Emerging Market Links + The Week Ahead (July 15, 2024)
AI's "zero sum circle jerk," China's IPO retreat + how the 1-child policy accelerated its "demographic dividend," APAC as a data center hotspot, EM stock picks and the week ahead for emerging markets.
Leave it to the permabears over at Zero Hedge to not mince words about AI (Goldman's Head Of Research Crucifies The "AI Bubble": Not One Transformative Application Has Been Found 🗃️):
… The latest example of this of course is the
3D TV,fake meat,virtual reality,the metaverse,blockchain, chatbot (aka AI) bubble, where a handful of supergiant firms are adding hundreds of billions in market cap every single day because of some algo glitch where the market believes their revenue growth is virtually unlimited because somehow other companies have trillions and trillions in capital spending power which they will - in a zero sum circle jerk - give to the five biggest companies in the world, making them even bigger in the process…
Goldman Sach's Allison Nathan, in his biweekly Top of Mind note, wasn’t as blunt - this was what he had apparently wrote:
But this spending has little to show for it so far beyond reports of efficiency gains among developers. And even the stock of the company reaping the most benefits to date — Nvidia — has sharply corrected…
I do have to wonder what suddenly motivates someone at Goldman Sachs to even dare say the quiet part about AI out loud…
Nevertheless and as I have written before, such as in my July 4th post where I included the following chart of surviving 3D printer stocks…:
… AI (along with all the EV or “energy transition” talk) does remind me of the 3D printing bubble. IF you manage to get in and out at the right times - then congratulations. For the rest of us, its probably better to look at other places to put our money…
🔬 Emerging Market Stock Pick Tear Sheets
$ = behind a paywall
🌏 Developed & Emerging Market Toll Road Stocks (Mid-2024) Partially $
Publicly listed toll road stocks come with stable & predictable cash flows, high barriers to entry, strong inflation linked pricing power & demand-based or dynamic pricing abilities.
🌏 EM Fund Stock Picks & Country Commentaries (July 14, 2024) Partially $
AI ideas from emerging markets, European small + midcap ideas, Latin America opportunities, Mexico logistics + industrials, overlooked FMs, various quarterly reviews + webinars or updates, etc.
📰🔬 Emerging Market Stock Picks / Stock Research
$ = behind a paywall / 🗃️ = Archived article
🇨🇳 In Depth: Sanctions Spark Race to Bottom for China’s Lower-End Chipmakers (Caixin) $
Chinese chipmakers are experiencing a price war due to increased production of mature process chips and reduced demand, leading to significant profit declines for companies like Semiconductor Manufacturing International Corporation (SMIC) (SHA: 688981 / HKG: 0981 / FRA: MKN2) and Hua Hong Semiconductor (HKG: 1347 / FRA: 1HH / OTCMKTS: HHUSF).
U.S. sanctions have driven Chinese manufacturers to ramp up lower-tech chip production, exacerbating a market glut and price declines.
With ongoing expansion projects, China's wafer foundries aim to capitalize on domestic demand from sectors like AI and EVs, despite being challenged by global competition and fluctuating capacity utilization rates.
🇨🇳 Expanded Collaboration Between Kuaishou and Meituan (Investing in China)
Kuaishou Technology (HKG: 1024 / 81024 / LON: 0A74 / OTCMKTS: KUASF / KSHTY) and Meituan (SEHK: 3690 / HKG: 83690 / FRA: 9MD / OTCMKTS: MPNGF / MPNGY) Expand to Hundreds of Cities and Thousands of Stores
Yesterday, it was announced that Kuaishou and Meituan have joined forces to enhance their collaboration in the local life services sector. This strategic partnership aims to leverage each company’s strengths to better compete in the market, particularly against dominant players like Douyin.
🇨🇳 Charts of the Day: China Has a New King of Car Exports (Caixin) $
Chery Automobile Co. Ltd. has stolen state-owned SAIC Motor Corp (SHA: 600104)’s crown as China’s top auto exporter, as the number of Chinese-made cars shipped overseas continues to surge despite an ongoing trade backlash from the U.S. and European Union.
In the first half of 2024, Chery’s auto exports jumped 35% year-on-year to 532,000 cars, according to data published Wednesday by the China Association of Automobile Manufacturers (CAAM). SAIC, which has been China’s biggest auto exporter for years, slipped to second place as its overseas shipments fell 9% year-on-year in the first half to 439,000 vehicles.
🇨🇳 Hesai fights ‘capricious’ U.S. Defense Department charges (Bamboo Works)
The autonomous driving technology company has filed a motion to throw out the DoD’s determination that Hesai has ties with the Chinese military
Hesai Group (NASDAQ: HSAI)’s Nasdaq-listed shares have fallen by 42% since the U.S. Department of Defense added it to a watch list of “military-civil fusion contributors” in January
The autonomous driving technology company is suing to be removed from the list, as its CEO said its reliance on the U.S. market will fall sharply this year
🇨🇳 Trio of Chinese shipping giants splurge on over 200 new vessels (Caixin) $
Three Chinese state-owned companies, including China Cosco Shipping [Cosco Shipping International (HKG: 0517 / FRA: CSB / SGX: F83) / COSCO Shipping. COSCO SHIPPING Holdings (HKG: 1919 / SHA: 601919] and China Merchants Group, plan to add about 100 ships each to their fleets.
China has surpassed Greece as the largest maritime fleet owner, with 78.6% of new global ship orders in 2023 taken by Chinese firms.
Challenges include expensive ship prices, long domestic delivery times, and increased global shipping demand due to trade disruptions and tariff hikes.
🇨🇳 SF eyes Hong Kong IPO en route to joining global logistics big leagues (Bamboo Works)
The world’s fourth-largest integrated logistics company has applied to list in Hong Kong, complementing its existing listing on China’s domestic A-share market
SF Holding (SHE: 002352) has applied to list in Hong Kong, aiming to use the city as a financing springboard for its global expansion
The Chinese logistics giant’s profit rose 32% last year to 8.2 billion yuan
🇨🇳 Vanke Executives to Buy $27.5 Million of Shares to Show Their Faith in Company & Vanke-Linked Firm Sells Most of Its Stake in Shanghai Mall to Singapore Wealth Fund Unit (Caixin) $
Over 1,800 key managers of China Vanke (SHE: 000002 / HKG: 2202 / FRA: 18V / FRA: 18V0 / OTCMKTS: CHVKF), including senior executives, will buy 200 million yuan ($27.5 million) in company shares to boost investor confidence.
Vanke is set to face a significant loss of 7 to 9 billion yuan in the first half of 2024, mainly due to high land purchase costs from 2021.
The centralized land supply policy in 2021 led developers, including Vanke, to aggressively buy land, culminating in high costs and reduced profits as the real estate market declined.
🇨🇳 Gree Real Estate Changes Direction and Gets Out of the Real Estate Business (Caixin) $
Gree Real Estate (SHA: 600185). is exiting property development, becoming the third developer to do so recently.
The company has abandoned its original restructuring plan to raise funds and purchase Zhuhai Duty Free Enterprise Group and will sell real estate assets instead.
Similar exits by Huayuan Property and Midea Real Estate (HKG: 3990 / FRA: MR9 / OTCMKTS: MREHF) have shifted these companies towards asset-light operations, with their market reactions being positive.
🇨🇳 Tianqi Warns of $670 Million-Plus Loss Over Lithium Price Plunge (Caixin) $
Tianqi Lithium Corp (SHE: 002466 / HKG: 9696 / FRA: 2220) expects a net loss between 4.9 billion yuan and 5.5 billion yuan ($674 million and $756 million) for the first half of the year due to falling lithium prices and high inventories.
The company's overseas investments in Australia and Chile have added to its financial woes amid the price collapse, with lithium prices in China down 70% from a year ago.
Analysts have significantly reduced profit expectations for Tianqi and other Chinese lithium producers like Ganfeng Lithium Group (SHE: 002460 / HKG: 1772 / OTCMKTS: GNENY / GNENF) also face sizeable losses.
