In today’s briefing:
- ESG Analysis of a Korean E-Commerce Giant: Did Coupang’s ESG Performance Really Improve?
- Pullback Complete?; Commodities Heading Lower; Buying Growth/Cyclicals & A Few Utilities
- GTX: Turbocharged Free Cash Flow
- Ralph Lauren: Increased Digital Marketing Efforts
ESG Analysis of a Korean E-Commerce Giant: Did Coupang’s ESG Performance Really Improve?
- E: In terms of resource management, Coupang was fined the most among companies that failed to fulfill their recycling obligations, and the use of plastic packaging is increasing every year.
- S: Coupang was flagged for the largest number of disputes among online platforms. Not only conflicts with consumers and communities, but also the unfair labor practices are key risks.
- G: Bom Kim resigned as chairman after the fire at Icheon Logistics Center. These measures were suspected of being intended to avoid punishment under the Serious Accidents Punishment Act.
Pullback Complete?; Commodities Heading Lower; Buying Growth/Cyclicals & A Few Utilities
- We are seeing signs that suggest this pullback may have run its course, as several global market indexes and Sectors appear to be making a higher low near logical support.
- This includes the S&P 500, Russell 2000, MSCI ACWI (local currency), TOPIX/TOPIX Small/Nikkei 225, MSCI ACWI Technology (IXN-US), Consumer Discretionary (RXI-US), Financials (IXG-US), Industrials and (EXI-US) — add exposure.
- While our overall outlook remains neutral, we continue to see a plethora of attractive buying opportunities in the new leaders.
GTX: Turbocharged Free Cash Flow
- Garrett Motion (GTX) has elected to pay its quarterly dividend on its Series A Preferred shares in cash in lieu of stock.
- We believe this is a signal to investors on how the business has performed in the Q3 after GTX affirmed its full year adjusted free cash flow guidance in August
- The use of cash removes the compounding effect through issuing more shares, which would nullify the share buyback program GTX has in place
Ralph Lauren: Increased Digital Marketing Efforts
- Ralph Lauren delivered strong results this quarter surpassing revenue expectations of Wall Street as a result of solid growth across all key regions.
- Ralph delivered solid consumer metrics, which include increased net promoter scores, purchase intent, and global brand consideration through an engaging mix of performance marketing and purpose-led investments.
- We provide the stock of Ralph Lauren with a ‘Hold’ rating and a revision in the target price.
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