Smartkarma Daily Briefs

ZEEKR (ZK US), a premium Chinese BEV manufacturer and a subsidiary of Geely Auto (175 HK), has launched an IPO to raise up to US$368 million.
We previously discussed the IPO in ZEEKR IPO: The Bull Case, ZEEKR IPO: The Bear Case and ZEEKR IPO: Latest Updates as the IPO Process Restarts.
The IPO price range values ZEEKR at a material discount to peers’ multiples. We would be inclined to participate in the IPO.

CSI300 Index Rebalance Preview: Bounce in the Potential Deletes Could Be Short Lived

By Research as a Service (RaaS)

The review period for the June rebalance is complete and we expect 11 changes to the Shanghai Shenzhen CSI 300 Inde (SHSZ300 INDEX).
We estimate one-way turnover of 1.4% at the rebalance leading to a one-way trade of CNY 8.82bn (US$1.22bn). There are a lot of stocks with multiple days ADV to trade.
The potential deletes have bounced off their lows as the market has recovered. But the potential passive selling could see them underperform over the next month.

Mainland Connect NORTHBOUND Flows (To 30-Apr/3-May 2024): Big Volumes, Low Net; As Will Play Catchup

By Travis Lundy

The Quiddity Mainland Connect NORTHBOUND Monitor. Like the A/H Premium Monitor and HK Connect SOUTHBOUND Monitor. Lots of Flows/Position Tables and Charts with which to play.
Last week saw NORTHBOUND net BUY RMB 2.3bn of A-shares on high gross low net volume in the two days. NORTHBOUND bought CATL, Shenzhen Mindray, some financials.
As outperformed Hs on Monday and Tuesday (when both were open), then Hs rocketed on Thursday and Friday. As will have to catch up early in the week.

ECM Weekly (6th May 2024) – Aadhar, Indegene, TBO Tek, Super Hi, China Resources Bev, Honasa, Worley

By Sumeet Singh

Aequitas Research puts out a weekly update on the deals that were covered by the team recently along with updates for upcoming IPOs.
On the IPO front, a number of deals were launched in India, while HD Hyundai Marine Solution (443060 KS) will list in the coming week.
On the placement front, the two deals in Australia, WorleyParsons Ltd (WOR AU) and Endeavour Group /Australia (EDV AU) delivered opposing results.

Fluence Corp Ltd – New strategy proving up

Fluence Corporation (ASX:FLC) specialises in the delivery of water and wastewater solutions in industrial, municipal and commercial industries across the globe.
The company released an update on Q1 performance (note: FLC has a December balance date), that clearly validates the change in group strategy away from large construction and engineering projects, and towards smaller, higher margin, proprietary solutions, with a clear push into North America.
The company has maintained full year guidance of US$90m-$100m of revenue and EBITDA of US$3.5m-$4.0m, a positive turnaround from the EBITDA breakeven position of FY23.

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May 06

Daily Brief Health Care: China Traditional Chinese Medicine, APT Medical , Shijiazhuang Yiling Pharmaceutical and more

By Smartkarma Daily Briefs | Daily Briefs, Healthcare

In today’s briefing:

Merger Arb Mondays (06 May) – China TCM, L’Occitane, Hollysys, Shinko, QV Equities, Qantm IP, Adbri
CSI500 Index Rebalance Preview: Potential Adds Rally and Outperform the Potential Deletes
China TCM (570.HK) Update – Despite Doubts, This Privatization Seems “Mandatory”
China Healthcare Weekly (May.5) – Overvaluation in Primary Market, RDC to Be Hot Spot, Yiling Pharma

Merger Arb Mondays (06 May) – China TCM, L’Occitane, Hollysys, Shinko, QV Equities, Qantm IP, Adbri

We summarise the latest spreads and newsflow of merger arb situations we cover across Hong Kong, Australia, New Zealand, Singapore, Japan, Indonesia, Malaysia, Philippines, Thailand and Chinese ADRs.
Highest spreads: Hollysys Automation Technologies (HOLI US), QV Equities Ltd (QVE AU), Southern Cross Media (SXL AU), Qantm Intellectual Property (QIP AU), Probiotec Ltd (PBP AU), China TCM.
Lowest spreads: Chilled & Frozen Logistics Holdings (9099 JP), Roland DG Corp (6789 JP), Mma Offshore (MRM AU), Pact Group Holdings (PGH AU), Jastec Co Ltd (9717 JP).

