Independent Asian Credit Research, Bondcritic

Warut Promboon

Independent Asian Credit Research

Asian Fixed Income/Frontier Market Research

Bondcritic

Bondcritic, established in 2009, is designed to be an independent credit research voice that helps investors gain insights and unbiased analyses on Asian fixed income market. Our mission is to discover deep-value Asian high-yield and distressed bonds with a bottom-up approach, together with the help of our proprietary ESG (Environmental, Social Development, and Governance) model. At the same time, we focus on bringing investment cases of unrated and unloved issuers to the general public.

Credit

<h2>Executive summary</h2>
We launch our inaugural joint policy research on China’s Greater Bay Area (GBA) with the assistance from Joy Rich Securities Investment’s Guangdong-Hong Kong-Macau Greater Bay Area Academic Research Group. Here we highlight what comprises GBA, timeline, comparison against major economies and other bay areas, deep-dive research into key industries and policies toward each part of GBA. China is a Policy-induced story and GBA is in the Chinese government’s interest to prosper.
We believe the composition of 9 cities and 2 special administrative regions, together with policy support by the Chinese government provides a backdrop for rising credit growth backed by productivity. We will continue to monitor credits which either are based in GBA or will benefit from the GBA scheme (EXHIBIT 9).

Executive summary
We launch our inaugural joint policy research on China’s Greater Bay Area (GBA) with the assistance from Joy Rich Securities Investment’s Guangdong-Hong Kong-Macau Greater Bay Area Academic Research Group. Here we highlight what comprises GBA, timeline, comparison against major economies and other bay areas, deep-dive research into key industries and policies toward each part of GBA. China is a Policy-induced story and GBA is in the Chinese government’s interest to prosper.
We believe the composition of 9 cities and 2 special administrative regions, together with policy support by the Chinese government provides a backdrop for rising credit growth backed by productivity. We will continue to monitor credits which either are based in GBA or will benefit from the GBA scheme (EXHIBIT 9). 

China’s Greater Bay Area: The Essential

Korea/Asia, Events, IPOs, Douglas Research Advisory

Douglas Kim

Korea/Asia, Events, IPOs

Equity Bottom-Up

<ul>
<li>In this report, we provide an update on <a href="https://www.smartkarma.com/entities/8814" target="_blank" data-smartkarma-citation="entities:8814:1">Lg Electronics (066570 KS)</a>, including the potential impact of the war on Huawei on the company, dividend policy, debt issue, sales of non-core assets, and the launch of new smartphones. </li>
<li>Although LG's V50 ThinQ product is a bit disappointing, another new LG smartphone called G8ThinQ appears to be promising. This is one of the first smartphones to use "air motion" technology to activate some of the features including playing a song or video or adjusting volume (remember Tom Cruise in the movie Minority Report)? The airmotion technology could bring back the "thrill" of using a smartphone. </li>
<li>
Many investors around the world are asking, "What companies will benefit from the continued war on Huawei by the US government?" LG Electronics, the 7th largest smartphone maker globally, could be one of the key beneficiaries of the war on Huawei. </li>
<li>LG Electronics recently announced that it will pay DPS of 750 won for its common shareholders in 2018, which is nearly twice as high the DPS of 400 won in 2017. </li>
</ul>


In this report, we provide an update on Lg Electronics (066570 KS), including the potential impact of the war on Huawei on the company, dividend policy, debt issue, sales of non-core assets, and the launch of new smartphones. 
Although LG's V50 ThinQ product is a bit disappointing, another new LG smartphone called G8ThinQ appears to be promising. This is one of the first smartphones to use "air motion" technology to activate some of the features including playing a song or video or adjusting volume (remember Tom Cruise in the movie Minority Report)? The airmotion technology could bring back the "thrill" of using a smartphone. 

Many investors around the world are asking, "What companies will benefit from the continued war on Huawei by the US government?" LG Electronics, the 7th largest smartphone maker globally, could be one of the key beneficiaries of the war on Huawei. 
LG Electronics recently announced that it will pay DPS of 750 won for its common shareholders in 2018, which is nearly twice as high the DPS of 400 won in 2017. 


