In today’s briefing:
- Weekly Deals Digest (17 Jul): WCP, BYD, Link, Genting Singapore, DTAC/True, AOF, ResApp
- Fast Retailing: Guidance Upgraded, Yet The Upside Seems Limited Due to Stretched Valuations
Weekly Deals Digest (17 Jul): WCP, BYD, Link, Genting Singapore, DTAC/True, AOF, ResApp
- A weekly summary of key developments across ECM and Event-Driven names tracked by us across Hong Kong, Australia, New Zealand, Singapore, Indonesia, Malaysia, Thailand, Korea and Chinese ADRs.
- On the ECM front, Tianqi Lithium (9696 HK) listed its H Shares, WCP (WCP KS) plans to launch a KRW900 billion (US$692 million) IPO in August.
- Event-Driven developments at Link Administration (LNK AU), DTAC/True, BYD (1211 HK), Genting Singapore (GENS SP), Tassal (TGR AU), Resapp Health (RAP AU), Dongzheng Automotive Finance (2718 HK).
Fast Retailing: Guidance Upgraded, Yet The Upside Seems Limited Due to Stretched Valuations
- With discounting delayed, Fast Retailing (9983 JP)’s 3QFY22 was a surprise to the upside as its OP grew 36.5% YoY to ¥81.8bn (consensus:¥65.8bn) to exceed the pre-COVID level by 9.7%.
- Nevertheless, the upside seems limited in the short-term, with shares already trading at a stretched valuation of 22.2x consensus FY+2 OP, compared to the historical median of 15.5x.
- At around ¥290.0bn FY+1 OP, a fair price should be somewhere around ¥58,000-60,000, which implies a downside of around 25%.
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