Daily Briefs

NVIDIA, the undisputed leader in AI-driven GPUs, is currently navigating turbulent waters with its latest Blackwell architecture chips.
While the company has been riding high on record-breaking revenues and a surging demand for AI compute power, reports of overheating issues in Blackwell chips have cast a shadow over its otherwise stellar growth trajectory.
According to recent disclosures, these state-of-the-art GPUs face severe thermal management challenges when configured in server racks holding up to 72 units.

Disney’s Secret Weapons: How Streaming

The Walt Disney Company’s recent fourth-quarter and full-year 2024 financial results provided a comprehensive overview of both the progress and challenges faced by the company.
CEO Bob Iger highlighted the company’s strategic positioning for growth, emphasizing their momentum as a result of specific strategies across various business segments.
However, the commentary also reveals nuances in their operational dynamics and future outlook.

Warren Buffett’s Domino’s Pizza Deal: The Possible Strategy Behind The Recent $550 Million Investment! – Major Drivers

The recent earnings call for Domino’s Pizza highlighted several key aspects of its financial performance, strategic initiatives, and market dynamics, revealing both promising areas and challenges.
The company’s Hungry for MORE strategy appears to be yielding positive results domestically, but international markets face significant hurdles.
Domestically, Domino’s Pizza has successfully leveraged its value-focused Hungry for MORE strategy.

Inside the Buyout Buzz: Why Compass Minerals is Turning Heads on Wall Street!

Compass Minerals Inc. recently reported its second-quarter fiscal 2024 results.
The quarter demonstrated significant challenges, primarily attributable to unseasonably mild winter weather conditions across North America.
The Salt segment, a core part of the company’s operations, was notably affected by these conditions, leading to a substantial decrease in deicing salt sales volumes, ultimately reflecting a 14% decline in segment revenue and a 7% drop in adjusted EBITDA compared to the previous year.

Is AST SpaceMobile Losing Its Shine? Reddit’s Darling Faces Tough Questions After Losses! – Major Drivers

AST SpaceMobile recently reported a challenging Q3, with widened losses overshadowing its operational progress.
The company, which is transitioning from research and development (R&D) to commercial operations, highlighted key advancements such as the successful launch and activation of five Block 1 BlueBird satellites.
These satellites are integral to AST SpaceMobile’s mission of creating a space-based cellular broadband network that directly connects with mobile phones without modification, addressing global connectivity gaps.

Intuitive Machines’ Lunar Empire Takes Shape: Record Revenues and NASA Milestones! – Major Drivers

Intuitive Machines presented a positive third-quarter 2024 performance with considerable revenue growth and strategic achievements.
The company reported revenue of $58.5 million, marking more than a fourfold increase compared to the same quarter last year.
This increase was driven by their core service pillars of delivery, data transmission, and infrastructure as services, coupled with key contract awards such as the Near Space Network Services (NSNS), valued up to $4.82 billion over a decade.

Intuitive Machines’ Lunar Empire Takes Shape: Record Revenues and NASA Milestones! – Major Drivers

Intuitive Machines presented a positive third-quarter 2024 performance with considerable revenue growth and strategic achievements.
The company reported revenue of $58.5 million, marking more than a fourfold increase compared to the same quarter last year.
This increase was driven by their core service pillars of delivery, data transmission, and infrastructure as services, coupled with key contract awards such as the Near Space Network Services (NSNS), valued up to $4.82 billion over a decade.

SYM: Celebrating an Accounting Nightmare

By Hamed Khorsand

SYM reported fiscal fourth quarter results that at first glance were better than expected, but really included several accounting events that seem to hide how SYM had a poor quarter.
Along with the quarterly results, SYM disclosed a restatement of prior quarterly results where $39.1 million of high-margin revenue was transferred to the fourth quarter.
When we initiated coverage of SYM we were worried about the timing of revenue associated with Walmart (WMT) and not anticipating an accounting mess.

