Daily Briefs

Following Exxon Mobil (XOM US)‘s acquisition of Pioneer Natural Resources (PXD), Vistra (VST US) will be added to the S&P 500 INDEX (SPX INDEX) at the close on 7 May.
Marathon Digital Holdings (MARA US) is an add to the S&P SmallCap 600 Index and the stock could move higher till implementation.
Marathon Digital Holdings (MARA US) stock has underperformed its close peers this year and the ratio of Marathon Digital Holdings stock price to Bitcoin (XBTUSD CURNCY) is near the lows.

ZEEKR IPO: Attractive ~$4.8B Midpoint Valuation Offers At Least 30% Upside

By Andrei Zakharov

Geely-Backed ZEEKR set terms for U.S. IPO: EV maker offers 17.5M American depositary shares (ADSs) at the price range of $18-$21, implying a market cap of ~$4.8B at the midpoint.
Geely Auto, Mobileye and CATL have indicated a non-binding interest in subscribing for an aggregate of up to ~$349M worth of the ADSs being offered in this offering.
I have a positive view of ZEEKR IPO as the offering will be priced significantly below last round valuation of ~$13B.

Bristol-Myers Squibb Company: A Deep Dive Into The Progress Of Its Clinical Portfolio! – Major Drivers

It is clear from Bristol-Myers Squibb’s first quarter 2024 earnings that the company has had a strong start to the year, even as it navigates some challenges.
The firm’s performance during this time showcased the strength and potential of its commercial portfolio and the progress it has made in advancing its pipeline.
Key brands such as Eliquis, Opdualag, Reblozyl, Yervoy, and Breyanzi have demonstrated significant strength, contributing to the company’s overall performance.

Caterpillar Inc.: A Deep Dive Into Its Key Areas Of Competitive Advantage & Recent Strategic Investments! – Major Drivers

Caterpillar’s earnings for the first quarter of 2024 highlighted a strong quarter with sales and revenues maintaining levels consistent with the last year, largely meeting the company’s expectations.
A key aspect was the continuation of healthy demand for its products and services across major end markets.
Thanks to its robust balance sheet and free cash flow, the company was able to allocate a remarkable $5.1 billion for share repurchases and dividends during the quarter.

Comcast Corporation: A Story Of Superior Product Innovation & An Improving Market Position! – Major Drivers

Comcast Corporation reported Q1 earnings recently highlighted by a strategic execution where the company maintained dominance in a competitive and evolving market.
The company’s resilient capital allocation strategy and strong balance sheet place it in a favorable position, allowing it to invest aggressively in its six diverse growth businesses- Residential Broadband, Wireless, Business Services, Theme Parks, Studios, and Streaming.
These sectors made up more than 55% of the company’s total revenue in Q1, and this proportion is set to grow.

DexCom Inc.: Why Are We Bullish On This Med-Tech Player Despite The Highly Evident Challenges Ahead? – Major Drivers

Dexcom, Inc., particularly known for its continuous glucose monitoring (CGM) technology, consistently showcased strong performance in the first quarter of 2024 with an organic revenue growth of 25% compared to the first quarter of 2023.
This noteworthy surge is credited to the substantial demand for Dexcom CGM, seen as customers increasingly value its leading product performance and unique user experience.
The shift towards Dexcom’s CGM technology has been significant, especially since the launch of G7 in the U.S., which enabled Dexcom to attract a broad range of new prescribers and improve its impact within primary care, resulting in growing demand from people with diabetes.

Gilead Sciences: Acquisition of CymaBay Therapeutics Enhancing Liver Disease Portfolio & 6 Major Drivers

Gilead Sciences Inc. reported a solid first quarter of 2024.
Total product sales, exclusive of Veklury, rose 6% year-over-year to $6.1 billion.
Growth was driven primarily by demand across its HIV, oncology, and liver disease verticals.

Edwards Lifesciences Corporation: Increased Investment in Field Resources and Patient Access Initiatives! – Major Drivers

Edwards Lifesciences Corporation recorded robust first quarter 2024 results, demonstrating growth on numerous fronts.
The company’s total sales rose by 10% to $1.6 billion against the same period last year, leading Edwards to raise its 2024 sales guidance to the high end of 8% to 10%.
This highlights the company’s successful strategic direction, underscored by its substantial investments across transcatheter platforms which are addressing patient needs associated with aortic, mitral, and tricuspid diseases.

