In today’s briefing:
- Quiddity HSTECH Dec 23 Flow Expectations: US$512mn One-Way Flows if the Expected Change Takes Place
- Midea Group H Share Listing: The Investment Case
- Quiddity HSCEI Dec 23 Rebalance: Zhongsheng Vs China Grand Pair Interesting if Deletion Is Confirmed
- Global Rice Market Disrupted: India’s Export Ban Sparks Chaos and Worries
- Korea Small Cap Gem #26: LF Corp – A Deep Value Play and the Lee Hyori Effect
- CyberAgent: Gaming Shows Some Recovery but New Releases Yet to Shift Momentum for Games
- Mayora Indah (MYOR IJ) – Classy Biscuits and Beverages
Quiddity HSTECH Dec 23 Flow Expectations: US$512mn One-Way Flows if the Expected Change Takes Place
- The HSTECH Index tracks the performance of the top 30 technology companies listed in Hong Kong that have high business exposure to certain technology themes.
- The index changes and the indicative component weights for the December 2023 index review will be published in a couple of weeks.
- In this insight, we take a look at the potential index changes and the resultant capping flows for the HSTECH Index in December 2023.
Midea Group H Share Listing: The Investment Case
- Midea Group Co Ltd A (000333 CH), the world’s biggest home appliances maker, has filed for a H Share listing to raise US$1 billion, according to press reports.
- Midea is the world’s largest home appliance company in sales volume and revenue in 2022. Its subsidiary, KUKA Group, is one of the world’s “big four” industrial robotics companies.
- The investment case rests on return to growth, margin on an upward trajectory, cash generation, strong balance sheet and undemanding valuation.
Quiddity HSCEI Dec 23 Rebalance: Zhongsheng Vs China Grand Pair Interesting if Deletion Is Confirmed
- The HSCEI serves as a benchmark to reflect the overall performance of the top 50 “Mainland China” Securities listed in Hong Kong.
- In a couple of weeks, the official index changes and the indicative weights for the final index members for the December 2023 rebalance will be announced.
- In this insight, we take a look at the potential index changes and the resultant capping flows for HSCEI in December 2023.
Global Rice Market Disrupted: India’s Export Ban Sparks Chaos and Worries
- India’s rice export ban triggers global market chaos, leading to panic buying and uncertainty in rice supply, affecting both India and Thailand.
- El Niño’s drought threatens Thailand’s rice production, adding to the crisis. Other Asian nations impose export bans, raising inflation concerns.
- Global rice prices rise, impacting vulnerable nations and sparking fears of a repeat of the 2008 rice crisis due to protectionist policies.
Korea Small Cap Gem #26: LF Corp – A Deep Value Play and the Lee Hyori Effect
- Lf Corp (093050 KS) is the 26th company in our Korea Small Cap Gems series.
- LF Corp is one of the leading apparel companies in Korea which has a market cap of 411 billion won. LF Corp is trading at 0.3x P/B and 4x P/E.
- A key near-term catalyst is better than expected sales of the Reebok branded apparel that are promoted by the pop icon Lee Hyori.
CyberAgent: Gaming Shows Some Recovery but New Releases Yet to Shift Momentum for Games
- CA reported 4Q and full-year FY09/2023 results today. 4Q revenue increased 5% YoY while OP dropped more than 50% during the quarter. Revenues beat consensus while OP fell behind.
- Games revenues further decreased YoY during the quarter (improved QoQ) while it managed to report an OP which was possible due to UMA MUSUME’s game anniversary.
- Though CA released a new game in September and few lined-up for release, until the company releases a hit title like UMA MUSUME, we expect the recovery to be slow.
Mayora Indah (MYOR IJ) – Classy Biscuits and Beverages
- Mayora Indah (MYOR IJ) saw a significant positive surge in profitability from lower raw material prices and lower operating costs in 3Q2023, which suggests it will beat its FY2023 guidance.
- The company continues to launch new variants in both biscuits and beverages with a slant towards premiumisation and is also more aggressively attacking export markets, where its brands are strong.
- Mayora Indah (MYOR IJ) is expanding factory capacity to fuel growth in 2024 but should also benefit from pre-election spending from 4Q2023. Valuations look attractive versus historical comparisons.
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