Daily Briefs

By Shifara Samsudeen, ACMA, CGMA

PhilEnergy IPO will start trading this Friday on 14 July. We believe that PhilEnergy’s share price will surge higher on the first day of trading.
We believe PhilEnergy’s shares could OVERSHOOT by more than 200% versus the IPO price on the first day of trading, which would be more than 102,00 won or more.
Our trading strategy on PhilEnergy on the first day of trading would be to take partial profits (30-50%) if its price overshoots higher (by 200% or more than IPO price).

Oddity Tech IPO Valuation Analysis: Growth and Profitability, Solid Upside With Limited Risk

By Andrei Zakharov

Oddity Tech, the owner of popular and fastest-growing global brands IL MAKIAGE and SpoiledChild, set terms for an upcoming IPO. The company offers ~10.5M Class A shares.
Selling shareholders (private equity firm L. Catterton and Oran Holtzman, Co-founder & CEO) offer ~8.77M Class A shares, while Oddity Tech offers ~1.75M Class A shares.
The net proceeds from the sale of Class A shares will be ~$41M. Oddity Tech will not receive any proceeds from the sale of shares by the selling shareholders.

Pre-IPO HighTide Therapeutics – Its Outlook in NASH Field Is Not Optimistic, with High Risks

By Xinyao (Criss) Wang

The mechanism of NASH has not yet been accurately determined. Among the major players, FDA has postponed the approval of OCA (FXR) for NASH. THR-β is currently the most promising.
HighTide claims that HTD1801 is able to achieve the goal of improving effectiveness and reducing toxicity. However, HTD1801 hasn’t reached pathological endpoints. We’ll have to wait for future clinical data.
This Company actually has high risk due to cash shortage and uncertain R&D progress, which could lead to lower-than-expected stock price performance. We are conservative about HighTide based on analysis.

Syngenta Pre-IPO – The Positives – Giant in the Agriculture Industry Set to Benefit from Policies

By Clarence Chu

Syngenta Group (1844795D CH) is looking to raise around US$9.2bn in its upcoming China A-share IPO.
Syngenta Group (Syngenta) is one of the largest agricultural firms globally, developing, producing and commercializing a portfolio of crop protection, seeds, crop nutrition products.
In this note, we will talk about the positive aspects of the deal.

Unisound AI Technology Pre-IPO Tearsheet

By Ethan Aw

Unisound AI Technology (1053075D CH) is looking to raise at least US$300m in its upcoming HK IPO. The deal will be run by CICC and Haitong International.
The firm offers AI solutions centered around its computing cluster, scheduling computing power for machine learning tasks. It provides support to the development, optimization and commercialization of frontier AI models.
Its computing cluster currently harbors a computing power of over 200 peta floating point operations per second (PFLOPS), and a storage capacity of over 1.6 petabytes (PB).

💡 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 11

Daily Brief Equity Bottom-Up: Sheng Siong (SSG SP): Steady At Execution and more

By Smartkarma Daily Briefs | Daily Briefs, Equity Bottom-Up

In today’s briefing:

Sheng Siong (SSG SP): Steady At Execution, Good Long-Term Play
Taiwan Tech Weekly: TSMC Packaging Tech Ahead of Samsung; China Rare Earths Restrictions Plays; DRAM
Recruit Holdings: Disappointing Job Data for May; More Downside Ahead
[Alibaba (BABA US, BUY, TP US$116) Target Price Change]: CMR Improves on Expanded Merchant Base
Heroz (4382) – Tailoring Business Growth Opportunities
Moderna (MRNA US): Second Product Submission Is Not Big Enough Needle-Mover
The Kraft Heinz Company: Winning the Market with Their Easy Meals and Taste Elevation! – Key Drivers
Honda Motor Co.
PDD Holdings Inc.: 3 Major Factors Responsible For Its Recovery – Key Drivers
Jabil Inc.: Harnessing AI to Transform the Industry – Key Drivers

Sheng Siong (SSG SP): Steady At Execution, Good Long-Term Play

By Sameer Taneja

It attracts investors when a company’s 15-year ROCE averages over 25% (and has never gone below 20%). Sheng Siong (SSG SP) is one of those companies.
With 13% of the market capitalization in net cash (283 mn SGD) and a payout ratio averaging 70%, the stock trades at a yield of almost 4%.
We believe the store expansion of 3-4 stores/year ( on a base of 67) in Singapore is possible, given the pipeline of HDB tenders.

