In today’s briefing:
- End of Mandatory Lock-Up Periods for 40 Companies in Korea in August 2023
- Narrative and Numbers | Sula Vineyards (SULA IN) | FY23
- Cisarua Mountain Dairy (CMRY IJ) – Yoghurt Sticks and Meatballs
- Rather More Proposals that Have to Be Considered for or Against on a Qualitative, Case-By-Case Basis
- Oriental Watch (398 HK): Strong Data Points for H1 FY24, 14% Yield + >50% Mkt Cap in Cash
- Nusantara Sejahtera Raya (Cinema XXI) IPO Trading – Should Be a Steady Listing
- SCG Decor Pre-IPO Tearsheet
- SPHY ETF: Rare Opportunity For Price Gains
- (Mostly) Asia M&A, July 2023: Costa Group, Pacific Current, IMAX, Takisawa Machine Tools, Yachiyo
End of Mandatory Lock-Up Periods for 40 Companies in Korea in August 2023
- We discuss the end of the mandatory lock-up periods for 40 stocks in Korea in August 2023, among which 2 are in KOSPI and 38 are in KOSDAQ.
- These 40 stocks on average could be subject to further selling pressures in August and could underperform relative to the market.
- Among these 40 stocks, the top five market cap stocks include HK inno.N, PhilEnergy, CJ CGV Co Ltd, Sure Soft Tech, and CanariaBio.
Narrative and Numbers | Sula Vineyards (SULA IN) | FY23
- Sula Vineyards (SULA IN) is one of the leading wine producers in India.
- Focus on premiumization, market leadership, and industry prospects are attractive.
- However, high working capital, recent resignations, and customer concentration along with market’s high valuations make it a watch-list candidate.
Cisarua Mountain Dairy (CMRY IJ) – Yoghurt Sticks and Meatballs
- Cisarua Mountain Dairy (CMRY IJ) remains one of the most interesting and dynamic staple players in Indonesia, with a leading position in yoghurt and growing strength in consumer foods.
- CMRY continues to achieve strong top-line growth of +21% in 1H2023, with consumer foods driving growth and 50% of sales but we expect dairy to see better performance in 2H2023.
- Cisarua Mountain Dairy (CMRY IJ) continues to invest in marketing through digital channels, including TikTok. Valuations remain attractive relative to its growth prospects, with more than 20% 3-year EPS CAGR.
Rather More Proposals that Have to Be Considered for or Against on a Qualitative, Case-By-Case Basis
- Domestic investment managers are expected to show a higher percentage in favor of shareholder proposals, but life insurances still face a high hurdle in voting in favor of shareholder proposals.
- It is relatively easy to decide for or against a proposal based on quantitative criteria such as the level of ROE or whether there are zero female directors.
- Few institutional investors adequately disclose the reasons for approval or disapproval of individual proposals. Disclosure of reasons for approval or disapproval is required for company proposals that are controversial.
Oriental Watch (398 HK): Strong Data Points for H1 FY24, 14% Yield + >50% Mkt Cap in Cash
- Oriental Watch (398 HK) cycled into favorable comps for April-June 2023 owing to COVID-related closures in China in 2022 for the same period.
- Another favorable data point was the Emperor Watch & Jewellery (887 HK) positive profit alert for H1 FY23 ( Jan-Jun 2023), where the company guided >100% net profit growth.
- Oriental Watch (398 HK) trades at 6.9x FY24e, with more than 50% of the market cap in cash and a ~100% payout ratio resulting in a 14% dividend yield.
Nusantara Sejahtera Raya (Cinema XXI) IPO Trading – Should Be a Steady Listing
- Cinema XXI raised around US$150m in its Indonesia IPO, after pricing at the bottom-end.
- Cinema XXI is a premium theatrical exhibition, F&B and experience company. It is the largest cinema chain operator in Indonesia.
- We have looked at the company’s past performance and undertaken a peer comparison and valuation in our earlier notes. In this note, we talk about the trading dynamics.
SCG Decor Pre-IPO Tearsheet
- SCG Decor PCL (SCGD TB) is looking to raise at least US$100m in its upcoming Thailand IPO.
- SCG Decor (SCGD) is Siam Cement Group’s core company in the decor surfaces and bathroom business.
- Primarily operating via its subsidiaries, the firm is a manufacturer of floor and wall tiles domestically and abroad, including ASEAN markets such as Vietnam, the Philippines and Indonesia.
SPHY ETF: Rare Opportunity For Price Gains
- Key indicators suggest the SPDR® Portfolio High Yield Bond ETF might benefit from price returns in the coming quarters.
- Investors will soon “down credit” and “down duration” amid receding market risk premiums coupled with an improving U.S. current account, we say.
- Today’s analysis covers the SPDR® Portfolio High Yield Bond ETF (NYSEARCA:SPHY), which is a U.S.-centric high-yield corporate bond exchange-traded fund, or ETF, managed by State Street Global Advisors.
(Mostly) Asia M&A, July 2023: Costa Group, Pacific Current, IMAX, Takisawa Machine Tools, Yachiyo
- For the month of July 2023, 6 new deals (firm and non-binding) were discussed on Smartkarma with an overall announced deal size of ~US$2.2bn.
- The average premium for the new deals announced (or first discussed) in July was 40%. The average YTD is 36%.
- This compares to the average premium for all deals in 2022 (106 deals), 2021 (165 deals), 2020 (158 deals), and 2019 (145 deals) of 41%, 33%, 31%, and 31% respectively.
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