Consumer

• We downgrade to HOLD rating from  BUY rating with TP unchanged at Bt43, derived from  DCF (WACC of 10% and TG of 2%), implying 28.6xPE’23. 
• The company reported a net loss of Bt44m in 1Q22 compared to net loss of Bt476m in 1Q21 and net profit of Bt152m in 4Q21 in line with our expectation.
• 1Q22 EBITDA doubled YoY but remained flat QoQ at Bt951m supported by strong YoY recovery of hotel performance benefitting from 1) Rebound of Thailand tourism 2) Continued strong operations.

• Yesterday analyst meeting came out in a positive tone. We maintain the HOLD rating with a target price of Bt27.0, derived from an SOTP methodology. Our TP implies 25xPE’22E
• Expect the 2Q22 earnings to improve both YoY and QoQ, on the back of continued oil sales growth  and healthy marketing margin.
• The 2H22 earnings should improve YoY from better sales growth, however oil marketing margin may prone to downside risk as the crude oil price continue to remain at high levels.

• Ancient proverbs dictate the pace of policy change in Japan. But, the first step has been taken 
• Investors should be watching for further relaxation of inbound tourist restrictions, particularly on the Chinese market 
• Out top pick on this thematic is MatsukiyoCocokara (3088 JP) . Tourists used to account for over 10% of sales, but there is more…

• ITC reported a healthy set of numbers in Q4FY22with Revenue of Rs 15,331Cr (our estimate – Rs16,205Cr), down 2.2%QoQ but up ~16.5% YoY, led by a strong 8% volume growth in Cigarettes (in line with our estimates).
• Gross Margins at 52.5% was 132bps lower YoY on account of unprecedented RM inflation
• Benign taxation, inexpensive valuations (20x FY24E EPS), 5% dividend yield makes us BUYers of the stock. Our TP is revised to Rs 295 (earlier Rs 280).

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• Maintain BUY call and MYR2.43 DCF-based TP
• Earnings and dividends below our expectations…
• … but worst likely over, in our view
• Maintaining earnings and dividends estimates

• Undemanding valuation and good dividend, BUY
• 1Q22 earnings recovery
• New orders to boost sales growth
• Profit growth seen despite high costs

1Q22 earnings recovered QoQ to THB259m (+44% QoQ, -19% YoY). We expect new orders to help fuel 2022E sales growth of 6.5% YoY. While higher steel costs will initially squeeze gross profit margins, as it takes 3-6 months to hike prices, we expect only a dip in GPM. We forecast FY22 earnings to hit a new high of THB1.032b (+8% YoY). We think SAT’s valuations are undemanding at 7.6x 2022E P/E and 1x P/BV, with a healthy THB3.5b cash on hand. It offers a good dividend yield of 8.6%. Our THB25.50 TP is based on 10-yr average forward P/E of 10.3x. Maintain BUY.

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• Maintain BUY with a tad lower TP of MYR5.43 (-1%)
• 1Q22 unlikely to be better QoQ for RWLV, we opine
• 2Q22 likely to be a lot better for RWLV, in our view
• Vegas Loop likely to be a boon for RWLV, we gather

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• On 23rd Dec 2021, Tencent declared a special dividend in the form of distribution in specie of shares of JD.com, making Prosus the third largest shareholder with a 4.2% stake.
• The actual settlement only happened on 25th Mar. On that day, the bulk of the stock that Tencent distributed moved into CCASS with the exception of shares held by Prosus.
• In this note, we talk about the shareholding pattern and increase in shares held in CCASS.

• Yamaha’s 1QFY22 was weak with revenue of ¥482bn (-1.5% vs. consensus), and OP of ¥40.1bn (-17.3% vs. consensus). 
• The company’s FY22 guidance remained unchanged projecting ¥2,000bn in revenue (-2.0% vs. consensus) and OP guidance of ¥190bn (-4.5% vs. consensus). 
• Beating guidance significantly will now be difficult without price hikes but valuations are too cheap to ignore.