Taiwan Tech Weekly: TSMC Packaging Tech Ahead of Samsung; China Rare Earths Restrictions Plays; DRAM

By Vincent Fernando, CFA

TSMC winning with Nvidia’s business, beating Samsung due to TSMC’s advanced packaging technology; this highlights the rising importance and complexity of chip packaging.
China export restrictions for rare earths used in semiconductors highlight opportunity for U.S. and Australian rare earths producers. We identify two potential plays.
Nanya Technology Earnings: DRAM market has bottomed, sees industry improvement ahead. We see a trading Long opportunity.

Recruit Holdings: Disappointing Job Data for May; More Downside Ahead

Recruit Holdings (6098 JP) ’s share price has been down over the last few days following release of job openings data for May 2023 by the US Department of Labour.
The no. of job openings in the US in May 2023 decreased to 9.8m vs 11.3m in May 2022. It has also declined compared to 10.1m reported in April 2023.
Moreover, web traffic on Recruit’s job platforms Indeed and Glassdoor have also decreased in June 2023 compared to May.

[Alibaba (BABA US, BUY, TP US$116) Target Price Change]: CMR Improves on Expanded Merchant Base

By Shawn Yang

We expect BABA to report C2Q23 (F1Q24) top-line and non-IFRS net income 2% and 21.5% vs. consensus. For C2Q23, we raised (1) Taobao/Tmall GMV/CMR estimates due to return of merchants,
(2) International Commerce and Cainiao revenue estimates, and (3) EBITA margin estimates for all groups except cloud. We maintain our BUY rating and raise TP to US$ 116 TP,
Due to 1) merchants return to Taobao/Tmall; 2) independent listing of groups; and 3) improved incentive structure after the organizational change.

Heroz (4382) – Tailoring Business Growth Opportunities

By Astris Advisory Japan

HEROZ is an AI technology company that provides advanced AI development expertise to both B2C and B2B sectors.
With a strategic focus on AI SaaS, it has embarked on a ‘buy-to-build’ strategy to develop profitable recurring revenue streams and accelerate earnings growth.
In September 2022, it consolidated VarioSecure (4494), a subsidiary offering network security services, and in August 2022 acquired Strategit, a SaaS integration development support business.

Moderna (MRNA US): Second Product Submission Is Not Big Enough Needle-Mover

By Tina Banerjee

Moderna Inc (MRNA US) has submitted marketing authorization applications for the investigational RSV vaccine, mRNA-1345, in Europe and Australia and initiated submission process in the U.S.
Moderna anticipates to launch RSV vaccine in 2024 in US. Each year in US, approximately 60,000–120,000 older adults are hospitalized, and 6,000–10,000 of them die due to RSV infection.
This year, FDA has already approved two RSV vaccines, Arexvy from GSK and Abrysvo from Pfizer, which are scheduled to be launched in the U.S. by this fall.

The Kraft Heinz Company: Winning the Market with Their Easy Meals and Taste Elevation! – Key Drivers

Kraft Heinz delivered a positive result and managed an all-around beat in the last quarter.
In the quarter, the company introduced It Has to be HEINZ, a new worldwide campaign that represents the brand’s first unification under a single creative approach.
We give The Kraft Heinz Company a ‘Hold’ rating with a revised target price.

Honda Motor Co.

Honda Motor’s results were a major disappointment as the company failed to meet the revenue expectations as well as the earnings expectations of Wall Street. but, their efforts in cost reduction and improved pricing strategies helped maintain an operating profit margin above 5%.
Additionally, they aim to provide attractive dividends to shareholders, with a significant increase per share and a share buyback program.

