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

Cheng Shin Rubber Ind Co., Ltd. / Event-Driven

<ul>
<li>The <a href="https://www.smartkarma.com/entities/philippines-stock-exchange-psei-index" target="_blank" data-smartkarma-citation="entities:22912:1" rel="noopener">Philippines Stock Exchange PSEi Index (PCOMP INDEX)</a> rebalance was implemented last week and there were interesting moves at the close on implementation day.</li>
<li>The focus this week will be on pre-positioning for a global index rebalance where the review period commences next week.</li>
<li>Units outstanding on <a href="https://www.smartkarma.com/entities/ishares-msci-emerging-markets-223f5da3-7054-4e4f-bc55-b7f0852c2581" target="_blank" data-smartkarma-citation="entities:31998:1" rel="noopener">iShares Emerging Markets (EMXC US)</a> are at a new high while there continue to be redemptions in <a href="https://www.smartkarma.com/entities/ishares-msci-emerging-markets" target="_blank" data-smartkarma-citation="entities:438:1" rel="noopener">iShares Emerging Markets (EEM US)</a>. </li>
</ul>


The Philippines Stock Exchange PSEi Index (PCOMP INDEX) rebalance was implemented last week and there were interesting moves at the close on implementation day.
The focus this week will be on pre-positioning for a global index rebalance where the review period commences next week.
Units outstanding on iShares Emerging Markets (EMXC US) are at a new high while there continue to be redemptions in iShares Emerging Markets (EEM US). 


Index Rebalance & ETF Flow Recap: Taiwan Div+, Nifty50, Cainiao IPO, Delta Electronics

<ul>
<li>Using data from the close on 28 September, there could be 6 adds and 5 deletes to the Yuanta/​P-Shares Taiwan Dividend Plus ETF in December.</li>
<li>There will also be capping and funding flows that will lead to a one-way turnover of 19.8% and a one-way trade of US$1.36bn.</li>
<li>There are 15 stocks with at least 3 days ADV to trade from passive trackers and another 10 stocks that have at least 1-day ADV to trade.</li>
</ul>


Using data from the close on 28 September, there could be 6 adds and 5 deletes to the Yuanta/​P-Shares Taiwan Dividend Plus ETF in December.
There will also be capping and funding flows that will lead to a one-way turnover of 19.8% and a one-way trade of US$1.36bn.
There are 15 stocks with at least 3 days ADV to trade from passive trackers and another 10 stocks that have at least 1-day ADV to trade.


Yuanta/​P-Shares Taiwan Dividend Plus ETF: 20% One-Way Turnover & US$2.72bn Trade

Pan-Asia Catalysts/Events, Quiddity Advisors

David Blennerhassett

Pan-Asia Catalysts/Events

Quiddity Advisors

Equity Bottom-Up

Yue Yuen Industrial Holdings / Equity Bottom-Up

<ul>
<li>Despite a softening global demand backdrop, <strong><a href="https://www.smartkarma.com/entities/yue-yuen-industrial-holdings-limited" target="_blank" data-smartkarma-citation="entities:12281:1" rel="noopener">Yue Yuen Industrial (551 HK)</a></strong>, a global leader in the manufacture of athletic/outdoor and casual footwear, recently recorded its best 9M results since 2017.</li>
<li>Yue Yuen's shares have only just recovered from a 20-year low.</li>
<li>From both a historical perspective and relative to peers, Yue Yuen is undemanding here. </li>
</ul>


Despite a softening global demand backdrop, Yue Yuen Industrial (551 HK), a global leader in the manufacture of athletic/outdoor and casual footwear, recently recorded its best 9M results since 2017.
Yue Yuen's shares have only just recovered from a 20-year low.
From both a historical perspective and relative to peers, Yue Yuen is undemanding here. 


Yue Yuen (551 HK): Putting Their Best Feet Forward

HK/China Healthcare Analyst (ex-Fosun Pharma)

Xinyao (Criss) Wang

<ul>
<li>Yue Yuen is essentially a large traditional manufacturing company, which once benefitted from China's cheap labor and has brilliant history. But challenges seem inevitable as labor costs gradually increase.</li>
<li>Despite 22Q1-Q3 solid performance, in the environment of high inventory of brand customers and downward pressure on global economy, the order visibility of Yue Yuen in 22Q4/23Q1 could be low.</li>
<li>Either domestic demand or external demand, the overall situation may not be optimistic. Yue Yuen’s valuation is basically lower than its peers. However, we still recommend investors to remain vigilant.</li>
</ul>


Yue Yuen is essentially a large traditional manufacturing company, which once benefitted from China's cheap labor and has brilliant history. But challenges seem inevitable as labor costs gradually increase.
Despite 22Q1-Q3 solid performance, in the environment of high inventory of brand customers and downward pressure on global economy, the order visibility of Yue Yuen in 22Q4/23Q1 could be low.
Either domestic demand or external demand, the overall situation may not be optimistic. Yue Yuen’s valuation is basically lower than its peers. However, we still recommend investors to remain vigilant.


