Korea/Asia, Events, IPOs, Douglas Research Advisory

Douglas Kim

Korea/Asia, Events, IPOs

Douglas Research Advisory

Equity Bottom-Up

LG Chem Ltd. is a chemical manufacturer. The Company's products include petrochemicals, plastic resins, and engineering plastics. LG Chem also produces industrial and electronic materials.

<ul>
<li>In this insight, we discuss a pair trade between LG Chem Ltd (051910 KS) (common) and LG Chem (051915 KS) (preferred). </li>
<li>The price ratio (LG Chem common/preferred) is now at 2.16x, which is more than 2 STD (standard deviations). Our trading strategy involves revert to the mean. </li>
<li>One of the key reasons why LG Chem (preferred)'s share price has fared much worse YTD than LG Chem (common) is due to much larger selling by the foreign investors. </li>
</ul>


In this insight, we discuss a pair trade between LG Chem Ltd (051910 KS) (common) and LG Chem (051915 KS) (preferred). 
The price ratio (LG Chem common/preferred) is now at 2.16x, which is more than 2 STD (standard deviations). Our trading strategy involves revert to the mean. 
One of the key reasons why LG Chem (preferred)'s share price has fared much worse YTD than LG Chem (common) is due to much larger selling by the foreign investors. 


A Pair Trade Between LG Chem (Common) And LG Chem (Preferred)

Head of Research, Krungthai XSpring

Waraporn Wiboonkanarak

Head of Research

A full service Thai brokerage

Krungthai XSpring

Krungthai XSpring is a full service broker. The company provides a wide range of investment services such as Securities Brokerage, Derivative Agent Business, Securities Borrowing and Lending, Securities Trading, Underwriting, Financial Advisory, Wealth Advisory, Private Fund Management and International Markets Securities Trading. 

In terms of credibility, Fitch Ratings has assigned Krunghtai XSpring a long-term rating of AA- and a national short-term rating of F1+ with stable outlook.

Advanced Info Service Public Company Limited is granted a 25-year concession expiring the year 2015 by the Telephone Organization of Thailand to provide cellular phone services.  The Company provides analog mobile phone services through the Nordic Mobile Telephone (NMT900) network, and digital phone services through the Global Systems for Mobile Communication (GSM) network.

<ul><li>We maintain our Neutral rating, as the attractiveness of the valuation based on the fundamentals (with the share price implying 12% upside to the fair value) is offset by the relatively modest average EPS growth of a 7% CAGR during 2025-27E, which is at the lower end compared to regional peers. In addition, the tactical view is neutral.</li><li>The 12-month forward fair value has been revised to Bt314 (previously Bt317), reflecting adjustments to the macroeconomic variables in the beta estimation based on our new house view.</li><li>This adjustment immaterially impacted the required return, which remains almost unchanged at 4.0%.</li></ul>

We maintain our Neutral rating, as the attractiveness of the valuation based on the fundamentals (with the share price implying 12% upside to the fair value) is offset by the relatively modest average EPS growth of a 7% CAGR during 2025-27E, which is at the lower end compared to regional peers. In addition, the tactical view is neutral.The 12-month forward fair value has been revised to Bt314 (previously Bt317), reflecting adjustments to the macroeconomic variables in the beta estimation based on our new house view.This adjustment immaterially impacted the required return, which remains almost unchanged at 4.0%.

Advanced Info Service - Continued Earnings Momentum 1Q25E

Leading International Investment Research, Edison Investment Research

Edison Investment Research

Leading International Investment Research

Edison is an investment research and advisory company, with offices in North America, Europe, the Middle East and AsiaPac. The heart of Edison is our world renowned equity research platform and deep multi-sector expertise. At Edison Investment Research, our research is widely read by international investors, advisors and stakeholders. Edison Advisors leverages our core research platform to provide differentiated services including investor relations and strategic consulting.

International Public Partnerships / Equity Bottom-Up

International Public Partnerships Ltd. is a closed ended investment company incorporated in Guernsey.  The company's investment policy is to invest in public or social infrastructure assets in the UK, Europe, Australia, North America.

International Public Partnerships (IPPXF US)

International Public Partnerships’ (INPP’s) results for the year ended 31 December 2024 show continuing strong operational performance, underpinning fully covered dividend growth. Primarily reflecting higher government bond yields rather than any change in the portfolio outlook or risk, an increase in the valuation discount rate resulted in a 5% decline in NAV per share. Similarly to the broader sector, INPP shares trade significantly (23%) below NAV and the board remains determined to address this. Portfolio realisations and capital recycling will continue, the share buyback programme has been substantially increased and a revised investment advisory agreement will reduce costs.

International Public Partnerships’ (INPP’s) results for the year ended 31 December 2024 show continuing strong operational performance, underpinning fully covered dividend growth. Primarily reflecting higher government bond yields rather than any change in the portfolio outlook or risk, an increase in the valuation discount rate resulted in a 5% decline in NAV per share. Similarly to the broader sector, INPP shares trade significantly (23%) below NAV and the board remains determined to address this. Portfolio realisations and capital recycling will continue, the share buyback programme has been substantially increased and a revised investment advisory agreement will reduce costs.

