Daily Briefs

By VRS (Valuation & Research Specialists)

Tietto Minerals Ltd (TIE AU) has disclosed a revised conditional proposal from Zhaojin Mining Industry H (1818 HK) at A$0.68 per share, a 17.2% premium to the previous offer of A$0.58.
The offer is conditional on a 50.1% minimum acceptance condition (which can be waived). The offer is declared best and final.
Despite the bump, the offer is below the IE’s valuation range of A$0.79 to A$0.93 per share. The IE’s valuation range would be around 25% higher at current gold prices.

EDG: 2024 Exploration Plans; Work Commencing in May

By Atrium Research

EDG announced its 2024 exploration program at the Reliance Gold Project.
Plans include up to 10,000m of diamond drilling, Geochemical sampling, and geotechnical, structural, mineralogical and metallurgical studies, as well as other initiatives.
Work is expected to commence in early May, well ahead of Golden Triangle peers.

Tethys Oil AB (SSE: TETY): Increasing further the size of the prize

By Auctus Advisors

• The South Lahan area on Block 58 is estimated to hold 55-523 mmbl prospective resources (P90-P10 case) with a mean case of 251.8 mmbbl prospective resources across six prospects in the Ara Carbonate.
• Combined with the previously disclosed prospective resources of the Fahd area in the north-eastern part of Block 58, Tethys Oil’s unrisked recoverable prospective resources on the block are estimated to be 435.9 mmbbl (Pmean).
• The geological chance of success ranges from 6% to 11% for the six new prospects.

Valeura Energy (TSX: VLE): Three exploration wells deliver three discoveries

By Auctus Advisors

The Nong Yao-13 exploration well in the new Nong Yao D area that was targeting multiple zones has encountered >30 feet of new oil play across several new shallow intervals which have not been produced elsewhere on the concession.
These reservoirs are believed to be recurring across the Nong Yao D area.
The drilling result confirms that oil has successfully migrated into this area of the block (a factor that was seen to be a risk in the Nong Yao D area) and open the opportunity for further appraisal and exploration drilling in the vicinity to derisk sufficient volumes to justify a future development.

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Apr 16

Daily Brief Industrials: J&T Global Express , Comer Industries SpA, Norcros PLC, Emerson Electric Co, Controladora Vuela Cia-Adr, Lassila & Tikanoja Oyj, Lsi Industries and more

By Smartkarma Daily Briefs | Daily Briefs, Industrials

In today’s briefing:

J&T Global Express Q124 Operating Stats: One Step Forward for Disclosure, & One Step Back
Comer Industries : Unveiling a Hidden Champion with a Sustainable 12% Free Cashflow Yield
NORCROS PLC: Equity Research Flash Note
Emerson Electric Co (EMR) – Monday, Jan 15, 2024
Controladora Vuela Compania (VLRS) – Saturday, Jan 13, 2024
Lassila &Amp; Tikanoja (LAT1V) – Sunday, Jan 14, 2024
Lsi Industries Inc (LYTS) – Sunday, Jan 14, 2024

J&T Global Express Q124 Operating Stats: One Step Forward for Disclosure, & One Step Back

By Daniel Hellberg

On April 9, J&T disclosed operating stats from Q124 — a positive surprise
We welcome the disclosure, but J&T should also explain X-border’s demise
We believe J&T’s China operation remains far less profitable than its peers’

Comer Industries : Unveiling a Hidden Champion with a Sustainable 12% Free Cashflow Yield

By Contrarian Cashflows

Comer Industries, an Italian family-owned company, specializes in producing mission-critical components for agricultural and construction vehicles.
Operating under an asset-light assembler business model in an industry marked by consolidation and significant barriers to entry, Comer Industries has consistently delivered impressive returns on capital, boasting a ROCE exceeding 20% for the past three years.
Despite its strong performance, the company’s shares trade at a normalized 12.4% free cash flow yield and a 7.2 EV/EBIT, considerably lower than industry peers.

NORCROS PLC: Equity Research Flash Note

Norcros plc is a United Kingdom-based supplier of bathroom and kitchen products.
The principal activities of the Company and its subsidiaries are the design, manufacture, and distribution of a range of bathroom and kitchen products, mainly in the United Kingdom and South Africa.
In the United Kingdom, it offers a range of bathroom and kitchen products for domestic and commercial applications.

