US elections are over and while the US stock market has continued to outperform, investors need to realize the real underlying US economy is increasingly in bad shape and still plagued by inflation (driven by reckless government spending and ballooning debt) – something I guarantee the mainstream media will start to notice by January 20th (if not sooner…).
ZeroHedge has also noted howthe ESG grift is ending and that ESG fund managers are being told to “keep their lawyers very close”(per a Bloomberg article) given they may soon be in trouble for breaching fiduciary duties or antitrust violations. Trump’s victory has already hit US-based “green” stocks.
Finally, there is the issue of tariffs. FT has reported how Mexico is grappling with its hidden Chinese trade problem (🗃️) as “patchy data will only fuel US concerns over its southern neighbour being used as a trade backdoor” (I will definitely be placing some orders on Temu in the coming weeks or months for my parents’ yard, etc. and on their behalf…).
$ = behind a paywall
China & Hong Kong Stock Picks (October 2024) Partially $
China’s $19T global time bomb + PICC Property and Casualty Co Ltd, RemeGen, Guangzhou Automobile Group, Shenzhen Mindray Bio-Medical Electronics Co., Ltd., BYD Company, Zhejiang Dingli Machinery, Haier Smart Home, WuXi AppTec, NAURA Technology Group, Shennan Circuits, Cimc Enric Holdings Ltd, Jiangsu Hengli Hydraulic, Shengyi Tech, Topsports, Li Ning Co., Ltd, Luxshare Precision Industry, Wingtech Technology, Will Semiconductor Co Ltd, Xtep, Great Wall Motor, GoerTek Inc, EDA Group Holdings, Zhongji Innolight, New Oriental Education, Ping An Insurance, Foxconn Interconnect Technology, iQIYI, Baidu, ZTE, Horizon Construction Development, BaTeLab Co Ltd, Yancoal Australia, DPC Dash, JD.com, Geely Automobile Holdings, Zhejiang Leapmotor Technology, Anta Sports, Weichai Power, Sinotruk Hong Kong Ltd, Alibaba & Tencent
20+ high conviction stock ideas:Li Auto, Geely Automobile Holdings, China Hongqiao Group, Bosideng International Holdings, JNBY Design, Xtep, Proya Cosmetics, BeiGene, China Pacific Insurance (Group), PICC Property and Casualty Co Ltd, Tencent, Alibaba, PDD Holdings (Pinduoduo), Greentown Service Group Co, FIT Hon Teng (Foxconn Interconnect Technology), Xiaomi, BYD Electronic International, Zhongji Innolight Co Ltd, NAURA Technology Group & Kingdee International Software
Short Idea: Sinotruk Hong Kong Ltd
EM Fund Stock Picks & Country Commentaries (November 10 2024) Partially $
US election impacts, China (not software) is eating the world, “infamous” Greek/Marshall Islands shipping sector, Vietnam masters East Asia blueprint, what makes India exciting for investors, etc.
$ = behind a paywall / 🗃️ = Archived article
🇨🇳 (BYD Company (1211 HK, BUY, TP HK$372) Review): Great Earnings Linearity Stays the Same This Quarter (Smartkarma) $
BYD Company (SHE: 002594 / HKG: 1211 / SGX: HYDD / OTCMKTS: BYDDY / BYDDF) reported C3Q24 top line, non-IFRS operating income and IFRS net income 2.7%, (28%) and (12%) vs. our estimates.
Our ASP tracker showed promotional activities abated industry wide in October, boding well for profitability in C4Q24.
We maintain the stock at BUY and TP of HK$372.
🇨🇳 Meituan (3690 HK): Big Passive Selling in December (Smartkarma) $
The announcement of the changes to the Hang Seng indices is on 22 November, the capping will use the close on 3 December and implemented at the close 6 December.
Meituan (HKG: 3690 / 83690 / FRA: 9MD / OTCMKTS: MPNGF / MPNGY)‘s outperformance over the last couple of months will result in capping of the stock weight in all major indices and passives will sell stock.
We estimate passive trackers will need to sell 35m shares (US$866m; 0.64x ADV) of Meituan (3690 HK) and that number will change over the next 3 weeks depending on performance.
🇨🇳 After years of shopping around, Dingdong bags formula for profits (Bamboo Works)
The online grocer reported its third consecutive quarterly profit in the three months to September, and now boasts profit margins similar to Walmart and Kroger
Dingdong (NYSE: DDL)’s revenue rose 27% in the third quarter, while it reported its third consecutive quarterly profit
The online grocer has tweaked its business formula to focus on more affluent markets, especially in the Yangtze River Delta area where it is based
🇨🇳 Cango builds up global capabilities in search of new direction (Bamboo Works)
The car trader’s export-oriented AutoCango.com site is rapidly building up traffic, logging 370,000 page views since its launch in March
Cango (NYSE: CANG) is aggressively building up a customer base and support services to export Chinese cars to the rest of the world, with 60,000 registered users for its AutoCango.com site
The car trader’s 3.8 billion yuan in cash and short-term investments is one of its most important assets as it looks to build up its new global and domestic businesses
🇨🇳 Luckin Coffee: Price Wars Could Result In Gross Margin Dilution And Loss Of Market Share; Short Recommendation (Seeking Alpha) $ 🗃️
🇨🇳 Luckin Coffee: Acing It in China’s Racing Coffee Market (Smartkarma) $
Luckin Coffee (OTCMKTS: LKNCY) reported another quarter of strong growth and is now China’s leading coffee chain by a wide margin with operating margins outperforming even premium rival Starbucks Corp (NASDAQ: SBUX).
