In today’s briefing:
- KRX Plans to List Single-Stock Futures of All KS200 & KQ150 Constituents
- DXN Holdings IPO – Updates Since Our Last Note
- Beenos: Big Buybacks Forthcoming
- Mitra Adiperkasa (MAPI IJ) – Vibrant Start to Very Different Year
- Minth: Buy
- Oishi Group (OISHI TB): Shareholders Approve the THB59.00 Delisting Offer
- To Make the TSE Prime Market in Line with the Original Concept of the Market
KRX Plans to List Single-Stock Futures of All KS200 & KQ150 Constituents
- According to Chosun, KRX plans to list the single-stock futures of all constituents of KOSPI 200 and KOSDAQ 150 within 2-3 years.
- This information comes from a KRX official, who directly confirmed it. As Chosun is the most well-established news outlet in Korea, the credibility of this article is quite high.
- We should consider screening those with a high proportion of short-selling positions and devising a positioning strategy in conjunction with the new listing event of single stock futures in July.
DXN Holdings IPO – Updates Since Our Last Note
- DXN Holdings (2080694D MK) is looking to raise around US$159m in its Malaysia IPO.
- DXN Holdings (DXN) is a global health-oriented and wellness direct selling company.
- In our previous note, we looked at the company’s past performance. In this note, we take a look at the company’s updated financials.
Beenos: Big Buybacks Forthcoming
- Beenos Inc (3328 JP) is currently one of the cheapest stocks in the Japanese e-commerce sector with a consensus FY+2 EV/OP of 4.5x with an OP CAGR of around 130%.
- In addition, the relatively cheap-looking valuation multiple excludes the current valuation of Beenos’ incubation program investments.
- We think Beenos can sell its stake in GoTo in the short-term to conduct a big share buyback as the management thinks that Beenos is unfairly valued by the market.
Mitra Adiperkasa (MAPI IJ) – Vibrant Start to Very Different Year
- Mitra Adiperkasa (MAPI IJ) 1Q2023 numbers reflected a strong start to the New Year, with vibrant sales growth, improved profitability, and growth across all segments.
- The company maintained the momentum behind its omnichannel strategy with online sales making up 8.1% of total sales despite more offline activity as COVID restrictions were dropped.
- Mitra Adiperkasa continues to expand its footprint both in Indonesia and with selective brands in South-East Asia, most recently in the Philippines. Valuations are attractive versus historical levels.
Minth: Buy
- Minth’s stock price has been weak in the past year but its improving fundamentals started to reflect in the results in 2H22.
- 2023 revenue growth will be supported by the overseas auto market recovery and fast-growing battery housing business.
- Minth’s valuation is near historical low and is at a discount to its peers
Oishi Group (OISHI TB): Shareholders Approve the THB59.00 Delisting Offer
- Oishi Group PCL (OISHI TB)’s shareholders overwhelmingly approved Thai Beverage (THBEV SP)’s delisting tender offer of THB59.00 per share. The approval was expected as ThaiBev was allowed to vote.
- The offer is attractive compared to historical share prices, multiples and the IFA’s fair value of THB53.48-56.42 per share.
- The delisting now requires SET approval. At the last close and for an end of July completion, the gross and annualised spread is 2.2% and 9.4%, respectively.
To Make the TSE Prime Market in Line with the Original Concept of the Market
- As for “liquidity,” one of the problems of TSE market restructuring, if the selection criteria for TOPIX components are raised, fewer companies will be forced to cling to prime market.
- Regarding “engagement” challenge, a solution is reducing the number of TOPIX components, since low fees and many portfolio companies of passive funds prevent investment managers from devoting resources to engagements.
- Regarding “sustainable growth” challenge, inflation would be a catalyst for learning from history, where an environment that forced all companies to change caused a change in the mindset of managers.
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