Global Emerging Market Equities, Propitious Research

Wium Malan, CFA

Global Emerging Market Equities

Independent, Fundamental Quantitative Research

Propitious Research

Fully independent, fundamental and quantitative equity research, focused on companies in the Telecommunication, Media, Technology, Internet and Healthcare sectors in the Global Emerging Markets. Idea generation focused on Quality stocks, trading below their intrinsic Value, with sound Corporate Governance.

Thematic (Sector/Industry)

<ul>
<li>This insight provides a summary of the key news developments impacting the largest countries and constituents of the Global Emerging Markets equity indices.</li>
<li>Macro data points: Manufacturing PMI for <em><strong>China</strong></em>, <em><strong>South Korea</strong></em>, <em><strong>Taiwan</strong></em>, and <em><strong>ASEAN</strong></em>. <em><strong>Indian</strong></em> and <em><strong>Brazilian</strong></em> GDP. <em><strong>South Korean</strong></em> CPI.</li>
<li>Companies mentioned: <a href="https://www.smartkarma.com/entities/naver-corp" target="_blank" data-smartkarma-citation="entities:16029:1" rel="noopener">Naver Corp (035420 KS)</a>, <a href="https://www.smartkarma.com/entities/kakao-corp" target="_blank" data-smartkarma-citation="entities:15002:1" rel="noopener">Kakao Corp (035720 KS)</a>, <a href="https://www.smartkarma.com/entities/tencent-holdings-ltd" target="_blank" data-smartkarma-citation="entities:26:1" rel="noopener">Tencent (700 HK)</a>, <a href="https://www.smartkarma.com/entities/prosus-nv" target="_blank" data-smartkarma-citation="entities:28104:1" rel="noopener">Prosus (PRX NA)</a>, <a href="https://www.smartkarma.com/entities/didi-chuxing-inc" target="_blank" data-smartkarma-citation="entities:27467:1" rel="noopener">DiDi Global (DIDI US)</a>
</li>
</ul>


This insight provides a summary of the key news developments impacting the largest countries and constituents of the Global Emerging Markets equity indices.
Macro data points: Manufacturing PMI for China, South Korea, Taiwan, and ASEAN. Indian and Brazilian GDP. South Korean CPI.
Companies mentioned: Naver Corp (035420 KS), Kakao Corp (035720 KS), Tencent (700 HK), Prosus (PRX NA), DiDi Global (DIDI US)



Global Emerging Markets Weekly: 3 December 2021

Head of Research, IPOs & Placements, Aequitas Research

Sumeet Singh

Head of Research, IPOs & Placements

IPOs and Placements coverage across Asia Pacific

Aequitas Research

We cover all listing across the Asia Pacific along with follow-up placements. As of Dec 2020, our team had covered 539 IPOs with a hit rate of 73.5% and 685 placements with a hit rate of 66.8%.

We combine fundamental bottom-up views with our proprietary quantitative framework to provide a holistic coverage across new listings and placements. Our coverage includes pre-IPO notes before the deal is launched, follow-up analysis once the deal is live and post-listing trading analysis as well.

Event-Driven

<ul>
<li>On 13th Apr 2021, Grab (0967655D SP) announced that it plans to go public in the US in partnership with Altimeter Growth Corp (AGC US) at an equity valuation of US$39.6bn.</li>
<li>The merger and listing will be completed on 2nd Dec 2021.</li>
<li>In this note, we will talk about the recent updates since the company first reported its plans to list.</li>
</ul>


On 13th Apr 2021, Grab (0967655D SP) announced that it plans to go public in the US in partnership with Altimeter Growth Corp (AGC US) at an equity valuation of US$39.6bn.
The merger and listing will be completed on 2nd Dec 2021.
In this note, we will talk about the recent updates since the company first reported its plans to list.


Grab SPAC Listing - Still Firing on Only One Cylinder - Lit by Consumer Incentives

Equity Capital Markets

SK IE Technology   / Equity Capital Markets

<ul>
<li>SK IE Technology’s (SKIE) shareholder aims to raise around US$430m via selling part of its shareholding.</li>
<li>The deal comes close to the six-month lock-up expiry post listing and hence, there is a high likelihood that the selldown might have been expected.</li>
<li>In this note, we will run the deal through our ECM framework.</li>
</ul>


SK IE Technology’s (SKIE) shareholder aims to raise around US$430m via selling part of its shareholding.
The deal comes close to the six-month lock-up expiry post listing and hence, there is a high likelihood that the selldown might have been expected.
In this note, we will run the deal through our ECM framework.


