Emerging Market Links + The Week Ahead (December 4, 2023)
Measuring China's real GDP with the Li Keqiang Index, Mexico nearshoring + AMLO, Venezuela votes to invade oil rich Guyana, EM stock picks and the week ahead for emerging markets.
According to WikiLeaks, premier Li Keqiang once stated: “GDP figures are ‘man-made’ and therefore unreliable” (In other words, like USA GDP figures - see Shadow Government Statistics for more accurate estimates…). His approach to measuring China’s economy relied on three key indicators with the so-called Li Keqiang Index becoming a good jumping-off point from which Western economists have since added other elements of consideration.
Perhaps some other indicators that could be added is the “slowdown” in Chinese outbound tourism and how Chinese borrowers are starting to default in record numbers…
Meanwhile, Venezuela just had a bizarre Saddam Hussein style election over whether to invade their oil rich neighbor Guyana (see: CGX Energy (CVE: OYL / FRA: GXCN / OTCMKTS: CGXEF): A Speculative Guyana Oil Small Cap Stock and Frontera Energy (TSE: FEC / FRA: 3PY3 / OTCMKTS: FECCF): Hit By Colombia Unrest But Sees Coming Profitability and Operational Improvements) with 95%+ of voters giving their approval of each measure (Venezuelans approve takeover of oil-rich region of Guyana. What happens next?). Whether such an invasion will occur or whether its an excuse to get even more leverage over the Biden Administration remains to be seen.
Finally, I am waiting for my first order from Pinduoduo or rather PDD Holdings (NASDAQ: PDD)’s Temu. The prices on there for items that are relatively inexpensive to begin with compared with Amazon (Can Temu challenge Amazon or become the next Amazon?) are too good to pass up and worth giving the site a try - something I will write about probably later this month…
🔬 Emerging Market Stock Pick Tear Sheets
$ = behind a paywall / 🗃️ = Archived article
🇿🇦 Business Day TV Daily Stock Picks (October 2023)
Includes: Sibanye-Stillwater, TFG Limited (The Foschini Group), MultiChoice Group, Anglo-American, Mondi, MTN Group, Omnia Holdings, Gold Fields, Pick N Pay, Prosus, Richemont, British American Tobacco, Woolworths Holdings, Naspers, Life Healthcare Group Holdings, African Rainbow Minerals, LVMH Moët Hennessy Louis Vuitton, Shoprite, Bidcorp, ABSA, Sasol, Karooooo, Quilter, FirstRand, Impala Platinum Holdings, Spar, GrowthPoint, Attacq, Nepi Rockcastle, Zeda, Glencore, Adevinta ASA and Aspen Pharmacare Holdings
📰🔬 Emerging Market Stock Picks / Stock Research
$ = behind a paywall / 🗃️ = Archived article
🇨🇳 China’s Bank of Communications added to global too-big-to-fail banks list (Caixin) $
China’s Bank of Communications (SHA: 601328 / HKG: 3328 / FRA: C4C / OTCMKTS: BKFCF / BCMXY) has been added to the list of global systemically important banks by the Financial Stability Board (FSB), becoming the fifth Chinese state-owned banks on the “too-big-to-fail” list.
Bank of Communications joined Bank of China (SHA: 601988 / HKG: 3988 / FRA: W8V / OTCMKTS: BACHY / BACHF), Industrial and Commercial Bank of China (HKG: 1398 / SHA: 601398 / FRA: ICKB / OTCMKTS: IDCBF), China Construction Bank (HKG: 0939 / SHA: 601939 / OTCMKTS: CICHY / CICHF) and Agricultural Bank of China (SHA: 601288 / HKG: 1288 / OTCMKTS: ACGBY / ACGBF) on the global list of banks whose systemic risk is deemed to be of such importance that the banks' failure would trigger a wider financial crisis and threaten the global economy.
🇨🇳 Pinduoduo (PDD US): TEMU at Center Stage (SmartKarma) $
Stock rally on strong revenue growth suggests TEMU will be at center stage of the investment thesis for PDD Holdings (NASDAQ: PDD) down the road.
Besides soaring GMV, TEMU achieved blowout performance likely due to much higher-than-expected take-rate and disciplined marketing, resulting in narrower-than-expected losses.
We expect the company's growth will even accelerate in 4Q23 and generate adjusted net profit of US$12 bn for FY24, with a target market cap of US$240 bn (20xPE).
