In today’s briefing:
- Rebound in Int’l Demand & Benign Fuel Prices Could Support Recovery in Chinese Airlines’ Share Perf
- Hyundai Motor India IPO: Valuation Insights
- After TSE’s Request, the Key Is Whether the Company Can Deliver While Investors Are Still Hopeful
- Nameson Holdings (1982 HK): 17% Dividend Yield Can Be Sustained and Improved Long-Term
Rebound in Int’l Demand & Benign Fuel Prices Could Support Recovery in Chinese Airlines’ Share Perf
- By many metrics, Chinese airlines’ recent performance exceeds pre-Covid levels
- Medium-Term, ongoing int’l recovery and benign fuel prices can boost margins
- We believe the airlines could recoup weak relative performance vs Trip.com
Hyundai Motor India IPO: Valuation Insights
- Hyundai Motor India (1342Z IN), a subsidiary of Hyundai Motor (005385 KS), aims to raise up to US$3.3 billion at a valuation of US$19 billion.
- We previously discussed the IPO in Hyundai Motor India IPO: The Bull Case, Hyundai Motor India IPO: The Bear Case and Hyundai Motor India IPO: The Investment Case.
- Our valuation analysis suggests that the IPO price range of Rs1,865-1,960 per share is attractive. Therefore, we would participate in the IPO.
After TSE’s Request, the Key Is Whether the Company Can Deliver While Investors Are Still Hopeful
- There’s gap in timelines for results between many companies that started to incorporate the cost of capital into their management and investors who are looking for results in investment performance.
- If this gap surfaces, investor expectations will be stripped away. Companies that determine that it will take a long time to achieve results can be expected to consider going private.
- For a company to seek access to institutional investors, it must first produce results. The race is on to achieve results within limited timeframes and faster than other companies.
Nameson Holdings (1982 HK): 17% Dividend Yield Can Be Sustained and Improved Long-Term
- HK-Listed Apparel & Footwear Screener: Right Stocks Listed in the Wrong Market—Attractive Yield & Rapid Expansion Outside China—Sep 2024 helped us screen out great names.
- Nameson Holdings (1982 HK), a knitwear supplier that trades at 4.5x PE, is net cash (considering investments) and has a 17% dividend yield, is one of them.
- We find this name attractive, and the yield can be sustainable as it shifts its supply base from China to Vietnam. Hence, we initiate with a detailed write-up.
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