Daily Briefs

Kokusai has dropped 44% from its July peak, offering a long-term opportunity at reasonably attractive valuations. Management’s guidance looks conservative.
KKR has reduced its stake from 43.4% to 23.2%, increasing the float while indicating that it still sees a long-term opportunity. Applied Materials has bought 14.7% of the company.
The completion of a new factory in Japan should double production capacity to meet demand from makers of AI processors, high-bandwidth memory, 3D NAND and power devices.

PKSHA Tech (3993 JP) – TOPIX Inclusion in October 2024

PKSHA is an AI company. It was before this year, and got a boost this past spring. The stock price rose 60% in two weeks in February and March 2024.
Then it fell more than 50%. Back to late 2023 levels. High growth, growing into its valuations. Now moving to TSE Prime this week, TOPIX next month.
Impact in days of ADV is lower than impact in Real World Float metrics. There are lots of day-traders. This probably has legs.

CELSYS (3663 JP) Finally Makes It to Prime Time (TOPIX Inclusion Next Month)

12 days ago, Janaghan Jeyakumar, CFA published his September version of TOPIX Inclusions: Who Is Ready (September 2024). His chosen name was CELSYS (3663 JP), a long-time TSE-Prime inclusion bet.
This week on the 18th, they announced they were going to enter TSE Prime on 25 September. This was a somewhat well-known known. They were interested and had been.
The stock popped 15% the next day. It’s a small cap, but there is a lot of float.

ECM Weekly (23rd Sep 2024) – Tokyo Metro, Midea, Intermestic, Sagility, Belstar, Kuaishou, Bajaj HF

By Sumeet Singh

Aequitas Research’s weekly update on the IPOs, placements, lockup expiry and other ECM linked events that were covered by the team over the past week.
On the IPO front, Midea Group Co Ltd A (000333 CH) and Bajaj Housing Finance (BHF IN) hogged much of the limelight this week as well.
On the placements front, there were a few large US$400m+ placements across the region this week.

Ain Shifts Focus with FrancFranc Acquisition

By Michael Causton

Ain is best known for running prescription pharmacies but also has a lifestyle-oriented cosmetics chain called Ainz & Tulpe.
Without this, the acquisition of FrancFranc would look odd, but the merger of the two will create genuine synergies and a lifestyle business targeting women in their 20s and 30s.
The move makes sense given the pressure on margins in drug dispensing, Ain’s main business.

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Sep 23

Most Read: Korea Zinc, Samsung KODEX Samsung Group ETF, Seven & I Holdings, HLB Therapeutics , Shanghai Henlius Biotech , Xiamen Amoytop Biotech Co Ltd, Taiwan Semiconductor (TSMC), Kokusai Electric and more

By Smartkarma Daily Briefs | Daily Briefs, Most Read

In today’s briefing:

Korea Zinc’s Latest Shareholder Roll & MBK’s Triggers to Sweeten Tender Price
Details of MBK’s Four Major Concerns on Management of Korea Zinc
Unique Rebalancing Pattern & Unique Trading Angle of the KODEX Samsung Group ETF
Will New KOSDAQ 150 Member HLB Therapeutics Show Webzen-Like Price Moves?
Last Week in Event SPACE: Shin Kong Financial, Swire Pac, Seven & I, Korea Zinc
KOSDAQ150 Index Adhoc Rebalance: HLB Therapeutics Replaces Jeisys Medical
Merger Arb Mondays (23 Sep) – Henlius, GA Pack, China TCM, Canvest, Trancom, Fuji Soft, Platinum
STAR50/STAR100 Index Rebalance Preview: Massive Outperformance in Last Two Months; Time to Unwind?
TSMC (2330.TT; TSM.US): 4Q24 Outlook Is Around 10% QoQ Upside.
Kokusai Electric (6525 JP): Sell-Off Presents Buying Opportunity

Korea Zinc’s Latest Shareholder Roll & MBK’s Triggers to Sweeten Tender Price

MBK is watching for a 1 million share trading volume, as that may prompt neutral institutional investors to sell rather than participate in the tender, triggering a price hike.
MBK may raise the tender price to ₩900,000, a 35% jump, with a local pension fund CIO suggesting it’s the sweet spot for participation.
MBK believes securing the minimum target would give them 44% voting rights, enough to push their proposals, indicating they’ll go all-in for that 7% stake in this first attempt.