PDD Holdings Inc.: 3 Major Factors Responsible For Its Recovery – Key Drivers

PDD delivered an all-around beat in the previous quarter and the company saw clear recovery trends.
Revenue increased in the quarter and contributed to a total of RMB37.6 billion.
PDD has also launched its electronic shopping season and invested millions of RMB for promoting universal and high-quality access to reading.

Jabil Inc.: Harnessing AI to Transform the Industry – Key Drivers

Jabil delivered a strong result and managed an all-around beat in the last quarter.
The company’s growth was driven by improved profitability in electric vehicles, healthcare, renewable energy infrastructure, and cloud sectors.
The healthcare sector also presents opportunities for Jabil, with increasing interest from OEMs seeking outsourcing manufacturing solutions.

💡 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 11

Daily Brief Health Care: Kelun Biotech, Boiron SA, Moderna Inc, HighTide Therapeutics, Illumina Inc, Unitedhealth Group and more

By Smartkarma Daily Briefs | Daily Briefs, Healthcare

In today’s briefing:

Kelun-Biotech (科伦博泰) IPO Trading: Lukewarm Demand but Peers Have Done Well Recently
Opportunistic Deal with Grounds for a Bump-Up
Moderna (MRNA US): Second Product Submission Is Not Big Enough Needle-Mover
Pre-IPO HighTide Therapeutics – Its Outlook in NASH Field Is Not Optimistic, with High Risks
Illumina Inc.: Expansion of Genomics Capacity With New Pact & Other Drivers
UnitedHealth Q2 Earnings Preview: Volatility En Route

Kelun-Biotech (科伦博泰) IPO Trading: Lukewarm Demand but Peers Have Done Well Recently

By Ke Yan, CFA, FRM

Kelun-Biotech raised HKD 1,259m (USD 161m) from its global offering and will list on the Hong Kong Stock Exchange on Tuesday, July 10th.
In our previous note, we looked at the company’s business lines of ADC products. We were of the view that the IPO is fairly priced, at best.
In this note, we provide an update for the IPO before trading debut.

Opportunistic Deal with Grounds for a Bump-Up

By Jesus Rodriguez Aguilar

Prior to announcement, net cash of Boiron SA (BOI FP) represented 1/3rd of market cap. Most of that cash will now be distributed, conditional on deal success.
Although the premium is 36%, at 9.2x EV/Fwd EBIT, the offer seems cheap vs. comparables. The deal is neutral for the Boirons, whom will get a c.€126 million special dividend.
The offer facilitates the entry of a private equity healthcare specialist. Delisting requires acceptances from 57.6% of the float. Gross spread is +0.4%. Investors may require an offer around €52.

Moderna (MRNA US): Second Product Submission Is Not Big Enough Needle-Mover

By Tina Banerjee

Moderna Inc (MRNA US) has submitted marketing authorization applications for the investigational RSV vaccine, mRNA-1345, in Europe and Australia and initiated submission process in the U.S.
Moderna anticipates to launch RSV vaccine in 2024 in US. Each year in US, approximately 60,000–120,000 older adults are hospitalized, and 6,000–10,000 of them die due to RSV infection.
This year, FDA has already approved two RSV vaccines, Arexvy from GSK and Abrysvo from Pfizer, which are scheduled to be launched in the U.S. by this fall.

Pre-IPO HighTide Therapeutics – Its Outlook in NASH Field Is Not Optimistic, with High Risks

By Xinyao (Criss) Wang

The mechanism of NASH has not yet been accurately determined. Among the major players, FDA has postponed the approval of OCA (FXR) for NASH. THR-β is currently the most promising.
HighTide claims that HTD1801 is able to achieve the goal of improving effectiveness and reducing toxicity. However, HTD1801 hasn’t reached pathological endpoints. We’ll have to wait for future clinical data.
This Company actually has high risk due to cash shortage and uncertain R&D progress, which could lead to lower-than-expected stock price performance. We are conservative about HighTide based on analysis.

Illumina Inc.: Expansion of Genomics Capacity With New Pact & Other Drivers

By Pearl Gray Equity and Research

Illumina managed to surpass the revenue expectations as well as the earnings expectations of Wall Street.
In Q1, Illumina produced revenue of about $1.09 billion.
Illumina also unveiled Illumina Complete Long-Read technology and Illumina Connected Insights.

