Daily Briefs

Today just before the close, Reuters came out with an article saying Japan’s four major insurers and some financial institutions would offer ¥500bn of shares in a secondary offering.
That implies about 275-280mm shares (insurers hold ~195mm). In May, Honda announced a ¥300bn buyback with earnings, with nothing done so far.
The supply/demand dynamics here are key. There are a lot of moving parts over time. Honda is cheaper than it looks but there are moving parts there too.

Japan CorpGovReport Details: TSE “Mgmt Conscious of Capital Cost/Stock Price” Details (Jul24)

This month (June) saw 1,673 Corporate Governance Reports filed and 5 new “Mgmt Conscious of Capital Cost/Stock Price” policies filed.
We created a tool show every report, provide links to every document, and now a new diff file tool. Put in a name, see the difference between the Old/New Reports.
We hope this took will help. It is designed to be a shelf reference. We update the tool once a month, a couple of weeks ahead of the TSE.

HDFC Bank (HDFCB IN): Foreign Room Crosses 25%; Index Implications & Positioning for US$5bn+ Buying

Foreign shareholding in HDFC Bank (HDFCB IN) has dropped to 54.83% and that results in foreign room crossing the ‘magical’ 25% mark.
The increase in foreign room could lead to passive trackers of a global index needing to buy 256m shares (US$5.3bn; 11.5x ADV) at the end of August.
There will definitely be positioning in the stock but there should still be upside in the stock. The HDFC Bank (ADR) (HDB US) line was up 4.5% overnight.

HSCI Index Rebalance Preview and Stock Connect: Potential Changes in September

We see 37 potential adds (including plenty of new listings) and 25 potential deletes (on market cap and liquidity) for the Hang Seng Composite Index in September.
We expect 32 stocks to be added to Southbound Stock Connect following the rebalance while 24 stocks could be deleted from the trading link and become Sell-only.
There are stocks that have a very high percentage of holdings via Stock Connect and there could be some unwinding prior to the stocks becoming Sell-only.

China TCM (570.HK) Update – Behind The Share Price Plunge and Prospects for Privatization Progress

By Xinyao (Criss) Wang

The slow progress of privatization is related to recent high-level changes in CNPGC. Decisions on SOE deals with “strategic purpose” require careful considerations, not based on “one leader’s personal preferences”.
Based on public information, we cannot find convincing reason to prove that CNPGC has changed its mind.There’re rumors that China TCM’s privatization is still considered important project on the agenda.
China TCM’s has strong fundamentals to support valuation. If there is no announcement, the privatization process is expected to proceed as usual, and we continue to wait for the voting.

Alpha Generation Through Share Buybacks in Korea: Bi-Monthly (May and June 2024)

By Douglas Kim

In this insight, we discuss the alpha generation through companies that have been buying back their shares in the Korean stock market in May and June 2024.
On average, the share buyback announcements for the 13 companies that announced share buybacks in Korea represented 1.7% of outstanding shares.
Major companies that have announced share buybacks in Korea in the past two months include Celltrion Inc (068270 KS), SK IE Technology (361610 KS), and NCSOFT Corp (036570 KS).

HSTECH Index Rebalance Preview: ASM Pacific (522) Could Replace Ping An Health (1833); US$1bn Trade

ASM Pacific Technology (522 HK) is expected to replace Ping An Healthcare and Technol (1833 HK) in the Hang Seng TECH Index (HSTECH INDEX) at the September rebalance.
Constituent changes and capping changes will result in a one-way turnover of 3.7% and that will result in a round-trip trade of HK$7.8bn (US$1bn).
Short interest is near the lows on both stocks but there has been a recent tick higher for ASM Pacific Technology (522 HK).

