Emerging Market Links + The Week Ahead (February 26, 2024)
Hang Seng has always risen in the dragon years, Indonesia threatens nickel rivals, Argentina investors start to believe in Milei, EM stock picks and the week ahead for emerging markets.
Chinese New Year has concluded with Chap Goh Mei on Saturday. In Kuala Lumpur, despite the massive return of tourists and Chap Goh Mei falling on a Saturday, there was subdued participation in this year’s “multicultural” Prosperity Walk through the city along with celebrations on Jalan Alor (just the usual stage sponsored by Loong Kee Dried Meat with no other celebrations sponsored by businesses elsewhere on the street albeit the street was packed with people eating…):
With the Ringgit touching lows not seen since 1998 (the RM4.80 to US$1 level), the Murray Hunter Substack asked: Why is the Ringgit falling? The simple answer is that the Ringgit keeps falling for the same reason inflation keeps rising in the USA etc: Out of control spending along with money supply and debt increases that have not stopped since the end of COVID.
This comes as a time when the Chinese plus global economies remain sluggish. And many in Beijing policy circles apparently blame the 2009-10 stimulus and the flood of cheap liquidity it created as a root cause of their current slowdown. In other words, don’t hold your breath for more stimulus by Beijing.
With that said, Argentina’s Milei has shown its possible to reign in government spending and the money supply as his government has managed to produce the first monthly surplus in over a decade (albeit much more needs to be done to restore any resemblance of sanity or confidence in the country).
Finally, its worth noting that the year of the dragon has also proven to be good historically for the Hang Seng index - something investors in Chinese and Hong Kong stocks can be optimistic about.
🔬 Emerging Market Stock Pick Tear Sheets
$ = behind a paywall
EM Fund Stock Picks & Country Commentaries (February 25, 2024) $
Small cap Asian value stocks at a significant discount to growth peers, South Korean insurance stocks, TSMC & Samsung earnings, Safaricom's Ethiopia troubles, Coca-Cola Femsa investment thesis, etc.
🇧🇷 Raia Drogasil (BVMF: RADL3 / OTCMKTS: RADLY): Room to Grow in a Fragmented Industry $
🇧🇷 Vivara Participacoes Sa (BVMF: VIVA3): Vertical Integration as a Moat $
📰🔬 Emerging Market Stock Picks / Stock Research
$ = behind a paywall / 🗃️ = Archived article
🇨🇳 Meituan prepares for overseas voyage with CEO Wang Xing as captain (Bamboo Works)
The online-to-offline service provider’s founder will personally lead his company’s global pivot, hoping to imitate the success of other Chinese internet majors
Meituan (SEHK: 3690) is launching a major restructuring that will place its core local business and new business units under two of its senior vice presidents
Founder and CEO Wang Xing will lead the company’s overseas charge, which dates back to the launch of its KeeTa takeout delivery service in Hong Kong last year
🇨🇳 ZhongAn weathers feeble economy with business from online shoppers, travelers (Bamboo Works)
The digital insurer posted solid gross written premium growth for January and all of 2023, likely on the back of its popular insurance products for online shoppers and travelers
ZhongAn (HKG: 6060 / FRA: 1ZO) collected 2.4 billion yuan in gross written premiums in January, up about 20% from a year earlier
The popularity of its insurance against online shopping and travel-related mishaps is driving its revenue growth
🇨🇳 EU Launches Anti-Subsidy Probe on CRRC Unit in Bulgarian Train Deal (Caixin) $
The European Union has opened an unprecedented investigation into a unit of China’s state-owned train maker CRRC Co. Ltd. (SHA: 601766 / HKG: 1766 / FRA: C2L / OTCMKTS: CRCCY) over alleged unfair subsidies.
The European Commission announced the probe Friday on CRRC unit Qingdao Sifang Locomotive and Rolling Stock Co. Ltd. over its bid for a €610 million ($657 million) public procurement contract in Bulgaria to provide electric trains along with maintenance and staff training.
🇨🇳 Trip.com (9961 HK): Looks to Reap More Recovery Benefits (Smartkarma) $
Trip.com (NASDAQ: TCOM) has a remarkable 4Q23 with adjusted net profit surged 437.1% YoY. Higher volume and better market efficiency have resulted in massive margin expansion.
Net cash has ballooned to about 15% of its share price, and this has allowed it to carry out a massive US$300m Capital Return Program in 2024.
Business has outperformed the industry in CNY, with domestic hotel and air business volume increased by 60% and 50% YoY. Its overseas platform also saw double-digit growth.
🇨🇳 Maoyan shines in spotlight of rebounding China box office (Bamboo Works)
The country’s top ticket seller said its revenue doubled last year, as income from film production overtook its older ticketing business to become its top revenue source
Maoyan Entertainment (HKG: 1896 / FRA: 9ME / OTCMKTS: MAOFF) said it expects to report its revenue roughly doubled last year on a strong rebound in China’s box office, while its profit soared more than eightfold
Despite the strong gains, analysts see the company’s revenue growth slowing to 16% this year as consumers become more cautious and foreign films regain market share
🇨🇳 TH International expansion plans slow on need for ‘more capital’ (Bamboo Works)
The operator of the Tim Hortons chain in China is falling behind its aggressive expansion plans amid disagreement with the brand’s owner about new investment
TH International (NASDAQ: THCH) needs to ‘commit more capital’ to expand its Tim Hortons business in China “in an exciting way,” according to the CEO of Tim Hortons brand owner RBI
Previous company data showed TH International had 909 Tim Hortons stores in China in mid-January, short of the 1,000 it had previously targeted by the end of 2023
🇨🇳 Chinese education giant urged to repay bondholders early as default fears mount (Caixin) $
Some global investors are urging Chinese private education giant XJ International Holdings (HKG: 1765 / FRA: HE1) to redeem half of its $350 million in bonds before maturity, as the creditors fear the Hong Kong-listed firm may intentionally default on repayments.
The bonds are due in 2026, but the creditors asked for the early redemption to be completed by March 2 in a letter sent to the Chinese company last month by their legal adviser, Chicago-headquartered global law firm Kirkland & Ellis LLP.
🇨🇳 Venus Medtech still seeking cure for governance problems (Bamboo Works)
The transcatheter maker’s shares were suspended last November, and it must still meet several conditions from the Hong Kong Stock Exchange before trading can resume
Venus MedTech HangZhou (HKG: 2500 / OTCMKTS: VMTHF) disclosed governance and disclosure issues last May that forced it to halt trading in its stock six months later after an internal investigation
The company is losing money, but analysts expect its loss to narrow by half this year and its revenue growth to accelerate to 45%
🇨🇳 With no cure in sight, drugs firm LianBio begins exit strategy (Bamboo Works)
The biotech, which obtained rights to novel drugs for use in the Chinese market, has announced a plan to wind up its business and delist from the Nasdaq just four years after being founded
The drug maker will sell its remaining pipeline assets, phase out ongoing clinical trials and pay a special dividend of $4.80 per share
LianBio (NASDAQ: LIAN) has failed to deliver any product to the market since it was established in 2020
🇨🇳 Futu Holdings: Slower Growth Ahead (Seeking Alpha) $
Futu Holdings Ltd (NASDAQ: FUTU) will likely report a more moderate pace of growth for Q4 2023, taking into account the high base in Q4 2022 and elevated costs relating to overseas market expansion.
