Category

Daily Briefs

Sep 26
0

Daily Brief Quantitative Analysis: Design a Tactical and more

By | Daily Briefs, Quantitative Analysis

In today’s briefing:

  • Design a Tactical, Bullish-Tilted ETF Portfolio Expressing Systematic Outlook for Q4 2024 (Part 2)

Design a Tactical, Bullish-Tilted ETF Portfolio Expressing Systematic Outlook for Q4 2024 (Part 2)

By William Mann

  • Systematic quantitative equity strategies have experienced a volatile yet strong year in 2024, led by momentum and reversal factors. See Part1: Systematic Quantitative Equity Strategies Outlook: 9/15/24 – Year-End.
  • Recent market dynamics following the Fed’s 50 bp rate cut on 9/18/24 created a favorable environment for tech growth and AI-related sectors, but concerns about sector overvaluation persist.
  • Given the 9/24/24 announcement of a stimulus package from the People’s Bank of China (PBOC), we need to adjust the portfolio strategy to reflect the improved outlook for Chinese equities.

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Sep 26
0

Daily Brief ECM: Tokyo Metro (9023 JP) IPO: The Bear Case and more

By | Daily Briefs, ECM

In today’s briefing:

  • Tokyo Metro (9023 JP) IPO: The Bear Case
  • Rigaku Holdings IPO: Initial Thoughts
  • Rigaku IPO – The Positives – Catering to a Range of End Industries, and Track Record Has Been Strong
  • Japan Metropolitan Fund Placement – Relatively Small Deal to Digest
  • Tokyo Metro IPO – The Negatives – Hasn’t Recovered Fully but Div and Debt Have
  • Pre-IPO Eternal Beauty Holdings – The Perfume Business in China May Not Be as Good as Expected

Tokyo Metro (9023 JP) IPO: The Bear Case

By Arun George

  • Tokyo Metro (9023 JP), a mass transit operator, is seeking to raise up to US$2.3 billion. Pricing is on 15 October, and the listing is on 23 October.
  • In Tokyo Metro (9023 JP) IPO: The Bull Case, we highlighted the key elements of the bull case. In this note, we outline the bear case.
  • The bear case rests on mid-tier revenue growth, low revenue diversification, the highest leverage among peers and a sizeable post-IPO share overhang. 

Rigaku Holdings IPO: Initial Thoughts

By Shifara Samsudeen, ACMA, CGMA

  • Rigaku Holdings (268A JP) provides cutting-edge analytical solutions centered on X-ray technology globally. The company is one of the largest players globally in X-ray diffraction instrument market.
  • The company has filed for an IPO on the Tokyo Stock Exchange and plans to raise proceeds of around US$900m from the IPO at a potential valuation of US$2bn.
  • In this insight, we discuss Rigaku’s business model, key drivers, financials and outlook for the company.

Rigaku IPO – The Positives – Catering to a Range of End Industries, and Track Record Has Been Strong

By Clarence Chu

  • Rigaku Holdings (268A JP) is looking to raise US$762m in its Japan IPO.
  • Rigaku engages in developing, manufacturing, sales and servicing scientific instruments specializing in X-ray technologies. 
  • In this note, we will talk about the positive aspects of the deal.

Japan Metropolitan Fund Placement – Relatively Small Deal to Digest

By Sumeet Singh

  • Japan Metropolitan Fund Investment Corporation (8953 JP) aims to raise around US$140m to partly fund the acquisition of four assets.
  • The deal will be relatively small, in terms of ADV and dilution.
  • In this note, we will talk about the placement and run the deal through our ECM framework.

Tokyo Metro IPO – The Negatives – Hasn’t Recovered Fully but Div and Debt Have

By Sumeet Singh

  • Tokyo Metro (9023 JP)‘s shareholders aim to raise up to US$2.3bn in its Japan IPO.
  • Tokyo Metro (TKM) is one of the two metro network operators in the Tokyo region. It operates nine subway lines with a total of 180 stations.
  • In this note, we talk about the not-so-positive aspects of the deal.