• Q1 22 operating figures are better than the smaller peers although not exactly beating Anta. 
• Launching the cafe to boost SSSG post-COVID-19 is a positive strategy. 
• Its valuation is currently trading below its historical highs . Turn positive on Li Ning (2331 HK) .

• Convenience stores in Japan aren’t known for their fashion prowess although most sell the odd sock and underwear.
• FamilyMart Co Ltd (8028 JP) sees an opportunity to both expand sales categories and increase margins with higher value fashion basics supplied by its new parent Itochu Corp (8001 JP).
• Itochu is a leading fashion supplier and has created a hit product range for Familymart as well as another in cosmetics.

• Taste Gourmet Group (8371 HK) held a webinar with Smartkarma on the 17th of May, highlighting the sharp and swift recovery of F&B in Hong Kong. 
• Post 19th May, eight people can dine in till midnight (vs. four). With mid-May revenue tracking 109% of June 2020 (restrictions were fully relaxed), recovery should be better than expectations.
• Despite the 13% move yesterday, the stock is still cheap at 5.9x PE FY23 earnings and an 8-10% dividend yield (with a potential for further upgrades). 

• In a surprising move, Dongwon Industries announced that it will listen to the demands of the minority shareholders and change the merger ratio with Dongwon Enterprise.
• This is likely to have a positive impact on Dongwon Industries since it boosts the value of Dongwon Industries’ minority shareholders at the expense of controlling shareholders of Dongwon Enterprise.
• The merger price of Dongwon Industries will be raised from 248,961 won to 384,140 won (reflecting net asset value). The merger ratio will be adjusted from 1:3.8385530 to 1:2.7023475.

• We speak to channels across West, North and South to understand the 2W demand environment 
• Mid segment is still not seeing recovery, premium and lower end segment is stabilising / doing relatively better. 
• Restoration of supplies and aggressive marketing strategies can aid volume recovery for TVS Motor (TVSL IN) and Eicher Motors (EIM IN) 

• DCF valuation now at $44.51 indicating stock could be 24% undervalued here.
• Sentiment on Las Vegas asset sale has turned negative as to timing as some investors believe it was hasty given the recovery of the Vegas market.
• Strong balance sheet provides long term solvency with current ratio of 2.1 as rumors of China lockdown easing persist since last week.

• Analyst meeting came out with positive tone regarding 22E outlook.We maintain BUY rating with TP Bt4.20 derived from DCF valuation (WACC=7% & Terminal growth= 2%) implying 10% discount to 23.1xPE’23.
• The company reported net loss of Bt313m in 1Q22 compared to net loss of Bt492m in 1Q21 and net loss of Bt246 in 4Q21 in line with our expectation.
• Excluding extra ordinary items, the operational losses declined YoY and QoQ to Bt313m since revenue almost doubled YoY  and increased 4% QoQ to Bt646m after bottoming out in 3Q21.

• Leapmotor (LM) aims to raise around US$1bn in its Hong Kong IPO. LM is a smart EV company based in China, founded in 2015.
• It focuses on the mid- to high-end segment in China’s NEV market with a price range of RMB150,000-300,000. As of end FY21, it had delivered a total of 52,832 cars.
• In this note, we talk about the not so positive aspects of the deal.

• There are 22 deletions for the MSCI Japan Index at the May SAIR. The changes were expected and there is large short buildup on quite a few of the stocks.
• Over the last month, the largest increase in shorts as a percentage of passive selling was on Mercari Inc, Ryohin Keikaku, Tokyo Century Corp, Sohgo Security Services, Pola Orbis Holdings.
• The deletions have underperformed the TOPIX by 22% over the last 6 months and by 10% over the last two months. Position for a bounce post implementation.

• Tabcorp Ltd (TAH AU) will soon spin out its Lottery and Keno business, to be called The Lottery Corp (TLC AU). TAH shares go ex-TLC on 24 May.  
• The question is where do they trade. What is in the price? What is not? What are the potential index implications?
• This insight provides a grid of index implications and pro-forma valuations (EV/EBITDA, PER, Dividend Yield) for each and both and the combined entity.

