Daily Brief Consumer: China Yongda Automobile Services Hldg, Alibaba Group, Kanemi Co Ltd, Golden Agri Resources, JD.com Inc., Cigna Corp, FGV Holdings Bhd, Hope Education Group Co Ltd, Avenue Supermarts Ltd and more

• The data in this insight is collated from the “shareholding disclosure” link on the HKEx website. 
• Often there is a corresponding HKEx announcement on the increase – or decrease – in the shareholding by directors. However, such disclosures are by no means an absolute. 
• This insight also flags those companies where shares have been pledged, both recently and ongoing.

• Just as investors were starting to get comfortable investing in Chinese big tech, the Government has imposed new fines on a range of tech companies.
• Meanwhile, the June ending quarter could yet again be a disspointment with growth curtailed through lack of funding for loss making businesses.
• Having gained around 50% in June 2022 through signs of easing the tech crackdown, these new fines and a weak June-ending quarter could resend tech valuations to March-2022 lows.    

• Pan Pacific International Holdings (7532 JP) has announced a Tender Offer on Kanemi Co Ltd (2669 JP) to buy out the remaining shares of its one-time co-owner, Familymart. 
• The Tender Offer is for 11.83% of shares (ex-Treasury) at a 3% discount to last. It will get PPIH to near 40%, but together with friendlies, they own ~70%.
• There is a small but extraordinarily illiquid opportunity here. I’d avoid, but there is an interesting potential put option. 

• A recent webinar hosted by Smartkarma with Golden Agri Resources revealed a company confident in the outlook for both its plantation and its value-added processing businesses.
• Golden Agri Resources leads the industry in terms of the yields on its plantations versus both Indonesia and Malaysia and continues to replant with higher-yielding varieties.
• The company has plentiful processing capacity for its own needs and those of third parties, which will help maintain margins. Management is confident in the outlook for palm oil prices.

• JD.com opened a physical shopping mall and we believe it is following Alibaba.
• JD.com signed contract with a state-owned power company for two reasons.
• Two suppliers applied for the liquidation of Suning.com to the court.

• Blue Tower Asset Management provides portfolio management services to individuals, financial advisers, and institutions.
• With Q2 2022, the Blue Tower Global Value strategy composite returned 12.09% net of fees in the second quarter (12.41% gross) against a decline of -15.66% in the MSCI ACWI index.
• The sanctions on Russian investments have dramatically increased the internal dispersion of our composite performance results.
•  

• Blue Tower Asset Management provides portfolio management services to individuals, financial advisers, and institutions.
• With Q2 2022, the Blue Tower Global Value strategy composite returned 12.09% net of fees in the second quarter (12.41% gross) against a decline of -15.66% in the MSCI ACWI index.
• The sanctions on Russian investments have dramatically increased the internal dispersion of our composite performance results.
•  

• FGV posted strong 1QFY22 core earnings of RM345m on the back of stronger plantation earnings.
• The strong set of results were above our and the consensus forecasts, making up 36% and 42% of full-year expectations, respectively.
• Nevertheless, we make no changes to our forecasts as we expect to see continuous margin pressure from the sugar segment. No dividend was declared for the quarter. Maintain Neutral with an unchanged TP of RM1.61.

Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

• Hope Education Group Co Ltd (1765 HK) achieved good student enrollment quota increase for 2022/2023 academic year and student recruitment results at overseas schools are also very encouraging. 
• Improvement in teaching quality and better facilities should narrow the gap of fees per student (Rmb11,814) with the national average (Rmb20,000), driving net profit growth in 3-5 years. 
• Capex will come down over time given good upside in utilisation and the removal of management fees will relieve financial position. Its relative valuation is also inexpensive. 

Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.