Emerging Market Links + The Week Ahead (January 8, 2024)
Foreign funds increase China stock sell-off, Alibaba-Lazada troubles, Adani stocks regain half of losses, South Africa’s opposition splinters, EM stock picks and the week ahead for emerging markets.
Foreign funds accelerated their China stock sell-off in December according to Morgan Stanley. China and Hong Kong stocks saw a combined net outflow of $3.8 billion from active long-only managers - the worst month in 2023 and the third-largest monthly outflow on record - with government measures to boost investor sentiment so far doing little to stem these declines.
Nevertheless, and as a tweet covered in our January 1st post mentioned, China is the world’s second largest economy and there will always be investible pockets. But they probably aren’t going to be the growth stocks of yesterday (aka the big tech names like troubled Alibaba who’s Lazada subsidiary has just announced layoffs) that many investors are still enamored or more familiar with.
🔬 Emerging Market Stock Pick Tear Sheets
$ = behind a paywall
EM Fund Stock Picks & Country Commentaries (January 7, 2024) $
Indonesia trip report (+local hospitality pick), investing in frontier markets, Chinese railroad + automation & Taiwanese fabless semiconductor holdings, 2 funds already with December updates, etc.
📰🔬 Emerging Market Stock Picks / Stock Research
$ = behind a paywall / 🗃️ = Archived article
🌏 With big layoffs, Lazada is digging in (Momentum Works) & Lazada cuts staff amid speculation of upcoming IPO (The Straits Times)
Note: Lazada is now a subsidiary of Alibaba (NYSE: BABA).
This week, news emerged that Lazada is laying off people across multiple locations including Singapore, Indonesia, Thailand, Vietnam, China. People affected received notice on 2nd of January and the talks with HR are still happening as we speak.
It seems that Lazada is digging in for the long term, conserving resources, and becoming more agile.
Some thoughts:
🇨🇳 Inside the crisis at Alibaba: how China’s best-known tech group lost its way (FT) $ 🗃️
Once Asia’s most valuable company, the group has fallen behind rivals amid a chaotic restructuring
🇨🇳 East Buy drama offers lesson on the power of key influencers (Bamboo Works)
The clash between the e-commerce company’s CEO and its top livestreaming host touched off a roller coaster ride for its shares
East Buy Holding Ltd (HKG: 1797 / OTCMKTS: KLTHF) fired its longtime chief Sun Dongxu after the chairman of its parent company sided with the company’s top online influencer in a dispute
Such disputes could become less common as livestreaming e-commerce platforms move away from costly and fickle human influencers to computer-generated virtual hosts
🇨🇳 Joyy stuck with unwanted China business after $3.6 billion Baidu sale collapses (Bamboo Works)
The livestreaming company may be forced to find a new buyer for its Chinese business at a far lower price after its sale to Baidu announced in 2020 failed to get regulatory approval
JOYY Inc (NASDAQ: YY)’s $3.6 billion sale of its China livestreaming business to Baidu (NASDAQ: BIDU) has collapsed, more than three years after the deal was first announced
Joyy stopped including the China livestreaming business in its financial results as early as 2021, and was recasting itself as a Singapore-based livestreaming company
🇨🇳 Anta Sports (2020 HK): In-Line 4Q23 Operational Update + Submission Of Amer Sports Listing On NYSE (Smart Karma) $
ANTA Sports Products (HKG: 2020 / FRA: AS7 / OTCMKTS: ANPDY / OTCMKTS: ANPDF) announced a set of in-line 4Q23 operating data.
In addition, the company has filed a registration statement with the U.S. SEC on January 4 for a proposed listing of Amer Sports on the New York Stock Exchange.
Anta currently trades at a forward PE of 17x based on estimated 2024 earnings, compared to a historical forward PE of 24x since 2017.
