Category

Daily Briefs

Aug 30
0

Daily Brief United States: VNG (VinaGame), First Trust Dj Internet Ind and more

By | Daily Briefs, United States

In today’s briefing:

  • VNG Pre-IPO – The Positives – Vietnam’s Mini-Tencent
  • VNG Pre-IPO – The Negatives – Vietnam’s Mini-Tencent
  • Oversold Bounce Underway Amid Consolidation Phase; Buys in IT Consulting, Uranium, Technology

VNG Pre-IPO – The Positives – Vietnam’s Mini-Tencent

By Sumeet Singh

  • Vng (VNG US), Vietnam’s leading internet platform, aims to raise up to US$300m in its US IPO.
  • VNG is Vietnam’s leading homegrown digital ecosystem, as per the company, with diverse product offerings across games, communications and media, fintech and other opportunities
  • In this note, we talk about the positive aspects of the deal.

VNG Pre-IPO – The Negatives – Vietnam’s Mini-Tencent

By Sumeet Singh

  • VNG (VinaGame) (VNG US), Vietnam’s leading internet platform, aims to raise up to US$300m in its US IPO.
  • VNG is Vietnam’s leading homegrown digital ecosystem, as per the company, with diverse product offerings across games, communications and media, fintech and other opportunities
  • In this note, we talk about the not-so-positive aspects of the deal.

Oversold Bounce Underway Amid Consolidation Phase; Buys in IT Consulting, Uranium, Technology

By Joe Jasper

  • Last week (8/22/23) we discussed our expectations for an oversold bounce due to an overwhelming number of indexes/Sectors/industries testing multi-month supports, combined with Treasury yields and the DXY testing resistance.
  • The bounce has begun with the SPP ending higher last week for the first time in a month, and it is possible we have seen the lows for this pause/pullback.
  • A meaningful correction cannot happen if the SPX is above 4300-4325, but we would not be surprised to see another month or more of consolidation between 4300 and 4600.

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Aug 30
0

Daily Brief Japan: Core Concept Technologies Inc, Oriental Land and more

By | Daily Briefs, Japan

In today’s briefing:

  • Core Concept Technologies (4371 JP) – A BIGLY 2ndary Offering (Re-IPO), and Eventual TOPIX Inclusion
  • Oriental Land: Google Searches For Tokyo Disneyland Dips Double Digits in July & August 2023

Core Concept Technologies (4371 JP) – A BIGLY 2ndary Offering (Re-IPO), and Eventual TOPIX Inclusion

By Travis Lundy

  • Last week I wrote about another situation, noting Equity Offering Into TOPIX Inclusion is a standard construct. Here we have another. 
  • DX and HR Support company Core Concept Technologies Inc (4371 JP) today announced a large (it ups Real World Float by 64%, and is 33 days of ADV) secondary offering.
  • The “reason” for the offering mentions a desire to move to TSE Prime in future.

Oriental Land: Google Searches For Tokyo Disneyland Dips Double Digits in July & August 2023

By Oshadhi Kumarasiri

  • During the initial months of 2QFY24, both Tokyo Disneyland and Tokyo DisneySea experienced a significant double-digit QoQ drop in Google search interest.
  • Using Google Search trends data for the first two months of 2QFY24, we anticipate a QoQ decline of about 17% in Oriental Land’s Theme Parks revenue, dropping below ¥100bn.
  • 2QFY24 consensus OP is 2.5x above the company’s guidance, and both short and medium term consensus revenue and OP targets for Oriental Land (4661 JP) appear blatantly unachievable.

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Aug 30
0

Daily Brief India: Power Finance and more

By | Daily Briefs, India

In today’s briefing:

  • AMFI Stock Reclassification Preview (Dec 2023): Overlap Between Active & Passive Flows

AMFI Stock Reclassification Preview (Dec 2023): Overlap Between Active & Passive Flows

By Brian Freitas

  • We see 8 stocks moving from MidCap to LargeCap, 8 stocks moving from LargeCap to MidCap, 13 stocks from SmallCap to MidCap, and 13 stocks from MidCap to SmallCap.
  • The expected migrations from SmallCap to MidCap have outperformed the other potential migrations with all stocks moving higher over the last six month.
  • Active managers could continue to realign their portfolios. Some of the upward migrations will have passive flows in the next few days and over the next few months.

