In today’s briefing:
- New Tender Trigger in Korea: Small Shareholder Collective Action Via Online Platform on T’way Air
- S&P/NZX Index Rebalance Preview: Couple of Changes in March
- Sharing Intel from IR on the Growing Market Interest in Samsung SDS’s Special Dividend
- Quiddity Leaderboard HSTECH Mar 25: US$716mn One-Way; Large Outflow for Xiaomi
- NIFTY NEXT50 Index Rebalance Preview: Final List of Potential Changes in March
- Hanwha Aerospace Acquiring Additional 7.3% Stake in Hanwha Ocean for About 1.3 Trillion Won
- Get Nice Financial (1469 HK)’s Scheme Vote On The 7th March
- A/H Premium Tracker (To 7 Feb 2025): AH Premia Fall Again – Tech Good, Foreigners Buying HK
- Nifty IT Index Rebalance Preview: Oracle Financial Services Could Replace L&T Tech
- Quiddity Leaderboard HSCEI Mar25: One Change Likely; US$204mn One-Way; Sector-Neutral Trade Idea
New Tender Trigger in Korea: Small Shareholder Collective Action Via Online Platform on T’way Air
- ACT’s team for T’way Air’s small shareholders plans to push for a public tender offer once they reach the 3% stake threshold.
- Sono may shift its stance on a public tender offer. With a 3% stake gap, Sono must appease retail shareholders before the AGM, especially after the rights offering backlash.
- FSC probe shows info leaks from brokers and law firms still trigger volume volatility before tender offers. Monitor T’way Air’s trading volume closely until February’s end.
S&P/NZX Index Rebalance Preview: Couple of Changes in March
- There could be one constituent change each for the NZX10 Index and the NZX50 Index/ NZX50 Portfolio Index in March.
- The flows are limited but the impacts are huge, and the stocks could move ahead of the announcement of the changes.
- A2 Milk Co Ltd (ATM NZ) is a potential inclusion to the NZX10 Index, but the inflows will be completely overshadowed by the potential deletion from a global index.
Sharing Intel from IR on the Growing Market Interest in Samsung SDS’s Special Dividend
- SDS seems to wait until after Samsung Electronics and C&T announce their value-up plans. Key dates: JPM IR event on 21st and Board meeting on Feb 18.
- I think they’re leaning toward a special dividend instead of increasing the base payout, based on the tone during our chat.
- The prosecutor’s third-instance appeal likely won’t delay the value-up announcement, as it usually takes a year for a decision, and is unlikely to affect JY Lee or Samsung’s plans.
Quiddity Leaderboard HSTECH Mar 25: US$716mn One-Way; Large Outflow for Xiaomi
- The HSTECH Index tracks the performance of the top 30 technology companies listed in Hong Kong that have high business exposure to certain technology themes.
- The official index changes and indicative weights for the March 2025 index rebal event will be announced on Friday 21st February 2025.
- We continue to expect one change for the HSTECH index in March 2025, combined with capping flows of US$716mn.
NIFTY NEXT50 Index Rebalance Preview: Final List of Potential Changes in March
- With the review period now complete, there could be 7 changes (including 2 migrations) for the NSE Nifty Next 50 Index (NIFTYJR INDEX) in March.
- Bajaj Housing Finance (BHF IN) and Swiggy (SWIGGY IN) are a hair’s breadth apart on market cap and only one of them could be added to the index.
- With quantitative criteria now being used to add stocks to the F&O segment, it is possible there is no change to the index methodology to limit inclusion to F&O members.
Hanwha Aerospace Acquiring Additional 7.3% Stake in Hanwha Ocean for About 1.3 Trillion Won
- Hanwha Aerospace announced that it plans to purchase a 7.3% stake in Hanwha Ocean.
- This 7.3% stake in Hanwha Ocean is currently worth about 1.3 trillion won (US$0.9 billion). After this purchase, Hanwha Aerospace’s stake in Hanwha Ocean will increase from 23.14% to 30.44%.
- There could be a further positive momentum on Hanwha Aerospace in the near-term due to its positive earnings report in 4Q24 combined with acquisition of additional stake in Hanwha Ocean.
Get Nice Financial (1469 HK)’s Scheme Vote On The 7th March
- Back on the 5th November, Get Nice Holdings (64 HK) (GNH) announced a scrip Offer, by way of a Scheme, for 72.99%-held Get Nice Financial Group Ltd (1469 HK) (GNF).
- The (then) HK$1.116/share implied scrip price & divvy compared to a book value of HK1.736/share. and net cash of ~HK$1.00/share. At the 22nd January EGM, GNH shareholders backed the Offer.
- The Scheme Doc is now out, with a Court Meeting on the 7th March, with new GNH shares trading on the 7th April. The IFA (Veda Capital) botched its peer analysis.
A/H Premium Tracker (To 7 Feb 2025): AH Premia Fall Again – Tech Good, Foreigners Buying HK
- AH Premia are lower over the last two weeks spanning the CNY holiday. HK stocks up. H/A discounts slightly narrower on average.
- The past two weeks saw Consumer and Financial AH premia drop. Utilities, energy, and Industrials widened slightly on average. Narrow premia AH dropped more than wide premia.
- AH Premia on average at a new five year low. Some may be foreigners returning to HK. Some may be just drift. Many wide spreads still exist.
Nifty IT Index Rebalance Preview: Oracle Financial Services Could Replace L&T Tech
- Oracle Financial Services (OFSS IN) could replace L&T Technology Services Limited (LTTS IN) in the Nifty IT Index (NSEIT INDEX) at the March rebalance.
- L&T Technology Services Limited (LTTS IN) will also be excluded from the F&O segment at the close on 27 March, so there could be some interesting dynamics at play.
- Passive trackers will need to trade between 0.5-0.6x ADV in the stock. The impact in terms of delivery volume increases to 1.6-2.2x.
Quiddity Leaderboard HSCEI Mar25: One Change Likely; US$204mn One-Way; Sector-Neutral Trade Idea
- The HSCEI serves as a benchmark to reflect the overall performance of the top 50 “Mainland China” securities listed in Hong Kong.
- The official index changes and indicative weights for the March 2025 index rebal event will be announced on Friday 21st February 2025.
- We continue to expect one change for the HSCEI index in March 2025.
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