Emerging Market Links + The Week Ahead (September 11, 2023)
Argentina may try dollarization, subsidies corrupt China, where will demand for commodities come from, SE Asia-Indonesia eCommerce shakeup, EM stock picks & the week ahead for emerging markets.
Argentina is having elections next month and the front runner wants to get rid of their central bank and dollarize the economy. Should that happen, Argentina would become the world’s largest dollarization experiment. It just might be a game changer that can finally turn the country around by not allowing the government to more or less rob its citizens (to fund itself…) through inflation and by confiscating dollars at artificially low exchange rates.
Argentines are also said to have as much as $371 billion in dollar assets with much of it outside the local financial system and literally under the mattresses (beyond the government’s reach…). If this money were to see the light of day, it could be used to invest in and revive the country’s economy.
There were also some interesting recent articles on how subsidies have corrupted China’s economy (e.g. EVs, etc.), another asking where demand for commodities will come from if China’s boom is over, and a report covering the massive reversal of money flows to China. There is also an interesting Twitter thread of a conversation with a Chinese cab driver that might teach you more about the Chinese property market and economy than you will learn from any economist, Western media, or so-called China expert.
Finally and last week, my neighborhood’s Taoist temple celebrated Taoist god 張公聖君 / Zhang Gong Sheng Jun's birthday over a couple of days with spirit mediums/sorcerers in trances with spirit whips (basically doing Taoist sorcery or Chinese magic…), bonfires of offerings, piercings-mutilations, and a procession. This year they were joined by devotees from a temple just over the border in Thailand for the final night of trances, piercings-mutilations, and a procession around the neighborhood. Its always fascinating to watch the activities over a couple of days every year (Some of the videos on my full playlist of videos that I have taken through the years are graphic!). WARNING!: Not everyone will want to watch the piercings-mutilations which my video below is set to start at:
Emerging Market Stock Pick Tear Sheets
$ = behind a paywall
moneycontrol India Stock of the Day (August 2023) Partially $
Includes: Mahanagar Gas, CSB Bank, Kajaria Ceramics, Fiem Industries, West Coast Paper Mills, Engineers India, Global Health Limited (Medanta), Karur Vysya Bank, Varun Beverages, Repco Home Finance, AXIS Bank, KEC International, NOCIL Ltd, Coromandel International, GAIL, Sona BLW Precision Forgings, Relaxo Footwears, CMS Info Systems, HIL Ltd, CIPLA Ltd and Dalmia Bharat
Emerging Market Stock Picks / Stock Research
$ = behind a paywall
What property crisis? KE Holdings extends profit streak (Bamboo Works)
The property platform has posted a third straight quarterly profit as the value of its real estate deals jumped 22% and income from home rentals surged
The company’s strategy to expand from core property sales into ancillary businesses such as renovations and rentals paid off again in the second quarter
KE Holdings (NYSE: BEKE) shares rallied after the results, lifted by an expanded share buyback plan and a special dividend
Baozun overhauls Gap stores, goes global with new Hunter deal (Bamboo Works)
The e-commerce company and Authentic Brands Group will form a joint venture to sell Hunter- branded products, best known for their Wellington boots, in Greater China and Southeast Asia
Baozun (NASDAQ: BZUN) announced a new joint venture with Authentic Brands Group, which will own rights to the Hunter brand of outdoor wear products in China and Southeast Asia
The e-commerce company also announced strong progress for its recently acquired Gap China stores, including plans to start expanding the chain following a major overhaul
Qudian unveils last-mile delivery transformation plan (Bamboo Works)
The former Chinese online consumer lender revealed it began trialing a new last-mile delivery service in Australia and New Zealand at the end of last year
Qudian (NYSE: QD) announced it will become a last-mile delivery specialist, with an initial focus on the Australian, New Zealand and U.S. markets
The company has officially ended its original online consumer lending business, and is in the process of winding down a short-lived prepared food service
Dingdong rings on its East China base to fatten profits (Bamboo Works)
The nation’s top online grocer is trying to boost profits by focusing on membership services and its base in affluent Shanghai, as well as adjacent Zhejiang and Jiangsu provinces
Dingdong (NYSE: DDL)’s revenue fell 27% in the second quarter as business returned to normal after a surge in the year-ago quarter at the height of China’s Covid lockdowns
The online grocer recorded strong growth for its membership services, and is retooling its geographic footprint to focus on its profitable base in Shanghai and surrounding areas
L’Occitane (973 HK): Underlying Fundamentals Intact (Smart Karma) $
L'Occitane International (HKG: 0973 / FRA: COC / OTCMKTS: LCCTF) [natural and organic ingredient-based cosmetics and well-being products retailer] announced after market close yesterday that the controlling shareholder has terminated the potential general offer.
Shares trade at a significant discount to global cosmetics peers and its own historical trading range, while brands' growth momentum remain intact.
Take advantage of any potential significant sell-down caused by the drop of the privatization attempt.
Nongfu Spring (9633 HK): Within Striking Distance (Smart Karma) $
Nongfu Spring (HKG: 9633 / OTCMKTS: NNFSF) [a Chinese bottled water and beverage company] has been trading flat since April 2021, even though earnings have grown 36% yoy in 2021, 19% yoy in 2022, and 25% yoy in 1H23.
We believe a forward PE lower than 35x would be a great entry price for Nongfu (37x currently), with upside potential in earnings from explosive growth in unsweetened tea.
A business that has a long run-way for growth, strong management, strengthening moat, great cash flow, and on top of that counter-cyclical, deserves a premium valuation anywhere in the world.
