Daily Briefs

After the Blackmores Ltd (BKL AU) Scheme Meeting result was announced earlier today, post-close the S&P/ASX team announced Ventia (VNT AU) would replace it on 21 July at the close.
This is not that surprising. Janaghan Jeyakumar, CFA expected it in June, and it was a super-close second recently for him for the Sep rebalance.
Given the shareholder structure and flow dynamics, it’s worth taking a closer look.

Initial Thoughts on the SK Ecoplant IPO – Impact on SK Inc

By Douglas Kim

SK Ecoplant is getting ready to complete its IPO sometime in late 2023/1H 2024.
Local media have mentioned that SK Ecoplant’s market cap could range from 5 trillion won to 10 trillion won.
At the end of 2022, SK Inc’s 44.5% stake in SK Ecoplant had a book value of 545 billion won, which is much less the market value of SK Ecoplant.

Zhuzhou CRRC Times Electric (3898): Growth at a Discounted Valuation

By Henry Soediarko

The company has shifted its growth driver from rail equipment to EV parts supplier.
Q1 23 growth came from emerging equipment coming to the rescue at a double digit rate when the train equipment segment recorded a slight decrease.
Compared to last year, the company is trading at a lower valuation, yet its key growth driver has a better and more sustainable quality.

DXY Break Below $101 Suggests Breakouts Likely Coming for Equal-Weight SPX, Dow, and Russell 2000

By Joe Jasper

Ever since our 5/30/23 ETF Pathfinder, our view has been that we cannot be bearish unless a key support level breaks (at the time, that was 4050 on the SPX).
The S&P 500 is now above 4300-4325 — a level that, in January this year, we had anticipated would cap upside for 2023.
We believe 4300-4325 will act as major support moving forward, and we are bullish as long as the SPX is above 4300; we discussed this in our 7/3/23 ETF Pathfinder.

Investigating HMM’s Latest Bond Conversion Situation for a Shorting Setup

By Sanghyun Park

Those that the local market is particularly interested in are the 192nd convertible bonds (CB) held by KDB, along with the 193rd bonds with warrants (BW) owned by KOBC.
These two bonds’ call option exercise date is September 25th. Upon conversion of these bonds, 200M new shares will be issued (41% of SO and a 30% dilution).
The key is the trade-off between not disrupting the selling process and avoiding any breach of trust. The prevailing local sentiment suggests that KDB and KOBC will choose stock conversion.

NodeFlair Gets US$2M in Series A Funding to Further Expand, Accelerate Product Development

By e27

NodeFlair, a Singapore-based career advancement platform for tech talents, announced today that it has raised US$2 million Series A funding.
The funding round was led by Iterative with participation from 500 Global and PERSOL VENTURE PARTNERS, the corporate venture capital arm of HR management group PERSOL.
Prominent angel investors Quek Siu Rui (CEO & Co-founder of Carousell), JJ Chai (CEO & Co-founder of Rainforest), and Siew Kum Hong (Former COO of AirBnB China) also participated in the funding round.

💡 Before it’s here, it’s on Smartkarma

The Smartkarma Preview Pass is your entry to the Independent Investment Research Network

✓ Unlimited Research Summaries
✓ Personalised Alerts
✓ Custom Watchlists
✓ Company Data and News
✓ Events & Webinars

Jul 19

Daily Brief TMT/Internet: Data#3 Ltd, Mobvoi and more

By Smartkarma Daily Briefs | Daily Briefs, TMT/Internet

In today’s briefing:

S&P/ASX200 Ad Hoc Index Rebalance & Update to Potential Changes in September
Mobvoi Pre-IPO – Has Turned Profitable but Bulk of Growth Came from a Single Customer

S&P/ASX200 Ad Hoc Index Rebalance & Update to Potential Changes in September

Ventia (VNT AU) will replace Blackmores Ltd (BKL AU) in the S&P/ASX 200 (AS51 INDEX) at the close on 21 July.
The ad hoc change will lead to changes in the list of potential adds and deletes at the regular scheduled rebalance in September.
Weebit Nano Ltd (WBT AU) is now a potential add in September and could see some pre-positioning in the near future.