The company's 2024 results might be negatively impacted by rate cuts as a result of lower interest income.
A Hold rating for FUTU is maintained considering the slower growth outlook.
🇭🇰 Russian buyer of Tigre de Cristal ends deal: Summit Ascent (GGRAsia)
Hong Kong-listed Summit Ascent Holdings Ltd (HKG: 0102) says that the previously-announced sale of its Tigre de Cristal casino operations to a Russian firm has been terminated at the request of the would-be buyer.
Following the news on the sale of the Tigre de Cristal operations, a total of all but one of the Summit Ascent’s six directors had resigned. The reason given was their “disapproval” of the deal. As per the latest available information, only regional casino investor Andrew Lo Kai Bong is a director, as well as chairman, of Summit Ascent.
In an August filing to the Hong Kong bourse, Summit Ascent said it had swung to a loss of HKD16.1-million (US$2.1-million) in the first half to June 30, compared to a HKD85.2-million profit in the prior-year period.
🇭🇰 Perfect Medical (1830 HK) (Oriental Value)
Perfect Medical Health Management (HKG: 1830 / OTCMKTS: PFSMF) stands as one of the major players in the beauty service sector in Hong Kong.
Companies like Perfect Medical provide sales commissions to staff members when they successfully sell beauty vouchers. Generally, these vouchers have a limited validity period, and if customers fail to utilize them and complete their purchased treatments, the vouchers expire. In the case of Perfect Medical, these vouchers remain valid for one year. Expired vouchers are considered revenue and contribute to pure marginal profit for the company.
This prepaid model allows Perfect Medical and its peer Water Oasis (HKG: 1161 / OTCMKTS: WOSSF) to maintain a negative working capital and net cash balance sheet.
🇲🇴 Gearing easing to take time for some Macau ops: Fitch (GGRAsia) & Higher Inbound Tourism Positive for Macao’s Casino Operators (Fitch Ratings)
See our Macau ADRs list.
Deleveraging “will take time” for some of the Macau casino operators, “despite the improvements” in the sector’s business outlook, said Fitch Ratings Inc in a Wednesday memo, offering some commentary following the Chinese New Year trade.
Overall visitor arrivals to Macau during the eight-day Chinese New Year (CNY) festivities reached almost 1.36 million, the Macao Government Tourism Office (MGTO) announced on Sunday. The average hotel occupancy rate for the period stood at 95.2 percent, as detailed in the same press release.
Fitch stated in its update: “This influx reinforces our expectation of a recovery in Macau’s gaming sector for the rest of the year, despite the economic headwinds facing China.”
🇰🇷 Sole S.Korea-locals casino eyes Taiwan, Philippine clients (GGRAsia)
See: Kangwon Land (KRX: 035250): Shares Are Still Down Despite a Mass Gaming Revenue Recovery
Kangwon Land (KRX: 035250)’s new arrangements are with: Taiwan-based Far East International Co Ltd, said to be a sales agent there, for South Korean air carrier Fly Gangwon, and for Vietnam airline Vietjet Air; and with Philippines-based Rakso Travel, a sales agent for that country’s flag carrier, Philippine Airlines. Rakso is said to specialise in package trips to South Korea.
🇰🇷 Asian Dividend Gems: Youngone Holdings (Asian Dividend Stocks) $
Youngone Holdings (KRX: 009970) is an attractive deep value stock. Net cash (including short term investments) was 1.1 trillion won at the end of 3Q 2023 (79% of market cap).
Youngone Holdings is the holding company of Youngone Group. Youngone Corp (KRX: 111770) is best known for its OEM apparel business for major branded companies such as The North Face and Patagonia.
🇰🇷 Hyosung Corp (004800 KS): Spin-Off & KOSPI200 Index Implications (Smartkarma) $
[Industrial chaebol - chemical industry, industrial machinery, IT, trade, and construction] Hyosung Corporation (KRX: 004800) has announced that it is spinning off part of its business holdings to Hyosung New Holding Corporation in a 0.818:0.182 ratio.
The stock will remain suspended from late June to late July. We expect Hyosung Corporation (004800 KS) to maintain its index membership while the New Entity will not be added.
The dynamics between listed ETFs and non-listed passive trackers differ and we take a look at the potential index flows.
🇰🇷 Hyundai Rotem: Passage of Export-Import Bank Act To Support Korean Defense Companies (Smartkarma) $
On 21 February, it was announced that the long awaited amendment to the Export-Import Bank Act was passed by the Korean National Assembly.
As a result of this passage, the capital limit of the Export-Import Bank of Korea will be raised from the current 10 trillion won to 25 trillion won.
The revision of this law is expected to benefit major defense companies in Korea including Hyundai Rotem (KRX: 064350), Hanwha Aerospace (KRX: 272210), LIG Nex1 Co (KRX: 079550), and Korea Aerospace Industries (KRX: 047810).
🇸🇬 GEN Singapore 2023 rev up 40pct, profit tops US$456mln (GGRAsia)
Casino operator Genting Singapore (SGX: G13 / FRA: 36T / OTCMKTS: GIGNF / GIGNY) posted annual net profit of nearly SGD611.6 million (US$456.0 million) for full-year 2023, up 79.8 percent from the prior year. That was on revenue that rose 40.1 percent year-on-year, to just below SGD2.42 billion, according to unaudited results published on Thursday by the firm.
Genting Singapore is the operator of Resorts World Sentosa (pictured in a file photo), one of Singapore’s two casino resorts. The firm is a subsidiary of Malaysian conglomerate Genting Berhad (KLSE: GENTING / OTCMKTS: GEBHY).
🇸🇬 GEN Singapore uptick post 4Q amid China tourism: analysts (GGRAsia)
Two brokerages acknowledged in respective Friday notes that Genting Singapore (SGX: G13 / FRA: 36T / OTCMKTS: GIGNF / GIGNY), promoter of Singapore casino complex Resorts World Sentosa, had missed quarter-on-quarter market forecasts for earnings before interest, taxation, depreciation and amortisation (EBITDA) in the fourth quarter.
