In today’s briefing:
- APR IPO Preview
- HSCEI Index Rebalance Preview: Zhongsheng (881 HK) Should Go This Time
- China’s Tourism Recovery Versus Other Major Tourist Sources in Asia: Delayed, Not Slower
- [Week 15] Namaste India 🙏 | 2023 Bloopers Edition
- Necessary to Dissolve Cross Shareholdings While Simultaneously Ensuring the Independence of BoD
APR IPO Preview
- APR is getting ready to complete an IPO in KOSPI in February 2024. The IPO price range is from 147,000 won to 200,000 won.
- According to the bankers’ valuation, the company’s valuation is expected to range from 1.1 trillion won to 1.6 trillion won post IPO.
- The company’s best selling product is its skin care beauty device product called Medicube Age-R.
HSCEI Index Rebalance Preview: Zhongsheng (881 HK) Should Go This Time
- Zhongsheng Group (881 HK) pops up as a potential deletion yet again and a much lower rank raises the probability of deletion to just short of a near certainty.
- With BeiGene (6160 HK) failing the Velocity Test for Tradeable Indexes, Zhongsheng Group (881 HK)‘s deletion from the index should result in China Unicom Hong Kong (762 HK)‘s inclusion.
- Estimated one-way turnover at the rebalance is 1.47% resulting in a one-way trade of HK$946m. Passives will need to trade over 2.5x ADV on both stocks.
China’s Tourism Recovery Versus Other Major Tourist Sources in Asia: Delayed, Not Slower
- China’s outbound tourism recovery started much later than others in the region
- In particular, Taiwan & Korea began ramping outbound travel earlier (in Q222)
- As destinations, Thailand & Vietnam recovered early, but now lag HK’s growth
[Week 15] Namaste India 🙏 | 2023 Bloopers Edition
- For this edition, we focus on our 2023 Bloopers, to improvise rather than get embarrassed. We also share some thoughts on potential enhancements that can be anticipated going forward.
- On the NIFTY Index (NIFTY INDEX), we are still not bearish but do not find the markets to be very attractive either.
- Bloopers in focus include Zomato (ZOMATO IN); CarTrade (CARTRADE IN) ; Hero Motocorp (HMCL IN) and Aavas Financiers Ltd (AAVAS IN).
Necessary to Dissolve Cross Shareholdings While Simultaneously Ensuring the Independence of BoD
- Toyota’s sale of Denso shares is believed to be aimed at securing cash for full-scale EV production, and it’s premature to expect “governance improvement through the sale of cross-held shares.”
- Since Toyota intends to maintain a 20% equity stake in Denso, which is an equity method affiliate, there will be no change in the influence on Denso for a while.
- While intercompany shareholdings and board reciprocity based on business relationships were one of Toyota’s strengths, the interests of minority shareholders were at risk of being left behind.
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