In today’s briefing:
- Meidong: Now at 11.5 HKD, a Great Entry Price
- Kirin: Another Beat Could Turn Consensus from Pessimism into Optimism
- Campus Activewear Lock-Up – Shares Have Nearly Doubled. Pre-IPO Investors Might Book Gains
- Millie’s Library IPO Preview
Meidong: Now at 11.5 HKD, a Great Entry Price
- Since our note in April China Meidong: Back the Porsche at 20 HKD, the company is down greater than 50% despite improving fundamentals due to bearish sentiment on China.
- The stock trades at 11.3x/6.4x FY22/23e PE. Assuming an 80% payout ratio, the stock has a 7.1%/12.5% dividend yield for FY22/23e. We believe there is an upside to the payout.
- Checks with the company suggest Porsche sales are robust in the high double digits, and the company has overall accelerating revenue trends since Q1 2022.
Kirin: Another Beat Could Turn Consensus from Pessimism into Optimism
- Consensus has dismissed Kirin Holdings (2503 JP)’s revised revenue and OP guidance by maintaining consensus 2022 revenue and OP estimates at ¥1,970bn and ¥149.8bn respectively.
- With the yen depreciating by an additional 5-15%, domestic business outperforming expectations and raw material prices falling, we expect another raise to Kirin’s annual guidance in 3Q22.
- We think a second upgrade to 2022 guidance can turn consensus from pessimism to optimism.
Campus Activewear Lock-Up – Shares Have Nearly Doubled. Pre-IPO Investors Might Book Gains
- Campus Activewear (CAMPUS IN) was listed on 9th May, 2022, with its six-month lockup expiring today, 4th November 2022.
- Campus Activewear is a lifestyle-oriented sports and athleisure footwear firm based in India. Operating under the “CAMPUS” brand, it offers a diverse portfolio of styles, color palettes, and price points.
- Coming up for six-month lockup expiry are the pre-IPO investors and the Promoters, both of which had sold during the IPO.
Millie’s Library IPO Preview
- Millie’s Library is getting ready to complete its IPO on the KOSDAQ exchange in November. The IPO price range is from 21,500 won to 25,000 won per share.
- Millie’s Library is the largest platform for e-books subscription in Korea. The major shareholder of Millie’s Library is Genie Music Corp (an affiliate of KT Group) with a 38.63% stake.
- The company started to generate positive operating margin in 1H 2022 when it had sales of 21.1 billion won (up 66.1% YoY) and operating margin of 5%.
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