Smartkarma Daily Briefs

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.

Adani Green Energy

Yanlord Land – Earnings Flash – FY 2023 Results – Lucror Analytics

Yanlord’s FY 2023 results were robust in our view. The company reported solid top-line growth, albeit the margin contracted from a high base as projects were delivered outside of Shanghai. Still, cash flows were healthy, which supported meaningful debt reduction.

Yanlord’s near-term debt repayment risks have eased materially, after the company fully redeemed the YLLGSP 6.78 ’24s at maturity yesterday and successfully refinanced the USD syndication loan due in February 2024. The company’s next bond maturity will be in May 2026, when the USD 500 mn YLLGSP 5.125 ’26s come due.

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Feb 29

Daily Brief ECM: Renesas (6723) – YET ANOTHER Clean-Up Block Trade – This Time Mitsubishi Elec and more

By Smartkarma Daily Briefs | Daily Briefs, ECM

In today’s briefing:

Renesas (6723) – YET ANOTHER Clean-Up Block Trade – This Time Mitsubishi Elec
Renesas Electronics Block – Smaller than Recent Deals but Still Likely Well Flagged
Tokyo Metro IPO Early Look – Could Raise Around US$2bn While Still Recovering from COVID
Precinct Properties NZ Placement – While the Deal Will Be a Clean-Up, Momentum Hasn’t Been Strong
Pre-IPO Hangzhou Jiuyuan Gene Engineering – Old Pipelines Are Difficult to Bring New Breakthroughs
Bharat Highways InvIT IPO – Hardly Attractive Given the Lackluster Sentiment

Renesas (6723) – YET ANOTHER Clean-Up Block Trade – This Time Mitsubishi Elec

Today after the close, Mitsubishi Electric (6503 JP) announced the sale of its position in Renesas Electronics (6723 JP). That’s 50,706,800 shares.
This is the third large block in four months (Renesas in November for 223mm shares, NEC and Hitachi in January 2024 for 123mm shares).
This is smaller, and reasonably well-flagged. Index demand is longer-dated.

Renesas Electronics Block – Smaller than Recent Deals but Still Likely Well Flagged

By Ethan Aw

Mitsubishi Electric (6503 JP) is looking to raise approximately US$800m through an accelerated secondary block deal, via selling 50.71m shares (2.6% of TSO) of Renesas Electronics (6723 JP) stock.
The deal will be an easy one to digest at only three days of three month ADV.
In this note, we will talk about the placement and run the deal through our ECM framework.

Tokyo Metro IPO Early Look – Could Raise Around US$2bn While Still Recovering from COVID

By Sumeet Singh

Tokyo Metro (TKYMETRO JP)’s shareholders, the Japanese and Tokyo Metropolitan Governments, could look to raise up to US$2bn by selling half of their stake via an IPO.
Tokyo Metro is one of the two metro network operators in the Tokyo region. It operates nine subway lines.
In this note, we take an early look at the possible listing.

Precinct Properties NZ Placement – While the Deal Will Be a Clean-Up, Momentum Hasn’t Been Strong

By Clarence Chu

ADIA, via Haumi Co, is looking to raise NZ$262m (US$160m) from selling its entire stake in Precinct Properties New Zealand (PCT NZ).
While the deal will be a clean-up share sale, the deal is a large one for the firm to digest at 344 days of its three month ADV.
Momentum on the stock hasn’t been great, with the shares continuing to correct since the onset of the pandemic.

Pre-IPO Hangzhou Jiuyuan Gene Engineering – Old Pipelines Are Difficult to Bring New Breakthroughs

By Xinyao (Criss) Wang

Jiuyuan is not a typical innovative pharmaceutical enterprise with cutting-edge technology. The current seemingly good revenue/profit performance is actually based on some old products from over a decade ago.
The risk of VBP could lead to a significant decrease in profit margins at any time. The cyclical changes in heparin industry would put more pressure on Jiuyuan’s performance.
As Jiuyuan has not yet demonstrated superior clinical data in Jikeqin for overweight/obesity indication, together with fierce competition, we are cautious about the performance in GLP-1s pipeline at this stage.

Bharat Highways InvIT IPO – Hardly Attractive Given the Lackluster Sentiment

By Ethan Aw

Bharat Highways InVIT (BHINV IN) is looking to raise up to US$301m in its Indian IPO.
Bharat Highways InVIT is an infrastructure investment trust established to acquire, manage and invest in a portfolio of infrastructure assets in India.
In this note, we talk about the company’s historical performance and provide our quick thoughts on valuation.

