Category

Daily Briefs

Sep 22
0

Daily Brief China: China Traditional Chinese Medicine, Jiangsu Hoperun Software, ZIM Integrated Shipping Services, Xiamen Amoytop Biotech Co Ltd, Keymed Biosciences and more

By | China, Daily Briefs

In today’s briefing:

  • (Mostly) Asia-Pac M&A: TCM, Auswide, Latin Resources, Platinum Asset, Trancom, Pacific Smiles
  • Quiddity Leaderboard ChiNext Dec 24: East Group Intra-Review Deletion Causes Changes to Expectations
  • Monthly Container Shipping Tracker | Point A | Point B | (September 2024)
  • Quiddity Leaderboard STAR 50/100 Dec 24: STAR 50 Exp ADD Could Outperform STAR 50 Exp DEL
  • China Healthcare Weekly (Sep.22) – CR Sanjiu’s Trouble, Weight-Loss Drug Market Saturation, Keymed

(Mostly) Asia-Pac M&A: TCM, Auswide, Latin Resources, Platinum Asset, Trancom, Pacific Smiles

By David Blennerhassett

Quiddity Leaderboard ChiNext Dec 24: East Group Intra-Review Deletion Causes Changes to Expectations

By Janaghan Jeyakumar, CFA

  • The ChiNext Index represents the performance of the 100 largest and most liquid A-share stocks listed on the ChiNext Market of the Shenzhen Stock Exchange.
  • The ChiNext 50 index is a subset of the ChiNext Index and it consists of the top 50 names in the ChiNext index with the highest daily average turnover.
  • In this insight, we have presented our updated rankings for Potential ADDs and DELs for the upcoming index rebal event in December 2024.

Monthly Container Shipping Tracker | Point A | Point B | (September 2024)

By Daniel Hellberg

  • Price momentum in August eased slightly vs July, the first M/M dip since March
  • In the next two months, seasonality will moderate and Y/Y comps will get tougher
  • If Q4 momentum wanes, we feel continued strong share performance less likely

Quiddity Leaderboard STAR 50/100 Dec 24: STAR 50 Exp ADD Could Outperform STAR 50 Exp DEL

By Janaghan Jeyakumar, CFA

  • STAR 50 index is a tech-focused, blue-chip index in Mainland China which tracks the top 50 largest and most liquid names in the STAR market of the Shanghai Stock Exchange.
  • STAR 100 index tracks the next 100 names (51st-150th ranks) and it represents the mid-cap segment of the STAR market.
  • In this insight, we take a look at the potential ADDs/DELs for the STAR 50 and STAR 100 indices for the December 2024 index rebal event.

China Healthcare Weekly (Sep.22) – CR Sanjiu’s Trouble, Weight-Loss Drug Market Saturation, Keymed

By Xinyao (Criss) Wang

  • Anhui’s new VBP included OTC TCM for the first time, which poses a big challenge to the pricing autonomy of CR Sanjiu. This makes Sanjiu’s acquisition of Tasly more important/urgent. 
  • Novo Nordisk’s performance has raised concerns. The capacity bottleneck for weight-loss drugs seems resolved. Could this signal that the market for weight-loss drugs is reaching its peak?
  • Keymed Biosciences (2162 HK)’s CM310 will miss this year’s NRDL negotiations, putting the company at a disadvantage. Considering the competitive landscape, we are concerned about Keymed’s performance.

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Sep 22
0

Daily Brief India: Ventive Hospitality Ltd and more

By | Daily Briefs, India

In today’s briefing:

  • Ventive Hospitality Pre-IPO Tearsheet

Ventive Hospitality Pre-IPO Tearsheet

By Nicholas Tan

  • Ventive Hospitality Ltd (0807075D IN) is looking to raise up to US$238m in its upcoming India IPO. The deal will be run by JMF, Axis, HSBC, ICICI, IIFL, Kotak, SBI.
  • Ventive is the largest hospitality asset owner amongst public listed market peers and is focused primarily on luxury offerings across business and leisure in India and Maldives.
  • All of its hospitality assets are operated or franchised by renowned global operators i.e. Marriott, Hilton, Minor and Atmosphere. 

