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

Brian Freitas

Pan-Asia Index Rebalances/ Events/ Delta One

Quantitative Analysis

<div><p>The Asia Short Interest weekly looks at moves in market wide short interest and highlights movements in stock specific short interest across Hong Kong, Japan, Korea and Taiwan using the last available data published by the relevant authorities.</p></div><div><p>Hong Kong saw shorts rise on <a href="https://www.smartkarma.com/entities/jd-com-inc" target="_blank" data-smartkarma-citation="entities:29043:1" rel="noopener">JD.com (HK) (9618 HK)</a>, <a href="https://www.smartkarma.com/entities/xiaomi-corp" target="_blank" data-smartkarma-citation="entities:24409:1" rel="noopener">Xiaomi Corp (1810 HK)</a>, <a href="https://www.smartkarma.com/entities/idreamsky-technology-holdings" target="_blank" data-smartkarma-citation="entities:5570:1" rel="noopener">iDreamsky Technology Limited (1119 HK)</a> and <a href="https://www.smartkarma.com/entities/galaxy-entertainment-group-limited" target="_blank" data-smartkarma-citation="entities:806:1" rel="noopener">Galaxy Entertainment Group (27 HK)</a> while there was short covering on <a href="https://www.smartkarma.com/entities/alibaba-group" target="_blank" data-smartkarma-citation="entities:28434:1" rel="noopener">Alibaba Group (9988 HK)</a>, <a href="https://www.smartkarma.com/entities/tencent-holdings-ltd" target="_blank" data-smartkarma-citation="entities:26:1" rel="noopener">Tencent Holdings (700 HK)</a>, <a href="https://www.smartkarma.com/entities/ping-an-insurance-grp-co-of-china-ltd" target="_blank" data-smartkarma-citation="entities:12880:1" rel="noopener">Ping An Insurance (H) (2318 HK)</a> and <a href="https://www.smartkarma.com/entities/ping-an-healthcare-and-technology-company-limited" target="_blank" data-smartkarma-citation="entities:27008:1" rel="noopener">Ping An Healthcare and Technology Company Limited (1833 HK)</a> . Shorts increased in Real Estate, Energy and Consumer Staples and decreased in Financials, Consumer Discretionary, Health Care and Communication Services.</p></div><div>
<p>There was a lot of short covering in Japan during the week. Stocks that saw the most shorts covered were <a href="https://www.smartkarma.com/entities/fast-retailing-co-ltd" target="_blank" data-smartkarma-citation="entities:751:1" rel="noopener">Fast Retailing (9983 JP)</a>, <a href="https://www.smartkarma.com/entities/asahi-group-holdings-ltd" target="_blank" data-smartkarma-citation="entities:10482:1" rel="noopener">Asahi Group Holdings (2502 JP)</a>, <a href="https://www.smartkarma.com/entities/toshiba-corp" target="_blank" data-smartkarma-citation="entities:637:1" rel="noopener">Toshiba Corp (6502 JP)</a> and <a href="https://www.smartkarma.com/entities/taiyo-yuden-co-ltd" target="_blank" data-smartkarma-citation="entities:9924:1" rel="noopener">Taiyo Yuden (6976 JP)</a>, while shorts increased on <a href="https://www.smartkarma.com/entities/nihon-m-a-center-inc" target="_blank" data-smartkarma-citation="entities:17616:1" rel="noopener">Nihon M&amp;A Center (2127 JP)</a>, <a href="https://www.smartkarma.com/entities/yamato-holdings-co-ltd" target="_blank" data-smartkarma-citation="entities:2:1" rel="noopener">Yamato Holdings (9064 JP)</a>, <a href="https://www.smartkarma.com/entities/canon-inc" target="_blank" data-smartkarma-citation="entities:1:1" rel="noopener">Canon Inc (7751 JP)</a> and <a href="https://www.smartkarma.com/entities/mitsubishi-ufj-financial-group" target="_blank" data-smartkarma-citation="entities:218:1" rel="noopener">Mitsubishi UFJ Financial (MUFG) (8306 JP)</a>. Sectorally, the most shorts were covered in Consumer Staples, Information Technology, Consumer Discretionary and Financials.</p>
<p>Stocks in Korea that saw an increase in shorts were <a href="https://www.smartkarma.com/entities/kakao-corp" target="_blank" data-smartkarma-citation="entities:15002:1" rel="noopener">Kakao Corp (035720 KS)</a> and <a href="https://www.smartkarma.com/entities/celltrion-inc" target="_blank" data-smartkarma-citation="entities:991:1" rel="noopener">Celltrion Inc (068270 KS)</a> while stocks that saw the most short covering were <a href="https://www.smartkarma.com/entities/doosan-infracore-co-ltd" target="_blank" data-smartkarma-citation="entities:3982:1" rel="noopener">Doosan Infracore (042670 KS)</a>, <a href="https://www.smartkarma.com/entities/lg-display-co-ltd" target="_blank" data-smartkarma-citation="entities:7145:1" rel="noopener">LG Display (034220 KS)</a>, <a href="https://www.smartkarma.com/entities/netmarble-corporation" target="_blank" data-smartkarma-citation="entities:22839:1" rel="noopener">Netmarble Corporation (251270 KS)</a> and <a href="https://www.smartkarma.com/entities/lg-household-health-care" target="_blank" data-smartkarma-citation="entities:6501:1" rel="noopener">LG Household &amp; Health Care (051900 KS)</a>.</p>
</div><div><p>Stocks in Taiwan that saw the highest increase in shorts were <a href="https://www.smartkarma.com/entities/largan-precision-co-ltd" target="_blank" data-smartkarma-citation="entities:9126:1" rel="noopener">Largan Precision (3008 TT)</a>, <a href="https://www.smartkarma.com/entities/taiwan-semiconductor-manufacturing-company" target="_blank" data-smartkarma-citation="entities:11230:1" rel="noopener">TSMC (2330 TT)</a>, <a href="https://www.smartkarma.com/entities/genius-electronic-optical-co-ltd" target="_blank" data-smartkarma-citation="entities:9632:1" rel="noopener">Genius Electronic Optical (3406 TT)</a> and <a href="https://www.smartkarma.com/entities/hon-hai-precision-industry-co-ltd" target="_blank" data-smartkarma-citation="entities:745:1" rel="noopener">Hon Hai Precision Industry (2317 TT)</a> while shorts were covered on <a href="https://www.smartkarma.com/entities/yageo-corporation" target="_blank" data-smartkarma-citation="entities:13212:1" rel="noopener">Yageo Corporation (2327 TT)</a>, <a href="https://www.smartkarma.com/entities/novatek-microelectronics-corp" target="_blank" data-smartkarma-citation="entities:10904:1" rel="noopener">Novatek Microelectronics Corp (3034 TT)</a>, <a href="https://www.smartkarma.com/entities/united-microelectronics-corp" target="_blank" data-smartkarma-citation="entities:6450:1" rel="noopener">United Microelectronics Corp (2303 TT)</a> and <a href="https://www.smartkarma.com/entities/ase-technology-holding-co-ltd" target="_blank" data-smartkarma-citation="entities:27270:1" rel="noopener">ASE Technology Holding Co Ltd (3711 TT)</a>. </p></div>

