In today’s briefing:
- Index Rebalance & ETF Flow Recap: MSCI STD, FTSE AW/AC, HSI, KBANK, MDKA
- JAPAN ACTIVISM: Silchester AGM Effort Fails But Bank of Iwate (8345) Is Cheap As Chips
- Last Week in Event SPACE: Chugoku Bank, Link Admin, Rakuten, Tassal, Pipedo
- Asia-Pac Weekly Risk Arb Wrap: Pipedo, Link Administration, Tassal, Giordano, Hwa Hong, SPH REIT
Index Rebalance & ETF Flow Recap: MSCI STD, FTSE AW/AC, HSI, KBANK, MDKA
- Most changes expected at the MSCI August QIR are in China. This will be the last QIR using the current methodology. The Feb 2023 QIR will use the comprehensive methodology.
- There are a lot of changes expected to the FTSE All-World and All-Cap indices at the September SAIR and we list out potential inclusions and exclusions.
- Inflows to the KraneShares CSI China Internet ETF (KWEB US) continue as sentiment around China stocks, especially tech, improves.
JAPAN ACTIVISM: Silchester AGM Effort Fails But Bank of Iwate (8345) Is Cheap As Chips
- Silchester aimed at four mid-sized regional banks and one tiny one. All four efforts failed, but two of the four banks are probably worth looking at.
- Bank Of Iwate (8345 JP) is the small one (tiny) worth looking at. It is 0.17x book, <7x earnings, 1.2x market cap in equity holdings, and better-than-average NIM.
- Over time, value will out. And while not multi-bagger compelling, the mechanical value arithmetic is interesting.
Last Week in Event SPACE: Chugoku Bank, Link Admin, Rakuten, Tassal, Pipedo
- Silchester’s effort to raise awareness in Chugoku Bank (8382 JP) failed. Still, if you had a basket of regional bank longs and shorts, Chugoku would be in the short basket.
- Dye & Durham reloads a higher Offer after Link Administration (LNK AU)‘s rejection. This probably still needs a (small) bump in terms to get up.
- Rakuten Inc (4755 JP)is trading at a significant discount to its SOTP. A part of its Fintech segment (Rakuten Bank) could be worth ~50% of total market cap.
Asia-Pac Weekly Risk Arb Wrap: Pipedo, Link Administration, Tassal, Giordano, Hwa Hong, SPH REIT
- There are 45 – mostly firm – transactions currently being discussed and analysed on Smartkarma. Inside is a timetable of upcoming key events for each deal.
- One new deal this week: Pipedo HD Inc (3919 JP)‘s MBO
- Key updates took place for: Link Administration (LNK AU), Tassal (TGR AU),Giordano (709 HK)Hwa Hong (HWAH SP), SPH REIT (SPHREIT SP), and Mapletree Commercial Trust (MCT SP).
Before it’s here, it’s on Smartkarma
