In today’s briefing:
- S&P/ASX Adhoc Index Rebalance: SVW in ASX100, BGL in ASX200
- Fushan Energy: Coking Coal Weak But 14% Yield and 55% of the Mkt Cap in Cash
- Morning Views Asia: Meituan, Nickel Industries Ltd, Vedanta Resources
S&P/ASX Adhoc Index Rebalance: SVW in ASX100, BGL in ASX200
- Shareholders have approved OZ Minerals Ltd (OZL AU)‘s acquisition by BHP Group Ltd (BHP AU) and OZL is expected to stop trading after the close on 18 April.
- OZ Minerals Ltd (OZL AU) will be replaced by Bellevue Gold (BGL AU) in the S&P/ASX 200 (AS51 INDEX) and by Seven Group Holdings (SVW AU) in the S&P/ASX 100.
- There has been huge short covering on Seven Group Holdings (SVW AU) and Bellevue Gold (BGL AU) over the last few months.
Fushan Energy: Coking Coal Weak But 14% Yield and 55% of the Mkt Cap in Cash
- After declaring a whopping 18% dividend yield in FY22, we expect Shougang Fushan Resources (639 HK)’s generous payments to continue as they could declare another 14% in FY23e.
- The margin of safety is high as there is a cash buffer (55% of the market cap in cash) and 10-year average annual free cash flows of 1.5 bn HKD.
- China’s FAI stimulus and stabilizing the steel margins could be catalysts to drive the share price forward in the short term.
Morning Views Asia: Meituan, Nickel Industries Ltd, Vedanta Resources
Lucror Analytics Morning Views comprise our fundamental credit analysis, opinions and trade recommendations on high yield issuers in the region, based on key company-specific developments in the past 24 hours. Our Morning Views include a section with a brief market commentary, key market indicators and a macroeconomic and corporate event calendar.
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