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Jul 03

Daily Brief Equity Bottom-Up: NVIDIA’s Conundrum… and more

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

In today’s briefing:

NVIDIA’s Conundrum…
Fast Retailing (9983) | Red Hot Summer
The Beat Ideas- Ratnaveer Precision Engineering: Fueled with Capacity Expansion
Samsung Biologics (207940 KS): Gaining Momentum on New Approval and Contract Wins; Hold Shares
Fresenius Medical Care AG & Co.: How Are They Executing Portfolio Optimization through Divestitures? – Major Growth Drivers
Daiseki Co Ltd (9793 JP): Q1 FY02/25 flash update
Ionis Pharmaceuticals Inc.: Expanding Pipeline with Promising Drug Candidates! – Major Growth Drivers
TripAdvisor Inc.: Focus on User Engagement and Monetization Strategies & Other Major Growth Drivers
Elanco Animal Health Incorporated: Will The Accelerated Global Rollout of Zenrelia Boost Its Top-Line? – Major Growth Drivers
AptarGroup Inc.: A Tale Of Recovery and Growth in North American Markets! – Major Growth Drivers

NVIDIA’s Conundrum…

By William Keating

NVIDIA’s data center revenues tripled YoY in CY 2023 and are on track to more than double in CY 2024
When Intel dominated the data centre and minted tens of billions annually, its customers benefited even more, minting hundreds of billions.
If NVIDIA’s business model succeeds, its customers will succeed even more. This will make it extremely difficult for NVIDIA to remain the #1 global market cap stock.

Fast Retailing (9983) | Red Hot Summer

By Mark Chadwick

Domestic Uniqlo SSS (including e-commerce) were +14.9% in June. Positive
Impressive +8.1% increase in customer traffic and +6.3% gain in per-customer spend
I have a bearish view on Fast Retailing due to rich valuations (25x EV/EBIT). However, the share price may perform well in the run up to the Q3 report.

The Beat Ideas- Ratnaveer Precision Engineering: Fueled with Capacity Expansion

By Sudarshan Bhandari

23,000 MT Capacity expansion would double the current capacity to 49,000 MT
INR 65 crores of Fund Raise would help increase the bottom line
Backward integration of waste converted into raw material, ensuring economies of scale

Samsung Biologics (207940 KS): Gaining Momentum on New Approval and Contract Wins; Hold Shares

By Tina Banerjee

Samsung Biologics (207940 KS) has signed the largest ever single CMO contract worth KRW1.46T ($1.1B) with an undisclosed U.S.-based pharmaceutical company. The contract value represents ~40% of 2023 standalone revenue.
Within the first half of the year, Samsung Biologics has secured order worth of KRW2.6T, compared with order win of KRW3.5T in full-year 2023.
Samsung Bioepis has received FDA approval for Stelara biosimilar Pyzchiva, which is expected to marketed in early 2025. So far, the FDA has approved two other biosimilars of Stelara.

Fresenius Medical Care AG & Co.: How Are They Executing Portfolio Optimization through Divestitures? – Major Growth Drivers

Fresenius Medical Care, in its recent financial results, highlighted its commitment to continuing transformation and improvement across its segments.
Initiatives to streamline organizational structures, enhance clinic utilization, and advance strategic growth areas, notably in value-based care, were emphasized.
The company’s focus on optimizing manufacturing and supply chain processes is a critical element in its strategy to achieve margin improvements by 2025.

Daiseki Co Ltd (9793 JP): Q1 FY02/25 flash update

By Shared Research

In Q1 FY02/25, Daiseki reported sales of JPY16.7bn (-6.6% YoY), gross profit of JPY5.9bn (-1.1% YoY), and operating profit of JPY3.9bn (-0.7% YoY).
Daiseki Co.’s sales increased 7.0% YoY, while DES’s sales fell 28.4% YoY, leading to a consolidated sales decrease.
Consolidated operating profit for Q1 decreased by 0.7% YoY to JPY3.9bn, with OPM rising 1.4pp to 23.4%.

Ionis Pharmaceuticals Inc.: Expanding Pipeline with Promising Drug Candidates! – Major Growth Drivers

Ionis Pharmaceuticals commenced the year 2024 with notable strides, particularly through the launch of WAINUA in the U.S. This product, among others in the pipeline, is expected to lead the company towards a more independent operation in drug commercialization.
The company’s executives displayed confidence in the potential of upcoming products like olezarsen and donidalorsen to transform their respective therapeutic areas and achieve market penetration based on strong clinical results.
Baptista Research looks to evaluate the different factors that could influence the company’s price in the near future and attempts to carry out an independent valuation of the company using a Discounted Cash Flow (DCF) methodology.

