Category

Daily Briefs

Dec 22
0

Daily Brief Japan: Fuji Soft Inc, Seven & I Holdings, TSE Tokyo Price Index TOPIX and more

By | Daily Briefs, Japan

In today’s briefing:

  • (Mostly) Asia-Pac M&A: Beenos, Insignia, Henlius, GAPack, Fuji Soft, Goldlion, Malaysia Airports
  • Last Week In Event SPACE: Seven & I, CPMC, UBTech Robotics, Macromill, 2024 Best-Of
  • Companies Have Begun to Be Aware of Cash Flow, but the Reality Is that It Doesn’t Produce Results

(Mostly) Asia-Pac M&A: Beenos, Insignia, Henlius, GAPack, Fuji Soft, Goldlion, Malaysia Airports

By David Blennerhassett

Last Week In Event SPACE: Seven & I, CPMC, UBTech Robotics, Macromill, 2024 Best-Of

By David Blennerhassett

  • The new article on Seven & I Holdings (3382 JP) from TV Tokyo is causing a dip on top of last week’s weakness. This is a dip to buy.
  • CPMC Holdings (906 HK)‘s Offer is now open for tendering. Ignore the rumours. Zhang Wei will tender. Expect payment before Chinese New Year. 
  • Accounting solely for the pre-IPO investors, 164.6m shares (US$1.9bn) in UBTech Robotics (9880 HK) will be unlocked, ~39.2% of the firm’s total shares outstanding, and 91 days of three-month ADV.

Companies Have Begun to Be Aware of Cash Flow, but the Reality Is that It Doesn’t Produce Results

By Aki Matsumoto

  • Operating income and depreciation, the components of operating cash flow, have been sluggish. This has undeniably dampened expectations for expanding corporate value.
  • Many companies have begun to be aware of cash flow, but have yet to see results. They are at the stage of producing results by selecting business to invest cash.
  • In terms of “not being conscious of cash flow,” shareholder returns are still strongly net income oriented and not cash flow oriented.

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

Sign Up for Free

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
Sign Up for Free


Dec 22
0

Most Read: Hang Seng TECH Index, Phison Electronics, China Banking, Seven & I Holdings, Cal Comp Electronics Thailand, Taiwan Semiconductor (TSMC) – ADR, Bloks Group, SGX Rubber Future TSR20, Chabiotech and more

By | Daily Briefs, Most Read

In today’s briefing:

  • How Has the Index Rebalance Strategy Performed in 2024?
  • TIP Customized Taiwan Select High Dividend Index Rebalance: US$3.2bn Trade with BIG Impact
  • 7&I (3382JP) – Spanners in the Works: FTC Blocks Another US Retail Merger and 7-11 Japan Sales Slump
  • PCOMP Index Rebalance Preview: Two Changes Likely in February
  • 7&I (3382 JP) – Share Price Dipping Deeper Means Dipping Toes Deeper
  • SET50 Index Rebalance: Four Changes; Cal Comp🚀
  • MV US Listed Semiconductor 25 Index Rebalance: Round-Trip Trade Over US$2.2bn
  • Bloks Group IPO Valuation Analysis: Is The Offering Worth Buying?
  • Helixtap China Report: 2025 A Challenging Year For China
  • CHA Biotech Announces A Capital Raise of 41% of Outstanding Shares

How Has the Index Rebalance Strategy Performed in 2024?

By Brian Freitas

  • It has been a decent year for the index rebalance strategy, though there have been some big hiccups along the way.
  • Forecasting the index changes and impacts has been important, but timing (especially momentum/value regime changes) and hedge selection have also been major factors affecting the returns of the strategy.
  • As passive AUM continues to increase, we expect focus on the strategy to continue in 2025 with market players taking different approaches to trading the potential and announced index changes.