CSI500 Index Rebalance Preview: Potential Adds Rally and Outperform the Potential Deletes

With the review period now complete, we forecast 50 changes (the maximum permitted) for the CSI Smallcap 500 Index – Shang (SH000905 INDEX) at the close on 14 June.
We estimate a one-way turnover of 9.3% at the rebalance resulting in a one-way trade of CNY10.88bn (US$1.5bn). The Industrials and Information Technology sectors gain at the expense of Materials.
The potential adds have outperformed the potential deletes by 8% over the last 3 months. There could be further outperformance over the next few weeks.

China TCM (570.HK) Update – Despite Doubts, This Privatization Seems “Mandatory”

By Xinyao (Criss) Wang

Some investors have concerns that the privatization may fail. We also noticed that Morgan Stanley raised China TCM’s target price to HK$5.4. However, the privatization of China TCM seems “mandatory”.
At this stage, some background information is worth the attention, which will help investors better understand the logic behind this privatization and thus resolve the “confusion”.
According to regulatory requirements, it’s expected that both CNPGC and Taiji will integrate resources in pharmaceutical manufacturing and distribution sectors, so as to solve horizontal competition issue between the two.

China Healthcare Weekly (May.5) – Overvaluation in Primary Market, RDC to Be Hot Spot, Yiling Pharma

By Xinyao (Criss) Wang

Due to the overvaluation of pharmaceutical companies in the primary market, only foreign markets are able to “digest” such high valuation. So, various promising drugs are acquired by foreign investors.
The field of RDC/RLT has attracted our attention, which could become the next hot area. Since nuclides are the most important bottleneck, domestic related enterprises will usher in opportunities.
Shijiazhuang Yiling Pharmaceutical’s performance would continue to be under pressure in 24H1 but would rebound in 24H2 after “destocking”. Valuation/share price have not yet bottomed out. Don’t rush to bottom-fish.

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May 06

Daily Brief Financials: Hang Seng China Enterprises Index, ICBC (H), NIFTY Index and more

By Smartkarma Daily Briefs | Daily Briefs, Financials

In today’s briefing:

HSCEI Dividend Futures: Sell the 2024/25 Steepener
A/H Premium Tracker (To 3 May 2024): Minimal Moves in 2-Day Week
EQD / NSE Volatility Update / 29-Apr-24 to 03-May-24

HSCEI Dividend Futures: Sell the 2024/25 Steepener

The HSCEI 2024 dividend futures have moved higher following mainland China banks announcing that they will pay out interim dividends starting this year.
The HSCEI 2025 dividend futures have moved higher too, though they have lagged the HSCEI 2024 dividend futures.
Even though the HSCEI 2024/25 dividend steepener has dropped by around 10 points in the last few weeks, we see further downside in the near-term.

A/H Premium Tracker (To 3 May 2024): Minimal Moves in 2-Day Week

By Travis Lundy

The New/Better A-H Premium Tracker has tables, charts, measures galore to track A/H premium positioning, southbound and northbound positioning/volatility in pairs over time, etc.
SOUTHBOUND’s consecutive buying streak ended on Monday 25-March, then started again. 20 days straight net buying. NORTHBOUND saw big inflows Friday. A record day I believe.
HK stocks bounced VERY hard. Seemed like big allocation trade. HSCEI +8.7% vs CSI300 +1.2%. In H/A Pairs, liquid pairs saw Hs outperform their A by 4+% on average.

EQD / NSE Volatility Update / 29-Apr-24 to 03-May-24

By Sankalp Singh

Implied Volatilities (IVs) have stabilized over the past few weeks & look to be in the early stages of an uptrend.
Breakdown in Spot-Vol correlation – higher IVs at a time when Equity Indices are flirting with All-time-Highs.
Skew compression in BankNifty Options driven by call-buying on the break above 49000, further exacerbated by pre-election demand for June & July expiries.

