Category

Daily Briefs

Dec 10
0

Daily Brief Financials: Apollo Global Management , Nikkei 225, Bitcoin, Greentown China and more

By | Daily Briefs, Financials

In today’s briefing:

  • S&P500/400/600 Index Rebalance: Apollo Global, Workday Added to SPX; AppLovin Misses Out
  • S&P500 Dec24 Rebalance: APO and WDAY IN; QRVO and AMTM Demoted
  • EQD | Nikkei Index Options Weekly – Dec 02 – 06
  • Crypto Moves #55 – The Charts That Determine Whether We End 2024 Above $100,000
  • Lucror Analytics – Morning Views Asia

S&P500/400/600 Index Rebalance: Apollo Global, Workday Added to SPX; AppLovin Misses Out

By Brian Freitas

  • There are 2 changes for the S&P 500 INDEX, 2 changes for the S&P Midcap400 Index and 6 changes for the S&P SmallCap600 Index at the December rebalance.
  • Apollo Global and Workday will have large flows from S&P 500 INDEX trackers while AppLovin misses out. The SPX adds will have large inflows from the Select Sector index trackers too.
  • The outright adds are up a lot in the after-hours and there could be further upside over the next couple of weeks as positioning ramps up.

S&P500 Dec24 Rebalance: APO and WDAY IN; QRVO and AMTM Demoted

By Travis Lundy

EQD | Nikkei Index Options Weekly – Dec 02 – 06

By John Ley

  • Price action has been mired in a sideways range since hitting these levels in Feb 2024.  Implied’s have come full circle and are at the same levels they were in Feb.
  • Option volumes over the past week look to be playing for a break above the sideways range of the last two months or a break below it.
  • Skew is very steep with heavy Put volumes and open interest at levels under the current range.

Crypto Moves #55 – The Charts That Determine Whether We End 2024 Above $100,000

By Mads Eberhardt

  • Just two days ago, Bitcoin surged past the $100,000 milestone for the first time, reaching a peak of $104,000.
  • This achievement is highly significant, not only because it represents a critical psychological threshold but also due to the immense media attention such milestones attract.
  • Historically, this kind of coverage has often spurred increased interest from retail investors, who may be prompted to purchase Bitcoin as a result.

Lucror Analytics – Morning Views Asia

By Leonard Law, CFA

  • In the US, the November nonfarm payrolls came in marginally above expectations at 227 k (220 k e), and were up significantly from the upwardly revised 36 k figure for October (which was impacted by two hurricanes and a strike at Boeing).
  • Still, the three-month average payroll growth slowed from earlier in the year to 173 k.
  • Meanwhile, the unemployment rate inched up to 4.2% (4.1% e / 4.1% p). Average hourly earnings growth remained steady at 0.4% m-o-m (0.3% e / 0.4% p) and 4.0% y-o-y (3.9% e / 4.0% p).

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Dec 10
0

Daily Brief Energy/Materials: CPMC Holdings, China National Building Material, SGX Rubber Future TSR20, Quadrise Fuels International, Mec Co Ltd, Condor Energies , Pan American Silver and more

By | Daily Briefs, Energy & Materials Sector

In today’s briefing:

  • CPMC Holdings (906 HK): Steady Nerves Required
  • CNBM (3323 HK)’s Buyback Ups Parent’s Stake >50%
  • Farmers Pull Off A Price Hike In India Amid Favorable External Trend
  • Quadrise – Pathway to marine revenues and scale-up
  • MEC Co., Ltd (4971 JP): Research Update Post FY24 Q3 Earnings
  • Condor Energies Inc. (TSX: CDR): Equity financing to accelerate production growth and bolster the balance sheet
  • Pan American Silver – Consistency boosting returns

CPMC Holdings (906 HK): Steady Nerves Required

By Arun George

  • ORG Technology Co., Ltd. A (002701 CH)’s offer for CPMC Holdings (906 HK) has one remaining precondition: SAFE approval.
  • Mr Wei’s irrevocable was terminated. Nevertheless, as a seller, he will accept the offer, as the shares trade below the offer price, and there is no competing offer. 
  • The precondition long stop date is 6 January, sufficient time to satisfy the precondition. It would be highly unusual to secure MOFCOM and NDRC approval but not SAFE approval.

