Smartkarma Daily Briefs

With nearly 85% of the review period complete, there could be 15 changes for the KOSDAQ 150 Index (KOSDQ150 INDEX) at the June rebalance.
Prior to the June rebalance, C&C International (352480 KS) will replace CanariaBio (016790 KS) in the index following CanariaBio being listed as an Administrative Issue and an Investment Attention Issue.
The potential adds have outperformed the potential deletes and the KOSDAQ 150 Index since the start of the review period. Lighten positions ahead of the end of the review period.

STAR100 Index Rebalance Preview: 10 Changes as Potential Adds Outperform

The review period for the June rebalance ends 30 April. We expect the changes to be announced 31 May with the implementation taking place after the close on 14 June.
We forecast 10 changes for the index, including migrations between the STAR 100 Index and the SSE STAR50 (STAR50 INDEX).
Excluding the migrations, the potential adds have outperformed the potential deletes over the last few months and that could continue as we head to the end of the review period.

Amaero Internaitonal (ASX:3DA) RaaS Interview Transcript 8 April 2024

Interview discusses the offtake agreement and opportunity to expand beyond the current arrangement, the $20m capital raised and outlook for future funding needs, update on strategic equity/debt in the US and milestones to expect over the next six months.

Amaero International Ltd – Binding off-take agreement boosts strategic C103 position

Amaero International Ltd (ASX:3DA) is a global specialist in advanced materials manufacturing for the defence, aerospace, and other industrial sectors, developing a critical metals alloy powder manufacturing facility in Tennessee, USA. The company has secured a binding offtake agreement for the supply of C103 additive manufacturing powder, a key milestone in the development of its critical metals powder manufacturing presence in the US. Concurrently, Amaero has raised $20m by way of a placement to institutional investors, which the company anticipates will be the last equity capital raise in the Australian market.
Going forward, Amaero says it intends to seek equity capital from strategic US investors.
We continue to incorporate Amaero’s guidance that it expects to report an EBITDA loss of $14m in CY2024 and to break-even in CY2025.

Fluence Corp Ltd – Watershed complete, growth strategy in play

Fluence Corporation (ASX:FLC) provides water and wastewater treatment, and reuse solutions, for the municipal, commercial, and industrial markets worldwide.
The company has a proven suite of products and expertise, both proprietary and otherwise, which it has used to deliver more than 850 projects globally.
After some historical missteps, FLC has now been completely rejuvenated through the appointment of a highly regarded and proven US-based management team and reinvigorated board.

Odyssey Marine Exploration, Inc. – Urgency Around Seabed Mining Increases

By Water Tower Research

Industry needs batteries and batteries need metals. As numerous studies have concluded, even with slightly slower than previously anticipated growth in EV adoption and renewable energy (wind and solar) buildout, demand for metals going into lithium batteries is expected to exceed current estimates for said metals’ production as early as 2026-28.
The implied need to find and develop sufficient new resources of these metals to satisfy the expected demand has become a major focus for battery and auto OEMs, as well as governments set on the path to electrification of their economies.
More plentiful, less harmful. Many industry and investment banks’ reports also conclude that traditional terrestrial resources in the development or even exploration phase currently are not sufficient to meet the expected demand, suggesting other unconventional resources require commercial development.

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Apr 09

Daily Brief Energy/Materials: Azure Minerals, Bangchak Corporation, ADX Energy Ltd and more

By Smartkarma Daily Briefs | Daily Briefs, Energy & Materials Sector

In today’s briefing:

Azure Minerals (AZS AU): FIRB Approval Concerns Are Overdone
SET50 Index Rebalance Preview: Three Potential Changes in June
ADX Energy (ASX: ADX): Restarting production at Anshof

Azure Minerals (AZS AU): FIRB Approval Concerns Are Overdone

By Arun George

Azure Minerals (AZS AU) shareholders have overwhelmingly approved the dual-track bid from Sociedad Quimica y Minera de Chile (SQM US) and Hancock. The scheme offer is A$3.70 per share.
The shares fell 7%, seemingly due to concerns about FIRB approval sparked by FIRB’s request for an extension on 3 April and today’s AFR article on China’s Australian lithium holdings.
FIRB approval should be forthcoming due to Tianqi Lithium (9696 HK) small indirect interest in Andover, Lithium Power International (LPI AU) precedent, and SQM and Tianqi’s strained relationship.