TripAdvisor Inc.: Focus on User Engagement and Monetization Strategies & Other Major Growth Drivers

Tripadvisor’s fourth quarter and full year 2023 financial results exceeded expectations with the company reporting revenue growth of 10% year-on-year amounting to $390 million in Q4.
In the same period, the adjusted EBITDA was $84 million attributed to exceptional brand performance and marketing efficiencies.
For the full year, the company reported a consolidated revenue growth of 20%, recording an all-time high of $1.8 billion, with adjusted EBITDA experiencing a 13% growth to $334 million.

Elanco Animal Health Incorporated: Will The Accelerated Global Rollout of Zenrelia Boost Its Top-Line? – Major Growth Drivers

Elanco Animal Health Incorporated has demonstrated a strong start to 2024 with positive developments in multiple areas of its business, despite facing some challenges.
The company has achieved encouraging financial and operational results, underscored by success in its strategic initiatives aimed at enhancement and innovation.
Starting with the financials, Elanco surpassed its revenue, adjusted EBITDA, and adjusted EPS guidance for Q1 2024, indicating robust underlying business performance.

AptarGroup Inc.: A Tale Of Recovery and Growth in North American Markets! – Major Growth Drivers

Aptar, a global leader in drug delivery systems and consumer product dispensing, has reported robust first quarter financial results for 2024.
The company disclosed a 5% core sales growth and a remarkable more than 30% increase in adjusted earnings per share (EPS) as compared to the previous year.
Notably, the Pharma segment exhibited strong performance driven by sustained demand for its proprietary drug delivery systems, marking high single-digit core sales growth.

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Jul 03

Daily Brief Macro: Non-Consensus Forecast: No Fed Rate Cut This Year and more

By Smartkarma Daily Briefs | Daily Briefs, Macro

In today’s briefing:

Non-Consensus Forecast: No Fed Rate Cut This Year
Response to Premier Li: Post COVID Chinese Economy
QE With Chinese Characteristics: What It Will Look Like.
China Economics: Expect Few Changes in Third Plenum
Regional Economics: In A Stormier World, Can Asia’s Ship Remain Steady?
US: Receding Inflation Has Put 3 Rate Cuts Back in Play for 2024
Great Game – Biden in Free-Fall and a French Ménage À Trois
Euro area Unemployment Rate 6.4% (consensus 6.4) in May-24
EA: ECB Not Yet Stuck By Service Prices

Non-Consensus Forecast: No Fed Rate Cut This Year

By Alex Ng

We are against the majority opinion that Fed will cut rate in September meeting. Also majority forecast there will be 1-2 rate cuts this year but we forecast none.
CORE PCE Price Index has been treading above 2% target, though it is on a decreasing trend two streaks on a roll and since Jan 2023.
We believe instead of targeting at the static CORE PCE Index for one data point, the Fed will consider a dynamic series of data points, known as cumulative inflation targeting.

Response to Premier Li: Post COVID Chinese Economy

By Alex Ng

In a recent forum, Chinese Premier Li Qiang is confident that Chinese economy was stagnant simply because of COVID. Now that COVID has gone, Chinese economy will eventually heal itself.
We believe rather Chinese economy will still be bumpy after COVID, with three major arrows against Chinese Economy, namely property sector slump, local government debt, and weak private sector.
Instead of the “self recovery” view of the economy proposed by Li, we believe government should more actively roll out fiscal and monetary stimulus.

QE With Chinese Characteristics: What It Will Look Like.

By David Mudd

PBOC announced that it will borrow and trade treasury bonds from primary markets.
The central bank will use Open Market Operations to not only control and steepen the yield curve, but also improve market liquidity.
Last week the 50-year bond dropped below the 2.5% yield which was the minimal threshold the PBOC indicated before defense.

China Economics: Expect Few Changes in Third Plenum

By Manu Bhaskaran

China’s latest consumer data will do little to convince the leadership to significantly step stimulus in the upcoming Third Plenum as support for advanced sectors remains key.
Beijing’s refraining from significant stimulus is deemed a feature, rather than a bug. Policymakers do not yet view the trade-offs as unmanageable.
While some incremental step-up in policy support may be on the cards, do not expect Beijing to rock the boat beyond that.

