Daily Briefs

Doosan Robotics (DOOSANROBO KS) is looking to raise up to US$314m in its Korean IPO.
Doosan Robotics (DR) manufactures and sells collaborative robots (Cobots). The firm’s product portfolio primarily includes different series of robot arms as well as its coffee module.
In our previous notes, we looked at the company’s past performance and undertook a peer comparison. In this note, we talk about valuation.

Auckland Airport Placement – Well Flagged, LO Support but Still a Bit Tricky

Auckland City Council plans to sell around 4.5% of Auckland Intl Airport (AIA NZ) to fund its budget requirements for 2023-24.
The deal is very well flagged with Auckland City Council having publicly stated their intention to sell 7% of the stock in Jun 2023.
In this note, we talk about the deal dynamics and run the deal through our ECM framework.

Doosan Robotics IPO: Valuation Insights

By Arun George

Doosan Robotics (454910 KS) is a global industrial and collaborative robotics leader. It has opened the books on an up to US$318 million IPO.
We previously discussed the IPO in Doosan Robotics IPO: The Bull Case and Doosan Robotics IPO: The Bear Case.
In this note, we look at the syndicate’s valuation methodology. Our valuation analysis suggests that the IPO price range is unattractive, and we would pass on the IPO.

Elecon Engineering Co. Ltd- Forensic Analysis

By Nitin Mangal

Elecon Engineering (ELCN IN) (EECL) is one of the renowned manufacturers of Gears, often used in Industrials.
The company has gathered operational momentum in the last few years, coupled with debt reduction.
However, its balance sheet still has some concerns that are important. This relates to unaudited subsidiary, fixed asset disposals, write offs and ECL policy and large RPTs.

Lixil (5938 JP): Levered Business Facing Cyclical & Secular Headwinds & Continued Mkt Share Pressure

By Robert C Prather Jr

2/3 of sales face secular decline in housing demand/shrinking population and the other 1/3 facing weak housing environment due to rising rates
Competition from private label and weak trends and ratios exist
The valuation does not seem to reflect the risks highlighted

Epack Durable Pre-IPO Tearsheet

Epack Durable (1936389D IN) is looking to raise up to US$100m in its upcoming India IPO. The deal will be run by Axis Capital, DAM Capital and ICICI Securities.
Epack Durable (ED) is the fastest Indian growing room air conditioner original design manufacturer (ODM) based on growth in volume manufactured between FY20-23 (Year ended 31st Mar), according to F&S.
Further, it is the second largest ODM manufacturer in the Indian room air conditioner manufacturing market, with 29% market share in terms of volume manufactured in FY23, as per F&S.

Georg Fischer/Uponor: Extension of Offer Period

By Jesus Rodriguez Aguilar

Georg Fischer AG (FI/N SW) has so far purchased a 9.5% stake of Uponor OYJ (UNR1V FH) in the market. Georg Fischer’s shareholding plus irrevocable undertakings represent in total 46.4% (30 August).
There has been no disclosure about the shares tendered so far. Georg Fischer has extended the offer period until 31 October, while waiting to receive clearance from the European Commission.
Gross spread is 0.03%, so probably it is not worth becoming involved. The reason for this low spread is the acquisition of shares in the market by Georg Fischer.

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Sep 01

Daily Brief Financials: Rakuten Bank , Daiwa House Reit Investment, Abacus Group, China Jinmao Holdings, Bank Rakyat Indonesia, Five Star Business Finance, Blackrock Inc, Aflac Inc, Agile Property Holdings, American International Group and more

By Smartkarma Daily Briefs | Daily Briefs, Financials

In today’s briefing:

Rakuten Bank (5838) – 4 Months On, Volume Decay and RB’s Place Among Banks
Daiwa House REIT Placement – Sponsor Cutting Stake, Would Likely Need a Wider Correction
MVIS Australia A-REITs Index Rebalance Preview: Abacus Group Could Be Deleted
China Jinmao – Earnings Flash – H1 FY 2023 Results – Lucror Analytics
Bank Rakyat Indonesia (BBRI IJ) – Steering Towards Higher Returns
Five Star Placement – Well Flagged but Have a Lot More Stock to Get Through
BlackRock Inc.: Why Are They Successfully Winning Over Investment Clients? – Key Drivers
Aflac Incorporated: Strategic Alliances That Are Set to Propel Their Future! – Major Drivers
Morning Views Asia: Country Garden Holdings Co
American International Group (AIG) Inc.: A Robust Growth Strategy: Why It’s All About Risk Management & Partnerships! – Major Drivers