Emerson Electric Co (EMR) – Monday, Jan 15, 2024

Emerson has undergone significant portfolio transformations, reducing from five business lines to two by 2021
Incoming CEO Lal Karsanbhai announced strategic actions including selling InSinkErator and a majority stake in Climate Tech, while acquiring stakes in AspenTech and National Instruments
These moves aimed to further position Emerson as a provider of commercial refrigeration systems, consumer controls, software for process industries, and digital test equipment.

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.

Controladora Vuela Compania (VLRS) – Saturday, Jan 13, 2024

VLRS is Mexico’s largest ultra-low-cost carrier with Indigo Partners as a key shareholder, benefiting from favorable negotiated aircraft pricing with Airbus
Despite a decline in stock price, the company’s business model and profit profile remain unchanged
VLRS has faced temporary challenges but is positioned to benefit from a more rational airline market in Mexico following the demise of Interjet

Lassila &Amp; Tikanoja (LAT1V) – Sunday, Jan 14, 2024

L&T has expanded its focus to waste and environmental services, as well as facility services
Despite temporary issues and lack of guidance, L&T remains competitively positioned in the local market
The company plans to sell its low-margin Facility Services businesses, which could drive value realization and make it an attractive investment opportunity with potential for buyout interest.

Lsi Industries Inc (LYTS) – Sunday, Jan 14, 2024

LSI Industries, Inc. (LYTS) provides corporate visual image solutions in various markets through its Lighting and Graphic segments
The company focuses on maintaining a strong balance sheet and generating sustainable free cash flow to drive up share price
Management’s dedication to shareholder value makes LSI Industries an attractive investment opportunity with a double-digit FCF yield

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Apr 16

Daily Brief Financials: Bitcoin, CapitaLand Ascendas REIT, Findi, JPY and more

By Smartkarma Daily Briefs | Daily Briefs, Financials

In today’s briefing:

Crypto Crisp: Hong Kong Rhymes With Bitcoin and Ethereum ETFs
S-REIT Pair Trade Idea: Long CLAR SP and SHORT Keppel REIT on Industry Fundamentals
Findi Limited (FND) – Sunday, Jan 14, 2024
Comment on Exchange Rate USD/JPY – March 29, 2024

Crypto Crisp: Hong Kong Rhymes With Bitcoin and Ethereum ETFs

By Mads Eberhardt

The weekend did not go as expected.
The attack on Israel by Iran, which occurred overnight between Saturday and Sunday, had a noticeable impact on the crypto market.
This led to Bitcoin and Ethereum dropping by 8% and 12% respectively by Sunday.

S-REIT Pair Trade Idea: Long CLAR SP and SHORT Keppel REIT on Industry Fundamentals

By Jacob Cheng

We look at Asia, and see where there are interesting trade idea. While HK/CH see investors’ capitulation, there are some interesting ideas in Singapore
We focus on real estate and look at S-REITs, which just wrap up their 4Q 23 results. We see divergence in terms of industry fundamentals
Within S-REITs, we like industrial and retail given stronger industry fundamentals and stable asset valuation

Findi Limited (FND) – Sunday, Jan 14, 2024

By VRS (Valuation & Research Specialists)

Findi is an illiquid Australian microcap company that controls TSI India, one of the largest owners and operators of ATMs in India
TSI India has shown signs of improvement and is expected to perform well in the future
Findi plans to list its operating business in India on the Indian stock market and issued convertible bonds in preparation for its IPO at a valuation of A$190.6 million

Comment on Exchange Rate USD/JPY – March 29, 2024

During the period under consideration, i.e. February 28 th , 2024 to March 29th, 2024, the USD/JPY pair fluctuated between 146 and 152 Yen per 1 Dollar.
The MA-10 line at the beginning of the period considered was moving above the MA-20 line. From March 7 th until March 22 nd , the MA-10 line trend changed and was moving below the MA-20.
By the end of the examined period, the MA-10 line ended up above the MA-20 line.