🇨🇳 Li Ning wants to be China’s answer to Nike (FT) $ 🗃️
Li Ning (HKG: 2331 / FRA: LNLB / FRA: LNL / OTCMKTS: LNNGY / LNNGF)
Apparel maker struggling to broaden appeal overseas as shares fall 82% from 2021 peak
🇨🇳 China Tourism Group (601888 CH | BUY | CNY): New Duty-Free Contracts with Airports, Slight Negative (Smart Karma) $
China Tourism Group Duty Free (HKG: 1880 / SHA: 601888) announced last week a new supplementary contract for its duty-free airport businesses in Beijing and Shanghai airports
The new deal aims to promote collaborations between the airports and CTG, acting like true partners. However, we think it is more positive for airports and slight detriment to CTG
Maintain our Bullish call with an unchanged target price of CNY106 (+27% UPSIDE), based on the company's lowest recorded PE ratio in the past 10 years of 23.2x into FY24
🇨🇳 Fosun Tourism embarks on new journey with departure of big-name director (Bamboo Works)
Henri Giscard d’Estaing has left the board of Fosun Tourism (HKG: 1992), which is refocusing on China and Southeast Asia, to ‘devote additional time and attention’ to his role leading Club Med
Longtime Club Med President Henri Giscard d’Estaing has resigned from the board of the company’s parent, Fosun Tourism
Club Med’s business has rocketed post-Covid, dampening speculation that Fosun Tourism may be considering a sale of the French resort operator
🇨🇳 China's largest bubble tea makers Mixue and Guming apply for Hong Kong IPO (Reuters)
Mixue, which has roughly 36,000 stores, is looking to raise $500 million to $1 billion in its Hong Kong IPO, while Guming, with 9,000, is aiming to raise $300 million to $500 million, according to a source with direct knowledge of the matter.
Bubble tea is one of the few bright spots on the consumer front in China, with low-price operators doing particularly well.
Shares in Hong Kong-listed Nayuki Holdings (HKG: 2150 / OTCMKTS: NYKHF), the country's only publicly traded bubble tea chain, have dropped roughly 80% since their debut in 2021, when consumer confidence was higher.
🇨🇳 MIXUE Group IPO: The Investment Case (Smart Karma) $
Mixue Group (MIX HK), a world-leading freshly made drinks company, filed for an HKEx IPO to raise US$0.5-1.0 billion.
Mixue is China’s largest and the world’s second-largest freshly made drinks company, in terms of both the number of stores and cups sold in 9M23, according to CIC.
The investment case rests on a strong brand, leading market share, high revenue growth, robust cost control, stable profitability and cash generation.
🇨🇳 With its sale to AstraZeneca, Gracell blazes exit trail for cash-challenged Chinese biotechs (Bamboo Works)
The Chinese cell therapy specialist, whose core product is still in phase 1 trials, will avoid future cash flow difficulties by selling itself to the European giant
AstraZeneca (NASDAQ: AZN) will acquire Chinese cell therapy maker Gracell Biotechnologies (NASDAQ: GRCL) for up to $1.2 billion, representing an 86% premium to the company’s pre-announcement share price
The U.S. FDA announced an investigation into a potential severe risk of T-cell malignancies associated with CAR-T therapy in November, clouding the sector’s prospects
🇨🇳 There's Something About Air Cargo (Part II) (Smart Karma) $
Air cargo rates from Hong Kong and Shanghai have plunged in the past week, as spot demand dries up post-Christmas rush and reverts to previous (lower) contractual rates
Sea freight rates surged due to the Red Sea/Suez situation, with further increases expected. China to Europe air freight is highly competitive, potentially prompting a shift from sea freight
Chinese air carriers and Cathay Pacific [Swire Pacific Limited (HKG: 0019 / HKG: 0087 / OTCMKTS: SWRAY / OTCMKTS: SWRAF)] will record stronger than expected 2H23 performance on air freight, and we think air freight should continue to be firm in 1Q24
🇭🇰 The Middle East beckons for Hong Kong’s Regal hotel chain (Bamboo Works)
Facing an outflow of western funds, Hong Kong has been wooing Middle East investors and has enlisted Saudi Arabia as a partner in the hotel business
Regal Hotels International Holdings (HKG: 0078 / FRA: RH6B) and its sister property company Cosmopolitan International Holdings (HKG: 0120) have signed a memorandum of cooperation with Saudi Arabia to develop hotels in the Middle East
The partnership envisages an investment of up to $5 billion to build 50 hotels in the region, of which 30 would be in Saudi Arabia
🇲🇴 Fitch upgrades SJM outlook, EBITDA likely to double (Smart Karma) $
See our Macau ADRs list.
