In today’s briefing:
- The TOPIX October FFW Trade – BIG Numbers
- Hyundai Motor India: Index Entry Timing for India’s Biggest IPO
- Hyundai Motor India Sets IPO Price Range
- Quiddity Leaderboard KOSPI 200 Dec 24: Up to 5 ADDs & 6 DELs Possible
- Hyundai Motor India IPO: Upsized Valuation Driven by Strong Investor Interest
- CR Beverage IPO: Valuation First-Look
- Create Sd Holdings Co (3148 JP): Q1 FY05/25 flash update
- SWSSF: Benefitting From Rising Demand for Decaffeinated Coffee & Natural Beverages
- Global Business Travel Group: A Tale Of Diversification & Focus On Professional Services! – Major Drivers
- Lithia Motors Inc.: Will Their Heavy Investments In EVs & Green Tech Integration Pay Off? – Major Drivers
The TOPIX October FFW Trade – BIG Numbers
- Post-Close on the 5th business day of October every year, the TSE announces the Free Float Weight review for all stocks where the FY ends in the Jan-March quarter.
- Yesterday saw 210 decent changes to FFW (more up than down). There are still 400+ Phased Weight Reductions, 3 new adds (3663, 3993, 9341), and some share cancellation-based share-count reductions.
- It turns out there is a LOT to trade. I see ¥2trln one-way (¥2trln net to buy on 245 names, and ¥2trln to sell on the other nearly 1,900 names).
Hyundai Motor India: Index Entry Timing for India’s Biggest IPO
- Hyundai Motor India (1342Z IN) is looking to list on the exchanges by selling up to INR 279bn (US$3.3bn) of stock at a valuation of up to INR 1,593bn (US$19bn).
- The anchor allocations will be completed early next week, and the stock is expected to start trading on 22 October.
- The stock will not get Fast Entry to global indices. Inclusion at regular rebalances should take place in February and June next year.
Hyundai Motor India Sets IPO Price Range
- Hyundai Motor India (1342Z IN) has set an IPO price range of 1,865 to 1,960 rupees per share, aiming for a valuation as high as US$19 billion.
- Hyundai Motor (005380 KS) is selling a 17.5% stake in Hyundai Motor India in this public offering. Hyundai Motor India IPO is scheduled to trade starting 22 October.
- Our updated base case valuation of Hyundai Motor India is market cap of US$19.7 billion based on P/E of 25.9x our estimated net profit of 64.1 billion INR.
Quiddity Leaderboard KOSPI 200 Dec 24: Up to 5 ADDs & 6 DELs Possible
- KOSPI 200 is a Korean blue-chip index that tracks the 200 largest and most-liquid names listed in the KOSPI section of the Korea Exchange (KRX).
- In this insight, we take a look at the names leading the race to become ADDs and DELs during the upcoming semiannual review in December 2024.
- We expect up to five ADDs and six DELs for the KOSPI 200 Index during this rebal event based on the latest available data. Small increase vs two weeks ago.
Hyundai Motor India IPO: Upsized Valuation Driven by Strong Investor Interest
- Hyundai Motor India (1342Z IN) ’s IPO, launching next week, is expected to be priced between Rs1,865 and Rs1,960, valuing the company at USD 18-19 billion.
- At this valuation, Hyundai’s India unit will account for over 40% of its parent company’s market cap, potentially unlocking significant value for Hyundai Motor (005380 KS).
- Despite a weak growth in India’s passenger vehicle sales ytd, investor interest in the IPO is reportedly strong thanks to India’s booming equity market and robust fund inflows.
CR Beverage IPO: Valuation First-Look
- China Resources Beverage (CRB HK), China’s largest purified drinking water company, is premarketing an HKEx to raise US$0.5-1 billion.
- We previously discussed the IPO in CR Beverage IPO: The Bull Case, CR Beverage IPO: The Bear Case and CR Beverage IPO: The Investment Case.
- In this note, we present our forecasts and examine CR Beverage’s potential valuation range for the first time.
Create Sd Holdings Co (3148 JP): Q1 FY05/25 flash update
- Revenue increased by 9.4% YoY to JPY113.9bn, with growth in comparable store revenue and customer count.
- Operating profit rose by 10.7% YoY to JPY5.3bn, supported by higher gross profit and cost control measures.
- The company expanded its network by opening 10 drugstores and six in-store dispensing pharmacies, closing one store.
SWSSF: Benefitting From Rising Demand for Decaffeinated Coffee & Natural Beverages
- Consumption of decaffeinated coffee is rising and outpacing the expansion of the overall coffee beverage category, yet still represents only about 15% and 12%, respectively, of total coffee consumption in the U.S. and Western Europe.
- This implies substantial growth prospects for Swiss Water, we believe, as sales of decaffeinated coffee continue to increase and as consumers’ demand for natural food & beverages and premium coffees continues to rise.
- We believe the company’s natural decaffeinated process is a key factor that could drive demand for Swiss Water decaffeinated coffee within the category and which has a positive tailwind from coffee consumption trends.
Global Business Travel Group: A Tale Of Diversification & Focus On Professional Services! – Major Drivers
- American Express Global Business Travel (GBT) reported notable financial performance for the second quarter of 2024, illustrating a mix of strengths and areas for focus that investors should consider.
- The company demonstrated robust adjusted EBITDA growth, substantial margin expansion, and significant cash flow acceleration.
- Most notably, GBT achieved a 20% growth in adjusted EBITDA and margin expansion of 240 basis points year-over-year.
Lithia Motors Inc.: Will Their Heavy Investments In EVs & Green Tech Integration Pay Off? – Major Drivers
- Lithia Motors’ second quarter earnings revealed both promising advances and looming challenges as it navigates a rapidly evolving automotive market.
- President and CEO Bryan DeBoer detailed the company’s response to operational hurdles, notably a cyberattack on CDK, their dealer management system provider, which significantly impacted operations temporarily.
- Despite this, Lithia Motors reported a 14% year-over year increase in revenues, achieving $9.2 billion in the quarter, marking a strong financial performance amidst industry-wide challenges.
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