Yue Yuen Industrial Holdings (551.HK) - Challenging Prospects Overshadow Undervaluation

External broker reports(aggregated public sources), Capital Securities Corp

Capital Securities

External broker reports(aggregated public sources)

<p>Earnings may rise further; initiate coverage with TRADING BUY. Since its shoemaking business is expected to return to normal in FY22, FY22 revenue is estimated at NTD273.198bn (+12.71% YoY) with EPS of NTD3.65. Considering that Pou Chen’s FY22 earnings may rise again, coupled with its historical PBR range of 0.6~1.1x in the past three years, we initiate coverage on Pou Chen with TRADING BUY and TP of NTD36 (0.8x FY22 PBR).</p><div class="content-highlight"><em>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.</em></div>

Earnings may rise further; initiate coverage with TRADING BUY. Since its shoemaking business is expected to return to normal in FY22, FY22 revenue is estimated at NTD273.198bn (+12.71% YoY) with EPS of NTD3.65. Considering that Pou Chen’s FY22 earnings may rise again, coupled with its historical PBR range of 0.6~1.1x in the past three years, we initiate coverage on Pou Chen with TRADING BUY and TP of NTD36 (0.8x FY22 PBR).Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Pou Chen (9904 TT, TRADING BUY, NTD33.55)

Taiwan

Makalot Industrial Co., Ltd. manufactures garments, including underwear, sleepwear, skirts, dresses, shirts, pants, shorts, etc.  The Company exports its products mostly to the United States.

Ruentex Industries Limited manufactures and markets textile products. The Company produces gingham, denim, cotton yarns, chambray, oxford, and flannel. Ruentex also sells and leases commercial and residential buildings as well as manages wholesale operations.

Eclat Textile Co., Ltd. weaves, dyes, and sells fabrics, garments, yarns, and other textile materials.  The Company distributes its products in the local and overseas markets.

Feng Tay Enterprise Co., Ltd. manufactures and markets athletic footwear products.  The Company's products include sneakers and roller blades. Its headquarters, primarily for product development and human resources functions, is located at Yunlin Science and Industrial Park in Taiwan, while its factories are spread throughout China, Vietnam, Indonesia and India.

Formosa Taffeta Co., Ltd. manufactures nylon products and other materials.  The Company produces woven fabrics, cotton yarns, blended yarns, home and comfort fabrics, special finishes fabrics, polyethylene (PE) bags, U-shaped steel wires, tire cords, and cable cords.  Formosa also operates gas stations to sell gasoline as well as diesel.

Tainan Spinning Co., Ltd manufactures and markets polyester textile products. The Company's products include polyester yarns, filaments, and staples.  Tainan Spinning also operates real estate business.

Taiwan Paiho Limited manufactures and markets a variety of fastening tapes used for clothes and shoe products, elastic cords and bands, lace products, and knit fabrics for use in apparel.

Shinkong Textile Co., Ltd. is a finished fabric developer. The Company produces blended yarns and various finished fabrics such as fashion, beach wear, and sport wear. The Company also operates brand agency business in fashion industry and invests in real estate.

Max Zipper Co., Ltd. manufactures and markets zippers and related components.  The Company's products are used in bags, baggage, clothing, sports equipment, and automobiles.

Lealea Enterprise Co., Ltd. produces polyester textured yarns as the raw materials of woven fabrics used to make garments and home furnishings.

GOLDWIN INC. manufactures and markets sportswear for skiing, snowboarding, soccer, tennis, swimming, and other outdoor activities.

Capri Holdings Limited retails apparel. The Company offers fashion luxury women's and men's accessories, footwear, apparel, watches, jewelry, eyewear, and fragrance products, as well as provides delivery services. Capri Holdings serves customers worldwide.

