All Posts By

Smartkarma Daily Briefs

Jul 19
0

Daily Brief Credit: MercadoLibre: Analyzing the Market Reaction to S&P’s Outlook Change and more

By | Credit, Daily Briefs

In today’s briefing:

  • MercadoLibre: Analyzing the Market Reaction to S&P’s Outlook Change
  • Morning Views Asia: Anton Oilfield, Health And Happiness (H&H), Vedanta Resources

MercadoLibre: Analyzing the Market Reaction to S&P’s Outlook Change

By Leandro Gubler

  • S&P revised MELI’s credit rating outlook to positive from stable and affirmed its BB+ issuer credit rating.
  • MELI’s credit metrics are considerably stronger than its peers in the high-yield rating category
  • MELI’s bonds have arguably already been trading at the investment grade level, supported by the company’s solid credit metrics for the rating category.

Morning Views Asia: Anton Oilfield, Health And Happiness (H&H), Vedanta Resources

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


Jul 19
0

Daily Brief ECM: Big Honda (7267) Offering – Flow Timing Matters and more

By | Daily Briefs, ECM

In today’s briefing:

  • Big Honda (7267) Offering – Flow Timing Matters
  • Invincible Investment Corp Placement  – Another Accretive Acquisition, past Deals Have Done Well
  • Premier Energies Pre-IPO – Still Ramping up but Already Profitable

Big Honda (7267) Offering – Flow Timing Matters

By Travis Lundy

  • The ¥500bn Offering of Honda shares is now priced (¥1,664.5/share) making it ¥497.46bn. Bookbuilding for retail – 80% of the book – is now. The price today closed at ¥1,665/share. 
  • The Offering has follow-on “non-discretionary” demand which is non-negligible. It is worth understanding the amounts and timing.
  • The lockups and non-discretionary demand, along with Honda’s relative cheapness as a large cap OEM and likely upcoming offerings on competitors means it has support.

Invincible Investment Corp Placement  – Another Accretive Acquisition, past Deals Have Done Well

By Clarence Chu

  • Invincible Investment (8963 JP) is looking to raise around US$375m in its primary follow-on offering. The proceeds will be used to partially acquire 12 assets from its Sponsor’s affiliates. 
  • The REIT has been very active on the acquisition front, and has highlighted its ongoing discussions with its Sponsor for acquisitions. Thus, the current deal should be well flagged.
  • In this note, we talk about the deal dynamics and run the deal through our ECM framework.

Premier Energies Pre-IPO – Still Ramping up but Already Profitable

By Ethan Aw

  • Premier Energies Limited (0377949D IN) is looking to raise US$300m in its upcoming India IPO. It is a manufacturer of solar photovoltaic (PV) cells, and solar modules. 
  • It also executes engineering, procurement, and construction (EPC) projects and provides follow-up operation and maintenance (O&M) services. 
  • In this note, we talk about the company’s historical performance.

💡 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


Jul 19
0

Daily Brief Macro: Investment Strategy Under Upcoming US Rate Cut and more

By | Daily Briefs, Macro

In today’s briefing:

  • Investment Strategy Under Upcoming US Rate Cut
  • Where US Stocks Are Heading Before Rate Cut
  • [ETP 29/2024] Oil Rebounds on Inventory Drop; Energy Majors’ Targets Cut
  • Debt Watch: Will the US Treasury spook markets with issuance in the QRA again?
  • CX Daily: Tesla’s Chinese Rival Hits Accelerator on Smart Driving
  • Almost Half of Global GDP Tracking Unevenly
  • ECB: September Cut Not Yet Determined
  • UK: Slow Slackening Progress for Pay
  • ECB Refi Rate 4.25% (consensus 4.25%) in Jul-24

Investment Strategy Under Upcoming US Rate Cut

By Alex Ng

  • In face of the recent speeches by several FOMC members, we are changing or non-consensus view of no rate cut this year to one rate cut in September
  • Under rate cuts, several asset classes such as real estate stocks, gold, and other safe haven currencies will rise.
  • However, we still believe there will not be continuous series of rate cuts in the remainder of this year such that various asset classes listed above will only rise modestly. 

Where US Stocks Are Heading Before Rate Cut

By Alex Ng

  • To assess US equity direction before rate cut, we must first forecast the next rate cut. Our house forecasts that there will only be one rate cut during 2024.
  • We believe S&P500, after hitting all-time high this week is due a 10% correction until the rate cut in September. Rate cuts are essential for S&P500 to tread new high. 
  • But we believe the rate cut is going to be one-off as the labor market remains bullish and inflation still comes off a tad higher than the Fed target.