Rakuten Bank (5838) – 4 Months On, Volume Decay and RB’s Place Among Banks

By Travis Lundy

Four months ago, Rakuten Bank (5838 JP) was IPOed too low, then the price went up. It would appear foreign active ownership is relatively high.
Rakuten Bank stands out with high ROE and earnings growth. Banks stand out because, well, they’re going up.
Given expected 5yr earnings growth, Rakuten Bank at current price is probably “wrong.” But it has much less “bankness” than most banks, so you have to think about it differently.

Daiwa House REIT Placement – Sponsor Cutting Stake, Would Likely Need a Wider Correction

By Clarence Chu

Daiwa House Industry (1925 JP) is looking to raise US$175m from trimming a portion of its stake in Daiwa House Reit Investment (8984 JP).
Given that a selldown in the REIT hadn’t been explicitly guided, we would thus argue that the deal here isn’t particularly well flagged.
Overall, the base deal would represent 4.09% of the REIT’s total outstanding shares, representing 20 days of three month ADV.

MVIS Australia A-REITs Index Rebalance Preview: Abacus Group Could Be Deleted

The review period for the September rebalance ended yesterday. There could be one deletion from the index and a bunch of capping changes.
The index changes will lead to a one-way turnover of 3.4% resulting in a one-way trade of A$21m. There are two stocks with over A$5m to trade.
Short interest has increased on a few REITs recently while decreasing on most of the other names.

China Jinmao – Earnings Flash – H1 FY 2023 Results – Lucror Analytics

By Leonard Law, CFA

China Jinmao’s H1/23 results were in line with projections, with the company reporting robust contracted sales and cash collections despite the industry downturn. The gross margin narrowed to 14% (H1/22: 22%), albeit this was in line with industry trends. We expect the gross margin to remain weak, as Jinmao has to clear existing inventory (with higher land costs) in the subdued market.

We expect Jinmao’s debt to remain largely stable going forward, as the company will likely control land spending to shore up its balance sheet. Positively, the land bank has remained sufficiently large and should provide for 4-5 years of development. We expect Jinmao to continue reducing its offshore borrowings, and to redeem the perpetual securities.

Overall, Jinmao’s credit profile is underpinned by its SOE status, which supports the company’s access to financing. Moreover, the CHJMAO bonds are supported by the presence of cross-acceleration clauses with parent Sinochem Holdings’ offshore notes in the event of default. We move our recommendation to “Buy” from “Hold” on the CHJMAO notes, with a preference for the 2024 and 2025 notes (both yielding close to 15%).

Bank Rakyat Indonesia (BBRI IJ) – Steering Towards Higher Returns

By Angus Mackintosh

Bank Rakyat Indonesia (BBRI IJ) continues to be the key and unique proxy for micro and ultra-micro lending in Indonesia, with 1H2023 reflecting its increasingly strategic positioning in the space.
Microloans now account for 48% of loans and of this higher-yielding Kupedes microloans make up an increasingly larger portion, as it diversifies its KUR exposure.
The bank is set to see improving returns in 2H2023, with loan growth expected to pick-up and NIMs should also improve. 2.6x PBV with an ROE of 20.0% is attractive.

Five Star Placement – Well Flagged but Have a Lot More Stock to Get Through

Three PE investors are looking to raise up to US$158m via selling 5.9% of Five Star Business Finance (FIVESTAR IN) (FSB).
Five-Star Business is a non-banking financial company that provides secured business loans to micro-entrepreneurs and self-employed individuals. FSB had raised around US$190m in its India IPO in Nov 2022.
In this note, we will talk about the deal dynamics and updates since our last note.

BlackRock Inc.: Why Are They Successfully Winning Over Investment Clients? – Key Drivers

BlackRock delivered a mixed set of results in its most recent result, with revenues falling short of Wall Street expectations but above-par earnings.
BlackRock achieved $190 billion in total net inflows, indicating favorable flows from wealth and institutional customers across regions.
BlackRock generated $48 billion in net inflows during the quarter, taking the leading market share of ETF industry flows.

