In today’s briefing:
- Smartkarma Corporate Webinar | Taste Gourmet: Management Call on HK/China Reopening Impact
- JCNC Is Even More Overstretched Vs. Astra
- China Dongxiang (3818 HK): Extremely Deep Discount to Cash and Investments
- Petrodollars Fan Olam’s Agri Listing In Singapore And Saudi Arabia
- EVA Precision: Updates, Poised For a Rally
- Lawson: Underappreciated China Expansion & Expanding Domestic Profitability Warrants an Upside
- Rept Battero IPO: Intense Competition and Highly Scaled Competitors Stave Off Profits
- Hilton Worldwide Holdings Inc.: Initiation of Coverage – Business Strategy & Key Drivers
- Aequitas 2023 Asia IPO Pipeline – India, ADRs, Korea, Japan and ASEAN
- Hilton Worldwide Holdings Inc.: Detailed Credit Analysis & Financial Strength Evaluation Report
Smartkarma Corporate Webinar | Taste Gourmet: Management Call on HK/China Reopening Impact
For our next Corporate Webinar we are glad to welcome Executive Chairman and Co-Founder, Kent Wong and CFO and Company Secretary, Gerald Yu. They will share a short company presentation after which, they will engage in a fireside chat with Smartkarma Insight Provider, Sameer Taneja. The Corporate Webinar will include a live Q&A session.
The Corporate Webinar will be hosted on Friday, 13 January 2023, 14:00 SGT.
About Taste Gourmet
Taste Gourmet Group Limited (8371 HK) is a Hong Kong based restaurant group offering a variety of cuisines under a portfolio of brands to a diversified customer base. Since the opening of its first restaurant in 2007, the group owned and operated a total of 34 restaurants offering Vietnamese, Japanese, Chinese, Western and Drink under 14 brands, comprising 11 self-owned brands such as La’taste Vietnamese Cuisine, Dab-Pa Peking & Szechuan Cuisine, Dab-Pa Peking & Szechuan Bistro, Dab-pa Modern Chinese Cuisine, Urawa Japanese Restaurant, Nabe Urawa, Rakuraku Ramen, Wasyohuya Yamaichi, Moments Together, Yakiniku Guu, San-Kinn; 3 licensed brands known as Parkview, Takano Ramen and Tirpse; and 1 joint venture brand known as Xianghui.
Corporate Webinars by Smartkarma Corporate Solutions feature discussions with IROs and Executives, discussing their companies, the challenges they face, and the opportunities in their sectors and markets.
JCNC Is Even More Overstretched Vs. Astra
- Jardine Cycle & Carriage (JCNC SP)‘s is currently trading tight at a ~6% discount to NAV.
- The implied stub and JCNC/Astra International (ASII IJ) ratio are the highest outside the 2008 financial crisis.
- Key catalysts for JCNC’s outperformance, such as the SIMSCI Index inclusion, have passed. JCNC is trading rich. Look to reverse the stub.
China Dongxiang (3818 HK): Extremely Deep Discount to Cash and Investments
- With the recent rally in the equity markets in Hong Kong and China, we think the asset play investment thesis for China Dongxiang Group Co (3818 HK) has revived.
- We estimate its investment portfolio value may have increased by HK$2bn since end-Sep, yet market capitalisation only rose HK$500m, suggesting still significant 77% discount.
- Encouraging recent developments at Alibaba Group (9988 HK) and Ant Financial, which both are its holdings, are positive. The reduction is losses for sportswear business is an added driver.
Petrodollars Fan Olam’s Agri Listing In Singapore And Saudi Arabia
- After selling a 35.43% stake in Olam Agri to Saudi Arabia’s Public Investment Fund last month, Olam Group (OLG SP) intends to dual list the company in Singapore and Saudi Arabia.
- The stake sale implied a US$3.5bn value for the agricultural arm, or ~50% of OGL’s current market cap based on its remaining position in Olam Agri.
- Olam Agri may raise up to US$1bn via the listing. A separate London listing of OGL’s food ingredient business is expected to occur subsequent to Olam Agri’s listing.
EVA Precision: Updates, Poised For a Rally
- Eva Precision Industrial Holdings (838 HK) has come off its lows but still trades at an attractive 7.8x/5x PE FY22e/23e and a dividend yield of 3.8%/5.9% FY22e/23e (assuming 30% payout).
- The auto business should be propelled forward by orders from EV stalwarts, BYD, Nio, Tesla, etc. We expect the auto business (30% of revenue) to grow 50% in 2023.
- Another two catalysts we look forward to are the split of the auto business to unlock value and the completion of the buyback announced by the company in 2022.
Lawson: Underappreciated China Expansion & Expanding Domestic Profitability Warrants an Upside
- Lawson’s Q3 OP of ¥16.2bn was around 20% above consensus suggesting that the company’s profitability is starting to outperform after being held back by upfront investments on store renovations.
- Although this is the 3rd beat in a row, Lawson Inc (2651 JP)’s guidance has remained unchanged and the consensus OP only saw a marginal improvement.
- After ignoring for so long, we think investors could soon start noticing Lawson’s growth prospects in China as the business there is starting to turn profitable.
Rept Battero IPO: Intense Competition and Highly Scaled Competitors Stave Off Profits
- Rept Battero is a lithium-ion battery manufacturer focusing on lithium-ion EV battery products and ESS battery products. The company has filed for an IPO on the Hong Kong Stock Exchange.
- The company had recorded strong growth over all its battery segments and was the fastest growing battery manufacturer among top 10 lithium-ion battery manufacturers in China.
- However, we find the company’s inability to generate profits at gross profit level concerning.
Hilton Worldwide Holdings Inc.: Initiation of Coverage – Business Strategy & Key Drivers
- This is our first report on Hilton Worldwide, one of the largest hotel chains in the world.
- Despite the good performance, Hilton failed to meet Wall Street expectations with respect to revenues but it did manage an earnings beat.
- We initiate coverage on the stock of Hilton Worldwide Holdings with a ‘Hold’ rating.
Aequitas 2023 Asia IPO Pipeline – India, ADRs, Korea, Japan and ASEAN
- In this note, we will take a look at the Asia Pacific IPO pipeline for 2023, specifically for India, Asia-linked ADRs, Korea, Japan and ASEAN.
- This list has been compiled on a best effort basis from tracking the company filings and through various other sources.
- The deals you see in this note are only a part of our full IPO pipeline tracker. Feel free to drop us a message for additional information on these IPOs.
Hilton Worldwide Holdings Inc.: Detailed Credit Analysis & Financial Strength Evaluation Report
- Hilton Worldwide is one of the largest hotel chains in the world.
- Hilton’s management also announced several strategic alliances to strengthen their international network and improve the guest experience.
- All categories saw rates rise above levels from 2019, with transitory leisure rates rising into the high teens and business transient and group rates rising into the mid-single digits.
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