In today’s briefing:
- Net Marketing Japan (6175) “MBO” Tender Offer – Done Deal
- JD.com (9618 HK): Pre-2Q22 Earnings, Will Slow Down and Then Recover from Lockdown
- Authentic Brands Group/Ted Baker: Recommended Final Offer
- Orion Corp – Record Results in 2Q 2022 Bolstered By Strong Sales in China, Russia, & Vietnam
- Bruush Oral Care: This Microcap Is Out To “Own Your Bathroom”
- Khang Dien House Trading and Investment JSC (KDH VN Equity / Trading Buy) – “The Classia” project to boost profit”,”en”
Net Marketing Japan (6175) “MBO” Tender Offer – Done Deal
- Bain Capital Private Equity launched a deal for Net Marketing (6175 JP) at a 63% premium.
- That should be enough to get it done on its own, despite coming below the IPO price of 5yrs ago.
- In any case, Shareholder Structure makes this a completely done deal.
JD.com (9618 HK): Pre-2Q22 Earnings, Will Slow Down and Then Recover from Lockdown
- Many consumers bought household freezers after the lift of lockdown.
- Strict rules on physical stores drive consumers to online e-commerce platform.
- Total express parcels increased by 8% YoY in China in July.
Authentic Brands Group/Ted Baker: Recommended Final Offer
- After takeover interest started in March, quirky & ailing Ted Baker has agreed on a 110p/share cash offer from Reebok-owner ABG, (a low) 18% premium, £211 mn implied equity value, £332 mn implied EV.
- Consideration represents 5.6x EV/Fwd EBITDA, vs. 6.4x median of comparables. Although in the midst of a turnaround plan (with execution risk) and unhelpful macro environment, Ted Baker keeps brand equity.
- Irrevocables represent 50.7%. Gross spread is 1.27%, with estimated annual return of 3.99% (assuming scheme is approved and settlement by mid-December). Long.
Orion Corp – Record Results in 2Q 2022 Bolstered By Strong Sales in China, Russia, & Vietnam
- Despite unfavorable business environment such as global inflation, Orion was able to generate excellent progress in sales and profit growth in countries including China, Vietnam, and Russia in 2Q 2022.
- Orion had sales of 263.2 billion won (up 19.6% YoY) and operating profit of 35.7 billion won (up 170.3% YoY) in China.
- Due to a combination of attractive valuations and improving fundamentals along with restrictions of snacks imports from Taiwan to China, we continue to believe Orion’s shares could outperform the market.
Bruush Oral Care: This Microcap Is Out To “Own Your Bathroom”
- The emergence of new technological innovations has changed many aspects of the day-to-day life of consumers.
- While these kinds of toothbrushes have been in the market for many years, with Oral-B (Procter & Gamble) and Philips, dominating the market, consumer adoption has been limited given the premium pricing of these electric toothbrushes.
- It is a recently listed oral care company that is making highly advanced and sophisticated electric toothbrushes with sonic technology and making them available to the average American consumer at very reasonable prices.
Khang Dien House Trading and Investment JSC (KDH VN Equity / Trading Buy) – “The Classia” project to boost profit”,”en”
Valuation & Risk • Valuation: We downgrade our rating to Trading Buy (from Buy) and lower the target price to VND44,700 (from VND54,180–after stock dividend and ESOP) for Khang Dien House Trading and Investment (KDH), based on the DCF and RNAV valuation methods.
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