Regional Economics: In A Stormier World, Can Asia’s Ship Remain Steady?

By Manu Bhaskaran

While global economic conditions have been “so far so good”, there are signs of trouble that, while manageable for now, could darken the outlook if they spiral out of control.
On the upside, conditions in major markets such as the US and China are stabilizing, while global capital spending and technology cycles should be favourable for Asia.
While the risks are growing, resilient domestic demand and appropriate macroeconomic management should shield Asian markets from the worst of the downsides.

US: Receding Inflation Has Put 3 Rate Cuts Back in Play for 2024

By Prasenjit K. Basu

After a 0.99%MoM annualised rise in May’24, core PCE inflation eased to 2.57%YoY — lower than the 2.6%YoY end-CY24 projection that the FOMC believed was compatible with 3 rate cuts.
While the FOMC initially signalled QT in Jun’22, base money increased each month during Jul’23-Feb’24, contributing to higher inflation. Contracting base money since Mar’24 was key to moderating MoM inflation.
Core PCE will likely rise 2%QoQ (annualised) in Q2CY24, and 2.5%YoY in Jun’24. The release of those numbers six days before FOMC decision (31/7/24) will likely trigger Jul’24 rate cut.

Great Game – Biden in Free-Fall and a French Ménage À Trois

By Mikkel Rosenvold

Hello and welcome to this week’s Great Game.
The First Round of the French Legislative Election was held on Sunday and the initial results suggested a clear win for Marine Le Pen’s far-right coalition around her National Rally party
Biden is starting to drop rapidly in polls after the US presidential debate.

Euro area Unemployment Rate 6.4% (consensus 6.4) in May-24

By Heteronomics AI

The Euro area unemployment rate stayed at 6.4% in May 2024, indicating a stable labour market as it is below long-run and one-year averages.
Economic indicators showed moderate GDP and employment growth, reflecting a cautious sentiment in the market.
Services sector is expanding while the manufacturing sector is contracting, suggesting sector-specific challenges and potential inflationary pressures.

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

EA: ECB Not Yet Stuck By Service Prices

By Phil Rush

EA inflation matched consensus expectations of 2.5% y-o-y in June despite German softness as a Benelux surge offset it, with the outcome 6bps above our forecast.
Services inflation was responsible for the upside again, as it was worryingly stuck at 4.1%, suggesting there has been no underlying progress in the past several months.
The stability of headline outcomes to past expectations reassures the ECB, keeping September alive for another cut, assuming its peers deliver on their bias to start soon.

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Jul 02

Daily Brief Energy/Materials: CPMC Holdings, Crude Oil, Sanil Electric, Rio Tinto Ltd, DFR Gold and more

By Smartkarma Daily Briefs | Daily Briefs, Energy & Materials Sector

In today’s briefing:

CPMC Holdings (906.HK) Privatization – Some New Information Worth the Attention
Berkshire’s Bullish Bet on Occidental Fails to Sway Market Sentiments
Sanil Electric IPO: The Bear Case
Selected European HoldCos and DLC: June’24 Report
DFR Gold – Termination of coverage

CPMC Holdings (906.HK) Privatization – Some New Information Worth the Attention

By Xinyao (Criss) Wang

ORG purchased 27% of CPMC’s shares at HK$6/share in 2015.After about eight years, Baosteel’s Offer Price was only HK$6.87/share. The annualized return rate was low, which obviously cannot satisfy ORG.
Baosteel and CPMC have been in talks for a long time – There may have been some “tacit agreement” between the two parties. The approval process is smooth so far.
For acquisitions/consolidation between SOEs, private enterprises usually have limited chances of winning.ORG has financial pressure and the approval process face uncertainties. There would be more negotiations among CPMC, ORG, Baosteel.

Berkshire’s Bullish Bet on Occidental Fails to Sway Market Sentiments

By Suhas Reddy

Occidental trades at higher PE and PB valuations than Exxon Mobil, Chevron, Shell, TotalEnergies, and BP. European oil majors are cheaper than American peers.
Occidental has been the Permian Basin’s leading oil and gas producer for the past five years.
Occidental expects to close the USD 12 billion CrownRock acquisition by August. The deal is anticipated to boost its oil output by 170k bpd.