• Besides as nationalistic consumption play, Haier Smart Home (6690 HK) also offers attractive investment theses with bright growth prospects. Despite share price rebound, valuations are still not yet reflecting fundamentals.
• The surge in demand for refrigerators and freezers during the pandemic-led lockdowns has boosted HSH’s business in 4M22 while it will also reap benefits from Rmb depreciation.
• The government’s support of healthy development of residential real estate market will be positive towards smart home appliance demand which HSH is set to gain from its leadership position. 

• JD will continue to close its unprofitable minor businesses in following quarters.
• The growth rate of total revenue slowed down in 1Q21 due to weak demand of home appliance.
• We believe JD has a significant upside despite that the revenue growth will continue to slow down.

• Asahi Group Holdings (2502 JP)’s 1Q22 OP of ¥9.0bn from ¥496.9bn revenue was significantly below the consensus OP of ¥34.0bn from ¥489.4bn revenue.
• Yet the company maintained its aggressive 2022 guidance, which expects domestic beer volume growth while prices are scheduled to increase by 6-10%.
• We don’t find this estimate credible, especially given that Asahi generates most of the domestic revenue from the price-sensitive high malt beer segment.

• Last week analyst meeting came out with neutral tone.We reiterate our BUY rating for CRC with a target price of Bt43.0,based on DCF (WACC of 8.2% and TG of 2%)
• Management maintained its key 2022 financial guidance. CRC targeted 2022 sales growth of 15%-20%YoY, mainly from fashion business and targeted GPM retail sales to expend by 100-120bps YoY.
• •CRC showed three measures to mitigate the effect from uncertainties under global issue such as(1)cost optimization by controlling OPEX growth to not be higher than 50% of total sales growth

• Following panic selling that we have outlined over the past month, we finally saw panic buying last Friday in the form of 92% upside volume on the NYSE.
• There is hope that this panic buying could signal a major bottom, but we still need to see more confirmation before declaring that the low is in.
• We are watching the Nasdaq 100 (QQQ) and the steep RS uptrends on Utilities (XLU) and Staples (XLP) for more confirmation that a major low is in place. Details below.

• The Netflix Inc (NFLX US) fall out has created a significant buying opportunity in Warner Bros. Discovery (WBD US)
• Warren Buffet’s purchases of WBD peer Paramount Global (PARA US) only serves to validate the buying opportunity in the much cheaper WBD
• Attributing a PARA-like value multiple to WBD’s Consensus 2023 EBITDA which is a little lower than management’s reaffirmed guidance, indicates a value up lift of 80% plus

• On May 16, Ohsho Food Service (9936, the company) announced FY3/22 full-year sales of 84.775bn yen (+5.1% YoY), OP of 6.959bn yen (+14.6% YoY), and RP of 13.024bn yen (+89.7% YoY)
• 4Q (Jan-Mar) OP was 1.938bn yen (+33.7% YoY; +6.0% QoQ), and OPM was 8.8% (7.2% in 4Q FY3/21; 8.2% in 3Q)
• The company’s guidance for FY3/23 is sales of 90.029bn yen (+6.2% YoY), OP of 7.516bn yen (+8.0% YoY), OPM 8.3% (+0.1ppt YoY) and RP of 8.627bn yen (-33.8% YoY)

• Aeon has finally published numbers on its e-commerce growth and performance.
• It has a ¥1 trillion target for FY2025 and while this is still a far off target, Aeon is making progress. 
• Digital sales have doubled in the past two years and Aeon is now well ahead of Seven & I which continues to fail to present a coherent e-commerce plan.

• Despite supply chain and material cost headwinds Mazda beat consensus FY OP estimates by 15% despite being in-line on revenue. 
• Guidance was also 17% above consensus but we think both should be ignored because guidance is being sandbagged and consensus remains clueless. 
• We expect sales volumes to beat Mazda’s guidance slightly and for OP generation to be ¥240-300bn rather than ¥120bn.

• Leading dairy and premium foods player Cisarua Mountain Dairy continued to demonstrate its resilience during 1Q2022 despite some omicron disruption, and rising pressure from raw materials.
• Growth will be driven this year through capacity expansion and a focus on expanding distribution channels, especially through general trade and Miss Cimory MCM. 
• Management remains confident in the growth outlook and will potentially raise prices in 3Q2022 to offset inflationary pressures although powdered milk prices have already stabilized. Top consumer staples pick.

