In today’s briefing:
- KRX Sector Index Series Rebalancing: Heavy Shorting on SK Square Is Anticipated
- Shimadzu (7701): Planing to Make High-End Products in China
- J&T Global Express Pre-IPO, Part 4: Read-Through from KEX (Thailand) And Kerry Logistics H1 Results
- Full Truck Alliance Q223 Earnings: Strong Top-Line | Sharp Margin Expansion | Shares Inexpensive
KRX Sector Index Series Rebalancing: Heavy Shorting on SK Square Is Anticipated
- The most noteworthy developments include Samsung Electronics being newly added to the Semicon sector, while SK Square has been removed.
- We must be mindful of the potential concentration of shorting flow on SK Square as most names expected to experience negative flows do not fall under the KS200/KQ150 membership.
- Our strategic approach can take three directions: 1. aim at only those receiving positive flows, 2. heavy shorting SK Square, and 3. long-short the four with the most flow size.
Shimadzu (7701): Planing to Make High-End Products in China
- Starting in 2024, Shimadzu plans to produce high-end analytical instruments and medical systems in China. It must do this in order to maintain market access.
- China is the company’s largest and fastest growing market outside Japan. Concerns about IP protection notwithstanding, we regard this as a positive development.
- The shares are down 10% from its 52-week high and selling at 23x this fiscal year’s EPS guidance, which looks conservative. Buy for the long term.
J&T Global Express Pre-IPO, Part 4: Read-Through from KEX (Thailand) And Kerry Logistics H1 Results
- H1 results from KEX Thailand and Kerry Logistics can help us understand J&T Global Express
- Thailand likely to be a medium-term drag on J&T’s earnings, in our view
- But if KLN’s H1 results are representative, rest of SE Asia is probably OK
Full Truck Alliance Q223 Earnings: Strong Top-Line | Sharp Margin Expansion | Shares Inexpensive
- In Q2, Full Truck Alliance posted strong revenue growth and dramatic margin expansion
- Revenue mix continues to improve, which is driving down unit costs and lifting margins
- At just 19x forecast 2023 adjusted net earnings, the company’s shares are not expensive
💡 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