[ETP 29/2024] Oil Rebounds on Inventory Drop; Energy Majors’ Targets Cut

By Suhas Reddy

  • US crude oil inventories fell by 4.9 million barrels in the week ending 12/Jul, marking the third consecutive weekly decline.
  • As of 12/Jul, US natural gas inventories were up 8.4% YoY and 16.9% above the 5-year seasonal average.
  • UBS expects Chevron’s Q2 earnings to fall short of expectations due to LNG project downtime and lower international refining margins.

Debt Watch: Will the US Treasury spook markets with issuance in the QRA again?

By Andreas Steno

  • Good evening from Europe! The quarterly refunding announcement is due on July 29, and it always holds the potential to spook duration markets and liquidity betas.
  • The release of the updated budget projections from the CBO in June garnered attention as they raised their budget deficit projections by around $400 billion compared to the winter projections in February.
  • Not all of these outlays are newsworthy for the US Treasury.

CX Daily: Tesla’s Chinese Rival Hits Accelerator on Smart Driving

By Caixin Global

  • BYD / In Depth: Tesla’s Chinese rival hits accelerator on smart driving
  • Fraud /: Fugitive Chinese billionaire Guo Wengui convicted in United States
  • Bonuses /: Mainland financial firms’ Hong Kong units tell staff to repay bonuses

Almost Half of Global GDP Tracking Unevenly

By Thomas Lam

  • My hybrid G3 nowcasting framework harnesses varied inputs from US, Euro Area (both through June) and Japan (mostly through May)
  • Although 2Q 2024 headline GDP growth for the G3 overall is tracking better, 3Q might be soggier   
  • The individual nowcasts imply prospective upside risk for Japan in the near-term, and perhaps emerging downside risk for the US and Euro Area in the offing

ECB: September Cut Not Yet Determined

By Phil Rush

  • The ECB unanimously held its policy rates in July, as widely expected after June’s cut, and refused to pre-commit to any outcome in September.
  • Its policy will depend on the data in the weeks and months ahead, with some policymakers likely to firm up their positions before September’s highlighted meeting.
  • We still expect another cut in September, encouraged by the Fed and BoE also easing policy. However, their premature steps could swiftly require reversals in 2025.

UK: Slow Slackening Progress for Pay

By Phil Rush

  • The UK unemployment rate remained at 4.4% in May as the H1 increases are grinding to a halt in a similar pattern to 2023. Underlying changes are also becoming more neutral.
  • Weekly vacancies data have rebounded to March levels while redundancies remain low and monthly pay growth is consistently annualising above 5%.
  • The dovish BoE can welcome a renewed slowing in the headline wage growth rate despite current levels remaining inconsistent with the inflation target.

ECB Refi Rate 4.25% (consensus 4.25%) in Jul-24

By Heteronomics AI

  • The ECB kept key interest rates unchanged in July, following June’s rate cuts, to manage persistent inflationary pressures while supporting economic recovery.
  • Future interest rate decisions will be data-driven and flexible, avoiding pre-commitments to specific rate paths and based on ongoing assessments of inflation, economic data, and monetary policy transmission.
  • Economic and financial risks, including geopolitical tensions and global trade dynamics, will influence the ECB’s policy adjustments to ensure the stability and effectiveness of monetary policy transmission.
This content is sourced through publicly available sources and has been machine generated. Information displayed is for general informational purposes only.

💡 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


Jul 19
0

Daily Brief Equity Bottom-Up: TSMC (2330.TT; TSM.US): The Outlook of 3Q24 Is Pretty Much In-Line and more

By | Daily Briefs, Equity Bottom-Up

In today’s briefing:

  • TSMC (2330.TT; TSM.US): The Outlook of 3Q24 Is Pretty Much In-Line, and GM Could Be Better.
  • We See TSMC’s Margins Increasing Much Higher Than Guidance in Long-Term; 2Q24 Shows Apple Ramping Up
  • Kyoto Financial Group (5844 JP) – Limited Shareholdings Unwind, for Now
  • Mount Gibson (MGX AU): Q4 Production Report And Guidance Disappointing, But Mkt Cap = Net Cash
  • American Water Works Company: Initiation of Coverage – PFAS Regulatory Compliance
  • Brookfield Infrastructure Partners (BIP or BIPC) – Wednesday, Apr 17, 2024
  • Ryanair – Pricing Appears to Be Softening; Re-Setting Profitability Expectations
  • MediaTek (2454.TT): 3Q24 Might Grow Slightly QoQ, While AI PCs Could Be Delivered in 2H25.
  • Silversun Technologies Inc (SSNT) – Wednesday, Apr 17, 2024
  • Tech Supply Chain Tracker (19-Jul-2024): China’s auto exports, 2023.