Details of MBK’s Four Major Concerns on Management of Korea Zinc

By Douglas Kim

In this insight, we discuss in detail MBK’s four major concerns on the management of Korea Zinc.
We believe that MBK has legitimate concerns on especially the three factors including poor investments, deteriorating profitability, and increase in equity capital/disposal of treasury shares.
If and when the 2 trillion won+ is raised, then it could lead to another tender offer and the four concerns highlighted in this insight become much more important.

Unique Rebalancing Pattern & Unique Trading Angle of the KODEX Samsung Group ETF

This KODEX Samsung Group ETF sees 30% AUM outflows pre-rebalancing, with the same chunk flowing back in after, especially noticeable during December.
Over three years, local brokers sold stock baskets before rebalancing, causing notable price impacts. During this time, Samsung affiliates in the ETF delivered 3-4% returns.
ChatGPT said:ChatGPTThis isn’t typical NAV arbitrage; it’s likely an unhedged play. Nonetheless, given the consistent price impact and accessible stock futures, it’s worth considering.

Will New KOSDAQ 150 Member HLB Therapeutics Show Webzen-Like Price Moves?

Jeisys Medical’s getting booted from the KOSDAQ 150, and HLB Therapeutics is stepping in as the new addition. This change will officially hit the book on Wednesday, September 25.
HLB Therapeutics, with a ₩0.70T market cap and 87% float, is set for a 0.51% weight in KOSDAQ 150, triggering over 2 million shares in passive buying: 3.26x 30-day ADTV.
With today’s after-hours volume spike in HLB Therapeutics, we’re likely to see some price action from early movers spilling into Monday’s open, similar to what we saw with Webzen.

Last Week in Event SPACE: Shin Kong Financial, Swire Pac, Seven & I, Korea Zinc

By David Blennerhassett

Stay long Shin Kong Financial Holding (2888 TT) and buy more, or get long. CTBC Financial Holding (2891 TT) may make a better run at it, and may even bump.
It’s a hard to be bearish Swire Pacific (A) (19 HK) at 0.34x P/B. Yet the Hong Kong property market remains a challenging space. To put it mildly.
Seven & I Holdings (3382 JP) saw breathless news articles suggesting a foreign takeover became more difficult. Not really.

KOSDAQ150 Index Adhoc Rebalance: HLB Therapeutics Replaces Jeisys Medical

HLB Therapeutics (115450 KS) will replace Jeisys Medical (287410 KS) in the KOSDAQ 150 Index (KOSDQ150 INDEX) next week.
Passive trackers will need to buy 1.8 days of ADV in HLB Therapeutics (115450 KS) and sell over 4 days of ADV in Jeisys Medical (287410 KS).
Recent ad hoc inclusions to the KOSDAQ 150 Index (KOSDQ150 INDEX) have jumped post announcement of index inclusion but have sold off after the inclusion.

Merger Arb Mondays (23 Sep) – Henlius, GA Pack, China TCM, Canvest, Trancom, Fuji Soft, Platinum

By Arun George

We summarise the latest spreads and newsflow of merger arb situations we cover across Hong Kong, Australia, New Zealand, Singapore, Japan, Indonesia, Malaysia, Philippines, Thailand and Chinese ADRs.
Highest spreads: Canvest Environmental Protection Group (1381 HK), Shinko Electric Industries (6967 JP), Greatview Aseptic Packaging (468 HK), Shanghai Henlius Biotech (2696 HK), China Traditional Chinese Medicine (570 HK).
Lowest spreads: Tohokushinsha Film (2329 JP), Dyna Mac Holdings (DMHL SP), Fuji Soft Inc (9749 JP), Trancom Co Ltd (9058 JP), Seven & I Holdings (3382 JP).

STAR50/STAR100 Index Rebalance Preview: Massive Outperformance in Last Two Months; Time to Unwind?