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May 06

Daily Brief Consumer: TORIDOLL Holdings Corporation, Ginebra San Miguel , TSE Tokyo Price Index TOPIX and more

By Smartkarma Daily Briefs | Consumer, Daily Briefs

In today’s briefing:

Toridoll (3397): Restaurant Chain on a Lege
Ginebra San Miguel (GSMI PM): Gleanings From The Last 12 Years of Annual Reports and Q1 2024 Bonanza
Shareholder Returns Will Increase over June AGM, but Will Companies Hold up with Sluggish ROE?

Toridoll (3397): Restaurant Chain on a Lege

By Michael Allen

Macro trends for restaurant chains are all negative: Food prices rising faster than restaurant unit prices, part-time wages rising faster than full-time.
Toridoll’s same store sales resuming long-term underperformance trend that was broken only briefly during the pandemic.
Stock trades at 3x the market average PBR, despite merely average RoE. Technical support has broken down.

Ginebra San Miguel (GSMI PM): Gleanings From The Last 12 Years of Annual Reports and Q1 2024 Bonanza

By Sameer Taneja

Ginebra San Miguel (GSMI PM) is a monopoly in the gin business in the Philippines with a 97% marketshare trading at 7x PE FY24 ( 10-Yr Revenue CAGR 15% YoY).
After its Q1 results, it has 32% of the market cap in net cash and investments, a dividend yield of>7%, and a 5/10 Yr average ROCE of 37%/22%.
We summarize what we learned from the annual report released on April 15th. We saw a long-term trend of increasing prices, consistent margin growth, balance sheet improvement, etc.

Shareholder Returns Will Increase over June AGM, but Will Companies Hold up with Sluggish ROE?

By Aki Matsumoto

In addition to too much cash on hand to begin with, ROE is expected to continue to grow at a sluggish pace, as shareholder returns are less than profit growth.
Given that we expect more companies to have stock price, P/B, and ROE on the agenda for the June AGM, more companies are expected to announce increases in shareholder returns.
However, ROE is unlikely to increase significantly. Shareholder returns are certainly too small, but a more serious problem is the inability to find growth investment opportunities.

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May 05

Daily Brief Australia: Adbri and more

By Smartkarma Daily Briefs | Australia, Daily Briefs

In today’s briefing:

Adbri (ABC AU): 12th June Shareholder Vote

Adbri (ABC AU): 12th June Shareholder Vote

On the 27 Feb 2024, construction play Adbri (ABC AU) entered into a Scheme Implementation Deed with CRH (CRH US) and 42.7%-shareholder Raymond Barro (Chairman) at $5.20/share.
Conditions include Adbri’s shareholder approval and FIRB signing off. Optically, it doesn’t appear to be a knockout price. However, Adbri’s share price has laboured since the onset of Covid.
The Scheme Booklet is now out, with a Scheme Meeting to be held on the 12th June. Expected implementation on the 1 July. IE says fair & reasonable.

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May 05

Daily Brief India: Gravita India and more

By Smartkarma Daily Briefs | Daily Briefs, India

In today’s briefing:

A Closer Look at Gravita India’s Qualified Audit Opinion

A Closer Look at Gravita India’s Qualified Audit Opinion

By Nimish Maheshwari

Gravita India (GRAV IN) faced a Qualified Audit Opinion over share sale proceeds’ reporting by its Employee Welfare Trust.
The dispute centers on whether to record these proceeds in the P&L or Balance Sheet, impacting transparency and financial metrics.
This dispute reduced the PBT by 7.54% and EPS by 8.66% decrease in Q4 FY24.