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Apr 16

Daily Brief Consumer: Sichuan Baicha Baidao Industrial, Nongfu Spring , TSE Tokyo Price Index TOPIX, Vinfast, Johor Plantations Group, Corn Active Contract, Cocoa Futures, Build A Bear Workshop and more

By Smartkarma Daily Briefs | Consumer, Daily Briefs

In today’s briefing:

Baicha Baidao (2555 HK) IPO: Valuation Insights
Nongfu Spring (9633 HK): Criticism Not a Concern, Strong Performance, But Flat Price, Buy
Sichuan Baicha Baidao IPO – Doesn’t Offer a Discount to Peers
Doesn’t Cooperation Rather than Competition Slow the Pace of Improvement in Disclosure in English?
Vinfast (VFS US) – An EV Accident Waiting to Happen?
Johor Plantations Pre-IPO – Assets in Prime Yield Stage But Industry Isn’t Really Expected to Grow
Corn Prices To Fire Up on Rising Energy Costs
Inflation Surprises as Commodities Rip Higher
BBW: Management Meetings: Poised for Growth; Reiterate Buy Rating, $41 PT

Baicha Baidao (2555 HK) IPO: Valuation Insights

Sichuan Baicha Baidao Industrial (SCBCBDID CH), a leading freshly made tea drinks company, has launched an HKEx IPO to raise US$330 million. The shares will be listed on 23 April.
We previously discussed the IPO in Baicha Baidao IPO: The Bull Case and Baicha Baidao IPO: The Bear Case.
There are no cornerstone investors. Our valuation analysis suggests that Baicha is fairly valued at the HK$17.50 IPO price. Therefore, we would pass on the IPO.

Nongfu Spring (9633 HK): Criticism Not a Concern, Strong Performance, But Flat Price, Buy

By Ming Lu

We believe the criticism against Nongfu Spring will eventually help the company.
Catching the trend of sugar free, tea revenue surged by 83% in 2023.
The company achieved higher growth and higher margin, but its stock price is still flat.

Sichuan Baicha Baidao IPO – Doesn’t Offer a Discount to Peers

By Small Cap Consumer Research

Sichuan Baicha Baidao Industrial is looking to raise up to US$330m in its HK IPO.
SBBI sells new-style tea drinks through its ChaPanda stores. According to F&S, SBBI ranked third in China’s new-style tea shop market with a market share of 6.8% in FY23.
We have looked at the company’s performance in our past note. In this note, we talk about valuations

Doesn’t Cooperation Rather than Competition Slow the Pace of Improvement in Disclosure in English?

By Aki Matsumoto

TSE officially announced that it will request prime market listed companies to simultaneously disclose two documents, financial statements and timely disclosure information, in Japanese and English from April 2025.”
Given the characteristics of Japanese companies, which tend to implement only minimum requirements, few companies will engage in English language disclosure in their annual securities reports, which wasn’t explicitly stated.
Rather than improving the quality of the market to make it easier for global investors to trade, TSE has set efforts targets to match the speed of the slowest ship.

Vinfast (VFS US) – An EV Accident Waiting to Happen?

By Angus Mackintosh

Vinfast (VFS US) is large on promise but low on delivery, with sales in FY2023 coming in well below expectations, and the vast majority being to related companies.
The company is building huge capacity in Vietnam, India, and Indonesia in the region, and in the US, where sales have been slow but where capex is required.
Vingroup has set up ride-hailing company GSM, using Vinfast vehicles for its fleet, making up 50% of its sales in 2023, leaving question marks over the sustainability of its model.

Johor Plantations Pre-IPO – Assets in Prime Yield Stage But Industry Isn’t Really Expected to Grow

By Clarence Chu

Johor Plantations Group (2368120D MK) is looking to raise around US$180m in its upcoming Malaysia IPO.
Johor Plantations Group (JPG) is an upstream oil palm plantation firm operating predominantly in Johor, Malaysia.
In this note, we look at the firm’s past performance.

Corn Prices To Fire Up on Rising Energy Costs

By Pranay Yadav

Corn prices are presently being pressured by ample supplies owing to the record US harvest.
Corn prices face an upside risk owing to elevated demand for ethanol and supply uncertainty from the South American harvest.
Premium for long-dated corn futures over near-term futures is on the rise. A calendar spread can be used to express this view.

Inflation Surprises as Commodities Rip Higher

By The Commodity Report

Last week’s inflation data surprised market participants on the upside. CPI YoY: 3,2% vs. 3,1% estimate. Core CPI m/m: 0,4% vs 0,3% estimated
Even larger was the upside surprise in the PPI data. Friends of the 70s double-dip inflation scenario will probably love this chart.
Take a closer look at the 70s and how inflation recovered before it take of in the late 70s for another rip higher.

