In today’s briefing:
- Li Auto’s US$2 Billion ATM Offering
- Tassal And Cooke In Salmon Stand-Off
- Miniso Dual Primary Listing: Positive on Momentum, Valuation and Acceleration of Global Expansion
- Rakuten (Neutral) – A Surprising Win with Goto Although Its Mobile Challenges Remain
- Mahindra & Mahindra – New Model Scorpio-N Unveiled at Competitive Pricing
Li Auto’s US$2 Billion ATM Offering
- Li Auto Inc. (LI US) has announced an ATM offering to sell US$2.0 billion of ADS. The offering appears to be timed to take advantage of the share price rally.
- Li Auto (2015 HK)‘s strong balance sheet and cash generation do not necessitate the need for the offering. The impending launch of the Li L9 underpins its prospects.
- However, with the recent rally, the shares are at best fully valued at the last close. We prefer remaining on the sidelines for now.
Tassal And Cooke In Salmon Stand-Off
- Tasmanian salmon producer Tassal (TGR AU) has rejected Canadian aquaculture play Cooke Inc’s $4.85/share offer – its third proposal and a 42.2% premium to the undisturbed price.
- Cooke commenced buying shares in Tassal around ten days ago and has built a 5.4% stake.
- Tassal considers the Offer does not reflect the fundamental value of the business and has determined not to engage with Cooke.
Miniso Dual Primary Listing: Positive on Momentum, Valuation and Acceleration of Global Expansion
- MINISO Group Holdings (MNSO US) rallied more than 70% this month before receiving approval for a $100m placement on the Hong Kong Stock Exchange yesterday (27th June 2022).
- The company has no requirement for extra cash and this Hong Kong listing is mostly a precautionary measure against a potential delisting of Chinese companies from US markets.
- Overall, we are positive about this placement on account of momentum, reasonableness of current valuation and positive reception of what we would regard as an intention to accelerate expansion.
Rakuten (Neutral) – A Surprising Win with Goto Although Its Mobile Challenges Remain
- Rakuten’s stake in Goto is worth ¥13bn and the IPO of the latter in April and the subsequent value re-rating could provide some (very) modest offset to operating losses
- Our forecasts remain unchanged from our mid-month update although we would flag up potential electricity resale upside for Rakuten and the sector from utility resale
- We have lowered our price target to ¥1,000 from ¥1,150 but uncertainty over the timing of a Bank listing, mobile recovery and return to profitability keep us cautious
Mahindra & Mahindra – New Model Scorpio-N Unveiled at Competitive Pricing
- Scorpio-N manual transmission is priced competitively at Rs1.2-1.9mn for petrol versions and Rs1.25-1.95mn for diesel versions.
- It is built on the new 3rd generation body-on-frame platform and has no carryover components from Scorpio Classic.
- The petrol engine generates 149KW of power and 380NM of torque.
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