In today’s briefing:
- KRX Imposes a 20% Cap on Weight Ceiling in Sector ETFs with Few Constituents
- China Consumption Weekly (1 Apr 2024): Tencent, Alibaba, Xiaomi, Midea
- ECM Weekly (1st Apr 2024) – Shinhan, GlobalWafers, Mankind, Hyundai Marine, Bharti Hexacom, ChaPanda
- Ibotta IPO Valuation Analysis
- Vanguard (5347.TT): A Consensus View to Build a New 12″ Fab in Singapore.
KRX Imposes a 20% Cap on Weight Ceiling in Sector ETFs with Few Constituents
- KRX limits individual stock weight to 20% in ETFs with few constituents. KRX confirms working on it, with an official announcement expected soon.
- Excludes index ETFs like KOSPI 200. KRX hasn’t finalized criteria for constituent number but expected to involve fewer than 30 stocks.
- This could open new passive trading opportunities. Sector ETF cap at 30%, large AUM ones offer noteworthy trading potential.
China Consumption Weekly (1 Apr 2024): Tencent, Alibaba, Xiaomi, Midea
- There is a rumor in social media that Tencent will dismiss 10% – 30% of its employees.
- Alibaba withdrew the IPO application of its subsidiary Cainiao and all the other IPOs were halted as well.
- Xiaomi began to sell its first vehicle model SU7, but it is too late for the company to enter the market.
ECM Weekly (1st Apr 2024) – Shinhan, GlobalWafers, Mankind, Hyundai Marine, Bharti Hexacom, ChaPanda
- Aequitas Research puts out a weekly update on the deals that were covered by the team recently along with updates for upcoming IPOs.
- On the IPO front, HD Hyundai Marine Solution (443060 KS) and Bharti Hexacom were in the market trying to raise over US$500m each.
- Placements flow continued unabated this week as well, India, Taiwan and South Korea seeing large blocks.
Ibotta IPO Valuation Analysis
- In my insight, I discuss valuation framework for comparable company analysis and outline revenue growth scenario under my base case.
- Considering Ibotta achieved profitability in 2023 driven by strong growth in the segment of third-party publishers, I view EV/Revenue as the most appropriate methodology to value Ibotta.
- I have a positive view of the upcoming Ibotta IPO. The company’s efficient B2B2C business model, success-based marketing approach and scale provide Ibotta with a long runway of growth.
Vanguard (5347.TT): A Consensus View to Build a New 12″ Fab in Singapore.
- The utilization rate for Vanguard in 1Q24F is at a recent low of 50-53%, indicating that the utilization rate is expected to increase from 2Q24 onwards.
- Vanguard should consider building a new 12″ Fab in Singapore, aligning with our potential acquisition of Taiwan Semiconductor (TSMC) – ADR (TSM US)’s 40nm and above business.
- In conclusion, the future outlook appears promising for the coming 3~4 years.
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