BBW: Management Meetings: Poised for Growth; Reiterate Buy Rating, $41 PT

We are reiterating our Buy rating, $41 price target and projections for Build-A-Bear Workshop after meeting with management in their St.
Louis headquarters.
We believe there remain multiple near and longer term growth opportunities for the company, as they expand the product, places and prices they offer “Furry friends” and further leverage the trusted Build-a-Bear brand name.

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Apr 16

Daily Brief TMT/Internet: Rorze Corp, Horizon Robotics, LTIMindtree, Activision Blizzard, Sea , Kokusai Electric , Travelsky Technology Ltd H, 5G Networks Ltd/Australia, Douyu International Holdings and more

By Smartkarma Daily Briefs | Daily Briefs, TMT/Internet

In today’s briefing:

Rorze (6323) | Outperforming Expectations Despite 200% Share Price Rally
Horizon Robotics IPO Preview: “Journey Together”, Strong Business Position and Market Share Gains
Quiddity Leaderboard NIFTY Sep 24: Multiple Names Eligible for NIFTY 50 Addition
China Consumption Weekly (15Apr2024): NetEase, Activision Blizzard, Li Auto, Alibaba, Feihe, Uniqlo
Sea Limited (SE) – Friday, Jan 12, 2024
Kokusai Electric IPO Lock-Up – KKR Will Be Tempted by the US$2.7bn Release but Might Have to Wait
Travelsky (696 HK | HOLD | TP:HKD9.92): Domestic Travel Will Support Growth
5G Networks Limited (5GN) – Sunday, Jan 14, 2024
Douyu Intl Hldings Ltd -Adr (DOYU) – Sunday, Jan 14, 2024

Rorze (6323) | Outperforming Expectations Despite 200% Share Price Rally

By Mark Chadwick

Rorze exceeds expectations in FY2/24 with a 6% revenue beat and an 11% surpass in operating profit, setting a record-high revenue of 28 billion yen in 4Q FY2/24.
FY2/25 revenue guidance of 120 billion yen marks a 12% beat against analyst estimates, with operating profit expected to hit 32 billion yen, outperforming expectations by 10%.
Rorze’s stock, though no longer deeply undervalued, remains reasonably priced at 16.5x NTM EBIT, indicating strong potential for earnings growth-driven future upside.

Horizon Robotics IPO Preview: “Journey Together”, Strong Business Position and Market Share Gains

By Andrei Zakharov

Horizon Robotics, a consumer-centric and fast-growing provider of integrated ADAS and AD solutions for passenger vehicles, filed for an IPO and plans to raise up to $500M in Hong Kong.
Horizon Robotics was founded in 2015 by Dr. Yu Kai, Dr. Chang Huang, Ms. Feiwen Tao, and a group of scientists and tech entrepreneurs.
I have a positive view of an upcoming IPO and believe Horizon Robotics is in a great position to capitalize on rapidly growing smart vehicles market in China and worldwide.

Quiddity Leaderboard NIFTY Sep 24: Multiple Names Eligible for NIFTY 50 Addition

By Janaghan Jeyakumar, CFA

NIFTY 50 represents the 50 largest stocks listed in the National Stock Exchange (NSE) of India and the NIFTY Next 50 index tracks the next 50 largest names.
In this insight, we take a look at the names leading the race to become ADDs/DELs for the NIFTY 50 and NIFTY Next 50 indices in the September 2024 rebalance.
There could be at least one change for NIFTY 50 and separately, there could be up to five changes for NIFTY Next 50.

China Consumption Weekly (15Apr2024): NetEase, Activision Blizzard, Li Auto, Alibaba, Feihe, Uniqlo

By Ming Lu

NetEase will be Activision Blizzard’s agency in China again after a divorce more than a year ago.
Alibaba’s cloud service plans to reduce its overseas price offers by 23% on average.
Infant formula companies, such as Feihe and Ausnutria, suffered from revenue shrinkage in 2023.

Sea Limited (SE) – Friday, Jan 12, 2024

Sea Limited is a gaming and e-commerce company in Southeast Asia that has experienced fluctuations in its stock price but has strong underlying business performance.
Founded in 2009 as Garena by CEO Forrest Li, the company rebranded to Sea Ltd in 2017 and gained access to a wide range of games through Tencent’s investment in 2010.
After achieving profitability in 2023, Sea Ltd is now focused on accelerating growth and drawing comparisons to Amazon’s early years.