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Nov 20

Daily Brief Event-Driven: 7&I (3382) Ito Family MBO – New Urgency for ACT and more

By Smartkarma Daily Briefs | Daily Briefs, Event-Driven

In today’s briefing:

7&I (3382) Ito Family MBO – New Urgency for ACT
HKBN (1310 HK): China Mobile Comes Knocking. Again.
S&P/ASX Index Rebalance Preview (Dec 2024): Dexus and Spark NZ with Double Deletions
Hang Seng Index (HSI) Rebalance Preview: Inclusion Candidates for December
Integrated Design & Engineering (9161 JP): Tokio Marine (8766 JP) Tender Offer at JPY6,500
Sayona (SYA AU)/Piedmont (PLL AU)’s Merger Of Equals
Quiddity Leaderboard HSCEI Dec 24: Time for a LONG-SHORT Trade
I D & E Holdings (9161 JP) Gets a TOB Offer from Tokio Marine at +63% (¥6,500) – Probably Done
Quiddity Leaderboard HSTECH Dec 24: Large Flow Expectations Although No Index Changes Expected
Nagarro SE: Potential Takeover Amidst Financial Growth

7&I (3382) Ito Family MBO – New Urgency for ACT

Days ago we got a dramatic headline about Ito family scion ITO Junro and his family company Ito Kogyo making a bid for Seven & I Holdings (3382 JP).
The stock popped, then fell. Details were not clear. Was the ¥9trln an EV number? A market cap? Was he serious? How would he get funding. Skepticism was rife.
Today we get more headlines from NHK. who says the family wants to raise ¥8trln to take 7&i private by end-Feb 2025.

HKBN (1310 HK): China Mobile Comes Knocking. Again.

HKBN Ltd (1310 HK), a Hong Kong broadband play, is never short on privatisation rumours. China Mobile (941 HK) is reportedly (again) holding talks with HKBN’s major shareholders.
China Mobile is a logical suitor. I highly doubt a non-PRC (government-affiliated) corporation would be permitted to take HKBN private.
Previous takeover rumours over the years came to nought. It may be different this time. HKBN was suspended this morning pursuant to the Takeovers Code.

S&P/ASX Index Rebalance Preview (Dec 2024): Dexus and Spark NZ with Double Deletions

With the review period nearly complete, there could be one change for the S&P/ASX 50 Index and one change for the S&P/ASX 200 (AS51 INDEX) in December.
Both deletes are also deletions from a global index next week and there could be short-term buying/covering opportunities on a drop in the stock price.
There has been a buildup of cumulative excess volume in all stocks over the last few months. There has been no increase in positioning in CAR Group (CAR AU) recently.

Hang Seng Index (HSI) Rebalance Preview: Inclusion Candidates for December

Post market close on Friday, Hang Seng Indexes will announce the changes for the Hang Seng Index (HSI INDEX) that will be implemented at the close on 6 December.
With no increase in the number of index constituents this calendar year, there could be inclusions in December. The process of getting to 100 index constituents could drag into 2026.
Short interest is especially large in Sinotruk, Giant Biogene, Kuaishou Technology, ASMPT and JD Logistics and inclusion could set off some short covering.

Integrated Design & Engineering (9161 JP): Tokio Marine (8766 JP) Tender Offer at JPY6,500

Integrated Design & Engineering Holdings (9161 JP) has recommended Tokio Marine Holdings (8766 JP)’s tender offer at JPY6,500 per share, a 63.3% premium to the last close.
The offer is attractive as it represents an all-time high, above NAV (including latent real estate gains) and above the midpoint of the IFA DCF valuation range.
Despite the high required minority acceptance rate, an attractive offer facilitates deal completion. The tender runs from 20 November to 15 January 2025 (35 business days).

Sayona (SYA AU)/Piedmont (PLL AU)’s Merger Of Equals

North American hard-rock lithium plays Piedmont Lithium (PLL AU) and Sayona Mining (SYA AU) are to combine in all-stock merger with a ~50%/50% ownership split on a fully diluted basis.
Sayona will be the ultimate/surviving parent, via issuing 5.27 Sayona ordinary shares for each Piedmont share. Various equity raisings will also take place, before and after the merger.
EGMs for both Sayona and Piedmont shareholders are expected to be held in 1H25, with expected completion also in the 1H25.