Luckin’s disruptive model—centered on affordability, convenience, and accessibility—and the competition that followed has fueled a 2.5X rise in China’s per capita coffee consumption over the past five years.
Luckin Coffee’s strong growth, high operating margins, dominant market share contrasts with Starbucks, which is now adapting to changing customer preference for convenience and digital experiences.
🇨🇳 Yum China: Durian Pizza to Share Repurchase – Art of Delivering Shareholder Value (Smartkarma) $
YUM China (NYSE: YUMC) reported a 33% YoY EPS growth on the back of 5% revenue growth for 3Q2024, showcasing robust shareholder value creation despite a challenging operating environment.
YumChina’s 3Q results: New store additions and Innovative products continue to fire revenue growth despite challenging business environment; Operating margins improvement helped profit growth.
The company has plans to further step up the Capital returns program – a big driver in enhancing shareholder returns.
🇨🇳 Dogness limps ahead as investors chase its stock (Bamboo Works)
The pet product maker’s shares are up more than tenfold since February, even as it reported its revenue fell 15.6% in its latest fiscal year through June
Dogness International Corp (NASDAQ: DOGZ)’ revenue fell to $14.8 million in its fiscal year through June, as it reported a second consecutive annual loss
The pet product maker’s stock has soared since February, including a more than sevenfold gain since it raised $5 million through a private placement in May
🇨🇳 GCL Technology plunges into the red, eyes Middle East production (Bamboo Works)
The polysilicon maker said it lost nearly 3 billion yuan in the first three quarters of the year, but hopes to rebound as it starts to put more of its idle capacity back to use
GCL Technology Holdings Ltd (HKG: 3800 / FRA: 3GY / OTCMKTS: GCPEF) said it lost nearly 1.5 billion yuan in the third quarter, suffering as its material costs remained below prices for its finished polysilicon products
The company is partnering with the UAE’s sovereign fund as it eyes the Middle East as a potential contributor to rebounding from its current slump
🇨🇳CPMC Holdings (906.HK) Update – These Are the Reasons Why We Find This Deal “Tricky” (Smartkarma) $
Since ORG Technology Co Ltd (SHE: 002701) needs to pay a high price, it certainly hopes that the effect of the acquisition is 1+1>2, otherwise it is equivalent to failure considering the future debt payment.
We’re unsure if the situation on Zhang Wei’s side will change. If afterwards integration falls short of expectations, ORG may “deliberately slow down the progress”, which is a risk point.
Considering the complexity of this deal, we recommend investors do more comprehensive and deeper thinking. Due to risks behind, we certainly hope to obtain higher returns (at least 20% annualized).
🇨🇳 Vanke bleeds red ink but detects signs of upturn (Bamboo Works)
The property company is battling to get its house in order after posting big losses, hoping to capitalize on a tentative market revival
Vanke (SHE: 000002 / HKG: 2202 / FRA: 18V / OTCMKTS: CHVKF / CHVKY) swung from profit to a deep loss of 17.94 billion yuan in the first three quarters of the year, despite efforts to steamline its business and maximize income
The company reported stronger demand during the National Day holiday period in October, logging sales subscriptions worth 10.22 billion yuan
🇨🇳 Innovent ditches low-value stake sale after investor outcry (Bamboo Works)
The biopharmaceutical company had planned to sell a 20% stake in its international unit to the group’s founder, but the cheap price sparked a crisis of market confidence
Innovent Biologics (HKG: 1801 / FRA: 6IB / OTCMKTS: IVBXF / IVBIY) said its intention was to demonstrate executives’ commitment to the overseas business, but the deal was dropped after a backlash over pricing
The biopharma group has covered losses amounting to 600 million yuan at the Fortvita unit over the past two years, but the business was valued at just 570 million yuan for the proposed transaction
🇨🇳 AstraZeneca’s top China executive detained by authorities (FT) $ 🗃️
🇨🇳 AstraZeneca shares fall as China probe intensifies (FT) $ 🗃️
🇨🇳 China fright ups the stakes for AstraZeneca(FT) $ 🗃️
🇭🇰 Is Fairwood a melting ice cube? (52 HK) (Asian Century Stocks) $
Potential 4.6x P/E with net cash representing 72% of the market cap.
I bought shares in Hong Kong restaurant operatorFairwood Holdings Ltd (HKG: 0052 / OTCMKTS: FRWDF) in late December 2022. At the time, the city’s COVID-19 restrictions had just been removed, and the Hong Kong-China border was about to open, too.
But since that point, Fairwood’s share price has continued lower:
This begs the question: what the hell happened?
The answer is that Hong Kong’s restaurant industry has faced incredible challenges throughout COVID-19 and even until today.
