Pan-Asia Catalysts/Events, Quiddity Advisors

David Blennerhassett

Pan-Asia Catalysts/Events

Quiddity Advisors

Event-Driven

<ul>
<li>
<a href="https://www.smartkarma.com/entities/sanergy-group-ltd" target="_blank" data-smartkarma-citation="entities:40079:1" rel="noopener">Sanergy (2459 HK)</a>, a graphite electrode manufacturer, was added to the MSCI Small-Cap Index on 30th August; and was due to enter the Hang Seng Composite Index on 9th September.</li>
<li>However, the SFC <a href="https://www.hkexnews.hk/listedco/listconews/sehk/2024/0902/2024090202067.pdf" target="_blank" rel="noopener">announced</a> a concentration warning on the 2nd September. Shares promptly cratered ~98% yesterday (the 3rd September). Expect the HSCI inclusion to now be yanked.</li>
<li>This Sanergy debacle should refocus investors on other heavily concentrated stocks, such as <a href="https://www.smartkarma.com/entities/jinhai-medical-technology-limited" target="_blank" data-smartkarma-citation="entities:40641:1" rel="noopener">Jinhai Medical (2225 HK)</a>, in which <a href="https://www.smartkarma.com/entities/gofintech-innovation-ltd" target="_blank" data-smartkarma-citation="entities:4384:1" rel="noopener">GoFintech (290 HK)</a> (another heavily concentrated stock) has inexplicably been buying. </li>
</ul>



Sanergy (2459 HK), a graphite electrode manufacturer, was added to the MSCI Small-Cap Index on 30th August; and was due to enter the Hang Seng Composite Index on 9th September.
However, the SFC announced a concentration warning on the 2nd September. Shares promptly cratered ~98% yesterday (the 3rd September). Expect the HSCI inclusion to now be yanked.
This Sanergy debacle should refocus investors on other heavily concentrated stocks, such as Jinhai Medical (2225 HK), in which GoFintech (290 HK) (another heavily concentrated stock) has inexplicably been buying. 


GoFinTech (290 HK)/Jinhai Medical (2225 HK): Double Bubble Trouble

<ul>
<li>Buy dips on the possibility that 3DIP would not agree to Bain. Otherwise, at ¥9,000 <a href="https://www.smartkarma.com/entities/fuji-soft-inc" target="_blank" data-smartkarma-citation="entities:17504:1" rel="noopener">Fuji Soft (9749 JP)</a> is a buy, and at ¥9,500, it's probably a sell near-term.</li>
<li>Drilling down into its balance sheet uncovers additional value for <a href="https://www.smartkarma.com/entities/jardine-matheson-holdings-ltd" target="_blank" data-smartkarma-citation="entities:19718:1" rel="noopener">Jardine Matheson Holdings (JM SP)</a>; but not enough to move the needle</li>
<li>
<a href="https://www.smartkarma.com/entities/exedy-corp" target="_blank" data-smartkarma-citation="entities:6516:1" rel="noopener">Exedy Corp (7278 JP)</a> completed its buyback. Murakami Group bought more. The stock (pro-forma) is at 0.62x book, 0.54x book for the non-cash portion. There's LOTS of cash left.</li>
</ul>


Buy dips on the possibility that 3DIP would not agree to Bain. Otherwise, at ¥9,000 Fuji Soft (9749 JP) is a buy, and at ¥9,500, it's probably a sell near-term.
Drilling down into its balance sheet uncovers additional value for Jardine Matheson Holdings (JM SP); but not enough to move the needle

Exedy Corp (7278 JP) completed its buyback. Murakami Group bought more. The stock (pro-forma) is at 0.62x book, 0.54x book for the non-cash portion. There's LOTS of cash left.


Last Week in Event SPACE: Fuji Soft, Jardine Matheson, Exedy, Henderson

Singapore

Jinhai Medical Technology Limited provides manpower outsourcing and ancillary services to building and construction contractors in Singapore.

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Jinhai Medical Technology (2225 HK)

GoFinTech (290 HK)/Jinhai Medical (2225 HK): Double Bubble Trouble

I would not touch GoFintech Innovation (290 HK) or Jinhai Medical (2225 HK) with a ten foot pole. I can see both companies making the news for all...

David Blennerhassett

Last Week in Event SPACE: Fuji Soft, Jardine Matheson, Exedy, Henderson

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

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