Aflac Incorporated: Strategic Alliances That Are Set to Propel Their Future! – Major Drivers

Aflac managed to exceed analyst expectations in terms of revenue and earnings.
The company’s diligent efforts and strategic initiatives in the United States and Japan have yielded strong results, positioning Aflac for future growth.
In Japan, the rollout of new products like WINGS cancer insurance and refreshed policies have contributed to significant sales growth, particularly in the cancer insurance segment.

Morning Views Asia: Country Garden Holdings Co

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.

Country Garden Holdings Co

American International Group (AIG) Inc.: A Robust Growth Strategy: Why It’s All About Risk Management & Partnerships! – Major Drivers

AIG delivered a solid result and managed an all-around beat in the quarter, marked by robust financial performance and significant progress on strategic initiatives.
Strategic actions, including divestitures and establishing a Private Client, Select as an MGA, further position AIG for future success.
In this report, we have carried out a fundamental analysis of the historical financial statements of the company.

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Sep 01

Daily Brief Health Care: Celltrion Inc, Neurowyzr, IDEXX Laboratories, Illumina Inc, BrainAurora Medical Technology, Novo Nordisk A/S, Agilent Technologies, Boryung Pharmaceutical, Iqvia Holdings, AFT Pharmaceuticals and more

By Smartkarma Daily Briefs | Daily Briefs, Healthcare

In today’s briefing:

(Mostly) Asia M&A, Aug 2023: Celltrion Inc/Healthcare, Itochu Techno, UMW, Boustead, SK Rent
Peak XV, Jungle Ventures Invest $2.1m in SG Brain Healthtech Firm
IDEXX Laboratories Inc.: Expansion Of The Renal Testing Portfolio & Other Major Drivers
Illumina Inc.: Unveiling the Growth Strategies That Spiked Clinical Sequencing! – Major Drivers
Pre-IPO BrainAurora Medical Technology – The Outlook Is Highly Uncertain
Novo Nordisk A/S: Can The Acquisition Of Inversago Pharma Be A Game Changer? – Major Drivers
Agilent Technologies: Acquisition Of Molecular Imaging Corp & Other Major Drivers
Boryung Pharmaceutical (003850 KS): 2Q23 Marks Six Consecutive Quarters of Revenue Growth
IQVIA Holdings Inc.: M&A Strategies to Watch Out For! – Major Drivers
AFT Pharmaceuticals – AFTO judgment clears AFT of breach claim

(Mostly) Asia M&A, Aug 2023: Celltrion Inc/Healthcare, Itochu Techno, UMW, Boustead, SK Rent

By David Blennerhassett

For the month of August 2023, 11 new deals (firm and non-binding) were discussed on Smartkarma with an overall announced deal size of ~US$29bn.
The average premium for the new deals announced (or first discussed) in August was 25%. The average YTD is 34%.
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.

Peak XV, Jungle Ventures Invest $2.1m in SG Brain Healthtech Firm

By Tech in Asia

“The brain is a complex organ, and also the least understood,” Pang Sze Yunn, co-founder and CEO of Singapore-based healthtech platform Neurowyzr, told Tech in Asia.

According to Pang, early brain decline can take between 20 and 40 years before obvious conditions such as dementia, mental health diseases, or stroke occur.

“By then, therapies have little impact,” she added. “Traditional brain tests are inefficient, expensive and inaccessible.”

IDEXX Laboratories Inc.: Expansion Of The Renal Testing Portfolio & Other Major Drivers

IDEXX Laboratories surpassed Wall Street’s revenue and earnings expectations, showcasing strong growth and financial performance.
The company achieved a 10% organic increase in overall revenues, driven by remarkable growth in CAG Diagnostics’ recurring payments.
IDEXX’s solid performance was particularly evident in the significant placements of premium instruments, sustained new business gains, and strong growth in recurring veterinary software revenues.

Illumina Inc.: Unveiling the Growth Strategies That Spiked Clinical Sequencing! – Major Drivers

Illumina managed to surpass the revenue expectations as well as the earnings expectations of Wall Street.
Illumina exceeded its expectations, with approximately $1.18 billion in revenue and diluted non-GAAP EPS of $0.32.
In the quarter, the company sold 109 NovaSeq X instruments, and their team plans to offer more than 390 instruments over the entire year.