🇭🇰 Budweiser’s China glass drains as consumers have less to toast (Bamboo Works)
The brewer’s Asia unit is being tripped up by slowing business in its largest regional market where a slowing economy is leading to growing consumer caution
Budweiser Brewing Company APAC Limited (HKG: 1876 / OTCMKTS: BDWBY / BDWBF)’s profit fell 15% in the first nine months of the year as its revenue in China fell 16.1% in the third quarter
The mainstream beer maker’s efforts to develop higher-end products may be meeting with headwinds from increasingly cautious Chinese consumers
🇭🇰 Hongkong Land Surged 15% After Announcing a Strategic Review: Is the Stock a Screaming Buy? (The Smart Investor)
Hongkong Land Holdings (SGX: H78 / LON: HKLJ / FRA: HLH / OTCMKTS: HKHGF / HNGKY), or HKL, is the latest company to announce its strategic review.
For instance, Singapore Post Limited (SGX: S08 / FRA: SGR / OTCMKTS: SPSTY / SPSTF) unveiled its strategic review back in March this year while Singtel (SGX: Z74 / FRA: SIT / SIT4 / OTCMKTS: SGAPY / SNGNF) provided a recent update of its strategic review which was announced back in 2021.
HKL continues this trend.
With shares hovering close to their 52-week high of US$4.67, is HKL still a screaming buy?
A long-awaited strategy update
Strategic vision for 2035
Third-party capital and capital recycling
Communicating a clear capital allocation framework
Timeline and milestones
Get Smart: A step in the right direction
🇲🇴 Galaxy Ent 3Q net revenue up 11pct y-o-y, hits US$1.37bln (GGRAsia)
Macau casino operator Galaxy Entertainment (HKG: 0027 / OTCMKTS: GXYEF) reported third quarter net revenue that was up 10.5 percent year-on-year.
Such net revenue was just under HKD10.67 billion (US$1.37 billion), the group said in a Thursday statement to the Hong Kong Stock Exchange, regarding unaudited highlights of its business for the three months to September 30.
🇲🇴 Events to boost Galaxy Macau share gains in 4Q: Seaport (GGRAsia)
Casino operator Galaxy Entertainment (HKG: 0027 / OTCMKTS: GXYEF) “lost circa 40 basis points” quarter-on-quarter to 18.7 percent, in terms of share of gross gaming revenue (GGR) in the Macau market, suggested a Thursday note from Seaport Research Partners.
“While Galaxy (Entertainment) experienced a poor September, reflected in the third-quarter results, fourth quarter was off to a very strong start with Galaxy (Entertainment) achieving over 20 percent market share, although we expect this to drop in November and December,” wrote analyst Vitaly Umansky in the memo.
Galaxy Entertainment reported on Thursday third-quarter adjusted earnings before interest, taxation, depreciation and amortisation (EBITDA) of HKD2.94 billion (US$378.3 million), up 6.2 percent from the prior-year period, but down 7.4 percent sequentially.
🇲🇴 Galaxy Entertainment founder Lui Che Woo dies aged 95 (GGRAsia)
Lui Che Woo (pictured in a file photo), the founder and chairman of Macau casino operator Galaxy Entertainment (HKG: 0027 / OTCMKTS: GXYEF) , died on November 7, said the company in a Monday statement. The announcement said Mr Lui “passed away peacefully at the age of 95 on 7 November 2024”.
Mr Lui, who also chaired Hong Kong-listed property developer K Wah International Holdings Ltd (HKG: 0173 / FRA: KW2 / OTCMKTS: KWHAF), ranked 7th in this year’s “Hong Kong’s 50 Richest People” list, published by Forbes magazine.
🇲🇴 Melco Resorts profit recovery continues in 3Q (GGRAsia)
Global casino resort developer and operator Melco Resorts & Entertainment Ltd (NASDAQ: MLCO)swung back to a profit of nearly US$27.3 million in the three months to September 30, compared to a US$16.3-million loss in the third quarter 2023.
That was on total operating revenues that grew by 15.5 percent to nearly US$1.18 billion, compared to the prior-year period. The company gave the information in a Tuesday announcement via the United States, where the group lists its American depository shares.
The firm’s casino revenues rose 16.3 percent year-on-year, to just under US$944.4 million.
🇲🇴 Melco Macau market share loss trims prospects: analysts (GGRAsia)
Melco Resorts & Entertainment Ltd (NASDAQ: MLCO)’s Macau property earnings before interest, taxation, depreciation and amortisation (EBITDA) could rise 6.6 percent sequentially in the fourth quarter, on a hold-adjusted basis, to US$251 million, says JP Morgan Securities LLC.
That would be helped by the institution’s forecast that Melco Resorts’ Macau property-level net revenues will grow 1.2 percent quarter-on-quarter, to reach just over US$1.00 billion in the three months to December 31.
CBRE Capital Advisors Inc thinks Macau fourth-quarter property net revenues for the group will be almost flat sequentially, at US$997.3 million, as per a Tuesday memo from analysts John DeCree and Max Marsh.
🇲🇴 Melco Resorts eyes resuming dividend payment in 2H2025(GGRAsia)
Casino group Melco Resorts & Entertainment Ltd (NASDAQ: MLCO)aims to resume dividend payment to shareholders in the second half of 2025, said on Tuesday the firm’s management on the call to discuss its third-quarter earnings.
The firm last paid a dividend in February 2020.
Melco Resorts’ management stressed that, however, debt reduction and de-levering were its priorities in terms of allocation of capital.