SK IE Technology Placement - Is Probably Expected

Korea/Asia, Events, IPOs, Douglas Research Advisory

Douglas Kim

Korea/Asia, Events, IPOs

<div class="content-highlight"><p>In the past few days, <a href="https://www.smartkarma.com/entities/hybe-co-ltd" target="_blank" data-smartkarma-citation="entities:28959:1" rel="noopener">HYBE (352820 KS)</a> announced an equity based partnership with Dunamu as well as the launch of the BTS NFT (non-fungible token). Dunamu will invest 700 billion won in HYBE through a third-party allocation and paid-in capital increase. HYBE will also invest 500 billion won in Dunamu through a third-party allocation and paid-in capital increase.</p></div><ul>
<li>HYBE will issue 2.3 million new shares (5.9% of current outstanding shares of 39 million) at a purchase price of 304,008 won in this transaction. HYBE currently has a stock price of 383,500 won so the purchase price is about 21% lower than the current price. </li>
<li>As a result of this transaction, HYBE will have a 2.48% stake in Dunamu, which would imply a value of 20.2 trillion won ($17.2 billion) for Dunamu. The date of this share acquisition completion will be on 24 November.</li>
</ul><div class="content-highlight"><p><strong>Metaverse &amp; NFT - A Re-Rating Factor for HYBE? </strong>The metaverse and NFT have taken the world by storm in 2021. One could argue that the extremely strong demand for NFT and metaverse in 2021 have been one of the key reasons for the re-rating of HYBE this year. Certainly, HYBE faces the risk associated with its high dependence on the BTS. However, it has been able to partly diffuse this risk with the acquisition of Ithaca Holdings in April 2021. Now, with the extraordinary demand for NTF and metaverse related contents and services, HYBE is well positioned to capitalize these trends.</p></div>

In the past few days, HYBE (352820 KS) announced an equity based partnership with Dunamu as well as the launch of the BTS NFT (non-fungible token). Dunamu will invest 700 billion won in HYBE through a third-party allocation and paid-in capital increase. HYBE will also invest 500 billion won in Dunamu through a third-party allocation and paid-in capital increase.
HYBE will issue 2.3 million new shares (5.9% of current outstanding shares of 39 million) at a purchase price of 304,008 won in this transaction. HYBE currently has a stock price of 383,500 won so the purchase price is about 21% lower than the current price. 
As a result of this transaction, HYBE will have a 2.48% stake in Dunamu, which would imply a value of 20.2 trillion won ($17.2 billion) for Dunamu. The date of this share acquisition completion will be on 24 November.
Metaverse &amp; NFT - A Re-Rating Factor for HYBE? The metaverse and NFT have taken the world by storm in 2021. One could argue that the extremely strong demand for NFT and metaverse in 2021 have been one of the key reasons for the re-rating of HYBE this year. Certainly, HYBE faces the risk associated with its high dependence on the BTS. However, it has been able to partly diffuse this risk with the acquisition of Ithaca Holdings in April 2021. Now, with the extraordinary demand for NTF and metaverse related contents and services, HYBE is well positioned to capitalize these trends.

A Equity-Based Partnership Between HYBE and Dunamu & The Upcoming Launch of BTS NFT

Pan-Asia Catalysts/Events, Quiddity Advisors

David Blennerhassett

Pan-Asia Catalysts/Events

Quiddity Advisors

Equity Bottom-Up

<div>
<p><em><strong>This week in StubWorld ...</strong></em></p>
</div>
<div>
<div>
<div class="content-highlight">
<p>Despite <a href="https://www.smartkarma.com/entities/kakao-pay-corp" target="_blank" data-smartkarma-citation="entities:29675:1" rel="noopener">Kakao Pay (377300 KS)</a>'s meteoric debut, parent <a href="https://www.smartkarma.com/entities/kakao-corp" target="_blank" data-smartkarma-citation="entities:15002:1" rel="noopener">Kakao Corp (035720 KS)</a> appears fully priced.</p>
</div>
</div>
</div>
<div>
<p>Preceding my comments on Kakao are the weekly setup/unwind tables for Asia-Pacific Holdcos.</p>
</div>
<div>
<p>These relationships trade with a minimum liquidity threshold of US$1mn on a 90-day moving average, and a % market capitalisation threshold - the $ value of the holding/opco held, over the parent’s market capitalisation, expressed in percent - of at least 20%.</p>
</div>


This week in StubWorld ...




Despite Kakao Pay (377300 KS)'s meteoric debut, parent Kakao Corp (035720 KS) appears fully priced.




Preceding my comments on Kakao are the weekly setup/unwind tables for Asia-Pacific Holdcos.


These relationships trade with a minimum liquidity threshold of US$1mn on a 90-day moving average, and a % market capitalisation threshold - the $ value of the holding/opco held, over the parent’s market capitalisation, expressed in percent - of at least 20%.


StubWorld: Kakao Is Still Cuckoo After Pay Doubles

South Korea

Naver Corp. provides Internet site with web portal services, such as search engine, online game and content development.  The Company also offers marketing service through text and banner advertisement.

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Naver Corp (035420 KS)

Global Emerging Markets Weekly: 3 December 2021

This insight provides a summary of the key news developments impacting the largest countries and constituents of the Global Emerging Markets equity...

Wium Malan, CFA

Grab SPAC Listing - Still Firing on Only One Cylinder - Lit by Consumer Incentives

In Apr 21, Grab announced that it plans to go public in the US in partnership with Altimeter Growth Corp (AGC US) at an equity valuation of...

Sumeet Singh

SK IE Technology Placement - Is Probably Expected

SK IE Technology’s (SKIE) shareholder aims to raise around US$430m via selling part of its shareholding. The deal is probably expected.

Sumeet Singh

A Equity-Based Partnership Between HYBE and Dunamu & The Upcoming Launch of BTS NFT

In the past few days, HYBE announced an equity based partnership with Dunamu as well as the launch of the BTS NFT (non-fungible token).

Douglas Kim

StubWorld: Kakao Is Still Cuckoo After Pay Doubles

Expect more volatility in Kakao Pay as investors grapple with what is "fair" together with concerns about how the financial regulator assesses...

David Blennerhassett

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