In today’s briefing:
- CALB IPO – Low-End Appears Reasonable but Will Still Need Some Charging Support
- JPX-Nikkei 400 Rebal 2023: End-Sep 2022
- CALB IPO: First Day Trading Strategy Amid Market Turmoil
- Lionheart Studio IPO Preview
- Intel Vs. TSMC/UMC Long/Short Monitor: Post Conference Take Aways, Intel Performance Reverts
- EVOC’s H Share Class Meeting on 19 October
- BREAKING! Dog Loses To Mangalore – Idemitsu Kosan Does Its Deal for Toa Oil (5008)
- Japan Weekly | Mazda, Mit Motors, Subaru
- Index Rebalance & ETF Flow Recap: S&P/ASX, China A50, SET50, Bilibili, Leapmotor, Onewo, CALB
- Toyo Construction (1890 JP) – There’s Nuance in Them Thar Press Releases
CALB IPO – Low-End Appears Reasonable but Will Still Need Some Charging Support
- CALB aims to raise up to US$1.7bn in its Hong Kong IPO.
- CALB undertakes design, R&D, production and sales of EV batteries and Energy Storage Systems (ESS) products.
- In this note, we will run the deal through our ECM framework and talk about IPO pricing.
JPX-Nikkei 400 Rebal 2023: End-Sep 2022
- JPX-Nikkei 400 is composed of common stocks listed on the Tokyo Stock Exchange. It is a free-float-adjusted market-value-weighted (capped) index composed of 400 constituents.
- A periodic review is conducted by the Index providers, the JPX Group and Nikkei Inc, in August every year. We look at the potential forward inclusions and removals every month.
- Below is a look at potential Inclusions and Removals for the JPX-Nikkei 400 Rebalance to come in August 2023 based on trading data as of end-September 2022.
CALB IPO: First Day Trading Strategy Amid Market Turmoil
- In this insight, we discuss the first day trading strategy of CALB (3931 HK) amid market turmoil.
- CALB priced its IPO at HK$38 per share, which is at the low end of the IPO price range. CALB raised US$1.3 billion in this IPO.
- Unlike recent disappointing IPOs for Leapmotor and Onewo, we believe CALB’s IPO could perform better in its IPO debut.
Lionheart Studio IPO Preview
- Lionheart Studio is getting ready to complete its IPO in November 2022. Lionheart Studios is the second largest IPO in Korea after LG Energy Solution (373220 KS) in 2022.
- The IPO offering amount is 410 billion won to 604 billion won. This would also suggest implied market cap of 3.1 trillion won and 4.5 trillion won.
- A key investment risk for the company is its excessive reliance on one game (Odin: Valhalla Rising) for its revenue and profits.
Intel Vs. TSMC/UMC Long/Short Monitor: Post Conference Take Aways, Intel Performance Reverts
- Intel’s CEO has clearly put NVIDIA Corp (NVDA US) in the cross-hairs with his conference comments and the unveiling of new graphics chips.
- Separate reports are that Apple is cutting back iPhone 14 production volumes, negatively impacting TSMC and the Apple supply chain.
- Intel is now slightly outperforming TSMC & UMC, however has a lot of room to catch up in our view given its large underperformance over the last six months.
EVOC’s H Share Class Meeting on 19 October
- EVOC Intelligent Technology Company Limited H (2308 HK)‘s H Shareholders’ class meeting is scheduled for 19 October. The IFA considers the offer to be fair and reasonable.
- The key conditions are approval by at least 75% of independent H Shareholders (<10% of all independent H Shareholders’ rejection). There is no minimum acceptance condition.
- The offer is attractive and should gain approval. At last close and for a 7 November payment, the gross and annualised spread to the offer is 2.9% and 26.0%, respectively.
BREAKING! Dog Loses To Mangalore – Idemitsu Kosan Does Its Deal for Toa Oil (5008)
- Friday post-close, Idemitsu Kosan (5019 JP) announced a deal to buy out subsidiary Toa Oil Co Ltd (5008 JP). Cornwall has agreed to tender, so it’s a done deal.
- This is at ¥3,150/share, which is nearly 30% higher than the bid 21 months ago, where Cornwall bought enough to block, but it is a disappointing outcome for governance.
- A clearly problematic tolling agreement with the parent, and what could be ¥100bn of excess land value are ignored. Minority investors get hosed. One of the problems of minority investments.
Japan Weekly | Mazda, Mit Motors, Subaru
- Topix down 4.2% on persistent concerns about surging inflation, rising interest rates and a highly uncertain global economic outlook
- The Nikkei index shed 7.7% in September, its biggest monthly decline since March 2020.
- Disappointing commentary from NIKE, APPLE and automakers not helping sentiment
Index Rebalance & ETF Flow Recap: S&P/ASX, China A50, SET50, Bilibili, Leapmotor, Onewo, CALB
- Last week we had the implementation of the first two tranches of the Nikkei 225 (NKY INDEX) rebalance with the third tranche to be implemented at the close on Monday.
- Thursday saw the NIFTY indices implementation while Friday marked the end of the review period for the December rebalance of the Hang Seng family of indices.
- There were large inflows to China, Taiwan, Korea and Hong Kong ETFs during the week while there were some outflows from Japan.
Toyo Construction (1890 JP) – There’s Nuance in Them Thar Press Releases
- On Friday, post-close, there was a flurry of excitement as YFO put out a press release amending the start date of the planned Tender Offer to early November.
- Not long after, there was another release by Toyo Construction (1890 JP) itself.
- You have to read both for what they are. And as they say…. Get your programs here!
💡 Before it’s here, it’s on Smartkarma
Sign Up for Free
The Smartkarma Preview Pass is your entry to the Independent Investment Research Network
- ✓ Unlimited Research Summaries
- ✓ Personalised Alerts
- ✓ Custom Watchlists
- ✓ Company Data and News
- ✓ Events & Webinars