🇲🇴 Grand Lisboa Palace ramp aids SJM rating: Moody’s(GGRAsia)
The outlook of Macau casino operator SJM Holdings (HKG: 0880 / FRA: 3MG1 / KRX: 025530 / OTCMKTS: SJMHF / SJMHY)’s current corporate family credit rating, and the rating on its backed senior unsecured bonds, remains ‘stable’, says Moody’s Investors Service Inc. It adds that the gaming group’s present elevated level of financial leverage is mitigated by the growing earnings from SJM Holdings’ Cotai property, Grand Lisboa Palace, and by better cash flow.
That is according to the institution’s latest update issued on Tuesday.
🇹🇼 Silicon Motion: NAND Flash Has Got To Give – Maintaining Buy (Seeking Alpha) $ 🗃️
🇰🇷 🇨🇳 Chinese Government Announces a No-Visa Policy for South Korean Citizens Entering China (Douglas Research Insights) $
On 4 November, the Chinese government suddenly announced it will waive visa requirements for South Korean citizens entering China.
This is likely to have a major positive impact on major travel/airline stocks including Hana Tour Service, Korean Air Lines Co Ltd (KRX: 003490), Very Good Leisure (Very Good Tour Co Ltd (KOSDAQ: 094850)), Yellow Balloon Tour (KOSDAQ: 104620), and Modetour Network (KOSDAQ: 080160).
A no-visa policy by China for South Korean citizens could also imply a reciprocal policy by the South Korean government.
🇰🇷 CPNG: 3Q24 Business Update (Speedwell Memos)
Coupang, Inc. (NYSE: CPNG)—Korea’s #1 ecommerce platform—keeps growing, WOW members still increasing spend, developing offerings progressing
Coupang reported 3Q24 earnings and the stock fell -12% after the release.
Lastly, they dropped a press release noting that Bom Kim set up a 10b5-1 plan to sell 15mn shares (and he will separately donate 2mn). They note it is in part to satisfy tax obligations. After these sales he will still own just under ~9% of the company or ~158mn shares.
🇰🇷 Wins Co: Tender Offer Buyback and Cancellation of 10% of Outstanding Shares (Douglas Research Insights) $
On 4 November, (security solutions software)Wins Co (KOSDAQ: 136540) announced a tender offer of 1,364,416 shares (10% of outstanding shares) at a tender offer price of 16,000 won per share.
The tender offer period will last from 5 to 24 November. Once the tender offer buyback is completed, the company also plans to cancel the shares.
The company is deeply undervalued with cheap valuation multiples. It has P/E of 7.2x and EV/EBITDA of 1.1x based on 2023 financials.
🇰🇷 KT&G: New, Upgraded Total Shareholder Return Plan (Smartkarma) $
KT&G Corp (KRX: 033780) announced a new shareholder return policy worth a total of 3.7 trillion won, including 2.4 trillion won in dividends and 1.3 trillion won in treasury shares buybacks by 2027.
On an annual basis, the total shareholder returns from 2025 to 2027 would be about 1.2 trillion won, which represents about 8.8% of the company’s current market cap.
This is better than the one the company provided last year. KT&G also reported solid results in 3Q 2024 driven by excellent results in core tobacco business.
🇰🇷 2025 High Conviction: Samsung Electronics (Smartkarma) $
Three major reasons why Samsung Electronics (KRX: 005930 / LON: BC94 / FRA: SSUN / OTCMKTS: SSNLF)is our 2025 high conviction pick include attractive valuations, reduced concerns about inheritance tax overhang, and higher likely total shareholder returns.
Given that 2025 will be the last year of major inheritance tax payment for the Lee family, this reduced overhang could act as a positive sentiment on Samsung Electronics.
Pressures on Samsung to announce material improvement to shareholder returns are coming not just from existing shareholders but also from the Korean government due to Korea Corporate Value Up program.
🇰🇷 Samsung Electronics: Three Major Investment Highlights (Douglas Research Insights) $
Three major investment highlights of Samsung Electronics (KRX: 005930 / LON: BC94 / FRA: SSUN / OTCMKTS: SSNLF) include attractive valuations, reduced concerns about inheritance tax overhang, and higher likely total shareholder returns.
Given that 2025 will be the last year of major inheritance tax payment for the Lee family, this reduced overhang could act as a positive sentiment on Samsung Electronics.
Pressures on Samsung to announce material improvement to shareholder returns are coming not just from existing shareholders but also from the Korean government due to Korea Corporate Value Up program.
🇰🇷 Hyundai GF Holdings: A Tender Offer of 15% Stake in Hyundai Ezwel (Douglas Research Insights) $
Hyundai GF Holdings Co Ltd (KRX: 005440) announced that it is making a tender offer of a 15% stake its affiliate Ezwelfare (090850 KS) (Hyundai Ezwel Co Ltd (KOSDAQ: 090850)).
The tender offer involves 3,561,954 shares of Hyundai Ezwel, at the tender offer price of 7,000 won per share (15.7% higher than the closing price on 9 November).
On Monday (11 November), Hyundai Ezwel’s share price could reach about 1-3% below the tender offer price (about 6,800 won to 6,930 won) in the first few minutes of trading.
🇰🇷 Hyundai Mobis: A Turnaround Story With Strong Outperformance in the Past Three Months (Douglas Research Insights) $
Hyundai Mobis (KRX: 012330) is a strong turnaround story and it has sharply outperformed KOSPI and other major Hyundai Motor Group stocks in the past three months.