TSMC (2330.TT; TSM.US): The Outlook of 3Q24 Is Pretty Much In-Line, and GM Could Be Better.

By Patrick Liao

  • TSMC expects sales to grow by mid-20% YoY in USD in 2024, compared to low to mid-20% previously.
  • The N3/N5 capacity is very tight, and they are even working with customers for 2026 capacity requirements, while N2 is on track to enter MP in 4Q25.
  • A16 will enter MP in 2H26, and it’s first process starts adopting backside power.

We See TSMC’s Margins Increasing Much Higher Than Guidance in Long-Term; 2Q24 Shows Apple Ramping Up

By Vincent Fernando, CFA

  • Significant revenue guidance hike — TSMC reported 2Q24 results, increasing 2024E revenue growth guidance to exceed ‘mid-20’s’ percent, a significant hike from previous guidance.
  • Management is low-balling LT margins — Latest figures and long-term margin color makes us believe that TSMC will be able to increase GM much higher than current official LT guidance.
  • Signs of Apple expecting strong iPhone 16 sales — TSMC reported strength in smartphone end-applications and we believe this is reflective of Apple ramping up re: stronger iPhone volume expectations.

Kyoto Financial Group (5844 JP) – Limited Shareholdings Unwind, for Now

By Victor Galliano

  • Kyoto Financial’s stakes in three key listed Japanese corporates are valued at over 85% of its market capitalization with its total equity holdings accounting for 130%+ of its market capitalization
  • Kyoto management intends to retain the bulk of the bank’s equity holdings, opposing the growing trend for Japanese listed companies to unwind crossholdings; management will review this policy in November
  • In the near term, we see no major catalyst for Kyoto to accelerate its equity holdings unwind and so, combined with its underwhelming fundamentals, we are negative on Kyoto Financial

Mount Gibson (MGX AU): Q4 Production Report And Guidance Disappointing, But Mkt Cap = Net Cash

By Sameer Taneja

  • Mount Gibson Iron (MGX AU) reported a disappointing Q4 FY24 production report. Volumes were inline, but provisional pricing impacts of ~20% brought a quarterly cash outflow of one mn AUD.
  • Volume guidance for FY25 was light at 2.7-3 mn tons (vs. 4.1 mn in FY24). Net Cash rose to 436 mn AUD (excluding Fenix Investment), almost equaling the market cap. 
  • FY24 results are due on 21st August 2024, when the board will recommend a dividend. Net cash and future cash flows should support the share price in the long run.  

American Water Works Company: Initiation of Coverage – PFAS Regulatory Compliance

By Baptista Research

  • American Water started 2023 with promising financial results, as its earnings per share (EPS) rose from $0.91 to $0.95 compared to the same quarter last year.
  • This increase was anticipated, aligning with the company’s forecast and sustaining its full-year earnings guidance.
  • Noteworthy contributing factors include the $0.02 per share rise stemming from additional interest income, linked to amendments in the seller note related to the HOS sale.

Brookfield Infrastructure Partners (BIP or BIPC) – Wednesday, Apr 17, 2024

By Value Investors Club

  • Dalrymple Finance report examines financial structure of Brookfield Infrastructure Partners managed by Brookfield Asset Management
  • Report raises concerns about fee maximization practices that may not align with interests of limited partners
  • Comparison with sister entity launched in 2023 highlights flaws in BIP’s financial policies, suggesting a unsustainable pyramid scheme structure

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.

Ryanair – Pricing Appears to Be Softening; Re-Setting Profitability Expectations

By Neil Glynn

  • Latest fare data suggests an incrementally more concerning trend for Ryanair pricing from June.
  • Concerns over pricing continue to increase in Europe, following Lufthansa’s profit warning last week.
  • We cut our FY25 net income by 9% to €2,289m albeit remain above consensus of €2,170m.

MediaTek (2454.TT): 3Q24 Might Grow Slightly QoQ, While AI PCs Could Be Delivered in 2H25.

