In today’s briefing:
- GJS/Haitong Merger Musings
- AUB Group Placement – Well Flagged Selldown Will Clear the Overhang
- Digital Asset Landscape Primer: Part 1
- FP Partner (7388 JP): Q3 FY11/24 flash update
- MOO: Metallurgical Analysis Supports By-Product Metals
GJS/Haitong Merger Musings
- Back in March, the CSRC said it aimed to “form two to three investment banks and institutions with international competitiveness and market leadership by 2035″.
- Last week’s announced merger between China’s leading state-backed brokerages, Guotai Junan Securities (2611 HK) and Haitong (6837 HK), is a move in that direction. Expect more scrip mergers to follow.
- There have also been some media reports that the GJS/Haitong terms disadvantage holders of other Hong Kong broker stocks if potentially acquired in a merger. It’s not quite that simple.
AUB Group Placement – Well Flagged Selldown Will Clear the Overhang
- Odyssey is looking to raise A$277m (US$186m) from selling its entire stake in AUB Group Limited (AUB AU).
- The PE has been invested since May 2022 with its stake subjected to a two-year escrow period. There have been media reports surrounding the selldown over the past few months.
- In this note, we’ll run the deal through our ECM framework and comment on deal dynamics.
Digital Asset Landscape Primer: Part 1
- Blockchain Basics: Blockchain is a decentralized ledger recording transactions without a central authority. Participants validate and store immutable, transparent data, ensuring trust and security throughout the network.
- Blockchain Layers: The blockchain ecosystem consists of Layer 1 (core blockchain), Layer 2 (scaling solutions), and Layer 3 (applications), all working together to enable secure, scalable interactions with blockchain technology.
- Key Concepts: Blockchain principles include immutability (data cannot be changed), permissionless participation (open to anyone), and decentralization (no single entity controls the system), ensuring security, transparency, and trust across networks.
FP Partner (7388 JP): Q3 FY11/24 flash update
- Revenue for cumulative Q3 FY11/24 reached JPY27.0bn, a 17.7% YoY increase, achieving 75.7% of the full-year forecast.
- Operating profit decreased by 3.1% YoY to JPY4.4bn, with a shift towards foreign currency-denominated products impacting margins.
- Full-year forecasts for operating profit, recurring profit, and net income were revised downward due to sales mix changes.
MOO: Metallurgical Analysis Supports By-Product Metals
- Moon River announced the initial results from analysis on the by-product metals in the Davidson deposit (tungsten, copper, REEs and gallium).
- The results showed high potential recovery for tungsten and possibly copper, giving us confidence in the upcoming metallurgical results.
- This is the first step in MOO’s goal of including these by-product metals in the mine plan, potentially improving the economics in the PEA.
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