Pre-IPO BrainAurora Medical Technology – The Outlook Is Highly Uncertain

By Xinyao (Criss) Wang

DTx industry is still in the early stages of development. The establishment of a matching operation/service system is a very difficult task. There is a long distance from mature commercialization.
BrainAurora’s sales scale is small because its products haven’t received widespread recognition from medical system in China. Internationalization is challenging because it requires cross-border transfer of personal or scientific data.
BrainAurora’s business prospects is still unclear.As the attitude of capital market towards DTx has become more rational, investors have begun to doubt if this field could really bring good return.

Novo Nordisk A/S: Can The Acquisition Of Inversago Pharma Be A Game Changer? – Major Drivers

Novo Nordisk A/S had a disappointing quarter with below-par revenues and earnings just about on par with market expectations.
In addition to investing in the medium- and long-term development of the obesity market, Novo Nordisk also established an appealing and aggressive pipeline.
However, Novo Nordisk can still provide operating profit growth of 32% and first-half profits per share growth of 44%.

Agilent Technologies: Acquisition Of Molecular Imaging Corp & Other Major Drivers

Agilent Technologies delivered an all-around beat in the most recent quarterly result, with revenue of $1.67 billion, higher than the team had anticipated.
The pharma market in China is down 30%, which is the main reason for their overall pharma business decline.
In this report, we have carried out a fundamental analysis of the historical financial statements of the company.

Boryung Pharmaceutical (003850 KS): 2Q23 Marks Six Consecutive Quarters of Revenue Growth

By Tina Banerjee

Boryung Pharmaceutical (003850 KS) reported strong 2Q23 result, with revenue increasing 19% YoY to a record high of KRW216 billion, driven by 24% YoY growth in prescription drugs.
H1 2023 revenue and net profit progressed 52% and 62% of the annual target, respectively, marking the fastest semi-annual lap ever to annual target.
Boryung has reiterated guidance for 2023 revenue and operating profit of KRW810 billion and KRW61 billion, representing growth of 12% and 1%, YoY, respectively.

IQVIA Holdings Inc.: M&A Strategies to Watch Out For! – Major Drivers

IQVIA Holdings delivered a strong result and managed an all-around beat last quarter.
The company continues to thrive within a healthy demand environment for the industry, underpinning its optimistic long-term outlook.
In this report, we have carried out a fundamental analysis of the historical financial statements of the company.

AFT Pharmaceuticals – AFTO judgment clears AFT of breach claim

By Edison Investment Research

AFT Pharmaceuticals has reported that the Auckland High Court has cleared it of the contractual breach claim filed by PBL Solutions in April 2020, which maintained that the opportunity for Pascomer (a topical formulation of rapamycin) was not under the scope of AFT Orphan Pharmaceuticals’ (AFTO’s) business in its legal case. While the ruling dismissed PBL’s claim for a lump sum payment for the assessed present value of Pascomer’s potential, the legal authority has directed AFT to share 35% of the potential (future) profits, which may arise in orphan indications in as well as outside Asia-Pacific. We note that AFT is pursuing Pascomer in non-orphan indications such as port-wine stains and is in the very early stages of development, hence the ruling does not have a near- to medium-term impact on AFT. Our valuation at NZ$644m, or NZ$6.14 per share, and estimates for AFT are unchanged.

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Sep 01

Daily Brief Consumer: Doms, JB Hi-Fi Ltd, Evergrande Auto, Wynn Resorts, paragon AG, Sony Corp, The Walt Disney Co, Culp Inc, Honda Motor Co Ltd (Adr), Home Depot Inc and more

By Smartkarma Daily Briefs | Consumer, Daily Briefs

In today’s briefing:

DOMS Industries Pre-IPO Tearsheet
MVIS Australia Equal Weight Index Rebalance Preview: Potential Deletes & Capping Increase Turnover
Evergrande EV Unit Reports Vehicle Deliveries and Narrower Loss
Wynn Resorts: The Strategic Partnership With Preferred Hotels & Resorts Expected To Be A Growth Catalyst? – Major Drivers
paragon – Navigating the road to redemption
Sony Group Corporation: 3 Must-Know Drivers Responsible For Its Growth! – Financial Forecasts
The Walt Disney Company: Radical Changes That Turned Disney Into an Entertainment Powerhouse! – Major Drivers
Culp, Inc – Loss Narrows; 1Q Margins Improve as Top Line Remains Pressured
Honda Motor Co Ltd: Unveiling the 5 Factors That Will Propel Honda’s Momentum in Coming Quarters! – Major Drivers
The Home Depot: Can The Acquisition Of Temco Logistics Be A Game Changer? – Major Drivers

