In today’s briefing:
- Korea – Positioning in Stocks That Could Have Global Passive Flows
- TOPIX Inclusions: Who Is Ready (Oct 2023)
- HSCEI Index Rebalance Preview: One Change; Capping Impact Increases
- Tianju Dihe Technology IPO Preview: Data Drives The Future
- Money Forward (3994) | Show Me the Money
- ChiNext/ChiNext50 Index Rebalance Preview: Sector Rotation Continues
- Micron Technology Inc.: Unpacking the Strategies Behind Their Recent Financial Performance! – Major Drivers
- Marizyme, Inc. – DuraGraft Approved for US Markets
- Paychex Inc.: Decoding Their Investments In AI & What It Means for the Future! – Major Drivers
- FactSet Research Systems Inc.: Are The Latest AI Investments Expected To Catalyze Revenue Growth? – Major Drivers
Korea – Positioning in Stocks That Could Have Global Passive Flows
- Posco DX (022100), Kum Yang (001570), SK Telecom (017670), Lotte Energy Materials (020150), Kakao Games (293490), Pan Ocean (028670), BGF retail (282330), Netmarble (251270) have been on investors/traders radars recently.
- There could be liquidity events in some of the stocks next month as passive index trackers look to buy/sell the stocks.
- Foreign investors have sold Lotte Energy Materials (020150 KS), Kakao Games (293490 KS), Pan Ocean (028670 KS) and Netmarble (251270 KS) while buying BGF retail (282330 KS).
TOPIX Inclusions: Who Is Ready (Oct 2023)
- Quiddity’s “Who is Ready” series of insights aims to objectively identify names listed on the Tokyo Stock Exchange that are potential additions to the TOPIX Index in future.
- Since my last insight, CellSource (4880 JP) and Kasumigaseki Capital (3498 JP) have confirmed they will move to TSE Prime which means they will be included in TOPIX at end-November.
- FP Partner (7388 JP) and I-NE (4933 JP) will get included in TOPIX at the end of October.
HSCEI Index Rebalance Preview: One Change; Capping Impact Increases
- Zhongsheng Group (881 HK) is in deletion zone and could be deleted. China Unicom Hong Kong (762 HK) could be added to the index as the highest ranked non-index constituent.
- Estimated one-way turnover at the rebalance is 2.14% resulting in a one-way trade of HK$1.38bn. Meituan (3690 HK), Alibaba Group (9988 HK) and Tencent (700 HK) will be capped higher.
- China Unicom Hong Kong (762 HK) is supported on its 50/100 day moving averages and could move higher. Zhongsheng Group (881 HK) has been trading below its moving averages.
Tianju Dihe Technology IPO Preview: Data Drives The Future
- Tianju Dihe Technology, more commonly known as Juhe Data, filed to go public in Hong Kong. The company provides standard API services through its APIHub marketplace in China.
- Tianju Dihe Technology plans to trade on the HKSE, and CITIC Securities is leading the IPO. The company was backed by JD Technology, a fintech unit of JD.com.
- With a market leadership position and a mission to empower the digital economy with data technologies, I have no doubt that Tianju Dihe Technology will have a successful IPO.
Money Forward (3994) | Show Me the Money
- Money Forward’s share price dipped 20% post-Q2 results, but strong operational performance and upward sales revisions make it appealing.
- We expect 42% YoY sales growth in Q3 and believe long-term growth prospects remain exceptional against the market size.
- Management to deliver profitability next FY, meeting investor demands to “show me the money” – we remain bullish
ChiNext/ChiNext50 Index Rebalance Preview: Sector Rotation Continues
- Nearing the end of the review period, we forecast 8 changes for the ChiNext Index (SZ399006 INDEX) and 5 changes for the ChiNext 50 Index in December.
- Given stock selection uses liquidity as a major input, the impact of passive trading will be much larger on the deletions as compared to the additions.
- The potential adds have outperformed the potential deletes, but relative performance has been drifting lower over the last few months. There are stocks that will have flows from other indices.
Micron Technology Inc.: Unpacking the Strategies Behind Their Recent Financial Performance! – Major Drivers
- Micron Technology, Inc. delivered a positive result and managed an all-around beat last quarter.
- Their management has provided insights into the ongoing underutilization charges and inventory write-downs that have impacted the company’s financials.
- This rise in underutilization has led to corresponding charges in the fourth quarter, which are expected to continue into fiscal year 2024.
Marizyme, Inc. – DuraGraft Approved for US Markets
Key milestone in FDA approval. On October 6, Marizyme, Inc. (MRZM) announced a key milestone in its growth strategy, with FDA approval of its flagship DuraGraft (DG) technology for the US market.
Improved outcomes when used in cardiac care. DG has been proven to result in significantly improved outcomes and lower costs for cardiac surgery through multiple clinical trials as well as utilization in selected markets in Europe and Asia where adoption has recently accelerated.
Reflecting that, YTD DG-driven revenue is already more than double the level of 2022.
Paychex Inc.: Decoding Their Investments In AI & What It Means for the Future! – Major Drivers
- Paychex, Inc. managed to exceed analyst expectations in terms of revenue as well as earnings.
- The company has commenced fiscal year 2024 with robust results, including a 7% growth in total revenue and an 11% increase in adjusted diluted earnings per share.
- Strong new sales revenue growth was driven by continued demand for HR technology and advisory solutions.
FactSet Research Systems Inc.: Are The Latest AI Investments Expected To Catalyze Revenue Growth? – Major Drivers
- FactSet Research Systems Inc. delivered a mixed result in the quarter, with revenues above market expectations but failed to surpass the analyst consensus regarding earnings.
- The success in 2023 stemmed from the growth of enterprise offerings, leading to significant strategic wins across various workflows.
- Besides that, their content refinery, extensive data offerings, and innovations in user experience, including conversational interfaces and generative AI, position FactSet Research Systems for continued growth.
💡 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