The Luckin x Moutai partnership that sold 5 mil cups of coffee in one day (Momentum Works)
Have you seen Luckin (OTCMKTS: LKNCY)’s new product flooding social media yesterday: an alcohol-flavored coffee in collaboration with Kweichow Moutai (SHA: 600519) (a renowned / staple Chinese liquor brand). [See: Kweichow Moutai (SHA: 600519): China's Communist Spirit and Most Valuable Company]
To give a price reference, a bottle of 500ml Moutai Flying Fairy 飞天茅台 2023 costs about US$430 (as of Aug 2023). On the other hand, the Luckin x Moutai latte, which is a latte “with a jolt of liquor”, is selling at ¥38 (US$ 5.20) or ¥19 (US$ 2.60) with vouchers.
Here are some lessons we can learn from this:
Lesson #1: Customer Loyalty Is Evolving - brands must compete not only on price and quality but also on factors like fun and novelty. Expect more innovations.
Lesson #2: You need a Standout Product - Moutai showcases the power of a memorable product - and the buzz it generates.
Lesson #3: Forge Win-Win Partnerships - Moutai is a premium brand, Luckin has >10k stores and direct (app) access to millions of consumers. They teamed up to target a younger audience.
[Luckin Coffee (LKNCY US, BUY, TP US$44) TP Change]: Moutai Latte Is Not Just a Blockbuster (Smart Karma) $
Luckin Coffee’s new blockbuster Moutai Latte achieved 5.42mn cup sold with RMB100mn GMV in first day.
We think Luckin Coffee had effectively achieved two goals through the new premium product: 1) de facto price lifting; 2) extend potential customer base and step into the monetization stage.
We raised our 2023 revenue and non-GAAP NI on Luckin by 1.6%/4.4%. We maintain the stock as BUY rating and raise TP by US$1 to US$44/ADS.
Tongcheng flies high on post-Covid domestic travel boom (Bamboo Works)
Domestic tourism is one of the few bright spots in a Chinese economy beset with deflationary pressures, making a winner of China’s second largest online travel agent
Tongcheng Travel Holdings (HKG: 0780)’s revenue more than doubled in the second quarter, as domestic travel in China bounced back with the end of Covid restrictions
The company’s strengths in lower-tier cities and exclusive position on Tencent’s WeChat have given it an edge over more globally-focused rivals like Trip.com (HKG: 9961 / NASDAQ: TCOM) Group and Fosun Tourism (HKG: 1992)
Hot pot dining boom helps Jiumaojiu serve up profit feast (Bamboo Works)
The restaurant chain selling Chinese sauerkraut fish and hot pot dishes has rebounded from the pandemic with a nearly fourfold jump in first-half profits
Jiumaojiu International Holdings (HKG: 9922 / FRA: 3YU)’s revenues surged more than 50% in the first half from the same period a year earlier as Chinese diners crowded back into restaurants
The company’s Song Hot Pot brand became the latest growth engine for the restaurant group after its revenues quadrupled
CK Hutchison update (1 HK) (Asian Century Stocks) $
In January 2022, I published a post on Hong Kong conglomerate CK Hutchison (HKG: 0001 / FRA: 2CKA / OTCMKTS: CKHUY / CKHUF). I argued that the company is professionally run but suffered from weak foot traffic in its retail stores during COVID-19 and low energy prices.
Since then, CK Hutchison’s retail traffic has recovered nicely, and energy prices are up. But earnings have still come down. Blame a weak Euro, high inflation and high-interest rates. All are related to Fed policy, in my view.
The company is now transitioning towards a more asset-light company, selling European telecom assets and spending at least a portion of the proceeds on share buybacks. That could help the return on equity rise from the current ~7% level, which explains why the stock trades at 0.3x book.
A commonly cited concern about CCP interference is probably exaggerated given 1) CK Hutchison’s incorporation in the Cayman Islands, 2) only 13% exposure to Hong Kong and mainland China, and 3) little evidence of any backlash so far.
SJM Holdings Ltd: H1 Results Foretell Recovery Momentum for the Stock Beginning to Build (Smart Karma) $
See our Macau ADRs list.
SJM Holdings (HKG: 0880 / FRA: 3MG1 / KRX: 025530 / OTCMKTS: SJMHF / SJMHY) has lagged other sector peers in price recovery since the end of the Beijing zero covid ban policy last January 6th.
The company last year underwent a significant reordering of its business model which is not yet reflected in its ongoing momentum towards regaining positive EBITDA.
Trading volume indicates ongoing interest but stock in our view has not yet reflected the continuation of positive sales growth leading to EBIDA turning positive in forward quarters.
Shinsung ST IPO Preview (Smart Karma) $
Note: Established in 2004, Shinsung ST Co., Ltd. began to do its business as a manufacturer of press parts in the IT and automobile industries. Expanding its business to the core parts of secondary batteries, the company supplies innovative products in diverse areas.
The IPO price range of Shinsung ST is from 22,000 won to 25,000 won and the expected IPO offering amount is from 44 billion won to 50 billion won.
Shinsung ST produces busbars that connect currents of electric components in secondary battery batteries for EVs and ESSs, and module cases that protect battery cells from external shocks.
The total order backlog of the company's products reached 1.5 trillion won at the end of 2022. Order backlog ratio is 14x, which is very high.
Shinsung ST IPO Valuation Analysis (Smart Karma) $
Our base case valuation is implied price per share of 51,050 won, which is 104% higher than the high end of the IPO price range of 25,000 won.
We estimate Shinsung ST to generate sales of 133.9 billion won (up 25.7% YoY) and operating profit of 15.4 billion won (up 94.6% YoY) in 2023.
