Daily Brief Industrials: LS Electric, Far Eastern New Century, JSW Cement Limited, Deutsche Post, Delhi International Airport Limited and more

• The review period for the September rebalance of the KOSPI Size Indices commenced on 1 June and will end on 31 August. Only 4 trading days to go.
• We see 7 migrations from MidCap to LargeCap, 1 new addition to LargeCap, 12 stocks moving from SmallCap to MidCap and 3 new additions to MidCap.
• The upward migrations have underperformed the downward migrations over the last month as a few stocks have sold off hard. Some despite being included in global indices.

• The TDIV index tracks the top 50 names in the Taiwan Stock Exchange with the highest dividend yields. It is a yield-weighted index with unique capping rules.
• Today is the base date for determining constituent weights/capping for the TDIV index September 2024 index rebal event.
• We expect one deletion in September 2024 and we estimate the one-way capping flow to be around US$253mn.

• JSW Cement Limited (9858514Z IN) is looking to raise about US$480m in upcoming India IPO. The deal will be run by JMFin, Axis, Citi, DAM, GS, Jefferies, Kotak, SBI Caps.
• JSW Cement (JSWC) is a cement manufacturing company in India focused on manufacturing green cementitious products comprising blended cement, ordinary portland cement, ground granulated blast furnace slag among other products.
• According to CRISIL, JSWC was the fastest growing cement manufacturing company in India, in terms of increase in installed grinding capacity and sales volume from FY14-24.

• Deutsche Post (DHL GR) and Reckitt Benckiser (RKT LN) are the top two candidates for deletion with 7-9% below the exit threshold. Forecasted supply is $200m and 2 ADV.
• Intesa Sanpaolo (ISP IM) and London Stock Exchange (LSEG LN) are the top two candidates for addition by replacement. Forecasted demand is $330m and 1-2 ADV.
• The highest ranked between Banco Bilbao Vizcaya Argentaria (BBVA SM) and Industria De Diseno Textil (ITX SM) could become the third addition, conditional on the deletion of BASF (BAS GR).

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.

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