“We think that the upcoming first-quarter results will be better, barring any blips in VIP hold rate, due to seasonally strongest gaming volumes, the mutual Singapore-China visa waiver starting February, non-recurring one-off items, and concert-led tourism boom,” wrote the Nomura analysts, referring latterly to supporting factors relating to Singapore’s tourism sector.
For its part, JP Morgan stated: “We don’t feel the equity story of Genting Singapore is changing which is primarily based on ‘undemanding valuation’ even based on current run-rate, with ‘unmodelled optionality’ from the return of Chinese players near-term, and RWS 2.0 long-term.”
🇸🇬 7 Singapore Stocks That Will Benefit from Budget 2024 (The Smart Investor)
This year’s Budget includes a raft of measures that will benefit different sectors of the economy.
Part of these CDC vouchers can be used in approved supermarkets to purchase groceries and necessities, thereby benefiting supermarket operator Sheng Siong Group (SGX: OV8 / OTCMKTS: SHSGF) and pan-Asian retailer DFI Retail Group (SGX: D01 / FRA: DFA1 / OTCMKTS: DFIHY), which operates Cold Storage and Giant outlets.
This move should benefit preschool operators such as Mindchamps Preschool (SGX: CNE) as it should generate more demand for childcare services.
Companies that stand to benefit from this AI boost include test specialist AEM Holdings (SGX: AWX) and blue-chip electronic manufacturing services provider Venture Corporation (SGX: V03 / FRA: VEM / OTCMKTS: VEMLF).
These healthcare initiatives under Age Well SG, along with Healthier SG, should benefit hospital and clinic operators such as Raffles Medical Group (SGX: BSL / FRA: 02M1 / OTCMKTS: RAFLF) and IHH Healthcare Bhd (KLSE: IHH / SGX: Q0F / OTCMKTS: IHHHF).
🇸🇬 Singapore Airlines – Onset of Earnings Normalization to Heighten Focus on Efficiency (Smartkarma) $
We cut our Singapore Airlines (SGX: C6L / FRA: SIA1 / OTCMKTS: SINGY / SINGF) operating profit by 9% to S$2.6bn in FY24 and by 17% to S$1.5bn in FY25 versus consensus of S$2.1bn.
SIA's cost control is under-examined and we publish a deep dive on a concerning level of inflation relative to key peers, which actually escalated in 3Q24.
Cargo broke even in peak season, and Scoot's margins present a conundrum as it may need to be further utilization to help SIA with cost management.
🇸🇬 Singapore Airlines Reports Record Operating and Net Profit for 9M FY2024: 5 Highlights from the Airline’s Latest Earnings (The Smart Investor)
The carrier warns of headwinds such as rising costs and more intense competition.
Here are five things that investors can learn from SIA’s latest business update.
A mixed financial performance
Healthy passenger traffic offset by lower cargo yields
Adding more planes to SIA’s fleet
Ramping up to pre-pandemic capacity levels
A cautious outlook
🇸🇬 UOB Reports Record Net Profit and Raises its Final Dividend to S$0.85: 5 Highlights from the Bank’s 2023 Earnings (The Smart Investor)
The lender is optimistic that its loan book and fee income can continue to grow this year.
After DBS Group (SGX: D05 / FRA: DEVL / DEV / OTCMKTS: DBSDY / DBSDF) reported a sparkling set of earnings for 2023, United Overseas Bank (SGX: U11 / FRA: UOB / UOB0 / OTCMKTS: UOVEY / UOVEF), or UOB, is next in line to announce its full-year results.
Here are five highlights from the bank’s latest earnings report.
A robust financial performance
Higher fee income from increased card spending
Lower net interest margin with flat loan growth
Higher cost-to-income ratio offset by lower non-performing loans ratio
Higher dividends
🇸🇬 iFAST Reports a More Than 10-Fold Increase in Net Profit for 4Q 2023: 5 Highlights from the Fintech’s Latest Earnings (The Smart Investor)
The fintech is optimistic that revenue and earnings will continue to grow this year.
iFAST Corporation Limited (SGX: AIY / FRA: 1O3 / OTCMKTS: IFSTF) recently announced its fourth quarter 2023 (4Q 2023) and full-year earnings report.
Here are seven highlights from the fintech’s latest earnings report.
A stellar financial performance
AUA hits a new record high
A significant boost from the Hong Kong ePension contract
iFAST Global Bank targets breakeven by 4Q 2024
Maintained its final dividend
🇰🇭 🇭🇰 Cambodia GGR recovery to up pace this year: NagaCorp (GGRAsia)
Cambodia is likely to receive more visitors from mainland China this year as direct-flight capacity grows, which might aid recovery of the gross gaming revenue (GGR) of that nation’s casino industry in general, and of NagaCorp (HKG: 3918 / FRA: N9J / OTCMKTS: NGCRF) in particular, said on Tuesday Mike Ngai, the group’s chief operating officer.
His comments were at a media briefing in Hong Kong, following Monday’s release of the group’s full-year results. They showed its 2023 GGR at only circa 30 percent of 2019 level, i.e., the trading period prior to the Covid-19 pandemic.
The group said in Tuesday’s update, it might scale down the cost and size of the Naga 3 extension for NagaWorld, in favour of building up its capital.
🇻🇳 VinFast: Financial Situation Gets Scarier (Seeking Alpha) $
VinFast Auto Ltd. (NASDAQ: VFS), the Vietnamese electric vehicle company, saw its shares collapse after its SPAC merger mega-rally, and its latest results indicate further potential losses.
The company plans to expand globally, but it likely will need a lot more capital to do so.
VinFast reported significant losses, negative gross margins, and a weak balance sheet, while the valuation still seems stretched.
🇰🇿 Freedom Holding: Ruling Out Allegations, No Market Reaction On Strong Results (Seeking Alpha) $
Freedom Holding Corp. (NASDAQ: FRHC) has outperformed the S&P 500 Index by a factor of 2 over the past 3 years.
Hindenburg Research's allegations of sanctions evasion and illegal activities were not supported by evidence in an external audit of FRHC.
FRHC reported substantial revenue growth in Q3 FY2024 and is experiencing significant growth driven by diversified revenue streams and expansion in various regions.
With a favorable valuation indicating a potential upside of 24.43% and a positive growth trajectory, FRHC is a compelling buying opportunity for investors seeking exposure to emerging markets.
I therefore reiterate my 'Buy'
🇿🇦 Market gives cold shoulder to Pick n Pay's capital raise and Boxer IPO (IOL)
The market gave Pick 'n Pay (JSE: PIK / FRA: PIK) the cold shoulder yesterday after it announced a capital raise and its intent of an initial public offering (IPO) of its discount supermarket stores Boxer.
The move comes amid a growing debt burden, muted sales and the loss of market share.
The shares closed the day 16% lower at R21.71.
The move comes as the recently appointed CEO of one of the country’s biggest retailers, Pick n Pay’s Sean Summers, has hit the ground running to turn around the retailer that has been losing market share amid muted sales.