Mobvoi Pre-IPO – Has Turned Profitable but Bulk of Growth Came from a Single Customer

By Ethan Aw

Mobvoi (2185047D CH) is looking to raise about US$200m in its upcoming Hong Kong IPO.
Mobvoi is an AI company focusing on generative AI and voice interaction technologies. As per CIC, the firm is the largest revenue-generating AI company focusing on AI-generated content in 2022.
Mobvoi’s revenue growth was primarily driven by its AI enterprise solutions segment, which led to gross margin expansion and profitability turning positive on all fronts in FY22.

💡 Before it’s here, it’s on Smartkarma

The Smartkarma Preview Pass is your entry to the Independent Investment Research Network

✓ Unlimited Research Summaries
✓ Personalised Alerts
✓ Custom Watchlists
✓ Company Data and News
✓ Events & Webinars

Jul 19

Daily Brief Industrials: Shenzhen International, Ventia, SK Ecoplant, Zhuzhou CRRC Times Electric Co., Ltd., Dollar Index, HMM Co., Ltd., NodeFlair and more

By Smartkarma Daily Briefs | Daily Briefs, Industrials

In today’s briefing:

StubWorld: SZ International’s Logistics Spin-Offs
Ventia Services (VNT) Selected to Join ASX 200 – Not A Surprise
Initial Thoughts on the SK Ecoplant IPO – Impact on SK Inc
Zhuzhou CRRC Times Electric (3898): Growth at a Discounted Valuation
DXY Break Below $101 Suggests Breakouts Likely Coming for Equal-Weight SPX, Dow, and Russell 2000
Investigating HMM’s Latest Bond Conversion Situation for a Shorting Setup
NodeFlair Gets US$2M in Series A Funding to Further Expand, Accelerate Product Development

StubWorld: SZ International’s Logistics Spin-Offs

By David Blennerhassett

Shenzhen International (152 HK) seeks to spin off logistic assets on a PRC exchange; and 51.56%-held Shenzhen Expressway Co H (548 HK) intends to place out A shares.
Preceding my comments on SZ Int’l/SZ E’Way are the current setup/unwind tables for Asia-Pacific Holdcos.
These relationships trade with a minimum liquidity of US$1mn, and a % market capitalisation >20%.

Ventia Services (VNT) Selected to Join ASX 200 – Not A Surprise

After the Blackmores Ltd (BKL AU) Scheme Meeting result was announced earlier today, post-close the S&P/ASX team announced Ventia (VNT AU) would replace it on 21 July at the close.
This is not that surprising. Janaghan Jeyakumar, CFA expected it in June, and it was a super-close second recently for him for the Sep rebalance.
Given the shareholder structure and flow dynamics, it’s worth taking a closer look.

Initial Thoughts on the SK Ecoplant IPO – Impact on SK Inc

By Douglas Kim

SK Ecoplant is getting ready to complete its IPO sometime in late 2023/1H 2024.
Local media have mentioned that SK Ecoplant’s market cap could range from 5 trillion won to 10 trillion won.
At the end of 2022, SK Inc’s 44.5% stake in SK Ecoplant had a book value of 545 billion won, which is much less the market value of SK Ecoplant.

Zhuzhou CRRC Times Electric (3898): Growth at a Discounted Valuation

By Henry Soediarko

The company has shifted its growth driver from rail equipment to EV parts supplier.
Q1 23 growth came from emerging equipment coming to the rescue at a double digit rate when the train equipment segment recorded a slight decrease.
Compared to last year, the company is trading at a lower valuation, yet its key growth driver has a better and more sustainable quality.

DXY Break Below $101 Suggests Breakouts Likely Coming for Equal-Weight SPX, Dow, and Russell 2000

By Joe Jasper

Ever since our 5/30/23 ETF Pathfinder, our view has been that we cannot be bearish unless a key support level breaks (at the time, that was 4050 on the SPX).
The S&P 500 is now above 4300-4325 — a level that, in January this year, we had anticipated would cap upside for 2023.
We believe 4300-4325 will act as major support moving forward, and we are bullish as long as the SPX is above 4300; we discussed this in our 7/3/23 ETF Pathfinder.

