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Smartkarma Daily Briefs

Jul 07
0

Daily Brief Industrials: JD Logistics and more

By | Daily Briefs, Industrials

In today’s briefing:

  • Quiddity Leaderboard HSCEI Sep 24: Final Ranks and Updated Flow Expectations

Quiddity Leaderboard HSCEI Sep 24: Final Ranks and Updated Flow Expectations

By Janaghan Jeyakumar, CFA

  • The HSCEI serves as a benchmark to reflect the overall performance of the top 50 “Mainland China” securities listed in Hong Kong.
  • In mid-June 2024, we had two expected ADDs and DELs for the September 2024 index rebal event and they remain unchanged even after the end of the reference period.
  • However, our capping flow expectations continue to change as the pro-forma post-rebalance weights change with share prices. In this insight, we have provided our latest flow estimates.

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  • ✓ Events & Webinars
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Jul 07
0

Daily Brief TMT/Internet: ASM Pacific Technology, Shift Up and more

By | Daily Briefs, TMT/Internet

In today’s briefing:

  • Quiddity Leaderboard HSTECH Sep 24: Reference Period Over; One Change Likely; US$733mn One-Way
  • Shift Up IPO: Final Allocation Results, Lockup Release Schedule, & Index Float Rates

Quiddity Leaderboard HSTECH Sep 24: Reference Period Over; One Change Likely; US$733mn One-Way

By Janaghan Jeyakumar, CFA

  • The HSTECH Index tracks the performance of the top 30 technology companies listed in Hong Kong that have high business exposure to certain technology themes.
  • The reference period for the September 2024 index rebal event is now complete. In this insight, we take a look at our final expectations for index changes.
  • Our current estimates suggest one-way flows due to index changes and capping could be around US$733mn but that could change by early September 2024.

Shift Up IPO: Final Allocation Results, Lockup Release Schedule, & Index Float Rates

By Sanghyun Park

  • Notably, local hedge funds receive significant allocation, nearly 10%, unusual for KOSPI IPOs this size, differing from HD Hyundai Marine Solution.
  • KOSPI 200’s initial float rate is 14%, rising to 58% in six months. MSCI starts at 8%, reaching 12% in six months and 25% in a year.
  • Differences from HD Hyundai Marine Solution include high short-term strategies among institutions. Unlike before, local pension funds receive substantial allocation, potentially affecting stock price post-listing.

💡 Before it’s here, it’s on Smartkarma

Sign Up for Free

The Smartkarma Preview Pass is your entry to the Independent Investment Research Network

  • ✓ Unlimited Research Summaries
  • ✓ Personalised Alerts
  • ✓ Custom Watchlists
  • ✓ Company Data and News
  • ✓ Events & Webinars
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Jul 07
0

Daily Brief Industrials: JD Logistics and more

By | Daily Briefs, Industrials

In today’s briefing:

  • Quiddity Leaderboard HSCEI Sep 24: Final Ranks and Updated Flow Expectations

Quiddity Leaderboard HSCEI Sep 24: Final Ranks and Updated Flow Expectations

By Janaghan Jeyakumar, CFA

  • The HSCEI serves as a benchmark to reflect the overall performance of the top 50 “Mainland China” securities listed in Hong Kong.
  • In mid-June 2024, we had two expected ADDs and DELs for the September 2024 index rebal event and they remain unchanged even after the end of the reference period.
  • However, our capping flow expectations continue to change as the pro-forma post-rebalance weights change with share prices. In this insight, we have provided our latest flow estimates.

💡 Before it’s here, it’s on Smartkarma

Sign Up for Free

The Smartkarma Preview Pass is your entry to the Independent Investment Research Network

  • ✓ Unlimited Research Summaries
  • ✓ Personalised Alerts
  • ✓ Custom Watchlists
  • ✓ Company Data and News
  • ✓ Events & Webinars
Sign Up for Free


Jul 07
0

Daily Brief Health Care: Clinuvel Pharmaceuticals, Shanghai Junshi Biosciences and more

By | Daily Briefs, Healthcare

In today’s briefing:

  • Clinuvel Pharmaceuticals (CUV AU): Positive Clinical Trial Result; Base Business Going Strong
  • China Healthcare Weekly (July.7) – MNCs’ Next Move In Licensing Deals, Topchoice, Junshi’s Trouble