90% of the way through the review period, there could be 1 change for the SSE STAR50 (STAR50 INDEX) and 5 changes for the STAR100 Index.
We estimate turnover of 1% for the STAR50 INDEX and 5.5% for the STAR100 Index. The net round-trip trade is CNY 3.2bn (US$453m).
The forecast add to the SSE STAR50 (STAR50 INDEX) has massively outperformed the forecast deletion from the index over the last two months.

TSMC (2330.TT; TSM.US): 4Q24 Outlook Is Around 10% QoQ Upside.

We anticipate that the upcoming 4Q24 will likely see a ~10% quarter-over-quarter (QoQ) upside.
Among TSMC’s top clients are companies from the US, Taiwan, and Japan.
Recently, we have heard that TSMC is reducing wafer quotations by about ~10% for 28nm and below, in order to adapt to the current environment.

Kokusai Electric (6525 JP): Sell-Off Presents Buying Opportunity

Kokusai has dropped 44% from its July peak, offering a long-term opportunity at reasonably attractive valuations. Management’s guidance looks conservative.
KKR has reduced its stake from 43.4% to 23.2%, increasing the float while indicating that it still sees a long-term opportunity. Applied Materials has bought 14.7% of the company.
The completion of a new factory in Japan should double production capacity to meet demand from makers of AI processors, high-bandwidth memory, 3D NAND and power devices.

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Sep 23

Daily Brief Industrials: Kokusai Electric , Tokyo Metro and more

By Smartkarma Daily Briefs | Daily Briefs, Industrials

In today’s briefing:

Kokusai Electric (6525 JP): Sell-Off Presents Buying Opportunity
ECM Weekly (23rd Sep 2024) – Tokyo Metro, Midea, Intermestic, Sagility, Belstar, Kuaishou, Bajaj HF

Kokusai Electric (6525 JP): Sell-Off Presents Buying Opportunity

Kokusai has dropped 44% from its July peak, offering a long-term opportunity at reasonably attractive valuations. Management’s guidance looks conservative.
KKR has reduced its stake from 43.4% to 23.2%, increasing the float while indicating that it still sees a long-term opportunity. Applied Materials has bought 14.7% of the company.
The completion of a new factory in Japan should double production capacity to meet demand from makers of AI processors, high-bandwidth memory, 3D NAND and power devices.

ECM Weekly (23rd Sep 2024) – Tokyo Metro, Midea, Intermestic, Sagility, Belstar, Kuaishou, Bajaj HF

By Sumeet Singh

Aequitas Research’s weekly update on the IPOs, placements, lockup expiry and other ECM linked events that were covered by the team over the past week.
On the IPO front, Midea Group Co Ltd A (000333 CH) and Bajaj Housing Finance (BHF IN) hogged much of the limelight this week as well.
On the placements front, there were a few large US$400m+ placements across the region this week.

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Sep 23

Daily Brief Industrials: Kokusai Electric , Tokyo Metro and more

By Smartkarma Daily Briefs | Daily Briefs, Industrials

In today’s briefing:

Kokusai Electric (6525 JP): Sell-Off Presents Buying Opportunity
ECM Weekly (23rd Sep 2024) – Tokyo Metro, Midea, Intermestic, Sagility, Belstar, Kuaishou, Bajaj HF

Kokusai Electric (6525 JP): Sell-Off Presents Buying Opportunity

Kokusai has dropped 44% from its July peak, offering a long-term opportunity at reasonably attractive valuations. Management’s guidance looks conservative.
KKR has reduced its stake from 43.4% to 23.2%, increasing the float while indicating that it still sees a long-term opportunity. Applied Materials has bought 14.7% of the company.
The completion of a new factory in Japan should double production capacity to meet demand from makers of AI processors, high-bandwidth memory, 3D NAND and power devices.

ECM Weekly (23rd Sep 2024) – Tokyo Metro, Midea, Intermestic, Sagility, Belstar, Kuaishou, Bajaj HF

By Sumeet Singh

Aequitas Research’s weekly update on the IPOs, placements, lockup expiry and other ECM linked events that were covered by the team over the past week.
On the IPO front, Midea Group Co Ltd A (000333 CH) and Bajaj Housing Finance (BHF IN) hogged much of the limelight this week as well.
On the placements front, there were a few large US$400m+ placements across the region this week.