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Feb 29

Daily Brief Event-Driven: Hong Kong To Scrap All “Spicy Measures” (Property Cooling Measures) and more

By Smartkarma Daily Briefs | Daily Briefs, Event-Driven

In today’s briefing:

Hong Kong To Scrap All “Spicy Measures” (Property Cooling Measures)
Tsuruha (3391) And Welcia (3141) – Aeon Tsuruha Stake Buy Followed by Merger! [Redux]
Confirmed: Conditions & Schedule of Block Deals Pre-Disclosure Rules in Korea
Hong Kong: Stamp Duties Axed; Mortgage Rules Relaxed
JAPAN ACTIVISM: Is Murakami-San Going To Do A PacMetals Rug Pull on Aozora? Or Is This For Real?
Aozora Bank (8304 JP): Murakami Becomes a Substantial Shareholder
APM Human Services (APM AU): CVC’s 141% Offer Premium
BAT’s Possible US$2.5bn ITC Selldown – Will Be Well Flagged but Still Won’t Be an Easy One to Digest
Aeon (8267 JP), Tsuruha (3391 JP) And Welcia (3141 JP)’s Long-Dated Plan
Goodman Group (GMG AU): Positioned for Outperformance

Hong Kong To Scrap All “Spicy Measures” (Property Cooling Measures)

RTHK just reporting that HK Finance Secretary Paul Chan has said in his budget speech that HK will remove all property cooling measures in place, with immediate effect.
That would be That is Special Stamp Duty, Buyer’s Stamp Duty, New Residential Stamp Duty. “Measures no longer necessary given the current economic and market conditions.”
This should cause people to get excited short-term about property developers.

Tsuruha (3391) And Welcia (3141) – Aeon Tsuruha Stake Buy Followed by Merger! [Redux]

The first piece had a question mark in the title. This one has an exclamation point. The exclamation point has value for one investor. Other people? Not so much.
Today post-close we got the deal. I was a little surprised it came this fast, but it’s now mostly done it appears – largely as predicted in the last piece.
There are things one can probably read into the details. It is probably worth thinking about those, and how those details affect the industry.

Confirmed: Conditions & Schedule of Block Deals Pre-Disclosure Rules in Korea

By Sanghyun Park

Insiders must disclose transaction details, complete deals within 30 days, limit deviations to 30%, and submit disclosures 30 days before transactions.
Financial investors, including institutional ones, are exempt. This encompasses local pension funds (including NPS) and foreign financial investors. Deals under 1% of total shares and less than ₩5B are exempt.
Confirmation of the timeline indicates many block deals before July. We should hunt potential deals for proactive setups. Also, we should monitor basis widening in futures due to short-selling ban.

Hong Kong: Stamp Duties Axed; Mortgage Rules Relaxed

Hong Kong residential property prices declined 7% in 2023 and are down >20% from the 2021 peak in 2021. The average price of offices also declined ~7% in 2023.
Scrapping property cooling measures, such as the special stamp duty applied to homes resold within 24 months, have been rumoured, to push up housing prices.
In today’s annual budget, we got those. And then some.

JAPAN ACTIVISM: Is Murakami-San Going To Do A PacMetals Rug Pull on Aozora? Or Is This For Real?

Yesterday after the close, well-known Japanese activist Murakami-san’s preferred entity City Index Eleventh filed a Large Shareholder Report.
The blast across Bloomberg was “*AOZORA 5.4% STAKE REPORTED BY CITY INDEX ELEVENTH.” Sounds exciting after the shares dropped 34% in two days earlier this month after reporting big writedowns.
But there has to be a question here. Why? And Why this way? And what kind of activism would be possible?

Aozora Bank (8304 JP): Murakami Becomes a Substantial Shareholder

By Arun George

Murakami’s entity, City Index Eleventh, reported a 5.42% shareholding in Aozora Bank Ltd (8304 JP). Murakami started buying a day after the disastrous 3QFY23 results.
Murakami’s average buy-in price is JPY2,137.88 per share, a 34% discount to the pre-3QFY23 results share price.
Murakami’s disclosure suggests two possibilities: the start of an activist campaign or a short-term trading play replicating the Pacific Metals (5541 JP) playbook.