🇨🇳 Cango shifts gears with merger of platforms, focus on inventory risk control (Bamboo Works)
The company said it will combine its new and used car services into a single platform, as a growing number of dealers engage in both businesses
Cango (NYSE: CANG) will merge its new and used car platforms onto a single service, in a major tweak to its new business model as a car-trading services provider
The company forecast its fourth-quarter revenue would drop sharply as it becomes more conservative in the current market where half of dealers are losing money
🇨🇳 East Buy ditches tuition to become pure e-commerce player (Bamboo Works)
The former leader in online education is shedding its remaining tutoring business to concentrate on livestreaming and online product sales
East Buy Holding (HKG: 1797 / OTCMKTS: KLTHF) is selling its tutoring business to its parent, New Oriental Education (NYSE: EDU), at a high price while also raising HK$1.63 billion from an in-group share placement
The company has set up a paid membership system for e-commerce livestreaming in China, emulating Walmart’s “Sam’s Club”
🇨🇳 ATRenew chases new growth with refurbishment, new Apple partnership (Bamboo Works)
The recycling specialist said its sales of refurbished products more than doubled in the third quarter, as it ramps up business under its new recycling partnership with Apple
ATRenew (NYSE: RERE)’s revenue rose 28% in the third quarter, as its refurbishment business and its move into non-electronics recycling gained momentum
The company has begun ramping up its acquisitions of used iPhones, its biggest product area, through its recent partnership with Apple in Mainland China
🇨🇳 Zepp leaves investors guessing with return to profits, tumbling own-brand sales (Bamboo Works)
The maker of Amazfit wearable sports devices reported its revenue tumbled in the third quarter as it weans itself from a third-party licensing relationship with Xiaomi
Zepp Health Corp (NYSE: ZEPP) returned to profitability in the third quarter for the first time since 2021, as its margins jumped with the development of its own Amazfit brand
The company’s shares initially rose sharply after the report, but then fell even more, as investors worried about a big drop in sales of its own-brand products
🇨🇳 Kanzhun’s World Cup marketing bet keeps paying dividends (Bamboo Works)
China’s leading online recruitment platform has posted its third straight quarterly profit, reaping the rewards of an advertising campaign during last year’s soccer championships
Kanzhun (NASDAQ: BZ) doubled its profits in the third quarter and surprised investors by paying out around $80 million in special dividends
The market for blue-collar jobs has become the company’s main growth driver, supplying 35% of revenue
🇨🇳 Pair Trade: Want Want (151 HK) And Mengniu (2319 HK) (SmartKarma) $
Want Want China Holdings (HKG: 0151 / FRA: 4HQ / OTCMKTS: WWNTY / WWNTF) and China Mengniu Dairy Company (HKG: 2319 / FRA: EZQ0 / EZQ / OTCMKTS: CIADY / CIADF) are both fairly liquid names in the China consumer staples sector.
Both companies trade at virtually the same forward PE of 14x. However, I expect Want Want's near term sales growth to be lower than market expectations.
The upside risk for Want Want could be its overseas expansion efforts, as overseas sales now account for mid to high-single-digit of sales and grew high-teens yoy in FY1H24.
🇨🇳 RLX stabilizes as air clears in new regulatory environment (Bamboo Works)
Burned by a wave of regulation in China over the last two years, the e-cigarette maker says it’s hoping to find new growth overseas
RLX Technology (NYSE: RLX)’s revenue totaled 428 million yuan in the third quarter, up slightly from the previous quarter, while its profit fell 15% over that period
The company terminated its non-compete agreement with Relx on Nov. 10, paving the way for it to expand its e-cigarette business outside China
🇨🇳 2024 High Conviction: China Tourism Group (601888 CH, BUY, TP:CNY106): See the Forest for the Trees (SmartKarma) $
China stock market despair has brought down China Tourism Group Duty Free (HKG: 1880 / SHA: 601888) to its lowest forward valuation in the past ten years
Poised for long-term growth, Chinese are buying albeit more prudently, government supportive on promoting domestic consumption, efficiency enhancements will lower cost and boost margins
Using the company's lowest recorded PE ratio in the past 10 years of 23.2x into FY24, we derive a target price of CNY106 (+21% UPSIDE)
🇨🇳 Asian Dividend Gems: Fufeng (SmartKarma) $
Fufeng Group (HKG: 0546 / FRA: FFO1)'s core businesses include food additives such as MSG, animal nutrition, high-end amino acids, and colloid such as xanthan gum.
Xantham gum is increasingly becoming popular as millions of people around the world purchase gluten free foods.
Fufeng's dividend yield averaged 7.5% annually from 2018 to 2022. Its current dividend yield is about 11-12%. Fufeng is trading at P/E of 2.9x and EV/EBITDA of 1.8x in 2024.
🇨🇳 DDC Enterprise IPO fails to whet investor appetites on Wall Street (Bamboo Works)
After a failed attempt at a SPAC listing a year ago, shares of cooking content and prepared foods maker DayDayCook plummeted in their New York trading debut
Shares of DDC Enterprise (NYSEAMERICAN: DDC), also known as DayDayCook, priced below their earlier indicated range and fell 27% on their New York trading debut
The Chinese cooking company is repositioning itself as a global supplier of Asian food and content with a series of recent acquisitions
🇭🇰 LH Group (1978 HK) (Oriental Value)
What's next after a special dividend?
With that out of the way, let’s dive into LH Group (HKG: 1978), another catering group listed in the Hong Kong Stock Exchange besides Taste Gourmet (8371.HK) which we discussed previously.
There are of course exceptions, which we can summarize in the following points:
Unique business models and thoughtful operational philosophies that can lower probability of failure (e.g. Food & Life/Sushiro (TYO: 3563 / FRA: 2G0 / OTCMKTS: SGLOF), Saizeriya (TYO: 7581))
Products that can be standardized and travel well, usually in the form of franchises (e.g. McDonald’s (MCD), Domino’s Pizza (DPZ), Starbucks (SBUX) etc.)