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Sep 23

Daily Brief Energy/Materials: Korea Zinc, Copper, Iron Ore, Medco Energi and more

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

In today’s briefing:

Korea Zinc’s Latest Shareholder Roll & MBK’s Triggers to Sweeten Tender Price
Copper Tracker Sep 23rd, 2024: Markets Volatile, Accumulate Good Copper Names On Weakness
Iron Ore Tracker (23-Sep-2024): Liquidity in China Provides Relief, Still Bearish Short-Term
Morning Views Asia: Adaro Energy, Medco Energi, Meituan

Korea Zinc’s Latest Shareholder Roll & MBK’s Triggers to Sweeten Tender Price

MBK is watching for a 1 million share trading volume, as that may prompt neutral institutional investors to sell rather than participate in the tender, triggering a price hike.
MBK may raise the tender price to ₩900,000, a 35% jump, with a local pension fund CIO suggesting it’s the sweet spot for participation.
MBK believes securing the minimum target would give them 44% voting rights, enough to push their proposals, indicating they’ll go all-in for that 7% stake in this first attempt.

Copper Tracker Sep 23rd, 2024: Markets Volatile, Accumulate Good Copper Names On Weakness

By Sameer Taneja

With increasing market volatility, base metals continue their rocky weekly performance. Copper was up marginally maintaining a level over 9000 USD/ton.
Copper inventories declined at the exchanges, with ~428k tons combined at Comex, LME, and Shanghai, down almost 9% in the last two weeks.
Read our recent initiation on Antofagasta PLC (ANTO LN), contrasting it with Southern Copper (SCCO US) titled Antofagasta (ANTO LN): An Initiation on a Mid-Sized Copper Miner.

Iron Ore Tracker (23-Sep-2024): Liquidity in China Provides Relief, Still Bearish Short-Term

By Sameer Taneja

Iron underperformed the commodity complex, falling 1.2% WoW, vs the average complex performance of 3% WoW.
PBOC rate cuts have yet to spur borrowing significantly. Despite the seasonal uptick, loan growth has trended negatively.
We remain cautious till China shows any sign of a pick-up in demand. Indicators like mill margins and property/auto demand continue to be uninspiring.

Morning Views Asia: Adaro Energy, Medco Energi, Meituan

By Leonard Law, CFA

Lucror Analytics Morning Views comprise our fundamental credit analysis, opinions and trade recommendations on high yield issuers in the region, based on key company-specific developments in the past 24 hours. Our Morning Views include a section with a brief market commentary, key market indicators and a macroeconomic and corporate event calendar.

Adaro Energy
Medco Energi
Meituan

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Sep 23

Daily Brief Health Care: HLB Therapeutics , Shanghai Henlius Biotech , Xiamen Amoytop Biotech Co Ltd, Sinopep-Allsino Bio Pharmaceutical, HealthCare Global Enterprises and more

By Smartkarma Daily Briefs | Daily Briefs, Healthcare

In today’s briefing:

KOSDAQ150 Index Adhoc Rebalance: HLB Therapeutics Replaces Jeisys Medical
Merger Arb Mondays (23 Sep) – Henlius, GA Pack, China TCM, Canvest, Trancom, Fuji Soft, Platinum
STAR50/STAR100 Index Rebalance Preview: Massive Outperformance in Last Two Months; Time to Unwind?
Quiddity Leaderboard CSI Medical Dec 24: 5 Changes Possible; Exp ADDs yet to Outperform Exp DELs
HCG: Executing Well With Prudent Expansion

KOSDAQ150 Index Adhoc Rebalance: HLB Therapeutics Replaces Jeisys Medical

HLB Therapeutics (115450 KS) will replace Jeisys Medical (287410 KS) in the KOSDAQ 150 Index (KOSDQ150 INDEX) next week.
Passive trackers will need to buy 1.8 days of ADV in HLB Therapeutics (115450 KS) and sell over 4 days of ADV in Jeisys Medical (287410 KS).
Recent ad hoc inclusions to the KOSDAQ 150 Index (KOSDQ150 INDEX) have jumped post announcement of index inclusion but have sold off after the inclusion.

