In today’s briefing:
- 2023 High Conviction – Anycolor (5032) Aiming at TSE Prime and TOPIX – And How!
- Yashili/Mengniu: Are We There Yet?
- Premier Anti-Aging Company: DUO Is Going Down
- Sa Sa Intl (178 HK): Is It Too Late to Buy Now?
- Askul Q2 23 Results Reaction: B2B Growth and B2C Cost Savings Drive Solid Quarter
- Lotte Shopping: A Deep Value Stock Poised for a Turnaround
- MGM China Holdings Ltd: Stock Is up Strongly Due to Positive Catalysts Forming
- Liquid Universe of European Ordinary and Preferred Shares: December ‘22 Report
- DEA Raises US$10M from LDA Capital to Accelerate NFT Gaming Platform PlayMining
- Bangladesh Stock Picks | Olympic Industries, Square Textiles, Bashundhara Paper Mills
2023 High Conviction – Anycolor (5032) Aiming at TSE Prime and TOPIX – And How!
- “VTuber” (Virtual Youtuber) animated influencer company Anycolor (5032 JP) was listed on 8 June 2022 at ¥1530. The stock popped 214% on Day1.It is up another 60% since then.
- Today Anycolor reported Q2 earnings (result, presentation) and revised its full-year forecast to 30 April. Revenues will be +7-18% vs forecast, OP +18-39%, NP +15-39%. Price is 43x forecast EPS.
- The company also announced it is preparing a Section Transfer application, but gave little more info. So we dig into what THAT means.
Yashili/Mengniu: Are We There Yet?
- Back on the 6 May, Yashili International Holdings (1230 HK) announced a pre-conditional Offer, by way of a Scheme, from China Mengniu Dairy Co (2319 HK).
- Pre-Conditions concern three sales and purchase agreements, all of which Yashili shareholders voted through on the 16 August.
- From a regulatory standpoint, various conditions attached to Dumex China remain outstanding. But the wording in the most recent monthly update suggests the process is getting to the pointy end.
Premier Anti-Aging Company: DUO Is Going Down
- Premier Anti-Aging (4934 JP) shares rose 6.1% today following a massive earnings miss and a substantial downgrade to FY23 guidance.
- This is perhaps due to low liquidity and depressed prices as the share price dropped more than 85% since July last year.
- We think there’s more downside to the stock, especially with DUO about to hit the bottom of the barrel and CANADEL and Clayence struggling to maintain growth momentum.
Sa Sa Intl (178 HK): Is It Too Late to Buy Now?
- We think Sa Sa International Hldgs (178 HK)‘s risk-return payoff still look favourable even after the recent rally, which rides on the expectations of HK-mainland China border opening.
- Assuming net profit returns to 70% of pre-pandemic level in FY25, and applying a peak PER of 25x over 2011-2018, its share price still has 63% upside.
- Release of pent-up demand, stabilisation of gross margin trend, improved cost dynamics and manageable financial position are all positive factors for Sa Sa.
Askul Q2 23 Results Reaction: B2B Growth and B2C Cost Savings Drive Solid Quarter
- Results for Q2 were better than we expected as B2B sales growth remained robust whilst cost savings on the consumer side boosted margins
- A rather robust decline in revenue for Lohaco is the only negative that stands out but this was partially anticipated whilst the corresponding cost savings are a boon
- An 11% increase in operating profit for Q2 offsets weakness from the previous report and puts the company on track to meet guidance for full-year growth
Lotte Shopping: A Deep Value Stock Poised for a Turnaround
- Lotte Shopping is a deep value stock poised for a turnaround.
- Lotte Shopping has clear turnaround catalysts, cheap valuations, and a solid technical setup.
- Perhaps the most important catalysts for Lotte Shopping include getting rid of the most restrictions/social distancing measures related to COVID-19 which have been in place in the past three years.
MGM China Holdings Ltd: Stock Is up Strongly Due to Positive Catalysts Forming
- MGM’s two Macau properties were moving toward increased market share pre-pandemic and should resume as market recovers in 2023. Stock movement supports this thesis.
- Company’s parent company’s strong balance sheet assures liquidity through to the post pandemic recovery cycle expected to begin by 1Q23.
- Stock has nearly tripled in last several weeks buoyed by renewed concession and slowly improving travel ban easing.
Liquid Universe of European Ordinary and Preferred Shares: December ‘22 Report
- Since mid-November, spreads have shown a mixed performance across our liquid universe with a slight bias towards widening (10 have widened, 9 tightened).
- Trade recommendations long ords / short prefs: Fuchs Petrolub, Henkel, Ericsson, Handelsbanken, SSAB Svenska Stal.
- Trade recommendations long prefs / short ords: Sixt, VW, MFE-Media for Europe, Grifols, Atlas Copco.
DEA Raises US$10M from LDA Capital to Accelerate NFT Gaming Platform PlayMining
- Digital Entertainment Asset (DEA), operator of the PlayMining NFT gaming platform, announced that it had raised a US$10 million investment from Los Angeles-based LDA Capital
- DEA manages intellectual property (IP) monetisation for content creators and operates the PlayMining platform
- The funding was meant to further accelerate its business and market expansion and to help optimise the development of PlayMining.
Bangladesh Stock Picks | Olympic Industries, Square Textiles, Bashundhara Paper Mills
- Filtering for governance and management comfort, we believe these names are best positioned and deserve attention to participate in Bangladesh’s transition.
- Olympic Industries (OLYMPI BD) is a domestic consumption story currently getting impacted by a margin compression.
- Square Textiles (SQTT BD) , Bashundhara Paper Mills (BPML BD) , the first is a pure export play, while the later is a play on domestic markets as well as exports.
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