Korea/Asia, Events, IPOs, Douglas Research Advisory

Douglas Kim

Korea/Asia, Events, IPOs

Equity Bottom-Up

<ul>
<li>We are negative on Feng Tay Enterprise's share price in the next 6-12 months mainly due to inventory/margin concerns at its largest customer Nike combined with unattractive valuations.</li>
<li>In the next several months, we think there is a higher probability of Feng Tay's share price underperforming versus Nike.</li>
<li>Feng Tay Enterprise is one of the largest global OEM/ODM companies that specializes the design and manufacturing of footwear. Nike is one of the largest customers of Feng Tay Enterprise. </li>
</ul>


We are negative on Feng Tay Enterprise's share price in the next 6-12 months mainly due to inventory/margin concerns at its largest customer Nike combined with unattractive valuations.
In the next several months, we think there is a higher probability of Feng Tay's share price underperforming versus Nike.
Feng Tay Enterprise is one of the largest global OEM/ODM companies that specializes the design and manufacturing of footwear. Nike is one of the largest customers of Feng Tay Enterprise. 


Feng Tay Enterprise: Risks from Higher Inventory at Nike & Unattractive Valuations

External broker reports(aggregated public sources), CMB International

CMB International

External broker reports(aggregated public sources)

Incorporated in Hong Kong, supported by the mainland and targeting in global market, CMB International Capital Corporation Limited (“CMBI”) is an integrated financial institution providing comprehensive and professional services. As a wholly-owned subsidiary of China Merchants Bank ("CMB"), by leveraging on the Group’s synergy and coordination in domestic and overseas markets, as well as CMB’s strong resources and outstanding social reputation, CMBI and its subsidiaries have been actively implementing diversified business strategies and set up an overall layout of main business segments including Corporate Finance, Asset Management, Wealth Management, Global Markets and Structured Finance, etc. Adhering to the philosophy of “being clients oriented and increasing our own values by the way of creating value for clients”, CMBI endeavors to provide quality and integrated financial services to institutional, corporate and individual customers both domestic and overseas including Hong Kong IPO sponsorship and underwriting, share placement and rights issue for listed companies, financial advisors, bonds issuance services, asset management, direct investment, wealth management, equity sales and trading, etc.

<ul><li>2Q23 results was a slight beat with 1) inline retail sales growth (Anta was a miss but FILA and other brands had a beat) and 2) a better-than-expected retail discounts.</li><li>Since retail sales growth in Jun-Jul 2023 were similar and still weak, we think sales and earnings could remain at risk.</li><li>However, after massive derating since May 2023, current valuation of 23x FY23E P/E is not too demanding. </li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

2Q23 results was a slight beat with 1) inline retail sales growth (Anta was a miss but FILA and other brands had a beat) and 2) a better-than-expected retail discounts.Since retail sales growth in Jun-Jul 2023 were similar and still weak, we think sales and earnings could remain at risk.However, after massive derating since May 2023, current valuation of 23x FY23E P/E is not too demanding. Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Anta Sports (2020 HK) – A Slight Beat in 2Q23 but Outlook Is Still Fragile

Quantitative Researcher, MRM Research

Nico Rosti

Quantitative Researcher

MRM Research

Quantitative Research

Event-Driven

<ul>
<li>The <a href="https://www.smartkarma.com/entities/hong-kong-hang-seng-index" target="_blank" data-smartkarma-citation="entities:22899:1" rel="noopener">Hong Kong Hang Seng Index (HSI)</a> last week closed strongly up. This week it's pulling back, but MRM pattern readings forecast a very short-lived pullback (-1 to -2 weeks).</li>
<li>The suggested strategy is: let the index play out its pullback (warning: it can be volatile) and then enter LONG trades when the probability is good.</li>
<li>
Suggested support price areas are between 18965 (Q2) and 18732 (Q3) - or this Friday at Close (as long as the close is negative).</li>
</ul>


The Hong Kong Hang Seng Index (HSI) last week closed strongly up. This week it's pulling back, but MRM pattern readings forecast a very short-lived pullback (-1 to -2 weeks).
The suggested strategy is: let the index play out its pullback (warning: it can be volatile) and then enter LONG trades when the probability is good.

Suggested support price areas are between 18965 (Q2) and 18732 (Q3) - or this Friday at Close (as long as the close is negative).


EQD | Hang Seng Index (HSI) WEEKLY Deep-But-Brief Pullback

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.

Quantitative Analysis

<ul>
<li>An overview (and output) of our machine learning-driven GEM screening model, which seeks to find the best medium-term long ideas within the top 100 stocks in the MSCI GEM Index.</li>
<li>The model is based on 1) a quantitative multifactor screening model, enhanced by two AI Technology-based approaches; 2) a Deep Neural Network model, and 3) a Recurrent Neural Network model.</li>
<li>Developed over roughly 4 years and implemented in its current state for over 3 years, the model has a solid real-world alpha-generating performance track record, discussed in detail below.</li>
</ul>


An overview (and output) of our machine learning-driven GEM screening model, which seeks to find the best medium-term long ideas within the top 100 stocks in the MSCI GEM Index.
The model is based on 1) a quantitative multifactor screening model, enhanced by two AI Technology-based approaches; 2) a Deep Neural Network model, and 3) a Recurrent Neural Network model.
Developed over roughly 4 years and implemented in its current state for over 3 years, the model has a solid real-world alpha-generating performance track record, discussed in detail below.


Asia Pac IPO & Placement Research, China biotech, Aequitas Research

Ke Yan, CFA, FRM

Asia Pac IPO & Placement Research, China biotech

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.

<ul>
<li>We analyze the weekly Hong Kong Connect flows with our data engine for holding position as of June 30th.</li>
<li>The top stocks by inflows and outflows were tabulated for all market, HSCEI, mid cap and s/mid cap groups. </li>
<li>We estimate that the outflows were USD 20 million and highlight flows for ICBC.</li>
</ul>


We analyze the weekly Hong Kong Connect flows with our data engine for holding position as of June 30th.
The top stocks by inflows and outflows were tabulated for all market, HSCEI, mid cap and s/mid cap groups. 
We estimate that the outflows were USD 20 million and highlight flows for ICBC.


China

ANTA Sports Products Limited designs, develops, manufactures, and markets sportswear, including sports footwear and apparel for professionals and the general public.

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Anta Sports Products (2020 HK)

Feng Tay Enterprise: Risks from Higher Inventory at Nike & Unattractive Valuations

We are negative on Feng Tay Enterprise's share price in the next 6-12 months mainly due to inventory/margin concerns at its largest customer Nike...

Douglas Kim

Anta Sports (2020 HK) – A Slight Beat in 2Q23 but Outlook Is Still Fragile

2Q23 results was a slight beat with 1) inline retail sales growth (Anta was a miss but FILA and other brands had a beat) and 2) a better-than...

CMB International

EQD | Hang Seng Index (HSI) WEEKLY Deep-But-Brief Pullback

The Hang Seng Index is pulling back, but this move should be short-lived according to the Market Reversal Matrix's analysis of the index's support...

Nico Rosti

Screening for GEMs: July 2023

This insight provides an overview of our, machine learning-driven, proprietary GEM screening model, based on a Multifactor model, a Deep Neural...

Wium Malan, CFA

Hong Kong Connect Flows (Jun 30th): ICBC

We analyzed southbound Hong Kong connect flows in the past week. We estimate the outflows to be USD 20 million and highlight flows for ICBC.

Ke Yan, CFA, FRM

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