🇿🇦 Anglo American is not spinning off problematic South African assets (IOL)
The Anglo-American (LON: AAL / JSE: AGL / OTCMKTS: NGLOY) board is fully behind the restructuring of its operations under Anglo American Platinum (JSE: AMS / FRA: RPHA / FRA: RPH1 / OTCMKTS: AGPPF / ANGPY) and Kumba Iron Ore (JSE: KIO / OTCMKTS: KIROY / KUMBF), although the diversified resources miner was not inclined to separating the problematic South Africa companies from its other global units.
There has been speculation over the past few weeks that Anglo Platinum could be considering a split of its South African and southern African businesses – including operations in Zimbabwe – from the rest of the diversified entity. South Africa has been particularly challenging for Anglo American, which faces power supply constraints and inabilities to move ore, which had forced Kumba to cut its production for the next two years.
🇰🇾 🌎 Patria: High-Yield, High-Growth, Strong Track Record (Seeking Alpha) $
Patria Investments Limited (NASDAQ: PAX) is successfully executing an ambitious consolidation strategy in the Latin American alternative asset management landscape, driving steady AUM growth and EPS expansion.
The company has a resilient business model with stable revenue from management fees and the potential for significant performance fees.
With a dividend yield of 7%, the stock offers attractive capital appreciation potential combined with a solid recurring income.
🇱🇺 🇦🇷 Corporación América Airports: Risks Exist But A Cautious Buy (Seeking Alpha) $
Corporación América Airports (NYSE: CAAP) is recovering well from the pandemic, reaching 96.2% passenger traffic of its 2019 levels.
Despite a difficult period during the pandemic, the company has managed to improve its return metrics and decrease dependence on borrowings.
Compared to its peers, it is underpriced, but trailing multiples suggest the future growth in return metrics to slow.
An alternative valuation technique confirms the statement that the company is a "Buy."
🇧🇷 BrasilAgro Earnings Review: Exercising Caution After Persistent Challenges (Rating Downgrade) (Seeking Alpha) $
Brasilagro - Co Brasileira De Proprieda (NYSE: LND) reported a quarter marked by weakened revenues, with a year-over-year retraction and a significant compression of margins.
The company faced challenges from declining commodity prices and rising agricultural costs.
Dividend distribution for the year could be compromised, with a potential yield close to 5%, rendering the investment thesis unattractive in the short term.
Despite challenges, BrasilAgro's long-term outlook remains optimistic, though strategic shifts may introduce short- to medium-term volatility.
🇧🇷 Cielo: Limited Upside Potential On The Verge Of A Public Buyback Offer (Seeking Alpha) $
CIELO SA Instituicao de Pagamento (BVMF: CIEL3), a payments company in Brazil, has implemented cost-reduction measures and seen a gradual recovery in profitability.
The company's two controlling shareholders, Banco Bradesco (NYSE: BBD) and Banco do Brasil (BVMF: BBAS3 / FRA: BZLA / OTCMKTS: BDORY), have proposed a public buyback offer to privatize Cielo.
A proposed takeover bid to privatize the company at around $1 per share for its ADR suggests limited upside potential.
Despite being undervalued compared to peers, DCF analysis indicates Cielo's limited upside potential.
🇧🇷 Embraer Stock: Still A Buy Despite Downgrade And Miss (Seeking Alpha) $
Embraer SA (BVMF: EMBR3 / NYSE: ERJ)'s airplane deliveries for 2023 fell short of guidance, with 1-6 units fewer commercial airplanes and 5-15 units fewer executive jets delivered.
Analysts are expecting stable year-over-year revenues and a 472% growth in earnings per share for Embraer's Q4 2023 earnings.
Despite missing delivery guidance, analysts still consider ERJ stock a buy, but management's comments on supply chain health and 2024 deliveries will be crucial.
🇧🇷 Telefonica Brasil's Q4 Earnings: Strong Buy For Income Investors (Seeking Alpha) $
Telefônica Brasil (NYSE: VIV) has been upgraded from a buy to a strong buy following strong Q4 earnings and robust financial improvements in 2023.
Accelerated organic growth in mobile and fixed services and a commitment to shareholder returns drove the upgrade.
Expectations for increased profits, double-digit shareholder yield, and fair valuation make Telefonica Brasil an attractive income stock for investors.
🇨🇱 LATAM Group - Strong Momentum and Strategic Opportunities (Smartkarma) $
LATAM Airlines Group (SSE: LTM / FRA: LFL / OTCMKTS: LTMAY) surprised the market with strong guidance for 2024 earnings growth following upgrades through 2023. We raise our 2024 EBITDAR 14% to $2.8bn.
A successful restructuring under Chapter 11, and market leadership in key regions, is paying off for LATAM as demand remains robust.
Such a strong recovery positions it to make further strategic gains, particularly with the risk that competitor Gol Linhas Aereas Inteligentes Sa (NYSE: GOL / BVMF: GOLL4) must shrink its fleet through its own CH11 processs.
🇲🇽 Coca-Cola FEMSA: Still A Buy After A Bubbly Rally, Q4 Earnings On Tap (Seeking Alpha) $
Consumer Staples sector valuations are high, with Coca-Cola Femsa SAB de CV (NYSE: KOF) trading at 18.7 times 2024 earnings estimates, leaving just a modest amount of intrinsic upside potential.
Coca-Cola FEMSA is the largest bottler for The Coca-Cola Company outside the US, with strong profit strength and positive free cash flow.
KOF stock has a bullish trend, with a history of beating EPS estimates and positive share-price reactions, but the valuation could become a risk.
With high momentum and free cash flow strength, in addition to its high yield, I keep my buy rating heading into earnings this week.
I outline key price levels to monitor on the chart.
🇺🇾 🌎 Arcos Dorados: Leading McDonald's Franchisee Is Fairly Valued (Seeking Alpha) $
Arcos Dorados Holdings Inc (NYSE: ARCO) is the largest franchisee in the McDonald's system, operating and sub-franchising over 2,300 restaurants.
ARCO has been able to generate superior net profits through its ability to sub-franchise within its geographical regions, allowing it to earn attractive franchise fees.
Valuing Arcos Dorados using a sum-of-the-parts analysis, the company appears to be fairly valued at $3.9 billion.
📰🔬 Further Suggested Reading
$ = behind a paywall / 🗃️ = Archived article
🇨🇳 China’s playbook no longer involves a big stimulus bazooka (FT) 🗃️
Take the recent social media posting of a People’s Daily article, the mouthpiece of China’s ruling Communist party, from the lunar new year of 1960. It told of harvests up “28.2 per cent” at a time when — as educated Chinese now know — the country was in fact sunk in a desperate famine that may have killed as many as 40mn.
