In today’s briefing:
- Vinda (3331 HK): Tanoto Sees The Wood
- WH Group (288 HK): Potential US Listing Of Smithfield Foods Could Be A Catalyst
- Asian Dividend Gems: Giordano International
- NWD 17 HK: FY23 Results Update, to Reset and Transform, and a Beta Play if Rate Expectation Peaks
- Weekly Wrap – 20 Oct 2023
Vinda (3331 HK): Tanoto Sees The Wood
- On the 27 April, Vinda (3331 HK) announced its controlling shareholder Essity (ESSITYB SS) would commence a strategic review of its 51.59% ownership. See Essity Mulls Holding In Vinda (3331 HK).
- That shook a variety of suitors out of the woodwork (so to speak) including (reportedly) Brazil’s Suzano, the world’s largest hardwood pulp producer, Bain Capital, CVC Capital, and DCP Capital.
- The latest (alleged) interested party is the Tanoto family, currently holding a 7.03% stake, having first cleared 5% on the 26 September.
WH Group (288 HK): Potential US Listing Of Smithfield Foods Could Be A Catalyst
- According to public news yesterday, WH Group (288 HK) plans to list its US pork business Smithfield Foods, the largest US pork producer, back in the US again.
- WH Group currently trades at 5x 2024E PE, assuming earnings return to the 2022 level in 2024E. Since 2016, the company has had an average PE of 11x.
- The stock is a buy with a fairly strong catalyst in the potential US listing of the Smithfield Foods business, while downside is limited.
Asian Dividend Gems: Giordano International
- Giordano, one of the most recognizable apparel business in Asia, has been improving its operations materially with solid growth in sales and profits.
- Giordano provides very high dividend yield and payout. The consensus expects DPS of HKD 0.28 for Giordano in 2023, which would suggest a dividend yield of 12.8%.
- We like the company’s high dividend yield, loyal customer base, and attractive valuations. It is trading at EV/EBITDA of 3.6x and P/B of 1.5x.
NWD 17 HK: FY23 Results Update, to Reset and Transform, and a Beta Play if Rate Expectation Peaks
- In this insight, we summarized NWD’s FY2023 results. We think the gearing and balance sheet, the biggest concern that market has, has been clearly addressed
- NWD has announced disposal of its stake in NWS, and will have more corporate actions to come. The dividend expectation is reset
- We view most of the negatives are priced in at current valuation. NWD is much better than a Chinese developer, and should not be trading at 0.19x PB
Weekly Wrap – 20 Oct 2023
Lucror Analytics Weekly Wraps provide an overview of all Morning Views comments and reports published by our analyst team in the past week, and also showcase a list of the most-read reports.
In this Insight:
and more…
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