In today’s briefing:
- Index Rebalance & ETF Flow Recap: MSCI STD, FTSE AW/AC, HSI, KBANK, MDKA
- ECM Weekly (10th Jul 2022) -Tianqi, Thai Life, TPG, SK IE, Weilong, Emperador, Soosan, SoCar, Deewin
- Merger Arb Mondays (11 Jul) – Link Admin, Ramsay Health, Giordano, VNET, DTAC/True, Hwa Hong
- Yaskawa Electric (6506) | Don’t Be Fooled by the “strong” Q1 Print
- KOSPI200 Dec Index Rebalance Preview: Stocks Nearing the Inclusion Zone
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.
ECM Weekly (10th Jul 2022) -Tianqi, Thai Life, TPG, SK IE, Weilong, Emperador, Soosan, SoCar, Deewin
- Aequitas Research puts out a weekly update on the deals that were covered by the team recently along with updates for upcoming IPOs.
- Tianqi managed to pull off the largest HK IPO so far this year, a good listing could see a pickup in other large deals.
- For placements, SK IE couldn’t hold on to its deal price, while Ming Yang kicked off what might be a busy GDR season.
Merger Arb Mondays (11 Jul) – Link Admin, Ramsay Health, Giordano, VNET, DTAC/True, Hwa Hong
- We summarise the latest spreads and newsflow of merger arb situations covered by us across Hong Kong, Australia, New Zealand, Singapore, Indonesia, Malaysia, Thailand and Chinese ADRs.
- The highest spreads are 21Vianet Group (VNET US), Alliance Aviation Services (AQZ AU), Ramsay Health Care (RHC AU), Link Administration (LNK AU), Australian Unity Office Fund (AOF AU).
- The lowest gross spreads are Hwa Hong Corp (HWAH SP), Excelpoint Technology (EXLP SP), Uniti Group Ltd (UWL AU), Giordano International (709 HK), MyDeal.com.au Ltd (MYD AU).
Yaskawa Electric (6506) | Don’t Be Fooled by the “strong” Q1 Print
- Q1 OP +8%, but core OP (pre-adjustments) fell 18% YoY on significant decline in profitability
- Bulls may point to the surprising strength in orders, but the boost from China re-opening and weaker yen are not reflective of the underlying outlook
- We think Yaskawa will be hard-pressed to make full year guidance of ¥72b. Stay bearish for now
KOSPI200 Dec Index Rebalance Preview: Stocks Nearing the Inclusion Zone
- A third of the way through the review period, we see one potential change. There are four stocks that are close to inclusion zone and could lead to more changes.
- Currently, Miwon Specialty Chemical Co (268280 KS) is an add while Hyundai Home Shopping Network (057050 KS) is a delete.
- Samyang Foods (003230 KS), Lotte Confectionery (280360 KS), Unid Co Ltd (014830 KS) and Miwon Commercial (002840 KS) are close adds currently.
Before it’s here, it’s on Smartkarma