Kokusai Electric IPO Lock-Up – KKR Will Be Tempted by the US$2.7bn Release but Might Have to Wait

KKR raised around US$730m via selling some stake in Kokusai Electric (6525 JP) Japan IPO in Sep 2023. Its remaining stake will be released from its IPO linked lockup soon.
KE main business activities consist of the manufacturing, sales and maintenance service of semiconductor manufacturing equipment.
In this note, we talk about the upcoming lock-up expiry and possible deal dynamics.

Travelsky (696 HK | HOLD | TP:HKD9.92): Domestic Travel Will Support Growth

By Mohshin Aziz

Travelsky Technology Ltd H (696 HK) Jan-Feb operational data strong, volume processed by domestic +45% YoY and international by +52% YoY; much higher than the consensus 2024 forecast of 15%
Traffic among the Big 3 Chinese airlines was up 46% YoY (-9% MoM) in March to +8% vs 2019. Domestic traffic rose 19% YoY (-11% MoM) to +24% vs 2019
TP of HKD9.92 (+8% UPSIDE) is based on 2024 PE 14.8x (1SD below mean). The upside is uncompelling, but we advocate a HOLD as traffic growth is stronger than consensus

5G Networks Limited (5GN) – Sunday, Jan 14, 2024

5GN sold hosting business and 2/3 of domains business, resulting in over $100 million net gain
Company left with $84 million in cash after full debt repayment and transaction costs
Expected to generate $5 million in net income post-sale, plans to use cash for acquisitions, share buyback, and dividend, stock expected to rerate positively if targets met.

Douyu Intl Hldings Ltd -Adr (DOYU) – Sunday, Jan 14, 2024

By VRS (Valuation & Research Specialists)

Douyu, a Chinese gaming livestreaming platform with Tencent as a major stakeholder, is facing challenges from competition and a stagnant market growth.
The company has cut costs and is now operating at breakeven, with a significant amount of cash in US dollars available for distribution or capital allocation.
Despite the risks associated with the stock and sector, Douyu presents a potentially attractive investment opportunity as its stock is trading at only 28% of its net cash value.

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Apr 16

Daily Brief Industrials: J&T Global Express , Comer Industries SpA, Norcros PLC, Emerson Electric Co, Controladora Vuela Cia-Adr, Lassila & Tikanoja Oyj, Lsi Industries and more

By Smartkarma Daily Briefs | Daily Briefs, Industrials

In today’s briefing:

J&T Global Express Q124 Operating Stats: One Step Forward for Disclosure, & One Step Back
Comer Industries : Unveiling a Hidden Champion with a Sustainable 12% Free Cashflow Yield
NORCROS PLC: Equity Research Flash Note
Emerson Electric Co (EMR) – Monday, Jan 15, 2024
Controladora Vuela Compania (VLRS) – Saturday, Jan 13, 2024
Lassila &Amp; Tikanoja (LAT1V) – Sunday, Jan 14, 2024
Lsi Industries Inc (LYTS) – Sunday, Jan 14, 2024

J&T Global Express Q124 Operating Stats: One Step Forward for Disclosure, & One Step Back

By Daniel Hellberg

On April 9, J&T disclosed operating stats from Q124 — a positive surprise
We welcome the disclosure, but J&T should also explain X-border’s demise
We believe J&T’s China operation remains far less profitable than its peers’

Comer Industries : Unveiling a Hidden Champion with a Sustainable 12% Free Cashflow Yield

By Contrarian Cashflows

Comer Industries, an Italian family-owned company, specializes in producing mission-critical components for agricultural and construction vehicles.
Operating under an asset-light assembler business model in an industry marked by consolidation and significant barriers to entry, Comer Industries has consistently delivered impressive returns on capital, boasting a ROCE exceeding 20% for the past three years.
Despite its strong performance, the company’s shares trade at a normalized 12.4% free cash flow yield and a 7.2 EV/EBIT, considerably lower than industry peers.

NORCROS PLC: Equity Research Flash Note

Norcros plc is a United Kingdom-based supplier of bathroom and kitchen products.
The principal activities of the Company and its subsidiaries are the design, manufacture, and distribution of a range of bathroom and kitchen products, mainly in the United Kingdom and South Africa.
In the United Kingdom, it offers a range of bathroom and kitchen products for domestic and commercial applications.

