In today’s briefing:
- News Corp (NWS AU)’s Proposed Merger With Fox Corp. Again.
- Bikaji Foods International IPO – At an Equally Spicy Valuation
- Panasonic (6752) | Following the Yellow Brick Road to Battery Profits
- KT&G Announces a Share Buyback Worth 350 Billion Won
- A Pair Trade Between Nongshim Co & Nongshim Holdings (Youlchon Chem Is Breaking Out)
- Giant Biogene: Thoughts on First Day Trading
- TV Tokyo Leads Vietnamese Digital Entertainment Firm’s Series D Round
- Match Group 3Q22: Turnaround Brewing?
- VF Corporation: Major Drivers
News Corp (NWS AU)’s Proposed Merger With Fox Corp. Again.
- Back on the 17 October, News Corp (NWS AU) announced it had begun exploring a potential combination with Fox Corporation (FOXA US).
- A merger of two parts of Rupert Murdoch’s media empire would combine Fox News and TMZ assets with NWS’ newspaper and online news operations.
- Murdoch split his empire in 2013, placing the print business in a newly created NWS, and the TV and entertainment under Fox,
Bikaji Foods International IPO – At an Equally Spicy Valuation
- Bikaji Foods (BIKAJI IN) , an ethnic snacks company, is looking to raise approximately US$107m in its India IPO.
- Its product range includes six principal categories: bhujia, namkeen, packaged sweets, papad, western snacks as well as other snacks which primarily include gift packs, frozen food, mathri range and cookies.
- In our previous note, we looked at the company’s past performance. In this note, we’ll talk about implied valuations.
Panasonic (6752) | Following the Yellow Brick Road to Battery Profits
- The US Inflation Reduction Act will have a massively positive impact on Panasonic’s battery earnings for a decade
- Panasonic has just broken ground on a new battery plant in Kansas – the yellow brick road to further profitability
- We see a further 25% upside to the share price from the IRA impact on current battery capacity and even more on Kansas
KT&G Announces a Share Buyback Worth 350 Billion Won
- On 3 November, KT&G announced that it will buy back 350 billion won worth of common shares (3.7 million shares).
- KT&G has mentioned that it could increase its DPS by at least 200 won in 2022. Assuming DPS of 5,000 won in 2022 would suggest a dividend yield of 5.3%.
- KT&G had another solid results in 3Q 2022 slightly beating the consensus sales and operating profit estimates.
A Pair Trade Between Nongshim Co & Nongshim Holdings (Youlchon Chem Is Breaking Out)
- In this insight, we discuss a pair trade of Nongshim Holdings (072710 KS) (go long) and Nongshim Co Ltd (004370 KS) (go short).
- We believe the price gap between these two stocks have widened too much in the past six months and this gap is likely to decrease again.
- Nongshim Holdings’ stake in Youlchon Chem has been rising rapidly in the past six months which should also act as a positive catalyst on Nongshim Holdings.
Giant Biogene: Thoughts on First Day Trading
- Giant Biogene has priced its IPO at HK$24.30 per share, at the lower end of the company’s indicative IPO price range of HK$24.3-27.7 per share and raised HK$495.8m (US$63.2m).
- The HK offering was oversubscribed by only 2.08 times while the international offering was subscribed by 4.22 times.
- Though Biogene’s IPO was priced attractively, we think lower demand for the company’s shares led to pricing at the bottom of the IPO price range.
TV Tokyo Leads Vietnamese Digital Entertainment Firm’s Series D Round
- Vietnam-based Pops Worldwide, a digital entertainment firm, has raised an undisclosed amount in its series D round.
- While it did not disclose the size of the deal, the firm previously told Tech in Asia that it had planned to raise US$50 million for its series D round.
- Founded in 2008 by Esther Nguyen, Pops has 690 million viewers across its OTT, YouTube, TikTok, and Facebook platforms.
Match Group 3Q22: Turnaround Brewing?
- After a massive guidedown last quarter, Match is beginning to show stability in the business, and offered a cautiously optimistic return to growth guide for 2023.
- Tinder rebuild underway, 16% FX-Neutral growth was 2% ahead of consensus and drove the quarter’s beat.
- 5-Pronged plan by new CEO Kim seems well thought out for what ails Match.
VF Corporation: Major Drivers
- VF Corporation is operating in a challenging macro-economic backdrop and delivered a disappointing quarterly result.
- The company barely managed to meet revenue expectations given a weak performance in China and also missed out on earnings expectations.
- Apart from China, VF Corporation has witnessed an improvement across the rest of Asia, led by Japan and Korea.
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