• Honda 4QFY22 was mixed with revenue of ¥3,876bn (-0.7% vs. consensus) and OP of ¥200bn (+33.1% vs. consensus). 
• The company’s FY23 guidance was weak projecting just ¥16,250bn (-2.2% vs. consensus) in revenue and OP of ¥810bn (-15.1% vs. consensus). 
• Those numbers are laden with Honda conservatism, but we nevertheless foresee smaller potential beats by Honda than for peers.

• Yamaha Motors’ stock crashed 9% after a poor quarterly report
• However, there were a number of temporary issues impacting costs in the quarter. Management reiterated its guidance for the full year
• Given that demand for its marine engines and motorbikes remains on track, we think the stock is too cheap, trading below book value 

• Leapmotor (LM) aims to raise around US$1bn in its Hong Kong IPO. LM is a smart EV company based in China, founded in 2015.
• It focuses on the mid- to high-end segment in China’s NEV market with a price range of RMB150,000-300,000. As of end FY21, it had delivered a total of 52,832 cars.
• In this note, we talk about the positive aspects of the deal.

• IPAR reported strong demand for its fragrances in the first period even though the US Dollar strengthened against the Euro
• The first quarter performance was at the onset of the weakening of the Euro, but IPAR’s management asserted there has been no sign of demand abating
• IPAR’s stock has continued to underperform our expectations even though consensus estimates call for sales and earnings growth

• TUEM reported fiscal third quarter (March) results depicting how its business model looks when sales slowdown.
• The softness in sales was combined with TUEM getting full order placement from vendors when completion rates were running less than 70 percent in prior quarters
• TUEM announced a credit facility of $110 million, providing ample liquidity and flexibility heading into the holiday shopping season. It also removes one of the biggest overhangs on the stock

• On May 13, Fast Fitness Japan (7092, the company) announced FY3/22 results. Sales were 13.097bn yen (+17.3% YoY), and OP was 2.946bn yen (+28.4% YoY)
• The company’s FY3/23 guidance is for sales of 14.0bn yen (+6.9% YoY) and OP of 3.0bn yen (+1.8% YoY)
• The company announced its mid-term plan targets for FY3/25. The company aims for 18 bn yen in sales, 4bn yen in OP, and 1,400 stores

• Same-store sales for company-owned stores were 123.9% vs. April 2021 (108.1% for March), 743.9% vs. April 2020 (93.9% for March), and 102.7% vs. April 2019 (91.3% for March)
• Sales have been strong, as operating restrictions were lifted in late March. In particular, the Yakiniku division (Japanese BBQ) performed much better than in the pre-pandemic period
• The number of domestic company-owned stores at end of April was 365 (+5 MoM, +25 vs. end FY6/21).

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• Although we were more optimistic about FY22, we still see recovery backed by a very healthy momentum in Q1 2022 with 33% YoY systemwide sales (mid-teens ex-Potato Corner).
• EBITDA margins were weaker in Q1 2022 at 18.2% (with Jan/Feb 2022 restrictions), but management guided a sequential improvement QoQ and a 20-21% EBITDA margin for FY22. 
• The stock trades at 16.6x FY12 and 11.1x FY23 on more conservatively guided numbers. (see: Shakey’s Pizza: High Conviction Three Bagger, Management Call Provides Superb Guidance For FY22 )

• We estimate that the revenue growth will rise to 11.5% YoY in 4Q22 from 9.7% YoY in 3Q22.
• Freshippo is the store chain closest to the operation before the lockdown among all large retailers.
• We believe the stock has an upside of 27% for March 2023.

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• Demand holds reasonably well: Demand continued to hold strong across segments and regions.

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• Tata Motors reported cons. revenue of Rs784.4bn, down 11.4% YoY but up 8.6% QoQ.

