In today’s briefing:
- BYD (1211 HK): God’s Eye & Potential HSTECH Index Inclusion
- T&D Holdings (8795) – A Really Good Look (Divs Up, Big Buyback, Good Historical Stats)
- HEM: Fear of Fear Itself
- FnGuide Semiconductor Top10 Index Rebalance Preview: Just One Change Likely
- Korean Holdcos Vs Opcos Gap Trading Opportunities in 2Q 2025
- Skyworth Group (751 HK)’s Latest Partial Buyback. Thoughts On Proration
- Northern Star’s Acquisition of De Grey Mining: The Many Index Implications & Flows
- BYD (1211 HK) Tactical Outlook: Buy-The-Dip Scenarios With Passive Buying from HSI/HSCEI Trackers
- KCC Corp: Considering on Issuing an Overseas EB for Its 10% Stake in Samsung C&T
- Wuxi XDC Placement – Following Biologics Playbook, past Deals Have Been Mixed
BYD (1211 HK): God’s Eye & Potential HSTECH Index Inclusion
- BYD (1211 HK) raised US$5.6bn in a secondary offering a few weeks ago and the stock is trading a lot higher than the placement price.
- Buying from global index trackers is done, but there will be more passive buying from Hang Seng Index (HSI) and Hang Seng China Enterprises Index (HSCEI) trackers later this month.
- With the release of the God’s Eye advanced driver-assistance system (ADAS), the stock could be added to the Hang Seng TECH Index (HSTECH INDEX) in June, bringing more passive inflows.
T&D Holdings (8795) – A Really Good Look (Divs Up, Big Buyback, Good Historical Stats)
- Yesterday, post-close, T&D Holdings (8795 JP) announced ¥40 for 31-Mar-25 FY-end dividend (¥80/yr) and ¥120/share/year in the year to March 2026 on a higher planned payout ratio.
- The company also announced guidance for Adjusted Profit for 2025 at ¥130bn (up), and guidance for March 2026 at ¥140bn (lower growth than this past year).
- They announced the current ¥50bn buyback was 87.5% complete (they have until 13 May to complete) and a new buyback starting 19 May to spend up to ¥100bn over 10.5mos.
HEM: Fear of Fear Itself
- US surveys indicate a fear of tariffs and DOGE, leading to a negative sentiment.
- Despite these fears, resilient labour markets suggest that concerns may be exaggerated.
- There is an expectation of reversing unnecessary easing in 2026 due to high underlying price and wage inflation.
FnGuide Semiconductor Top10 Index Rebalance Preview: Just One Change Likely
- With the averaging period for the April rebalance now complete, we forecast just 1 change for the FnGuide Semiconductor Top10 Index at the upcoming rebalance.
- Based on the passive assets tracking the index, there will be between 0.8-2.2x ADV to trade in the forecast changes.
- The resumption of short selling makes it easier to position for these events. That could also result in the shorts moving a lot ahead of implementation.
Korean Holdcos Vs Opcos Gap Trading Opportunities in 2Q 2025
- In this insight, we highlight the recent pricing gap divergences of the major Korean holdcos and opcos which could provide trading opportunities in 2Q 2025.
- Among the 38 holdcos/opcos, there have been several pairs that have resulted in significant price ratio divergence which could provide trading opportunities in terms of their pricing gaps closing reversal.
- Given the resumption in short selling in Korea, there is going to be a lot more interest in pair trades in Korea, especially among the major Korean holdcos/opcos.
Skyworth Group (751 HK)’s Latest Partial Buyback. Thoughts On Proration
- Back on the 23 December 2022, Skyworth Group (751 HK) announced (another) partial buyback, at HK$3.80/share, a 20.25% premium to undisturbed. On the 28 March, terms were bumped to $5.00/share.
- At the close of the Offer, the Wong Concert Group held 50.35%, and were no longer subject to the creeper rule. The Group now holds 56.04%
- Yet another Partial Offer has been announced (HK$3.11/share, a 15.19% premium)), which will lift the Group’s stake to 66.45%. Minimum pro-ration is 37.84%. It is likely to go higher.
Northern Star’s Acquisition of De Grey Mining: The Many Index Implications & Flows
- Northern Star Resources (NST AU)‘s acquisition of De Grey Mining (DEG AU) is expected to complete in the next 3 weeks.
- There will be an ad hoc inclusion to the S&P/ASX 200 (AS51 INDEX) and passive buying in Northern Star Resources (NST AU) from a bunch of trackers of different indices.
- The acquisition brings Northern Star Resources (NST AU) close to inclusion in the S&P/ASX 20 Index, but it’s not there yet.
BYD (1211 HK) Tactical Outlook: Buy-The-Dip Scenarios With Passive Buying from HSI/HSCEI Trackers
- A recent insight by Brian Freitas signals that BYD (1211 HK)buying from global index trackers is done (more passive buying from HSI/HSCEI trackers may come later this month).
- As of Tuesday, the stock is currently in the middle of a modest pullback, 1 week down, reached a support area where the probability of a bounce is around 50%.
- We are at the start of the month, it may be early to benefit from the passive buying discussed by Brian Freitas, however this pullback could support a buy-the-dips strategy.
KCC Corp: Considering on Issuing an Overseas EB for Its 10% Stake in Samsung C&T
- Kcc Corp (002380 KS) is considering on issuing an overseas exchangeable bond (EB) for its 10% stake in Samsung C&T (028260 KS).
- KCC is the second largest shareholder of Samsung C&T with a 10% stake in the company which is worth 2 trillion won (US$1.4 billion).
- Our NAV valuation of KCC Corp suggests NAV per share of 332,947 won, which is 27% higher than current price.
Wuxi XDC Placement – Following Biologics Playbook, past Deals Have Been Mixed
- WuXi AppTec (2359 HK) aims to raise around US$250m via selling around 3.5% stake in WuXi XDC Cayman (2268 HK).
- WuXi XDC Cayman (WXDC) is a contract research, development, and manufacturing organization (CRDMO) focused on the global antibody drug conjugates (ADC) and broader bioconjugate market providing integrated and end-to-end services.
- In this note, we will talk about the placement and run the deal through our ECM framework.
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