Emerging Market Links + The Week Ahead (October 2, 2023)
“China for China” strategy, local Chinese govts in the red, Malaysia is aiming for a chip comeback, $109T global stock market in one chart, EM stock picks and the week ahead for emerging markets.
An FT article has mentioned how “China for China” strategies, or reconfiguring Chinese operations to serve only the Chinese market, is a growing recent trend driven as much by the country’s own behaviour towards foreign businesses as well as western government pressure. However, the danger is that hived-off Chinese units become detached from group oversight - and more vulnerable to official influence or being sucked into opaque Chinese ways of doing business.
Meanwhile, Asia Nikkei has noted how Malaysia is aiming for a chip comeback as the industry shifts away from China. The country is already a major hub for the final steps of the chipmaking process and is the sixth-biggest source of semiconductor exports. However, the country relies heavily on foreign chip players to sustain its industry, has produced a major chip manufacturers and does not boast any top developers.
Finally, we have a number of stock pick ideas from a number of countries or regions. If someone knows any good blogs, sites or YouTube channels that cover Latin American (browser translators usually work good enough), Eastern European or Middle East stocks (sites similar to Seeking Alpha/Motley Fool, Bamboo Works for China, The Smart Investor out of Singapore, etc.) - let me know in the comments. Unlike with these sites and for my posts though, I ALWAYS try to link a stock name to the IR page and to Yahoo! Finance stock quotes - even though that’s bad for my Google SEO…
Emerging Market Stock Pick Tear Sheets
$ = behind a paywall
🇿🇦 Business Day TV Daily Stock Picks (August 2023) Partially $
Motus Holdings, Bid Corporation, Stadio Holdings, Curro Holdings, ASML, MultiChoice Group, Netcare, Glencore, Adcock Ingram, Absa, Ethos Capital Partners (EPE Capital Partners), Kering, Taiwan Semiconductor Manufacturing Company, British American Tobacco, Caxton and CTP Publishers and Printers, Standard Bank, Nedbank, Teleperformance SE, Investec, Grindrod, Ashmore PLC, Sasol, Tencent, Super Group, Quilter PLC, Zeda, Barloworld, Bidvest, Mr Price Group, Lewis Group, Omnia Holdings, Richemont, Stor-Age Property REIT Ltd, African Rainbow Minerals and Sibanye-Stillwater
🇦🇷 The Flawed Global X MSCI Argentina ETF's Holdings (September 2023) Partially $
Argentina stock picks that are the holdings of the flawed Global X MSCI Argentina ETF (NYSEARCA: ARGT) plus some updates about the Argentina Presidential elections and front runner Javier Milei.
🇨🇳 🇹🇼 Morningstar Hong Kong & Singapore Stock of the Week (Q3 2023) Partially $
NIO Inc, Swatch Group, Taiwan Semiconductor Manufacturing Company (TSCM), BYD Company, China East Education, Country Garden and China Overseas Land & Investment (COLI), etc.
Emerging Market Stock Picks / Stock Research
$ = behind a paywall
🇨🇳 🇩🇪 Also see: Fresh thoughts on VW; New position; Exor; LVMH and Follow-up on VW; New position; attending my first AGM in the UK (Hidden Valley Gems)
🇨🇳 Sputtering WM Motor changes lanes with new U.S. listing plan – Part 1 (Bamboo Works)
Its latest setback came earlier this month, when WM Motor’s attempt at a $2 billion Hong Kong backdoor listing collapsed when its merger partner, Apollo Smart Mobility Group (HKG: 0860 / FRA: MVF1 / OTCMKTS: ALFMF), slammed the brakes on the deal on Sept. 8.