The Asia Short Interest weekly looks at moves in market wide short interest and highlights movements in stock specific short interest across Hong Kong, Japan, Korea and Taiwan using the last available data published by the relevant authorities.Hong Kong saw shorts rise on JD.com (HK) (9618 HK), Xiaomi Corp (1810 HK), iDreamsky Technology Limited (1119 HK) and Galaxy Entertainment Group (27 HK) while there was short covering on Alibaba Group (9988 HK), Tencent Holdings (700 HK), Ping An Insurance (H) (2318 HK) and Ping An Healthcare and Technology Company Limited (1833 HK) . Shorts increased in Real Estate, Energy and Consumer Staples and decreased in Financials, Consumer Discretionary, Health Care and Communication Services.
There was a lot of short covering in Japan during the week. Stocks that saw the most shorts covered were Fast Retailing (9983 JP), Asahi Group Holdings (2502 JP), Toshiba Corp (6502 JP) and Taiyo Yuden (6976 JP), while shorts increased on Nihon M&amp;A Center (2127 JP), Yamato Holdings (9064 JP), Canon Inc (7751 JP) and Mitsubishi UFJ Financial (MUFG) (8306 JP). Sectorally, the most shorts were covered in Consumer Staples, Information Technology, Consumer Discretionary and Financials.
Stocks in Korea that saw an increase in shorts were Kakao Corp (035720 KS) and Celltrion Inc (068270 KS) while stocks that saw the most short covering were Doosan Infracore (042670 KS), LG Display (034220 KS), Netmarble Corporation (251270 KS) and LG Household &amp; Health Care (051900 KS).
Stocks in Taiwan that saw the highest increase in shorts were Largan Precision (3008 TT), TSMC (2330 TT), Genius Electronic Optical (3406 TT) and Hon Hai Precision Industry (2317 TT) while shorts were covered on Yageo Corporation (2327 TT), Novatek Microelectronics Corp (3034 TT), United Microelectronics Corp (2303 TT) and ASE Technology Holding Co Ltd (3711 TT). 

