In today’s briefing:
- China Consumption Weekly (24 Jun 2024): Kuaishou, Bilibili, NetEase, GAC, Honda Motor, Chow Tai Fook
- What Lies Behind the Inability to Come up with Flexible Cash Usage Is
- ECM Weekly (24th June 2024)-Webtoon, Guzman, Black Ses, Johor Plant, Bajaj Housing, Infratil, Mizuho
China Consumption Weekly (24 Jun 2024): Kuaishou, Bilibili, NetEase, GAC, Honda Motor, Chow Tai Fook
- Kuaishou and Bilibili’s GMV surged YoY during “June 18” sales.
- World of Warcraft: Wrath of the Lich King, will formally start on June 27.
- GAC Honda Automobile Ltd planned to dismiss 1700 employees, about 14% of total.
What Lies Behind the Inability to Come up with Flexible Cash Usage Is
- Many Japanese managers have little idea that what belongs to shareholders is net profit and not free cash flow. This has created two problems.
- If Japanese companies, mostly manufacturers, use dividend payout ratios as a criterion for shareholder returns, cash on hand will not decline even if shareholder returns are increased to some extent.
- The inability to move beyond the concept of allocating investment and shareholder returns based on increases or decreases in cash may be the reason for the unclear cash allocation policy.
ECM Weekly (24th June 2024)-Webtoon, Guzman, Black Ses, Johor Plant, Bajaj Housing, Infratil, Mizuho
- Aequitas Research’s weekly update on the IPOs, placements, lockup expiry and other ECM linked events that were covered by the team over the past week.
- On the IPO front, Guzman provided some hope to the Australian market, while Webtoon Entertainment (WBTN US) and Allied Blenders & Distillers will soon test their respective markets.
- There was no dearth of placement this week, with large deals in Hong Kong, New Zealand and India.
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