All Posts By

Smartkarma Daily Briefs

Mar 11
0

Daily Brief Macro: Spendthrift US Fiscal Policy Raises Ante on Fed to Prevent Financial System Liquidity Squeeze and more

By | Daily Briefs, Macro

In today’s briefing:

  • Spendthrift US Fiscal Policy Raises Ante on Fed to Prevent Financial System Liquidity Squeeze
  • Doesn’t Fed Policy Matter to Stocks Anymore?

Spendthrift US Fiscal Policy Raises Ante on Fed to Prevent Financial System Liquidity Squeeze

By Said Desaque

  • Since the suspension of the debt ceiling last June, federal debt has been increasing at a very rapid rate, an outcome that could eventually have implications for US financial conditions.
  • High issuance of T-bills by the Treasury to the public will drain bank reserves, thereby raising the ante on the Fed to make offsetting open-market purchases to reduce liquidity stress.
  • The biggest threat to US risky assets is an undershooting of corporate profit expectations. Fiscal policy conduct is supportive for economic growth and profits, as well as risky asset prices.  

Doesn’t Fed Policy Matter to Stocks Anymore?

By Cam Hui

  • Does Fed policy matter to stock prices anymore? They do, and the current market advance is consistent with a growing economy and the expectations of rate cuts this summer.
  • The market’s focus has pivoted away from interest rates to forecast earnings growth, which is positive. 
  • This stock market is tracking market behaviour during a mid-cycle expansion that’s driven by P/E expansion while earnings estimates rise and catch up.

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

Sign Up for Free

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

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


Mar 11
0

Daily Brief Australia: Emerald Resources Nl, IDP Education, Pioneer Credit, Pro Medicus Ltd and more

By | Australia, Daily Briefs

In today’s briefing:

  • MV Global Junior Gold Miners Index Rebalance: Over US$500m to Trade
  • MV Australia Equal Weight Index Rebalance: Float & Capping Changes to Drive Flow
  • Pioneer Credit Ltd – Strengthening profit outlook
  • Pro Medicus Ltd (PME AU): Expanding Footprint in North America Is Making The Image Crystal Clear

MV Global Junior Gold Miners Index Rebalance: Over US$500m to Trade

By Brian Freitas

  • Emerald Resources Nl (EMR AU) will be added to the VanEck Vectors Junior Gold Miners ETF (GDXJ US) in March while there are 3 deletions for the index.
  • The constituent changes along with float and capping changes result in an estimated one-way turnover of 6.4% and a one-way trade of US$263m.
  • There are 9 stocks with more than US$10m to trade and 9 stocks with over 2x ADV to trade.

MV Australia Equal Weight Index Rebalance: Float & Capping Changes to Drive Flow

By Brian Freitas

  • There are no constituent changes for the MVIS Australia Equal Weight Index at the March rebalance. 
  • Float and capping changes will result in a one-way turnover of 4.4% and in a round-trip trade of A$195m.
  • We had Lendlease Group (LLC AU), IDP Education (IEL AU) and nib holdings (NHF AU) as close deletes and they will now have inflows due to capping.

Pioneer Credit Ltd – Strengthening profit outlook

By Research as a Service (RaaS)

  • Pioneer Credit Limited (ASX:PNC) is one of the leading acquirers and managers of impaired credit in Australia and has gained its status by maintaining positive customer engagement, an unblemished compliance record with ASIC, and strong relationships with Australia’s largest bank and non-bank lenders.
  • PNC purchases debt from numerous Australian vendor partners (18 different vendors in the past 12 months) with long-term partnership purchasing arrangements in place with Commonwealth Bank of Australia (ASX:CBA).
  • Pioneer’s success in purchasing large debt portfolios at attractive IRRs since October highlights the strong position the company occupies in the marketplace.

Pro Medicus Ltd (PME AU): Expanding Footprint in North America Is Making The Image Crystal Clear

By Tina Banerjee

  • Pro Medicus Ltd (PME AU) reported record high revenue and net profit in H1FY24. The result was largely driven by a 37% YoY increase in revenue from North America.
  • In H1FY24, PME won four key contracts. These contracts have a total contract value of A$200M (at committed minimum exam volumes) with contract terms ranging from 7 to 10 years.
  • PME believes H2FY24 will be stronger than H1FY24. Assuming key contracts up for renewal are renewed at same rate, PME sees forward revenue of >A$608M over the next five years.   

