Smartkarma Daily Briefs

Korea’s majority party plans to amend the Capital Markets Act to base listed companies’ merger ratios on intrinsic rather than market value, dubbed the “Doosan Bobcat Prevention Law.”
Other conglomerates, like Hanwha and Hyundai Motor Group, may execute mergers just before this amendment.
We should expect shareholder-favorable merger ratios. So, we should position in such companies before announcements, ideally just before the new amendment’s enforcement.

Sanil Electric IPO Book Building Results Analysis

By Douglas Kim

Sanil Electric reported excellent IPO book building results. The IPO price has been determined at 35,000 won, which is 16.7% higher than the high end of the IPO price range.
The demand ratio from 2,205 institutional investors was 414 to 1. Sanil Electric (062040 KS) IPO will start trading on 29 July 2024.
Our base case valuation of Sanil Electric is market cap of 1.8 trillion won or target price of 58,593 won (67% higher than the IPO price of 35,000 won).

CSX Corporation: How They Are Looking To Expand Their Business Through Strategic Partnerships and Network Collaboration! – Major Drivers

CSX Corporation reported mixed financial results for the first quarter of 2024, demonstrating solid operational performance amid various challenges including severe weather and infrastructure disruptions.
The company recorded a total volume increase of 3% driven primarily by a 7% growth in its Intermodal business.
Despite this growth in volume, revenue declined slightly by approximately 1% year over year to just under $3.7 billion, influenced by lower fuel surcharges and changes in mix.

Toyo Tanso (5310 JP): Q1 FY12/24 report update

By Shared Research

Q1 FY12/24 results: Revenue JPY12.6bn (+11.2% YoY), Operating profit JPY2.5bn (+19.1% YoY), Net income JPY2.4bn (+29.8% YoY).
Orders and backlog: Orders JPY12.0bn (+7.6% YoY), Order backlog JPY17.4bn (+9.1% YoY), driven by semiconductor-related applications.
FY12/24 forecast: Revenue JPY54.0bn (+9.6% YoY), Operating profit JPY10.9bn (+17.4% YoY), Capital investment JPY16.0bn (JPY5.7bn in FY12/23).

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Jul 18

Daily Brief Financials: ESR Group , Ciputra Development and more

By Smartkarma Daily Briefs | Daily Briefs, Financials

In today’s briefing:

Atla Global Management’s John Haskell on International Real Estate + ESR Group Thesis $1821.HK
Ciputra Development (CTRA IJ) – Riding the Affordability Wave

Atla Global Management’s John Haskell on International Real Estate + ESR Group Thesis $1821.HK

By Yet Another Value Podcast

Andrew Walker hosts the podcast and introduces John Haskell, CIO at Ulta Global Management
Ulta Global focuses on international public real estate investing, particularly in emerging markets
Despite negative perception and underperformance in emerging markets, there are opportunities for value investing in international real estate

This content is sourced through publicly available sources and has been machine generated. Information displayed is for general informational purposes only.

Ciputra Development (CTRA IJ) – Riding the Affordability Wave

By Angus Mackintosh

Ciputra Development (CTRA IJ) continued to book strong marketing sales in 1H2024 and looks well on track to meet or beat its FY2024E guidance with a strong pipeline of projects.
CTRA has the most geographically diversified portfolios in the sector and operates an asset-light joint operating scheme strategy allowing for faster expansion and a good portion of recurrent rental income.
The VAT exemption program looks set to continue to drive residential demand in 2H2024 with CTRA riding the affordability wave having also repositioned its target market.