Clinuvel Pharmaceuticals (CUV AU): Positive Clinical Trial Result; Base Business Going Strong

By Tina Banerjee

  • Clinuvel Pharmaceuticals (CUV AU) released positive update from its CUV151 study, which was evaluating the DNA-repair capacity of afamelanotide on skin of healthy volunteers exposed to UV radiation.
  • Riding on high trajectory of lead therapy, Scenesse, thanks to the prescriber network growth, treatment demand, and number of prescriptions, Clinuvel has been consistently reporting profitable revenue growth.
  • Greater patient outreach to be facilitated by more specialty centers able to administer Scenesse in the U.S., expanding geographic footprint, and future label expansions are future growth engines.

China Healthcare Weekly (July.7) – MNCs’ Next Move In Licensing Deals, Topchoice, Junshi’s Trouble

By Xinyao (Criss) Wang

  • For all licensing cooperation with MNCs, we recommend that investors wait to see what MNCs’ next move is before deciding whether the cooperation is really promising.
  • Topchoice showed good business growth in 24Q2. Our biggest concern for Topchoice is that the unit price per customer may further decrease in the future, thereby affecting revenue/profit growth.
  • Junshi’s sales growth picked up in 24Q1, but concerns on Junshi persist. We don’t think Junshi is undervalued and its valuation should be lower than that of peers.

💡 Before it’s here, it’s on Smartkarma

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The Smartkarma Preview Pass is your entry to the Independent Investment Research Network

  • ✓ Unlimited Research Summaries
  • ✓ Personalised Alerts
  • ✓ Custom Watchlists
  • ✓ Company Data and News
  • ✓ Events & Webinars
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Jul 07
0

Daily Brief Financials: ESR Group and more

By | Daily Briefs, Financials

In today’s briefing:

  • Weekly Deals Digest (07 Jul) – ESR, L’Occitane, Hollysys, Aisin, Honda, Sanil, Shift Up, Timee

Weekly Deals Digest (07 Jul) – ESR, L’Occitane, Hollysys, Aisin, Honda, Sanil, Shift Up, Timee

By Arun George

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The Smartkarma Preview Pass is your entry to the Independent Investment Research Network

  • ✓ Unlimited Research Summaries
  • ✓ Personalised Alerts
  • ✓ Custom Watchlists
  • ✓ Company Data and News
  • ✓ Events & Webinars
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Jul 07
0

Daily Brief Consumer: L’Occitane, Chow Tai Fook Jewellery, Berli Jucker, Honda Motor and more

By | Consumer, Daily Briefs

In today’s briefing:

  • (Mostly) Asia-Pac M&A: Sermsuk, L’Occitane, Shinko Electric, MMA Offshore, Hollysys
  • Asian Dividend Gems: Chow Tai Fook Jewellery
  • Berli Jucker (BJC TB) – Big C’s Tourism Factor
  • Last Week in Event SPACE: Barito Renewables, Honda, Raffles Medical, Daidoh, Hanwha Corp

(Mostly) Asia-Pac M&A: Sermsuk, L’Occitane, Shinko Electric, MMA Offshore, Hollysys

By David Blennerhassett

Asian Dividend Gems: Chow Tai Fook Jewellery

By Douglas Kim

  • Chow Tai Fook Jewellery’s shares are down 28.2% YTD, sharply underperforming the Hang Seng Index which is up 6% in the same period. We believe this divergence is excessive. 
  • Chow Tai Fook’s dividend yield averaged 4.8% from FY20 to FY24. Its annual dividend payout averaged 107% in the same period.
  • Chai Tai Fook is currently trading at attractive valuations. It is trading at P/E of 10.1x, EV/EBITDA of 7.5x, and P/B of 2.9x based on FY25 consensus earnings estimates. 

Berli Jucker (BJC TB) – Big C’s Tourism Factor

By Angus Mackintosh

  • Berli Jucker’s modern trade supply chain under Big C continues to benefit from the tourism recovery, with 25 dedicated tourism stores and another 35 secondary tourism stores. 
  • Tourism stores carry a slightly different mix of SKUs versus regular stores, which generate higher margins. Big C continues to expand its store network and margins are moving upwards.
  • Berli Jucker provides direct exposure to Big C but its other divisions including packaging and consumer supply chain provide exposure to both Thailand and Vietnam. Valuations are attractive versus history.