Pre-IPO Eternal Beauty Holdings – The Perfume Business in China May Not Be as Good as Expected

By Xinyao (Criss) Wang

  • The essence of Eternal Beauty’s business model is to earn a “price difference” of the brand and product portfolios, but this business model is difficult to generate high profit margins.
  • The situation and prospects of China’s perfume market are facing major changes. It‘s uncertain whether the perfume sales in the China market can maintain double-digit growth in the long term.
  • Eternal Beauty’s financial performance would face challenges due to changes in consumer preferences, shifts in China’s domestic policies, international trade disputes, geopolitical conflicts, etc. Valuation could be lower than peers.

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Sep 26
0

Daily Brief ESG: Derichebourg – ESG Report – Lucror Analytics and more

By | Daily Briefs, ESG

In today’s briefing:

  • Derichebourg – ESG Report – Lucror Analytics
  • Has the “Unit of Investment” Principle Spoiled the Companies?

Derichebourg – ESG Report – Lucror Analytics

By Leonard Law, CFA

Lucror Analytics’ ESG Scores are based on a 3-tiered scale and are adjusted for Controversies (if applicable).
We assess Derichebourg’s ESG as “Adequate”, in line with the scores for the Environmental, Social and Governance pillars. Controversies are “Immaterial” and Disclosure is “Strong”. 

We note that the company is active in the recycling industry, which is generally a positive driver.

Has the “Unit of Investment” Principle Spoiled the Companies?

By Aki Matsumoto

  • The reason companies object to a reduction in the investment unit is the cost of shareholder relations, not the cost paid to the trust bank.
  • We should discuss whether it is better for the “unit of investment” principle to remain in place for the convenience of companies that want to pass company proposals smoothly.
  • It will be interesting to see if there will be a discussion on going back to basics and allowing single share holders to exercise their voting rights.

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Sep 26
0

Daily Brief Thematic (Sector/Industry): Ohayo Japan | S&P Slips as Economic Uncertainty Grows and more

By | Daily Briefs, Thematic (Sector/Industry)

In today’s briefing:

  • Ohayo Japan | S&P Slips as Economic Uncertainty Grows
  • Hong Kong/China Brokers: TAKE THE OFFER!
  • Japan Morning Connection: Memory Related in Focus After Knock-Out Numbers for Micron.
  • [Blue Lotus Daily]:MNSO US/BEKE US/LKNCY US/XPEV US / LI US/ NIO US/1211 HK/NIO US /1810 HK/
  • # 62 India Insight: HDFC Bank Plans INR 60K Loan Sale, L&T Order, NHPC INR 2,300 Crore Expansion
  • [Blue Lotus Daily-TMT Update]:JD US/1810 HK/BABA/BILI/PDD/1519HK/ZTO /SE/700HK/BIDU/20HK/3690HK

Ohayo Japan | S&P Slips as Economic Uncertainty Grows

By Mark Chadwick

  • US stocks closed mixed on Wednesday after hitting all-time highs. The S&P 500 dipped 0.2%, reversing earlier gains, while the Nasdaq finished flat.
  • Micron’s stock rose 10% in after-hours trading following a strong earnings report.
  • ValueAct Capital, a U.S. activist investment fund, has acquired a 5.94% stake in Sanwa Holdings

Hong Kong/China Brokers: TAKE THE OFFER!

By David Mudd

  • China considers launching a stock stabilization fund which could release RmB800B in liquidity support for the market.  Securities firms and insurance companies will be the major beneficiaries.
  • The mega merger between  Haitong Securities Co Ltd (H) (6837 HK) and Guotai Junan Securities (2611 HK) could be the precursor to further industry consolidation.
  • Hong Kong trading volumes and IPO’s set to surge as Beijing lifts sentiment.

Japan Morning Connection: Memory Related in Focus After Knock-Out Numbers for Micron.

By Andrew Jackson

  • Memory names with high exposures to Micon such as Micronics will be back in focus.  
  • Microsoft paying overs for stable nuclear energy should put the spotlight back onto UPS and help lift Fuji Electric once again. 
  • Capcom’s Monster Hunter Wilds looks fully priced and with the TGS about to come and go this this weekend, further catalysts are lacking with the stock close to ATH. 

