Series A Funding
  • Evo Commerce Banks US$2.8M More for Product Development, Asia Expansion
  • Gene Solutions Raises $21m Series B, Targeting Regional Expansion

Antler, EFishery CEO Back Profitable Indonesian Corn Startup

By Tech in Asia

  • Maize plays a pivotal role in Indonesian agriculture, including as a prime source of animal feed. In 2022, the country’s maize production was estimated to reach 44 million tons.

  • Agritech startup Kora is one of those few startups operating in this space.

  • Kora aims to improve the quality and quantity of post-harvest maize.

Sustainable Farming, Supply Chain Traceability Startup Koltiva Raises Series A Funding

By e27

  • Indonesia-based Koltiva works with producers in 52 countries and boasts over 1 million producers and 6,800 businesses

  • Indonesia-based sustainable farming and supply chain traceability startup Koltiva has raised an undisclosed “seven-figure” USD in a Series A financing round led by AC Ventures.

  • Silverstrand Capital, Planet Rise, Development Finance Asia, Blue 7, The Meloy Fund, and an unnamed impact investor in Southeast Asia also joined.

Evo Commerce Banks US$2.8M More for Product Development, Asia Expansion

By e27

  • Evo Commerce owns two brands: bback focuses on post-party recovery aids, while Stryv specialises in the affordable luxury segment for personal care electronics

  • Evo Commerce, a direct-to-consumer health & beauty startup based in Singapore, has secured US$2.8 million in equity and debt financing.

  • Shanghai-based firm IJK Capital led the round, with participation from Carousell Co-Founder and CEO Quek Siu Rui, Fave Co-Founder Joel Neoh, and Tipsy Collective.

Gene Solutions Raises $21m Series B, Targeting Regional Expansion

By Tech in Asia

  • Gene Solutions, which bills itself as Vietnam’s largest genetic testing company, has raised US$21 million in a series B round.

  • This follows a US$15 million investment that the private equity investor made in the company in 2021.

  • Gene Solutions is one of Mekong Capital’s recent bets in biotech, a sector that has been arguably underserved by venture capital firms in Vietnam.

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