Consumer: Giordano International, Tesla Motors, Kirin Holdings, Crown Resorts, Haier Smart Home Co Ltd, Ryohin Keikaku, Monogatari Corp, PTG Energy PCL, Bharat Forge and more

• Giordano International (709 HK) entered a trading halt pending the release of an announcement under the Hong Kong Code on Takeovers and Mergers on 8 June.  
• It is likely that the family of Cheng Yu Tung (the largest shareholder with a 24.4% stake) could either agree to sell into the offer or roll over its shares.
• The median trailing EV/EBITDA multiple of the precedent transactions is 5.1x, implying a privatisation price of at least HK$2.46 per share.

• Hyundai’s IONIQ 5 surpassed Tesla’s Model 3 within a year of its launch. Hyundai’s IONIQ 5 was the best selling EV in Korea in January to May 2022.
• Tesla EV sales in the first five months in Korea slipped to number three from its number one position in the same period last year. 
• Hyundai Motor is expected to introduce IONIQ 6 later this year. However, Elon Musk mentioned that Tesla will not launch any new models until 2023 at the earliest

• The Holdco trade involving Kirin Holdings (2503 JP), which we suggested last year has generated over 33% during the last 12 months against Topix’s 3.8% and Nikkei’s 2.6%.
• We expect additional gains from this Holdco trade mostly alongside improvements in the core-business EBITDA expectations.
• In addition, Kirin is looking outright positive with multiple catalysts assisting Kirin to turn around price performance.

• Into the final straight. Victora and NSW have signed off on Blackstone’s proposed acquisition of Crown Resorts (CWN AU).
• Gaming regulatory approval from Western Australia remains outstanding, but this is done. Crown’s conduct in WA was no better – or worse – than it was in Victoria and NSW.
• Trading super tight with potentially another month or so until payment.

• Haier Smart Home Co Ltd (6690 HK) sees mid-to-high single digit revenue growth for 5M22; and with many cities out of lockdown now, the re-acceleration trend is gathering pace. 
• China market experienced lesser cost pressure than overseas, with its gross margin expanded on a YoY basis. Cost containment measures should help to preserve flat YoY overseas margin.  
• Reliance on property market has reduced, with growth mainly comes from upgrade demand. Its high-end brand Casarte stays as a growth engine with 5M22 revenue recording double-digit increase. 

• Muji’s historically low valuations are no reason to get excited. We think normalisation is still several quarters out
• China growth was the key valuation driver, but Muji faces continued headwinds from sporadic lockdowns and weak foot traffic
• Rising costs are new problem for Muji in the domestic market. The company will remain behind the curve on price hikes, leading to weaker margins

• Same-store sales for company-owned stores were 141.7% vs. May 2021 (123.9% for April), 227.3% vs. May 2020 (743.9% for April), and 110.5% vs. May 2019 (102.7% for April).

• May sales were extremely strong, and the impression is positive.

• The company does not plan to revise prices for Yakiniku King. The company believes that it can control the cost of sales ratio by optimizing the menu mix, adjusting the portion volume per dish, improving the handling of ingredients, and enhancing the side menu

• The 2Q-2H22 outlook looks promising, thanks to solid oil sales volume growth owing to economic recovery from COVID grip and revamping tourism activities. The improving oil marketing margin 
• Recovering MM should drive 2Q22 earnings : We expect the 2Q22 earnings to improve QoQ on the back of better sales volume and marketing margin.
• The oil marketing margin should pick up to Bt1.7/liter in 2Q22(+3% QoQ)and remain at 1.7-to-1.8/Liter range in 2H22.From management guidance, the oil sales volume inched up 5% MoM and YoY

Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.