By Patrick Liao

  • Mediatek Inc (2454 TT) is forecasted to experience slight growth in 3Q24 compared to 2Q24.  
  • Qualcomm Inc (QCOM US) is expected to introduce AI PCs in 2024, while Mediatek Inc (2454 TT) scheduled for this product is anticipated to delivered in 2H25.  
  • The shipment forecast for the Dimensity 9400 is approximately 5 million sets in 2H24.

Silversun Technologies Inc (SSNT) – Wednesday, Apr 17, 2024

By Value Investors Club

  • Author admires Brad Jacobs’ entrepreneurial success but questions high valuation of SilverSun Technologies
  • Conversion of SSNT into stake in QXO implies optimistic market capitalization of $46 billion
  • Author remains skeptical of QXO valuation despite Jacobs’ successful track record

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.

Tech Supply Chain Tracker (19-Jul-2024): China’s auto exports, 2023.

By Tech Supply Chain Tracker

  • XPeng and Baidu leading China’s autonomous driving technology advancements in 2023
  • Malaysia’s semiconductor sector set for growth in 3Q24 with talent recruitment and AI integration
  • Singtel partners with SK Telecom for 6G and AI innovation, while automakers persist in V2X development efforts

💡 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


Jul 19
0

Daily Brief Event-Driven: Reasons Why KT’s Foreign Room Is Likely to Fall Below the 3.75% Cutoff Level and more

By | Daily Briefs, Event-Driven

In today’s briefing:

  • Reasons Why KT’s Foreign Room Is Likely to Fall Below the 3.75% Cutoff Level
  • Huafa Property Services (982 HK): Wide Spread Ahead of the 28 August Vote
  • Thai Bev (THBEV SP): Exits Property, Boosts F&N Stake. Deal Valuation Seem Excessive
  • SK Innovation’s Merger with SK E&S: Bad Timing for SK Innovation and Higher Risks from RCPS
  • Quiddity Leaderboard STAR 50 Sep 24: Final Ranks; Some Question Marks over Ninebot Re-Inclusion
  • Capitol Health (CAJ AU): Binding Merger with Integral Diagnostics (IDX AU)
  • Capitol Health (CAJ AU)/Integral Diagnostics (IDX AU): An Improved Image – Now Firmed
  • Liquid Universe of European Ordinary and Preferred Shares: July‘24 Report
  • S&P 500 September Forecasts: Saved by the Dell?

Reasons Why KT’s Foreign Room Is Likely to Fall Below the 3.75% Cutoff Level

By Sanghyun Park

  • KT’s foreign room has been exhausted due to value-up trading inflows, NPS selling shares, and KT canceling treasury stocks.
  • Hyundai Motor may sell 0.5% of its KT stake, likely to overseas investors. KT’s 700,000 share cancellation will lower foreign ownership to the low-4% range, possibly below 3.75% by November.
  • Focus on the stock price surge from ETF recall requests around the effective date, and note that passive outflow corrections typically occur afterward.

Huafa Property Services (982 HK): Wide Spread Ahead of the 28 August Vote

By Arun George

  • Huafa Property Services Group (982 HK)’s IFA opines that Huafa Industrial Co., Ltd. Zhuhai (600325 CH)’s HK$0.29 privatisation offer is fair and reasonable. The vote is on 28 August. 
  • Key conditions include approval by at least 75% of independent shareholders (<10% of independent shareholders rejection) and a headcount test. The offer price is final.
  • No shareholder holding a blocking stake, low AGM minority participation rate and calm retail boards suggest low vote risk. At the last close, the gross/annualised spread is 9.4%/52.5%. 

Thai Bev (THBEV SP): Exits Property, Boosts F&N Stake. Deal Valuation Seem Excessive

By Devi Subhakesan

  • Thai Beverage(THBEV SP)  has proposed a share swap-deal with a promoter company to acquire additional stake in FraserAnd Neave(FNN SP)  in exchange for Frasers Property at negotiated valuations, not market prices.
  • Post-Completion of the swap deal with the promoter-owned entity, which requires shareholder approval, Thai Bev will hold a 69.6% stake in F&N and no stake in Fraser Property (FPL).
  • If the stake swap were valued at yesterday’s closing share prices, it would imply a drop in the total stake value for Thai Bev after the proposed deal.

SK Innovation’s Merger with SK E&S: Bad Timing for SK Innovation and Higher Risks from RCPS

By Douglas Kim

  • On 17 July, SK Innovation (096770 KS) officially announced a merger with SK E&S. The merger ratio between SK Innovation and SK E&S has been set at 1 to 1.1917417.
  • We believe this is the wrong timing for this merger from SK Innovation’s point of view. SK Innovation is trading at near three year lows.
  • This merger is likely to generate backlash from KKR which holds SK E&S redeemable convertible preferred stock (RCPS) worth 3.1 trillion won.