Honeywell International: Will Their Improved Performance In Energy and Sustainability Solutions (ESS) Expected To Propel Their Growth? – Major Drivers

Honeywell International Inc.’s first-quarter 2024 earnings reveals consistent growth in the company, exceeding its adjusted earning per share guidance and organic sales targets.
Despite the dynamic macroeconomic environment, the robust execution of Honeywell’s Accelerator operating system and the company’s diversified technology portfolio has led to significant performance gains.
With recovery in key areas of Honeywell’s short-cycle portfolio and sustained growth in its long-cycle Aerospace and energy businesses, the company demonstrates a positive momentum in its financial results.

Carrier Global Corporation: Can It Increase Its Productivity & Show Resilience Against Rising Material Costs? – Major Drivers

Carrier Global Corporation’s Q1 2024 results showed a robust start to the year with adjusted EPS growth of 19% on low-single-digit organic sales growth and 280 basis points of adjusted margin expansion.
With the addition of 12,000 new members from Viessmann Climate Solutions, the company is poised for another year of significant margin expansion and solid growth.
Its lean journey and sustained productivity have contributed greatly to these results.

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May 05

Daily Brief Japan: West Japan Railway Co and more

By Smartkarma Daily Briefs | Daily Briefs, Japan

In today’s briefing:

Last Week in Event SPACE: Aussie Tax-Loss Selling, Austal, West Japan Railway, PICC/PICC P&C

Last Week in Event SPACE: Aussie Tax-Loss Selling, Austal, West Japan Railway, PICC/PICC P&C

Tax-Loss Selling‘s a subject of interest in Australia. Retail investors will take gains on stocks which run up in price, or get taken over, then look for losses to offset.
Investors are caught out as the Aussie government “approves” Hanwha Ocean (042660 KS) buyng Austal Ltd (ASB AU). There is evidently a lot more going on in the background.
West Japan Railway Co (9021 JP) announces a biggish buyback. One could buy dips, but one should probably not chase. For that, suggest this acts as a range trade.

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May 05

Daily Brief China: L’Occitane, Shanghai Rural Commercial Bank and more

By Smartkarma Daily Briefs | China, Daily Briefs

In today’s briefing:

Weekly Deals Digest (05 May) – L’Occitane, C&F Logistics, KFC Japan, Austal, Hyundai Marine, ZEEKR
(Mostly) Asia-Pac M&A: L’Occitane, KFC Holdings Japan, CSR, Azure Minerals, CIMC, Chilled & Frozen
Quiddity Leaderboard CSI 300/500 Jun 24: Final Expectations; US$3.4bn One-Way; New Trade Idea

Weekly Deals Digest (05 May) – L’Occitane, C&F Logistics, KFC Japan, Austal, Hyundai Marine, ZEEKR

By Arun George

A weekly summary of key developments across ECM and Event-Driven names tracked by us across Hong Kong, Australia, New Zealand, Singapore, Japan, Indonesia, Malaysia, Thailand, Korea, India and Chinese ADRs.
ECM developments: HD Hyundai Marine Solution (443060 KS) and ZEEKR (ZK US) IPOs.
Event-Driven developments: L’Occitane (973 HK), Chilled & Frozen Logistics Holdings (9099 JP), Kfc Holdings Japan (9873 JP), Mimasu Semiconductor Industry (8155 JP), Austal Ltd (ASB AU).

(Mostly) Asia-Pac M&A: L’Occitane, KFC Holdings Japan, CSR, Azure Minerals, CIMC, Chilled & Frozen

Tally 47 – mostly firm, mostly Asia-Pac – transactions currently being discussed and analysed on Smartkarma. Inside is a timetable of upcoming key events for each deal.
One new deals was discussed on Smartkarma this week: L’Occitane (973 HK)‘s VGO from major shareholder, Reinold Geiger. A deal for KFC Holdings Japan (9873 JP) is apparently imminent.
Key updates took place on: CSR Ltd (CSR AU), Azure Minerals (AZS AU), CIMC Vehicle Group Co Ltd (1839 HK), and Chilled & Frozen Logistics Holdings (9099 JP).