🇨🇳 Hanking shines on gold mine sale (Bamboo Works)
The miner’s shares rocketed after it pocketed a tidy profit on the sale of one of its Australian gold assets
China’s China Hanking Holdings Ltd (HKG: 3788) pocketed a A$150 million profit from the sale of one of its Australian gold mines, benefiting from record-high prices of the precious metal
The gold miner will distribute one-third of its net proceeds from the sale to shareholders as a special dividend
🇨🇳 New Horizon Health (6606 HK) - Behind the Trading Suspension and the Outlook (Smartkarma) $
New Horizon Health Ltd (HKG: 6606 / FRA: 6YZ / OTCMKTS: NHZHF) is a “big client” of Deloitte, who, however, still delay the publication of 2023 results. This leads us to take the issues raised by Deloitte more seriously.
It’s uncertain whether New Horizon Health would obtain the audit report with non-qualified opinion or "survive" the independent investigation. 2023 Annual Report/2024 Mid-Year Report/2024 Annual Report may continue to be postponed.
If New Horizon Health fails provide reasonable explanation, investors don't need to spend any more time on the Company with no integrity. We forecast the timetable for the resumption of trading.
🇨🇳 OneConnect in forced divorce from parent Ping An (Bamboo Works)
The financial software services provider will shutter its cloud business, whose main clients were its parent and other related companies
OneConnect (NYSE: OCFT) will shutter its cloud services division, which accounted for nearly half its revenue, after losing most of its customers for the business
The development underscores a major risk for Chinese companies that rely too heavily on business from their parent and other related companies
🇨🇳 Fanhua seeks support in share buyback as global expansion stalls (Bamboo Works)
The insurance broker will double the size of an ongoing share buyback program, now equal to nearly half of its market value, as its share price tanks
Fanhua (NASDAQ: FANH)’s board has doubled the size of a previous share repurchase program, while its top executives have also pledged to buy more of the company’s plunging shares
The moves come as a plan to expand into new businesses with a Singaporean investor appears to have stalled
🇨🇳 Luckin Coffee: Stock Is Fairly Priced Under A Different Growth Regime (Seeking Alpha) $
🇨🇳 TH International dumps Popeyes to focus on struggling Tim Hortons (Bamboo Works)
The Chinese fast-food operator is raising $50 million in new funding through the sale of convertible notes to its two founding partners
TH International (NASDAQ: THCH) will return China rights for Popeyes to the brand’s owner and focus on developing its core Tim Hortons chain in China
The company concurrently announced $50 million in new funding, providing an important financial cushion as it suffers in a brutal Chinese coffee price war
🇨🇳 Yatsen gets black eye from shopping fest blues (Bamboo Works)
The operator of Perfect Diary cosmetics stores lowered its second-quarter revenue guidance by 10%, putting the figure back in contraction territory
Yatsen Holding (NYSE: YSG) lowered its revenue guidance by 10% for the three months to June, likely due to poor performance during the recent June 18 online shopping festival
The revised forecast means the company’s revenue has begun to contract again, resuming a trend of the last three years after it briefly grew for two consecutive quarters
🇨🇳 Clinical trials come up short again for Alphamab Oncology (Bamboo Works)
The Chinese pharmaceutical firm has suffered its second clinical setback in a matter of weeks, after its U.S. partner halted trials of a sarcoma drug
Alphamab Oncology (HKG: 9966 / FRA: 3NK) could still succeed in developing its envafolimab drug outside of China after licensing some of the international rights to India’s Glenmark
The R&D woes could be related to staffing issues at Alphamab as the position of chief medical officer has been vacant for some time
🇭🇰 China Overseas Land Is A Hold Considering Operating Data Read-Throughs (Seeking Alpha) $
China Overseas Land & Investment (HKG: 0688 / OTCMKTS: CAOVF)'s sales performance for 2024 year-to-date was better than that for the industry using the top 100 real estate developers as a proxy.
But CAOVF's slower pace of land acquisition in 1H 2024 vis-a-vis 2023 implies that it could be a while before the Chinese residential property market achieves a sustained turnaround.
The mixed read-throughs from China Overseas Land's latest operating data indicates that a Hold rating for the stock is warranted.
🇭🇰 CK Asset Holdings: It's Not About Hong Kong Anymore, Management's Focus Seems To Have Shifted (Seeking Alpha) $
I argue that CK Asset Holdings (HKG: 1113 / FRA: 1CK / OTCMKTS: CHKGF)' focus has shifted to preserving wealth for Li Ka Shing's heirs by investing in low risk/low return businesses in politically stable countries.
Forty percent of its capital is invested in low return UK Assets that produce 33% of its revenue and 6.5% of its profit.
More than three quarters of CHKGF's profits are sourced from Hong Kong property. Prices and transactions are dropping like a stone, and there is no bottom in sight.
🇭🇰 CK Asset: Management Has Undermined Confidence In Its Asset-Light, Recurring Profit Model (Seeking Alpha) $
Hong Kong's economy is in rough shape now, with retail sales turning down, housing prices down double-digits, and office vacancies at 20-year highs.
I believe CK Asset Holdings (HKG: 1113 / FRA: 1CK / OTCMKTS: CHKGF)'s management has made a tough situation worse, with a poorly explained dividend cut that undermines confidence in the recurrent free cash flows of the business.
Management has also opted to sell units in a new residential development below their cost and at a meaningful discount to surrounding properties, suggesting low confidence in the market.
Long-term core earnings growth of around 3% can support a substantially higher share price, and CK Asset should benefit from future rate cuts, but rebuilding investor trust could take some time.
🇭🇰 CLP Holdings: A Mixed Outlook (Seeking Alpha) $
[China Light and Power Company] CLP Holdings Limited (HKG: 0002 / FRA: CLP / OTCMKTS: CLPHY) stock is rated as a Hold, taking into account a potential rate cut and challenges for its Greater China operations.
Lower interest rates could possibly boost CLPHY's future financial results and stock price performance.
The company's Hong Kong business has encountered a series of power interruptions in recent months, while its Mainland China operations could be hurt by below-expectations wind power generation output.
🇭🇰 Andrew Lo again seeks sale of Tigre de Cristal in Russia (GGRAsia)
The controlling shareholder in casino investor LET Group Holdings (HKG: 1383) aims to resume attempts to sell the group’s casino operations at the Tigre de Cristal resort (pictured in a file photo) in Russia. The announcement was made in a filing to the Hong Kong Stock Exchange on Tuesday, which noted that the sale price “should be no less than US$92.8 million”.
LET Group’s filing did not identify any potential buyers. It said any such suitors “must be third party(ies) independent of LET Group”.
Oriental Regent is the company through which Summit Ascent Holdings Ltd (HKG: 0102) – a majority-controlled subsidiary of LET Group – runs gaming and hotel operations at the Tigre de Cristal casino resort near Vladivostok in Russia.
G1 Entertainment holds a gaming licence for Tigre de Cristal, granted by the Russian government.
Summit Ascent owns 77.5 percent of Oriental Regent. Trading in Summit Ascent and LET Group’s shares in Hong Kong has been halted for almost six months.
Taiwan firm Firich Enterprises Co Ltd, via its unit Firich Investment Ltd, has stated it holds a 20-percent stake in Oriental Regent.
🇲🇴 🇱🇰 Melco to get 50pct casino EBITDA at Sri Lanka site: MS (GGRAsia)
Details on Melco Resorts & Entertainment Ltd (NASDAQ: MLCO)’s share of earnings from the Sri Lanka casino venture announced in April have been aired by banking group Morgan Stanley, following a meeting with management of John Keells Holdings PLC (CSE: JKH), Melco Resorts’ partner on the US$1-billion scheme (pictured in an artist’s rendering).
Melco Resorts had already mentioned it would spend US$125 million as its contribution toward the resort, and that the casino would launch in mid-2025.
They also noted that Melco Resorts took the view that Indian nationals’ spending on casinos is “much lower” than such spending by people from China – a pattern also seen in Singapore’s casino duopoly. Indian citizens have been identified by Melco Resorts as a key target market for this Sri Lanka gaming project.
Nonetheless, Morgan Stanley took the view that Melco Resorts’ “approach and low capex [capital expenditure] provides optionality to capture growing Indian wealth and outbound tourism.”
🇰🇷 Sam Chun Dang Pharm (000250 KS): Positive Momentum to Continue (Smartkarma) $
Sam Chun Dang Pharm (KOSDAQ: 000250) secured exclusive 10-year contract to supply Eylea biosimilar (SCD411) to nine European countries. The company will receive 55% of gross sales of the product.
Last month, the company placed 500K shares (~2% of issued capital) to Shinhan Investment Securities to raise KRW71.4B. Proceeds will be utilized to fund the company’s global clinical trial cost.