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• On Friday, Wacoal Holdings (3591 JP) announced earnings, adoption of IFRS this year (US GAAP til now), dividends, a div hike and higher earnings this year, and a HUGE buyback.
• The buyback is for up to 5.5mm share (8.95% of shares) spending up to ¥10bn.
• Given the structure of the shareholder base, this opens up interesting possibilities.

• For the first quarter, 1 Main Capital Partners, L.P.
• (the “Fund’s) returned (11.4)% net of fees and expenses, according to the “Fund’s” quarterly results.
• The first quarter of the first year, the fund returned 11.

• Polen International Growth Composite Portfolio returned -13.94% gross and -14.17% net of fees, respectively, versus the -5.45% return of the MSCI All Country World ex-USA Index.
• The most significant detractors from performance included ICON, Evolution AB, and Sage Group.

• Aequitas Research puts out a weekly update on the deals that were covered by the team recently along with updates for upcoming IPOs.
• On the IPOs front, LIC’s lists tomorrow, while Delhivery’s bookbuild wasn’t great.
• There were no major placements this week, with even Air New Zealand failing to hold its deal price.

• For Asia Pacific, there are 48 adds/76 deletes across markets with the most changes in China and the highest net changes in Japan. We got 94% of the names right.
• Surprise names are MR D.I.Y. Group, AU Small Finance Bank, Guangzhou Automobile Group, Yunnan Botanee Bio-Technology, Westports Holdings, Indocement Tunggal Prakarsa, DiDi Global and Yantai Eddie Precision Mac-A.
• As expected, there are listing switches for Baidu (BIDU US), Bilibili Inc (BILI US), New Oriental Education (EDU US) and GDS Holdings (ADR) (GDS US). 

• Tabcorp Ltd (TAH AU)’s demerger to create two standalone companies listed on the ASX, The Lottery Corporation and New Tabcorp, was approved today.
• Subject to the scheme approved by the Court, the Lottery Corporation will trade on a deferred settlement basis on 24 May and a normal settlement basis on 2 June.
• Peer derating due to the market sell-off results in a lower SoTP valuation of A$5.62 per share, which is still a 13% upside to the last close.

• JD is facing a severe logistics problem due to the lockdowns in many cities of China.
• We believe JD is trying to secure its revenue no matter how large the fulfillment expense is.
• We believe the stock has a downside of 22% for the year end 2022.

• Coupang (CPNG US)’s 1Q22 results were mixed with revenue 2.5% below consensus but an operating loss of $205.7m was $94.3m lower than consensus through a 3% gross margin improvement.
• The company’s comments on the gross margin outlook are a bit concerning and make us think that the improvement in Q1 was just a one-off.
• Coupang is fundamentally expensive on EV/GMV+Retail Sales. With selling pressure from Softbank and a significant downside to revenue estimates, we remain Short Coupang.

• Subaru 4QFY22 was relatively strong compared to previous quarters with revenue of ¥737bn (+4.4% vs. consensus) but material prices pushed OP down to ¥13.3bn (-48.6% vs. consensus). 
• The FY23 guidance was relatively weak at just ¥3,500bn in revenue (+4.5% vs. consensus) and OP guidance of ¥200bn (-1.0% vs. consensus). 
• However with the yen where it is we believe Subaru is on track for a return to double digit OPM and OP of ¥370-450bn.

• Nissan generated total revenue of ¥2,271bn (-12.0% vs. consensus) and OP of ¥56bn (+33.3% vs. consensus) in 4QFY22. 
• This enabled the company to hit ¥247bn in OP vs. our start of year projection of ¥250bn (when guidance was for breakeven). 
• Guidance looked superficially weak at ¥10trn in revenue (-0.4% vs. consensus) and ¥250bn in OP ¥250bn (-21.1% vs. consensus) but margin assumptions are silly and we expect ¥500bn in OP. 

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• EV Startup Canoo confirmed this week what most market participants had been anticipating for months.
• Management at Canoo warned investors that it might not have enough cash to ramp up operations and make it to the start of production.
• Canoo isn’t the only one who has issued a going concern warning over the last few months.

