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Smartkarma Daily Briefs

Apr 09
0

Daily Brief Event-Driven: Riso Kyoiku (4714) Partial Tender (¥320/Sh) Followed by Third Party Dilution To Get Hulic to 51% and more

By | Daily Briefs, Event-Driven

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
  • Azure Minerals (AZS AU): FIRB Approval Concerns Are Overdone
  • Samsung Electronics: Block Deal Sale of 5.2 Million Shares by Lee Boo-Jin
  • KOSDAQ150 Index Rebalance Preview: Potential Adds Still Outperforming
  • STAR100 Index Rebalance Preview: 10 Changes as Potential Adds Outperform
  • Special Changes in KOSDAQ 150: Deletion (NKMAX) + Addition (GI Innovation)
  • SET50 Index Rebalance Preview: Three Potential Changes in June
  • Naspers (NPN) X Prosus (PRX): Performance for Q1 2024, Gains Driven by Tencent, NAV Growth

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

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

By Arun George

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. 

KOSDAQ150 Index Rebalance Preview: Potential Adds Still Outperforming

By Brian Freitas

  • 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

By Brian Freitas

  • 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.

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.

SET50 Index Rebalance Preview: Three Potential Changes in June

By Brian Freitas

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.

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Apr 09
0

Daily Brief Macro: Technically Speaking: The Early Bird Gets the Worm and more

By | Daily Briefs, Macro

In today’s briefing:

  • Technically Speaking: The Early Bird Gets the Worm, China Retail Buys Hong Kong
  • Steno Signals #94 – Trading the FAKE business cycle
  • Energy Cable: Melt UP in commodities upcoming?
  • HEW: Data Keeps Doves Locked up
  • The Week at a Glance: US CPI to Surprise Hawkishly Paired with a Surprise Rate Cut?
  • The Week That Was in ASEAN@Smartkarma – Ace Hardware’s Lifestyle, AKR Corporindo, and Sai Gon Cargo
  • The Cocoa Saga Continues – Be Careful
  • Monday Macro: Thoughts on the Next 15 Months

Technically Speaking: The Early Bird Gets the Worm, China Retail Buys Hong Kong

By David Mudd

  • Hong Kong market is at historically cheap valuations. So what’s new?
  • Capitulation bottom in late January/early February dramatically reduced shorts and now long positioning starts.
  • China retail buying is taking a cue from China’s government buying programs and SOE company directives.

Steno Signals #94 – Trading the FAKE business cycle

By Andreas Steno

  • Happy Sunday and welcome to our flagship editorial!The fake business cycle strikes again.
  • In 2022/2023, the market was lured into the recession narrative by a weakening sentiment in various cyclical gauges such as the ISM Manufacturing.
  • Classic recession models are designed to try and use the cyclical momentum to assess the health of the broader economy 6-12 months later but the problem is that the cyclical economy is increasingly irrelevant for the economy.

Energy Cable: Melt UP in commodities upcoming?

By Ulrik Simmelholt

  • Take aways: Booking profits in crude, staying long in broader metals. Crude predicting ISM to turn in 6-9 months time. Sluggish German IP ahead. Last week, we reached our profit level in crude oil, leading us to exit the trade successfully.
  • Our outlook remains bullish on commodities, spurred by what we perceive as a reflation head fake.
  • This optimism has prompted us to enter a long proxy-position in the Bloomberg Commodity Index (BCOM), as we observe the rally widening across the commodity complex (Chart 1).

HEW: Data Keeps Doves Locked up

By Phil Rush

  • Data releases in the past two weeks have shown resilient trends, with output surveys and payrolls generally exceeding expectations, suggesting that rate cuts should remain on hold due to policy not being too tight.
  • The upcoming week is expected to be relatively quiet in terms of data releases, but several countries including the Euro area, Canada, New Zealand, Thailand, Philippines, South Korea and Peru will be making monetary policy decisions.
  • The European Central Bank (ECB) is expected to maintain its data dependence approach rather than committing to a rate cut in June.

The Week at a Glance: US CPI to Surprise Hawkishly Paired with a Surprise Rate Cut?

By Andreas Steno

  • Welcome to our new “The week at a glance” publication.
  • We will briefly guide you on our nowcasts and expectations for key events in the week ahead.
  • Short and sweet as you know us! This week we look at the US CPI report, ECB- and BoC meetings and Scandi inflation from Norway and Sweden.

The Week That Was in ASEAN@Smartkarma – Ace Hardware’s Lifestyle, AKR Corporindo, and Sai Gon Cargo

By Angus Mackintosh

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.

Monday Macro: Thoughts on the Next 15 Months

By Adventurous Investor

  • I want to start this Monday’s Macro with a very top-down discussion before digging into helpful market data.
  • Here’s the thought – we’re entering a potentially dangerous, extended 12-to-15-month period for big macro debates.
  • What matters for markets globally is what happens in the US, and what matters in the US is what the US Federal Reserve is thinking.