Quiddity Leaderboard STAR 50 Sep 24: Final Ranks; Some Question Marks over Ninebot Re-Inclusion

By Janaghan Jeyakumar, CFA

  • STAR 50 Index is a tech-focused, blue-chip index in Mainland China which tracks the top 50 largest and most liquid names in the STAR market of the Shanghai Stock Exchange.
  • Unlike the other popular Chinese indices (CSI, SSE, ChiNext, etc.) that rebalance semiannually, the STAR 50 index has a quarterly rebalance cycle and the next rebalance will be in September.
  • With the reference period for the September 2024 STAR 50 index rebal event coming to an end, we have presented our final expectations for ADDs and DELs in this insight.

Capitol Health (CAJ AU): Binding Merger with Integral Diagnostics (IDX AU)

By Arun George

  • Capitol Health (CAJ AU) has entered a binding merger proposal with Integral Diagnostics (IDX AU) at 0.12849 Integral shares per Capitol share.
  • The transaction will require approval from the ACCC and Capitol shareholders. Due to the minimal geographic overlap, ACCC clearance should be forthcoming.
  • The offer is attractive compared to historical exchange ratios, trading ranges and peer multiples. At the last close, the gross spread was 8.0%. 

Capitol Health (CAJ AU)/Integral Diagnostics (IDX AU): An Improved Image – Now Firmed

By David Blennerhassett

  • Back on the 17th June, diagnostic imaging provider Capitol Health (CAJ AU) announced it had entered into a process deed with Integral Diagnostics (IDX AU). Terms are now firmed.
  • IDX will issue 0.12849 new IDX shares for each Capitol share. Scrip terms are unchanged from that announced previously. Upon completing the transaction, Integral would hold 63% in the NewCo. 
  • Apart from ACCC signing off, this transaction looks priced to complete. 

Liquid Universe of European Ordinary and Preferred Shares: July‘24 Report

By Jesus Rodriguez Aguilar

  • Since mid-June, share-price spreads have generally tightened across our European liquid universe of ordinary and preferred shares (13 have tightened, 5 widened, 1 remained at same level).
  • Recommended trades long preferred / short ordinary shares: Atlas Copco, Grifols (see section on the company), Media-for-Europe, Sixt.
  • Recommended trades long ordinary / short preferred shares: Henkel, SSAB Svenska Stal.

S&P 500 September Forecasts: Saved by the Dell?

By Dimitris Ioannidis

  • Dell Technologies (DELL US) is the main candidate for addition-transition with uncertainty arising from the ‘Multiple Share Classes’ criterion. Forecasted demand is ~$7bn and ~4 ADV.
  • Williams Sonoma (WSM US) is one of the top candidates for addition-migration with uncertainty due to the migrations’ inconsistent market cap selection pattern. Forecasted demand is $840m and ~2.6 ADV.
  • American Airlines Group (AAL US) is one of the main candidates for deletion with uncertainty due to price hence ranking fluctuations until cut-off. Forecasted supply is $290m and ~0.8 ADV.

💡 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


Jul 18
0

Daily Brief Australia: Coal and more

By | Australia, Daily Briefs

In today’s briefing:

  • Warren Irwin on Uranium, Canada & Contrarian Opportunities

Warren Irwin on Uranium, Canada & Contrarian Opportunities

By Money of Mine

  • Recent changes in Canada’s M&A rules have restricted critical metal companies from selling to Chinese investors
  • Chinese investors have played a key role in funding the exploration and development of copper porphyries, which are vital for global production
  • The uncertainty caused by these rules may lead companies to relocate outside of Canada, potentially harming the country’s mining industry and economy

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

💡 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


Jul 18
0

Daily Brief South Korea: Hyundai Glovis, SK Innovation, Sanil Electric and more

By | Daily Briefs, South Korea

In today’s briefing:

  • Trading Opportunities Arising from the Enactment of The “Doosan Bobcat Prevention Law”
  • SK Innovation & SK E&S Merger Official Disclosure: Unexpected Merger Ratio
  • Sanil Electric IPO Book Building Results Analysis

Trading Opportunities Arising from the Enactment of The “Doosan Bobcat Prevention Law”

By Sanghyun Park

  • Korea’s majority party plans to amend the Capital Markets Act to base listed companies’ merger ratios on intrinsic rather than market value, dubbed the “Doosan Bobcat Prevention Law.”
  • Other conglomerates, like Hanwha and Hyundai Motor Group, may execute mergers just before this amendment.
  • We should expect shareholder-favorable merger ratios. So, we should position in such companies before announcements, ideally just before the new amendment’s enforcement.