Quiddity Leaderboard HSCEI Dec 24: Time for a LONG-SHORT Trade

The HSCEI serves as a benchmark to reflect the overall performance of the top 50 “Mainland China” securities listed in Hong Kong.
The official index changes will be confirmed later this week on Friday 22nd November 2024.
In this insight, we take a look at our final index change expectations and updated flow estimates for the upcoming index rebal event.

I D & E Holdings (9161 JP) Gets a TOB Offer from Tokio Marine at +63% (¥6,500) – Probably Done

In 2023, Integrated Design & Engineering Holdings (9161 JP) was created as a technical listing, succeeding Nippon Koei (1954 JP). It has been listed for decades.
On Tuesday 19 November, Tokio Marine Holdings (8766 JP) announced an agreed/supported deal to buy out Integrated Design & Engineering Holdings (9161 JP). The register is open. Should be easy.
It’s a nice high price for a boring stock, but it is cheap. They are NOT overpaying, but I don’t see who would want to run interference on this.

Quiddity Leaderboard HSTECH Dec 24: Large Flow Expectations Although No Index Changes Expected

The HSTECH Index tracks the performance of the top 30 technology companies listed in Hong Kong that have high business exposure to certain technology themes.
The official index changes and indicative weights for the December 2024 index rebal event will be announced later this week on Friday 22nd November 2024.
In this insight, we take a look at our updated flow expectations.

Nagarro SE: Potential Takeover Amidst Financial Growth

By Jesus Rodriguez Aguilar

Nagarro SE (NA9 GR) is in discussions for a potential delisting and takeover, with private equity firm Warburg Pincus reportedly considering a buyout.
Strong Financial Growth: Q3 2024 revenue rose by 3.7% to €242.9M, with a 5.6% constant currency growth, adjusted EBITDA improving to €34.6M (14.3% of revenue).
Nagarro trades at a P/E ratio below peers, suggesting undervaluation despite financial resilience, strong liquid assets, and 14% stock price growth over the last eight trading days.

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Nov 20

Daily Brief Technical Analysis: Buy the Pullback Again; S&P 500 and more

By Smartkarma Daily Briefs | Daily Briefs, Technical Analysis

In today’s briefing:

Buy the Pullback Again; S&P 500, Nasdaq 100, Russell 2000 Testing Confluence of Support

Buy the Pullback Again; S&P 500, Nasdaq 100, Russell 2000 Testing Confluence of Support

By Joe Jasper

Our outlook remains bullish following the S&P 500’s multi-month base breakout above 5670, alongside healthy market dynamics which have continued to improve.
Two weeks ago, our election day report (11/5/24) was titled “Buy the Pullback,” and with the SPX/QQQ/IWM pulling back to their 20-day MAs, it’s time to buy the pullback again.
We continue to expect significant upside into year-end and early 2025, and we expect support at the 20-day MAs on the aforementioned indexes (though support at 50-day MAs is possible).

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Nov 20

Daily Brief ECM: SF Holdings A/H Listing – Lower End Looks Digestable and more

By Smartkarma Daily Briefs | Daily Briefs, ECM

In today’s briefing:

SF Holdings A/H Listing – Lower End Looks Digestable
KDC REIT Placement – Accretive Acquisitions Should Garner Strong Support
SF Holding H Share Listing (6936 HK): Valuation Insights
Oswal Pumps Pre-IPO – Revenue Surge Driven by Growing Demand in Solar Projects
Pre-IPO S.F. Holding (6936 HK) – Thoughts on Valuation and the Outlook
DigiCo REIT – The Negatives – Not All Engines Are Firing
NTPC Green IPO – Grand Plans to Grow Its Portfolio, but Appears Expensive

SF Holdings A/H Listing – Lower End Looks Digestable

S.F. Holding (002352 CH), China’s largest express delivery company, is now looking to raise around US$800m in its H-share listing in Hong Kong.
SFH is the largest integrated express logistics service provider in China and the fourth largest in the world. It has been listed on the Shenzhen Stock Exchange since 2017.
We have covered the company and deal background in our previous notes. In this note, we talk about the IPO pricing.

