HK/China Equity Long-Short

Osbert Tang, CFA

Equity Bottom-Up

Cathay Pacific Airways / Equity Bottom-Up

<ul>
<li>With more foreign countries being granted visa-free visits to China, <a href="https://www.smartkarma.com/entities/cathay-pacific-airways-ltd" target="_blank" data-smartkarma-citation="entities:243:1" rel="noopener">Cathay Pacific Airways (293 HK)</a> will benefit from more transfer traffic via Hong Kong.</li>
<li>Recovery is decent with passenger traffic rising 37.5% in 5M24. CX's capacity already returned to 80% of pre-pandemic in 2Q24, and this will reach 100% in 1Q25. </li>
<li>YTD, CX is still a laggard relative to many global airlines. Its P/B valuation is not stretched at 0.8x, given ROE of 11% over the next 3 years.  </li>
</ul>


With more foreign countries being granted visa-free visits to China, Cathay Pacific Airways (293 HK) will benefit from more transfer traffic via Hong Kong.
Recovery is decent with passenger traffic rising 37.5% in 5M24. CX's capacity already returned to 80% of pre-pandemic in 2Q24, and this will reach 100% in 1Q25. 
YTD, CX is still a laggard relative to many global airlines. Its P/B valuation is not stretched at 0.8x, given ROE of 11% over the next 3 years.  


Cathay Pacific (293 HK): Multiple Positive Developments

Korea/Asia, Events, IPOs, Douglas Research Advisory

Douglas Kim

Korea/Asia, Events, IPOs

Event-Driven

<ul>
<li>On 14 March, NPS announced that it has decided to vote against the re-appointment of the CEO Cho Won-tae as the executive director of Korean Air Lines.</li>
<li>It was also announced on 14 March that GS Retail purchased a 1% stake in Hanjin Kal. In addition, Korean Air Lines also purchased a 1.2% stake in GS Retail.</li>
<li>One of the growing probabilities of the changing shareholding structures is that KDB may be interested in selling its 10.6% stake in Hanjin Kal.</li>
</ul>


On 14 March, NPS announced that it has decided to vote against the re-appointment of the CEO Cho Won-tae as the executive director of Korean Air Lines.
It was also announced on 14 March that GS Retail purchased a 1% stake in Hanjin Kal. In addition, Korean Air Lines also purchased a 1.2% stake in GS Retail.
One of the growing probabilities of the changing shareholding structures is that KDB may be interested in selling its 10.6% stake in Hanjin Kal.


Another Brewing Fight for the Controlling Shareholding of Hanjin Kal?

Agri | Weather | Energy Transition, Mint Finance

Srinidhi Raghavendra

Agri | Weather | Energy Transition

Deep Fundamental Analysis

Mint Finance

Mint Finance's investment research blends deep fundamental analysis with technical & quant insights. Investment strategies straddle across multiple asset classes with risk management embedded into every trade to deliver an outsized reward-to-risk ratio.

Mint Finance's research is centered around three key themes. First, energy transition and climate change. Second, artificial intelligence. Third, shifting world order with its impact across politics and monetary economics.

Cross Asset Strategy

<ul>
<li>Markets raced to 52-week highs across US equity benchmarks with rally in tech stocks contributing to much of these gains. Nikkei raced to print another 34-year high.</li>
<li>Oil &amp; Copper ticked higher while other major commodities trended downwards last week. Beans and Corn marked their lowest price prints over the last 52-weeks.</li>
<li>Life is too short to be spent writing for an echo chamber and rewriting to meet the often arbitrary demands of a reviewer, writes Dr Damodaran.</li>
</ul>


Markets raced to 52-week highs across US equity benchmarks with rally in tech stocks contributing to much of these gains. Nikkei raced to print another 34-year high.
Oil &amp; Copper ticked higher while other major commodities trended downwards last week. Beans and Corn marked their lowest price prints over the last 52-weeks.
Life is too short to be spent writing for an echo chamber and rewriting to meet the often arbitrary demands of a reviewer, writes Dr Damodaran.


[TW2] US & JPN Equities on Steroids While China Remains Shaky on Deflation Fears (W/E 19th Jan 24)