Sanil Electric IPO: The Bear Case

By Arun George

Sanil Electric (062040 KS), a Korean industrial transformer manufacturer, is seeking to raise up to US$165 million.
In Sanil Electric IPO: The Bull Case, we highlighted the key elements of the bull case. In this note, we outline the bear case.
The bear case rests on rapidly slowing growth, high customer concentration, mid-tier revenue growth and mid-tier FCF margin compared to peers.

Selected European HoldCos and DLC: June’24 Report

By Jesus Rodriguez Aguilar

Discounts to NAV of covered holdcos didn’t follow a clear trend during June. Discounts to NAV: C.F.Alba, 44.5% (vs. 46.8%); GBL, 43.6% (vs. 42.9%); Heineken Holding, 18.4% (vs. 18.3%);
Industrivärden C, 2.4% (vs. 2.5%); Investor B, 9.9% (vs. 12%); Porsche Automobile Holding, 35.8% (vs. 35.3%). Rio DLC spread tightened to 20.7% (vs. 23%).
What seems interesting: Porsche SE vs. listed assets and the Rio DLC (long RIO LN/short RIO AU).

DFR Gold – Termination of coverage

By Edison Investment Research

Edison Investment Research is terminating coverage on Oxford Cannabinoid Technologies (OCTP), Britvic (BVIC), Ultimovacs (ULTI), DFR Gold (DFR), The Merchants Trust (MRCH), PB Holding (PBH) and Biodexa Pharmaceuticals (BDRX). Please note you should no longer rely on any previous research or estimates for this company. All forecasts should now be considered redundant. Previously published reports can still be accessed via our website.

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Jul 02

Daily Brief Industrials: Keisei Electric Railway Co, Toenec Corp, Spirit Aerosystems Holdings, Inc, Lindbergh SpA and more

By Smartkarma Daily Briefs | Daily Briefs, Industrials

In today’s briefing:

Keisei Electric Investor Activism Update: The Vote Count Could Shake Keisei’s Board
Toenec (1946 JP) Offering – Nearly $50mm on SmallCap Utility Infra Co as Chubu EPCO Sells Down
Boeing/Spirit AeroSystems: All-Stock Deal
Lindbergh (LDB) – Monday, Apr 1, 2024

Keisei Electric Investor Activism Update: The Vote Count Could Shake Keisei’s Board

By Oshadhi Kumarasiri

Palliser’s proposal failed to meet the challenging two-thirds threshold at the AGM. Given the ownership landscape, this outcome was anticipated.
Palliser nearing 50% approval at Keisei’s AGM could signify a triumph, potentially leading to significant pressure on management and a positive shift in share price performance.
Keisei Electric Railway Co (9009 JP)‘s valuation, now attractively low post a 33% drop and with a potential OP guidance hike, presents minimal downside at a 26.0x EV/OP multiple.

Toenec (1946 JP) Offering – Nearly $50mm on SmallCap Utility Infra Co as Chubu EPCO Sells Down

Today, Toenec Corp (1946 JP) – an integrated facilities company 50+% owned by Chubu Electric Power Co (9502 JP) announced Chubu EPCO would sell down 7.7% to go to 43%+.
This is surprising. It suggests there are more selldowns to come. It’s also “big” at 88 days of ADV and about 26% of Max Real World Float (85% retail).
This is an odd sell-down. Chubu EPCO obviously doesn’t want to buy it in. That means overhang for years.

Boeing/Spirit AeroSystems: All-Stock Deal

By Jesus Rodriguez Aguilar

On July 1, Boeing Co (BA US) announced a definitive agreement to acquire Spirit Aerosystems Holdings, Inc (SPR US) in an expected all-share deal valued at c.$4.7 billion, or $37.25/share.
Consideration is calculated using a floating exchange ratio ($37.25 divided by 15-day VWAP) with a collar. 0.20466 using Boeing’s last closing share price, which implies 3.9% dilution for Boeing’s shareholders.
The offer price is 6.4% above consensus price target median ($35), and reasonable, reflecting some control premium. The valuation represents 10.1x EV/2025 EBITDA based on IBES estimates. Long spread.