DOMS Industries Pre-IPO Tearsheet

Doms (DOMS IN) is looking to raise around US$140m (estimated) in its upcoming India IPO. The deal will be run by JM Financial, BNP, ICICI Securities and IIFL Securities.
DOMS is a leading player and brand in India’s stationery and art products market. It designs, manufactures, and sells a wide range of products, primarily under its flagship brand ‘DOMS’.
Its core products such as pencils and mathematical instrument boxes had market shares of 29% and 30% by value in FY23, respectively, as per Technopak.

MVIS Australia Equal Weight Index Rebalance Preview: Potential Deletes & Capping Increase Turnover

JB Hi-Fi Ltd (JBH AU) and Charter Hall (CHC AU) could be deleted as the lowest ranked current index constituents.
There are three other stocks that are close to the deletion threshold and a change in the free float could result in the stocks being deleted.
Short interest has been increasing on JB Hi-Fi Ltd (JBH AU), Charter Hall (CHC AU) and Lendlease Group (LLC AU) and could be partially driven by potential index deletions.

Evergrande EV Unit Reports Vehicle Deliveries and Narrower Loss

By Caixin Global

The electric-vehicle unit of defaulted property developer China Evergrande Group reported that in the first half of 2023 it delivered 760 cars and its net loss narrowed by almost half from a year earlier to 6.87 billion yuan ($942 million).
China Evergrande New Energy Vehicle Group Ltd.’s revenue jumped more than fivefold to 155 million yuan, mainly from mass production and delivery of its flagship model, the Hengchi 5, starting last October.
The electric-car company has been plagued by production delays and setbacks since touting its first Hengchi model as early as 2019 and pledging to rival Tesla within three to five years.

Wynn Resorts: The Strategic Partnership With Preferred Hotels & Resorts Expected To Be A Growth Catalyst? – Major Drivers

Wynn Resorts delivered a positive result and managed an all-around beat in the last quarter.
During the quarter, Wynn Las Vegas generated $224.1 million in adjusted property EBITDA on $578.1 million in operating revenue, resulting in an EBITDA margin of 38.8%.
Additionally, Wynn Resorts had strong hotel occupancy and excellent tenant retail sales in July.

paragon – Navigating the road to redemption

By Edison Investment Research

paragon continued its debt reduction programme in Q223 with the disposal of semvox. Operating performance progressed positively with H123 sales rising 7% and EBITDA margin in Q223 exceeding 10%, although the business mix shifted towards Mechanics as new contracts ramped up. Management has maintained FY23 guidance and we have modestly reduced our earnings estimates to reflect the mix change as well as higher interest in FY23. As the debt reduction programme continues into FY24 we expect lower interest charges and improving operational cash flows. Assuming the successful further partial redemption of the Eurobond by January 2024, investor focus should return to the growth potential.

Sony Group Corporation: 3 Must-Know Drivers Responsible For Its Growth! – Financial Forecasts

Sony Group Corporation delivered an all-around beat in the previous quarter.
However, consolidated operating income fell because the Financial Services segment’s operating income fell.
Software sales for the quarter increased mostly due to the launching of the enticing third-party software and increased PS5 penetration.

The Walt Disney Company: Radical Changes That Turned Disney Into an Entertainment Powerhouse! – Major Drivers

The Walt Disney Company delivered mixed results in the quarter, with revenues well below analyst expectations, but managed an earnings beat.
The company made significant management adjustments and productivity enhancements to develop a more economical, coordinated, and streamlined approach to operations.
Disney+ core subscribers increased during the quarter, with foreign growth more than balancing small domestic net losses.

Culp, Inc – Loss Narrows; 1Q Margins Improve as Top Line Remains Pressured

By Water Tower Research

After Wednesday’s close, Culp Inc. reported a 1Q24 EPS loss of $0.27, beating our $0.36 loss estimate and its 1Q23 $0.47 LPS.
Revenues missed expectations and residential demand challenged. The balance sheet remains strong.
The Mattress Fabric (CHF) segment delivered a markedly improved margin, reporting a gross margin of 6.8%, up from negative 0.1% a year ago and better than our estimate of 2.6%.

