In today’s briefing:
- SPH Shareholders – SPH REIT Options Decay in Value
- TSMC – Great 1Q But Scope For Further Good News Looks Limited
- Singapore: Succession Uncertainty Lifted, What Is Next?
- Index Rebalance & ETF Flow Recap: MSCI, TOPIX, KT/SKT, GoTo, Yangzijiang, Emperador, SK Shieldus
- ECM Weekly (17th Apr 2022)- Sk Shieldus, One Store, LIC, GoTo, Zhihu, Park24, PHC Holding, Visional
SPH Shareholders – SPH REIT Options Decay in Value
- Shares in Singapore Press Holdings (SPH SP) stopped trading a week ago. The election period to choose cash or cash and SPH REIT shares started yesterday.
- The OBVIOUS choice is to take the cash. But you have ten days to see SPH REIT gain 2% to change your mind.
- I note Keppel wanted SPH back when SPHREIT was worth a fair bit less, but at that time they didn’t want SPHREIT when an MGO would have been cheaper.
TSMC – Great 1Q But Scope For Further Good News Looks Limited
- TSMC’s 1Q results were extremely strong with revenue 4.15% above consensus and OP 9.04% above consensus.
- With the strong pricing power and favourable forex factored in consensus OP estimates for the year have moved up to TWD954bn in line with our start of year estimate.
- However, that now leaves limited further upside in our view and we expect earnings to decline next year rather than rise.
Singapore: Succession Uncertainty Lifted, What Is Next?
- Lawrence Wong is slated to be the next PM. One cannot help but get a sense that the succession process was not as smooth as it might have been.
- In the upcoming cabinet reshuffle, Wong is likely to be elevated to the deputy premiership with one of the contenders – Chan Chun Sing – as second deputy PM.
- Continuity in substantive policies is likely, the hallmark of Singapore politics – that the election of a new PM does not lead to any abrupt change in major policies.
Index Rebalance & ETF Flow Recap: MSCI, TOPIX, KT/SKT, GoTo, Yangzijiang, Emperador, SK Shieldus
- The review period for the MSCI May SAIR starts on Monday, 18 April and will run for 10 trading days, though MSCI usually selects one of the first five days.
- GoTo (GOTO IJ) listed during the last week and could be a Fast Entry to the IDX indices. The Yangzijiang Shipbuilding (YZJSGD SP) spinoff has index implications.
- Relatively large inflows into China focused ETFs during the week, while there were outflows from Korea focused ETFs.
ECM Weekly (17th Apr 2022)- Sk Shieldus, One Store, LIC, GoTo, Zhihu, Park24, PHC Holding, Visional
- Aequitas Research puts out a weekly update on the deals that were covered by the team recently along with updates for upcoming IPOs.
- On the IPOs front, Zhihu and the SK twins were the main active deals, with LIC being in the pipeline for a potential launch in the coming week.
- Placement flows remained slow over the holiday shortened week. With Japan continuing to favour accelerated book build.
Before it’s here, it’s on Smartkarma
