In today’s briefing:
- ECM Weekly (21st May 2023) – Alibaba, Cainiao, Baba Cloud, Nexus, DXN, Growatt, Rakuten, JD Ind
- Wynn Resorts Ltd: Recent Upgrades Indicate Its Time to Buy the Parent of the Macau Subsidiary
- Haier Smart Home (6690 HK): Value Emerging
- If Japan Were Treasure Trove of Value Stocks, Global Investors Would Not Underweight Japanese Stocks
ECM Weekly (21st May 2023) – Alibaba, Cainiao, Baba Cloud, Nexus, DXN, Growatt, Rakuten, JD Ind
- Aequitas Research puts out a weekly update on the deals that were covered by the team recently along with updates for upcoming IPOs.
- On the IPO front, JD.com Inc (ADR) (JD US) and Alibaba (ADR) (BABA US)‘s spin-off’s continue to draw interest.
- The REIT were out in full force this week for placements as interest rates globally appear to be approaching their peak.
Wynn Resorts Ltd: Recent Upgrades Indicate Its Time to Buy the Parent of the Macau Subsidiary
- Five sell side analysts have recently upped their PT’s on Wynn Resorts Ltf.
- Our own tracking of this company goes as far back as the ’80s to the 2000s, when we competed head to head for market share of the upscale segment.
- At US$110 it sustains its long history of trading at a premium to peers.
Haier Smart Home (6690 HK): Value Emerging
- The weak share price performance of Haier Smart Home Co Ltd (6690 HK) is unwarranted given the healthy earnings trend, solid net cash position and undemanding valuations.
- The 15.9% 1Q23 recurring earnings growth showed its low correlation with the property market while demonstrated the achievement in cost control and rising premium product contribution.
- It is set to benefit from government’s push for higher penetration of household appliances in rural areas. Meanwhile, recent Rmb depreciation may bring exchange gain for 1H23.
If Japan Were Treasure Trove of Value Stocks, Global Investors Would Not Underweight Japanese Stocks
- It’s hoped Buffett’s visit to Japan will encourage managers to review their business strategies to develop products with competitive advantage and value, so that more companies can expect sustainable growth.
- Companies with low OP Margin will need to rethink their fundamental strategy to raise OP Margin for mid-to-long term, as ROE may only temporarily rise even if cash is reduced.
- There are many stocks in Japan with low valuations, but while there are many cash cow companies, there aren’t many undervalued stocks that can generate cash flow for sustainable growth.
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