[Blue Lotus Daily]:MNSO US/BEKE US/LKNCY US/XPEV US / LI US/ NIO US/1211 HK/NIO US /1810 HK/

By Eric Wen

  • MNSO US: MINISO Acquires 29.4% Stake in Yonghui Superstores for RMB6.3 Billion, Becoming Its Largest Shareholder(-)
  • BEKE US:Stimulus monetary policies bodes well for real estate and consumption(+)
  • BEKE US:Chongqing Agency Decco Real Estate Joins Beike, Bodes Well for Market Share Gains(+)

# 62 India Insight: HDFC Bank Plans INR 60K Loan Sale, L&T Order, NHPC INR 2,300 Crore Expansion

By Sudarshan Bhandari

  • L&T Secures Rs 10,000-15,000 Crore Order in the Middle East
  • Power Grid Corporation Shares Rise After Winning Key Transmission Projects
  • NHPC to Raise INR 2,300 Crore for Expansion through Securitization

[Blue Lotus Daily-TMT Update]:JD US/1810 HK/BABA/BILI/PDD/1519HK/ZTO /SE/700HK/BIDU/20HK/3690HK

By Ying Pan

  • JD US/1810 HK/BABA US:NRDC announces positive results for “old-for-new” trade-in during September (+)
  • BILI US:Bilibili’s <Three Kingdoms: MDTX> Shows Robust Gross Billings Performance After Season 3 Update (+)
  • PDD US/BABA US/JD US: PDD reduces the minimum withdrawal threshold for funds (/)

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Sep 26
0

Daily Brief Event-Driven: Crunching Passive Impact Numbers for KRX Value-Up Index Names and more

By | Daily Briefs, Event-Driven

In today’s briefing:

  • Crunching Passive Impact Numbers for KRX Value-Up Index Names, Based on KRX’s Free-Float Rate Data
  • MBK Raises Tender Prices: ₩750,000 for Korea Zinc & ₩25,000 for Young Poong Precision
  • MBK Raises Tender Offer Price on Korea Zinc by 13.6% to 750,000 Won
  • Tohokushinsha (2329 JP) To 3D – “Not Today”; 3D May Go To The Mattresses
  • DFI Exits Yonghui, MINISO Enters: Who Got The Short End Of The Stick?
  • Capitol Health (CAJ AU)/Integral Diagnostics (IDX AU):  31st Oct Merger Vote
  • NIFTY Indices: Flows (Post Capping) At the Close Tomorrow; Round-Trip US$3.3bn
  • Unicredit Is Moving Fast
  • MBK Bumps Offers For Both Korea Zinc and Young Poong Precision

Crunching Passive Impact Numbers for KRX Value-Up Index Names, Based on KRX’s Free-Float Rate Data

By Sanghyun Park

  • KRX 300 hit 1 trillion won AUM fast, but with local pensions more aggressive, the value-up’s early AUM could top 1 trillion, hitting up to 3 trillion in six months.
  • Hanjin KAL, S1 Corp, Hyundai Elevator, Nice Info, and Huchems are set for strong price action. The financial sector also stands out, seeing the biggest impact compared to other sectors.
  • Small caps under 1 trillion won see little passive impact, but solid plays exist under 3 trillion, so splitting large and small caps won’t limit target options much.

MBK Raises Tender Prices: ₩750,000 for Korea Zinc & ₩25,000 for Young Poong Precision

By Sanghyun Park

  • Hankyung reports MBK will raise Korea Zinc’s tender offer to ₩750,000 (14%) and Young Poong Precision’s to ₩25,000 (25%) before today’s market opens.
  • Hankyung and Maeil are top sources for market scoops, so it’s almost certain MBK leaked the tender price hike ahead of today’s trading.
  • MBK leaves Choi just five trading days to respond. Korea Zinc plans to raise ₩400 billion, but it’s still not enough for a counter-bid.

MBK Raises Tender Offer Price on Korea Zinc by 13.6% to 750,000 Won

By Douglas Kim

  • MBK announced that it will raise the tender offer prices on Korea Zinc by 13.6% to 750,000 won and Young Poong Precision by 25% to 25,000 won. 
  • If 100% of the 3,024,881 shares of Korea Zinc tender offer is completed, at the revised tender offer price of 750,000 won, this would be 2.27 trillion won in amount.
  • In term of probabilities, we would put a 80-85% probability that MBK/Jang family successfully completes the tender offers and takes over the controlling stakes of these two companies.

