In today’s briefing:
- NTT’s Partial Offer for Marketing Consultant Intage (4326) –
- Intage Holdings (4326 JP): NTT’s Partial Tender Offer
- Budweiser APAC: Chinese Beer Makers Poised for a Breakout
- NextEd Group (NXD): Whiplash! Market Reaction to Australia’s Visa Changes Highlights the Risk.
- [Luckin Coffee (LKNCY US, BUY, TP US$44) TP Change]: Moutai Latte Is Not Just a Blockbuster
- Swatch Group: Revival Of The Swiss Brand
NTT’s Partial Offer for Marketing Consultant Intage (4326) –
- Today, NTT (Nippon Telegraph & Telephone) (9432 JP) announced a partial offer to buy a minimum of 40.0% and a maximum of 51.0% of Intage Holdings (4326 JP).
- Six crossholders holding 20.98% between them have separately agreed to tender a total of 19.9%. That means a minimum 25.4% minority participation. With success, minimum pro-ration is 51.5%.
- The dynamics of this deal and where synergies lie suggests people need to think really hard about where they underwrite future illiquid ownership.
Intage Holdings (4326 JP): NTT’s Partial Tender Offer
- NTT (Nippon Telegraph & Telephone) (9432 JP) has announced a partial tender offer for Intage Holdings (4326 JP) to make it a consolidated subsidiary.
- The offer is for a minimum of 15.4m shares (40.00% ownership ratio) and a maximum of 19.6m shares (51.00%) at JPY2,400 per share, a 26.4% premium to the undisturbed price.
- Irrevocables represent a 19.90% ownership ratio. The minimum acceptance condition requires a 20% minority acceptance rate. The offer is attractive and represents an all-time high.
Budweiser APAC: Chinese Beer Makers Poised for a Breakout
- With shares trading near its all-time low since its listing on HKEX in 3Q19, we think it could be worthwhile taking another look at Budweiser Brewing APAC (1876 HK)’s valuation.
- China’s beer industry and regional markets are expected to sustain growth momentum in Q3, driven by tourism’s impact on increased beer consumption.
- We think it’s worth keeping an eye on Budweiser APAC, as we suspect that it could start to break out from the current downtrend in the near term.
NextEd Group (NXD): Whiplash! Market Reaction to Australia’s Visa Changes Highlights the Risk.
- Agile Response to Visa Changes: NextEd’s nimble approach to the end of the COVID-19 408 visa showcases adaptability in uncertain times.
- Tech Sector Growth Potential: Expanding in the thriving tech field, NextEd taps into strong post-study work rights and sector support.
- Regulatory Challenges: Navigating regulatory shifts, NextEd’s resilience shines amid uncertainty in the non-university education landscape.
[Luckin Coffee (LKNCY US, BUY, TP US$44) TP Change]: Moutai Latte Is Not Just a Blockbuster
- Luckin Coffee’s new blockbuster Moutai Latte achieved 5.42mn cup sold with RMB100mn GMV in first day.
- We think Luckin Coffee had effectively achieved two goals through the new premium product: 1) de facto price lifting; 2) extend potential customer base and step into the monetization stage.
- We raised our 2023 revenue and non-GAAP NI on Luckin by 1.6%/4.4%. We maintain the stock as BUY rating and raise TP by US$1 to US$44/ADS.
Swatch Group: Revival Of The Swiss Brand
- Swatch Group enjoys a strong competitive position in the Swiss watch industry, with leading positions across all price segments
- Swatch Group’s 17 watch brands and 2 multi-brand retail companies demonstrate an incredible creativity and savoir-faire
- The stock is currently trading well below its 10-year historical P/E mean.
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