Quiddity Leaderboard CSI 300/500 Jun 24: Final Expectations; US$3.4bn One-Way; New Trade Idea

By Janaghan Jeyakumar, CFA

CSI 300 represents the 300 largest stocks by market cap and liquidity from the Shanghai and Shenzhen Exchanges. CSI 500 is the next 500.
The reference period for the June 2024 review is now complete. There are some changes to the expected ADDs/DELs list since I published my last insight (link) ~3 weeks ago.
In this insight, we take a look at our final expectations for index changes in June 2024.

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May 05

Most Read: Amman Mineral Internasional, Shenyang Xingqi Pharmaceutical, Robosense Technology, Deep Yellow Ltd, Berli Jucker, Jeju Semiconductor, Korea Stock Exchange Kospi Index, L’Occitane, Marathon Digital Holdings and more

By Smartkarma Daily Briefs | Daily Briefs, Most Read

In today’s briefing:

IDX30/LQ45/IDX80 Index Rebalance: BIG Flows for Some Stocks
ChiNext/ChiNext50 Index Rebalance Preview: Plenty of Overlap Between the Indices
HSCI Index Rebalance Preview: Robosense (2498 HK) Could Be Added in June
ASX200 Index Rebalance Preview: Potential Changes Prior to the June Rebalance
SET50 Index Rebalance Preview: Market Consultation & More Changes in June
KOSDAQ150 Index Rebalance Preview: 15 Changes Possible as Review Period Ends
Local Institutions’ Value-Up Momentum Moves: Watch the July Tax Reform Bill
Weekly Deals Digest (05 May) – L’Occitane, C&F Logistics, KFC Japan, Austal, Hyundai Marine, ZEEKR
(Mostly) Asia-Pac M&A: L’Occitane, KFC Holdings Japan, CSR, Azure Minerals, CIMC, Chilled & Frozen
S&P500 Index Rebalance: Bitcoin Miner Is a SPCY Add

IDX30/LQ45/IDX80 Index Rebalance: BIG Flows for Some Stocks

There are 2 constituent changes for the LQ45 Index and 6 constituent changes for the IDX80 Index at the rebalance to be implemented at the close on 30 April.
The largest passive inflows are expected in Amman Mineral Internasional (AMMN IJ), Indosat Tbk PT (ISAT IJ), Bank Rakyat Indonesia (BBRI IJ) and Merdeka Copper Gold Tbk PT (MDKA IJ).
With only 4 days to implementation, there could be relatively big moves on stocks that have large flow/impact from passive fund trading.

ChiNext/ChiNext50 Index Rebalance Preview: Plenty of Overlap Between the Indices

Nearing the end of the review period, we forecast 8 changes for the ChiNext Index (SZ399006 INDEX) and 5 changes for the ChiNext 50 Index in June.
There are overlapping names for the two indices and some of the stocks will also have flows from the CSI Smallcap 500 Index – Shang (SH000905 INDEX) trackers.
The potential adds have outperformed the potential deletes between 9-10% for both indices over the last month with the deletes dropping a lot more than the adds.

HSCI Index Rebalance Preview: Robosense (2498 HK) Could Be Added in June

There were only 12 new listings on the Main Board of the HKEX (388 HK) in the first quarter of the year. More than half the listings were in March.
Of those stocks, we only see Robosense Technology (2498 HK) having a chance of being added to the HSCI in June and then into Southbound Stock Connect.
There is a big lock-up expiry for Robosense Technology (2498 HK) in July and that should keep the stock under pressure.

ASX200 Index Rebalance Preview: Potential Changes Prior to the June Rebalance

Seven Group Holdings (SVW AU)‘s holding in Boral Ltd (BLD AU) continues to increase and that could lead to an index change at the June rebalance, if not earlier.
The Silver Lake Resources (SLR AU)/ Red 5 Ltd (RED AU) merger could lead to an index change early June.
Cie De Saint-Gobain (SGO FP)‘s acquisition of CSR Ltd (CSR AU) could lead to another index change just ahead of the regular June rebalance.

SET50 Index Rebalance Preview: Market Consultation & More Changes in June

The SET has run a market consultation on relaxing liquidity thresholds for inclusion of stocks in the Stock Exchange of Thailand SET 50 Index (SET50 INDEX) universe.
The consultation is the result of an increase in Average Daily Trading Values and lower turnover ratios, especially for large cap stocks.
Berli Jucker (BJC TB) is now a potential index inclusion in June and that could result in four constituent changes at the next rebalance.

