Emerging Market Links + The Week Ahead (December 11, 2023)
Chinese auto exporters face costly detours after Red Sea attacks, HK stock slump his small brokers, India's NSE set to take HK's place, EM stock picks and the week ahead for emerging markets.
Another Substacker has asked an interesting question: What would happen if throughput of the Suez and Panama canals were impaired at the same time? After all, 15% of total world trade (12% via the Suez canal and 3% via the Panama Canal) goes through these two waterways every day while Caixin has reported that Chinese auto exporters are already facing costly detours after Red Sea attacks.
Finally, Bloomberg has reported that Hong Kong’s stock slump has triggered wave of brokerage closures e.g. the small and medium sized ones. According to FT, India’s NSE is also set to take Hong Kong’s spot among world’s largest markets.
🔬 Emerging Market Stock Pick Tear Sheets
$ = behind a paywall / 🗃️ = Archived article
🇸🇬 🇲🇾 🇮🇩 🇹🇭 Singapore Stocks: The Edge Billion Dollar Club 2023 Award Winners
Singapore listed stocks who won the following metric categories by sector: growth in profit after tax, returns to shareholders, weighted return on equity & overall sector winner.
Total no. of awards: 84
Total no. of winners: 51
📰🔬 Emerging Market Stock Picks / Stock Research
$ = behind a paywall / 🗃️ = Archived article
🇨🇳 Shanghai Port’s shipping service spinoff surges 58.6% in strong debut (Caixin) $
Shanghai Jinjiang Shipping Group Co. Ltd. (SHA: 601083), the shipping business unit of Shanghai International Port Group (SHA: 600018), gained 58.6% in its trading debut in Shanghai after a 2.18 billion yuan ($306 million) initial public offering.
The container shipping service provider finished its first day of trading at 17.84 yuan a share, giving it a market cap of 23.1 billion yuan.
🇨🇳 China has a new e-commerce top dog as global gains lift PDD past Alibaba (Bamboo Works)
The company formerly known as Pinduoduo passed Alibaba (NYSE: BABA) in terms of market value after reporting strong third-quarter growth fueled by its international Temu platform
PDD Holdings (NASDAQ: PDD)’s Temu international platform has grown rapidly since its launch in September 2022, with one analyst estimating it contributed 28% of the company’s third-quarter revenue
The discount-focused e-commerce company has an edge over Alibaba due to its closer ties with suppliers, giving it more control over sourcing, pricing and inventory
🇨🇳 TikTok owner ByteDance to buy back shares after amassing $50bn cash pile (FT) $
Ecommerce growth drives revenues to record level and pushes quarterly earnings before interest and tax to $9bn
🇨🇳 ByteDance declares ‘game over’ for gaming division (Bamboo Works)
The parent of short-video sensation TikTok made the decision in the face of stiff competition from established gaming giants like Tencent (HKG: 0700 / LON: 0LEA / FRA: NNND / OTCMKTS: TCEHY)
ByteDance will phase out its Nuverse gaming division, laying off hundreds of employees and terminating all ongoing gaming projects by the end of the year
The internet giant’s decision follows previous similar scale-backs in its education, real estate and virtual reality businesses
🇨🇳 Bitdeer, Canaan mint hedges against crypto volatility in AI (Bamboo Works)
Each company is seeking to develop businesses related to the hot emerging technology as their core crypto operations lose money
Bitdeer Technologies Group (NASDAQ: BTDR) said it was picked as a preferred cloud services provider for artificial intelligence cloud services powered by an Nvidia chip
Cryptocurrency mining machine maker Canaan Inc (NASDAQ: CAN) is looking to create a separate unit for its business making chips for AI applications
🇨🇳 Tongdao Liepin looks for work amid weak economy, rising unemployment (Bamboo Works)
The online recruitment platform’s profit tumbled 84% in the first nine months of the year as employers reined in their hiring
Tongdao Liepin Group (HKG: 6100 / FRA: 6WT / OTCMKTS: TGDLF)’s profit fell 72% in the third quarter to 32 million yuan, while its revenue fell about 13% to 559 million yuan
The company is expanding to Hong Kong and working more closely with headhunters as part of several new initiatives to jumpstart growth
🇨🇳 Li Ning (2331 HK): Buying A HKD2.2bn Office Building - Now A Corporate Governance Discount? (Smart Karma) $
Li Ning (HKG: 2331 / FRA: LNLB / FRA: LNL / OTCMKTS: LNNGY / LNNGF) announced yesterday that the company has acquired a HK office project, the Harbour East, from Henderson Land Development (HKG: 0012 / FRA: HLD / OTCMKTS: HLDCY / HLDVF), for a total consideration of HKD2.2bn.
The acquisition is quite unexpected given that Li Ning has had a clean corporate governance track record.
The company now trades at 11x foward PE, assuming no growth in 2023 and 2024 earnings. It is now a value stock, though the visibility is very low.
🇨🇳 Wuxi Biologics (2269 HK): Lowered 2023 Revenue Expectation Amid Challenging Industry Outlook (Smart Karma) $
Wuxi Biologics (HKG: 2269 / OTCMKTS: WXXWY / OTCMKTS: WXIBF) has guided for weaker-than-expected revenue and lower profit in 2023, as the operating industry is facing near-term challenges due to biotech funding slowdown.
$300 million lesser revenue in development business due to reduced number of projects and manufacturing revenue deficit of $100 million due to CMO deferral contributed to the miss.
Following the announcement, Wuxi Biologics shares nosedived 24% on HK stock exchanges, marking its biggest one-day slide since listing in 2017.
🇨🇳 GDS under pressure to step up overseas expansion as China market cools (Bamboo Works)
The data center operator’s revenue growth slowed in the third quarter, as it officially launched its first offshore data center in Malaysia
GDS Holdings (NASDAQ: GDS)’ revenue grew 6.4% in the third quarter, slowing from 7% in the second quarter and 15% in the third quarter of 2022
The company is investing heavily in Southeast Asia to jumpstart growth as its home China market cools amid a broader economic slowdown
🇨🇳 Meitu dolls up with spinoff for Singaporean unit (Bamboo Works)
The unit being spun off, AI-powered digital design platform Pixocial, was a major contributor to Meitu’s net profit last year
Meitu Inc (HKG: 1357 / FRA: M5U / LON: 0ZNC / OTCMKTS: MEIUF) has completed a new funding for its Singapore-based Pixocial unit that accounted for a major portion of the company’s net income in 2022
The new funding raised $22 million from participants including Fidelity’s Eight Roads investment arm, valuing Pixocial at more than $100 million
🇨🇳 Makeover complete? Yatsen says the worst may be behind it (Bamboo Works)
The cosmetics and skincare company said it will boost its share repurchase plan, seeking to prop up its shares after it reported its revenue fell in the third quarter
Yatsen Holding (NYSE: YSG) reported its revenue fell 16.3% in the third quarter, but forecast a probable return to growth in fourth quarter
🇨🇳 Rept Battero IPO: The Bull Case (Smart Karma) $
REPT BATTERO Energy (1998104D CH), a leading EV battery manufacturer, is premarketing a US$300 million HKEx IPO, according to press reports.
According to Frost & Sullivan, in 1H23, Rept was the tenth-largest lithium-ion battery manufacturer globally for annual installations for new energy applications.
The bull case rests on rapid ESS revenue growth, reducing customer concentration risks, ambitious capacity expansion plans, promising margin trajectory and improving cash collection cycle.
🇨🇳 Rept Battero IPO: The Bear Case (Smart Karma) $
The bear case rests on market share losses, high related party revenue, weak outlook, EV battery weak performance, FCF burn, high impairments and receivable financing.