Lindbergh (LDB) – Monday, Apr 1, 2024

By Value Investors Club

Lindbergh S.p.A. provides specialized logistics services for industrial maintenance & repair operations in Italy and France, with high barriers to entry
Strong unit economics with zero customer and revenue churn most years, over 90% of revenue from recurring contracts
Recent expansion into B2C thermohydraulic MRO services market in Italy, strong competitive advantage and potential for growth

This content is sourced through publicly available sources and has been machine generated. Information displayed is for general informational purposes only. This article was originally published 3 months ago on Value Investors Club.

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Jul 02

Daily Brief TMT/Internet: Shift Up, Hollysys Automation Technologies, SenseTime Group , Tesla , Chenqi Technology Limited, Toyo Corp, SK Hynix, Shanghai Voicecomm Information Technology, Will Semiconductor Shan and more

By Smartkarma Daily Briefs | Daily Briefs, TMT/Internet

In today’s briefing:

Shift Up IPO Book Building Results Analysis
Hollysys (HOLI US): Ascendent Finally Obtains Regulatory Approvals
HSCEI Index Rebalance Preview: Two Changes Likely in September
Shift Up IPO: Details, Bookbuilding & Index Inclusion
Elon Wins $56B Package Re-Vote and Shift to Texas. Now What for Tesla?
Chenqi Technology Pre-IPO – PHIP Updates – Sales Growth Accelerated but Sustainability in Question
Toyo Corporation (8151 JP) – Initiating Coverage
Tech Supply Chain Tracker (02-Jul-2024): India boosts smartphone exports with iPhone manufacturers.
Shanghai Voicecomm IPO Preview: Superior Growth Profile and Collaboration With Baidu on ERNIE Bot
Mainland Connect NORTHBOUND Flows (To 28 June 2024): BIG Consumer Name Selling Again

Shift Up IPO Book Building Results Analysis

By Douglas Kim

Shift Up reported solid IPO book building results. Shift Up’s IPO price has been determined at 60,000 won won, which is at the high end of the IPO price range.
According to Hankyung Business Daily, the demand ratio was 223 to 1. Shift Up will start trading on 11 July.
Our base case valuation of Shift Up is market cap of 5.7 trillion won or target price of 95,510 won (59% higher than the IPO price of 60,000 won).

Hollysys (HOLI US): Ascendent Finally Obtains Regulatory Approvals

By Arun George

Six months after announcing a binding proposal, Ascendent has obtained all the Chinese regulatory approvals for its US$26.50 Hollysys Automation Technologies (HOLI US) offer.
The gross spread was wide due to the information vacuum, which has resulted in various conspiracy theories and rumours circulating.
The two remaining conditions required for close are the maximum dissenting cap (should be waived) and minimum net cash condition (satisfied). At the last close, the gross spread was 22.5%.

HSCEI Index Rebalance Preview: Two Changes Likely in September

SenseTime Group (20 HK) and JD Logistics (2618 HK) are potential deletions while PICC Property & Casualty (2328 HK) and New Oriental Education & Techn (9901 HK) are potential adds.
Estimated one-way turnover at the rebalance is 1.8% resulting in a one-way trade of HK$950m. Official capping will be based off the close of trading on 3 September.
There will be 1-2x ADV to buy on the adds and over 2x ADV to sell in JD Logistics. The impact on SenseTime is lower given the recent surge in volume.

Shift Up IPO: Details, Bookbuilding & Index Inclusion

Shift Up (462870 KS) will raise KRW 435bn (US$315m) in its IPO, valuing the company at KRW 3,482bn (US$2.52bn). Listing is expected later this month.
Competition for the shares has been fierce with institutional investors indicating demand for 226x the number of shares on offer at prices higher than the top end of the range.
Inclusion in the KOSPI 200 looks likely in June 2025, while inclusion in global indices is likely in December. But there could be some passive inflows in September.

Elon Wins $56B Package Re-Vote and Shift to Texas. Now What for Tesla?

By Uttkarsh Kohli

Despite achieving significant milestones, Elon Musk’s $56 billion compensation package was voided in January 2024 due to a flawed approval process, ruled a Delaware judge.
Tesla’s shareholders voted to reinstate Musk’s package in June 2024, but the lawsuit continues, and the contract’s future remains uncertain.
Tesla faces challenges with slow EV sales growth, rising competition, and the need for lower-cost models, which may impact stock performance despite Musk’s ongoing leadership.