The company has started exporting generic glaucoma eye drop to the U.S. and expects to start exporting at least two more generic ophthalmic products in the U.S. this year.
🇰🇷 Samsung’s ‘chip crisis’: AI ambitions hit by unprecedented worker unrest (FT) $ 🗃️ & Samsung Electronics hit by unprecedented 3-day strike (FT) $ 🗃️
🇰🇷 I-Scream Media IPO Preview (Douglas Research Insights)
I-Scream Media is getting ready to complete its IPO on KOSDAQ exchange in August. The IPO price range is from 32,000 won to 40,200 won.
I-Scream Media is one of the the leading digital education platform companies in Korea. Its I-Scream S platform is used by more than 93% of elementary school classrooms in Korea.
Post IPO, Sigong Tech will have a 23.7% stake in I-Scream Media. Sigong Tech's stake in I-Scream media (at high end of IPO value) is 157% of its market cap.
🇰🇷 Reorganization of the Doosan Group: Why Delist Doosan Bobcat (Jewel of Doosan Group)? (Douglas Research Insights)
On 11 July, the Doosan Group (KRX: 000150) announced a major business structure reorganization, including the delisting of Doosan Bobcat (KRX: 241560).
In our view (over the next 3-6 months), these transactions appear to be value-destroying for Doosan Bobcat and Doosan Enerbility (KRX: 034020) minority shareholders but positive for Doosan Robotics (KRX: 454910) shareholders.
Doosan Robotics plans to acquire the remaining 54% stake in Doosan Bobcat through a tender offer. Once Doosan Robotics fully owns Doosan Bobcat, its shares will be delisted.
🇰🇷 Doosan Enerbility: A Key Beneficiary of Potential Nuclear Power Projects Win in the Czech Republic (Douglas Research Insights)
The Czech Republic government is in the final stages of selecting companies to build four nuclear power plants which could cost nearly US$30 billion.
A Korean consortium including KHNP, Doosan Enerbility (KRX: 034020), KEPCO E&C [KEPCO (NYSE: KEP / KRX: 015760 / FRA: KOP)], and Daewoo Engineering & Construction Co Ltd (KRX: 047040) is competing mainly against EDF, a French government owned electric utility company.
If the KHNP consortium is able to win this new order, Doosan Enerbility will be a key beneficiary as it will supply the nuclear reactors and steam generators.
🇰🇷 POSCO Holdings: Announces Shares Buyback and Cancellation of Nearly 2 Trillion Won (Douglas Research Insights)
POSCO Holdings (NYSE: PKX) announced a major shareholder return policy to buyback and cancel nearly 2 trillion won worth of treasury shares from 2024 to 2026.
The company will cancel 5.25 million treasury shares representing 6.2% of outstanding shares (about 1.9 trillion won). It will also repurchase and cancel additional 100 billion won of shares.
POSCO Holdings has taken a major initiative to provide greater returns to its shareholders and this should have a positive impact on its share price.
🇰🇷 Insiders Buying and Selling Prior To Mandatory Block Deal Pre-Announcement Requirement in Korea (Douglas Research Insights)
In this insight, we discuss recent, active insiders buying and selling their shares prior to the mandatory block deal pre-announcement requirement starting 24 July in Korea.
The three companies that announced insiders selling (July) are down on average 3% YTD. However, the three companies that announced insiders buying (July) are up on average 74% YTD.
LS Cable has been consistently increasing its ownership of LS Marine Solution (KOSDAQ: 060370), up from 46% stake as of 27 May 2024 to 56.14% as of 8 July 2024.
🇰🇷 Tender Offer and Taking Private of Shinsung Tongsang (Douglas Research Insights)
On 21 June 2024, Canaan Co. announced a tender offer and taking private of Shinsung Tongsang (KRX: 005390). Tender offered shares are 31.664 million shares, representing 22.02% of outstanding shares.
It could be difficult to complete this tender offer at 2,300 won, because there could be many investors that simply refuse to sell their shares at such low valuations.
On the business side, the company has successfully captured higher market share and enjoyed higher profit margins especially for the Top Ten apparel brand, taking away market share from Uniqlo.
🇰🇷 Junjin Construction and Robot IPO Preview (Douglas Research Insights)
Junjin Construction & Robot is getting ready to complete its IPO in KOSPI in August. The IPO price range is from 13,800 won to 15,700 won.
The IPO offering is from 42.5 billion won to 48.3 billion won. The book building for the institutional investors is from 30 July to 5 August.
The integration of robotics into construction processes is a cornerstone of Junjin's operations. Its main product is the concrete pump vehicle which pumps cement or concrete at a construction site.
🇰🇷 Trading Strategy of Shift Up on the First Day of IPO (Douglas Research Insights)
In this insight, we discuss a trading strategy for Shift Up which starts trading on 11 July. Shift Up is one of the most anticipated IPOs in Korea this year.
Our base case (6 months - 1 year) target price of Shift Up is 95,510 won, which is 59% higher than the IPO price.
We recommend investors to take some profits (about 50% of invested capital) if the share price shoots higher by 100% or more from the IPO price on the first day.
🇮🇩 Matahari Department Store (LPPF IJ) - Measuring Up With Initiatives (Smartkarma) $
Matahari Department Store (IDX: LPPF) results reflected a positive impact from the timing of Lebaran although the like-for-like comparisons were slightly below management expectations., although SSSG remains very strong YoY.
Management highlighted that better inventory controls meant that inventory levels finished 1Q2024 at significantly lower levels versus last year, with effective cost controls resulting in better EBITDA and net margins.
The company will slow its new store build-out to focus on improving the productivity of existing stores, with refurbishment of six stores and improving merchandise mix driving growth.
🇵🇭 Manila Trip Report – An emerging Pacific Tiger? (Part 2) (Pyramids and Pagodas)
Casino operator bets big on continuing its winning streak in the country’s burgeoning gaming market
This piece concludes a two-part Series covering Altraman’s recent trip to Manila, sharing economic insights and highlights of meetings with three locally-listed companies. In Part 2 of this series, we provide some high level insights into the Philippines’ booming gaming industry and share highlights of Altraman’s investor meeting with the country’s largest local casino operator.
Entertainment City is home to several key integrated resort operators besides Bloomberry Resorts Corp (PSE: BLOOM / OTCMKTS: BLBRF). These include Okada Manila (operated by Tiger Resort Leisure & Entertainment), City of Dreams (operated by Melco Resorts & Entertainment Ltd (NASDAQ: MLCO)), and Newport World Resorts (operated by Travellers International Hotel Group, a joint venture between Alliance Global Group (PSE: AGI / OTCMKTS: ALGGF / ALGGY) and Genting Hong Kong (in liquidation)).
🇵🇭 Globe Telecom: Watch Potential Re-Rating Catalysts (Seeking Alpha) $
Globe Telecom (PSE: GLO / OTCMKTS: GTMEY) has a Buy investment rating with key valuation re-rating drivers including debt paydown and the planned public listing of a fintech investment.
The company could potentially divest another 1,548 telecommunications towers in the second half of 2024, which will boost its deleveraging efforts.
GCash, a leading fintech player in the Philippines, is planning for an IPO in 2025, which means that GTMEF's 35% stake in Mynt, GCash's parent, might receive a higher valuation.
🇵🇭 PLDT: Data Center Business Monetization Plan Draws Attention (Rating Upgrade) (Seeking Alpha) $
PLDT (NYSE: PHI) recently disclosed that it is considering the monetization of its data center business, which I view as a favorable corporate development.
Assuming that PHI does sell a stake of its data center operations, this could possibly translate into lower financial leverage and a fast paced growth for the data center business.
I upgrade my rating for PLDT to a Buy, after considering the positives associated with the data center asset monetization plan.
🇸🇬🌏 Shipyards from investors' perspective, Part 2 (TheOldEconomy Substack)
Shipyards in the Far East as opportunity
This is chapter two of my adventures in the shipbuilding industry. In Part 1, I reviewed the market and discussed demand and supply dynamics.
I intentionally ruled out the majors: Hanwa Ocean (KRX: 042660), Samsung Heavy Industries (KRX: 010140), and HD Hyundai Heavy Industries (KRX: 329180). They meet the requirements to be shipbuilding-only stocks, yet they are too big.