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Apr 09
0

Daily Brief Equity Bottom-Up: Aster DM Healthcare’s Special Dividend & Restructuring and more

By | Daily Briefs, Equity Bottom-Up

In today’s briefing:

  • Aster DM Healthcare’s Special Dividend & Restructuring
  • TSMC (2330.TT; TSM.US): US$6.6bn from US CHIPS Act; the Earthquake Impact and the 2nd Japanese Fab.
  • Gland Pharma Ltd (GLAND IN): Business Recovery Seems To Be Overlooked by Mr. Market
  • Beaten Down Semiconductor Could be AI Play
  • Memory Monitor: Nanya’s Results to Provide Latest Color on DRAM Post Earthquake; Short Int Rising
  • Orion Holdings: Updated NAV, Higher Dividend Yield, and Exhuma Catalyst
  • Ace Hardware Indonesia (ACES IJ) – New Product Cycles and Formats
  • 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
  • Amaero Internaitonal (ASX:3DA) RaaS Interview Transcript 8 April 2024

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.

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.

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.

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.

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). 

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. 

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

By Baptista Research

  • 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

By Baptista Research

  • 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.

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

By Research as a Service (RaaS)

  • 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.

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Apr 09
0

Daily Brief Crypto: Crypto Crisp: Bitcoin Leads the Market and more

By | Crypto, Daily Briefs

In today’s briefing:

  • Crypto Crisp: Bitcoin Leads the Market

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.

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Apr 08
0

Daily Brief Utilities: China Power International and more

By | Daily Briefs, Utilities Sector

In today’s briefing:

  • China Power International (2380 HK): Powering Forward

China Power International (2380 HK): Powering Forward

By Osbert Tang, CFA

  • China Power International (2380 HK)‘s earnings should accelerate in FY24, and rebound in hydropower is a key driver. Hydropower generation surged 84.3% YoY in 2M24.
  • The 9.3GW of capacity acquired in Oct will provide first full-year contribution in FY24. Better economics for coal-fired plants will add to profit momentum.
  • The 6pp increase in dividend payout signals management’s positive view in the outlook, and the Chairman is explicitly confident in good FY24 profit growth. 

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Apr 08
0

Daily Brief Energy/Materials: Zijin Mining Group Co Ltd H, GS Holdings, JSR Corp, Empire Energy, Sealed Air Corp, Tredegar Corp and more

By | Daily Briefs, Energy & Materials Sector

In today’s briefing:

  • HSCEI Index Rebalance Preview: One Change or Two in June?
  • Observations on Post-Election Flows of Value-Up Stocks, Based on Recent Local Institutional Trades
  • Merger Arb Mondays (08 Apr) – JSR, Jastec, Shinko, Azure, Genex, Best World, Isetan
  • Empire Energy Group ASX:EEG RaaS Interview Transcript 8 April 2024
  • Sealed Air (SEE): A Melting Ice Cube Hiding In Plain Sight
  • Tredegar Corp (TG) – Sunday, Jan 7, 2024

HSCEI Index Rebalance Preview: One Change or Two in June?

By Brian Freitas

  • SenseTime Group (20 HK) is a potential deletion in June while Zijin Mining Group Co Ltd H (2899 HK) is a potential inclusion.
  • For yet another review, BeiGene (6160 HK) is a close add with the Velocity Test determining if the stock will be added to the index or not.
  • Estimated one-way turnover at the rebalance is 2.95% resulting in a one-way trade of HK$1.6bn. Official capping will be based off the close of trading on 4 June.

Observations on Post-Election Flows of Value-Up Stocks, Based on Recent Local Institutional Trades

By Sanghyun Park

  • Opposition’s probable win in the election sparks concerns about Value-up initiative’s momentum. However, market sentiment doesn’t universally echo these worries.
  • Value-Up stocks’ recent corrections likely stem from Q4 dividend arbitrage liquidation, rather than election result concerns.
  • Post-Election, even if the opposition wins, the left-leaning Value-up program might continue, limiting the opposition’s influence, as seen in recent National Pension Service flows.

Merger Arb Mondays (08 Apr) – JSR, Jastec, Shinko, Azure, Genex, Best World, Isetan

By Arun George

Empire Energy Group ASX:EEG RaaS Interview Transcript 8 April 2024

By Research as a Service (RaaS)

  • Discussion on progress of Beetaloo project and update on FID, discussion on outlook for gas supply in east coast Australia, comments on recent substantial shareholder notice from Sheffield Resources.

