In today’s briefing:
- JD.com (9618 HK): CCASS Share Increase Driver & Potential Prosus Selldown
- KT Corp & SK Telecom: Potential Changes Driven by Foreign Buying
- JD.com’s Musical Shares – Less Than You Think
- Toyo Construction (1890) – Mystery Holders Now 17% (Or More)
- Suzuki’s NAV Discount And Implied Stub Plumb New Lows. Again
JD.com (9618 HK): CCASS Share Increase Driver & Potential Prosus Selldown
- There has been an increase of 700m shares held in HK CCASS for JD.com Inc. (9618 HK) on 11 April.
- The largest part of 421.5m shares is likely the conversion of Class B to Class A shares following Richard Liu stepping down as CEO of the company.
- The rest is unknown at this point but could be Prosus (PRX NA) moving their shares to HK to sell-down and use the cash to buy back their own stock.
KT Corp & SK Telecom: Potential Changes Driven by Foreign Buying
- Foreign investors have continued to buy Korea telecom companies. The buying has pushed the foreign room lower. This will have implications for the stocks in MSCI and FTSE indices.
- KT Corp (030200 KS)‘s foreign room has dropped below 15% and this could lead to the stock not being added to the MSCI Korea Index at the May SAIR.
- SK Telecom (017670 KS)‘s foreign room has dropped significantly and further buying over the next week could see the stock deleted from the MSCI Korea Index at the May SAIR.
JD.com’s Musical Shares – Less Than You Think
- Today, CCASS data showed that 700,000,047 Class A Shares of JD.com Inc. (9618 HK) popped into existence in CCASS (from outside of CCASS the day before). Poof!
- They showed up in Deutsche Bank’s CCASS Participant account. Just like the 600,000,000 Class A Shares which popped in on 15 December 2021.
- There’s a thing here, and there are things going on in the background, but the things in the foreground are not as menacing as they appear. I explore and explain.
Toyo Construction (1890) – Mystery Holders Now 17% (Or More)
- WK 1-3 Limited are now (as of a week ago) 17.34% of Toyo Construction’s share register. They bought 40+% of volume in the relevant period, as I suggested they might.
- On a realtime basis, they could be 20+%, but because no single entity is there they would not become top shareholder as a triumvirate.
- I offer consolidated thoughts and like the idea of buying the dip.
Suzuki’s NAV Discount And Implied Stub Plumb New Lows. Again
- Suzuki Motor (7269 JP)‘s implied stub and simple ratio (Suzuki/ Maruti Suzuki India (MSIL IN)) are currently at all-time lows.
- This bifurcation has become endemic in the relative value space, especially in Japan.
- Maruti is trading rich amid its ongoing support for hybrid vehicles. That scenario won’t play out well.
Before it’s here, it’s on Smartkarma
