Nvidia (NVDA US) broke clear of US$650 and closed at a new high today behind overall optimism for the ARM acquisition to close successfully and the persistence of chip shortage news.
MP Materials (MP US) saw elevated trading on Wednesday behind bullish options activity. The daily Put/Call ratio was at 0.136 as investors increased their long exposure to the most popular rare earth equity play in the US market.
Take-Two Interactive (TTWO US) fell after announcing the acquisition of Serbian mobile-gaming company Nordeus for up to US$378 million. Nordeus’s main success story is its first game, Top Eleven, a football management game that boasts over 240 million registered users. The acquisition displays Take-Two’s continued interest in the mobile gaming space, who have been strengthening their mobile gaming portfolio through a string of acquisitions in the past years.
AMC Entertainment (AMC US) continued its stunning rally, up 95% for the day with a peak of 127% daily gain. AMC CEO Adam Aron has embraced the trading frenzy by creating AMC Investor Connect, where its shareholders can be provided with exclusive company information and special offers. Fellow January short squeeze stocks followed AMC’s surge, with Bed Bath & Beyond (BBBY US) and Petmed Express (PETS US) posting similar eye-opening moves.
EcoWise (ECW SP) shares surged 30% after a brief one day trading halt, bringing its two weeks gains to more than 100%. In response to SGX’s query on the unusual trading activity, the company cited that on 21 May 2021, it announced it had received a requisition from three shareholders to convene an EGM of the shareholders.
MFG Integration (MIT SP) Shares surged as much as 27% amid heavy trading volume, but eased going into the afternoon session to close with a 12% gain for the day. The company did not cite any reasons for the unusual price and trading activity in a response to SGX’s query.
The Hour Glass (HG SP) Shares continue to be bidded higher, gaining more than 40% over the past one month, likely in anticipation of the dividend payout. Last month, the company reported full-year net profit rose 8% YoY to S$82.5mn. The company raised the final dividend to 4 Sing cents from 2 Sing cents in the prior year, bringing the full-year total dividend to 6 Sing cents, or an implied 4.8% dividend yield for FY2021. The company trades at favourable valuations of 11x forward P/E.
Q&M Dental (QNM SP) traded higher on above-average trading volumes. Last month, Q&M Dental was awarded contracts for Covid-19 testing services together with five other firms. On a separate note, the company will not proceed to set up a surgical mask manufacturing company with partners. Consensus estimates are positive on the company, with 5 BUYS / 0 HOLD / 0 SELLS and a 12-month average target price of S$0.92 (implied 31% upside).
Genting Singapore (GENS SP) Maybank KimEng upgraded the company to a BUY recommendation from HOLD previously , and increased its target price to S$0.94 from S$0.65. The company had qualified for the request-for-proposal (RFP) of Yokohama’s search for a commercial partner for a casino resort. While local authorities did not name the parties, NHK has reported that one of the groups was led by Genting Singapore, while the other was headed by Melco Resorts and Entertainment. Consensus estimates are 8 BUYS / 11 HOLDS / 1 SELL and a 12-month target price of S$0.95.
Trading Dashboard: Add Sunpower (SPWG SP) at S$0.96.
Huabao International Holdings Ltd (336 HK). There was no company specific news. Last week The World Health Organization China Office and the Planning and Information Department of the National Health Commission jointly held a press conference to publish the China Report on the Health Hazards of Smoking 2020. The report specifically mentions the health hazards of using e-cigarettes. The positive price action could be due to the upcoming release of regulation on the e-cigarette market.
China Medical System Holdings Ltd (867 HK). Shares closed at an all-time high. On June 1, the IND application of China Medical System’s blockbuster innovative drug Methylene Blue Enteric-coated Sustained-release Tablet was accepted by the Center for Drug Evaluation, NMPA. Methylene Blue Enteric-coated Sustained-release Tablet is an oral diagnostic drug, which helps to improve the detection rate of colorectal cancer/precancerous lesions by enhancing visualization of the colorectal lesions in adult patients undergoing screening or surveillance colonoscopy.
Geely Automobile Holdings Ltd (175 HK). Shares closed at a one-month high.The company announced that Jidu Auto, the electric vehicle venture between Chinese search and AI giant Baidu and automaker Geely, will unveil its first model at the 2022 Beijing Auto Show. The car, which will cater to younger users, will be priced above 200,000 yuan ($31,337).
Microport Scientific Corp (853 HK). The company proposed to issue zero coupon convertible bonds due 2026 in principal amount of US$700mn. The initial conversion price is HK$92.8163 per share. Assuming full conversion, the bonds will be convertible into 58,519,678 Shares, representing approximately 3.22% of the issued share capital of the company as at the date of this announcement and approximately 3.12% of the issued share capital of the company as enlarged by the allotment and issue of such conversion shares upon full conversion of the bonds.
Evergrande Property Services Group Ltd (6666 HK). Shareholders placed 270mn shares at HK$9.8, encashing HK$2.65bn. There will be another 190mn shares to be placed.