Last Week in Event SPACE: Barito Renewables, Honda, Raffles Medical, Daidoh, Hanwha Corp

By David Blennerhassett

  • It’s just a question of when, not if, the bubble bursts for Barito Renewables Energy (BREN IJ), which is up 1,200% since it October 2023 IPO. 
  • A Reuters article suggests a ¥500bn secondary offering for Honda Motor (7267 JP). Honda has since said there is smoke. And we can assume there is fire.
  • Loo Choon Yong, Raffles Medical Group (RFMD SP)‘s founder and major shareholder, continues to chip away at minorities, and now holds 54.944%,

💡 Before it’s here, it’s on Smartkarma

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The Smartkarma Preview Pass is your entry to the Independent Investment Research Network

  • ✓ Unlimited Research Summaries
  • ✓ Personalised Alerts
  • ✓ Custom Watchlists
  • ✓ Company Data and News
  • ✓ Events & Webinars
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Jul 07
0

Daily Brief Australia: Clinuvel Pharmaceuticals and more

By | Australia, Daily Briefs

In today’s briefing:

  • Clinuvel Pharmaceuticals (CUV AU): Positive Clinical Trial Result; Base Business Going Strong

Clinuvel Pharmaceuticals (CUV AU): Positive Clinical Trial Result; Base Business Going Strong

By Tina Banerjee

  • Clinuvel Pharmaceuticals (CUV AU) released positive update from its CUV151 study, which was evaluating the DNA-repair capacity of afamelanotide on skin of healthy volunteers exposed to UV radiation.
  • Riding on high trajectory of lead therapy, Scenesse, thanks to the prescriber network growth, treatment demand, and number of prescriptions, Clinuvel has been consistently reporting profitable revenue growth.
  • Greater patient outreach to be facilitated by more specialty centers able to administer Scenesse in the U.S., expanding geographic footprint, and future label expansions are future growth engines.

💡 Before it’s here, it’s on Smartkarma

Sign Up for Free

The Smartkarma Preview Pass is your entry to the Independent Investment Research Network

  • ✓ Unlimited Research Summaries
  • ✓ Personalised Alerts
  • ✓ Custom Watchlists
  • ✓ Company Data and News
  • ✓ Events & Webinars
Sign Up for Free


Jul 07
0

Daily Brief Thailand: Berli Jucker and more

By | Daily Briefs, Thailand

In today’s briefing:

  • Berli Jucker (BJC TB) – Big C’s Tourism Factor

Berli Jucker (BJC TB) – Big C’s Tourism Factor

By Angus Mackintosh

  • Berli Jucker’s modern trade supply chain under Big C continues to benefit from the tourism recovery, with 25 dedicated tourism stores and another 35 secondary tourism stores. 
  • Tourism stores carry a slightly different mix of SKUs versus regular stores, which generate higher margins. Big C continues to expand its store network and margins are moving upwards.
  • Berli Jucker provides direct exposure to Big C but its other divisions including packaging and consumer supply chain provide exposure to both Thailand and Vietnam. Valuations are attractive versus history.

💡 Before it’s here, it’s on Smartkarma

Sign Up for Free

The Smartkarma Preview Pass is your entry to the Independent Investment Research Network

  • ✓ Unlimited Research Summaries
  • ✓ Personalised Alerts
  • ✓ Custom Watchlists
  • ✓ Company Data and News
  • ✓ Events & Webinars
Sign Up for Free


Jul 07
0

Daily Brief South Korea: Shift Up and more

By | Daily Briefs, South Korea

In today’s briefing:

  • Shift Up IPO: Final Allocation Results, Lockup Release Schedule, & Index Float Rates

Shift Up IPO: Final Allocation Results, Lockup Release Schedule, & Index Float Rates

By Sanghyun Park

  • Notably, local hedge funds receive significant allocation, nearly 10%, unusual for KOSPI IPOs this size, differing from HD Hyundai Marine Solution.
  • KOSPI 200’s initial float rate is 14%, rising to 58% in six months. MSCI starts at 8%, reaching 12% in six months and 25% in a year.
  • Differences from HD Hyundai Marine Solution include high short-term strategies among institutions. Unlike before, local pension funds receive substantial allocation, potentially affecting stock price post-listing.

