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

Delta Electronics Thailand  / Event-Driven

<ul>
<li>
<a href="https://www.smartkarma.com/entities/delta-electronics-thailand-pcl-98806732-8ac4-42b2-a565-ba32673d1e5a" target="_blank" data-smartkarma-citation="entities:20912:1" rel="noopener">Delta Electronics Thailand (DELTA TB)</a> is trading at a huge valuation premium to <a href="https://www.smartkarma.com/entities/delta-electronics-inc" target="_blank" data-smartkarma-citation="entities:12688:1" rel="noopener">Delta Electronics (2308 TT)</a>, though that has narrowed over the last couple of months.</li>
<li>
<a href="https://www.smartkarma.com/entities/delta-electronics-thailand-pcl-98806732-8ac4-42b2-a565-ba32673d1e5a" target="_blank" data-smartkarma-citation="entities:20912:1" rel="noopener">Delta Electronics Thailand</a> has already been on the Market Surveillance list for 2 months and inclusion for another 2 months will mean <a href="https://www.smartkarma.com/entities/stock-exchange-of-thailand-set-50-index" target="_blank" data-smartkarma-citation="entities:31493:1" rel="noopener">SET 50 Index</a> deletion in June.</li>
<li>A placement by <a href="https://www.smartkarma.com/entities/delta-electronics-inc" target="_blank" data-smartkarma-citation="entities:12688:1" rel="noopener">Delta Electronics (2308 TT)</a> is not out of the question and that further increases the downside risk for <a href="https://www.smartkarma.com/entities/delta-electronics-thailand-pcl-98806732-8ac4-42b2-a565-ba32673d1e5a" target="_blank" data-smartkarma-citation="entities:20912:1" rel="noopener">Delta Electronics Thailand (DELTA TB)</a>.</li>
</ul>



Delta Electronics Thailand (DELTA TB) is trading at a huge valuation premium to Delta Electronics (2308 TT), though that has narrowed over the last couple of months.

Delta Electronics Thailand has already been on the Market Surveillance list for 2 months and inclusion for another 2 months will mean SET 50 Index deletion in June.
A placement by Delta Electronics (2308 TT) is not out of the question and that further increases the downside risk for Delta Electronics Thailand (DELTA TB).


Delta Electronics (DELTA TB / 2308 TT): Off the Peak; SET50 Deletion Risk Increases

Managing Director, Zero One, Zero One

Vincent Fernando, CFA

Managing Director, Zero One

Zero One

Founded in 2015, Zero One produces independent investment research and provides corporate finance advisory services with a focus on both listed and private technology companies. Founder Vincent Fernando has over 20 years of experience in US and Asia capital markets.

Independent Investment Research

Equity Bottom-Up

Delta Electronics Thailand  / Equity Bottom-Up

<ul>
<li>Delta Thailand Weakness Amid Block Trade and Convertible Bond News</li>
<li>Delta Taiwan Offering Convertible Bonds, Convertible into Delta Thailand Shares</li>
<li>Delta Thailand Still Overvalued Relative to Delta Taiwan -- Short Delta Thailand vs. Long Delta Taiwan</li>
</ul>


Delta Thailand Weakness Amid Block Trade and Convertible Bond News
Delta Taiwan Offering Convertible Bonds, Convertible into Delta Thailand Shares
Delta Thailand Still Overvalued Relative to Delta Taiwan -- Short Delta Thailand vs. Long Delta Taiwan


Delta Taiwan Vs. Thailand Monitor: Convertible Sale; Delta Thailand Should Underperform Vs Parent Co

Head of Research, Krungthai XSpring

Waraporn Wiboonkanarak

Head of Research

A full service Thai brokerage

Krungthai XSpring

Krungthai XSpring is a full service broker. The company provides a wide range of investment services such as Securities Brokerage, Derivative Agent Business, Securities Borrowing and Lending, Securities Trading, Underwriting, Financial Advisory, Wealth Advisory, Private Fund Management and International Markets Securities Trading. 

In terms of credibility, Fitch Ratings has assigned Krunghtai XSpring a long-term rating of AA- and a national short-term rating of F1+ with stable outlook.

<ul><li>Delta International Holding Limited (DIH), a subsidiary of Delta Electronics (Taiwan) and a 14.7% shareholder in DELTA, plans to issue zero-coupon exchangeable bonds worth USD525mn to enhance working capital and support future expansion.</li><li>The bonds have a maturity date in 2030 and can be converted into DELTA shares at an initial price of Bt187.6/share (calculated at the reference price plus 40%, implying a reference price of Bt134), which may be subject to adjustment according to the terms and conditions of the bonds.</li><li>The aforementioned transaction regarding the issuance of bonds by DIH has no effect on DELTA's current policies or business operations.</li></ul>

Delta International Holding Limited (DIH), a subsidiary of Delta Electronics (Taiwan) and a 14.7% shareholder in DELTA, plans to issue zero-coupon exchangeable bonds worth USD525mn to enhance working capital and support future expansion.The bonds have a maturity date in 2030 and can be converted into DELTA shares at an initial price of Bt187.6/share (calculated at the reference price plus 40%, implying a reference price of Bt134), which may be subject to adjustment according to the terms and conditions of the bonds.The aforementioned transaction regarding the issuance of bonds by DIH has no effect on DELTA's current policies or business operations.