SET50 Index Rebalance Preview: Three Potential Changes in June

Nearing the halfway mark in the review period, we see 3 potential changes for the Stock Exchange of Thailand SET 50 Index (SET50 INDEX) at the June rebalance.
Passive trackers will need to buy between 1.2-4.5 days of ADV on the inclusions and sell 0.9-1.3 days of ADV on the deletions.
Berli Jucker (BJC TB) continues to be a close add on liquidity while Gulf Energy Development (GULF TB) and Intouch Holdings (INTUCH TB) continue to be close deletes.

ADX Energy (ASX: ADX): Restarting production at Anshof

By Auctus Advisors

The Permanent Production Facility (PPF), with a capacity of 3,000 bbl/d of liquids, has been commissioned and the Anshof-3 well has recommenced production at a rate of 134 bbl/d with no water.
The operation has been undertaken in line with expectations and within budget.
The oil production rate at Anshof-3 is 16% above the rate prior to shut-in.

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Apr 09

Daily Brief Health Care: Aster DM Healthcare Ltd, Ansell Ltd, NKMax, Gland Pharma Ltd, Natera Inc, Roivant Sciences Ltd, BenQ BM Holding Cayman Corp and more

By Smartkarma Daily Briefs | Daily Briefs, Healthcare

In today’s briefing:

Aster DM Healthcare’s Special Dividend & Restructuring
Ansell Placement – Undertaking a Large Acquisition as Sector Headwinds Remain
Special Changes in KOSDAQ 150: Deletion (NKMAX) + Addition (GI Innovation)
Gland Pharma Ltd (GLAND IN): Business Recovery Seems To Be Overlooked by Mr. Market
Natera Inc.: Initiation Of Coverage – Can It Successfully Leverage The Invitae Acquisition? – Major Drivers
Roivant Sciences Ltd.: Initiation Of Coverage – Acquisition Of New Programs To Diversify In Biosciences! – Major Drivers
BenQ BM Holding Cayman Corp Pre-IPO Tearsheet

Aster DM Healthcare’s Special Dividend & Restructuring

By Nimish Maheshwari

Aster DM Healthcare Ltd (ASTERDM IN) completes a significant restructuring, separating its India and GCC operations, with a consortium led by Fajr Capital acquiring a 65% stake in Aster GCC.
The substantial cash consideration received provides financial flexibility for further investments, debt reduction, or strategic opportunities.
Explore the implications of Aster’s restructuring on shareholder value, with a special dividend of INR 110 to INR 120 per share planned.

Ansell Placement – Undertaking a Large Acquisition as Sector Headwinds Remain

By Clarence Chu

Ansell Ltd (ANN AU) is looking to raise US$262m in its primary follow-on to partially fund its acquisition of KCPPE.
Despite the firm having been on an acquisition spree, it remains uncertain to us if the market has been factoring in such a large one.
The deal would be a large one to digest, representing 52.5 days of the stock’s three month ADV.

Special Changes in KOSDAQ 150: Deletion (NKMAX) + Addition (GI Innovation)

By Douglas Kim

On 8 April, the Korea Exchange announced special changes to KOSDAQ 150. NKMAX will be excluded from KOSDAQ 150 and it will be replaced by GI Innovation.
NKMAX was designated as “administrative issue” and “investment attention issue” on 8 April 2024, which resulted in the Korea Exchange deciding to remove this stock from KOSDAQ 150.
We believe that this inclusion of GI Innovation in KOSDAQ 150 is likely to further positively impact its share price.

Gland Pharma Ltd (GLAND IN): Business Recovery Seems To Be Overlooked by Mr. Market

By Tina Banerjee

Gland Pharma Ltd (GLAND IN) reported mid-single-digit revenue and EPS growth in its base business (ex-Cenexi) during 9M FY24. The company is confident to end FY24 on a high note.
Gland Pharma starts FY25 on a strong note with gaining U.S. approval for eribulin mesylate injection, used for breast cancer that has spread to other parts of the body.
Over the next 12–15 months, Gland Pharma is poised for enhanced geographical foot-print in Europe through Cenexi. The addressable CDMO business opportunity is estimated at €4B.