KOSDAQ150 Index Rebalance Preview: 15 Changes Possible as Review Period Ends

With the review period complete, there could be up to 15 changes for the KOSDAQ 150 Index (KOSDQ150 INDEX) at the June rebalance.
Even with 15 changes, there is some sector balance among the potential adds and deletes with big churn in the Information Technology sector.
The potential adds have outperformed the potential deletes and the KOSDAQ 150 Index (KOSDQ150 INDEX) since the start of the review period but performance has flattened over the last month.

Local Institutions’ Value-Up Momentum Moves: Watch the July Tax Reform Bill

By Sanghyun Park

MMAS prioritizes dividends over low-PBR, key to government’s Value-up momentum. Despite initial market disappointment, dividend stocks rebounded, underscoring continued investor interest.
Government officials are collecting historic dividend data to simulate separate taxation impact of dividend income, likely to be included in July’s tax reform bill for National Assembly approval.
Local institutions focus on dividend-centric Value-up trading, targeting stocks with high cash reserves and dividends. Strategy needed to manage market impact pre-tax reform bill in July.

Weekly Deals Digest (05 May) – L’Occitane, C&F Logistics, KFC Japan, Austal, Hyundai Marine, ZEEKR

By Arun George

A weekly summary of key developments across ECM and Event-Driven names tracked by us across Hong Kong, Australia, New Zealand, Singapore, Japan, Indonesia, Malaysia, Thailand, Korea, India and Chinese ADRs.
ECM developments: HD Hyundai Marine Solution (443060 KS) and ZEEKR (ZK US) IPOs.
Event-Driven developments: L’Occitane (973 HK), Chilled & Frozen Logistics Holdings (9099 JP), Kfc Holdings Japan (9873 JP), Mimasu Semiconductor Industry (8155 JP), Austal Ltd (ASB AU).

(Mostly) Asia-Pac M&A: L’Occitane, KFC Holdings Japan, CSR, Azure Minerals, CIMC, Chilled & Frozen

Tally 47 – mostly firm, mostly Asia-Pac – transactions currently being discussed and analysed on Smartkarma. Inside is a timetable of upcoming key events for each deal.
One new deals was discussed on Smartkarma this week: L’Occitane (973 HK)‘s VGO from major shareholder, Reinold Geiger. A deal for KFC Holdings Japan (9873 JP) is apparently imminent.
Key updates took place on: CSR Ltd (CSR AU), Azure Minerals (AZS AU), CIMC Vehicle Group Co Ltd (1839 HK), and Chilled & Frozen Logistics Holdings (9099 JP).

S&P500 Index Rebalance: Bitcoin Miner Is a SPCY Add

Following Exxon Mobil (XOM US)‘s acquisition of Pioneer Natural Resources (PXD), Vistra (VST US) will be added to the S&P 500 INDEX (SPX INDEX) at the close on 7 May.
Marathon Digital Holdings (MARA US) is an add to the S&P SmallCap 600 Index and the stock could move higher till implementation.
Marathon Digital Holdings (MARA US) stock has underperformed its close peers this year and the ratio of Marathon Digital Holdings stock price to Bitcoin (XBTUSD CURNCY) is near the lows.

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May 05

Daily Brief ECM: ZEEKR IPO: Attractive ~$4.8B Midpoint Valuation Offers At Least 30% Upside and more

By Smartkarma Daily Briefs | Daily Briefs, ECM

In today’s briefing:

ZEEKR IPO: Attractive ~$4.8B Midpoint Valuation Offers At Least 30% Upside

ZEEKR IPO: Attractive ~$4.8B Midpoint Valuation Offers At Least 30% Upside

By Andrei Zakharov

Geely-Backed ZEEKR set terms for U.S. IPO: EV maker offers 17.5M American depositary shares (ADSs) at the price range of $18-$21, implying a market cap of ~$4.8B at the midpoint.
Geely Auto, Mobileye and CATL have indicated a non-binding interest in subscribing for an aggregate of up to ~$349M worth of the ADSs being offered in this offering.
I have a positive view of ZEEKR IPO as the offering will be priced significantly below last round valuation of ~$13B.

