In today’s briefing:
- Ausnutria (1717 HK): MGO Imminent As NDRC Approval Obtained
- MergerTalk: Why Playing the Pending Discovery/WarnerMedia Merger Through AT&T Could Pay Dividends
- Motherson Sumi Systems: Mega-Restructuring to Materialise, New SAMIL Arrives
- Huitongda (汇通达) Pre-IPO – PHIP Updates and Competitive Landscape
- Torikizoku Holdings (3193): December Sales; Implications of Infection Spread
- Komeda Holdings (3543): December Wholesale Sales Strong; Food Service Industry Update
Ausnutria (1717 HK): MGO Imminent As NDRC Approval Obtained
- China’s NDRC approval, a key condition to the Share Purchase Agreement, has been obtained. SAMR clearance had previously been fulfilled, leaving MoC and SAFE approvals yet to be secured.
- The turnout at Ausnutria Dairy Corp (1717 HK)‘s recent EGM would suggest there is a sufficient number of shares for the MGO to turn unconditional.
- Provided the Offer becomes unconditional, trading at a gross/annualised spread of 4.4%/22.1%, assuming late 1Q22 completion.
MergerTalk: Why Playing the Pending Discovery/WarnerMedia Merger Through AT&T Could Pay Dividends
- The prospect of significant value creation for Discovery, Inc. (DISCK US) shareholders is much closer to realization with its merger with WarnerMedia merger on track to complete by for mid-2022.
- A conservative target share price target of $41 for WBD offers greater than 40% upside from the prevailing share prices of DISCA and DISCK.
- Purchasing AT&T shares at prevailing levels could effectively give investors a ~65% to 75% cheaper option to purchase WBD shares than currently through DISCK .
Motherson Sumi Systems: Mega-Restructuring to Materialise, New SAMIL Arrives
- Motherson Sumi (MSSL) primarily serves global PV & CV industry with a history of successful turnarounds in acquisitions and inorganic-led growth.
- MSSL’s stock price has grown at ~13% CAGR from ~Rs 145 levels in January 2017, widely outperforming the Nifty Auto index
- We value the combined entity post-merger of erstwhile SAMIL into MSSL at Rs 270/share on SOTP basis
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Huitongda (汇通达) Pre-IPO – PHIP Updates and Competitive Landscape
- Huitongda (1566215D CH) is looking to raise up to US$500m in its upcoming Hong Kong IPO.
- While the numbers from the growth of member stores look promising, it did not translate to stronger revenue from member stores and HTD did not give a clear explanation.
- In this note, we look at PHIP updates and competitive landscape.
Torikizoku Holdings (3193): December Sales; Implications of Infection Spread
- December sales data: Recovery continues, but still weaker than non-izakaya restaurants
- The number of stores at the end of December was 615 (unchanged MoM). The number of directly-owned stores was 384 (+1 MoM)
- Possible expansion of areas with shortened business hours requirements
Komeda Holdings (3543): December Wholesale Sales Strong; Food Service Industry Update
- December data for Komeda HD: Wholesale sales continues to recover
- SSS for restaurant companies: December shows marked differences in competitiveness
- The average one month return on the stock prices of the 53 food service companies listed on page 5 was -2.9%
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