In this insight, we discuss three major reasons why are remain positive on Hyundai Mobis.
The combined value of Hyundai Mobis’ 21.9% stake in Hyundai Motor and stakes in other companies is worth 16.7 trillion won, which represents 73% of Hyundai Mobis’ current market cap.
🇰🇷 Koentec: Tender Offer and Delisting (Douglas Research Insights) $
On 7 November, it was reported that E&I Holdings (company’s largest shareholder) plans to conduct a tender offer of 18,937,913 common shares of Koentec, representing 37.88% of its outstanding shares.
E&I Holdings plans to purchase all the shares of (industrial waste treatment company)Koentec (KOSDAQ: 029960) and delist the company.
There have been three small cap tender offers in Korea in the past week which suggests more smaller Korean companies trying to unlock higher value through the tender offer strategy.
🇰🇷 Gradiant – Tender Offer, Buyback, and Cancellation of 25% of Outstanding Shares (Douglas Research Insights) $
Gradiant Corp(KOSDAQ: 035080) announced a tender offer, buyback, and cancellation of 3,571,428 shares (25% of outstanding shares) at 14,000 won per share (16% higher than current price).
The total amount of this deal is worth 50 billion won. The tender offer period is from 11 November to 5 December.
In our view, this tender offer, buyback, and cancellation of nearly 25% of outstanding shares is a major positive catalyst that should boost its share price.
🇰🇷 Alpha Generation Through Share Buybacks in Korea: Bi-Monthly (September and October 2024) (Douglas Research Insights) $
In this insight, we discuss the alpha generation through companies that announced share buybacks in the Korean stock market in September and October 2024.
On average, the share buyback announcements by 25 companies represented 1.9% of their outstanding shares.
Major companies that have announced share buybacks in Korea in the past two months include Celltrion (KRX: 068270), Kangwon Land (KRX: 035250), and NAVER (KRX: 035420 / OTCMKTS: NHNCF).
🇰🇷 MNC Solution IPO Preview (Douglas Research Insights) $
MNC Solution is getting ready to complete its IPO in KOSPI in December 2024. MNC Solution specializes in motion control components for the defense industry.
Total offering amount ranges from 240 billion won to 280 billion won. At the high end of the IPO price range, the company’s expected market cap is 882 billion won.
The company generated operating profit of 16.9 billion won (up 100.9% YoY). It has one of the strongest sales and profit growth among recent IPOs in Korea.
🇰🇷 Paradise Co’s 3Q net income down 55pct y-o-y (GGRAsia)
Third-quarter net income at Paradise Co Ltd (KOSDAQ: 034230), an operator of foreigner-only casinos in South Korea, dipped 55 percent year-on-year to KRW19.66 billion (US$14.20 million), while group-wide casino sales registered a 27.1-percent year-on-year decline.
That is according to a Friday filing to the Korea Exchange, and the company’s supplementary materials on its performance for the three months to September 30.
Metrodata Electronics (IDX: MTDL) saw a steady 13% increase in profits in 3Q2024 but this masks a sharp sequential rebound in 3Q2024 from both ICT and Solutions & Consulting.
The key driver for the ICT segment came from the telco segment, whilst the S&C segment was driven by financial services and the corporate segment, with 55% recurrent segment revenues.
Outlook for 4Q2024 looks positive for S&C with momentum picking up with the new government has taken office. MTDL is increasing exposure to AI now at 7% of S&C sales.
🇮🇩 Astra International (ASII IJ) – HEVs, Finance, Healthcare, and Gold (Smartkarma) $
Astra International (IDX: ASII / FRA: ASJA / OTCMKTS: PTAIF) booked a solid set of 9M2024 results, despite softness in the auto market, where it gained market share, facing off new competitors with its hybrid offerings.
The decline in net income from autos was offset by all other segments, with financing being the largest offset but heavy equipment also saw strong performance from contracting and gold.
Astra International sees a more positive outlook for autos, both 2W and 4W in 2025, despite new EV entrants and will continue to invest in growth areas. High conviction Buy.
🇵🇭 Asian Dividend Gems: RFM Corp (Asian Dividend Stocks)
RFM Corporation (PSE: RFM) is one of the major players in the food and beverage industry in the Philippines, with well-known brands in pasta, flour, milk, ice cream, and bread.
From 2019 to 2023, the company’s dividend yield averaged 6.9% and its dividend payout averaged 72.7%.
A major reason why the company’s profits and cash flow is consistent is due to its loyal customer base that repeatedly purchase the company’s products.
🇸🇬 GEN Singapore 3Q EBITDA halved as gaming revenue slips (GGRAsia)
Genting Singapore (SGX: G13 / FRA: 36T / OTCMKTS: GIGNF / GIGNY), the operator of the Resorts World Sentosa casino resort (pictured), reported a net profit after taxation of SGD79.4 million (US$59.8 million) for the three months to September 30, down 63.3 percent from a year earlier. Such profit fell by 27.5 percent relative to the second-quarter result, said the casino operator in a Thursday filing.
Earlier this month, Genting Singapore said Andrew MacDonald had “stepped down” from his position as chief casino officer at Resorts World Sentosa Pte Ltd, the entity that runs the casino resort complex.