UnitedHealth Q2 Earnings Preview: Volatility En Route

UnitedHealth Group Incorporated is set to release its second-quarter results on Friday, the 14th.
However, its Q2 report is tough to call, we warn investors that volatility will likely surface within the coming days.
UnitedHealth is a surreal earnings beater, but it’s a surreal beater.

💡 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 11

Daily Brief Event-Driven: ChiNext/ChiNext50 Index Rebalance Preview: Potential Changes & Basket Performance and more

By Smartkarma Daily Briefs | Daily Briefs, Event-Driven

In today’s briefing:

ChiNext/ChiNext50 Index Rebalance Preview: Potential Changes & Basket Performance
TOPIX Inclusions: Who Is Ready (Jul 2023)
JSR (4185 JP) Takeover – Why So Wide? FUD and Flows
Chindata (CD US): China Merchants Capital’s Rival Privatisation Offer
S&P/ASX Index Rebalance Preview: Potential Changes in September
Costa – Another Bite at the Apple for Paine Schwartz?
Hyundai G.F. Holdings: A Holdco Creation With In-Kind Investment in HDS & Hyundai Green Food
Posco DX’s KOSPI Transfer Listing: Hankyung Exclusive Report
Opportunistic Deal with Grounds for a Bump-Up

ChiNext/ChiNext50 Index Rebalance Preview: Potential Changes & Basket Performance

One third of the way through the review period, we forecast 10 changes for the ChiNext Index (SZ399006 INDEX EQUITY) and 5 changes for the ChiNext 50 Index in December.
Passive trackers are estimated to trade around +/-0.5 days ADV on most of the potential adds/deletes, though there are some deletes that will have over 1 day ADV to sell.
The potential inclusion to one or both indices have outperformed the potential deletes by a huge margin in the 5 months. We’d wait for a pullback to re-enter positions.

TOPIX Inclusions: Who Is Ready (Jul 2023)

By Janaghan Jeyakumar, CFA

Quiddity’s “Who is Ready” series of insights aims to objectively identify names listed on the Tokyo Stock Exchange that are potential additions to the TOPIX Index in future.
Anycolor (5032 JP) and Lifedrink (2585 JP) have already confirmed their moves to the Prime Market and are expected to have TOPIX Inclusion Events at the end of July 2023.
More recently, Plus Alpha Consulting (4071 JP) announced their move to the Prime Market and are likely to have a TOPIX Inclusion Event at the end of August 2023.

JSR (4185 JP) Takeover – Why So Wide? FUD and Flows

By Travis Lundy

In the last week of June, Japanese government-affiliated Japan Investment Corp (“JIC”) announced it would take over JSR Corp (4185 JP). A “surprise” but perhaps not totally.
It traded tight, then it traded back out. Then worse. Then worse again. There were good reasons for this. There were perhaps less good reasons too.
FUD and Flows mean that it is likely to continue to trade wide for the near future.

Chindata (CD US): China Merchants Capital’s Rival Privatisation Offer

By Arun George

China Merchants Capital (CMC) disclosed a competing preliminary non-binding proposal to acquire Chindata Group (CD US) at US$9.20 per ADS, a 15.0% premium to Bain Capital’s US$8.00 per ADS offer.
Astonishingly, Chindata did not publicly disclose the CMC offer, which was sent to the special committee on 9 June, i.e., 34 days ago.
CMC must get Bain Capital’s support due to its 92.34% voting rights. The presence of a credible competing proposal will require Bain Capital to match CMC’s offer.

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.

Costa – Another Bite at the Apple for Paine Schwartz?

By David Blennerhassett

Back in October 2022, Costa Group (CGC AU), one of Australia’s largest fresh fruit and vegetable producers, was understood to have been approached by its former major shareholder, Paine Schwartz.
This was discussed in Costa Group’s Low-Hanging Fruit: Paine Schwartz Renews Interest. At the time, media reports speculated Paine Schwartz had no current intention of making a takeover bid.
Last week, Paine Schwartz made an A$3.50/share NBIO by way of a Scheme. Paine Schwartz currently holds 14.84%.