Natera Inc.: Initiation Of Coverage – Can It Successfully Leverage The Invitae Acquisition? – Major Drivers

Natera, Inc.’s latest quarterly earnings reveal positive growth prospects and the firm’s commitment to maintaining momentum in their healthcare ventures.
The company saw a rise in revenue, reaching $311 million for Q4, a substantial growth of 43% over the same period in 2022.
Furthermore, its full-year revenues were reported at $1.08 billion, up by more than 30% compared to the previous year.

Roivant Sciences Ltd.: Initiation Of Coverage – Acquisition Of New Programs To Diversify In Biosciences! – Major Drivers

This is our first report on Roivant.
The company’s Q3 2023 earnings were decent and the neutral positives can be highlighted from the continuous growth of VTAMA, ROIV’s best-selling branded topical in psoriasis, recording over 300,000 prescriptions and revenues of $20.7 million.
Additionally, the pipeline for Roivant has compelling developments, with brepocitinib showing promising potential in orphan rheumatology.

BenQ BM Holding Cayman Corp Pre-IPO Tearsheet

By Clarence Chu

BenQ BM Holding Cayman Corp (2228515D KY) is looking to raise at least US$100m in its upcoming Hong Kong IPO. The bookrunners on the deal are CICC and Citigroup.
BenQ BM Holding Cayman Corp (BenQ BM) is a general hospital operator.
As of Dec 2023, BenQ BM owned and operated two hospitals, with a total combined GFA of approximately 380,000 sqm and 1,850 registered beds.

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Apr 09

Daily Brief TMT/Internet: Samsung Electronics, Taiwan Semiconductor (TSMC), Maxlinear Inc Class A, Nanya Technology, Naspers , MultiChoice Group, Ubiquiti Inc. and more

By Smartkarma Daily Briefs | Daily Briefs, TMT/Internet

In today’s briefing:

Samsung Electronics: Block Deal Sale of 5.2 Million Shares by Lee Boo-Jin
Samsung Electronics Placement – Better Timing This Time Around
TSMC (2330.TT; TSM.US): US$6.6bn from US CHIPS Act; the Earthquake Impact and the 2nd Japanese Fab.
Beaten Down Semiconductor Could be AI Play
Memory Monitor: Nanya’s Results to Provide Latest Color on DRAM Post Earthquake; Short Int Rising
Naspers (NPN) X Prosus (PRX): Performance for Q1 2024, Gains Driven by Tencent, NAV Growth
Canal+/Multichoice Group: Agreed Offer
UI: Product Rollouts Fuel for Optimism

Samsung Electronics: Block Deal Sale of 5.2 Million Shares by Lee Boo-Jin

By Douglas Kim

After the market close on 8 April, it was reported that Lee Boo-Jin will sell 5,247,140 shares of Samsung Electronics in a block deal (up to 443 billion won).
The expected block deal sale price is 83,700 to 84,500 won per share, which represents a discount rate of up to 0.95% compared to the closing price on 8 April.
We are positive on this block deal sale and on Samsung Electronics. We would take the deal.

Samsung Electronics Placement – Better Timing This Time Around

By Sumeet Singh

KEB Hana Bank, on behalf of Lee Boo-Jin, is looking to raise up to US$325m via selling 0.1% of Samsung Electronics (005930 KS).
The deal appears to be somewhat well flagged and the company recently reported better operating numbers for 1Q24.
In this note, we will run the deal through our ECM framework and talk about the recent updates.

TSMC (2330.TT; TSM.US): US$6.6bn from US CHIPS Act; the Earthquake Impact and the 2nd Japanese Fab.

By Patrick Liao

Today, the U.S. Department of Commerce and TSMC Arizona have signed a non-binding preliminary memorandum of terms for US$6.6 billion in direct funding under the CHIPS and Science Act.
We estimate the impact of the earthquake on April 3rd should result in a loss of within 0.5% in 2Q24F, which means it should not affect our 2Q24F revenue expectations.
TSMC’s 1st Japan Fab is expected to commence pilot production in February, and the 2nd Fab is projected to begin production of N6/N7 in 2027F.

Beaten Down Semiconductor Could be AI Play

By Douglas O’Laughlin

Maxlinear has probably been among this semiconductor cycle’s worst companies, if not the worst.
I think that it might be time to give them a fresh look.
Maxlinear was founded in 2003 in Carlsbad, California, by eight engineers. Today, Kishore Seendripu (CEO/Chairmen) and Curtis Ling (CTO) are still founders and work at the company. Maxlinear is a fabless company focused on mixed-signal products in the semiconductor industry.