Tohokushinsha (2329 JP) To 3D – “Not Today”; 3D May Go To The Mattresses

By Travis Lundy

  • 3D Investment Partners bought 5% of Tohokushinsha Film (2329 JP) by Mar-2023. A year later they had 17+%. 3D proposed changes. In July, 3D proposed a takeover, asking for DD. 
  • Tohokushinsha responded to the proposals, then offered due diligence to 3D based on terms set by a Special Committee. 3D did not want those strict DD terms. 
  • Yesterday, Tohokushinsha said “Fine.” The stock today fell 10% today. This is not a stalemate, but it means 3D may start to play harder.

DFI Exits Yonghui, MINISO Enters: Who Got The Short End Of The Stick?

By David Blennerhassett

Capitol Health (CAJ AU)/Integral Diagnostics (IDX AU):  31st Oct Merger Vote

By David Blennerhassett

  • On the 18th July, diagnostic imaging provider Capitol Health (CAJ AU) entered a Scheme with Integral Diagnostics (IDX AU). IDX will issue 0.12849 new IDX shares for each Capitol share
  • Upon completing the transaction, Integral would hold ~63% in the MergeCo. They key risk is the ACCC signing off. A decision is expected on (or around) the 28th November.  
  • The Scheme Booklet is now out, with a Scheme Meeting to be held on the 31st October. Expected implementation on the 14th November. The IE says fair & reasonable.

NIFTY Indices: Flows (Post Capping) At the Close Tomorrow; Round-Trip US$3.3bn

By Brian Freitas

Unicredit Is Moving Fast

By Jesus Rodriguez Aguilar

  • UniCredit SpA (UCG IM) has raised its Commerzbank AG (CBK GR) stake to 21%; Chancellor Scholz called it “hostile takeover”. UniCredit also filed to increase its stake up to 29.9%.
  • Commerzbank’s valuation multiples remain attractive, as despite a 21.3% rise in its stock, it still trades at a price-to-book ratio (P/B) of just 0.57x, compared to UniCredit’s 0.98x.
  • The conditions remain favorable for a potential premium acquisition by UniCredit, as acquiring Commerzbank makes both strategic and financial sense. Thus I recommend to buy Commerzbank speculatively.

MBK Bumps Offers For Both Korea Zinc and Young Poong Precision

By David Blennerhassett

  • MBK Partners has increased the Tender Offer prices for Korea Zinc (010130 KS) by 13.6% to ₩750,000 and Young Poong Precision (036560 KS) by 25% to ₩25,000.
  • All other terms remain the same.  IF MBK secures the maximum 14.61% in KZ, this will be Korea’s largest-ever Tender Offer.
  • MBK made a public offering correction announcement today. The Choi family now has 5 business days in which to respond with a counteroffer.

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Sep 26
0

Daily Brief Equity Bottom-Up: Taste Gourmet (8371 HK): H1 FY25 Earnings Preview and more

By | Daily Briefs, Equity Bottom-Up

In today’s briefing:

  • Taste Gourmet (8371 HK): H1 FY25 Earnings Preview, 4.5x PE with 12% Yield
  • NPS Sues Samsung’s Lee Jae-Yong
  • Asics (7936) | Q3 Preview; Revision of MTP
  • Memory Monitor: Upcoming Micron Results & Outlook Key Amid Reports of Inventory Liquidation
  • Memory Monitor: Micron Results Show Clear Signs of Memory Market Upswing; DRAM Growth Upgraded
  • United Microelectronics: Intel Foundry Should Take a Stake; Latest News Makes This More Likely
  • Tech Supply Chain Tracker (26-Sep-2024): Aug 2024 notebook shipment update
  • Clinuvel: A Big Future in Skin Disease Treatment
  • Polycab India (POLYCAB IN) | Inventory, Demand Environment & Competition
  • TOC: Strong Assets with a Near Term Path to Production

Taste Gourmet (8371 HK): H1 FY25 Earnings Preview, 4.5x PE with 12% Yield

By Sameer Taneja

  • Taste Gourmet (8371 HK) will report its H1 FY25 earnings in early November. The company isn’t reporting quarterly earnings because GEM board stocks are no longer required to do so. 
  • We expect revenue and profit growth of 22% %/20% YoY, as the average number of HK restaurants has increased from 45 to 54, and most have ramped up. 
  • Trading at 4.5x PE with a 12% dividend yield, 27% of the market cap in cash and a mainboard listing on the horizon there abundant catalysts for the future. 

