In today’s briefing:
- Weekly Deals Digest (26 Jun) – ThaiBev’s BeerCo, Thai Life, Tianqi Lithium, Giordano, DTAC/True
- JD Health (6618.HK) – Logic Change Due to the New Policy?
- Subscriptions Provide Growth Model for J Front’s Daimaru-Matsuzakaya
- Bosideng (3998 HK): Key Takeaways from Post-FY22 Result Call, Generally Optimistic
Weekly Deals Digest (26 Jun) – ThaiBev’s BeerCo, Thai Life, Tianqi Lithium, Giordano, DTAC/True
- A weekly summary of key developments across ECM and Event-Driven names tracked by us across Hong Kong, Australia, New Zealand, Singapore, Indonesia, Malaysia, Thailand and Chinese ADRs.
- ECM – Thai Life Insurance (TLI TB) is set to launch a US$1bn IPO; BeerCo and Sichuan Tianqi Lithium Industries, Inc (002466 CH) are premarketing US$0.8-1.0bn and US$1.0-1.5bn IPOs, respectively.
- Event-Driven developments at Giordano International (709 HK), Link Net (LINK IJ), Total Access Communication (DTAC TB)/True Corp Pcl (TRUE TB) merger, Infomedia Ltd (IFM AU), Resapp Health (RAP AU).
JD Health (6618.HK) – Logic Change Due to the New Policy?
- The exposure draft about online drug sales activities on third-party digital healthcare platforms would add uncertainties on JD Health’s business. We analyzed the potential impact and the logic behind.
- Keeping both self-run and third-party business is the optimal option because JD Health cannot afford losing either one. The exact impact will have to wait until policy details are released.
- As main revenue contributor, there are concerns on JD Pharmacy in terms of profitability and policy risks. Before second growth point emerges, expectation on long-term valuation expansion would be discounted.
Subscriptions Provide Growth Model for J Front’s Daimaru-Matsuzakaya
- Subscription usage continues to rise in Japan and a new survey suggests just under 50% of teens and 20s plan to use a subscription service this year.
- Daimaru-Matsuzakaya’s luxury and designer brand rental business has been so successful that the company had to turn away new members for a while.
- The department store’s owner, J Front Retailing (3086 JP), sees subscriptions as a third pillar to its business in the future.
Bosideng (3998 HK): Key Takeaways from Post-FY22 Result Call, Generally Optimistic
- The healthy FY22 result of Bosideng International Holdings (3998 HK) showed its ability to solidify leadership position and ride through higher costs with margin expansion.
- Management expects double-digit profit growth for FY23 as it pursues targeted “2+13” expansion strategy and increase push for online sales. New spokespersons and flagship store will add to promotional impacts.
- Net cash of Rmb7.8bn and strong FCF generation ability can ensure high dividend payout (FY22: 80.2%) to sustain. Premium valuation over local apparel peers is well justified.
Before it’s here, it’s on Smartkarma