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Jul 18

Daily Brief Consumer: Hyundai Motor India , Koito Manufacturing, NIO , Samson Holding, Isetan Mitsukoshi Holdings Ltd, MercadoLibre , TSE Tokyo Price Index TOPIX, Adeia, GameStop, Dr Horton Inc and more

By Smartkarma Daily Briefs | Consumer, Daily Briefs

In today’s briefing:

Hyundai Motor India Pre-IPO – Peer Comparison – Doesn’t Stand Out
Koito Mfg (7276) Bounces The Same as It Bounced in March On the Same News – An Echo? Meh Again.
China Autos Landscape Has Permanently Changed, Foreign Brands Have Lost Their Clout
Samson (531 HK): MBO Via A Scheme
Isetan-Mitsukoshi Bets on Flagships and Real Estate
MercadoLibre: A Credit Look into the Latin American Rising Star
Women’s Empowerment in Japan Will Still Take a Considerable Amount of Time
ADEA: License to Preview
GameStop: The Sinking Ship with a New Paint Job – Should You Board?
D.R. Horton Inc.: A Tale Of Dealing With Interest Rate Fluctuations and Market Adaptability! – Major Drivers

Hyundai Motor India Pre-IPO – Peer Comparison – Doesn’t Stand Out

Hyundai Motor (005380 KS) is looking to raise around US$3bn via listing its India unit, Hyundai Motor India. HMI is a wholly owned subsidiary of the Hyundai Motor Group.
HMI primarily manufactures and sells four-wheeler passenger vehicles and parts. Currently its vehicle portfolio includes 13 passenger vehicle models across sedans, hatchbacks, SUVs and battery EVs.
In our previous note, we looked at the company’s past performance. In this note, we undertake a peer comparison.

Koito Mfg (7276) Bounces The Same as It Bounced in March On the Same News – An Echo? Meh Again.

An interview in the Nikkei of Koito Manufacturing (7276 JP) CFO Takahito OTAKE offered the comment that Koito Mfg expected a shareholder return of 130% a year through March 2029.
The stock popped 19% after lunch on that comment, then fell back to end up 5.0%.
This is the same pop as we saw end-March. Then it was +24.6% and it stayed up the next day. Same reason for the pop. This was an echo.

China Autos Landscape Has Permanently Changed, Foreign Brands Have Lost Their Clout

By Mohshin Aziz

Chinese auto brands commands 61% market share in May 2024, up from 7% in 2021. Its premium car market share has also risen to 25% from nothing
The transition towards EV, swift adoption of technology and sleek designs has made traditional car makers (including luxury marquees) look antiquated and out of fashion compared to the Chinese brands
Premium Chinese automakers LiAuto and NIO will benefit over long-term, whilst the foreign dealers and local-foreign JV OEMs will suffer over the long term.

Samson (531 HK): MBO Via A Scheme

By David Blennerhassett

Furniture trader Samson Holding (531 HK) has announced a Scheme from Shan Huei Kuo, Samson’s Chairman.
The Cancellation price is $0.48, a 50% to last close. The premium is more pronounced if going back a month. The price is final.
This looks done. But Samson is an illiquid micro cap.

Isetan-Mitsukoshi Bets on Flagships and Real Estate

By Michael Causton

Isetan Shinjuku expects to post sales in excess of ¥400 billion this year, a record for a single retail store, although most of the growth is from inbound tourists.
But Isetan-Mitsukoshi is working to ensure longer term stability through more sophisticated databases and personalised marketing.
At the same time, it will make better use of real estate assets, investing ¥500 billion around Isetan Shinjuku alone.

MercadoLibre: A Credit Look into the Latin American Rising Star

By Leandro Gubler

We are initiating coverage on MercadoLibre with a preference for MELI 2.375% 2026 bonds. We are optimistic about MELI’s overall financial and business risks.
For EM investors, we prefer MELI 2.375% 2026 notes with a 10-30 bps compression potential. These bonds are trading wide compared to the Brazilian Sovereign and the benchmarks.
For US investors, MELI’s risk-reward symmetry is especially compelling, given that 2031 bonds are trading wide by around 75 bps compared to global e-commerce and fintech peers.

Women’s Empowerment in Japan Will Still Take a Considerable Amount of Time

By Aki Matsumoto

Since Japan’s gender gap index ranks 118th out of 146 countries, stagnating in the lower group, it will take a considerable amount of time to resolve the issue.
A shortcut to the improvement of women’s status is to greatly improve the gender ratio in the legislature in order to change the current framework for improving women’s status.
Behind the lagging 103rd place in the ratio of female managers is the lack of progress in higher education for women.