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

Sign Up for Free

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

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


Mar 11
0

Daily Brief Singapore: Japfa Ltd, Comfortdelgro Corp, DBS and more

By | Daily Briefs, Singapore

In today’s briefing:

  • Japfa (JAP SP): Evaluating a Potential Privatisation
  • REIT Watch – Frasers Centrepoint Trust to join STI from Mar 18
  • Director Filings & Buybacks Continue Stronger Pace

Japfa (JAP SP): Evaluating a Potential Privatisation

By Arun George

  • On March 8, Bloomberg reported that Japfa Ltd (JAP SP) owners were considering taking it private and started talks about a loan of around US$150 million. 
  • Japfa has faced ongoing profitability issues since 2022 due to cost-of-living pressures. Privatisation interest is unsurprising, as the shares have been down 72% over the last three years. 
  • An attractive premium would be required, irrespective of the offer structure. At a S$0.26 offer (20% premium to last close), Japfa would trade in line with peer multiples.  

REIT Watch – Frasers Centrepoint Trust to join STI from Mar 18

By Geoff Howie

  • REIT Watch – Frasers Centrepoint Trust to join STI from Mar 18 At a market capitalisation of S$3.9 billion, FCT will join the STI with an approximate weight of 0.8 per cent.
  • FCT is also the second Frasers Property-sponsored Reit to join the benchmark after Frasers Logistics & Commercial Trust.
  • The STI reserve list, which consists of the five highest ranking non-constituents of the STI, will be: CapitaLand Ascott Trust, ComfortDelGro, Keppel DC Reit, Keppel Reit, and Suntec Reit.

Director Filings & Buybacks Continue Stronger Pace

By Geoff Howie

  • Director filings and buybacks continue at stronger pace INSTITUTIONS were net sellers of Singapore stocks over the five trading sessions through to Mar 7, with S$224 million of net institutional outflow, as 26 primary-listed companies conducted buybacks with a total consideration of S$24.4 million, quadrupling the buyback consideration of the preceding five sessions.
  • This increased his total interest from 53.27 per cent to 53.61 per cent.
  • This followed his acquisition of 4.5 million shares between Feb 27 and 28.

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

Sign Up for Free

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

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


Mar 11
0

Daily Brief India: HDFC Bank and more

By | Daily Briefs, India

In today’s briefing:

  • HDFC Bank (HDFCB IN): Initiating Coverage – Long Term Compounder; But “Short” For Now

HDFC Bank (HDFCB IN): Initiating Coverage – Long Term Compounder; But “Short” For Now

By Raj Saya, CA, CFA

  • HDFC Bank (HDFCB IN) has been the most successful bank in India over the last two decades, delivering best-in-class performance consistently; Things changed drastically with the merger with HDFC Ltd.
  • The negatives outweigh the positives in the near-term from the merger; the synergies, which are significant, are long-term in nature and hence would take time to play out.
  • We remain long-term believers, but it is a “Short” in the short-term as we expect further -20% correction in valuations

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

Sign Up for Free

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

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


Mar 11
0

Daily Brief United States: NVIDIA Corp, Invesco QQQ Trust Series 1, S&P 500 INDEX and more

By | Daily Briefs, United States

In today’s briefing:

  • MV US Listed Semiconductor 25 Index Rebalance: Over US$1bn to Sell in NVIDIA
  • A Hindenburg Moment For Growth Stocks?
  • EQD | S&P500 WEEKLY Pull Back: BUY the Dip

MV US Listed Semiconductor 25 Index Rebalance: Over US$1bn to Sell in NVIDIA

By Brian Freitas

A Hindenburg Moment For Growth Stocks?

By Cam Hui

  • Our base-case scenario calls for a period of minor weakness in the S&P 500 or sideways consolidation, marked by a rolling correction.
  • A review of market internals reveals weakness in growth stocks and better performance by value and cyclical stocks.
  • The risk is a major scare in the extended growth names which drag down the S&P 500 further than we expect.