Capable management that can keep a brand fresh and that is detail-oriented in cost control
Depressed valuation for various reasons
🇭🇰 Tam Jai ladles up its rice noodles overseas as its home markets slow (Bamboo Works)
Hong Kong’s top rice noodle chain is looking to new markets and a wider product portfolio to keep growing in the face of China’s economic slowdown
Tam Jai International (HKG: 2217 / FRA: 29S) is slowing down its expansion in Hong Kong and Mainland China, and eyeing overseas markets in Australia and the Philippines
The company received rights to open Marugame Udon noodle stores in Hong Kong as part of its effort to expand beyond its traditional rice noodles
🇭🇰 🇯🇵 Despite limp sales, Nissin tastes growing profits on falling costs, price hike (Bamboo Works)
The instant noodle maker registered year-on-year profit growth in the third quarter thanks to price adjustments and falling raw material costs
Nissin Foods (HKG: 1475 / TYO: 2897 / FRA: NF2 / OTCMKTS: NFPDF)’ revenue declined by nearly 3% year-on-year in the third quarter, but its profit rose 38%
The company is stepping up promotional activities, including 30,000 face-to-face, in-person events so far this year
🇰🇷 Korean Air (003490 KS): Cheap, but a Value Trap (SmartKarma) $
Korean Air (KRX: 003490) is cheap, against peers and its own history. The impending merger with Asiana Airline is a major overhang
Business is good, with steady passenger loads and yields, and cargo showing decent signs of recovery. Lower fuel prices could surprise on the upside
Target Price KRW23,868 based on FY24 P/BV of 0.81x (1SD below mean). Too little upside for the level of uncertainty. PASS
🇰🇷 Dentium (145720 KS): Economic Health of China Is the Key to Bring Back Smiles (SmartKarma) $
Dentium (KRX: 145720) earns more than 50% of its total revenue from China. The company’s revenue from China reported a CAGR of 32% during 2018–2022.
Despite concern over China slowdown and lower ASP due to VBP, in 3Q23, Dentium reported 12% YoY revenue growth in China, similar growth rate reported in 2Q23, driven by volume.
Economic slowdown is lingering over the global as well as Chinese dental implant sector, especially the premium brands. Dentium is positioned at the upper price portion within the value segment.
🇸🇬 5 Singapore Blue-Chip Stocks Falling More Than 20% Year-to-Date: Can They Recover? (The Smart Investor)
We look at five blue-chip stocks whose share prices have tumbled to see if they could be on the cusp of a recovery.
Hongkong Land Holdings (SGX: H78 / LON: HKLJ / FRA: HLH / OTCMKTS: HKHGF / HNGKY), or HKL, is a property investment, management and development group.
Thai Beverage (SGX: Y92 / OTCMKTS: TBVPF / TBVPY) is a leading food and beverage company with four major divisions – spirits, beer, non-alcoholic beverages, and food.
Venture Corporation (SGX: V03 / FRA: VEM / OTCMKTS: VEMLF) is a provider of technology products, services and solutions for clients in industries such as life sciences, genomics, medical devices, and networking and communications.
City Developments Limited (SGX: C09 / FRA: CDE / OTCMKTS: CDEVY), or CDL, is a global real estate company with operations spanning 143 locations in 28 countries and regions.
DFI Retail Group (SGX: D01 / FRA: DFA1 / OTCMKTS: DFIHY) is a pan-Asian retailer with over 10,700 outlets in 13 countries and territories employing around 218,000 staff.
🇸🇬 3 Singapore Stocks to Watch Out for in December (The Smart Investor)
As we close off the year, here are three stocks you can watch for in the final month of 2023.
iFAST Corporation Limited (SGX: AIY / FRA: 1O3 / OTCMKTS: IFSTF) is a financial technology (fintech) company that operates a platform for the buying and selling of unit trusts, equities, and bonds.
City Developments Limited (SGX: C09 / FRA: CDE / OTCMKTS: CDEVY), or CDL, is a global real estate company with operations in 143 locations in 28 countries and regions.
Kingsmen Creatives Limited (SGX: 5MZ / OTCMKTS: KMNCF) offers services to its clients in the Exhibitions, Interiors, Research and Design, and Experiential Marketing segments.
🇸🇬 4 Singapore Aviation and Tourism Stocks That Could See a Better 2024 (The Smart Investor)
A bright outlook for air travel and tourism could lift the fortunes of these four stocks.
Singapore Airlines (SGX: C6L / FRA: SIA1 / OTCMKTS: SINGY / SINGF), or SIA, is Singapore’s flagship airline. The blue-chip carrier reported a strong set of results for its fiscal 2024 first half (1H FY2024) ending 30 September 2023.
Straco Corporation Limited (SGX: S85) is an operator of tourism facilities and owns two aquariums in China – the Shanghai Ocean Aquarium (SOA) and Underwater World Xiamen (UWX).
SIA Engineering Company (SGX: S59 / FRA: O3H / OTCMKTS: SEGSF), or SIAEC, is a maintenance, repair and overhaul (MRO) specialist for airlines that also offers line maintenance services.
