In today’s briefing:
- Suzuki’s NAV Discount And Implied Stub Plumb New Lows. Again
- Emperador Secondary Listing: Borderline STI Inclusion
- Honda – EV Briefing Raises Some Interesting Questions
- Dongwon Industries Merger: KOSPI 200 Flow Trading & Shorting Prospects on Cancellation
- IPAR: Growth Prospects of 2022
- Koshidaka Holdings (2157): 1H OP Turns to Positive; Significant Store Expansion
- Komeda Holdings (3543): FY2/22 OP Achieved Guidance
Suzuki’s NAV Discount And Implied Stub Plumb New Lows. Again
- Suzuki Motor (7269 JP)‘s implied stub and simple ratio (Suzuki/ Maruti Suzuki India (MSIL IN)) are currently at all-time lows.
- This bifurcation has become endemic in the relative value space, especially in Japan.
- Maruti is trading rich amid its ongoing support for hybrid vehicles. That scenario won’t play out well.
Emperador Secondary Listing: Borderline STI Inclusion
- Emperador Inc (EMP PM) has received conditional eligibility to list (ETL) from the SGX (SGX SP) for its Secondary Listing by way of introduction on the SGX.
- Emperador Inc (EMP PM) is a borderline inclusion to the FTSE Straits Times Index (STI) (STI INDEX) on three criteria – free float, liquidity, and market cap.
- If EMP passes all criteria and is added to the STI, passive trackers will need to buy 26.4m shares (US$8.7m). EMP should also be a FTSE All-World inclusion in September.
Honda – EV Briefing Raises Some Interesting Questions
- Honda’s Briefing on its Automobile Electrification Business yesterday laid out a reasonably aggressive EV rollout plan emphasising some existing partnerships.
- It also highlighted that they would procure batteries domestically from Envision AESC.
- That is another move that takes Honda a step closer to Nissan’s supply chain and has us pondering a potential merger/partnership once again.
Dongwon Industries Merger: KOSPI 200 Flow Trading & Shorting Prospects on Cancellation
- Dongwon Industries merger will welcome 44.88M new shares, bumping up the total issued shares by 2.5 times.
- So, we will likely see a passive inflow of 0.39x ADTV at the close on October 20, a level certainly worth our attention for flow trading.
- However, a short position approach to betting on this possibility is expected to face quite a tight journey.
IPAR: Growth Prospects of 2022
- IPAR has entered 2022 owning a series of new licenses and the reopening of international airports should result in sales growing at a faster pace than the current consensus estimates
- In the case of the Donna Karan license, IPAR begins to recognize sales in the second half of the year when it is traditionally the peak sales period
- The recent lifting of COVID-19 restrictions in Europe eases international travel, which should have a positive impact on sales in 2022
Koshidaka Holdings (2157): 1H OP Turns to Positive; Significant Store Expansion
- On April 13, Koshida Holdings (2157, the company) announced 1H FY8/22 sales of 16.533bn yen (+36.5% YoY), OP of 275m yen (-2.644bn yen loss in 1H FY8/21)
- 2Q (Dec-Feb) OP was 1.406bn yen (-1.661bn yen loss in 2Q FY8/21), a significant improvement from 1Q OP of -1.131bn yen
- The total number of stores for the karaoke business at end-2Q was 584 (+7 from end-1Q; +25 from end-FY8/21)
Komeda Holdings (3543): FY2/22 OP Achieved Guidance
- On April 13, Komeda Holdings (3543) announced FY2/22 full-year IFRS sales of 33.317bn (+15.5% YoY) and OP of 7.305bn (+32.6% YoY; OPM 21.9%)
- 4Q (Dec-Feb) OP was 1.458bn yen (+17.9% YoY, -28.8% QoQ), with OPM of 16.8% (16.3% for 4Q FY2/21; 24.8% for 3Q)
- The company’s full-year guidance for FY2/23 is sales of 37bn (+11.1% YoY) and OP of 8bn yen (+9.5% YoY, OPM 21.6%)
Before it’s here, it’s on Smartkarma