Our valuation sensitivity analysis suggests an IPO price range of 41,351 won to 61,771 won per share.
Hana Micron: Semiconductor Chips Packaging Company With Solid Fundamentals and FOMO Trading (Smart Karma) $
Due to the sharp appreciation of Hana Micron (KOSDAQ: 067310)'s share price this year, its valuation discount to companies such as HPSP has narrowed substantially.
Samsung Electronics is one of the major customers of Hana Micron. Samsung recently reported that it has successfully secured the right to supply advanced memory chips to NVIDIA.
We do not believe Hana Micron's valuations are attractive right now. Rather than chasing after its shares, we would rather wait for its shares to retreat (20-30%) a bit.
EuBiologics (206650 KS): Solid 1H23 Performance; Oral Cholera Vaccine on A Consistent Growth Path (Smart Karma) $
Eubiologics (KOSDAQ: 206650) recorded 24% YoY revenue growth to KRW31B in 1H23, due to strong export demand of oral cholera vaccine. Operating profit jumped 6x, while net profit surged 3x.
In May 2023, Eubiologics and its partner have launched Euvichol-Plus in India. With a huge unmet need, Euvichol, an effective cholera vaccine is expected to see strong uptrend in India.
Eubiologics has signed a technology transfer agreement with DEK Vaccines to enable the domestic production and supply of the cholera vaccine in Ghana. This opens additional revenue stream for Eubiologics.
China-US Chip War: How Singapore Semiconductor Stocks Are Affected (The Smart Investor)
Within Singapore, there are four major semiconductor stocks listed on the Singapore Exchange (SGX: S68).
These include UMS Holdings (SGX: 558), Venture Corporation (SGX: V03 / FRA: VEM / OTCMKTS: VEMLF), AEM Holdings (SGX: AWX), and Grand Venture Technology (SGX: JLB).
Each of them serves a slightly different market.
We take a closer look at their respective areas of focus to determine whether they stand to gain from the changes in the industry’s landscape, namely from the geographic and industry standpoints.
Should Singapore Banks Be Wary? Trust Bank Attracts Over S$1 Billion in Deposits (The Smart Investor)
Singapore banks DBS Group (SGX: D05 / FRA: DEVL / DEV / OTCMKTS: DBSDY / DBSDF), United Overseas Bank (SGX: U11 / FRA: UOB / UOB0 / OTCMKTS: UOVEY / UOVEF) or UOB, and Oversea-Chinese Banking Corp (SGX: O39 / FRA: OCBA / FRA: OCBB / OTCMKTS: OVCHY) are widely known to many Singaporeans. [See our write-ups about all three]
Trust Bank, or Trust for short, is a 60%/40% partnership between Standard Chartered (LSE: STAN) and FairPrice Group.
Trust was launched as a Singapore digital bank back in September last year.
Eight months in, the partnership became the fourth largest retail bank in Singapore, attracting over S$1 billion in deposits from half a million customers.
Simon Torring, eCommerce in Southeast Asia (Compounding Curiosity)
Lucky enough to have Simon Torring, the Co-founder of Cube Asia, a market insights company for online retail in Southeast Asia. Cube Asia helps brands, retail companies, and investors drive profitable growth by leveraging more recent, granular, and reliable data and insights about their online sales channels.
So in this deep dive, we cover eCommerce in Southeast Asia. From Sea Limited (NYSE: SE)’s struggles with Shopee, to the inevitable rise of TikTok shop, if it concerns eCommerce in Southeast Asia, we have it covered.
Show Notes:
[00:01:43] - [First question] - Simon’s history with Southeast Asia and starting Cube Asia
[00:03:14] - The challenges of Data collection
[00:05:36] - Finding data but also being able to integrate it
[00:07:50] - Snapshot of where Social Commerce is at right now
[00:10:22] - The rise of TikTok Shop
[00:13:08] - Global Brands and TikTok Shop
[00:16:52] - Where might TikTok Shop be going wrong?
[00:23:38] - How has Shopee been able to grow its GMV meaningfully between Q1 and Q2, whereas Lazada and Tokopedia have been sort of struggling to do so?
[00:30:58] - Differences between Shopee, Lazada, and Tokopedia
[00:35:13] - Why Shopee's position in Indonesia, historically one of its key growth markets has sort of deteriorated since September 2022
[00:37:53] - eCommerce’s remaining growth in Southeast Asia
[00:40:27] - Wrapping up
Will Indonesia really ban TikTok Shop? (Momentum Works)
Also see: Temu enters Malaysia, its 2nd market in Southeast Asia (Momentum Works)
Last night, a Jakarta Globe story “Indonesia plans to ban TikTok Shop” started spreading.
According to the story, Indonesia’s Minister of Cooperatives and SMEs Teten Masduki told the parliament that Indonesia should follow India and the United States in banning TikTok’s ecommerce operations in the country.
On the first trading day after the story broke, the stock price of Shopee’s parent Sea Limited (NYSE: SE) rose by 5.12%.
Sea Ltd (SE US) - A Positive Catalyst from TikTok Shop's Trouble (Smart Karma) $
Sea Limited (NYSE: SE) began to step on the gas in terms of promotions in 2Q2023, even warning of potential quarterly losses, mainly due to perceived threats in Indonesia from TikTop Shop.
Reports that TikTok Shop will be banned in Indonesia will provide significant relief in terms of competition as it is targeted for unfair competition versus local MSMEs through cheap imports.