Merger Arb Mondays (23 Sep) – Henlius, GA Pack, China TCM, Canvest, Trancom, Fuji Soft, Platinum

By Arun George

We summarise the latest spreads and newsflow of merger arb situations we cover across Hong Kong, Australia, New Zealand, Singapore, Japan, Indonesia, Malaysia, Philippines, Thailand and Chinese ADRs.
Highest spreads: Canvest Environmental Protection Group (1381 HK), Shinko Electric Industries (6967 JP), Greatview Aseptic Packaging (468 HK), Shanghai Henlius Biotech (2696 HK), China Traditional Chinese Medicine (570 HK).
Lowest spreads: Tohokushinsha Film (2329 JP), Dyna Mac Holdings (DMHL SP), Fuji Soft Inc (9749 JP), Trancom Co Ltd (9058 JP), Seven & I Holdings (3382 JP).

STAR50/STAR100 Index Rebalance Preview: Massive Outperformance in Last Two Months; Time to Unwind?

90% of the way through the review period, there could be 1 change for the SSE STAR50 (STAR50 INDEX) and 5 changes for the STAR100 Index.
We estimate turnover of 1% for the STAR50 INDEX and 5.5% for the STAR100 Index. The net round-trip trade is CNY 3.2bn (US$453m).
The forecast add to the SSE STAR50 (STAR50 INDEX) has massively outperformed the forecast deletion from the index over the last two months.

Quiddity Leaderboard CSI Medical Dec 24: 5 Changes Possible; Exp ADDs yet to Outperform Exp DELs

By Janaghan Jeyakumar, CFA

CSI Medical Service represents the top 50 largest and most-liquid stocks involved in medical devices, medical care, medical informatization, and other medical theme from the Shanghai, Shenzhen and Beijing Exchanges.
In this insight, we take a look at the potential ADDs and DELs leading the race for the semiannual index rebal event in December 2024.
We expect up to five ADDs and five DELs for the CSI Medical Service index during this index review event based on the latest available data.

HCG: Executing Well With Prudent Expansion

HCG reported a decent Q1FY25 with revenue growth of 16.7% YoY, adjusted for a discontinued center in Bangalore. Growth was robust across both established and emerging centers.
Emerging centers (Kolkata, Borivali and South Mumbai) grew strong at 33% YoY while established centers also grew healthy at 14% YoY. All emerging centers, but South Mumbai center, are profitable.
We estimate that HCG could post a PAT of around INR 280cr+ by FY27. An investment in HCG at the current level has potential to provide an upside of 85%+.

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Sep 23

Daily Brief TMT/Internet: Taiwan Semiconductor (TSMC), PKSHA Technology, Intel Corp, CELSYS, United Microelectronics Corp, Semiconductor Manufacturing International Corp (SMIC), Taiwan Semiconductor (TSMC) – ADR, Sea , Zhejiang Taimei Medical Technology Co Ltd, Novatek Microelectronics Corp and more

By Smartkarma Daily Briefs | Daily Briefs, TMT/Internet

In today’s briefing:

TSMC (2330.TT; TSM.US): 4Q24 Outlook Is Around 10% QoQ Upside.
PKSHA Tech (3993 JP) – TOPIX Inclusion in October 2024
Tech M&A: Qualcomm for Intel? No Chance. Here’s Why.
CELSYS (3663 JP) Finally Makes It to Prime Time (TOPIX Inclusion Next Month)
UMC (2303.TT; UMC US): The Outlook for 4Q24 Is Somewhat Bearish.
SMIC (981.HK): Surviving Amidst a Prolonged US-China Trade War
Taiwan Tech Weekly: Qualcomm Eyes Bold Intel Acquisition; Global Semi Sales Strength Continues
Weekly Consumer Tales: Shopee Youtube Tieup-China Home Price Slump-India’s Rising Gold, Iphone Sales
Pre-IPO Zhejiang Taimei Medical Technology (PHIP Updates) – Some Points Worth the Attention
Novatek (3034.TT): To Utilizing on IPhone 16 DDIC Will Soon Be Largely Replaced by Korean Fabless.

TSMC (2330.TT; TSM.US): 4Q24 Outlook Is Around 10% QoQ Upside.

