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Emerging Market Links + The Week Ahead (October 23, 2023)
Chinese state-owned firms do buybacks, regs tighten for short-selling, private biz borrowing up in Shenzhen, Mexico railroad to rival Panama canal, EM stock pics & the week ahead for emerging markets.
A mix batch of news out of China as Chinese state-owned companies are buying back shares while regulators tighten the rules for short selling to try and support the market as mutual fund liquidations are set to hit five-year highs. A three Child policy is still failing to bear children, but borrowing has reportedly surged among private Shenzhen enterprises - meaning some areas of the economy or country are still growing.
Finally and on the election front, it looks like Poland will be more welded to Brussels while Milei (the libertarian and “unapproved” candidate) will have a runoff with a Leftist Peronist candidate on November 19th. It will be interesting to see IF Argentina ends up with more of the same failed policies or something different - and perhaps some hope for a turnaround.
$ = behind a paywall
🇨🇴 Global X MSCI Colombia ETF Holdings (September 2023) Partially $
Colombia stock picks that are the holdings of the Global X MSCI Colombia ETF (NYSEARCA: GXG) plus some economic data. Note that Colombia is far removed from most big geopolitical conflicts.
🇰🇷 Mirae Asset Securities' Korean Stock Picks (September 2023) Partially $
OCI Holdings, KEPCO, Classys, Ilooda Co Ltd, Chong Kun Dang Pharmaceutical Corp, SK Telecom and Iljin HySolus Co Ltd plus the Korean IPO market has been hot lately.
📰🔬 Emerging Market Stock Picks / Stock Research
$ = behind a paywall / 🗃️ = Archived article
🇨🇳 Our thoughts on the upcoming J&T Express IPO (Momentum Works)
Note: Draft IPO prospectus
We have discussed J&T Express’s background and journey extensively in our earlier report Who is J&T, and shared some recent highlights in our complimentary report: J&T Express: highlights of draft IPO prospectus.
The public equity market in Hong Kong (and many other bourses) remains very challenging;
Undoubtedly the leading last mile logistics company in Southeast Asia, J&T faces pressure including Shopee’s in-house logistics, as well as the price war waged by Flash Express in Thailand;
Some sharp short-term pain for J&T in Indonesia because of the TikTok Shop ban, as J&T was (profitably) carrying the majority of the TikTok Shop’s millions of daily orders;
This ecommerce volume lost by TikTok Shop will eventually recover (but not very fast) - we explain the factors in the article;
China’s competitive landscape is trickier but the logic is probably similar;
J&T’s franchise model is worth studying.
🇨🇳 Cainiao Smart Logistics IPO: The Bull Case (SmartKarma) $
According to CIC, Cainiao is the world’s leading cross-border e-commerce logistics company regarding parcel volume in 2022, with one of the world’s largest logistics networks in terms of geographic reach.
The bull case rests on market share gains in China, improving performance of the largest business (international logistics), and rising gross and operating margins.
Smithfield could list its shares as early as next year, the WSJ reported, adding that the deliberations are ongoing and the timing could change.
The U.S. meat industry has struggled with declining profit and reduced demand from consumers squeezed by inflation and higher interest rates. Amid spiraling feed and labor costs, meat companies have struggled to predict demand for their products.
🇨🇳 Forget about tech. Shiyue Daotian cooks up hot IPO with premium rice (The Bamboo Works)
Shiyue Daotian has sizzled in the week since its trading debut, as investors bet on its position as one of China’s top premium rice sellers
The company’s pre-IPO backers include such big names as HongShan and Mubadala Capital, owned by Abu Dhabi’s sovereign wealth fund
Though the growth was at the expense of slightly higher overall discounts of 25-30% off during the quarter.
I prefer ANTA Sports Products (HKG: 2020 / FRA: AS7 / OTCMKTS: ANPDY / OTCMKTS: ANPDF) over Xtep given higher visibility in Anta's bottom line, as Xtep's growth continues to be of lesser quality than Anta's.
The company trades at a 7% dividend yield, backed by strong free cash flow.
The stock is not only a yield play, but also a call option on the recovery of Nike and Adidas' retail performance in China.
China’s big-box supermarkets are running into trouble.
Carrefour China, once the country’s largest foreign supermarket chain with nearly 260 stores in 2017, had fewer than 150 stores remaining at the end of last year. In Beijing, it is currently down to one of its last outlets, with shoppers taking to social media last month to post photos of rows of empty shelves and refrigerators.