So, the contenders are:
Seatrium Limited (SGX: 5E2 / FRA: S8N0 / OTCMKTS: SMBMF)
Beng Kuang Marine Ltd (SGX: BEZ)
Penguin International Ltd (SGX: BTM / FRA: O1U1)
🇸🇬 BOC Aviation: Recent Disclosures Offered Both Positive And Negative Takeaways (Seeking Alpha) $
I am impressed with the competitive financing rates for BOC Aviation (HKG: 2588 / FRA: 8BO / OTCMKTS: BCVVF)'s most recent bond issuance in Q2 2024.
But BCVVF's aircraft age has increased, and its remaining lease term has declined between the end of 2023 and end-1H 2024.
My Hold rating for BOC Aviation stays unchanged, as there were both favorable and unfavorable read-throughs from its latest second quarter business update.
🇸🇬 China main Singapore visitor source market in June, 1H (GGRAsia)
Visitor arrivals to Singapore totalled 1.25 million in June, up 10.7 percent year-on-year, but down by 2.34 percent month-on-month from May’s 1.28 million, according to the latest data from Singapore Tourism Board.
The tally of overnight visitors in June was 925,720, up 11.3 percent year-on-year, but down nearly 4 percent from May’s 964,000.
Singapore is home to a casino duopoly shared between Marina Bay Sands, controlled by United States-based Las Vegas Sands (NYSE: LVS); and Resorts World Sentosa, run by Genting Singapore (SGX: G13 / FRA: 36T / OTCMKTS: GIGNF / GIGNY).
Mainland China was the largest single contributor to Singapore’s tourism during June, supplying 217,650 visits. The figure was up 92.1 percent year-on-year, but down 2.10 percent from the previous month.
🇸🇬 Singapore Banks’ Share Prices Are Hitting All-Time Highs: Can Their Momentum Continue? (The Smart Investor)
The trio of Singapore banks have hit all-time highs recently but can their run continue?
As of 4 July, DBS Group (SGX: D05 / FRA: DEVL / DEV / OTCMKTS: DBSDY / DBSDF) is the best performer of the three with a 25.6% year-to-date (YTD) gain after hitting its intra-day all-time high of S$38.17.
Oversea-Chinese Banking Corp (SGX: O39 / FRA: OCBA / FRA: OCBB / OTCMKTS: OVCHY) came in second with a 17.3% YTD gain after hitting an all-time high of S$15.15.
United Overseas Bank (SGX: U11 / FRA: UOB / UOB0 / OTCMKTS: UOVEY / UOVEF), or UOB, logged a 14.3% YTD gain and set a new all-time high of S$32.64.
Investors may be curious to know if the banks can continue their stellar performance.
Are there any catalysts or business developments that can take these lenders to another level?
🇸🇬 5 Key Insights from Temasek’s 2024 Annual Review (The Smart Investor)
Temasek just announced its latest 2024 annual review. Here are some key facts that you should know.
The firm attributed strong growth in its portfolio to investments in the US and India, which helped counterbalance the underperformance of China’s stock markets.
These other pillars focus on investing sustainably, developing capabilities for the future and nurturing Temasek’s future talents.
Temasek’s continued robust performance
A focus on new regions
Including unlisted assets within its portfolio value
Sustainability and technology
A watchful eye on risks
🇸🇬 StarHub’s Share Price is Up 11% Year-to-Date: Can the Telco Continue to Increase its Dividends? (The Smart Investor)
StarHub (SGX: CC3 / FRA: RYTB / OTCMKTS: SRHBY / SRHBF) is looking to continue its transformation with its DARE+ initiatives, but can the telco also increase its dividends along the way?
Singapore’s second-largest telecommunication company (telco) saw its share price rise 11.7% year to date, coming close to its 52-week high of S$1.29.
Does the business have what it takes to pay out more over time? Let’s find out.
Improving fundamentals
“DARE” to be different
Recent initiatives
Get Smart: A good chance for higher dividends
🇸🇬 These 4 Singapore Food-Related Stocks Could Deliver Delicious Returns for Your Portfolio (The Smart Investor)
If you are feeling hungry for good returns, these four food stocks could whet your appetite.
Here are four food-related Singapore stocks that could deliver a tantalising return for your investment portfolio.
Jumbo Group (SGX: 42R) is a food and beverage (F&B) group that operates 10 different F&B brands including Jumbo Signature, Jumbo Seafood, and Ng Ah Sio Bak Kut Teh.
Old Chang Kee (SGX: 5ML), or OCK, sell its range of snack products including its signature curry puffs and spring rolls through kiosks and retail outlets at shopping malls.
Food Empire Holdings (SGX: F03) is an F&B manufacturing and distribution group with a portfolio of instant beverages, snack foods, and food ingredients such as coffee mixes, chocolate drinks, instant cereal blends and potato chips.
Fraser and Neave (SGX: F99 / FRA: FNV2 / OTCMKTS: FNEVF), or F&N, is an F&B giant with beer and dairy operations along with property development and printing and publishing.
🇸🇬 Thai Beverage’s Share Price Hits a 52-Week Low: Is the Stock a Buy? (The Smart Investor)
Shares of Thai Beverage (SGX: Y92 / OTCMKTS: TBVPF / TBVPY) have underperformed recently. We will take a closer look at the business to determine if its shares are worth buying.
Thai Beverage Public Company Limited (ThaiBev) (SGX: Y92) is one of Southeast Asia’s leading beverage companies and the largest in Thailand.
Its international arm, InterBev, is one the largest shareholders of one of Singapore’s most successful food and beverage companies, Fraser and Neave (SGX: F99 / FRA: FNV2 / OTCMKTS: FNEVF), with a shareholding of 28.3%
A weak business performance
Have we seen the bottom?
A cautious approach
Diversifying its business
🇮🇳 The Beat Ideas: ADF Foods- A Spicy Investment Opportunity with Growth Potential (Smartkarma) $
ADF Foods (NSE: ADFFOODS / BOM: 519183) is undergoing significant expansions, including brownfield projects in Nadiad and Nasik, and a greenfield project in Surat.
These projects are expected to boost revenue significantly, enhance operational efficiency, and support the company's growth plans.
Company will almost double its revenue in 3 years and similarly PAT will also grow, which makes it attractive on valuation side as well.
🇿🇦 Capitec’s share price continues to shine after strong first half profit forecast (IOL)
Capitec Bank (JSE: CPI / OTCMKTS: CKHGY / CKHGF)’s share price lifted close to its 12-month high on Friday after it said headline earnings a share would increase sharply by between 25% and 35% for the six months to August 31, 2024.
The share price closed 1.42% higher at R2732.24 on Friday, just shy of the 12-month highest price of R2799.50 per share. The price has gained a whopping 69.97% over 12 months, and by 32.8% since the start of the year.
The bank, formed in 1997 and which spear-headed paperless banking in South Africa, and which is now the country’s biggest lender in terms of its about 22 million customers, said Friday it expected headline earnings a share to be between 5 090 cents and 5 497 cents per share.
🇿🇦 It’s all glittering for JSE gold stocks except DRDGold & Mining stocks take a knock on JSE profit taking (IOL)
Gold is glittering on the JSE, especially in the past year, brightened by the allure of the precious metal whose price has remained elevated as a haven investment on the back of high interest rates, and currency volatility.
Gold stocks on the JSE include Harmony Gold Mining Company Limited (NYSE: HMY), Pan African Resources plc (LON: PAF / JSE: PAN / FRA: RTZ / OTCMKTS: PAFRF / PAFRY), DRD Gold (NYSE: DRD), AngloGold Ashanti (NYSE: AU), and Sibanye Stillwater Ltd (NYSE: SBSW).
Recent World Gold Council research shows that global central banks plan to continue buying gold, with 29% of respondents indicating they will do so over the next 12 months.
However, China’s gold purchases have slowed significantly in recent months. In June, the People’s Bank of China refrained from adding gold to its reserves for a second month.
🇿🇦 DRDGold Has Steam, But Better From A Dip (Seeking Alpha) $
The company holds significant gold reserves and resources, with a focus on Ergo and FWGR segments in the Witwatersrand Basin in the Gauteng province of South Africa.
The outlook is promising with bullish gold prices and a positive impact on throughput from the recent commissioning of tailings reprocessing assets.
This analysis re-assigns a Hold rating to DRD Gold (NYSE: DRD) shares.