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May 05

Daily Brief Thematic (Sector/Industry): Japan Weekly | Golden Week; Fujitsu General and more

By Smartkarma Daily Briefs | Daily Briefs, Thematic (Sector/Industry)

In today’s briefing:

Japan Weekly | Golden Week; Fujitsu General, Daiichi Sankyo, M3
China Property Developers In Distress – Weekly News & Announcements Tracker | Apr 26-May 3, 2024
GEMWeekly (3 May 2024): China, South Korea Macro; Baidu, Tencent, SK Hynix

Japan Weekly | Golden Week; Fujitsu General, Daiichi Sankyo, M3

By Mark Chadwick

Last week saw a positive trend in the Nikkei average despite a shorter trading week.
Next week’s outlook remains solid with Japan expecting a wave of earnings announcements from major companies.
Winners in the market included PeptiDream, Misumi, Fujitsu General, and Daiichi Sankyo, while M3, JTECK, Nihon M&A Center, and Ibiden faced declines

China Property Developers In Distress – Weekly News & Announcements Tracker | Apr 26-May 3, 2024

By Robert Ciemniak

This note is a weekly curated selection of Chinese news articles and company announcements focused on developers in distress
We look for their deals, updates, specific project progress news (‘local signals’), as well as relevant local research commentaries about the market
We do not verify the underlying data or provide any opinion, we only select and summarize the information; See direct links to sources

GEMWeekly (3 May 2024): China, South Korea Macro; Baidu, Tencent, SK Hynix

By Wium Malan, CFA

The Global Emerging Markets Weekly summarizes the key news and related developments impacting the largest countries and constituents of the Global Emerging Markets equity indices.
Macro data points: China PMI data, South Korean exports, and consumer inflation.
Companies mentioned:Baidu (9888 HK), Tencent (700 HK), SK Hynix (000660 KS)

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May 05

Daily Brief Equity Bottom-Up: A Closer Look at Gravita India’s Qualified Audit Opinion and more

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

In today’s briefing:

A Closer Look at Gravita India’s Qualified Audit Opinion
Altria Group: Can Its Oral Tobacco Category and Smoke-Free Products Reshape The Future? – Major Drivers
Comcast Corporation: A Story Of Superior Product Innovation & An Improving Market Position! – Major Drivers
Bristol-Myers Squibb Company: A Deep Dive Into The Progress Of Its Clinical Portfolio! – Major Drivers
Carrier Global Corporation: Can It Increase Its Productivity & Show Resilience Against Rising Material Costs? – Major Drivers
Caterpillar Inc.: A Deep Dive Into Its Key Areas Of Competitive Advantage & Recent Strategic Investments! – Major Drivers
AstraZeneca PLC: How Will Its Expansion In Vaccines & Cell Therapy Play Out? – Major Drivers
DexCom Inc.: Why Are We Bullish On This Med-Tech Player Despite The Highly Evident Challenges Ahead? – Major Drivers
Edwards Lifesciences Corporation: Increased Investment in Field Resources and Patient Access Initiatives! – Major Drivers
Alphabet Inc.: Are Its AI-Powered Business Strategies Just Not Good Enough? – Major Drivers

A Closer Look at Gravita India’s Qualified Audit Opinion

By Nimish Maheshwari

Gravita India (GRAV IN) faced a Qualified Audit Opinion over share sale proceeds’ reporting by its Employee Welfare Trust.
The dispute centers on whether to record these proceeds in the P&L or Balance Sheet, impacting transparency and financial metrics.
This dispute reduced the PBT by 7.54% and EPS by 8.66% decrease in Q4 FY24.

Altria Group: Can Its Oral Tobacco Category and Smoke-Free Products Reshape The Future? – Major Drivers

Altria Group recent 2024 first quarter earnings highlighted numerous key insights into the company’s performance and future prospects.
Altria’s CEO, Billy Gifford, highlighted that the company made significant progress despite the challenging business environment.
The company is also committed to investment returns, as demonstrated by its sale of a portion of its investment in ABI and the subsequent expansion of its share repurchase program.