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Sep 22
0

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

By | Daily Briefs, Japan

In today’s briefing:

  • Last Week in Event SPACE: Shin Kong Financial, Swire Pac, Seven & I, Korea Zinc
  • Weekly Deals Digest (22 Sep) – Fuji Soft, Elan, Trancom, Seven & I, China TCM, Platinum, K Bank
  • Tsuruha Holdings (3391 JP): Q1 FY02/25 flash update
  • Focus on Cash Flow Recovery from Investments as Planned, as Well as Appropriate Cash Allocation

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

By David Blennerhassett

Weekly Deals Digest (22 Sep) – Fuji Soft, Elan, Trancom, Seven & I, China TCM, Platinum, K Bank

By Arun George

Tsuruha Holdings (3391 JP): Q1 FY02/25 flash update

By Shared Research

  • Sales increased 5.2% YoY to JPY273.4bn, with operating profit growing 7.1% YoY to JPY15.1bn.
  • The revised forecast for FY02/25 includes revenue of JPY850.8bn and net income of JPY22.2bn.
  • FY02/25 will cover a 9.5-month period, with expected one-time expenses and unchanged annual dividend levels.

Focus on Cash Flow Recovery from Investments as Planned, as Well as Appropriate Cash Allocation

By Aki Matsumoto

  • Last year’s CAPEX plan was also a record high, but ROE growth was limited. We should closely monitor whether the allocation of CAPEX, shareholder returns, and retained earnings is appropriate.
  • When a company finally begins using cash on hand for investments and lacks reliable track records, it should be monitored to ensure that it’s generating sufficient cash flow from CAPEX.
  • The trend continues to remain that most investments are directed overseas. Note that many Japanese companies have a history of having difficulty managing their overseas operations.

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Sep 22
0

Most Read: Midea Group Co Ltd A, China Shipbuilding Industry Group Power, Ventia, Auckland Intl Airport, Fuji Soft Inc, Korea Zinc, Samsung KODEX Samsung Group ETF, Hang Seng Index and more

By | Daily Briefs, Most Read

In today’s briefing:

  • Midea Group (300 HK): Priced at Top End; Offer Size Adj Option Exercise Would Ease Index Fast Entry
  • Midea Group (300 HK): IPO Open Now; Upcoming Index Flows
  • CSI300 Index Rebalance Preview: Round-Trip Trade Tops US$6bn as ETF Creations Soar
  • ASX100/ASX200 Index: Replacement Candidates for Virgin Money (VUK AU)
  • Auckland Airport (AIA NZ) Placement: Index Impact
  • Fuji Soft (9749) – As Bain Prepares to Go Higher, KKR Goes Lower
  • Details of MBK’s Four Major Concerns on Management of Korea Zinc
  • Unique Rebalancing Pattern & Unique Trading Angle of the KODEX Samsung Group ETF
  • Japan Weekly | Rate Cuts Ignite Rally
  • EQD | HSI September Rally: What’s Next?

Midea Group (300 HK): Priced at Top End; Offer Size Adj Option Exercise Would Ease Index Fast Entry

By Brian Freitas

  • Media reports indicate that Midea Group (000333 CH) has priced its H-shares IPO at HK$54.8/share, the top of the range. That is a 19.85% discount to the A-shares.
  • Reports also indicate that the IPO was oversubscribed multiple times with Hillhouse and GIC putting in large orders. That could result in the Offer Size Adjustment Option being exercised.
  • The exercise of the Offer Size Adjustment Option will take the IPO raise to HK$31bn (US$3.98bn) and index inclusion in some of the larger indices will become a lot easier.

