In today’s briefing:
- Global Index Korea: Hyundai Rotem Is the Only One Screened. Watch for a Possible LS Electric Repeat
- COSCO Shipping Energy (1138 HK): Better Safety Margin Now
- A Potential October Strike at US East & Gulf Coast Container Ports Is Unlikely to Be Impactful
Global Index Korea: Hyundai Rotem Is the Only One Screened. Watch for a Possible LS Electric Repeat
- The cutoff market cap is around ₩3.6T, and Hyundai Rotem is the only stock that screens into the inclusion zone.
- Hyundai Rotem might see a repeat of LS Electric’s pattern: heavy chasing towards screening and a big dive at the decision. Watch for aggressive momentum trades starting late September.
- The stock with the lowest full market cap, Kum Yang, is at risk, but Celltrion Pharm is close behind. KT Corp’s exclusion might save Kum Yang or Celltrion Pharm.
COSCO Shipping Energy (1138 HK): Better Safety Margin Now
- The P/B multiple of Cosco Shipping Energy Transportation (H) (1138 HK) has pulled back to 0.8x now, from 1.3x three months ago. The risk-reward payoff has improved.
- Historically, there is no long-term correlation between oil prices and share prices. Hence, we should not be overfocused on the recent pullback in oil prices.
- Although the market consensus is high, FY24 should still see growth. The 3Q24 VLCC spot rate is 27.4% higher YoY, potentially boosting quarterly results and sustaining a high FY24 yield.
A Potential October Strike at US East & Gulf Coast Container Ports Is Unlikely to Be Impactful
- Workers at US East/Gulf Coast ports could strike without new contract by Oct 1st
- But data suggest importers have been boosting inventory over past few months
- Although US West Coast port workers support ILA, they’re unlikely to strike
💡 Before it’s here, it’s on Smartkarma
Sign Up for Free
The Smartkarma Preview Pass is your entry to the Independent Investment Research Network
- ✓ Unlimited Research Summaries
- ✓ Personalised Alerts
- ✓ Custom Watchlists
- ✓ Company Data and News
- ✓ Events & Webinars