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May 05

Daily Brief United States: Marathon Digital Holdings, ZEEKR, Bristol Myers Squibb Co, Caterpillar Inc, Comcast Corp Class A, Dexcom Inc, Gilead Sciences, Edwards Lifesciences, Honeywell International, Carrier Global and more

By Smartkarma Daily Briefs | Daily Briefs, United States

In today’s briefing:

S&P500 Index Rebalance: Bitcoin Miner Is a SPCY Add
ZEEKR IPO: Attractive ~$4.8B Midpoint Valuation Offers At Least 30% Upside
Bristol-Myers Squibb Company: A Deep Dive Into The Progress Of Its Clinical Portfolio! – Major Drivers
Caterpillar Inc.: A Deep Dive Into Its Key Areas Of Competitive Advantage & Recent Strategic Investments! – Major Drivers
Comcast Corporation: A Story Of Superior Product Innovation & An Improving Market Position! – Major Drivers
DexCom Inc.: Why Are We Bullish On This Med-Tech Player Despite The Highly Evident Challenges Ahead? – Major Drivers
Gilead Sciences: Acquisition of CymaBay Therapeutics Enhancing Liver Disease Portfolio & 6 Major Drivers
Edwards Lifesciences Corporation: Increased Investment in Field Resources and Patient Access Initiatives! – Major Drivers
Honeywell International: Will Their Improved Performance In Energy and Sustainability Solutions (ESS) Expected To Propel Their Growth? – Major Drivers
Carrier Global Corporation: Can It Increase Its Productivity & Show Resilience Against Rising Material Costs? – Major Drivers

S&P500 Index Rebalance: Bitcoin Miner Is a SPCY Add

Following Exxon Mobil (XOM US)‘s acquisition of Pioneer Natural Resources (PXD), Vistra (VST US) will be added to the S&P 500 INDEX (SPX INDEX) at the close on 7 May.
Marathon Digital Holdings (MARA US) is an add to the S&P SmallCap 600 Index and the stock could move higher till implementation.
Marathon Digital Holdings (MARA US) stock has underperformed its close peers this year and the ratio of Marathon Digital Holdings stock price to Bitcoin (XBTUSD CURNCY) is near the lows.

ZEEKR IPO: Attractive ~$4.8B Midpoint Valuation Offers At Least 30% Upside

By Andrei Zakharov

Geely-Backed ZEEKR set terms for U.S. IPO: EV maker offers 17.5M American depositary shares (ADSs) at the price range of $18-$21, implying a market cap of ~$4.8B at the midpoint.
Geely Auto, Mobileye and CATL have indicated a non-binding interest in subscribing for an aggregate of up to ~$349M worth of the ADSs being offered in this offering.
I have a positive view of ZEEKR IPO as the offering will be priced significantly below last round valuation of ~$13B.

Bristol-Myers Squibb Company: A Deep Dive Into The Progress Of Its Clinical Portfolio! – Major Drivers

It is clear from Bristol-Myers Squibb’s first quarter 2024 earnings that the company has had a strong start to the year, even as it navigates some challenges.
The firm’s performance during this time showcased the strength and potential of its commercial portfolio and the progress it has made in advancing its pipeline.
Key brands such as Eliquis, Opdualag, Reblozyl, Yervoy, and Breyanzi have demonstrated significant strength, contributing to the company’s overall performance.

Caterpillar Inc.: A Deep Dive Into Its Key Areas Of Competitive Advantage & Recent Strategic Investments! – Major Drivers

Caterpillar’s earnings for the first quarter of 2024 highlighted a strong quarter with sales and revenues maintaining levels consistent with the last year, largely meeting the company’s expectations.
A key aspect was the continuation of healthy demand for its products and services across major end markets.
Thanks to its robust balance sheet and free cash flow, the company was able to allocate a remarkable $5.1 billion for share repurchases and dividends during the quarter.

Comcast Corporation: A Story Of Superior Product Innovation & An Improving Market Position! – Major Drivers

Comcast Corporation reported Q1 earnings recently highlighted by a strategic execution where the company maintained dominance in a competitive and evolving market.
The company’s resilient capital allocation strategy and strong balance sheet place it in a favorable position, allowing it to invest aggressively in its six diverse growth businesses- Residential Broadband, Wireless, Business Services, Theme Parks, Studios, and Streaming.
These sectors made up more than 55% of the company’s total revenue in Q1, and this proportion is set to grow.

DexCom Inc.: Why Are We Bullish On This Med-Tech Player Despite The Highly Evident Challenges Ahead? – Major Drivers

Dexcom, Inc., particularly known for its continuous glucose monitoring (CGM) technology, consistently showcased strong performance in the first quarter of 2024 with an organic revenue growth of 25% compared to the first quarter of 2023.
This noteworthy surge is credited to the substantial demand for Dexcom CGM, seen as customers increasingly value its leading product performance and unique user experience.
The shift towards Dexcom’s CGM technology has been significant, especially since the launch of G7 in the U.S., which enabled Dexcom to attract a broad range of new prescribers and improve its impact within primary care, resulting in growing demand from people with diabetes.