Financial trouble is also reflected in the first-half results of China’s 13 publicly traded supermarket operators. Five of them reported year-on-year losses while three posted revenue declines despite making a profit, according to their earnings reports.
🇨🇳 Asian Dividend Gems: Giordano International (SmartKarma) $
Giordano International (HKG: 0709 / FRA: GIO / OTCMKTS: GRDZF), one of the most recognizable apparel business in Asia, has been improving its operations materially with solid growth in sales and profits.
Giordano provides very high dividend yield and payout. The consensus expects DPS of HKD 0.28 for Giordano in 2023, which would suggest a dividend yield of 12.8%.
We like the company's high dividend yield, loyal customer base, and attractive valuations. It is trading at EV/EBITDA of 3.6x and P/B of 1.5x.
🇨🇳 Canaan: Time To Buy Shovels? (Seeking Alpha) $
The company has a large glut of inventory and is moving units at deep discounts.
One of the company's largest peers, Bitmain, has reportedly had difficulty paying its employees. This could theoretically be an opportunity for Canaan.
I still think it's slightly early to go long CAN before a post-halving rebound.
In this insight, we summarized New World Development Company (HKG: 0017 / FRA: NWDA / OTCMKTS: NWWDF)’s FY2023 results. We think the gearing and balance sheet, the biggest concern that market has, has been clearly addressed
NWD has announced disposal of its stake in NWS, and will have more corporate actions to come. The dividend expectation is reset
We view most of the negatives are priced in at current valuation. NWD is much better than a Chinese developer, and should not be trading at 0.19x PB
Gemdale Corp. (SHA: 600383)’s shares and bonds plunged after the Chinese property developer’s chairman resigned, intensifying investor concerns about its financial sustainability in the face of more than 10 billion yuan ($1.37 billion) of maturing debt.
Chairman Ling Ke stepped down after 25 years, citing health issues, the Shanghai-traded company said Tuesday in a filing. The board accepted Ling’s resignation and named President Huang Juncan to assume his duties, the company said.
🇭🇰 Leaven Partners - Playmates Toys: Once A Screaming Deal (Seeking Alpha) $
Despite the challenges, Playmates has diversified its licensing agreements and has a history of treating shareholders fairly.
The company has returned to profitability, doubling revenue in 2021, and recently released new toys based on the Teenage Mutant Ninja Turtles franchise.
The agreement stipulates that Douzone Bizon will develop global SaaS through AWS support and enter overseas markets.
We believe shares of Douzone Bizon have been oversold. Valuations have become more attractive and its cooperation with AWS is also likely to improve the company's overseas sales and profits.
🇰🇷 Bluemtec IPO Preview (SmartKarma) $
Bluemtec is getting ready to complete its IPO in KOSDAQ in the next several weeks. Bluemtec operates the number one pharmaceutical e-commerce platform in Korea.
The company is offering 1.4 million shares in this IPO. The IPO price range is from 15,000 won to 19,000 won.
The company sales and gross profit growth increased impressively in the past several years. The company's sales increased at a CAGR of 60.5% from 2020 to 2022.
Maybank Investment Bank Bhd is cutting by 4 percent and 5 percent respectively, its forecast for 2024 and 2025 earnings at Genting Malaysia (KLSE: GENM), operator of Resorts World Genting (pictured), the only licensed casino complex in Malaysia. That is due to a 2 percentage point rise in service tax in that nation, it said.
“The increase in service tax rate… is effectively a ‘gaming tax’ hike for Resorts World Genting,” said analyst Samuel Yin Shao Yang in a Thursday memo.
Maybank noted that based on a Malaysian budget proposal tabled on October 13, the country’s service tax rate was – from March 1 next year – to be raised to 8 percent, from 6 percent currently.
“Other catalysts” for Genting Malaysia investors, were if the group succeeded in “securing a full casino licence in New York City and writing back its Mashpee Wampanoag investment,” stated the analyst.
🇲🇾 Hartalega update (HART MK) (Asian Century Stocks) $
Hartalega (KLSE: HARTA / OTCMKTS: HHBHF) is one of Malaysia’s largest producers of disposable gloves. They’re primarily sold to the North American and European healthcare industries but also labs, food & beverage companies, etc.
The glove industry enjoys secular demand growth of about 10% per year. But since the outbreak of COVID-19, the industry has experienced a boom-bust period that has yet to end. The current cycle was made worse because glove makers accumulated cash during the pandemic and used it to expand capacity.
