Emerging Market Links + The Week Ahead (April 22, 2024)
Is China preparing to devalue the Yuan? Aluminium & nickel prices surge on Russian sanctions, Credit ratings of South African companies hold up, EM stock picks and the week ahead for emerging markets.
China has its share of perma-bulls and perma-bears (the coming collapse of China crowd…), but Steno Research has issued a report (mostly behind a paywall) noting:
China is preparing for something major. That seems increasingly obvious judging from the stockpiling of important resources. Could it be that they are preparing a major one-off devaluation of the CNY?
Of course, the conspiracy theorists and China bears have other ideas about what China might be preparing for...
Then there is this meme posted in a reply to the Steno Research tweet about their piece that sums up the current state of the currency wars:
Finally, and to build upon a podcast covered in yesterday’s paywalled post, it’s been noted that S&P ratings of South Africa-focused companies are holding up in spite of rising costs and all of the the problems the country faces (including the coming elections). However, the IMF has warned of El Niño drought’s impact on growth outlook in sub-Saharan Africa - something that will have implications for food commodity prices.
🔬 Emerging Market Stock Pick Tear Sheets
$ = behind a paywall
🇮🇳 moneycontrol India Stock of the Day (March 2024) Partial $
Bosch Ltd, Coal India, Ami Organics, Coforge, Shivalik Bimetal Controls Ltd, Aditya Birla Capital, Protean eGov Technologies Ltd, NTPC Ltd, Metro Brands, Vijaya Diagnostic Centre, Ramkrishna Forgings Ltd, Balaji Amines Ltd, Control Print, Sirca Paints, V Guard Industries Ltd, Cyient & Aavas Financiers
🌐 EM Fund Stock Picks & Country Commentaries (April 21, 2024) $
A number of new March or Q1 factsheets-commentaries discussing stock picks, when economies falter (Brazil), the label JSE does not reflect the SA market's contents, Vietnam + India trip reports, etc.
📰🔬 Emerging Market Stock Picks / Stock Research
$ = behind a paywall / 🗃️ = Archived article
🇨🇳 Exclusive: CATL founder upbeat about Ford battery plant tie-up, EVs future in China (Caixin) $
Robin Zeng Yuqun, the 56-year-old founder and chairman of the world’s top electric vehicle (EV) battery-maker Contemporary Amperex Technology Co. Ltd. (CATL) (SHE: 300750) (宁德时代), struck an upbeat note in a recent exclusive interview with Caixin, saying that construction work on the company’s $3.5 billion U.S. plant with Ford is “progressing smoothly” and that the prospects for EVs in China are ever brighter.
However, he also acknowledged the challenges the Fujian province-based giant faces, including regulatory challenges in Europe and the difficulty of commercializing solid-state batteries, a technology that could bring an end to the “range anxiety” that wards off some potential EV buyers.
🇨🇳 Alibaba reorients business, rejigs overhaul after catalogue of mistakes (SCMP) 🗃️ & Alibaba diverts from new retail push in strategy reckoning (Caixin) $
As part of a sweeping business revamp to rebuild growth, Alibaba Group (NYSE: BABA) has been dialing back its “new retail” push, sparking speculation that its offline retail businesses such as Freshippo and RT-Mart might be put up for sale.
While emphasizing its focus on its core e-commerce and cloud computing businesses, Alibaba’s leadership has signaled an intent to shed marginal assets.
🇨🇳 Alibaba doubles down overseas for new growth drive (Caixin) $
China’s e-commerce giant Alibaba Group (NYSE: BABA) is looking for growth by going abroad.
Cross-border e-commerce is considered Alibaba’s most promising segment, despite stiff competition from fast-rising upstarts such as the fast fashion retailer Shein and Temu, the overseas marketplace operated by PDD Holdings Inc.
🇨🇳 JD.com (JD US / 9618 HK): Announced 2.8% Share Buyback In 1Q24 + My 1Q24 Preview (SmartKarma) $
JD.com (9618 HK) announced this week that it has repurchased 2.8% of the outstanding shares of the company in the first quarter of 2024.
Improved shareholder returns is a key thesis for the stock, given that there is little market expectation on such given limited track record.
A positive catalyst on full year performance could be the government's announced stimulus policy for home appliance in April this year (trading old for new).
🇨🇳 Innovent Biologics (1801 HK)– More than Just a GLP-1 Play (SmartKarma) $
Innovent Biologics (HKG: 1801 / FRA: 6IB / OTCMKTS: IVBXF / IVBIY) is most well-known as the developer of mazdutide in China, however this is overshadowing a strong portfolio of oncology drugs in a very high growth market.
China’s approach to healthcare is being defined by having the biggest diabetic population, over 4 million new cancer cases per year, and over 100 million living with obesity.
We expect the valuation gap between the two first-to-market GLP-1 drugs, and competition to close. Oncology drug sales and valuations will continue its growth trajectory.
🇨🇳 In Depth: Chinese education firms learn tough lessons overseas (Caixin) $
Tutoring companies are increasingly looking to overseas markets — especially those with many Chinese nationals or local ethnic Chinese communities — to bolster their growth after a dramatic shift in government policy sent the sector into disarray.
However, as with many Chinese companies which have looked to the international market to offset a domestic downturn, tutors have found it hard to replicate their business model overseas.
🇨🇳 To meme or not to meme: Shengfeng stock on roller coaster ride in its first year (Bamboo Works)
The niche logistics company’s shares have swung widely since their public debut a little more than a year ago, but may have finally settled at a realistic level
Shengfeng Development (NASDAQ: SFWL) shares more than doubled just a few months after their IPO in March last year, then crashed and skyrocketed again, only to nosedive below the listing price
Unlike its stock performance, the niche logistics company’s revenue is growing steadily, while its profitability is also improving
🇨🇳 Feitian Moutai Price Drop Triggers Billion-Dollar Selloff in Liquor Stocks (Caixin) $
Falling retail prices of Feitian Moutai have triggered a selloff of Chinese liquor stocks. Industry giant Kweichow Moutai (SHA: 600519)’s share price dropped more than 6% over the past five trading days, wiping out more than 80 billion yuan ($1.1 billion) market value of the most valuable company in China.
CSI Liquor Index slid 1.82% Tuesday, down 5.63% from its recent high on April 3. Shares of fellow first-tier distillers Wuliangye Yibin Co., Ltd. (SHE: 000858) fell 6.34% during the period, Luzhou Laojiao Co Ltd (SHE: 000568) down 8.45%, and Jiangsu Yanghe Brewery Joint-Stock Co. Ltd. (SHE: 002304) down 4.73%.
🇨🇳 Nongfu Spring (9633 HK): Criticism Not a Concern, Strong Performance, But Flat Price, Buy (SmartKarma) $
We believe the criticism against Nongfu Spring (HKG: 9633 / OTCMKTS: NNFSF) will eventually help the company.
Catching the trend of sugar free, tea revenue surged by 83% in 2023.
The company achieved higher growth and higher margin, but its stock price is still flat.
🇨🇳 How did KFC sell 190m cups of coffee in China? (Momentum Works)
Right pricing, right segment, right leverage
In the 2023 annual report of YUM China (NYSE: YUMC), the country’s largest restaurant operator which runs KFC, Pizza Hut and Taco Bell franchises, one line of the CEO’s letter caught people’s eyes:
“At KCOFFEE, with competitive coffee prices averaging below RMB9.9, we sold over 190 million cups in 2023, a 35% year-over-year increase.”
In the mass market, Luckin Coffee expanded to 16,000 stores by the end of 2023, was profitable, and focused on killing off rival Cotti Coffee, which had >7,000 stores, leaving Mixue’s Lucky Cup Coffee in the crossfire.
🇨🇳 Chinese tea chain ChaPanda seeking to raise $330m in IPO (World Coffee Portal)
Chengdu-based ChaPanda is expected to begin trading on the Hong Kong Stock Exchange on 23 April 2024 and will use the raise to strengthen its supply chain and modernise its nearly 8,000 stores
🇨🇳 Nayuki tweaks franchising model as competitors serve up rival listings (Bamboo Works)
The premium tea seller had 205 franchised stores in its network at the end of March, following its decision last year to diversify beyond self-operated stores
Nayuki Holdings (HKG: 2150 / OTCMKTS: NYKHF)’s new store openings slowed in the first quarter due to seasonal factors, as it tweaked its franchising model aimed at boosting its presence in smaller cities
The premium tea seller will soon face new competition for investor dollars in Hong Kong, as at least five major rivals have filed for IPOs since last October
🇨🇳 China Tourism Group Duty Free (1880 HK): Headwinds Persist (SmartKarma) $
Since my previous insight on China Tourism Group Duty Free (HKG: 1880 / SHA: 601888) in October 2023, the stock has declined 33%, and year-to-date, the stock has declined 13%.