Honda Motor Co Ltd: Unveiling the 5 Factors That Will Propel Honda’s Momentum in Coming Quarters! – Major Drivers

Honda Motor delivered a mixed result in the recent quarter, with revenues below market expectations, but surpassed the analyst consensus regarding earnings.
Unit sales for Power Products operations fell to 5.645 million units, mostly because of a fall in North America.
The supply conditions for semiconductors gradually improved throughout the quarter, which led to greater unit sales in the United States year over year.

The Home Depot: Can The Acquisition Of Temco Logistics Be A Game Changer? – Major Drivers

The Home Depot delivered a solid result and managed an all-around beat in the last quarter, with sales of $42.9 billion.
Comp sales for the entire firm, as well as for the company’s US locations, fell in the quarter.
The second quarter’s pro sales performance was slightly worse than the DIY customer’s performance.

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Sep 01

Daily Brief South Korea: Kakao Games , Doosan Robotics, Korea Zinc, Celltrion Inc, Boryung Pharmaceutical and more

By Smartkarma Daily Briefs | Daily Briefs, South Korea

In today’s briefing:

End of Mandatory Lock-Up Periods for 49 Companies in Korea in September 2023
Doosan Robotics IPO – Thoughts on Valuation – A Punt at Best, a Crash at Worst
Doosan Robotics IPO: Valuation Insights
Unveiling the Potential of Korea Zinc’s Emerging Proxy Battle
(Mostly) Asia M&A, Aug 2023: Celltrion Inc/Healthcare, Itochu Techno, UMW, Boustead, SK Rent
Boryung Pharmaceutical (003850 KS): 2Q23 Marks Six Consecutive Quarters of Revenue Growth

End of Mandatory Lock-Up Periods for 49 Companies in Korea in September 2023

By Douglas Kim

We discuss the end of the mandatory lock-up periods for 49 stocks in Korea in September 2023, among which 7 are in KOSPI and 42 are in KOSDAQ.
These 49 stocks on average could be subject to further selling pressures in September and could underperform relative to the market.
Among these 49 stocks, top five market cap stocks include Kakao Games (293490 KS), SK Oceanplant (100090 KS), Korea Zinc (010130 KS), Fadu (440110 KS), and Vaxcell-Bio Therapeutics (323990 KS).

Doosan Robotics IPO – Thoughts on Valuation – A Punt at Best, a Crash at Worst

Doosan Robotics (DOOSANROBO KS) is looking to raise up to US$314m in its Korean IPO.
Doosan Robotics (DR) manufactures and sells collaborative robots (Cobots). The firm’s product portfolio primarily includes different series of robot arms as well as its coffee module.
In our previous notes, we looked at the company’s past performance and undertook a peer comparison. In this note, we talk about valuation.

Doosan Robotics IPO: Valuation Insights

By Arun George

Doosan Robotics (454910 KS) is a global industrial and collaborative robotics leader. It has opened the books on an up to US$318 million IPO.
We previously discussed the IPO in Doosan Robotics IPO: The Bull Case and Doosan Robotics IPO: The Bear Case.
In this note, we look at the syndicate’s valuation methodology. Our valuation analysis suggests that the IPO price range is unattractive, and we would pass on the IPO.

Unveiling the Potential of Korea Zinc’s Emerging Proxy Battle

By Sanghyun Park

Korea’s local market is perceiving the present HMG investment as a crucial indicator, signaling the initiation of an intense proxy battle for Korea Zinc.
Given the relatively constrained nature of the neutral minority stakes, falling below 30%, there is considerable attention on the potential for a immediate-term share buying race.
This is expected to trigger momentum trading flows directed at Korea Zinc. Such a scenario might lead the stock price to venture into an overshooting zone.

(Mostly) Asia M&A, Aug 2023: Celltrion Inc/Healthcare, Itochu Techno, UMW, Boustead, SK Rent

By David Blennerhassett

For the month of August 2023, 11 new deals (firm and non-binding) were discussed on Smartkarma with an overall announced deal size of ~US$29bn.
The average premium for the new deals announced (or first discussed) in August was 25%. The average YTD is 34%.
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.