SK Innovation & SK E&S Merger Official Disclosure: Unexpected Merger Ratio

By Sanghyun Park

  • The merger ratio, not as unfavorable to SK Innovation as feared, shows SK Group acting cautiously amid political and regulatory scrutiny.
  • SK Inc.’s stake will drop to mid-60s; the 1.2x merger ratio for SK E&S could positively affect SK Innovation’s stock price short-term.
  • Persuading KKR is crucial. SK E&S won’t convert ₩3T in RCPS or grant appraisal rights, potentially leading KKR to consider litigation, a significant risk to the merger.

Sanil Electric IPO Book Building Results Analysis

By Douglas Kim

  • Sanil Electric reported excellent IPO book building results. The IPO price has been determined at 35,000 won, which is 16.7% higher than the high end of the IPO price range.
  • The demand ratio from 2,205 institutional investors was 414 to 1. Sanil Electric (062040 KS) IPO will start trading on 29 July 2024. 
  • Our base case valuation of Sanil Electric is market cap of 1.8 trillion won or target price of 58,593 won (67% higher than the IPO price of 35,000 won).

💡 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


Jul 18
0

Daily Brief Thailand: Intouch Holdings, Gulf Energy Development , Advanced Info Service and more

By | Daily Briefs, Thailand

In today’s briefing:

  • Cascading Takeunders for INTUCH, ADVANC, and THCOM as GULF TB Seeks To “Restructure”
  • GULF-INTUCH Amalgamation
  • Gulf (GULF TB)/Intouch (INTUCH TB) Merger and ADVANC/THCOM VTOs
  • GULF/INTUCH Merger & ADVANC/THCOM VTO’s

Cascading Takeunders for INTUCH, ADVANC, and THCOM as GULF TB Seeks To “Restructure”

By Travis Lundy

GULF-INTUCH Amalgamation

By Waraporn Wiboonkanarak

  • The amalgamation will entail the ratios for allocations of shares in the NewCo to the shareholders of GULF and INTUCH as detailed below.
  • The amalgamation process and the establishment of the NewCo are expected to be completed in 2Q25.
  • The restructuring is aimed at reducing duplication in the shareholding structure and facilitating growth opportunities in the energy, infrastructure, and digital businesses.

Gulf (GULF TB)/Intouch (INTUCH TB) Merger and ADVANC/THCOM VTOs

By Arun George

GULF/INTUCH Merger & ADVANC/THCOM VTO’s

By Brian Freitas

💡 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


Jul 18
0

Daily Brief Singapore: Digital Realty Trust and more

By | Daily Briefs, Singapore

In today’s briefing:

  • What’s Trending: GenAI unleashes hyper demand for Data Centres

What’s Trending: GenAI unleashes hyper demand for Data Centres

By Geoff Howie

  • Ever wondered what is currently driving the local and regional markets? Pranay Yadav is a Senior Research Analyst at Mint Finance, a Singapore based research and consulting firm offering nuanced and deep insights on global macro and its impact on Singapore stocks, REITs, and ETFs.
  • From Pranay Yadav, Senior Research Analyst, Mint Finance: Among Singapore REITs with exposure to data centre properties, only Digital Core REIT (DCRU) and Keppel DC REIT (AJBU) have models focused entirely on data centres.

💡 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


Jul 18
0

Daily Brief Indonesia: Ciputra Development and more

By | Daily Briefs, Indonesia

In today’s briefing:

  • Ciputra Development (CTRA IJ) – Riding the Affordability Wave

Ciputra Development (CTRA IJ) – Riding the Affordability Wave

By Angus Mackintosh

  • Ciputra Development (CTRA IJ) continued to book strong marketing sales in 1H2024 and looks well on track to meet or beat its FY2024E guidance with a strong pipeline of projects.
  • CTRA has the most geographically diversified portfolios in the sector and operates an asset-light joint operating scheme strategy allowing for faster expansion and a good portion of recurrent rental income. 
  • The VAT exemption program looks set to continue to drive residential demand in 2H2024 with CTRA riding the affordability wave having also repositioned its target market. 

💡 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