The company faces headwinds from continued overall weakness in Hainan duty free sales and potentially increased competition in Hainan.
The company already announced preliminary 1Q24 results, with sales down 9% yoy and net profit flat. The company is trading at 18x 2024 earnings.
🇨🇳 After big landlord concessions, CTG Duty-Free dogged by weak spending (Bamboo Works)
The duty-free store operator’s financial performance rebounded last year, but lackluster results in the first quarter of 2024 may reflect growing consumer caution
China Tourism Group Duty Free (HKG: 1880 / SHA: 601888)’s first-quarter profit was basically flat, while its revenue fell by nearly 10% year-on-year
The company made a senior management change before its first-quarter announcement, the latest in a series of similar adjustments
🇨🇳 FAST NEWS: JPMorgan ups stake in CTG Duty Free (Bamboo Works)
The Latest: U.S. banking giant JPMorgan purchased about 126,000 Hong Kong-listed shares of China Tourism Group Duty Free (HKG: 1880 / SHA: 601888) on April 10, raising its stake in the duty-free store operator from 7.89% to 8%, according to a new Hong Kong Stock Exchange filing.
🇨🇳 Travelsky (696 HK | HOLD | TP:HKD9.92): Domestic Travel Will Support Growth (SmartKarma) $
Travelsky Technology Ltd H (HKG: 0696 / FRA: TVL / OTCMKTS: TSYHY / TSYHF) Jan-Feb operational data strong, volume processed by domestic +45% YoY and international by +52% YoY; much higher than the consensus 2024 forecast of 15%
Traffic among the Big 3 Chinese airlines was up 46% YoY (-9% MoM) in March to +8% vs 2019. Domestic traffic rose 19% YoY (-11% MoM) to +24% vs 2019
TP of HKD9.92 (+8% UPSIDE) is based on 2024 PE 14.8x (1SD below mean). The upside is uncompelling, but we advocate a HOLD as traffic growth is stronger than consensus
🇨🇳 Deadbeat developer debt collection enters new phase with Shimao liquidation (Bamboo Works)
China Construction Bank (HKG: 0939 / VIE: CNCB / SHA: 601939 / OTCMKTS: CICHY / OTCMKTS: CICHF)’s request to liquidate Shimao Group Holdings Ltd (HKG: 0813 / FRA: QHI / OTCMKTS: SIOPF / SHMAY) shows that state-owned banks are starting to take legal action to recover their money from the debt-ridden industry
A unit of China Construction Bank has asked a court to liquidate Shimao Group, which had a net debt ratio of 473.2% at the end of last year
CCB Asia has taken legal action against three Hong Kong-listed Chinese real estate developers so far this year
🇨🇳 China’s sovereign fund bolsters big four banks with $722 million investment (Caixin) $
China’s central government continued to increase its holdings in the country’s top four state-owned banks through its sovereign wealth fund as it continued to bolster the nation’s ailing stock market.
Since October, Central Huijin Investment Ltd. has bought 5.23 billion yuan ($722 million) of stock in the Bank of China (SHA: 601988 / HKG: 3988 / FRA: W8V / OTCMKTS: BACHY / BACHF), the Agricultural Bank of China (SHA: 601288 / HKG: 1288 / OTCMKTS: ACGBY / ACGBF), the Industrial and Commercial Bank of China (HKG: 1398 / SHA: 601398 / FRA: ICKB / OTCMKTS: IDCBF) and the China Construction Bank (HKG: 0939 / SHA: 601939 / OTCMKTS: CICHY / CICHF), according to Friday statements issued by the four banks.
🇨🇳 Lao Feng Xiang B-share (900905 CH) (Asian Century Stocks) $
China’s largest jewelry company at 6.6x P/E
Lao Feng Xiang (SHA: 600612 / 900905) (US$2.1 billion) is the largest jewelry manufacturer and retailer in China, with an estimated market share of 7.5%.
Lao Feng Xiang’s niche is traditional gold jewelry. The designs tend to be simple and timeless, in contrast to, say, Chow Tai Fook Jewelry Group’s (HKG: 1929 / FRA: 1CT / OTCMKTS: CJEWY / CJEWF)’s more trendy designs. Customers buy Lao Feng Xiang’s jewelry not only as accessories but also as investments － to protect their capital from inflation.
And the company has been immensely successful. Over the past 20 years, it’s compounded revenues at 20% and earnings at 32%. While the numbers for the past ten years have been more modest, the industry has suffered significant headwinds after the gold bubble burst in 2012. In light of these headwinds, Lao Feng Xiang has performed admirably.
🇨🇳 Chow Tai Fook glitters as hedge against lower interest rates (Bamboo Works)
China’s leading jewelry seller has benefited from spiking gold prices that reached an all-time high after Iran’s drone attack on Israel last week
Chow Tai Fook Jewelry Group’s (HKG: 1929 / FRA: 1CT / OTCMKTS: CJEWY / CJEWF)’s sales grew 12.4% in the first three months of this year, accelerating from the company’s 6% revenue growth in the six months through September 2023
As China’s largest listed jeweler, Chow Tai Fook could benefit from gold’s recent rise to record high prices
🇨🇳 FAST NEWS: Shandong Gold mines higher gold prices for big profits (Bamboo Works)
The Latest: Shandong Gold Mining Co. Ltd. (SHA: 600547 / HKG: 1787 / FRA: 188H) said on Thursday it expects to report a net profit of 650 million yuan ($89.8 million) to 750 million yuan for the first quarter of this year, up 48.1% to 70.9% from the same period of 2023.
🇨🇳 AIA Group: A Mix Of Positives And Negatives (Seeking Alpha) $
The favorable factors for AIA Group (HKG: 1299 / FRA: 7A2 / OTCMKTS: AAIGF) are the stock's attractive valuations and the company's growth opportunities in Southeast Asia.
AAGIY's unfavorable factors relate to the risk of a slowdown in Mainland Chinese Visitors or MCV insurance sales and concerns about a potential decrease in capital allocated to buybacks.
A Neutral view for AIA Group is warranted, taking into account both the stock's key positives and negatives.
🇭🇰 Belle Fashion IPO: The Investment Case (SmartKarma) $
Belle Fashion Group (2007708D HK), the largest fashion footwear company in China, is seeking to raise up to US$1 billion in a HKEx IPO.
Belle Fashion originated from Belle International Holdings (2129452D HK), which was privatised in 2017. In October 2019, Belle International spun off its sportswear business as Topsports International Holdings (HKG: 6110 / OTCMKTS: TPSRF)
The investment case rests on a market-leading position, return to growth, margin improvement, cash generation and modest leverage.
🇭🇰 Perfect Medical: Post Card From HK, Yield of 11.5% (SmartKarma) $
Perfect Medical Health Management (HKG: 1830 / OTCMKTS: PFSMF), post a correction of consumer discretionary stocks in HK, now trades at a yield of 11.5%, with cash & investments representing 24% of the market cap.
HK is experiencing a dip in consumer sentiment, and the company isn't immune to it, but flat sales/profitability, a 24% net margin, and >40% ROE provide great margin of safety.
The stock trades at 9.3x FY24 PE and 11.5% yield (assuming a 110% payout average across company history) with a growth option once the HK economy kickstarts.
🇭🇰 Lonking (3339 HK): Policy Tailwind (SmartKarma) $
[Manufacturer of construction machinery] Lonking Holdings (HKG: 3339 / FRA: C9IB / OTCMKTS: LKHLY / LONKF)'s demand should pick up in 2H24 supported by the government's "Action plan to promote large-scale equipment renewals and consumer goods trade-ins".
Industry volume sales have already witnessed a narrower YoY decline in Mar, with solid exports of wheel loaders and domestic sales of excavators.
After going ex- in late-May, its PER will drop to 7.0x and yield will rise to 6.6%. Net cash of HK$1.56/share is more than fully cover its share price.
🇭🇰 🇰🇷 Shin Hwa announces capital rejig, proposes share issue (GGRAsia)
Hong Kong-listed casino developer Shin Hwa World Ltd (HKG: 0582), promoter of Jeju Shinhwa World (pictured), a complex with a foreigner-only casino in Jeju, South Korea, has announced a proposal for a capital reorganisation and a follow-up rights issue, with the intention of raising about HKD309.3 million (US$39.5 million).
The company said in a Thursday filing that the capital reorganisation will include a share consolidation “whereby every 10 existing shares of HKD0.01 each … will be consolidated into one HKD0.10 share”.