🇸🇬 Wilmar International: It's Premature To Be Bullish (Seeking Alpha)
Wilmar International (SGX: F34 / FRA: RTHA / RTH / OTCMKTS: WLMIF / WLMIY)'s shares are attractively valued with its forward P/E at the lower end of its historical trading range.
The stock has potential catalysts associated with the new central kitchens business and margin recovery, but the catalysts will likely be realized at a later time.
It is too early to be bullish on Wilmar International stock now, so I choose to rate WLMIF as a Hold.
🇮🇳 Concord Biotech Ltd (658823Z IN): Q2 EBITDA and PAT Triples on Operational Efficiencies (SmartKarma) $
Concord Biotech Ltd (NSE: CONCORDBIO / BOM: 543960) reported robust performance in Q2FY24. Revenue grew 65% YoY to INR2.6 billion, while EBITDA and PAT jumped more than 3x compared to year-ago quarter.
The company has increased capacity utilization at all the three manufacturing facilities. Operational efficiencies have helped the bottom line to achieve faster growth than the top line.
With a high runway for growth and improving market scenario, especially for Indian pharma companies, the company remains highly optimistic to surpass its historical 18% revenue CAGR this year.
🇮🇱 Tel-Aviv Stock Exchange (TASE) (Special Situation Investing)
A small exchange with lots of upside
The Tel-Aviv Stock Exchange (TLV: TASE / OTCMKTS: TVAVF) is Israel’s only stock exchange. It’s wholly owned subsidiaries include the Tel-Aviv Stock Exchanges Clearing House, the MAOF (Derivatives) Clearing House, and the Tel-Aviv Stock Exchange Nominee Company, which provides the clearing and settlement infrastructure for Israeli securities registration services. In its July 2019 IPO, TASE transitioned from a not for profit and largely bank owned exchange to a for profit publicly traded corporation.
Beyond the benefits that accrue to exchanges generally there are several specific advantageous that could act as catalyst to the valuation of TASE itself over the next several years.
🇦🇪 Yalla Profit Zooms On Gaming Jump, Enhanced Efficiency (Seeking Alpha) $
[A Middle Eastern social networking and gaming company]
Yalla Group’s (NYSE: YALA)’s revenue rose 6.4% in the third quarter, fueled by a 31% jump in revenue from its gaming operation.
The company’s paying users posted a rare decline in the quarter as Yalla shifted its focus to higher-spending users.
Yalla is a relatively conservative company with little debt and large cash reserves that totaled $545 million at the end of September.
🇹🇷 Hepsiburada – is Turkey's "Amazon" a turnaround play? (Undervalued Shares)
At first sight, it looks like an incredible bargain.
D-MARKET Electronic Services & Trading or Hepsiburada (NASDAQ: HEPS) has 12m active customers in Turkey, a country with hugely attractive growth prospects for e-commerce.
The company's market cap is just USD 430m. Yes, you read that right.
When Hepsiburada went public in 2021, it raised USD 800m of additional equity from investors. At its peak, the company was valued at nearly USD 5bn.
Given how bombed-out the stock is today and Turkey's undoubted potential for e-commerce, could it be an interesting turnaround play with an upside of several times its current price?
🇳🇬 Nigeria’s Access Bank plans to launch in Asia in first quarter of 2024 (Semafor)
Lagos-based Access Bank or Access Holdings PLC (NGX: ACCESSCORP), one of Africa’s biggest banks, is close to finalizing a regulatory process to launch its first full banking service in Asia in the first quarter of 2024, the chief executive of its holding company told Semafor Africa.
Wigwe and his team have built Access from a small Nigerian operator into the largest banking group in the country through an aggressive and ambitious acquisitive approach. The lender accounts for 16% of the banking system’s assets at the end of 2022, according to ratings agency Fitch.
It has also expanded rapidly across the continent over the last half decade. Most recently, it snapped up the banking operations of Standard Chartered in Angola, Cameroon, The Gambia, Sierra Leone, and Tanzania.
Johannesburg-based Standard Bank (JSE: SBK / FRA: SKC2 / OTCMKTS: SGBLY) — Africa’s largest bank by assets with $75 billion at the end of June — has spent most of the last two decades consolidating and selling off ventures outside Africa other than major centers including London, Dubai, and New York. But, after years of acquisitions across Africa, it now expects to expand by organic growth on the continent, according to CEO Sim Tshabalala.
🇵🇱 The Quick Read #3 (ToffCap)
But I wanted to briefly focus on the UK opportunity, which is now uncapped after the deal with Menzies Distribution in May. In contrast to many markets, such as Poland, InPost (AMS: INPST / LON: 0A6K / FRA: 669) UK’s ‘problem’ has always been on the supply side, not demand. We know that our UK friends love shopping online, and that the returns market is very strong. This, combined with densely populated areas, makes it a very suitable market for the [automated parcel machines] APM proposition.
InPost’s UK operations have been purposely throttled as they did not have the necessary infrastructure to optimally service their APM network, but that all changed after the Menzies deal. Management now claims to have ‘uncapped capacity for the next five years’. And indeed, volumes have exploded since May.
🇵🇱 Wsparcie procesów logistycznych i produkcyjnych (value at risk newsletter)
Note: In Polish. Google Translator or a browser translator can be used to translate it.