CNBM (3323 HK)’s Buyback Ups Parent’s Stake >50%

By David Blennerhassett

Farmers Pull Off A Price Hike In India Amid Favorable External Trend

By Vinod Nedumudy

  • NR prices stage a comeback but then undergo correction
  • Rubber Board convenes series of producer meets to tackle challenges
  • Rubber Board proposes a fee to issue NOC to import NR

Quadrise – Pathway to marine revenues and scale-up

By Edison Investment Research

Quadrise has made a significant step towards commercialisation, through which its innovative emulsion fuel technology will contribute to the decarbonisation of the marine sector. The company announced that it has signed a Collaboration and Operational Trial Agreement (the project agreement) with MSC Shipmanagement and Cargill, paving the way for the highly anticipated vessel trials on board the MSC Leandra. The market recognised the significance of this agreement, with Quadrise’s stock price rallying by approximately 50% on the day of the announcement.

MEC Co., Ltd (4971 JP): Research Update Post FY24 Q3 Earnings

By Nippon Investment Bespoke Research UK

  • The +118.3% YoY growth in FY24 Q1~Q3 operating profit [OP] of ¥3,649mil on sales of ¥13,682mil (+37.1% YoY)] was due to easy comps, rather than a full recovery, especially in demand associated with PCs and servers used in general data centre.
  • One of the growth drivers in FY24 is package demand associated with generative AI, to which MEC’s core products, CZ-8101 and CZ-8401 chemicals are used.
  • MEC has maintained its FY24 guidance for a consolidated annual dividend payment of ¥45/share.

Condor Energies Inc. (TSX: CDR): Equity financing to accelerate production growth and bolster the balance sheet

By Auctus Advisors

  • • Condor has completed a C$19.4 mm equity financing priced at C$1.90 per share.
  • This represents a C$2 mm increase compared the latest announcement.
  • • The proceeds of the raise will allow the company to bring to Uzbekistan a third service rig in 1Q25 and a drilling rig in 2Q25 (4Q25 previously).

Pan American Silver – Consistency boosting returns

By Edison Investment Research

After a couple of transitional years, Pan American Silver (PAAS) is in a much better position to deliver more consistent operational and cost performance as the Yamana assets are integrated, La Colorada ventilation issues are resolved and the asset portfolio is largely streamlined. We are upgrading our estimates on higher commodity price assumptions and raising our valuation to US$26.0/share. The stock has been derated on improving earnings momentum and is now trading at below average historical multiples. The recent M&A provides additional valuation support.

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Dec 10
0

Daily Brief Industrials: Doosan Robotics , Doosan Enerbility, Crompton Greaves, Fluence Corp and more

By | Daily Briefs, Industrials

In today’s briefing:

  • Flow Dynamics from NPS Exercising Appraisal Rights on Doosan Merger
  • Doosan Group Is Likely To Cancel Its Restructuring Plans
  • AMFI Stock Reclassification Preview (Dec 2024): Recent Large IPOs Lead to Big Downward Shift
  • Fluence Corp Ltd – Material project gets the green light

Flow Dynamics from NPS Exercising Appraisal Rights on Doosan Merger

By Sanghyun Park

  • If stocks close above the appraisal prices on the 10th, NPS will support the merger; otherwise, they’ll abstain to secure their appraisal rights.
  • Due to cancellation risk hitting the ceiling, NPS will likely exercise half its position and start buybacks after the results.
  • With both stocks heavily weighted in KOSPI 200, NPS is likely to opt for a tight buyback window, boosting chances for upward price action on Doosan’s shares in that period.

Doosan Group Is Likely To Cancel Its Restructuring Plans

By Douglas Kim

  • In the next several days, it is likely that the Doosan Group is likely to cancel its restructuring plan involving Doosan Enerbility, Doosan Bobcat, and Doosan Robotics.
  • As a result of the sharp decline in share prices of major Doosan Group companies, the cost of appraisal rights may be too much for the Doosan Group.
  • Despite the negative impact of recent political events in Korea, a cancellation of  Doosan Group restructuring plan could have a near-term positive impact on all the major Doosan Group companies.