Sea Ltd has also relaunched FreeFire in India, which could become a significant catalyst for the recovery of the gaming business. Valuations are attractive on both sales and earnings.
Russia Trip Report - Economic Insights and Other Titbits (Part 2) (Pyramids and Pagodas)
Note: Mentions several Russian and Chinese stocks.
Chinese manufacturers stepping in to get Muscovites from A to B amid sanctions
In late July/Early August, Altraman spent two weeks in Moscow, the capital of Russia. In this instalment, his exploration of the city provided valuable insights into how Russia looks to China to power its transport and supply vehicles as Western players turn their backs.
This is Part 2 of a four-part Series covering Altraman’s recent trip to Moscow from Hong Kong, during which he uncovered many ground truths about the economic situation there, as well as insights into the workarounds being used to keep businesses open and money flowing amidst increasingly hostile sanctions. Few aspects of life in Russia appear untouched by the current geopolitical climate, which was evident even during Altraman’s journey to the country. Hence the first piece in this series will focus on the logistics of travel to Russia from Asia and a quick look into the health of air travel markets in Russia and China.
Hidden Champions among India's ADRs/GDRs (Asian Century Stocks) $
So far, I’ve avoided discussing Indian equities for one simple reason: few international investors can invest in stocks listed on the Bombay Stock Exchange.
But there are more than a dozen Indian companies listed overseas.
I spent two days researching these companies, determining which has sustainable competitive advantages or not.
Out of 16 companies, I highlight five: HDFC Bank (NYSE: HDB), Larsen & Toubro (L&T) (NSE: LT / BOM: 500510), Dr Reddy’s Laboratories (NYSE: RDY), Infosys (NYSE: INFY) and Makemytrip (NASDAQ: MMYT).
In my view, they all have competitive products and are likely to grow for the foreseeable future.
Vedanta to take back ownership of Zambian copper mine (FT) (Archived Article)
Florida Ice and Farm Company - LATAM Stocks Investment Analysis #20 (LATAM Stocks)
Florida Ice and Farm Company (FIFCO) (BNV: FIFCOa) is a Costa Rican food and beverage company. They distribute many leading domestic and international brands throughout Central America.
There aren’t many stocks listed in Costa Rica. But FIFCO is a solid company that is on par with top quality food and beverage companies globally. They are financially healthy, have a strong product portfolio, and there is plenty of growth potential in the regions where they operate.
China and India Drive A. O. Smith to Record Results. Time to Buy the Stock? (Motley Fool)
Water heaters are the core of A.O. Smith (NYSE: AOS)'s business.
Mature markets make up the company's largest segment, but emerging markets are the growth engine.
China and India are the countries to watch.
Further Suggested Reading
$ = behind a paywall
Subsidies Corrupt Economies, China, A Cautionary Tale (Advancing Time)
Good article:
China's economy is in trouble. After seeing a video claiming much of China's Electric Vehicle industry was built on subsidies that are now gone, I'm forced to ponder the legacy of these policies. It showed a factory in Chongqing, China, where a huge number of clean energy vans sit abandoned, covered in a thick layer of dust. This rendered their original appearances unrecognizable. Recently, aerial footage has also surfaced of vast grassy fields in Hangzhou littered with thousands of clean energy vehicles. This brings into question how this occurred.
The big problem China now faces is that advanced economies are complex. When they start to shut down reversing the trend becomes difficult due to contagion. It is hard to build a machine when even a few parts are unavailable. This means the trend in China will not be easy to reverse.
Just because another government does something does not mean it would be good for us. Big governments are stupid and big companies are predatory.
If China’s Boom is Over, Where Will Demand for Commodities Come From? (The Emerging Markets Investor)
Eighty-seven percent of the increase in world steel production over the past 22 years occurred in China, raising the question of which countries can pick up the slack if China’s construction boom is over. The hope is that India and emerging Southeast Asia can step up. Assuming China’s steel output remains flat, to maintain the 3.5% annual increase in global steel demand of the past twenty years, it will be necessary for India, Vietnam, Indonesia, and a few more high-growth economies to more than double their steel output every decade.
Beijing Passes Law Allowing Foreign States to Be Sued in China (Caixin) $
China’s national legislature Friday passed a new foreign state immunity law that will for the first time allow Chinese citizens and companies to sue foreign states in domestic courts.
The 23-article law, approved by the National People’s Congress (NPC) Standing Committee, will take effect Jan. 1, 2024. It provides a legal basis for Chinese courts to take jurisdiction over civil cases involving foreign states, expanding the channels for Chinese citizens and companies to obtain relief.
Beijing Is Ceding The Economic Race As Growth Slows (Zero Hedge)
The great Chinese flow reversal (FT) (Archived Article)
Note: Includes good charts…
But a new report from Joyce Chang, chair of research at JPMorgan, lays bare just how fickle those flows have actually proven. The numbers are pretty staggering.
The combination of a Chinese slowing economy, higher rates in the US, reshoring and rising political tensions (and fears that any Chinese invasion of Taiwan might trigger a Russia-style exclusion from the US-led global financial system) has triggered a massive reversal in flows.
Macroeconomy and society lessons from Yang the cab driver (Twitter Thread)
A closer look at India’s buoyant economy (Macrobond)
Stephen Byrd: Watch Out for El Niño (Morgan Stanley Thoughts on the Market)
A strong El Niño event in the coming months could have negative effects for food inflation, commodities markets and climate change.
Argentina… (Praetorian Capital)
Also see Road to the Casa Rosada (Substack) - “Weekly updates on the Argentine 2023 presidential elections.” + our Argentina ADRs list
So, let’s look at the only 3 candidates who are likely to make it to the final election, starting with Milei who’s said on multiple occasions that he plans to “blow up” the Central Bank.