DELTA TB - Shareholders (DIH) Issued Convertible Bonds Exchangeable for DELTA Shares

Asian Insight Provider - Actionable ideas, CrossASEAN Research

Henry Soediarko

Asian Insight Provider - Actionable ideas

CrossASEAN Research

At CrossASEAN Research we strive to produce unbiased and differentiated on the ground insights on companies across South East Asia. Our Research is produced for the most part after face to face meetings and conversations with company management to dig deep into the long term vision and strategy of the companies we cover. We seek to deliver investable and actionable themes on sectors and markets across SE Asia, often in collaboration with other Insight Providers across the region, pooling the vast experience of the analysts within the Smartkarma Ecosystem. We also offer bespoke work and tailor made trips for our clients. 

Insights across South East Asia

<ul>
<li>
<a href="https://www.smartkarma.com/entities/delta-electronics-thailand-pcl-98806732-8ac4-42b2-a565-ba32673d1e5a" target="_blank" data-smartkarma-citation="entities:20912:1" rel="noopener">Delta Electronics Thailand (DELTA TB)</a> is a prominent data center and EV charging solution provider in Thailand.</li>
<li>Rich valuation, especially against the parent company, but its PEG ratio says otherwise.</li>
<li>It is proven that the share price weakness due to SET suspension is a buying opportunity.</li>
</ul>



Delta Electronics Thailand (DELTA TB) is a prominent data center and EV charging solution provider in Thailand.
Rich valuation, especially against the parent company, but its PEG ratio says otherwise.
It is proven that the share price weakness due to SET suspension is a buying opportunity.


Delta Electronics Thailand (Delta.BK): Buying Opportunity

<ul>
<li>Delta Thailand Still Grossly Overvalued Even After Recent Correction; Under Market Surveillance Until December 11th</li>
<li>Delta Taiwan's Market Cap Remains at Just 57% of Delta Thailand</li>
<li>Further Valuation Correction Likely Between the Two Names; We Believe Delta Taiwan Should Outperform</li>
</ul>


Delta Thailand Still Grossly Overvalued Even After Recent Correction; Under Market Surveillance Until December 11th
Delta Taiwan's Market Cap Remains at Just 57% of Delta Thailand
Further Valuation Correction Likely Between the Two Names; We Believe Delta Taiwan Should Outperform


Delta Taiwan Vs. Thailand Monitor: Delta Thai Remains at Extreme Relative Value Even After Sell-Off

Thailand

Delta Electronics (Thailand) PCL designs and manufactures electronic equipment. The Company produces power systems for telecommunications, medical equipment, and industrial automation.  Delta also produces fans, electromagnetic interference filters, and solenoids.

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Delta Electronics Thailand (DELTA-R TB)

Delta Electronics (DELTA TB / 2308 TT): Off the Peak; SET50 Deletion Risk Increases

The TH line trades at a valuation premium to the TW line. The price ratio is off the highs. Further downside possible if the parent sells down the...

Brian Freitas

Delta Taiwan Vs. Thailand Monitor: Convertible Sale; Delta Thailand Should Underperform Vs Parent Co

Delta Thailand's weakness and overvaluation compared to Delta Taiwan prompts a short on Delta Thailand and long on Delta Taiwan strategy.

Vincent Fernando, CFA

DELTA TB - Shareholders (DIH) Issued Convertible Bonds Exchangeable for DELTA Shares

Delta International Holding Limited (DIH), a subsidiary of Delta Electronics (Taiwan) and a 14.7% shareholder in DELTA, plans to issue zero-coupon...

Krungthai XSpring

Delta Electronics Thailand (Delta.BK): Buying Opportunity

Delta Electronics Thailand share price has weakened due to recent suspension by SET but it will bounce back, as historically proven.

Henry Soediarko

Delta Taiwan Vs. Thailand Monitor: Delta Thai Remains at Extreme Relative Value Even After Sell-Off

Despite recent correction, Delta Thailand is still overvalued compared to Delta Taiwan. Market cap of Delta Taiwan is only 57% of Delta Thailand....

Vincent Fernando, CFA

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

Delta Electronics (DELTA TB / 2308 TT): Off the Peak; SET50 Deletion Risk Increases

The TH line trades at a valuation premium to the TW line. The price ratio is off the highs. Further downside possible if the parent sells down the...

Brian Freitas

Delta Taiwan Vs. Thailand Monitor: Convertible Sale; Delta Thailand Should Underperform Vs Parent Co

​Delta Thailand's weakness and overvaluation compared to Delta Taiwan prompts a short on Delta Thailand and long on Delta Taiwan strategy.

Vincent Fernando, CFA

DELTA TB - Shareholders (DIH) Issued Convertible Bonds Exchangeable for DELTA Shares

Delta International Holding Limited (DIH), a subsidiary of Delta Electronics (Taiwan) and a 14.7% shareholder in DELTA, plans to issue zero-coupon...

Krungthai XSpring

Delta Electronics Thailand (Delta.BK): Buying Opportunity

Delta Electronics Thailand share price has weakened due to recent suspension by SET but it will bounce back, as historically proven.

Henry Soediarko

Delta Taiwan Vs. Thailand Monitor: Delta Thai Remains at Extreme Relative Value Even After Sell-Off

​Despite recent correction, Delta Thailand is still overvalued compared to Delta Taiwan. Market cap of Delta Taiwan is only 57% of Delta Thailand....

Vincent Fernando, CFA

Delta Thailand's weakness and overvaluation compared to Delta Taiwan prompts a short on Delta Thailand and long on Delta Taiwan strategy.

Despite recent correction, Delta Thailand is still overvalued compared to Delta Taiwan. Market cap of Delta Taiwan is only 57% of Delta Thailand....