Today, the industry suffers from oversupply. Average selling prices are at rock-bottom levels, and customer inventory remains higher than normal.
There are now early signs that average selling prices are bottoming out. Some customers are starting to restock their inventories. In my view, it will most likely take about 2-3 years for supply & demand to return to balance.
🇮🇳 MakeMyTrip: Lofty Valuation And Insider Selling (Seeking Alpha) $
The Indian travel industry has secular tailwinds, and we remain positive on the growth story which is further likely to be boosted by the ongoing Cricket World Cup.
We initiate with a Sell as we believe the lofty valuations of the Street's exuberance do not comprehend the downside risks accurately.
Insiders have been selling MMYT stock aggressively since its peak in August, totaling $43 million in sales over the past three months.
Customs records appear to show conglomerate used offshore intermediaries to inflate import prices
Strong US and Europe beat expectations and help offset issues with Asia travel retail and luxury division
🇭🇺 Hungary Investment Trip - What We Learned (Undervalued Shares)
The Budapest Stock Exchange has 151 listed companies. If you ask anyone about Hungarian stocks, OTP Bank (BUD: OTPB / FRA: OTP / OTCMKTS: OTPBF) (ISIN HU0000061726, BUD:OTP) is one of the two they are likely to mention first. Hungary's leading bank makes up 30% of the Hungarian market's entire market cap.
ANY Security Printing Company / ANY Biztonsági Nyomda Nyrt. (BUD: ANY / LON: 0JC5) (ISIN HU0000093257, BUD:ANY) once was the "State Printing Company of Hungary". However, it was privatised a long time ago and has since transformed its product line from traditional printing products to secure identification documents on paper, out of plastic, and digitally.
Erste Group Bank AG (VIE: EBS / FRA: EBO / EBOR / ETR: EBO / OTCMKTS: EBKDY) (ISIN AT0000652011, VIE:EBS) is the opposite to ANY, inasmuch as it's a highly liquid stock of a company that has huge brand name recognition. In Central and Eastern Europe, "Erste" is one of the top brand names in banking (despite the fact that only German speakers will realise the name stands for "First").
MOL Magyar Olaj- és Gázipari Nyilvánosan Muködo Részvénytársaság (BSE: MOL / FRA: MOGB / MOGG / OTCMKTS: MGYOY) (ISIN HU0000153937, BUD:MOL) is the other obvious stock to pick when seeking exposure to the Hungarian market, given that it single-handedly contributes 20% of the market cap of Hungary's publicly listed company sector (see also my recent Weekly Dispatch on Hungary for a more extensive assessment of the gargantuan oil and gas company).
🇰🇾 Consolidated Water: Good Prospects Likely Baked In (Seeking Alpha) $
1H 2023: solid performance with double-digit revenue and income growth.
Long runway for growth driven by strategic expansion into new desalination markets, and acquisitions.
Strategic expansion to the U.S. opens significant growth potential. Competitive advantages due to vertical integration and strong presence in drought-hit U.S. West Coast position the company well.
Risks include desalination adoption hampered by environmental concerns and material deterioration in financial performance due to the Cayman Islands license restructure.
🇵🇦 Is Copa Airlines Still A Top Growth Stock With Big Potential? (Seeking Alpha) $
Copa Holdings stock has declined since July, in line with other airline stocks.
The company redeemed its 4.50% Convertible Senior Notes due 2025, resulting in minimal dilution for existing shareholders.
Despite concerns about unit revenues and oil prices, Copa Holdings is still considered a strong buy with significant upside potential.
🇨🇦 🇵🇦 First Quantum Minerals - Copper Panama approval triggering social unrest (Calvin's thoughts) $
Panama is bracing for major protests over the coming weeks as protestors set to block dozens of roads across the country
Reuters reported on Friday that Panama’s President, Nito Cortizo, just gave final approval on a new long term contract for the copper mine in Cocle Province operated by Canadian company First Quantum (TSE: FM / FRA: IZ1 / OTCMKTS: FQVLF).
However, there are still dragons. In this post I’ll provide some on the ground intel and analysis of the company’s valuation and balance sheet. While I see the deal as financially beneficial to Panama, there is major push back.
As the Panama mine makes up more than half of First Quantum’s revenue, it’s good to understand the significant risk from social tensions. I’ve been involved in mining deals in the past, and when people get angry enough, they sometimes blow up.