This will be followed by a capital reduction in which the issued share capital of each shareholder “will be rounded down to the nearest whole number by cancelling any fraction of a consolidated share,” with all the credits arising from the exercise to be transferred to the “surplus account” of the company.
🇭🇰 Mmg Limited 1208.HK - It's Got It All - Copper, EV's, and AI! (SmartKarma) $
MMG Ltd (HKG: 1208 / FRA: OMS1 / OTCMKTS: MMLTF)
Low-Cost producer of copper and zinc with two of the biggest ten mines in the world.
Recent mine acquisition and increased production at existing mines will grow earnings.
The supply and demand imbalance in copper will lead to higher prices.
🇭🇰 Pacific Basin (2343 HK): The Market Is Overly Conservative (SmartKarma) $
Pacific Basin Shipping (HKG: 2343 / FRA: OYD / OTCMKTS: PCFBY / PCFBF) just announced a US$40m buyback which equals 2.5% of market capitalisation, showcasing management's confidence in the outlook.
At end-1Q24, it covered 68% of FY24 Handysize days at US$10,960/day and 78% of Supermax days at US$13,370/day, leaving significant room to capture the upside in 2H24.
Market consensus looks overly conservative with FY24 earnings of US$154m, given BDI of 1,808 YTD. The average half-year BDI and net profit since 1H20 is 1,822 and US$189m.
🇲🇴 Galaxy to gain market share, MGM China to slip: analyst (GGRAsia)
Seaport Research Partners – a division of Seaport Global Securities Inc – has initiated coverage on Macau’s six casino operators, as well as the United States-based parents of three of them, namely Las Vegas Sands (NYSE: LVS); MGM Resorts International (NYSE: MGM); and Wynn Resorts Ltd (NASDAQ: WYNN).
The brokerage’s 109-page report starting coverage was issued on Sunday, by veteran analyst for the sector, Vitaly Umansky.
Melco Resorts & Entertainment Ltd (NASDAQ: MLCO) had “struggled” in the post-pandemic period, which had “led to the termination” of its former chief operating officer for Macau resorts, and “new senior management being brought in”.
Wynn Macau Ltd (HKG: 1128 / FRA: 8WY / OTCMKTS: WYNMY / WYNMF) had also lost post-pandemic share, “dropping to 14.8 percent in 2019, to 13.5 percent in 2023”.
SJM Holdings (HKG: 0880 / FRA: 3MG1 / KRX: 025530 / OTCMKTS: SJMHF / SJMHY) “continues to struggle in a competitive Macau,” suggested Mr Umansky.
🇲🇴 Issue#4 : A wholesale business and Berlin property (Bargain Stocks Radar)
Another property investment company that’s also languishing on the LSE is a £19 million microcap called Macau Property Opportunities Fund (LON: MPO).
As the name suggest it’s a property fund dedicated to investing in Macau, the world’s largest gaming market and the sole city in China in which gaming has been legalised.
Its portfolio comprises prime residential property assets, such as The Waterside, The Fountainside and Penha Heights. The Fountainside is a residential development located in Macau’s prestigious Penha Hill district.
This has been an awful investment for any long term holders and is the definition of a value trap. However, it will be interesting to see how it plays out.
🇹🇼 TSMC plans to charge customers more for chips made outside Taiwan (FT) 🗃️
World’s largest chipmaker says ‘incremental cost’ of setting up plants abroad should be shared
🇰🇷 Lock & Lock: Affinity Equity Partners Offers a Tender Offer of a 30% Stake (Douglas Research Insights)
On 17 April, Affinity Equity Partners offered a tender offer of a 30% stake in Lock & Lock at 8,750 won per share.
The tender offer period is from 18 April to 14 May. The number of shares that are included in this tender offer is 13.14 million shares (30.33% of outstanding shares).
[Household products company] Lock&Lock Co Ltd (KRX: 115390)'s share price could trade higher close to the tender offer price of 8,750 won as the date as the end of the tender offer period approaches.
🇰🇷 Jeil M&S IPO Bookbuilding Results Analysis (Douglas Research Insights)
[Manufacturer of various types of tanks, sterilizers,
mixers, and fixtures for pharmaceutical and food] Jeil M&S reported excellent IPO bookbuilding results. Jeil M&S's IPO price has been determined at 22,000 won per share (22% higher than the high end of the IPO price range).A total of 2,164 institutional investors participated in this IPO book building. The demand ratio was 646 to 1. Samhyun will start trading on 30 April 2024.
Our base case valuation of Jeil M&S is target price of 24,354 won per share, which is 11% higher than the IPO price.
🇰🇷 Megastudy Education: A Major Shareholder Return Policy in 2024-2026 (Douglas Research Insights)
On 16 April, MegaStudyEdu Co Ltd (KOSDAQ: 215200) announced a major shareholder return plan, driving up its share price by 14.2% to 60,400 won.
Driven by this attractive shareholder return plan combined with improving fundamentals, we believe that Megastudy Education's shares could continue to outperform the market in the next several months.
The total shareholder returns including share buybacks/cancellation and dividends are 60% of the company's non-consolidated net profit from 2024 to 2026.
🇯🇵 Japanese parent-child listings (East Asia Stock Insights)
Parent-child listings refers to when a parent company and its subsidiary (child) are both publicly listed.
The number of parent-child listings on the Tokyo Stock Exchange reached a peak of 417 in 2006. It has been on a decline ever since then - see below graph.
Note: The parent-child relationship is sometimes defined as when the parent owns more than 50% of the child. Other definitions set this threshold at 30%. The downward trend is consistent in both cases.
🇸🇬 OCBC’s Share Price is Touching a 52-Week High: Can the Bank Continue to Do Well? (The Smart Investor)
Singapore’s second-largest bank’s share price is touching its 52-week high. Can the bank business continue to grow?
The local banks have delivered a spectacular performance for 2023.
Surging interest rates have lifted net interest margins across the board, resulting in a sharp jump in net interest income.
Oversea-Chinese Banking Corp (SGX: O39 / FRA: OCBA / FRA: OCBB / OTCMKTS: OVCHY) is no exception.
A stellar set of earnings
Interest rates set to be “higher for longer”
A sanguine outlook
A refreshed logo and new tagline
Incremental revenue in the next three years
Get Smart: Encouraging long-term prospects
🇸🇬 CICT is Well-Positioned to Grow its DPU: Can its Share Price Soar This Year? (The Smart Investor)
The retail and commercial REIT has done well to grow its DPU in a difficult environment, but can its unit price soar to greater heights this year?
Despite these headwinds, there have been several REITs that reported a year-on-year increase in their distribution per unit (DPU).
One of these REITs is CapitaLand Integrated Commercial Trust (SGX: C38U / OTCMKTS: CPAMF), or CICT.
The retail and commercial REIT owns a portfolio of 26 assets in Singapore (21), Germany (2), and Australia (3) with a total value of around S$24.5 billion as of 31 December 2023.
A stellar set of financials
Maintaining healthy operating metrics
Moderate debt levels
Conducting AEIs
🇸🇬 4 Singapore Semiconductor Stocks That Could Explode When the Industry Recovers (The Smart Investor)
The semiconductor industry is still in the doldrums but these four stocks could perform very well once the recovery takes place.
As demand normalised, global semiconductor sales decreased by 8.2% year on year to US$526.8 billion in 2023 after hitting a peak of US$574.1 billion in 2022, according to the Semiconductor Industry Association (SIA).
However, SIA reported that global semiconductor industry sales for February 2024 came in at US$46.2 billion, up 16% year on year which was the largest since May 2022.
UMS Holdings (SGX: 558 / KLSE: UMS / OTCMKTS: UMSSF) provides equipment manufacturing and engineering services to original equipment manufacturers of semiconductors and related products.
Venture Corporation (SGX: V03 / FRA: VEM / OTCMKTS: VEMLF) is a blue-chip electronic services provider serving customers in the life science, genomics, healthcare, networking, and test instrumentation sectors, among others.
Micro-Mechanics (Holdings) Ltd (SGX: 5DD / OTCMKTS: MCRNF), or MMH, designs, manufactures and markets high-precision parts and tools for the wafer fabrication and assembly processes of the semiconductor industry.
AEM Holdings (SGX: AWX) provides semiconductor and electronics test solutions to its customers and has manufacturing plants located in Singapore, Malaysia, Indonesia, Vietnam, China, South Korea, the US, and Finland.
🇻🇳 Vinfast (VFS US) - An EV Accident Waiting to Happen? (SmartKarma) $
VinFast Auto Ltd. (NASDAQ: VFS) is large on promise but low on delivery, with sales in FY2023 coming in well below expectations, and the vast majority being to related companies.
The company is building huge capacity in Vietnam, India, and Indonesia in the region, and in the US, where sales have been slow but where capex is required.