Here’s his platform.
Eliminate the Central Bank and Dollarize the economy, while eliminating fx restrictions
Drastically reduce taxes and regulations
Impose drastic cuts on retirement and pension expenses
Privatize state-owned companies that are unprofitable
Eliminate many of the price caps and export tariffs that hold back the economy
Privatize the health care system
Reduction of employer’s taxes on labor and eliminate severance payments
Eliminate most of the government employees
Argentina, in dollar love affair, agonizes over divorcing the peso (Reuters)
Also see What Is Dollarization, and Why Is Argentina Considering It? (Bloomberg) (Archived Article).
Bolivia has a dollar peg, Venezuela has a quasi-dollar driven economy, while Ecuador, El Salvador and Panama all officially use the dollar. Zimbabwe dollarized and then abandoned it, though economists estimate that 80% of its local economy remains in dollars.
Argentina's $650 billion economy, though, would be by far the largest dollarization experiment, were it to happen. The country is a major global exporter of soy, corn and beef, has one of the world's largest reserves of electric battery metal lithium and huge shale gas and oil reserves in Vaca Muerta.
A widely cited bit of official data suggests that Argentines have as much as $371 billion in dollar assets, much of it outside the local financial system, reflecting decades of people putting non-peso savings out of the government's reach, weakening the domestic economy.
Argentina May Be Headed Down the Dollarization Path (AllianceBernstein)
Milei, who led all candidates in Argentina’s recent primary election, has vowed to eliminate the country’s central bank and replace the Argentine peso with the US dollar, in a transition that could last from 12 to 24 months. In a recent interview, he said, “central banks can be divided into four categories: the bad ones, like the Federal Reserve; the very bad ones, like those in Latin America; the horribly bad ones; and the central bank of Argentina.”
If Milei is elected and delivers on his campaign pledges, Argentina would become the fourth Latin American country to adopt the dollar as its official currency, following Panama, El Salvador and Ecuador.
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):
Slovakia Slovakian National Council Sep 30, 2023 (t) Confirmed Feb 29, 2020
Pakistan Pakistani National Assembly Oct 14, 2023 (t) Date not confirmed Jul 25, 2018
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
Chile Referendum Dec 17, 2023 (t) Confirmed Sep 4, 2022
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):
Maison Solutions MSS, 3.0M Shares, $4.00-4.00, $12.0 mil, 9/11/2023 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.)
Nature Wood Group Limited NWGL, 0.9M Shares, $9.00-11.00, $9.2 mil 9/12/2023 Tuesday
We are a holding company incorporated in the British Virgin Islands.
We are a global leading vertically integrated forestry company headquartered in Macau, a Special Administrative Region (S.A.R.) of China. We focus on FSC (Forest Stewardship Council) business operations. Our operations cover both up-stream forest management and harvesting, and down-stream wood-processing and distribution. We offer a broad line of products, including logs, decking, flooring, sawn timber, recycled charcoal, synthesized charcoal, machine-made charcoal and essential oils, primarily through our sales network in Europe, South Asia, South America, North America and China. According to the Frost & Sullivan Report, we are (i) the second-largest wood products export supplier; (ii) the second-largest wood products export supplier certified by the FSC; and (iii) the largest decking product supplier in Peru, in terms of export value in 2021. We are also the largest oak export supplier and the second-largest hardwood export supplier in France, in terms of export volume in 2021.
Our Group owns concession rights of forests in Peru which covered an area of approximately 615,333 hectares as of March 17, 2023. As of March 17, 2023, approximately 13.67% and 1.66% of our Forests are covered by Cumaru and Estoraque, respectively. Cumaru and Estoraque are valuable hardwood timber which produce strong and durable wood that are well suited for high value markets. In particular, Cumaru is commonly used for producing flooring, decking and other construction materials, while Estoraque is commonly used for producing flooring and furniture.
To ensure the sustainability of our forest resources, we establish a set of harvesting rules and operating standards. For instance, we typically only harvest timber meeting the minimum stem circumference requirements. Our standard of forestry operations was recognized by the FSC, an independent accreditation body that is dedicated to promoting responsible and sustainable forest management.
According to the Frost & Sullivan Report, we are one of the few forestry companies that have successfully implemented FSC-certified operations, including forest management, harvesting and manufacturing of wood products. We commenced our FSC business operations in 2016, when Grupo Maderero Amaz S.A.C., a subsidiary of our Group, first obtained FSC Chain of Custody (CoC) certification and began to sell FSC-certified products. As at the date of this prospectus, five subsidiaries of our Group (including Choi Chon Investment Company Limited, E&T Forestal S.A.C., Grupo Maderero Amaz S.A.C., Nuevo San Martin S.A.C. and Latinoamerican Forest S.A.C) have obtained FSC CoC certifications. We also have built a professional forest management team to implement FSC forest management. Our forest management team is led by our head of forest engineer who is qualified to carry out FSC forest management and the key members of our team have an average of over 8 years of experience in FSC forest management. According to the Frost & Sullivan Report, FSC-certified products can be sold at a premium of around 5% to 15% over non-FSC-certified products.
With the growing public concern about environmental protection, consumers are more willing to pay a premium to buy “green” products that are certified by reputable accreditation bodies or ecolabel organizations. As such, products certified by the FSC, one of the world’s most trusted accreditation body, have received wide acceptance across the world, especially the United States and Europe. Revenue generated from sales of FSC-certified products increased by 162.8% from approximately $3.7 million for the year ended December 31, 2020 to approximately $9.9 million for the year ended December 31, 2021, which further increased by 13.7% to approximately $11.2 million for the year ended December 31, 2022, which accounted for approximately 10.0%, 20.7% and 20.3% of our revenue of the respective periods. We believe that such growing trend will continue in the future.