EQD | S&P500 WEEKLY Pull Back: BUY the Dip

By Nico Rosti

  • The SPX  has been rallying for 4 months, rising >+24%, is is OVERBOUGHT but we see the current pullback as a BUY opportunity.
  • The index could pullback another 1-2 weeks before it restarts the rally.
  • Price areas to buy are between 5069 and 5000, lower prices may indicate a deeper correction is unfolding (lasting up to 3 weeks down in total).

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

Sign Up for Free

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

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


Mar 11
0

Daily Brief Indonesia: Pertamina Geothermal Energy PT and more

By | Daily Briefs, Indonesia

In today’s briefing:

  • Morning Views Asia: Pertamina Geothermal Energy PT, Sunny Optical Technology Group, West China Cement

Morning Views Asia: Pertamina Geothermal Energy PT, Sunny Optical Technology Group, West China Cement

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.

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

Sign Up for Free

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

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


Mar 11
0

Daily Brief Japan: Dai Nippon Printing, Shinko Electric Industries, TSE Tokyo Price Index TOPIX, Softbank Group, Trial Holdings, Japan Airlines, Pan Pacific International Holdings and more

By | Daily Briefs, Japan

In today’s briefing:

  • Dai-Nippon Printing (7912) – Whoomp There It Is! Part Deux
  • Merger Arb Mondays (11 Mar) – Shinko, JSR, Azure, Genex, OreCorp, Hollysys, CPMC, Vinda
  • EQD | A Systematic Look at the Post Earnings Announcement Drift Across Asia
  • ECM Weekly (11th Mar 2024) – Oriental Land, ARM, Tuhu, Wiwynn, Macrotech, Zomato, Trial Holding
  • Weekly Deals Digest (10 Mar) – Trial, ARM, JSR, Nippon Express, Alumina, Azure, Genex, Vinda
  • JAL Mall: Gold from 30m Mileage Members
  • Pan Pacific International Holdings (7532): Revision to Full-Year FY06/24 Company Forecast

Dai-Nippon Printing (7912) – Whoomp There It Is! Part Deux

By Travis Lundy

  • At end-January 2023 it became clear activist Elliott Management had set its sights on Dai Nippon Printing (7912 JP). The stock popped and people got bullish.
  • I warned about the “complicated” nature of gains going forward here. Three weeks later they announced details of including ¥100bn of buybacks per year for 3yrs. That’s discussed here.
  • I rarely write bearishly about a huge buyback program but from next day open, over 1yr, total return has been 4.9%. Stage 2 starts 11 March with ¥50bn through end-Sep24. 

Merger Arb Mondays (11 Mar) – Shinko, JSR, Azure, Genex, OreCorp, Hollysys, CPMC, Vinda

By Arun George

EQD | A Systematic Look at the Post Earnings Announcement Drift Across Asia

By Nicholas Pezolano

  • A cross-country study on the post earning announcement drift effect.
  • We explore the use of various options-implied analytics to systematically view returns around earnings announcements.  
  • Options-Implied Analytics can provide empowering information to better inform investment decisions.

ECM Weekly (11th Mar 2024) – Oriental Land, ARM, Tuhu, Wiwynn, Macrotech, Zomato, Trial Holding

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, Trial Holdings (5882 JP) was hoping for better luck with its listing this time around.
  • For placements, it was a very busy week for a change with most regions, apart from Hong Kong, chipping in.

Weekly Deals Digest (10 Mar) – Trial, ARM, JSR, Nippon Express, Alumina, Azure, Genex, Vinda

By Arun George

JAL Mall: Gold from 30m Mileage Members

By Michael Causton

  • Amidst intense competition in online mall retailing, JAL and ANA both launched their own e-commerce malls last year to replace once popular catalogues.
  • Although a tough market to enter given the competition from the big 3 (Amazon, Rakuten and Yahoo), airlines have distinct advantages over other small malls.
  • In particular, they have data on millions of consumers and access to premium customers willing to spend ¥1 million on a case of wine.

Pan Pacific International Holdings (7532): Revision to Full-Year FY06/24 Company Forecast

By Shared Research

  • Pan Pacific International Holdings (7532 JP)  is one of Japan’s top retailers whose core business is the Don Quijote discount store chain.
  • The company recorded FY06/23 sales of JPY1,936.8bn, operating profit of JPY105.3bn, recurring profit of JPY111.0bn, and net income attributable to owners of the parent of JPY66.2bn.
  • Pan Pacific International Holdings Corporation has announced a revision to its full-year earnings forecast for FY06/24, which was announced on August 16, 2023.