Memory Monitor: Nanya’s Results to Provide Latest Color on DRAM Post Earthquake; Short Int Rising

By Vincent Fernando, CFA

DRAM producer Nanya Tech will report its 1Q24E results on April 10th.
While Micron has said it is evaluating the impact of the Taiwan earthquake on its operations and has halted price discussions with clients, Nanya could provide latest DRAM outlook color.
Short interest has spiked ahead of Nanya’s results; We note that the company has a large revenue and margin rebound it needs to deliver on to meet 2024E consensus.

Naspers (NPN) X Prosus (PRX): Performance for Q1 2024, Gains Driven by Tencent, NAV Growth

By Charlotte van Tiddens, CFA

Naspers and Prosus outperformed the benchmark by a large margin, ending the quarter up 7.3% and 6.7%, respectively. The Capped SWIX finished the quarter down 2.3%.
Tencent was up 3.5% in HKD and 6.5% in ZAR.
Tencent currently makes up 74% of Prosus’ NAV, down 1 percentage point from 75% at the start of the year.

Canal+/Multichoice Group: Agreed Offer

By Jesus Rodriguez Aguilar

MultiChoice Group (MCG SJ) and Canal+ announced a cooperation agreement (with exclusivity period) regarding Canal+’s mandatory offer at ZAR 125/share (c. $1.9 billion), 67% premium, 6.7x EV/25e EBITDA.
On both multiples and DCF, the offer seems fair. My fair value estimate (DCF-based) is ZAR 122.68/share (WACC 16.5%, 2.4% implied perpetuity growth rate).
Considering the 133% share decline from March-November 2023, shareholders must be relieved by the offer and will surely tender. My TP is ZAR 125. Gross spread is 5.7%. Buy.

UI: Product Rollouts Fuel for Optimism

By Hamed Khorsand

Product introductions remained a core part of Ubiquiti’s (UI) business in calendar first quarter with more product rollouts in the period
The new products come at a time when Ubiquiti has ample inventory, which should bode well for revenue growth as VARs, Ubiquiti’s primary customers
Ubiquiti has managed to offset the slowdown in service provider from enterprise customers and we continue to believe this trend continued to be the case in the March quarter.

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Apr 09

Daily Brief Industrials: Shinsung Delta Tech, Hainan Jinpan Smart Technology, Amaero International Ltd, Fluence Corp, Odyssey Marine Exploration and more

By Smartkarma Daily Briefs | Daily Briefs, Industrials

In today’s briefing:

KOSDAQ150 Index Rebalance Preview: Potential Adds Still Outperforming
STAR100 Index Rebalance Preview: 10 Changes as Potential Adds Outperform
Amaero Internaitonal (ASX:3DA) RaaS Interview Transcript 8 April 2024
Amaero International Ltd – Binding off-take agreement boosts strategic C103 position
Fluence Corp Ltd – Watershed complete, growth strategy in play
Odyssey Marine Exploration, Inc. – Urgency Around Seabed Mining Increases

KOSDAQ150 Index Rebalance Preview: Potential Adds Still Outperforming

With nearly 85% of the review period complete, there could be 15 changes for the KOSDAQ 150 Index (KOSDQ150 INDEX) at the June rebalance.
Prior to the June rebalance, C&C International (352480 KS) will replace CanariaBio (016790 KS) in the index following CanariaBio being listed as an Administrative Issue and an Investment Attention Issue.
The potential adds have outperformed the potential deletes and the KOSDAQ 150 Index since the start of the review period. Lighten positions ahead of the end of the review period.

STAR100 Index Rebalance Preview: 10 Changes as Potential Adds Outperform

The review period for the June rebalance ends 30 April. We expect the changes to be announced 31 May with the implementation taking place after the close on 14 June.
We forecast 10 changes for the index, including migrations between the STAR 100 Index and the SSE STAR50 (STAR50 INDEX).
Excluding the migrations, the potential adds have outperformed the potential deletes over the last few months and that could continue as we head to the end of the review period.