🇨🇳 REPT BATTERO Energy IPO - Fastest Growth, Lowest Margins, No Valuation Discount (Smart Karma) $
REPT BATTERO Energy (REPT) is a lithium-ion battery manufacturer in China, focusing on R&D, production, and sales of EV/ESS lithium-ion battery products such as battery cells, modules and packs.
We have looked at the company’s past performance in our previous notes. In this note, we talk about valuations.
🇨🇳 Its IPO finally approved, Yan Palace flies towards uncertain future (Bamboo Works)
China’s top “bird’s nest stock” faces ongoing challenges from high marketing costs and concerns over product efficacy as it nears the finish line in a long Hong Kong listing journey
Yan Palace reported its profit in the first five months of 2023 rose more than 20%, as its Hong Kong listing application was finally approved after several failed attempts
China’s No. 1 “bird’s nest stock” is spending heavily on marketing and building up distribution channels to maintain its growth
🇨🇳 Misfortune for DouYu as CEO faces gambling charges (Bamboo Works)
Douyu International Holdings (NASDAQ: DOYU)
The company that was once China’s biggest livestream gaming platform has been accused of hosting gambling activities and allowing pornography
Founder Chen Shaojie has been arrested on charges of running a gambling business that could be linked to livestreamers’ lottery schemes
The fallout from the arrest is likely to affect the company’s strategy of focusing on its hardcore gamers
🇹🇼 China Airlines (2610 TT, NEUTRAL, TP:TWD 23.00): Superb 2023 Masks Upcoming Challenges (Smart Karma) $
China Airlines (TPE: 2610) will deliver record profit in 2023 on strong passenger and rising cargo rates
Beyond 2023, hard to forecast due to high exposure (~30%) to volatile cargo, and it lacks brand recognition and customer loyalty evidenced by its weaker yields to local rival
Target price of TWD23 based on 1.71x FY2024 P/BV ratio - one SD above mean. Limited 6% UPSIDE, with 3,9% dividend yield. Prefer Eva Airways (2618 TT)
🇹🇼 Eva Airways (2618 TT, BUY, TP:TWD34.90) The Best, but Not the Cheapest (Smart Karma) $
Eva Airways (EVA) (TPE: 2618) is enjoying the perfect tailwind of strong demand from both inbound and outbound, capacity deficit, a resurgence in corporate travel, and rising cargo rates
Consensus believes FY2023 will be peak earnings as 2024 capacity rollout will balance the demand-supply, but our observations suggest things will likely remain the same until the end of 1H24
Target price of TWD34.90 based on 13.4x FY2024 PE ratio - its long-term mean. Borderline attractive with a modest 11% UPSIDE, but 5.9% dividend yield is a sweetener
🇹🇼 Himax Technologies: No Buying Opportunity (Seeking Alpha) $
Himax Technologies (NASDAQ: HIMX) announced Q3 FY23 with revenue growth and healthy margins due to recovery in the automotive sector.
Headwinds such as increased local competition and a muted festival season may hamper sales in the coming quarters.
The stock is trading in a downtrend, with a bearish price chart and high valuation, making it a risky investment.
🇮🇳 Ipca Laboratories (IPCA IN): Stellar Domestic Performance; US Business Poised for Scaling Up (Smart Karma) $
In Q2FY24, Ipca Laboratories (NSE: IPCALAB / BOM: 524494) reported 10% growth in domestic formulation business, driven by 12% growth in pain management. In FY24, domestic formulation is expected to growth 12–14%.
Ipca now holds 52.67% stake in Unichem Laboratories (NSE: UNICHEMLAB / BOM: 524494). Ipca is confident to clock revenue of INR1.7–1.8B and EBITDA of INR300M from Unichem within two years of acquisition.
As facilities are back onstream, Ipca is augmenting the supply chain and revalidating of all the formulations and updating them. Shipment to the U.S. may begin in Q1FY25.
🇸🇦 Roving Around Riyadh - A Look into a Kingdom Forging its Future Through Reform (Part 1) (Pyramids & Pagodas)
Work trip to Saudi Arabia sheds light on reform progress, geopolitical shifts, and consumer habits.
From September to October, Desertfox spent 1 month in Riyadh, the capital of Saudi Arabia.
We will be releasing a two-part Series covering Desertfox’s recent trip to Riyadh, during which he gained interesting insights into how Saudi Arabia’s soft power push translated to real life experience working with the Saudi public sector, how this might benefit a Hong Kong-listed proxy, and the notable rise of Chinese automakers on the Kingdom’s streets.
Pico Far East (HKG: 0752 / FRA: PJFB / OTCMKTS: PCOFF) (market cap – USD 230 million) (“Pico”) is a Hong Kong-listed company principally engaged in providing exhibition and event marketing services with Middle East operations since the early 1990s. The Company is set to increase its investments in the Kingdom over the next few years, presenting potential opportunities for growth and expansion.
🇰🇿 Kaspi.kz: Compelling Growth Story With A U.S. Listing Catalyst (Seeking Alpha) $
The KASPI (LON: 80TE / FRA: KKS) growth story isn't slowing down.
Beyond the core businesses, Kaspi is actively reinvesting in new growth areas as well.
Yet current valuations assign little to no credit for Kaspi's current and future growth.
Kaspi's upcoming US listing could well be a major re-rating catalyst.
🇳🇬 Nigeria – betting on Africa's Milei? (Undervalued Shares)
Nigeria's telecoms sector could be about to experience just that. The country's new president, Bola Tinubu, is aiming for a radical reform of the sector's tax code.
Ditto for Nigerian manufacturers, which suffer from 197 different taxes, levies, and fees. Tinubu has identified that just ten of them bring 97% of tax revenue. Guess what he is thinking of doing with the other 187.
Despite this progress, few other countries experience such a degree of investor negativity. Over the past ten years, foreign ownership of Nigerian equities has dropped from 50% to just 9%.
Of late, the currency situation was so dire that some high-net-worth investors engaged in a peculiar type of arbitrage: they bought the stocks of Airtel Africa (LON: AAF / FRA: 9AA / OTCMKTS: AAFRF) (ISN GB00BKDRYJ47) and Seplat Energy (LON: SEPL / FRA: 134) (ISIN NGSEPLAT0008), both of which are listed in London, then transferred custody of the shares to Lagos and sold them there, usually to someone who wanted to have their money go the other way. I am reliably informed this is still done to this day.
Nigeria currently has 50,000 mobile phone towers, but it needs another 70,000 if estimates of the country's telecoms regulator are correct. The leading operator of such towers in Nigeria is IHS Holding (NYSE: IHS) (ISIN KYG4701H1092), which is listed on the New York Stock Exchange.
Investors in countries like Nigeria should look out for basic industries that will benefit from consumers gaining more purchasing power. Companies whose name will make immediate sense to anyone include Guinness Nigeria (NGX: GUINNESS) (ISIN NGGUINNESS07), Unilever Nigeria (NGX: UNILEVER) (ISIN NGUNILEVER07), Nestlé Nigeria (NGX: NESTLE) (ISIN NGNESTLE0006), and Lafarge Africa (NGX: WAPCO) (ISIN NGWAPCO00002). These are all local subsidiaries of large Western companies, and their stocks are listed on the Lagos Stock Exchange.
Other companies have names that will appeal to anyone who has seen how such frontier markets build basic infrastructure. Dangote Cement (NGX: DANGCEM) (ISIN NGDANGCEM008) is one such name, and one that is associated with Aliko Dangote, who sometimes gets ranked as Africa's richest man.
🇿🇲 Zambian energy business registers US$200m green bond, country's first (Capital Markets Africa)
Bond proceeds will support investment into renewable power generation, mainly solar and wind
Copperbelt Energy Corporation (CEC) Plc (LuSE: CECZ), Zambia’s largest private power utility, has announced the registration of its US$200 million green bond on the sidelines of the ongoing COP28 Climate Summit in Dubai. The green bond is Zambia’s first.