Vingroup has set up ride-hailing company GSM, using Vinfast vehicles for its fleet, making up 50% of its sales in 2023, leaving question marks over the sustainability of its model.
🇮🇩 Telekomunikasi Indonesia: Sell-Off Looks Overdone (Seeking Alpha) $
The recent pullback in Telkom Indonesia (Persero) Tbk PT (NYSE: TLK)'s shares is overdone, as the company's mobile ARPU outlook isn't as bad as feared in my opinion.
Better-than-expected Q1 operating metrics and the successful monetization of the data center business via a partial sale might be potential catalysts for TLK.
I remain bullish on Telekomunikasi Indonesia stock, as I think that a buying opportunity for the company's shares has emerged with the recent sell-off.
🇮🇩 Medikaloka Hermina (HEAL IJ) - Increasing Patient Velocity and Occupancy (SmartKarma) $
Medikaloka Hermina (IDX: HEAL) booked a strong recovery in revenues and profits in FY2023 driven by rapidly rising inpatient and outpatient volume growth with JKN patient share rising.
The company also saw significant improvements in working capital in 2023 and will step up its capex and hospital expansion in FY2024E helping to drive growth.
Medikaloka Hermina is differentiated by its women & children specialisation, higher JKN exposure, and its doctor partnership model. It trades at a discount to peers with higher growth expectations.
🇮🇳 GHCL Textile: The Undervalued & Turnaround Play (SmartKarma) $
Company recently demerged from GHCL Textiles Ltd (NSE: GHCLTEXTIL / BOM: 543918) and guiding for 30% revenue growth and double margins from here onwards with cotton prices being stable.
A Debt Free Textile company available at 0.56x Price to Book with growth plan in progress and adding Value added products in its portfolio.
Due to Forced selling from DII, FII company remained undervalued, now with changing margin profile, the Company will be available at a cheap valuation compared to peers.
🇿🇦 Sibanye Stillwater: The Tide May Be Turning (Seeking Alpha) $
Sibanye Stillwater Ltd (NYSE: SBSW)'s stock has underperformed the market over the past 3 years, down 65% compared to the S&P 500's return of 22%. But the tide may be turning soon.
Despite falling metal prices, the company's cost-cutting efforts and focus on the green metals market make it undervalued with potential for growth.
The stock price may have hit a bottom, and a recovery is possible with the implementation of management's strategic plan and the rise in commodity prices.
The SBSW stock is now "dirt cheap", as some analysts put it. Looking at the most important competitors, SBSW's EV/EBITDA of less than 5.1x is the lowest of all peers.
I reaffirm my "Buy" rating.
🇿🇦 Lesaka: An Undervalued Fintech Gem (Seeking Alpha) $
Lesaka Technologies (NASDAQ: LSAK) has made significant progress in its turnaround efforts and is ready to accelerate growth.
The company owns a 10% equity stake in Indian fintech company MobiKwik, valued at roughly $76 million (~30% of its current market cap).
The macroeconomic forecast in South Africa is favorable, with improving conditions and a growing fintech market.
Acquisition of Touchsides and favorable macroeconomic trends in South Africa boost Lesaka's growth prospects.
Strong leadership and strategic acquisitions position Lesaka to capitalize on Africa's burgeoning fintech market.
🇵🇱 Asseco Poland: Defense, Payments, And Cyber Exposures (Seeking Alpha) $
Asseco Poland SA (WSE: ACP / LON: 0LQG / OTCMKTS: ASOZF) is an under-the-radar pick in the Polish markets, strategically exposed to Israel's defense budget and cybersecurity.
The company's tech consulting and software businesses are experiencing growth in revenues, particularly in financials and fintech, across its Eastern European geographies.
The only issue is that their tech consulting model is facing pressure from general labor inflation. But the valuation angle is still attractive, especially considering the growth record.
🇵🇱 Dino Polska: Rural Poland Provides Room For Growth (Seeking Alpha) $
Dino Polska (WSE: DNP / FRA: 5Y2 / OTCMKTS: DNOPY) is a fast-growing Polish food retailer with over 2,400 grocery stores, focusing on rural small towns and the outskirts of larger cities.
The company's growth strategy is based on expanding its store network, increasing revenue in existing stores, and improving profitability.
Dino has a proven track record of store network expansion and strong financials, with increasing revenue and stable profitability.
🌎 MercadoLibre Stock Is Cheaper Than You May Think (Seeking Alpha) $
MercadoLibre (NASDAQ: MELI) stock is currently trading 31% off its all-time high, presenting a buying opportunity, in my view - read on to learn why I think so.
The margin decline in Q4 should be seen as a one-off event rather than a new "secular trend", in my opinion. The company's investments position it for long-term growth.
The stock may be cheaper, than you might have thought: based on my DCF model, its fair value is >40% higher than today's price.
Goldman analysts project strong growth potential for MELI, with a potential upside of 56% from the current price.
I think if you buy MELI today, you're getting a great, fast-growing company operating in large underserved end markets with great prospects. That's why I rate the stock a "Buy" today.
🇦🇷 Banco BBVA Argentina: The Trend Is Your Friend (Seeking Alpha) $
Argentinian bank stocks, including Banco Bbva Argentina (NYSE: BBAR) and Banco Macro Sa (NYSE: BMA), have seen gains of over 100% since the election of Milei in late 2023.
Banco BBVA Argentina has shown decent performance despite the challenging macroeconomic environment in Argentina.
The macro scene in Argentina is improving, which could lead to further gains for Banco BBVA Argentina.
Shares are a buy with a price target range between $11-$14.
🇦🇷 Supervielle: A 'Higher Beta' Play On The Argentine Bank Recovery (Seeking Alpha) $
Execution risk on Grupo Supervielle SA (NYSE: SUPV) has risen in light of its current CEO’s recent departure.
Fundamentally, however, the bank remains on the right track to capitalize on Argentina’s latest regime shift.
With the stock also priced at a wide relative discount to its peers, there’s arguably more reward per unit of risk here.
🇧🇷 Vale - worth the squeeze? (Calvin's thoughts) $
Vale (NYSE: VALE) is a global iron miner with activities across the globe, though it has a concentrated presence in Brazil. Along with Rio Tinto plc (NYSE: RIO) and BHP Group (NYSE: BHP), it’s one of the world’s largest iron miners (some years, #1). Technically, it is a privately owned company, however, many of the larger shareholders (Brazilian banks and pension funds) are heavily influenced by the Brazilian government, which also has “golden shares” and special veto rights on some company activities. Though state influence is far less than Petrobras (NYSE: PBR / PBR-A) or Braskem (NYSE: BAK) for instance, it has played a role, and influenced decisions such as CEO appointments.
🇧🇷 Vale: How The Company Fits Into China's New Economy (Seeking Alpha) $
The company has strong competitive advantages with high-quality iron ore amid China's need to decarbonize.
Additionally, the company has the best margins and the best return on equity compared to its competitors.
Despite this, it is traded at an attractive valuation based on the EV/EBITDA multiple compared to its competitors.
🇧🇷 Vale's Failures Don't Make It Uninvestable (Seeking Alpha) $
Vale (NYSE: VALE) has made significant safety improvements, removing 90% of tailings and decreasing its injury rate by over 60%.
The company is expanding its iron ore capacity, with plans to add 50 million tonnes/year by 2026.
Vale's financial performance has been strong, with increased EBITDA and cash flow, enabling substantial shareholder returns.
🇧🇷 Inter & Co: New Strategy Being Executed Impeccably (Seeking Alpha) $
Inter & Co Inc (BVMF: INBR32 / NASDAQ: INTR) delivered excellent results after its IPO in 2018, however the rise in interest rates harmed the company, which carried out a successful change in strategy.
Over the last 12 months, the company has focused on more profitable businesses and reducing its costs. This caused its shares to rise more than 200%.
Despite the improvement in results and a bold growth plan until 2027, the company's valuation appears cheap compared to its peers and its own history.
🇨🇱 Andina's Still Attractive Despite Argentina's Challenges (Seeking Alpha) $
Embotelladora Andina Sa (NYSE: AKO.A / AKO.B) is the Coca-Cola licensee in Chile, Paraguay, Argentina, and Brazil, also bottling and distributing alcoholic beverages for third parties.
The company's financial situation is improving as Chilean Peso inflation falls, and its stock price has remained flat since December.
Despite challenges in Argentina, Andina's business is performing well in Brazil, Chile, and Paraguay, with expanding margins and improving net income.
🇵🇪 Cementos Pacasmayo : Potential Vehicle To Access Peru's Economic Rebound (Seeking Alpha) $
Equities in Peru have outperformed emerging markets, with the market poised to benefit from increased copper demand.