Amaero Internaitonal (ASX:3DA) RaaS Interview Transcript 8 April 2024

Interview discusses the offtake agreement and opportunity to expand beyond the current arrangement, the $20m capital raised and outlook for future funding needs, update on strategic equity/debt in the US and milestones to expect over the next six months.

Amaero International Ltd – Binding off-take agreement boosts strategic C103 position

Amaero International Ltd (ASX:3DA) is a global specialist in advanced materials manufacturing for the defence, aerospace, and other industrial sectors, developing a critical metals alloy powder manufacturing facility in Tennessee, USA. The company has secured a binding offtake agreement for the supply of C103 additive manufacturing powder, a key milestone in the development of its critical metals powder manufacturing presence in the US. Concurrently, Amaero has raised $20m by way of a placement to institutional investors, which the company anticipates will be the last equity capital raise in the Australian market.
Going forward, Amaero says it intends to seek equity capital from strategic US investors.
We continue to incorporate Amaero’s guidance that it expects to report an EBITDA loss of $14m in CY2024 and to break-even in CY2025.

Fluence Corp Ltd – Watershed complete, growth strategy in play

Fluence Corporation (ASX:FLC) provides water and wastewater treatment, and reuse solutions, for the municipal, commercial, and industrial markets worldwide.
The company has a proven suite of products and expertise, both proprietary and otherwise, which it has used to deliver more than 850 projects globally.
After some historical missteps, FLC has now been completely rejuvenated through the appointment of a highly regarded and proven US-based management team and reinvigorated board.

Odyssey Marine Exploration, Inc. – Urgency Around Seabed Mining Increases

By Water Tower Research

Industry needs batteries and batteries need metals. As numerous studies have concluded, even with slightly slower than previously anticipated growth in EV adoption and renewable energy (wind and solar) buildout, demand for metals going into lithium batteries is expected to exceed current estimates for said metals’ production as early as 2026-28.
The implied need to find and develop sufficient new resources of these metals to satisfy the expected demand has become a major focus for battery and auto OEMs, as well as governments set on the path to electrification of their economies.
More plentiful, less harmful. Many industry and investment banks’ reports also conclude that traditional terrestrial resources in the development or even exploration phase currently are not sufficient to meet the expected demand, suggesting other unconventional resources require commercial development.

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Apr 09

Daily Brief Financials: Greentown China, Bitcoin, Arbuthnot Banking, JDC Group AG, Oportun Financial , Tiptree Financial Inc A and more

By Smartkarma Daily Briefs | Daily Briefs, Financials

In today’s briefing:

Morning Views Asia: Greentown China
Crypto Crisp: Bitcoin Leads the Market
Arbuthnot Banking Group (ARBB): 2023 – delivering strategy with strong profit growth
JDC Group – Accelerating again in FY24
Oportun Financial Corp (OPRT) – Monday, Jan 8, 2024
Fortegra And Tiptree (TIPT) – Monday, Jan 8, 2024

Morning Views Asia: Greentown China

By Leonard Law, CFA

Lucror Analytics Morning Views comprise our fundamental credit analysis, opinions and trade recommendations on high yield issuers in the region, based on key company-specific developments in the past 24 hours. Our Morning Views include a section with a brief market commentary, key market indicators and a macroeconomic and corporate event calendar.

Greentown China

Crypto Crisp: Bitcoin Leads the Market

By Mads Eberhardt

Greetings from a sunny Copenhagen, where it feels like summer is just around the corner, and the warm weather seems to be spreading to the crypto market as well.
Bitcoin has risen by approximately 4.5%, reaching $72,250, and Ethereum has seen an increase of nearly 4%, up to $3,620 during the same timeframe.
We would like to reiterate our optimistic outlook from last week, as highlighted in both Crypto Crisp and Crypto Moves #22.

Arbuthnot Banking Group (ARBB): 2023 – delivering strategy with strong profit growth

By Hardman & Co

The saying goes, the proof of the pudding is in the eating.
ABG’s 2023 results proved that the strategic positioning of the group, as a relationship bank, has created enormous value.
Key highlights were i) PBT £47.1m (2022: £20.0m), ii) operating income £178.9m (2022: £137.4m), iii) average net margin 5.7% (2022: 5.1%), iv) EPS +103% to 222.8p, v) total dividend for the year of 46p (2022: 42p), vi) net assets of £252.4m (2022: £212.0m), NAV per share of 1,547p (2022: 1,411p), vii) CET1 ratio of 13.0% (2022: 11.6%), and total capital ratio of 15.2% (2022: 14.0%).

