In today’s briefing:
- KOSPI200 Index Rebalance: Mostly Expected Though Some Discretion Used
- Morning Views Asia: Adani Ports & Special Economic Zone, Agung Podomoro Land
- LX International: Positive Impact from Not Participating in Main Bidding for HMM
- BOC Aviation (2588 HK, BUY, TP:HKD70): High Quality Safe Bet
- Cirrus Aircraft Pre-IPO – PHIP Updates – Increased Customer Demand Continues to Drive Growth
- Amaero International Ltd. – Capital Raised for Tennessee Fit-Out and Capital Equipment
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KOSPI200 Index Rebalance: Mostly Expected Though Some Discretion Used
- There will be 7 additions and 7 deletions for the Korea Stock Exchange KOSPI 200 (KOSPI2 INDEX EQUITY) at the December rebalance that will be implemented on 14 December.
- The rebalance is on expected lines, though the index committee decided not to add Youngpoong Paper (006740 KS) to the index. Not really a big surprise given the price move.
- HDC Hyundai Development Co-Engineering & Construction (294870 KS) is a surprise delete and there is not much short interest that could cover against the passive selling.
Morning Views Asia: Adani Ports & Special Economic Zone, Agung Podomoro Land
Lucror Analytics Morning Views comprise our fundamental credit analysis, opinions and trade recommendations on high yield issuers in the region, based on key company-specific developments in the past 24 hours. Our Morning Views include a section with a brief market commentary, key market indicators and a macroeconomic and corporate event calendar.
LX International: Positive Impact from Not Participating in Main Bidding for HMM
- LX International announced today that it will not participate in the main bidding to acquire HMM Co.
- This is likely to have a positive impact on LX International’s share price as many investors are relieved that company will not raise excessive amounts of capital to acquire HMM.
- In addition, by not acquiring HMM, LX International has enough financial resources to continue to pay high dividends.
BOC Aviation (2588 HK, BUY, TP:HKD70): High Quality Safe Bet
- BOC Aviation (2588 HK) (BOCA) is the highest-quality aircraft leasing company, with a young asset portfolio, quality clientele, cheapest credit facility, and superb risk management.
- Outlook is attractive, strong demand and scarce supply ensures high lease rates and profits. Asset disposals have all recorded a healthy surplus, a potential earnings surprise.
- Our TP of HKD70/share implies 0.94x FY24 (22% UPSIDE) potential
Cirrus Aircraft Pre-IPO – PHIP Updates – Increased Customer Demand Continues to Drive Growth
- Cirrus Aircraft (0153126D US) is looking to raise up to US$200m in its upcoming HK IPO.
- Cirrus Aircraft designs, develops, manufactures, and sells premium aircrafts. Its two aircraft product lines, the SR2X Series and the Vision Jet, are currently certified and validated in over 60 countries.
- We had covered the company’s performance in our earlier notes. In this note, we talk about its PHIP updates.
Amaero International Ltd. – Capital Raised for Tennessee Fit-Out and Capital Equipment
- Amaero International Ltd (ASX:3DA) is a global specialist in advanced materials manufacturing for the defence, aerospace, and other industrial sectors.
- The company is developing a 1,000+-tonne-a-year critical metals alloy powder manufacturing facility in Tennessee, USA with its initial focus on producing refractory alloy powder, C103, a critical metal powder used in hypersonics weaponry.
- The company has raised A$10m from new and existing institutional and sophisticated shareholders at $0.16/share, representing a 15.8% discount to the last traded price prior to the raise.