NPS Sues Samsung’s Lee Jae-Yong

By Douglas Kim

  • NPS has filed a lawsuit against Samsung Group Chairman Lee Jae-Yong and others involved in the merger of Samsung C&T (028260 KS) and Cheil Industries nearly nine years ago.
  • NPS is trying to recover damages estimated at up to 675 billion won. 
  • If NPS is able to win in this lawsuit, it could result in other minority shareholders launching their own lawsuits which could further raise concerns on Samsung C&T. 

Asics (7936) | Q3 Preview; Revision of MTP

By Mark Chadwick

  • Asics is seeing robust D2C sales growth, now 40% of total sales, driving gross margins to 55.5% (+4.5 pp YoY) in 1H24.
  • High-Margin models and strong sales in Onitsuka Tiger and Sportsstyle categories support a forecasted 13% YoY sales increase in 2H24.
  • Asics’ strategic transformation, focusing on structural reforms and emerging markets, to drive upgraded MTP though FY26.

Memory Monitor: Upcoming Micron Results & Outlook Key Amid Reports of Inventory Liquidation

By Vincent Fernando, CFA

  • Memory stocks underperformed the market, falling sharply with the recent overall market rout and failing to rebound sufficiently with the latest market rally.
  • Leading Memory names Micron, SK Hynix, Samsung are all substantially below their 52-week highs after market reports of slowing memory demand from PC and mobile industries and inventory liquidation.
  • Taiwan names Nanya Tech, Silicon Motion, Phison are all we below their highs. Micron results on September 25th MT will provide a major outlook update for the market.

Memory Monitor: Micron Results Show Clear Signs of Memory Market Upswing; DRAM Growth Upgraded

By Vincent Fernando, CFA

  • Micron’s latest results show a clear improvement in the Memory cycle. The company’s gross margin increased and guided for a further strong margin increase next quarter.
  • Micron increased its overall DRAM industry growth forecast while maintaining its NAND flash forecast. Micron reiterated expectations for FY2025E to deliver record revenue for the company, with improving profitability.
  • Positive news for fallen Memory industry shares — Within our Memory universe we have Structural Long ratings for Micron Technology (MU US), SK Hynix (000660 KS), and Silicon Motion Technology (SIMO US).

United Microelectronics: Intel Foundry Should Take a Stake; Latest News Makes This More Likely

By Vincent Fernando, CFA

  • Given UMC’s partnership with Intel to produce chips using Intel’s 12nm fab capacity, we believe latest Intel developments increase the opportunity for Intel Foundry to take a stake in UMC.
  • Intel’s Foundry business makes a strong partner for UMC who has deep foundry experience and talent, but doesn’t have leading edge fabs nor the balance sheet to build them.
  • If Intel Foundry Services spins out or Intel strengthens its balance sheet through a deal with Qualcomm/Apollo, the potential for a deeper UMC-Intel Foundry partnership becomes even more compelling.

Tech Supply Chain Tracker (26-Sep-2024): Aug 2024 notebook shipment update

By Tech Supply Chain Tracker

  • Aug 2024 Notebook shipments on track for delivery with tracking information soon. Apple MR device facing possible upgrade to 1,500 PPI OLED display.
  • Automotive CIS tech set to advance by 2024. Taiwan offers permanent residence to address talent shortage in AI industry.
  • UK showcases compound semiconductor strength and collaboration with Taiwan. Henkel expands semiconductor focus in India for market growth.

Clinuvel: A Big Future in Skin Disease Treatment

By Pyari Menon

  • Clinuvel Pharmaceuticals (CUV AU)’s Scenesse is the only approved erythropoietic protoporphyria (EPP) treatment. Patent protection and orphan drug status solidifies Clinuvel’s market position.
  • Clinuvel is expanding Scenesse’s (afamelanotide) use and developing and testing additional products for clinical and photo-cosmetic use. 
  • Profitability metrics and growth are solid and cash position strong to support R&D for trials and new product development.