JDC Group – Accelerating again in FY24

By Edison Investment Research

JDC Group (JDC) reported FY23 results that were in line with the preliminary results published on 8 March. After a very strong Q423, JDC expects FY24 revenue growth to accelerate to c 17% (FY23: 10.0%) and EBITDA to grow by 36% (FY23: 30.2%) at the midpoint of guidance. To reach the FY25 target of €246m in revenue, JDC also needs 17% top-line growth in FY25. JDC trades at an FY25e EV/EBITDA multiple of 13.7x on our estimates, which we believe is undemanding for what is essentially a fast-scaling platform business. Our DCF provides a valuation of €34.04/share (versus €34.09/share previously).

Oportun Financial Corp (OPRT) – Monday, Jan 8, 2024

By Value Investors Club

Writer reflects on past experience selling leads to Oportun and shares insights on company’s loan performance
Receives letter from Findell Capital in March 2023, sparking interest in potential changes at Oportun
Believes company’s board and management may comply with Findell’s requests, especially with additional shareholder pressure, and anticipates significant changes in the near future.

This content is sourced through publicly available sources and has been machine generated. Information displayed is for general informational purposes only. This article was originally published 3 months ago on Value Investors Club.

Fortegra And Tiptree (TIPT) – Monday, Jan 8, 2024

By Value Investors Club

Tiptree plans to IPO its subsidiary, The Fortegra Group, potentially driving over 50% upside for investors
Fortegra filing recent S1s and strong syndicate team indicate IPO in late January at 17.5x 2023 Adjusted Net Income
Estimates suggest Tiptree’s ownership in Fortegra could be worth around $31.87/share, making it a valuable asset for investors.

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Apr 09

Daily Brief Consumer: Riso Kyoiku, Ryohin Keikaku, P N Gadgil Jewellers, Ace Hardware Indonesia, Orion Holdings, Kayou, Flowers Foods, Freshpet Inc, Cocoa Futures and more

By Smartkarma Daily Briefs | Consumer, Daily Briefs

In today’s briefing:

Riso Kyoiku (4714) Partial Tender (¥320/Sh) Followed by Third Party Dilution To Get Hulic to 51%
Riso Kyoiku (4714 JP): Hulic (3003 JP)’s Partial Tender Offer
Sep24 Nikkei 225 Rebal – Now 1 ADD, 1 DELETE; Fastie+TEL Still Where the Fun Is
P N Gadgil Jewellers Pre-IPO Tearsheet
Ace Hardware Indonesia (ACES IJ) – New Product Cycles and Formats
Orion Holdings: Updated NAV, Higher Dividend Yield, and Exhuma Catalyst
Kayou Pre-IPO – The Positives – Strong FY22 Growth
Flower Foods: Highlighting the 4 Central Pillars of Its Growth Dynamics! – Major Drivers
Freshpet Inc.: Initiation Of Coverage – Healthy Expansion in North America & Europe And A Deep Analysis Of Its Business Strategy! – Major Drivers
The Cocoa Saga Continues – Be Careful

Riso Kyoiku (4714) Partial Tender (¥320/Sh) Followed by Third Party Dilution To Get Hulic to 51%

By Travis Lundy

Today, cram school operator Riso Kyoiku (4714 JP) and 20% owner real estate developer Hulic Co Ltd (3003 JP) amended their Capital and Business Alliance agreement.
Hulic will buy 25.5% of shares out in a Partial Offer at +43.5% vs last. Then post-tender, they will buy shares at last from the company to go to 51.%
The founder will sell his 10%. The rest is interesting. It’s a high ROE high div stock. Some own it from higher. Pro-ration is tough to estimate. But we try.

Riso Kyoiku (4714 JP): Hulic (3003 JP)’s Partial Tender Offer

By Arun George

Riso Kyoiku (4714 JP) announced a partial tender offer and third-party allotment with Hulic Co Ltd (3003 JP), the largest shareholder. Hulic aims to make Riso Kyoiku a consolidated subsidiary.
The offer is for a maximum of 39.4 million shares (23.15% post-allotment ownership ratio) at JPY320 per share, a 46.8% premium to the undisturbed price (5 April).
Irrevocable (from the founder and Chairman) represents a 9.26% post-allotment ownership ratio. The offer is light, but there is no minimum acceptance condition.

