New Zealand Professional Investment Services Firm, Forsyth Barr

Forsyth Barr

New Zealand Professional Investment Services Firm

We are proud to be a New Zealand owned firm, with 21 offices throughout the country and over 300 employees. We assist personal, institutional and corporate clients providing a full range of investment services.

Forsyth Barr is a foundation New Zealand Exchange firm (NZX) and accredited market participant. We have been confirmed by the Financial Markets Authority as a Qualifying Financial Entity (QFE).

Research is the cornerstone of our advice. We have one of New Zealand's leading teams of analysts. Our global affiliations ensure comprehensive research coverage of all major investment markets.

Equity Bottom-Up

Auckland International Airport Limited owns and operates the Auckland International Airport.  The Airport includes a single runway, an international terminal and two domestic terminals.  The Airport also has commercial facilities which includes airfreight operations, car rental services, commercial banking center and office buildings.

<ul><li>Auckland Airport's (AIA) aeronautical pricing outlook is positive, but is likely to take a short-term hit as a result of the Commerce Commission's (ComCom) ongoing PSE4 (FY23–FY27) pricing review.</li><li>We expect the latter to rule against AIA in its final report due in 1Q25, which would mean AIA lowers its pricing in FY26 and FY27.</li><li>However, perhaps more importantly for AIA, we don't expect the ComCom to raise big enough concerns about the current regulatory settings or AIA's behaviour, which would be a precursor to either it, or the government, launching an inquiry—as requested by airlines. </li></ul>

Auckland Airport's (AIA) aeronautical pricing outlook is positive, but is likely to take a short-term hit as a result of the Commerce Commission's (ComCom) ongoing PSE4 (FY23–FY27) pricing review.We expect the latter to rule against AIA in its final report due in 1Q25, which would mean AIA lowers its pricing in FY26 and FY27.However, perhaps more importantly for AIA, we don't expect the ComCom to raise big enough concerns about the current regulatory settings or AIA's behaviour, which would be a precursor to either it, or the government, launching an inquiry—as requested by airlines. 

Auckland Airport - Calibrating The (Likely) Aero Price Cut

Pan-Asia Index Rebalances/ Events/ Delta One, Periscope Analytics

Brian Freitas

Pan-Asia Index Rebalances/ Events/ Delta One

Periscope Analytics

Periscope Analytics focuses on event-driven trades across Asia Pacific and provides comprehensive, timely and systematic coverage of index changes to major Asia Pacific indices in a structured manner.

The analysis includes forecasted inclusions and exclusions to all major Asian indices that have significant amount of tracking assets, including estimates of passive buy/sell flow on the stocks. The service also provides commentary and impact of market consultations, ground rule changes, and other events (IPOs, spin-offs, M&A) that could lead to index changes and passive flow.

Periscope Analytics works with multi-strategy hedge funds, proprietary trading firms, stat arb trading groups and long-only investors that invest and trade in the Asia Pacific region with the data being used to trade index rebalances, avoid pre-positioning and passive flow, and to time entry into and exit from stocks.

Event-Driven Trades Across Asia Pacific

Event-Driven

Sieyuan Electric Company Limited manufactures and markets power supply and converting equipment as well as high voltage electrical apparatus and high voltage monitoring instruments.  The Company's  main products include arc suppression coils, variable frequency power sources, lightning arrester on-line monitoring instruments, and anti-disturbance test instruments.

<ul>
<li>There could be 17 changes at the December rebalance with the Industrials and Materials sectors could gaining 2 spots each and the Information Technology sector losing 3 spots.</li>
<li>Estimated one-way turnover of 3% at the December rebalance leading to a one-way trade of CNY 30.2bn (US$4.3bn). There are 14 stocks with over 2x ADV to trade.</li>
<li>The forecast adds have outperformed the forecast deletes over the last month despite rising markets and a wall of money flowing into <a href="https://www.smartkarma.com/entities/shanghai-shenzhen-csi-300-index" target="_blank" data-smartkarma-citation="entities:22906:1" rel="noopener">Shanghai Shenzhen CSI 300 Index (SHSZ300 INDEX)</a> ETFs.</li>
</ul>


There could be 17 changes at the December rebalance with the Industrials and Materials sectors could gaining 2 spots each and the Information Technology sector losing 3 spots.
Estimated one-way turnover of 3% at the December rebalance leading to a one-way trade of CNY 30.2bn (US$4.3bn). There are 14 stocks with over 2x ADV to trade.
The forecast adds have outperformed the forecast deletes over the last month despite rising markets and a wall of money flowing into Shanghai Shenzhen CSI 300 Index (SHSZ300 INDEX) ETFs.


CSI300 Index Rebalance Preview: Rising Markets and ETF Creations Take Round-Trip Trade to US$8.5bn

Research Coverage on Small and Micro-Cap Companies, Zacks Small Cap Research

Zacks Small Cap Research

Research Coverage on Small and Micro-Cap Companies

Zacks Small Cap Research provides research coverage on small- and micro-cap companies that are “under-followed” or “under-valued” by Wall Street. We produce high quality equity research for the institutional and retail investor on microcap firms we believe are well positioned for future growth. The Zacks SCR analyst team has an average of 20 years of experience in investment research. We conduct significant due diligence in an effort to maintain the highest quality small-cap universe.

Titan International, Inc. manufactures mounted tire and wheel systems for off-highway equipment used in agriculture, construction, mining, military, recreation, and grounds care. The Company has worldwide manufacturing and distribution facilities.