Following the collapse of its Hong Kong backdoor listing, the new energy vehicle maker is pinning its hopes on a potential merger with the U.S.-listed Kaixin Auto (NASDAQ: KXIN / FRA: K640)
WM Motor could list in New York through a newly announced tie-up with Kaixin Auto, even though it suspended production and sales this year
The automaker’s annual sales last year dropped significantly to just 30,000 units
🇨🇳 Sputtering WM Motor hopes for recharge from new U.S. listing with Kaixin – Part 2 (Bamboo Works)
The two troubled companies signed a tentative merger plan last week, even as China’s NEV sector undergoes a painful consolidation
Kaixin Auto aims to become a new energy vehicle maker with its acquisition of WM Motor and another NEV maker, even as the industry heads toward consolidation
Kaixin’s shares are down 44% since announcement of the WM Motor acquisition, and continued to slide after a recent reverse share split to bring them back above the $1 mark
🇨🇳 Tuhu Car IPO gets off to slow start despite star power (Bamboo Works)
The online to offline car servicing company has finally got its share listing on the road at the third attempt
Tuhu Car (HKG: 9690 / FRA: L83) has been backed by five established investors including Tencent (HKG: 0700 / LON: 0LEA / FRA: NNND / OTCMKTS: TCEHY), Zhejiang Leapmotor Technology Co Ltd (HKG: 9863) and Gotion High-tech Co (SHE: 002074 / FRA: 24U0) in its public offering starting last Friday
The company posted an adjusted profit for the first time in its latest half-year earnings but its Hong Kong shares got a lukewarm response from the public
🇨🇳 Appotronics powers up for drive into smartcars (Bamboo Works)
The display laser maker has signed deals with BYD Company (HKG: 1211 / SHE: 002594 / OTCMKTS: BYDDY / BYDDF) and BMW (ETR: BMW / OTCMKTS: BMWYY / BAMXF), and believes smartcar-use products could account for up a ‘significant’ portion of its sales next year
Display laser maker Appotronics Corp (SHA: 688007) sees big potential in the smartcar business, which is now negligible but could account for a significant portion of its sales in 2024
The company’s revenue fell 15.5% in the first six months of this year on weak laser TV sales, but its profit jumped 63% on strong growth for its higher-margin cinema-use laser business
🇨🇳 SMIC's Semi Shocker (Smartkarma) $
The latest Mate 60 Kirin SOC is a major accomplishment for the Huawei, SMIC combo
Semiconductor Manufacturing International Corporation (SMIC) (SHA: 688981 / HKG: 0981 / FRA: MKN2) will likely continue to refine their N+2 node and develop a 5nm-like process within 2-3 years, even without the use of EUV
SMIC's accomplishment is not reflected in its share price which lies midways between 52 week highs & lows
🇨🇳 Cainiao Pre-IPO - The Negatives - Growth Still Driven by China Ops, Pricing Pressure Persists (Smartkarma) $
Cainiao Smart Logistics, Alibaba (NYSE: BABA)’s logistics linked arm, is planning to raise at least US$1bn in its Hong Kong IPO.
Cainiao is the largest provider of cross-border e-commerce logistics services globally and a leader in China logistics services, according to CIC.
In this note, we talk about the not-so-positive aspects of the deal.
🇨🇳 4Paradigm: Fears About The Entity List Are Exaggerated, Bullish On AI and SageGPT, PT: HK$86 (Smartkarma) $
Beijing Fourth Paradigm Technolgy Co Ltd or 4Paradigm (HKG: 6682), a self-developed AI platform and scenario-specific AI applications provider, has completed an IPO and raised net proceeds of ~HK$836M, excluding the over-allotment option.
Founder-Led AI unicorn priced its IPO at the bottom end of the range at HK$55.60 per share. Cornerstone investors agreed to purchase ~13.6M H shares at the IPO price.
I like the company’s leadership position in China’s fastest-growing decision-making AI market, large TAM for their enterprise-grade generative AI offering SageGPT and top-tier VC investors.
🇨🇳 🇰🇷 Londian Wason Energy Tech: Planning an IPO in the US in 2024 (Impact on SK Inc) (Smartkarma) $
According to SCMP [Chinese EV battery parts maker Londian mulls US IPO via Citigroup, Goldman Sachs: sources], Londian Wason is getting ready for an IPO in the US in 2024. Londian Wason is planning to raise nearly US$500 million in pre-IPO funding and IPO.
SK Inc (KRX: 034730) owns about 30% stake in Londian Wason, a leading copper foil maker in China. It is estimated that SK Inc's stake is worth about US$1.1 billion.
In 2022, Londian Wason generated sales of 1.47 trillion won. Since SK's investment in Londian Wason in 2019, the company's sales has been growing at more than 50% per annum.
🇨🇳 RemeGen hopes for pain relief from expanded drug uses (Bamboo Works)
The innovative drug company has so far brought only two products to market, and its high sales expenses make investors worry about fallout from an anti-corruption drive
RemeGen (HKG: 9995 / SHA: 688331 / FRA: REG / OTCMKTS: REGMF)’s sales expenses reached around 83% of sales income in the first half of the year and the company has flagged up a need for more spending
The pharma firm has applied to have the use of its autoimmune drug broadened to include arthritis treatment, triggering a 17.7% share price rally within a week
🇨🇳 Estrella Immunopharma nears completion of SPAC listing (Bamboo Works)
The developer of T-cell cancer therapies is based in California, but says it ‘may be subject to risks’ due to its numerous China connections
Some companies may also believe they don’t require reviews because they aren’t physically based in China, even though they have close China ties. Cancer treatment maker Estrella Immunopharma Inc. falls into this category, led by a Chinese management team and using a Chinese underwriter for its planned backdoor listing using a special purpose acquisition company (SPAC).
Estrella was in headlines last Monday when its SPAC partner, TradeUP Acquisition Corp. (NASDAQ: UPTD / UPTDU / UPTDW) announced a one-month extension to the deadline for the two companies to complete their merger. The extension means the pair now have until Oct. 19 to complete their combination that would see Estrella take over the SPAC.
Estrella Immunopharma is nearing completion of its New York listing using a SPAC backed by China’s UP Fintech (NASDAQ: TIGR)
The cancer therapy developer was only founded last year, but thinks it can start generating revenue as soon as 2025 using proprietary technology from its founder
🇨🇳 Gree (000651 CH): Resilient Fundamentals; Rerating Potential In A Low Interest Rate Environment (Smartkarma) $
Gree Electric Appliances (SHE: 000651) trades at the lowest valuation multiple among the three major home appliance companies in China, at 7x forward PE and 7% forward yield.