CEC is one of the Lusaka Securities Exchange's most actively traded stocks. The company’s share price has risen 98% for the year to date. Last year, it recorded a net income of US$50.8 million, down slightly from the previous year when it reached US$51.2 million.
🇳🇱 🇬🇧 Unilever: New CEO Making Changes (Seeking Alpha) $
Unilever (NYSE: UL) is undergoing a management change and starting fresh with a new approach, showing potential for a turnaround.
The valuation gap between Unilever and its competitor Procter & Gamble (NYSE: PG) is widening, suggesting undervaluation of Unilever.
Unilever has a number of key strengths, including its strong position in emerging markets and a well-diversified and innovative product portfolio.
🇵🇱 Text SA: Another Compounding Machine (Compounding Quality) $
An Owner-Operator quality stock that translates almost all revenue into pure cash.
Let’s start with a beautiful quote from Chris Mayer: “A lot of beautiful companies can be found in Poland.”
Text SA (WSE: TXT / LON: 0QTE / FRA: 886 / OTCMKTS: LCHTF) is a global provider of solutions for managing online business communications, generating leads, and selling online.
The Company offers its solution under a SaaS (Software as a Service) model. They are used for managing text communication with customers both in business-to-consumer (B2C) and business-to-business (B2B) sectors.
Text SA focuses mainly on the United States. One third of revenues are generated in the US and two-thirds of sales are derived from English-speaking countries. Text SA is headquartered in Poland but Poland only accounts for 2% of the company’s revenues.
🇦🇷 Grupo Financiero Galicia: Risk-On For Argentina's Largest Private Sector Bank Into 2024 (Seeking Alpha) $
Grupo Financiero Galicia Sa (NASDAQ: GGAL) reported Q3 earnings highlighted by continued profitability despite the challenging macro environment in Argentina.
The Presidential election victory of pro-markets Javier Milei could be positive for Grupo Financiero Galicia to consolidate its market share from government-owned banks.
The stock is a good option to gain exposure to the high-level trends in Argentina where there is building optimism for its long-term outlook.
🇦🇷 Transportadora de Gas del Sur Trades At Fair Value And Is Not An Opportunity (Seeking Alpha) $
Transportadora de Gas del Sur Sa (NYSE: TGS) operates half of Argentina's natural gas network and has a natural gas derivative liquids processing facility.
TGS' recent 9M23 performance aligns with previous forecasts, with the transportation segment at breakeven, the liquids segment experiencing a 32% decrease in operating profit, and the midstream segment showing growth.
The company's future forecasts suggest potential operating profits of $390 million in FY25, leading to a fair value assessment and a recommendation to hold TGS shares
🇦🇷 Pampa Also Trades At Fair Value Waiting For The New President (Rating Downgrade) (Seeking Alpha) $
Pampa Energia Sa (NYSE: PAM) is an Argentinian energy company involved in electricity generation, gas and oil extraction, and petrochemicals.
The company's electricity generation segment has underperformed due to delays in peso adjustments, but its PPA contract generation is expected to remain profitable.
PAM plans to enter the oil market to overcome capacity constraints in natural gas, but the success of this venture remains uncertain.
A sum of parts valuations yields a conservative fair value at these levels, in expectance of regulations from the new Argentinian government.
🇦🇷 Beware Of Impending Dilution At Bioceres (Seeking Alpha) $
Bioceres Crop Solutions Corp (NASDAQ: BIOX) is an agricultural inputs company with a good profitable position in adjuvants and fertilizers, and R&D breakthroughs in genetic traits.
The company has shown lack of performance on its new business ventures, and its more mature business is not growing.
I fear dilution to repay impending maturities, or their refinancing in aggressive terms.
Further, I don't like some of the company's management governance practices, particularly regarding information disclosure.
🇨🇴 Bancolombia: An Undervalued Enticing Income Stock (Seeking Alpha) $
Bancolombia (NYSE: CIB / BVC: PFBCOLOM) faces headwinds in loans and deposits due to Colombia's economic slowdown, high inflation, and regulatory uncertainties.
The bank's loan portfolio extends across Colombia, Panama, Guatemala, and El Salvador, providing crucial geographical and revenue diversification.
CIB shows resilience with recovery trends, strong liquidity, and a positive net income margin.
Despite consumer loan issues and regulatory challenges, Bancolombia's recovery, robust ROE, and attractive valuation make it an appealing investment, boasting a dividend yield exceeding 10%.
Short-term challenges persist, but the Company's cautious 2024 GDP growth forecast aligns with expected improvements in the Colombian macroeconomic landscape.
🇵🇪 Cementos Pacasmayo Dividend Might Be At Risk (Rating Downgrade) (Seeking Alpha) $
Cementos Pacasmayo (NYSE: CPAC) is a major cement producer in Peru with a quasi-monopoly in the northern region.
The company is expected to grow alongside the Peruvian economy and offer a dividend with a good yield.
However, in a few years, the company may require better financing and should avoid excessive leverage.
Further, the dividend is potentially at risk in the short-term, which could make the company's stock price volatile.
🇺🇾 🇻🇬 Satellogic: Nice $140 Billion Market, Bad Investment (Seeking Alpha) $
Satellogic (NASDAQ: SATL) provides Constellations-as-a-Service, offering low-Earth observation satellites and multispectral imaging.
The company sees a $140 billion market opportunity in geospatial analytics for energy, forestry, and infrastructure.
Satellogic's lack of funds and slow growth make it an unattractive investment opportunity with a fair value of $2.21 per share.
🇺🇾 DLocal: One Of The Best Emerging Markets Bets (Seeking Alpha) $
Dlocal (NASDAQ: DLO) offers payment solutions and currency conversion services for businesses expanding into emerging markets.
The company reported strong financial results in Q3, with increased payments volume and gross profit, and reaffirmed its 2023 guidance.
DLO's valuation is attractive compared to its peers and presents a potential upside of 55% according to a DCF model.
🇺🇾 Arcos Dorados: Digital Growth Drives Earnings Growth (Seeking Alpha) $
Arcos Dorados Holdings Inc (NYSE: ARCO) operates McDonald's franchised restaurants in Latin America, with around half of the company's operations in Brazil.
The company has seen significant revenue growth and improved margins through its 3D strategy, driving digital revenue growth.
The stock seems to be priced with slight overvaluation with the growth that I expect, as the stock has heightened currency risks and geographical risks.
📰🔬 Further Suggested Reading
$ = behind a paywall
🌐 What would happen if throughput of the Suez and Panama canals were impaired at the same time? (Calvin's thoughts) $
A deep dive into the importance of the Panama and Suez Canals to global trade and an exploration of the threats they face and the opportunities and consequences those threats create
Let’s start by establishing why the Suez and Panama canals are so important. 15% of total world trade (measured in dollars using the formula cargo value passing via Suez / Panama canal / total global cargo values) goes through these two waterways every day - 12% via the Suez canal and 3% via the Panama Canal.
🇨🇳 Chinese auto exporters face costly detour after Red Sea attacks, expert says (Caixin) $
The recent spate of attacks against Israel-linked vessels could force cargo ships to divert from the key Red Sea shipping route, significantly increasing the cost and time of Chinese car exports to Europe, a logistics expert told Caixin.
The Red Sea sits at the entrance to the Suez Canal, which forms the shortest shipping route between Asia and Europe, making it crucial for trade between the two regions. Multiple commercial ships have been attacked or targeted in or around the Indian Ocean inlet since mid-November, including at least three Israel-linked ships, among which was the Galaxy Leader, a vehicle carrier seized by Yemeni rebels.