We anticipate that the upcoming 4Q24 will likely see a ~10% quarter-over-quarter (QoQ) upside.
Among TSMC’s top clients are companies from the US, Taiwan, and Japan.
Recently, we have heard that TSMC is reducing wafer quotations by about ~10% for 28nm and below, in order to adapt to the current environment.

PKSHA Tech (3993 JP) – TOPIX Inclusion in October 2024

PKSHA is an AI company. It was before this year, and got a boost this past spring. The stock price rose 60% in two weeks in February and March 2024.
Then it fell more than 50%. Back to late 2023 levels. High growth, growing into its valuations. Now moving to TSE Prime this week, TOPIX next month.
Impact in days of ADV is lower than impact in Real World Float metrics. There are lots of day-traders. This probably has legs.

Tech M&A: Qualcomm for Intel? No Chance. Here’s Why.

By Neil Campling

SAMR would draw out review process for too long for a deal to be approved
Intel faces an existential crisis and even the new Foundry division has issues
A theoretical deal would have little financial synergy and destroy Qualcomm’s gross margins

CELSYS (3663 JP) Finally Makes It to Prime Time (TOPIX Inclusion Next Month)

12 days ago, Janaghan Jeyakumar, CFA published his September version of TOPIX Inclusions: Who Is Ready (September 2024). His chosen name was CELSYS (3663 JP), a long-time TSE-Prime inclusion bet.
This week on the 18th, they announced they were going to enter TSE Prime on 25 September. This was a somewhat well-known known. They were interested and had been.
The stock popped 15% the next day. It’s a small cap, but there is a lot of float.

UMC (2303.TT; UMC US): The Outlook for 4Q24 Is Somewhat Bearish.

The outlook for 4Q24 appears somewhat bearish at the moment, though it has not been fully defined before the end of October.
Taiwanese companies such as MediaTek Inc (2454 TT), Novatek Microelectronics Corp (3034 TT) and Realtek Semiconductor (2379 TT) continue to be the main drivers of demand for UMC.
On a positive note, there are warnings against overly relying on chips from Chinese manufacturers due to US sanctions.

SMIC (981.HK): Surviving Amidst a Prolonged US-China Trade War

SMIC’s revenue might be looking at around US$2bn in 4Q24 and it’s a bit reduction of GM from 3Q24 because of the seasonality at the year end.
Since around 2019, US was putting an sanction on China, no matter how the argument is true.
SMIC continued delivering 7nm chips, and even the 5nm chips could be further delivered using a similar method, although the yield rate may be a concern.

Taiwan Tech Weekly: Qualcomm Eyes Bold Intel Acquisition; Global Semi Sales Strength Continues

By Vincent Fernando, CFA

Qualcomm Eyes Bold, Friendly Intel Acquisition Amid Intel’s Existential Crisis
Global Semi Sales Strength Continues In July. How Long Can It Last?
Asustek Soars, Uniquely Making Fresh 52-Week Highs Within PC Makers

Weekly Consumer Tales: Shopee Youtube Tieup-China Home Price Slump-India’s Rising Gold, Iphone Sales

By Devi Subhakesan

Welcome to Consumer Tales & Trends, your weekly roundup of the latest corporate developments, investment reports and sector events in the consumer industry.
Sea (SE US) owned Shopee has partnered with YouTube to drive GMV growth and resist competition with TikTok, which has strengthened its regional presence through its stake in Tokopedia,
India’s strong shopping appetite was reflected in robust gold purchases in August and high demand for the iPhone 16 launched last week.

Pre-IPO Zhejiang Taimei Medical Technology (PHIP Updates) – Some Points Worth the Attention

By Xinyao (Criss) Wang

Declining customer retention rate indicates that a slowdown in future revenue growth seems inevitable. If revenue growth stagnates, it means Taimei’s business model hasn’t been fully validated by the market.
Taimei’s IPO on SSE STAR Market was rejected. This means regulatory authorities don’t recognize Taimei’s core technology/performance prospects. Taimei has to take a step back and list on the HKEX.
Post-Investment valuation reached RMB8.1 billion after Series F financing. However, considering the continuous decline in valuation of its peers, we are concerned about Taimei’s future stock price performance after IPO.

Novatek (3034.TT): To Utilizing on IPhone 16 DDIC Will Soon Be Largely Replaced by Korean Fabless.

