In today’s briefing:
- HS Holdings (8699) – New Year, New Issues So Lots of Value But Buyer Beware!
- KRX’s Mandatory English Disclosure Debut: A Detailed Guide on Utilizing This Without Confusion
- NIFTY50 Index Rebalance Preview: One Change, Maybe Two, Low Probability of Three
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HS Holdings (8699) – New Year, New Issues So Lots of Value But Buyer Beware!
- Under the requirements of the Amended Mongolian Banking Law (Feb 2021), Khan Bank (KHAN MO) needed to IPO. It did, and HS Holdings (8699 JP)‘s stake fell to 49.77%.
- It was de-consolidated. They were locked up for 6mos. The look-through financials are easier now. The company has bought back stock and trades at <0.5x book.
- But the Mongolian Banking Law required one more thing. All D-SIBs had to get all shareholders below 20% by 31 December 2023. It’s not clear that happened.
KRX’s Mandatory English Disclosure Debut: A Detailed Guide on Utilizing This Without Confusion
- KRX’s lack of a standardized English translation platform may lead to non-standardized terminology and varying translation quality. KRX stresses cross-checking Korean and English disclosures due to potential errors.
- The 3-day lag between Korean and English disclosures poses timeliness challenges, requiring consistent cross-checking. Overall, the process for foreign investors using Korean market disclosure sites remains largely unchanged.
- The common procedure should still be to first check disclosures using English titles, then convert to Korean for reading. If English disclosures exist, utilize them for cross-checking.
NIFTY50 Index Rebalance Preview: One Change, Maybe Two, Low Probability of Three
- Shriram Finance (SHFL IN) is a high probability add and UPL Ltd (UPLL IN) is a high probability delete at the NIFTY Index (NIFTY INDEX) rebalance in March.
- There is a lower probability of Bharat Electronics (BHE IN) or Trent Ltd (TRENT IN) replacing Bharat Petroleum Corp (BPCL IN) at the rebalance.
- Jio Financial Services (JIOFIN IN), Avenue Supermarts Ltd (DMART IN) and Zomato (ZOMATO IN) will enter the running once added to the F&O segment of the market.