🇨🇳 Will China continue to grow? -- views from Weijian Shan (Ginger River Review) PDF File
In October, GRR published the translation of 经济增长的政策空间 Policy space for economic growth by 单伟建 Weijian Shan, one of the most influential private equity figures in Asia. The article is one of the most popular pieces GRR published in October. Today, we present you a newly-released piece by Mr. Shan: Will China Continue to Grow? [Update: The Chinese version 中国能否持续增长？is now available on Mr. Shan’s WeChat Account]
In this article, Mr. Shan takes stock of, based on 22 exhibits, what China has been really going through over the past five years, both interally and externally. At the end of the article, Mr. Shan answers the question "Will China continue to grow?"
The article breaks down into the following parts:
China's Challenges
China's Policy Space
Health of China's Banking System
China's Avenues for Growth
The U.S - China Trade War
China's Technological Progress
Demographic Bomb - or Bust
The China Opportunity
🇨🇳 Moody's Told Staff In China To Work From Home Ahead Of Downgrade To Country's Credit Outlook (Zero Hedge)
According to the FT, some Moody’s department heads in the country told associates on Friday that non-administrative staff in Beijing and Shanghai should not go into the office this week, they said.
“They didn’t give us the reason . . . but everyone knows why,” said one China-based Moody’s employee, referring to the request to work from home. “We are afraid of government inspections.”
🇨🇳 Millions drop out of China’s state health insurance system (FT) $
Rising premiums drive cash-strapped families to cancel coverage, fuelling fears about economic slowdown
🇭🇰 Hong Kong’s Stock Slump Triggers Wave of Brokerage Closures (Bloomberg Law) (Zero Hedge Reposting)
Thirty local brokerages have closed down this year, after a record 49 shut up shop in 2022, according to Hong Kong stock exchange data. That comes as Wall Street banks lay off dealmakers due to a plunge in initial public offerings.
“This wave of shutdowns and layoffs at brokerages is the worst I’ve ever seen,” said Edmond Hui, chief executive officer of Hong Kong-based brokerage Bright Smart Securities. “The key lies in improving the liquidity of the market. Now everyone is struggling. I simply don’t see any light at the end of the tunnel.”
Small-and medium-sized brokerages, whose revenue mainly comes from trading commissions and margin businesses, are bearing the brunt of the market downturn.
🇮🇩 Indonesia hopes global investors will follow the carmakers (FT) $
The south-east Asian country has the potential to develop wealth management offerings if per capita income improves
At a conference held by UOB Asset Management in March, Colin Ng, head of Asia equities for the financial services group, called Indonesia, a “sitting jackpot”. “When you invest in Indonesia, you are basically investing in the future,” he said.
🇮🇳 🇭🇰 India’s NSE set to take Hong Kong’s spot among world’s largest markets (FT) $
Recent share price surge is helping exchange contest seventh place in global rankings
🇻🇪 🇬🇾 The Venezuela-Guyana Dispute Explained In 3 Charts (Visual Capitalist)
Recent events, however, have reignited the dispute. Between 2015 and 2021, Guyana announced the discovery of about 8 billion barrels of oil, elevating a country with fewer than a million people to a prominent position among the top nations in terms of oil reserves. ExxonMobil, leading a consortium, operates three offshore projects in the country, earning nearly $6 billion in 2022 alone.
With a population of around 125,000 people, the disputed region is full of dense rainforest, making a military incursion from Venezuela feasible only by sea or through the Brazilian state of Roraima. Brazil, maintaining good diplomatic relationships with both countries, has already increased military personnel on the border. The U.S. announced joint military flight drills in Guyana on December 7.
🇵🇪 Peru's deadly gold mine attack highlights growing security risk, costs (Reuters)
A dramatic and deadly attack on a gold mine in Peru on Saturday has thrown a spotlight on illegal miners and criminal gangs targeting mines, which in recent years has left scores dead and cost billions of dollars in losses, according to industry and government officials.
Nine workers were killed and 10 others gravely injured in the latest attack where men armed with explosives raided and took hostages at a mine belonging to Poderosa (BVL: PODERC1), one of Peru's top gold producers.
The impact is showing up on balance sheets, a headache for firms and Peru's government as it battles to dig out of a recession, with mining the country's main economic engine.
📅 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):
EgyptEgyptian PresidencyDec 10, 2023 (d) Confirmed Mar 26, 2018Chile Referendum Dec 17, 2023 (t) Confirmed Sep 4, 2022
Bangladesh Bangladeshi National Parliament Jan 7, 2024 (d) Confirmed Dec 30, 2018
Taiwan Taiwanese Legislative Yuan Jan 13, 2024 (d) Confirmed Jan 11, 2020
Taiwan Taiwanese Presidency Jan 13, 2024 (d) Confirmed Jan 11, 2020
Pakistan Pakistani National Assembly Feb 8, 2024 (d) Confirmed Jul 25, 2018
Indonesia Indonesian Regional Representative Council Feb 14, 2024 (t) Confirmed Apr 17, 2019
Indonesia Indonesian Presidency Feb 14, 2024 (t) Confirmed Apr 17, 2019
Indonesia Indonesian House of Representatives Feb 14, 2024 (t) Confirmed Apr 17, 2019
Russian Federation Russian Presidency Mar 17, 2024 (t) Tentative Mar 18, 2018
South Korea South Korean National Assembly Apr 10, 2024 (d) Confirmed Apr 15, 2020
India Indian People's Assembly Apr 30, 2024 (t) Tentative Apr 11, 2019
Panama Panamanian National Assembly May 5, 2024 (t) Confirmed May 5, 2019
Panama Panamanian Presidency May 5, 2024 (t) Confirmed May 5, 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
Croatia Croatian Assembly Jun 30, 2024 (t) Date not confirmed Jul 5, 2020
Mongolia Mongolian State Great Hural Jun 30, 2024 (t) Tentative Jun 24, 2020
Georgia Georgian Parliament Oct 31, 2024 (t) Tentative Oct 31, 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):
Chi Ko Holdings Limited CKHL, EF Hutton, 1.7M Shares, $4.00-5.00, $7.8 mil, 12/11/2023 Week of
We are a holding company incorporated in the Cayman Islands with operations conducted by our Hong Kong subsidiary, Chiu & Lee Partners. (Incorporated in the Cayman Islands)
We are a one-stop-shop construction service provider and established construction contractor in Hong Kong with over 40 years of experience in the construction industry, principally providing (i) foundation and site formation work, which mainly includes piling work, excavation and lateral support work and pile cap construction, (ii) general building work and associated services, which mainly includes development of superstructures, alteration and addition work; and (iii) other construction work, which mainly includes demolition work. We are able to undertake construction work as either a main contractor or a subcontractor.
We are a company principally engaged in construction work in Hong Kong. We have obtained the relevant registration for our business operations via our key Operating Subsidiary, Chiu & Lee Partners, as a general building contractor from the Buildings Department of Hong Kong since 1999 and as a specialist contractor in the demolition work category, foundation work category and site formation work category from the Buildings Department of Hong Kong since 2006.
**Note: Net income and revenue figures are in U.S. dollars for the fiscal year that ended March 31, 2023.
(Note: Chi Ko Holdings Limited set terms for its IPO in an F-1/A filing dated May 30, 2023: 1.74 million shares at $4.00 to $5.00 to raise $7.83 million. Chi Ko Holdings Limited filed its F-1 on March 16, 2023, without disclosing terms for its IPO. The shares in the IPO will be offered by the Cayman Islands holding company and not by the underlying business in Hong Kong.)