ADEA: License to Preview

By Hamed Khorsand

•It has been the summer of renewals at ADEA leading to a directionless stock since ADEA reported Q1 results. ADEA has announced several renewals, LBTYA, since the beginning of May
We are now more than two weeks into the third quarter lending credibility to why the shares have yet to react positively
We were already forecasting the probability of a new license occurring later in the year and are keeping our earnings estimates unchanged heading into ADEA reporting second quarter results.

GameStop: The Sinking Ship with a New Paint Job – Should You Board?

GameStop, once the epicenter of the retail investor revolution led by the enigmatic Roaring Kitty (Keith Gill), has seen a dramatic resurgence in attention.
Gill, who became famous for his substantial stake in GameStop during the 2021 meme stock frenzy, recently reappeared with jaw-dropping claims of substantial holdings in GameStop and Chewy.
However, the recent results and financial disclosures reveal a company that, despite superficial improvements, is fundamentally unstable.

D.R. Horton Inc.: A Tale Of Dealing With Interest Rate Fluctuations and Market Adaptability! – Major Drivers

D.R. Horton, America’s Builder, reported financial outcomes for the second quarter of fiscal 2024 indicating a positive trajectory in both revenue and profit generation.
Despite challenges related to elevated inflation and mortgage interest rates, the company has demonstrated solid performance with an earnings increase to $3.52 per diluted share, from $2.73 in the prior-year quarter.
Consolidated revenue increased by 14%, reaching $9.1 billion; and home sales revenue surged by 14% to approximately $8.5 billion on 22,548 home closings.

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Jul 18

Most Read: Honda Motor, Hygeia Healthcare Group, Intouch Holdings, Red 5 Ltd, Hyundai Motor India , Timee Inc, Hyundai Glovis, SK Innovation, Koito Manufacturing and more

By Smartkarma Daily Briefs | Daily Briefs, Most Read

In today’s briefing:

The Honda (7267) Offering – Much Easier Than It Looks
Hong Kong: Stocks Facing the Passive Boot in August
Cascading Takeunders for INTUCH, ADVANC, and THCOM as GULF TB Seeks To “Restructure”
S&P/ASX Index Rebalance Preview: Potential Changes from Now to September
Hyundai Motor India Pre-IPO – Peer Comparison – Doesn’t Stand Out
Timee IPO: Forecasts and Valuation
Trading Opportunities Arising from the Enactment of The “Doosan Bobcat Prevention Law”
GULF-INTUCH Amalgamation
SK Innovation & SK E&S Merger Official Disclosure: Unexpected Merger Ratio
Koito Mfg (7276) Bounces The Same as It Bounced in March On the Same News – An Echo? Meh Again.

The Honda (7267) Offering – Much Easier Than It Looks

At the beginning of this month, we got a scoop from Reuters about a US$3bn selldown of Honda Motor (7267 JP) by P&C insurers and others.
We knew this was coming at some point. The FSA had pushed the insurers to unwind cross-holdings, and it is otherwise of the zeitgeist.
It came out as heavily retail-oriented, and the supply/demand details are otherwise interesting. To boot, there is an EPS boost to come.

Hong Kong: Stocks Facing the Passive Boot in August

By Brian Freitas

There are a bunch of stocks listed in Hong Kong that have underperformed the HSCEI INDEX and their peers and could be deleted from global passive portfolios in August.
The deletion from passive portfolios will lead to a liquidity event at the end of August where passive trackers will need to sell multiple days of ADV.
There has been a big jump in cumulative excess volume in some stocks and the A/H premium on a lot of the names has jumped over the last few months.

Cascading Takeunders for INTUCH, ADVANC, and THCOM as GULF TB Seeks To “Restructure”

Last night, the Board of Intouch Holdings (INTUCH TB) announced an amalgamation with Gulf Energy Development (GULF TB) and Tender Offers for Advanced Info Service (ADVANC TB) (at THB 216.30)
And Thaicom Pcl (THCOM TB) (THB 11.00) shares. This is really big news. It appears to try to cap years of re-arrangement of the capital structure. It’s complicated.
But it is not fair. INTUCH shareholders lose 22% of earnings value per investment value in 2024. 20% in 2025. But, there may be a way to block it…

S&P/ASX Index Rebalance Preview: Potential Changes from Now to September

By Brian Freitas

With nearly 80% of the review period complete, there could be 28 adds/deletes across the S&P/ASX family of indices in September.
There is a lot of stocks for passive trackers to trade on the index changes with the largest impacts on the potential changes to the S&P/ASX 200 (AS51 INDEX).
The potential adds have outperformed the potential deletions by a LOT over the last few months and continued positioning could lead to further gains.

