In today’s briefing:
- Yuanta/P-Shares Taiwan Div+ ETF Rebalance: Huge Turnover & Flow Overlap
- NIFTY200 Momentum30 Index Rebalance: HUGE Turnover and Trade as Financials Shine
- Sanhua Intelligent Controls H Share Listing: The Investment Case
- Berli Jucker (BJC TB) – Packaged Consumerism
- BDL IN – Bharat Dynamics: Missile Systems Specialist Strengthening India’s Defence Edge
- Friday’s Cap Reversion in the SOL Shipbuilding Top 3 ETF Sets up a Clean Flow Trade Opportunity
- ECM Weekly (9 June 2025) – Haitian, Sanhua, Virgin Aus, Primo, Kitazato, Wistron, Kelun Bio, Mao Gep
- Weekly Update (MEDXF, IDT, FTV)
Yuanta/P-Shares Taiwan Div+ ETF Rebalance: Huge Turnover & Flow Overlap
- There are 5 adds and 5 deletes for the Yuanta/P-Shares Taiwan Dividend Plus ETF in June with implementation starting on 20 June and ending on 26 June.
- Estimated one-way turnover is 17.7% resulting in a round-trip trade of TWD 158bn (US$5.3bn). There are 10 stocks with over 5 days of ADV to trade.
- There are a few stocks that have same-way or opposing flows from other index trackers over the next couple of weeks and those stocks could outperform/underperform their peers.
NIFTY200 Momentum30 Index Rebalance: HUGE Turnover and Trade as Financials Shine
- There are 20 changes a side for the Nifty200 Momentum30 Index that will be implemented at the close on 27 June. We had correctly forecast 39 of the 40 changes.
- Estimated one-way turnover is 68.4% resulting in a round-trip trade of INR 160bn (US$1.9bn). There are 22 stocks with over 1x ADV to trade.
- The Financials sector has 9 net inclusions to the index while the Information Technology and Consumer Discretionary sectors have 2 net deletions each.
Sanhua Intelligent Controls H Share Listing: The Investment Case
- Zhejiang Sanhua Intellignt Controls Co., Ltd. (002050 CH), the world’s largest refrigeration and air-conditioning control component manufacturer, has filed its PHIP for a H Share listing to raise US$1.0-1.5 billion.
- Sanhua’s market share in the global refrigeration and air-conditioning control component market was 45.5% in terms of revenue in 2024, according to Frost & Sullivan.
- The fundamentals are good, with the positives (refrigeration and aircon rising growth, stable margin, and cash generation) outweighing the negatives (automotive declining growth, US tariffs overhang).
Berli Jucker (BJC TB) – Packaged Consumerism
- Berli Jucker (BJC TB) remains one of the most interesting consumer plays in Thailand through Big C, glass and aluminium cans, and its consumer supply chain segment.
- The company booked a strong start to 2025 across all segments from a profit growth perspective, with package sales being impacted by lower raw material prices, but that improved margins.
- 2Q has seen a slower start due to poor weather, slower tourism, partly due to the earthquake, but May has seen a turnaround, and management is confident in annual guidance
BDL IN – Bharat Dynamics: Missile Systems Specialist Strengthening India’s Defence Edge
- BDL reported strong FY25 revenue of ₹3,345 Cr and PAT of ₹550 Cr, though EBITDA margins declined to 24.6% from earlier highs.
- With a ₹22,700 Cr order book, BDL is expanding via new plants in Jhansi, Amravati, and Ibrahimpatnam backed by ₹600+ Cr capex.
- At 100x PE and 75xPE FY27e valuations appear stretched, leaving limited margin of safety despite strong execution and order visibility.
Friday’s Cap Reversion in the SOL Shipbuilding Top 3 ETF Sets up a Clean Flow Trade Opportunity
- Top 3 stays unchanged — HD KSOE beats HHI on consolidated sales, and index rules push HHI to the Plus side since a group sibling’s already in the Top 3.
- Plus Universe also looks stable, but HD Hyundai Mipo’s weight drops from 14.12% to 10% Friday — triggering ~₩40B in passive outflows, a key flow trade setup.
- ₩40B sell vs. ₩60–90B daily turnover, all hitting via one ETF desk (Shinhan SOL) Friday afternoon — flow size could move the tape. Should keep it on our radar.
ECM Weekly (9 June 2025) – Haitian, Sanhua, Virgin Aus, Primo, Kitazato, Wistron, Kelun Bio, Mao Gep
- Aequitas Research’s weekly update on the IPOs, placements, lockup expiry and other ECM linked events that were covered by the team over the past week.
- On the IPO front, Foshan Haitian Flavouring & Food (603288 CH) and Zhejiang Sanhua Intellignt Controls Co., Ltd. (002050 CH) might launch their IPOs soon.
- On the placements front, Wistron Corp (3231 TT) launched its well flagged GDR, along with a few more deals this week.
Weekly Update (MEDXF, IDT, FTV)
Fortive (FTV) will spin off 100% of Ralliant on June 28, 2025.
Ralliant will trade under the ticker RAL. When issued trading will begin on June 25th. Ralliant will host an investor day on June 10, 2025.
Ralliant (Precision Technologies) will be a $2.2B revenue company (2024) focused on Test & Measurement and Sensors & Safety Systems.
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