In today’s briefing:
- FTSE TWSE Taiwan Dividend+ Index Rebalance Preview: HUGE Turnover as Review Period Ends
- PTB Group Enters Scheme With PAG
- Orient Overseas Intl (316 HK): Don’t Overlook the Downhill Risks
FTSE TWSE Taiwan Dividend+ Index Rebalance Preview: HUGE Turnover as Review Period Ends
- We do not forecast any deletions from the FTSE TWSE Taiwan Dividend+ Index in September. There will be a lot of flow from dividend yield changes and capping changes.
- Based on the closing prices from 22 August, we estimate one-way turnover of 13.6% at the September rebalance resulting in a one-way trade of TWD 19,664m (US$653m).
- Passive inflows will be focused (for the most part) on stocks that have underperformed and outflows will mainly be on recent outperformers.
PTB Group Enters Scheme With PAG
- Late last week aviation engine repair play PTB Group Ltd (PTB AU) entered into a Scheme Implementation Deed (SID) with PAG Holding Corp.
- PAG is offering $1.595/share, a 40.5% premium to last close.
- Apart from PTB shareholder approval, PAG’s Offer requires FIRB. This looks done. PTB’s board unanimously recommends the Scheme.
Orient Overseas Intl (316 HK): Don’t Overlook the Downhill Risks
- 1H22 is a fantastic period for Orient Overseas International (316 HK) with record earnings. However, with retreat in freight rates YTD, it is likely to mark the cycle peak.
- OOIL has not seen the usual peak season for transpacific market yet. Also, supply pressure is mounting as record vessel delivery is scheduled for the next two years.
- The elevated share price has not reflected that profitability will decline in FY23 and FY24. We see significant downside risk as the market becomes more realistic on earnings.
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