KDC REIT Placement – Accretive Acquisitions Should Garner Strong Support

Keppel DC REIT (KDCREIT SP) is looking to raise S$600m (US$450m) from a primary placement. The proceeds will be used to acquire interest in two data centers in Singapore.
The deal will be a large one to digest, accounting for 47 days of the stock’s three month ADV. That said, the acquisitions appear to be accretive to bottomline.
In this note, we’ll run the deal through our ECM framework and comment on deal dynamics.

SF Holding H Share Listing (6936 HK): Valuation Insights

S.F. Holding (002352 CH) has launched its H Share listing at HK$32.30-36.30 per share. Pricing will be on 25 November, and the listing on 27 November.
We previously discussed the listing in SF Holding H Share Listing: Updates Point to Improving Fundamentals and SF Holding H Share Listing: AH Discount Views.
Our valuation analysis suggests that the H Share listing range is attractive. We would participate in the listing.

Oswal Pumps Pre-IPO – Revenue Surge Driven by Growing Demand in Solar Projects

By Rosita Fernandes

Oswal Pumps (1019841D IN) (OPL), established in 2003, specializes in the manufacturing of solar-powered and conventional pumps, electric motors, and related components for agricultural, residential, and industrial applications.
The company has established itself as a leading player in the solar pump market, benefiting from government initiatives such as the PM Kusum scheme
OPL aims to use its IPO proceeds to fund its expansion plans, including increasing manufacturing capacity and diversifying its product offerings.

Pre-IPO S.F. Holding (6936 HK) – Thoughts on Valuation and the Outlook

By Xinyao (Criss) Wang

One important reason S.F. chose to go public on Hong Kong stock market is due to financial pressure, which mainly comes from its heavy asset development model and internationalization strategy.
Considering the discount of the H-share price versus the A-share price, if the IPO pricing is at the lower limit of the range, then the safety margin would be higher.
In the short term, S.F. is better than JD Logistics, so its valuation should be higher than JD Logistics and industry average. Future valuation expansion depends on international business performance.

DigiCo REIT – The Negatives – Not All Engines Are Firing

DigiCo REIT (DIGICO AU) aims to raise over US$1bn in its Australian IPO.
DigiCo REIT (DREIT) aims to be a diversified owner, operator and developer of data centres, with a global portfolio and broad investment mandate across stabilised, value-add and development opportunities
In this note, we talk about the not-so-positive aspects of the deal.

NTPC Green IPO – Grand Plans to Grow Its Portfolio, but Appears Expensive

NTPC Green Energy Ltd (2214556D IN) is looking to raise around US$1.2bn in its upcoming India IPO.
NTPC Green Energy Limited (NGEL) is a renewable energy public sector enterprise and a wholly owned subsidiary of NTPC Limited, a Maharatna central public sector enterprise (PSU).
In an earlier note, we looked at the firm’s past performance. In this note, we look at its RHP updates, undertake a peer comparison and discuss our thoughts on valuation.

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Nov 20

Daily Brief Australia: CAR Group , Piedmont Lithium, DigiCo REIT and more

By Smartkarma Daily Briefs | Australia, Daily Briefs

In today’s briefing:

S&P/ASX Index Rebalance Preview (Dec 2024): Dexus and Spark NZ with Double Deletions
Sayona (SYA AU)/Piedmont (PLL AU)’s Merger Of Equals
DigiCo REIT – The Negatives – Not All Engines Are Firing

S&P/ASX Index Rebalance Preview (Dec 2024): Dexus and Spark NZ with Double Deletions

With the review period nearly complete, there could be one change for the S&P/ASX 50 Index and one change for the S&P/ASX 200 (AS51 INDEX) in December.
Both deletes are also deletions from a global index next week and there could be short-term buying/covering opportunities on a drop in the stock price.
There has been a buildup of cumulative excess volume in all stocks over the last few months. There has been no increase in positioning in CAR Group (CAR AU) recently.

Sayona (SYA AU)/Piedmont (PLL AU)’s Merger Of Equals

North American hard-rock lithium plays Piedmont Lithium (PLL AU) and Sayona Mining (SYA AU) are to combine in all-stock merger with a ~50%/50% ownership split on a fully diluted basis.
Sayona will be the ultimate/surviving parent, via issuing 5.27 Sayona ordinary shares for each Piedmont share. Various equity raisings will also take place, before and after the merger.
EGMs for both Sayona and Piedmont shareholders are expected to be held in 1H25, with expected completion also in the 1H25.

