Pan-Asia Catalysts/Events, Quiddity Advisors

David Blennerhassett

Pan-Asia Catalysts/Events

Quiddity Advisors

Event-Driven

<ul>
<li>Recent underperformance of <a href="https://www.smartkarma.com/entities/newmont-mining-corp" target="_blank" data-smartkarma-citation="entities:14503:1" rel="noopener">Newmont Mining (NEM US)</a> vs Peers appears to be part of a "perfect storm". </li>
<li>
<a href="https://www.smartkarma.com/entities/pccw-ltd" target="_blank" data-smartkarma-citation="entities:873:1" rel="noopener">PCCW Ltd (8 HK)</a> has an attractive yield on its side; and Richard Li has been buying. But a 6% premium to NAV is unsustainable for this holding company structure.</li>
<li>Palliser Capital's straightforward request is for a 35% reduction in <a href="https://www.smartkarma.com/entities/keisei-electric-railway-co" target="_blank" data-smartkarma-citation="entities:10876:1" rel="noopener">Keisei Electric Railway Co (9009 JP)</a>'s <a href="https://www.smartkarma.com/entities/oriental-land-co-ltd" target="_blank" data-smartkarma-citation="entities:13517:1" rel="noopener">Oriental Land (4661 JP)</a> holding reflects a strategic urgency. </li>
</ul>


Recent underperformance of Newmont Mining (NEM US) vs Peers appears to be part of a "perfect storm". 

PCCW Ltd (8 HK) has an attractive yield on its side; and Richard Li has been buying. But a 6% premium to NAV is unsustainable for this holding company structure.
Palliser Capital's straightforward request is for a 35% reduction in Keisei Electric Railway Co (9009 JP)'s Oriental Land (4661 JP) holding reflects a strategic urgency. 


Last Week In Event SPACE: Newcrest/Newmont, Keisei Electric, PCCW, Cosmo Energy, Leapmotor

Zhejiang Leapmotor Technologie / Event-Driven

<ul>
<li>Stellantis, a merger between France's PSA with <a href="https://www.smartkarma.com/entities/fiat-chrysler-automobiles-nv-a93eafd5-cb8b-446b-b575-9caeb7edc8fc" target="_blank" data-smartkarma-citation="entities:24699:1" rel="noopener">Fiat Chrysler Automobiles NV (FCAM BQ)</a>, is buying a 17% stake (14.53% fully diluted) in <a href="https://www.smartkarma.com/entities/zhejiang-leapmotor-technologie" target="_blank" data-smartkarma-citation="entities:35968:1" rel="noopener">Zhejiang Leapmotor Technologie (9863 HK)</a>. </li>
<li>Leapmotor will issue 194mn H shares at HK$43.8/share, a 19% premium to last close, in a HK$8.51bn transaction. Stellantis will also hold a 51% stake in newly formed JV. </li>
<li>Stellantis is paying a chunky 3.64x market cap-trailing-revenue; but ~2.25x forward revs, which compares to the average for key peers of 1.9x.</li>
</ul>


Stellantis, a merger between France's PSA with Fiat Chrysler Automobiles NV (FCAM BQ), is buying a 17% stake (14.53% fully diluted) in Zhejiang Leapmotor Technologie (9863 HK). 
Leapmotor will issue 194mn H shares at HK$43.8/share, a 19% premium to last close, in a HK$8.51bn transaction. Stellantis will also hold a 51% stake in newly formed JV. 
Stellantis is paying a chunky 3.64x market cap-trailing-revenue; but ~2.25x forward revs, which compares to the average for key peers of 1.9x.


Leapmotor (9863 HK): Stellantis' Stake Doesn't Come Cheap

Articles from Caixin Global, Caixin Global

Caixin Global

Articles from Caixin Global

Caixin is a media group dedicated to providing financial and business news through periodicals, online content, mobile apps, conferences, books and TV/video programs. Caixin aims to blaze a trail that helps traditional media prosper in the new media age through integrated multimedia platforms.

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Cross Asset Strategy

<ul><li>India / Cover Story: Modi steers India’s relationship with Russia through storm of Ukraine war</li><li>CICC /: Top Chinese investment bank CICC picks new boss</li><li>Corruption /: Ex-executive of Shanghai bourse accused of bribery and fake divorce</li></ul>

India / Cover Story: Modi steers India’s relationship with Russia through storm of Ukraine warCICC /: Top Chinese investment bank CICC picks new bossCorruption /: Ex-executive of Shanghai bourse accused of bribery and fake divorce

CX Daily: Modi Steers India’s Relationship With Russia Through Storm of Ukraine War 