TIP Customized Taiwan Select High Dividend Index Rebalance: US$3.2bn Trade with BIG Impact

By Brian Freitas

  • There are 8 changes a side for the TIP Customized Taiwan Select High Dividend Index in December. The TIP Taiwan Select High Dividend ETF (00919TW) has an AUM of US$9.3bn.
  • Estimated one-way turnover is 17.2% and that will result in a round-trip trade of US$3.2bn. All adds and deletes have over 5x ADV to trade from passive trackers.
  • The rebalance will be implemented over 8 trading days and the ETF started trading some stocks late last week and the rest from 17 December.

7&I (3382JP) – Spanners in the Works: FTC Blocks Another US Retail Merger and 7-11 Japan Sales Slump

By Michael Causton

  • Recent reports suggest an MBO if firming up, with partial sale of US to ACT and even the Japan CVS business so a big value solution for all concerned.
  • Not so fast: an ACT purchase of 7-11 US looks more likely to be blocked given yesterday’s ruling on the merger of grocery giants Kroger and Albertsons.
  • The valuation of the Japan business may need a correction too if the last six months of poor numbers continue – given this is because of price perception, they may.

PCOMP Index Rebalance Preview: Two Changes Likely in February

By Brian Freitas

  • The review period for the February rebalance of the Philippines Stock Exchange PSEi Index (PCOMP INDEX) ends in two weeks.
  • There could be two changes for the index with passive trackers needing to trade between 23-64x ADV in the stocks.
  • The passive buying is a lot larger than the passive selling, there will be funding outflows for the other index constituents; some stocks will have over 1x ADV to trade.

7&I (3382 JP) – Share Price Dipping Deeper Means Dipping Toes Deeper

By Travis Lundy

  • Seven & I Holdings (3382 JP) shares are in a lull here. Winter doldrums without news as the Ito consortium gets its ducks in a row and 7&i sells York.
  • Alimentation Couche-Tard (ATD CN) is waiting patiently. They have the ability to wait, and to fund, and pay up. 
  • An article/show is causing a dip today on top of last week’s weakness. This is a dip to buy.

SET50 Index Rebalance: Four Changes; Cal Comp🚀

By Brian Freitas

MV US Listed Semiconductor 25 Index Rebalance: Round-Trip Trade Over US$2.2bn

By Brian Freitas

Bloks Group IPO Valuation Analysis: Is The Offering Worth Buying?

By Andrei Zakharov

  • Bloks Group, a fast-growing toy company in China, will disclose the proposed size and the initial price range for the share sale soon.
  • In my insight, I discuss IPO valuation, update relative valuation table and set a target valuation for Bloks Group ahead of an IPO.
  • Bloks Group enjoys higher relative growth profile and superior gross profit margins. The company has over RMB600M in cash and equivalents and no debt.  

Helixtap China Report: 2025 A Challenging Year For China

By Arusha Das

  • Widespread caution around Chinese buying sentiment 
  • Weakness in Yuan can pose significant challenge
  • Trade data not very optimistic

CHA Biotech Announces A Capital Raise of 41% of Outstanding Shares

By Douglas Kim

  • On 20 December, Chabiotech (085660 KS) announced that it plans to conduct a rights offering capital raise of 250 billion won. 
  • The expected rights offering price is 10,800 won (27.3% lower than current price of 14,860 won). A total of 23.148 million new shares (41% of outstanding shares) will be issued.
  • This capital raise by CHA Biotech is likely to further negatively impact the company’s share price in the next several weeks as many investors are concerned about excessive shares dilution. 

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

Sign Up for Free

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
Sign Up for Free



Dec 22
0

Daily Brief Industrials: Malaysia Airports Holdings, ZIM Integrated Shipping Services and more

By | Daily Briefs, Industrials

In today’s briefing:

  • Malaysia Airports (MAHB MK): IFA Says NOT Fair, But Reasonable; And To Accept Terms
  • Monthly Container Shipping Tracker: November Pricing Weaker | January ILA Strike? (December 2024)

Malaysia Airports (MAHB MK): IFA Says NOT Fair, But Reasonable; And To Accept Terms

By David Blennerhassett

  • Back on the 15th May, a consortium (Khazanah Nasional, EPF, the Abu Dhabi Investment Authority, and Global Infrastructure Partners) collectively holding 41.22%, launched an Offer for Malaysia Airports (MAHB MK).
  • After some political gymnastics, MAHB squared away the necessary regulatory approvals, and a firm Offer was made on the 15th November. The Offer Doc dispatched on the 6th December. 
  • In the Circular on Friday, the IFA said NOT fair – with reference to a SOTP; but reasonable referencing historical market pricing and that no competing Offer will emerge. 