The activities of the Quantum Software Group (WSE: QNT) focus on creating and selling software supporting logistics and production processes. The most important product of the Group is the Qguar system, the first version of which was premiered in 1998. Qguar consists of numerous modules belonging to the SCM (Supply Chain Management) software class. Implementing the system allows you to optimize processes related to storage, distribution and production logistics.
🇵🇱 Poland’s incoming coalition faces early test with energy bill (FT) $
Donald Tusk maps out boost for wind turbines and tougher approach to state energy company Polski Koncern Naftowy ORLEN Spólka Akcyjna (WSE: PKN / FRA: PKY1)
The Civic Coalition wants to freeze energy prices for consumers in the first half of next year, a subsidy to be funded by Orlen. The plan has sent Orlen’s share price down 6.6 per cent since it was set out on Wednesday. Orlen, which is Poland’s largest company, went on an acquisition spree under the PiS government.
🇦🇷 Why We Are Avoiding Despegar Despite Shares Looking Cheap (Seeking Alpha) $
Despegar.com Corp (NYSE: DESP) had a successful debut on Wall Street, with its stock closing 24% higher on its first day of trading. Since then, shares have fallen significantly.
The company appears to have a very low average customer satisfaction, with many negative reviews found on sites like Trustpilot.
While shares look cheap, we believe it could be a value trap and that the company will face increased competition from the likes of Airbnb and Booking.
🇦🇷 Banco Macro: Cautious Ahead Of Argentina's Milei Era (Seeking Alpha) $
Helped by its investment gains, Banco Macro Sa (NYSE: BMA) delivered a resilient quarter despite the macro headwinds.
With Javier Milei’s anti-establishment platform winning the election, though, big changes are afoot for the bank.
Having rallied massively post-election, the stock now offers a limited margin for error ahead of a potentially challenging fundamental outlook.
🇧🇷 Gol Linhas Aereas Likely To Greatly Dilute Its Shareholders (Seeking Alpha) $
Gol Linhas Aereas Inteligentes Sa (NYSE: GOL / BVMF: GOLL4) has seen margin expansion due to cheaper jet fuel and recovery in the Brazilian airline market.
However, the company's margin expansion may be limited due to more expensive fuel and increased competition.
Gol's recapitalization plan through convertible debt and warrants will lead to significant dilution for future shareholders.
🇧🇷 Embraer: Getting More Attractive (Seeking Alpha) $
Embraer SA (BVMF: EMBR3 / NYSE: ERJ) affirms 2023 guidance for deliveries, margins, and FCF, with increased deliveries expected in 2024.
The company's stake in Eve Holding should be considered a free option and a way to gain exposure to the eVTOL sector.
ERJ's operating update shows higher revenue in Service & Support, increased deliveries in Commercial Aviation and Executive Jet segments, and improved margins.
Viña Concha y Toro - LATAM Stocks Investment Analysis #22 (LATAM Stock)
Viña Concha y Toro (SSE: CONCHATORO) is the largest wine producer in Latin America and one of the Largest in the world. They are Chile's largest wine exporter.
There is no way to sugarcoat the current state of affairs in the wine industry.
The global wine industry is currently in a downturn and Concha y Toro is no exception. Revenues and volumes are down.
When I started this write up I was expecting to find an ugly situation. I wanted to cover the Chilean wine industry for readers because Chile is a huge, and largely unknown, wine market, as well as a globally relevant exporter.
I wasn’t expecting much in terms of stocks worth buying.
But the situation at Concha y Toro isn’t all doom and gloom. They are sound financially. Their balance sheet is healthy and they should have no problem weathering the current downturn in the wine industry.
🇲🇽 Cemex: 4 Reasons Why Historical Underperformance Is Set To Continue (Seeking Alpha) $
CEMEX (NYSE: CX) has significantly underperformed global equity indexes over the past 10 years.
The company operates in a highly competitive industry which makes it hard to generate high profit margins and attractive returns on capital.
CX is focused on improving its balance sheet but the company remains highly levered and is exposed to significant risks in the event of economic weakness.
CX trades at a below market valuation but this is warranted due to significant historical earnings volatility.
I am initiating CX with a sell rating.
🇲🇽 Coca-Cola FEMSA: Buy Growth At A Reasonable Price (Seeking Alpha) $
Coca-Cola Femsa SAB de CV (NYSE: KOF) is the largest bottler of Coca-Cola beverages in the world based on volume.
The company has a high-quality, recession-resistant business model with a wide moat and solid growth potential.
KOF is attractively valued compared to peers and offers an attractive dividend with potential for growth.
I am initiating KOF stock with a buy rating.
🇵🇦 Copa Holdings: Underfollowed, Underappreciated, Undervalued (Seeking Alpha) $
[Parent company of Panamanian carrier Copa Airlines and its subsidiaries, Colombian carriers Copa Airlines Colombia and Wingo.]
Copa Holdings (NYSE: CPA) reported strong third-quarter results, with industry-leading operating margin, cost controls and strong revenue performance.
The company continues to pay an attractive dividend and recently authorized a new share repurchase program.
Its performance continues to be largely dismissed by the market, but over time should become clearer as core operations drive results.
