In today’s briefing:
- Delta Djakarta (DLTA IJ): Cheaper Higher Yield Option to Multi Bintang
- Lululemon: Underestimated Is An Understatement
- Although It Is Commendable that Voting Behavior of Some Domestic Institutional Investors Has Changed
Delta Djakarta (DLTA IJ): Cheaper Higher Yield Option to Multi Bintang
- Delta Djakarta (DLTA IJ) is a cheaper small-cap option to play the recovery of tourism in Indonesia instead of Multi Bintang Indonesia (MLBI IJ)
- It’s 5Yr/10Yr average ROCE is 22%/29% lower than MLBI IJ due to the high net cash on the balance sheet, ~25% of the market capitalization.
- Trading at 11x PE and 10% dividend yield on normalized earnings (Assuming a 110% payout ratio since the 5 Yr average is 120%), the stock is super cheap.
Lululemon: Underestimated Is An Understatement
- The company’s international sales growth is somewhat of a hidden asset, as the arena is underserved.
- Lululemon’s regional brand exposure is expanding with new store openings.
- The stock is theoretically undervalued, which is why the stock is undervalued.
Although It Is Commendable that Voting Behavior of Some Domestic Institutional Investors Has Changed
- It remains to be seen whether domestic institutional investors will support shareholder proposals on shareholder returns, which had low approval rate among domestic institutional investors at the previous year’s AGM.
- If domestic institutional investors are voting in favor of shareholder proposals, it wouldn’t be surprising if more companies passed them. It’s doubtful that passive funds have the same voting practices.
- There is concern about critical tone regarding the legally binding nature of the resolution of AGMs, which appears to come from companies feeling threatened by declining shareholdings by banks/business partners.
💡 Before it’s here, it’s on Smartkarma
Sign Up for Free
The Smartkarma Preview Pass is your entry to the Independent Investment Research Network
- ✓ Unlimited Research Summaries
- ✓ Personalised Alerts
- ✓ Custom Watchlists
- ✓ Company Data and News
- ✓ Events & Webinars