Monthly Container Shipping Tracker: November Pricing Weaker | January ILA Strike? (December 2024)

By Daniel Hellberg

  • November’s pricing weakness vs Summer peak is among the sharpest declines in 10+ years
  • A work stoppage at some US ports could hit in January, but impact likely muted
  • Share prices under pressure as investors begin pricing in softer conditions in 2025

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

Sign Up for Free

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
Sign Up for Free


Dec 22
0

Daily Brief Industrials: Malaysia Airports Holdings, ZIM Integrated Shipping Services and more

By | Daily Briefs, Industrials

In today’s briefing:

  • Malaysia Airports (MAHB MK): IFA Says NOT Fair, But Reasonable; And To Accept Terms
  • Monthly Container Shipping Tracker: November Pricing Weaker | January ILA Strike? (December 2024)

Malaysia Airports (MAHB MK): IFA Says NOT Fair, But Reasonable; And To Accept Terms

By David Blennerhassett

  • Back on the 15th May, a consortium (Khazanah Nasional, EPF, the Abu Dhabi Investment Authority, and Global Infrastructure Partners) collectively holding 41.22%, launched an Offer for Malaysia Airports (MAHB MK).
  • After some political gymnastics, MAHB squared away the necessary regulatory approvals, and a firm Offer was made on the 15th November. The Offer Doc dispatched on the 6th December. 
  • In the Circular on Friday, the IFA said NOT fair – with reference to a SOTP; but reasonable referencing historical market pricing and that no competing Offer will emerge. 

Monthly Container Shipping Tracker: November Pricing Weaker | January ILA Strike? (December 2024)

By Daniel Hellberg

  • November’s pricing weakness vs Summer peak is among the sharpest declines in 10+ years
  • A work stoppage at some US ports could hit in January, but impact likely muted
  • Share prices under pressure as investors begin pricing in softer conditions in 2025

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

Sign Up for Free

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
Sign Up for Free


Dec 22
0

Daily Brief Health Care: HealthCare Global Enterprises and more

By | Daily Briefs, Healthcare

In today’s briefing:

  • Healthcare Global (HCG): Strong Q2FY25 Led by Operating Leverage

Healthcare Global (HCG): Strong Q2FY25 Led by Operating Leverage

By Ankit Agrawal, CFA

  • As HCG’s scale is growing and as its emerging centers are maturing, profitability is improving. Adjusted EBITDA crossed INR 100cr mark for the first time ever.
  • EBITDA grew by 21% YoY in Q2FY25 with EBITDA margin improving to 18.8% vs 17.8% YoY. Q2FY25 revenue also grew healthy at 14% YoY to reach INR 550cr+.
  • HCG also announced acquisition of a cancer hospital in Vizag that is margin accretive. Including this acquisition, EBITDA margin is 19% and proforma revenue growth is 20% YoY.

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

Sign Up for Free

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
Sign Up for Free


Dec 22
0

Daily Brief TMT/Internet: Tencent, Pentamaster International, Fuji Soft Inc, Intel Corp and more

By | Daily Briefs, TMT/Internet

In today’s briefing:

  • HK Connect SOUTHBOUND Flows (To 20 Dec 2024); Financials and Telecoms Still Tops
  • Pentamaster International (1665 HK): Pentamaster Corp and AchiCapital’s Light Scheme Offer
  • (Mostly) Asia-Pac M&A: Beenos, Insignia, Henlius, GAPack, Fuji Soft, Goldlion, Malaysia Airports
  • Intel (INTC.US): Exploring a Tough Journey.

