In today’s briefing:
- KOSPI200 Lockup Release Events: LG Energy Solution, HYBE, Lotte Chilsung, & Krafton
- Komeda Holdings (3543): Solid Wholesale Sales in May; Accelerating Overseas Expansion
- La Opala RG – Positive Demand Outlook; Bright Prospects for Borosilicate
- Torikizoku Holdings (3193): Izakaya Earnings No Longer Tricky but Predictable
KOSPI200 Lockup Release Events: LG Energy Solution, HYBE, Lotte Chilsung, & Krafton
- HYBE and LG Energy have overhang risks. 2% of SO for HYBE and 3% for LG Energy will potentially hit the market. These are 4.46x and 19.89x ADTVs, respectively.
- LG Energy is awaiting FTSE inclusion (June 17) and Solactive ETF inclusion (end-October). Still, from a timing perspective, these passive inflows are unlikely to offset the July 27 lockup release.
- Their short interest is 1.63% (HYBE) and 0.46% (LG Energy), respectively. So, we need to consider a position buildup when their short interest shows significant upside movements.
Komeda Holdings (3543): Solid Wholesale Sales in May; Accelerating Overseas Expansion
- Wholesale sales to franchisees (same-store basis) in May were 109.0% vs. May 2021 (103.7% for April), 146.1% vs. May 2020 (195.1% for April), and 104.3% vs. May 2019 (103.6% for April)
- The number of stores at the end of May was 966 (flat MoM). Komeda opened one new store in Japan.
- Menu prices were raised on April 1 for company-owned stores and on April 28 for franchise stores. Wholesale price hikes are scheduled in 2H.
La Opala RG – Positive Demand Outlook; Bright Prospects for Borosilicate
- Strong underlying demand, shift towards premium range and rising salience of e- commerce:
4QFY22 revenue was well above pre-covid level and similar momentum has continued in 1QFY23, led by growth across channels
- LOG has an edge in Borosilicate despite being a late entrant: Borosilicate capacity is expected to be commissioned in 2HFY24 and should start contributing to revenue meaningfully from FY25 (peak revenue potential of Rs1.25bn).
- Revamping distribution strategy: Appointment of dedicated persons to lead the channels has led to improvement overall total distribution reach (19,000 outlets compared to 14,000 a couple of years ago) as well as its quality.
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.
Torikizoku Holdings (3193): Izakaya Earnings No Longer Tricky but Predictable
- Sales were 13.260bn yen (-6.9% YoY), OP was -2.583bn yen (vs. -2.588bn yen in 1-3Q FY7/21), and RP was 1.817bn yen (vs. -2.027bn yen in 1-3Q FY7/21)
- RP includes subsidy income of 4.404bn yen (vs. 389m yen in 1-3Q FY7/21). Same-store sales growth for company-owned stores was -6.6% YoY.
- On April 28, the company raised the price of all dishes from 327 yen (298 yen without tax) to 350 yen (319 yen without tax) at all Torikizoku stores
Before it’s here, it’s on Smartkarma