📰🔬 Further Suggested Reading
$ = behind a paywall
🇨🇳 Overcoming Chinese Communist GDP Myths (Mises Wire)
According to WikiLeaks, Li stated, “GDP figures are ‘man-made’ and therefore unreliable.” Consequently, he used proxy data to attempt to quantify the economy. Li’s approach relied on three key indicators: electricity consumption, railway cargo volume, and bank lending. His rationale was that if electricity usage was up, then the factories must be working. The same is true of rail cargo if the trains are busy taking products to distributors and seaports. Finally, the volume of bank lending suggests how many new factories or expansions of existing businesses are being undertaken.
In 2014, the Chinese government claimed a 7.5 percent GDP growth, but Citibank economists had their doubts. The bank decided to apply the Li Keqiang Index with these specific weightings: railway freight traffic (25 percent), electricity consumption (40 percent), and medium—and long-term loans (35 percent). Sure enough, the index suggested that the GDP growth was much lower than Beijing’s claims. Citibank then looked at other proxies, such as commodity prices. China alone accounts for such a significant percentage of world demand for commodities that increased industrial and construction activity in China drives up world prices. However, in 2014, those prices were coming down.
The Li Keqiang Index is a good jumping-off point, but Western economists have added other elements of consideration, such as nighttime lights measured by satellites.
Interesting Tweet:
🇨🇳 Nomura caution on China economy, China tourism in Asia (GGRAsia)
Banking group Nomura says it has a “more cautious view on China’s economic performance,” which it adds is consistent with recent data for outbound tourism from China to regional destinations including the casino jurisdiction of Singapore, and also for Thailand, another usually-popular place with Chinese.
There had been a “slowdown” in Chinese outbound tourism, noted analysts Euben Paracuelles and Charnon Boonnuch, in a Monday memo.
🇨🇳 Chinese borrowers default in record numbers as economic crisis deepens (FT) $
A total of 8.54mn people, most of them between the ages of 18 and 59, are officially blacklisted by authorities after missing payments on everything from home mortgages to business loans, according to local courts.
That figure, equivalent to about 1 per cent of working-age Chinese adults, is up from 5.7mn defaulters in early 2020, as pandemic lockdowns and other restrictions hobbled economic growth and gutted household incomes.
🇨🇳 The human cost of China’s property crisis (FT) $
One of the world’s biggest real estate collapses has hurt buyers, households and families across the country
The stories of four individuals who invested in the Chinese property market illustrate the wide impact of the crisis.
🇨🇳 China Life and NCI join hands in $7 billion fund for stock investments (Caixin) $
China’s leading state-owned insurers, China Life Insurance (HKG: 2628 / SHA: 601628 / OTCMKTS: CILJF) and New China Life Insurance (NCI) (SHA: 601336 / HKG: 1336), plan to jointly establish a 50-billion-yuan ($7 billion) private fund to invest in publicly traded stocks, following Beijing’s call for insurance funds to help stabilize the volatile market.
Shanghai and Hong Kong-traded NCI said in a Wednesday filing that it will partner with China Life, with each contributing 25 billion yuan for the private securities investment fund under the tentative name Honghu Private Securities Investment Fund Co. Ltd.
🌐 Introducing the Frappuccino index, a fresh lens on global purchasing power (and affluence) (Momentum Works)
The Frappuccino Index provides a lighthearted perspective for assessing economic status, affordability, and the premium placed on global brands in various locales and can be interpreted as such:
Consumer Economic Status (affluence): The proximity to the base reflects the similarity in consumers’ purchasing power to that of NYC.
Brand Perception: The closer to the base, the less premium Starbucks is seen in the city, offering insights into local consumer culture and the brand’s integration into consumers’ daily lives
Market Penetration: The nearer to the base, the broader the consumer base for Starbucks products, implying successful market penetration and competitive pricing with NYC.
🇲🇽 The city where Mexico’s nearshoring hype is becoming reality (FT) $
Optimism infects business leaders in Monterrey as manufacturers shift operations close to the US
🇲🇽 Mexico is wasting its nearshoring opportunity (FT) $
Businesses operating in Mexico say some nearshoring is happening, but only a fraction of what could occur with the right government policies.
🇲🇽 Mexico takes stock of five years of AMLO (GIS)
The outgoing president remains popular despite a term marked by unfulfilled promises, lackluster economic growth, corruption, violence and a deepening migrant crisis.
2024 will likely usher in Mexico’s first woman president
The election will test the popularity of AMLO’s party
Expect the next government to favor closer U.S. ties
🇻🇪 🇬🇾 Latin America On Edge As Venezuela's Maduro Holds Referendum Whether To Invade Oil-Rich Neighbor Guyana (Zero Hedge)
That said, analysts question whether Venezuela will genuinely seek to annex the territory. They argue the referendum exercise is aimed at bolstering Maduro’s domestic support ahead of elections that Venezuela agreed to hold in exchange for relief from debilitating sanctions imposed by the US.
“Political calculations are driving Maduro to escalate tensions in an attempt to stir up nationalist sentiment, but those same political calculations also limit his military options,” said Theodore Kahn, director for the Andean region at the consultancy Control Risks.
The referendum will put five questions to Venezuela’s public. One seeks approval for granting all residents of the Essequibo region Venezuelan citizenship and creating a new state within Venezuela, while another asks voters if they recognise the jurisdiction of the ICJ to rule on the matter. Both would likely lead to a military invasion.