🇧🇷 Banco do Brasil: Outperforming And Reasonably Valued (Seeking Alpha) $
There are multiple risks to consider, but non-performing loans look well-covered and the bank's loan book skews heavily to agribusiness, with the Brazilian agriculture sector generally doing well right now.
Risks notwithstanding, on multiple measures these shares look cheap.
🇧🇷 Sendas Distribuidora: A Pre-Q3 Buy Opportunity (Seeking Alpha) $
Sendas Distribuidora S.A. (NYSE: ASAI) or Assaí Atacadista is about to release its Q3 results amid challenges from food disinflation and high-interest rates, but it has managed them well compared to peers.
The company is expected to benefit from improving economic conditions, with lower interest rates on the horizon, potentially leading to a 41% upside.
With its resilience and firm performance in the Brazilian cash and carry sector, Assaí stock presents an attractive investment opportunity.
🇧🇷 BRF: Uncertainty Persists Despite Commodity Cycle Advantage (Seeking Alpha) $
BRF Brasil Foods SA (NYSE: BRFS / BVMF: BRFS3) has outperformed the Brazilian stock market in 2023, rebounding from challenges posed by high global corn and soybean prices, which pressured its margins.
Second-half performance likely to benefit from lower commodity prices, improving margins, and supporting debt reduction.
Marfrig Global Foods Sa (BVMF: MRFG3 / FRA: MGP1 / OTCMKTS: MRRTY)'s increased stake bolsters BRF's shares, but the elevated valuation prompts me to explore alternative options with more favorable pricing.
📰🔬 Further Suggested Reading
$ = behind a paywall / 🗃️ = Archived article
About 50 Chinese state-owned companies are trying to bolster investor confidence by rolling out share buybacks or plans by big stockholders to expand their holdings after a series of other measures to prop up the stock market fell short.
China’s benchmark CSI 300 Index has dropped more than 6% this year, despite supportive government policies that included halving the stamp duty on stock trades and lowering the minimum ratio for stock purchases through margin financing in August. The index gained 0.35% Tuesday.
🇨🇳 China tightens rules for short selling to prop up stocks (Caixin) $
Stock investors on the Chinese mainland will have to set aside more in collateral when they borrow securities to sell, according to new rules announced by the China Securities Regulatory Commission Saturday.
The tightened rules on securities borrowing — an important tool for short selling — raised the minimum margin ratio for borrowers to 80% from 50%. For privately offered securities investment funds, the minimum ratio will be 100%. These changes go into effect on Oct. 30.
Mutual funds in China are getting liquidated at an increasingly fast pace amid fierce competition and a slump in the stock market.
As of Sunday, 329 mutual funds had been closed this year, putting the annual total of liquidations on track to surpass that of last year, according to Caixin calculations based on data compiled by Wind Information Co. Ltd. By contrast, for 2022 as a whole, 370 funds were closed.
At the current pace, 2023 looks set to mark a five-year high for fund closures.
🇨🇳 Borrowing surges among private Shenzhen enterprises (Caixin) $
Private companies in Shenzhen borrowed more in September, signaling reviving business confidence in southern China’s tech hub as effects of government’s supportive policies take hold.
As of the end of September, loans taken out by privately owned companies in Shenzhen totaled 2.97 trillion yuan ($407 billion), up 11.6% from the same time a year earlier, according to the Shenzhen branch of the People’s Bank of China (PBOC).
🇨🇳 China’s three-child policy isn’t leading to a surge in births, data shows (The China Project)
There's a new sense of urgency to China's looming demographic crisis
China’s three-child policy, introduced two years ago, is not boosting the country’s flagging fertility rate. Newly released data paints a bleak picture of China’s demographic woes, and has prompted calls from population experts for the government to beef up incentives to encourage childbirth.
But the most enthusiastic buyers of Indian stocks are Indians themselves. One form this takes is retail investors swapping stock tips in WhatsApp groups and driving hyped-up small-cap stocks to ridiculous valuations. But another is the steady rise of systematic investment plans, which put a preset amount of money from your bank account into the stock market. A gradual increase in these schemes has driven domestic equity flows for the past few years (in green, below; chart from Macquarie):
A stable base of domestic equity buyers is good for global investors. Some markets, like China, suffer from flighty retail investors. Others, like Japan, just have too few of them; households are in the aggregate lightly allocated to stocks.