On Thursday the company also gave some updates on its new non-gaming elements, including its expansion project, called “RWS 2.0”.
🇸🇬 Weak China demand to dim GEN Singapore to 2025: brokers (GGRAsia)
Samuel Yin Shao Yang, an analyst at Maybank Investment Bank Bhd, said in a Friday memo: “Earnings missed our expectations on a combination of lower-than-expected VIP volume and mass-market gross gaming revenue, coupled with higher-than-expected bad debts.”
He further noted: “Chinese account for the majority of VIPs but gambling debts are not enforceable in China.”
Banking group JP Morgan had said in a Thursday memo: “We think a meaningful step down in VIP” during the third quarter, “for both operators, came primarily from China VIPs, reflecting the increased scrutiny on cross-border gambling – e.g., warning from the China embassy in March 2024 – and deteriorating high-end consumer sentiment.”
🇸🇬 A Buy Antithesis For Grab Holdings (Seeking Alpha) $ 🗃️
Shopee(Sea Limited (NYSE: SE)) has recently released its 11.11 promotion videos. Unlike a few years ago, Shopee did not bring in big international names such as Jackie Chan and Cristiano Ronaldo this time.
This year, Shopee released different videos for different markets it operates in, catering to many of the local preferences and inviting locally-famous celebrities. The key messages, including “free shipping”, “lowest prices”, and “free returns”, were amplified.
Moreover, Shopee had different start time and duration for the 11.11 promotion in different markets, perhaps based on the different consumption habits across markets.
Now, let’s take a look at the differences in Shopee’s 11.11 ads across markets
🇸🇬 BitFuFu Earnings: A Bad Q3 And Larger Concerns (Seeking Alpha) $ 🗃️
🇸🇬 BOC Aviation: Spotlight On Q3 Aircraft Deliveries And Aircraft Leasing Market Outlook(Seeking Alpha) $ 🗃️
🇸🇬 BOC Aviation: A Buy On Strong Demand For Aircraft Leasing(Seeking Alpha) $ 🗃️
🇸🇬 4 Singapore REITs Relying on AEIs and Capital Recycling to Fight Off Macroeconomic Headwinds (The Smart Investor)
Despite these headwinds, several REITs have employed measures to help mitigate the negative impact on their distributions.
These include asset enhancement initiatives (AEIs) and capital recycling.
AEIs help to renovate and refurbish an asset to make it more attractive to tenants while capital recycling frees up capital that can be redeployed into higher-quality properties.
Here are four Singapore REITs that used these methods to ward off macroeconomic troubles.
🇸🇬 3 Singapore Stocks Reporting Year-on-Year Profit Increases: Are They a Buy?
These three stocks have seen profits rise year on year and could be an attractive addition to your investment portfolio.
Here are three Singapore companies that recently reported higher year-on-year profits and this trio of stocks could be perfect for your buy watchlist.
Sheng Siong Group (SGX: OV8 / OTCMKTS: SHSGF)is one of the largest supermarket chains in Singapore and operates a chain of 74 outlets across the island.
Micro-Mechanics (Holdings) Ltd (SGX: 5DD / OTCMKTS: MCRNF), or MMH, manufactures high-precision tools and parts for the wafer fabrication and assembly processes of the semiconductor industry.
Japfa Ltd (SGX: UD2 / FRA: 1O4) is a vertically-integrated agri-food company that produces feed for poultry, swine, and aquaculture.
Deepak Fertilisers & Petro (NSE: DEEPAKFERT / BOM: 500645) reported impressive financial results for Q2 FY25 with a 13% YoY growth in revenue, a 73% increase in EBITDA, and margin expansion to 18%.
Company is operating at ~98% Capacity utilisation and also planning capex of 4500 Crores.
Management emphasised the company’s ongoing transition from commodity to specialty products across business segments. This strategic shift aims to enhance margins, cater to evolving customer needs, and strengthen market leadership.
🇮🇳 GHCL Textile’s Q2 FY25 Update (Smartkarma) $
Despite headwinds in the textile sector, GHCL Textiles Ltd (NSE: GHCLTEXTIL / BOM: 543918) recorded a 17.5% YoY revenue growth and margin 9.5% in Q2FY25.
Adding 25,000 spindles to augment production capacity and broaden the product basket, strategically targeting both domestic and international markets.
Targeting Rs. 2200-2300 Cr of topline and 18-20% of EBITDA Margin in 3-4 years.
🇮🇳 The Beat Ideas: SPML Infra Limited- A Water Infra Turnaround Candidate (Smartkarma) $
(Infrastructure Development company) Spml Infra Ltd (NSE: SPMLINFRA / BOM: 500402)successfully restructuring its debt with NARCL and paid off ~30% of its debt from arbitral award as well as cash.
Promoters infused funds in last 3 years to strengthen the Balance Sheet to pay off the debt as well as bidding for upcoming projects.
Current order book of 2000Cr will be completed in 2-3 years, planning to bid for more than 10,000Cr worth of order.
🇮🇳 Indian investors lukewarm over Swiggy’s $1.3bn listing (FT) $ 🗃️
Swiggy (1255298D IN) IPO is an issue of INR 113.3 bn, consisting of fresh issue of INR 45 bn and OFS of 175 mn shares ~INR 68.3 bn.