Bata India Limited manufactures a wide range of leather, rubber/canvas and plastic footwear products.  The Company also manufactures sports apparel and leather accessories.  Bata India sells its products through its chain of company owned retail stores in India, as well as to businesses in the USA, United Kingdom, Europe, the Middle East and the Far East.

Carter's, Inc. markets baby and young children's apparel in the United States. The Company's brands are sold to national department stores, chain and specialty stores, discount retailers, and its own retail stores.

Swan Energy Ltd., through a subsidiary, explores for or procures natural gas and liquefied natural gas for Gujarat.  The Company also develops the gas grid in Gujarat and distributes natural gas.

Relaxo Footwears Ltd. is the marketing company for Relaxo Group.  The Group manufactures Hawai and lightweight chappals.

Fujian Funeng Co., Ltd. manufactures a variety of textile including flannelette, cotton yarn, polyurethane synthetic leather, needling fabric, and water-jet bonding fabric.

KPR Mill Limited manufactures apparel products. The Company's products include carded and combed cotton and knitted fabrics.

Under Armour, Inc. develops, markets, and distributes branded performance products for men, women, and youth. The Company designs and sells a broad offering of apparel and accessories made of synthetic microfibers.

Yue Yuen Industrial (Holdings) Limited, through its subsidiaries, manufactures and markets athletic, athletic style leisure, and casual and outdoor footwear.

Pou Chen Corporation manufactures and markets footwear products such as athletic shoes, leather shoes, plastics shoes and shoe soles. The Company markets its products in Taiwan and exports to the United States, South East Asia and Europe. Pou Chen's major business is shoe material trading.

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Pou Chen (9904 TT)

Index Rebalance & ETF Flow Recap: Taiwan Div+, Nifty50, Cainiao IPO, Delta Electronics

This recap highlights Insights covering Asian index rebalances (announcements/ forecasts/ IPO Fast Entry/ M&A driven changes). We also highlight...

Brian Freitas

Yuanta/P-Shares Taiwan Dividend Plus ETF: 20% One-Way Turnover & US$2.72bn Trade

The Yuanta/P-Shares Taiwan Dividend Plus ETF may see 6 adds and 5 deletes in Dec, with a 1-way turnover of 19.8% and 1-way trade of US$1.36bn. The...

Brian Freitas

Yue Yuen (551 HK): Putting Their Best Feet Forward

Shares have bounced off a two-decade low in tandem with its best 9M net profit results since 2017. The current yield is 7.2% Upside is 60% if...

David Blennerhassett

Yue Yuen Industrial Holdings (551.HK) - Challenging Prospects Overshadow Undervaluation

Due to high inventory of brand customers/global economy downward pressure, Yue Yuen's order visibility in 22Q4/23Q1 is low.Its valuation's lower...

Xinyao (Criss) Wang

Pou Chen (9904 TT, TRADING BUY, NTD33.55)

Earnings may rise further; initiate coverage with TRADING BUY. Since its shoemaking business is expected to return to normal in FY22, FY22 revenue...

Capital Securities

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

Index Rebalance & ETF Flow Recap: Taiwan Div+, Nifty50, Cainiao IPO, Delta Electronics

This recap highlights Insights covering Asian index rebalances (announcements/ forecasts/ IPO Fast Entry/ M&A driven changes). We also highlight...

Brian Freitas

Yuanta/​P-Shares Taiwan Dividend Plus ETF: 20% One-Way Turnover & US$2.72bn Trade

The Yuanta/P-Shares Taiwan Dividend Plus ETF may see 6 adds and 5 deletes in Dec, with a 1-way turnover of 19.8% and 1-way trade of US$1.36bn. The...

Brian Freitas

Yue Yuen (551 HK): Putting Their Best Feet Forward

Shares have bounced off a two-decade low in tandem with its best 9M net profit results since 2017. The current yield is 7.2% Upside is 60% if...

David Blennerhassett

Yue Yuen Industrial Holdings (551.HK) - Challenging Prospects Overshadow Undervaluation

Due to high inventory of brand customers/global economy downward pressure, Yue Yuen's order visibility in 22Q4/23Q1 is low.Its valuation's lower...

Xinyao (Criss) Wang

Pou Chen (9904 TT, TRADING BUY, NTD33.55)

Earnings may rise further; initiate coverage with TRADING BUY. Since its shoemaking business is expected to return to normal in FY22, FY22 revenue...

Capital Securities

Yuanta/P-Shares Taiwan Dividend Plus ETF: 20% One-Way Turnover & US$2.72bn Trade