In today’s briefing:
- Selling Shovels in a Gold Rush: SaaS Stocks Cashing in on Emissions Reporting Rules
- PT Nippon Indosari Corpindo (ROTI IJ) – Adding Chocolate Spread and UHT Milk to the Mix
- SoCar Pre-IPO – Aiming to Become an All-In-One Mobility Solution Provider
- Zomato Blinkit Deal: Stains Get More Murky
- Third Time’s the Charm
- Ryohin Keikaku (7453) | Oops Something Went Wrong
Selling Shovels in a Gold Rush: SaaS Stocks Cashing in on Emissions Reporting Rules
- Notwithstanding bright spots and positive long-term outlook, the ESG gold rush has created an acute state of chaos. Regulatory flux. Rampant greenwashing. ESG litigation. Elon and S&P.
- The silver lining? New ESG-related investing opportunities emerging from all the chaos; stocks poised to benefit, regardless of who else wins or losses. The new shovel-sellers, as it were.
- One large opportunity is driven by new greenhouse gas (GHG) reporting regulations, specifcally leading GHG emissions software-as-a-service (SaaS) and platform-as-a-service (PaaS) stocks.
PT Nippon Indosari Corpindo (ROTI IJ) – Adding Chocolate Spread and UHT Milk to the Mix
- PT Nippon Indosari Corpindo (ROTI IJ) recently announced that it will launch two new product lines away from bread including Sari Roti chocolate spread and UHT Milk.
- Investment in these products will be relatively small but it will increase the visibility of Sari Roti brands on the shelves of modern retail adding to its bread and cakes.
- Wheat prices have stabilised recently but ROTI may consider raising prices further after assessing June performance. 2Q2022 performance has been stronger than expected post-Lebaran, as demand improved with greater mobility.
SoCar Pre-IPO – Aiming to Become an All-In-One Mobility Solution Provider
- SOCAR (403550 KS) is looking to raise up to US$159m in its upcoming Korea IPO.
- SoCar is a Korean car sharing business which aims to become an all-in-one mobility solutions provider beyond car sharing, with approximately 80% domestic market share in the car sharing space.
- As of May 2022, SoCar has over 8m subscribers and over 10m SoCar app downloads. However, the firm remains loss-making with no signs of being profitable in the near/medium term.
Zomato Blinkit Deal: Stains Get More Murky
- Zomato (ZOMATO IN) ‘s announcement to acquire Blinkit (BCPL) for all-stock deal worth INR 44.5 bn has rattled the market price of the stock in the trading sessions that followed.
- While the management focuses on the cost synergies and the bigger picture, the acquisition has left several doubts, including the valuation and cash burning nature of Blinkit.
- More importantly, it is the corporate governance that should be looked at, especially since this is an indirect RPT, as mentioned in our earlier report Zomato’s Investments Game: Stain on Governance.
Third Time’s the Charm
- De-SPACs have wiped off a combined $150 billion in market capitalization since the height the bubble back in February 2021.
- One company that has bucked the trend of the Downward Spiral in valuations is Bowlero.
- Bowlero certainly has a lot of qualities that separate it from most De-SPACs.
Ryohin Keikaku (7453) | Oops Something Went Wrong
- Ryohin Keikaku (Muji) slashed its earnings guidance for FY8/22 by 32%
- The retailer is facing a number of headwinds, only some of which are industry wide
- We remain bearish as Muji lacks the pricing power to push through higher input costs
Before it’s here, it’s on Smartkarma