Hyundai Motor India Pre-IPO – Peer Comparison – Doesn’t Stand Out

By Shifara Samsudeen, ACMA, CGMA

Hyundai Motor (005380 KS) is looking to raise around US$3bn via listing its India unit, Hyundai Motor India. HMI is a wholly owned subsidiary of the Hyundai Motor Group.
HMI primarily manufactures and sells four-wheeler passenger vehicles and parts. Currently its vehicle portfolio includes 13 passenger vehicle models across sedans, hatchbacks, SUVs and battery EVs.
In our previous note, we looked at the company’s past performance. In this note, we undertake a peer comparison.

Timee IPO: Forecasts and Valuation

Timee has set an indicative IPO price range of ¥1,350-1,450 per share and will raise US$280m (at the midpoint) where existing shareholders will sell down part of their ownership.
We expect Timee’s earnings to grow as the company is still in its early stages and with further growth in scale, we expect Timee’s margins to continue to expand further.
Our analysis shows that Timee Inc (215A JP) IPO is valued attractively as the company has better-than-peer margin profile which suggests that there is further upside to implied valuation multiples.

Trading Opportunities Arising from the Enactment of The “Doosan Bobcat Prevention Law”

Korea’s majority party plans to amend the Capital Markets Act to base listed companies’ merger ratios on intrinsic rather than market value, dubbed the “Doosan Bobcat Prevention Law.”
Other conglomerates, like Hanwha and Hyundai Motor Group, may execute mergers just before this amendment.
We should expect shareholder-favorable merger ratios. So, we should position in such companies before announcements, ideally just before the new amendment’s enforcement.

GULF-INTUCH Amalgamation

By Waraporn Wiboonkanarak

The amalgamation will entail the ratios for allocations of shares in the NewCo to the shareholders of GULF and INTUCH as detailed below.
The amalgamation process and the establishment of the NewCo are expected to be completed in 2Q25.
The restructuring is aimed at reducing duplication in the shareholding structure and facilitating growth opportunities in the energy, infrastructure, and digital businesses.

SK Innovation & SK E&S Merger Official Disclosure: Unexpected Merger Ratio

The merger ratio, not as unfavorable to SK Innovation as feared, shows SK Group acting cautiously amid political and regulatory scrutiny.
SK Inc.’s stake will drop to mid-60s; the 1.2x merger ratio for SK E&S could positively affect SK Innovation’s stock price short-term.
Persuading KKR is crucial. SK E&S won’t convert ₩3T in RCPS or grant appraisal rights, potentially leading KKR to consider litigation, a significant risk to the merger.

Koito Mfg (7276) Bounces The Same as It Bounced in March On the Same News – An Echo? Meh Again.

An interview in the Nikkei of Koito Manufacturing (7276 JP) CFO Takahito OTAKE offered the comment that Koito Mfg expected a shareholder return of 130% a year through March 2029.
The stock popped 19% after lunch on that comment, then fell back to end up 5.0%.
This is the same pop as we saw end-March. Then it was +24.6% and it stayed up the next day. Same reason for the pop. This was an echo.

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Jul 18

Daily Brief ESG: Women’s Empowerment in Japan Will Still Take a Considerable Amount of Time and more

By Smartkarma Daily Briefs | Daily Briefs, ESG

In today’s briefing:

Women’s Empowerment in Japan Will Still Take a Considerable Amount of Time

Women’s Empowerment in Japan Will Still Take a Considerable Amount of Time

By Aki Matsumoto

Since Japan’s gender gap index ranks 118th out of 146 countries, stagnating in the lower group, it will take a considerable amount of time to resolve the issue.
A shortcut to the improvement of women’s status is to greatly improve the gender ratio in the legislature in order to change the current framework for improving women’s status.
Behind the lagging 103rd place in the ratio of female managers is the lack of progress in higher education for women.