AMFI Stock Reclassification Preview (Dec 2024): Recent Large IPOs Lead to Big Downward Shift

By Brian Freitas

  • We see 7 stocks moving from MidCap to LargeCap, 11 stocks moving from LargeCap to MidCap, 4 stocks from SmallCap to MidCap, and 11 stocks from MidCap to SmallCap.
  • From the new listings, 4 stocks are expected to be added to Large Cap, 3 stocks to Mid Cap, and multiple stocks to Small Cap.
  • There are multiple stocks among the AMFI changes that will be changes for the NSE Nifty Next 50 Index (NIFTYJR INDEX) and/or Nifty Midcap 150 Index in March.

Fluence Corp Ltd – Material project gets the green light

By Research as a Service (RaaS)

  • RaaS has published a flash comment on environmental services company Fluence Corporation (ASX:FLC) following its recent announcement it has received the notice to proceed from ONEP, The Ivory Coast National Drinking Water Organisation, in respect to the €48.4m addendum to its contract to construct the 150,000 m3/day Lagube D’Aghien Water Treatment Plant.
  • This is a critical step in the progress of the previously delayed IVC project.
  • The project delay was the main driver behind the recent company downgrade, so its progress is a material positive.

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Dec 10
0

Daily Brief TMT/Internet: Workday Inc Class A, Intel Corp, Tencent, Hang Seng China Enterprises Index, LG Chem Ltd, Asm International Nv, QuantumPharm, ServiceTitan, SPAR Group and more

By | Daily Briefs, TMT/Internet

In today’s briefing:

  • Select Sector Indices and S&P Equal Weight Rebalance: US$16bn Trade; More Buying for APO and WDAY
  • Intel Ex-CEO Calls For 24 Hours Of Prayer & Fasting For Intel’s Remaining 100k Employees
  • EQD | Hong Kong Single Stock Options Weekly Dec 02 – 06
  • EQD | Hong Kong Index Options Weekly – HSI and HSCEI Dec 02-06, Sell HSCEI Vol
  • Tech Supply Chain Tracker (10-Dec-2024): LGES buys GM’s plant post-Trump win.
  • What’s New(s) in Amsterdam – 9 December (ASM International | ASML Holding | BE Semiconductor Industries | Black Friday/Sinterklaas update)
  • QuantumPharm US$750m Lockup Expiry – Financial Investors Checked 35% of Stock into CCASS
  • ServiceTitan Valuation Analysis: Attractive First-Day Return, Initial Price Range: $52.00-$57.00
  • Highwire Capital’s Acquisition of SPAR Group Faces Uncertainty Amid Financing Issues and Founder Stock Sales

Select Sector Indices and S&P Equal Weight Rebalance: US$16bn Trade; More Buying for APO and WDAY

By Brian Freitas

  • Constituent changes to the S&P 500 INDEX and capping changes will result in a round-trip trade of US$15.9bn across the Select Sector indices and the S&P500 Equal Weight Index.
  • The Select Sector index trackers and S&P 500 Equal Weight trackers will need to buy Apollo Global Management and Workday, adding to the buying from S&P 500 INDEX trackers.
  • The flows will change over the next week as stock prices move around and final capping is done after the close on 13 December.

Intel Ex-CEO Calls For 24 Hours Of Prayer & Fasting For Intel’s Remaining 100k Employees

By William Keating

  • Pat Gelsinger took to X to invite us to join him in 24 hours of “praying and fasting” for Intel’s 100k employees to help them navigate “this difficult period”
  • This is an unprecedented move never before seen in the semiconductor world, albeit we suspect that IBM may have dabbled in something similar to resurrect their 2nm process prowess
  • This coming Thursday is the proposed date. Don’t expect miracles, this could take until the following Monday for the full impact to manifest itself in terms of share price appreciation

EQD | Hong Kong Single Stock Options Weekly Dec 02 – 06

By John Ley

  • Strong price action across the market this week coupled with implied vols having caught down to historic vols has put a floor on implied vols.
  • Tencent sees strong call buying in December 410 and 420 Calls with month end 400 strike Put buying for December and January.
  • Cathay Pacific, +21% over past 3 weeks, HSBC, at 52-week high plus up 38% on the year and BABA, down 21% from Oct 02 high all active names.