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Aug 30
0

Daily Brief ESG: Schoeller Allibert – ESG Report – Lucror Analytics and more

By | Daily Briefs, ESG

In today’s briefing:

  • Schoeller Allibert – ESG Report – Lucror Analytics

Schoeller Allibert – 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 Schoeller Allibert’s ESG as “Adequate”, in line with its Environmental, Social and Governance scores. Controversies are “Immaterial” and Disclosure is “Adequate”.
  • Schoeller Allibert is a leading manufacturer of returnable transit packaging (RTP) products in Europe.

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Aug 30
0

Daily Brief Private Markets: Singapore’s Rent-To-Own Solar Startup Solar AI Bags US$1.5M Seed Financing and more

By | Daily Briefs, Private Markets

In today’s briefing:

  • Singapore’s Rent-To-Own Solar Startup Solar AI Bags US$1.5M Seed Financing
  • Malaysian Startup Secures Antler Funding to Address Networking Pain Points

Singapore’s Rent-To-Own Solar Startup Solar AI Bags US$1.5M Seed Financing

By e27

  • Singapore-based solar-as-a-service startup Solar AI Technologies has secured US$1.5 million in a seed funding round led by Earth Venture Capital with participation from Undivided Ventures, Investible, and climate-tech angel investor David Pardo.
  • The funds will primarily be used to upscale its rent-to-own (RTO) solar programme in the island nation before embarking on regional expansion in the next 12 months.
  • Started in 2020 by Chew (CEO), Gérald Chablowski (CTO), and Luke Ong, Solar AI seeks to make rooftop solar accessible and hassle-free for smaller, underserved property owners by providing them with zero upfront cost.

Malaysian Startup Secures Antler Funding to Address Networking Pain Points

By Tech in Asia

  • The business world has long been a push and pull between extroverts and introverts. Nowhere is that more apparent than in networking sessions.
  • This has led Mole, a Malaysian startup building an all-in-one networking platform, to organize an event series dubbed “I Hate Networking.”
  • “We understand that networking can be uncomfortable for anyone, and especially for those who are introverted,” said co-founder and COO Melly Ling. “Mole’s vision is to create a world where professionals network for real connections that go beyond business transactions.”

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Aug 30
0

Daily Brief Technical Analysis: Oversold Bounce Underway Amid Consolidation Phase; Buys in IT Consulting and more

By | Daily Briefs, Technical Analysis

In today’s briefing:

  • Oversold Bounce Underway Amid Consolidation Phase; Buys in IT Consulting, Uranium, Technology

Oversold Bounce Underway Amid Consolidation Phase; Buys in IT Consulting, Uranium, Technology

By Joe Jasper

  • Last week (8/22/23) we discussed our expectations for an oversold bounce due to an overwhelming number of indexes/Sectors/industries testing multi-month supports, combined with Treasury yields and the DXY testing resistance.
  • The bounce has begun with the SPP ending higher last week for the first time in a month, and it is possible we have seen the lows for this pause/pullback.
  • A meaningful correction cannot happen if the SPX is above 4300-4325, but we would not be surprised to see another month or more of consolidation between 4300 and 4600.