Cementos Pacasmayo (NYSE: CPAC) may be a solid investment opportunity due to a short-term sell-off.
Peru's economy is bouncing back, supported by a manufacturing rebound in China and the US, which could boost copper demand.
🇺🇾 🇻🇬 Satellogic Q4: The Business Struggles Amid Rapidly Contracting Satellite Networks (Seeking Alpha) $
Satellogic (NASDAQ: SATL)’s revenues soared by 67.6% to $10.1 million in 2023, but the improvement came from satellite sales.
Satellogic now has just 25 satellites in orbit, and I expect 2024 revenues excluding the Space Systems business to be flat or down slightly.
Free cash flow for 2023 was negative $64.5 million, and I think the company could run out of cash by the end of 2024.
The short borrow fee rate is over 50%, and it could be best for risk-averse investors to avoid Satellogic’s stock.
📰🔬 Further Suggested Reading
$ = behind a paywall / 🗃️ = Archived article
🇨🇳 STENO SIGNALS #96 – A MAJOR DEVALUATION OF THE CNY COULD BE IMMINENT (Steno Research) $
China is preparing for something major. That seems increasingly obvious judging from the stockpiling of important resources. Could it be that they are preparing a major one-off devaluation of the CNY?
🇨🇳 Regulatory moves triggered latest slump in Chinese small caps, insiders say (Caixin) $
A two-day slump in Chinese small-cap stocks was triggered by new regulatory guidelines that tightened oversight of listed companies and dampened investor enthusiasm for the shares, industry insiders said.
The Wind Micro Market Cap Index, which tracks 400 of the smallest-cap Chinese mainland-listed companies with a market value typically between
1.3 billion yuan ($180 million) and 2.5 billion yuan, lost 8.9% on Monday and 10.6% on Tuesday, before recovering some of its losses on Wednesday, when it closed 9.7% higher, amid a broad market rally.
🇨🇳 🌐 Mainland China and Hong Kong Luxury Market: Unlock infinite growth possibilities and sustainable value of luxurious lifestyle (PwC) & Charts of the Day: China on track to become world’s largest luxury market (Caixin) $
China is expected to overtake the U.S. and Europe to become the world’s largest market for personal luxury goods by 2030, according to a new report from accounting firm PricewaterhouseCoopers (PwC).
After fluctuating significantly during the pandemic, China’s personal luxury market is believed to have rebounded to $69 billion last year, due largely to a recovery in international travel, PwC said in the report released Saturday.
🇨🇳 Tackling China overcapacity by investing abroad (The Asset) 🗃️
A global economic slowdown, together with rising geopolitical tensions, has led to overcapacity in crucial Chinese industries like alternative energy and electric vehicles. The only feasible solution is for Chinese companies to expand their overseas investments, particularly in the United States
🇨🇳 Businesses bank on Narendra Modi election win to ease India’s bottlenecks (FT) $ 🗃️
World’s most populous country is emerging as key market for investors but many companies remain tangled in red tape
🇨🇳 How China Miscalculated Its Way to a Baby Bust (WSJ) 🗃️
[Note: From February]
A missile scientist used mathematical models to push the nation’s one-child policy. Its legacy is proving hard to shake.
🌏 The Silver Economy (Asian Century Stocks)
Developed Asia is aging, increasing the demand for healthcare, golf and several other sectors.
In developed Asia, a large part of the population is about to retire, causing massive shifts in consumption patterns. Specifically, they’ll shift their spending from transport and eating out to healthcare.
Healthcare, nursing homes, insurance companies, gyms, golf, special interest travel and deathcare are some of the beneficiaries of Asia’s aging populations.
I also discuss a few listed companies likely to be affected by this trend.
🇿🇦 S&P ratings of SA-focused companies holding up in spite of rising costs (IOL) & Sub-Saharan African Corporates: Rating evolution (S&P Global)
Credit ratings on domestically focused companies were proving resilient and most of S&P’s issuers were able to keep earnings relatively stable, but discretionary spending pressure and infrastructure failure was cutting back their efficiency and had increased costs.
This was according to S&P Global, which yesterday released a report on sub-Saharan corporates.
“Our ratings on sub-Saharan African companies were volatile throughout the pandemic and subsequent recovery. In 2020, sovereign rating actions were behind 50% of the corporate rating actions in sub-Saharan Africa, 95% of which were downgrades. Upgrades in 2021 and 2022 – mainly on the back of lower financial risks – gave way to a mixed picture in 2023, as some commodity markets flagged,” S&P Global said.
🇿🇦 IMF warns of El Niño drought’s impact on growth outlook in sub-Saharan Africa (IOL)
THE International Monetary Fund (IMF) has warned that risks to the sub-Saharan African economic outlook were tilted to the downside as a result of the impact of the El Niño-induced drought.
The ongoing strong El Niño event has been driving drier, hotter weather conditions and below-average rainfall across much of southern Africa since late 2023, resulting in below-average harvests and poor macroeconomic conditions.
Oxford Economics Africa senior economist Jee-A van der Linde said the intensification of El Niño puts under pressure Southern Africa’s entire supply chain of maize, the region’s main staple along with sorghum and wheat.
🇦🇷 Default — the fight over Argentina’s $100bn debt crisis (FT) $ 🗃️
Gregory Makoff’s book [Default: The Landmark Court Battle over Argentina’s $100 Billion Debt Restructuring] is a fair and comprehensive look at what became the trial of the century for sovereign debt
🌐 Aluminium and nickel prices surge after sanctions on Russian supply (FT) $ 🗃️
UK and US measures ban delivery of new Russian-origin metals to LME and CME
🌐 Institutional investors pull $2bn from Ashmore (FT) $ 🗃️
Investors shift exposure away from riskier assets on back of higher interest rates
📅 Earnings Calendar
Note: Investing.com has a full calendar for most global stock exchanges BUT you may need an Investing.com account, then hit “Filter,” and select the countries you wish to see company earnings from. Otherwise, purple (below) are upcoming earnings for US listed international stocks (Finviz.com):
📅 Economic Calendar
Click here for the full weekly calendar from Investing.com containing frontier and emerging market economic events or releases (my filter excludes USA, Canada, EU, Australia & NZ).
🗳️ Election Calendar
Frontier and emerging market highlights (from IFES’s Election Guide calendar):
CroatiaCroatian AssemblyApr 17, 2024 (d) Confirmed Jul 5, 2020India Indian People's Assembly Apr 19, 2024 (d) Date not confirmed Apr 11, 2019
Ecuador Referendum Apr 21, 2024 (d) Confirmed Aug 20, 2023
Panama Panamanian National Assembly May 5, 2024 (t) Confirmed May 5, 2019
Panama Panamanian Presidency May 5, 2024 (t) Confirmed May 5, 2019
South Africa South African National Assembly May 29, 2024 (d) Confirmed May 8, 2019
Mexico Mexican Senate Jun 2, 2024 (t) Date not confirmed Jul 1, 2018
Mexico Mexican Chamber of Deputies Jun 2, 2024 (t) Date not confirmed Jun 6, 2021
Mexico Mexican Presidency Jun 2, 2024 (t) Date not confirmed Jul 1, 2018
Mongolia Mongolian State Great Hural Jun 28, 2024 (d) Confirmed Jun 24, 2020
Venezuela Venezuela Presidency Jul 28, 2024 (d) Confirmed May 20, 2018
Czech Republic Czech Senate Sep 30, 2024 (t) Date not confirmed Sep 23, 2022
Romania Romanian Presidency Sep 30, 2024 (t) Date not confirmed Nov 24, 2019
Sri Lanka Sri Lankan Presidency Sep 30, 2024 (t) Date not confirmed Nov 16, 2019
Georgia Georgian Parliament Oct 26, 2024 (d) Confirmed Oct 31, 2020
Uruguay Uruguayan Presidency Oct 27, 2024 (t) Date not confirmed
Uruguay Uruguayan Chamber of Representatives Oct 27, 2024 (t) Date not confirmed
Uruguay Uruguayan Chamber of Senators Oct 27, 2024 (t) Date not confirmed
Jordan Jordanian House of Deputies Oct 31, 2024 (t) Date not confirmed Nov 10, 2020
Georgia Georgian Presidency Nov 30, 2024 (t) Date not confirmed Nov 28, 2018
Romania Romanian Senate Nov 30, 2024 (t) Date not confirmed Dec 6, 2020
Romania Romanian Chamber of Deputies Nov 30, 2024 (t) Date not confirmed Dec 6, 2020
Namibia Namibian Presidency Nov 30, 2024 (t) Date not confirmed Nov 27, 2019
Namibia Namibian National Assembly Nov 30, 2024 (t) Date not confirmed Nov 27, 2019
Ghana Ghanaian Presidency Dec 7, 2024 (t) Date not confirmed Dec 7, 2020
Ghana Ghanaian Parliament Dec 7, 2024 (t) Date not confirmed Dec 7, 2020
Uzbekistan Uzbekistani Legislative Chamber Dec 31, 2024 (t) Tentative Dec 22, 2019
📅 Emerging Market IPO Calendar/Pipeline
Frontier and emerging market highlights from IPOScoop.com and Investing.com (NOTE: For the latter, you need to go to Filter and “Select All” countries to see IPOs on non-USA exchanges):
Tungray Technologies Inc. TRSG, US Tiger Securities, 1.3M Shares, $4.00-4.00, $5.0 mil, 4/19/2024 Priced
We are an engineer-to-order (“ETO”) company that provides customized industrial manufacturing solutions to Original Equipment Manufacturers (“OEMs”) in the semiconductor, printer, electronics and home appliances sectors. As an ETO company, we take pride in our ability to design and build solutions that fulfil our customers’ unique specifications. (Incorporated in the Cayman Islands)
Our capabilities in this field are the result of more than a decade of experience in completing various ETO projects. We mainly generate revenues through customized industrial manufacturing solutions, direct drive and linear direct current (“DC”) motors, and induction welding equipment manufacturing. During the year ended Dec. 31, 2021, 75.9% of our revenues were generated by customized industrial manufacturing solutions, while 10.1% of our revenues were generated by direct drive and linear direct current (“DC”) motors, and 14.0% of our revenues were generated by induction welding equipment manufacturing.