Investment case rests on stable earnings growth and high dividend payout and yield, which works well in a low interest rate environment in China.
Resiliency of earnings for Gree is under-appreciated by the market, making rerating possible.
🇨🇳 Hengan/Vinda: Pulp Friction (Smartkarma) $
Hengan International (HKG: 1044 / FRA: HGNC / OTCMKTS: HEGIY) and Vinda International (HKG: 3331 / OTCMKTS: VDAHY / VDAHF) are both market leaders in China's personal care industry.
Hengan's operations have greater exposure to sanitary napkins and diapers; whereas tissues account for 83% of Vinda's revenue. Both companies have been impacted by an increase in wood pulp prices.
Hengan is trading cheap; but Vinda's bottom line is forecast to return to its glory days. Plus rumours of a possible takeover of Vinda continue to do the rounds.
🇨🇳 Li Ning (2331 HK): No Positive Catalysts In Sight (Smartkarma) $
Since my bearish insight on August 11 (Li Ning (2331 HK): Low Quality Earnings Beat), Li Ning (HKG: 2331 / FRA: LNLB / FRA: LNL / OTCMKTS: LNNGY / LNNGF)'s share price has declined by 27% in less than 2 months.
ANTA Sports Products (HKG: 2020 / FRA: AS7 / OTCMKTS: ANPDY / OTCMKTS: ANPDF)'s share price on the other hand has been flat during the same time frame (Anta Sports (2020 HK): Most Resilient In Industry Down-Cycles).
In this insight, we look at if there are now any positive catalysts on the name, given the steep share price decline.
🇭🇰 🇵🇭 International Ent to invest at least US$1bln in Manila IR (GGRAsia)
Hong Kong-listed International Entertainment Corp (HKG: 1009) says it will have to invest between US$1.0 billion and US$1.2 billion to develop an integrated resort (IR) with a casino in the Philippines capital, Manila. The investment pledge is part of an agreement with the country’s gaming regulator, the Philippine Amusement and Gaming Corp (Pagcor), for a provisional licence to establish and operate a casino, said the company in a Wednesday filing.
Wednesday’s filing said the provisional licence enables the group “to operate and manage casino business and gambling activities independently”.
“The provisional licence will provide an opportunity for the group to participate in the gaming and entertainment [industries],” in addition to its hospitality operations, potentially boosting “future earnings”, stated International Entertainment.
🇲🇳 Mongolia Growth Group (ToffCap)
Kuppy manages a fund called Praetorian Capital
So why this long introduction? Because Kuppy is also the founder and CEO of a listed company called Mongolia Growth Group (CVE: YAK / OTCMKTS: MNGGF).
What is MGG? The original mandate of MGG was, as the name indicates, to invest in (at the time) one of the most rapidly growing economies in Asia – Mongolia. The country had a promising outlook at the time, and MGG invested primarily in real estate to profit from the economic tailwinds. However, bad government policy basically killed off the promise of Mongolia and the country has been having a hard time since, along with MGG’s property portfolio.
Since then, MGG has been selling properties and reinvesting the proceeds in marketable securities and stock buy-backs. In addition, over 2021, MGG incubated a new subscription service for investors, KEDM. This service has been growing rapidly at healthy margins, though it kind of stagnated now. Subscription revenue alone is able to stem opex and it looks like MGG will be roughly break-even operationally going forward.
🇰🇷 Ecopro Materials IPO Valuation Analysis (Smartkarma) $
Our base case valuation for Ecopro Materials is implied price per share of 40,325 won per share, which is within the IPO price range of 36,200 won to 46,000 won.
Given the lack of upside relative to the IPO price range, we have a negative view of this IPO.
Ecopro Materials is engaged in the business of manufacturing and selling high-nickel precursors, one of the key materials for high-nickel anode materials for secondary batteries.
🇰🇷 Three IPO Candidates of the Dongwon Group (StarKist, Dongwon Loex, and Dongwon Home Food) (Smartkarma) $
It was reported in the local Korean media that the Dongwon Group is considering on listing three private companies including Starkist, Dongwon Loex, and Dongwon Home Food.
Prior to their IPOs, Dongwon Group is reviewing the potential of selling partial stakes in these companies in pre-IPO investments.
One of the major purposes of the IPOs would be to gain access to more capital which could be used by the Dongwon Group to acquire HMM.
🇵🇭 Light & Wonder to expand facilities in the Philippines: CEO (GGRAsia)
The land-based casino market in Asia “is strategically very important” for Light & Wonder Inc (NASDAQ: LNW), and the casino equipment and digital gaming content provider plans to increase its presence in the region.
“The Philippines is a really fast-growing business,” he [company chief executive Matt Wilson] said. The country is on an “expansive growth agenda”, with the number of casino resorts increasing, and Light & Wonder is “positioned nicely to benefit from that”, noted Mr Wilson.