Investigating HMM’s Latest Bond Conversion Situation for a Shorting Setup

By Sanghyun Park

Those that the local market is particularly interested in are the 192nd convertible bonds (CB) held by KDB, along with the 193rd bonds with warrants (BW) owned by KOBC.
These two bonds’ call option exercise date is September 25th. Upon conversion of these bonds, 200M new shares will be issued (41% of SO and a 30% dilution).
The key is the trade-off between not disrupting the selling process and avoiding any breach of trust. The prevailing local sentiment suggests that KDB and KOBC will choose stock conversion.

NodeFlair Gets US$2M in Series A Funding to Further Expand, Accelerate Product Development

By e27

NodeFlair, a Singapore-based career advancement platform for tech talents, announced today that it has raised US$2 million Series A funding.
The funding round was led by Iterative with participation from 500 Global and PERSOL VENTURE PARTNERS, the corporate venture capital arm of HR management group PERSOL.
Prominent angel investors Quek Siu Rui (CEO & Co-founder of Carousell), JJ Chai (CEO & Co-founder of Rainforest), and Siew Kum Hong (Former COO of AirBnB China) also participated in the funding round.

💡 Before it’s here, it’s on Smartkarma

The Smartkarma Preview Pass is your entry to the Independent Investment Research Network

✓ Unlimited Research Summaries
✓ Personalised Alerts
✓ Custom Watchlists
✓ Company Data and News
✓ Events & Webinars

Jul 19

Daily Brief Financials: SAMHI Hotels , Hong Kong Hang Seng Index, Rakuten Securities, Sino-Ocean Group, Ally Financial, The Diverse Income Trust PLC and more

By Smartkarma Daily Briefs | Daily Briefs, Financials

In today’s briefing:

Samhi Hotels Pre-IPO – Refiling Updates – Bigger Portfolio, Smaller Deal
EQD | Hang Seng Index (HSI) WEEKLY Deep-But-Brief Pullback
Rakuten Securities IPO Early Look – The Positives – Has Been Gaining Market Share
Morning Views Asia: Shui On Land, Sino-Ocean Service
Ally Financial Earnings: 3 Areas To Focus On
Diverse Income Trust (The) – Delivering on its income and growth mandate

Samhi Hotels Pre-IPO – Refiling Updates – Bigger Portfolio, Smaller Deal

By Sumeet Singh

SAMHI Hotels (SAMHI IN) plans to raise around US$200m (estimated) in its Indian IPO.
Samhi is India’s third-largest hotel asset owner, by number of keys, with a portfolio of 25 operating hotel assets comprising 3,839 keys, as of Feb 2023.
In this note, we look at its updated filings and discuss the changes since its last filing in 2019.

EQD | Hang Seng Index (HSI) WEEKLY Deep-But-Brief Pullback

By Nico Rosti

The Hong Kong Hang Seng Index (HSI) last week closed strongly up. This week it’s pulling back, but MRM pattern readings forecast a very short-lived pullback (-1 to -2 weeks).
The suggested strategy is: let the index play out its pullback (warning: it can be volatile) and then enter LONG trades when the probability is good.
Suggested support price areas are between 18965 (Q2) and 18732 (Q3) – or this Friday at Close (as long as the close is negative).

Rakuten Securities IPO Early Look – The Positives – Has Been Gaining Market Share

By Sumeet Singh

Rakuten Securities (RAKUSEC JP), the online securities arm of Rakuten, aims to raise around US$500m (estimated) in its Japan listing.
It is the largest online securities firm in Japan with a 33.7% market share. In FY22, it had over 8.64m accounts, with around JPY18.2tn (US$131bn) of assets under custody.
In this note, we talk about the positive aspects of the deal.

Morning Views Asia: Shui On Land, Sino-Ocean Service

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.

Shui On Land
Sino-Ocean Service

Ally Financial Earnings: 3 Areas To Focus On

By Vladimir Dimitrov, CFA

Ally Financial is about to release its Q2 2023 earnings tomorrow as tightening within the auto loans market continues.
The deposit mix will be a key area to watch as it will have a major impact on the company’s return on tangible common equity.
The company is expected to report its second quarter of 2023 on Thursday.