Singapore is our main development and manufacturing location. We also have manufacturing bases in China, namely Qingdao and Shenzhen. During the year ended Dec. 31, 2021, 61.1% of our revenues were generated from Singapore and 38.9% were generated from China.
Our customers include industry-leading OEMs in the printer and electronics sectors in Singapore, and the home appliances manufacturing sector in China.
We provide customized industrial manufacturing solutions through our two subsidiaries in Singapore, Tung Resource and Tungray Singapore, and one subsidiary in China, Tungray Industrial.
Our Singapore subsidiaries are the main customer service point-of-contact for our non-Chinese market, such as Singapore and the Southeast Asia markets, while our Shenzhen subsidiary serves as a customer service point-of-contact for the Chinese market.
Qingdao Tungray Intelligent designs and manufactures industrial-grade direct drive and linear DC motors. We also have ETO capabilities to provide customized motion platform solutions to suit the needs of our customers.
Our direct drive motors do not require any gears for speed and torque manipulation as they can directly manipulate both parameters over a wide range of values. These motors are used, for example, in the solar panel assembly lines to turn and transport semi-completed products between different manufacturing processes.
Our motion platforms offer two degrees of freedom to move independently in the X and Y axis, thereby eliminating the need for any belt or gears. These high precision platforms require two linear DC motors and are mainly used in the glue application and laser cutting machines, in which precise movements in X and Y directions are required.
We have several patented technologies that are used in the manufacturing of our motors.
Tongri Electric, our subsidiary in Qingdao, PRC, specializes in the design and manufacturing of self-contained high-frequency induction welding equipment. Tongri Electric manufactures manual and automatic induction welding equipment that is mostly used in the production of refrigerators, air conditioners and heat pump clothes dryers.
**Note: Net income and revenue figures are in U.S. dollars for the 12 months that ended June 30, 2023.
(Note: Tungray Technologies Inc. priced its micro-cap IPO in sync with the terms in its prospectus – 1.25 million shares at $4.00 – the low end of its $4.00-to-$6.00 range – to raise $5.0 million on April 18, 2024. Background: Tungray Technologies Inc. cut its micro-cap IPO in half in an F-1/A filing dated March 1, 2024, by reducing the number of shares to 1.25 million – down from 2.5 million – and keeping the price range at $4.00 to $6.00 to raise $6.25 million. Background: A year ago: Tungray Technologies Inc. filed its F-1 on March 9, 2023, and disclosed terms for its IPO: 2.5 million shares at $4.00 to $6.00 to raise $12.5 million. Tungray Technologies submitted confidential IPO documents to the SEC on Dec. 16, 2022.)
mF International Ltd. MFI, Joseph Stone Capital LLC, 1.6M Shares, $4.00-5.00, $7.0 mil, 4/22/2024 Monday
We are a holding company incorporated in the British Virgin Islands. Our principal Hong Kong subsidiary, mFINANCE Limited, provides an online trading platform for the Asian market. This is known as a Platform as a Service (PaaS). (Incorporated in the British Virgin Islands)
m-FINANCE has approximately 20 years of experience providing real-time mission critical forex, bullion/commodities trading platform solutions, financial value-added services, mobile applications and financial information for brokers and institutional clients in the region. m-FINANCE has provided a wide range of services, including the mF4 Trading Platform, Bridge and Plugins, CRM System, ECN System, Liquidity Solutions, Cross-platform “Broker+” Solution, Social Trading Apps and other value-added services.
m-FINANCE has been committed to providing a state-of-the-art trading platform and innovative one-stop trading solution that fits for the Asian market, via internet or platform as software as a service, with clients located over mainland China, Hong Kong and Southeast Asia. m-FINANCE’s customers are mainly financial institutions, including brokers, investment banks, institutional clients and financial services providers. As of the date of this prospectus, m-FINANCE’s trading platform is handling a monthly average transaction value of over US$100 billion.
*Note: Net income and revenue are in U.S. dollars (converted from Hong Kong dollars) for the 12 months that ended June 30, 2023.
(Note: mFInternational Ltd. disclosed in an F-1/A filing dated Feb. 27, 2024, that the IPO no longer includes the underwritten selling shareholder’s offer of 221,108 ordinary shares. The IPO, according to the Feb. 27, 2024, filing – aka the F-1/A – now consists of only the company’s offer of 1.56 million shares. Under the new terms, the IPO consists of 1.56 million shares – at a price range of $4.00 to $5.00 – to raise $7.02 million, according to mFInternational Ltd.’s F-1/A filing dated Feb. 27, 2024. The prospectus, however, still includes the registration of the selling shareholders’ proposed resale of an aggregate of 2.32 million (2,317,000) ordinary shares, according to the Feb. 27, 2024, filing with the SEC.)
(Note: mFInternational Ltd. filed an F-1/A dated Feb. 16, 2024, in which it trimmed the size of its IPO to 1.78 million ordinary shares (1,781,108 ordinary shares) – down from 1.88 million shares (1,876,108 shares) and kept the price range at $4.00 to $5.00 to raise $8.01 million. Of the 1.78 million shares in the IPO, the company is offering 1.56 million shares and the underwritten selling shareholder is offering 221,108 ordinary shares. In the Feb. 16, 2024, filing with the SEC, mFInternational Ltd. disclosed that it has named Joseph Stone Capital LLC as the sole book-runner – replacing Spartan Capital Securities. Note: The F-1/A dated Feb. 16, 2024, also says that it is registering on behalf of the selling shareholders the resale of an aggregate of 2.32 million (2,317,000) ordinary shares.)
(Background Note: mFInternational Ltd. filed an F-1/A on Sept. 18, 2023, in which it named Spartan Capital Securities as the sole book-runner to replace Pacific Century Securities. The BVI-incorporated holding company filed its F-1 on Aug. 22, 2023, and disclosed terms for its IPO: 1.88 million ordinary shares (1,876,108 shares) at $4.00 to $5.00 to raise $8.44 million – with Pacific Century Securities as the sole book-runner. The holding company submitted confidential IPO documents to the SEC on Dec. 29, 2022.)
FBS Global Ltd. FBGL, Eddid Securities USA, 1.9M Shares, $4.00-4.00, $7.5 mil, 4/23/2024 Tuesday
(Note on corporate structure: The predecessor of our principal operating company was incorporated on March 9, 1996, in Singapore under the name Finebuild Systems Pte Ltd. Pursuant to a restructuring that took effect on August 2, 2022, FBS Global Limited, an exempted company incorporated in the Cayman Islands, through its wholly owned subsidiary, Success Elite Developments Limited, a company incorporated in BVI, became the ultimate holding company of our current principal operating subsidiary referred to herein as FBS SG. (Incorporated in the Cayman Islands) )
From its beginning as a construction company since 1996, FBS SG has developed into a premier integrated engineering company that provides a full suite of construction and engineering services. These services include the supply of building materials and precast concrete components, recycling of construction and industrial wastes, research, and development, as well as pavement consultancy services.
