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Most Read: Innovent Biologics Inc, Siam Makro Public, Sinopec Engineering Group H, SK IE Technology, Kumho Petro Chemical and more

In today’s briefing:

  • Smartkarma Webinar | Potential Inclusions to the Hang Seng Index (HSI INDEX)
  • Siam Makro (MAKRO TB): Placement, Primary Offering & Index Implications
  • Sinopec Engineering (2386 HK): Priced For Liquidation. Again
  • SKIET Float Rate Adjustment for KOSPI 200 & MSCI Resulting from Block Deals
  • Potential Yearend Short-Covering Stocks in Korea

Smartkarma Webinar | Potential Inclusions to the Hang Seng Index (HSI INDEX)

By Smartkarma Research

For our next Webinar, we’re excited to welcome back Insight Provider Brian Freitas, who will cover the upcoming rebalance of the Hong Kong Hang Seng Index (HSI INDEX) as it pushes towards its target of 80 index members by mid-2022.

The webinar will be hosted on Wednesday, 17 November 2021, 17:00 SGT/HKT.

Brian Freitas is a highly experienced ex-delta one trader with over 17 years of experience. He was previously with Barclays, Macquarie, Credit Suisse, and BNP Paribas.


Siam Makro (MAKRO TB): Placement, Primary Offering & Index Implications

By Brian Freitas

  • Siam Makro Public (MAKRO TB) has bought the Lotus business from CPALL, CPM and CPH for THB 217.95bn by offering 5.01bn shares at THB 43.5/share.
  • CPALL, CPM and CPH will now sell 1.248bn shares to the public, while Siam Makro Public (MAKRO TB) will sell another 1.362bn new shares. This will increase the free float.
  • The higher free float will see buying by FTSE trackers in the short term, while the stock could be included in the MSCI Thailand and SET50 indices in May/June 2022.

Sinopec Engineering (2386 HK): Priced For Liquidation. Again

By David Blennerhassett

  • Sinopec Engineering Group H (2386 HK) (“SEG”) is currently trading 11% below its net cash position.
  • Net income has steadily increased over the past four years. 1H21 profit increased 6.8% compared to the corresponding period.
  • The payout ratio has averaged ~60% in the past five years. The current yield is 10%. 

SKIET Float Rate Adjustment for KOSPI 200 & MSCI Resulting from Block Deals

By Sanghyun Park

  • The SKIET block deals results are just out. It still fell short of the initial target of selling up to 4.8%. Also, the 7.82% discount is practically the ceiling.
  • Additional overhang risks will continue to exert structural downward pressure on SKIET’s share price.
  • However, we will see temporary events that will lead to a share price rebound. Likely, the index float rate of the KOSPI 200 and MSCI Standard will be adjusted upward.

Potential Yearend Short-Covering Stocks in Korea

By Sanghyun Park

  • In Korea’s local stock market, intense short-covering at the yearend dividend season has been consistently observed since mid-November. So, this post screens potential short-covering stocks.
  • KOSPI stocks meeting these screening factors include Kumho Petro Chemical, SK Inc, Lotte Shopping, Mirae Asset Securities, CJ Corp, and HiteJinro.
  • In the KOSDAQ, we can obtain the following results if the same screening factors are applied: LX Semicon, BH Co Ltd, and Seegene.

Before it’s here, it’s on Smartkarma