In today’s briefing:
- FTSE TWSE Taiwan Div+ Index: Recent Performance & Potential Trades
- Mori Trust Sogo – Mori Trust Hotel REIT Merger
- Pendal/Perpetual: 23 Dec Scheme Meeting
- Sunshine Insurance Group Pre-IPO – PHIP Updates – Mixed Bag
- JB Financial Group: Four Key Investment Merits
FTSE TWSE Taiwan Div+ Index: Recent Performance & Potential Trades
- The review period for the FTSE TWSE Taiwan Dividend+ index ended Monday, 21 November. We forecast 26 adds/ 5 deletes in December – the flows are huge.
- Stocks with potential inflows have outperformed stocks with potential outflows over multiple time periods going back a month. Yesterday was an especially good day for the strategy.
- We expect continued pre-positioning ahead of the passive flows will help the stocks with inflows outperform stocks with outflows. A reversal of performance could come post implementation.
Mori Trust Sogo – Mori Trust Hotel REIT Merger
- Yesterday, Mori Trust Sogo Reit (8961 JP) (MTR) and Mori Trust Hotel Reit (3478 JP) (MTH) announced a merger to be effective 1 March 2023. MTR will be the survivor.
- The ratio is 1.00 : 0.92 MTR:MTH but MTR will conduct a 2:1 stock split on effective date to make it 1.00 : 1.84 to allow retail to continue holding.
- This will effectively increase the size of MTR by 35%, and re-distributes earnings structure. There will be index consequences.
Pendal/Perpetual: 23 Dec Scheme Meeting
- After the Supreme Court of NSW ruled that Perpetual Ltd (PPT AU) cannot stall the Scheme for Pendal Group (PDL AU), the Scheme Booklet is now out.
- Under the revised terms, Pendal shareholders will receive 1 Perpetual (share for every 7 Pendal shares plus $1.65/share cash. The IE concluded the terms are fair and reasonable.
- The Scheme Meeting will be held on the 23 December, with an expected implementation date on the 23 January.
Sunshine Insurance Group Pre-IPO – PHIP Updates – Mixed Bag
- Sunshine Insurance Group (SIG), a life, health and P&C insurance company, aims to raise up to US$1bn in its HK IPO.
- SIG is an integrated insurance provider which offers both life and health (L&H) and property and casualty (P&C) insurance in China.
- We have looked at the company’s past performance in our previous notes. In this note, we will talk about the updates from its latest filings.
JB Financial Group: Four Key Investment Merits
- There are four major reasons why we like JB Financial Group.
- They include highest ROE among peers, highest dividend yield among peers, potential inclusion in KOSPI200 in 2023, and continued pressure by Align Partners to improve corporate governance.
- One of the key risk factors of the company is that it is not a nationwide banking group but most of its operations are in the southwestern portion of Korea.
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