Some of the logs we harvested will be sold to customers immediately after harvesting, others will be processed into a wide variety of products, such as decking and flooring, in our wood processing facilities. As at the date of this prospectus, our Group owns two facilities in Peru, and the Peru base has a monthly log-processing capacity of more than 6,000 m3 and a monthly export volume of up to 65 containers (approximately 1,560 m3).
To further capture the benefit of vertical integration of our manufacturing operation and to secure a stable supply of our wood materials, we sourced logs and semi-finished air-dried planks from local forest owners in Peru, and flooring and decking through sourcing from Gabon. In addition, we source logs through timber auctions or local forest owners in France. To secure a stable supply of logs, our forest management team would assist forest owners in Peru and France with forest management and harvest planning. Similar to logs harvested from our Forests, logs we procured from third parties are either sold directly to customers or further processed in our processing facilities.
We perform the manufacturing process for certain of our products at our Peru base and outsource part of the manufacturing process to third party manufacturers in Peru. We also provide original design manufacturer (ODM) services by combining our in-house product design and development expertise with our ODM partners. For the years ended December 31, 2022, 2021, and 2020, approximately 18.4%, 18.2% and 20.8% of our revenue from our products was generated from our ODM business respectively.
For the years ended December 31, 2022, 2021, and 2020, we generated revenue of approximately $55.3 million, $47.7 million and $37.5 million, respectively. Revenue from sales of logs, flooring and decking and sawn timber accounted for 50.2%, 21.7%, 24.9% and 3.2% of our total revenue for the year ended December 31, 2022 respectively, accounted for 44.4%, 25.0%, 25.2% and 5.4% of our total revenue for the year ended December 31, 2021 respectively, and accounted for 43.9%, 34.4%, 17.5% and 4.2% of our total revenue for the year ended December 31, 2020 respectively.
(Note: Nature Wood Group Limited filed an F-1/A dated Aug. 22, 2023, in which it removed Orientiert XYZ Securities as a joint book-runner – leaving Prime Number Capital in place as the sole book-runner. Nature Wood Group Limited disclosed terms for its IPO in an F-1/A filing dated Aug. 4, 2023: 915,000 American Depositary Shares (ADS) at $9.00 to $11.00 to raise $9.15 million. Each ADS represents eight ordinary shares. Nature Wood Group Limited filed its F-1 on April 25, 2023.)
Davis Commodities Ltd. DTCK, 1.1M Shares, $4.00-4.50, $4.6 mil 9/13/2023 Wednesday
We are an agricultural commodity trading company, based in Singapore and specializing in trading of three main categories of agricultural commodities: sugar, rice, and oil and fat products. We distribute agricultural commodities to various markets, including Asia, Africa and the Middle East. We also provide customers of our commodity offerings with complementary, ancillary services such as warehouse handling and storage and logistics services. We are an asset-light business. We use an established global network of third-party commodity suppliers and logistics service providers in order to distribute sugar, rice, and oil and fat products to customers in over 20 countries as of the fiscal year ended Dec. 31, 2021. (Incorporated in the Cayman Islands)
We source and market the commodities we distribute under two main brands: Maxwill and Taffy. We are also the exclusive distributor of the Lin brand in Singapore. The Maxwill brand is owned by us and is used for the sugar products and oil and fat products that we distribute outside of Singapore. We have an exclusive distributorship with the Thai Roong Ruang Sugar Group, a large sugar producer in Thailand, for the exclusive distribution of sugar products under their Lin brand in Singapore. We have also appointed Tong Seng Produce Pte. Ltd., an established distributor of rice, oil, sugar, flour and fiber products in Singapore, for the exclusive distribution of certain sugar products under our Taffy brand.
We specialize in the sourcing and distribution of sugar products, with sugar products contributing to approximately 80.8% of our revenue for the six months ended June 30, 2022, and 73.6% of our revenue for the six months ended June 30, 2021. Sugar products contributed to approximately 69.6% of our revenue for the fiscal year ended Dec. 31, 2021, and 66.4% of our revenue for the fiscal year ended Dec. 31, 2020. We procure sugar products from various origins in order to offer a wide range of sugar products to our customers in Singapore, as well as in different markets in Asia, Africa and the Middle East regions. We are a member of The Refined Sugar Association in London, which is the trade association for the international white refined sugar trade. We also source and sell a wide selection of rice products and oil and fat products to our customers in Africa and the People’s Republic of China, or the PRC.
We pride ourselves on the quality of our products and our ability to provide a ‘one-stop service’ to customers.
According to Frost & Sullivan Limited, whom we commissioned in June 2022 to produce the “The Agricultural Commodity Market Independent Market Research Report” (the “Frost & Sullivan Report”), we were the largest sugar supplier in Singapore, based on revenue in 2021, with an approximate market share of 7.5% in the sugar market in Singapore. For the fiscal year that ended Dec. 31, 2021, our revenue was US$194.2 million – up 47.6% from 2020.
**Note: Net income and revenue are in U.S. dollars (converted from Singapore dollars) for the fiscal year that ended Dec. 31, 2022.
(Note: Davis Commodities Ltd. cut its IPO’s size by 68 percent to 1.09 million shares (1,087,500 shares) – down from 3.4 million shares (3,397,000shares) – and kept the price range at $4.00 to $4.50 – to raise $4.62 million, according to an F-1/A dated Aug. 22, 2023.)