DigiCo REIT – The Negatives – Not All Engines Are Firing

DigiCo REIT (DIGICO AU) aims to raise over US$1bn in its Australian IPO.
DigiCo REIT (DREIT) aims to be a diversified owner, operator and developer of data centres, with a global portfolio and broad investment mandate across stabilised, value-add and development opportunities
In this note, we talk about the not-so-positive aspects of the deal.

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Nov 20

Daily Brief China: HKBN Ltd, S.F. Holding, Kuaishou Technology, PICC Property & Casualty H, XPeng , Trip.com Group , ZTO Express Cayman , Iron Ore and more

By Smartkarma Daily Briefs | China, Daily Briefs

In today’s briefing:

HKBN (1310 HK): China Mobile Comes Knocking. Again.
SF Holdings A/H Listing – Lower End Looks Digestable
Hang Seng Index (HSI) Rebalance Preview: Inclusion Candidates for December
Quiddity Leaderboard HSCEI Dec 24: Time for a LONG-SHORT Trade
Quiddity Leaderboard HSTECH Dec 24: Large Flow Expectations Although No Index Changes Expected
Trip.com (9961.HK, TCOM): 3Q24, Still Healthy, But Stock Price Exceeded Our Last Target
SF Holding H Share Listing (6936 HK): Valuation Insights
Pre-IPO S.F. Holding (6936 HK) – Thoughts on Valuation and the Outlook
ZTO Express Q324 Results: Shift in Strategy Leads to Lower Core Margins & FY24 Guidance Cut | AVOID
IO Weekly Technicals Review [2024/46]: IO to Rise on Seasonality

HKBN (1310 HK): China Mobile Comes Knocking. Again.

HKBN Ltd (1310 HK), a Hong Kong broadband play, is never short on privatisation rumours. China Mobile (941 HK) is reportedly (again) holding talks with HKBN’s major shareholders.
China Mobile is a logical suitor. I highly doubt a non-PRC (government-affiliated) corporation would be permitted to take HKBN private.
Previous takeover rumours over the years came to nought. It may be different this time. HKBN was suspended this morning pursuant to the Takeovers Code.

SF Holdings A/H Listing – Lower End Looks Digestable

S.F. Holding (002352 CH), China’s largest express delivery company, is now looking to raise around US$800m in its H-share listing in Hong Kong.
SFH is the largest integrated express logistics service provider in China and the fourth largest in the world. It has been listed on the Shenzhen Stock Exchange since 2017.
We have covered the company and deal background in our previous notes. In this note, we talk about the IPO pricing.

Hang Seng Index (HSI) Rebalance Preview: Inclusion Candidates for December

Post market close on Friday, Hang Seng Indexes will announce the changes for the Hang Seng Index (HSI INDEX) that will be implemented at the close on 6 December.
With no increase in the number of index constituents this calendar year, there could be inclusions in December. The process of getting to 100 index constituents could drag into 2026.
Short interest is especially large in Sinotruk, Giant Biogene, Kuaishou Technology, ASMPT and JD Logistics and inclusion could set off some short covering.

Quiddity Leaderboard HSCEI Dec 24: Time for a LONG-SHORT Trade

The HSCEI serves as a benchmark to reflect the overall performance of the top 50 “Mainland China” securities listed in Hong Kong.
The official index changes will be confirmed later this week on Friday 22nd November 2024.
In this insight, we take a look at our final index change expectations and updated flow estimates for the upcoming index rebal event.

Quiddity Leaderboard HSTECH Dec 24: Large Flow Expectations Although No Index Changes Expected

The HSTECH Index tracks the performance of the top 30 technology companies listed in Hong Kong that have high business exposure to certain technology themes.
The official index changes and indicative weights for the December 2024 index rebal event will be announced later this week on Friday 22nd November 2024.
In this insight, we take a look at our updated flow expectations.

Trip.com (9961.HK, TCOM): 3Q24, Still Healthy, But Stock Price Exceeded Our Last Target

By Ming Lu

The stock has risen by 38% since our last buy rate.
The 3Q24 results are still healthy – both growth rate and operating margin.
We set a downside of 19% for the end of 2025.