If there is a drawback for India investors, it is that the story has become too popular. The stocks look expensive. At a price/earnings ratio of 23, the Sensex is near the top of its historical range and at a premium to the US, world and EM indices.
🇮🇳 India Expected To Reject Russian Demand To Pay For Oil In Chinese Yuan (OilPrice.com)
Russia and its companies need Chinese currency as Russian trade has become much more reliant on China after Putin’s invasion of Ukraine and the sanctions on Russia. Moscow has a lot of Indian rupees, but it can’t spend them all while it needs yuan.
Russian oil companies have been asking lately for payments in yuan, but the Indian government – which owns 70% of the refiners in the world’s third-largest crude oil importer – will not agree to these demands, according to Bloomberg’s sources.
State-run Indian Oil Corporation Ltd (NSE: IOC / BOM: 530965) has settled purchases in yuan previously, while Bharat Petroleum Corporation Ltd (NSE: BPCL / BOM: 500547) and Hindustan Petroleum (NSE: HINDPETRO / BOM: 500104) have not yet resorted to the Chinese currency, though direct Russian suppliers have requested this.
🇦🇷 Massa overturns odds in Argentina election, will face Milei in November run-off (Buenos Aires Times)
With 76% of polling stations reporting, Sergio Massa leads the race for the Presidency with 35.9% of the vote; Javier Milei set to join him in run-off after taking 30.5%; Bullrich all but out with just 23%.
To woo voters, Massa went on a pre-election spending spree, slashing income tax for much of the population in a move analysts say will only make the country's fragile financial situation worse.
🇻🇪 Venezuela's bonds rally after US trading ban lifted (Reuters)
Prices more than doubled for some sovereign bonds, with a 2018 Venezuela issue up 8.75 cents at 17 cents. A 2020 note of state oil company PDVSA was up 13 cents at 66.5 cents.
Venezuela and PDVSA, which have more than $60 billion in debt, stopped paying bondholders at the end of 2017 and several creditors filed lawsuits in court.
Small funds and investors outside the United States had looked to increase their exposure to Venezuelan bonds on the expectation of debt renegotiations.
The $2.8bn Tehuantepec isthmus corridor will feature a 308km railway between renovated ports at Salina Cruz in Oaxaca state and Coatzacoalcos in Veracruz, and industrial parks close to transport hubs, including airports, along the route. Trains have already traversed the route on test runs ahead of its opening in December.
📅 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):
📅 Emerging Market IPO Calendar/Pipeline
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 an emerging e-commerce logistics provider providing end-to-end logistics solutions 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.)
We are a blank check company focused on the Asia Pacific region, excluding China, and the clean energy sector. Each unit consists of one share of stock and one warrant redeemable for one share of stock. (Incorporated in the Cayman Islands)
While we may pursue a target in any industry, section or geography, we intend to focus our search for a target business in Asia Pacific, excluding China, (with emphasis on Canada and Australia) for companies engaged in the clean energy industry, concentrating on the utilization of “clean coal” or other evolving segments in the clean energy ecosystem, particularly the use of carbon, hydrogen and renewable energy. Other areas may include energy storage, distributed energy, zero-emission transportation, carbon utilization, low or carbon-free industrial applications and sustainable manufacturing.
We believe that clean energy and sustainability solutions are revolutionizing many traditional industries and creating numerous investment opportunities which are driven by important long-term global trends, such as the cost of carbon emissions, regulatory incentive programs, and consumers’ increasing value placed on clean energy products and services, in addition to advancements in technology providing for more cost-effective solutions and alternatives to fossil fuels. We believe that the regulatory frameworks incentivizing the adoption of sustainable practices and technologies will become increasingly favorable to the sectors that we are targeting. These trends provide long-term benefits for companies that develop and distribute services and products that take part of an integrated approach to the continued decarbonization of the economy.
We intend to target the growth-oriented subsectors of the clean and sustainable energy industry that present particularly attractive investment opportunities. We do not intend to acquire early-stage start-up companies, companies with speculative business plans or companies that are excessively leveraged. We are not, however, required to complete our initial business combination with a clean and sustainable energy business and, as a result, we may pursue a business combination beyond that sector and scope. We will seek to acquire high-quality businesses that can generate attractive, risk-adjusted returns for shareholders.