HK Connect SOUTHBOUND Flows (To 20 Dec 2024); Financials and Telecoms Still Tops

By Travis Lundy

  • SOUTHBOUND gross trading activity fell 20% week-on-week this week. Net buying was a little stronger. 
  • Alibaba Group Holding (9988 HK) was a net SOUTHBOUND sell this week for the first weekly sell since it became Southbound-eligible. Friday was the largest one-day sell in that period.
  • Tech is still on the sell side and financials are still being bought very bigly.

Pentamaster International (1665 HK): Pentamaster Corp and AchiCapital’s Light Scheme Offer

By Arun George

  • Pentamaster International (1665 HK) disclosed a Cayman scheme privatisation offer from Pentamaster Corp (PENT MK) and AchiCapital at HK$1.00 (HK$0.93 cash + HK$0.07 dividend), a 56.3% premium to the undisturbed price. 
  • The offer is final but unattractive compared to peer multiples. The shareholder with a blocking stake is a seller, but there is risk due to a high AGM participation rate.
  • An arguably light offer in which the Holdco is privatising its OpCo by arbitraging the valuation discrepancies across two exchanges may not sit well with minorities.

(Mostly) Asia-Pac M&A: Beenos, Insignia, Henlius, GAPack, Fuji Soft, Goldlion, Malaysia Airports

By David Blennerhassett

Intel (INTC.US): Exploring a Tough Journey.

By Patrick Liao

  • Regardless of the circumstances, Intel Corp (INTC US) must select a new CEO and hope that a new strategy will turn the situation around.  
  • A possible decision to spin off Altera could signal the possibility of Intel further breaking into several parts.
  • For the near term, Intel must overcome financial and management challenges, and laying off 1/10 of its workforce is a short-term and necessary step.  

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

Sign Up for Free

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
Sign Up for Free


Dec 22
0

Daily Brief Consumer: Seven & I Holdings, TSE Tokyo Price Index TOPIX, Hyundai Motor, Korea Stock Exchange KOSPI 200, Ping An Healthcare and Technology, Great Wall Motor and more

By | Consumer, Daily Briefs

In today’s briefing:

  • Last Week In Event SPACE: Seven & I, CPMC, UBTech Robotics, Macromill, 2024 Best-Of
  • Companies Have Begun to Be Aware of Cash Flow, but the Reality Is that It Doesn’t Produce Results
  • A Potential Merger Between Honda and Nissan – Impact on Hyundai Motor and Kia Corp
  • HSI, Nikkei 225, NIFTY 50, Kospi 200, ASX 200, CSI 300: Year-End Trends and Holiday Market Moves!
  • China Healthcare Weekly (Dec.22) – Zai Lab, Junshi, How to Choose PA Good Doctor’s Special Dividend?
  • A/H Premium Tracker (To 20 Dec 2024): Pairwise Intracorrelation and Vol Even Higher

Last Week In Event SPACE: Seven & I, CPMC, UBTech Robotics, Macromill, 2024 Best-Of

By David Blennerhassett

  • The new article on Seven & I Holdings (3382 JP) from TV Tokyo is causing a dip on top of last week’s weakness. This is a dip to buy.
  • CPMC Holdings (906 HK)‘s Offer is now open for tendering. Ignore the rumours. Zhang Wei will tender. Expect payment before Chinese New Year. 
  • Accounting solely for the pre-IPO investors, 164.6m shares (US$1.9bn) in UBTech Robotics (9880 HK) will be unlocked, ~39.2% of the firm’s total shares outstanding, and 91 days of three-month ADV.

Companies Have Begun to Be Aware of Cash Flow, but the Reality Is that It Doesn’t Produce Results

By Aki Matsumoto

  • Operating income and depreciation, the components of operating cash flow, have been sluggish. This has undeniably dampened expectations for expanding corporate value.
  • Many companies have begun to be aware of cash flow, but have yet to see results. They are at the stage of producing results by selecting business to invest cash.
  • In terms of “not being conscious of cash flow,” shareholder returns are still strongly net income oriented and not cash flow oriented.

