In today’s briefing:
- Last Week In Event SPACE: Hang Seng, Welcia/Tsuruha, HKT, Genting, Daiichi, Aussie Rare Earths
- Hong Kong Single Stock Options Weekly (Oct 13 – 17): Option Stress Builds, Breadth Weakens
- (Mostly) Asia-Pac M&A: Mandarin Oriental, RPMGlobal, Genting, Mayne Pharma, Iress, Kangji Medical
- China Healthcare Weekly (Oct.19)-Bubble of HK Biotech Is Bursting, Ping An Good Doctor Is Overvalued
Last Week In Event SPACE: Hang Seng, Welcia/Tsuruha, HKT, Genting, Daiichi, Aussie Rare Earths
- Hang Seng Bank (11 HK) is trading tight – perhaps too tight – to terms, as every punter views the deal as a term deposit.
- Be long Welcia Holdings (3141 JP). Be long Tsuruha Holdings (3391 JP). Buy dips. Buy big dips post-tender. Future guidance will include synergy effects.
- Richard Li’s HKT Ltd (6823 HK) is in the crosshairs as FCC moves to expel the telco from U.S. networks.
Hong Kong Single Stock Options Weekly (Oct 13 – 17): Option Stress Builds, Breadth Weakens
- Single stock options showed early signs of stress, with both volumes and implied vols moving higher as Put trading outpaced Calls.
- Breadth was weak across single names, with only 3 of 11 sectors trading higher.
- We provide a table of earnings events for the week ahead.
(Mostly) Asia-Pac M&A: Mandarin Oriental, RPMGlobal, Genting, Mayne Pharma, Iress, Kangji Medical
- I tally 43 – mostly firm, mostly Asia-Pac – arb transactions currently being discussed and analysed on Smartkarma.
- Three new deal was discussed on Smartkarma this week: Mandarin Oriental International (MAND SP), RPMGlobal Holdings Limited (RUL AU) and Genting Malaysia (GENM MK).
- Key updates/news took place on: Mayne Pharma (MYX AU), Iress Ltd (IRE AU), and Hangzhou Kangji Medical Instrument Co., Ltd. (9997 HK).
China Healthcare Weekly (Oct.19)-Bubble of HK Biotech Is Bursting, Ping An Good Doctor Is Overvalued
- The “turning point” occurs as share price of innovative drug sector is pulling back. Many companies would see valuations halved – potentially more than once.The decline is far from over.
- The current main goal of biotech is to turn losses into profits ASAP. If it fails to make a profit, it may not be recognized by the market.
- Due to the concerns on Ping An Healthcare and Technology (1833 HK)’s business model, peak revenue scale could be just RMB8 billion. In other words, Ping An Healthcare is overvalued.
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