📅 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):
VenezuelaReferendumDec 3, 2023 (d) Confirmed Feb 15, 2009Egypt Egyptian Presidency Dec 10, 2023 (d) Confirmed Mar 26, 2018
Chile 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):
Aimei Healthcare Technology Co. Ltd. AFJKU, Spartan Capital Securities, 6.0M Shares, $10.00-10.00, $60.0 mil, 12/4/2023 Priced
It is our intention to pursue prospective targets that are focused on healthcare innovation. (Incorporated in the Cayman Islands)
We anticipate targeting what are traditionally known as “small cap” companies domiciled in North America, Europe and/or the Asia Pacific (“APAC”) regions that are developing assets in the biopharmaceutical, medical technology/medical device and diagnostics space which aligns with our management team’s experience in operating health care companies and in drug and device technology development as well as diagnostic and other services. We shall not undertake our initial business combination with a target business with its principal business operations in China (including Hong Kong and Macau).
(Note: Aimei Healthcare Technology Co. Ltd. priced its SPAC IPO in sync with the terms in its prospectus – 6.0 million units at $10.00 – to raise $60.0 million after the U.S. stock market’s close on Friday, Dec. 1, 2023. The stock is expected to start trading Monday, Dec. 4, 2023, on the NASDAQ.)
(Note: Aimei Healthcare Technology Co. Ltd. increased its SPAC IPO’s size to 6.0 million units – up from 5.0 million units – at $10.00 to raise $60.0 million, according to an S-1/A filing dated Oct. 27, 2023.)
(Note: Aimei Healthcare Technology Co. Ltd. filed an S-1/A dated Oct. 6, 2023, in which it dropped the warrants from its SPAC IPO. The unit now consists of one share of stock and one right to receive one-tenth (1/10) of one ordinary share upon the consummation of an initial business combination.)
(Background: Aimei Healthcare Technology Co. Ltd. filed its S-1 on May 26, 2023, with its IPO terms: 5.0 million units at $10.00 each to raise $50.0 million. Each unit consists of one ordinary share, one right and one warrant, which we refer to throughout this prospectus as the “public warrants.” Each right entitles the holder thereof to receive one-tenth (1/10) of one ordinary share upon the consummation of an initial business combination, as described in more detail in this prospectus. Each warrant entitles the holder thereof to purchase three-fourths (3/4) of one ordinary share at a price of $11.50 per whole share, subject to adjustment as described in the prospectus.)
Chi Ko Holdings Limited CKHL, EF Hutton, 1.7M Shares, $4.00-5.00, $7.8 mil, 12/4/2023 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 12 months that ended Sept. 30, 2022.
(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.)
Linkage Global Inc. LGCB, EF Hutton, 1.5M Shares, $4.00-6.00, $7.5 mil, 12/4/2023 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, 12/4/2023 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.)
SolarMax Technology SMXT, Kingswood Capital Markets, 4.5M Shares, $4.00-4.00, $18.0 mil, 12/4/2023 Week of
We are an integrated solar energy company. (Incorporated in Nevada)
We were founded in 2008 to conduct business in the United States and subsequently commenced operations in China following two acquisitions in 2015. We operate in two segments – the United States operations and the China operations. We are a holding company, with our United States operations conducted by our United States subsidiaries and our China operations by our Chinese subsidiaries, which operate separately from our United States operations. We are a Nevada corporation that operates through its subsidiaries, all of which are wholly owned.
Our United States operations primarily consist of the sale and installation of photovoltaic and battery backup systems for residential and commercial customers, and sales of LED systems and services to government and commercial users. Since early 2020, because we did not have the capital to support such operations, we suspended financing our solar customers’ purchase of our systems, but we may resume lending if we have sufficient funds, including from the proceeds of this offering. Our finance revenue for the years ended December 31, 2022 and 2021 and the three months ended March 31, 2023 and 2022 relates to revenue from our existing financing portfolio.
Our China operations, which are conducted by our wholly-owned subsidiaries, consist primarily of identifying and procuring solar farm projects for resale to third parties and performing engineering, procuring and construction (“EPC”) services primarily for solar farm projects. Although we are a Nevada corporation with significant operations in the United States, through our PRC subsidiaries, we conduct business in China and our China business is subject to Chinese law. There are legal and operational risks associated with having operations in China. See “Risk Factors — Any change of regulations and rules by Chinese government may intervene or influence upon our operations in China at any time and any additional control over offerings conducted overseas and/or foreign investment in issuers with Chinese operations could result in a material change in our business operations and/or the value of our securities and could also significantly limit or completely hinder our ability to offer, or continue to offer, our securities to investors and cause the value of such securities to significantly decline or be worthless” and “Business – PRC Government Regulations.” Further, the only customer of our China segment since the middle of 2019 has been a large state-owned enterprise. As of the date of this prospectus, we do not have any agreement for the China segment to perform any ongoing services and we did not generate any revenue from our Chinese operations in 2022 through the date of this prospectus. The primary business of our China segment is the construction of solar farms and related services. Each solar farm requires a permit from a government agency, and there are a limited number of permits. We are dependent upon our ability to generate business from a large state-owned enterprise and obtaining the necessary permit from a local government agency. Our failure or inability to obtain contracts or permits would materially impact our business and may result in a significant decrease in the value of our common stock.
