🧵Smartkarma #bottomup #threadoftheday

BUY: First Pacific Company (142 HK): Right Stock Trapped in the Wrong Market
— David Mudd

--
$142.HK

1/ First Pacific Co (142 HK) is a Southeast Asian conglomerate that has been handicapped by its listing in the Hong Kong market over the last several years.

2/

🔴CHINA PROPERTY DEVELOPERS IN DISTRESS -

* Country Garden
* Longfor Group
* Sino-Ocean
* R&F Properties
* Yango
* Dalian Wanda
* Yuzhou Group
* China Cinda Asset Management / Tianfang COUNTRY GARDEN $2007.HK

The company anticipates reporting a net loss ranging from 45 to 55 billion RMB for H1'23.

This is a stark contrast to the net profit of approximately 1.9 billion RMB recorded in H1'22.

🟢 Malaysian Banks Screener 🔴

@galliano_victor and his team screen 6 large and mid-cap Malaysian banks’ core profitability, and their credit quality metrics, to better identify banks with good earnings growth prospects, and the potential to deliver sustainably improved returns.

https://twitter.com/galliano_victor/status/1667156293512200195

In terms of balance sheet, 4 out of 6 banks have sound capital adequacy ratios (which we define as December 2022 CET1 Ratio of 14%+).

🇰🇷 🟢 Lutronic Corp $085370.KS

Hahn & Company, a major PE firm in Korea, disclosed it plans to delist Lutronic Corp through a public tender offer.

The tendering period ends on 14 July, and the payment date is 18 July. twitter.com/i/web/status/1… This deal is relatively straightforward with minimal preconditions, and there is little possibility of a proxy battle, so the spread will likely remain tight.

🧵Smartkarma #macro #threadoftheday

How the Treasury Refresh May Not Be Catastrophic
— Cam Hui @HumbleStudent

1/ The U.S. Treasury market is expected to see a flood of new issuance which would draw liquidity from the financial system and create headwinds for the price of risk assets.

2/

🧵Smartkarma #bottomup #threadoftheday

Taiwan Dual-Listings: TSMC Spread Opens Again for Opportunity; Others Have Swung Substantially
— Vincent Fernando, CFA

--
$TSM.US

1/ TSMC is back to an 11.8% ADR premium after dropping to 8%... potentially another good Long/Short point.

2/

LATAM BANK BREAKDOWN

The US banking crisis and the Credit Suisse rescue have put bank stocks in the spotlight, for all the wrong reasons.

LatAm banks are not looking bad at all. 1/

https://twitter.com/galliano_victor/status/1639159408612769793

The smaller Mexican BanBajio and BanRegio have negligible AFS MtM hits and very healthy core capital.

At the other extreme, BCI of Chile is weak on CET1 and has a bigger MtM hit to core capital, along with Credicorp. 2/

Smartkarma's weekly review

(Don't forget to share)

1. Global liquidity and world wealth (via @crossbordercap) 2. Fed's balance sheet (via @biancoresearch)

NICE $030190.KS TRANSFER LISTING TO KOSPI --

NICE I&S will likely complete the transfer schedule in early May, meaning that an ad-hoc change may occur before the regular rebalancing of the KOSDAQ 150 in June. 1/

https://twitter.com/Sanghyun063/status/1640199585279901696

If this really gets completed before the June regular rebalancing AND before SK Oceanplant's transfer listing schedule, the top reserved issue in NICE's INDUSTRIALS sector will be included. 2/

ZYDUS LIFESCIENCES Q3 FY23 RESULTS --

Zydus $ZYDUSLIF.IN (the 5th largest pharmaceutical company in India) reported total revenue of INR43.6B, up by 20% YoY and 6% QoQ, in Q3FY23.

Key markets such as India and the U.S. continued to deliver robust performance. 1/

https://twitter.com/Generic_Tina/status/1640319903461937152

INDIA

The company’s India business comprising formulations and consumer wellness reported 13% YoY growth to INR16.4 billion, while the U.S. formulation business grew 29% YoY and 13% QoQ to INR19.3 billion. 2/

EM fund exposure in the Tobacco industry group is on the rise.

