In today’s briefing:
- S&P/ASX 200 Index Adhoc Change: Light & Wonder (LNW) To Replace UMG
- Seven & I: Unimpressive Results & Potential Investor Exodus Amidst Superstore Transformation
- Anta Sports (2020 HK): Strong 3Q23 Update
- Naspers: Discount to Prosus Market Value Reaches Narrowest Level Since Prosus Listing
- Quick Look – Lifull (2120 JP)
S&P/ASX 200 Index Adhoc Change: Light & Wonder (LNW) To Replace UMG
- Shareholders have approved United Malt Group Ltd (UMG AU)‘s acquisition by Malteries Soufflet and UMG is expected to stop trading after the close on 17 October.
- United Malt Group Ltd (UMG AU) will be replaced by Light & Wonder (LNW AU) in the S&P/ASX 200 (AS51 INDEX) at the close on 17 October.
- This is a surprise and there is unlikely to be a lot of pre-positioning on Light & Wonder (LNW AU). Buy Light & Wonder (LNW US) during US hours.
Seven & I: Unimpressive Results & Potential Investor Exodus Amidst Superstore Transformation
- Seven & I Holdings (3382 JP)‘s FQ2 OP exceeded consensus by ¥2.0bn (1.3%), but with FH2 revenue guidance lowered by ¥95bn, the overall outlook appears discouraging.
- The company’s shares fell by 5%, underperforming Topix by 3.8%, indicating investor concern about US growth and departing from activist proposals despite a ¥2.0bn earnings outperformance.
- If overseas investors who supported ValueAct’s proposals begin to exit, Seven & I could face substantial downside risks in the near term.
Anta Sports (2020 HK): Strong 3Q23 Update
- Anta Sports Products (2020 HK) announced a set of strong 3Q23 operating data yesterday after market close.
- Both Anta and Fila brands performed well in a challenging macro environment in China in 3Q23, with 3Q22 being a high base.
- Another bright spot is that other brands outside of Anta and Fila grew 45-50% yoy in 3Q23, with Descente up 40-45% yoy and Kolon up 65-70% yoy.
Naspers: Discount to Prosus Market Value Reaches Narrowest Level Since Prosus Listing
- In yesterday’s trading session, Naspers and Prosus followed the market lower leading up to and after the US CPI print (headline worse than expected, core inline).
- Naspers and Prosus closed 1.4% and 1.9% lower, reducing Naspers’ discount to Prosus’ market value to its narrowest level since Prosus listed. The discount closed at 10.4% (currently 10.9%).
- Naspers has outperformed Prosus by 2.2% during the last 3 trading days.
Quick Look – Lifull (2120 JP)
- Company Profile: LIFULL runs the LIFULL Home’s real estate website.
- Compared to its main rival, whose strategy is focused mainly on the quantity of listings, LIFULL’s aim is to achieve greater quality, as measured by the percentage of inquiries that lead to sales for professional real estate clients.
- While others primarily charge a fixed fee for listings, LIFULL charges a combination of fixed fees and incentive fees based on the number of inquiries received for a listing.
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