We finance our China operations and our United States operations separately. We do not use funds from either segment to provide funds for the other segment. Our equity structure is a direct holding structure, that is, SolarMax Technology Inc., a Nevada corporation, directly controls its U.S. subsidiaries and its subsidiaries in its China segment including: (i) Golden SolarMax Finance. Co. Ltd, a PRC subsidiary, (ii) SolarMax Technology Holdings (Hong Kong) Limited, a Hong Kong subsidiary which directly holds SolarMax Technology (Shanghai) Co., Ltd, a PRC subsidiary (together with its subsidiaries thereunder, “ZHTH”); (iii) Accumulate Investment Co., Ltd, a British Virgin Islands subsidiary which directly holds Accumulate Investment Co., Limited, a Hong Kong subsidiary that directly holds Jingsu Zhonghong Photovoltaic Electric Co., Ltd (“ZHPV”); a PRC subsidiary and (iv) SolarMax Technology Holdings, a Cayman Islands subsidiary. Our business in China is conducted through ZHPV and ZHTH. See “Business – Our Corporate Structure” on page 100 of the prospectus for additional details.
*Note: Net loss and revenue figures are in U.S. dollars for the 12 months that ended June 30, 2023.
(Note: SolarMax Technology cut the size of its IPO to 4.5 million shares – down from 7.5 million shares – and kept the assumed IPO price at $4.00 – to raise $18.0 million, according to an F-1/A filing dated July 6, 2023. The downsizing of SolarMax Technology’s IPO represents a 40 percent cut in the IPO’s size.)
Planet Image International Ltd. YIBO, US Tiger Securities, 1.3M Shares, $4.00-5.00, $5.9 mil, 12/8/2023 Friday
We are a leading export-oriented manufacturer and seller of compatible toner cartridges based in China, the U.S. and Europe. (Incorporated in the Cayman Islands)
Our mission is to deliver high-quality and cost-effective printing solutions to consumers around the world with our proprietary technology, research and development capabilities and our integrated and localized sales, logistics and service platform.
Through the operating subsidiaries, we are a leading export-oriented manufacturer and seller of compatible toner cartridges based in China, the U.S. and Europe. According to the CIC Report, we were the largest compatible cartridge manufacturer in the world with a market share of approximately 11.3% in terms of retail value in the markets worldwide, or global markets, for the year ended Dec. 31, 2022. We ranked first in the U.S. and Europe in terms of market share for the year ended Dec. 31, 2022.
Through the operating subsidiaries, we primarily develop and manufacture toner cartridges that are compatible with, and can be used in, a wide range of commonly available models of laser printers from different manufacturers, or compatible toner cartridges, on a white-label or third-party brand basis or under our self-owned brands. The operating subsidiaries also sell their branded products through online sales channels under three brands, TrueImage, CoolToner, and AZtech. Customers of the operating subsidiaries range from wholesalers to dealers to retail customers. Through the operating subsidiaries, we have a wide international footprint through established sales channels, with products sold to customers in over 45 countries, and sales in the U.S. and Europe representing the majority of our revenue.
We have experienced significant growth since our inception. Our growth is partially attributable to our comprehensive sales strategy and our highly efficient and complementary sales channels. During the fiscal years ended December 31, 2021 and 2022, our revenue was primarily generated from the U.S. and Europe. Our revenue grew from US$141.5 million for the year ended December 31, 2021 to US$142.1 million for the year ended December 31, 2022, representing a CAGR of 0.4%. Our net profit increased from US$4.9 million for the year ended December 31, 2021 to US$7.2 million for the year ended December 31, 2022, representing a CAGR of 47.1%.
**Note: Net income and revenue are in U.S. dollars for the 12 months that ended June 30, 2023.
(Note: Planet Image International Ltd. filed an F-1/A dated Oct. 31, 2023, in which it drastically reduced its IPO’s size – to 1.3 million shares – down from 4.0 million shares – and kept the price range at $4.00 to $5.00 – to raise $5.85 million. Background: Planet Image International Ltd. filed an F-1/A dated June 7, 2023, and disclosed terms for its IPO: 4.0 million shares at $4.00 to $5.00 to raise $18.0 million.)
(Background Note: Planet Image International Ltd. wiped the slate clean with an F-1/A filing dated April 17, 2023, by throwing out the terms for its IPO from its F-1 filed on March 16, 2022, and naming a new sole book-runner: US Tiger Securities Inc. The original book-runner was Network 1 Financial Securities. Planet Image International also disclosed its proposed stock symbol – YIBO – in the F-1/A filing on April 17, 2023. This is a NASDAQ listing. The IPO’s new estimated proceeds are $27.0 million – the same as in the F-1 (original) filing. Planet Image International’s initial IPO terms – now off the table – were 6.0 million Class A ordinary shares at $4.00 to $5.00 to raise $27.0 million. Planet Image International submitted confidential IPO documents to the SEC on Aug. 30, 2021.)
🏁 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).
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 (December 4, 2023) was also published on our website under the Newsletter category.