Polycab India (POLYCAB IN) | Inventory, Demand Environment & Competition

By Pranav Bhavsar

  • We spoke to cable distributors and industry experts to understand any concerns regarding industry-wide inventory levels and to gauge the current demand environment.
  • Stocks in focus include Polycab India (POLYCAB IN); KEI Industries (KEII IN) & R R Kabel (2333180Z IN).  
  • Overall industry business momentum remains strong, project delays and competition warrant attention. 

TOC: Strong Assets with a Near Term Path to Production

By Atrium Research

  • Tocvan is centred around its clear and achievable objectives, looking to develop its flagship Gran Pilar Gold Project to near-term production.
  • Following a maiden resource this fall, a pilot plant is expected to be permitted, constructed, and producing gold as early as H1/25.
  • Beyond the pending resource estimate, the Gran Pilar Project shows significant growth potential across its 2,200ha+ land package.

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Sep 26
0

Daily Brief Macro: After the Rally. What Next for the Hong Kong Market? and more

By | Daily Briefs, Macro

In today’s briefing:

  • After the Rally. What Next for the Hong Kong Market?
  • Sweden Policy Rate 3.25% (consensus 3.25%) in Sep-24
  • Forceful Fed Rhymes From 1998

After the Rally. What Next for the Hong Kong Market?

By Rikki Malik

  • The fabled  PBoC Put is finally out in the open
  • Is there a floor under the stock market, if not the property market?
  • Has the asymetric opportunity now gone with this recent rally?

Sweden Policy Rate 3.25% (consensus 3.25%) in Sep-24

By Heteronomics AI

  • The Riksbank cut its policy rate by 25 basis points to 3.25%, in line with consensus, and signaled potential further cuts at a faster pace if inflation and economic activity remain stable.
  • Future rate cuts are likely, with two more reductions expected in 2025, contingent on sustained favourable inflation developments and improved economic activity.
  • Uncertainty remains due to geopolitical risks, global economic conditions, and energy price volatility, which could alter the trajectory of monetary policy adjustments.
This content is sourced through publicly available sources and has been machine generated. Information displayed is for general informational purposes only.

Forceful Fed Rhymes From 1998

By Phil Rush

  • The Fed’s 50bp rate cut was remarkably forceful relative to the resilient data. It relies on rates being far above their neutral setting despite no evidence for this tightness.
  • Historical parallels to 1998 are mounting with the forceful start and conveniently timed political support. A repeat would mean an early pause and hikes returning in 2025.
  • Brazil has tracked a year ahead of the Fed in the last hiking and cutting cycles. Its latest hike would also be consistent with the Fed following the 1998 scenario.

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Sep 26
0

Daily Brief Australia: Capitol Health, Clinuvel Pharmaceuticals and more

By | Australia, Daily Briefs

In today’s briefing:

  • Capitol Health (CAJ AU)/Integral Diagnostics (IDX AU):  31st Oct Merger Vote
  • Clinuvel: A Big Future in Skin Disease Treatment

Capitol Health (CAJ AU)/Integral Diagnostics (IDX AU):  31st Oct Merger Vote

By David Blennerhassett

  • On the 18th July, diagnostic imaging provider Capitol Health (CAJ AU) entered a Scheme with Integral Diagnostics (IDX AU). IDX will issue 0.12849 new IDX shares for each Capitol share
  • Upon completing the transaction, Integral would hold ~63% in the MergeCo. They key risk is the ACCC signing off. A decision is expected on (or around) the 28th November.  
  • The Scheme Booklet is now out, with a Scheme Meeting to be held on the 31st October. Expected implementation on the 14th November. The IE says fair & reasonable.

Clinuvel: A Big Future in Skin Disease Treatment

By Pyari Menon

  • Clinuvel Pharmaceuticals (CUV AU)’s Scenesse is the only approved erythropoietic protoporphyria (EPP) treatment. Patent protection and orphan drug status solidifies Clinuvel’s market position.
  • Clinuvel is expanding Scenesse’s (afamelanotide) use and developing and testing additional products for clinical and photo-cosmetic use. 
  • Profitability metrics and growth are solid and cash position strong to support R&D for trials and new product development.