Diverse Income Trust (The) – Delivering on its income and growth mandate

By Edison Investment Research

The Diverse Income Trust (DIVI) has two co-managers, Gervais Williams and Martin Turner at Premier Miton, who employ a genuine all-cap UK equity income strategy. DIVI’s long-term total returns are a function of its income and above-average income growth and although valuations can vary, over time they become less important as they trade in a range. While the trust’s performance has been disappointing over the last two years as stocks have derated and AIM stocks have underperformed, its income profile remains robust; hence, the managers are anticipating an improvement in DIVI’s performance. The trust has delivered a rising level of regular annual dividends throughout a range of market conditions.

💡 Before it’s here, it’s on Smartkarma

The Smartkarma Preview Pass is your entry to the Independent Investment Research Network

✓ Unlimited Research Summaries
✓ Personalised Alerts
✓ Custom Watchlists
✓ Company Data and News
✓ Events & Webinars

Jul 19

Daily Brief Health Care: ALK-Abello A/S, Max Healthcare Institute, Porton Pharma Solutions, STADA Arzneimittel AG and more

By Smartkarma Daily Briefs | Daily Briefs, Healthcare

In today’s briefing:

Quiddity Leaderboard SE600 Sep 23: CD Projekt Could Become an Intra-Review ADD
Max Healthcare (MAXHEALTH IN): Record High Sales and Profitability in Q4; Expansion to Drive Growth
Porton Pharma Solutions (300363.CH) 23H1 – Performance Pressure Would Remain in 2023
Stada – ESG Report – Lucror Analytics

Quiddity Leaderboard SE600 Sep 23: CD Projekt Could Become an Intra-Review ADD

By Janaghan Jeyakumar, CFA

In this insight, we take a look at the names leading the race to become ADDs/DELs for the SE600 and EURSTX Indices for the September 2023 Rebalance.
SimCorp A/S (SIM DC) could trigger an intra-review ADD prior to the September 2023 Rebalance.
Apart from that, I expect four other changes during the regular rebalance in September 2023. These expected ADDs and DELs are different from those in my last insight.

Max Healthcare (MAXHEALTH IN): Record High Sales and Profitability in Q4; Expansion to Drive Growth

By Tina Banerjee

Max Healthcare Institute (MAXHEALT IN) reported robust Q4 performance, with revenue and EBITA increasing 26% and 44%, YoY, respectively. Growth was driven by increase in ARPOB and occupied bed days.
Max commissioned new 92 beds oncology block at one of its network hospitals in March. New oncology block contributed positively to revenue and EBITDA in the first month of launch.
Max is on track to double its bed capacity in next 5–6 years. Apart from ongoing brownfield expansions, the company has land parcels with potential to add 1,000 beds.

Porton Pharma Solutions (300363.CH) 23H1 – Performance Pressure Would Remain in 2023

By Xinyao (Criss) Wang

Porton’s performance declined significantly in 23H1 compared with high base last year, because most of Pfizer’s COVID-19 big orders have been completed. Porton’s performance in 2023 would be under pressure.
Porton isn’t a first-tier CXO and lags behind industry leaders in terms of new businesses (CGT/ADC CXO). Valuation of entire CXO sector and Porton hasn’t yet reached an inflection point.
Market’s expectation for CXO would decrease and then bottom out in 2023H2. Whether CXO’s performance would rebound in 2024 still needs to wait for the turnaround in macro environment.

Stada – 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 Stada’s ESG as “Adequate”, in line with its Environmental, Social and Governance scores. Controversies are “Material” and Disclosure is “Adequate”.
Stada is a leading pharmaceuticals company headquartered in Bad Vilbel, Germany. It manufactures and sells a diverse range of generic and branded products across 125 countries globally.