Midea Group (300 HK): IPO Open Now; Upcoming Index Flows

By Brian Freitas

  • The Midea Group (300 HK) IPO is being offered at a price range of HK$52-54.8/share, a discount of 20.9%-25% to Midea Group. That will raise US$3.28bn-US$3.46bn for the company.
  • Midea Group (300 HK) will not get Fast Entry to the HSCI but will be added to Southbound Stock Connect on 14 October once the price stabilisation period has ended.
  • Midea Group (300 HK) should get Fast Entry to one global index and that could lead to inclusion in the iShares China Large-Cap (FXI) (FXI US) too.

CSI300 Index Rebalance Preview: Round-Trip Trade Tops US$6bn as ETF Creations Soar

By Brian Freitas

  • There could be 17 changes at the December rebalance with the Industrials sector gaining 3 index spots and the Information Technology sector losing 3 spots.
  • We estimate one-way turnover of 2.9% at the rebalance leading to a one-way trade of CNY 21.96bn (US$3.1bn). There are 22 stocks with over 3x ADV to trade.
  • Impact on the stocks has increased as creations in ETFs linked to the CSI 300 Index continue. That flow will reverse from the deletions in the next few months.

ASX100/ASX200 Index: Replacement Candidates for Virgin Money (VUK AU)

By Brian Freitas

Auckland Airport (AIA NZ) Placement: Index Impact

By Brian Freitas

  • Auckland Intl Airport (AIA NZ) has announced an underwritten placement of NZ$1.2bn and a non-underwritten retail offer to raise NZ$200m.
  • The stock is trading near the low end of its range over the last few years and the 7% discount from the last close should attract investor interest.
  • We estimate passive trackers will need to buy around 13.5% of the placement shares coinciding with the settlement date on 20 September.

Fuji Soft (9749) – As Bain Prepares to Go Higher, KKR Goes Lower

By Travis Lundy

  • Yesterday, KKR amended its plans to take over Fuji Soft Inc (9749 JP) by creating a Two-Tender Scheme, effectively lowering the threshold for eventual success through clearly coercive tactics.
  • 3D (23.46%) and Farallon (9.22%) had already tendered. Contractual terms make it difficult (not impossible) to withdraw. Assuming it goes through, KKR has 32.68%, quasi-negative control. 
  • This revised structure is clearly abusive of minorities and NOT the deal Fuji Soft signed. This should cause Fuji Soft to Change their Opinion. Shareholder (and Bain) Pressure would help.

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

By Sanghyun Park

  • 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.

Japan Weekly | Rate Cuts Ignite Rally

By Mark Chadwick

  • The Federal Reserve made a pivotal move last week, cutting its policy rate by 0.5%—the first rate cut in four years and larger than the typical reduction
  • Japanese stocks rallied strongly this week, with the Nikkei gaining 3.1% and the Topix rising 2.8%, as the yen weakened by more than 2 yen to 143 per dollar.
  • Rotation into economically sensitive areas like machinery and chemicals – KHI, Resonac, and Fujikura all out performed

EQD | HSI September Rally: What’s Next?

By Nico Rosti

  • We continue our coverage of the Hang Seng Index : in our previous insight we theorized a continuation of the rally in September.
  • So far the index is following the path outlined (pullback, then rally). What is going to happen in the next few weeks, if September closes up?
  • Broadly speaking we see a potential continuation of the rally in October, but there may be some resistance in the short-term.

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Sep 22
0

Daily Brief Energy/Materials: Allegheny Technologies and more

By | Daily Briefs, Energy & Materials Sector

In today’s briefing:

  • Allegheny Technologies: Initiation Of Coverage – Titanium and High-Performance Materials Expansion & Other Major Drivers

Allegheny Technologies: Initiation Of Coverage – Titanium and High-Performance Materials Expansion & Other Major Drivers

By Baptista Research

  • ATI’s earnings for the second quarter of 2024 have underlined robust performance with several notable achievements and positive guidance updates, along with particular areas of focus and needed improvement.
  • These highlights capture both the company’s current strengths and the challenges it navigates in a competitive and evolving market.
  • Baptista Research looks to evaluate the different factors that could influence the company’s price in the near future and attempts to carry out an independent valuation of the company using a Discounted Cash Flow (DCF) methodology.