🇿🇦 Pick n Pay wows investors with discounted R4bn rights offer terms & Pick n Pay lays down terms for R4bn rights offer (IOL)
Troubled retailer Pick 'n Pay (JSE: PIK / FRA: PIK) yesterday laid down terms for its R4 billion capital raise, offering 252.2 million new shares at a 32% discount, with the company’s stock dipping 3% in early trade on the JSE before overturning its losses for the day into a 0.91% gain, just before day-end.
The company’s rights offer, announced earlier this year as part of a restructuring exercise to turnaround its plummeting fortunes, and losses will consist of an offer of 252 206 809 renounceable rights to subscribe for new Pick n Pay ordinary shares.
🇵🇱 Hydrotor SA – Summer Update (Hidden Zlotys)
[hydraulic components manufacturer] Hydrotor SA (HDR) [Przedsiebiorstwo Hydrauliki Silowej Hydt (WSE: HDR)] recently released a – as expected – quite weak quarterly report. Revenue decreased by 24% q/q to 28.9 million PLN (38.2) and the gross margin dropped to 7.3% (12.5%). Opex decreased marginally, and HDR reported its third consecutive loss quarter (-1.8 million PLN). The company has only reported six loss quarters since 2012, so this "stretch" stands out as unusually weak.
🌎 Arcos Dorados: Continued Momentum Shadowed By Weakness In Southern Markets (Seeking Alpha) $
Arcos Dorados (NYSE: ARCO) has continued the strong overall earnings growth momentum in most markets as restaurant expansion and the 3D strategy have progressed.
The strength has recently been shadowed by weakness in Argentina and Venezuela as Q1 showed earnings deteriorate in the markets due to high inflation and a weak economy.
With the overall growth story continuing well but the stock falling due to SLAD weakness, the valuation has become more attractive.
🌎 Despegar: Cheap And Worth A Buy, But Be Mindful Of FX Risks (Seeking Alpha) $
Despegar.com Corp (NYSE: DESP) has achieved tremendous bookings growth this year, capitalizing on strong travel demand.
It estimates the travel TAM in its local Latin America market to be $150 billion, indicating that it is less than 1% penetrated into this market.
The company trades at a cheap <5x adjusted EBITDA multiple, far less than U.S. rivals like Expedia and Booking.
Be mindful of FX risks, as the U.S. dollar recently rallied against the Mexican peso and the Brazilian real.
🇧🇷 BHP, Vale agree deal over 2015 Brazil dam collapse proceedings in UK (Reuters)
Mining giant BHP Group (NYSE: BHP) said on Friday it had reached a deal with Brazilian peer Vale (NYSE: VALE) to split equally the cost of any damages related to proceedings in Britain over a 2015 dam collapse in Brazil that killed 19 people, while denying liability for related claims.
BHP Group (UK) Ltd and its Anglo-Australian parent BHP are defendants in a group action claim in the English High Court, brought by more than 600,000 claimants seeking damages for the Fundao Dam failure.
🇧🇷 Inter: Is Nu's Main Competitor Also As Good? (Seeking Alpha) $
With Nu Holdings Ltd (NYSE: NU) surpassing the 100 million customer mark and achieving a 72% YTD performance, many investors might be looking to seek alpha through its direct competitor, Inter & Co.
Inter & Co Inc (BVMF: INBR32 / NASDAQ: INTR) has shown spectacular financial growth in net interest income, customer growth, and deposits, with the stock prices reflecting this growth and even outperforming Nu.
If you are looking to see Inter's key metrics, product offerings, valuations, and more to see if they are as good as Nu, this analysis is worth a read.
🇧🇷 🇰🇾 StoneCo Stock: The Dip Looks Tempting (Seeking Alpha) $
StoneCo Ltd (NASDAQ: STNE)'s stock price has fallen significantly and underperformed the market since the last analysis.
Despite slowing revenue growth, StoneCo's current valuation reflects a significant discount, making the stock attractive.
Analysts predict strong EPS growth for StoneCo, making it a potentially lucrative investment opportunity.
I believe that the current dip in the StoneCo stock is not accompanied by a corresponding deterioration in the company's fundamentals.
🇧🇷 Telefonica Brasil: Sectoral Complexities And Unattractive Valuation (Seeking Alpha) $
The company operates in a capital-intensive and competitive telecommunications sector in Brazil, facing challenges in agility and regulatory requirements.
Telefônica Brasil S.A. (NYSE: VIV) faces regulatory complexities and financial indicators worse than its competitor TIM Brasil (NYSE: TIMB), making its valuation stretched.
Despite decent growth and profitability, a comparative valuation suggests a 7.4% downside in Telefônica Brasil's current prices, leading to a recommendation to sell shares.
🇧🇷 Sabesp: Privatization Is Already Priced In (Seeking Alpha) $
Companhia de Saneamento Básico do Estado de São Paulo - SABESP (BVMF: SBSP3) is the largest Brazilian sanitation company, and is very robust compared to its peers.
Its concessions have extended deadlines; in addition, privatization can be a catalyst for even better results.
Despite finding it a good company, its valuation seems stretched given its history. And I prefer to wait for a more opportune moment to recommend buying the shares.
🇧🇷 Lavoro: Improved Environment Expected (Rating Upgrade) Seeking Alpha) $
[Agricultural inputs retailer] Lavoro (NASDAQ: LVRO)'s stock price decline YTD was expected considering unfavourable weather and market conditions, risks to its outlook and elevated market multiples.
The company's weak financial performance since further impacted the stock, as it saw far lower revenue growth and a far bigger adjusted EBITDA contraction than initial expected.
However, positive signs are visible now, with farmers' profits expected to improve in FY25. Lavoro is expected to report net profits again and market multiples look improved too.
🇧🇷 Sigma Lithium: Waiting Out The Bottom (Seeking Alpha) $
Sigma Lithium Corporation (CVE: SGML) is delivering on production, margins, and cash flow despite low lithium prices.
Problem: Consensus estimates may be overly optimistic and call for lithium prices to double to reach a price target of US$26.
The stock price seems expensive on conservative lithium price estimates that I value at US$10.5 YE25.
Nonetheless, as a low cost producer in a friendly jurisdiction, it is an attractive asset for Chinese auto, battery or lithium producers.
I rate Sigma Lithium stock a Hold and worth the wait for potential market recuperation or M&A.
🇨🇱 Sociedad Quimica y Minera de Chile Faces Nationalization And EV Adoption Challenges (Seeking Alpha) $
Sociedad Química y Minera de Chile (NYSE: SQM)'s agreement with Codelco means that SQM will lose half of its lithium business after 2030, harming shareholder value.
The agreement has other concerning details, such as Codelco managing the business after 2030 and expensive technology changes.
The lithium market faces challenges with slow EV adoption, increasing supply, and new battery technologies like sodium-ion batteries.
I am not confident in management's ability to allocate capital well enough to justify the current valuation.
🇲🇽 Wal-Mart de Mexico: A Bright Spot Given Mexico's Political Uncertainty (Seeking Alpha) $
Wal-Mart de Mexico SAB de CV (BMV: WALMEX) presents a compelling opportunity for investors despite the short-term political chaos, being one of the best performing companies in the Mexican market.
The company has invested heavily on its ecosystem and omnichannel strategy, which should translate to better margins in the future.
The stock has the potential to return 9.19% annually over the next 10 years.
🇲🇽 Cemex: Positive Drivers Undermined By Worries Around Mexico And Capital Allocation (Seeking Alpha) $
CEMEX (NYSE: CX) stock has underperformed peers, in large part due to bearish sentiment on Mexico after the recent presidential election.
Demand and margins have stayed healthy in Mexico, and Q2 should see double-digit growth again, but guidance for the second half is a big watch item.
U.S. results have been less impressive, with Cemex seeing headwinds from weather, weaker residential and non-residential demand, and higher transportation costs, but the longer-term supply/demand outlook is favorable.
Capital management concerns persist as Cemex looks to grow U.S. business through M&A and brownfield expansion, while also balancing debt reduction and shareholder returns.
Trading below $7 to $8, and with bullish long-term fundamentals for cement still in place, Cemex continues to look undervalued.
🇵🇦 First Quantum Minerals: A Buy Despite Cobre Panama Challenges (Seeking Alpha) $
First Quantum (TSE: FM / FRA: IZ1 / OTCMKTS: FQVLF) faced challenges with the suspension of mining at Cobre Panama due to protests and legal issues, impacting share price.