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Jul 18

Daily Brief Thematic (Sector/Industry): Ohayo Japan | Chip Stocks Chopped and more

By Smartkarma Daily Briefs | Daily Briefs, Thematic (Sector/Industry)

In today’s briefing:

Ohayo Japan | Chip Stocks Chopped
CHINA: Fasten Your Seat Belts! BAIDU Accelerates in the Fast Growing Robotaxi Industry.
Episode 75: The AI Big $$$ Question
Online Game Monitor: July 2-15, 2024

Ohayo Japan | Chip Stocks Chopped

By Mark Chadwick

The Nasdaq Composite plunged over 2.7%, its worst decline since December 2022, as tech stocks faced pressure from potential US export curbs on China and Trump’s comments on Taiwan
A Boston Consulting Group study found that only 16% of Japanese employees and 31% of managers use generative AI at work, the lowest among major countries.
Hong Kong-based activist acquired a 5.09% stake in FANCL and aims to provide management advice amidst Kirin takeover

CHINA: Fasten Your Seat Belts! BAIDU Accelerates in the Fast Growing Robotaxi Industry.

By David Mudd

Baidu announced that the company has seen a rapid uptake in its Robotaxi business on the mainland.
Baidu is at the forefront of the industry globally with its Fully Self Driving taxis available in more than 10 major cities in China.
Baidu’s autonomous taxi unit, Apollo Go, has over 100 million kilometers of high-level autonomous safety driving mileage and holds over 5,000 autonomous driving patents.

Episode 75: The AI Big $$$ Question

By The Circuit

Discussion about the potential for Chinese companies to use shell corporations to rent GPUs from American companies
Mention of a blog post by Sequoia and a report from Goldman Sachs on the challenges of monetizing AI infrastructure
Skepticism about the return on investment in AI due to lack of clear revenue sources and consumer use cases, particularly with companies like Microsoft and Amazon investing billions in AI projects.

This content is sourced through publicly available sources and has been machine generated. Information displayed is for general informational purposes only.

Online Game Monitor: July 2-15, 2024

By Stan Zhao

The popularity of <DnF Mobile> and <Arena Breakout> continues to rise. As a result, we are increasing the gross billings estimation for these games by 10% and 15% respectively.
<Need For Speed Mobile> had an impressive first day, topping the iOS download charts and ranking 15th on the grossing chart. We are raising the expected gross billings by 25%.
Due to the game’s lifecycle, <Eggy Party> has experienced a slight decline in revenue. Therefore, we are adjusting the forecast down by 10%. Conversely, <Identity V> continues to perform strongly.

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Jul 18

Daily Brief ECM: Hyundai Motor India Pre-IPO – Peer Comparison – Doesn’t Stand Out and more

By Smartkarma Daily Briefs | Daily Briefs, ECM

In today’s briefing:

Hyundai Motor India Pre-IPO – Peer Comparison – Doesn’t Stand Out
Sanil Electric IPO Book Building Results Analysis
Pre-IPO Distinct Healthcare Holdings- Hard to Deliver the Expected Returns Due to Growth Bottleneck

Hyundai Motor India Pre-IPO – Peer Comparison – Doesn’t Stand Out

Hyundai Motor (005380 KS) is looking to raise around US$3bn via listing its India unit, Hyundai Motor India. HMI is a wholly owned subsidiary of the Hyundai Motor Group.
HMI primarily manufactures and sells four-wheeler passenger vehicles and parts. Currently its vehicle portfolio includes 13 passenger vehicle models across sedans, hatchbacks, SUVs and battery EVs.
In our previous note, we looked at the company’s past performance. In this note, we undertake a peer comparison.