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Sep 22
0

Daily Brief Industrials: ZIM Integrated Shipping Services, Timken Co, Fluor Corp, GXO Logistics, Hexcel Corp, Atkore Inc, MSC Industrial Direct Co Inc, Parsons Corp, Trinet Group, Mastec Inc and more

By | Daily Briefs, Industrials

In today’s briefing:

  • Monthly Container Shipping Tracker | Point A | Point B | (September 2024)
  • The Timken Company: Initiation Of Coverage – Expanding Industrial Motion Revenue and Market Presence Catalyzing Growth! – Major Drivers
  • Fluor Corporation: Initiation Of Coverage – An Insight Into Their Core Business Strategy! – Major Drivers
  • GXO Logistics Inc. Initiation Of Coverage – 4 Reasons We Are Bullish! – Major Drivers
  • Hexcel Corp – cCorporation: Initiation Of Coverage – Their Business Strategy
  • Atkore Inc.: Initiation Of Coverage – How Are They Executing The Expansion into Renewable Energy Sectors? – Major Drivers
  • MSC Industrial Direct Co: Initiation Of Coverage – Is Their Enhanced Digital Infrastructure A Key Growth Catalyst? – Major Drivers
  • Parsons Corporation: Initiation Of Coverage – A Tale Of Strategic Acquisitions & Portfolio Optimization! – Major Drivers
  • TriNet Group Inc.: Initiation Of Coverage – Is Their A Real Competitive Advantage At Play? – Major Drivers
  • MasTec Inc.: Initiation Of Coverage – These Are The 4 Biggest Challenges In Its Path! – Major Drivers

Monthly Container Shipping Tracker | Point A | Point B | (September 2024)

By Daniel Hellberg

  • Price momentum in August eased slightly vs July, the first M/M dip since March
  • In the next two months, seasonality will moderate and Y/Y comps will get tougher
  • If Q4 momentum wanes, we feel continued strong share performance less likely

The Timken Company: Initiation Of Coverage – Expanding Industrial Motion Revenue and Market Presence Catalyzing Growth! – Major Drivers

By Baptista Research

  • The Timken Company, a diversified leader in the industrial sector, recently presented its financial results for the second quarter of 2024.
  • In terms of financial performance, The Timken Company reported a revenue decline of 7% from the previous year, attributed primarily to a significant decrease in demand within the renewable energy sector, specifically from China Wind.
  • Nevertheless, areas like rail, aerospace, and industrial distribution showed organic growth that helped offset the downturn from the renewable energy market.

Fluor Corporation: Initiation Of Coverage – An Insight Into Their Core Business Strategy! – Major Drivers

By Baptista Research

  • Fluor Corporation recently presented its second-quarter financials for 2024, displaying mixed outcomes that reflect the company’s ongoing transition and strategic realignments.
  • With $4.2 billion in revenue and substantial new awards amounting to $3.1 billion, the company signaled robust demand across its diversified service portfolio.
  • Noteworthy is the Urban Solutions segment, which contributed significantly to the backlog, now standing at $32.3 billion.

GXO Logistics Inc. Initiation Of Coverage – 4 Reasons We Are Bullish! – Major Drivers

By Baptista Research

  • GXO, a global leader in logistics and supply chain solutions, recently disclosed its financial results for the second quarter of 2024, presenting an optimistic outlook bolstered by substantial business developments.
  • Despite some regional fluctuations, the company’s performance indicates robust strategic execution, with significant new business wins and advances in technology integration playing a key role in its growth trajectory.
  • Baptista Research looks to evaluate the different factors that could influence the company’s price in the near future and attempts to carry out an independent valuation of the company using a Discounted Cash Flow (DCF) methodology.

Hexcel Corp – cCorporation: Initiation Of Coverage – Their Business Strategy

By Baptista Research

  • Hexcel Corporation has presented its second quarter 2024 results, which showed a commendable performance in several areas, although it also came with cautious revisions for future expectations due to emerging market conditions.
  • This detailed analysis seeks to outline both strengths and challenges as elucidated during the earnings call.
  • Baptista Research looks to evaluate the different factors that could influence the company’s price in the near future and attempts to carry out an independent valuation of the company using a Discounted Cash Flow (DCF) methodology.

