In today’s briefing:
- SPH Shareholders – A Good Deal For Waiting (After a Good Deal of Waiting)
- LG Energy & LG Chem Passive Flow In/Out Estimations & Trading Considerations on February 9
- Seven & I: Selling Sogo Seibu Is Just the Start
- HMPRO: Expect 4Q21 Earnings to Be the Highest of This Year
SPH Shareholders – A Good Deal For Waiting (After a Good Deal of Waiting)
- The Combination Cuscaden – Keppel Scheme Offer Meetings for Singapore Press Holdings (SPH SP) shareholders should come imminently.
- Time has passed and that should be worth something. Astute shareholders have likely already made their feelings known. Everyone should.
- In the meantime, there is a good spread, with a put option on a portion of it, and the possibility of a little upside.
LG Energy & LG Chem Passive Flow In/Out Estimations & Trading Considerations on February 9
- There is recently a growing view that the ETF operators (KODEX and TIGER) will conduct most of the rebalancing trading on February 9 to avoid excessive tracking errors.
- LG Chem will face an outflow of ₩0.38T (0.8% of SO and 1.37x ADTV). LG Energy would be 0.36x ADTV and 0.31% of SO, assuming a DTV of 2M shares.
- This is definitely a clear long/short setup opportunity: LG Energy LONG/LG Chem SHORT position. Alternatively, we can also consider approaching this event with Battery ETFs LONG/LG Chem Short setup.
Seven & I: Selling Sogo Seibu Is Just the Start
- Numerous reports indicate that Seven & I is preparing its Sogo Seibu department store subsidiary for sale.
- This follows years of calls from major investors to dispose of underperforming assets at Japan’s second largest retail conglomerate.
- Seven & I still has many problems to solve in its domestic business. Ito-Yokado remains the biggest problem but perhaps won’t be disposed of while the company’s 98-year old founder lives.
HMPRO: Expect 4Q21 Earnings to Be the Highest of This Year
- We maintain BUY rating for HMPRO with a target price to Bt16.10, derived from 35xPE’22E, or implying 40% premium to Thai Consumer Discretionary.
- We expect HMPRO to report 4Q21 net profit at Bt1.57bn (+2%YoY, +80%QoQ),thanks to stores sales recovery (SSSG at +10%YoY) supported by pent-up demand, demand from home renovation after a flood
- We foresee 2022E earnings to grow to Bt6bn close to pre-COVID levels (+16%YoY) supported by 1) a solid revenue growth at 4% close to Thailand GDP growth from re-opening stores
Before it’s here, it’s on Smartkarma