Sep24 Nikkei 225 Rebal – Now 1 ADD, 1 DELETE; Fastie+TEL Still Where the Fun Is

By Travis Lundy

The March 2024 rebal is done and dusted. When announced, there were 2 prospective DELETEs for Sep 2024. Now there is only one expected DELETE, Nippon Paper Industries (3863 JP).
The one likely inclusion is therefore Ryohin Keikaku (7453 JP). But there is more fun afoot with Fast Retailing (9983 JP) and Tokyo Electron (8035 JP).
The two stocks – of totally different sectors – interact somewhat, both in determining Nikkei 225 direction, and their relative potential selldowns.

P N Gadgil Jewellers Pre-IPO Tearsheet

By Ethan Aw

P N Gadgil Jewellers (1742652D IN) is looking to raise up to US$132m in its upcoming India IPO. The deal will be run by Motilal Oswal, Nuvama and BOB Capital.
P N Gadgil Jewellers (PNGJ from hereon) is an Indian organized jewellery player. According to Technopak, it is the second largest among prominent organized jewellery players in Maharashtra.
Its product offerings include traditional jewellery for special occasions such as weddings, engagements and festivities and modern and jewellery designs for everyday wear purpose, in gold, diamond, silver and platinum.

Ace Hardware Indonesia (ACES IJ) – New Product Cycles and Formats

By Angus Mackintosh

Ace Hardware Indonesia (ACES IJ) results revealed a positive finish to 2023 and an optimistic outlook for 2024, with new store rollout and shorter promotion periods set to boost sales.
ACES continues to roll out its new format stores and renovate existing stores with a positive result, with 20 stores expected to be renovated in 2024 and 15-20 new stores,
The company has seen strong momentum in 2M2024 with +10% SSSG and remains confident about the outlook, with positive guidance for growth. Valuations remain attractive versus history.

Orion Holdings: Updated NAV, Higher Dividend Yield, and Exhuma Catalyst

By Douglas Kim

Our NAV valuation suggests implied market cap of 1 trillion won or NAV per share of 15,983 won which is 11% higher than current price.
Orion Holdings has attractive dividend yields and payouts. The company’s dividend yield increased from 4.1% in 2021 to 4.6% in 2022 and 5.1% in 2023.
The recent phenomenal performance of the movie Exhuma has resulted in a long-awaited revived positive sentiment on Showbox (which is 57.5% owned by Orion Holdings).

Kayou Pre-IPO – The Positives – Strong FY22 Growth

By Sumeet Singh

Kayou is looking to raise up to US$500m in its upcoming HK IPO.
Kayou is a Chinese pan-entertainment product retailer of toys, with trading cards in particular as its core product.
In this note, we talk about the positive aspects of the deal.

Flower Foods: Highlighting the 4 Central Pillars of Its Growth Dynamics! – Major Drivers

Flowers Foods continued to show resilience in a challenging consumer environment in the fourth quarter and full year of 2023.
The company’s brands gained unit and dollar share for the first time since Q1 2022.
Dave’s Killer Bread was particularly noteworthy, reaching $1 billion in retail sales and growing unit volume by 10%.

Freshpet Inc.: Initiation Of Coverage – Healthy Expansion in North America & Europe And A Deep Analysis Of Its Business Strategy! – Major Drivers

Freshpet Inc. delivered robust performance for the fiscal year 2023 and the fourth quarter, notching a significant growth in net sales and improving profitability.
The management believes the pet food company reached an inflection point in its journey towards becoming a profitable business in the fresh/frozen segment of the pet food market.
Baptista Research looks to evaluate the different factors that could influence the company’s price in the near future and attempts to carry out an independent valuation of the company using a Discounted Cash Flow (DCF) methodology.

The Cocoa Saga Continues – Be Careful

By The Commodity Report

Top Commodity Trader is Long Cocoa Pierre Andurand’s hedge fund bet on higher cocoa prices ahead of a massive surge last month, according to a Bloomberg article.
Andurand said his firm expects cocoa-beans production globally to be down at least 18% on an annual basis, compared to most analysts’ expectations of 10-11%.
“This means that we will finish the year with the lowest stocks-to-grinding ratio ever, and potentially run out of inventories late in the year,” he added.