SF Holding H Share Listing (6936 HK): Valuation Insights

S.F. Holding (002352 CH) has launched its H Share listing at HK$32.30-36.30 per share. Pricing will be on 25 November, and the listing on 27 November.
We previously discussed the listing in SF Holding H Share Listing: Updates Point to Improving Fundamentals and SF Holding H Share Listing: AH Discount Views.
Our valuation analysis suggests that the H Share listing range is attractive. We would participate in the listing.

Pre-IPO S.F. Holding (6936 HK) – Thoughts on Valuation and the Outlook

By Xinyao (Criss) Wang

One important reason S.F. chose to go public on Hong Kong stock market is due to financial pressure, which mainly comes from its heavy asset development model and internationalization strategy.
Considering the discount of the H-share price versus the A-share price, if the IPO pricing is at the lower limit of the range, then the safety margin would be higher.
In the short term, S.F. is better than JD Logistics, so its valuation should be higher than JD Logistics and industry average. Future valuation expansion depends on international business performance.

ZTO Express Q324 Results: Shift in Strategy Leads to Lower Core Margins & FY24 Guidance Cut | AVOID

By Daniel Hellberg

Going into FY24, ZTO aimed to focus on price, cede volume share in support of margins
It hasn’t worked: in Q324, adj EBITDA margin fell -290 bps Y/Y despite higher ASPs
Q324 results reveal weak earnngs growth, & reduced FY24 volume target; AVOID

IO Weekly Technicals Review [2024/46]: IO to Rise on Seasonality

By Suhas Reddy

SGX Iron Ore Futures dropped to USD 96.71/ton, down USD 5.49/ton, hitting a low of USD 96.30/ton amid pressure from declining housing prices and industrial output in China.
Chinese portside inventories increased by 120k tons WoW to 148.51m tons last week, while average daily port discharge volumes rose by 131k tons WoW to 3.18m tons.
Despite weak economic data from China, SGX Iron Ore Futures may rebound in November-December as pre-Lunar New Year restocking boosts steel demand.

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Nov 20

Daily Brief Macro: Major M&A Rule Changes Approved by the Korean Government and more

By Smartkarma Daily Briefs | Daily Briefs, Macro

In today’s briefing:

Major M&A Rule Changes Approved by the Korean Government
The Taiwan Question
IO Weekly Technicals Review [2024/46]: IO to Rise on Seasonality
EA Inflation Doesn’t Need A 50bp Cut
CX Daily: China Digs In to Boost Mining in Democratic Republic of Congo
India Twin Deficit Watch: Improving Trend Persists Despite EPS and Trade Setbacks

Major M&A Rule Changes Approved by the Korean Government

By Douglas Kim

On 19 November, the Financial Services Commission (FSC) announced major rule changes on corporate mergers and acquisitions have been approved by the Korean government.
Revised rules have three specific goals: Improve rules on calculating and determining merger prices when M&As take place between nonaffiliated business entities, strengthen disclosure duties, and improve external evaluation system.
If the Korean government is really serious about making positive rule changes, they need to apply these new laws not just for NON-AFFILIATED companies but more importantly for AFFIILATED companies.

The Taiwan Question

By Sharmila Whelan

We went long Taiwan equities end-2023 in expectation of regional outperformance. The TAIEX is up 31% CYTD. It has further to run. Ignore geopolitics, stay overweight equities and the NT$.
The economic and corporate earnings outlooks are positive. The Taiwanese business cycle is in a broad-based upswing. Corporate fundamentals are healthy. The investment and credit cycles are strengthening.
Meanwhile China dependence is declining. Exporters are diversifying away, and manufacturers are sensibly hedging against geopolitical risks and the Chinese economy by investing beyond.

IO Weekly Technicals Review [2024/46]: IO to Rise on Seasonality

By Suhas Reddy

SGX Iron Ore Futures dropped to USD 96.71/ton, down USD 5.49/ton, hitting a low of USD 96.30/ton amid pressure from declining housing prices and industrial output in China.
Chinese portside inventories increased by 120k tons WoW to 148.51m tons last week, while average daily port discharge volumes rose by 131k tons WoW to 3.18m tons.
Despite weak economic data from China, SGX Iron Ore Futures may rebound in November-December as pre-Lunar New Year restocking boosts steel demand.