💡 Before it’s here, it’s on Smartkarma

The Smartkarma Preview Pass is your entry to the Independent Investment Research Network

✓ Unlimited Research Summaries
✓ Personalised Alerts
✓ Custom Watchlists
✓ Company Data and News
✓ Events & Webinars

Jul 19

Daily Brief Consumer: Lalatech Holdings Co Ltd, Ferrari N.V., EbixCash, Genting Bhd, RCI Hospitality Holdings, Freakins, Organto Foods and more

By Smartkarma Daily Briefs | Consumer, Daily Briefs

In today’s briefing:

Lalatech IPO: The Bull Case
Quiddity Leaderboard ES50 Sep 23: Massive Flows; Might Be Time for LONG Ferrari – SHORT Vonovia
EbixCash IPO: The Bear Case
Genting Berhad – Event Flash – Resorts World Las Vegas To Issue USD 300 Mn 7Y Notes – Lucror Analytics
RCI Hospitality Holdings, Inc. – Revenues Meet Expectations
Freakins Raises $4m Seed Round to Grow Denim Brand
OGO: Premium Brand Launch Supports Margin Expansion

Lalatech IPO: The Bull Case

By Arun George

Lalatech Holdings Co Ltd (LALA HK), a leading logistics transaction platform, has filed for an HKEx IPO to raise US$1 billion, according to press reports.
Lalatech is the largest logistics transaction platform in the world by closed-loop freight gross transaction value in the first half of 2022, according to Frost & Sullivan.
The key elements of the bull case rest on solid growth, rising monetization rates, achieving maiden profitability, a shift to cash generation and a debt-free balance sheet.

Quiddity Leaderboard ES50 Sep 23: Massive Flows; Might Be Time for LONG Ferrari – SHORT Vonovia

By Janaghan Jeyakumar, CFA

The ES50 Index is one of the most highly-tracked indices in mainland Europe and the annual index review takes place in September.
As ES50 index changes generally involve large cap names, these Rebalance events have historically had significant volume and ADV impact.
In this insight, we take a look the names leading the race to become ADDs/DELs for the upcoming index review in September 2023.

EbixCash IPO: The Bear Case

By Arun George

EbixCash (EBIXC IN), a subsidiary of Ebix Inc (EBIX US) and India’s largest end-to-end financial exchange, is seeking to launch an Rs60 billion (US$730 million) in July.
In EbixCash IPO: The Bull Case, we highlighted the key elements of the bull case. In this note, we outline the bear case.
The key elements of the bear case rest on margin pressure due to rising operating costs, a related party being the largest customer, declining revenue visibility and deteriorating cash generation.

Genting Berhad – Event Flash – Resorts World Las Vegas To Issue USD 300 Mn 7Y Notes – Lucror Analytics

By Leonard Law, CFA

Genting Berhad’s subsidiary, Resorts World Las Vegas LLC (RWLV), is holding roadshows to market an issuance of USD 300 mn Reg-S/144A 7-year senior unsecured notes. The notes are rated BB+/BBB- by S&P and Fitch, respectively. The new notes will rank pari passu with the existing USD 1.35 bn of RWLVCA notes.

Proceeds from the notes issuance will be used to refinance a USD 300 mn subordinated shareholder loan from Genting Assets Inc. Hence, the transaction will be leverage neutral.

We see fair value for the proposed RWLVCA 2030 notes at c. 8.5%, as we expect the bonds to price in line with the existing curve. That said, there could be strong demand for the notes, given the small issuance size and dearth of issuance in the Asia crossover space so far this year.

RCI Hospitality Holdings, Inc. – Revenues Meet Expectations

By Water Tower Research

Multiple Catalysts on the Horizon. Total revenues were essentially in line with our forecast, and we see an attractive runway for growth with at least 10 new locations contributing to revenues through FY24: (1) 4Q23: First full quarter of another Baby Dolls, the reopening of a closed club, and the opening of a new Bombshells, all in Texas; (2) FY24: Opening of two new clubs in Texas, three new Bombshells in Texas and Colorado, and two casinos in Central City, CO. Potential club M&A activity could provide additional upside.
Potential club M&A activity could provide additional upside.
Nightclubs + Bombshells’ sales increased 8.9% Y/Y. On July 11, RCI announced its preliminary revenues for nightclubs and Bombshells.