• The market has zoomed in on the flat operating profit growth forecast and the stock is 4% lower post results
• As long as the income statement is not bleeding red ink (and it isn’t) we are more focused on the balance sheet and shareholder returns
• Nikon’s stock price is now offering a total shareholder return of 8%, while trading below book value. 

• FPA Queens Road Small Cap Value Fund returned -3.3% in the first quarter of 2022.
• First quarter performance was negatively impacted by the Fund’s overweight position in the technology sector.
• The Fund’s overweight position in technology sector also negatively impacted the Fund’s first quarter performance.

• Toyota results were weak missing by 2.9% and OP by 8.5% due to weak volumes, material costs and some evidence of pulling forward costs. 
• Guidance was for a sharp YoY decline from ¥3trn in OP to just ¥2.4trn but this assumes limited price hikes and ¥115/$ so… who cares? 
• We expect the weak yen, rising hybrid penetration and volume recovery to drive OP into the ¥3.6-4.0trn range.

• EV start-up Faraday Future (FF) will be de-listed by the Nasdaq if it fails to file its 2021 annual report & Q1 2022 results by May 16th.   
• FF has no revenues yet, but plans to start production in Q3. Cash as of March-end was only $273m vs cash burn of $181m & payment obligations of $193m.
• FF’s growth strategy is risky & relies on the ultra-luxury car market, which is peaking. Without financing, FF may struggle to survive this year.    

• Beenos Inc (3328 JP) results beat with revenue at ¥7.2bn (+4.6% vs consensus) and OP of ¥431m (+21.4% vs consensus).
• FY22 guidance was raised across Beenos’ core e-commerce businesses due to the favourable impact of the yen depreciation on overseas demand and changes to shipping methods and rates.
• What caught our eye the most was Beenos’ decision to gradually realise gains from its VC investments.

• Toyota is famous for conservative guidance, but today’s FY3/23 estimates of a 22% decline in pretax profit raised some eyebrows. Raw materials & logistics are to blame. 
• Adjusting for various conservative assumptions by Toyota for FY3/23, flat profits are possible, but margin deterioration appears unavoidable.  
• On flat profits in FY3/23, the 12x PER & 5.5x EV/EBITDA are not particularly cheap. Toyota is in the “Guidance Dog House” until it can produce a significant beat. 

• The Nikkei Shimbun published an article titled “Matsukyo Cococala & Co. 6 Months After Inauguration, Integration Effects Begin Here,” and I have considered the issues discussed in that article.
• The integration effect will raise the profit, but further improvement is less likely without recovery in same-store sales, as the profit margin for prescription will decline amid intensifying competition.
• Tsuruha and Matsukiyo Cococala, which belong to group (C) where family members are leading the company while the family’s shareholding has been reduced to less than 20%, are facing difficulties.

• On 5th May 2022, Thai Beverage announced that BeerCo will resume its Proposed Spin-off Listing. This time the company is aiming to raise less than US$1bn, as per media reports.
• We have looked at various aspects of the deal earlier, as the company had tried to spin-off BeerCo in 2021 as well before finally calling it off in April 2021.
• In this note we undertake a peer comparison and talk about valuations

• Suzuki’s 4Q revenue beat consensus by 7.2% but OP missed by 8.9% as a result of raw material costs and a sudden surge in depreciation and R&D. 
• Guidance was typically conservative at revenue of ¥3,900bn (-4.1% vs. consensus) and OP of ¥195bn (-28.9% vs. consensus). 
• We believe margin assumptions are too conservative, as are assumptions for volumes and JPY/INR.

• Silver Ring Value Partners serves investors in the State of Massachusetts.
• The portfolio’s market value is roughly unchanged thus far in 2022 despite an environment in which both stocks and bonds have begun to experience substantial declines.
• The Company offers portfolio management, financial planning, and trading services.

• Starbucks continues to demonstrate a robust recovery in its domestic territory, with International (Ex-China) playing catch up.
• The focal point of Q2 earnings, however, was the temporal deterioration of the China business.
• Plagued so badly by zero-covid policy closures, the contagion from the China arm of the business resulted in Starbucks withdrawing guidance for the remainder of the year.