APM Human Services (APM AU): CVC’s 141% Offer Premium

Back on the 19th Feb, employment and disability services play APM Human Services Internation (APM AU) rejected PE-outfit CVC Asia Pacific’s A$1.60 proposal, a 93% premium to undisturbed.
Undeterred, CVC has returned with A$2.00/share indicative Offer, by way of a Scheme, a 141% premium to undisturbed; yet a 44% discount to APM’s November 2021 IPO price of A$3.55/share.
APM has determined it will engage and provide CVC with a four-week period of exclusivity.

BAT’s Possible US$2.5bn ITC Selldown – Will Be Well Flagged but Still Won’t Be an Easy One to Digest

By Sumeet Singh

Earlier this month, British American Tobacco (BATS LN)’s management stated that they were reviewing their stake in ITC Ltd (ITC IN) to enhance its balance sheet flexibility.
BAT has owned its stake in ITC for over a century and remains its largest shareholder.
In this note, we talk about the possible deal structure and dynamics.

Aeon (8267 JP), Tsuruha (3391 JP) And Welcia (3141 JP)’s Long-Dated Plan

By Arun George

Aeon Co Ltd (8267 JP), Tsuruha Holdings (3391 JP) and Welcia Holdings (3141 JP) have announced an alliance to establish the largest drugstore alliance in Japan by December 2027.
Aeon will carry out several Tsuruha transactions – buy Oasis 13.58% stake at JPY15,500 per share and, on receiving regulatory approval, reach 27.17% of the voting rights.
The agreements involve merging Tsuruha and Welcia through a share exchange offer and Aeon subsequently increasing its Tsuruha voting rights from 27.17% to less than 51%.

Goodman Group (GMG AU): Positioned for Outperformance

Goodman Group (GMG AU) has been moving higher recently and the stock has outperformed its peers handily over the last year.
The stock trades marginally expensive compared to its peers and that could be partially attributed to the stock being a part of large indices.
There is another index inclusion to come and that could lead to further outperformance in the short term.

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Feb 29

Daily Brief Equity Bottom-Up: Beyond the Bubble: A Deep Dive into the Forces Behind the Nikkei Index Surge and more

By Smartkarma Daily Briefs | Daily Briefs, Equity Bottom-Up

In today’s briefing:

Beyond the Bubble: A Deep Dive into the Forces Behind the Nikkei Index Surge
Astra International (ASII IJ) – Indonesia’s Mirror Image
China Airports: Beijing Capital Airport Offers Best Risk/Return Payoff
Tencent/Netease: Approval Rotation to Netease in Feb
[Li Auto Inc. (LI US, BUY, TP US$52) TP Change]: What Can Go Wrong & Go Right in LI Becoming BYD #2
Alibaba Group Holdings: EM Fund Positioning Update
Uchi Tech (UCHI MK): Solid FY23 Results, Solid Dividend, FY24 Guidance Conservative
Sido Muncul (SIDO IJ) – Iconic Modern Jamu
Is OpenAI’s business model sustainable?
Sinotrans (598.HK), a Shining Example of SOE Reform

Beyond the Bubble: A Deep Dive into the Forces Behind the Nikkei Index Surge

By Nimish Maheshwari

Japan’s Nikkei Stock Average has surged past its 1989 peak, fueled by global investor interest, corporate reforms, and innovative investment initiatives like the Nippon Individual Savings Account (NISA).
This resurgence marks a significant milestone in Japan’s economic landscape, reflecting renewed investor confidence, structural reforms, and potential growth opportunities in the market.
The Nikkei’s surpassing of its previous peak signals a shift in perception towards Japan’s market potential, prompting investors to reconsider the country’s economic trajectory and explore new avenues for investment.

Astra International (ASII IJ) – Indonesia’s Mirror Image

Astra International booked record earnings for 2023 despite some softening of commodities, driven by strong performance from the auto division and financing plus the strong performance from motorcycles.
Astra has continued to invest in growth areas of the Indonesian economy with investments last year in the EV battery ecosystem, increased exposure to healthcare, and investment in data centres.
Management flagged a potential 2H cyclical downturn but it is well-diversified enough to weather this. Valuations look attractive on 6.8x FY2024E PER and with a 6.6% dividend yield.