Freakins Raises $4m Seed Round to Grow Denim Brand

By Tech in Asia

India-based fashion brand Freakins has bagged US$4 million in its seed round led by Matrix Partners India and Blume Ventures.
Founded in 2021 by Shaan Shah and Puneet Sehgal, Freakins is a direct-to-consumer clothing brand that specializes in denim.
The Gen Z-focused firm has built up a catalog of over 1,500 styles, which it says caters to different body types.

OGO: Premium Brand Launch Supports Margin Expansion

By Atrium Research

Organto announced the launch of ORO, a brand focused on premium non-GMO fruits and vegetables.
This morning, Organto Foods (OGO:TSXV) announced the introduction of its latest innovative brand offering, ORO.
ORO focuses on premium non-GMO fruits and vegetables, complimenting the I AM Organic brand (organic fruits and vegetables) and =Awesome Fruits (mid-tier non-GMO fruits).

💡 Before it’s here, it’s on Smartkarma

The Smartkarma Preview Pass is your entry to the Independent Investment Research Network

✓ Unlimited Research Summaries
✓ Personalised Alerts
✓ Custom Watchlists
✓ Company Data and News
✓ Events & Webinars

Jul 19

Most Read: Liontown Resources, SK Telecom, Takisawa Machine Tool, Neuren Pharmaceuticals, Samsung Electronics Pref Shares, Keisei Electric Railway Co, Data#3 Ltd, Shenzhen International, Ventia and more

By Smartkarma Daily Briefs | Daily Briefs, Most Read

In today’s briefing:

S&P/ASX Index Rebalance Preview: Potential Changes in September
SK Telecom (017670 KS): Foreign Room Increase Has Implications
Nidec (6594) Goes Hostile On Takisawa Machine Tool (6121) – I’ve Got 🍿🍿
Index Rebalance & ETF Flow Recap: ASX, Chinext, URA, Korea Stocks, NKY
Gap Trades in Korean Prefs Vs Common Share Pairs in 3Q 2023
Keisei Electric: Valuation Distortion Set to Unravel with Fantasy Springs’ Opening in Spring 2024
S&P/ASX200 Ad Hoc Index Rebalance & Update to Potential Changes in September
StubWorld: SZ International’s Logistics Spin-Offs
Ventia Services (VNT) Selected to Join ASX 200 – Not A Surprise
Ohayo Japan | Bullish Banks, Ai , US Consumer; NUGGET: Isuzu(7202) – EV Outlook Better for Trucks

S&P/ASX Index Rebalance Preview: Potential Changes in September

We forecast 22 changes across the ASX50 Index, ASX100 Index, S&P/ASX 200 (AS51 INDEX) and ASX300 Index at the September rebalance.
Some of the changes are high probability while others are close to cutoffs. The impact of passive trading will be pretty large on a lot of stocks.
Short interest on the potential deletes indicates some pre-positioning but there should still be a fair bit more to do.

SK Telecom (017670 KS): Foreign Room Increase Has Implications

Foreign investors have been selling SK Telecom (017670 KS) for over a year now. That has taken foreign room from near zero to close to 15% now.
That could mean index inclusion for SK Telecom (017670 KS) with timing dependent on when the 15% foreign room threshold is crossed.
SK Telecom (017670 KS) has performed in line with KT Corp (030200 KS) but trades at higher valuations on most parameters.

Nidec (6594) Goes Hostile On Takisawa Machine Tool (6121) – I’ve Got 🍿🍿

Last year Nidec Corp (6594 JP) approached machine tool maker Takisawa Machine Tool (6121 JP) interested in an integration with their sub. Takisawa said “Talk to the hand.”
Now Nidec – a blue chip (from Kyoto no less, which traditionally abhors hostile activity) – has gone hostile on Takisawa bidding 65-100% depending how you see undisturbed.
Lots of moving parts on this one, but in the end, Retail probably decides this.

