In today’s briefing:
- Second Chance Properties (SCE SP): MSM Makes A Move
- HKTV (1137 HK): HK$2.15 Share Buyback Is Unconditional
- Shinsung Tongsang (005390 KS)’s Cheeky Delisting Offer
- Tesla Q2 Earnings Preview: All Eyes on China, Energy Storage, & Robotaxi
- Second Chance Properties (SCE SP): Voluntary Unconditional Offer at S$0.30
- Puig Brands Joins the IBEX35
- [CB 27/2024] Wheat & Bean Up on Improving Demand as Corn Tumbles on Benign Planting & Solid Harvest
- VRA; 2H Signposts; All About the “New Day;” Reiterate Buy Rating, $10 PT
- Pvh Corp – VNCE: 2H Signposts: Showing What Vince Can Do; Reiterate Buy, $3 PT
- Corn & Soybeans Yields Stand to Benefit from Storm Beryl Even as It Leaves Destruction in Its Path
Second Chance Properties (SCE SP): MSM Makes A Move
- Founder/CEO Mohamed Salleh Maricar (MSM) and his family have made a voluntary unconditional general Offer for the 14.94% in gold/jewellery retailer Second Chance Properties (SCE SP) (“SCP”) not held.
- The S$0.30/share cash Offer is a 39.5% premium to last close. The Offer price is final.
- The Offer is unconditional in all respects. This will trade tight. A delisting Offer is next on the cards.
HKTV (1137 HK): HK$2.15 Share Buyback Is Unconditional
- The Hong Kong Television Network (1137 HK) vote on the share buyback for a maximum of 100.0m or 11.25% of outstanding shares at HK$2.15 was comfortably passed at the EGM.
- The partial offer is designed to help the co-founders bypass the creeper rule and increase their grip on the shares. There is no minimum acceptance condition.
- While the IFA opines the offer is fair and reasonable, it is unattractive. A 100% minority participation rate implies a minimum proration of 20.74%. The offer closes on 23 July.
Shinsung Tongsang (005390 KS)’s Cheeky Delisting Offer
- Last month, apparel play Shinsung Tongsang (005390 KS) announced a Tender Offer from Canaan Co for 22.02% of shares out, at ₩2,300/share, a 15.84% premium to undisturbed.
- Canaan Co. and related parties hold a combined stake of 77.68%, which increases to 99.7% IF the Offer is successful. Canaan needs 95% to force delisting.
- Shinsung’s share price has languished over the past 12 months or so, despite improving market share and earnings. Getting to 95% might be a stretch. In need of a bump?
Tesla Q2 Earnings Preview: All Eyes on China, Energy Storage, & Robotaxi
- Energy Growth: Tesla’s energy storage business surged to 9.4 GWh in Q2, a 135% increase from Q1’s 4 GWh.
- China’s Impact: Shanghai Gigafactory shipments fell 24.2% YoY in June, delivering 71,007 units amid a Chinese price war.
- FSD & Robotaxi: Full Self-Driving price cut to $8,000 from $15,000; investors await Robotaxi Day on 8/8.
Second Chance Properties (SCE SP): Voluntary Unconditional Offer at S$0.30
- Second Chance Properties (SCE SP) has disclosed a voluntary unconditional offer from Mohamed Salleh’s family at S$0.30 per share, a 39.5% premium to the undisturbed price (10 July).
- The offer document will be despatched by 31 July. The offeree circular will be despatched by 7 August at the earliest, implying the earliest close of 28 August.
- The offer price has been declared final and is attractive as it represents an all-time high. The offeror will likely achieve the 90% compulsory acquisition threshold.
Puig Brands Joins the IBEX35
- The Technical Advisory Committee (CAT) in an extraordinary meeting adds Puig Brands (PUIG SM) to the IBEX 35 index and removes Melia Hotels International Sa (MEL SM).
- Although Puig Brands has only been publicly traded since 3 May, its market value exceeds €14.5 billion and its trading volume makes it deserving of a spot in the IBEX.
- Puig Brands is expected to see at least a 50% increase in trading volume by July 22, potentially adding four to eight additional days of trading volume.
[CB 27/2024] Wheat & Bean Up on Improving Demand as Corn Tumbles on Benign Planting & Solid Harvest
- Recent acreage report shows benign planting figures and solid ending stocks for Corn sending its prices lower. Wheat also declined on higher stocks, while Soybeans rebounded.
- Wheat faces headwinds & tailwinds. Fundamentals are dragged down by favorable weather in exporting countries & imminent US harvest; Strong US demand & weak EU forecast has supported prices.
- Soybeans appear well supported from an unlikely ally in Trump. Import Duty tit-for-tat could see China slapping duty on Soy imports.
VRA; 2H Signposts; All About the “New Day;” Reiterate Buy Rating, $10 PT
- We are reiterating our Buy rating, $25 price target and projections for Vera Bradley as we look forward to 2H24.
- Not surprisingly, our focus is on the start of the New Day, which is the relaunch of the company’s main line stores to reflect management’s vision, scheduled for July 11th, and the associated shifts for the company’s outlet locations in August.
- We believe this shift, which will impact all pieces of the store (and online) shopping experience, represents a bold move by management to fundamentally change the Vera Bradley shopping experience, making it more relevant to a wider range of consumers, easier to shop and offering both the pattern driven and feature driven shoppers compelling choices.
Pvh Corp – VNCE: 2H Signposts: Showing What Vince Can Do; Reiterate Buy, $3 PT
- We are reiterating our Buy rating, $3 price target and projections for Vince as we look forward to 2H24.
- We believe, as the company finally enters a period of “apples to apples” comparisons, Vince will be able to fully demonstrate the material positives blooming in the business model, from strong fashion looks, lower discounting in the outlet and main line channels, gains from better sourcing and a continued emphasis on cost controls.
- Further, as 2H rolls forward as a positive, we believe the company will be able to, on a much more credible basis, focus investors on the potential material gains from increasing the overall penetration in men’s wear, adding more stores to the mix and expanding internationally, all of which should refocus investors on VNCE.
Corn & Soybeans Yields Stand to Benefit from Storm Beryl Even as It Leaves Destruction in Its Path
- Hurricane Beryl started out as a category 5 hurricane, made landfall on the Texas Coast early Monday (08/July) & weakened to a Tropical Depression.
- Beryl has weakened and likely not significantly impact corn and soybean prices in the long run. Storm led rains will likely have a bearish effect on prices.
- Beryl might bring much needed rain to Illinois, Indiana, and parts of Ohio, potentially providing favorable weather for corn and soybean growth in these areas.
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