In today’s briefing:
- Sumber Alfaria Trijaya (AMRT IJ) – The Digital Pantry of the Middle Classes
- Koolearn (1797 HK): Dimmer Outlook Not yet Priced In
- Aristocrat Leisure: Buy of NeoGames & New Asian Focus Reinforces a Long Term Bullish Outlook
- Axel Johnson/Dustin Group AB: Mandatory Offer
Sumber Alfaria Trijaya (AMRT IJ) – The Digital Pantry of the Middle Classes
- Sumber Alfaria Trijaya (Alfamart) continues to book solid growth in its core mini-market business but is now pushing harder with both larger format Alfamidi and Lawson convenience stores formats.
- 89%-Owned Midi Utama Indonesia (Alfamidi) recently announced a rights issue to finance the expansion of Alfamidi and Lawson underpinning its more aggressive expansion plans.
- Sumber Alfaria Trijaya booked solid 1Q2023 numbers for its core business and continues to grow its digital connections and collaborations as an integral offline leg of the digital economy.
Koolearn (1797 HK): Dimmer Outlook Not yet Priced In
- We cautioned investors about the excessive optimism around the company’s growth potential a few months ago.
- Its growth momentum has since rapidly diminished, at a pace that also surprises us and points to a dimmer outlook.
- Despite rounds of downward earnings revision, we still see further downside risks to earnings. We expect 20-30% decline in share price by end of this year.
Aristocrat Leisure: Buy of NeoGames & New Asian Focus Reinforces a Long Term Bullish Outlook
- The gaming equipment and systems leader offers line of new Dragon themed slot machines for upcoming Year of the Dragon as spear point of expanded Asian goals.
- Acquisition of Israel’s NeoGames at US$1b follows failed bid last year to acquire Playtech. Move will strengthen digital footprint for sports betting and iLottery.
- We have been bullish for five years on ALL as its shares have outperformed the market.
Axel Johnson/Dustin Group AB: Mandatory Offer
- On 27 June, Axel Johnson said it had crossed the 30% threshold and would launch a mandatory offer for all shares of Dustin Group AB (DUST SS) at SEK 28.5/share
- Axel Johnson doesn’t seem particularly interested in completing a takeover, rather being able to increase its stake after offer completion. The offer document isn’t even available in English.
- The offer represents -4.2% to 1-month VWAP, 0.31x EV/Fwd sales (vs. 0.66x average since IPO). I wouldn’t get involved unless the share price drops below SEK 28.5.
💡 Before it’s here, it’s on Smartkarma
Sign Up for Free
The Smartkarma Preview Pass is your entry to the Independent Investment Research Network
- ✓ Unlimited Research Summaries
- ✓ Personalised Alerts
- ✓ Custom Watchlists
- ✓ Company Data and News
- ✓ Events & Webinars