Sanil Electric IPO Book Building Results Analysis

By Douglas Kim

Sanil Electric reported excellent IPO book building results. The IPO price has been determined at 35,000 won, which is 16.7% higher than the high end of the IPO price range.
The demand ratio from 2,205 institutional investors was 414 to 1. Sanil Electric (062040 KS) IPO will start trading on 29 July 2024.
Our base case valuation of Sanil Electric is market cap of 1.8 trillion won or target price of 58,593 won (67% higher than the IPO price of 35,000 won).

Pre-IPO Distinct Healthcare Holdings- Hard to Deliver the Expected Returns Due to Growth Bottleneck

By Xinyao (Criss) Wang

Due to industry characteristics, it would be difficult for Distinct Healthcare to scale up. The Company is more of “a supplementary role” in the entire medical service system in China.
Profit margin is not satisfactory and cost side is also difficult to reduce. Even if Distinct Healthcare successfully turns losses into profits, it’s hard to generate good returns for investors.
Post-Money valuation was US$510 million after Series E financing. For a company that would encounter bottlenecks in both revenue and profit growth, it would be difficult to achieve high valuation.

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Jul 18

Daily Brief Event-Driven: Hong Kong: Stocks Facing the Passive Boot in August and more

By Smartkarma Daily Briefs | Daily Briefs, Event-Driven

In today’s briefing:

Hong Kong: Stocks Facing the Passive Boot in August
Cascading Takeunders for INTUCH, ADVANC, and THCOM as GULF TB Seeks To “Restructure”
Trading Opportunities Arising from the Enactment of The “Doosan Bobcat Prevention Law”
GULF-INTUCH Amalgamation
SK Innovation & SK E&S Merger Official Disclosure: Unexpected Merger Ratio
Koito Mfg (7276) Bounces The Same as It Bounced in March On the Same News – An Echo? Meh Again.
Atla Global Management’s John Haskell on International Real Estate + ESR Group Thesis $1821.HK
Gulf (GULF TB)/Intouch (INTUCH TB) Merger and ADVANC/THCOM VTOs
Kokusai Electric Placement Updates – Misbehaving
Samson (531 HK): MBO Via A Scheme

Hong Kong: Stocks Facing the Passive Boot in August

By Brian Freitas

There are a bunch of stocks listed in Hong Kong that have underperformed the HSCEI INDEX and their peers and could be deleted from global passive portfolios in August.
The deletion from passive portfolios will lead to a liquidity event at the end of August where passive trackers will need to sell multiple days of ADV.
There has been a big jump in cumulative excess volume in some stocks and the A/H premium on a lot of the names has jumped over the last few months.

Cascading Takeunders for INTUCH, ADVANC, and THCOM as GULF TB Seeks To “Restructure”

Last night, the Board of Intouch Holdings (INTUCH TB) announced an amalgamation with Gulf Energy Development (GULF TB) and Tender Offers for Advanced Info Service (ADVANC TB) (at THB 216.30)
And Thaicom Pcl (THCOM TB) (THB 11.00) shares. This is really big news. It appears to try to cap years of re-arrangement of the capital structure. It’s complicated.
But it is not fair. INTUCH shareholders lose 22% of earnings value per investment value in 2024. 20% in 2025. But, there may be a way to block it…

Trading Opportunities Arising from the Enactment of The “Doosan Bobcat Prevention Law”

Korea’s majority party plans to amend the Capital Markets Act to base listed companies’ merger ratios on intrinsic rather than market value, dubbed the “Doosan Bobcat Prevention Law.”
Other conglomerates, like Hanwha and Hyundai Motor Group, may execute mergers just before this amendment.
We should expect shareholder-favorable merger ratios. So, we should position in such companies before announcements, ideally just before the new amendment’s enforcement.

GULF-INTUCH Amalgamation

By Waraporn Wiboonkanarak

The amalgamation will entail the ratios for allocations of shares in the NewCo to the shareholders of GULF and INTUCH as detailed below.
The amalgamation process and the establishment of the NewCo are expected to be completed in 2Q25.
The restructuring is aimed at reducing duplication in the shareholding structure and facilitating growth opportunities in the energy, infrastructure, and digital businesses.

