Daily BriefsIndustrials

Daily Brief Industrials: Hong Kong Hang Seng Index, Jiangnan, LG Energy Solution, Woodside Energy Group Ltd and more

In today’s briefing:

  • EQD | Volatility Update: Weekly Review of Vol Changes and Best Trades- Grinding to a Halt
  • Jiangnan Group (1366 HK): Scheme Vote on 15 May
  • Nationalization of Lithium Industry in Chile – Impact on Korean Rechargeable Batteries Value Chain
  • Woodside Energy Group Ltd: Upside From BHP Assets & Pluto KGP Interconnector

EQD | Volatility Update: Weekly Review of Vol Changes and Best Trades- Grinding to a Halt

By Simon Harris

  • Weekly summary of vol changes and moves across Global Markets
  • Analysing ATM volatility and skew changes over the last 5 days
  • We suggest a few trades to take advantage of the implied vol surfaces

Jiangnan Group (1366 HK): Scheme Vote on 15 May

By Arun George

  • The Jiangnan (1366 HK) scheme document is out with the court meeting scheduled for 15 May. The IFA considers the HK$0.40 per share offer to be fair and reasonable. 
  • Key conditions include approval by at least 75% independent shareholders (<10% rejection). The shareholder with a blocking stake has provided an irrevocable on 22 March.
  • This is a done deal. At the last close and for the 31 May payment, the gross and annualised spread is 3.9% and 44.0%, respectively.

Nationalization of Lithium Industry in Chile – Impact on Korean Rechargeable Batteries Value Chain

By Douglas Kim

  • On 20 April, Chile’s government announced that it will be nationalizing the country’s lithium industry. Chile is the second largest producer of lithium in the world. 
  • The nationalization of the lithium industry in Chile will likely have a long-term negative impact on the rechargeable batteries related companies in Korea.
  • This is mainly due to greater challenges of getting access to lithium at more affordable prices. 

Woodside Energy Group Ltd: Upside From BHP Assets & Pluto KGP Interconnector

By Baptista Research

  • Woodside Energy Group delivered a decent financial performance in 2022, driven by higher prices and adding former BHP assets to the portfolio and the Pluto KGP interconnector.
  • Besides that, Woodside Energy completed subsea tieback and enhancement initiatives across its Gulf of Mexico and West Australian LNG assets, keeping the plants occupied.
  • We give Woodside Energy Group Ltd. a ‘Buy’ rating with a revised target price.

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