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

Sign Up for Free

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

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


Mar 11
0

Daily Brief China: Tencent, CNOOC Ltd, Uni President China, PegBio, JD.com Inc (ADR), PDD Holdings, Microport Scientific, Water Oasis and more

By | China, Daily Briefs

In today’s briefing:

  • WisdomTree Indexes Special Rebalance: ESG Considerations Dropped
  • A/H Premium Tracker (To 8 Mar 2024):  Liquid AH Premia Still Wide
  • HK Connect SOUTHBOUND Flows (To 8 Mar 2024); Big Net Buys of SOEs, Finally Tencent a Net Buy
  • Uni-President China (220 HK):  8% Dividend Yield Looks Sustainable
  • PegBio IPO Preview: A Founder-Led Biopharma Player Fighting T2DM and Obesity in China
  • Tencent (700 HK) 4Q23 Earnings Preview: Stable Growth and Margin Improvement Will Continue
  • China Consumption Weekly (11 Mar 2024): JD.com, JD Logisitics, BYD, Alibaba, NIO
  • Pinduoduo (PDD US): Pricing in an Imminent Slowdown
  • China Healthcare Week (Mar.8) – GLP-1s, “Crowding Out Effect” in Healthcare, Microport’s Trouble
  • Shortlist Of High Conviction Ideas: Income, Value, and Margin of Safety – March 2024

WisdomTree Indexes Special Rebalance: ESG Considerations Dropped

By Brian Freitas

  • WisdomTree has dropped ESG considerations while selecting stocks for the EMXSOE, CHXSOE and WTEMXC indices.
  • That results in a lot of inclusions and fewer deletions across indices that will be implemented at the close on 15 March.
  • The round-trip trade across the indices will exceed US$500m with Tencent (700 HK) as the largest buy.

A/H Premium Tracker (To 8 Mar 2024):  Liquid AH Premia Still Wide

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 a net buyer every day since the end of Chinese New Year. NORTHBOUND a net seller this week for the first week in 6. AH premia slightly down.
  • Wide spreads continue to narrow and narrow spreads continue to widen.

HK Connect SOUTHBOUND Flows (To 8 Mar 2024); Big Net Buys of SOEs, Finally Tencent a Net Buy

By Travis Lundy

  • A shares were up small on the week. HK stock indices were down. 
  • Net SOUTHBOUND buying was HK$17.1bn in the third post-holiday week. SOUTHBOUND has net bought every day since the end of Chinese New Year.
  • SOUTHBOUND continues to buy high-div SOEs. ex-div is still three months away, and given the new KPIs discussed late January by SASAC official, these still seem to be appropriate targets.

Uni-President China (220 HK):  8% Dividend Yield Looks Sustainable

By Steve Zhou, CFA

  • Uni President China (220 HK), a F&B company in China, has an impressive track record of paying near 100% or over 100% of net profit in dividends since 2018. 
  • The company has two segments, food (mainly instant noodle), and beverage.  Overall sales grew 1% yoy in 2023 while net profit jumped 36% yoy. 
  • Given the reasonable valuation (13x forward PE), a near 40% net cash position, and most importantly a stable 8% dividend yield, the stock looks attractive.

PegBio IPO Preview: A Founder-Led Biopharma Player Fighting T2DM and Obesity in China

By Andrei Zakharov

  • PegBio, a VC-backed biotech company, plans to tap capital markets in Hong Kong. CICC is leading the offering, and an IPO date has yet to be announced.
  • The company’s pipeline features promising drug candidates designed for the treatment of type 2 diabetes mellitus (T2DM), obesity, NASH, OIC and congenital hyperinsulinemia. 
  • PegBio employs a proprietary technology platform, called HECTOR, and has six drug candidates in the pipeline portfolio. PB-119 is their core product with the purpose to treat T2DM and obesity.

Tencent (700 HK) 4Q23 Earnings Preview: Stable Growth and Margin Improvement Will Continue

By Ming Lu

  • We believe total revenue will grow by 11% in 4Q23 and 2024.
  • We also believe the operating margin will improve slightly in 4Q23 and the following two years.
  • Tencent sold weak business to China Literature in December 2024.