SK Innovation & SK E&S Merger Official Disclosure: Unexpected Merger Ratio

The merger ratio, not as unfavorable to SK Innovation as feared, shows SK Group acting cautiously amid political and regulatory scrutiny.
SK Inc.’s stake will drop to mid-60s; the 1.2x merger ratio for SK E&S could positively affect SK Innovation’s stock price short-term.
Persuading KKR is crucial. SK E&S won’t convert ₩3T in RCPS or grant appraisal rights, potentially leading KKR to consider litigation, a significant risk to the merger.

Koito Mfg (7276) Bounces The Same as It Bounced in March On the Same News – An Echo? Meh Again.

An interview in the Nikkei of Koito Manufacturing (7276 JP) CFO Takahito OTAKE offered the comment that Koito Mfg expected a shareholder return of 130% a year through March 2029.
The stock popped 19% after lunch on that comment, then fell back to end up 5.0%.
This is the same pop as we saw end-March. Then it was +24.6% and it stayed up the next day. Same reason for the pop. This was an echo.

Atla Global Management’s John Haskell on International Real Estate + ESR Group Thesis $1821.HK

By Yet Another Value Podcast

Andrew Walker hosts the podcast and introduces John Haskell, CIO at Ulta Global Management
Ulta Global focuses on international public real estate investing, particularly in emerging markets
Despite negative perception and underperformance in emerging markets, there are opportunities for value investing in international real estate

This content is sourced through publicly available sources and has been machine generated. Information displayed is for general informational purposes only.

Gulf (GULF TB)/Intouch (INTUCH TB) Merger and ADVANC/THCOM VTOs

By Arun George

Intouch Holdings (INTUCH TB) and Gulf Energy Development (GULF TB) announced restructuring transactions to merge into NewCo and VTOs for Advanced Info Service (ADVANC TB) and Thaicom Pcl (THCOM TB).
Shareholders will receive 1.69335 NewCo shares per Intouch share (excluding shares held by Gulf) and 1.02974 NewCo shares per Gulf share.
The key conditions are shareholder approvals, completion of VTOs and purchase of dissenting shares. The transaction is long-dated and expected to be completed in 2Q25.

Kokusai Electric Placement Updates – Misbehaving

KKR and KSP Kokusai Investments are looking to raise approximately US$1.7bn through an extended secondary follow-on offering, via selling approximately 22.3% of Kokusai Electric (6525 JP).
We have looked at the lockup expiry and deal dynamics in our earlier notes.
In this note, we talk about share price performance since then.

Samson (531 HK): MBO Via A Scheme

By David Blennerhassett

Furniture trader Samson Holding (531 HK) has announced a Scheme from Shan Huei Kuo, Samson’s Chairman.
The Cancellation price is $0.48, a 50% to last close. The premium is more pronounced if going back a month. The price is final.
This looks done. But Samson is an illiquid micro cap.

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Jul 18

Daily Brief Equity Bottom-Up: Taiwan Dual-Listings Monitor: TSMC Rebounds After Sharp Breakdown; ASE Major Premium Breakdown and more

By Smartkarma Daily Briefs | Daily Briefs, Equity Bottom-Up

In today’s briefing:

Taiwan Dual-Listings Monitor: TSMC Rebounds After Sharp Breakdown; ASE Major Premium Breakdown
China Autos Landscape Has Permanently Changed, Foreign Brands Have Lost Their Clout
Isetan-Mitsukoshi Bets on Flagships and Real Estate
[Q2 Earnings Preview] Google: Ad Revenue & Cloud Growth Plus AI Advancements in Focus
Tech Supply Chain Tracker (18-Jul-2024): GlobalWafers gets $400M CHIPS Act funds.
[Earnings Preview] Halliburton: Leans on International Operations Amid North American Weakness
ASML Holding N.V.: Will The Prebuilding Strategy to Manage Supply Chain and Demand Pay Off? – Major Drivers
Cadence Design Systems: Their Story Of Strategic Partnerships & Expansion through Mergers and Acquisitions! – Major Drivers
Alcoa Corporation: Strategic Acquisition Of Alumina & 5 Pivotal Growth Drivers
EB: TikTok a New Momentum