Emerson Electric Co (EMR) – Monday, Jan 15, 2024

Emerson has undergone significant portfolio transformations, reducing from five business lines to two by 2021
Incoming CEO Lal Karsanbhai announced strategic actions including selling InSinkErator and a majority stake in Climate Tech, while acquiring stakes in AspenTech and National Instruments
These moves aimed to further position Emerson as a provider of commercial refrigeration systems, consumer controls, software for process industries, and digital test equipment.

Controladora Vuela Compania (VLRS) – Saturday, Jan 13, 2024

VLRS is Mexico’s largest ultra-low-cost carrier with Indigo Partners as a key shareholder, benefiting from favorable negotiated aircraft pricing with Airbus
Despite a decline in stock price, the company’s business model and profit profile remain unchanged
VLRS has faced temporary challenges but is positioned to benefit from a more rational airline market in Mexico following the demise of Interjet

Lassila &Amp; Tikanoja (LAT1V) – Sunday, Jan 14, 2024

L&T has expanded its focus to waste and environmental services, as well as facility services
Despite temporary issues and lack of guidance, L&T remains competitively positioned in the local market
The company plans to sell its low-margin Facility Services businesses, which could drive value realization and make it an attractive investment opportunity with potential for buyout interest.

Lsi Industries Inc (LYTS) – Sunday, Jan 14, 2024

LSI Industries, Inc. (LYTS) provides corporate visual image solutions in various markets through its Lighting and Graphic segments
The company focuses on maintaining a strong balance sheet and generating sustainable free cash flow to drive up share price
Management’s dedication to shareholder value makes LSI Industries an attractive investment opportunity with a double-digit FCF yield

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Apr 16

Most Read: Pasona Group, Guangzhou Automobile Group, Sichuan Baicha Baidao Industrial, Hanmi Science, Vodafone Idea , HD Hyundai Marine Solution , Tietto Minerals Ltd, Horizon Robotics and more

By Smartkarma Daily Briefs | Daily Briefs, Most Read

In today’s briefing:

Pasona (2168 JP) Special Div – Too Small to Matter
Get Your Pasona (2168 JP) Rump For Free
A/H Premium Tracker (To 12 Apr 2024): Liquid AH Premia Still Very Wide, The Right Spreads Behaving
Baicha Baidao (2555 HK) IPO: Valuation Insights
Imminent Block Deals Involving Hanmi Science Shares Due to Inheritance Tax Payments
Vodafone Idea Placement – Very Well Flagged but Its Not Going to Fix a Whole Lot of Issues
ECM Weekly (15th Apr 2024) – Hyundai Marine, Bharti, Kayou, Zeekr, ChaPanda, Samsung, WT Micr, Sompo
Tietto Minerals (TIE AU): Zhaojin’s Revised and Final Takeover Offer Remains Light
Ohayo Japan | Escalating Tensions
Horizon Robotics IPO Preview: “Journey Together”, Strong Business Position and Market Share Gains

Pasona (2168 JP) Special Div – Too Small to Matter

By Travis Lundy

On Friday, Pasona Group (2168 JP) announced its expected use of funds into the May 2024 results, including a special dividend plan, investment for growth, and “strengthening the operating platform.”
The plan will disappoint. The stock may get hit hard. The truth is somewhere in the middle. This is where active stewardship matters. So get stewarding.
A special div paid over 5yrs should be paid one-shot, now. If the company has plans worth supporting, set KPIs now, ask for money later. Good plans get good money.

Get Your Pasona (2168 JP) Rump For Free

By David Blennerhassett

Dai Ichi (8750 JP) agreed with Pasona (2168 JP) for Pasona to sell its shares back to Benefit One (2412 JP) in a buyback after Dai-Ichi’s Tender Offer for Benefit.
This process gives Pasona a tax advantage versus selling into a Tender Offer at the same price.
What does Pasona take home? ~¥2,822/share versus its last price of ¥2,733/share. Then you have stubs ops (conservatively worth up to ~¥1,960/share) and Pasona’s stake in Bewith (9216 JP) (~¥360/share).