China Airports: Beijing Capital Airport Offers Best Risk/Return Payoff

By Eric Chen

Recent newsflow and company results suggest China outbound travel is on track to recover to pre-pandemic level by the end of this year.
China airports have different exposures to outbound travel, which largely determines the scale of their duty-free shopping business and earnings upside amidst this recovery cycle.
Beijing Capital Airport offers best risk/return profile among listed China airports in our view as current valuation does not fully capture even a conservative scenario of recovery in outbound travel.

Tencent/Netease: Approval Rotation to Netease in Feb

By Ke Yan, CFA, FRM

China announced game approval for the Feb batch. The number of games approved remained at a higher level than 2023.
The pace of China game approval appears to be accelerating, to the same level as pre-tightening.
Netease gets one game approved but we don’t see that the acceleration of game approval benefits big names proportionally.

[Li Auto Inc. (LI US, BUY, TP US$52) TP Change]: What Can Go Wrong & Go Right in LI Becoming BYD #2

By Eric Wen

LI Auto reported C4Q23 top line, non-GAAP operating profit and GAAP net income (6.2%), 13% and 81% vs. our estimates and 4.9%, 52% and 102% vs. consensus.
We believe LI can beat our delivery estimate on exports, but can also miss the consensus on gross margins if its 2024 volume target is met by sedans;
We raise our TP by US$5 to US$52 and reiterate BUY.

Alibaba Group Holdings: EM Fund Positioning Update

By Steven Holden

Despite average weights falling from over 6% in 2020 to under 2% today, 73% of EM funds remain invested in Alibaba.
The make up of the investor base has changed, with a rotation between high growth investors (out) and Value investors (in).
Of the 73% of current holders, the core portfolio weight range sits between 1.5% and 3%, with the most bullish topping out at 5%+

Uchi Tech (UCHI MK): Solid FY23 Results, Solid Dividend, FY24 Guidance Conservative

By Sameer Taneja

Uchi Technologies (UCHI MK) reported a solid Q4FY23/FY23 result, with revenue up 18%/13.2% YoY, operating profit up 28%/21% YoY, but profits up 9%/8.3% YoY (due to increased taxation).
For FY24, the company conservatively guided a mid-single-digit decline in revenue growth. In FY23, the company guided flat USD revenue growth (but delivered 9.2% YoY).
Assuming the current currency and guidance, the stock trades at 14x FY24e with a yield of 7% (assuming a 100% payout similar to last two years) and ROCE above 60%.

Sido Muncul (SIDO IJ) – Iconic Modern Jamu

By Analyse Asia with Bernard Leong

Sido Muncul‘s recent results reflect a sharp recovery in its core herbal and F&B business as increased sales volumes have brought scale benefits to its iconic products.
The company saw recovery in both sales and profits, with margins improving considerably in 4Q2023 due to increased volumes and lower raw material prices.
Tolak Angin remains an iconic brand catering to all demographics with 70% leadership of its category, with Kuku Bima being the leader in powdered energy drinks. Valuations appealing versus history.

Is OpenAI’s business model sustainable?

By Behind the Money

OpenAI, founded in 2015 as a nonprofit research lab, has transitioned into a for-profit entity with ambitious goals of creating artificial general intelligence to benefit humanity.
The company’s CEO, Sam Altman, is focused on solving the problem of super intelligence and has plans to set up his own semiconductor manufacturing pipeline and extend human lifespan.
OpenAI’s business model now involves catering to enterprise customers to generate revenue, and they face challenges in balancing their grand mission with the need for significant investment.

This content is sourced through publicly available sources and has been machine generated. Information displayed is for general informational purposes only.

Sinotrans (598.HK), a Shining Example of SOE Reform

By Rikki Malik

A Profit-Oriented State Owned Enterprise that is walking the walk.
Management incentives are aligned with shareholders, a rarity in China.
Plenty of upside remains despite the market outperformance to date

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Feb 29

Daily Brief Macro: US Rates: Slowly but Surely and more

By Smartkarma Daily Briefs | Daily Briefs, Macro

In today’s briefing:

US Rates: Slowly but Surely, Pushing Back the QT Taper Timeline
Thailand: Aging Poor
A Real-Time Estimate of Gold’s Market Cap and Bitcoin’s Potential Value
China: Careful
The Call @ Hedgeye | February 26, 2024
Bitcoin to Continue Outshining Gold In 2024
China’s Growth Constrained by Crisis of Industrial & RE Over-Capacity
EA Still Stuck in Stagnation
Will the Stocks from China Recover & Asian Century Stocks with Michael Fritzell
CX Daily: China Intensifies Efforts to Curb Risk in Troubled Trust Sector

