In today’s briefing:
- DIDI Decides To Delist – Now It Gets Messy
- DiDi to Vote on US Delisting on 23 May
- Euglena (2931 JP) | Flying High on Sustainable Aviation Fuel
- Beenos Valuation: SOTP Suggests Plenty of Upside Potential
- Rakuten (4755 JP) | Time to Cover the Shorts
DIDI Decides To Delist – Now It Gets Messy
- The company was told a year ago that it had data problems. It was then told in June it had serious data problems and was given 15 days to fix.
- It did not. It listed itself, against the wishes of the regulators. Then it got in serious hot water. And it has only been getting hotter.
- A hoped-for HK Listing By Introduction was nixed 5 weeks ago. Now the Company is simply going to delist to try to solve its problems behind closed doors before relisting.
DiDi to Vote on US Delisting on 23 May
- DiDi Global (DIDI US) will hold an EGM on 23 May to vote to delist the ADS from the NYSE. The shares will not be listed on another exchange before delisting.
- Due to the regulatory restrictions, DiDi is losing market share and pricing power to competitors in China. The 4Q21 results were poor.
- Directors and key pre-IPO investors together account for 48.2% of outstanding shares, suggesting that the ordinary resolution will pass.
Euglena (2931 JP) | Flying High on Sustainable Aviation Fuel
- Euglena could be the most important sustainable aviation fuel company in Japan and a world leader in using micro algae as a feedstock
- The company looks set to become the largest provider of SAF in Japan by 2025
- Assuming the company can hit its commercial SAF production target, we think the stock could easily double
Beenos Valuation: SOTP Suggests Plenty of Upside Potential
- Leading up to the GoTo IPO, Beenos Inc (3328 JP) shares rallied more than 80% to ¥2,364 per share, possibly expecting substantial listing gains from the “conservatively” priced GoTo IPO.
- GoTo (GOTO IJ) opened around 18% above its IPO price on 11th April 2022, but Beenos fell by around 7% and 8% on 11th and 12th April 2022 respectively.
- It may be too late to ride the GoTo IPO rally, but exposure to a high-profile company like GoTo brings visibility, resulting in a much narrower NAV discount.
Rakuten (4755 JP) | Time to Cover the Shorts
- We have a non-consensus Bullish call on Rakuten and see over 60% upside to the share price
- The key driver will be a recovery in the Mobile Business
- We expect losses to gradually improve as roaming fees and customer acquisition costs start to decline
Before it’s here, it’s on Smartkarma