Gilead Sciences: Acquisition of CymaBay Therapeutics Enhancing Liver Disease Portfolio & 6 Major Drivers

Gilead Sciences Inc. reported a solid first quarter of 2024.
Total product sales, exclusive of Veklury, rose 6% year-over-year to $6.1 billion.
Growth was driven primarily by demand across its HIV, oncology, and liver disease verticals.

Edwards Lifesciences Corporation: Increased Investment in Field Resources and Patient Access Initiatives! – Major Drivers

Edwards Lifesciences Corporation recorded robust first quarter 2024 results, demonstrating growth on numerous fronts.
The company’s total sales rose by 10% to $1.6 billion against the same period last year, leading Edwards to raise its 2024 sales guidance to the high end of 8% to 10%.
This highlights the company’s successful strategic direction, underscored by its substantial investments across transcatheter platforms which are addressing patient needs associated with aortic, mitral, and tricuspid diseases.

Honeywell International: Will Their Improved Performance In Energy and Sustainability Solutions (ESS) Expected To Propel Their Growth? – Major Drivers

Honeywell International Inc.’s first-quarter 2024 earnings reveals consistent growth in the company, exceeding its adjusted earning per share guidance and organic sales targets.
Despite the dynamic macroeconomic environment, the robust execution of Honeywell’s Accelerator operating system and the company’s diversified technology portfolio has led to significant performance gains.
With recovery in key areas of Honeywell’s short-cycle portfolio and sustained growth in its long-cycle Aerospace and energy businesses, the company demonstrates a positive momentum in its financial results.

Carrier Global Corporation: Can It Increase Its Productivity & Show Resilience Against Rising Material Costs? – Major Drivers

Carrier Global Corporation’s Q1 2024 results showed a robust start to the year with adjusted EPS growth of 19% on low-single-digit organic sales growth and 280 basis points of adjusted margin expansion.
With the addition of 12,000 new members from Viessmann Climate Solutions, the company is poised for another year of significant margin expansion and solid growth.
Its lean journey and sustained productivity have contributed greatly to these results.

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May 05

Daily Brief Japan: West Japan Railway Co and more

By Smartkarma Daily Briefs | Daily Briefs, Japan

In today’s briefing:

Last Week in Event SPACE: Aussie Tax-Loss Selling, Austal, West Japan Railway, PICC/PICC P&C

Last Week in Event SPACE: Aussie Tax-Loss Selling, Austal, West Japan Railway, PICC/PICC P&C

Tax-Loss Selling‘s a subject of interest in Australia. Retail investors will take gains on stocks which run up in price, or get taken over, then look for losses to offset.
Investors are caught out as the Aussie government “approves” Hanwha Ocean (042660 KS) buyng Austal Ltd (ASB AU). There is evidently a lot more going on in the background.
West Japan Railway Co (9021 JP) announces a biggish buyback. One could buy dips, but one should probably not chase. For that, suggest this acts as a range trade.

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May 05

Daily Brief China: L’Occitane, Shanghai Rural Commercial Bank and more

By Smartkarma Daily Briefs | China, Daily Briefs

In today’s briefing:

Weekly Deals Digest (05 May) – L’Occitane, C&F Logistics, KFC Japan, Austal, Hyundai Marine, ZEEKR
(Mostly) Asia-Pac M&A: L’Occitane, KFC Holdings Japan, CSR, Azure Minerals, CIMC, Chilled & Frozen
Quiddity Leaderboard CSI 300/500 Jun 24: Final Expectations; US$3.4bn One-Way; New Trade Idea

Weekly Deals Digest (05 May) – L’Occitane, C&F Logistics, KFC Japan, Austal, Hyundai Marine, ZEEKR

A weekly summary of key developments across ECM and Event-Driven names tracked by us across Hong Kong, Australia, New Zealand, Singapore, Japan, Indonesia, Malaysia, Thailand, Korea, India and Chinese ADRs.
ECM developments: HD Hyundai Marine Solution (443060 KS) and ZEEKR (ZK US) IPOs.
Event-Driven developments: L’Occitane (973 HK), Chilled & Frozen Logistics Holdings (9099 JP), Kfc Holdings Japan (9873 JP), Mimasu Semiconductor Industry (8155 JP), Austal Ltd (ASB AU).

