In today’s briefing:
- HSCEI Index Options Weekly (Feb 24-28): Shifting Sentiment
- Pentamaster (1665 HK): Pricing WAS Fair As Offer Comfortably Gets Up
- Hong Kong Single Stock Options Weekly (Feb 24 – 28): Broad Deterioration
- HSI Index Options Weekly (Feb 24-28): Volatility Increases as Rally Reverses
- Airtasker Ltd – Media deals drive positive revenue trends
- Plover Bay (1523 HK): Brilliant FY24 Results/Growth To Continue
HSCEI Index Options Weekly (Feb 24-28): Shifting Sentiment
- Put trading as a percentage of total volume continues to increase and coupled with a shift in the skew highlights changing sentiment.
- Volatile price action this week with Wednesday and Friday both moving ~3.50%.
- Implied and historic volatilities were all up on the week and seasonal setup over next two weeks not favorble.
Pentamaster (1665 HK): Pricing WAS Fair As Offer Comfortably Gets Up
- Pentamaster International (1665 HK)‘s Scheme overwhelmingly gets up after a wild week of trading.
- After touching an intra-day low of HK$0.78/share on the 25th Feb – 28% adrift of the HK$1.00/share terms – shares closed at HK$0.97/share prior the results of the Scheme Meeting.
- 58.2% of disinterested shareholders opted to vote. Just 0.5% of those shareholders present voted against the Scheme; or just 0.29% of total disinterested shareholders. Not even close.
Hong Kong Single Stock Options Weekly (Feb 24 – 28): Broad Deterioration
- Broad based weakness, less than ½ of optionable stocks were up on the week with the average size of losses larger than average size of gains.
- Total single stock Put option volume the highest in the past 4 months pushing the Put/Call ratio to a local extreme.
- Laggards from the rally holding on, rally leaders broadly weak.
HSI Index Options Weekly (Feb 24-28): Volatility Increases as Rally Reverses
- HSI down 1.64% on the week but under the hood volatility was percolating with a larger weekly range and 2 daily moves > 3%.
- Volatilities rise across the board and shift in the skew favoring Puts.
- Trading dynamics between spot and implied vol continue to evolve and seasonal setup over the next two weeks not favourable for HSI.
Airtasker Ltd – Media deals drive positive revenue trends
- Airtasker Limited (ASX:ART) is an online marketplace for local services, connecting people and businesses who need work done with people who want to work.
- ART’s reported H1 FY25 results are messy, with a number of non-cash items including media capital spend distorting reported numbers.
- On an adjusted basis revenue growth was 11%, with Airtasker marketplace growth closer to 15%.
Plover Bay (1523 HK): Brilliant FY24 Results/Growth To Continue
- Plover Bay Technologies (1523 HK) reported FY24 revenues/profits up 23.9%/35.4% YoY. H2 FY24 revenue/profit growth was steady at 20%/20% YoY.
- On the conference call, the company did not provide explicit guidance for FY25 but mentioned that growth has been healthy for the six weeks of FY25 and will continue.
- Trading at 19x/16.4x FY24/25e (assuming 20% growth and flat margins), with a dividend yield of 5.8% and 10% of the market cap in net cash, the stock is worth exploring.
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