Index Rebalance & ETF Flow Recap: ASX, Chinext, URA, Korea Stocks, NKY

Busy week in India with the adhoc changes to the NIFTY, NSE Nifty Next 50, S&P BSE SENSEX and Nifty Bank due to the HDFC Limited and HDFC Bank merger.
The IDX could announce the changes to the IDX30, LQ45 and IDX80 indices in the coming week, though there is no firm schedule for announcements.
Yet another week of inflows to the Tracker Fund of Hong Kong Ltd (2800 HK) ETF and outflows from the Hang Seng H Share Index ETF (2828 HK).

Gap Trades in Korean Prefs Vs Common Share Pairs in 3Q 2023

By Douglas Kim

In this insight, we discuss numerous gap trades involving Korean preferred and common shares in 3Q 2023.
The excessive gaps in the preferred and common shares of Kumho Petrochem, LG Electronics, and Samsung Electronics could reverse in the next several months, in our view.
We see some attractive longer-term opportunities for Amorepacific Corp, Doosan Fuelcell, LG Electronics, and Samsung Electro-Mechanics which have especially high discounts for the preferred shares versus their counterpart common shares.

Keisei Electric: Valuation Distortion Set to Unravel with Fantasy Springs’ Opening in Spring 2024

By Oshadhi Kumarasiri

Since the announcement of the proposed Tokyo Disney Sea expansion in 2015, Keisei Electric Railway Co (9009 JP)‘s price perfromance has significantly diverged from Oriental Land (4661 JP)‘s price performance.
The valuation disparity may result from the Disney Sea expansion’s impact, possibly due to Keisei Electric’s value-oriented investor base.
Fantasy Springs’ opening could resolve the valuation distortion, leading to potential rewards in a Long Keisei Electric and Short Oriental Land trade.

S&P/ASX200 Ad Hoc Index Rebalance & Update to Potential Changes in September

Ventia (VNT AU) will replace Blackmores Ltd (BKL AU) in the S&P/ASX 200 (AS51 INDEX) at the close on 21 July.
The ad hoc change will lead to changes in the list of potential adds and deletes at the regular scheduled rebalance in September.
Weebit Nano Ltd (WBT AU) is now a potential add in September and could see some pre-positioning in the near future.

StubWorld: SZ International’s Logistics Spin-Offs

By David Blennerhassett

Shenzhen International (152 HK) seeks to spin off logistic assets on a PRC exchange; and 51.56%-held Shenzhen Expressway Co H (548 HK) intends to place out A shares.
Preceding my comments on SZ Int’l/SZ E’Way are the current setup/unwind tables for Asia-Pacific Holdcos.
These relationships trade with a minimum liquidity of US$1mn, and a % market capitalisation >20%.

Ventia Services (VNT) Selected to Join ASX 200 – Not A Surprise

After the Blackmores Ltd (BKL AU) Scheme Meeting result was announced earlier today, post-close the S&P/ASX team announced Ventia (VNT AU) would replace it on 21 July at the close.
This is not that surprising. Janaghan Jeyakumar, CFA expected it in June, and it was a super-close second recently for him for the Sep rebalance.
Given the shareholder structure and flow dynamics, it’s worth taking a closer look.

Ohayo Japan | Bullish Banks, Ai , US Consumer; NUGGET: Isuzu(7202) – EV Outlook Better for Trucks

By Mark Chadwick

OVERSEAS. SPX new 52W highs on Bank earnings, AI (thx to MSFT), and Resilient Retail print; MSFT prices Copilot at high end; US bank CEOs showing optimism.
JAPAN. NKY Futures +0.8% vs Cash; USDJPY 138.8; Look for continued follow through in Japan equity bid; Bank bid thematic gaining more traction on BOJ tweak view; Kishida cabinet reshuffle?
NUGGET. Isuzu(7202) – Big EV Spending but Still looks Cheap at 1x PBR. A 15% FY3/26 ROE as per mid term plan makes this look interesting for LT investors here.