Fitch Ratings Inc forecasts SJM Holdings (HKG: 0880 / FRA: 3MG1 / KRX: 025530 / OTCMKTS: SJMHF / SJMHY)’s earnings before interest, taxation, depreciation and amortisation (EBITDA) to reach HKD3.6 billion (US$461.1 million) this year, up from an estimated HKD1.7 billion in 2023.
For 2025 and 2026, the Macau casino operator’s EBITDA is expected to grow to respectively HKD5.2 billion and HKD6.6 billion, while its EBITDA leverage is expected to decline to 5.3 times in 2025 and 3.7 times in 2026, stated the ratings agency.
In a Thursday report, Fitch said it had revised the outlook on SJM Holdings’ long-term foreign-currency issuer default rating to “stable” from “negative”, and affirmed the firm’s rating at ‘BB-’.
The stable outlook “reflects the robust recovery” in the number of visitor arrivals and gaming revenue in Macau, “despite the economic downturn in China,” said the institution.
🇰🇷 Paradise Co casino sales top US$567mln in 2023 (Smart Karma) $
Paradise Co Ltd (KOSDAQ: 034230), an operator in South Korea of foreigner-only gaming venues, reported casino revenue of just above KRW744,15 billion (US$567.8 million) for full-year 2023, up 112.8 percent from the previous year, according to a Tuesday filing to the Korea Exchange.
No commentary on the reasons for revenue fluctuations is given in the company’s monthly updates.
🇰🇷 Woori Financial: Consider International Expansion And M&A (Seeking Alpha) $
Woori Financial Group (NYSE: WF) aims to grow the profit contribution from its overseas banking businesses over time with a focus on specific Southeast Asian markets like Indonesia and Cambodia.
Woori Financial could find it tough to execute on future M&A deals, due to constraints associated with deal pricing and capital adequacy.
I make no changes to my existing Hold rating for WF following an evaluation of Woori Financial's foreign markets expansion plans and its inorganic growth prospects.
🇰🇷 Hyundai Hyms IPO Valuation Analysis (Smart Karma) $
Our base case valuation of Hyundai Hyms is implied target price of 8,025 won per share, which is 27% higher than the high end of the IPO price range.
We believe Hyundai Hyms' valuation premium to the comps is appropriate due to much stronger operating profit growth and its strong relationships with HD Hyundai Heavy Industries.
Hyundai Hyms's main business includes shipbuilding equipment and related services. The company manufactures a wide variety of items necessary for ship construction, such as ship unit blocks and piping manufacturing.
🇰🇷 End of Mandatory Lock-Up Periods for 41 Companies in Korea in January 2024 (Smart Karma) $
We discuss the end of the mandatory lock-up periods for 41 stocks in Korea in January 2024, among which 4 are in KOSPI and 37 are in KOSDAQ.
These 41 stocks on average could be subject to further selling pressures in January and could underperform relative to the market.
Among these 41 stocks, top five market cap stocks include Posco International Corp (KRX: 047050), Doosan Robotics (KRX: 454910), Rainbow Robotics (KOSDAQ: 277810), Qualitas Semiconductor (KOSDAQ: 432720), and PhilEnergy (KOSDAQ: 378340).
🇸🇬 🇲🇾 Return of Chinese tourists to benefit Genting group: Maybank (GGRAsia)
The Genting group’s casino operations in Asia – namely in Singapore and Malaysia – are likely to benefit in 2024 from what Maybank Investment Bank Bhd calls the “en masse return of Chinese tourists”.