Boryung Pharmaceutical (003850 KS): 2Q23 Marks Six Consecutive Quarters of Revenue Growth

By Tina Banerjee

Boryung Pharmaceutical (003850 KS) reported strong 2Q23 result, with revenue increasing 19% YoY to a record high of KRW216 billion, driven by 24% YoY growth in prescription drugs.
H1 2023 revenue and net profit progressed 52% and 62% of the annual target, respectively, marking the fastest semi-annual lap ever to annual target.
Boryung has reiterated guidance for 2023 revenue and operating profit of KRW810 billion and KRW61 billion, representing growth of 12% and 1%, YoY, respectively.

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Sep 01

Daily Brief Australia: Abacus Group, JB Hi-Fi Ltd and more

By Smartkarma Daily Briefs | Australia, Daily Briefs

In today’s briefing:

MVIS Australia A-REITs Index Rebalance Preview: Abacus Group Could Be Deleted
MVIS Australia Equal Weight Index Rebalance Preview: Potential Deletes & Capping Increase Turnover

MVIS Australia A-REITs Index Rebalance Preview: Abacus Group Could Be Deleted

The review period for the September rebalance ended yesterday. There could be one deletion from the index and a bunch of capping changes.
The index changes will lead to a one-way turnover of 3.4% resulting in a one-way trade of A$21m. There are two stocks with over A$5m to trade.
Short interest has increased on a few REITs recently while decreasing on most of the other names.

MVIS Australia Equal Weight Index Rebalance Preview: Potential Deletes & Capping Increase Turnover

JB Hi-Fi Ltd (JBH AU) and Charter Hall (CHC AU) could be deleted as the lowest ranked current index constituents.
There are three other stocks that are close to the deletion threshold and a change in the free float could result in the stocks being deleted.
Short interest has been increasing on JB Hi-Fi Ltd (JBH AU), Charter Hall (CHC AU) and Lendlease Group (LLC AU) and could be partially driven by potential index deletions.

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Sep 01

Daily Brief Indonesia: Bank Rakyat Indonesia and more

By Smartkarma Daily Briefs | Daily Briefs, Indonesia

In today’s briefing:

Bank Rakyat Indonesia (BBRI IJ) – Steering Towards Higher Returns

Bank Rakyat Indonesia (BBRI IJ) – Steering Towards Higher Returns

By Angus Mackintosh

Bank Rakyat Indonesia (BBRI IJ) continues to be the key and unique proxy for micro and ultra-micro lending in Indonesia, with 1H2023 reflecting its increasingly strategic positioning in the space.
Microloans now account for 48% of loans and of this higher-yielding Kupedes microloans make up an increasingly larger portion, as it diversifies its KUR exposure.
The bank is set to see improving returns in 2H2023, with loan growth expected to pick-up and NIMs should also improve. 2.6x PBV with an ROE of 20.0% is attractive.

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Sep 01

Daily Brief India: Doms, Elecon Engineering, Five Star Business Finance, Epack Durable and more

By Smartkarma Daily Briefs | Daily Briefs, India

In today’s briefing:

DOMS Industries Pre-IPO Tearsheet
Elecon Engineering Co. Ltd- Forensic Analysis
Five Star Placement – Well Flagged but Have a Lot More Stock to Get Through
Epack Durable Pre-IPO Tearsheet

DOMS Industries Pre-IPO Tearsheet

Doms (DOMS IN) is looking to raise around US$140m (estimated) in its upcoming India IPO. The deal will be run by JM Financial, BNP, ICICI Securities and IIFL Securities.
DOMS is a leading player and brand in India’s stationery and art products market. It designs, manufactures, and sells a wide range of products, primarily under its flagship brand ‘DOMS’.
Its core products such as pencils and mathematical instrument boxes had market shares of 29% and 30% by value in FY23, respectively, as per Technopak.

Elecon Engineering Co. Ltd- Forensic Analysis

By Nitin Mangal

Elecon Engineering (ELCN IN) (EECL) is one of the renowned manufacturers of Gears, often used in Industrials.
The company has gathered operational momentum in the last few years, coupled with debt reduction.
However, its balance sheet still has some concerns that are important. This relates to unaudited subsidiary, fixed asset disposals, write offs and ECL policy and large RPTs.