Aside from the chilling absurdity of a huge lie, the post’s impact rested on the fact that in 2024 — as in 1960 — the national output of Panglossian propaganda is once again outstripping a more meagre reality. Official censors clearly recognised the satire — they deleted the article this month.
Indeed, that 2009-10 stimulus is still blamed in Beijing policy circles as a root cause of the current slowdown. The flood of cheap liquidity contributed to the continuing local government debt crisis, nurtured a network of underground banks, inflated property prices to unsustainable levels and spurred overcapacity in a host of industrial sectors.
🇨🇳 In Depth: China quant funds in firing line over stock market volatility (Caixin) $
A three-day trading suspension imposed on a well-known domestic quant fund manager by Chinese regulators this week has shone a spotlight on the activities of investors that rely on complex mathematical models, algorithms and automated trading, and renewed concerns over their role in stoking sudden drops in the country’s stock markets.
The punishment of Ningbo Lingjun Investment Management Partnership by the Shanghai and Shenzhen stock exchanges, announced on Tuesday, was quickly followed by a pledge from both bourses to strengthen supervision of quant, especially high-frequency, trading as well as institutions such as private quant fund management firms.
🇨🇳 Crack down on abnormal trading does not restrict selling, says China’s securities watchdog (Caixin) $
China’s securities watchdog said Thursday that the regulatory measures taken by the Shanghai and Shenzhen stock exchanges against abnormal trading behavior aim to fulfill the responsibility of trading supervision, not to restrict selling.
China Securities Regulatory Commission (CSRC) made the comment at a press briefing Thursday in response to media reports about the selling ban.
🇨🇳 China’s bond funds outshine equity peers amid stocks slump (Caixin) $
China’s mutual funds produced a mixed bag of performance last year. Publicly offered equity funds endured a second straight year of losses, grappling with a prolonged stock market rout. Bond funds, on the other hand, had a comparatively stellar year.
The uptick in bond fund flows fueled a shift in China’s asset management landscape, with mutual funds emerging as the most preferred asset management avenue, outstripping banking wealth management for the first time.
🇭🇰 Hoping for better luck, HK stocks enter the Year of the Dragon (Bamboo Works)
The Hang Seng Index plunged 28.6% in the year of the rabbit, hurt by China’s slow economic recovery and simmering tensions with the United States. Investors will be looking for a rebound under the auspicious sign of the dragon
Since its launch in 1969, the Hang Seng has always risen in the dragon years, with gains averaging around 14%
But any rally this time could be hampered by uncertainties over the U.S. presidential election and interest rate policy
🇮🇩 Indonesia to wipe out global nickel rivals, warns French miner Eramet chief (FT) 🗃️
South-east Asian country’s low-cost production of metal vital to electric cars has made traditional suppliers uncompetitive, says Christel Bories
🇦🇷 Argentina markets double down on Milei as investors 'start to believe' (Reuters)
Amid a painful economic downturn and with the government strapped for cash, Milei has made tough austerity a key focus since taking office in December, helping the country post its first monthly fiscal surplus for over a decade in January, music to the ears of investors after years of over-spending.
The South American country's debt, however, remains risky with Argentina having defaulted nine times, most recently in 2020 before a major restructuring. Milei's economic fixes face serious hurdles and push-back on the streets and in Congress.
But sentiment has been helped by improving exports, with a trade surplus in two straight months on stronger grains production after last year's harvest was battered by drought.
Meanwhile, moves to mop up pesos in the market, including via short-term Treasury bills, have bolstered the currency and trimmed the gap between the controlled official exchange rate and popular parallel markets where dollars are more expensive.
📅 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):
Russian Federation Russian Presidency Mar 17, 2024 (t) Confirmed 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) Date not confirmed 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
South Africa South African National Assembly May 29, 2024 (d) Confirmed May 8, 2019
Venezuela Venezuela Presidency May 31, 2024 (t) Date not confirmed May 20, 2018
Mexico Mexican Senate Jun 2, 2024 (t) Date not confirmed Jul 1, 2018
Mexico Mexican Chamber of Deputies Jun 2, 2024 (t) Date not confirmed Jun 6, 2021
Mexico Mexican Presidency Jun 2, 2024 (t) Date not confirmed Jul 1, 2018
Mongolia Mongolian State Great Hural Jun 28, 2024 (t) Tentative Jun 24, 2020
Croatia Croatian Assembly Jun 30, 2024 (t) Date not confirmed Jul 5, 2020
Sri Lanka Sri Lankan Presidency Sep 30, 2024 (t) Date not confirmed
Czech Republic Czech Senate Sep 30, 2024 (t) Date not confirmed Sep 23, 2022
Georgia Georgian Parliament Oct 26, 2024 (d) Confirmed Oct 31, 2020
Uruguay Uruguayan Presidency Oct 27, 2024 (t) Date not confirmed
Uruguay Uruguayan Chamber of Representatives Oct 27, 2024 (t) Date not confirmed
Uruguay Uruguayan Chamber of Senators Oct 27, 2024 (t) Date not confirmed
Jordan Jordanian House of Deputies Oct 31, 2024 (t) Date not confirmed Nov 10, 2020
Georgia Georgian Presidency Nov 30, 2024 (t) Date not confirmed Nov 28, 2018
Romania Romanian Presidency Nov 30, 2024 (t) Date not confirmed Nov 24, 2019
Romania Romanian Chamber of Deputies Nov 30, 2024 (t) Date not confirmed Dec 6, 2020
Romania Romanian Senate Nov 30, 2024 (t) Date not confirmed
Namibia Namibian Presidency Nov 30, 2024 (t) Date not confirmed Nov 27, 2019
Namibia Namibian National Assembly Nov 30, 2024 (t) Date not confirmed Nov 27, 2019
Georgia Georgian Presidency Nov 30, 2024 (t) Date not confirmed Nov 28, 2018
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):
Ryde Group Ltd. RYDE Maxim Group, 3.0M Shares, $4.00-5.00, $13.5 mil, 2/26/2024 Week of
We are a Singapore-based ride-hailing app. (Incorporated in the Cayman Islands)
Our vision is to become a “Super mobility app” where multiple mobility tools can be accessed and function seamlessly out of a single app, offering ultimate convenience and reliability for our customers. We currently operate in Singapore, with our core businesses in the following segments: (i) mobility, where we provide on-demand and scheduled carpooling and ride-hailing services, matching riders to our driver partners; and (ii) quick commerce, where we provide on-demand, scheduled, and multi-stop parcel delivery services.
Our mobility business segment includes carpooling and ride-hailing.