US Rates: Slowly but Surely, Pushing Back the QT Taper Timeline

By At Any Rate

The Federal Reserve was expected to announce tapering of quantitative tightening (QT) in March and implement it in April, but recent minutes suggest a more relaxed approach with no urgency to start the process soon.
SOFR rates have trended lower in January, easing concerns over upward pressure, and there is plenty of liquidity in the marketplace, with significant RRP and reserve balances.
Forecasting for the Fed’s balance sheet evolution suggests a less volatile TGA balance and a shift in the relationship between t-bill issuance and RRP balances, leading to a more stable scenario for reserves in the near term.

This content is sourced through publicly available sources and has been machine generated. Information displayed is for general informational purposes only.

Thailand: Aging Poor

By Warut Promboon

Thai equities lack growth and innovation. Big corporations continue to have unfair advantages in terms of access to bank financing and business opportunities.
Thailand is an aging society with rising income disparity and a stalling education system. Hence, we have questioned how Thailand will escape the middle income trap in the near term.
We expect more disruptions and policy blunders which could impair Thai stock performance. We do not believe Thailand can correct its cause in the near term.

A Real-Time Estimate of Gold’s Market Cap and Bitcoin’s Potential Value

By Jeroen Blokland

The real-time market cap of gold is USD 15 trillion, not USD 13 trillion, as is often stated.
This matters because I expect gold to gain on and outperform bonds within a multi-asset portfolio. In recent years, this has been the case.
A real-time estimate of gold’s market cap also translates to a real-time Bitcoin price estimate as it functions as digital gold. In this piece, I show my base case scenario.

China: Careful

By Untying The Gordian Knot

The recent rally in Chinese stocks has been corrective in nature and was triggered by several factors: National Team Intervention: Authorities intervened to stabilise the market.
Banning of Short Sales: Short selling was restricted to prevent excessive downward pressure.
No Net Selling by Funds: Fund managers refrained from net selling.

The Call @ Hedgeye | February 26, 2024

By Real Conversations

Russell was down almost a full percent last week, but consumer staples, MLPS, and shipping performed well
Domino’s reported slightly lower earnings and showed signs of global headwinds, momentum slowing
China looks like a good long bias opportunity for the second half of 2024, while consumer staples are poorly positioned for reaccelerating inflation

This content is sourced through publicly available sources and has been machine generated. Information displayed is for general informational purposes only.

Bitcoin to Continue Outshining Gold In 2024

By Pranay Yadav

BTC faces a bullish outlook with tailwinds from ETF inflows and an upcoming halving. Early signs of a broader cryptocurrency market rally are underway.
Gold prices remain pressured from investor rotation to other assets. Fading recession fears are eroding gold’s risk premium.
Cumulative ETF fund flows for bitcoin and gold ETFs highlight the diverging outlook with large inflows to bitcoin ETFs and outflows from gold ETFs.

China’s Growth Constrained by Crisis of Industrial & RE Over-Capacity

By Prasenjit K. Basu

PBoC’s 25bp LPR and 50bp RRR cuts in Feb’24 are likely to prove ineffective palliatives to deal with the massive overhang of unsold real-estate across China.
Challenge manifests in urban vacancy rates of 20% (>twice Japan’s at its bubble peak), real and potential liquidations of Evergrande and Country Garden, and bankruptcy of Zhongzhi shadow-banking group.
3% FAI growth underpinned 5.2% RGDP growth in 2023 despite low base. RGDP growth in 2024 will be 4%, and less in the medium-term as FAI and non-Russia exports stagnate.

EA Still Stuck in Stagnation

By Phil Rush

The flash services PMI’s bounce raised a risk that the Euro area’s stagnation might be ending. However, we still believe that is residual seasonality rather than substance.
ESI survey data corroborate this sceptical assessment as they were broadly unchanged at levels below the historical average for most sectors and countries.
Ongoing labour market resilience in the EEI and unemployment data sustains cyclical support for wage costs. Services and retail price expectations remain historically high.

Will the Stocks from China Recover & Asian Century Stocks with Michael Fritzell

Embrace all types of stimulus, even if they look different from the past
Experienced investor in Asian markets sees similarities in current sentiment to past market cycles
Michael Fritzell, founder of Asian Century Stocks, shares his journey from journalism to finance and his passion for Asia and Chinese language and culture.