EQD | Hong Kong Index Options Weekly – HSI and HSCEI Dec 02-06, Sell HSCEI Vol

By John Ley

  • Although vols have stabilized this week both HSI and HSCEI are still trading about 3-4 vol above where they were pre-stimulus and are still not monetizing.
  • Strong price action this wek helped keep a floor under implied vols. 
  • Positions were added in both HSI and HSCEI with demand tilted towards up-strike Calls given the rally on the week.

Tech Supply Chain Tracker (10-Dec-2024): LGES buys GM’s plant post-Trump win.

By Tech Supply Chain Tracker

  • LGES takes over GM battery plant in response to Trump’s win, expanding its presence in the US market.
  • India establishes a sovereign AI ecosystem, driving ambitions forward for technological advancements in the country.
  • Samsung’s One UI 7 Beta introduces AI enhancements and improved security features in anticipation of the Galaxy S25 release.

What’s New(s) in Amsterdam – 9 December (ASM International | ASML Holding | BE Semiconductor Industries | Black Friday/Sinterklaas update)

By The IDEA!

  • In this edition: • ASM International / ASML Holding / BE Semiconductor Industries | brightened outlook for semiconductor equipment sales • Black Friday/Sinterklaas update | fewer debit card payments during Sinterklaas week

QuantumPharm US$750m Lockup Expiry – Financial Investors Checked 35% of Stock into CCASS

By Clarence Chu

  • QuantumPharm (2228 HK) listed in Hong Kong after raising US$126m towards the bottom end of its IPO price range. Its six-month lockup will expire on 12th Dec 2024.
  • QuantumPharm is a R&D platform, utilizing quantum physics-based first-principles calculation, advanced AI, high-performance cloud computing, and scalable and standardized robotic automation to provide drug and material science R&D solutions.
  • In this note, we will talk about the lock-up dynamics and updates since our last note.

ServiceTitan Valuation Analysis: Attractive First-Day Return, Initial Price Range: $52.00-$57.00

By Andrei Zakharov

  • ServiceTitan, a founder-led market leader for trades businesses in the United States and Canada, is expected to IPO this week.
  • The company’s amended S-1 puts the initial price range per share at $52.00 to $57.00, implying a market cap of roughly $5B at the midpoint.  
  • I have a positive view of upcoming ServiceTitan IPO and expect an attractive first trading-day return. The stock will begin trading on the Nasdaq on Thursday.  

Highwire Capital’s Acquisition of SPAR Group Faces Uncertainty Amid Financing Issues and Founder Stock Sales

By Dalius Tauraitis

  • Highwire Capital’s $2.50/share offer for SGRP is 60% higher than previous bids, raising concerns about financing.
  • Founders William Bartels and Robert Brown sold significant SGRP shares below offer price, undermining confidence in the transaction.
  • SGRP’s stagnant business faces challenges with declining EBITDA margins and volatile free cash flow, impacting valuation.

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Dec 10
0

Daily Brief Health Care: Shanghai Fosun Pharmaceutical (Group), ASKA Pharmaceutical Holdings Co Ltd, CEL-SCI , MediciNova , Nurexone Biologic and more

By | Daily Briefs, Healthcare

In today’s briefing:

  • Shanghai Fosun Pharmaceutical (2196.HK) – Performance Pain Points and Henlius’ Privatization Outlook
  • ASKA Pharmaceutical (4886) | Healthy Returns
  • CVM: CRO Selected for Registrational Trial
  • MNOV: Encouraging Interim Analysis for Phase 2b/3 ALS Trial
  • NRXBF: New Test Results Opens Potential New Market

Shanghai Fosun Pharmaceutical (2196.HK) – Performance Pain Points and Henlius’ Privatization Outlook

By Xinyao (Criss) Wang

  • Fosun Pharma is just “a platform” and its performance mainly relies on the contributions of subsidiaries. However, such investment-driven business model has led to the current performance difficulties.
  • Although the motivation/underlying logic for Fosun Pharma to privatize Henlius are solid, we don’t know how this privatization ranks in terms of strategic significance of capital operations within Fosun’s system.
  • If, for example, Fosun Pharma finds more important acquisitions/capital expenditures, the priority of Henlius’ privatization could fall. So, we think if it takes too long, there may be more uncertainties.