We are an established interior design and build (also referred to as “fit-out”) specialist in Singapore with a track record of over 20 years in institutional, residential, commercial and industrial building projects. Our scope of services comprises design, supply and installation of ceilings, partitions, timber deck, carpet, lead lining, acoustic wall panel, built-in furnishing, carpentry and mechanical & electrical services of a building. We also undertake main construction and building works projects.
**Note: Net income of US$55,168.00 on revenue of $12.65 million for the 12 months that ended June 30, 2023 (converted from Singapore dollars)
(Note: FBS Global Ltd. says its assumed IPO price is $4.00 – the low end of its $4.00-to-$5.00 price range – on 1.875 million shares, according to an F-1/A filing dated Feb. 23, 2024. Background: FBS Global Ltd. cut its IPO’s size to 1.875 million shares – down from 2.75 million shares – and set the price range at $4.00 to $5.00 to raise $8.44 million, according to an F-1/A filing dated Dec. 29, 2023. In that Dec. 29, 2023, filing with the SEC, FBS Global Ltd. also disclosed that it has changed its sole book-runner to Eddid Securities USA from Pacific Century Securities.)
(Note: FBS Global Ltd. filed an F-1/A dated July 27, 2023, in which it trimmed the size of its IPO to 2.75 million shares – down from 3.75 million shares – at US$4.00 to raise $11.0 million. The number of shares – 2.75 million – will all be offered by the company – and this is the same as in the previous prospectus (F-1/A) filed on June 26, 2023. The difference: The selling stockholder’s 1.0 million shares are not highlighted in the July 27, 2023, prospectus. However, in the July 27, 2023, filing, there is a note that the selling stockholder still intends to sell up to 1.0 million shares. Background: FBS Global Ltd. filed an F-1/A on June 26, 2023, and updated its financial statements for the year ended Dec. 31, 2022. FBS Global Ltd. filed its F-1 on Jan. 30, 2023, and disclosed terms for its IPO: 3.75 million (3,750,000) shares at US$4.00 to raise $15.0 million. Of the 3.75 million shares in the IPO, the company is offering 2.75 million shares and the selling stockholder is offering 1.0 million shares. FBS Global Ltd. will NOT receive any proceeds from the sale of the selling stockholder’s shares. FBS Global Ltd. filed confidential IPO documents on Sept. 13, 2022.)
Neo-Concept International Group Holdings Limited NCI, Revere Securities, 2.3M Shares, $4.00-5.00, $10.4 mil, 4/23/2024 Tuesday
We are a holding company, incorporated in the Cayman Islands. We conduct our business through our operating subsidiaries in Hong Kong and the U.K.
NCI is a one-stop apparel solution services provider. We offer a full suite of services in the apparel supply chain, including market trend analysis, product design and development, raw material sourcing, production and quality control, and logistics management serving customers located in the European and North American markets through Neo-Concept HK.
(Note: Neo-Concept International Group Holdings Limited increased its IPO’s size to 2.32 million shares – up from 2.0 million shares originally – and kept the price range at $4.00 to $5.00 – to raise $10.44 million, according to an F-1/A filing dated Jan. 17, 2024. Background: Neo-Concept International Group Holdings Limited disclosed terms for its IPO in an F-1/A filed Nov. 1, 2023: 2.0 million shares at $4.00 to $5.00 to raise $9.0 million.)
Key Mining Corp. KMCM, EF Hutton, 4.4M Shares, $2.25-2.25, $10.0 mil, 4/25/2024 Thursday
We are involved in exploration stage metals mining in Chile. (Incorporated in Delaware)
We are an exploration stage mining company focused primarily on the development of two projects, both of which are located in the Atacama Region (also known as Region III) of the Republic of Chile. Our Cerro Blanco project, or the Cerro Blanco Project, is focused primarily on exploring for rutile from which high grade titanium dioxide (TiO2) can be processed. Our Fiel Rosita project, or the Fiel Rosita Project, is focused primarily on exploring for copper, and to a lesser extent, zinc.
Our current business strategy is focused on the exploration for mineral deposits at the Cerro Blanco Project and at the Fiel Rosita Project. The Cerro Blanco Project has an emphasis on rutile from which high grade titanium dioxide (TiO2) can be processed, and the Fiel Rosita Project has a primary emphasis on copper (and to a lesser extent zinc and other metals). Both projects are located in the Atacama Region (also known as Region III) of the Republic of Chile.
To execute our business strategy, we will require substantial additional financial resources, including amounts necessary to fund our planned exploration program at the Cerro Blanco Project, and to fund the progress payments, the mining claim maintenance fees and our planned exploration program with respect to the Fiel Rosita Project including the exploration expenditures we must incur to satisfy a condition required under our Chilean subsidiary, Key Mining Corporation Chile SpA’s agreement relating to the Fiel Rosita Project. See “Business — SQM Exploration Agreement.” We intend to seek the necessary additional financing through the issuance of additional equity or debt securities, but there can be no assurance that such financing will be available to us in sufficient amounts, on attractive terms, on a timely basis, or at all. See “Risk Factors — Financial Risks — We will require substantial additional capital to explore and/or develop our mineral properties and we may be unable to raise additional capital on favorable terms or at all” and “Risk Factors — Risks Relating to our Business — Maintaining our right to explore and develop the Fiel Rosita mineral project is conditioned upon our making substantial future payments; and if we fail to make such payments we could lose our rights in the project.”
We consider the focus of our business strategy to be justified because we believe the long-term prospects for the copper and titanium dioxide markets are strong.
We operate and control our business and affairs through our wholly owned subsidiaries: Key Mining Corporation Chile SpA, Gold Express Mines SpA and Cerro Blanco Titanium, Inc.
Note: Net loss and revenue figures are for the 12 months that ended Sept. 30, 2023.
(Note: Key Mining Corp. cut the size of its IPO to 4.4 million shares – down from 7.5 million shares – and increased the assumed IPO price to $2.25 – up from $2.15 – to raise $9.99 million in an S-1/A filing dated April 12, 2024. Key Mining Corp. had previously changed its underwriter to EF Hutton from Titan Partners. Background: Key Mining Corp. filed an S-1/A dated Dec. 8, 2023, in which it changed its listing venue to the NYSE – American Exchange from the NASDAQ. The company has not disclosed the terms yet for its IPO. Key Mining Corp. filed its S-1 on Nov. 14, 2023, without disclosing terms for its IPO. The company submitted confidential IPO documents to the SEC in September 2023.)