Maybank’s analyst Samuel Yin Shao Yang added that the Genting group – via Genting Singapore (SGX: G13 / FRA: 36T / OTCMKTS: GIGNF / GIGNY) –“may jointly bid for a Thai integrated resort (IR) licence should Thailand liberalise its IR industry”.
In a separate Saturday note on Genting Malaysia (KLSE: GENM), Maybank forecast that visitor arrivals to the firm’s Resorts World Genting – Malaysia’s sole casino resort – “ought to recover to pre-Covid-19 levels this year”.
🇸🇬 Nanofilm Technologies Announced a European Acquisition: Can its Share Price Rebound? (The Smart Investor)
It was a tough year for Nanofilm Technologies (SGX: MZH / OTCMKTS: NNFTF) in 2023.
Shares of the nanotechnology specialist have fallen by nearly a third last year led by lower demand for the group’s products amid a slump in the electronics sector.
Things could be looking up this year, though.
Nanofilm just announced the acquisition of AxynTec for €6.8 million to spearhead its European expansion.
With this acquisition, could the group’s share price see a rebound in 2024?
🇸🇬 Karooooo: Profitable Software Opportunity Based On Cartrack IoT (Seeking Alpha) $
Karooooo (NASDAQ: KARO) is a unique software provider with exposure to emerging markets, offering car tracking software and other services.
The company's Cartrack platform has seen strong growth and high customer retention rates.
The global expansion of Karooooo presents both risks and opportunities, but the company's financial profile and valuation are favorable.
🇸🇬 Mapletree Industrial Trust: It Isn't Just About Rate Cuts (Seeking Alpha) $
Mapletree Industrial Trust (SGX: ME8U / OTCMKTS: MAPIF)'s unit price increased by 8.2% since the middle of December 2023, as the interest rate outlook has become more favorable.
However, the REIT's financing cost could still increase going forward due to the expiry of fixed rate hedges and the maturing of debt.
Investors should also pay attention to the REIT's risks pertaining to tenant health and lease expiry.
I leave my existing Hold rating for Mapletree Industrial Trust stock unchanged, after assessing the REIT's forward distribution yield and distribution per unit growth outlook.
🇮🇳 Ola Electric IPO: The Bull Case (Smart Karma) $
Ola Electric (1700674D IN), the largest Indian electric two-wheel vehicles (E2W) player, is seeking US$660 million from a primary raise along with a secondary raise at a US$7-8 billion valuation.
Ola is the best-selling E2W brand in India in terms of monthly E2W registrations on the VAHAN Portal of the Ministry of Road Transport and Highways.
The bull case rests on rising market share in a growing market, a rapid growth phase, increasing gross margin and a favourable cash conversion cycle.
🇮🇳 Adani stocks regain half of losses from Hindenburg report fallout (FT) $ 🗃️
Indian billionaire’s listed businesses have recovered nearly $46bn in market capitalisation
🇧🇩 Bangladesh Stock Picks | Quarterly Updates | OLYMPI, SQTT, BPML (Smart Karma) $
Olympic Industries Ltd (DSE: OLIS) [one largest manufacturers, distributors and marketers of fast moving consumer goods in Bangladesh] sustained and improved profitability despite the revenue drop.
Square Textiles Ltd (DSE: SQTX) faced challenges in FY23 but now seems to be turning around.
Bashundhara Paper Mills Ltd (DSE: BASH) saw a weak performance driven by lower profitability due higher interest rates on borrowings.
🇬🇷 Titan Cement: Trading At Just 7 Times Earnings (Seeking Alpha) $
Titan Cement (EBR: TITC / FRA: TCJ) has seen strong financial results in 2023, with record earnings and a substantial improvement in margins.
The company's cash flow statement confirms that it's generating significant cash and has a strong balance sheet.