“All the changes that we made in the last few years to invest behind our ambitions are starting to show up on the financial scoreboard,” he said. Light & Wonder’s second-quarter consolidated adjusted earnings before interest, taxation, depreciation, and amortisation (EBITDA) were US$281 million, up 32.5 percent year-on-year, and up 12.9 percent quarter-on-quarter.
“That makes us the fastest growing supplier in the space,” said the Light & Wonder CEO.
🇸🇬 5 Delicious Food-Related Singapore Stocks You Can Add to Your Buy Watchlist (The Smart Investor)
ST Group Food Industries (STGF) (SGX: DRX) holds the exclusive franchise and licence rights to internationally popular brands such as PappaRich, Nene Chicken, Gong Cha, Hokkaido Baked Cheese Tart, IPPUDO, and iDarts, in various countries.
Old Chang Kee (SGX: 5ML) or OCK, produces and sells a wide variety of delectable fried snacks.
Soup Holdings (SGX: 5KI / FRA: SR6) operates a chain of Chinese restaurant outlets in Singapore under the name of “Soup Restaurant”.
Japan Foods (SGX: 5OI / TYO: 2599) operates a chain of Japanese restaurants such as Ajisen Ramen, Osaka Ohsho, and Fruit Paradise.
JB Foods Ltd (SGX: BEW) or JBF, is a cocoa ingredients producer with operations spanning Asia-Pacific, Europe, West Africa and the US.
🇸🇬 Sembcorp Industries’ Share Price Jumped 48.3% Year-to-Date: Can the Utility Giant Continue its Run? (The Smart Investor)
Sembcorp Industries (SGX: U96 / FRA: SBOA / OTCMKTS: SCRPF)
A slew of contracts
Shifting from brown to green
Dividends are on a rebound
Investors may be pleased to note that SCI was added to the MSCI Singapore Index starting from 1 September.
🇸🇬 Share Prices of These 4 Singapore Stocks Are at Their 52-Week Low: Can They Rebound Soon? (The Smart Investor)
CapitaLand China Trust (SGX: AU8U / OTCMKTS: CLDHF), or CLCT, is a China-focused REIT with a portfolio of 11 shopping malls, five business park properties, and four logistic park properties.
Sheng Siong Group (SGX: OV8 / OTCMKTS: SHSGF) one of the largest supermarket operators in Singapore with 68 outlets across the island.
Kimly Ltd (SGX: 1D0) is one of the largest coffee shop operators in Singapore and manages an extensive network of food outlets, food stalls, restaurants, and food kiosks.
Nanofilm Technologies (SGX: MZH / OTCMKTS: NNFTF) is a provider of nanotechnology solutions and provides technology-based solutions to a wide variety of industries.
🇸🇬 OUE Commercial REIT’s Unit Price is Hitting a 52-Week Low: Is the REIT Poised for a Rebound? (The Smart Investor)
OUE Commercial REIT (SGX: TS0U / FRA: OUE1)
The commercial, retail and hospitality REIT’s unit price has plunged 36.8% year to date and is just a whisker away from its 52-week low of S$0.20.
International visitor arrivals in Singapore are expected to hit 12 to 14 million for 2023 with a full recovery expected in 2024.
Hotel bookings are also being rapidly filled with many exciting events such as international stars Coldplay and Taylor Swift staging multi-day concerts in Singapore.
🇹🇭 🇹🇼 Delta Taiwan Vs. Thailand Monitor: Delta Thai Crashes After Parent Share Sale; Still Overvalued (Smartkarma) $
Delta Electronics Thailand (BKK: DELTA) shares crashed over 20% in one day after its Taiwan parent sold a stake in the company.
Given the small size of the stake sale, we believe the share sale by the parent represents an opportunistic sale to crystallize value from Delta Thailand's high share price.
We spoke with Delta Electronics Taiwan (TPE: 2308) to update our model. Delta Taiwan continues to offer much better value than Delta Thailand, earning more than double Thailand's net profit with similar growth.
🇹🇭 Travel notes: Chiang Mai (Asian Century Stocks) Partially $
Note: Mentions property developer Central Pattana Public (BKK: CPN / OTCMKTS: CTPUF / CPNNF) (US$7.8 billion), a subsidiary of Thailand’s Central Group, developer Supalai (BKK: SPALI / FRA: NYVL / OTCMKTS: SUPCF) (US$1.1 billion) and Major Cineplex (BKK: MAJOR / FRA: MJG1) (US$335 million).
I just spent a few days in the Northern Thai City of Chiang Mai.
While technically on holiday, I also took the opportunity to learn more about some of the companies I’ve discussed on Asian Century Stocks. I also met with two investors, including Marc Faber, who has lived in Chiang Mai since the early 2000s.
🇹🇭 Thai Beverage (THBEV SP): Cheaper than Peers with an Upcoming Catalyst (Smartkarma) $
Thai Beverage (SGX: Y92 / OTCMKTS: TBVPF / TBVPY) has trended lower over the last couple of years and the stock is trading very close to its lows.