(Mostly) Asia-Pac M&A: L’Occitane, KFC Holdings Japan, CSR, Azure Minerals, CIMC, Chilled & Frozen

Tally 47 – mostly firm, mostly Asia-Pac – transactions currently being discussed and analysed on Smartkarma. Inside is a timetable of upcoming key events for each deal.
One new deals was discussed on Smartkarma this week: L’Occitane (973 HK)‘s VGO from major shareholder, Reinold Geiger. A deal for KFC Holdings Japan (9873 JP) is apparently imminent.
Key updates took place on: CSR Ltd (CSR AU), Azure Minerals (AZS AU), CIMC Vehicle Group Co Ltd (1839 HK), and Chilled & Frozen Logistics Holdings (9099 JP).

Quiddity Leaderboard CSI 300/500 Jun 24: Final Expectations; US$3.4bn One-Way; New Trade Idea

By Janaghan Jeyakumar, CFA

CSI 300 represents the 300 largest stocks by market cap and liquidity from the Shanghai and Shenzhen Exchanges. CSI 500 is the next 500.
The reference period for the June 2024 review is now complete. There are some changes to the expected ADDs/DELs list since I published my last insight (link) ~3 weeks ago.
In this insight, we take a look at our final expectations for index changes in June 2024.

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May 05

Most Read: Amman Mineral Internasional, Shenyang Xingqi Pharmaceutical, Robosense Technology, Deep Yellow Ltd, Berli Jucker, Jeju Semiconductor, Korea Stock Exchange Kospi Index, L’Occitane, Marathon Digital Holdings and more

By Smartkarma Daily Briefs | Daily Briefs, Most Read

In today’s briefing:

IDX30/LQ45/IDX80 Index Rebalance: BIG Flows for Some Stocks
ChiNext/ChiNext50 Index Rebalance Preview: Plenty of Overlap Between the Indices
HSCI Index Rebalance Preview: Robosense (2498 HK) Could Be Added in June
ASX200 Index Rebalance Preview: Potential Changes Prior to the June Rebalance
SET50 Index Rebalance Preview: Market Consultation & More Changes in June
KOSDAQ150 Index Rebalance Preview: 15 Changes Possible as Review Period Ends
Local Institutions’ Value-Up Momentum Moves: Watch the July Tax Reform Bill
Weekly Deals Digest (05 May) – L’Occitane, C&F Logistics, KFC Japan, Austal, Hyundai Marine, ZEEKR
(Mostly) Asia-Pac M&A: L’Occitane, KFC Holdings Japan, CSR, Azure Minerals, CIMC, Chilled & Frozen
S&P500 Index Rebalance: Bitcoin Miner Is a SPCY Add

IDX30/LQ45/IDX80 Index Rebalance: BIG Flows for Some Stocks

There are 2 constituent changes for the LQ45 Index and 6 constituent changes for the IDX80 Index at the rebalance to be implemented at the close on 30 April.
The largest passive inflows are expected in Amman Mineral Internasional (AMMN IJ), Indosat Tbk PT (ISAT IJ), Bank Rakyat Indonesia (BBRI IJ) and Merdeka Copper Gold Tbk PT (MDKA IJ).
With only 4 days to implementation, there could be relatively big moves on stocks that have large flow/impact from passive fund trading.

ChiNext/ChiNext50 Index Rebalance Preview: Plenty of Overlap Between the Indices

Nearing the end of the review period, we forecast 8 changes for the ChiNext Index (SZ399006 INDEX) and 5 changes for the ChiNext 50 Index in June.
There are overlapping names for the two indices and some of the stocks will also have flows from the CSI Smallcap 500 Index – Shang (SH000905 INDEX) trackers.
The potential adds have outperformed the potential deletes between 9-10% for both indices over the last month with the deletes dropping a lot more than the adds.

