In today’s briefing:
- SPX Met Blow off Zone
- Quiddity Final Thoughts for F100/250 June 23: Multiple High-Impact Changes Likely
- Mason Group (273 HK): Halted Pursuant To Takeover’s Code
- SET50 Index Rebalance Preview: Should Be Two Changes in June
- (Mostly) Asia M&A, May 2023: Allkem / Livent, InvoCare, Golden Eagle, Yita Coal, Shinsei Bank
- Nesco: BEC Business Is Now Beyond Pre-COVID Level | Foods Business Is Expanding Into New Horizons
- Kolte Patil: Strong Q4FY23 In Line With The Optimistic Expectations
SPX Met Blow off Zone
- SPX kissed our 4,250 overshoot zone to unwind our 4,120 long. A case of selling the fact as Euphoria fades and reality sets in.
- RTY remains our top US short and is underperforming the SPX. 1,710 near target with a June bias to crack this pivotal support.
- US 10yr yield met our rally and sell target at 3.80%. Macro take was to sell yield at 3.80% to test pocket support. USD will lag.
Quiddity Final Thoughts for F100/250 June 23: Multiple High-Impact Changes Likely
- In this insight, we take a look at Quiddity’s final predictions for index changes for the F100 and F250 indices for the June 2023 Rebalance.
- The index changes are likely to be confirmed after market close today.
- We expect one change for the F100 index and six changes for the F250 index.
Mason Group (273 HK): Halted Pursuant To Takeover’s Code
- Broker Mason Financial Holdings (273 HK) is suspended pursuant to the Hong Kong Code on Takeovers and Mergers.
- Shares are down 95% from its June 2015 peak, and 54% since the onset of Covid. The company last turned a profit in 2018.
- The largest shareholder is the chairman of Shimao Group (813 HK).
SET50 Index Rebalance Preview: Should Be Two Changes in June
- With the review period complete, we see Thai Life Insurance (TLI TB) and WHA Corp Pcl (WHA TB) being added to the SET 50 Index in June.
- Jaymart PCL (JMART TB) is a certain deletion from the index while the second deletion will be determined on the criteria used for liquidity or on market cap.
- JMT Network Services (JMT TB) was deleted from the MSCI Thailand index yesterday and could be deleted from the Stock Exchange of Thailand SET 50 Index (SET50 INDEX) next.
(Mostly) Asia M&A, May 2023: Allkem / Livent, InvoCare, Golden Eagle, Yita Coal, Shinsei Bank
- For the month of May, 8 new deals (firm and non-binding) were discussed on Smartkarma with an overall announced deal size of ~US$15bn.
- The average premium for the new deals announced (or first discussed) in May was 32%.
- This compares to the average premium for all deals in 2022 (106 deals), 2021 (165 deals), 2020 (158 deals), and 2019 (145 deals) of 41%, 33%, 31%, and 31% respectively.
Nesco: BEC Business Is Now Beyond Pre-COVID Level | Foods Business Is Expanding Into New Horizons
- As projected, Nesco’s BEC business has completely normalized and clocked INR 45cr+ revenues in Q4FY23. With this, Nesco clocked FY23 PAT of INR 290cr+, well above our INR 250cr+ estimate.
- Alongside the BEC business, Nesco’s foods business has also seen significant recovery led by footfalls from the BEC. Independent of BEC also, Nesco Foods is growing significantly on its own.
- Nesco is on track to earn PAT of INR 320cr+ for FY24, suggesting that at the current market cap of INR 4250cr, it is valued attractively at 13x P/E.
Kolte Patil: Strong Q4FY23 In Line With The Optimistic Expectations
- Kolte Patil delivered on the optimistic expectations for Q4FY23 which led to a stellar close for FY23 with all-time-high pre-sales and robust deliveries.
- Its flagship project, Life Republic, was at an inflection point as outlined in our original thesis. It contributed immensely in FY23 and is now all set for accelerated growth.
- Despite high base of FY23, Kolte Patil is all set to post a strong FY24 with 25% pre-sales growth, led by new launches and strong sustenance sales.
💡 Before it’s here, it’s on Smartkarma
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