There has been a contraction in multiples and Thai Beverage (THBEV SP) trades cheaper than a lot of its Asia listed peers.
A potential index inclusion could bring in significant passive inflows and result in a rerating of the stock.
🇮🇳 Indian conglomerate Vedanta to break up as debt crunch looms (FT) (Archived Article)
Anil Agarwal is splitting the group into six entities in an effort to raise their valuation
Vedanta (NSE: VEDL / BOM: 500295) said on Friday that it will split into six units — aluminium, power, base metals, steel and ferrous metals, oil and gas — in a sweeping shake-up of one of India’s biggest natural resources groups.
Vedanta also has businesses in Africa, and is India’s largest supplier of aluminium, a metal used in cars, planes and drink cans. It is also a large producer of fossil fuels and copper.
The shake-up comes a month after Agarwal, a former Mumbai scrap metals trader, said he was considering abandoning the conglomerate model given investors’ growing preference for “pure play” stocks.
🇵🇱 Brand 24 (B24) (value at risk newsletter)
Note: In Polish - some browsers cannot translate Polish.
Poland-based information technology company engaged in Internet monitoring.
The Issuer is a developer and supplier of analytical software used to monitor content on the Internet, m.in. in social media, blogs, forums and news services. Brand24 (WSE: B24) software, in accordance with user-defined criteria, collects and initially analyzes public mentions of brands, products and generally discussed topics containing monitored keywords
🇧🇷 BTG Pactual: Goldman with a dash of pinga? (Brazil Stocks)
Today we are going to talk about a Brazilian Investment Bank, or rather, the Brazilian Investment Bank: Banco BTG Pactual SA (BVMF: BPAC11 / BPAC3).
The close relationship they maintain with the Government certainly facilitates business, just as Goldman Sachs does in the United States. Many members of the Government go to work at the Bank, and vice versa.
Of the large banks, it is the one with the greatest growth. And it has good profitability.
It is not a good stock for dividend investors as they only pay out 25% of profits and the stock trades at quite a premium due to the high expected growth.
Further Suggested Reading
$ = behind a paywall
🇨🇳 For business, breaking up with China is hard to do (FT) (Archived Article)
The news this week that a senior Nomura banker, Charles Wang Zhonghe, has been barred from leaving mainland China has sent ripples through foreign companies and investors in the country. The circumstances behind the ban remain murky, though it may be connected to a long-running probe into China’s top tech sector dealmaker Bao Fan, who disappeared in February.
A growing recent trend — driven as much by China’s own behaviour towards foreign businesses as western government pressure — is “China for China” strategies, or reconfiguring Chinese operations to serve only the vast domestic market.
The danger, however, is that hived-off Chinese units become detached from group oversight — and more vulnerable to official influence or being sucked into opaque Chinese ways of doing business.
🇨🇳 Pandemic spending put local Chinese governments $548 billion in the red (Caixin) $
Local governments in China went 4 trillion yuan ($548 billion) into the red during the three-year pandemic, and the central government needs to issue special bonds to help them pay off debts owed to businesses, according to a well-known Chinese economist.
Accounts payable to businesses by local governments have mushroomed, hurting the ability of enterprises to invest, said Bai Chongen, dean of the School of Economics and Management at Beijing’s prestigious Tsinghua University, at a fiscal policy forum Thursday in Beijing.
🇨🇳 Does China’s Property Bust Make a Financial Crisis Inevitable? (WSJ)
Perhaps not—if Beijing plays its cards right. But serious damage to the nation’s prospects is still likely. A look at the problem in five charts.
Local governments in China, especially poorer inland ones without big corporate tax bases, have long relied on land sales and transfers from Beijing to plug their budget gaps. But over the past decade, debt and land have become increasingly critical funding sources.
🇲🇾 Malaysia aims for chip comeback as Intel, Infineon and more pile in (Asia Nikkei)
Country aims to regain semiconductor edge as companies seek supply chain stability
Malaysia is already a major hub for the final steps of the chipmaking process -- it controls 13% of the global market for packaging, assembly and testing services -- and is the sixth-biggest source of semiconductor exports, according to the government.
On the other hand, the country relies heavily on foreign chip players to sustain its industry. Intel, NXP, Infineon, Texas Instruments and Renesas have all had a presence in the country since the 1970s, while Malaysian chip packaging and testing service providers such as Inari Amertron (KLSE: INARI), Unisem (KLSE: UNISEM) and Carsem (Malaysian Pacific Industries Bhd (KLSE: MPI)) play only a small part in the global market. The country has produced no major chip manufacturers like TSMC or Samsung, and it does not boast any top developers like Nvidia and Qualcomm.