After a multi-year drop in ownership, EM allocations bottomed out with just 13% of funds invested in April of last year. 1/

https://twitter.com/CopleyFR/status/1640156765416488962

Since then, a growing number of active EM strategies are buying back in, with average weights moving to 0.31% and 19.26% of funds invested. 2/

🧵Smartkarma #macro #threadoftheday

Bank Watch – Deutsche, Deustche Alles Ist Vorbei
— Andreas Steno @AndreasSteno

1/ Why is Deutsche Bank suddenly selling off violently again without a trigger?

2/

SGX has launched futures (SGX Nikkei 225 Climate PAB Futures) on the Nikkei 225 Climate Change 1.5°C Target Index.

The newly launched futures are a green version of the Nikkei 225, with similar risk/return characteristics due to its high correlation and low tracking error. 1/

https://twitter.com/tradingarb/status/1638712684001755136

The SGX Nikkei 225 Climate PAB Futures will be available for round the clock trading every day (except for New Years day).

Investors in other SGX derivatives products will get cross-margining benefits.

Contract specs 👇 2/

🧵Smartkarma #thread

Bank Watch – Deutsche, Deustche Alles Ist Vorbei
— Andreas Steno @AndreasSteno

1/ Why is Deutsche Bank suddenly selling off violently again without a trigger?

2/

🧵Smartkarma #thread

Money Watch: European Bank Loan Books Look Worse than US Peers
— Andreas Steno @AndreasSteno

1/ European liquidity risks are smaller than US liquidity risks due to tighter legislation

2/

🚨NET-NET ALERT: Motonic Corp $009680.KS net cash totals 432 billion won, or 148% of the company's market cap.

Yes, you read that correctly, investors are getting 1.4x IN CASH.

~~ Check out the full details in Douglas Kim's latest Insight (🔐): LINK IN BIO

Everything you need to know about Farm Fresh Berhad $FF.MY upcoming ~US$240m Malaysia IPO ABOUT

Farm Fresh Berhad is a dairy group that covers the entire value chain, from farming and manufacturing to distributing its various dairy and plant-based products.

They operate an aggregate of ~5,400 acres of land spread across 5 dairy farms in Malaysia and 1 in Australia.

Neon is the world's Kryptonite it would seem.

The noble gas is widely used in chip lithography, a critical part of the semicon supply chain.

Ukraine supplies about 70% of the world's neon gas, 40% of krypton and 30% xenon (ICSmart)

Unsurprisingly, prices have gone spaz👇🏽 According to Baiinfo, the price of neon gas (with a content of 99.99%) in China has risen rapidly from RMB 300 yuan/cubic meter in early October 2021 to the current 1700-1800 yuan/cubic meter.

Here are some great liquidity short candidates by Eric Fernandez, CFA of @TwoRiversAnalyt

* HashiCorp Inc $HCP
* Fluence Energy $FLNC
* Rivian Auto $RIVN
* Domo Inc $DOMO HASHICORP, INC. $HCP

* December IPO is down 21%
* Will need to raise capital soon
* SG&A totals 111% of quarterly sales
* Growth has slowed from 100% to 49%

Voronoi $VOR.KS is getting ready to complete its IPO in Korea in March. The IPO offering base deal size is from ~US$84 million to ~US$109 million. ABOUT

Founded in 2015, Voronoi is developing treatments for tumors, degenerative brain diseases, and autoimmune diseases, including a genotype-directed therapy effective for tumors caused by mutations in kinases.

Nippon Steel Corporation $5401.JP announced it will acquire stakes in GJ Steel Pcl $GJS.TB and G Steel Pcl $GSTEL.TB

Nippon Steel has signed share and purchase agreements with the alternative investment unit of Ares Management $ARES.US, the major shareholder of both steelmakers GJ STEEL PCL $GJS.TB

* GJSanufactures hot-rolled steel plate and related products, which can be divided into hot-rolled coil (98.26% of sales), tempered hot rolled coil, and hot-rolled pickled & oiled products.

* 99.32% of sales in 2020 were to domestic customers.