Hyundai G.F. Holdings: A Holdco Creation With In-Kind Investment in HDS & Hyundai Green Food

Last week, Hyundai Dept Store Group announced that it will establish a single holding company structure with Hyundai G.F. Holdings controlling all of the group affiliates.
Hyundai G.F. Holdings plans to make an in-kind investment in Hyundai Department Store (HDS) to make Hyundai Green Food and Hyundai Department Store as subsidiaries.
This in-kind investment in HDS and Hyundai Green Food by Hyundai G.F. Holdings is not a deal that adds clear-cut value to Hyundai G.F. Holdings’ shareholders.

Posco DX’s KOSPI Transfer Listing: Hankyung Exclusive Report

By Sanghyun Park

Posco DX has begun the selection process for its lead underwriter for its transfer to the KOSPI market and plans to complete the transfer listing within this year.
Considering the recent retail insanity witnessed in most local large-cap battery stocks, Posco DX will likely experience further intensified short-term price fluctuations with this new development as a catalyst.
The likely replacement for Posco DX’s KOSDAQ 150 spot is Konan Technology, which has become a top reserved issue in Posco DX’s GICS sector (Information Technology) in the previous review.

Opportunistic Deal with Grounds for a Bump-Up

By Jesus Rodriguez Aguilar

Prior to announcement, net cash of Boiron SA (BOI FP) represented 1/3rd of market cap. Most of that cash will now be distributed, conditional on deal success.
Although the premium is 36%, at 9.2x EV/Fwd EBIT, the offer seems cheap vs. comparables. The deal is neutral for the Boirons, whom will get a c.€126 million special dividend.
The offer facilitates the entry of a private equity healthcare specialist. Delisting requires acceptances from 57.6% of the float. Gross spread is +0.4%. Investors may require an offer around €52.

💡 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 11

Daily Brief Energy/Materials: JSR Corp, Liontown Resources, Gold, Syngenta Group, Zephyr Energy and more

By Smartkarma Daily Briefs | Daily Briefs, Energy & Materials Sector

In today’s briefing:

JSR (4185 JP) Takeover – Why So Wide? FUD and Flows
S&P/ASX Index Rebalance Preview: Potential Changes in September
Why isn’t Gold starting to sell off? // The Big Sugar Rush
Syngenta Pre-IPO – The Positives – Giant in the Agriculture Industry Set to Benefit from Policies
Zephyr Energy Plc (AIM: ZPHR): First payment from insurance received

JSR (4185 JP) Takeover – Why So Wide? FUD and Flows

By Travis Lundy

In the last week of June, Japanese government-affiliated Japan Investment Corp (“JIC”) announced it would take over JSR Corp (4185 JP). A “surprise” but perhaps not totally.
It traded tight, then it traded back out. Then worse. Then worse again. There were good reasons for this. There were perhaps less good reasons too.
FUD and Flows mean that it is likely to continue to trade wide for the near future.

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.

Why isn’t Gold starting to sell off? // The Big Sugar Rush

By The Commodity Report

Why isn’t Gold starting to sell off? In last week’s report, we already highlighted that the golden metal stays unattractive – as the Fed will likely do more rate hikes.
The, in some parts, stronger-than-expected job market data we received last week confirmed that view once again.
We find it interesting that gold hasn’t shown more weakness yet – even as rates continue to rise again.

Syngenta Pre-IPO – The Positives – Giant in the Agriculture Industry Set to Benefit from Policies

By Clarence Chu

Syngenta Group (1844795D CH) is looking to raise around US$9.2bn in its upcoming China A-share IPO.
Syngenta Group (Syngenta) is one of the largest agricultural firms globally, developing, producing and commercializing a portfolio of crop protection, seeds, crop nutrition products.
In this note, we will talk about the positive aspects of the deal.

Zephyr Energy Plc (AIM: ZPHR): First payment from insurance received

By Auctus Advisors

Initial invoices submitted to the insurer have now been approved and reimbursement totalling ~US$0.8 mm have been received.
Additional invoices are being submitted on a regular basis with payments expected within 30 days of receipt by the insurer.
Greater costs will come later in the process and are expected to be regularly re-imbursed as invoices are submitted.