🏁 Emerging Market ETF Launches
Climate change and ESG are some recent flavours of the month for most new ETFs. Nevertheless, here are some new frontier and emerging market focused ETFs:
03/19/2024 - Avantis Emerging Markets ex-China Equity ETF AVXC - Active, equity, ex-China
03/15/2024 - Polen Capital China Growth ETF PCCE - Active, equity, China
03/04/2024 - Simplify Tara India Opportunities ETF IOPP - Active, equity, India
02/07/2024 - Direxion Daily MSCI Emerging Markets ex China Bull 2X Shares XXCH - Equity, leveraged, China
01/11/2024 - Matthews Emerging Markets Discovery Active ETF MEMS - Active, equity, small caps
01/10/2024 - Matthews China Discovery Active ETF MCHS - Active, equity, small caps
11/07/2023 - Global X MSCI Emerging Markets Covered Call ETF EMCC - Equity, leverage
11/07/2023 - Avantis Emerging Markets Small Cap Equity ETF AVEE - Active, equity, small caps
09/22/2023 - Matthews Asia Dividend Active ETF ADVE - Active, equity, Asia
09/22/2023 - Matthews Pacific Tiger Active ETF ASIA - Active, equity, Asia
09/22/2023 - Matthews Emerging Markets Sustainable Future Active ETF EMSF - Active, equity, ESG
09/22/2023 - Matthews India Active ETF INDE - Active, equity, India
09/22/2023 - Matthews Japan Active ETF JPAN - Active, equity, Japan
09/22/2023 - Matthews Asia Dividend Active ETF ADVE - Active, equity, Asia
08/25/2023 - KraneShares Dynamic Emerging Markets Strategy ETF KEM - Active, equity, emerging markets
08/18/2023 - Global X India Active ETF NDIA - Active, equity, India
08/18/2023 - Global X Brazil Active ETF BRAZ - Active, equity, Brazil
07/17/2023 - Matthews Korea Active ETF MKOR - Active, equity, South Korea
05/18/2023 - Putnam Emerging Markets ex-China ETF PEMX - Active, value, growth stocks
05/11/2023 - JPMorgan BetaBuilders Emerging Markets Equity ETF BBEM - Passive, large + midcap stocks
03/16/2023 - JPMorgan Active China ETF JCHI - Active, equity, China
03/03/2023 - First Trust Bloomberg Emerging Market Democracies ETF EMDM - Principles-based
1/31/2023 - Strive Emerging Markets Ex-China ETF STX - Passive, equity, emerging markets
1/20/2023 - Putnam PanAgora ESG Emerging Markets Equity ETF PPEM - Active, equity, ESG, emerging markets
1/12/2023 - KraneShares China Internet and Covered Call Strategy ETF KLIP - Active, equity, China, options overlay, thematic
1/11/2023 - Matthews Emerging Markets ex China Active ETF MEMX - Active, equity, emerging markets
12/13/2022 - GraniteShares 1.75x Long BABA Daily ETF BABX - Active, equity, leveraged, single stock
12/13/2022 - Virtus Stone Harbor Emerging Markets High Yield Bond ETF VEMY - Active, fixed income, junk bond, emerging markets
9/22/2022 - WisdomTree Emerging Markets ex-China Fund XC - Passive, equity, emerging markets
9/15/2022 - KraneShares S&P Pan Asia Dividend Aristocrats Index ETF KDIV - Passive, equity, Asia, dividend strategy
9/15/2022 - OneAscent Emerging Markets ETF OAEM - Active, Equity, emerging markets, ESG
9/9/2022 - Emerge EMPWR Sustainable Select Growth Equity ETF EMGC - Active, equity, emerging markets
9/9/2022 - Emerge EMPWR Unified Sustainable Equity ETF EMPW - Active, equity, emerging markets
9/8/2022 - Emerge EMPWR Sustainable Emerging Markets Equity ETF EMCH - Active, equity, emerging markets, ESG
7/14/2022 - Matthews China Active ETF MCH - Active, equity, China
7/14/2022 - Matthews Emerging Markets Equity Active ETF MEM - Active, equity, emerging markets
7/14/2022 - Matthews Asia Innovators Active ETF MINV - Active, equity, Asia
6/30/2022 - BondBloxx JP Morgan USD Emerging Markets 1-10 Year Bond ETF XEMD - Passive, fixed income, emerging markets
5/2/2022 - AXS Short CSI China Internet ETF SWEB - Active, inverse, thematic
4/27/2022 - Dimensional Emerging Markets High Profitability ETF DEHP - Active, equity, emerging markets
4/27/2022 - Dimensional Emerging Markets Core Equity 2 ETF DFEM - Active, equity, emerging markets
4/27/2022 - Dimensional Emerging Markets Value ETF DFEV - Active, equity, emerging markets
4/27/2022 - iShares Emergent Food and AgTech Multisector ETF IVEG - Passive, equity, thematic [Mostly developed markets]
4/21/2022 - FlexShares ESG & Climate Emerging Markets Core Index Fund FEEM - Passive, equity, ESG
4/6/2022 - India Internet & Ecommerce ETF INQQ - Passive, equity, thematic
2/17/2022 - VanEck Digital India ETF DGIN - Passive, India market, thematic
2/17/2022 - Goldman Sachs Access Emerging Markets USD Bond ETF GEMD - Passive, fixed income, emerging markets
1/27/2022 - iShares MSCI China Multisector Tech ETF TCHI - Passive, China, technology
1/11/2022 - Simplify Emerging Markets PLUS Downside Convexity ETF EMGD - Active, equity, options strategy
1/11/2022 - SPDR Bloomberg SASB Emerging Markets ESG Select ETF REMG - Passive, equity, ESG
🚽 Emerging Market ETF Closures/Liquidations
Frontier and emerging market highlights:
03/25/2024 - Global X MSCI Nigeria ETF - NGE
03/21/2024 - VanEck Egypt Index ETF - EGPT
03/14/2024 - KraneShares Bloomberg China Bond Inclusion Index ETF - KBND
03/14/2024 - KraneShares China Innovation ETF - KGRO
03/14/2024 - KraneShares CICC China Consumer Leaders Index ETF - KBUY
03/13/2024 - Xtrackers MSCI All China Equity ETF - CN
03/13/2024 - Xtrackers MSCI China A Inclusion Equity ETF - ASHX
02/16/2024 - Global X MSCI China Real Estate ETF - CHIH
02/16/2024 - Global X MSCI China Biotech Innovation ETF - CHB
02/16/2024 - Global X MSCI China Utilities ETF - CHIU
02/16/2024 - Global X MSCI Pakistan ETF - PAK
02/16/2024 - Global X MSCI China Materials ETF - CHIM
02/16/2024 - Global X MSCI China Health Care ETF - CHIH
02/16/2024 - Global X MSCI China Financials ETF - CHIX
02/16/2024 - Global X MSCI China Information Technology ETF - CHIK
02/16/2024 - Global X MSCI China Consumer Staples ETF - CHIS
02/16/2024 - Global X MSCI China Industrials ETF - CHII
02/16/2024 - Global X MSCI China Energy ETF - CHIE
02/14/2024 - BNY Mellon Sustainable Global Emerging Markets ETF - BKES
01/26/2024 - The WisdomTree Emerging Markets ESG Fund - RESE
11/11/2023 - Global X China Innovation ETF - KEJI
11/11/2023 - Global X Emerging Markets Internet & E-commerce ETF - EWEB
11/09/2023 - Franklin FTSE South Africa ETF - FLZA
10/27/2023 - Simplify Emerging Markets Equity PLUS Downside Convexity - EMGD
10/20/2023 - WisdomTree India ex-State-Owned Enterprises Fund - IXSE
10/20/2023 - WisdomTree Chinese Yuan Strategy Fund - CYB
10/20/2023 - Loncar China BioPharma ETF - CHNA
10/18/2023 - KraneShares Emerging Markets Healthcare Index ETF - KMED
10/18/2023 - KraneShares MSCI China ESG Leaders Index ETF - KSEG
10/18/2023 - KraneShares CICC China Leaders 100 Index ETF - KFYP
10/16/2023 - Strategy Shares Halt Climate Change ETF - NZRO
09/20/2023 - VanEck China Growth Leaders ETF - GLCN
08/28/2023 - Asian Growth Cubs ETF - CUBS
08/01/2023 - VanEck Russia ETF - RSX
07/07/2023 - Emerge EMPWR Sustainable Emerging Markets Equity ETF - EMCH
06/23/2023 - Invesco PureBeta FTSE Emerging Markets ETF - PBEE
06/16/2023 - AXS Short China Internet ETF - SWEB
04/11/2023 - SPDR Bloomberg SASB Emerging Markets ESG Select ETF - REMG
3/30/2023 - Invesco BLDRS Emerging Markets 50 ADR Index Fund - ADRE
3/30/2023 - Invesco BulletShares 2023 USD Emerging Markets Debt ETF - BSCE
3/30/2023 - Invesco BulletShares 2024 USD Emerging Markets Debt ETF - BSDE
3/30/2023 - Invesco RAFI Strategic Emerging Markets ETF - ISEM
2/17/2023 - Direxion Daily CSI 300 China A Share Bear 1X Shares - CHAD
1/13/2023 - First Trust Chindia ETF - FNI
12/28/2022 - Franklin FTSE Russia ETF - FLRU
12/22/2022 - VictoryShares Emerging Market High Div Volatility Wtd ETF CEY
8/22/2022 - iShares MSCI Argentina and Global Exposure ETF AGT
8/22/2022 - iShares MSCI Colombia ETFI COL
6/10/2022 - Infusive Compounding Global Equities ETF JOYY
5/3/2022 - ProShares Short Term USD Emerging Markets Bond ETF EMSH
4/7/2022 - DeltaShares S&P EM 100 & Managed Risk ETF DMRE
3/11/2022 - Direxion Daily Russia Bull 2X Shares RUSL
1/27/2022 - Legg Mason Global Infrastructure ETF INFR
1/14/2022 - Direxion Daily Latin America Bull 2X Shares LBJ
Check out our emerging market ETF lists, ADR lists (updated) and closed-end fund (updated) lists (also see our site map + list update status as most ETF lists are updated).
I have changed the front page of www.emergingmarketskeptic.com to mainly consist of links to other emerging market newspapers, investment firms, newsletters, blogs, podcasts and other helpful emerging market investing resources. The top menu includes links to other resources as well as a link to a general EM investing tips / advice feed e.g. links to specific and useful articles for EM investors.
Disclaimer. The information and views contained on this website and newsletter is provided for informational purposes only and does not constitute investment advice and/or a recommendation. Your use of any content is entirely at your own risk and it is your sole responsibility to evaluate the accuracy, completeness and usefulness of the content. Seek a duly licensed professional for any investment advice. I may have positions in the investments covered. This is not a recommendation to buy or sell any investment mentioned.
Emerging Market Links + The Week Ahead (April 22, 2024) was also published on our website under the Newsletter category.