Despite the uncertainty surrounding Cobre Panama, First Quantum operates other mines and has a positive outlook for copper prices.
Q1 results showed a decline in revenue due to Cobre Panama closure, but the company took steps to strengthen its financial position.
The market appears to be undervaluing the potential outcomes regarding the Cobre Panama mine closure.
📰🔬 Further Suggested Reading
$ = behind a paywall / 🗃️ = Archived article
🇨🇳 The One-Child Policy Supercharged China’s Economic Miracle. Now It’s Paying the Price. (WSJ) $ 🗃️
Revised U.N. data shows the speed of China’s aging after it accelerated its ‘demographic dividend’
🌏 Rethinking "Demographics Risk" (East Asia Stock Insights) $
There’s no denying that these are real challenges at a macro level — rising healthcare costs, mounting debt burden on countries, and so on. But I’m a stock investor, not a policymaker or economist. And the question I’ve pondered is: is this really something that we, as investors, should lose sleep over?
Despite the pervasive gloom and doom, I have come to believe that demographic risks are overblown. I will explain my reasonings in this memo, drawing primarily from my experience investing in the Japanese market [Note: Also see: An Ageing Japan: A Diverse Range of Businesses You Can Invest in - An ageing society can pose challenges to certain industries and economies. However, it's crucial not to let this adversely impact your investment portfolio.], although I believe these arguments apply to any country facing similar issues.
🇨🇳 Mutual Funds Targeting Bonds, High-Dividend Shares Gain Traction Amid Stock Market Gloom (Caixin) $
China's bond mutual funds outperformed equity mutual funds in the first half, with an average return of 2.26% versus a 1.74% average loss.
Mutual funds in China topped banks' wealth management products in net asset value last year and reached 31.2 trillion yuan ($4.4 trillion) by May.
Equity funds focused on high-dividend stocks saw gains, with the CSI Dividend Index increasing nearly 8% in the first half.
🇨🇳 Mass IPO Retreat in China as Stricter Listing Standards Come Into Force (Caixin) $
315 Chinese companies have pulled their IPO applications in 2023, with stricter guidelines causing a significant impact.
New regulations from the National Nine Articles require main board candidates to show at least 100 million yuan in net profit, while GEM candidates need 60 million yuan.
The CSRC's tighter oversight and increased penalties have led to cautious internal controls among brokerages, resulting in numerous IPO withdrawals, particularly from top firms.
🇭🇰 Hong Kong’s lukewarm IPO market may be about to heat up (Bamboo Works)
Hong Kong has struggled to attract big listings in a weak overall market, pushing its IPO takings down sharply in the first half, but some higher profile deals could be in the pipeline
The value of new IPOs on the Hong Kong Stock Exchange fell 27% to HK$13.1 billion in the first half of the year as just 30 companies made their debut, and none ranked as a blockbuster listing
Analysts say the IPO tempo may pick up in the second half, returning Hong Kong to the world’s top five listing destinations in 2024 with up to HK$80 billion raised by 80 companies
🇮🇳 ‘Get us more paper’ — Indian equity issuance hits record high (FT) $ 🗃️
Over $28bn raised in first half, almost triple the amount a year ago
🌏 APAC emerges as data centre investment hotspot (The Asset) 🗃️
Data centre transactions in the region surge to US$22 billion in 2023
As DC operators prepare for the AI explosion, there has been a significant buildout of capital-intensive infrastructure, designed to accommodate the large number of specialized semiconductors AI technologies require, according to the latest report [APAC Data Centre Investment Strategies in the Age of Digitalisation] of CapitaLand (CLI), a Singapore-based real estate investment and management firm.
🌐 Goldman's Head Of Research Crucifies The "AI Bubble": Not One Transformative Application Has Been Found (ZeroHedge) 🗃️
Rallying markets like to shoot, or in this case buy, and ask questions much later or never - and certainly not until it is far too late, everything has crashed, and the fingerpointing and crying are all that's left, at which point the only question on the market's mind is why did nobody ask any questions earlier.
The latest example of this of course is the
3D TV,fake meat,virtual reality,the metaverse,blockchain, chatbot (aka AI) bubble, where a handful of supergiant firms are adding hundreds of billions in market cap every single day because of some algo glitch where the market believes their revenue growth is virtually unlimited because somehow other companies have trillions and trillions in capital spending power which they will - in a zero sum circle jerk - give to the five biggest companies in the world, making them even bigger in the process.Luckily, almost two years after ChatGPT 3.5 was first released and almost a century after modern AI first emerged, some are finally starting to ask questions. And in the latest Top of Mind note from Goldman, the bank goes actually asked the question whose negative response would lead to an immediate market crash: is there too much spending on AI, and too little benefit? (available to pro subscribers).
📅 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):
Venezuela Venezuela Presidency Jul 28, 2024 (d) Confirmed May 20, 2018
Jordan Jordanian House of Deputies Sep 10, 2024 (d) Confirmed Nov 10, 2020
Czech Republic Czech Senate Sep 20, 2024 (d) Confirmed Sep 23, 2022
Sri Lanka Sri Lankan Presidency Sep 30, 2024 (t) Date not confirmed Nov 16, 2019
Georgia Georgian Parliament Oct 26, 2024 (d) Confirmed Oct 31, 2020
Uruguay Uruguayan Presidency Oct 27, 2024 (t) Date not confirmed
Uruguay Uruguayan Chamber of Representatives Oct 27, 2024 (t) Date not confirmed
Uruguay Uruguayan Chamber of Senators Oct 27, 2024 (t) Date not confirmed
Uzbekistan Uzbekistani Legislative Chamber Oct 31, 2024 (t) Date not confirmed Dec 22, 2019
Romania Romanian Senate Nov 24, 2024 (t) Date not confirmed Dec 6, 2020
Namibia Namibian Presidency Nov 27, 2024 (d) Confirmed Nov 27, 2019
Namibia Namibian National Assembly Nov 27, 2024 (d) Confirmed Nov 27, 2019
Kazakhstan Referendum Nov 30, 2024 (t) Date not confirmed Jun 5, 2022
Georgia Georgian Presidency Nov 30, 2024 (t) Date not confirmed Nov 28, 2018
Romania Romanian Senate Dec 1, 2024 (t) Date not confirmed Dec 6, 2020
Romania Romanian Chamber of Deputies Dec 1, 2024 (t) Date not confirmed Dec 6, 2020
Ghana Ghanaian Presidency Dec 7, 2024 (t) Date not confirmed Dec 7, 2020
Ghana Ghanaian Parliament Dec 7, 2024 (t) Date not confirmed Dec 7, 2020
Thailand Referendum Dec 31, 2024 (t) Date not confirmed Aug 7, 2016
📅 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):
Icon Energy Corp. ICON Maxim Group LLC, 1.3M Shares, $4.00-4.00, $5.0 mil, 7/12/2024 Priced
We are an international shipping company that was recently incorporated in the Republic of the Marshall Islands for the purpose of acquiring, owning, chartering and operating dry bulk vessels. We provide worldwide seaborne transportation services for dry bulk cargo, including ‘major bulks’ such as iron ore, coal, grains and bauxite, and ‘minor bulks’ such as steel, sugar, fertilizers, cement and scrap metal.
Upon completion of this offering, we will own one Panamax dry bulk vessel, named the M/V “Alfa”, with a carrying capacity of approximately 77,326 dwt, which was built in Japan in 2006. We refer to this vessel throughout this prospectus as our “Initial Vessel.”
We intend to charter our vessels to regional and international dry bulk operators, commodity traders and end users, primarily on time charters (either index-linked or fixed rate) or voyage charters, depending on market conditions, opportunities available to us, and other strategic and tactical considerations. Our Initial Vessel is currently employed by an international commodity trading conglomerate, on a time charter expiring between October 2025 and February 2026, at a floating daily rate linked to the Baltic Panamax Index.
Overall responsibility for the management of Icon Energy rests with our Board of Directors. Our Board of Directors has organized the provision of management services through Pavimar Shipping Co. (“Pavimar”), a ship management company incorporated in the Republic of the Marshall Islands, with a branch office in Greece established under the provisions of Greek Law 27 of 1975 (“Law 27 of 1975”). Pavimar is controlled by our Chairwoman and Chief Executive Officer, Mrs. Ismini Panagiotidi.