China Consumption Weekly (11 Mar 2024): JD.com, JD Logisitics, BYD, Alibaba, NIO

By Ming Lu

  • JD.com stock price surged after its 4Q23 results and repurchase decision.
  • It is not big issue that BYD sales decreased in the weak season.
  • Alibaba began to close unprofitable Freshippo stores in February, but the company said it has expansion plan.

Pinduoduo (PDD US): Pricing in an Imminent Slowdown

By Eric Chen

  • We see further upside to our previous above-consensus 4Q23 results estimates on low base, enhanced monetization, and faster TEMU expansion.
  • That said, we believe market focus already shifted to outlook for 2024, in particular an imminent slowdown in 1Q24 and renewed concern around US curb on TEMU.
  • 30% share price correction is pricing in the above scenario and valuation should gradually improve as PDD delivers back-loaded bottom line growth in 2024.

China Healthcare Week (Mar.8) – GLP-1s, “Crowding Out Effect” in Healthcare, Microport’s Trouble

By Xinyao (Criss) Wang

  • Since the domestic revenue scale of PD-1 has been much lower-than-expected, the market seems no longer willing to offer GLP-1 weight loss drug high expectations. However, that’s not right. 
  • For China healthcare, the emergence of negative domestic policies is a time for reassessment and seeking opportunities, rather than a time of blind pessimism.
  • Issuing convertible bonds is clearly a bad decision for Microport, which chose to sacrifice the interests of minority shareholders. Together with weak fundamentals/cashflow pressure, the management needs to take responsibility.

Shortlist Of High Conviction Ideas: Income, Value, and Margin of Safety – March 2024

By Sameer Taneja

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

Sign Up for Free

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

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


Mar 11
0

Most Read: Shenzhen New Industries Biomedical Engineering-A, Dai Nippon Printing, NVIDIA Corp, ZOZO Inc, Tencent, Emerald Resources Nl, IDP Education, Shinko Electric Industries, TSE Tokyo Price Index TOPIX, Softbank Group and more

By | Daily Briefs, Most Read

In today’s briefing:

  • CSI300 Index Rebalance Preview: Potential Adds Outperforming Despite ETF Inflows
  • Dai-Nippon Printing (7912) – Whoomp There It Is! Part Deux
  • MV US Listed Semiconductor 25 Index Rebalance: Over US$1bn to Sell in NVIDIA
  • Index Rebalance & ETF Flow Recap: NKY, ASX, CSI300, A50, STTF, LowVol30, Value Up
  • WisdomTree Indexes Special Rebalance: ESG Considerations Dropped
  • MV Global Junior Gold Miners Index Rebalance: Over US$500m to Trade
  • MV Australia Equal Weight Index Rebalance: Float & Capping Changes to Drive Flow
  • Merger Arb Mondays (11 Mar) – Shinko, JSR, Azure, Genex, OreCorp, Hollysys, CPMC, Vinda
  • EQD | A Systematic Look at the Post Earnings Announcement Drift Across Asia
  • ECM Weekly (11th Mar 2024) – Oriental Land, ARM, Tuhu, Wiwynn, Macrotech, Zomato, Trial Holding

CSI300 Index Rebalance Preview: Potential Adds Outperforming Despite ETF Inflows

By Brian Freitas

  • With 85% of the review period complete, we see 11 changes for the Shanghai Shenzhen CSI 300 Index (SHSZ300 INDEX) in June.
  • We estimate one-way turnover of 1.2% at the rebalance leading to a one-way trade of CNY 7.3bn (US$1bn). There are a lot of stocks with multiple days ADV to trade.
  • The potential adds have outperformed the potential deletes despite large flows from the National Team into ETFs tracking the CSI 300 Index. That support for the potential deletes will reverse.

Dai-Nippon Printing (7912) – Whoomp There It Is! Part Deux

By Travis Lundy

  • At end-January 2023 it became clear activist Elliott Management had set its sights on Dai Nippon Printing (7912 JP). The stock popped and people got bullish.
  • I warned about the “complicated” nature of gains going forward here. Three weeks later they announced details of including ¥100bn of buybacks per year for 3yrs. That’s discussed here.
  • I rarely write bearishly about a huge buyback program but from next day open, over 1yr, total return has been 4.9%. Stage 2 starts 11 March with ¥50bn through end-Sep24. 

