In today’s briefing:
- Miniso: Genuinely Undervalued & A Decent Long Hedge to Increase Short Exposure to Chinese E-Commerce
- Kakao Pay (377300 KS): Alipay Overhang and Potential MSCI Inclusion
- Winia Aid IPO Bookbuilding Results
- Can Bird Soar Once Again?
- Plunging Tesla Stock to Split 3-1; Larry Ellison Chooses Now to Leave Board—and Twitter Deal?
- LRT Capital Management May 2022 Investor Update
- Thai Stanley Electric (STANLY.BK) – To Grow In Sync With Auto Industry
Miniso: Genuinely Undervalued & A Decent Long Hedge to Increase Short Exposure to Chinese E-Commerce
- After hitting the bottom during the COVID crisis, the only direction left for MINISO Group Holdings (MNSO US) to move is up.
- Given the current valuations, Miniso could generate multi-bagger returns during favourable market conditions.
- In addition, Miniso could help investors generate sizable returns in the short-term on the short side with increased short exposure to Chinese E-commerce.
Kakao Pay (377300 KS): Alipay Overhang and Potential MSCI Inclusion
- Alipay’s sale of 5m shares in Kakao Pay (377300 KS) has caused the stock to slide below its IPO price. Foreign investors have sold while retail have bought last week.
- Alipay still holds 34.7% of Kakao Pay (377300 KS) and this will be an overhang on the stock for some time.
- Kakao Pay (377300 KS) will be added to the FTSE All-World Index at the close on Friday. MSCI inclusion will likely be at the May 2023 SAIR.
Winia Aid IPO Bookbuilding Results
- Winia Aid (377460 KS) announced its IPO book building results. The IPO price has been determined at 16,200 won, which is at the high end of the IPO price range.
- There were 1,225 institutions that were involved in the IPO survey and the demand ratio was 955 to 1. The IPO offering amount is 87 billion won.
- Our base case valuation of Winia Aid is 21,724 won per share, which is 34% higher than the IPO price.
Can Bird Soar Once Again?
- Micromobility Operator Bird Global has gone through a roller coaster ride over the past five years, having a prominent rise followed by a massive collapse recently.
- An influx of competitors, resurgence in the pandemic and seasonality combined with supply chain shortages and record inflation has dented the company’s stock.
- With a likelihood of a prolonged recession on the horizon, can Bird re-focus its priorities to stop the cash burn and turn its business around?
Plunging Tesla Stock to Split 3-1; Larry Ellison Chooses Now to Leave Board—and Twitter Deal?
- Tesla announced 3-1 Stock Split in a down market plus a surprising board shakeup as Larry Ellison quietly exits.
- Is this another red flag with Elon’s troubled funding for his messy Twitter buyout?
- If so, this could trigger a stampede to the exits for already wary investors in Elon’s now comically overpriced hostile buyout of Twitter
LRT Capital Management May 2022 Investor Update
- LRT Capital is a fundamental investment hedge fund. We invest only in companies with durable competitive advantages, i.e. “moats.”.
- May’s results for the LRT Economic Moat Strategy were below expectations.
- The effectiveness of our hedging strategy has been limited due to the extremely strong performance of energy and commodity related stocks.
- The wealth of tomorrow will be in the hands of the net buyers of today.
Thai Stanley Electric (STANLY.BK) – To Grow In Sync With Auto Industry
- BUY for cheap valuation and high cash on hand
- Auto production forecast to grow 6.8% in 2022
- Strong recovery in FY22E, more growth in FY23E
- High growth potential
Before it’s here, it’s on Smartkarma
