In today’s briefing:
- MVIS Global Rare Earth/Strategic Metals Index Rebalance: Three Adds; Float & Capping Changes
- Anhui Conch Cement (914 HK): Time for More Aggressive Thoughts?
MVIS Global Rare Earth/Strategic Metals Index Rebalance: Three Adds; Float & Capping Changes
- There are 3 inclusions for the MVIS Global Rare Earth/Strategic Metals Index at the June rebalance. Plus there are free float and capping changes.
- One way turnover is estimated at 10.6% and will result in a one-way trade of US$66m. There are a few stocks with over 0.5 days of ADV to trade.
- Yunnan Chihong Zinc&Germanium Co, Ltd. (600497 CH) was not added to the index while ioneer Ltd (INR AU) has avoided deletion in June.
Anhui Conch Cement (914 HK): Time for More Aggressive Thoughts?
- Anhui Conch Cement (914 HK) has been facing numerous challenges, but at 0.5x P/B (2SD below average) and 36.4% of share price is net cash, it pays not overly bearish.
- Government stimulus measures may not be effective immediately, but should pave the way for better cement demand. A 16.5% increase in special purpose bond issuance in 4M23 is positive.
- Depressed cement price is bad, but this will drive small and inefficient players out of the market. This will bring more orderly competition and allow Conch Cement gain market share.
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