In today’s briefing:
- JCNC’s Logic-Defying Valuation
- PT Metrodata Electronics (MTDL IJ) – The Digital Transformer
- Formula One Group: Initiation of Coverage – Major Partnerships & Other Key Drivers
- Formula One Group: Detailed Credit Analysis & Financial Strength Evaluation Report
JCNC’s Logic-Defying Valuation
- Jardine Cycle & Carriage (JCNC SP)‘s implied stub value is around its highest-ever level, dating back to 2004.
- The simple ratio of JCNC/ Astra International (ASII IJ) is also the highest level outside the brief spikes post-Covid and during the 2008 GFC.
- There is no apparent justification for the current valuation. And a takeover from Jardine Matheson Holdings (JM SP) at these levels appears unrealistic.
PT Metrodata Electronics (MTDL IJ) – The Digital Transformer
- PT Metrodata Electronics had a strong finish to the year with FY2022 net profit growth of +14.1% YoY driven by both its ICT distribution and Solutions & Consulting (S&C) businesses.
- The S&C business continues to thrive on Indonesia’s ongoing digitalisation, especially in the financial sector with the advent of digital banking but also in the telecom and oil&gas sectors.
- PT Metrodata sees a slower outlook for the consumer outlook but strong momentum behind commercial sales and S&C as digitalisation continues, and new growth from the Public Sector. Valuations attractive.
Formula One Group: Initiation of Coverage – Major Partnerships & Other Key Drivers
- This is our first report on a global media and entertainment player, Formula One Group.
- Its fourth quarter result was mixed and the company surpassed the revenue expectations of Wall Street but missed out on meeting earnings expectations.
- The company introduced a new brand campaign in the quarter to demonstrate F1’s position in the sporting and entertainment worlds.
Formula One Group: Detailed Credit Analysis & Financial Strength Evaluation Report
- Formula One Group is major global media and entertainment company with decent fundamentals.
- The management anticipates Ford’s contribution as a technical engine supplier will be valuable for the sport and Red Bull.
- Baptista Research looks to evaluate the different credit strengths and credit risks of the company as well as a line-by-line analysis of the financial statements of the company for the past four years.
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