Note: Net income and revenue are in U.S. dollars for the year that ended Dec. 31, 2023.
(Note: Icon Energy Corp. filed its F-1 on May 14, 2024.)
QMMM Holdings Ltd. QMMM Wallach Beth Capital/ Revere Securities, 2.1M Shares, $4.00-4.00, $8.5 mil, 7/17/2024 Wednesday
We are the holding company for an award-winning digital media advertising service, virtual avatar and virtual apparel technology service company whose operating subsidiaries are based in Hong Kong. (Incorporated in the Cayman Islands)
We are an award-winning digital media advertising service, virtual avatar and virtual apparel technology service company. Through our operating subsidiaries ManyMany Creations and Quantum Matrix, we have used interactive design, animation, art-tech and virtual technologies in over 500 commercial campaigns. We have worked with large domestic and international banks, real estate developers, a world famous amusement park, top international athletic apparel and footwear brands, and luxury cosmetic products for their advertising and creative work in Hong Kong. Standing prominently in Hong Kong for over 18 years in the industry, with top creativity, premium account servicing, and ever advancing tech R&D, we continue to be one of the top premium choices for enterprises and multinational enterprises looking for large-scale content-heavy and tech-integrated campaigns. Our clients include local and international banks, real-estate developers, luxury brands, high fashion houses and theme parks.
Our subsidiary ManyMany Creations has stood out in the industry by breaking through traditional forms of advertising through digital technology. We endeavour to integrate quality concepts with creative digital media technology and provide a one-stop shop for content creativity and production for ad campaigns, TV commercials, online video, 360 video and animation, VR/AR/MR technology, 3D scanning, motion capture, projection mapping and digital façade production.
In March 2014, our wholly owned subsidiary Quantum Matrix, was incorporated. It has launched digital avatar “Quantum Human” and “Quantum Fit” solutions, which we believe is the world’s only avatar technology for mass adoption of virtual identity. Quantum Matrix has created over 30,000 digital avatars.
Quantum Matrix owns two patents in Hong Kong: The first patent is for its method of converting a 3D scanned object to an avatar and the second patent is for its method of automatically fitting an accessory object – a garment, for example – to an avatar. (See the prospectus for details.) These technologies are applied in commercial events, theme parks, fashion shows, luxury events, the entertainment industry, travel retail and a tech platform, among others. In addition, our technologies further provide a strong foundation to develop platforms for social media, entertainment, virtual self-expression and virtual influencers, as well as tradable and sharable digital assets for consumers and creators.
Note: Net loss and revenue are in U.S. dollars for the year that ended Sept. 30, 2023.
(Note: QMMM Holdings Ltd. named WallachBeth Capital as a joint book-runner – to work with Revere Securities – in an F-1/A filing dated June 25, 2024.)
(Note: QMMM Holdings Ltd. is offering 2.13 million ordinary shares (2,125,000 Ordinary Shares) at $4.00 to raise $8.5 million, according to its F-1/A filing dated May 20, 2024. Background: QMMM Holdings filed its F-1 on Oct. 6, 2023. The company submitted its confidential IPO filing to the U.S. Securities and Exchange Commission on June 23, 2023.)
Primega Group Holdings Limited PGHL Bancroft Capital LLC, 1.8M Shares, $4.00-6.00, $8.8 mil, 7/19/2024 Week of
We are a holding company. (Incorporated in the Cayman Islands)
From the prospectus: Investors are cautioned that you are buying shares of a Cayman Islands holding company with operations in Hong Kong by its operating subsidiary.
Note: We are a holding company incorporated in the Cayman Islands with operations conducted by our Hong Kong subsidiary, Primega Construction.
Primega Construction is a provider of transportation services that employs environmentally friendly practices with the aim of facilitating reuse of C&D (construction and demolition) materials and reduction of construction waste. Through Primega Construction, we operate in the Hong Kong construction industry, mainly handling transportation of materials excavated from construction sites. Primega Construction principally provides the following services in Hong Kong (i) soil and rock transportation services; (ii) diesel oil trading; and (iii) construction works, which mainly includes ELS works and bored piling. (Note: ELS stands for excavation and lateral support.)
We generally provide our services as a subcontractor to other construction contractors in Hong Kong.
In the prospectus, the company describes the source of its income: “We generate the majority of our income from soil and rock transportation services provided by Primega Construction, which contributed 73.82%, 88.47% and 66.48% of our total revenue during the years ended March 31, 2022, and March 31, 2023, and the six months ended Sept. 30, 2023, respectively. Primega Construction works with recyclers and other private contractors to repurpose and recycle excavated materials, reducing the volume of construction waste ending up in landfills, while lowering waste disposal fees incurred by its customers.
“We believe the following competitive strengths differentiate us from our competitors:
*”We have a fleet of 43 tipper trucks and machinery and a strong network of subcontractors;
*”Stable relationships with customers,
*”Experienced and professional management team.”
Note: Net income and revenue are in U.S. dollars for the 12 months that ended Sept. 30, 2023.
(Note: Prime Group Holdings Limited changed the sole book-runner of its small-cap IPO to Bancroft Capital LLC, a veteran-owned firm – replacing the original sole book-runner, Eddid Securities USA – according to an F-1/A filing dated June 21, 2024. Please Note: Prime Group Holdings Limited is offering 1.75 million shares – with 1.5 million shares offered by the company and 250,000 shares offered by Mr. Man Siu Ming, the selling shareholder – at a price range of $4.00 to $6.00 – to raise $8.75 million, according to the F-1/A filing dated June 21, 2024.)
🏁 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:
05/16/2024 - JPMorgan Active Developing Markets Equity ETF JADE - Equity
05/09/2024 - WisdomTree India Hedged Equity Fund INDH - Equity, India
03/19/2024 - Avantis Emerging Markets ex-China Equity ETF AVXC - Active, equity, ex-China
03/15/2024 - Polen Capital China Growth ETF PCCE - Active, equity, China
03/04/2024 - Simplify Tara India Opportunities ETF IOPP - Active, equity, India
02/07/2024 - Direxion Daily MSCI Emerging Markets ex China Bull 2X Shares XXCH - Equity, leveraged, China
01/11/2024 - Matthews Emerging Markets Discovery Active ETF MEMS - Active, equity, small caps
01/10/2024 - Matthews China Discovery Active ETF MCHS - Active, equity, small caps
11/07/2023 - Global X MSCI Emerging Markets Covered Call ETF EMCC - Equity, leverage
11/07/2023 - Avantis Emerging Markets Small Cap Equity ETF AVEE - Active, equity, small caps
09/22/2023 - Matthews Asia Dividend Active ETF ADVE - Active, equity, Asia
09/22/2023 - Matthews Pacific Tiger Active ETF ASIA - Active, equity, Asia
09/22/2023 - Matthews Emerging Markets Sustainable Future Active ETF EMSF - Active, equity, ESG
09/22/2023 - Matthews India Active ETF INDE - Active, equity, India
09/22/2023 - Matthews Japan Active ETF JPAN - Active, equity, Japan
09/22/2023 - Matthews Asia Dividend Active ETF ADVE - Active, equity, Asia
08/25/2023 - KraneShares Dynamic Emerging Markets Strategy ETF KEM - Active, equity, emerging markets