Sealed Air (SEE): A Melting Ice Cube Hiding In Plain Sight

By Bleecker Street Research

  • Sealed Air (SEE) is a disaster in motion: its entire business is facing extinction as customers move away from the thin-film plastics the company makes.
  • Sealed Air’s e-Commerce business has collapsed as Amazon has moved away from the single-use plastics, formerly ever present in its packaging. 
  • California just passed two recycling and labeling bills that we think will make Sealed Air’s products unlikely to be used in the State and possibly in the US as a whole.

Tredegar Corp (TG) – Sunday, Jan 7, 2024

By Value Investors Club

  • Tredegar Corporation has been selling off businesses, annuitizing pension plans, and seeing key executives retire in recent years
  • With only two remaining businesses, the company is estimated to be worth $11-13 after accounting for debt, before tax implications
  • These actions indicate a significant shift in Tredegar’s strategy and possible future liquidation piece by piece

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.

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Apr 08
0

Daily Brief Industrials: J&T Global Express , Adani Enterprises, APM Human Services Internation and more

By | Daily Briefs, Industrials

In today’s briefing:

  • J&T Global Express (1519 HK): The US$9.9 Billion Lock up Expiry
  • SENSEX Index Rebalance Preview: Wipro Deletion to Bring Sector Balance into Play
  • APM (APM AU): Madison Dearborn’s “Disappointing” NBIO

J&T Global Express (1519 HK): The US$9.9 Billion Lock up Expiry

By Arun George

  • J&T Global Express (1519 HK)’s 180-day IPO lock-up period for 88% of outstanding shares expires on 24 April. The shares exiting the lock-up period are worth US$9.9 billion.
  • The likely sellers will be the Series pre-A1, pre-A2, A and B investors as are they are materially in the money at the last close price.
  • J&T has returned to organic growth with a shift to profits and declining cash burn. While the last close is 17% below the IPO price, the shares are fairly valued. 

SENSEX Index Rebalance Preview: Wipro Deletion to Bring Sector Balance into Play

By Brian Freitas

APM (APM AU): Madison Dearborn’s “Disappointing” NBIO

By David Blennerhassett

  • On the 28th Feb, PE-outfit CVC Asia Pacific bumped its NBIO to A$2.00/share, and was granted exclusive due diligence. On the 27th Mar, CVC said they were “unable to proceed“. 
  • Today, the 8th April, Madison Dearborn Partners, holding ~29%, has pitched an non-indicative, non-binding Offer at A$1.40/share, in cash, by way of a Scheme. An unlisted scrip option is available.
  • A key condition is APM Human Services (APM AU)‘s executive-chair Megan Wynne, founding related parties, and key management, electing scrip. The Independent Board Committee reckons the Offer Price is disappointing.

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Apr 08
0

Daily Brief Industrials: J&T Global Express , Adani Enterprises, APM Human Services Internation and more

By | Daily Briefs, Industrials

In today’s briefing:

  • J&T Global Express (1519 HK): The US$9.9 Billion Lock up Expiry
  • SENSEX Index Rebalance Preview: Wipro Deletion to Bring Sector Balance into Play
  • APM (APM AU): Madison Dearborn’s “Disappointing” NBIO

J&T Global Express (1519 HK): The US$9.9 Billion Lock up Expiry

By Arun George

  • J&T Global Express (1519 HK)’s 180-day IPO lock-up period for 88% of outstanding shares expires on 24 April. The shares exiting the lock-up period are worth US$9.9 billion.
  • The likely sellers will be the Series pre-A1, pre-A2, A and B investors as are they are materially in the money at the last close price.
  • J&T has returned to organic growth with a shift to profits and declining cash burn. While the last close is 17% below the IPO price, the shares are fairly valued. 

SENSEX Index Rebalance Preview: Wipro Deletion to Bring Sector Balance into Play

By Brian Freitas

APM (APM AU): Madison Dearborn’s “Disappointing” NBIO

By David Blennerhassett

  • On the 28th Feb, PE-outfit CVC Asia Pacific bumped its NBIO to A$2.00/share, and was granted exclusive due diligence. On the 27th Mar, CVC said they were “unable to proceed“. 
  • Today, the 8th April, Madison Dearborn Partners, holding ~29%, has pitched an non-indicative, non-binding Offer at A$1.40/share, in cash, by way of a Scheme. An unlisted scrip option is available.
  • A key condition is APM Human Services (APM AU)‘s executive-chair Megan Wynne, founding related parties, and key management, electing scrip. The Independent Board Committee reckons the Offer Price is disappointing.