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Aug 30
0

Daily Brief ECM: VNG Pre-IPO – The Positives – Vietnam’s Mini-Tencent and more

By | Daily Briefs, ECM

In today’s briefing:

  • VNG Pre-IPO – The Positives – Vietnam’s Mini-Tencent
  • Doosan Robotics IPO: The Bull Case
  • ARM Holdings IPO: Valuation Insights
  • VNG Pre-IPO – The Negatives – Vietnam’s Mini-Tencent
  • Chongqing Hongjiu Fruit Lockup Expiry – Price Has Come Back Down to Earth but Expect More Selling
  • Doosan Robotics IPO – Peer Comparison – Has Niche Offerings but Doesn’t Lack Competition
  • Chenqi Technology Limited Pre-IPO Tearsheet

VNG Pre-IPO – The Positives – Vietnam’s Mini-Tencent

By Sumeet Singh

  • Vng (VNG US), Vietnam’s leading internet platform, aims to raise up to US$300m in its US IPO.
  • VNG is Vietnam’s leading homegrown digital ecosystem, as per the company, with diverse product offerings across games, communications and media, fintech and other opportunities
  • In this note, we talk about the positive aspects of the deal.

Doosan Robotics IPO: The Bull Case

By Arun George

  • Doosan Robotics (DOOSANROBO KS) is a global industrial and collaborative robotics leader. It has opened the books on an up to US$318 million IPO.   
  • The international bookbuilding will run from 28 August to 15 September, while the domestic book will be open from 11 to 15 September. Pricing will be announced on 19 September.
  • The bull case rests on the market share gains, rapid forecasted growth, the industry’s largest product lineup, rapid expansion in sales channels and key accounts growth.

ARM Holdings IPO: Valuation Insights

By Arun George

VNG Pre-IPO – The Negatives – Vietnam’s Mini-Tencent

By Sumeet Singh

  • VNG (VinaGame) (VNG US), Vietnam’s leading internet platform, aims to raise up to US$300m in its US IPO.
  • VNG is Vietnam’s leading homegrown digital ecosystem, as per the company, with diverse product offerings across games, communications and media, fintech and other opportunities
  • In this note, we talk about the not-so-positive aspects of the deal.

Chongqing Hongjiu Fruit Lockup Expiry – Price Has Come Back Down to Earth but Expect More Selling

By Ethan Aw

  • Chongqing Hongjiu Fruit (6689 HK) was listed on 5th Sep 2022, where it raised around US$71m in its Hong Kong IPO. Its one-year lockup will expire on 4th Sep 2023. 
  • Chongqing Hongjiu Fruit (CHJF) is a multi-brand fresh fruit distributor in China with an end-to-end supply chain. As per CIC, it was the largest fruit distributor by revenue in 2022. 
  • In this note, we will talk about the lock-up dynamics and updates since our last note.

Doosan Robotics IPO – Peer Comparison – Has Niche Offerings but Doesn’t Lack Competition

By Ethan Aw

  • 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 talked about the company’s past performance. In this note, we undertake a peer comparison.

Chenqi Technology Limited Pre-IPO Tearsheet

By Clarence Chu

  • Chenqi Technology Limited (CT HK) is looking to raise US$300m in its upcoming Hong Kong IPO.
  • Chenqi Technology (Chenqi) is a mobility technology and service company in China.
  • Founded by the GAC Group and Tencent, its key offerings include (i) mobility services, (ii) technology services, and (iii) ecosystem services.

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Aug 30
0

Daily Brief Thematic (Sector/Industry): Ohayo Japan|Equity Rally Continues; Tech Surges; JAPAN X: Fast Retailing Sets Its Sights on India and more

By | Daily Briefs, Thematic (Sector/Industry)

In today’s briefing:

  • Ohayo Japan|Equity Rally Continues; Tech Surges; JAPAN X: Fast Retailing Sets Its Sights on India
  • What Will BRICS Bring to the World? – The Rise of The Rest
  • Weekly Sustainable Investing Surveyor – Week Ended August 25, 2023

Ohayo Japan|Equity Rally Continues; Tech Surges; JAPAN X: Fast Retailing Sets Its Sights on India

By Mark Chadwick

  • OVERSEAS: Equity Rally Continues SPX +1.5% with all Sectors Up; Tech Surges ->NDX100 +2.2%;  China Banks Cuts Mortgage rates to shore up economy;  BitCoin lease on life w/US Court Ruling
  • JAPAN: NKY Futures +0.7% v Cash; USDJPY 145.9; Yen’s buying power at 53 year low; Japan’s jobless rate ticks up-risk for higher wages; SDF Head says Military Capabilities Inadequate
  • JAPAN X: Fast Retailing Aims to Dominate India with Manufacturing Expansion. With more locally manufactured products, Fasty will be better able to grow share in India.