LG Electronics - Boost from Higher Dividends, Air Motion Technology, & The War Against Huawei

Materials Analyst/Strategist, Janus Analysis

Gaius King

Materials Analyst/Strategist

Accelerating Tomorrow’s Independent Research

Boost Research

Boost Research Ltd is an appointed representative of Messels Ltd which is authorised and regulated by the FCA of the UK. 

This document is issued by Boost Research Limited solely for its clients. It may not be reproduced, redistributed or passed to any other person in whole or in part for any purpose without written consent of Boost Research. The material in this document is not intended for distribution or use outside the United Kingdom. This material is not directed at you if Boost Research is prohibited or restricted by any legislation or regulation in any jurisdiction from making it available to you.

This document is provided for information purposes only and should not be regarded as an offer, solicitation, invitation, inducement or recommendation relating to the subscription, purchase or sale of any security or other financial instrument.  This document does not constitute, and should not be interpreted as, investment advice.  It is accordingly recommended that you should seek independent advice from a suitably qualified professional advisor before taking any decisions in relation to the investments detailed herein. All expressions of opinions and estimates constitute a judgement and, unless otherwise stated, are those of the author and the research department of Boost Research only, and are subject to change without notice. Boost Research is under no obligation to update the information contained herein. Whilst Boost Research has taken all reasonable care to ensure that the information contained in this document is not untrue or misleading at the time of publication, Boost Research cannot guarantee its accuracy or completeness, and you should not act on it without first independently verifying its contents. This document is not guaranteed to be a complete statement or summary of any securities, markets, reports or developments referred to herein. No representation or warranty either expressed or implied is made, nor responsibility of any kind is accepted, by Boost Research or any of its respective directors, officers, employees or analysts either as to the accuracy or completeness of any information contained in this document nor should it be relied on as such. No liability whatsoever is accepted by Boost Research or any of its respective directors, officers, employees or analysts for any loss, whether direct or consequential, arising whether directly or indirectly as a result of the recipient acting on the content of this document, including, without limitation, lost profits arising from the use of this document or any of its contents.

This document is provided with the understanding that Boost Research is not acting in a fiduciary capacity and it is not a personal recommendation to you. Investing in securities entails risks. Past performance is not necessarily a guide to future performance. The value of and the income produced by products may fluctuate, so that an investor may get back less than he invested. Investments in the entities and/or the securities or other financial instruments referred to are not suitable for all investors and this document should not be relied upon in substitution for the exercise of independent judgment in relation to any such investment. The stated price of any securities mentioned herein will generally be the closing price at the end of any of the three business days immediately prior to the publication date on this document. This stated price is not a representation that any transaction can be effected at this price.

Boost Research and its respective analysts are remunerated for providing investment research to professional investors, corporations, other research institutions and consultancy houses. Boost Research, or its respective directors, officers, employees and clients may have or take positions in the securities or entities mentioned in this document.  Any of these circumstances could create, or be perceived as creating, conflicts of interest. Boost Research’ analysts are not censored in any way and are free to express their personal opinions. As a result, Boost Research may have issued other documents that are inconsistent with and reach different conclusions from, the information contained in this document. Those documents reflect the different assumptions, views and analytical methods of their authors. No director, officer or employee of Boost Research is on the board of directors of any company referenced herein and no one at any such referenced company is on the board of directors of Boost Research.

Messels is authorised and regulated in the United Kingdom by the Financial Conduct Authority for the provision of investment advice. Residents of the United Kingdom should seek specific professional financial and investment advice from a stockbroker, banker, solicitor, accountant or other independent professional adviser authorised pursuant to the Financial Services and Markets Act 2000. This report is intended only for investors who are 'professional clients' as defined by the FCA, and may not, therefore, be redistributed to other classes of investors.

The content of this report is covered by our Policy of Independence which may be viewed at www.messels.com.