COR3 & Co. (Holdings) Ltd. COC, Eddid Securities USA, 3.9M Shares, $4.00-5.00, $17.4 mil, 12/11/2023 Week of
COR3 & Co. (Holdings) Limited was formed on March 14, 2023, under the laws of the Cayman Islands. Our founding operating entity, HI Style (M) was founded in 2008. (Incorporated in the Cayman Islands)
We are principally engaged in the retail of fashion apparel through our four brands, (i) HI Style, (ii) Fave, (iii) SUB and (iv) Bottled Dream. HI Style focuses on menswear products while Fave focuses on womenswear products. SUB is a brand designed for those seeking high quality material clothing and timeless apparel options, while Bottled Dream caters to the preferences of our younger customers seeking a more casual look and feel.
We are committed to providing our customers with affordable, trendy, and comfortable clothing that fits their lifestyle. We empower our customers to express themselves through fashion by connecting them with a diverse range of fashion products. We sell 1,833 and 5,010 products across our (i) e-commence platforms (our website and our app, namely, the “HI STYLE App”) and (ii) retail stores respectively. We operate 42 retail stores, employing more than 250 staff across Malaysia and Singapore. We believe our retail strategy allows us to interact more directly with and gain insights from our customers while providing us with greater control of our brand.
Our products consist of knitted and woven apparel such as T-shirts, trousers, hoodies, jackets, dresses and shorts for men and women.
Our vision is to offer fashionable apparel products at affordable prices and reliable quality, improve the satisfaction of our customers and provide opportunities for growth for our employees. The founding principles established by our founders drive our distinctive corporate culture and promote a set of core values that attracts passionate and motivated employees. We believe the passion and dedication of our management and employees allow us to successfully execute our business strategy, enhance brand loyalty and create a distinctive connection with our customers. To this end, we have successfully achieved ISO 9001:2015 certification. This certification affirms that organizations attaining it have effectively showcased their capability to consistently deliver products and services that align with customer requirements, while actively striving to improve customer satisfaction.
Our Competitive Strengths
Established network of retail stores covering selected strategic geographical locations. Our retail stores are located in shopping malls, department stores and free-standing premises in prime locations to attract our target customers. In Singapore, our retail store network is located in the areas of Yishun, Hougang and Bugis. Our retail stores in Malaysia are located in Negeri Sembilan, Selangor, Wilayah Persekutuan, Melaka, Johor, Penang, Perak, Pahang, Kelantan, and Sabah. We believe our established network of retail stores will facilitate the promotion and demand for our apparel products to both existing and new customers, as well as the expansion of our business.
Our websites and the HI STYLE App are intuitive and user-friendly resulting in a compelling user experience. We have developed our websites and the HI STYLE App to offer an intuitive and user-friendly experience and ensure an enhanced user journey. Our e-commerce platforms have undergone further improvements to optimize their interface, enabling seamless navigation for a large volume of visitors. With the capacity to showcase over 1,800 apparel products, our platforms cater to diverse customer preferences. In addition, our robust web systems ensure secure transactions and efficient maintenance, minimizing any downtime. Leveraging the power of data analytics, we proactively analyze our online customers’ preferences and anticipate future demand, enabling us to strategically plan our product offerings for upcoming seasons.
Superior design and sourcing. Drawing upon our management team’s extensive experience and expertise in the apparel industry, we possess an unparalleled understanding of manufacturing, design, sourcing, and supply capabilities. This wealth of knowledge enables us well to both sustain and strengthen our existing business relationships with purchasing companies in Malaysia. These companies boast an extensive network of suppliers in the PRC and Bangladesh, which opens up exciting opportunities for us in areas such as cost effectiveness and product variety. Looking ahead, we are focused on further expanding and diversifying our network of purchasing partners in Malaysia. By broadening our connections and forging new collaborations, we aim to enhance our ability to negotiate highly competitive terms, reducing our reliance on any single vendor and ensuring a resilient and advantageous procurement strategy.
Strict quality assurance and control measures. We are committed to ensuring that our apparel products continue to meet the highest standards and have implemented strict quality assurance and control measures. These measures include inspecting material samples during the design stages, conducting quality control checks on goods prior to shipment and upon arrival, and ensuring that all goods leaving the warehouse meet quality standards. The Company also implements strict quality control measures for selecting purchasing companies and suppliers, vetting them for compliance with international manufacturing guidelines and local regulations. Factors considered when selecting suppliers include their experience, reputation, technical capabilities, financial strength, production capacity, quality control effectiveness, ethical practices, and past compliance record.
Experienced management team. Bolstered by our executive management team’s extensive experience in the apparel industry, we have successfully cultivated sustainable business strategies, demonstrated foresight in anticipating fashion trends, effectively managed risks, navigated through the challenges posed by the COVID-19 pandemic, and capitalized on profitable market opportunities. As a testament to our growth, we presently employ a dedicated workforce of over 250 individuals and our product offerings are available in 42 esteemed retail stores across Malaysia and Singapore. With a firm belief in the skills, qualifications, commitment, and strong leadership abilities of our management team, we are poised to not only sustain our business but also drive its continued expansion. Looking ahead, we aim to leverage our collective expertise to drive further growth.
Respect for Design Rights. At the core of our values, we are committed to originality in our designs, ensuring that we uphold the utmost respect for third-party intellectual property rights, specifically design rights. Recognizing the legal implications associated with registered designs, we have proactively established a robust design policy. Central to this policy is a dedicated design team that diligently reviews and engages in thorough discussions to identify and address potential areas of infringement. By prioritizing a comprehensive approach to design, we actively safeguard against any violation of intellectual property rights, maintaining the integrity of our brand and fostering a culture of creativity and innovation. Moving forward, our commitment to originality remains steadfast as we continue to uphold the highest standards of ethical design practices.
(COR3 & Co. (Holdings) Ltd. filed its F-1 on Nov. 20, 2023, and disclosed terms for its IPO: 3.875 million ordinary shares at $4.00 to $5.00 to raise $17.44 million. Of the 3.875 million shares in the IPO, the company is offering 2.25 million shares. Selling stockholders are offering 1.625 million shares. The company will NOT receive any proceeds from the sale of the selling stockholders’ shares.)
J-Long Group LimitedJL, Eddid Securities USA, 1.4M Shares, $4.00-6.00, $7.0 mil, 12/11/2023 Week of
We are a holding company incorporated in the Cayman Islands. Our operations are conducted by our Hong Kong subsidiary, JLHK. We manufacture and distribute reflective and non-reflective garment trims. We have been an authorized distributor of 3M Scotchlite reflective materials since 2000. (Incorporated in the Cayman Islands)
We are an established distributor in Hong Kong of reflective and non-reflective garment trims including, among others, heat transfers, fabrics, woven labels and tapes, sewing badges, piping, zipper pullers and drawcords. We have nearly 30 years of experience in the apparel industry and have served over 100 international outerwear and sportswear brands, uniform and safety workwear brands and fashion brands across the world. We offer a wide range of services to cater to our customers’ needs in reflective and non-reflect garment trims, including market trend analysis, product design and development and production and quality control. We work with our customers on their product requirements for the upcoming season, and we usually provide various suggestions on the product design and use of appropriate materials using our know-how and extensive industry knowledge we have accumulated over the years.
Competitive Strengths
We believe the following competitive strengths differentiate us from our competitors:
• Established market presence in the reflective materials industry with nearly 30 years of operating history;
• Diversified product portfolio consisting of reflective and non-reflective garment trims;
• Commitment to environmental sustainability and quality control;
• Strong and stable network of materials suppliers and manufacturing services suppliers;
• Stable business relationships with our customers; and
• Experienced and professional management team.
Our Strategies
We intend to pursue the following strategies to further expand our business:
• Strengthen our design and development capabilities;
• Expand our regional sales presence and marketing capabilities;
• Selectively pursue acquisitions and strategic investments; and
• Increase warehouse and storage capacity.