What Will BRICS Bring to the World? – The Rise of The Rest

By Xinyao (Criss) Wang

  • BRICS announced expansion of members. The intention behind is obvious – Based on successful westward integration, the future pattern and trends of the entire world would already be clear.
  • Setting up BRICS currency immediately seems “too hasty”. However, as de-dollarization is a consensus, a suitable payment system would be established sooner or later given the economy size/resources of BRICS.
  • The international order is about to undergo a radical change, and the trend of multipolarity will continue to accelerate. This would put more investment options on the table for investors.

Weekly Sustainable Investing Surveyor – Week Ended August 25, 2023

By Water Tower Research

  • RROYF provides a non-dilutive royalty financing solution (through a combination of short-term loans and the acquisition of revenue-based royalties) to privately held and publicly traded renewable energy and clean energy technology companies.
  • RROYF’s objective is to acquire a portfolio of long-term, stable, diversified renewable energy royalty and income streams to provide shareholders with capital appreciation and a growing, sustainable, long-term cash distribution.
  • RROYF is a pioneer and the first publicly traded company to provide this royalty financing for the renewable energy and clean technology sector.

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Aug 30
0

Daily Brief Event-Driven: Prosus/Naspers – The ουροβóρος Is Dead! Long Live The Ouroboros! and more

By | Daily Briefs, Event-Driven

In today’s briefing:

  • Prosus/Naspers – The ουροβóρος Is Dead! Long Live The Ouroboros!
  • Final Hang Seng Index Flows for 1 Sep Rebal (AAC, EastBuy, BABA, Sinopharm, Trip.com)
  • HSI, HSCEI, HSTECH: Rebalance Flows Post Capping (Sep 2023)
  • Korea’s First Sector Inverse ETF: Discussing Flow Trading Impacts
  • Energy One: Busby Baulks At STG’s Offer
  • Shougang Fushan Resources (639 HK): Partial Offer Is Unconditional
  • Core Concept Technologies (4371 JP) – A BIGLY 2ndary Offering (Re-IPO), and Eventual TOPIX Inclusion
  • Zeus Co: Listing of JET Co Japanese Subsidiary and NAV Valuation
  • Zeus Co (079370 KS): Is J.E.T.’s Spin-Off Priced In?
  • AMFI Stock Reclassification Preview (Dec 2023): Overlap Between Active & Passive Flows

Prosus/Naspers – The ουροβóρος Is Dead! Long Live The Ouroboros!

By Travis Lundy

  • Shareholders of Prosus NV (PRX NA) and Naspers (NPN SJ) approved AGM agenda items late last week to enable the two Capitalisation Issues and Naspers’ Share Consolidation to move forward.
  • What Will Happen: Prosus will issue new N shares to its shareholders and Naspers will reject them. Naspers will issue new shares to its shareholders, and Prosus will reject them.
  • Naspers will own ~42.9% of Prosus, Prosus will own 0.02% of Naspers. Sales of Tencent shares will continue. Share Buybacks too. But the ouroboros will have spit out its tail. 

Final Hang Seng Index Flows for 1 Sep Rebal (AAC, EastBuy, BABA, Sinopharm, Trip.com)

By Travis Lundy

  • The Hang Seng announces changes along with prospective flows 2wks before the actual change. Capping flows are calculated off the close three days before implementation. That was today.
  • There have been some minor movements in the rankings. Nothing major. There is still just over US$1bn to trade, one-way.
  • Enclosed are totals for each of the three major indices (Hang Seng, HSCEI, and HS Tech) and then netted flows. The biggest is US$470mm of BABA to sell. Spreadsheet attached.

