Contextualizing EM Investment Opportunities, Pyramids and Pagodas

Pyramids and Pagodas

Contextualizing EM Investment Opportunities

Established in 2022, Pyramids and Pagodas aims to cover underreported trends and companies across emerging markets (“EM”), with a particular focus on Asia and the Middle East. Our content targets a broad audience of investors and anyone seeking to capitalize on or learn more about undervalued investment opportunities in these regions. We have skin in the game for these ideas with a view to build a strong track record with demonstrable returns in the long run.

Thematic (Sector/Industry)

From September to October, Desertfox spent 1 month in Riyadh, the capital of Saudi Arabia. This is the final piece concluding a two-part Series covering Desertfox’s recent trip to Riyadh, during which he gained interesting insights into how Saudi Arabia’s soft power push translated to real life experience working with the Saudi public sector, how this might benefit a Hong Kong-listed proxy, and the notable rise of Chinese automakers on the Kingdom’s streets.

From September to October, Desertfox spent 1 month in Riyadh, the capital of Saudi Arabia. This is the final piece concluding a two-part Series covering Desertfox’s recent trip to Riyadh, during which he gained interesting insights into how Saudi Arabia’s soft power push translated to real life experience working with the Saudi public sector, how this might benefit a Hong Kong-listed proxy, and the notable rise of Chinese automakers on the Kingdom’s streets.

Roving Around Riyadh - A Look into a Kingdom Forging its Future Through Reform (Part 2)

Quantitative Equity Analyst, DMA

Charlotte van Tiddens, CFA

Quantitative Equity Analyst

Technology-First Company

DMA is a technology-first company that provides an end-to-end SaaS solution to institutional investors. DMA enables regulated entities like asset managers, wealth managers, investment managers and financial advisors to connect their front and back office, break silos and reduce headcount.

Event-Driven

<ul><li>JSE indices get rebalanced in the closing auction on Thursday.</li><li>No constituent changes will be made to the ALSI, Top 40, Top 40 SWIX, FINI, FINDI or INDI. HAR will enter the RESI and AMS will fall out.</li><li>Largest buys: BTI, MNP, BHG, APN.</li></ul>

JSE indices get rebalanced in the closing auction on Thursday.No constituent changes will be made to the ALSI, Top 40, Top 40 SWIX, FINI, FINDI or INDI. HAR will enter the RESI and AMS will fall out.Largest buys: BTI, MNP, BHG, APN.

The Week Ahead: US Inflation, Fed, Quarterly Rebalancing

<ul><li>We do not expect any constituent changes for the following indices: Top 40, Top 40 SWIX, FINI, FINDI or INDI.</li><li>HAR is expected to enter the RESI and AMS is expected to fall out.</li><li>After much anticipation, ANG’s indicative free float came in at 75%, 21.9 percentage points lower than the current SWIX float of 96.8%.</li></ul>

We do not expect any constituent changes for the following indices: Top 40, Top 40 SWIX, FINI, FINDI or INDI.HAR is expected to enter the RESI and AMS is expected to fall out.After much anticipation, ANG’s indicative free float came in at 75%, 21.9 percentage points lower than the current SWIX float of 96.8%.

DMA ONE: JSE December ‘23 Rebalance Rankings

Pan-Asia Catalysts/Events, Quiddity Advisors

David Blennerhassett

Pan-Asia Catalysts/Events

Quiddity Advisors

<ul>
<li>The accretion trade is going to plan as <a href="https://www.smartkarma.com/entities/prosus-nv" target="_blank" data-smartkarma-citation="entities:28104:1" rel="noopener">Prosus NV (PRX NA)</a> sells <a href="https://www.smartkarma.com/entities/tencent-holdings-ltd" target="_blank" data-smartkarma-citation="entities:26:1" rel="noopener">Tencent (700 HK)</a>; and Prosus and Tencent both back their own shares.</li>
<li>Preceding my comments on Prosus/Tencent One are the current setup/unwind tables for Asia-Pacific Holdcos</li>
<li>These relationships trade with a minimum liquidity of US$1mn, and a % market capitalisation &gt;20%.</li>
</ul>


The accretion trade is going to plan as Prosus NV (PRX NA) sells Tencent (700 HK); and Prosus and Tencent both back their own shares.
Preceding my comments on Prosus/Tencent One are the current setup/unwind tables for Asia-Pacific Holdcos
These relationships trade with a minimum liquidity of US$1mn, and a % market capitalisation &gt;20%.


StubWorld: Prosus Trading "Rich". And So It Should Be

Quantitative Analysis

<ul>
<li>The performance of <a href="https://www.smartkarma.com/entities/naspers-ltd" target="_blank" data-smartkarma-citation="entities:21085:1" rel="noopener">Naspers (NPN SJ)</a> and <a href="https://www.smartkarma.com/entities/prosus-nv-2e2a2230-64b0-4044-b797-a3880fcb487a" target="_blank" data-smartkarma-citation="entities:28301:1" rel="noopener">Prosus NV (PRX SJ)</a> during this week is worth flagging – both counters have outperformed the underlying portfolio, narrowing both discounts notably.</li>
<li>Naspers’ discount to Prosus’ market value continues to push new lows, closing at 9.9% yesterday.</li>
<li>For the week up to the close yesterday, Naspers is up 4.1%, Prosus is up 2.3% and Tencent is down 1.4% in HKD (down 3.7% in ZAR). </li>
</ul>


The performance of Naspers (NPN SJ) and Prosus NV (PRX SJ) during this week is worth flagging – both counters have outperformed the underlying portfolio, narrowing both discounts notably.
Naspers’ discount to Prosus’ market value continues to push new lows, closing at 9.9% yesterday.
For the week up to the close yesterday, Naspers is up 4.1%, Prosus is up 2.3% and Tencent is down 1.4% in HKD (down 3.7% in ZAR). 


Naspers & Prosus: Discounts Narrow This Week, the Great Rotation from Prosus to Naspers Playing Out?

Germany

Delivery Hero SE offers e-commerce services. The Company provides online food ordering services. Delivery Hero serves customers Germany.

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Delivery Hero SE (DHER GR)

Roving Around Riyadh - A Look into a Kingdom Forging its Future Through Reform (Part 2)

From September to October, Desertfox spent 1 month in Riyadh, the capital of Saudi Arabia. This is the final piece concluding a two-part Series...

Pyramids and Pagodas

The Week Ahead: US Inflation, Fed, Quarterly Rebalancing

JSE Dec rebalance - passive buys and sells in Thursday’s closing auction. JSE indices get rebalanced in the closing auction on Thursday.

DMA

DMA ONE: JSE December ‘23 Rebalance Rankings

The Week Ahead, NPN x PRX discount update post Tencent results, trading statements released after close yesterday. We do not expect any constituent...

DMA

StubWorld: Prosus Trading "Rich". And So It Should Be

For long-onlies, the trade is still to replace your Tencent with Prosus. For rel-value players, ~80% of the NAV portfolio is easily hedge-able.

David Blennerhassett

Naspers & Prosus: Discounts Narrow This Week, the Great Rotation from Prosus to Naspers Playing Out?

A recap of how the discounts traded last week. Naspers’ discount to Prosus’ market value continues to push new lows, both counters outperformed...

DMA

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