In today’s briefing:
- JD.com (JD US / 9618 HK): Announced 2.8% Share Buyback In 1Q24 + My 1Q24 Preview
- Stricter Voting Criteria for Domestic Asset Managers May Aim to Enhance Value Through Engagement
JD.com (JD US / 9618 HK): Announced 2.8% Share Buyback In 1Q24 + My 1Q24 Preview
- JD.com (9618 HK) announced this week that it has repurchased 2.8% of the outstanding shares of the company in the first quarter of 2024.
- Improved shareholder returns is a key thesis for the stock, given that there is little market expectation on such given limited track record.
- A positive catalyst on full year performance could be the government’s announced stimulus policy for home appliance in April this year (trading old for new).
Stricter Voting Criteria for Domestic Asset Managers May Aim to Enhance Value Through Engagement
- Stricter voting standards for domestic investment managers seem aimed at increasing value through engagement for companies that show little improvement in efforts to improve stock price and return on capital.
- Stricter voting standards for policy shareholding ratios of domestic investment management companies are expected to push companies to consider reducing cross-shareholdings. Reference to deemed shareholdings is also commendable.
- Since engagement of overseas investors has been effective in increasing value of companies, engagement by Japanese investment managers more seriously than before will contribute to enhancing the value of companies.
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