Titan Cement has ambitious targets for 2026, including increasing revenue from divisions other than cement and reducing net debt.
🇭🇺 Wizz Air: Potential To Disrupt The Airline Industry With Market Share Growth (Rating Upgrade) (Seeking Alpha) $
Wizz Air (LSE: WIZZ / OTCMKTS: WZZZY / FRA: WI20 / FRA: WI2)’s revenue is growing impressively, driven by inflationary benefits and the expansion of its fleet.
With its load factor exceeding 90% despite this, Wizz is well-placed to maintain its current trajectory.
Management is planning a significant expansion East alongside market share in Europe, with a substantial orderbook that materially rivals its peers. Should this be delivered, growth will exceed 10%.
Wizz’s margins are fantastic, with scope for an EBITDA margin in excess of 20%. This is currently funding expansion but positions Wizz for substantial distributions in the future.
Wizz is outperforming its peers yet is trading at a ~69% discount, implying value. We believe its performance and valuation now warrant a buy rating.
🇵🇱 Buying this Compounding Machine (Compounding Quality)
Text SA (WSE: TXT / LON: 0QTE / FRA: 886 / OTCMKTS: LCHTF)
Over the past few years, the stock has been a Compounding Machine. Since its IPO in 2014, They compounded at 25.1% per year.
🇵🇱 Spyrosoft S.A. ($SPR.WA): Consolidating A Large Boring Industry (Fundasy Investor)
In the past four years, Spyrosoft SA (WSE: SPR / FRA: 2NP) has delivered nearly a 666% gain for shareholders. In that timeframe, the business has done exceptionally well:
Revenue has increased 1190% (98% cagr)
Shares Outstanding up 4.1% (1.1% cagr)
Book Value / Share is up 2100% (128% cagr)
EPS (Pln) is up 513% (62% cagr)
🇧🇷 Banco BBVA Argentina: Caution Warranted Ahead Of More 'Shock Therapy' (Seeking Alpha) $
Like the rest of the banking sector, Bbva Argentina (NYSE: BBAR) is on course for a highly volatile near-term path.
The guidance bar also seems a tad high, and the bank may need to reset expectations sooner rather than later.
There are compelling reasons to own Banco BBVA Argentina stock long term, but re-rated valuations limit the safety margin.
🇧🇷 🇰🇾 StoneCo: More Growth To Come (Seeking Alpha) $
StoneCo Ltd (NASDAQ: STNE) has shown strong growth in its Q3 results, with a 25% YoY increase in total revenue and a 3.3 times increase in adjusted EBT.
The company has a significant amount of cash, equal to about 38% of its market capitalization, and has been buying back shares at a faster rate than ever before.
StoneCo is experiencing rapid growth in both its financial services and software segments, with increased TPV and client base in the financial services business and strong software revenues.
In 2024, STNE should see EPS growth, improved margins, and increased market share, likely benefiting its shares for another positive year.
I calculated the stock's upside at ~35.8%. It's still a 'Buy'.
🇧🇷 Magazine Luiza: Best To Avoid This Brazilian Retailer (Seeking Alpha) $
Magazine Luiza (BVMF: MGLU3 / OTCMKTS: MGLUY) or Magalu's stock surged 93,000% (2015-2020) but faced a downturn, dropping 71%, 62%, and 20% in 2021, 2022, and 2023 in Ibovespa.
Accounting issues in Q3 2023 impacted shareholder equity, raising concerns about undisclosed irregularities.
Financially, Magalu grapples with increasing debt, equity dilution, and liquidity challenges, with a quick ratio of 0.64.
While valuations align with reality, high leverage, accounting concerns, and short-term pressures warrant a neutral recommendation.
🇨🇱 While Enel Chile Continues To Advance, It's Hard To Cheer Its Value Proposition (Seeking Alpha) $
Enel Chile (NYSE: ENIC) plans to increase its renewable energy capacity to nearly 80% by 2026.
