In today’s briefing:
- Jinke Smart Services (9666 HK): Boyu to Launch a Privatisation Offer?
- HSI Index Options Weekly (Mar 24-28): Volatility Softens as HSI Takes a Breather
- CICC (3908 HK): Underestimated by the Market
- Nikkei Index Options Weekly (Mar 24 – 28): Weak Finish Despite USD/JPY Strength
- Hong Kong Single Stock Options Weekly (March 24 – 28): Earnings Wrap as Breadth Deteriorates
- Edelweiss: Growing Well and Unlocking Value
- Nuvama: Yet Another Strong Quarter
- Nifty Index Options Weekly (Mar 24 – 28): Sticky Implied Vol and a Tactical Hedge Ahead of Tariffs
- Nesco: Strong Q3FY25
- HSCEI Index Options Weekly (Mar 24-28): Call Volumes Rise as Market Digests Key Events
Jinke Smart Services (9666 HK): Boyu to Launch a Privatisation Offer?
- Jinke Smart Services (9666 HK) is in a trading halt “pending the release of an announcement pursuant to the Hong Kong Code on Takeovers and Mergers which constitutes inside information.”
- It is likely that Boyu, the largest shareholder, is seeking to privatise Jinke. The privatisation of PRC-incorporated entities is usually done through a merger by absorption.
- I use several methods to triangulate the likely offer price, which suggests a price range of HK$10.00-16.86, with an average of HK$12.47, a 45% premium to the last close.
HSI Index Options Weekly (Mar 24-28): Volatility Softens as HSI Takes a Breather
- A weekly recap of volatility and price metrics, covering option volumes, volatility trends, the spot/implied relationship, and open interest statistics
- Implied vol softened this week—we examine the trend and its potential implications.
- HSI’s performance vs. SP500 is highlighted against a backdrop of tariffs and global shifts.
CICC (3908 HK): Underestimated by the Market
- China International Capital Corporation (3908 HK)‘s 2H24 net profit surged 33.6% in 2H24, reversing the downtrend in 1H24. It has benefited from lower staff and other operating costs.
- Better 1Q25 market turnover and activities, more IPOs and placements and improved cost dynamics imply that the consensus forecasts are too conservative.
- Its 0.55x P/B cannot adequately reflect better profitability. Despite the denial, CICC’s potential merger with China Galaxy Securities (H) (6881 HK) cannot be completely ruled out.
Nikkei Index Options Weekly (Mar 24 – 28): Weak Finish Despite USD/JPY Strength
- A weekly recap of volatility and price metrics, covering option volumes, volatility trends, the spot/implied relationship, and open interest statistics.
- USD/JPY and Nikkei moved in opposite directions, with the index underperforming its historical relationship to FX.
- Options volume increased throughout the week, peaking on Friday’s move lower.
Hong Kong Single Stock Options Weekly (March 24 – 28): Earnings Wrap as Breadth Deteriorates
- Weekly recap of key option metrics across single stocks, including most active names and strikes, largest volume increases, biggest movers, and key earnings reports.
- Breadth continues to deteriorate against an increasingly hostile global backdrop.
- Both price and implied volatility declined on average, with the typical stock still well below its 52-week high.
Edelweiss: Growing Well and Unlocking Value
- Edelweiss reported a decent Q3FY25 with ex-Insurance PAT of INR 185cr, a growth of 16% YoY excluding NBFC PAT. Growth was led by Asset Management and Insurance businesses.
- Within the Credit business, the Home Finance business which operates under the brand Nido is scaling up well. It disbursed INR 400cr+ worth of retail loans during Q3FY25.
- Edelweiss is focusing on unlocking value and has already filed DRHP for its Alternative Asset Management business. Once approved, it will proceed for an IPO with OFS of INR 1500cr.
Nuvama: Yet Another Strong Quarter
- Nuvama continues to post strong earnings. Its Q3FY25 revenues grew 30% YoY to INR 723cr. Q3FY25 PAT grew 43% YoY to INR 252cr.
- Q3FY25 performance was surprisingly led by the Asset Services segment where revenue grew 77% YoY with addition of new clients and positive asset flow, leading to market share gain.
- Together the Wealth and Asset Management segments performed steady with revenue growth of 18% YoY. Net flows in 9MFY25 in ARR and MPIS assets exceeded that for whole of FY24.
Nifty Index Options Weekly (Mar 24 – 28): Sticky Implied Vol and a Tactical Hedge Ahead of Tariffs
- Weekly recap of volatility and price metrics, covering option volumes, volatility trends, the spot/implied relationship, and open interest.
- Implied vol remained stable, and we discuss why it may be sticky at current levels.
- With global weakness and the upcoming April 2 reciprocal tariffs announcement, we reiterate a tactical hedge.
Nesco: Strong Q3FY25
- Nesco reported a strong Q3FY25 with 16% YoY revenue growth and 17% YoY PAT growth. The exhibitions (BEC) segment grew 13% YoY and the IT Parks segment grew 16% YoY.
- Nesco Foods segment reported 29% YoY growth in revenues led by improved BEC footfalls and scaling up of the Food Court and Restaurants business.
- Recently, Nesco also received IOD from the municipal corporation of Mumbai, thus paving way for receiving future approvals for Tower 2. Tower 2 construction is expected to commence in Q3FY26.
HSCEI Index Options Weekly (Mar 24-28): Call Volumes Rise as Market Digests Key Events
- A weekly recap of volatility and price metrics, covering option volumes, volatility trends, the spot/implied relationship, and open interest statistics.
- HSCEI price and implied vols both softer on the week after digesting large share sale and key earnings reports.
- We highlight the performance of HSCEI vs SP500 and note that this is a relationship to monitor in the rapidly changing political climate.
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