ASKA Pharmaceutical (4886) | Healthy Returns

By Mark Chadwick

  • ASKA Pharmaceutical Holdings represents an attractive investment opportunity with substantial upside potential
  • The company combines solid growth, strong profitability, and clear avenues for shareholder value enhancement.
  • With Nippon Active Value’s increasing involvement and the stock trading at deeply discounted valuations, ASKA is well-positioned for a re-rating.

CVM: CRO Selected for Registrational Trial

By Zacks Small Cap Research

  • CEL-SCI is developing two platforms: Multikine and LEAPS.
  • Multikine has completed a Phase 3 trial for head and neck cancer while LEAPS is conducting preclinical studies for RA, Pandemic Flu and breast cancer.
  • In June 2021, CEL-SCI reported selected data from its IT-MATTERS trial demonstrating a benefit in the low PD-L1, non-chemotherapy population.

MNOV: Encouraging Interim Analysis for Phase 2b/3 ALS Trial

By Zacks Small Cap Research

  • On December 5, 2024, MediciNova, Inc. (MNOV) announced a study update and interim analysis from the Phase 2b/3 COMBAT-ALS trial were scheduled to be presented at the 35th International Symposium on ALS/MND.
  • As of Nov.
  • 15, 2024, 217 participants had been enrolled and 183 participants were assigned to either MN-166 or placebo.

NRXBF: New Test Results Opens Potential New Market

By Zacks Small Cap Research

  • NurExone (OTC-NRXBF) is a preclinical stage biotech company that is developing a breakthrough treatment for spinal cord injuries that has the potential to dramatically improve lives.
  • The technology involved also has the potential to more efficiently get other treatments to the needed area.
  • The company is also expanding its potential treatments with ExoPTEN and announced preclinical results that showed promise in repairing optic nerve damage.

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Dec 10
0

Daily Brief Industrials: Doosan Robotics , Doosan Enerbility, Crompton Greaves, Fluence Corp and more

By | Daily Briefs, Industrials

In today’s briefing:

  • Flow Dynamics from NPS Exercising Appraisal Rights on Doosan Merger
  • Doosan Group Is Likely To Cancel Its Restructuring Plans
  • AMFI Stock Reclassification Preview (Dec 2024): Recent Large IPOs Lead to Big Downward Shift
  • Fluence Corp Ltd – Material project gets the green light

Flow Dynamics from NPS Exercising Appraisal Rights on Doosan Merger

By Sanghyun Park

  • If stocks close above the appraisal prices on the 10th, NPS will support the merger; otherwise, they’ll abstain to secure their appraisal rights.
  • Due to cancellation risk hitting the ceiling, NPS will likely exercise half its position and start buybacks after the results.
  • With both stocks heavily weighted in KOSPI 200, NPS is likely to opt for a tight buyback window, boosting chances for upward price action on Doosan’s shares in that period.

Doosan Group Is Likely To Cancel Its Restructuring Plans

By Douglas Kim

  • In the next several days, it is likely that the Doosan Group is likely to cancel its restructuring plan involving Doosan Enerbility, Doosan Bobcat, and Doosan Robotics.
  • As a result of the sharp decline in share prices of major Doosan Group companies, the cost of appraisal rights may be too much for the Doosan Group.
  • Despite the negative impact of recent political events in Korea, a cancellation of  Doosan Group restructuring plan could have a near-term positive impact on all the major Doosan Group companies.

AMFI Stock Reclassification Preview (Dec 2024): Recent Large IPOs Lead to Big Downward Shift

By Brian Freitas

  • We see 7 stocks moving from MidCap to LargeCap, 11 stocks moving from LargeCap to MidCap, 4 stocks from SmallCap to MidCap, and 11 stocks from MidCap to SmallCap.
  • From the new listings, 4 stocks are expected to be added to Large Cap, 3 stocks to Mid Cap, and multiple stocks to Small Cap.
  • There are multiple stocks among the AMFI changes that will be changes for the NSE Nifty Next 50 Index (NIFTYJR INDEX) and/or Nifty Midcap 150 Index in March.

