In today’s briefing:
- Haitong International (665 HK): Haitong Securities Ponders an Offer
- Quiddity HK Connect SOUTHBOUND Flows (Week to 28Sep23) : Meituan, Tencent, Kuaishou and Banks
- EQD | SPX WEEKLY/MONTHLY OVERSOLD: Global Bounce Upcoming
- Seoul Guarantee Insurance IPO: Valuation Insights
Haitong International (665 HK): Haitong Securities Ponders an Offer
- Haitong International Securities Group (665 HK) entered a trading halt pending the release of an announcement under the Hong Kong Code on Takeovers and Mergers on 27 September.
- Bloomberg reported that Haitong Securities Co Ltd (H) (6837 HK), the controlling shareholder, plans to buy the remainder of Haitong International to stem its losses.
- Privatisation through a Bermuda scheme involves the headcount test, so a decent premium is required – privatisation precedents suggest HK$1.08-1.13 per share offer (52%-59% premium to last close).
Quiddity HK Connect SOUTHBOUND Flows (Week to 28Sep23) : Meituan, Tencent, Kuaishou and Banks
- This is the brand spanking new Quiddity HK Connect SOUTHBOUND Monitor. We work off the same presentation as the A/H Premium Monitor and Mainland Connect NORTHBOUND Monitor.
- The data on liquid names is presented for 5 days and four weeks and anything seen can be ranked in tables or selected and charted (names, sectors, outperformance, etc).
- We like the nifty interactive tables+charts (please play with them!) and we welcome feedback. This 4-day week saw HKD 14.0bn+ of net buying. That makes 11 weeks of net inflows.
EQD | SPX WEEKLY/MONTHLY OVERSOLD: Global Bounce Upcoming
- The S&P 500 INDEX is OVERSOLD, WEEKLY and MONTHLY. There will be a LONG reversal soon, and it should be a MONTHLY reversal (at least 1 month uptrending).
- The WEEKLY model is telling us the market is oversold, but there is a possibility of having 1-2 more weeks down, that should be the end of the correction.
- Go LONG Global Equities and pay attention to the MONTHLY (4203) and WEEKLY (4077) supports: if the index reaches these supports it will be very oversold.
Seoul Guarantee Insurance IPO: Valuation Insights
- Seoul Guarantee Insurance (031210 KS), a leading guarantee provider in Korea, is pre-marketing an IPO to raise up to KRW362 billion (US$272 million).
- We previously discussed the IPO in Seoul Guarantee Insurance IPO: The Bull Case and Seoul Guarantee Insurance IPO: The Bear Case.
- In this note, we look at the syndicate’s valuation methodology. Our valuation analysis suggests that the IPO price range is unattractive, and we would pass on the IPO.
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