The company aims to expand its battery and energy storage capacity by 700 MW, with an estimated cost of $0.6 billion.
Enel Chile is advocating for regulatory and remuneration reforms in Chile's distribution segment to support extensive electrification.
Shares do not offer a bargain at today's levels.
🇨🇴 The Sell-Side Appears Too Negative On Ecopetrol (Seeking Alpha) $
Ecopetrol SA (NYSE: EC) is the most dominant oil producer in Colombia.
Its CAPEX plan highlights continued capital discipline.
The sell-side is too negative on EC and the company's business model is resilient to lower oil and gas prices.
🇲🇽 Wal-Mart De MeXico: Long-Term Hold With Current Headwinds (Seeking Alpha) $
Wal-Mart de Mexico SAB de CV (BMV: WALMEX)’s Q3 performance was reasonably strong, with operational efficiencies offsetting the lack of operating leverage that we typically see in the retail industry.
Despite a promising entry into Q4, economic headwinds persist, while other trends discussed here could strengthen those headwinds.
If you've been a long-term holder of Walmex, consider taking some profits now before the headwinds really kick in.
Those who are underwater or near breakeven should sell the stock, but long-term investors might want to hold on to this retailer, whose growth story is still unfolding.
🇲🇽 I'm Waiting For América Móvil's Margin Expansion (Seeking Alpha) $
America Movil SAB de CV (NYSE: AMX)'s Q3 2023 earnings show strength in volume drivers at the expense of rate.
The company is facing headwinds with volatility in FX and macroeconomic factors impacting its performance.
While the stock price has decreased, concerns about long-term value and the need for margin expansion remain, leading to a hold rating.
📰🔬 Further Suggested Reading
$ = behind a paywall / 🗃️ = Archived article
🇨🇳 Foreign funds accelerated China equity sell-off in December -Morgan Stanley (Reuters)
China and Hong Kong equities saw a combined net outflow of $3.8 billion from active long-only managers last month, the worst month in 2023 and the third-largest monthly outflow on record, Morgan Stanley's quantitative research team said in a report released to clients on Tuesday.
In 2023, Tencent (HKG: 0700 / LON: 0LEA / FRA: NNND / OTCMKTS: TCEHY), Alibaba (NYSE: BABA), Kweichow Moutai (SHA: 600519) and NetEase (NASDAQ: NTES) topped the weight additions list, while JD.com (NASDAQ: JD), YUM China (NYSE: YUMC) and AIA Group (HKG: 1299 / FRA: 7A2 / OTCMKTS: AAIGF)) were the most sold, according to Morgan Stanley.
🇨🇳 Bargain-basement Chinese stocks still aren’t cheap enough (FT) $ 🗃️
Drastic measures to boost investor sentiment have so far done little to stem declines
Foreign investors have already started the year by selling a net $740mn worth of Chinese stocks. Bottom-fishing investors should wait until a significant stimulus package, somewhere near the scale of the one Beijing launched during the 2008 global financial crisis, is announced before venturing in.
🇨🇳 In Depth: China’s cash-strapped local governments struggle to revive land sales (Caixin) $
As China’s local governments struggle to increase their fiscal revenue, many have decided to scrap some controls on the price of land, traditionally a key contributor to their coffers, in an effort to kick-start sales that dropped 21% year-on-year by value in the first half of last year after a 23% slump in 2022.
From October to December, at least 17 of 22 major cities had abolished price ceilings on residential land sold at local government auctions, according to real estate data provider China Index Holdings Ltd. (CIH), including the second-tier cities of Chengdu, Jinan, Hefei and Xiamen.
🇨🇳 China services activity picks up, Caixin PMI shows (Caixin) $
Activity in China’s services sector grew at its fastest pace in five months in December, capping a year of consecutive expansion, according to a Caixin-sponsored survey released on Thursday.
The Caixin China General Services Business Activity Index, which provides an independent snapshot of operating conditions in industries such as retail and tourism, rose to 52.9 last month from 51.5 in November.