Asia Short Interest Weekly: JD, Xiaomi, Nihon M&A, Asahi, Toshiba, Kakao, Netmarble, Largan, Novatek

Japan/Asia Long-Short, LightStream Research

Mio Kato

Japan/Asia Long-Short

Long-Short Analysis on Japan, Asia and the World

LightStream Research

LightStream conducts quantitatively rigorous and data-driven analysis with a focus on Japan and Asia.

We consistently cover the Tech, Consumer and Industrial sectors, and provide ECM and Events coverage more broadly.

We supplement traditional qualitative insights from company relationships with a robust quantitative foundation that examines as much historical data as is available.
We further refine the accuracy of our insights and calls through the use of alternative data to flesh out current trends, and through a valuation framework that emphasises non-superficial peer group selection and a proper attempt to understand the metrics and changes that have driven security valuations in the past.

Event-Driven

<p>With the planned IPO for Kioxia being delayed for at least a few months, we wonder whether this brings Toshiba Tec more into play. As the lone listed subsidiary of Toshiba to not have its fate decided yet, Toshiba Tec is in an interesting position, especially because we consider its portfolio of products and services to be quite an interesting asset when moving into the data age.</p>

With the planned IPO for Kioxia being delayed for at least a few months, we wonder whether this brings Toshiba Tec more into play. As the lone listed subsidiary of Toshiba to not have its fate decided yet, Toshiba Tec is in an interesting position, especially because we consider its portfolio of products and services to be quite an interesting asset when moving into the data age.

Toshiba Tec – Where Is Toshiba Tec Headed?

<p>The Nikkei reported today that Kioxia would be postponing its much-anticipated IPO due to US-China tensions. That is an interesting fig-leaf in our opinion, or a decidedly creative take on the idea that the IPO was priced extremely richly. We question whether postponing the IPO further will lead to greater returns down the road. We feel there is downside risk for Toshiba.</p>

The Nikkei reported today that Kioxia would be postponing its much-anticipated IPO due to US-China tensions. That is an interesting fig-leaf in our opinion, or a decidedly creative take on the idea that the IPO was priced extremely richly. We question whether postponing the IPO further will lead to greater returns down the road. We feel there is downside risk for Toshiba.

Toshiba – Kioxia’s Postponed IPO Is NOT About US-China Tensions and That Means More Downside Risk

IPOs and Catalysts/Events, Global Equity Research Ltd

Arun George

IPOs and Catalysts/Events

Uncompromised, Independent, Conflict-Free Research

Global Equity Research Ltd

Global Equity Research was started in 2017 by a group of experienced research professionals. It was founded on a passionate belief in the importance and the need for uncompromised, independent, conflict-free research. We aim to provide differentiated and actionable primary and bottom up fundamental research.

Equity Capital Markets

Kioxia Holdings  / Equity Capital Markets

<p><a href="https://www.smartkarma.com/entities/kioxia" target="_blank" data-smartkarma-citation="entities:29243:1" rel="noopener">Kioxia (6600 JP)</a> is the world’s second-largest player in the NAND flash memory market. Kioxia was spun off from <a href="https://www.smartkarma.com/entities/toshiba-corp" target="_blank" data-smartkarma-citation="entities:637:1" rel="noopener">Toshiba Corp (6502 JP)</a> and acquired by KK Pangea, a special purpose company formed by a consortium led by Bain Capital for JPY2 trillion ($18 billion). Kioxia announced a tentative price range of JPY2,800-3,500 a share, materially below the JPY3,960 indicative price announced in August. The shares will list on the Tokyo Stock Exchange on 6 October. </p><p>In <a href="https://www.smartkarma.com/insights/kioxia-ipo-initiation-not-just-a-flash-in-the-pan" target="_blank" rel="noopener">our initiation note</a>, we stated that for investors willing to play the cycle, we think that Kioxia's fundamentals offer more positives than negatives. However, lead indicators suggest that NAND demand particularly in servers has considerably weakened since August. Also, Kioxia warned that the recent US restrictions on <a href="https://www.smartkarma.com/entities/huawei-technologies-co-ltd" target="_blank" data-smartkarma-citation="entities:8231:1" rel="noopener">Huawei Technology (40978Z CH)</a> may have an impact on the business. For more details, we direct readers to the panel discussion in <a href="https://www.smartkarma.com/insights/smartkarma-flash-webinar-kioxia-ipo-how-solid-is-it" target="_blank" data-smartkarma-citation="insights:43475" rel="noopener">Smartkarma Flash Webinar | Kioxia IPO: How Solid Is It?</a>.  </p><div class="content-highlight"><p>As the memory business is infamously volatile, we value Kioxia on through-cycle earnings number. Our analysis suggests that Kioxia trades at a substantial premium to peers' through-cycle multiples at the IPO price range. Consequently, while the fundamentals are attractive, we would give the IPO a pass due to the rich valuation. </p></div>