We believe our management team is uniquely positioned to source and evaluate deals globally, with strong relationships in Asia Pacific (and particularly in Canada and Australia), which may offer attractive growth prospects with advantageous valuation multiples. We believe that our expertise and experience in major worldwide markets, including Asia Pacific, give us a robust pool of targets and increasing the possibility to maximize returns. In addition, our management team has extensive expertise in the evolution of clean energy, especially in Asia Pacific, which will enable us to better evaluate and source target companies. Our management team is also experienced in executing complex financial structures for large scale projects in the energy industry in Asia Pacific, Canada and Australia which will give us access to leaders in the energy industry and the ability to facilitate future energy projects. We believe this approach, as well as our management team’s recognized track record of completing acquisitions across a variety of subsectors within the clean energy industry will provide meaningful opportunities to drive value creation for shareholders.
(Note: Prospect Energy Holdings Corp. slashed its SPAC IPO by 75 percent to 7.5 million units – down from 30.0 million units – at $10.00 each – to raise $75.0 million in an S-1/A dated Aug. 24, 2023. The S-1 was filed May 3, 2023.)
We are a leading digital transformation enabler in the small and medium enterprise, or the SME segment of the e-commerce enablement and digital optimizing services market in Singapore. We offer business and technology solutions which are designed to optimize our clients’ experiences with their customers by driving digital adoption and self-service. (Incorporated in the Cayman Islands)
We started our journey in 2014 as a full-service information technology company headquartered in Singapore. Since then, we recognized and captured the opportunities arising from the global fast-growing digital adoption trend in various industries and rapidly developed as a leading digital transformation enabler in the SME segment of e-commerce enablement and digital optimizing services market in Singapore. According to the Frost & Sullivan Report, among the Singapore-based companies who have been approved to participate in the SMEs Go Digital program led by Infocomm Media Development Authority, a statutory board under the Singapore Ministry of Communications and Information of the Republic of Singapore, we ranked fourth, contributing to 1.5% of the SME segment of the e-commerce enablement and digital optimizing services market in Singapore in 2022.
The SMEs Go Digital program is to provide SMEs in Singapore with a variety of digital solutions and services, such as e-commerce platforms, digital marketing tools, and data analytics software. The program also offers government grants to eligible SMEs to subsidize the costs, driving digital adoptions.
Our clients and prospective clients are faced with transformative business opportunities due to advances in software and computing technology. These organizations are dealing with the challenge of having to reinvent their core products, services, processes and systems rapidly and position themselves as “digitally enabled.” The journey to the digital future requires not just an understanding of new technologies and new ways of working, but a deep appreciation of existing technology landscapes, business processes and practices. We have been a navigator for our clients as they ideate, plan and execute on their journey to a digital future through our solutions and services, comprising:
• Business consulting: We support clients to define and deliver technology-enabled transformations of their business. Equipped with the complete value chain approach, our suite of offerings ranges from brand proposition, multi-channel commerce and digital marketing to improve customer experience and increase customer acquisition, to insights and real-time predictive analysis for efficient decision-making and optimizing processes.
• IT customization: We offer solutions and services to plan, design, operate, optimize and transform business processes. We support clients to get the best value from technology by developing an IT strategy, optimizing applications and infrastructure, implementing IT operating models, and governing their technical architecture for reliability and security.
We provide customized solutions and services that address the specific needs of clients in our strategic vertical markets. Our primary vertical industries include e-commerce, food and beverage, fintech, healthcare and service, wholesale and retail that are fast-growing and have increasing level of digitalization potentials. Our configurable technology integrates seamlessly into our clients’ systems, empowering our clients to manage, improve their businesses and to win. As of June 30, 2023, we served over 200 clients across our core verticals such as food and beverage, wholesale and retail.
Digital technology continues to impact our world through its transformative capability and pervasive impact. Our management believes we have a successful track record of applying our proprietary technologies to respond to changing business needs and evolving client demands. Leveraging such experiences, we plan to launch a Web 3.0 e-commerce platform whereby customers and merchants can transact in a transparent and secure way, or Tridentity, in the fourth quarter of 2023.
**Note: Net loss and revenue figures are for the 12 months that ended June 30, 2023.
(Trident Digital Tech Holdings filed an F-1/A on Oct. 19, 2023, in which it disclosed the terms for its IPO: 1.875 million American Depositary Shares (ADS) at a price range of $8.00 to $10.00 to raise $16.88 million. Each ADS represents 10 ordinary shares, the prospectus says. Background: Trident Digital Tech Holdings filed its F-1 on Oct. 4, 2023.)
🏁 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:
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
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