The Caixin China General Composite PMI, which tracks both manufacturing and services, came in at 52.6 in December, up 1 point from the previous month, indicating faster growth in total business activity.
🇿🇦 South Africa’s opposition splinters in battle against ANC (FT) $ 🗃️
Several smaller campaigns will fight each other as well as ruling party in pivotal upcoming election
📅 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):
BangladeshBangladeshi National ParliamentJan 7, 2024 (d) Confirmed Dec 30, 2018Taiwan 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) 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
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
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
South Africa South African National Assembly Jun 30, 2024 (t) Date not confirmed May 8, 2019
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 Chamber of Representatives Oct 27, 2024 (t) Date not confirmed
Uruguay Uruguayan Chamber of Senators Oct 27, 2024 (t) Date not confirmed
Uruguay Uruguayan Presidency Oct 27, 2024 (t) Date not confirmed
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):
J-Long Group Limited JL, Eddid Securities USA, 1.4M Shares, $4.00-6.00, $7.0 mil, 1/8/2024 Week of
We are a holding company incorporated in the Cayman Islands. Our operations are conducted by our Hong Kong subsidiary, JLHK. We manufacture and distribute reflective and non-reflective garment trims. We have been an authorized distributor of 3M Scotchlite reflective materials since 2000. (Incorporated in the Cayman Islands)
We are an established distributor in Hong Kong of reflective and non-reflective garment trims including, among others, heat transfers, fabrics, woven labels and tapes, sewing badges, piping, zipper pullers and drawcords. We have nearly 30 years of experience in the apparel industry and have served over 100 international outerwear and sportswear brands, uniform and safety workwear brands and fashion brands across the world. We offer a wide range of services to cater to our customers’ needs in reflective and non-reflect garment trims, including market trend analysis, product design and development and production and quality control. We work with our customers on their product requirements for the upcoming season, and we usually provide various suggestions on the product design and use of appropriate materials using our know-how and extensive industry knowledge we have accumulated over the years.
Competitive Strengths
We believe the following competitive strengths differentiate us from our competitors:
• Established market presence in the reflective materials industry with nearly 30 years of operating history;
• Diversified product portfolio consisting of reflective and non-reflective garment trims;
• Commitment to environmental sustainability and quality control;
• Strong and stable network of materials suppliers and manufacturing services suppliers;
• Stable business relationships with our customers; and
• Experienced and professional management team.
Our Strategies
We intend to pursue the following strategies to further expand our business:
• Strengthen our design and development capabilities;
• Expand our regional sales presence and marketing capabilities;
• Selectively pursue acquisitions and strategic investments; and
• Increase warehouse and storage capacity.
Corporate History and Structure
We are an established distributor in Hong Kong of reflective and non-reflective garment trims including, among others, heat transfers, fabrics, woven labels and tapes, sewing badges, piping, zipper pullers and drawcords. We have nearly 30 years of experience in the apparel industry and have served over 100 international brands globally, including outerwear and sportswear brands, uniform and safety workwear brands and fashion brands. We offer a wide range of services to cater to our customers’ needs in reflective and non-reflective garment trims, including market trend analysis, product design and development and production and quality control. We work with our customers on their product requirements for the upcoming season, and we usually provide various suggestions on the product design and use of appropriate materials using our know-how and extensive industry knowledge we have accumulated over the years.\On September 20, 2023, the Controlling Shareholder entered into individual subscription agreements with the pre-IPO shareholders, Capital Summit Enterprises Limited, Cherish Gloss Group Limited, Jipsy Trade Limited, Summer Explorer Investments Limited, Wise Total Solutions Group Limited, and Max Premier Enterprises Limited. According to these agreements, the Controlling Shareholder agreed to sell and each of the pre-IPO shareholders agreed to purchase 556,875 shares of JL.
*Note: Net income and revenue are for the year ended March 31, 2023.
