In today’s briefing:
- Target Cosmo AM&T as a Prime Candidate for KOSPI 200 Special Entry in December
- Taiwan AI Supply Chain Names: Four AI Plays to Short as Hedge Vs. An Nvidia Long
- ECM Weekly (1st Oct 2023) – Cainiao, J&T, Kokusai, Seoul Guarantee, Ecopro, Leapmotor, Bajaj Finance
- Taiwan Dual Listings Monitor: TSMC & UMC Trading Ranges Working; Short ASE Spread at Latest Level
- Delta Taiwan Vs. Thailand Monitor: Delta Thai Crashes After Parent Share Sale; Still Overvalued
- Symbio (SYM AU): Aussie Broadband’s Superior Proposal
- Kaspi.kz: The Super-App of Kazakhstan
- Emerald Holding: Does Onex Exploring A Sale Imply That The Company Has A Limited Upside?
- UScellular’s Exploration of Sale: A Strategic Move Or A Desperate Measure?
- PPF Telecom – ESG Report – Lucror Analytics
Target Cosmo AM&T as a Prime Candidate for KOSPI 200 Special Entry in December
- The introduction of float market cap is anticipated to apply not only to sector-based screening for the KOSPI 200 but also to special entry considerations.
- Cosmo AM&T emerges as a direct beneficiary of this change. It currently ranks 52nd within the KOSPI, maintaining a tight gap with the borderline (50th).
- Once it enters the KOSPI 200, it will also become a part of KOSPI 200 IT. As a result, the estimated flow size is approximately ₩230B, about 6x ADTV.
Taiwan AI Supply Chain Names: Four AI Plays to Short as Hedge Vs. An Nvidia Long
- Taiwan’s AI supply chain names have fallen over the last month, yet many have still outperformed Nvidia by a wide margin over the last six months.
- We don’t want to sell our Nvidia despite market risks — We believe a basket of Taiwan AI stocks can act as a Short to hedge a Long Nvidia position.
- Shorting a basket of Wistron, Quanta, Gold Circuit, and Asia Vital Components can act as a hedge vs. a Long Nvidia position. Below we explain why.
ECM Weekly (1st Oct 2023) – Cainiao, J&T, Kokusai, Seoul Guarantee, Ecopro, Leapmotor, Bajaj Finance
- Aequitas Reserach puts out a weekly update on the deals that were covered by the team recently along with updates for upcoming IPOs.
- In the IPO space, Cainiao Smart Logistics finally set the ball rollling for Alibaba (ADR) (BABA US)‘s restrucuting, by filing for an HK listing
- In the placement space, Star Entertainment Group (SGR AU) was back in the market again, while Zhejiang Leapmotor Technologie (9863 HK) and DPC Dash (1405 HK) came of lock-ups.
Taiwan Dual Listings Monitor: TSMC & UMC Trading Ranges Working; Short ASE Spread at Latest Level
- Our range for TSMC’s spread trading appears to be working. Premium has rebounded lately and we would Short if breaks above 9.8%.
- Our UMC trading range also appears to be working. We should Short if the premium increases slightly further to break 1%.
- One can consider Shorting ASE’s ADR premium at the current 10.8% premium level. After latest premium spike, risk appears skewed to the downside in the coming weeks.
Delta Taiwan Vs. Thailand Monitor: Delta Thai Crashes After Parent Share Sale; Still Overvalued
- Delta Thailand shares crashed over 20% in one day after its Taiwan parent sold a stake in the company.
- Given the small size of the stake sale, we believe the share sale by the parent represents an opportunistic sale to crystallize value from Delta Thailand’s high share price.
- We spoke with Delta Taiwan to update our model. Delta Taiwan continues to offer much better value than Delta Thailand, earning more than double Thailand’s net profit with similar growth.
Symbio (SYM AU): Aussie Broadband’s Superior Proposal
- Symbio Holdings (SYM AU)‘s indicative proposal from Aussie Broadband Pty Ltd (ABB AU) is A$2.36 + 0.192 ABB shares per SYM share, 10.6% premium to Superloop Ltd (SLC AU)’s offer.
- The Board has declared ABB’s offer as the superior proposal and granted exclusive due diligence until 20 October. The Board intends to recommend a binding ABB proposal.
- Superloop’s offer was the final offer in the absence of a superior proposal. If it chooses to enter a bidding war, Superloop will need a higher cash component.
Kaspi.kz: The Super-App of Kazakhstan
- Kaspi.kz is the local super-app in Kazakhstan, with payments, marketplace, and Fintech as its three main business segments.
- The company has achieved strong topline and bottom line growth since listing with a RoAE >70% over the years and its share price having gone up ~3x.
- Key concerns arise from its political ties and future growth potential, given the country’s relatively low population/user size.
Emerald Holding: Does Onex Exploring A Sale Imply That The Company Has A Limited Upside?
- This is a special one-time report on Emerald Holding that is creating ripples in the news circuit, courtesy of the exploration endeavors by its predominant shareholder, Onex.
- Emerald Holding, though operating with a low profile, has been wielding a silent yet significant influence over the events sphere.
- In this report, we have carried out a fundamental analysis of the historical financial statements of the company.
UScellular’s Exploration of Sale: A Strategic Move Or A Desperate Measure?
- This is a special one-time research report on United States Cellular Corporation (UScellular).
- In light of recent announcements, the company emerges as a subject of intricate valuation and examination for potential investors and acquisition entities.
- With the strategic review underway without a definitive completion timetable, it’s crucial for investors to understand the merits and demerits of UScellular as an acquisition target.
PPF Telecom – ESG Report – Lucror Analytics
- Lucror Analytics’ ESG Scores are based on a 3-tiered scale and are adjusted for Controversies (if applicable).
- We view PPF Telecom’s ESG as “Adequate”, in line with the Governance score, while the Environmental and Social scores are “Strong”. Controversies are “Immaterial” and Disclosure is “Adequate”.
- PPF Telecom Group (PPF) is part of the PPF Group, a holding company with investments in financial services, telecommunications, real estate and other industries.
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