In today’s briefing:
- JD.com (JD): Plunged Following Indexes, But 4Q21 Result Worth Buying
- KOSPI 200 Rebalancing Screening: Few Noticeable Changes in the Race
- Li Ning (2331): SWF Exclusion
- Green Tea Group IPO Preview
- Ferretti Group Pre-IPO: Might Disappoint Again
- MercadoLibre Q4: Sustainable Alpha For The Long Term
- ICHI: Strong Earnings Momentum with Attractive Dividend Yield
- ILM: Positive Earnings Outlook in 2022-24
- COM7: 5G to Drive Strong Earnings Growth in 2022 and Beyond
- Komeda Holdings (3543): Solid February Wholesale Sales Amid Difficult Environment
JD.com (JD): Plunged Following Indexes, But 4Q21 Result Worth Buying
- Revenue grew rapidly by 23% in 4Q21 and we believe revenue will grow by 18% in 2022.
- We are not concerned about the zero net margin, because operating cash flows were still strong in 2021.
- We believe the stock has a price target of US$73, which is 18% over last closing price.
KOSPI 200 Rebalancing Screening: Few Noticeable Changes in the Race
- KOSPI 200’s June rebalancing review period is six months, from November 1 to April 30. So, we are now over 70% of the review period.
- The addition result is similar to the screening results last month. However, one stock was newly screened. Hana Tour Service sits at the filtering borderline within the Consumer Discretionary Sector.
- As for deletions, Bukwang Pharmaceutical is screened in the healthcare sector instead of Yungjin Pharmaceutical. S&T Motiv in the Consumer Discretionary Sector is additionally listed as a deletion candidate.
Li Ning (2331): SWF Exclusion
- Norges Bank excludes Li Ning (2331 HK) from its list due to poor labor practices/human rights issues.
- Today’s share price could be a telltale sign of the near-term prospect, down when the majority are up.
- Will the other international shareholders follow suit on dumping the shares because of the human rights abuse? Potentially yes.
Green Tea Group IPO Preview
- Green Tea Group (GT HK) received the Hong Kong Stock Exchange approval to launch its IPO on 7th March 2022, almost a year after filing its first application.
- The company expects to raise around US$100-200m via an IPO jointly sponsored by Citi and CMB International.
- Growth prospects look decent with plans to open 75-100 new restaurants each year. However, We aren’t excited about the IPO as the Company’s business model seems significantly weaker than peers.
Ferretti Group Pre-IPO: Might Disappoint Again
- Ferretti is a leading yacht builder based in Italy. The company is looking to raise up to USD 500 m via a Hong Kong listing.
- We look at the company’s key product segments, operating metrics, financials, and industry.
- We provide our quick thoughts on the industry, valuation, and our concerns.
MercadoLibre Q4: Sustainable Alpha For The Long Term
- Q4 net revenues: $2.1 bln (60.5% YoY and 73.9% YoY on an FX neutral basis). Growth was led by the Fintech division (+70% YoY).
- Gross profit came in at $853.2 mln (40.0% gross margin from 36.8% in Q4 2020) and Income from operations reached $23.3 mln (a loss of $25.1 mln in Q4 2020).
- FX losses were $56.9 mln mainly due to the buyback of shares in Argentina. The Net loss was $46.1 mln equal to a negative EPS of $0.92.
ICHI: Strong Earnings Momentum with Attractive Dividend Yield
- We reiterate our BUY rating for ICHI with a target price of Bt13.0 based on 25xPE’22E, the five-years average trading range and close to Thailand consumer staples.
- We expect strong earnings momentum to continue to grow both YoY and QoQ in 1Q22 and continue in 2Q22 from high season quarter.Currently,ICHI trading at 20xPE’22E cheaper than its five-years
- We expect earnings to grow at CAGR of11%in the next three year to reach Bt742m by 2024 supported by launching new products and new markets expansion,as well as margin expansion
ILM: Positive Earnings Outlook in 2022-24
- Yesterday analyst meeting came out with a positive tone.We maintain BUY rating with a target price of Bt21.0, derived from 18xPE’22E,+1SD from three years average trading range or 50% discount
- We expect earnings to grow to Bt764m in 2024E or +19%CAGR (2022-24E) from -5%CAGR(2019-21), driven by 1) solid SSSG and online sales, 2) solid recovery in rental income
- To implement a more aggressive strategy after COVID-19, the management aims to expand 1-2 new stores per year from 2023 onwards.
COM7: 5G to Drive Strong Earnings Growth in 2022 and Beyond
- We upgrade COM7 to BUY and raise TP by 34% to Bt92.50 derived from 34.5xPE’22E (+0.25SD of 5-Yr trading average).Our rating reflects a positive outlook toward its strong potential growth
- We downgrade our target PE to 34.5xPE’22 (+0.25SD) from 39.0xPE’22 (+1SD) previously to reflect declining earnings momentum. We believe recurring earnings growth at CAGR of 45% over past two years
- We expect strong earnings growth in 2022 at +23% driven by strong iPhone 14 sales due to growing 5G device penetration.
Komeda Holdings (3543): Solid February Wholesale Sales Amid Difficult Environment
Komeda’s February same-store wholesale sales 97.2% vs. 2021, 102.9% vs. 2019
SSS vs. 2019 for food service companies: Omicron impact in February
Stock price trends for restaurant companies: Outperforming TOPIX despite downtrend
Before it’s here, it’s on Smartkarma