Equity Bottom-Up

<ul><li>Dongfeng Motor Group Co. Ltd. will acquire automotive assets from its joint venture (JV) with Stellantis NV, as part of the carmaker’s strategy to consolidate its manufacturing resources amid weak car sales in China.</li><li>Dongfeng Peugeot Citroën Automobile Co. Ltd. (DPCA) will sell assets including certain land use rights, buildings, and structures in Wuhan and Xiangyang in Hubei province to Dongfeng Motor in a 1.71 billion yuan ($234 million) deal, the latter said in a filing to the Hong Kong Stock Exchange Thursday.</li><li>The assets have been used by DPCA mainly to produce its existing Peugeot, Citroën and Fukang models, the filing said, and the JV will continue making the cars under a 10-year leasing agreement.</li></ul>

Dongfeng Motor Group Co. Ltd. will acquire automotive assets from its joint venture (JV) with Stellantis NV, as part of the carmaker’s strategy to consolidate its manufacturing resources amid weak car sales in China.Dongfeng Peugeot Citroën Automobile Co. Ltd. (DPCA) will sell assets including certain land use rights, buildings, and structures in Wuhan and Xiangyang in Hubei province to Dongfeng Motor in a 1.71 billion yuan ($234 million) deal, the latter said in a filing to the Hong Kong Stock Exchange Thursday.The assets have been used by DPCA mainly to produce its existing Peugeot, Citroën and Fukang models, the filing said, and the JV will continue making the cars under a 10-year leasing agreement.

Dongfeng Motor to Buy Assets From Stellantis JV to Consolidate Manufacturing

Managing Director, Zero One, Zero One

Vincent Fernando, CFA

Managing Director, Zero One

Hon Hai Precision Industry / Equity Bottom-Up

<ul>
<li>Hon Hai's 2Q23 results beat earnings street expectations by nearly 30%, thanks to AI server demand and gross margin rising.</li>
<li>Tightening China tech restrictions highlight Hon Hai's advantageous position for EV development.</li>
<li>Structural Long. Any weakness over worries about Apple/consumer products demand is an opportunity to accumulate. Investors shouldn't let cyclical expectations fluctuations blur their focus on Hon Hai's structural story.</li>
</ul>


Hon Hai's 2Q23 results beat earnings street expectations by nearly 30%, thanks to AI server demand and gross margin rising.
Tightening China tech restrictions highlight Hon Hai's advantageous position for EV development.
Structural Long. Any weakness over worries about Apple/consumer products demand is an opportunity to accumulate. Investors shouldn't let cyclical expectations fluctuations blur their focus on Hon Hai's structural story.


Hon Hai AI Server Business Expected to Take Market Share 2H23E, Structural Long

United Kingdom

Fiat Chrysler Automobiles NV manufactures and markets automobiles and commercial vehicles. The Company also produces metallurgical products and production systems for the automobile industry, and owns publishing and insurance companies.

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Fiat Chrysler Automobiles NV (FCAM BQ)

Last Week In Event SPACE: Newcrest/Newmont, Keisei Electric, PCCW, Cosmo Energy, Leapmotor

The weekend is here! Pour yourself a coffee, grab a comfortable seat, and sift through a brief summary of insights on various events discussed...

David Blennerhassett

Leapmotor (9863 HK): Stellantis' Stake Doesn't Come Cheap

Stellantis is paying a chunky 3.64x market cap-trailing revenue; but ~2.25x forward revs, which compares to the average for key peers of 1.9x.

David Blennerhassett

CX Daily: Modi Steers India’s Relationship With Russia Through Storm of Ukraine War

India / Cover Story: Modi steers India’s relationship with Russia through storm of Ukraine war In the months leading up to the New Delhi summit,...

Caixin Global

Dongfeng Motor to Buy Assets From Stellantis JV to Consolidate Manufacturing

Dongfeng Motor Group Co. Ltd. will acquire automotive assets from its joint venture (JV) with Stellantis NV, as part of the carmaker’s strategy to...

Caixin Global

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

Last Week In Event SPACE: Newcrest/Newmont, Keisei Electric, PCCW, Cosmo Energy, Leapmotor

The weekend is here! Pour yourself a coffee, grab a comfortable seat, and sift through a brief summary of insights on various events discussed...

David Blennerhassett

Leapmotor (9863 HK): Stellantis' Stake Doesn't Come Cheap

Stellantis is paying a chunky 3.64x market cap-trailing revenue; but ~2.25x forward revs, which compares to the average for key peers of 1.9x.

David Blennerhassett

CX Daily: Modi Steers India’s Relationship With Russia Through Storm of Ukraine War

India / Cover Story: Modi steers India’s relationship with Russia through storm of Ukraine war In the months leading up to the New Delhi summit,...

Caixin Global

Dongfeng Motor to Buy Assets From Stellantis JV to Consolidate Manufacturing

Dongfeng Motor Group Co. Ltd. will acquire automotive assets from its joint venture (JV) with Stellantis NV, as part of the carmaker’s strategy to...

Caixin Global

Hon Hai AI Server Business Expected to Take Market Share 2H23E, Structural Long

Any weakness over worries about Apple/consumer products is an opportunity to accumulate. Investors shouldn't let cyclical expectations fluctuations...

Vincent Fernando, CFA