Comcast Corporation: A Story Of Superior Product Innovation & An Improving Market Position! – Major Drivers

Comcast Corporation reported Q1 earnings recently highlighted by a strategic execution where the company maintained dominance in a competitive and evolving market.
The company’s resilient capital allocation strategy and strong balance sheet place it in a favorable position, allowing it to invest aggressively in its six diverse growth businesses- Residential Broadband, Wireless, Business Services, Theme Parks, Studios, and Streaming.
These sectors made up more than 55% of the company’s total revenue in Q1, and this proportion is set to grow.

Bristol-Myers Squibb Company: A Deep Dive Into The Progress Of Its Clinical Portfolio! – Major Drivers

It is clear from Bristol-Myers Squibb’s first quarter 2024 earnings that the company has had a strong start to the year, even as it navigates some challenges.
The firm’s performance during this time showcased the strength and potential of its commercial portfolio and the progress it has made in advancing its pipeline.
Key brands such as Eliquis, Opdualag, Reblozyl, Yervoy, and Breyanzi have demonstrated significant strength, contributing to the company’s overall performance.

Carrier Global Corporation: Can It Increase Its Productivity & Show Resilience Against Rising Material Costs? – Major Drivers

Carrier Global Corporation’s Q1 2024 results showed a robust start to the year with adjusted EPS growth of 19% on low-single-digit organic sales growth and 280 basis points of adjusted margin expansion.
With the addition of 12,000 new members from Viessmann Climate Solutions, the company is poised for another year of significant margin expansion and solid growth.
Its lean journey and sustained productivity have contributed greatly to these results.

Caterpillar Inc.: A Deep Dive Into Its Key Areas Of Competitive Advantage & Recent Strategic Investments! – Major Drivers

Caterpillar’s earnings for the first quarter of 2024 highlighted a strong quarter with sales and revenues maintaining levels consistent with the last year, largely meeting the company’s expectations.
A key aspect was the continuation of healthy demand for its products and services across major end markets.
Thanks to its robust balance sheet and free cash flow, the company was able to allocate a remarkable $5.1 billion for share repurchases and dividends during the quarter.

AstraZeneca PLC: How Will Its Expansion In Vaccines & Cell Therapy Play Out? – Major Drivers

Based on the Q1 2024 results earnings call for AstraZeneca, the British multinational pharmaceutical and biopharmaceutical company seems to be on a steady growth trajectory, but like all corporations, it’s not without its risks.
In terms of its achievements, AstraZeneca reported its first quarter of 2024 with a 19% growth in total revenue, reflecting high demand for its products.
Core earnings per share rose by 13%.

DexCom Inc.: Why Are We Bullish On This Med-Tech Player Despite The Highly Evident Challenges Ahead? – Major Drivers

Dexcom, Inc., particularly known for its continuous glucose monitoring (CGM) technology, consistently showcased strong performance in the first quarter of 2024 with an organic revenue growth of 25% compared to the first quarter of 2023.
This noteworthy surge is credited to the substantial demand for Dexcom CGM, seen as customers increasingly value its leading product performance and unique user experience.
The shift towards Dexcom’s CGM technology has been significant, especially since the launch of G7 in the U.S., which enabled Dexcom to attract a broad range of new prescribers and improve its impact within primary care, resulting in growing demand from people with diabetes.

Edwards Lifesciences Corporation: Increased Investment in Field Resources and Patient Access Initiatives! – Major Drivers

Edwards Lifesciences Corporation recorded robust first quarter 2024 results, demonstrating growth on numerous fronts.
The company’s total sales rose by 10% to $1.6 billion against the same period last year, leading Edwards to raise its 2024 sales guidance to the high end of 8% to 10%.
This highlights the company’s successful strategic direction, underscored by its substantial investments across transcatheter platforms which are addressing patient needs associated with aortic, mitral, and tricuspid diseases.

Alphabet Inc.: Are Its AI-Powered Business Strategies Just Not Good Enough? – Major Drivers

Alphabet Inc. reported a strong first quarter in 2024, fueled by robust performance from its search engine, YouTube, and cloud businesses.
The company’s annual revenue grew from $100 billion to over $300 billion in six years.
It predicts that YouTube and Cloud will reach a combined annual run rate of more than $100 billion by the end of 2024.