<ul><li>Titan International is a global manufacturer of off-the-road tires, wheels and undercarriages.</li><li>The company serves the agricultural, earthmoving / construction, and consumer markets.</li><li>Recent strategic actions have created higher margins in recent years and brought the leverage ratio down to 1.9x.</li></ul>

Titan International is a global manufacturer of off-the-road tires, wheels and undercarriages.The company serves the agricultural, earthmoving / construction, and consumer markets.Recent strategic actions have created higher margins in recent years and brought the leverage ratio down to 1.9x.

TWI: Titan announces 3rd quarter 2024 results and provides update on industry conditions. There may be light at the end of the destocking tunnel.

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.

Braemar Shipping Services PLC / Equity Bottom-Up

Braemar Plc operates as an international ship-brokerage company. The Company offers advisory services in shipping investment, chartering, and risk management. Braemar serves customers worldwide.

<p>Government changes to National Insurance (NI) arrangements have added to Braemar’s costs, implying lower profitability. However, underlying operations continue to expand and diversify, and Braemar remains well-positioned to drive its future growth strategy. The trading outlook is promising and Braemar should be able to leverage its strong balance sheet in pursuit of strategic growth. We have maintained our revenue estimates but trimmed our operating profit forecasts to reflect the additional NI charges. However, we maintain our dividend discount model-based valuation of 535p. </p>

Government changes to National Insurance (NI) arrangements have added to Braemar’s costs, implying lower profitability. However, underlying operations continue to expand and diversify, and Braemar remains well-positioned to drive its future growth strategy. The trading outlook is promising and Braemar should be able to leverage its strong balance sheet in pursuit of strategic growth. We have maintained our revenue estimates but trimmed our operating profit forecasts to reflect the additional NI charges. However, we maintain our dividend discount model-based valuation of 535p. 

Braemar - Robust trading, but UK budget adds to costs

SGX Market Strategist, Equity & Fixed Income, Singapore Exchange Ltd (SGX)

Geoff Howie

SGX Market Strategist, Equity & Fixed Income

Asia’s leading multi-asset exchange

Singapore Exchange Ltd (SGX)

Singapore Exchange is Asia’s leading and trusted market infrastructure, facilitating the exchange of capital and ideas to create value for people, businesses and economies. As a multi-asset exchange operating equity, fixed income and derivatives markets to the highest regulatory standards, SGX is a vertically integrated business that provides listing, trading, clearing, settlement, depository and data services.

With about 40% of listed companies and over 80% of listed bonds originating outside of Singapore as well as established linkages across the region and in Europe, SGX is Asia’s most international and connected exchange. Offering a full suite of derivatives products across Asian equity indices, commodities and currencies, SGX is the world’s most liquid international market for the benchmark equity indices of China, India, Japan and ASEAN.

As Asia’s pioneering central counterparty, SGX is globally recognised for its risk management and clearing capabilities, and was one of the first globally to adopt the Principles for Financial Market Infrastructure.

Headquartered in AAA-rated Singapore, SGX has over 800 employees including offices in Beijing, Chicago, Hong Kong, London, New York, Mumbai, San Francisco, Shanghai and Tokyo.

Wee Hur Holdings Ltd provides building construction services and acts as the management or main contractor in construction projects for both private and public sectors. The Company's clients from the private sector include property owners and developers, and those from the public sector comprise government bodies and statutory boards.

<ul><li>In Oct, the STI generated a 0.7% decline in total return, with the FTSE ASEAN All-Share Index declining in total return and FTSE Asia Pacific Index declining 8%.</li><li>The trio of STI Banks averaged a 0.7% total return while the iEdge SG Adv Manufacturing Index declined 7% and the iEdge S-REIT Index declined 5.4%.</li><li>As detailed in the table above, among the 20 stocks that booked the highest net institutional inflow in Oct, Hongkong Land, Singapore Post, Wee Hur Holdings, DFI Retail Group Holdings and SATS generated the strongest total returns on the month, averaging 15.4% total returns.</li></ul>

In Oct, the STI generated a 0.7% decline in total return, with the FTSE ASEAN All-Share Index declining in total return and FTSE Asia Pacific Index declining 8%.The trio of STI Banks averaged a 0.7% total return while the iEdge SG Adv Manufacturing Index declined 7% and the iEdge S-REIT Index declined 5.4%.As detailed in the table above, among the 20 stocks that booked the highest net institutional inflow in Oct, Hongkong Land, Singapore Post, Wee Hur Holdings, DFI Retail Group Holdings and SATS generated the strongest total returns on the month, averaging 15.4% total returns.

HKL, SingPost & Wee Hur Led Net Institutional Inflow & Gainers in October

Industrials
Industrials Insights

Auckland Airport - Calibrating The (Likely) Aero Price Cut

Auckland Airport's (AIA) aeronautical pricing outlook is positive, but is likely to take a short-term hit as a result of the Commerce Commission's...

Forsyth Barr

CSI300 Index Rebalance Preview: Rising Markets and ETF Creations Take Round-Trip Trade to US$8.5bn

There could be 17 changes in Dec. Estimated 1-way turnover is 3%; 1-way trade is US$4.3bn. There are 14 stocks with over 2x ADV to trade. The adds...

Brian Freitas

TWI: Titan announces 3rd quarter 2024 results and provides update on industry conditions. There may be light at the end of the destocking tunnel.

Titan International is a global manufacturer of off-the-road tires, wheels and undercarriages. The company serves the agricultural, earthmoving /...

Zacks Small Cap Research

Braemar - Robust trading, but UK budget adds to costs

Government changes to National Insurance (NI) arrangements have added to Braemar’s costs, implying lower profitability. However, underlying...

Edison Investment Research

HKL, SingPost & Wee Hur Led Net Institutional Inflow & Gainers in October

In Oct, the STI generated a 0.7% decline in total return, with the FTSE ASEAN All-Share Index declining in total return and FTSE Asia Pacific...

Singapore Exchange Ltd (SGX)