Corporate History and Structure
We are an established distributor in Hong Kong of reflective and non-reflective garment trims including, among others, heat transfers, fabrics, woven labels and tapes, sewing badges, piping, zipper pullers and drawcords. We have nearly 30 years of experience in the apparel industry and have served over 100 international brands globally, including outerwear and sportswear brands, uniform and safety workwear brands and fashion brands. We offer a wide range of services to cater to our customers’ needs in reflective and non-reflective garment trims, including market trend analysis, product design and development and production and quality control. We work with our customers on their product requirements for the upcoming season, and we usually provide various suggestions on the product design and use of appropriate materials using our know-how and extensive industry knowledge we have accumulated over the years.\On September 20, 2023, the Controlling Shareholder entered into individual subscription agreements with the pre-IPO shareholders, Capital Summit Enterprises Limited, Cherish Gloss Group Limited, Jipsy Trade Limited, Summer Explorer Investments Limited, Wise Total Solutions Group Limited, and Max Premier Enterprises Limited. According to these agreements, the Controlling Shareholder agreed to sell and each of the pre-IPO shareholders agreed to purchase 556,875 shares of JL.
*Note: Net income and revenue are for the year ended March 31, 2023.
(J-Long Group Limited filed an F-1/A on Nov. 9, 2023, and disclosed terms for its IPO: 1.4 million ordinary shares at a price range of $4.00 to $6.00 to raise $7.0 million. Background: J-Long Group Limited filed its F-1 on Oct. 18, 2023, without disclosing terms for its IPO. J-Long Group Limited submitted confidential IPO documents to the SEC on Dec. 30, 2022.)
Linkage Global Inc. LGCB, EF Hutton, 1.5M Shares, $4.00-6.00, $7.5 mil, 12/11/2023 Week of
(Incorporated in the Cayman Islands)
Linkage Cayman is a holding company incorporated in the Cayman Islands with no material operations of its own. Linkage Cayman conducts its operations through the Operating Entities in Japan, Hong Kong, and mainland China. The Ordinary Shares offered in this prospectus are shares of the Cayman Islands holding company instead of shares of the Operating Entities in Japan, Hong Kong, and mainland China. Holders of our Ordinary Shares do not directly own any equity interests in the Operating Entities, but will instead own shares of a Cayman Islands holding company.
As a cross-border e-commerce integrated services provider headquartered in Japan, through the Operating Entities, we have developed a comprehensive service system comprised of two lines of business complementary to each other, including (i) cross-border sales and (ii) integrated e-commerce services.
Cross-border Sales
Cross-border sales operations were initially launched in 2011 in Japan through our subsidiary, EXTEND. Products are sourced from Japanese and Chinese manufacturers and brands, together with our private label smart products, and are included as the Operating Entities’ internal “recommended” or “strictly selected” product collections for Customers to select and purchase. Since our inception, the Operating Entities have selected approximately 10,000 suppliers and 100,000 featured products. Customers are mainly comprised of sellers on various e-commerce platforms, such as Amazon, Lazada, Shopee, Wish, Coupang, Yahoo, WOWMA, Rakuten, Tmall, Taobao, JD, and TikTok, and independent website operators.
The Operating Entities use a multi-channel marketing strategy. Online, the Operating Entities approach Customers through (i) advertising promotion on their own official websites (www.jp-extend.com and www.whale.xin), major e-commerce platforms, social media, search engines, and independent websites, (ii) sending email marketing to potential customers, (iii) and referrals from existing Customers. Offline, the Operating Entities approach Customers mainly through attending exhibitions. See “Business — Business Model — Marketing.” The Customers place orders directly with the Operating Entities through email. Following receipt of orders, the Operating Entities either place orders with suppliers who ship the products directly to the Customers, or deliver the orders from their own warehouses in Japan to the Customers via third-party delivery companies. For the six months ended March 31, 2023 and the fiscal years ended September 30, 2022 and 2021, revenue derived from cross-border sales operating was $6.39 million, $17.91 million, and $12.42 million, accounting for approximately 70.80%, 81.29%, and 80.28% of our total revenue for the respective periods.
A majority of the Operating Entities’ cross-border sales operations have historically been conducted in Japan, and since 2011, the Operating Entities have been expanding their operations to Hong Kong and mainland China markets. Cross-border sales operation is the foundation of the comprehensive service system we are building. Over the years of experience the Operating Entities have encountered with e-commerce sellers in cross-border sales operation, they identified a large gap between the demands for placing advertisements, and limited resources and channels to advertise, especially on social media platforms, and have identified significant growth potential in China’s rapidly developing e-commerce market. Therefore, in 2016, HQT NETWORK was established in Hong Kong, for the provision of digital marketing services; and in 2021, we established Chuancheng Digital and Chuancheng Internet in China, offering cross-border sales and Integrated e-commerce training services, respectively.
For the fiscal year ended September 30, 2021, among our revenues derived from cross-border sales operations, 99.48%, 0.52%, and 0% were derived from Japan, mainland China and Hong Kong, respectively. For the fiscal year ended September 30, 2022, among our revenues derived from cross-border sales operations, 92.23%, 5.46%, and 2.31% were derived from Japan, mainland China and Hong Kong, respectively. For the six months ended March 31, 2023, among our revenues derived from cross-border sales operations, 85.65%, 8.95%, and 5.40% were derived from Japan, mainland China and Hong Kong, respectively.
Through the subsidiary, HQT NETWORK, in Hong Kong, the Operating Entities connect Customers and other cross-border e-commerce sellers and suppliers (collectively, the “Merchants”) with social media platforms to provide digital marketing services to Merchants. HQT NETWORK has cooperated with Google Asia Pacific Pte., Ltd. (“Google”) since 2017 and became an authorized agent of Google in 2018, through making use of the vast suppliers’ and Customers’ data that the Operating Entities have collected from their cross-border sales operation
To diversify our revenue sources, in 2021, the Operating Entities started offering services, including e-commerce operation training and software support services. The recorded e-commerce operation training courses teach Customers skills and information needed to successfully operate and grow their online shops. The Operating Entities also offer proprietary software tools that facilitate Customers with their day-to-day e-commerce operations, including product shelving, supply chain management, and operational management.
**Note: Revenue and net income are in U.S. dollars for the 12 months that ended March 31, 2023.
(Linkage Global Inc. filed its F-1 and set terms for its IPO in an SEC filing dated Sept.1, 2023: 1.5 million shares at $4.00 to $6.00 to raise $7.5 million.)
Lucas GC Limited LGCL, Prime Number Capital/ JonesTrading, 3.1M Shares, $6.00-7.00, $20.0 mil, 12/11/2023 Week of
We are the largest technology-driven online agent-centric human capital management service provider targeting professionals based on Platform-as-a-Service, or PaaS, in China, in terms of the number of active users in the human resources industry as of June 30, 2022, and total net revenues for the year ended Dec. 31, 2021.. (Incorporated in the Cayman Islands)
As a company empowered by artificial intelligence, or AI, data analytics, and blockchain technologies, we are committed to digitalizing and intellectualizing the entire human capital management process. We provide a platform to support trusted private social networks of professionals, through which we provide services consisting of recruitment services, outsourcing services, and other services such as information technology services and training services. Our users are primarily professionals who work in human resources-related functions. Our corporate customers are corporations with recruitment, training, sales lead generation and outsourcing demands.
As of Dec. 31, 2022, we had approximately 431,220 active registered users on our proprietary platforms, Star Career and Columbus, through which the users of our platforms will receive customized job recommendations and work as talent scouts to source suitable candidates for our corporate customers through their own trusted private social network, as well as receive trainings and other value-added services.
