In today’s briefing:
- Solactive Global Uranium & Nuclear Components Index Rebalance: 6 Adds, 5 Deletes
- Toshiba – Preparing for 2QFY23
- Korean Holdcos Vs Opcos Gap Spreads Opportunities in 1Q 2023
- Nidec (6594): A V-Shaped Recovery Cannot Be Taken for Granted
- Adani Enterprises US$2.4bn FPO – Updates, Pricing, Structure, Anchor and Some More
- Sany Heavy: Buy
Solactive Global Uranium & Nuclear Components Index Rebalance: 6 Adds, 5 Deletes
- Solactive has announced the constituent changes for the Global Uranium & Nuclear Components Index. There are 6 adds and 5 deletes with implementation at the close on 31 January.
- Estimated one-way turnover is in excess of 12% and will result in a one-way trade of US$207m. There are 11 stocks with estimated passive flows greater than 5x ADV.
- Some of the inclusions have had BIG rallies over the last couple of months and there could be profit taking on those names in the next few days.
Toshiba – Preparing for 2QFY23
- We have turned slightly more bearish on Toshiba’s near term fundamental prospects as we now have concerns about the industrial side of its semiconductor business.
- The re-emergence of a WDC-Kioxia deal and the likelihood of a change in BOJ policy make us wonder whether bankers might want to wait a little on financing.
- As such, while recent weakness makes an aggressively negative view difficult we do not feel that upside risks are particularly threatening either.
Korean Holdcos Vs Opcos Gap Spreads Opportunities in 1Q 2023
- In this insight, we highlight the pricing gap divergences of the major Korean holdcos and opcos in 1Q 2023.
- Of the 33 pair trades, 2/3 of them involved holdcos outperforming opcos in the past year and 1/3 of them involved opcos outperforming holdcos in the same period.
- We highlight 33 pair trades that involve Korean holdcos and opcos.
Nidec (6594): A V-Shaped Recovery Cannot Be Taken for Granted
- Nidec is headed into the red due to market disruption in China, restructuring charges and stagflation.
- The first two of these factors should be temporary, but the third points to longer term pressure on margins. Competition in EV motors is another problem that won’t go away.
- In a weak economy characterized by stagflation, it is too early to turn bullish.
Adani Enterprises US$2.4bn FPO – Updates, Pricing, Structure, Anchor and Some More
- Adani Enterprises is looking to raise INR200bn (US$2.4bn) via a further public offering (FPO). Bookbuild will begin tomorrow (27th Jan 23) and last till the end of the month.
- Adani Enterprises is the flagship company of the Adani Group. The group’s entities’ stock performance over the past few years has made the founder one of the richest persons globally.
- We have covered most aspects of the deal in our earlier note published. In this note, we talk about the recent updates and the deal pricing and structure.
Sany Heavy: Buy
- China’s construction engineering industry declined more than expected in 2022
- The industry may reach the inflection point by the end of 2023 or 1H24
- Sany Heavy is expected to recover earlier than its peers
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