 

Analysts’ Certification

The analysts involved in the production of this document hereby certify that the views expressed in this document accurately reflect their personal views about the securities mentioned herein. The analysts point out that they may buy, sell or already have taken positions in the securities, and related financial instruments, mentioned in this document

Thematic (Sector/Industry)

<ul>
<li>China implements coal import caps specifically targeting Australian producers</li>
<li>Unclear as to how widespread these restrictions will eventually be</li>
<li>Thermal and metallurgical coal exports affected</li>
<li>Impacting ~A$8.4Bn of metallurgical coal exports; or 4.4% of national income</li>
<li>Thermal coal exports affected worth ~A$3.8Bn; or an additional 2% of national income</li>
<li>Collectively, thermal and metallurgical exports equate to ~0.9% of Australian annual GDP </li>
<li>Actions appear to be a response to blocking Huawei bidding for the 5G network</li>
<li>Recent Chinese cyber-attacks harden Australian Government's resolve</li>
<li>Expect similar Chinese measures (in time) to be applied to other commodities and industries</li>
</ul>


China implements coal import caps specifically targeting Australian producers
Unclear as to how widespread these restrictions will eventually be
Thermal and metallurgical coal exports affected
Impacting ~A$8.4Bn of metallurgical coal exports; or 4.4% of national income
Thermal coal exports affected worth ~A$3.8Bn; or an additional 2% of national income
Collectively, thermal and metallurgical exports equate to ~0.9% of Australian annual GDP 
Actions appear to be a response to blocking Huawei bidding for the 5G network
Recent Chinese cyber-attacks harden Australian Government's resolve
Expect similar Chinese measures (in time) to be applied to other commodities and industries


Confluence of Politics - China Bans Australian Coal Imports (Flash Note)

Equity Analyst, LightStream Research

Farha Sabri

Equity Analyst

Long-Short Analysis on Japan, Asia and the World

LightStream Research

LightStream conducts quantitatively rigorous and data-driven analysis with a focus on Japan and Asia.

We consistently cover the Tech, Consumer and Industrial sectors, and provide ECM and Events coverage more broadly.

We supplement traditional qualitative insights from company relationships with a robust quantitative foundation that examines as much historical data as is available.
We further refine the accuracy of our insights and calls through the use of alternative data to flesh out current trends, and through a valuation framework that emphasises non-superficial peer group selection and a proper attempt to understand the metrics and changes that have driven security valuations in the past.

Plans regarding Samsung and Huawei’s foldable smartphones are out. The companies, which happen to be two of the largest contenders in the smartphone landscape are expected to unveil their foldable smartphone prototypes this month. In 4Q2018, Samsung, coming in first place, held a market share of 18.7% while Huawei, in third place, held a market share of 16.1%. Both companies are following different strategies when it comes to their foldable phone models.
The concept of foldable phones revolves around devices that can be folded into the size of a smartphone or opened up in to the size of a tablet. Huawei is said to be planning to introduce their foldable smartphone with 5G compatibility while Samsung is planning to release their foldable model with 4G compatibility. The market leader aims to leverage the expertise it has gained on its display technologies in its foldable smartphones.

Plans regarding Samsung and Huawei’s foldable smartphones are out. The companies, which happen to be two of the largest contenders in the smartphone landscape are expected to unveil their foldable smartphone prototypes this month. In 4Q2018, Samsung, coming in first place, held a market share of 18.7% while Huawei, in third place, held a market share of 16.1%. Both companies are following different strategies when it comes to their foldable phone models.
The concept of foldable phones revolves around devices that can be folded into the size of a smartphone or opened up in to the size of a tablet. Huawei is said to be planning to introduce their foldable smartphone with 5G compatibility while Samsung is planning to release their foldable model with 4G compatibility. The market leader aims to leverage the expertise it has gained on its display technologies in its foldable smartphones.

Foldable Smartphones to Debut in 2019; Will It Aid an Industry Turnaround?