Independent research on the U.S. markets, Baptista Research

Baptista Research

Independent research on the U.S. markets

Baptista Research is an independent financial research house focused on the U.S. markets. We provide equity research as well as credit research reports on the top-listed U.S. companies with most of our focus on technology, consumer goods and services, automobiles, industrials, oil and gas, pharma, and healthcare. Our research has served more than 3000 institutional investors including mutual funds, hedge funds, banks, family offices, and various buy-side firms. We operate a research subscription service where institutions, as well as retail investors, can have priority access to all our research. We also have a wide distribution of our research reports across some of the top global financial platforms. Apart from equity research and credit research, we also provide advisory services with respect to mergers & acquisitions (M&A), private equity/ venture capital fundraising, valuation reports, and investment management services for corporates.
Baptista Research is owned and managed by Ishan Majumdar, an ex-Venture Capitalist/ Investment Banker, a Chartered Accountant, and a Masters’ degree holder in Management from HEC Paris. Ishan has nearly a decade of experience in Mergers and Acquisitions, Leveraged Buyouts (LBOs), Venture Capital Investing, Corporate Strategy, and Valuation in front-office roles at the likes of BNP Paribas CIB, Credit Agricole CIB, Groupe Danone, and TIW Private Equity. He has worked on and closed multiple acquisition deals, leveraged buyouts, and start-up investment transactions.

United Airlines Holdings / Equity Bottom-Up

<ul><li>United Airlines reported strong financial results in the third quarter of 2023, with total revenue increasing by 12.5% and capacity growing by 15.7% year-over-year.</li><li>Looking ahead to the fourth quarter, United expects total revenue to be up approximately 10.5% on increased capacity, driven by strong demand in Atlantic and Pacific routes.</li><li>United's prudent capacity planning and focus on cost management have positioned the company for sustainable growth.</li></ul>

United Airlines reported strong financial results in the third quarter of 2023, with total revenue increasing by 12.5% and capacity growing by 15.7% year-over-year.Looking ahead to the fourth quarter, United expects total revenue to be up approximately 10.5% on increased capacity, driven by strong demand in Atlantic and Pacific routes.United's prudent capacity planning and focus on cost management have positioned the company for sustainable growth.

<ul><li>United Airlines delivered an all-around beat in the most recent quarterly result.</li><li>The strategic initiatives, including aggressive pilot hiring, fleet expansion, and route optimization, have paid off and put United on a path toward delivering impressive earnings per share.</li><li>We give United Airlines Holdings a 'Buy' rating with a revised target price.</li></ul>

United Airlines delivered an all-around beat in the most recent quarterly result.The strategic initiatives, including aggressive pilot hiring, fleet expansion, and route optimization, have paid off and put United on a path toward delivering impressive earnings per share.We give United Airlines Holdings a 'Buy' rating with a revised target price.

United Airlines Holdings Inc: 4 Factors That Are Driving Growth - Financial Forecasts

United States

United Airlines Holdings Inc is an airline holding company.  The Company owns and operates airlines that transports persons, property and mail throughout the United States and abroad.

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United Airlines Holdings (UAL US)

Cathay Pacific (293 HK): Multiple Positive Developments

As more countries gain visa-free access to China, CX will benefit from increased transfer traffic. CX's recovery is on track with passenger...

Osbert Tang, CFA

Another Brewing Fight for the Controlling Shareholding of Hanjin Kal?

On 14 March, NPS announced that it has decided to vote against the re-appointment of the CEO Cho Won-tae as the executive director of Korean Air....

Douglas Kim

[TW2] US & JPN Equities on Steroids While China Remains Shaky on Deflation Fears (W/E 19th Jan 24)

Animal spirits were back in charge last week as market sentiments rose high. US and Japanese equity markets continue to set record highs. Are we...

Mint Finance

United Airlines: European Routes

United Airlines reported strong financial results in the third quarter of 2023, with total revenue increasing by 12.5% and capacity growing by...

Baptista Research

United Airlines Holdings Inc: 4 Factors That Are Driving Growth - Financial Forecasts

United Airlines delivered an all-around beat in the most recent quarterly result. The strategic initiatives, including aggressive pilot hiring,...

Baptista Research

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Cathay Pacific (293 HK): Multiple Positive Developments

​As more countries gain visa-free access to China, CX will benefit from increased transfer traffic. CX's recovery is on track with passenger...

Osbert Tang, CFA

Another Brewing Fight for the Controlling Shareholding of Hanjin Kal?

On 14 March, NPS announced that it has decided to vote against the re-appointment of the CEO Cho Won-tae as the executive director of Korean Air....

Douglas Kim

[TW2] US & JPN Equities on Steroids While China Remains Shaky on Deflation Fears (W/E 19th Jan 24)

Animal spirits were back in charge last week as market sentiments rose high. US and Japanese equity markets continue to set record highs. Are we...

Mint Finance

United Airlines: European Routes

United Airlines reported strong financial results in the third quarter of 2023, with total revenue increasing by 12.5% and capacity growing by...

Baptista Research

United Airlines Holdings Inc: 4 Factors That Are Driving Growth - Financial Forecasts

United Airlines delivered an all-around beat in the most recent quarterly result. The strategic initiatives, including aggressive pilot hiring,...

Baptista Research

As more countries gain visa-free access to China, CX will benefit from increased transfer traffic. CX's recovery is on track with passenger...