In today’s briefing:
- Index Rebalance & ETF Flow Recap: MSCI STD/SC, FTSE AW/AC, EPRA, MVIS, TW50, Mindtree/L&T, AMFI
- Infomedia (IFM AU): TA Associates/Viburnum Funds Proposal
- Hitachi Maxell (6810 JP) – Very Big On-Market Buyback
- Last Week in Event SPACE: NTT, Link Admin, AGL, Mindtree/Larsen & Toubro, Sihuan Pharma
- Top 20 Best Performers in the Korean Stock Market (Week of 13 May)
- Silergy (6415.TT): 1Q22 Review-Clients Are Asking to Solve Supply Shortage and Even to Add Prices.
- Infomedia Receives a A$1.70 Per Share Offer from TA Associates and Viburnum
- Greenhaven Road Capital Q1 2022 Letter
- Polen Focus Growth Q1 2022 Portfolio Manager Commentary
- Polen Global Growth Q1 2022 Portfolio Manager Commentary
Index Rebalance & ETF Flow Recap: MSCI STD/SC, FTSE AW/AC, EPRA, MVIS, TW50, Mindtree/L&T, AMFI
- MSCI announced the changes to the Standard and Small Cap Indexes, along with FIF/NOS changes as part of the May SAIR. Plenty of flows in Asia Pacific.
- Announcement of changes to the FTSE AW/AC, HSI INDEX, HSCEI INDEX, HSTECH INDEX and SENSEX INDEX will be made after market close on Friday.
- There were inflows into Taiwan, Australia and Hong Kong focused ETFs, while there were redemptions from China and Korea focused ETFs.
Infomedia (IFM AU): TA Associates/Viburnum Funds Proposal
- Online auto parts and service provider Infomedia Ltd (IFM AU) has received a non-binding proposal – by way of a Scheme – from TA Associates and Viburnum Funds.
- The Offer price is A$1.70/share, a 32.8% premium to last close.
- Via a tie-in with Viburnum, TA disclosed a 14.46% interest. IFM said it is also in preliminary discussions with other interested parties.
Hitachi Maxell (6810 JP) – Very Big On-Market Buyback
- Maxell Ltd (6810 JP) has been restructuring itself and the cost-cutting and rationalising of sales efforts and regions has led to post-relisting record OP.
- But another (non-cash) write-off this past year has led to the third year of net losses in a row.
- The company has, however, taken its actual cashflows and turned them into a large buyback
Last Week in Event SPACE: NTT, Link Admin, AGL, Mindtree/Larsen & Toubro, Sihuan Pharma
- The NTT (9432 JP) / NTT Data (9613 JP) transaction is a little complicated, but the end goal appears, like before, to push operating control below holdcos on the chain.
- Both Link Administration (LNK AU) and Dye & Durham tanked over the unfortunate timing of an ACCC delay and MAC disconnect – before a price recovery to close the week.
- MCB says the AGL Energy Ltd (AGL AU) de-merger plan is bad, and now analysts say it is “underwhelming.” Duh. But the alternative? Underwhelming too, but less independent.
Top 20 Best Performers in the Korean Stock Market (Week of 13 May)
- This is the second weekly series on the “Top 20 Best Performers in the Korean Stock Market Adjusted for Trading Value & Mkt Cap.”
- Starting this weekly, we include stocks in both KOSPI and KOSDAQ. All the stocks in KOSPI and KOSDAQ are ranked, adjusted for market cap and trading value.
- Among the top 20 performers, NCSoft, Hyundai Motor, Kia Motors, Dohwa Engineering, DB Hitek, SK Telecom, and KT Corp were included.
Silergy (6415.TT): 1Q22 Review-Clients Are Asking to Solve Supply Shortage and Even to Add Prices.
- The 1Q22 revenue/GM/OPM was US$215mn/55%/36% respectively, with revenue growing 50% YoY and -2.6% QoQ. Silergy considers its own business will grow quarter by quarter in 2022.
- Silergy expects to see ~3% revenue contribution for Automotive in 2022, which means it should grow over 3% by the end of 2022.
- Silergy’s order visibility is extended from 3 quarters to over 6~8 quarters now. Meanwhile, Silergy aims to split the share to let more retail investors to hold their shares.
Infomedia Receives a A$1.70 Per Share Offer from TA Associates and Viburnum
- TA Associates and Viburnum Funds’ non-binding indicative privatisation proposal is A$1.70 per Infomedia Ltd (IFM AU) share in cash, a 32.8% premium to the last close.
- The timing of the bid looks opportunistic in the context of the shares hitting a 3-year low on 9 May. Viburnum with a 14.5% stake is the largest shareholder.
- The Board notes expressions of interest from other parties. TA and Viburnum’s bid is the catalyst for other bidders to show their hands.
Greenhaven Road Capital Q1 2022 Letter
- Greenhaven Road Capital Partners Fund returned approximately -26.5% net in the first quarter.
- The three big factors that currently appear to be dominating investors’ focus are rising interest rates/inflation, rising oil prices, and war in Ukraine.
Polen Focus Growth Q1 2022 Portfolio Manager Commentary
- Polen Capital is a high-conviction growth investment manager.
- During the first quarter of 2022, the Polen Focus Growth Composite Portfolio returned -13.39% and -12.56% gross and net of fees.
Polen Global Growth Q1 2022 Portfolio Manager Commentary
- Polen Capital is a high-conviction growth investment manager.
- We scour the globe in search of the highest quality, sustainable companies to invest in.
- Aon, Visa, and Mastercard were the top absolute performers during the quarter.
Before it’s here, it’s on Smartkarma