Apple (AAPL US) will initially use Novatek’s DDIC (Display Driver IC) for the iPhone 16, but it will soon being replaced largely.
In 4Q24, there is a possibility of experiencing a decline, with a potential quarter-over-quarter decrease of approximately 5-10%.
The Chinese panel market continues to be a key battleground, and Novatek must navigate these challenges to remain competitive.

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Sep 23

Daily Brief Consumer: Ain Holdings Inc, Webtoon Entertainment and more

By Smartkarma Daily Briefs | Consumer, Daily Briefs

In today’s briefing:

Ain Shifts Focus with FrancFranc Acquisition
Webtoon Entertainment: A Weakening USD Will Give A Lift To 3Q Earnings, Founder Picked Up 42K Shares

Ain Shifts Focus with FrancFranc Acquisition

By Michael Causton

Ain is best known for running prescription pharmacies but also has a lifestyle-oriented cosmetics chain called Ainz & Tulpe.
Without this, the acquisition of FrancFranc would look odd, but the merger of the two will create genuine synergies and a lifestyle business targeting women in their 20s and 30s.
The move makes sense given the pressure on margins in drug dispensing, Ain’s main business.

Webtoon Entertainment: A Weakening USD Will Give A Lift To 3Q Earnings, Founder Picked Up 42K Shares

By Andrei Zakharov

Webtoon Entertainment, a Korean the world’s largest digital comics platform, has successfully completed IPO and private placement in June.
The NAVER-backed storytelling platform has raised ~$359M and priced its IPO and concurrent private placement at $21.00 per share, at the top end of price range.
However, Webtoon Entertainment shares significantly underperformed with shares down ~48% below IPO offer price.

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Sep 23

Daily Brief Financials: NIFTY Index, Kolte Patil Developers, Bajaj Finance Ltd, Nuvama Wealth Management, IREDA and more

By Smartkarma Daily Briefs | Daily Briefs, Financials

In today’s briefing:

EQD / NSE Vol Update / IVs Ride the Fed Seesaw
Kolte Patil: New Launches Were Tepid In Q1 But FY25 Is On Track For Strong Performance
Bajaj Finance: Mixed Q1, However Growth Trajectory Remains Intact
Nuvama: Continues to Post Robust Performance
IREDA QIP Early Look – Strong Momentum, Although Valuations Are Eye-Popping

EQD / NSE Vol Update / IVs Ride the Fed Seesaw

By Sankalp Singh

IVs seesawed through the week on account of the Fed meeting. Trading up to 12.7% going into the meeting & selling-off to 11.4% thereafter.
Vol-Curve Term-structure in Contango post Fed meeting – Nifty50 vol curve sheds its inversion & BankNifty vol curve loses its kinked-shape
BankNifty Smile & Skew characteristics extend relative to previous weeks – despite falling IVs & strengthening index.

Kolte Patil: New Launches Were Tepid In Q1 But FY25 Is On Track For Strong Performance

Kolte Patil reported a decent Q1FY25 with pre-sales of INR 711cr. This was lower than expected, however, adjusted for weak new launch activity, it was healthy.
Q1FY25 pre-sales was mostly led by sustenance sales. New launches worth INR 1500cr have been initiated mostly in Q2FY25, thus will start reflecting in 2HFY25 pre-sales numbers.
With highest-ever quarterly collection at INR 612cr, operating cash flows has remained strong. The balance sheet remains robust with negative net debt, allowing Kolte Patil to aggressively pursue new projects.

Bajaj Finance: Mixed Q1, However Growth Trajectory Remains Intact

Bajaj Finance (“BAF”) reported a decent Q1FY25 with robust AUM growth, however, loan losses came in slightly elevated. AUM grew 31% YoY to reach INR 3,54,192cr.
Annualized credit cost inched up to 2.1% vs 1.75-1.85% guided for FY25. This was led largely by weak collection efficiency. BAF is working on enhancing its collection infrastructure.
BAF listed its housing finance subsidiary on Sep 16, unlocking value for the shareholders. It created history with highest-ever subscription amount and got listed at a premium of 114%.

Nuvama: Continues to Post Robust Performance