EA Inflation Doesn’t Need A 50bp Cut

By Phil Rush

October’s final Euro area inflation print confirmed its surprisingly steep rise to 2% y-o-y. Strength was not only broad across countries but components with median rates rising.
Underlying inflation pressures were broadly above expectations and target-consistent levels. Upwardly revised labour cost growth won’t help sustain 2% HICP inflation.
Confirmed price and wage inflation strength adds to hawkish GDP and unemployment news, curbing the case for 50bp to remain less likely than the dovish market hopes.

CX Daily: China Digs In to Boost Mining in Democratic Republic of Congo

By Caixin Global

Mining / Cover Story: China digs in to boost mining in Democratic Republic of Congo
Stabbings /: Eight killed in stabbing at vocational college in East China
Futures /: Futures firm linked to fugitive tycoon seized by securities regulator

India Twin Deficit Watch: Improving Trend Persists Despite EPS and Trade Setbacks

By Prasenjit K. Basu

For H1FY25, the fiscal deficit was only 29.4% of the FY25 target, with strong income-tax, GST and customs revenue. The 12mma of the fiscal deficit narrowed to 4.6% of GDP.
Corporate tax revenue grew just 2.3%YoY in H1FY25, reflecting slower profits growth. Stronger government spending likely in H2FY25, but fiscal deficit will still be well below 4.9% of GDP.
CAD likely to be 1.3% of GDP in H1FY25. Lower oil prices, stronger G&S exports should allow a small CA surplus in H2FY25, shrinking FY25 CAD to 0.2% of GDP.

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Nov 20

Daily Brief India: EFCI Ltd, Federal Bank, Oswal Pumps, Adani Green Energy, NTPC Green Energy Ltd and more

By Smartkarma Daily Briefs | Daily Briefs, India

In today’s briefing:

The Beat Ideas: EFC(I) Limited – The Indian Wework!
EQD | Nifty Banks – Single Stock Options and Relative Value Opportunities
Oswal Pumps Pre-IPO – Revenue Surge Driven by Growing Demand in Solar Projects
Lucror Analytics – Morning Views Asia
NTPC Green IPO – Grand Plans to Grow Its Portfolio, but Appears Expensive

The Beat Ideas: EFC(I) Limited – The Indian Wework!

By Sudarshan Bhandari

EFCI Ltd (EFCIL IN) is one of few companies in the Flex Space Operator Business present in the entire value chain providing an unbeatable edge in Cost competitiveness.
Management target is to double revenue in FY25 capitalising on sector tailwinds driving exponential growth in all business verticals.
Completed Backward Integration through manufacturing furniture which will help increase margins as furniture comprise 40-50% of total fitout cost.

EQD | Nifty Banks – Single Stock Options and Relative Value Opportunities

By Gaudenz Schneider

The NIFTY Index (NIFTY INDEX) and the NSE Nifty Bank Index (NSEBANK INDEX EQUITY) reached all-time highs on 26 September 2024 but have since declined.
Most stocks in the Bank Index have fallen below their 200 and 50 day moving average,. Volatilities have gone up, but trade cheap when compared to historical levels.
Opportunities present themselves either in stocks that stayed resilient during the downturn (Federal Bank (FB IN)),or fell and gained in implied volatility. A long-short strategy might also be considered.

Oswal Pumps Pre-IPO – Revenue Surge Driven by Growing Demand in Solar Projects

By Rosita Fernandes

Oswal Pumps (1019841D IN) (OPL), established in 2003, specializes in the manufacturing of solar-powered and conventional pumps, electric motors, and related components for agricultural, residential, and industrial applications.
The company has established itself as a leading player in the solar pump market, benefiting from government initiatives such as the PM Kusum scheme
OPL aims to use its IPO proceeds to fund its expansion plans, including increasing manufacturing capacity and diversifying its product offerings.

