In today’s briefing:
- MSCI Annual Market Classification Review: Korea Doesn’t Make It to the Watchlist
- China E-Commerce Pair Trade: Long Bozun Short Huitongda
- Z Holdings (4689) | The Expanding Opportunity in E-Commerce
- Socar IPO Preview
MSCI Annual Market Classification Review: Korea Doesn’t Make It to the Watchlist
- MSCI had announced the results of the 2022 Global Market Accessibility Review earlier this month. Based on that, no changes were expected at the Market Classification Review.
- Earlier this morning, MSCI announced the results of the Market Classification Review and there are no changes for Asia.
- Korea has not been placed on the watchlist for an upgrade from Emerging to Developed Market. The earliest that Korea could be reclassified from EM to DM is now 2025.
China E-Commerce Pair Trade: Long Bozun Short Huitongda
- Chinese e-commerce is having a solid month with most names up 30% in June. Yet this seems more a dead-cat-bounce than a change in direction of the share price momentum.
- While there’s plenty of additional downside to big e-commerce players in e-commerce, smaller ones such as Baozun Inc. (BZUN US) has limited down side with shares trading near 1.0x P/B multiple.
- Meanwhile Huitongda (9878 HK) is yet to experience the post IPO sell-off and trading at expensive multiples. This raises an opportunity for a Long Bozun Short Huitongda trade.
Z Holdings (4689) | The Expanding Opportunity in E-Commerce
- Z Holdings has the best ecosystem in Japan with 30% top line growth over the past year
- We think that Z HD can out grow the competition in E-Commerce this year by leveraging group synergies
- Z HD has earmarked an aggressive ¥35b to grow its Commerce Business this year
Socar IPO Preview
- Socar, the largest car sharing platform in Korea, is getting ready to complete its IPO in KOSPI. The IPO base case offering size is from $120 million to $159 million.
- The IPO price range is from 34,000 won to 45,000 won. The expected market cap of the company is from 1.2 trillion won to 1.6 trillion won.
- Book building for the institutional investors starts on 1 August. Mirae Asset Securities and Samsung Securities are the lead underwriters in this IPO.
Before it’s here, it’s on Smartkarma