💡 Before it’s here, it’s on Smartkarma

Sign Up for Free

The Smartkarma Preview Pass is your entry to the Independent Investment Research Network

  • ✓ Unlimited Research Summaries
  • ✓ Personalised Alerts
  • ✓ Custom Watchlists
  • ✓ Company Data and News
  • ✓ Events & Webinars
Sign Up for Free


Jul 07
0

Daily Brief China: L’Occitane, ESR Group , ASM Pacific Technology, Chow Tai Fook Jewellery, Shanghai Junshi Biosciences , JD Logistics and more

By | China, Daily Briefs

In today’s briefing:

  • (Mostly) Asia-Pac M&A: Sermsuk, L’Occitane, Shinko Electric, MMA Offshore, Hollysys
  • Weekly Deals Digest (07 Jul) – ESR, L’Occitane, Hollysys, Aisin, Honda, Sanil, Shift Up, Timee
  • Quiddity Leaderboard HSTECH Sep 24: Reference Period Over; One Change Likely; US$733mn One-Way
  • Asian Dividend Gems: Chow Tai Fook Jewellery
  • China Healthcare Weekly (July.7) – MNCs’ Next Move In Licensing Deals, Topchoice, Junshi’s Trouble
  • Quiddity Leaderboard HSCEI Sep 24: Final Ranks and Updated Flow Expectations

(Mostly) Asia-Pac M&A: Sermsuk, L’Occitane, Shinko Electric, MMA Offshore, Hollysys

By David Blennerhassett

Weekly Deals Digest (07 Jul) – ESR, L’Occitane, Hollysys, Aisin, Honda, Sanil, Shift Up, Timee

By Arun George

Quiddity Leaderboard HSTECH Sep 24: Reference Period Over; One Change Likely; US$733mn One-Way

By Janaghan Jeyakumar, CFA

  • The HSTECH Index tracks the performance of the top 30 technology companies listed in Hong Kong that have high business exposure to certain technology themes.
  • The reference period for the September 2024 index rebal event is now complete. In this insight, we take a look at our final expectations for index changes.
  • Our current estimates suggest one-way flows due to index changes and capping could be around US$733mn but that could change by early September 2024.

Asian Dividend Gems: Chow Tai Fook Jewellery

By Douglas Kim

  • Chow Tai Fook Jewellery’s shares are down 28.2% YTD, sharply underperforming the Hang Seng Index which is up 6% in the same period. We believe this divergence is excessive. 
  • Chow Tai Fook’s dividend yield averaged 4.8% from FY20 to FY24. Its annual dividend payout averaged 107% in the same period.
  • Chai Tai Fook is currently trading at attractive valuations. It is trading at P/E of 10.1x, EV/EBITDA of 7.5x, and P/B of 2.9x based on FY25 consensus earnings estimates. 

China Healthcare Weekly (July.7) – MNCs’ Next Move In Licensing Deals, Topchoice, Junshi’s Trouble

By Xinyao (Criss) Wang

  • For all licensing cooperation with MNCs, we recommend that investors wait to see what MNCs’ next move is before deciding whether the cooperation is really promising.
  • Topchoice showed good business growth in 24Q2. Our biggest concern for Topchoice is that the unit price per customer may further decrease in the future, thereby affecting revenue/profit growth.
  • Junshi’s sales growth picked up in 24Q1, but concerns on Junshi persist. We don’t think Junshi is undervalued and its valuation should be lower than that of peers.

Quiddity Leaderboard HSCEI Sep 24: Final Ranks and Updated Flow Expectations

By Janaghan Jeyakumar, CFA

  • The HSCEI serves as a benchmark to reflect the overall performance of the top 50 “Mainland China” securities listed in Hong Kong.
  • In mid-June 2024, we had two expected ADDs and DELs for the September 2024 index rebal event and they remain unchanged even after the end of the reference period.
  • However, our capping flow expectations continue to change as the pro-forma post-rebalance weights change with share prices. In this insight, we have provided our latest flow estimates.

💡 Before it’s here, it’s on Smartkarma

Sign Up for Free

The Smartkarma Preview Pass is your entry to the Independent Investment Research Network

  • ✓ Unlimited Research Summaries
  • ✓ Personalised Alerts
  • ✓ Custom Watchlists
  • ✓ Company Data and News
  • ✓ Events & Webinars
Sign Up for Free