Atkore Inc.: Initiation Of Coverage – How Are They Executing The Expansion into Renewable Energy Sectors? – Major Drivers

By Baptista Research

  • Atkore, a prominent player in the construction and electrical solutions sector, delivered a mixed fiscal third-quarter performance amidst challenging market dynamics and competitive pressures.
  • During the quarter, Atkore experienced flat year-over-year organic growth, which highlighted a balance between gains from solar energy projects and its construction services against broad pricing declines across its Electrical business.
  • This period did not witness the usual summer surge in construction demand, which generally bolsters performance.

MSC Industrial Direct Co: Initiation Of Coverage – Is Their Enhanced Digital Infrastructure A Key Growth Catalyst? – Major Drivers

By Baptista Research

  • MSC Industrial Direct Co., Inc., in its fiscal third quarter 2024 earnings report, highlighted several key aspects of its current state and future strategies amid a challenging macroeconomic environment.
  • The company’s focus remains on improving its web initiatives, customer engagement, and operational efficiency while dealing with unexpected gross margin pressures and delays in strategic projects.
  • Baptista Research looks to evaluate the different factors that could influence the company’s price in the near future and attempts to carry out an independent valuation of the company using a Discounted Cash Flow (DCF) methodology.

Parsons Corporation: Initiation Of Coverage – A Tale Of Strategic Acquisitions & Portfolio Optimization! – Major Drivers

By Baptista Research

  • Parsons Corporation’s second quarter 2024 financial results display robust performance, highlighting their successful transition into a high-value solutions provider.
  • The company has integrated advanced technologies such as artificial intelligence, cloud computing, and advanced signal processing, which have contributed significantly to their growth.
  • Their financial performance reflected in record revenue, adjusted EBITDA, and operating cash flow underscores the company’s strong execution capabilities and strategic focus.

TriNet Group Inc.: Initiation Of Coverage – Is Their A Real Competitive Advantage At Play? – Major Drivers

By Baptista Research

  • TriNet’s second quarter 2024 performance demonstrates a robust financial and operational stance amidst challenging market conditions for small and midsized businesses (SMBs).
  • The company has shown resilience in retention and sales, which has been crucial in navigating the persistent uncertainties SMBs face due to high interest rates, softening end markets, and high healthcare cost inflation.
  • Baptista Research looks to evaluate the different factors that could influence the company’s price in the near future and attempts to carry out an independent valuation of the company using a Discounted Cash Flow (DCF) methodology.

MasTec Inc.: Initiation Of Coverage – These Are The 4 Biggest Challenges In Its Path! – Major Drivers

By Baptista Research

  • MasTec’s second quarter earnings for the year 2024 showcased a mix of sustained strategic maneuvers and noticeable market challenges, positioning the company for future growth while navigating ongoing sector-specific headwinds.
  • Generated revenue for the quarter was reported at $3 billion with an adjusted EBITDA of $268 million and an earnings per share of $0.96.
  • These figures reflected a robust operational performance, particularly noting a marginal revenue shortfall against expectations which was offset by better-than-anticipated margins, primarily driven by its Communication and Pipeline segments.

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Sep 22
0

Daily Brief Consumer: Seven & I Holdings, Tsuruha Holdings, Installed Building Products, TSE Tokyo Price Index TOPIX and more

By | Consumer, Daily Briefs

In today’s briefing:

  • Last Week in Event SPACE: Shin Kong Financial, Swire Pac, Seven & I, Korea Zinc
  • Tsuruha Holdings (3391 JP): Q1 FY02/25 flash update
  • Installed Building Products: Initiation Of Coverage – Market Penetration and Expansion in Multi-Family Sector & Other Major Drivers
  • Focus on Cash Flow Recovery from Investments as Planned, as Well as Appropriate Cash Allocation

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

By David Blennerhassett

Tsuruha Holdings (3391 JP): Q1 FY02/25 flash update

By Shared Research

  • Sales increased 5.2% YoY to JPY273.4bn, with operating profit growing 7.1% YoY to JPY15.1bn.
  • The revised forecast for FY02/25 includes revenue of JPY850.8bn and net income of JPY22.2bn.
  • FY02/25 will cover a 9.5-month period, with expected one-time expenses and unchanged annual dividend levels.