International Public Partnerships — Further measures to combat the discount

Pan-Asia Catalysts/Events, Quiddity Advisors

David Blennerhassett

Pan-Asia Catalysts/Events

Quiddity Advisors

Event-Driven

AVJennings Limited operates in the land development and housing sectors. The Company constructs residential houses in Australia along with residential land development. AVJennings serves customers in Australia.

<ul>
<li>The AVID consortium's late-November A$0.67/share NBIO appeared a lock; until <a href="https://www.smartkarma.com/entities/ho-bee-land-ltd" target="_blank" data-smartkarma-citation="entities:18298:1" rel="noopener">Ho Bee Land Ltd (HOBEE SP)</a> lobbed a A$0.70/share NBIO in January. Ho Bee also acquired a 5.39% stake. </li>
<li>
<a href="https://www.smartkarma.com/entities/avjennings-ltd" target="_blank" data-smartkarma-citation="entities:12578:1" rel="noopener">AVJennings (AVJ AU)</a> granted both suitors exclusive due diligence, the terms of which expired in February. AVJ said at the time it remained in "<a href="https://announcements.asx.com.au/asxpdf/20250224/pdf/06fvdy180hcb4s.pdf" target="_blank" rel="noopener">active discussions</a>" with both.</li>
<li>AVJ and AVID have now <a href="https://announcements.asx.com.au/asxpdf/20250401/pdf/06h6xsrcrlf7z6.pdf" target="_blank" rel="noopener">entered into a Scheme Implementation Deed</a> at A$0.655/share. A special dividend - included in the Scheme consideration - could add A$0.072/share in franking credits. </li>
</ul>


The AVID consortium's late-November A$0.67/share NBIO appeared a lock; until Ho Bee Land Ltd (HOBEE SP) lobbed a A$0.70/share NBIO in January. Ho Bee also acquired a 5.39% stake. 

AVJennings (AVJ AU) granted both suitors exclusive due diligence, the terms of which expired in February. AVJ said at the time it remained in "active discussions" with both.
AVJ and AVID have now entered into a Scheme Implementation Deed at A$0.655/share. A special dividend - included in the Scheme consideration - could add A$0.072/share in franking credits. 


AVJennings (AVJ AU): AVID's Firm Offer As Ho Bee Walks

Travis Lundy

T&D Holdings, Inc. is a holding company established through the merger of Taiyo Life Insurance, Daido Life Insurance, and T&D Financial Life Insurance. The Company manages life insurance operations for its subsidiaries.

<ul>
<li>Yesterday, post-close, <a href="https://www.smartkarma.com/entities/t-d-holdings-inc" target="_blank" data-smartkarma-citation="entities:3431:1" rel="noopener">T&amp;D Holdings (8795 JP)</a>  <a href="https://ssl4.eir-parts.net/doc/TE8795/ir_material3/247966/00.pdf" target="_blank" rel="noopener">announced</a> ¥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.</li>
<li>The company also <a href="https://ssl4.eir-parts.net/doc/TE8795/ir_material3/247966/00.pdf" target="_blank" rel="noopener">announced</a> guidance for Adjusted Profit for 2025 at ¥130bn (up), and guidance for March 2026 at ¥140bn (lower growth than this past year). </li>
<li>They <a href="https://ssl4.eir-parts.net/doc/TE8795/ir_material3/247814/00.pdf" target="_blank" rel="noopener">announced</a> the current ¥50bn buyback was 87.5% complete (they have until 13 May to complete) and a <a href="https://ssl4.eir-parts.net/doc/TE8795/ir_material3/247965/00.pdf" target="_blank" rel="noopener">new buyback</a> starting 19 May to spend up to ¥100bn over 10.5mos.</li>
</ul>


Yesterday, post-close, T&amp;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.


T&D Holdings (8795) - A Really Good Look (Divs Up, Big Buyback, Good Historical Stats)

Dividends
Insights on Dividends

A Pair Trade Between LG Chem (Common) And LG Chem (Preferred)

In this insight, we discuss a pair trade between LG Chem (051910 KS) (common) and LG Chem (051915 KS) (preferred). We recommend going long on LG...

Douglas Kim

Advanced Info Service - Continued Earnings Momentum 1Q25E

The 12-month forward fair value has been revised to Bt314 (previously Bt317), reflecting adjustments to the macroeconomic variables in the beta...

Krungthai XSpring

International Public Partnerships — Further measures to combat the discount

International Public Partnerships’ (INPP’s) results for the year ended 31 December 2024 show continuing strong operational performance,...

Edison Investment Research

AVJennings (AVJ AU): AVID's Firm Offer As Ho Bee Walks

Trading right at terms. If you can take (full) advantage of the franking credits, get involved here and on any weakness. Otherwise, this is an avoid.

David Blennerhassett

T&D Holdings (8795) - A Really Good Look (Divs Up, Big Buyback, Good Historical Stats)

T&D announced a div hike and a buyback. The last 4 buybacks have been bigger, longer, lower ADV impact but the stock outperforms during, and...

Travis Lundy