In today’s briefing:
- FTSE China 50 Index Rebalance Preview (March): Nongfu, COLI, XPeng Potential Adds
- SIAS Also Questions MCT/MNACT Merger, Countering/Supporting Quarz
- Razer Inc (1337 HK): Pre-Conditions Done
- KOSPI200 Index Rebalance (March): LG Energy IN; Dongwon F&B Out
- Noritsu Koki (7744) – PAAAAYDAAAAY!
FTSE China 50 Index Rebalance Preview (March): Nongfu, COLI, XPeng Potential Adds
- We expect Nongfu Spring (9633), China Overseas Land & Investment (688) and XPeng (9868) to replace Geely Auto (175), China Tower (788) and JD Health (6618) in the index.
- There will also be some big capping changes that will result in one-way turnover estimated at 9.2% and in a one-way trade of HK$4,910m.
- Nongfu Spring (9633 HK) is a triple inclusion – HSI at the close on 4 March, FTSE All-World at the close on 18 March and possibly the FTSE China50 too.
SIAS Also Questions MCT/MNACT Merger, Countering/Supporting Quarz
- Quarz wrote an open letter questioning the Mapletree North Asia Commercial Trust (MAGIC SP) deal with MCT for MNACT shareholders, discussed here. They wrote another letter last Thursday.
- Now, Securities Investors Association (Singapore) SIAS has come out with an open letter to MCT management questioning the deal.
- There are now activists on both sides questioning this deal. That is not necessarily a bad thing.
Razer Inc (1337 HK): Pre-Conditions Done
- Razer Inc (1337 HK) has announced the remaining pre-conditions have now been fulfilled.
- The next step is the Scheme vote, which may be held in early May, with possible completion in early June.
- Despite SAMR approval last month, this transaction continues to trade wide to terms on concerns retail investors will disrupt the headcount test.
KOSPI200 Index Rebalance (March): LG Energy IN; Dongwon F&B Out
- KRX has announced the Fast Entry inclusion of LG Energy Solution (373220 KS) in the KOSPI200 Index at the close on 10 March. Dongwon F&B (049770 KS) will be deleted.
- LG Energy Solution (373220 KS)‘s inclusion in the KRX Secondary Battery Index and the BBIG Index should be announced in the next few days. That will add to passive buying.
- Local institutions have been buyers on LG Energy Solution (373220 KS) since listing while retail and foreign investors have been sellers. There is a biggish lock up expiry coming up.
Noritsu Koki (7744) – PAAAAYDAAAAY!
- Noritsu Koki (7744 JP) just sold two-thirds of its stake in subsidiary JMDC Inc (4483 JP) to Omron Corp (6645 JP) for ¥112bn – pretty good for a ¥61bn marketcap.
- This is the payday for those who have been long NK as a proxy for JMDC and possibly short JMDC against it. Now the shape of the company is different.
- A closer look at the pro-forma financial profile is warranted. It’s a lot of money. BUT… if you look today and buy today you do NOT get the special div!
Before it’s here, it’s on Smartkarma