Installed Building Products: Initiation Of Coverage – Market Penetration and Expansion in Multi-Family Sector & Other Major Drivers

By Baptista Research

  • Installed Building Products’ fiscal 2024 second quarter showcased a dynamic operating environment with improvements and strategic divestitures reflecting the company’s focus on core growth areas.
  • Key financial results included an impressive increase in single-family sales, steady multi-family segment performance, and a slight uptick in commercial sales, albeit varying by submarket dynamics.
  • Baptista Research looks to evaluate the different factors that could influence the company’s price in the near future and attempts to carry out an independent valuation of the company using a Discounted Cash Flow (DCF) methodology.

Focus on Cash Flow Recovery from Investments as Planned, as Well as Appropriate Cash Allocation

By Aki Matsumoto

  • Last year’s CAPEX plan was also a record high, but ROE growth was limited. We should closely monitor whether the allocation of CAPEX, shareholder returns, and retained earnings is appropriate.
  • When a company finally begins using cash on hand for investments and lacks reliable track records, it should be monitored to ensure that it’s generating sufficient cash flow from CAPEX.
  • The trend continues to remain that most investments are directed overseas. Note that many Japanese companies have a history of having difficulty managing their overseas operations.

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Sep 22
0

Daily Brief Financials: Samsung KODEX Samsung Group ETF, Ventive Hospitality Ltd, K Bank and more

By | Daily Briefs, Financials

In today’s briefing:

  • Unique Rebalancing Pattern & Unique Trading Angle of the KODEX Samsung Group ETF
  • Ventive Hospitality Pre-IPO Tearsheet
  • K Bank IPO: The Bear Case

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

By Sanghyun Park

  • 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.

Ventive Hospitality Pre-IPO Tearsheet

By Nicholas Tan

  • Ventive Hospitality Ltd (0807075D IN) is looking to raise up to US$238m in its upcoming India IPO. The deal will be run by JMF, Axis, HSBC, ICICI, IIFL, Kotak, SBI.
  • Ventive is the largest hospitality asset owner amongst public listed market peers and is focused primarily on luxury offerings across business and leisure in India and Maldives.
  • All of its hospitality assets are operated or franchised by renowned global operators i.e. Marriott, Hilton, Minor and Atmosphere. 

K Bank IPO: The Bear Case

By Arun George

  • K Bank (279570 KS) is a Korean internet bank. It has launched an IPO to raise up to US$734 million.
  • In K Bank 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 rising competitive intensity, the smallest deposit base among Internet banks, below-peer loan book growth, and a high-risk crypto play due to the Dunamu partnership.

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Sep 22
0

Daily Brief Health Care: China Traditional Chinese Medicine, Xiamen Amoytop Biotech Co Ltd, Keymed Biosciences and more

By | Daily Briefs, Healthcare

In today’s briefing:

  • (Mostly) Asia-Pac M&A: TCM, Auswide, Latin Resources, Platinum Asset, Trancom, Pacific Smiles
  • Quiddity Leaderboard STAR 50/100 Dec 24: STAR 50 Exp ADD Could Outperform STAR 50 Exp DEL
  • China Healthcare Weekly (Sep.22) – CR Sanjiu’s Trouble, Weight-Loss Drug Market Saturation, Keymed

(Mostly) Asia-Pac M&A: TCM, Auswide, Latin Resources, Platinum Asset, Trancom, Pacific Smiles

By David Blennerhassett

Quiddity Leaderboard STAR 50/100 Dec 24: STAR 50 Exp ADD Could Outperform STAR 50 Exp DEL

By Janaghan Jeyakumar, CFA

  • STAR 50 index is a tech-focused, blue-chip index in Mainland China which tracks the top 50 largest and most liquid names in the STAR market of the Shanghai Stock Exchange.
  • STAR 100 index tracks the next 100 names (51st-150th ranks) and it represents the mid-cap segment of the STAR market.
  • In this insight, we take a look at the potential ADDs/DELs for the STAR 50 and STAR 100 indices for the December 2024 index rebal event.