This content is sourced through publicly available sources and has been machine generated. Information displayed is for general informational purposes only.

CX Daily: China Intensifies Efforts to Curb Risk in Troubled Trust Sector

By Caixin Global

Trust / In Depth: China intensifies efforts to curb risk in troubled trust sector
Personnel /China’s ousted foreign minister removed from top legislature
Ant Group /Ant Group outbids Citadel Securities for Credit Suisse’s China JV

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Feb 29

Daily Brief Indonesia: Astra International, Sido Muncul and more

By Smartkarma Daily Briefs | Daily Briefs, Indonesia

In today’s briefing:

Astra International (ASII IJ) – Indonesia’s Mirror Image
Sido Muncul (SIDO IJ) – Iconic Modern Jamu

Astra International (ASII IJ) – Indonesia’s Mirror Image

Astra International booked record earnings for 2023 despite some softening of commodities, driven by strong performance from the auto division and financing plus the strong performance from motorcycles.
Astra has continued to invest in growth areas of the Indonesian economy with investments last year in the EV battery ecosystem, increased exposure to healthcare, and investment in data centres.
Management flagged a potential 2H cyclical downturn but it is well-diversified enough to weather this. Valuations look attractive on 6.8x FY2024E PER and with a 6.6% dividend yield.

Sido Muncul (SIDO IJ) – Iconic Modern Jamu

Sido Muncul‘s recent results reflect a sharp recovery in its core herbal and F&B business as increased sales volumes have brought scale benefits to its iconic products.
The company saw recovery in both sales and profits, with margins improving considerably in 4Q2023 due to increased volumes and lower raw material prices.
Tolak Angin remains an iconic brand catering to all demographics with 70% leadership of its category, with Kuku Bima being the leader in powdered energy drinks. Valuations appealing versus history.

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Feb 29

Daily Brief Australia: APM Human Services Internation, Goodman Group, Qantm Intellectual Property, Alkane Resources, Planet Gas Ltd and more

By Smartkarma Daily Briefs | Australia, Daily Briefs

In today’s briefing:

APM Human Services (APM AU): CVC’s 141% Offer Premium
Goodman Group (GMG AU): Positioned for Outperformance
APM (APM AU): CVC’s Revised Non-Binding Proposal at A$2.00
QANTM (QIP AU): Rouse Makes An Offer – But At What Price?
On the cusp of potential expansion
Tapping into historic NSW tin for new resources

APM Human Services (APM AU): CVC’s 141% Offer Premium

Back on the 19th Feb, employment and disability services play APM Human Services Internation (APM AU) rejected PE-outfit CVC Asia Pacific’s A$1.60 proposal, a 93% premium to undisturbed.
Undeterred, CVC has returned with A$2.00/share indicative Offer, by way of a Scheme, a 141% premium to undisturbed; yet a 44% discount to APM’s November 2021 IPO price of A$3.55/share.
APM has determined it will engage and provide CVC with a four-week period of exclusivity.

Goodman Group (GMG AU): Positioned for Outperformance

Goodman Group (GMG AU) has been moving higher recently and the stock has outperformed its peers handily over the last year.
The stock trades marginally expensive compared to its peers and that could be partially attributed to the stock being a part of large indices.
There is another index inclusion to come and that could lead to further outperformance in the short term.

APM (APM AU): CVC’s Revised Non-Binding Proposal at A$2.00

By Arun George

APM Human Services Internation (APM AU)’s revised non-binding proposal from CVC is A$2.00 per share, a 141.0% premium to the undisturbed price of A$0.83 per share (16 February).
CVC has been granted a four-week exclusivity period to 27 March. The proposal allows shareholders to receive scrip in an unlisted HoldCo. The Board will recommend a binding proposal.
While not a knockout offer, a concentrated and seemingly supportive shareholder register facilitates a binding proposal. At the last close, the gross spread was 25.0%.

QANTM (QIP AU): Rouse Makes An Offer – But At What Price?

By Research as a Service (RaaS)

Yesterday morning, Qantm Intellectual Property (QIP AU) announced it had received a non-binding indicative proposal from UK-based Rouse International Holdings Limited.
In what only can be described as a (s)crappy announcement, no price was disclosed, nor the due diligence period. Not even if this was a cash/scrip Offer.
In any event, QANTM considers Rouse’s ops to be highly complementary in both geographic and service lines to QANTM. QANTM shares gained 17% yesterday to close at A$1.34.