🇷🇺 Russia Trip Report - Economic Insights and Other Titbits (Part 1) (Pyramids and Pagodas)
Notes on the current state of play for air travel in Russia and China on my journey to Moscow
🇷🇺 Russia Trip Report - Economic Insights and Other Titbits (Part 2) (Pyramids and Pagodas)
Chinese manufacturers stepping in to get Muscovites from A to B amid sanctions
🇷🇺 Russia Trip Report - Economic Insights and Other Titbits (Part 3) (Pyramids and Pagodas)
Major western retailers and fast-food chains head for the exits while local brands step in
🇷🇺 Russia Trip Report - Economic Insights and Other Titbits (Part 4) (Pyramids and Pagodas)
Tales from the supermarket aisles: import substitution, the cashless economy and accessing Russian equities as a foreigner
🌐 The $109 Trillion Global Stock Market in One Chart (Visual Capitalist)
🌐 Charted: The World’s Biggest Oil Producers (Visual Capitalist)
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):
SlovakiaSlovakian National CouncilSep 30, 2023 (t) Confirmed Feb 29, 2020Ecuador Ecuadorian Presidency Oct 15, 2023 (d) Confirmed Aug 20, 2023
Poland Polish Sejm Oct 15, 2023 (t) Confirmed Oct 13, 2019
Poland Polish Senate Oct 15, 2023 (t) Confirmed Oct 13, 2019
Poland Referendum Oct 15, 2023 (t) Date not confirmed Sep 6, 2015
Argentina Argentinian Chamber of Deputies Oct 22, 2023 (d) Confirmed Oct 24, 2021
Argentina Argentinian Senate Oct 22, 2023 (d) Confirmed Nov 14, 2021
Argentina Argentinian Presidency Oct 22, 2023 (d) Confirmed Aug 13, 2023
Pakistan Pakistani National Assembly Nov 6, 2023 (t) Postponed Jul 25, 2018
Chile Referendum Dec 17, 2023 (t) Confirmed Sep 4, 2022
Taiwan Taiwanese Legislative Yuan Jan 13, 2024 (d) Confirmed Jan 11, 2020
Taiwan Taiwanese Presidency Jan 13, 2024 (d) Confirmed Jan 11, 2020
Pakistan Pakistani National Assembly Jan 31, 2024 (t) Postponed 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
South Korea South Korean National Assembly Apr 10, 2024 (t) Confirmed Apr 15, 2020
Panama Panamanian National Assembly May 5, 2024 (t) Confirmed May 5, 2019
Panama Panamanian Presidency May 5, 2024 (t) Confirmed May 5, 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):
Gamer Pakistan Inc. GPAK, WestPark Capital, 1.7M Shares, $4.00-4.00, $6.8 mil, 9/29/2023 Postponed
We are an early-stage esports company focused on developing and organizing esports events in Pakistan. (Incorporated in Delaware)
We are a development-stage interactive esports event promotion and product marketing company, founded in November 2021. Our initial focus is on creating college, inter- university and professional esports events for both men’s and women’s teams, particularly esports opportunities with colleges and universities in Pakistan. The Government of Pakistan’s 2021-22 Pakistan Economic Survey estimated that from 2020-21 there were approximately 500,000 students enrolled in technical and vocational education, approximately 760,000 in degree-awarding colleges, and 1.96 million students in universities.1 Though the foregoing likely will remain our focus for at least 12 months, over time, we intend to expand the range of our esports offerings, expand to other markets and eventually consider live sports. We will endeavor to integrate competitive events that include our teams and leagues with regional and global teams and leagues sponsored by others.
Pakistan is a large market for esports. Pakistan is the fifth most populous country in the world, with a current population estimated to be approximately 231 million persons. The median age in Pakistan is 22.8 years, and 35.1% of the population is urban (77,437,729). Mobile cellular subscriptions have grown at an astounding rate in Pakistan, with 79.51% of the inhabitants having a mobile cellular subscription in 2020 compared to only 0.22% in 2000. Approximately 36.8 million persons in Pakistan have been estimated to play video games in 2022, and the number is expected to increase to 50.9 million by 2026.
We plan to conduct our operations in Pakistan through K2 Gamer (PVT) Ltd. (“K2 Gamer”), and Elite Sports Pakistan Pvt. Ltd. (“ESP”), each a company duly incorporated under the laws of Pakistan. Pursuant to agreements with the three owners of K2 Gamer, we acquired 90% ownership of K2 Gamer on July 10, 2023 when the transfer was approved by the Securities and Exchange Commission of Pakistan (“SECP”). We will account for the transfer as an acquisition of a business under the provisions of ASC 805. To date all activities have been conducted by K2 Gamer and ESP, and not the Company, although the Company has received public recognition as a sponsor for many of the tournaments.
As a result of the assignment to K2 Gamer by ESP of all of its rights with respect to the exploitation of esports, ESP is an affiliate of K2 Gamer and, as a result of the acquisition by us of 90% of the stock of K2 Gamer, ESP now is our affiliate as well. For purposes of this prospectus, we have assumed, except where otherwise stated, that K2 Gamer has been our subsidiary and that ESP has been our affiliate during the periods mentioned. Mr. Muhammed Jamal Qureshi is an owner of K2 Gamer and ESP as well as CEO and a director of K2 Gamer and ESP.