Carpooling refers to services that connect riders with driver partners who provide rides in a variety of vehicles, such as cars of different seating capacities. Carpooling is about sharing rides and is provided via our RydePOOL service in our mobile app. We launched carpooling through our RydePOOL service in Singapore. RydePOOL allows real-time, on-demand bookings as well as advance bookings via our Schedule Pickup function, and only allows seating capacity for one rider per request, while riders may have to share their ride with other riders.
Ride-hailing refers to services that connect riders with private-hire or taxi drivers, with the rider having the option to choose the type of ride from a variety of vehicles, such as cars of different seating capacities and make. We started off with only carpooling services, but ride-hailing services was a natural adjacency for us as we have the technology and the platform to enable it. Our ride-hailing services allow riders to determine the number of seats they require for the trip, and offers real-time, on-demand bookings as well as advance bookings and multi-stop options. We started to grow our offerings in this space and currently have the following different service offerings: RydeX, RydeXL, RydeLUXE, RydeFLASH, RydePET, RydeHIRE, and RydeTAXI services.
Quick Commerce is a package delivery booking service, which enables driver partners to accept bookings for package delivery services through our driver partner app. Our partners that fulfill deliveries range from driver partners, to motorcyclists and walkers as well. Consumers can arrange for instant deliveries and cater for different package sizes. E-commerce businesses, Food and Beverage businesses and social sellers can utilise our last mile delivery services to their customers as an option as well. We provide our quick commerce service through our RydeSEND offering, which comprises of real-time on-demand, scheduled, and multi-stop parcel delivery services.
Acquisition of Meili
On February 20, 2023, we completed the purchase of Meili Technologies Pte. Ltd. (“Meili”), a last-mile on-demand logistics service provider in Singapore, where we purchased the entire issued and paid-up share capital of Meili for a purchase consideration of S$450,000 which shall be satisfied through the issuance of exchangeable notes to the shareholders of Meili in an amount equal to the proportion of the purchase consideration (“Meili Acquisition”). The Meili Acquisition enables us to expand our business into the quick commerce industry, thereby increasing our revenue streams, acquire a new consumer and driver partner’s base as well as improve our operational efficiency. By leveraging on the existing technology and operational infrastructure of Meili, our operational costs have reduced. We believe that the Meili Acquisition helps us to stay competitive in the quick commerce market and potentially grow our business.
*Note: Net loss and revenue figures are in U.S. dollars for the 12 months that ended June 30, 2023.
(Note: Ryde Group Ltd. increased the size of its micro-cap IPO in an F-1/A filing dated Jan. 18, 2024, to 3.0 million shares – up from 2.25 million shares originally – and kept the price range the same at $4.00 to $5.00 to raise $13.5 million. Background: Ryde Group Ltd. disclosed terms for its IPO in an F-1/A filing dated Oct. 2, 2023: 2.25 million Class A ordinary shares at a price range of $4.00 to $5.00 to raise $10.13 million. Background: Ryde Group Ltd. filed its F-1 on Aug. 31, 2023, without disclosing terms for its IPO. The company submitted confidential IPO documents to the SEC in May 2023.)
CDT Environmental Technology Investment Holdings Limited CDTG WestPark Capital, 2.0M Shares, $4.00-5.00, $9.0 mil, 3/4/2024 Week of
We are a waste treatment company that generates revenue through design, development, manufacture, sales, installation, operation and maintenance of sewage treatment systems and by providing sewage treatment services. We primarily engage in two business lines: sewage treatment systems and sewage treatment services in both urban and rural areas. Sewage treatment systems are sometimes also referred to herein as rural sewage treatment, and sewage treatment services are sometimes also referred to herein as septic tank treatment.
For sewage treatment systems, we sell complete sewage treatment systems, construct rural sewage treatment plants, install the systems, and provide on-going operation and maintenance services for such systems and plants in China for municipalities and enterprise clients. We provide decentralized rural sewage treatment services with our integrated and proprietary system using our advanced quick separation technology. Our quick separation technology uses a biochemical process for economically and sufficiently treating rural sewage. In addition, our integrated equipment generally has a lifespan of over 10 years without replacement of the core components. Due to our quick separation technology and our technological expertise and experience, our integrated rural sewage treatment system produces a high quality of outflowing water, with high degrees of automation, efficient construction and start up, and low operational costs. In addition, our equipment is typically able to process abrupt increases of sewage inflows and high contamination. Our integrated equipment consists of a compact structure and is buried underground in order to minimize changes to the surrounding environment.
**Note: Net income and revenue figures are in U.S. dollars for the 12 months that ended June 30, 2023.
(Note: CDT Environmental Technology Investment Holding Limited updated its financial statements for the six-month period that ended June 30, 2023, in an F-1/A filing dated Nov. 20, 2023.)
(Note: CDT Environmental Technology Investment Holding Limited cut its IPO’s size by about 35 percent to 2.0 million shares – down from 3.07 million shares – and increased the price to a range of $4.00 to $5.00 – up from an assumed IPO price of $4.00 – to raise $9.0 million, according to an F-1/A filing dated March 27, 2023. CDT Environmental Technology Investment Holdings Limited updated its financial statements in an F-1/A dated Feb. 24, 2023. The company changed its sole book-runner to WestPark Capital from ViewTrade Securities in an F-1/A filing in June 2021. The F-1 was filed on Jan. 15, 2021. The company submitted confidential IPO documents to the SEC on Nov. 15, 2019.)
Intelligent Group Limited INTJ WestPark Capital, 2.0M Shares, $4.00-5.00, $9.0 mil, 3/4/2024 Week of
(Incorporated in the British Virgin Islands)
We are a professional services provider in Hong Kong that engages in the business of providing Financial PR services. Our Financial PR services include arranging press conferences and interviews, participating in the preparation of news releases and shareholders’ meetings, monitoring news publications, identifying shareholders, targeting potential investors, organizing corporate events, and implementing crisis management policies and procedures.
We aim to build an effective channel for the exchange of information between the public, investors and our clients. We provide information about our clients to the public and investors in a manner designed to enable them to understand our clients’ operations more easily. We also provide training to our clients so as to allow them to understand public relations tactics and practice. The objective is to create a positive market image of our clients to the public.