IPOs and Catalysts/Events, Global Equity Research Ltd

Arun George

IPOs and Catalysts/Events

Uncompromised, Independent, Conflict-Free Research

Global Equity Research Ltd

Global Equity Research was started in 2017 by a group of experienced research professionals. It was founded on a passionate belief in the importance and the need for uncompromised, independent, conflict-free research. We aim to provide differentiated and actionable primary and bottom up fundamental research.

Event-Driven

On Tuesday, <a href="https://www.smartkarma.com/entities/323" target="_blank" data-smartkarma-citation="entities:323:1">TPG Telecom Ltd (TPM AU)</a> surprisingly cancelled plans to roll out its mobile network in Australia, blaming the government’s ban on using <a href="https://www.smartkarma.com/entities/8231" target="_blank" data-smartkarma-citation="entities:8231:1">Huawei Technology (40978Z CH)</a> for 5G equipment for its decision. The market seems to be undecided if TPG’s decision will lead to Australian Competition and Consumer Commission (ACCC) approving the TPG/VHA merger as TPG shares rose 3%, but <a href="https://www.smartkarma.com/entities/14151" target="_blank" data-smartkarma-citation="entities:14151:1">Hutchison Telecomm (Aust) (HTA AU)</a> (50% owner of VHA) shares declined 4%.<div class="content-highlight">The bull view is that TPG’s decision removes ACCC’s primary concern and paves the way for approval. The bear view is that TPG’s eggs are all in the merger basket and the ACCC could call TPG’s bluff and block the merger. Overall, TPG’s decision to cancel its network rollout plans does not change our view that the risk-reward remain skewed towards the downside.</div>

On Tuesday, TPG Telecom Ltd (TPM AU) surprisingly cancelled plans to roll out its mobile network in Australia, blaming the government’s ban on using Huawei Technology (40978Z CH) for 5G equipment for its decision. The market seems to be undecided if TPG’s decision will lead to Australian Competition and Consumer Commission (ACCC) approving the TPG/VHA merger as TPG shares rose 3%, but Hutchison Telecomm (Aust) (HTA AU) (50% owner of VHA) shares declined 4%.The bull view is that TPG’s decision removes ACCC’s primary concern and paves the way for approval. The bear view is that TPG’s eggs are all in the merger basket and the ACCC could call TPG’s bluff and block the merger. Overall, TPG’s decision to cancel its network rollout plans does not change our view that the risk-reward remain skewed towards the downside.

TPG Telecom/VHA Merger: A High Stakes Gamble to Abandon Mobile Network Rollout

China

Huawei Technologies Co., Ltd. provides networking products and telecommunication solutions. The Company researches and develops internet access, transmission network, servers, storage, security, and other networking products. Huawei Technologies also offers business consulting, network integration, assurance, managed, learning, and global delivery services.

Price Gauge
52-week Range	0.00 - 0.00
Market Cap (USDm)	0.00
P/E	0.00
Dividend (Yield)	0.00

Huawei Technology (40978Z CH)

China’s Greater Bay Area: The Essential

Executive summary We launch our inaugural joint policy research on China’s Greater Bay Area (GBA) with the assistance from Joy Rich Securities...

Bondcritic

LG Electronics - Boost from Higher Dividends, Air Motion Technology, & The War Against Huawei

In this report, we provide an update on Lg Electronics (066570 KS), including the potential impact of the war on Huawei on the company, dividend...

Douglas Kim

Confluence of Politics - China Bans Australian Coal Imports (Flash Note)

China implements coal import caps specifically targeting Australian producers Unclear as to how widespread these restrictions will eventually...

Boost Research

Foldable Smartphones to Debut in 2019; Will It Aid an Industry Turnaround?

Plans regarding Samsung and Huawei’s foldable smartphones are out. The companies, which happen to be two of the largest contenders in the...

Farha Sabri

TPG Telecom/VHA Merger: A High Stakes Gamble to Abandon Mobile Network Rollout

On Tuesday, TPG Telecom Ltd (TPM AU) surprisingly cancelled plans to roll out its mobile network in Australia, blaming the government’s ban on...

Arun George

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)