Our proprietary human capital management PaaS is developed based on patented, novel and advanced AI and machine-learning algorithms which are based on unparalleled access to big data assets that can derive actionable insights and knowledge for recruitment and other services such as training. In order to upgrade themselves with knowledge in human resources and basic labor law and financial skills, users on our platform are able to receive trainings and obtain the Certified Career Resources Planner Certificate, or CCRP Certificate, which will certify the user’s possession of fundamental knowledge in human resources, labor law and finance.
*Note: Net income and revenue are in U.S. dollars for the 12 months that ended June 30, 2023.
(Note: In an F-1/A filing dated Oct. 27, 2023, Lucas GC Limited updated its financial statements for the period that ended June 30, 2023.)
(Note: Lucas GC Limited increased the size of its IPO, changed underwriters and updated its financial statements to include the year ended Dec. 31, 2022, in an F-1/A filing dated May 31, 2023: The IPO’s size was increased to 3.07 million shares – up from 750,000 shares – and the price range was cut to $6.00 to $7.00 – down from $8.00 to $9.00 – to raise $20.0 million. The new estimated IPO proceeds of $20.0 million represent an increase of 213.5 percent from the previous estimate of $6.38 million under the IPO’s original terms. Prime Number Capital was named the new book-runner, replacing The Benchmark Company and Valuable Capital.)
(Background: Lucas GC Limited filed an F-1/A dated March 22, 2023, in which it disclosed terms for its micro-cap IPO: 750,000 shares at $8.00 to $9.00 to raise $6.38 million ($6,375,000). The stock in the IPO will be offered by the Cayman Islands-incorporated holding company and not by the underlying business in China. Lucas GC Limited filed its F-1 on Feb. 28, 2023; it had submitted confidential IPO documents to the SEC on Nov. 21, 2022.)
New Century Logistics (BVI) Ltd.NCEW, Prime Number Capital, $2.5M, $4.00-5.00, $11.3 mil, 12/11/2023 Week of
We are the holding company for a Hong Kong-based business specializing in the logistics of air and ocean freight forwarding. (Incorporated in the British Virgin Islands)
We are a well-established freight forwarding service provider founded and based in Hong Kong. Our history can be traced back to 2002 when NCL (HK) was incorporated and when it commenced its operation as a freight forwarder in 2004. We provide air and ocean export and import freight forwarding services ranging from the sale of cargo space, cargo pick up, off-airport air cargo security screening, palletization, preparation of shipping documentation, arrangement of customs clearance to cargo handling at ports. Since our inception, we have offered routes to over 140 countries to our customers. The Company is managed and run by a group of professionals with over 20 years of combined expertise in the Air and Ocean freight industries in Hong Kong. We have a robust network that works closely with well-established agents to manage both incoming and outgoing traffic for all other nations as well. These representatives are handpicked to maintain a uniformly high standard of service for our clients all across the world.
*Note: Net income and revenue are in U.S. dollars for the year that ended Sept. 30, 2022.
(New Century Logistics (BVI) Ltd. filed an F-1/A dated Oct. 10, 2023, in which it named Prime Number Capital as its sole book-runner, replacing Craft Capital Management. Background: New Century Logistics (BVI) Ltd. filed its F-1 dated Aug. 21, 2023, in which it disclosed the terms for its micro-cap IPO: 2.5 million ordinary shares at $4.00 to $5.00 to raise $11.25 million.)
Trident Digital Tech Holdings TDTH, US Tiger Securities, 1.9M Shares, $8.00-10.00, $16.9 mil, 12/11/2023 Week of
We are a leading digital transformation enabler in the small and medium enterprise, or the SME segment of the e-commerce enablement and digital optimizing services market in Singapore. We offer business and technology solutions which are designed to optimize our clients’ experiences with their customers by driving digital adoption and self-service. (Incorporated in the Cayman Islands)
We started our journey in 2014 as a full-service information technology company headquartered in Singapore. Since then, we recognized and captured the opportunities arising from the global fast-growing digital adoption trend in various industries and rapidly developed as a leading digital transformation enabler in the SME segment of e-commerce enablement and digital optimizing services market in Singapore. According to the Frost & Sullivan Report, among the Singapore-based companies who have been approved to participate in the SMEs Go Digital program led by Infocomm Media Development Authority, a statutory board under the Singapore Ministry of Communications and Information of the Republic of Singapore, we ranked fourth, contributing to 1.5% of the SME segment of the e-commerce enablement and digital optimizing services market in Singapore in 2022.
The SMEs Go Digital program is to provide SMEs in Singapore with a variety of digital solutions and services, such as e-commerce platforms, digital marketing tools, and data analytics software. The program also offers government grants to eligible SMEs to subsidize the costs, driving digital adoptions.
Our clients and prospective clients are faced with transformative business opportunities due to advances in software and computing technology. These organizations are dealing with the challenge of having to reinvent their core products, services, processes and systems rapidly and position themselves as “digitally enabled.” The journey to the digital future requires not just an understanding of new technologies and new ways of working, but a deep appreciation of existing technology landscapes, business processes and practices. We have been a navigator for our clients as they ideate, plan and execute on their journey to a digital future through our solutions and services, comprising:
• Business consulting: We support clients to define and deliver technology-enabled transformations of their business. Equipped with the complete value chain approach, our suite of offerings ranges from brand proposition, multi-channel commerce and digital marketing to improve customer experience and increase customer acquisition, to insights and real-time predictive analysis for efficient decision-making and optimizing processes.
• IT customization: We offer solutions and services to plan, design, operate, optimize and transform business processes. We support clients to get the best value from technology by developing an IT strategy, optimizing applications and infrastructure, implementing IT operating models, and governing their technical architecture for reliability and security.
We provide customized solutions and services that address the specific needs of clients in our strategic vertical markets. Our primary vertical industries include e-commerce, food and beverage, fintech, healthcare and service, wholesale and retail that are fast-growing and have increasing level of digitalization potentials. Our configurable technology integrates seamlessly into our clients’ systems, empowering our clients to manage, improve their businesses and to win. As of June 30, 2023, we served over 200 clients across our core verticals such as food and beverage, wholesale and retail.
Digital technology continues to impact our world through its transformative capability and pervasive impact. Our management believes we have a successful track record of applying our proprietary technologies to respond to changing business needs and evolving client demands. Leveraging such experiences, we plan to launch a Web 3.0 e-commerce platform whereby customers and merchants can transact in a transparent and secure way, or Tridentity, in the fourth quarter of 2023.
**Note: Net loss and revenue figures are for the 12 months that ended June 30, 2023.
(Trident Digital Tech Holdings filed an F-1/A on Oct. 19, 2023, in which it disclosed the terms for its IPO: 1.875 million American Depositary Shares (ADS) at a price range of $8.00 to $10.00 to raise $16.88 million. Each ADS represents 10 ordinary shares, the prospectus says. Background: Trident Digital Tech Holdings filed its F-1 on Oct. 4, 2023.)
ZKH Group Ltd.ZKH, Deutsche Bank/ China Renaissance/ CICC, 4.0M Shares, $15.50-17.50, $66.0 mil, 12/11/2023 Week of
(Note: The Cayman Islands-incorporated holding company is offering the ADS in the IPO – and NOT the underlying businesses operating in China.)
We are a leading MRO procurement service platform in China. We provide one-stop MRO procurement and management services for our customers, and offer digital and fulfillment solutions for participants along the industry value chain. We spearhead digital transformation of the MRO industry for cost reduction and efficiency improvement. *Note: “MRO” stands for “maintenance, repair and operations” and refers to materials used for maintenance, repair and operation purposes and that do not directly constitute final products. (Incorporated in the Cayman Islands)
ZKH Group Limited’s operating business involves providing a digital procurement network backed by distribution centers, warehouses and smart vending machines to supply our industrial customers with spare parts, chemicals, manufacturing parts, general consumables and office supplies. Our inventory covers 32 product lines, 17 million SKUs and 21,000-plus suppliers.