On the cusp of potential expansion

Alkane Resources Limited (ASX:ALK) is an ASX-listed gold producer and explorer with a focus on central west New South Wales.
The Perth-headquartered company owns and operates the Tomingley gold mine and processing facilities, south-west of Dubbo and the Northern Molong porphyry project in central west NSW which includes the highly prospective Boda and Kaiser deposits.
ALK recently announced high-grade results from the Kaiser resource upgrade drilling programme and upgraded the Boda resource to 6.6mn ounces of gold equivalent (AuEq), with 4.4Moz AuEq inferred.

Tapping into historic NSW tin for new resources

By Research as a Service (RaaS)

Sky Metals Limited (ASX:SKY) is an ASX-listed base metals explorer focused on a portfolio of assets in New South Wales with the most advanced being the Tallebung tin project in central NSW. The company recently made material progress on the expansion of the mineral resource estimate (MRE) at Tallebung which positions it to be scoped for a bulk-mining operation.
SKY says it is now planning a further drilling programme on a defined exploration target of approximately 23Mt-32Mt at a grade of between 0.14%-0.17% tin to build out the indicated resource for the mine scoping studies.
The cash balance of $1.12m at the end of December 2023 suggests to us that the company may need to raise capital to complete its programme.

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Feb 29

Daily Brief Singapore: Yanlord Land, OUE Commercial REIT and more

By Smartkarma Daily Briefs | Daily Briefs, Singapore

In today’s briefing:

Yanlord Land – Earnings Flash – FY 2023 Results – Lucror Analytics
Smartkarma Insights: OUE Commercial REIT – Well-Heeled Exposure to SG Commercial Property

Yanlord Land – Earnings Flash – FY 2023 Results – Lucror Analytics

Smartkarma Insights: OUE Commercial REIT – Well-Heeled Exposure to SG Commercial Property

By Geoff Howie

Smartkarma Insights: OUE Commercial REIT – Well-Heeled Exposure to SG Commercial Property

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Feb 29

Daily Brief India: ITC Ltd, Pi Industries, Shriram Finance , Adani Green Energy, Bharat Highways InVIT and more

By Smartkarma Daily Briefs | Daily Briefs, India

In today’s briefing:

BAT’s Possible US$2.5bn ITC Selldown – Will Be Well Flagged but Still Won’t Be an Easy One to Digest
NIFTY NEXT50 Index Rebalance: Five Changes on Expected Lines; Big Turnover
NIFTY50 Index Rebalance: Shriram Finance to Replace UPL
Morning Views Asia: Adani Green Energy
Bharat Highways InvIT IPO – Hardly Attractive Given the Lackluster Sentiment

BAT’s Possible US$2.5bn ITC Selldown – Will Be Well Flagged but Still Won’t Be an Easy One to Digest

By Sumeet Singh

Earlier this month, British American Tobacco (BATS LN)’s management stated that they were reviewing their stake in ITC Ltd (ITC IN) to enhance its balance sheet flexibility.
BAT has owned its stake in ITC for over a century and remains its largest shareholder.
In this note, we talk about the possible deal structure and dynamics.

NIFTY NEXT50 Index Rebalance: Five Changes on Expected Lines; Big Turnover

There are five changes for the NSE Nifty Next 50 Index (NIFTYJR INDEX) that will be implemented at the close on 27 March. Changes are on expected lines.
Estimated one-way turnover for the NSE Nifty Next 50 Index (NIFTYJR INDEX) is 10.1% resulting in a one-way trade of INR 22.2bn (US$268m).
Apart from the impact on the adds and deletes, there will be a big impact on some of the non-F&O stocks due to capping and funding flows.

NIFTY50 Index Rebalance: Shriram Finance to Replace UPL

Shriram Finance (SHFL IN) will replace UPL Ltd (UPLL IN) in the NIFTY Index (NIFTY INDEX) at the close of trading on 27 March. This was a high probability change.
Trent Ltd (TRENT IN) missed out on inclusion and that results in Bharat Petroleum Corp (BPCL IN) staying in the index.
There is over 11 days of delivery volume to trade in the add and delete and there appears to be significant positioning in one of the stocks.

Morning Views Asia: Adani Green Energy