(Background: Davis Commodities Ltd. filed an F-1/A dated July 3, 2023, in which it changed the price range of its IPO to $4.00 to $4.50 – from $3.00 to $5.00 – and kept the number of shares at 3.4 million (3,397,000 shares) – to raise $14.44 million. Davis Commodities Ltd. filed an F-1/A dated June 26, 2023, in which it disclosed the terms for its IPO: 3.4 million shares (3,397,000 shares) at $3.00 to $5.00 to raise $13.59 million. Background: Davis Commodities Ltd. filed its F-1 on March 9, 2023, and did not disclose terms for its IPO – nor did it choose an exchange for its listing. The F-1 filing (March 9, 2023) states the the stock will be listed on either the NASDAQ or the NYSE – American Exchange. Davis Commodities Ltd. filed confidentially for an IPO on Oct. 21, 2022.)
Gamer Pakistan Inc. GPAK, 1.7M Shares, $4.00-5.00, $7.7 mil, 9/14/2023 Thursday
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.
(Note: The company is offering 1.7 million shares at $4.00 to $5.00 to raise $7.65 million. 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.)
(Note: 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.)
Agape APT Corp. ATPC, 1.7M Shares, $4.00-4.00, $6.6 mil, 9/15/2023 Friday
(Note: This is NOT an IPO. This is an uplisting to the NASDAQ from the OTC – Pink Sheets market.)
We sell skincare products and dietary supplements through direct sales to distributors in Malaysia. We also operate an advisory services business called the ATP Zeta Health Program. (Incorporated in Nevada)
Agape ATP Corporation provides health solution advisory services to its clients. We primarily focus our efforts on attracting customers in Malaysia. We have an advisory services center called the “ATP Zeta Health Program”, which is a health program designed to effectively prevent diseases caused by polluted environments, unhealthy dietary intake and unhealthy lifestyles, and the promotion of health. The program aims to promote improved health and longevity through a combination of modern health supplements, proper nutrition and advice from skilled nutritionists and/or dieticians.
For the three months ended March 31, 2023 and 2022, our revenue was approximately $0.4 million and $0.4 million, respectively, and our gross profit was approximately $0.3 million and $0.3 million. Our total revenues decreased by approximately 6.9% from approximately 0.4 million for the three months ended March 31, 2022 to approximately 0.4 million for the three months ended March 31, 2023. For the years ended December 31, 2022 and 2021, our revenue was approximately $1.9 million and $1.0 million, respectively, and our gross profit was approximately $1.2 million and $0.7 million, respectively. Our total revenue increased by approximately 82.6% from approximately $1.0 million for the year ended December 31, 2021 to approximately $1.9 million for the year ended December 31,2022. Our gross profits decreased by approximately 24.8% from approximately $0.3 million for the three months ended March 31, 2022 to approximately $0.3 million for the three months ended March 31, 2023. Our gross profit increased by approximately 65.4% from approximately $0.7 million for the year ended December 31, 2021 to approximately $1.2 million for the year ended December 31, 2022.
In order to strengthen the Company’s supply chain, on May 8, 2020, the Company successfully acquired approximately 99.99% of Agape Superior Living Sdn Bhd, a Malaysia company (“ASL”), with the goal of securing an established network marketing sales channel that has been established in Malaysia for the past 18 years. ASL has been offering the Company’s ATP Zeta Health Program as part of its product lineup. As such, the acquisition creates synergy in the Company’s operation by boosting the Company’s retail and marketing capabilities. The acquired subsidiary allows the Company to fulfill its mission of “helping people to create health and wealth” by providing a financially rewarding business opportunity to distributors and quality products to distributors and customers who seek a healthy lifestyle.
The Company deems creating public awareness on wellness and wellbeing lifestyle as essential to enhance the provision of its health solution advisory services; and therefore, incorporated Wellness ATP International Holdings Sdn, Bhd. (“WATP”). Upon its establishment, WATP started collaborating with ASL to carry out various wellness programs.
On November 11, 2021, Agape ATP Corporation (Labuan) formed a joint-venture entity, DSY Wellness International Sdn. Bhd. (“DSY Wellness”) with Mr. Steve Yap following which Agape ATP Corporation (Labuan) owns 60% of the equity interest, to pursue the business of providing complementary health therapies. The establishment of DSY Wellness is a further expansion of our business into the health and wellness industry. Mr. Steve Yap readily owns 33 proprietary formulas for treating non-communicable disease which he has agreed to bring into the company for joint commercialization. Mr. Steve Yap also has existing clients receiving traditional complimentary medicine or “TCM” in Indonesia and China.
We offer three series of programs which consist of different services and products: ATP Zeta Health Program, ÉNERGÉTIQUE and BEAUNIQUE.
Our ATP Zeta Health Program is a health program designed to promote health and general wellbeing designed to prevent health diseases caused by polluted environments, unhealthy dietary intake and unhealthy lifestyles. The program aims to promote improved health and longevity through a combination of modern health supplements, proper nutrition and advice from skilled dieticians as well as trained members and distributors.
Our ÉNERGÉTIQUE series aims to provide a total dermal solution for a healthy skin beginning from the cellular level. The series is comprised of the Energy Mask series, Hyaluronic Acid Serum and Mousse Facial Cleanser.
Our BEAUNIQUE product series focuses on the research of our diet’s impact on modifying gene expressions in order to address genetic variations and deliver a nutrigenomic solution for every individual.