Lucror Analytics – Morning Views Asia

By Tanvi Arora

In today’s Morning Views publication we comment on developments of the following high yield issuers: Adani Green Energy, Yankuang Energy
In the US, treasuries edged higher yesterday, with yields declining 2-4 bps across the curve on possible dip buying and despite a large slate of corporate bond issuances.
The yield on the 2Y UST fell 3 bps to 4.28%, while the 10Y declined 3 bps to 4.41%. Equities rebounded from last week’s losses, with the S&P 500 and Nasdaq up 0.4% and 0.6%, respectively.

NTPC Green IPO – Grand Plans to Grow Its Portfolio, but Appears Expensive

NTPC Green Energy Ltd (2214556D IN) is looking to raise around US$1.2bn in its upcoming India IPO.
NTPC Green Energy Limited (NGEL) is a renewable energy public sector enterprise and a wholly owned subsidiary of NTPC Limited, a Maharatna central public sector enterprise (PSU).
In an earlier note, we looked at the firm’s past performance. In this note, we look at its RHP updates, undertake a peer comparison and discuss our thoughts on valuation.

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Nov 20

Daily Brief Singapore: Keppel DC REIT and more

By Smartkarma Daily Briefs | Daily Briefs, Singapore

In today’s briefing:

KDC REIT Placement – Accretive Acquisitions Should Garner Strong Support

KDC REIT Placement – Accretive Acquisitions Should Garner Strong Support

Keppel DC REIT (KDCREIT SP) is looking to raise S$600m (US$450m) from a primary placement. The proceeds will be used to acquire interest in two data centers in Singapore.
The deal will be a large one to digest, accounting for 47 days of the stock’s three month ADV. That said, the acquisitions appear to be accretive to bottomline.
In this note, we’ll run the deal through our ECM framework and comment on deal dynamics.

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✓ Personalised Alerts
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✓ Company Data and News
✓ Events & Webinars

Nov 20

Daily Brief Japan: Seven & I Holdings, Integrated Design & Engineering Holdings, ASICS Corp, Santen Pharmaceutical, Japan Elevator Service Holding, Itochu Corp, TSE Tokyo Price Index TOPIX, D.Western Therapeutics Institute Inc. and more

By Smartkarma Daily Briefs | Daily Briefs, Japan

In today’s briefing:

7&I (3382) Ito Family MBO – New Urgency for ACT
Integrated Design & Engineering (9161 JP): Tokio Marine (8766 JP) Tender Offer at JPY6,500
I D & E Holdings (9161 JP) Gets a TOB Offer from Tokio Marine at +63% (¥6,500) – Probably Done
Asics (7936) | Upgraded Targets on Fashion Pivot
Santen Pharmaceutical (4536 JP): Subdued H1 Performance; FY25 Guidance Reiterated; Robust Pipeline
Japan Elevator Service Holdings (6544 JP) – Demonstrating High-Quality Characteristics
Mash Buys into LeSportsac with Itochu
Market Shakeout Should Come with Business Portfolio Restructuring Especially for Small-Cap Companies
D. Western Therapeutics Institute (4576 JP) – News Flash – November 19, 2024

7&I (3382) Ito Family MBO – New Urgency for ACT

Days ago we got a dramatic headline about Ito family scion ITO Junro and his family company Ito Kogyo making a bid for Seven & I Holdings (3382 JP).
The stock popped, then fell. Details were not clear. Was the ¥9trln an EV number? A market cap? Was he serious? How would he get funding. Skepticism was rife.
Today we get more headlines from NHK. who says the family wants to raise ¥8trln to take 7&i private by end-Feb 2025.

Integrated Design & Engineering (9161 JP): Tokio Marine (8766 JP) Tender Offer at JPY6,500

Integrated Design & Engineering Holdings (9161 JP) has recommended Tokio Marine Holdings (8766 JP)’s tender offer at JPY6,500 per share, a 63.3% premium to the last close.
The offer is attractive as it represents an all-time high, above NAV (including latent real estate gains) and above the midpoint of the IFA DCF valuation range.
Despite the high required minority acceptance rate, an attractive offer facilitates deal completion. The tender runs from 20 November to 15 January 2025 (35 business days).

I D & E Holdings (9161 JP) Gets a TOB Offer from Tokio Marine at +63% (¥6,500) – Probably Done