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May 05

Daily Brief Event-Driven: Weekly Deals Digest (05 May) – L’Occitane and more

By Smartkarma Daily Briefs | Daily Briefs, Event-Driven

In today’s briefing:

Weekly Deals Digest (05 May) – L’Occitane, C&F Logistics, KFC Japan, Austal, Hyundai Marine, ZEEKR
(Mostly) Asia-Pac M&A: L’Occitane, KFC Holdings Japan, CSR, Azure Minerals, CIMC, Chilled & Frozen
Quiddity Leaderboard CSI 300/500 Jun 24: Final Expectations; US$3.4bn One-Way; New Trade Idea
S&P500 Index Rebalance: Bitcoin Miner Is a SPCY Add
Adbri (ABC AU): 12th June Shareholder Vote
Last Week in Event SPACE: Aussie Tax-Loss Selling, Austal, West Japan Railway, PICC/PICC P&C

Weekly Deals Digest (05 May) – L’Occitane, C&F Logistics, KFC Japan, Austal, Hyundai Marine, ZEEKR

By Arun George

A weekly summary of key developments across ECM and Event-Driven names tracked by us across Hong Kong, Australia, New Zealand, Singapore, Japan, Indonesia, Malaysia, Thailand, Korea, India and Chinese ADRs.
ECM developments: HD Hyundai Marine Solution (443060 KS) and ZEEKR (ZK US) IPOs.
Event-Driven developments: L’Occitane (973 HK), Chilled & Frozen Logistics Holdings (9099 JP), Kfc Holdings Japan (9873 JP), Mimasu Semiconductor Industry (8155 JP), Austal Ltd (ASB AU).

(Mostly) Asia-Pac M&A: L’Occitane, KFC Holdings Japan, CSR, Azure Minerals, CIMC, Chilled & Frozen

Tally 47 – mostly firm, mostly Asia-Pac – transactions currently being discussed and analysed on Smartkarma. Inside is a timetable of upcoming key events for each deal.
One new deals was discussed on Smartkarma this week: L’Occitane (973 HK)‘s VGO from major shareholder, Reinold Geiger. A deal for KFC Holdings Japan (9873 JP) is apparently imminent.
Key updates took place on: CSR Ltd (CSR AU), Azure Minerals (AZS AU), CIMC Vehicle Group Co Ltd (1839 HK), and Chilled & Frozen Logistics Holdings (9099 JP).

Quiddity Leaderboard CSI 300/500 Jun 24: Final Expectations; US$3.4bn One-Way; New Trade Idea

By Janaghan Jeyakumar, CFA

CSI 300 represents the 300 largest stocks by market cap and liquidity from the Shanghai and Shenzhen Exchanges. CSI 500 is the next 500.
The reference period for the June 2024 review is now complete. There are some changes to the expected ADDs/DELs list since I published my last insight (link) ~3 weeks ago.
In this insight, we take a look at our final expectations for index changes in June 2024.

S&P500 Index Rebalance: Bitcoin Miner Is a SPCY Add

Following Exxon Mobil (XOM US)‘s acquisition of Pioneer Natural Resources (PXD), Vistra (VST US) will be added to the S&P 500 INDEX (SPX INDEX) at the close on 7 May.
Marathon Digital Holdings (MARA US) is an add to the S&P SmallCap 600 Index and the stock could move higher till implementation.
Marathon Digital Holdings (MARA US) stock has underperformed its close peers this year and the ratio of Marathon Digital Holdings stock price to Bitcoin (XBTUSD CURNCY) is near the lows.

Adbri (ABC AU): 12th June Shareholder Vote

On the 27 Feb 2024, construction play Adbri (ABC AU) entered into a Scheme Implementation Deed with CRH (CRH US) and 42.7%-shareholder Raymond Barro (Chairman) at $5.20/share.
Conditions include Adbri’s shareholder approval and FIRB signing off. Optically, it doesn’t appear to be a knockout price. However, Adbri’s share price has laboured since the onset of Covid.
The Scheme Booklet is now out, with a Scheme Meeting to be held on the 12th June. Expected implementation on the 1 July. IE says fair & reasonable.