💡 Before it’s here, it’s on Smartkarma

The Smartkarma Preview Pass is your entry to the Independent Investment Research Network

✓ Unlimited Research Summaries
✓ Personalised Alerts
✓ Custom Watchlists
✓ Company Analytics and News
✓ Events & Webinars

Jul 18

Daily Brief Australia: Respiri Ltd and more

By Smartkarma Daily Briefs | Australia, Daily Briefs

In today’s briefing:

Respiri – wheezo to access a larger addressable market

Respiri – wheezo to access a larger addressable market

By Edison Investment Research

Respiri has announced a three-year distribution and marketing agreement (non-exclusive) with Fi-Med Management, a US-based company providing healthcare support and management solutions to large healthcare organisations. Under this revenue-share arrangement, Respiri will receive $30 per patient per month for active patients enrolled as wheezo RPM users. Although the initial Fi-Med customer review suggests an immediate opportunity to address 5,000 patients, the collaboration is anticipated to enable Respiri to access a wider patient base. The development closely aligns with management’s strategic focus to expand into other indications and generate incremental top-line growth.

💡 Before it’s here, it’s on Smartkarma

The Smartkarma Preview Pass is your entry to the Independent Investment Research Network

✓ Unlimited Research Summaries
✓ Personalised Alerts
✓ Custom Watchlists
✓ Company Data and News
✓ Events & Webinars

Jul 18

Daily Brief United States: Truist Financial Corp, Bitcoin Pro, GlobalFoundries, Ameriprise Financial, Silver, Travelers Cos, Ocean Power Technologies, Exxon Mobil and more

By Smartkarma Daily Briefs | Daily Briefs, United States

In today’s briefing:

Truist Financial Corporation: Initiation of Coverage – Business Strategy & Key Drivers
XRP Volume Surpasses BTC Following Landmark Ruling
GlobalFoundries Inc.: Initiation of Coverage – Increasing Manufacturing Capacity & Other Drivers
Ameriprise Financial Inc.: Initiation of Coverage – Independent Channel Expansion & Other Drivers
How Much Do Commodity Prices Rise when Fertilizer Prices Rise?
The Travelers Companies Inc.: Initiation of Coverage – Business Strategy & Other Drivers
Ocean Power Technologies, Inc. – 4Q23 Results: Net Loss Widens
Exxon Mobil: Investor Pessimism Is Creeping Up And This Is Good News For Long-Term Holders

Truist Financial Corporation: Initiation of Coverage – Business Strategy & Key Drivers

This is our first report on Truist Financial Corporation, one of the largest regional banks in the United States.
Truist opened 146,000 bank accounts online.
We initiate coverage on the stock of Truist Financial Corporation with a ‘Hold’ rating.

XRP Volume Surpasses BTC Following Landmark Ruling

By Kaiko

After years of waiting, Ripple finally got a ruling in their highly anticipated lawsuit with the SEC: the company did not violate federal securities law by selling its XRP token on public exchanges.
The market reaction was near instantaneous.
Since Thursday, XRP is up 61% and several exchanges that had previously de-listed the token, including Coinbase and Kraken, immediately re-listed it.

GlobalFoundries Inc.: Initiation of Coverage – Increasing Manufacturing Capacity & Other Drivers

This is our first report on GlobalFoundries Inc, a multinational semiconductor contract manufacturing and design company.
Despite these challenges, the company observed healthy demand in growing segments such as industrial IoT, aerospace, defense, and automotive markets.
Throughout the quarter, GlobalFoundries demonstrated its dedication to executing targets, delivering value to customers, and sustaining its position in the industry.

Ameriprise Financial Inc.: Initiation of Coverage – Independent Channel Expansion & Other Drivers

This is our first report on investment management behemoth, Ameriprise Financial.
Ameriprise had a great quarter, with revenues increased by 3% to $3.7 billion, driven by Advice & Wealth Management’s double-digit growth.
Additionally, Ameriprise experienced good growth in its educational loan business as well as great growth in its certificate business.

How Much Do Commodity Prices Rise when Fertilizer Prices Rise?

By The Commodity Report

Global crop production growth will mainly be driven by continued progress in plant breeding and a transition to more intensive production systems.
Yield improvements are projected to account for 79% of global crop production growth, cropland expansion for 15%, and higher cropping intensity for 6% over the outlook period.
Global growth of sugar consumption will be driven entirely by Africa and Asia, with demand projected to surge in areas where the level of per capita intake is currently low.

The Travelers Companies Inc.: Initiation of Coverage – Business Strategy & Other Drivers