In today’s briefing:
- BYD (1211 HK): Sales Volume Up by 62% in 2023
- Korean Holdcos Vs Opcos Gap Trading Opportunities in 1Q 2024
- Kweichow Moutai (600519 CH): Stability Amidst Overall Industry Weakness
- For Increasing TOBs and MBOs, Managers Should Be Aware of Listing Costs and PE Market Should Expand
BYD (1211 HK): Sales Volume Up by 62% in 2023
- BYD’s sales volume grew by 45% YoY in December, higher than 31% YoY in November.
- For the whole year 2023, BYD’s total sales volume rose by 62%.
- We conclude the stock has an upside of 74% for 2024.
Korean Holdcos Vs Opcos Gap Trading Opportunities in 1Q 2024
- In this insight, we highlight the recent pricing gap divergences of the major Korean holdcos and opcos which could provide trading opportunities in 1Q 2024.
- We highlight 38 pair trades that involve Korean holdcos and opcos.
- Of the 38 pair trades, 26 of them involved holdcos outperforming opcos in the past six months and 12 of them involved opcos outperforming holdcos in the same period.
Kweichow Moutai (600519 CH): Stability Amidst Overall Industry Weakness
- Kweichow Moutai (600519 CH) announced the preliminary result for FY23, with sales and net profit both up 17% yoy.
- The overall weak consumer sentiment in China has not spared the Chinese liquor sector, as overall Chinese liquor demand has been lukewarm.
- The current valuation for Moutai has become very attractive, and even if no rerating, the return is likely to be around 15% through earnings growth plus 2% from dividend yield.
For Increasing TOBs and MBOs, Managers Should Be Aware of Listing Costs and PE Market Should Expand
- Companies with large shareholders’ interests of 20% or more account for 779 of 1,784 companies in Metrical Universe. A number of companies are investment targets as TOB and MBO candidates.
- Companies with large shareholder influence may feel distanced from general corporate governance practices, but their interests are aligned with those of minority shareholders in terms of shareholder-oriented management.
- For quality markets, it’s necessary to reduce the number of companies by increasing TOBs and MBOs, and to do so, managers need to be aware of the cost of listing.
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