08/18/2023 - Global X India Active ETF NDIA - Active, equity, India
08/18/2023 - Global X Brazil Active ETF BRAZ - Active, equity, Brazil
07/17/2023 - Matthews Korea Active ETF MKOR - Active, equity, South Korea
05/18/2023 - Putnam Emerging Markets ex-China ETF PEMX - Active, value, growth stocks
05/11/2023 - JPMorgan BetaBuilders Emerging Markets Equity ETF BBEM - Passive, large + midcap stocks
03/16/2023 - JPMorgan Active China ETF JCHI - Active, equity, China
03/03/2023 - First Trust Bloomberg Emerging Market Democracies ETF EMDM - Principles-based
1/31/2023 - Strive Emerging Markets Ex-China ETF STX - Passive, equity, emerging markets
1/20/2023 - Putnam PanAgora ESG Emerging Markets Equity ETF PPEM - Active, equity, ESG, emerging markets
1/12/2023 - KraneShares China Internet and Covered Call Strategy ETF KLIP - Active, equity, China, options overlay, thematic
1/11/2023 - Matthews Emerging Markets ex China Active ETF MEMX - Active, equity, emerging markets
12/13/2022 - GraniteShares 1.75x Long BABA Daily ETF BABX - Active, equity, leveraged, single stock
12/13/2022 - Virtus Stone Harbor Emerging Markets High Yield Bond ETF VEMY - Active, fixed income, junk bond, emerging markets
9/22/2022 - WisdomTree Emerging Markets ex-China Fund XC - Passive, equity, emerging markets
9/15/2022 - KraneShares S&P Pan Asia Dividend Aristocrats Index ETF KDIV - Passive, equity, Asia, dividend strategy
9/15/2022 - OneAscent Emerging Markets ETF OAEM - Active, Equity, emerging markets, ESG
9/9/2022 - Emerge EMPWR Sustainable Select Growth Equity ETF EMGC - Active, equity, emerging markets
9/9/2022 - Emerge EMPWR Unified Sustainable Equity ETF EMPW - Active, equity, emerging markets
9/8/2022 - Emerge EMPWR Sustainable Emerging Markets Equity ETF EMCH - Active, equity, emerging markets, ESG
7/14/2022 - Matthews China Active ETF MCH - Active, equity, China
7/14/2022 - Matthews Emerging Markets Equity Active ETF MEM - Active, equity, emerging markets
7/14/2022 - Matthews Asia Innovators Active ETF MINV - Active, equity, Asia
6/30/2022 - BondBloxx JP Morgan USD Emerging Markets 1-10 Year Bond ETF XEMD - Passive, fixed income, emerging markets
5/2/2022 - AXS Short CSI China Internet ETF SWEB - Active, inverse, thematic
4/27/2022 - Dimensional Emerging Markets High Profitability ETF DEHP - Active, equity, emerging markets
4/27/2022 - Dimensional Emerging Markets Core Equity 2 ETF DFEM - Active, equity, emerging markets
4/27/2022 - Dimensional Emerging Markets Value ETF DFEV - Active, equity, emerging markets
4/27/2022 - iShares Emergent Food and AgTech Multisector ETF IVEG - Passive, equity, thematic [Mostly developed markets]
4/21/2022 - FlexShares ESG & Climate Emerging Markets Core Index Fund FEEM - Passive, equity, ESG
4/6/2022 - India Internet & Ecommerce ETF INQQ - Passive, equity, thematic
2/17/2022 - VanEck Digital India ETF DGIN - Passive, India market, thematic
2/17/2022 - Goldman Sachs Access Emerging Markets USD Bond ETF GEMD - Passive, fixed income, emerging markets
1/27/2022 - iShares MSCI China Multisector Tech ETF TCHI - Passive, China, technology
1/11/2022 - Simplify Emerging Markets PLUS Downside Convexity ETF EMGD - Active, equity, options strategy
1/11/2022 - SPDR Bloomberg SASB Emerging Markets ESG Select ETF REMG - Passive, equity, ESG
🚽 Emerging Market ETF Closures/Liquidations
Frontier and emerging market highlights:
05/17/2024 - Global X Next Emerging & Frontier ETF - EMFM
03/25/2024 - Global X MSCI Nigeria ETF - NGE
03/21/2024 - VanEck Egypt Index ETF - EGPT
03/14/2024 - KraneShares Bloomberg China Bond Inclusion Index ETF - KBND
03/14/2024 - KraneShares China Innovation ETF - KGRO
03/14/2024 - KraneShares CICC China Consumer Leaders Index ETF - KBUY
03/13/2024 - Xtrackers MSCI All China Equity ETF - CN
03/13/2024 - Xtrackers MSCI China A Inclusion Equity ETF - ASHX
02/16/2024 - Global X MSCI China Real Estate ETF - CHIH
02/16/2024 - Global X MSCI China Biotech Innovation ETF - CHB
02/16/2024 - Global X MSCI China Utilities ETF - CHIU
02/16/2024 - Global X MSCI Pakistan ETF - PAK
02/16/2024 - Global X MSCI China Materials ETF - CHIM
02/16/2024 - Global X MSCI China Health Care ETF - CHIH
02/16/2024 - Global X MSCI China Financials ETF - CHIX
02/16/2024 - Global X MSCI China Information Technology ETF - CHIK
02/16/2024 - Global X MSCI China Consumer Staples ETF - CHIS
02/16/2024 - Global X MSCI China Industrials ETF - CHII
02/16/2024 - Global X MSCI China Energy ETF - CHIE
02/14/2024 - BNY Mellon Sustainable Global Emerging Markets ETF - BKES
01/26/2024 - The WisdomTree Emerging Markets ESG Fund - RESE
11/11/2023 - Global X China Innovation ETF - KEJI
11/11/2023 - Global X Emerging Markets Internet & E-commerce ETF - EWEB
11/09/2023 - Franklin FTSE South Africa ETF - FLZA
10/27/2023 - Simplify Emerging Markets Equity PLUS Downside Convexity - EMGD
10/20/2023 - WisdomTree India ex-State-Owned Enterprises Fund - IXSE
10/20/2023 - WisdomTree Chinese Yuan Strategy Fund - CYB
10/20/2023 - Loncar China BioPharma ETF - CHNA
10/18/2023 - KraneShares Emerging Markets Healthcare Index ETF - KMED
10/18/2023 - KraneShares MSCI China ESG Leaders Index ETF - KSEG
10/18/2023 - KraneShares CICC China Leaders 100 Index ETF - KFYP
10/16/2023 - Strategy Shares Halt Climate Change ETF - NZRO
09/20/2023 - VanEck China Growth Leaders ETF - GLCN
08/28/2023 - Asian Growth Cubs ETF - CUBS
08/01/2023 - VanEck Russia ETF - RSX
07/07/2023 - Emerge EMPWR Sustainable Emerging Markets Equity ETF - EMCH
06/23/2023 - Invesco PureBeta FTSE Emerging Markets ETF - PBEE
06/16/2023 - AXS Short China Internet ETF - SWEB
04/11/2023 - SPDR Bloomberg SASB Emerging Markets ESG Select ETF - REMG
3/30/2023 - Invesco BLDRS Emerging Markets 50 ADR Index Fund - ADRE
3/30/2023 - Invesco BulletShares 2023 USD Emerging Markets Debt ETF - BSCE
3/30/2023 - Invesco BulletShares 2024 USD Emerging Markets Debt ETF - BSDE
3/30/2023 - Invesco RAFI Strategic Emerging Markets ETF - ISEM
2/17/2023 - Direxion Daily CSI 300 China A Share Bear 1X Shares - CHAD
1/13/2023 - First Trust Chindia ETF - FNI
12/28/2022 - Franklin FTSE Russia ETF - FLRU
12/22/2022 - VictoryShares Emerging Market High Div Volatility Wtd ETF CEY
8/22/2022 - iShares MSCI Argentina and Global Exposure ETF AGT
8/22/2022 - iShares MSCI Colombia ETFI COL
6/10/2022 - Infusive Compounding Global Equities ETF JOYY
5/3/2022 - ProShares Short Term USD Emerging Markets Bond ETF EMSH
4/7/2022 - DeltaShares S&P EM 100 & Managed Risk ETF DMRE
3/11/2022 - Direxion Daily Russia Bull 2X Shares RUSL
1/27/2022 - Legg Mason Global Infrastructure ETF INFR
1/14/2022 - Direxion Daily Latin America Bull 2X Shares LBJ
Check out our emerging market ETF lists, ADR lists (updated) and closed-end fund (updated) lists (also see our site map + list update status as most ETF lists are updated).
I have changed the front page of www.emergingmarketskeptic.com to mainly consist of links to other emerging market newspapers, investment firms, newsletters, blogs, podcasts and other helpful emerging market investing resources. The top menu includes links to other resources as well as a link to a general EM investing tips / advice feed e.g. links to specific and useful articles for EM investors.
Disclaimer. The information and views contained on this website and newsletter is provided for informational purposes only and does not constitute investment advice and/or a recommendation. Your use of any content is entirely at your own risk and it is your sole responsibility to evaluate the accuracy, completeness and usefulness of the content. Seek a duly licensed professional for any investment advice. I may have positions in the investments covered. This is not a recommendation to buy or sell any investment mentioned.
Emerging Market Links + The Week Ahead (July 15, 2024) was also published on our website under the Newsletter category.