A Potential Merger Between Honda and Nissan – Impact on Hyundai Motor and Kia Corp

By Douglas Kim

  • A potential merger between Nissan Motor and Honda Motor would create the third largest auto group in the world.
  • If this merger is successful, it could have a short term positive impact on Hyundai Motor since it could result in a reduction of overlapping sales/marketing and production of Nissan.
  • However, a merger of Honda and Nissan could negatively impact Hyundai Motor over the long term because the merged entity could produce more high quality, price competitive vehicles.

HSI, Nikkei 225, NIFTY 50, Kospi 200, ASX 200, CSI 300: Year-End Trends and Holiday Market Moves!

By Nico Rosti

  • As the year comes to its end, the trading calendar is impacted by two shortened weeks, with the Christmas holiday and New Year’s Day both falling midweek.
  • Holidays market trends can be affected by various non-market factors but it’s always good to check the indexes probability of trend reversals, to avoid surprises.
  • In this insight, we’ll take a quick look at the major Asia-Pacific market indices—a ‘Christmas Carousel of Odds‘ for Asian markets, if you will.

China Healthcare Weekly (Dec.22) – Zai Lab, Junshi, How to Choose PA Good Doctor’s Special Dividend?

By Xinyao (Criss) Wang

  • Increasing revenue without increasing profits is “a big denial” of a company’s business model. Unless Zai Lab significantly reduces costs and maintains revenue high growth, its investment value is low.
  • Junshi’s 2024 revenue is likely to return to over RMB1.5 billion due to market share expansion in PD-1. Strict cost control will be the main theme for the future.
  • If PAGD’s share price is higher than HK$6.12, there would be arbitrage opportunity. If Ping An hopes other shareholders to choose cash dividend, future stock price may fall below HK$6.12.

A/H Premium Tracker (To 20 Dec 2024): Pairwise Intracorrelation and Vol Even Higher

By Travis Lundy

  • AH Premia are all over the place this week. Despite that, pairwise intracorrelation is…. up? Yup. Average Pairwise Volatility is up even more.
  • Some of this may be stocks being bullied by large SOUTHBOUND flows in a quieter end-of-year market. 
  • Finance is seeing big net SOUTHBOUND buying but that is not showing up in A/H premia. I expect things stay noisy through year-end.

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

Sign Up for Free

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
Sign Up for Free


Dec 22
0

Top 10 Highlights from the APAC PE, VC and Startup Ecosystem this Week – 22 Dec 2024

By | Private Markets, Smartkarma Newswire

Top ten highlights from the APAC PE, VC, and startup ecosystem this week:

  1. The Rise of AI and Green Energy: AI reshaped industries, while the global focus shifted to green energy and electric vehicles amid rising temperatures.
  2. Trump’s Return and Investment Implications: Donald Trump’s return to the White House had implications on investments in China.
  3. Funding Winter in Southeast Asia: The region faced an unrelenting funding winter, challenging startups.
  4. Startups Prioritizing Profitability: 2024 saw a push for startups to prioritize profitability over unchecked growth.
  5. Governance Importance: eFishery, an Indonesian unicorn, suspended its co-founders amidst a financial misreporting investigation, highlighting the need for governance.
  6. Unicorn Minted in Southeast Asia: A new unicorn emerged in Southeast Asia, while AI and EV startups raised record funding rounds.
  7. Significant Secondaries Deals in Asia: A look into 2024’s significant secondaries deals in Asia, signaling future trends.
  8. Big-ticket Transactions in India: India witnessed 32 megadeals worth $6.54 billion, with Zepto’s $665-million fundraising being the largest.
  9. LP-GP Updates: Notable LP-GP updates included fund closures, investments, and commitments in various regions.
  10. Startup News and Funding: Key highlights included a unicorn entry in Southeast Asia, major funding rounds, and investments in AI and fintech startups.

APAC Private Markets Research

Explore latest Insights on APAC Private Markets on Smartkarma

Explore Now

Disclaimer:This article by is general in nature and based on publicly available information and not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material. While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
Have feedback on this article? Concerned about the content? Get in touch with us directly.

 

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

Sign Up for Free

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
Sign Up for Free

Also, check out the latest in ECM Research on Smartkarma