ConsumerDaily Briefs

Daily Brief Consumer: Galaxy Entertainment Group, BYD, SOCAR, Genting Singapore and more

In today’s briefing:

  • Asia Gaming: The Compelling Case for Galaxy Entertainment Group Founded on Balance Sheet Strength
  • Last Week in Event SPACE: BYD, Astra/United Tractor, Japan Passive, AGL, Genting Singapore
  • Socar IPO: Slightly Revises IPO Prospectus Details
  • ECM Weekly (17th Jul 2022) – Tianqi, Emperador, Soosan, SoCar, WCP, Deewin, Bharat FIH, BYD
  • (Mostly) Asia-Pac Weekly Risk Arb Wrap: Kanemi, AGL, Link Admin, Genting Singapore, Glory Star Media

Asia Gaming: The Compelling Case for Galaxy Entertainment Group Founded on Balance Sheet Strength

By Howard J Klein

  • Galaxy presents a bull case as Macau still struggles with Beijing zero tolerance policy.
  • Its huge cash position will comfortably outlast the monthly burn rate for at least three to five years ahead by which time, covid might be long gone.
  • Galaxy stock is caught in the overall bearish outlook on the sector. Time to accumulate with a relatively low risk on.

Last Week in Event SPACE: BYD, Astra/United Tractor, Japan Passive, AGL, Genting Singapore

By David Blennerhassett

  • Berkshire appears set to exit BYD (1211 HK) partially or in full. But why signal to market well in advance?
  • United Tractors (UNTR IJ)‘s buyback should be impactful. They could do another one afterwards as they have lots of cash. This is a raging buy. Buy now. With both hands.
  • The BOJ was expected to change its ETF allocations. It stopped buying Nikkei 225 and JPX Nikkei 400 ETFs. As the world moves more to passive, expect float to decrease.

Socar IPO: Slightly Revises IPO Prospectus Details

By Douglas Kim

  • SOCAR revised its IPO prospectus. What has changed is the date when the book building for the institutional investors starts (4 August). 
  • The IPO price range remains at 34,000 won to 45,000 won. The IPO base offering size is also between US$120 million to US$159 million. 
  • We maintain our base case valuation of Socar (target price of 27,967 won), which is 18% lower than the low end of the IPO price range of 34,000 won. 

ECM Weekly (17th Jul 2022) – Tianqi, Emperador, Soosan, SoCar, WCP, Deewin, Bharat FIH, BYD

By Sumeet Singh

  • Aequitas Research puts out a weekly update on the deals that were covered by the team recently along with updates for upcoming IPOs.
  • Tianqi’s soggy debut in Hong Kong despite its wide discount will probably put Hong Kong ECM back in snooze mode for a while
  • There were no major placements this week and its likely to remain that was as we approach the half-yearly results season.

(Mostly) Asia-Pac Weekly Risk Arb Wrap: Kanemi, AGL, Link Admin, Genting Singapore, Glory Star Media

By David Blennerhassett


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