HSCI Index Rebalance Preview: Robosense (2498 HK) Could Be Added in June

There were only 12 new listings on the Main Board of the HKEX (388 HK) in the first quarter of the year. More than half the listings were in March.
Of those stocks, we only see Robosense Technology (2498 HK) having a chance of being added to the HSCI in June and then into Southbound Stock Connect.
There is a big lock-up expiry for Robosense Technology (2498 HK) in July and that should keep the stock under pressure.

ASX200 Index Rebalance Preview: Potential Changes Prior to the June Rebalance

Seven Group Holdings (SVW AU)‘s holding in Boral Ltd (BLD AU) continues to increase and that could lead to an index change at the June rebalance, if not earlier.
The Silver Lake Resources (SLR AU)/ Red 5 Ltd (RED AU) merger could lead to an index change early June.
Cie De Saint-Gobain (SGO FP)‘s acquisition of CSR Ltd (CSR AU) could lead to another index change just ahead of the regular June rebalance.

SET50 Index Rebalance Preview: Market Consultation & More Changes in June

The SET has run a market consultation on relaxing liquidity thresholds for inclusion of stocks in the Stock Exchange of Thailand SET 50 Index (SET50 INDEX) universe.
The consultation is the result of an increase in Average Daily Trading Values and lower turnover ratios, especially for large cap stocks.
Berli Jucker (BJC TB) is now a potential index inclusion in June and that could result in four constituent changes at the next rebalance.

KOSDAQ150 Index Rebalance Preview: 15 Changes Possible as Review Period Ends

With the review period complete, there could be up to 15 changes for the KOSDAQ 150 Index (KOSDQ150 INDEX) at the June rebalance.
Even with 15 changes, there is some sector balance among the potential adds and deletes with big churn in the Information Technology sector.
The potential adds have outperformed the potential deletes and the KOSDAQ 150 Index (KOSDQ150 INDEX) since the start of the review period but performance has flattened over the last month.

Local Institutions’ Value-Up Momentum Moves: Watch the July Tax Reform Bill

By Sanghyun Park

MMAS prioritizes dividends over low-PBR, key to government’s Value-up momentum. Despite initial market disappointment, dividend stocks rebounded, underscoring continued investor interest.
Government officials are collecting historic dividend data to simulate separate taxation impact of dividend income, likely to be included in July’s tax reform bill for National Assembly approval.
Local institutions focus on dividend-centric Value-up trading, targeting stocks with high cash reserves and dividends. Strategy needed to manage market impact pre-tax reform bill in July.

Weekly Deals Digest (05 May) – L’Occitane, C&F Logistics, KFC Japan, Austal, Hyundai Marine, ZEEKR

A weekly summary of key developments across ECM and Event-Driven names tracked by us across Hong Kong, Australia, New Zealand, Singapore, Japan, Indonesia, Malaysia, Thailand, Korea, India and Chinese ADRs.
ECM developments: HD Hyundai Marine Solution (443060 KS) and ZEEKR (ZK US) IPOs.
Event-Driven developments: L’Occitane (973 HK), Chilled & Frozen Logistics Holdings (9099 JP), Kfc Holdings Japan (9873 JP), Mimasu Semiconductor Industry (8155 JP), Austal Ltd (ASB AU).

(Mostly) Asia-Pac M&A: L’Occitane, KFC Holdings Japan, CSR, Azure Minerals, CIMC, Chilled & Frozen

Tally 47 – mostly firm, mostly Asia-Pac – transactions currently being discussed and analysed on Smartkarma. Inside is a timetable of upcoming key events for each deal.
One new deals was discussed on Smartkarma this week: L’Occitane (973 HK)‘s VGO from major shareholder, Reinold Geiger. A deal for KFC Holdings Japan (9873 JP) is apparently imminent.
Key updates took place on: CSR Ltd (CSR AU), Azure Minerals (AZS AU), CIMC Vehicle Group Co Ltd (1839 HK), and Chilled & Frozen Logistics Holdings (9099 JP).

S&P500 Index Rebalance: Bitcoin Miner Is a SPCY Add