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Apr 09

Daily Brief Australia: Azure Minerals, Ansell Ltd, Amaero International Ltd, ADX Energy Ltd, Fluence Corp and more

By Smartkarma Daily Briefs | Australia, Daily Briefs

In today’s briefing:

Azure Minerals (AZS AU): FIRB Approval Concerns Are Overdone
Ansell Placement – Undertaking a Large Acquisition as Sector Headwinds Remain
Amaero Internaitonal (ASX:3DA) RaaS Interview Transcript 8 April 2024
ADX Energy (ASX: ADX): Restarting production at Anshof
Amaero International Ltd – Binding off-take agreement boosts strategic C103 position
Fluence Corp Ltd – Watershed complete, growth strategy in play

Azure Minerals (AZS AU): FIRB Approval Concerns Are Overdone

By Arun George

Azure Minerals (AZS AU) shareholders have overwhelmingly approved the dual-track bid from Sociedad Quimica y Minera de Chile (SQM US) and Hancock. The scheme offer is A$3.70 per share.
The shares fell 7%, seemingly due to concerns about FIRB approval sparked by FIRB’s request for an extension on 3 April and today’s AFR article on China’s Australian lithium holdings.
FIRB approval should be forthcoming due to Tianqi Lithium (9696 HK) small indirect interest in Andover, Lithium Power International (LPI AU) precedent, and SQM and Tianqi’s strained relationship.

Ansell Placement – Undertaking a Large Acquisition as Sector Headwinds Remain

By Clarence Chu

Ansell Ltd (ANN AU) is looking to raise US$262m in its primary follow-on to partially fund its acquisition of KCPPE.
Despite the firm having been on an acquisition spree, it remains uncertain to us if the market has been factoring in such a large one.
The deal would be a large one to digest, representing 52.5 days of the stock’s three month ADV.

Amaero Internaitonal (ASX:3DA) RaaS Interview Transcript 8 April 2024

Interview discusses the offtake agreement and opportunity to expand beyond the current arrangement, the $20m capital raised and outlook for future funding needs, update on strategic equity/debt in the US and milestones to expect over the next six months.

ADX Energy (ASX: ADX): Restarting production at Anshof

By Auctus Advisors

The Permanent Production Facility (PPF), with a capacity of 3,000 bbl/d of liquids, has been commissioned and the Anshof-3 well has recommenced production at a rate of 134 bbl/d with no water.
The operation has been undertaken in line with expectations and within budget.
The oil production rate at Anshof-3 is 16% above the rate prior to shut-in.

Amaero International Ltd – Binding off-take agreement boosts strategic C103 position

Amaero International Ltd (ASX:3DA) is a global specialist in advanced materials manufacturing for the defence, aerospace, and other industrial sectors, developing a critical metals alloy powder manufacturing facility in Tennessee, USA. The company has secured a binding offtake agreement for the supply of C103 additive manufacturing powder, a key milestone in the development of its critical metals powder manufacturing presence in the US. Concurrently, Amaero has raised $20m by way of a placement to institutional investors, which the company anticipates will be the last equity capital raise in the Australian market.
Going forward, Amaero says it intends to seek equity capital from strategic US investors.
We continue to incorporate Amaero’s guidance that it expects to report an EBITDA loss of $14m in CY2024 and to break-even in CY2025.

Fluence Corp Ltd – Watershed complete, growth strategy in play

Fluence Corporation (ASX:FLC) provides water and wastewater treatment, and reuse solutions, for the municipal, commercial, and industrial markets worldwide.
The company has a proven suite of products and expertise, both proprietary and otherwise, which it has used to deliver more than 850 projects globally.
After some historical missteps, FLC has now been completely rejuvenated through the appointment of a highly regarded and proven US-based management team and reinvigorated board.

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

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✓ Unlimited Research Summaries
✓ Personalised Alerts
✓ Custom Watchlists
✓ Company Data and News
✓ Events & Webinars

Apr 09

Daily Brief Thailand: Bangchak Corporation and more

By Smartkarma Daily Briefs | Daily Briefs, Thailand

In today’s briefing:

SET50 Index Rebalance Preview: Three Potential Changes in June

SET50 Index Rebalance Preview: Three Potential Changes in June