Esports are the competitive playing of video games by amateur and professional teams or individuals for cash and other prizes. Esports typically take the form of organized, multiplayer video games that include real-time strategy and competition, including virtual fights, first-person shooter and multiplayer online battle arena games. The games are played on dedicated hardware (consoles), personal computers (PCs), or a range of mobile devices including smart phones and tablets. Unlike games of chance or luck, esports are defined as competitive games of skill, timing, knowledge, experience, practice, attention and teamwork. Tournaments can be held using consoles, PCs, mobile devices, or a combination of the foregoing. Competitors participate at large in-person events, small in-person events and virtually from home or computer cafes.
Between November 2021 and November 2022, we organized and held 27 separate championships, including the first “Annual University Esports National Tournament and Championship on June 30 through July 1 of 2022. In December 2022 we held the week-long inaugural National Esports Free Fire Championship. During 2023, K2 Gamer and/or ESP are expected to organize and conduct at least 18 championships. There were no paying sponsors for these championships, as a result of which we recognized no revenue from them. We believe that we will be able to gain paying sponsors as the championships gain popularity.
*Note: Revenue and net loss figures are for the year ended Dec. 31, 2022.
(Gamer Pakistan Inc. priced its micro-cap IPO on Sept. 28, 2023, in sync with the terms in its prospectus: 1.7 million shares at $4.00 to raise $6.8 million.)
(Note: The company is offering 1.7 million shares at $4.00 to $5.00 – with an assumed IPO price at $4.00 – to raise $6.8 million, according to an S-1/A filing dated Sept. 20, 2023. Background: In an S-1/A filing dated Sept. 6, 2023, Gamer Pakistan Inc. disclosed an increase in the number of shares that selling stockholders planned to offer: 1.71 million shares (1,706,329 shares). The company will NOT receive any proceeds from the sale of the selling stockholders’ shares.)
(Background: Gamer Pakistan Inc. filed an S-1/A dated Aug. 17, 2023, disclosing that the number of shares that selling stockholders planned to offer had been cut to 1.17 million shares – down from 2.9 million shares. The company will NOT receive any proceeds from the sale of the selling stockholders’ shares. The IPO’s primary portion and size remain the same: The company is offering 1.7 million shares at $4.00 to $5.00 to raise $7.65 million.)
(Background: Gamer Pakistan Inc. filed its S-1 on July 12, 2023, and disclosed terms for its IPO: 1.7 million shares at $4.00 to $5.00 to raise $8.0 million. Selling stockholders are offering up to 2.9 million shares (2,290,429 shares) of common stock. The company will NOT receive any proceeds from the sale of the selling stockholders’ shares.)
Maison Solutions MSS, Joseph Stone Capital LLC, 3.0M, $4.00-4.00, $12.0 mil, 10/2/2023 Week of
Maison Solutions is a specialty Asian grocery retailer. (Incorporated in Delaware)
We are a fast-growing specialty grocery retailer offering traditional Asian food and merchandise to modern U.S. consumers, in particular to members of Asian-American communities. We are committed to providing Asian fresh produce, meat, seafood, and other daily necessities in a manner that caters to traditional Asian-American family values and cultural norms, while also accounting for the new and faster-paced lifestyle of younger generations and the diverse makeup of the communities in which we operate. To achieve this, we are developing a center-satellite stores network.
Our merchandise includes fresh and unique produce, meats, seafood and other groceries which are staples of traditional Asian cuisine and which are not commonly found in mainstream supermarkets, including a variety of Asian vegetables and fruits such as Chinese broccoli, bitter melon, winter gourd, Shanghai baby bok choy, longan and lychee; a variety of live seafood such as shrimp, clams, lobster, geoduck, and Alaska king crab, and Chinese specialty products like soy sauce, sesame oil, oyster sauce, bean sprouts, Sriracha, tofu, noodles and dried fish. With an in-house logistics team and strong relationships with local and regional farms, we are capable of offering high-quality specialty perishables at competitive prices.
Our multi-pronged approach allows us to provide customers with multiple shopping channels, including integrated online and offline operations, according to Maison Solutions Inc.’s website.
“Customers can place orders on our mobile app “FreshDeal24,” or through our WeChat Applet “Good Luck to Home” for either home delivery or in-store pickup,” the company’s website says.
*Note: Revenue and net income are for the 12 months that ended April 30, 2023.
(Note: Maison Solutions Inc. cut its IPO’s size by 25 percent to 3.0 million shares – down from 3.75 million shares – and kept the assumed IPO price at $4.00 – to raise $12.0 million, according to a post-effective amendment dated Aug. 1, 2023. In that same SEC filing, the company updated its financial statements for the year that ended April 30, 2023. Maison Solutions Inc. filed an S-1/A dated June 2, 2023, in which it increased the size of its IPO – to 3.75 million shares – up from 3.0 million shares – and kept the assumed IPO price at $4.00 – to raise $15 million. Under the new terms, Maison Solutions will raise 25 percent more than the $12 million in estimated IPO proceeds under its original terms. Background: Maison Solutions filed its S-1 on May 22, 2023, after submitting confidential IPO documents to the SEC on Dec. 23, 2022.)