Swiggy has ramped up fast in the last three years, with a sharp reduction in losses. When seen against Zomato Limited(NSE: ZOMATO / BSE: ZOMATO), Swiggy needs to be more aggressive, especially in Quick Commerce.
As far as forensic takeaways are concerned, the company witnesses high employee attritions, disclosure & presentation jiggles, potential capital allocation woes, experienced cash embezzlements, etc.
🇮🇳 Swiggy IPO: Valuation Discount— But Is It Worth a Swig? (Smartkarma) $
Swiggy (1255298D IN) ‘s USD 1.35 Bn IPO opens for subscription today, November 6th, and runs until Friday, November 8th.
As a popular food and grocery delivery platform in India, Swiggy has a strong brand, innovative approach, solid moat and is positioned well to leverage the sector’s growth potential.
Despite the IPO’s valuation discount vis-a-vis Zomato Limited(NSE: ZOMATO / BSE: ZOMATO), the elevated overall valuations and unfavourable risk/reward profile may not make it an attractive investment option for investors with a low-to-moderate risk appetite.
🇮🇳 The Beat Ideas: Kiri Industries: A Mega Turnaround Story from India (Smartkarma) $
Kiri Industries (NSE: KIRIINDUS / BOM: 532967) won a court ruling for a $603.8 million buyout of its DyStar stake by end-2025.
Clear timeline and promoter fund infusion signal potential for transformation, despite past performance and management skepticism.
Positive catalysts and growing promoter stake could elevate long-term value; cautious optimism remains due to capital allocation concerns.
🌍 Africa Oil: A Strong Buy With Positive News Flows And De-Risked 11.6% Dividend Yield (Seeking Alpha) $ 🗃️
🇿🇦 Gold Fields: Gold Production And Prices Expected To Improve – Near-Term Chance For A Dip (Seeking Alpha) $ 🗃️
🌐 Gold Fields (NYSE: GFI) – One of the world’s largest gold mining firms. 9 operating mines in Australia, Peru, South Africa & Ghana (including the Asanko JV) & 2 projects in Canada & Chile. 🇼🏷️
🇵🇱 Dino Polska: Improving In Many Aspects(Seeking Alpha) $ 🗃️
🇵🇱 Dino Polska: A Dinosaur That’s Still Roaring (Seeking Alpha) $ 🗃️
🇱🇺🌎 $TS Quick Pitch (The Chop Wood, Carry Water Newsletter)
Tenaris S.A. (NYSE: TS) is a leading European manufacturer of pipes and related services for the world’s energy industry and certain other industrial applications.
Tenaris is a leading global manufacturer of seamless steel pipes for the oil and gas industry, playing a crucial role in the energy supply chain. Their high-quality products help companies boost production efficiency, making their strong market position impressive in such a specialized and regulated field.
Tenaris has returned about $459 million to shareholders through dividends and spent around $985 million on a share buyback program. With a dividend yield of approximately 4.19%, it’s an attractive option, especially given its low debt and strong cash reserves.
🌎 DLO: Incredible On Several Metrics, Strategic Margin Compression And Emerging Market Economics A Worry (Seeking Alpha) $ 🗃️
🌎MercadoLibre: Unwilling To Sacrifice The Long Term To Manage The P&L (Seeking Alpha) $ 🗃️
I have no issue with MELI prioritizing investments in user growth, infrastructure, and service diversification over immediate profitability. In fact, I welcome it. While Wall Street analysts might focus on short-term metrics , MELI’s management (which does not issue quarterly guidance) has emphasised long-term positioning over the past 25 years, aiming for sustained success in the Latin American e-commerce and fintech markets. It’s worth remembering that only 15% of commerce is currently conducted online in Latin America.
🇦🇷 Corporacion America Airports: Resilient Operations Set For Upswing With Argentina’s Revival (Seeking Alpha) $
🇦🇷 Transportadora de Gas del Sur Is Priced For Perfection After Q3, An Easy Hold (Seeking Alpha) $ 🗃️
🇧🇷 Petrobras: A High-Yield Investment In A Pricey Market (Seeking Alpha) $ 🗃️
🌐 Vale (NYSE: VALE) – Iron Solutions & Energy Transition Materials segments. Produces & sells iron ore, iron ore pellets, nickel, copper etc + related logistic service. 🇼🏷️
🇧🇷 StoneCo: Brazil’s Rising Interest Rates Pose A Threat, But Valuations Point To A Buy (Seeking Alpha) $ 🗃️
🇧🇷 Bradesco Still Shows Challenges, And Lags The Market, Only Fairly Valued (Seeking Alpha) $ 🗃️
🇧🇷 Itau Unibanco: Around Fairly Priced In P/B (Seeking Alpha) $ 🗃️
🇲🇽 Grupo Aeroportuario del Sureste: Tulum Pressure And Leisure Travel Shift Infuse Risk On This Buy (Seeking Alpha) $ 🗃️
🇨🇱 Sociedad QuíMica y Minera de Chile: A Key Lithium Player On A Path Of Strong Recovery (Seeking Alpha) $ 🗃️
🇵🇪 Pacasmayo Landed More Projects And Waits For A Recovery, The Stock Remains A Hold (Seeking Alpha) $ 🗃️
🌐 Dividend ideas for shipping investors (TheOldEconomy Substack)
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$ = behind a paywall / 🗃️ = Archived article
🇨🇳 China Loosens Rules on Foreign Strategic Investment in Listed Firms (Caixin) $
China is making it easier for foreign investors to directly acquire long-term stakes in Chinese mainland-listed companies, in the nation’s latest bid to revive sluggish foreign investment.