Fluence Corp Ltd – Material project gets the green light

By Research as a Service (RaaS)

  • RaaS has published a flash comment on environmental services company Fluence Corporation (ASX:FLC) following its recent announcement it has received the notice to proceed from ONEP, The Ivory Coast National Drinking Water Organisation, in respect to the €48.4m addendum to its contract to construct the 150,000 m3/day Lagube D’Aghien Water Treatment Plant.
  • This is a critical step in the progress of the previously delayed IVC project.
  • The project delay was the main driver behind the recent company downgrade, so its progress is a material positive.

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Dec 10
0

Daily Brief Consumer: BYD, Sanrio, Vishal Mega Mart, Mao Geping Cosmetics, LG Electronics India, Trent Ltd, Sarimelati Kencana PT, JAKKS Pacific , Dream International and more

By | Consumer, Daily Briefs

In today’s briefing:

  • China Consumption Weekly (9 Dec 2024): BYD, Geely, Li Auto, Seres, Xiaomi, Arawana
  • Sanrio (8136 JP) Placement: Price Likely Determined Today; What Next?
  • Vishal Mega Mart IPO – Showcasing the Wrong Peers, Somewhat Limited Upside
  • Mao Geping Cosmetics IPO Trading – Highest Demand for This Year
  • LG Electronics India IPO Preview
  • Trent Ltd (TRENT IN) | LGD Can Be the Next Catalyst
  • Sarimelati Kencana PT (PZZA IJ) – Emerging from the Oven
  • LG Electronics India Pre-IPO Tearsheet
  • JAKK: Cautiously Optimistic in an Uncertain World; Reiterate Buy, $40 PT
  • Dream International (1126 HK): Updates Postcard From Hong Kong

China Consumption Weekly (9 Dec 2024): BYD, Geely, Li Auto, Seres, Xiaomi, Arawana

By Ming Lu

  • BYD’s deliveries grew by 68% YoY in November 2024, which provides a positive signal for the whole NEV (New Energy Vehicle) industry.
  • In November, Seres’ sales volume increased by 27% YoY with NEV up by 55% YoY.
  • Arawana, the top cooking oil producer, finished acquiring 11% of Lihua’s stock.

Sanrio (8136 JP) Placement: Price Likely Determined Today; What Next?

By Brian Freitas

  • The Sanrio (8136 JP) placement is likely to be priced today. With the stock 8.8% lower from undisturbed, expect a small discount to today’s close.
  • The stock has traded as expected over the last 9 trading days – a sharp drop followed by a strong upward move and then profit taking.
  • We expect there will be strong interest in the placement and oversubscription could lead to upside from here. Shorts have increased and will look to cover into the placement.

Vishal Mega Mart IPO – Showcasing the Wrong Peers, Somewhat Limited Upside

By Sumeet Singh

  • Vishal Mega Mart is planning to raise around US$950m through its upcoming IPO in India.
  • Vishal Mega Mart Limited (VMM), is a one-stop retail destination. As per the company it targets middle and lower-middle income consumers across India
  • We have looked at the company’s past performance in our previous notes. In this note, we will talk about the IPO valuations.

Mao Geping Cosmetics IPO Trading – Highest Demand for This Year

By Sumeet Singh

  • Mao Geping Cosmetics raised around US$345m in its Hong Kong IPO.
  • Mao Geping Cosmetics (MGC) operates in the premium beauty segment. Operating via its two brands, MAOGEPING and Love Keeps, MGC offers a wide range of color cosmetics and skincare products.
  • We have looked at the company’s past performance in our previous notes. In this note, we will talk about the trading dynamics.

LG Electronics India IPO Preview

By Douglas Kim

  • LG Electronics India is getting ready to complete an IPO in India in the next several months. The IPO offering size is expected to be about US$1.8 billion.
  • LG Electronics (066570 KS) plans to sell 101.8 million shares, accounting for about 15% of the post-offer paid up equity capital shares of LG Electronics India.
  • If LGEI is valued at US$13 billion, then an 85% of this stake would be worth US$11.1 billion, which would be worth more than LG Electronics’s own market cap. 

