Global Head of Research, Smartkarma

Mark Artherton

Global Head of Research

LR Research

Thematic (Sector/Industry)

In Today's Issue<table class="table table-striped"><tbody>
<tr>
<td>Area</td>
<td>Item</td>
</tr>
<tr>
<td>Economic/Commodities</td>
<td>
REMITTANCES TO INDIA ARE DOWN
BRAZIL SOYBEAN EXPORTS ARE UP
PRECIOUS METALS PRICES FLIRT WITH SUPPORT _ COULD BREAKDOWN
PEMEX MAKES SIZEABLE OIL DISCOVERY
</td>
</tr>
<tr>
<td>Policy Led</td>
<td>
SAUDI PURGE
CHINA'S PARIS OUTPERFORMANCE
PBoC LOOKING AT ITS OWN DIGITAL CURRENCY
VENEZUELA SEEKS EXTERNAL DEBT RESTRUCTURING
CHINA'S MAINLAND LAW ON THE NATIONAL ANTHEM TO APPLY TO HK AND MACAU
</td>
</tr>
<tr>
<td>Management Specific</td>
<td>
AMAZON INTO HEALTH INSURANCE IN EUROPE?
CJ CHEILJIDANG SELLING CJ HEALTH?
HDFC STANDARD…
</td>
</tr>
</tbody></table>

In Today's Issue

Area
Item


Economic/Commodities

REMITTANCES TO INDIA ARE DOWN
BRAZIL SOYBEAN EXPORTS ARE UP
PRECIOUS METALS PRICES FLIRT WITH SUPPORT _ COULD BREAKDOWN
PEMEX MAKES SIZEABLE OIL DISCOVERY



Policy Led

SAUDI PURGE
CHINA'S PARIS OUTPERFORMANCE
PBoC LOOKING AT ITS OWN DIGITAL CURRENCY
VENEZUELA SEEKS EXTERNAL DEBT RESTRUCTURING
CHINA'S MAINLAND LAW ON THE NATIONAL ANTHEM TO APPLY TO HK AND MACAU



Management Specific

AMAZON INTO HEALTH INSURANCE IN EUROPE?
CJ CHEILJIDANG SELLING CJ HEALTH?
HDFC STANDARD…




Korea/Asia, Events, IPOs, Douglas Research Advisory

Douglas Kim

Korea/Asia, Events, IPOs

Event-Driven

On November 3rd (during the market open), it was reported in numerous Korean media outlets that the CJ Group plans to sell CJ Healthcare and that CJ Cheiljedang has hired Morgan Stanley for this M&amp;A mandate, which is expected to be more than 1 trillion won. Shares of <a href="https://www.smartkarma.com/entities/1970" target="_blank" data-smartkarma-citation="entities:1970:1">CJ Cheiljedang Corp (097950 KS)</a>, which currently owns a 100% stake in CJ Healthcare, were up 4.8% on November 3rd. However, after the market close on November 3rd, CJ Cheiljedang announced that it has yet to make an official…

On November 3rd (during the market open), it was reported in numerous Korean media outlets that the CJ Group plans to sell CJ Healthcare and that CJ Cheiljedang has hired Morgan Stanley for this M&amp;A mandate, which is expected to be more than 1 trillion won. Shares of CJ Cheiljedang Corp (097950 KS), which currently owns a 100% stake in CJ Healthcare, were up 4.8% on November 3rd. However, after the market close on November 3rd, CJ Cheiljedang announced that it has yet to make an official…

Korea M&A Spotlight: CJ Group Plans to Sell CJ Healthcare - Is This On or Off?

CEO, A. Stotz Investment Research

Dr. Andrew Stotz, CFA

Quantamental Investing to beat Benchmarks

A. Stotz Investment Research

We pick stocks. We construct portfolios. All our effort is focused on how to better pick stocks and construct portfolios. We serve fund management companies, family offices, and high net worth individuals.

Equity Bottom-Up

<ul><li>Cheap on a gross profit basis, low price-to-sales, and strong long-term sales growth relative to its sector </li><li>CJCJ continues global expansion through acquisition of Sementes Selecta SA, a Brazilian manufacturer of soy protein concentrate worth US$143m; CJCJ plans to lift its production capacity up by 50% </li><li>In-house production of home meal replacement (HMR) products is expected to rise to 70%, bringing higher margins. HMR revenue was up almost 200% YoY in 2Q17 </li><li>Attractive at 17CE* 6.3% ROE/PB relative to Asian sector at 4.3% </li><li>Risks: Increase in shipping taxes, tighter regulations on biochemicals</li></ul>