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

By Brian Freitas

Korea’s First Sector Inverse ETF: Discussing Flow Trading Impacts

By Sanghyun Park

  • KB Asset Management has announced the release of an inverse ETF, containing the top 10 core stocks in the secondary battery sector.
  • Given the substantial fluctuations in SSF trading volume in Korea, the flow increase of this ETF might temporarily lead to an unusually high level of backwardation.
  • Also, we may observe a phenomenon known as ‘wag-the-dog’ as the flow of this inverse ETF could act as a triggering factor for a temporary spark.

Energy One: Busby Baulks At STG’s Offer

By David Blennerhassett

  • Yesterday (28 August) software provider Energy One Ltd (EOL AU)  announced an indicative Offer, by way of a Scheme, from STG at A$5.85/share, a solid 44% premium to last close. 
  • Energy One has granted STG due diligence on an exclusive basis and the board is supportive if terms are firmed. All looks good. However …
  • … Vaughan Busby, a NED and founding CEO of Energy One, is not aligned with the board. And he holds ~14%. 

Shougang Fushan Resources (639 HK): Partial Offer Is Unconditional

By Arun George

  • Shougang Fushan Resources (639 HK) shareholders approved the partial offer to acquire a maximum of 125.0 million shares (2.47% of outstanding shares) at HK$2.40 per share and the whitewash waiver.
  • The partial offer is now unconditional and will close on 12 September. Considering the irrevocables not to tender, a 100% minority participation rate implies a minimum proration of 2.98%.
  • If the partial offer’s acceptance rate mirrors today’s general meeting minorities participation rate of 63.6%, it would imply a minimum proration of 4.69%. 

Core Concept Technologies (4371 JP) – A BIGLY 2ndary Offering (Re-IPO), and Eventual TOPIX Inclusion

By Travis Lundy

  • Last week I wrote about another situation, noting Equity Offering Into TOPIX Inclusion is a standard construct. Here we have another. 
  • DX and HR Support company Core Concept Technologies Inc (4371 JP) today announced a large (it ups Real World Float by 64%, and is 33 days of ADV) secondary offering.
  • The “reason” for the offering mentions a desire to move to TSE Prime in future.

Zeus Co: Listing of JET Co Japanese Subsidiary and NAV Valuation

By Douglas Kim

  • Our NAV valuation of Zeus Co suggests an implied price target of 32,991 won, which is 13% lower than current share price. 
  • Given the lack of upside, we would avoid Zeus shares at current prices.
  • Currently, JET Co is listed on Tokyo PRO Market Exchange. JET Co is expected to switch its listing to the Tokyo Standard Market Exchange. 

Zeus Co (079370 KS): Is J.E.T.’s Spin-Off Priced In?

By David Blennerhassett

  • Zeus Co Ltd (079370 KS), a maker of semiconductor equipment, flat panel display equipment, and facility automation solutions, intends to spin off 95%-held J.E.T. Co (6228 JP) next month.
  • J.E.T., a  semiconductor etching equipment play, will list on the 25 September. Pricing is expected around the 5 September. 
  • Zeus’ share price has fallen 33% in the past month. That may be justified. 

AMFI Stock Reclassification Preview (Dec 2023): Overlap Between Active & Passive Flows

By Brian Freitas

  • We see 8 stocks moving from MidCap to LargeCap, 8 stocks moving from LargeCap to MidCap, 13 stocks from SmallCap to MidCap, and 13 stocks from MidCap to SmallCap.
  • The expected migrations from SmallCap to MidCap have outperformed the other potential migrations with all stocks moving higher over the last six month.
  • Active managers could continue to realign their portfolios. Some of the upward migrations will have passive flows in the next few days and over the next few months.

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Aug 30
0

Daily Brief Credit: Morning Views Asia: First Pacific Co and more

By | Credit, Daily Briefs

In today’s briefing:

  • Morning Views Asia: First Pacific Co, Xiaomi Corp, Yankuang Energy Group

Morning Views Asia: First Pacific Co, Xiaomi Corp, Yankuang Energy Group

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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