In today’s briefing:
- Alibaba (9988 HK): “Department One” in Reorganization
- Yamada Denki (9831) Buyback Almost Done and Odd Dividend “Cut”, and a Lightbulb Dilemma
- ZJLD Group (6979 HK): Index Inclusion Possibility & Timelines
- Oishi Group: IFA Backs ThaiBev’s Offer
- Anta Sports (2020 HK): Our View After Placement
- British American Tobacco: New Category Growth
- 10 in 10 with H2G Green – The Pivot to Green Hydrogen
- Pointerra – Investment in Human Capital Signals a Step-Change
- Colgate-Palmolive Co: Improved Focus On Pet Nutrition & Whitening – Key Drivers
- 4Q22 Results Slightly Better than Expected; Business Transformation Continues in 2023
Alibaba (9988 HK): “Department One” in Reorganization
- Alibaba broke down Taobao Tmall Center, the most important department, into three departments.
- Industry Development Department One is actually “other businesses” after the reorganization.
- Following Department One will help investors to understand Alibaba’s financials.
Yamada Denki (9831) Buyback Almost Done and Odd Dividend “Cut”, and a Lightbulb Dilemma
- In May 2022, Yamada Denki (9831 JP) announced a very large buyback. GINORMOUS – in fact – at 23.9% of shares out ex-Treasury if maximum shares were bought.
- So far, YDH is 83.5% through, and at the recent pace, they will end it 8 May having bought 183-184mm shares (21.9% of TSO) spending 86.6% of funds allocated.
- That’s why the announcement lowering the March 2023 div to ¥12/share vs ¥18/share last year was just weird. And bodes badly. We need a lightbulb moment for a lightbulb dilemma.
ZJLD Group (6979 HK): Index Inclusion Possibility & Timelines
- ZJLD Group (ZJLD HK) is looking to raise between US$775m-US$933m (including the oversubscription option) in its IPO by selling 564.3m shares at a price range of HK$10.78-HK$12.98/share.
- ZJLD Group (ZJLD HK) will not get Fast Entry to any indices but should be added to the HSCI and Stock Connect in September.
- Peer performance has not been great this year and that could weigh on the ZJLD Group (ZJLD HK) listing.
Oishi Group: IFA Backs ThaiBev’s Offer
- On the 10th March, Thai Beverage (THBEV SP) proposed taking 79.66%-held Oishi Group PCL (OISHI TB) private, at an Offer price of THB 59/share, a 26.9% premium to last close.
- This Delisting Offer requires a shareholder vote which will take place on the 3<May. Payment may occur mid-to-late August.
- In its report yesterday, the IFA reckons “that the shareholders should approve of the voluntary delisting“.
Anta Sports (2020 HK): Our View After Placement
- The new share placement of Anta Sports Products (2020 HK) has caught the market by surprise, but we think long-term story for the company should not be affected.
- With proceeds to be used for repayment of outstanding debts, expansion in China and pursuing SE Asia markets, we should not overlook the benefits to be generated.
- An IPO of Amer Sports is clearly brewing and this represents an important catalyst. Anta’s 26.4x and 20.9x FY23 and FY24 PERs do not look stretched relative to earnings growth.
British American Tobacco: New Category Growth
- British American Tobacco delivered decent financial results and successfully navigated a progressively challenging macro environment.
- In New Categories, the company delivered strong revenue growth driven by Geo expansion, innovation, and share growth.
- British American Tobacco launched the first connected Vapour device of the Group, Vuse ePod2 plus, that drives increased pod consumption.
10 in 10 with H2G Green – The Pivot to Green Hydrogen
10 in 10 with H2G Green – The Pivot to Green Hydrogen
Pointerra – Investment in Human Capital Signals a Step-Change
- Pointerra Ltd (ASX:3DP) provides a powerful cloud-based solution (Pointerra3D) for managing, visualising, analysing, using, and sharing massive 3D point clouds and datasets.
- The company has taken a highly manual, slow, and cost-prohibitive process and turned it into a fast, efficient workflow solution for 3D data, enabling digital asset management from any device in any location.
- The Pointerra3D suite of solutions spans target sectors including survey and mapping; architecture, engineering, and construction (AEC); utilities; transport; resources; and defence and intelligence.
Colgate-Palmolive Co: Improved Focus On Pet Nutrition & Whitening – Key Drivers
- Colgate entered 2023 on a positive note with decent top-line momentum and delivered an all-around beat in the last result.
- The company saw good growth in organic sales in four categories which include double-digit growth in organic sales in Pet Nutrition.
- Colgate, is launching the Optic White Pro Series and its new MPS whitening technology all over the world.
4Q22 Results Slightly Better than Expected; Business Transformation Continues in 2023
- XWELL reported 2022 results that were slightly better than preliminary results issued on March 30.
- Revenues for the quarter were $7.5 million, with $4.5 million coming from the spa business (XpresSpa and Treat), $2.6 million from the CDC program and the one remaining XpresCheck location, and $.5 million from HyperPointe.
- While 1Q is usually a slower quarter for the travel industry, we expect the company to continue to focus on improving the profitability of its spa business primarily through the closure of a few stores that don’t contribute to profitability.
💡 Before it’s here, it’s on Smartkarma
Sign Up for Free
The Smartkarma Preview Pass is your entry to the Independent Investment Research Network
- ✓ Unlimited Research Summaries
- ✓ Personalised Alerts
- ✓ Custom Watchlists
- ✓ Company Data and News
- ✓ Events & Webinars