💡 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 11

Daily Brief South Korea: Hyundai G.F. Holdings, Konan Technology, PhilEnergy and more

By Smartkarma Daily Briefs | Daily Briefs, South Korea

In today’s briefing:

Hyundai G.F. Holdings: A Holdco Creation With In-Kind Investment in HDS & Hyundai Green Food
Posco DX’s KOSPI Transfer Listing: Hankyung Exclusive Report
PhilEnergy IPO: Trading Strategy on the First Day of Trading

Hyundai G.F. Holdings: A Holdco Creation With In-Kind Investment in HDS & Hyundai Green Food

Last week, Hyundai Dept Store Group announced that it will establish a single holding company structure with Hyundai G.F. Holdings controlling all of the group affiliates.
Hyundai G.F. Holdings plans to make an in-kind investment in Hyundai Department Store (HDS) to make Hyundai Green Food and Hyundai Department Store as subsidiaries.
This in-kind investment in HDS and Hyundai Green Food by Hyundai G.F. Holdings is not a deal that adds clear-cut value to Hyundai G.F. Holdings’ shareholders.

Posco DX’s KOSPI Transfer Listing: Hankyung Exclusive Report

By Sanghyun Park

Posco DX has begun the selection process for its lead underwriter for its transfer to the KOSPI market and plans to complete the transfer listing within this year.
Considering the recent retail insanity witnessed in most local large-cap battery stocks, Posco DX will likely experience further intensified short-term price fluctuations with this new development as a catalyst.
The likely replacement for Posco DX’s KOSDAQ 150 spot is Konan Technology, which has become a top reserved issue in Posco DX’s GICS sector (Information Technology) in the previous review.

PhilEnergy IPO: Trading Strategy on the First Day of Trading

PhilEnergy IPO will start trading this Friday on 14 July. We believe that PhilEnergy’s share price will surge higher on the first day of trading.
We believe PhilEnergy’s shares could OVERSHOOT by more than 200% versus the IPO price on the first day of trading, which would be more than 102,00 won or more.
Our trading strategy on PhilEnergy on the first day of trading would be to take partial profits (30-50%) if its price overshoots higher (by 200% or more than IPO price).

💡 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 11

Daily Brief Singapore: Sheng Siong, SGX and more

By Smartkarma Daily Briefs | Daily Briefs, Singapore

In today’s briefing:

Sheng Siong (SSG SP): Steady At Execution, Good Long-Term Play
Singapore Code of Conduct for ESG Ratings Is Less Risk and More Reward

Sheng Siong (SSG SP): Steady At Execution, Good Long-Term Play

By Sameer Taneja

It attracts investors when a company’s 15-year ROCE averages over 25% (and has never gone below 20%). Sheng Siong (SSG SP) is one of those companies.
With 13% of the market capitalization in net cash (283 mn SGD) and a payout ratio averaging 70%, the stock trades at a yield of almost 4%.
We believe the store expansion of 3-4 stores/year ( on a base of 67) in Singapore is possible, given the pipeline of HDB tenders.

Singapore Code of Conduct for ESG Ratings Is Less Risk and More Reward

By Kyle Rudden

The Monetary Authority of Singapore (MAS) recently launched a public consultation regarding a Code of Conduct for ESG ratings providers and ESG data product providers in Singapore.
It is the right approach for Singapore – a voluntary best-practices framework furthering one of the world’s most credible “green” economies, not a regulatory force-fix of something broken.
No surprise ratings methodology changes. No en masse upgrades/downgrades. No acute shocks to the system. Just slow and steady progress for ESG investing and finance in Singapore.

💡 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 11

Daily Brief Australia: Liontown Resources, Costa Group Holdings and more

By Smartkarma Daily Briefs | Australia, Daily Briefs

In today’s briefing:

S&P/ASX Index Rebalance Preview: Potential Changes in September
Costa – Another Bite at the Apple for Paine Schwartz?

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