Five Star Placement – Well Flagged but Have a Lot More Stock to Get Through

Three PE investors are looking to raise up to US$158m via selling 5.9% of Five Star Business Finance (FIVESTAR IN) (FSB).
Five-Star Business is a non-banking financial company that provides secured business loans to micro-entrepreneurs and self-employed individuals. FSB had raised around US$190m in its India IPO in Nov 2022.
In this note, we will talk about the deal dynamics and updates since our last note.

Epack Durable Pre-IPO Tearsheet

Epack Durable (1936389D IN) is looking to raise up to US$100m in its upcoming India IPO. The deal will be run by Axis Capital, DAM Capital and ICICI Securities.
Epack Durable (ED) is the fastest Indian growing room air conditioner original design manufacturer (ODM) based on growth in volume manufactured between FY20-23 (Year ended 31st Mar), according to F&S.
Further, it is the second largest ODM manufacturer in the Indian room air conditioner manufacturing market, with 29% market share in terms of volume manufactured in FY23, as per F&S.

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Sep 01

Daily Brief Singapore: Neurowyzr, Beep Technologies and more

By Smartkarma Daily Briefs | Daily Briefs, Singapore

In today’s briefing:

Peak XV, Jungle Ventures Invest $2.1m in SG Brain Healthtech Firm
Beep Launches SEA’s Largest ERoaming Network with Its Seed Funding Round

Peak XV, Jungle Ventures Invest $2.1m in SG Brain Healthtech Firm

By Tech in Asia

“The brain is a complex organ, and also the least understood,” Pang Sze Yunn, co-founder and CEO of Singapore-based healthtech platform Neurowyzr, told Tech in Asia.

According to Pang, early brain decline can take between 20 and 40 years before obvious conditions such as dementia, mental health diseases, or stroke occur.

“By then, therapies have little impact,” she added. “Traditional brain tests are inefficient, expensive and inaccessible.”

Beep Launches SEA’s Largest ERoaming Network with Its Seed Funding Round

By e27

Singapore-based IoT transaction platform, Beep, has announced the launch of what it claims to be Southeast Asia’s largest electric vehicle roaming (eRoaming) network.
Hyundai Motor Group Innovation Centre in Singapore (HMGICS), Tribecar, EVFY, Singapore Electric Vehicles, and Quantum Mobility are among the initial entities to use the network.
Beep also announced the successful completion of its seed funding round, led by GGV Capital and Wing Vasiksiri.

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✓ Company Data and News
✓ Events & Webinars

Sep 01

Daily Brief China: China Jinmao Holdings, Huawei Technology, Alibaba (ADR), Evergrande Auto, Xiaomi Corp, BrainAurora Medical Technology, Agile Property Holdings and more

By Smartkarma Daily Briefs | China, Daily Briefs

In today’s briefing:

China Jinmao – Earnings Flash – H1 FY 2023 Results – Lucror Analytics
Huawei Quietly Debuts Flagship Smartphone in Effort to Ride Sales Wave
Alibaba Group Holding Limited: Making Huge Strides In AI Which Could Prove A Growth Catalyst! – Key Drivers
Evergrande EV Unit Reports Vehicle Deliveries and Narrower Loss
[Xiaomi(1810 HK, SELL, TP HK$8.2) Update]: Huawei’s Impact on Xiaomi Will Be Meaningful in 2024
Pre-IPO BrainAurora Medical Technology – The Outlook Is Highly Uncertain
Morning Views Asia: Country Garden Holdings Co

China Jinmao – Earnings Flash – H1 FY 2023 Results – Lucror Analytics

By Leonard Law, CFA

Huawei Quietly Debuts Flagship Smartphone in Effort to Ride Sales Wave

By Caixin Global

Huawei Technologies Co. Ltd. launched a new flagship smartphone on Tuesday, in a discreet fashion and ahead of schedule, said to be powered by a self-developed chip that can rival the speed of 5G handsets, as the tech giant tries to shrug off the impact of U.S. sanctions and capitalize on robust quarterly sales growth in China.
The company began offering the Mate 60 Pro at 6,999 yuan ($962) in its stores and online around noon, without prior advertisement other than an open letter that cited the early launch as a celebration of its Mate series reaching 100 million units in cumulative shipments.
The company gave no detail about what kind of system-on-a-chip (SoC) the smartphone uses and whether the handset is compatible with 5G wireless networks.

Alibaba Group Holding Limited: Making Huge Strides In AI Which Could Prove A Growth Catalyst! – Key Drivers