In today’s briefing:
- Taiwan Dual-Listings Monitor: TSMC Premium Remains Elevated; ASE Domestic Short Interest Hits Highs
- JD.com (JD US): Boycotted by Male Users, Denies Run on JD Finance
- Japan Value | Sanwa, Nikon, Nihon Kohden, Maruichi Steel
- Legochem Biosciences (141080 KS): New ADC Deal Enhances Confidence on ConjuAll Technology Platform
- CVRX: Great Technology that Now Has a Bright Future
- China Consumption Weekly (21 Oct 2024): Sun Art, Alibaba, Tesla, JD.com
- Singamas (716 HK): Positive Readthrough from CIMC
- Unloved Japan Roundup: Bracing for Q3
- Kaspi.kz: Kazakhstan’s Super-App Acquiring Turkey’s E-Commerce Leader
Taiwan Dual-Listings Monitor: TSMC Premium Remains Elevated; ASE Domestic Short Interest Hits Highs
- TSMC: +18.7% Premium; Trading Range Sustaining at an Elevated Level
- UMC: -1.8% Discount; Good Level to Go Long the Spread
- ASE: 0.0% Premium; Good Level to Go Long the Spread
JD.com (JD US): Boycotted by Male Users, Denies Run on JD Finance
- On October 18, JD denies there is a run on JD Finance.
- Many male users claimed they boycott JD for the invitation of Miss Yang, a talk show celebrity.
- We believe the event will negatively impact JD and benefit Alibaba.
Japan Value | Sanwa, Nikon, Nihon Kohden, Maruichi Steel
- Sanwa Holdings revised its first-half (1H) forecasts, increasing sales estimates from ¥293 billion to ¥313 billion, and operating profit (OP) from ¥25.6 billion to ¥32 billion
- Essilor’s growing investment in Nikon, with the optical giant increasing its stake from 5.1% to 7.38% in just a few weeks, underscores our bullish view on the name.
- Nihon Kohden recently revised its first-half (1H24) guidance, raising sales expectations by ¥700 million to ¥102.7 billion and operating profit by ¥2 billion to ¥5 billion.
Legochem Biosciences (141080 KS): New ADC Deal Enhances Confidence on ConjuAll Technology Platform
- Legochem Biosciences (141080 KS) entered into a license agreement with Ono Pharmaceutical for LCB97, a pre-clinical stage ADC targeting solid tumors for an upfront and milestone payment of $700M.
- Legochem is now pursuing high-value package deals, combining platform and product deals or multi-target product deals. The above-mentioned deal with Ono is the first such package deal.
- Legochem’s ADC technology platform is seeing rising demand as number of providers decreased (due to recent M&A deals) while big pharmaceutical companies are rapidly expanding their ADC businesses.
CVRX: Great Technology that Now Has a Bright Future
- CVRx (CVRX US) was up 19% (including after hours) as the AMA accepted CPT Category I codes for Barostim. Codes are to be implemented on January 1, 2026
- With Category I CPT codes CVRX should see the benefits of clinical validation, regulatory de-risking, reimbursement potential, increased market access and significant improvement in revenue potential
- Barostim is the only neuromodulation device for heart failure and resistant hypertension, positioning CVRx as a compelling acquisition target due to its unique technology and strong market potential.
China Consumption Weekly (21 Oct 2024): Sun Art, Alibaba, Tesla, JD.com
- Alibaba is selling Sun Art, a listed supermarket subsidiary, as Sun Art’s revenue is shrinking.
- Alibaba gained 6 million new retailers on its Taobao Tmall platform year to date.
- In September Tesla’s sales volume increased by 66% YoY and all major Chinese NEV grew strongly.
Singamas (716 HK): Positive Readthrough from CIMC
- With its share price returning to HK$0.68 level, the investment value of Singamas Container Holdings (716 HK) has re-emerged.
- Its competitor, CIMC, has just issued a positive profit alert, indicating an impressive 888.7% and 317.3% growth in reported and recurring earnings, which is positive for Singamas.
- An 11% growth in the global containership fleet in FY24 is also beneficial to the company. Its net cash of HK$1.65bn equals 1.02x its market capitalisation.
Unloved Japan Roundup: Bracing for Q3
- Mazda’s domestic unit volume was up 24% in September, compared to an industrywide total of only 1.1%.
- Meanwhile, Q2 consensus EBIT estimates have come down by 32% since the release of Q1 results.
- But the yield is over 6%, and the Payout ratio is only 17% even on the new estimates.
Kaspi.kz: Kazakhstan’s Super-App Acquiring Turkey’s E-Commerce Leader
- On Oct 17th, Kaspi.kz, Kazakhstan’s super-app, signed a stock purchase agreement to acquire a 65.4% stake in Hepsiburada, a leading e-commerce platform in Turkey.
- The transaction is still subject to regulatory approval; Hepsiburada’s share price in the US increased by ~60% on Friday after the announcement.
- The acquisition makes a lot of strategic sense which would elevate Kaspi.kz to a position to target a combined market of >100 million population (vs. currently 20 million).
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