Taiwan Dual-Listings Monitor: TSMC Rebounds After Sharp Breakdown; ASE Major Premium Breakdown

By Vincent Fernando, CFA

TSMC: +17.9% Premium; Rebounds After Brief Breakdown; Wait for Better Levels
UMC: +1.8% Premium; Can Consider Shorting the Premium at Current Level
ASE: +5.5% Premium Represents a Major Breakdown; Can Consider Going Long

China Autos Landscape Has Permanently Changed, Foreign Brands Have Lost Their Clout

By Mohshin Aziz

Chinese auto brands commands 61% market share in May 2024, up from 7% in 2021. Its premium car market share has also risen to 25% from nothing
The transition towards EV, swift adoption of technology and sleek designs has made traditional car makers (including luxury marquees) look antiquated and out of fashion compared to the Chinese brands
Premium Chinese automakers LiAuto and NIO will benefit over long-term, whilst the foreign dealers and local-foreign JV OEMs will suffer over the long term.

Isetan-Mitsukoshi Bets on Flagships and Real Estate

By Michael Causton

Isetan Shinjuku expects to post sales in excess of ¥400 billion this year, a record for a single retail store, although most of the growth is from inbound tourists.
But Isetan-Mitsukoshi is working to ensure longer term stability through more sophisticated databases and personalised marketing.
At the same time, it will make better use of real estate assets, investing ¥500 billion around Isetan Shinjuku alone.

[Q2 Earnings Preview] Google: Ad Revenue & Cloud Growth Plus AI Advancements in Focus

By Uttkarsh Kohli

Google’s ad revenue growth consensus is 11.7% YoY in Q2, with some analysts projecting even higher, reflecting robust global digital ad spend trends.
Google Cloud’s revenue reached $9.5 billion in Q1 2024, marking a 35% YoY increase and a 4x growth over the past four years. Q2 expected to see continued growth.
AI investments and innovations showcased at Google I/O aim to boost user experience and market leadership, with potential double-digit growth.

Tech Supply Chain Tracker (18-Jul-2024): GlobalWafers gets $400M CHIPS Act funds.

By Tech Supply Chain Tracker

GlobalWafers secures $400M from CHIPS Act to boost semiconductor production amid global chip shortage.
Samsung intensifies focus on wearable device sales with new strategies to adapt to declining demand in market.
Acer targets Indian smartphone market with white-label approach and Qualcomm teams up with Microsoft to innovate PCs using AI technology.

[Earnings Preview] Halliburton: Leans on International Operations Amid North American Weakness

By Suhas Reddy

Halliburton forecasts low double-digit revenue growth from its international business and flat revenue growth from North America in 2024.
Management expects sequential margin growth of 25-75 bps in its Drilling & Evaluation and Completion & Production segments in Q2 2024.
Halliburton expects its FCF to rise 10% YoY in 2024. The company returned nearly 60% of its FCF to shareholders in 2023.

ASML Holding N.V.: Will The Prebuilding Strategy to Manage Supply Chain and Demand Pay Off? – Major Drivers

ASML Holding NV has released its financial results for the first quarter of 2024, highlighting a combination of achievements and forecasts that paint a detailed picture of the company’s current and future trajectory.
In terms of financial performance, ASML reported total net sales of EUR 5.3 billion, which aligns with the company’s previous guidance.
The revenue from 11 EUV (extreme ultraviolet) systems constituted EUR 1.8 billion of the total net sales.

Cadence Design Systems: Their Story Of Strategic Partnerships & Expansion through Mergers and Acquisitions! – Major Drivers

Cadence Design Systems, Inc. recently reported a strong start to the year 2024, announcing first-quarter results that surpassed expectations and raised the financial outlook for the remainder of the year.
Revenue for the quarter stood at $1.09 billion with non-GAAP earnings per share (EPS) reaching $1.17, underscoring a robust performance against the backdrop of dynamic market conditions.
The company cited a record backlog of $6 billion as a primary driver for its optimistic revenue outlook, attributing this in part to burgeoning trends across AI, automotive, and 5G technologies.

Alcoa Corporation: Strategic Acquisition Of Alumina & 5 Pivotal Growth Drivers