Last Week in Event SPACE: Aussie Tax-Loss Selling, Austal, West Japan Railway, PICC/PICC P&C

Tax-Loss Selling‘s a subject of interest in Australia. Retail investors will take gains on stocks which run up in price, or get taken over, then look for losses to offset.
Investors are caught out as the Aussie government “approves” Hanwha Ocean (042660 KS) buyng Austal Ltd (ASB AU). There is evidently a lot more going on in the background.
West Japan Railway Co (9021 JP) announces a biggish buyback. One could buy dips, but one should probably not chase. For that, suggest this acts as a range trade.

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May 05

Daily Brief Industrials: West Japan Railway Co, Carrier Global , Caterpillar Inc, Honeywell International, Northrop Grumman, Union Pacific and more

By Smartkarma Daily Briefs | Daily Briefs, Industrials

In today’s briefing:

Last Week in Event SPACE: Aussie Tax-Loss Selling, Austal, West Japan Railway, PICC/PICC P&C
Carrier Global Corporation: Can It Increase Its Productivity & Show Resilience Against Rising Material Costs? – Major Drivers
Caterpillar Inc.: A Deep Dive Into Its Key Areas Of Competitive Advantage & Recent Strategic Investments! – Major Drivers
Honeywell International: Will Their Improved Performance In Energy and Sustainability Solutions (ESS) Expected To Propel Their Growth? – Major Drivers
Northrop Grumman Corporation: Are Autonomous Aircrafts Expected To Be A Major Growth Catalyst In The Future? – Major Drivers
Union Pacific Corporation: Will Its Improving Network Capability & Infrastructure Investment Pay Off? – Major Drivers

Last Week in Event SPACE: Aussie Tax-Loss Selling, Austal, West Japan Railway, PICC/PICC P&C

Tax-Loss Selling‘s a subject of interest in Australia. Retail investors will take gains on stocks which run up in price, or get taken over, then look for losses to offset.
Investors are caught out as the Aussie government “approves” Hanwha Ocean (042660 KS) buyng Austal Ltd (ASB AU). There is evidently a lot more going on in the background.
West Japan Railway Co (9021 JP) announces a biggish buyback. One could buy dips, but one should probably not chase. For that, suggest this acts as a range trade.

Carrier Global Corporation: Can It Increase Its Productivity & Show Resilience Against Rising Material Costs? – Major Drivers

Carrier Global Corporation’s Q1 2024 results showed a robust start to the year with adjusted EPS growth of 19% on low-single-digit organic sales growth and 280 basis points of adjusted margin expansion.
With the addition of 12,000 new members from Viessmann Climate Solutions, the company is poised for another year of significant margin expansion and solid growth.
Its lean journey and sustained productivity have contributed greatly to these results.

Caterpillar Inc.: A Deep Dive Into Its Key Areas Of Competitive Advantage & Recent Strategic Investments! – Major Drivers

Caterpillar’s earnings for the first quarter of 2024 highlighted a strong quarter with sales and revenues maintaining levels consistent with the last year, largely meeting the company’s expectations.
A key aspect was the continuation of healthy demand for its products and services across major end markets.
Thanks to its robust balance sheet and free cash flow, the company was able to allocate a remarkable $5.1 billion for share repurchases and dividends during the quarter.

Honeywell International: Will Their Improved Performance In Energy and Sustainability Solutions (ESS) Expected To Propel Their Growth? – Major Drivers

Honeywell International Inc.’s first-quarter 2024 earnings reveals consistent growth in the company, exceeding its adjusted earning per share guidance and organic sales targets.
Despite the dynamic macroeconomic environment, the robust execution of Honeywell’s Accelerator operating system and the company’s diversified technology portfolio has led to significant performance gains.
With recovery in key areas of Honeywell’s short-cycle portfolio and sustained growth in its long-cycle Aerospace and energy businesses, the company demonstrates a positive momentum in its financial results.

Northrop Grumman Corporation: Are Autonomous Aircrafts Expected To Be A Major Growth Catalyst In The Future? – Major Drivers

Northrop Grumman, a global aerospace and defense technology company, has reported a strong start for the financial quarter, with revenues increasing 9% year-over-year due to growth in all four of its sectors.
The firm had implemented productivity and cost efficiency measures, which has led to its segment operating margin dollars increasing by 10%.
These efforts have also resulted in 15% EPS growth.

Union Pacific Corporation: Will Its Improving Network Capability & Infrastructure Investment Pay Off? – Major Drivers