The newly established subsidiary DSY Wellness is a further expansion of our business into the health and wellness industry and aims to pursue the business of providing traditional and complementary health therapies.
*Note: Revenue and gross profit are in U.S. dollars for the 12 months that ended June 30, 2023.
(Note: Agape APT Corp. increased the number of shares in its IPO to 1.65 million shares – up from 1.1 million shares – and cut the price to $4.00 – down from a range of $5.50 to $6.50 – to raise $6.6 million in its public offering/NASDAQ uplisting, according to an S-1/A filing dated Sept. 7, 2023. In an S-1/A filing dated Aug. 24, 2023, Agape APT Corp. disclosed that Network 1 Financial Securities was the sole book-runner, replacing EF Hutton. This public offering’s size and price range have undergone several changes since the S-1 was filed on April 12, 2022; in the S-1, Prime Number Capital was the sole book-runner. The company originally filed to go public in July 2020.)
XJet Ltd. XJET, 1.6M Shares, $4.00-4.00, $6.4 mil, 9/22/2023 Friday
We are a 3D printing company. (Incorporated in Israel)
We develop and manufacture unique additive manufacturing solutions that jet directly the actual materials from which the parts are being made. Our patented technology is based on a Nano-Particles Jetting (NPJ) process that creates extremely thin layers of ceramics or metal material. This technology enables the production at scale of geometrically complex and high-quality metal and ceramic end-use parts that are otherwise difficult or impossible to produce. Our complete solution includes hardware, software, and consumable materials, and supports multiple industries and use cases. Such a solution enables automated, cost-effective, safe, and environmentally friendly manufacturing of parts.
Our solution provides an opportunity for part manufacturing with a wide range of complex geometry designs. When using traditional manufacturing technologies, it is either unfeasible or requires additional manual and machining labor, making the production of such end-use parts with similar geometry designs more expensive and time consuming.
**Note: Net loss and revenue are for the year ended Dec. 31, 2022.
(Note: XJet Ltd. cut its IPO by 36 percent to 1.6 million shares – down from 2.0 million shares – and cut the IPO price to $4.00 – down from its previous range of $4.00 to $6.00 – to raise $6.4 million, according to an F-1/A dated July 19, 2023. Background: XJet Ltd. filed terms for its IPO in an F-1/A dated May 25, 2023: 2.0 million shares at $4.00 to $6.00 to raise $10.0 million. Background: XJet Ltd. filed its F-1 on April 21, 2023. The Israeli company filed confidential IPO documents with the SEC on Dec. 30, 2022.)
Healthy Green Group Holding Ltd. GDD, 2.0M Shares, $6.00-7.00, $13.0 mil, 9/25/2023 Week of
Healthy Green Group Holding Ltd. is a Hong Kong-based chain of 22 organic grocery stores under the Greendotdot brand. (Incorporated in the Cayman Islands) **Note: Investors in this offering (the IPO) are buying shares of the Cayman Islands (holding) company whereas all of our operations are conducted through our Operating Subsidiaries. At no time will the Company’s shareholders directly own shares of the Operating Subsidiaries.
We are a Hong Kong-based retailer principally engaged in the sale of natural and organic food under our “Greendotdot” brand. Our Group’s history can be traced back to 1999 when Mr. Wong and Ms. Cheuk started the business of marketing natural and organic foods. The same year, we launched our first retail store with the objective to introduce quality products from local and overseas suppliers to our customers. Over the years, we have been building our “Greendotdot” brand by sourcing, procuring, marketing and selling a wide variety of quality products, which can be broadly classified into (i) packaged foods; (ii) fresh foods; (iii) frozen foods; and (iv) other products such as honey, beverages, edible oils, seasonings and other non-food items.
We offer a diversified portfolio of over 600 products sourced from over 134 suppliers, which we market through established sales channels, including 22 retail stores in Hong Kong under our brand “Greendotdot” as of Dec. 31, 2022. The retail stores are strategically located in Metrorail stations, residential areas or shopping complexes, which are prime locations with high pedestrian traffic. Other established sales channels include our online sales platforms, exhibitions and through supermarkets and department stores, and wholesale sales to bulk-purchase customers.
According to the Frost & Sullivan Report, our Group ranked as the second-largest natural and organic food retail chain in Hong Kong in terms of our revenue, translating to a market share of approximately 7.9% in the natural and organic food market in Hong Kong in 2021. For the years ended Dec. 31, 2020, and 2021, and the six-month period ended June 30, 2022, our Group’s revenue amounted to approximately HK$166,853,000, HK$159,546,000 (US$20,527,000) and HK$80,430,000 (US$10,278,000), respectively. Our net profit was approximately HK$12,427,000, HK$4,013,000 (US$516,000) and HK$1,338,000 (US$170,000) for the respective years/period.
**Note: Revenue and net income (in the chart below) are in U.S. dollars for the year that ended Dec. 31, 2022.
(Note: Healthy Green Holding Ltd. filed an F-1/A dated April 28, 2023, in which it changed its listing venue to the NYSE – American Exchange from the NASDAQ and changed its proposed symbol to “GDD” from “HGRN,” which was the original proposed symbol for the NASDAQ listing.)
(Note: Healthy Green Holding Ltd. disclosed the terms for its IPO – 2.0 million shares at a price range of $6.00 to $7.00 to raise $13.0 million – in an F-1/A dated July 12, 2023. Healthy Green Holding Ltd. filed its F-1 on Feb. 16, 2023. The company submitted confidential IPO documents to the SEC on April 26, 2022.)
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:
08/18/2023 - 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:
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 (September 11, 2023) was also published on our website under the Newsletter category.