Primech Holdings Ltd. PMEC, Spartan Capital Securities, 3.1M Shares, $4.00-5.00, $13.7 mil, 10/3/2023 Tuesday
We are an established technology-driven facilities services provider in the public and private sectors operating mainly in Singapore. Our mission is to support businesses by improving lives and strengthening communities through our business practices and ethics. We compete primarily in Singapore, with a small portion of our operations in Malaysia.
We provide general cleaning services and maintenance of public and private facilities, such as airports, conservancy areas (i.e., the public areas, refuse disposal areas, parks and carparks of public housing units), common areas of hotels, educational institutions, public roads, residential spaces, commercial buildings, office facilities, industrial areas, retail stores and healthcare facilities; housekeeping services; specialized cleaning services, such as marble polishing services; building façade cleaning services and clean room sanitation services, and waste management and pest control services.
We derive the majority of our revenue from the provision of facilities services, which accounted for approximately $36.9 million or 77.3% of our revenue in FY 2020 and approximately $40.6 million or 84.4% of our revenue in FY 2021. For the six months ended Sept. 30, 2020, and Sept. 30, 2021, we generated approximately $18.7 million or 82.6% of our revenue and approximately $22.9 million or 87.2% of our revenue, respectively, from the provision of facilities services.
**Note: For the fiscal year ended March 31, 2023: Net loss of $2.55 million on revenue of $69.03 million.
**Note: For the fiscal year ended March 31, 2022: Net loss of $1.26 million on revenue of $54.44 million.
**Note: For the fiscal year ended March 31, 2021: Net income of $5.36 million on revenue of $48.09 million.
**Note: For the six months ended Sept. 30, 2022: Net loss of $1.85 million on revenue of $32.7 million.
**Note: For the six months ended Sept. 30, 2021: Net income of $0.41 million – $405,312 – on revenue of $26.24 million.
(Note: Primech Holdings Ltd. slightly increased the size of its IPO to 3.05 million shares – up from 3.0 million shares – and kept the price range at $4.00 to $5.00 – to raise $13.73 million, according to an F-1/A filing dated Sept. 1, 2023. Primech Holdings Ltd. cut its IPO’s size to 3.0 million shares – down from 5.0 million shares – and kept the price range at $4.00 to $5.00 – to raise $13.5 million, according to an F-1/A filing dated Aug.18,2023. In that same F-1/A filing dated Aug. 18, 2023, the company removed Pacific Century Securities as the leading joint book-runner and replaced the firm with Spartan Capital Securities as its sole book-runner.)
(Background: Primech Holdings Ltd. added Spartan Capital Securities as a joint book-runner, teaming with Pacific Century Securities, in an F-1/A filing dated June 16, 2022. Primech Holdings ltd. filed terms for its IPO – 5 million shares at $4 to $5 each to raise $22.5 million – in its F-1/A filing dated May 31, 2022. The company also changed its sole book-runner to Pacific Century Securities, LLC, according to this filing; its previous sole book-runner was Tiger Brokers. Primech Holdings filed its F-1 (prospectus) on March 31, 2022. The company had filed confidentially to go public on Nov. 24, 2021.)
Globavend Holdings Ltd. GVH, R.F. Lafferty & Co., 1.9M Shares, $4.00-5.00, $8.4 mil, 10/4/2023 Wednesday
We are a holding company incorporated in the Cayman Islands with operations conducted by our Hong Kong subsidiary, Globavend HK. Since June 2023, we have established our principal executive office in Perth, Australia. (Incorporated in the Cayman Islands)
Founded in 2016, we are emerging e-commerce logistics provider providing end-to-end logistics solution in Hong Kong, Australia and New Zealand. Our business spans Hong Kong, 4 cities in Australia and in New Zealand through our own business presence and the presence of our service providers. Our customers are primarily enterprise customers, being e-commerce merchants, or operators of e-commerce platforms, in providing business-to-consumer (B2C) transactions.
As an e-commerce logistics provider, we provide integrated cross-border logistics services from Hong Kong to Australia and New Zealand, where we provide customers with a one-stop solution, from pre-carriage parcel drop off to parcel consolidation, air-freight forwarding, customs clearance, on-carriage parcel transportation and delivery. We rely our own proprietary all-in-one shipping solution, which has been or can be connected to the customer’s own IT systems (such as enterprise resource planning (ERP) systems, customer relationship management (CRM) systems, booking management systems or point of sale (POS) systems) on one end and the transportation management systems (TMS) of our ground transportation service providers on the other end, to facilitate effective logistics management.
(Globavend Holdings Ltd. filed its F-1 and disclosed terms for its IPO on Aug. 23, 2023.)
Emerging Market ETF Launches
Climate change and ESG are clearly the latest flavours of the month for most new ETFs. Nevertheless, here are some new frontier and emerging market focused ETFs:
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 - Value + growth stocks
05/11/2023 - JPMorgan BetaBuilders Emerging Markets Equity ETF BBEM - 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:
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 some ETF lists are still being updated as of Summer 2022).
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 (October 2, 2023) was also published on our website under the Newsletter category.