A/H Premium Tracker (To 12 Apr 2024): Liquid AH Premia Still Very Wide, The Right Spreads Behaving

By Travis Lundy

The New/Better A-H Premium Tracker has tables, charts, measures galore to track A/H premium positioning, southbound and northbound positioning/volatility in pairs over time, etc.
SOUTHBOUND’s consecutive buying streak ended on Monday 25-March, then started again. NORTHBOUND has started selling (but buying semi tech).
Hs rebounded vs As. AH Premia still wide. Fabulous two-week performance by the Quiddity Portfolio (+2.09% over the two weeks) on a delta 3:1 long H/short A

Baicha Baidao (2555 HK) IPO: Valuation Insights

Sichuan Baicha Baidao Industrial (SCBCBDID CH), a leading freshly made tea drinks company, has launched an HKEx IPO to raise US$330 million. The shares will be listed on 23 April.
We previously discussed the IPO in Baicha Baidao IPO: The Bull Case and Baicha Baidao IPO: The Bear Case.
There are no cornerstone investors. Our valuation analysis suggests that Baicha is fairly valued at the HK$17.50 IPO price. Therefore, we would pass on the IPO.

Imminent Block Deals Involving Hanmi Science Shares Due to Inheritance Tax Payments

By Sanghyun Park

The local market anxiously awaits the family’s ability to pay by early May. Failure could prompt the Tax Service to sell their pledged stocks, including Hanmi Science shares.
Preventing Tax Service from selling Hanmi Science shares requires additional collateral, unlikely due to existing pledges. Rumor suggests mother and daughter may sell shares before May, followed by Tax Service.
Given negotiation uncertainty with KKR, it’s crucial to prepare for potential failure rather than solely relying on success, necessitating a pragmatic approach.

Vodafone Idea Placement – Very Well Flagged but Its Not Going to Fix a Whole Lot of Issues

Vodafone Idea (IDEA IN) plans to raise around US$2.2bn via a follow-on public offering.
The deal has been in the works for years and proceeds will be used for capex and short-term debt repayment.
In this note, we will run the deal through our ECM framework and talk about the deal dynamics.

ECM Weekly (15th Apr 2024) – Hyundai Marine, Bharti, Kayou, Zeekr, ChaPanda, Samsung, WT Micr, Sompo

Aequitas Research puts out a weekly update on the deals that were covered by the team recently along with updates for upcoming IPOs.
On the IPO front, the focus remained on HD Hyundai Marine Solution (443060 KS), even as Sichuan Baicha Baidao Industrial is gearing up to launch its IPO.
On the placement front, there were deals across India, South Korea and Australia.

Tietto Minerals (TIE AU): Zhaojin’s Revised and Final Takeover Offer Remains Light

Tietto Minerals Ltd (TIE AU) has disclosed a revised conditional proposal from Zhaojin Mining Industry H (1818 HK) at A$0.68 per share, a 17.2% premium to the previous offer of A$0.58.
The offer is conditional on a 50.1% minimum acceptance condition (which can be waived). The offer is declared best and final.
Despite the bump, the offer is below the IE’s valuation range of A$0.79 to A$0.93 per share. The IE’s valuation range would be around 25% higher at current gold prices.

Ohayo Japan | Escalating Tensions

By Mark Chadwick

The Dow Jones Industrial Average marked its sixth consecutive decline amidst fears of further conflict escalation
The yen slipped to the mid-154 range against the dollar on Monday, marking its lowest level since June 1990
Sony Group is preparing to unveil a more potent PS5 console, possibly by the end of this year.

Horizon Robotics IPO Preview: “Journey Together”, Strong Business Position and Market Share Gains

By Andrei Zakharov

Horizon Robotics, a consumer-centric and fast-growing provider of integrated ADAS and AD solutions for passenger vehicles, filed for an IPO and plans to raise up to $500M in Hong Kong.
Horizon Robotics was founded in 2015 by Dr. Yu Kai, Dr. Chang Huang, Ms. Feiwen Tao, and a group of scientists and tech entrepreneurs.
I have a positive view of an upcoming IPO and believe Horizon Robotics is in a great position to capitalize on rapidly growing smart vehicles market in China and worldwide.

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Apr 15

Daily Brief Australia: Azure Minerals, Tietto Minerals Ltd, Iron Ore and more

By Smartkarma Daily Briefs | Australia, Daily Briefs

In today’s briefing:

Merger Arb Mondays (15 Apr) – Azure, Silver Lake, Genex, Boral, China TCM, C&F Logistics, Roland DG
Tietto Minerals (TIE AU): Zhaojin Mining Secures Reg Approvals. Then Bumps
Iron Ore Primer: Understanding The Drivers Of the Market, Ways To Play The Sector

Merger Arb Mondays (15 Apr) – Azure, Silver Lake, Genex, Boral, China TCM, C&F Logistics, Roland DG