Our Industry
Hong Kong, which occupies a unique geographic position, continues to achieve remarkable expansion in its role as a regional financial leader. As one of the financial centers in the Asia-Pacific region, Hong Kong attracts a number of public relations firms to provide services in Hong Kong, mainly in Financial PR, corporate public relations and consumer marketing services. According to the website of the HK Stock Exchange — Annual Market Statistics (As of December 30, 2022) (source: https://www.hkex.com.hk/-/media/HKEX-Market/Market-Data/Statistics/Consolidated-Reports/Annual-Market-Statistics/e_2022-Market-Statistics.pdf and https://www.hkex.com.hk/-/media/HKEX-Market/Market-Data/Statistics/Consolidated-Reports/Annual-Market-Statistics/2021-Market-Statistics_e.pdf), Hong Kong has ranked number four and four in the world in 2021 and 2022, respectively, in terms of the amount of funds raised through IPOs. According to the market statistics published by the HK Stock Exchange, the total funds raised through IPOs on the HK Stock Exchange in 2021 and 2022 were approximately HK$328.9 billion and HK$99.1 billion, respectively. The total post-IPO funds raised by listed companies on the HK Stock Exchange in 2022 amounted to HK$147.3 billion and, together with funds raised by IPOs, the total funds raised on the Main Board (“Main Board”) and GEM Board of the Hong Kong Stock Exchange, amounted to approximately HK$251.9 billion. Despite the decrease in the total funds raised in 2022 due to the impact of resurgences of the COVID-19 outbreak, the capital market and fund-raising activities are expected to rebound in 2023.The demand for Financial PR services is expected to correlatively rebound.
Competitive Strengths
We believe the following competitive strengths differentiate us from our competitors:
• We provide comprehensive Financial PR services to our clients;
• We provide extensive coverage in media monitoring and promotion services for our clients;
• We have a strong client base; and
• We have experienced and competent management and professional staff.
Our Strategy
We intend to pursue the following strategies to further expand our business:
• Further strengthening our Financial PR business in Hong Kong;
• Expanding our market presence in other international capital markets, in particular the U.S.; and
• Enhancing the automation and establishment of our virtual Financial PR services.
**Note: Net income and revenue are for the 12 months that ended May 31, 2023
(Note: Intelligent Group Limited filed an F-1/A dated Nov. 21, 2023. The terms of its IPO: 2 million ordinary shares at $4.00 to $5.00 to raise $9.0 million. )
Junee Limited JUNE Spartan Capital Securities, 2.0M Shares, $4.00-6.00, $10.0 mil, 3/4/2024 Week of
**Note from the Prospectus: Junee Limited is not a Chinese or Hong Kong operating company; it is a holding company incorporated in the British Virgin Islands (BVI). As a limited company with no material operations, our operations are conducted by our subsidiary, OPS Interior Design Consultant Limited, or “OPS HK”, in Hong Kong. This is an offering of the Ordinary Shares of Junee Limited, the holding company incorporated in the BVI, instead of shares of our operating entity in Hong Kong, OPS HK. You may never directly hold any equity interest in our operating entity. (Incorporated in the British Virgin Islands)
Our subsidiary, OPS HK, provides quality interior design, fit-out and maintenance services to both residential and commercial clients in the Hong Kong interior design market. Since its inception, it has been dedicated to including preliminary consultations, conceptualizing clients’ design ideas with layout plans, and producing detailed design drawings. The fit-out work generally includes any activities intrinsic to making an interior space suitable for residential or commercial purposes. OPS HK also provides a broad range of repair and maintenance services, including routine home condition upkeep services. OPS HK won the Muse Design Award in 2020. We were given the Most Valuable Companies in Hong Kong Award 2020 by Mediazone.
Our vision is to successfully utilize the best and the brightest professionals in the industry in Hong Kong. We strive to cultivate, retain and nurture talent by providing a career rather than a job. We endeavor to foster an employment environment with prosperity and growth.
Note: Net income and revenue are for the year ended June 30, 2023.
**Note: Junee is a holding company with no business operation and uses a structure that involves an operating subsidiary based in Hong Kong. This structure involves risks to the investors, and Chinese regulatory authorities could disallow this structure, which would likely result in a material change in Junee’s operations and/or a material change in the value of the securities we are registering for sale, including the risk that such event could cause the value of such securities to significantly decline or become worthless. Investors are cautioned that you are buying shares of a BVI holding company with operations solely conducted in Hong Kong by its subsidiary, OPS HK. You are not directly investing in, and may never hold equity interests of OPS HK. Investing in our Ordinary Shares involves a high degree of risk, including the risk of losing your entire investment.
(Note: Junee Limited disclosed its financial results for the fiscal year that ended June 30, 2023, in an FWP (Free Writing Prospectus) filed with the SEC in January 2024.)
(Note: Junee Limited named Spartan Capital Securities as its sole book-runner to replace Pacific Century Securities in an F-1/A filing dated Sept. 5, 2023. Background: Junee Limited cut its IPO’s size to 2.0 million shares – down from 5.0 million shares – and kept the price range at $4.00 to $6.00 – to raise $10.0 million, according to an F-1A filing dated July 28, 2023. In that July 28, 2023, filing with the SEC, Junee Limited disclosed that Pacific Century Securities had been named the sole book-runner – an update from the original joint book-running team of Univest Securities and Pacific Century Securities.)
(Background from 2022: Junee Limited filed an F-1/A dated Dec. 15, 2022, with updated financial figures for the year ended June 30, 2022. Junee Limited disclosed terms for its IPO – 5.0 million shares at $4.00 to $6.00 to raise $25 million – and disclosed its proposed stock symbol “JUNE” in an F-1/A filing dated Sept. 8, 2022. In the IPO, the company is offering 3.57 million shares (3,571,429 shares) and the company’s anticipated IPO proceeds are $17.86 million. Of the 5.0 million shares in the IPO, a total of 1.43 million shares (1,428,571 shares) are being offered by the selling shareholder, OPS Holdings Limited. The company will not receive any proceeds from the sale of the selling shareholder’s shares. Junee Limited filed to go public with its F-1 filing dated July 13, 2022.)
Trident Digital Tech Holdings TDTH Eddid Securities USA, 1.8M Shares, $5.00-7.00, $10.8 mil, 3/4/2024 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.
(Note: Trident Digital Tech Holdings adjusted the terms of its IPO in an F-1/A dated Feb. 20, 2024: Each American Depositary Share now represents eight Class B ordinary shares – a change from the original terms in which each ADS represented 10 ordinary shares. The IPO’s terms: 1.8 million ADS at a price range of $5.00 to $7.00 to raise $10.8 million. Background: T rident Digital Tech Holdings cut its IPO’s size by reducing the number of shares to 1.8 million American Depositary Shares (ADS) – down from 1.875 million ADS – and slashing the price range to $5.00 to $7.00 – down from $8.00 to $10.00 – to raise $10.8 million in an F-1/A filing dated Feb. 7, 2024. Background: Trident Digital Tech Holdings filed an F-1/A dated Jan. 19, 2024, in which it named Eddid Securities USA as its sole book-runner to replace US Tiger Securities. Background: 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.)