• The Mittleman Global Value Equity Fund (MGVEF) declined 13.1% in Q1 2022.
• MIM believes that the businesses in which it has invested retain the features necessary to endure and surmount transitory setbacks.
• The company is an SEC-registered investment adviser that provides discretionary portfolio management to institutional investors.

• A release showed up on TDNET last week that Sony Corp (6758 JP) had completed its ¥200bn 25mm share (2.02%) buyback program announced 28 April 2021. 
• The details showed they had actually bought back 8.2mm shares spending only ¥97bn, despite the shares trading below T-1 Announcement Date Price for four months straight. 
• Today, with earnings, SONY announced a NEW buyback. ¥200bn, 25mm shares, 2.02%. Same as last year. 

• Sony results were in-line with revenue of ¥9.92trn barely below ¥10trn consensus and OP of ¥1.20trn also just below consensus at ¥1.21trn. 
• Guidance was interesting however as Sony guided for revenue of ¥11.4trn and a slight decline in OP. 
• We believe that is either extreme conservatism or potentially a sign of very aggressive and interesting investment plans.

• In a regulatory filing last Thursday, Thai Beverage (THBEV SP) said that it had restarted its Beer Unit IPO at a much lower valuation than before.
• Based on the current NAV discount of 13%, we think this is already priced-in Thai Bev’s share price.
• Nonetheless, a 13% NAV discount could be too light in our opinion and there could be downside potential to the NAV discount following the completion of the Beer Unit IPO.

• We forecast 8 potential inclusions to the All-World Index and 11 potential inclusions to the All-Cap Index at the FTSE June QIR. Most are high probability inclusions.
• LG Energy Solution (373220 KS), Mitratel (MTEL IJ), Adani Wilmar (AWLTD IN), Kakao Pay (377300 KS) and FSN E-Commerce Ventures (Nykaa) (NYKAA IN) are expected to have the largest passive inflows.
• Local institutions have been selling LG Energy Solution (373220 KS) and Kakao Pay (377300 KS) over the last few weeks while retail investors have been buyers.

• CJ Cheiljedang (097950 KS) reported better than expected earnings in 1Q 2022 and we continue to have a POSITIVE view of this stock.
• Bio business sales increased by 39.3% YoY to 1.08 trillion won and operating profit jumped by 128% YoY 175.8 billion won in 1Q 2022, driven by strong demand for lysine. 
• We also like a pair trade between CJ Cheiljedang and CJ Logistics at current prices. We recommend on going long on CJ Cheiljedang and going short on CJ Logistics.

• On 5th May 2022, Thai Beverage announced that BeerCo will resume its Proposed Spin-off Listing. This time the company is aiming to raise less than US$1bn, as per media reports.
• We have looked at various aspects of the deal earlier, as the company had tried to spin-off BeerCo in 2021 as well before finally calling it off in April 2021.
• In this note, we talk about the recent updates for BeerCo.

• For the first quarter of 2022, Aristotle Atlantic’s Large Cap Growth Composite posted a total return of -9.61% gross of fees.
• We have also entered a period of increased geopolitical risks that will add to market volatility, according to Aristotle Atlantic’s Large Cap growth Composite.

• For the first quarter of 2022, Aristotle Atlantic’s Core Equity Composite posted a total return of -6.79% gross of fees.
• The outlook for the U.S.
• large cap equity market for the balance of 2022 will be impacted by the pace and size of tightening by the Federal Reserve.

• For the first quarter of 2022, the Aristotle Small/Mid Cap Equity Composite generated a total return of -4.38% gross of fees.
• We remain optimistic about the prospects for small/mid cap equities going forward, according to the company.
• The Aristotle Small and Mid Cap Equity composite generated atotal return of 4.

• MMC results beat with revenue at ¥623bn (+4.2% vs. consensus) and OP of ¥31.4bn (+38.4% vs. consensus). 
• FY23 guidance was also above consensus with revenue of ¥2,290bn (+1.6% vs. consensus at +% YoY) and OP of ¥90bn (+4.7% vs. consensus). 
• We believe OP guidance is somewhat conservative as volume growth and a weak yen should more than offset raw material costs.