Trent Ltd (TRENT IN) | LGD Can Be the Next Catalyst

By Pranav Bhavsar

  • Trent Ltd (TRENT IN) is best positioned to capitalize on the growing market for lab-grown diamonds (LGD) and alter its business growth trajectory.
  • LGD disruptions seen in other markets are unlikely to be seen in India due to the positioning of Jewellery in Household asset allocation. 
  • We also believe that Trent Ltd (TRENT IN)  LGD potential is underrated while the impact on Titan Co Ltd (TTAN IN)  is overrated.

Sarimelati Kencana PT (PZZA IJ) – Emerging from the Oven

By Angus Mackintosh

  • Sarimelati Kencana PT (PZZA IJ) has been hard hit over the last year by the impact of the boycott due to a perception of its Israel exposure. 
  • The company has focused on reducing its cost base over the past year and continued to build its higher-end Ristorante format, with the boycott impact lessening since June 2024.
  • PZZA management maintains that it can hit profitability in 4Q2024, with this momentum continuing into 2025, with a target to increase its new formats helping to drive recovery. 

LG Electronics India Pre-IPO Tearsheet

By Sumeet Singh

  • LG Electronics (066570 KS) is looking to raise US$1.5bn+ via part-selling its stake in LG Electronics India IPO. The deal will be run by MS, JPM, Axis, BofA and Citi.
  • LG Electronics India (LGEI) was the market leader in India in major home appliances and consumer electronics (excluding mobile phones) in terms of volume in 1Q25, as per Redseer Report.
  • LGEI has been the number one player in this industry for 13 consecutive years (CY11-CY23) as per the value market share in the offline channel in India, as per Redseer.

JAKK: Cautiously Optimistic in an Uncertain World; Reiterate Buy, $40 PT

By Small Cap Consumer Research

  • We are reiterating our Buy rating, $40 price target and projections for JAKKS Pacific after meeting with company management.
  • We believe, with easy 1H2025 comparisons, the initial strength of the Moana 2 premiere, a continued focus on key emerging growth drivers (international, ABG collaboration) and basic blocking and tackling, JAKKS is well positioned to continue to drive upside.
  • Further, with the company debt free and registering material free cash flow, there remains opportunities to return capital to investors.

Dream International (1126 HK): Updates Postcard From Hong Kong

By Sameer Taneja

  • We met with the management of Dream International (1126 HK) on our trip to Hong Kong and summarize our major takeaways. 
  • The Plush Toy segment continues to experience growth driven by Disney revenues, but the Plastic Toys segment continues to be plagued by destocking. 
  • Despite a 15% YoY earnings decline on our numbers, the stock trades at 5x FY24 PE with an 11.0% dividend yield and 40% of the market cap in net cash. 

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Dec 09
0

Daily Brief Quantitative Analysis: KRX Foreign Holding Weekly (Dec 6th): SK Hynix and more

By | Daily Briefs, Quantitative Analysis

In today’s briefing:

  • KRX Foreign Holding Weekly (Dec 6th): SK Hynix, Naver, Samsung Electronics, KB Financial
  • Thailand Short Interest Weekly (Dec 6th): Carabao, Delta Electronics, SCC, SCG Packaging
  • TWSE Foreign Holding Weekly (Dec 6th): TSMC, Asia Vital Components, Mediatek, Elite Material
  • TWSE Short Interest Weekly (Dec 6th): Hon Hai Precision Industry, Asia Vital Components

KRX Foreign Holding Weekly (Dec 6th): SK Hynix, Naver, Samsung Electronics, KB Financial

By Ke Yan, CFA, FRM

  • We analyzed the changes in foreign holdings of KRX stocks as of Dec 6th which has an aggregated holding worth USD463.4bn.
  • We estimate that foreign flows to be outflows of USD711mln. We tabulate the league table for top changes by value for 1W/4W/1Y and top stocks held by foreign institutions.
  • We highlight changes of foreign holdings in SK Hynix, Naver, Samsung Electronics, KB Financial.