China Healthcare Weekly (Sep.22) – CR Sanjiu’s Trouble, Weight-Loss Drug Market Saturation, Keymed

By Xinyao (Criss) Wang

  • Anhui’s new VBP included OTC TCM for the first time, which poses a big challenge to the pricing autonomy of CR Sanjiu. This makes Sanjiu’s acquisition of Tasly more important/urgent. 
  • Novo Nordisk’s performance has raised concerns. The capacity bottleneck for weight-loss drugs seems resolved. Could this signal that the market for weight-loss drugs is reaching its peak?
  • Keymed Biosciences (2162 HK)’s CM310 will miss this year’s NRDL negotiations, putting the company at a disadvantage. Considering the competitive landscape, we are concerned about Keymed’s performance.

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Sep 22
0

Daily Brief TMT/Internet: Jiangsu Hoperun Software, Fuji Soft Inc, Taiwan Semiconductor (TSMC) – ADR, Mks Instruments and more

By | Daily Briefs, TMT/Internet

In today’s briefing:

  • Quiddity Leaderboard ChiNext Dec 24: East Group Intra-Review Deletion Causes Changes to Expectations
  • Weekly Deals Digest (22 Sep) – Fuji Soft, Elan, Trancom, Seven & I, China TCM, Platinum, K Bank
  • Taiwan Dual-Listings Monitor: TSMC Back to Higher Premium Range; ASE Premium Remains Collapsed
  • MKS Instruments Inc: Initiation Of Coverage – Will The Expansion into Artificial Intelligence Server Market Be A Game Changer? – Major Drivers

Quiddity Leaderboard ChiNext Dec 24: East Group Intra-Review Deletion Causes Changes to Expectations

By Janaghan Jeyakumar, CFA

  • The ChiNext Index represents the performance of the 100 largest and most liquid A-share stocks listed on the ChiNext Market of the Shenzhen Stock Exchange.
  • The ChiNext 50 index is a subset of the ChiNext Index and it consists of the top 50 names in the ChiNext index with the highest daily average turnover.
  • In this insight, we have presented our updated rankings for Potential ADDs and DELs for the upcoming index rebal event in December 2024.

Weekly Deals Digest (22 Sep) – Fuji Soft, Elan, Trancom, Seven & I, China TCM, Platinum, K Bank

By Arun George

Taiwan Dual-Listings Monitor: TSMC Back to Higher Premium Range; ASE Premium Remains Collapsed

By Vincent Fernando, CFA

  • TSMC: +17.5% Premium; Recent Trading Back in the 15-20% Range
  • UMC: -0.3% Discount; Middle of the Range, Rising Short Interest in Taiwan
  • ASE: +2.2% Premium; Spiking Short Interest in Taiwan Listed Shares

MKS Instruments Inc: Initiation Of Coverage – Will The Expansion into Artificial Intelligence Server Market Be A Game Changer? – Major Drivers

By Baptista Research

  • MKS Instruments demonstrated robust financial management and strategic positioning in its second-quarter results for the fiscal year 2024.
  • With a reported revenue of $887 million, the company performed at the high end of its guidance, supported by an earnings per share (EPS) of $1.53—a figure that not only exceeded their projected high but also included the positive impact of reduced interest expenses from recent financial maneuvers.
  • Baptista Research looks to evaluate the different factors that could influence the company’s price in the near future and attempts to carry out an independent valuation of the company using a Discounted Cash Flow (DCF) methodology.

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