Our People’s Republic of China (PRC) subsidiaries are ZKH Industrial Supply and its subsidiaries, including but not limited to Shanghai Gongbangbang (GBB) Industrial Tech Co., Ltd., Shanghai Kunhe Supply Chain Management Co., Ltd. and Shenzhen Kuntong Smart Warehousing Technology Co., Ltd.
We serve 58,000-plus customers with a 91 percent retention rate.
We have built an efficient and digitalized fulfillment network to ensure timely and reliable fulfillment of our orders. Our nationwide fulfillment network consisted of 30 distribution centers, 90 transit warehouses and approximately 3,600 EVM smart vending machines as of Dec. 31, 2022.
Our ZKH platform includes the ZKH official website at https://www.zkh.com/, our mobile app, Weixin Mini-Program, and various interfaces. Our GBB platform includes the GBB official website at https://www.gongbangbang.com/, and our mobile app and Weixin Mini-Program.
**Note: Net loss and revenue figures are in U.S. dollars (converted from China’s renminbi) for the 12 months that ended Sept. 30, 2023.
(Note: ZKH Group Limited filed an F-1/A dated Dec. 8, 2023, in which it disclosed terms for its IPO: 4.0 million American Depositary Shares (ADS) at a price range of $15.50 to $17.50 to raise $66.0 million. Each ADS represents 35 Class A ordinary shares, the prospectus says. Background: ZKH Group Limited filed an F-1/A dated Nov. 27, 2023, in which it named Deutsche Bank as its “lead left” joint book-runner to replace Goldman Sachs and added CICC as a joint book-runner to work with Deutsche Bank and China Renaissance. In that Nov. 27, 2023, filing with the SEC, ZKH Group Limited also updated its financial statements for the period through Sept. 30, 2023. Background: ZKH Group Limited filed its F-1 for its U.S. IPO of American Depositary Shares (ADS) – no terms disclosed – on March 7, 2023. The placeholder figure of $100.0 million applies, but some IPO professionals believe that this IPO may raise as much as $200 million. ZKH Group Limited filed confidential IPO documents with the SEC on March 30, 2022.)
INNO Holdings INHD, AC Sunshine Securities, 2.5M Shares, $4.00-4.00, $10.0 mil, 12/12/2023 Tuesday
INNO Holdings Inc. is an innovative building-technology company with a mission to transform the construction industry with our proprietary cold-formed steel-framing technology and other building innovations. (Incorporated in Texas)
INNO recognized the inherent inefficiency and waste in traditional lumber-based construction techniques and sought to develop steel-based construction technologies to solve the problems.
INNO takes its name from “innovation” and is committed to the research and development of steel studs/tracks/headers, providing higher performance and greater efficiencies in all aspects of construction, making better structural solutions for both commercial and residential buildings, resulting in substantial labor cost savings, in our view.
The Company’s products are created using a combination of intelligent machines and cutting-edge techniques to provide an optimal design solution of framing for engineers, builders, and construction companies. We are currently a manufacturer of cold-formed-steel members and we offer a full range of services required to transform raw materials into precise steel framing products and prefabricated homes. We sell these finished products either to businesses or directly to customers. The finished products and cold-formed-steel members are used in a variety of building types, including residential, commercial, industrial, and infrastructure. We hope to transform the building industry by reducing construction times while providing more affordable, environmentally sustainable, and durable solutions compared to traditional construction materials and methods. We believe we are also well positioned to disrupt the construction industry, which now accounts for $10 trillion of the global economy.
We work with our customers to manufacture products in accordance with the customers’ drawings and specifications. Our work complies with specific national and international codes and standards applicable to the construction industry. We believe that we have earned our reputation through outstanding technical expertise, attention to detail, and a total commitment to excellence in customer service.
Our primary manufacturing operations are located on approximately five acres in Brookshire, Texas. Our facility houses state-of-the-art equipment that gives us the capability to manufacture 15,000 linear feet of product per day. We offer a full range of services such as structural designs, metal stud production, and preassembly of metal studs into steel wall panels, which are required to transform raw materials into finished products that are compliant with local building codes. Our manufacturing capabilities include fabrication operations, such as cutting, punching, forming and assembling, and machine operations, which includes computer numerical controlled (“CNC”) machine operations. We also provide support services for our manufacturing capabilities: manufacturing engineering (planning, fixture and tooling development, and manufacturing), quality control (inspection and testing), materials procurement, production control (scheduling, project management, and expediting), and final assembly.
**Note: Net loss and revenue figures are for the 12 months that ended June 30, 2023.
(Note: INNO Holdings priced its small-cap IPO on Dec. 4, 2023, in sync with the terms in its prospectus: 2.5 million shares at $4.00 to raise $10.0 million. The stock is expected to start trading next week – on Tuesday, Dec. 12, 2023 – on the NASDAQ.)
(Background: INNO Holdings filed an S-1/A on Sept. 13, 2023, disclosing terms for its IPO: 2.5 million shares at $4.00 to raise $10.0 million. The company is designating $4.00 as the estimated actual sales price for the IPO, although the prospectus shows the price range is $4.00 to $5.00. Selling stockholders will offer another 1.39 million shares (1,386,990 shares), according to the prospectus. The company will not receive any proceeds from the sale of the selling stockholders’ shares. INNO Holdings filed its S-1 on July 25, 2023, without disclosing terms for its IPO. The company submitted a confidential IPO filing to the SEC on Feb. 7, 2023.)
CCSC Technology International Holdings Ltd. CCTG, Revere Securities, 1.3M Shares, $4.00-6.00, $ 6.3 mil, 12/18/2023 Week of
(Note: CCSC Technology International Holdings Ltd. is a Hong Kong-based holding company, incorporated in the Cayman Islands. Its operating subsidiaries are in Hong Kong, mainland China and The Netherlands. The shares in the IPO are being offered by the Cayman Islands-incorporated holding company – and NOT by the underlying businesses in China and Europe.)
CCSC Technology – through its operating subsidiaries in Hong Kong, mainland China and The Netherlands – designs, manufactures and sells interconnect products customized for industrial, automotive and robotics products. CCSC Technology’s products include connectors, cables and wire harnesses. (Incorporated in the Cayman Islands)
Our product research and development capabilities has been a cornerstone of our success. Our engineering team that is responsible for product research and development currently has more than 30 employees, many of whom are experienced mechanical and electrical engineers. We own the rights to 68 patents registered with the intellectual property agency of mainland China and CCSC Interconnect DG has been certified as a High and New-Technology Enterprise (HNTE) (the “HNTE”) since 2016. We intend to continually invest in our engineering team and further enhance our research and development capabilities.
Note: Net income and revenue figures are in U.S. dollars for the 12 months that ended March 31, 2023.
(Note: CCSC Technology International Holdings Ltd. cut the size of its IPO to 1.25 million shares – down from 2.5 million shares – and kept the price range at $4.00 to $6.00 to raise $6.25 million, according to an F-1/A filing dated July 28, 2023. In that SEC filing on July 28, 2023, CCSC Technology International Holdings Ltd. also changed its sole book-runner to Revere Securities, replacing Joseph Stone Capital. Background: CCSC Technology International Holdings Ltd. filed its F-1 on March 22, 2023, and disclosed terms for its IPO: 2.5 million shares at $4.00 to $6.00 to raise $12.5 million. The Hong Kong-based holding company submitted confidential IPO documents to the SEC on June 15, 2022.)
🏁 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:
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:
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).
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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 (December 11, 2023) was also published on our website under the Newsletter category.