Thailand Short Interest Weekly (Dec 6th): Carabao, Delta Electronics, SCC, SCG Packaging

By Ke Yan, CFA, FRM

  • We analyzed the changes in short interest of Stock Exchange of Thailand as of Dec 6th.We estimate that they had an aggregated short interest worth USD2.2bn.
  • We tabulate league table for top short by value and short as multiple of ADT, as well as weekly increases & decreases in short value, short as multiple of ADT.
  • We highlight short interest changes in Carabao, Delta Electronics, SCC, SCG Packaging.

TWSE Foreign Holding Weekly (Dec 6th): TSMC, Asia Vital Components, Mediatek, Elite Material

By Ke Yan, CFA, FRM

  • We analyzed the changes in foreign holdings of TWSE Stocks as of Dec 6th which has an aggregated holding worth USD1,025.5bn.
  • We estimate that foreign flows to be inflows of USD1,710mln. We tabulate the league table for top changes by value for 1W/4W/1Y and top stocks held by foreign institutions.
  • We highlight changes of foreign holdings in TSMC, Asia Vital Components, Mediatek, Elite Material, China Airlines, Accton Technology, Hon Hai Precision Industry.

TWSE Short Interest Weekly (Dec 6th): Hon Hai Precision Industry, Asia Vital Components

By Ke Yan, CFA, FRM

  • We analyzed the changes in short interest of TWSE Stocks as of Dec 6th which has an aggregated short interest worth USD22.3bn.
  • We tabulate league table for top short by value and short as multiple of ADT, as well as weekly increases & decreases in short value, short as multiple of ADT.
  • We highlight short interest changes in Hon Hai Precision Industry, Asia Vital Components, Elite Material, Asustek Computer.

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Dec 09
0

Daily Brief ESG: “Parent-Subsidiary Listing” Heaven Continues to Provide Rich Investment Performance for Investors and more

By | Daily Briefs, ESG

In today’s briefing:

  • “Parent-Subsidiary Listing” Heaven Continues to Provide Rich Investment Performance for Investors
  • Keppel Infrastructure Trust – Desalination Plant Disappears into Murky Off Balance Sheet Waters

“Parent-Subsidiary Listing” Heaven Continues to Provide Rich Investment Performance for Investors

By Aki Matsumoto

  • With the TSE shortly declaring the conclusion of discussions regarding parent-subsidiary listings, more parent-subsidiary listings (including listed affiliates) are likely to continue to appear going forward.
  • “TSE’s Request” states a restructuring of business portfolio, but leaves out the issue of restructuring the parent company’s business portfolio and shifting to a management approach that increases corporate value.
  • The parent-subsidiary listings (including listed affiliates) that continue to be created will continue to provide investment opportunities for investors, including activist investors.

Keppel Infrastructure Trust – Desalination Plant Disappears into Murky Off Balance Sheet Waters

By Tan Yee Peng

  • KEPPEL INFRASTRUCTURE TRUST (KIT) is an infrastructure trust listed in Singapore. KIT is managed by Keppel Infrastructure Fund Management Pte Ltd (KIFM) and is sponsored by Keppel, a global asset manager and operator. KIFM is a wholly-owned subsidiary of Keppel.
  • The Trustee-Manager, KIFM, has dual responsibility of safeguarding the interests of KIT Unitholders, and managing the business conducted by KIT.
  • The Trustee-Manager has general powers of management over the business and the assets of KIT and its main responsibility is to manage KIT’s assets and liabilities for the benefit of Unitholders as a whole.

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Dec 09
0

Daily Brief Thematic (Sector/Industry): Ohayo Japan | Key Inflation Data the Focus and more

By | Daily Briefs, Thematic (Sector/Industry)

In today’s briefing:

  • Ohayo Japan | Key Inflation Data the Focus

Ohayo Japan | Key Inflation Data the Focus

By Mark Chadwick

  • US stocks mostly rose Friday as investors assessed November’s jobs report, which showed 227,000 jobs added and unemployment rising to 4.2%.
  • This week’s market focus shifts to key inflation data, with the Consumer Price Index (CPI) releasing Wednesday and Producer Price Index (PPI) Thursday
  • Earnings season continues with quarterly reports from notable companies: Broadcom (AVGO), Costco (COST), and GameStop (GME). 

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