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

<ul>
<li>
<a href="https://www.smartkarma.com/entities/kansai-electric-power-co-inc" target="_blank" data-smartkarma-citation="entities:18907:1" rel="noopener">Kansai Electric Power (9503 JP)</a> is looking to raise up to US$3.5bn via a primary offering and a sale of Treasury shares. Pricing date is between 26-29 November.</li>
<li>
<a href="https://www.smartkarma.com/entities/kansai-electric-power-co-inc" target="_blank" data-smartkarma-citation="entities:18907:1" rel="noopener">Kansai Electric Power (9503 JP)</a> is among the better performing stocks from the Electric Utilities industry and trades at higher valuations compared to its peers.</li>
<li>There will be a fair bit of passive buying with around 29% of the offering being bought at the time of settlement of the shares.</li>
</ul>



Kansai Electric Power (9503 JP) is looking to raise up to US$3.5bn via a primary offering and a sale of Treasury shares. Pricing date is between 26-29 November.

Kansai Electric Power (9503 JP) is among the better performing stocks from the Electric Utilities industry and trades at higher valuations compared to its peers.
There will be a fair bit of passive buying with around 29% of the offering being bought at the time of settlement of the shares.


KEPCO (9503 JP): Index Implications of US$3.5bn Primary + Secondary Offering

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.

Equity Capital Markets

Kansai Electric Power / Equity Capital Markets

<ul>
<li>
<a href="https://www.smartkarma.com/entities/kansai-electric-power-co-inc" target="_blank" data-smartkarma-citation="entities:18907:1" rel="noopener">Kansai Electric Power (9503 JP)</a> plans to raise up to US$3.5bn (including over-allocation) to partly fund its investment plans.</li>
<li>In our earlier note, we talked about the placement and ran the deal through our ECM framework.</li>
<li>In this note, we talk about the updates and share price performance since then.</li>
</ul>



Kansai Electric Power (9503 JP) plans to raise up to US$3.5bn (including over-allocation) to partly fund its investment plans.
In our earlier note, we talked about the placement and ran the deal through our ECM framework.
In this note, we talk about the updates and share price performance since then.


Kansai Electric US$3.5bn Deal Updates - Has Delivered a Decent Correction, as Compared to past Deals

Asia L/S Equity PM/Macro/Thematic Idea Generation

Rikki Malik

Equity Bottom-Up

<ul>
<li>Postal price hike approved  swinging the Post business from a loss to a profit</li>
<li>Cancellation of 7.36% of outstanding shares from the latest buyback</li>
<li>Management Plan to be released in May will provide further details on improving ROE and PB</li>
</ul>


Postal price hike approved  swinging the Post business from a loss to a profit
Cancellation of 7.36% of outstanding shares from the latest buyback
Management Plan to be released in May will provide further details on improving ROE and PB


Japan Post Holdings Update (6178.JP)- Catalysts to Be Delivered

<ul>
<li>A company that is geared to Japan's macro revival with additional micro catalysts. </li>
<li>Ownership of financial companies which are set to benefit from a normalisation of Japanese monetary policy.</li>
<li>The low Price to Book means the company will need to keep up momentum on its capital management plans to  stay in the Prime Section of Topix.</li>
</ul>


A company that is geared to Japan's macro revival with additional micro catalysts. 
Ownership of financial companies which are set to benefit from a normalisation of Japanese monetary policy.
The low Price to Book means the company will need to keep up momentum on its capital management plans to  stay in the Prime Section of Topix.


Japan Post Holdings (6178.T) - Going Places!

Thematic (Sector/Industry)

<ul>
<li>New LDP leader and Japanese PM favours interest rate normalisation</li>
<li>This supports our outlook for a strengthening JPY against the USD</li>
<li>The Japanese central bank may now face pressure to raise rates</li>
</ul>


New LDP leader and Japanese PM favours interest rate normalisation
This supports our outlook for a strengthening JPY against the USD
The Japanese central bank may now face pressure to raise rates


Japan

Japan Post Holdings Co. Ltd. operates post stations, banks, and insurance business. The Company offers letters and goods transportation services, stamp sales, deposits, loans, and insurance products.

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Japan Post Holdings (6178 JP)

KEPCO (9503 JP): Index Implications of US$3.5bn Primary + Secondary Offering

KEPCO is down 22.8% from the time of the announcement of the primary + secondary offering. The stock is now back to where it was at the start of...

Brian Freitas

Kansai Electric US$3.5bn Deal Updates - Has Delivered a Decent Correction, as Compared to past Deals

Kansai Electric Power (9503 JP) plans to raise up to US$3.5bn (including over-allocation) to partly fund its investment plans. In this note, we...

Sumeet Singh

Japan Post Holdings Update (6178.JP)- Catalysts to Be Delivered

Postage price hike approved swinging postal division to profit from loss. Cancellation of shares and announcement of the next management plan in...

Rikki Malik

Japan Post Holdings (6178.T) - Going Places!

A company positioned for Japan's economic recovery, benefiting from financial sector ownership and capital management plans to increase its Value.

Rikki Malik

Banking on the BoJ

New Japanese PM's interest rate stance could lead to a stronger JPY against USD. Higher rates will help certain sectors in the market

Rikki Malik

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

KEPCO (9503 JP): Index Implications of US$3.5bn Primary + Secondary Offering

KEPCO is down 22.8% from the time of the announcement of the primary + secondary offering. The stock is now back to where it was at the start of...

Brian Freitas

Kansai Electric US$3.5bn Deal Updates - Has Delivered a Decent Correction, as Compared to past Deals

Kansai Electric Power (9503 JP) plans to raise up to US$3.5bn (including over-allocation) to partly fund its investment plans. In this note, we...

Sumeet Singh

Japan Post Holdings Update (6178.JP)- Catalysts to Be Delivered

Postage price hike approved swinging postal division to profit from loss. Cancellation of shares and announcement of the next management plan in...

Rikki Malik

Japan Post Holdings (6178.T) - Going Places!

​A company positioned for Japan's economic recovery, benefiting from financial sector ownership and capital management plans to increase its Value.

Rikki Malik

Banking on the BoJ

​New Japanese PM's interest rate stance could lead to a stronger JPY against USD. Higher rates will help certain sectors in the market

Rikki Malik

A company positioned for Japan's economic recovery, benefiting from financial sector ownership and capital management plans to increase its Value.

New Japanese PM's interest rate stance could lead to a stronger JPY against USD. Higher rates will help certain sectors in the market