Chenqi Technology Pre-IPO – PHIP Updates – Sales Growth Accelerated but Sustainability in Question

By Ethan Aw

Chenqi Technology Limited (CT HK) is looking to raise US$130m in its upcoming Hong Kong IPO, after downsizing from an earlier reported float of US$300m.
Chenqi Technology (Chenqi) is a mobility technology and service company in China, founded by the GAC Group and Tencent.
In our previous note, we talked about the company’s historical performance. In this note, we talk about its PHIP updates.

Toyo Corporation (8151 JP) – Initiating Coverage

By Astris Advisory Japan

Toyo Corporation is a trading company specializing in measurement technologies.
With several initiatives and strong structural demand in the electric vehicles space in particular, we expect the company to achieve higher revenue and profitability.
Higher recurring revenue and proprietary product ratios will support a margin improvement in the future.

Tech Supply Chain Tracker (02-Jul-2024): India boosts smartphone exports with iPhone manufacturers.

By Tech Supply Chain Tracker

Indian smartphone exports boosted by iPhone makers as Xiphera introduces quantum security improvements in crypto solutions
Ola Electric pioneers solid-state batteries for electric vehicles, while SK Hynix invests $75 billion to dominate HBM Market for AI Chips
China nationalizes rare earth resources as airlines struggle with high costs to achieve sustainable fuel goals, Foxconn denies mistreating married women in India

Shanghai Voicecomm IPO Preview: Superior Growth Profile and Collaboration With Baidu on ERNIE Bot

By Andrei Zakharov

Shanghai Voicecomm Information Technology Co., an IT solution provider for enterprise-level users in China, plans to price its IPO by July 10, 2024 and raise ~HK$664M.
CICC is leading the offering in Hong Kong and the IPO is expected to be priced at HK$152.10 per H share, implying a market cap of ~HK$5.4B or ~$690M.
Cornerstone investors have agreed to acquire ~1.8M H shares, representing 41% of the offer shares or ~5% of the total outstanding shares.

Mainland Connect NORTHBOUND Flows (To 28 June 2024): BIG Consumer Name Selling Again

The Quiddity Mainland Connect NORTHBOUND Monitor. Like the A/H Premium Monitor and HK Connect SOUTHBOUND Monitor. Lots of Flows/Position Tables and Charts with which to play.
Last week saw NORTHBOUND net SELL RMB 11.8bn of A-shares. NORTHBOUND bought utilities and raw materials and sold everything else, especially consumer names. Appliances remain on the sell side.
It is notable that net flows as a percentage of value traded are clearly “short gamma”, which is to say, sector underperformers are being sold, not bought.

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Jul 02

Daily Brief Industrials: Keisei Electric Railway Co, Toenec Corp, Spirit Aerosystems Holdings, Inc, Lindbergh SpA and more

By Smartkarma Daily Briefs | Daily Briefs, Industrials

In today’s briefing:

Keisei Electric Investor Activism Update: The Vote Count Could Shake Keisei’s Board
Toenec (1946 JP) Offering – Nearly $50mm on SmallCap Utility Infra Co as Chubu EPCO Sells Down
Boeing/Spirit AeroSystems: All-Stock Deal
Lindbergh (LDB) – Monday, Apr 1, 2024

Keisei Electric Investor Activism Update: The Vote Count Could Shake Keisei’s Board

By Oshadhi Kumarasiri

Palliser’s proposal failed to meet the challenging two-thirds threshold at the AGM. Given the ownership landscape, this outcome was anticipated.
Palliser nearing 50% approval at Keisei’s AGM could signify a triumph, potentially leading to significant pressure on management and a positive shift in share price performance.
Keisei Electric Railway Co (9009 JP)‘s valuation, now attractively low post a 33% drop and with a potential OP guidance hike, presents minimal downside at a 26.0x EV/OP multiple.

Toenec (1946 JP) Offering – Nearly $50mm on SmallCap Utility Infra Co as Chubu EPCO Sells Down