(J-Long Group Limited filed an F-1/A on Nov. 9, 2023, and disclosed terms for its IPO: 1.4 million ordinary shares at a price range of $4.00 to $6.00 to raise $7.0 million. Background: J-Long Group Limited filed its F-1 on Oct. 18, 2023, without disclosing terms for its IPO. J-Long Group Limited submitted confidential IPO documents to the SEC on Dec. 30, 2022.)
Silynxcom Ltd. SYNX, ThinkEquity, 1.1M Shares, $4.00-6.00, $5.4 mil, 1/12/2024 Friday
We manufacture in-ear headsets. (Incorporated in Israel)
For over a decade, we have been developing, manufacturing, marketing, and selling ruggedized tactical communication headset devices as well as other communication accessories, all of which have been field-tested and combat-proven. Our in-ear headset devices, or In-Ear Headsets, are used in combat, the battlefield, riot control, demonstrations and weapons training courses. Our In-Ear Headsets seamlessly integrate with third party manufacturers of professional-grade ruggedized radios that are used by soldiers in combat or police officers in riot situations. Our In-Ear Headsets also fit tightly into the protective gear to enable users to speak and hear clearly and precisely while they are protected from the hazardous sounds of combat, riots or dangerous situations.
Our sleek, lightweight, In-Ear Headsets include active sound protection to eliminate unsafe sounds, while maintaining ambient environmental awareness, giving our customers 360° situational awareness.
We work closely with our customers and seek to improve the functionality and quality of our products based on actual feedback from soldiers and police officers “in the field.” Our headset devices are compatible and easily integrate with the various communication equipment devices currently being used by tens of thousands of military and law enforcement personnel in leading military and law enforcement units globally.
We sell our In-Ear Headsets and communication accessories directly to military forces, police and other law enforcement units around the world. We also sell indirectly, through a specialized network of local distributors in each geography in which we operate, as well as through key strategic partnerships with radio equipment manufacturers. Our direct sales are generally conducted through government-run official tender processes. Our indirect sales are conducted through our distributor network, specialized agents, and strategic original equipment manufacturers, or OEMs. Our distributor network has grown by six times from 2020 to 2022. While our primary markets are currently in Israel, Europe, Asia and the United States, we intend to expand our sales, marketing and distribution network into new markets such as Southeast Asia and Latin America.
On October 7, 2023, Hamas terrorists invaded southern Israel and launched thousands of rockets in a widespread terrorist attack on Israel. On the same day, the Israeli government declared that the country was at war. In the days that followed, the Israeli military began to call-up reservists for active duty and deploy units across all service branches to take positions in preparation for a war that, according to Israeli government officials, could last for months.
We sell our products directly and indirectly to the Israel Defense Forces. From October 10, 2023 until the date of this prospectus, we received purchase orders from the Israel Defense Forces and police forces in Israel, amounting to an aggregate of over $4.0 million to supply certain products in the near-term to be used by all branches of the Israel Defense Forces and police departments in Israel as well as in the longer term to resupply inventory stockpiles of equipment for the Israel Defense Forces. We expect to receive additional purchase orders as a result of the ongoing war. There is no assurance, however, that any further purchase orders will materialize in connection with this war. For further information, see “Business—Our Technology—Sales and Marketing” and “Risk Factors—Risks Related to Israeli Law and Our Operations in Israel”.
*Note: Net loss and revenue figures are in U.S. dollars for the 12 months that ended June 30, 2023.
(Note: Silynxcom Ltd. filed its F-1 on Oct. 27, 2023., and disclosed terms for its IPO: 1.08 million shares (1,075,000 shares) at $4.00 to $6.00 to raise $5.38 million ($5,375,000).This is an NYSE – American Exchange listing.)
🏁 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
🚽 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
Check out our emerging market ETF lists, ADR lists (updated) and closed-end fund (updated) lists (also see our site map + list update status as most ETF lists are updated).
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Emerging Market Links + The Week Ahead (January 8, 2024) was also published on our website under the Newsletter category.