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Sep 26
0

Daily Brief South Korea: Huchems Fine Chemical, Korea Zinc, Samsung C&T and more

By | Daily Briefs, South Korea

In today’s briefing:

  • Crunching Passive Impact Numbers for KRX Value-Up Index Names, Based on KRX’s Free-Float Rate Data
  • MBK Raises Tender Prices: ₩750,000 for Korea Zinc & ₩25,000 for Young Poong Precision
  • MBK Raises Tender Offer Price on Korea Zinc by 13.6% to 750,000 Won
  • NPS Sues Samsung’s Lee Jae-Yong
  • MBK Bumps Offers For Both Korea Zinc and Young Poong Precision

Crunching Passive Impact Numbers for KRX Value-Up Index Names, Based on KRX’s Free-Float Rate Data

By Sanghyun Park

  • KRX 300 hit 1 trillion won AUM fast, but with local pensions more aggressive, the value-up’s early AUM could top 1 trillion, hitting up to 3 trillion in six months.
  • Hanjin KAL, S1 Corp, Hyundai Elevator, Nice Info, and Huchems are set for strong price action. The financial sector also stands out, seeing the biggest impact compared to other sectors.
  • Small caps under 1 trillion won see little passive impact, but solid plays exist under 3 trillion, so splitting large and small caps won’t limit target options much.

MBK Raises Tender Prices: ₩750,000 for Korea Zinc & ₩25,000 for Young Poong Precision

By Sanghyun Park

  • Hankyung reports MBK will raise Korea Zinc’s tender offer to ₩750,000 (14%) and Young Poong Precision’s to ₩25,000 (25%) before today’s market opens.
  • Hankyung and Maeil are top sources for market scoops, so it’s almost certain MBK leaked the tender price hike ahead of today’s trading.
  • MBK leaves Choi just five trading days to respond. Korea Zinc plans to raise ₩400 billion, but it’s still not enough for a counter-bid.

MBK Raises Tender Offer Price on Korea Zinc by 13.6% to 750,000 Won

By Douglas Kim

  • MBK announced that it will raise the tender offer prices on Korea Zinc by 13.6% to 750,000 won and Young Poong Precision by 25% to 25,000 won. 
  • If 100% of the 3,024,881 shares of Korea Zinc tender offer is completed, at the revised tender offer price of 750,000 won, this would be 2.27 trillion won in amount.
  • In term of probabilities, we would put a 80-85% probability that MBK/Jang family successfully completes the tender offers and takes over the controlling stakes of these two companies.

NPS Sues Samsung’s Lee Jae-Yong

By Douglas Kim

  • NPS has filed a lawsuit against Samsung Group Chairman Lee Jae-Yong and others involved in the merger of Samsung C&T (028260 KS) and Cheil Industries nearly nine years ago.
  • NPS is trying to recover damages estimated at up to 675 billion won. 
  • If NPS is able to win in this lawsuit, it could result in other minority shareholders launching their own lawsuits which could further raise concerns on Samsung C&T. 

MBK Bumps Offers For Both Korea Zinc and Young Poong Precision

By David Blennerhassett

  • MBK Partners has increased the Tender Offer prices for Korea Zinc (010130 KS) by 13.6% to ₩750,000 and Young Poong Precision (036560 KS) by 25% to ₩25,000.
  • All other terms remain the same.  IF MBK secures the maximum 14.61% in KZ, this will be Korea’s largest-ever Tender Offer.
  • MBK made a public offering correction announcement today. The Choi family now has 5 business days in which to respond with a counteroffer.

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Sep 26
0

Daily Brief Singapore: DFI Retail Group Holdings and more

By | Daily Briefs, Singapore

In today’s briefing:

  • DFI Exits Yonghui, MINISO Enters: Who Got The Short End Of The Stick?

DFI Exits Yonghui, MINISO Enters: Who Got The Short End Of The Stick?

By David Blennerhassett

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

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  • ✓ Custom Watchlists
  • ✓ Company Data and News
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