SKK Holdings Limited SKK Bancroft Capital LLC, 2.5M Shares, $4.00-5.00, $ 11.3 mil, 3/11/2024 Week of
We are a civil engineering service provider that specializes in subsurface utility works in Singapore and have participated in numerous public utility projects, including but not limited to power and telecommunication cable laying works, water pipeline works and sewer rehabilitation works. (Incorporated in the Cayman Islands)
We were founded in 2013 by Mr. Sze, our Chief Executive Officer, together with, among others, Mr. Ng, one of our Executive Directors and our Chief Operating Officer. Our Executive Officers including Mr. Sze, Mr. Ng, Mr. Wong and Mr. Tang have over 28, 26, 18 and 15 years of experience in the field, respectively.
As of the date of this prospectus, we were equipped with a fleet of five HDD rigs, 18 excavators and 36 vehicles and a staff over 140. We are one of the five major contractors in Singapore for horizontal directional drilling, or HDD works.
*Note: Net income and revenue are for the 12 months that ended June 30, 2023 (in U.S. dollars converted from Singapore dollars)
(Note: SKK Holdings Limited filed its F-1 on Jan. 29, 2024, and disclosed terms for its IPO: 2.5 million ordinary shares at a price range of $4.00 to $5.00 to raise $11.25 million. Of the 2.5 million ordinary shares in the IPO, the company is offering 1.75 million shares and selling stockholders are offering 750,000 shares. The company will not receive any proceeds from the sale of the selling stockholders’ shares. Background: SKK Holdings filed confidential IPO documents with the SEC on Sept. 20, 2023.)
🏁 Emerging Market ETF Launches
Climate change and ESG are some recent flavours of the month for most new ETFs. Nevertheless, here are some new frontier and emerging market focused ETFs:
02/07/2024 - Direxion Daily MSCI Emerging Markets ex China Bull 2X Shares XXCH - Equity, leveraged
01/11/2024 - Matthews Emerging Markets Discovery Active ETF MEMS - Active, equity, small caps
01/10/2024 - Matthews China Discovery Active ETF MCHS - Active, equity, small caps
11/07/2023 - Global X MSCI Emerging Markets Covered Call ETF EMCC - Equity, leverage
11/07/2023 - Avantis Emerging Markets Small Cap Equity ETF AVEE - Active, equity, small caps
09/22/2023 - Matthews Asia Dividend Active ETF ADVE - Active, equity, Asia
09/22/2023 - Matthews Pacific Tiger Active ETF ASIA - Active, equity, Asia
09/22/2023 - Matthews Emerging Markets Sustainable Future Active ETF EMSF - Active, equity, ESG
09/22/2023 - Matthews India Active ETF INDE - Active, equity, India
09/22/2023 - Matthews Japan Active ETF JPAN - Active, equity, Japan
09/22/2023 - Matthews Asia Dividend Active ETF ADVE - Active, equity, Asia
08/25/2023 - KraneShares Dynamic Emerging Markets Strategy ETF KEM - Active, equity, emerging markets
08/18/2023 - Global X India Active ETF NDIA - Active, equity, India
08/18/2023 - Global X Brazil Active ETF BRAZ - Active, equity, Brazil
07/17/2023 - Matthews Korea Active ETF MKOR - Active, equity, South Korea
05/18/2023 - Putnam Emerging Markets ex-China ETF PEMX - Active, value, growth stocks
05/11/2023 - JPMorgan BetaBuilders Emerging Markets Equity ETF BBEM - Passive, large + midcap stocks
03/16/2023 - JPMorgan Active China ETF JCHI - Active, equity, China
03/03/2023 - First Trust Bloomberg Emerging Market Democracies ETF EMDM - Principles-based
1/31/2023 - Strive Emerging Markets Ex-China ETF STX - Passive, equity, emerging markets
1/20/2023 - Putnam PanAgora ESG Emerging Markets Equity ETF PPEM - Active, equity, ESG, emerging markets
1/12/2023 - KraneShares China Internet and Covered Call Strategy ETF KLIP - Active, equity, China, options overlay, thematic
1/11/2023 - Matthews Emerging Markets ex China Active ETF MEMX - Active, equity, emerging markets
12/13/2022 - GraniteShares 1.75x Long BABA Daily ETF BABX - Active, equity, leveraged, single stock
12/13/2022 - Virtus Stone Harbor Emerging Markets High Yield Bond ETF VEMY - Active, fixed income, junk bond, emerging markets
9/22/2022 - WisdomTree Emerging Markets ex-China Fund XC - Passive, equity, emerging markets
9/15/2022 - KraneShares S&P Pan Asia Dividend Aristocrats Index ETF KDIV - Passive, equity, Asia, dividend strategy
9/15/2022 - OneAscent Emerging Markets ETF OAEM - Active, Equity, emerging markets, ESG
9/9/2022 - Emerge EMPWR Sustainable Select Growth Equity ETF EMGC - Active, equity, emerging markets
9/9/2022 - Emerge EMPWR Unified Sustainable Equity ETF EMPW - Active, equity, emerging markets
9/8/2022 - Emerge EMPWR Sustainable Emerging Markets Equity ETF EMCH - Active, equity, emerging markets, ESG
7/14/2022 - Matthews China Active ETF MCH - Active, equity, China
7/14/2022 - Matthews Emerging Markets Equity Active ETF MEM - Active, equity, emerging markets
7/14/2022 - Matthews Asia Innovators Active ETF MINV - Active, equity, Asia
6/30/2022 - BondBloxx JP Morgan USD Emerging Markets 1-10 Year Bond ETF XEMD - Passive, fixed income, emerging markets
5/2/2022 - AXS Short CSI China Internet ETF SWEB - Active, inverse, thematic
4/27/2022 - Dimensional Emerging Markets High Profitability ETF DEHP - Active, equity, emerging markets
4/27/2022 - Dimensional Emerging Markets Core Equity 2 ETF DFEM - Active, equity, emerging markets
4/27/2022 - Dimensional Emerging Markets Value ETF DFEV - Active, equity, emerging markets
4/27/2022 - iShares Emergent Food and AgTech Multisector ETF IVEG - Passive, equity, thematic [Mostly developed markets]
4/21/2022 - FlexShares ESG & Climate Emerging Markets Core Index Fund FEEM - Passive, equity, ESG
4/6/2022 - India Internet & Ecommerce ETF INQQ - Passive, equity, thematic
2/17/2022 - VanEck Digital India ETF DGIN - Passive, India market, thematic
2/17/2022 - Goldman Sachs Access Emerging Markets USD Bond ETF GEMD - Passive, fixed income, emerging markets
1/27/2022 - iShares MSCI China Multisector Tech ETF TCHI - Passive, China, technology
1/11/2022 - Simplify Emerging Markets PLUS Downside Convexity ETF EMGD - Active, equity, options strategy
1/11/2022 - SPDR Bloomberg SASB Emerging Markets ESG Select ETF REMG - Passive, equity, ESG
🚽 Emerging Market ETF Closures/Liquidations
Frontier and emerging market highlights:
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 (February 26, 2024) was also published on our website under the Newsletter category.