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Apr 08
0

Daily Brief TMT/Internet: Jastec Co Ltd, Hanmi Semiconductor, Taiwan Semiconductor (TSMC) – ADR, Nintendo , United Microelectronics Corp, Shift4 Payments and more

By | Daily Briefs, TMT/Internet

In today’s briefing:

  • NTT Data’s ¥1,940/Share Deal For Jastec (9717) – Not Enough But Probably Enough
  • KOSPI200 Index Rebalance Preview: Hanmi Semiconductor (042700 KS) Flying High
  • Taiwan Dual-Listings Monitor: TSMC, ASE Spreads Bounce Back to Historically Extreme Highs
  • Nintendo Co Ltd (NTDOY) – Sunday, Jan 7, 2024
  • UMC (2303.TT; UMC.US): Some Rush Orders Coming in and 2Q24F Could Post Positive QoQ.
  • Payment Companies – Potential IPOs, Select Companies Being Taken Private and Sector Overview

NTT Data’s ¥1,940/Share Deal For Jastec (9717) – Not Enough But Probably Enough

By Travis Lundy

  • NTT Data Corp (9613 JP) on Friday announced a Tender Offer to take over small custom software developer and system integrator Jastec Co Ltd (9717 JP). 
  • It’s at a premium. But for a growing company ahead of “The 2025 Problem” where synergies are expected, you’d want to get a premium vs where comps trade. You don’t.
  • But this gets to near 50% just from friendlies. Someone who wanted to interfere would have to be publicly noisy. I expect this gets done.

KOSPI200 Index Rebalance Preview: Hanmi Semiconductor (042700 KS) Flying High

By Brian Freitas

Taiwan Dual-Listings Monitor: TSMC, ASE Spreads Bounce Back to Historically Extreme Highs

By Vincent Fernando, CFA

  • TSMC: +16.2%, Bounced Back to Historically Extreme Level, Consider Short
  • UMC: -0.3% Discount, Flipped to Positive and Now Negative Again
  • ASE: +15.3% Premium; Bounced Back to Extreme Highs, Short the Spread

Nintendo Co Ltd (NTDOY) – Sunday, Jan 7, 2024

By Value Investors Club

  • AAOI recommends investing in Nintendo ahead of the launch of the Switch 2 console cycle in mid to late 2024
  • Analyst sees potential for multiple expansion, margin improvement, and continued monetization of intellectual property through theme parks and movies
  • Bullish on Nintendo’s stock in absolute terms and relative to other companies in the video game and media sectors, predicting significant gains based on past launch cycles.

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.

UMC (2303.TT; UMC.US): Some Rush Orders Coming in and 2Q24F Could Post Positive QoQ.

By Patrick Liao

  • United Microelectronics Corp (2303 TT)‘s 2Q24F outlook is experiencing a slight upward now, possibly indicating a positive QoQ.  
  • UMC’s notable contributors are showing a mixed outlook, and Novatek Microelectronics Corp (3034 TT) could be the most influencer.
  • Attention should be paid to the 3Q24F outlook for any potential changes and a shift from a bearish view could positively impact the outlook, potentially signaling the end of downturn.  

Payment Companies – Potential IPOs, Select Companies Being Taken Private and Sector Overview

By Victor Galliano

  • We explore Klarna’s and Stripe’s IPO prospects and valuations based on recent share transactions; Nuvei and Cielo are close to being taken private, with Worldpay now controlled by private equity
  • Nuvei and Worldpay both grew by acquisition but failed to deliver on the market’s expected returns, in our view, ending up under PE ownership; is Nexi a potential PE target?
  • We retain Visa as a core holding and also keep PagSeguro and PayPal as buys, replacing Cielo with new peer group addition Shift4; we keep our sell rating on Affirm

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Apr 08
0

Daily Brief Health Care: Sino Biopharmaceutical, APT Medical and more

By | Daily Briefs, Healthcare

In today’s briefing:

  • China Healthcare Weekly (Apr.6) – Boom of TCM Injections Is Coming, Defects in GLP-1s, Sino Biopharm
  • STAR50 Index Rebalance Preview: APT Medical Moving Higher

China Healthcare Weekly (Apr.6) – Boom of TCM Injections Is Coming, Defects in GLP-1s, Sino Biopharm

By Xinyao (Criss) Wang

  • The biggest changes in 2023 medical insurance catalog are the lifting of payment restrictions on TCM injections, which would drive rapid sales growth in the hospital market this year.
  • GLP-1s are not flawless, and patients will lose not only fat but also muscle during weight-loss process. Then, another noteworthy opportunity has emerged – reduce fat and increase muscle.
  • In 2024, Sino Biopharm is expected to achieve single-digit revenue growth. Deficiencies in corporate governance are one reason why the market is reluctant to offer Sino Biopharm high valuation.

STAR50 Index Rebalance Preview: APT Medical Moving Higher

By Brian Freitas

  • 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 expect the index committee to continue using a 6-month minimum listing history resulting in three changes to the index.
  • With a big jump in tracking AUM over the last few months, passives will need to trade a lot of stock on implementation date.

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