Cheap on a gross profit basis, low price-to-sales, and strong long-term sales growth relative to its sector CJCJ continues global expansion through acquisition of Sementes Selecta SA, a Brazilian manufacturer of soy protein concentrate worth US$143m; CJCJ plans to lift its production capacity up by 50% In-house production of home meal replacement (HMR) products is expected to rise to 70%, bringing higher margins. HMR revenue was up almost 200% YoY in 2Q17 Attractive at 17CE* 6.3% ROE/PB relative to Asian sector at 4.3% Risks: Increase in shipping taxes, tighter regulations on biochemicals

CJCJ (097950 KS): Earning High Margins Serving Food in the Home

Asian Equities Analyst, Logistics & Transport, Tracking Traffic

Daniel Hellberg

Asian Equities Analyst, Logistics & Transport

<a href="https://www.smartkarma.com/entities/11557" target="_blank" data-smartkarma-citation="entities:11557:1">CJ Korea Express Corp (000120 KS)</a> just reported a disappointing set of Q2 results that show solid top-line growth but continued margin erosion. Although consensus earnings estimates for 2017 and 2018 have come down in the two months since we began covering the name, Q2's weak results suggest analysts remain too optimistic about the company's earnings power this year and next.Despite above-trend Revenue growth in Q2 (+12.8% Y/Y), EPS declined by almost 12% Y/Y due to stubbornly high SG&amp;A…

CJ Korea Express Corp (000120 KS) just reported a disappointing set of Q2 results that show solid top-line growth but continued margin erosion. Although consensus earnings estimates for 2017 and 2018 have come down in the two months since we began covering the name, Q2's weak results suggest analysts remain too optimistic about the company's earnings power this year and next.Despite above-trend Revenue growth in Q2 (+12.8% Y/Y), EPS declined by almost 12% Y/Y due to stubbornly high SG&amp;A…

CJ Logistics Q2 Results Disappoint, 2017-18 Earnings Estimates Need to Come Down Further

The FTC (Fair Trade Commission) announced comprehensive new rules over this past weekend targeting the major retailers in Korea. These new rules are burdensome on the retailers and the result will likely be reduced profit margins and earnings downgrades for the major retailers such as <a href="https://www.smartkarma.com/entities/20987" target="_blank" data-smartkarma-citation="entities:20987:1">Shinsegae Co Ltd (004170 KS)</a>, <a href="https://www.smartkarma.com/entities/6993" target="_blank" data-smartkarma-citation="entities:6993:1">E Mart Inc (139480 KS)</a>, and <a href="https://www.smartkarma.com/entities/2338" target="_blank" data-smartkarma-citation="entities:2338:1">Lotte Shopping Co (023530 KS)</a>. <a href="https://www.smartkarma.com/entities/20987" target="_blank" data-smartkarma-citation="entities:20987:1">Shinsegae Co Ltd (004170 KS)</a> shares dropped 9.5% on Friday, August 11th due to poor earnings. Its share price along with the…

The FTC (Fair Trade Commission) announced comprehensive new rules over this past weekend targeting the major retailers in Korea. These new rules are burdensome on the retailers and the result will likely be reduced profit margins and earnings downgrades for the major retailers such as Shinsegae Co Ltd (004170 KS), E Mart Inc (139480 KS), and Lotte Shopping Co (023530 KS). Shinsegae Co Ltd (004170 KS) shares dropped 9.5% on Friday, August 11th due to poor earnings. Its share price along with the…

The FTC Is Going After Major Retailers With Burdensome New Rules

South Korea

CJ CheilJedang Corp. manufactures processed food products.  The Company's products include refined sugar, monosodium glutamate (MSG), condiment, wheat powder, flour, cooking oil, processed meats, and animal feed.  CJ CheilJedang also manufactures pharmaceutical and household products.

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CJ Cheiljedang (097950 KS)

21 Things Worth Knowing (#8)

In Today's Issue1. Saudi Crown Prince kick starts an anti-corruption drive in a bid to cement his power. So far 11 princes, 4 ministers and a...

Mark Artherton

Korea M&A Spotlight: CJ Group Plans to Sell CJ Healthcare - Is This On or Off?

On November 3rd (during the market open), it was reported in numerous Korean media outlets that the CJ Group plans to sell CJ Healthcare and that...

Douglas Kim

CJCJ (097950 KS): Earning High Margins Serving Food in the Home

Cheap on a gross profit basis, low price-to-sales, and strong long-termsales growth relative to its sector CJCJ continues global expansion through...

A. Stotz Investment Research

CJ Logistics Q2 Results Disappoint, 2017-18 Earnings Estimates Need to Come Down Further

CJ Korea Express Corp (000120 KS) just reported a disappointing set of Q2 results that show solid top-line growth but continued margin erosion....

Daniel Hellberg

The FTC Is Going After Major Retailers With Burdensome New Rules

The FTC (Fair Trade Commission) announced comprehensive new rules over this past weekend targeting the major retailers in Korea. These new rules...

Douglas Kim

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52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)