Hedge Funds Pitch Crypto Platform, Japanese Lasers, Metal Producers and Extra


(Bloomberg) — Chinese language metal producers, a cryptocurrency platform, Japanese lasers and parking tons and a Vietnamese jeweler had been amongst bets pitched by Asia hedge funds on the Sohn Funding convention in Hong Kong.

Keita Arisawa, founder and chief funding officer of Seiga Asset Administration is bullish on Tokyo-listed QD Laser Inc. Marshall Wace Asia Chief Govt Officer Amit Rajpal is backing digital dealer Monex Group Inc. Rajesh Sachdeva, founding associate of Flowering Tree Funding Administration, is betting on Vietnam’s Phu Nhuan Jewellery JSC, whereas Oasis Capital Administration known as for a merger of two of China’s largest metal makers.

Right here’s a variety on notable calls on Thursday from the occasion in assist of the Karen Leung Basis:

Japanese Eyewear

Arisawa at Seiga is bullish on QD Laser, a by-product from Fujitsu Laboratories Ltd. It boasts 87 patents with simply 50 employees, utilizing lasers for electronics and eyewear. Arisawa says the corporate’s two most fun merchandise embrace its quantum dot laser expertise, which might remodel how chips are manufactured, and its eyewear product that may assist the vision-impaired see by straight projecting digitized data onto the retina. He estimates as many as 32 million folks within the U.S., Europe and Japan have low imaginative and prescient, that means lack of sight that may’t be corrected with glasses or surgical procedure.

QD Laser has soared about 380% since its buying and selling debut in February.

Blockchain Revolution

Marshall Wace’s Rajpal is bullish on Monex Group, proprietor of Coincheck, one of many largest crypto buying and selling platforms in Japan. Future areas of investments embrace a non-fungible tokens platform, activist asset administration and blockchain funding. He believes the inventory’s truthful worth is 1,700 yen, up from its present worth of 763 yen.

The choose is to capitalize on the theme that blockchain, decentralized finance and crypto can doubtlessly redefine finance, together with cash, funds and investable asset courses. The entire addressable market will increase from crypto buying and selling to remittances, provide chains, funds and finally changing into a round the clock market with instantaneous clearing throughout all capital markets. A part of that growth shall be pushed by third-generation blockchain, he mentioned.

Even with the latest dump in Bitcoin and different digital currencies, Monex continues to be up 98% this yr in Tokyo.

Vietnam Jewellery

Sachdeva at Flowering Tree is betting on Phu Nhuan Jewellery. He estimates that between 60% to 70% of Vietnam’s jewellery purchases are “unorganized” by particular person shops fairly than chains, however the development is flipping. Phu Nhuan has 30%-40% of the “organized” market share, Sachdeva says. The inventory is up 23% this yr, and whereas it’s at 2018 ranges, earnings have grown 50% since then.

Jewellery gross sales have a tendency to select up after nations surpass $2,000 in per capita gross home product, he mentioned, including that Vietnam is at about $2,500. He predicts a double-digit development price in gross sales over the subsequent few years.

China Metal

Seth Fischer, founder and chief funding officer at Oasis Administration, is lengthy on Bengang Group convertible bonds. His thesis relies on long-term tendencies and a possible acquisition of the corporate. China needs to chop air pollution from metal manufacturing to realize its purpose of carbon neutrality by 2060. He foresees consolidation within the business and expects China’s demand for metal will quickly outgrow its provide. He estimates {that a} 1% drop in metal manufacturing might result in 5% to eight% enhance in costs.

Fischer expects and helps a merger between Bengang and rival Angang Metal Co. Bengang just lately disclosed that its father or mother acquired curiosity in its stake from Angang. Whereas discussions between the 2 first emerged in 2005, these talks might come to fruition now that the Liaoning authorities mentioned it will push for metal consolidation within the province.

Japan Parking

Anand Madduri, founder and chief investing officer at ApaH Capital Administration, highlighted Park24 Co. Folks have to discover a parking house after they purchase a automotive in Japan. The corporate has secured about 750,000 spots in 20,000 places, as many as 4 instances its largest competitor.

Parking tons in Japan contribute to 50% of income and working revenue. Automobile sharing accounts for 27% of its enterprise, however 40% of revenue.

The corporate might use its important money pile to purchase the tons operated by mother and pop corporations who confronted important hardship throughout the pandemic. These parking tons additionally help its ride-sharing enterprise. Park24 has spent closely to go after company Japan clients, which try to chop their fastened prices.

Madduri likens Park24 to a convertible bond: The parking enterprise is the bond flooring, whereas the newer, extra worthwhile automotive sharing enterprise is sort of a warrant. He sees a possible 50%-plus upside to the inventory, which has jumped 28% this yr.

Sea Ltd.

Rashmi Kwatra, founding father of Sixteenth Road Capital, is bullish on Sea Ltd. Hardly a hidden gem, Southeast Asia’s most precious firm might triple its shares with growth in e-commerce, fintech and gaming, she says. Sea Cash might develop 17 instances within the subsequent 5 years and its franchises are undervalued with gaming tailwinds right here to remain, she mentioned. The latest share worth retreat — down 19% from its February peak — is a superb shopping for alternative.

SPAC Bets

Manoj Jain, co-chief funding officer of Maso Capital, is an enormous advocate for SPACs, or blank-check funding automobiles. His most important level is that there’s one thing for everybody in SPACs. There are completely different payout profiles for various kinds of traders. He added that it’s incumbent on refined exchanges to contemplate itemizing these particular function acquisition corporations. Asia boasts ample capital and corporations keen to go public through this route, he mentioned.

China Golf Put on

Michelle Leung of Xingtai Capital is backing Biem.L.Fdlkk Garment Co., a China golf-wear model. It’s an instance of how Chinese language corporations are profiting from the demand for extremely tailor-made, high-end merchandise from younger, rich shoppers. The Shenzhen-listed firm has seen its shares climb 28% this yr. Leung mentioned the inventory might no less than double in three years, including there’s an upside of as much as 250%.

She’s predicting income to double within the subsequent three years because it plans to open 300 new shops a yr, including to the 900 it already has in high-end malls and heavy-traffic places like airports.

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