MV US Listed Semiconductor 25 Index Rebalance: Over US$1bn to Sell in NVIDIA

By Brian Freitas

Index Rebalance & ETF Flow Recap: NKY, ASX, CSI300, A50, STTF, LowVol30, Value Up

By Brian Freitas

  • There were a few rebalance announcements in the last week and the SSE STAR50 (STAR50 INDEX) and STAR100 Index rebalances were implemented at the close on Friday.
  • There are a lot of rebalances that will be implemented at the close on the coming Thursday and Friday.
  • Another big week of inflows for onshore China ETFs with Central Huijin likely behind the big flows to ETFs tracking the Shanghai Shenzhen CSI 300 Inde (SHSZ300 INDEX). 

WisdomTree Indexes Special Rebalance: ESG Considerations Dropped

By Brian Freitas

  • WisdomTree has dropped ESG considerations while selecting stocks for the EMXSOE, CHXSOE and WTEMXC indices.
  • That results in a lot of inclusions and fewer deletions across indices that will be implemented at the close on 15 March.
  • The round-trip trade across the indices will exceed US$500m with Tencent (700 HK) as the largest buy.

MV Global Junior Gold Miners Index Rebalance: Over US$500m to Trade

By Brian Freitas

  • Emerald Resources Nl (EMR AU) will be added to the VanEck Vectors Junior Gold Miners ETF (GDXJ US) in March while there are 3 deletions for the index.
  • The constituent changes along with float and capping changes result in an estimated one-way turnover of 6.4% and a one-way trade of US$263m.
  • There are 9 stocks with more than US$10m to trade and 9 stocks with over 2x ADV to trade.

MV Australia Equal Weight Index Rebalance: Float & Capping Changes to Drive Flow

By Brian Freitas

  • There are no constituent changes for the MVIS Australia Equal Weight Index at the March rebalance. 
  • Float and capping changes will result in a one-way turnover of 4.4% and in a round-trip trade of A$195m.
  • We had Lendlease Group (LLC AU), IDP Education (IEL AU) and nib holdings (NHF AU) as close deletes and they will now have inflows due to capping.

Merger Arb Mondays (11 Mar) – Shinko, JSR, Azure, Genex, OreCorp, Hollysys, CPMC, Vinda

By Arun George

EQD | A Systematic Look at the Post Earnings Announcement Drift Across Asia

By Nicholas Pezolano

  • A cross-country study on the post earning announcement drift effect.
  • We explore the use of various options-implied analytics to systematically view returns around earnings announcements.  
  • Options-Implied Analytics can provide empowering information to better inform investment decisions.

ECM Weekly (11th Mar 2024) – Oriental Land, ARM, Tuhu, Wiwynn, Macrotech, Zomato, Trial Holding

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, Trial Holdings (5882 JP) was hoping for better luck with its listing this time around.
  • For placements, it was a very busy week for a change with most regions, apart from Hong Kong, chipping in.

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

Sign Up for Free

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

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



Mar 11
0

Daily Brief Utilities: China Longyuan Power, Pertamina Geothermal Energy PT and more

By | Daily Briefs, Utilities Sector

In today’s briefing:

  • China Longyuan (916 HK): Mean Reversion
  • Morning Views Asia: Pertamina Geothermal Energy PT, Sunny Optical Technology Group, West China Cement

China Longyuan (916 HK): Mean Reversion

By Osbert Tang, CFA

  • China Longyuan Power (916 HK) should see a mean reversion of its valuations. It has rebounded 36% from the the 2024 trough, but has only gone up 0.3% YTD.
  • There are three catalysts in place to drive the move: acceleration in power generation, cash flow improvement, and recovery in the wind power market.
  • Its P/B is at a 40% discount to average, and a return to such level will generate a 60% upside. Even after reversion, its PER of 7.8x is not stretched.

Morning Views Asia: Pertamina Geothermal Energy PT, Sunny Optical Technology Group, West China Cement

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.

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

Sign Up for Free

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

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