Kioxia (6600 JP) is the world’s second-largest player in the NAND flash memory market. Kioxia was spun off from Toshiba Corp (6502 JP) and acquired by KK Pangea, a special purpose company formed by a consortium led by Bain Capital for JPY2 trillion ($18 billion). Kioxia announced a tentative price range of JPY2,800-3,500 a share, materially below the JPY3,960 indicative price announced in August. The shares will list on the Tokyo Stock Exchange on 6 October. In our initiation note, we stated that for investors willing to play the cycle, we think that Kioxia's fundamentals offer more positives than negatives. However, lead indicators suggest that NAND demand particularly in servers has considerably weakened since August. Also, Kioxia warned that the recent US restrictions on Huawei Technology (40978Z CH) may have an impact on the business. For more details, we direct readers to the panel discussion in Smartkarma Flash Webinar | Kioxia IPO: How Solid Is It?.  As the memory business is infamously volatile, we value Kioxia on through-cycle earnings number. Our analysis suggests that Kioxia trades at a substantial premium to peers' through-cycle multiples at the IPO price range. Consequently, while the fundamentals are attractive, we would give the IPO a pass due to the rich valuation. 

<p>We had previously expressed scepticism about the targeted price (¥3,960) that Bain and Toshiba were aiming to partially exit their Kioxia stakes at. The company announced its initial price range yesterday bringing those expectations down markedly to ¥2,800-3,500. We compare these valuations with those of peers below.</p>

We had previously expressed scepticism about the targeted price (¥3,960) that Bain and Toshiba were aiming to partially exit their Kioxia stakes at. The company announced its initial price range yesterday bringing those expectations down markedly to ¥2,800-3,500. We compare these valuations with those of peers below.

Kioxia – Is There Value at the New Pricing Range?

Japan

Toshiba Corporation manufactures and markets electrical and electronic products. The Company's products include digital products such as PCs and televisions, NAND flash memories, and system LSIs (large-scale integrated), as well as social infrastructures such as power generators, medical equipment, and home appliances.

Price Gauge
52-week Range	0.00 - 0.00
Market Cap (USDm)	0.00
P/E	0.00
Dividend (Yield)	0.00

Toshiba Corp (6502 JP)

Asia Short Interest Weekly: JD, Xiaomi, Nihon M&A, Asahi, Toshiba, Kakao, Netmarble, Largan, Novatek

Highlighting changes in short interest across stocks in HK, Japan, Korea and Taiwan to pinpoint stocks/sectors that are being shorted or covered...

Brian Freitas

Toshiba Tec – Where Is Toshiba Tec Headed?

With the planned IPO for Kioxia being delayed for at least a few months, we wonder whether this brings Toshiba Tec more into play. As the lone...

Mio Kato

Toshiba – Kioxia’s Postponed IPO Is NOT About US-China Tensions and That Means More Downside Risk

The Nikkei reported today that Kioxia would be postponing its much-anticipated IPO due to US-China tensions. That is an interesting fig-leaf in our...

Mio Kato

Kioxia IPO: Valuation Insights

Kioxia (6600 JP) is the world’s second-largest player in the NAND flash memory market. TMC was spun off from Toshiba Corp (6502 JP) and acquired by...

Arun George

Kioxia – Is There Value at the New Pricing Range?

We had previously expressed scepticism about the targeted price (¥3,960) that Bain and Toshiba were aiming to partially exit their Kioxia stakes...

Mio Kato

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)