An update to the regulations governing strategic investments was released Friday by six agencies, including the Ministry of Commerce and the securities regulator.
The update lowered the requirements for investments, aiming to guide more high-quality foreign capital to invest in listed companies, according to a Q&A accompanying the updated regulations, which are effective from Dec. 2.
🇨🇳 In Depth: How Legacy Technology Broke China’s Stock Market (Caixin) $
The share trading frenzy that gripped China at the end of September and early October exposed some uncomfortable truths for the Shanghai Stock Exchange (SSE) and the country’s securities firms — technical shortcomings in antiquated systems that are in desperate need of an overhaul.
Glitches and delays in processing orders on Sept. 27 through the SSE’s trading systems and crashes in brokerages’ trading software left many investors angry and complaining of losses. The surge in activity was triggered by a Politburo meeting the previous day pledging more monetary and fiscal stimulus to bolster flagging economic growth. Markets were already experiencing an explosion of trading in the wake of a briefing by the central bank and other financial regulators on Sept. 24, where they announced a package of support measures to bolster the stock and property markets.
🇨🇳 China Disappoints With Latest “Bare Minimum” Stimulus As It Waits For Trump Tariffs (Zerohedge)
There are three certainties in life: death, taxes and China stimulus disappointing.
For the latest example look no further than the plan revealed this morning by the National People’s Congress Standing Committee, which approved a 10 trillion yuan ($1.4 trillion) debt swap package for local authorities to refinance “hidden” local debt onto public balance sheets. Funds for that program – telegraphed last month but without a price tag or timeframe – will be provided through 2028, they said, after the move was authorized by the nation’s top lawmaking body.
The details of the 10 trillion (but really 12 trillion program) are as follows:
A one-off increase in the 6tn yuan local government debt issuance, over 3 years (2024-26);
4tn yuan special LGB issuance under the annual quota, over 5 years (2024-29); and
Additionally, the government will guarantee to pay back 2tn yuan implicit debt related to shantytown redevelopment due in 2029 and after.
But local authorities have struggled to service those liabilities in recent years as the property crisis wiped out land sales they relied on for revenue. Officials at the briefing said the outstanding value of so-called hidden debt was 14.3 trillion yuan as of the end of 2023, far short of the International Monetary Fund’s estimate of at about 60 trillion yuan.
🇨🇳 China devotes $1.4 trillion to fixing its hidden debt problem (Caixin) $
China unveiled a 10 trillion yuan ($1.4 trillion) package Friday for its local governments to deal with their immense hidden debt.
The package shows how the central government is getting more serious about defusing the risks that the off-the-books debt poses to the financial system.
The standing committee of the National People’s Congress (NPC), China’s top legislature, approved an additional quota of 6 trillion yuan for local governments to bring their hidden debt onto the books, Xu Hongcai, a deputy director of the NPC’s financial and economic affairs committee, announced at a press briefing that day.
🇨🇳 There’s No Free Lunch—Some People Even Pay Twice (The Great Wall Street – Investing in China)
A Lesson in Irrationality, Rational Decision-Making, and Behavioral Biases in Investing
China’s NPC Standing Committee meeting will conclude tomorrow, with announcements expected soon on the size of the economic stimulus. This generates a wave of noise and speculation. In light of this, I’ve chosen not to follow the crowd or add to the noise, but instead to focus on misconceptions and behavioral biases.
🇨🇳 Made In China, Sold On Amazon (Statista)
🇮🇳Can India reverse its manufacturing failure? (FT) $ 🗃️
🇮🇳 Foreign investors fear India’s stock market boom may be over (FT) $ 🗃️
🇲🇽 🇨🇳 Mexico grapples with its hidden Chinese trade problem (FT) $ 🗃️
🌐 Which Foreign Countries Bought the Recklessly Ballooning US Debt: An Increasingly Crucial Question. Many Piled it up. Cleanest Dirty Shirt? (Wolf Street)
🌐 The Grift Is Ending: ESG Fund Managers Being Told To “Keep Their Lawyers Very Close” (ZeroHedge)
We’ve known the ESG grift has been coming to a screeching halt for years now, with major investment banks and companies dropping their initiatives while the GOP goes on a rampage to try root out the faux-virtue signaling.
But now with President Trump once again taking the White House, one investment bank is advising ESG fund managers to “keep their lawyers very close”, as the full scale death of ESG may very well be on the door step, according to Yahoo Finance.
Yahoo reports that Trump’s victory has already hit green sector stocks, with wind-energy companies among the hardest hit. Beyond potential bans and obstructive policies, the ESG sector faces rising legal risks.
🌐 Is Goldilocks gone? Emerging markets face uncertain path under Trump (Reuters)
Investors turn cautious as they await Trump policy details
Emerging currencies hit by dollar rally and tariff fears
Some, such as Argentina and India, could thrive
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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):
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).
Frontier and emerging market highlights (from IFES’s Election Guide calendar):
