In today’s briefing:
- Swire Prop 1972 HK: HK Office & China Retail Can Be Double Drag, No Share Buyback & Lack of Catalyst
- Pre-IPO HealthyWay – The Business Model Lacks Core Competitiveness
- A Look at How SF Holding Differs from A) Its Express Peers and B) The Pre-Covid Version of Itself
- Morning Views Asia: Adani Ports & Special Economic Zone, Softbank Group
Swire Prop 1972 HK: HK Office & China Retail Can Be Double Drag, No Share Buyback & Lack of Catalyst
- Swire Properties is one of the largest office and retail landlords in HK. Office is facing headwind despite should see recovery in the long-term. HK retail is recovering.
- Swire announced to spend 100bn to expand its portfolio in terms of capital management, yet it did not announce a share buyback that many investors would like to see
- Lack of share buyback, with weak HK office and China retail, could drag Swire’s share price. Despite we see value in the stock, it could remain as value trap
Pre-IPO HealthyWay – The Business Model Lacks Core Competitiveness
- HealthyWay cannot rely on drug/product sales to achieve rapid expansion of revenue scale because it hasn’t huge user base accumulated on e-commerce platforms like Taobao/JD.com, leading to different business model.
- Relying on Baidu’s search engine to guide traffic could be worthless, because B-end users would not pay for the traffic that cannot provide added value.HealthyWay hasn’t a strong cornerstone business.
- HealthyWay’s valuation should be lower than that of ClouDr. Due to the lack of imagination space in business model, it would to some extent suppress the valuation growth of HealthyWay.
A Look at How SF Holding Differs from A) Its Express Peers and B) The Pre-Covid Version of Itself
- SF Holding differs from its Chinese peers in several important ways, including business scale, its lack of a formal relationship with Alibaba, and its many non-express lines of business
- SF also differs from the pre-Covid version of itself: it’s far larger than it was in 2019, but core margins have declined, and internatonal exposure has risen dramatically
- In this insight we also take a look at current EV/Revenue valuations vs peers and list important milestones to watch for ahead of the company’s planned HK IPO
Morning Views Asia: Adani Ports & Special Economic Zone, Softbank Group
Lucror Analytics Morning Views comprise our fundamental credit analysis, opinions and trade recommendations on high yield issuers in the region, based on key company-specific developments in the past 24 hours. Our Morning Views include a section with a brief market commentary, key market indicators and a macroeconomic and corporate event calendar.
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