In today’s briefing:
- TOPIX October Rebalance: BIG One With ¥1.8tn a Side to Trade
- PT Metrodata Electronics (MTDL IJ) – Driving Digitalisation in Indonesia
- Country Style Cooking Restaurant Chain Pre-IPO – The Negatives – Flagship Brand Still Struggling
- Betagro Pre-IPO Peer Comparison – Margins Historically Weaker than Peers, but Playing Catch Up
- Hong Kong CEO & Director Dealings: 7th Oct – Luk Fook, Zhongsheng Group, Kowloon Development
- ECM Weekly (9th Oct 2022) – CALB, Socionext, Betagro, Country Style, I-Tail, Lionheart, Kakao Pay
TOPIX October Rebalance: BIG One With ¥1.8tn a Side to Trade
- At the October rebalance, there are 970 stocks that will have a lower FFW while 114 stocks will have a higher FFW. 493 stocks will undergo a Phased Weight Reduction.
- Estimated one-way turnover is 2.54% resulting in a one-way trade of ¥1.815tn. 500 stocks have over 4 days ADV to trade, 100 stocks have over 9 days ADV to trade.
- Setting the threshold at +/-US$50m to trade, the stocks with inflows have outperformed the stocks with outflows by 6.5% over the last four months.
PT Metrodata Electronics (MTDL IJ) – Driving Digitalisation in Indonesia
- PT Metrodata Electronics booked a solid set of 1H2022 given that although revenues decline -11% its net profit grew +11.7% supported by its solutions and consulting business.
- We expect a 2H2022 recovery given 2Q2022 was impacted by Lebaran and solutions & consulting continues to recover driven by banking, oil & gas, and telecoms sectors.
- This remains an interesting and unique play on the increasing digitalisation of the Indonesian corporate ecosystem. Valuations remain attractive on 9.5x FY2023E PER, with 2-year EPS CAGR of +over +25%.
Country Style Cooking Restaurant Chain Pre-IPO – The Negatives – Flagship Brand Still Struggling
- Country Style Cooking Restaurant Chain (1985552D HK) is looking to raise about US$200m in its upcoming Hong Kong IPO.
- Country Style Cooking Restaurant Chain (CSCRC) is a Chinese quick service restaurant (QSR) chain situated in China. It operates two brands, namely: CSC and Rice Space, which are all self-operated.
- In this note, we talk about the not-so-positive aspects of the deal.
Betagro Pre-IPO Peer Comparison – Margins Historically Weaker than Peers, but Playing Catch Up
- Betagro (BTG TB) is looking to raise about US$460m in its Thailand IPO.
- Betagro is an integrated agro-industrial and food business in Thailand.
- Betagro identified three Thailand-listed companies which we included in our peer comparison exercise to determine how it has fared against its direct peers.
Hong Kong CEO & Director Dealings: 7th Oct – Luk Fook, Zhongsheng Group, Kowloon Development
- The data in this insight is collated from the “shareholding disclosure” link on the HKEx website.
- Often there is a corresponding HKEx announcement on the increase – or decrease – in the shareholding by directors. However, such disclosures are by no means an absolute.
- These insights may also flag those companies where shares have been pledged. Stocks mentioned include Luk Fook Holdings Intl (590 HK), Zhongsheng Group (881 HK), and Kowloon Development (34 HK).
ECM Weekly (9th Oct 2022) – CALB, Socionext, Betagro, Country Style, I-Tail, Lionheart, Kakao Pay
- 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, HK IPOs continued to struggle with CALB (3931 HK) joining Leapmotor (9863 HK) and Onewo (2602 HK) with its tepid performance.
- Given the mid-week HK holiday and the ongoing golden week, there weren’t any large placements this week.
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