In today’s briefing:
- Yashili (1230 HK): Monthly Update Suggests that Pre-Condition Satisfaction in the Final Leg
- Today’s Fed Day to Determine Next Big Market Move? SPX Key Levels: 4100 and 3910
- DPC Dash IPO: Valuation
- Weilong Delicious IPO: Thoughts on First Day Trading
- Wynn Resorts
- Wynn Resorts
Yashili (1230 HK): Monthly Update Suggests that Pre-Condition Satisfaction in the Final Leg
- Yashili International Holdings (1230 HK)‘s latest monthly update suggests that the remaining pre-condition, the 25% Yashili acquisition, is entering the final stages towards being satisfied.
- The wording “in the course of processing the relevant application” suggests that the government authorities will grant the new registration certificate, which should be received shortly.
- The gross spread is 6.2%. The downside is low as both Danone SA (BN FP) and China Mengniu Dairy Co (2319 HK) can waive conditions to satisfy the pre-condition.
Today’s Fed Day to Determine Next Big Market Move? SPX Key Levels: 4100 and 3910
- The SPX, $IWM, $QQQ continue to have trouble breaking above their 200-day MAs and YTD downtrends, while the DJIA has been unable to sustain a breakout above 34,280.
- With that said, all four of these indexes are consolidating within tight ranges just below the aforementioned resistance levels, building energy for the eventual breakdown or breakout.
- We still recommend shifting exposure to defensives (Staples,Utilities,Health Care) and/or taking profits following this rally, but we cannot rule out potential for major upside breakouts. We discuss specific levels below.
DPC Dash IPO: Valuation
- DPC Dash (1405 HK) is the exclusive master franchisee of Domino’s Pizza in mainland China, Hong Kong and Macau with around 546 stores as of 9M2022.
- With Domino’s trailing Pizza Hut in the Chinese market, we think DPC Dash doesn’t deserve to trade on par with other leading Domino’s Master Franchisees around the world.
- Therefore, we see an opportunity to make money on the short side, once the IPO is completed.
Weilong Delicious IPO: Thoughts on First Day Trading
- Weilong Delicious Global (9985 HK) has priced its IPO at HK$10.56 per share, slightly above the bottom of the IPO price range of HK$10.4-11.4 per share.
- The company’s HK offering was oversubscribed by 10.53x while the international offering was oversubscribed by 2.6x.
- Even at the above price, Weilong’s IPO is still at a significant premium to domestic as well as international peers.
Wynn Resorts
- This is our first report on Wynn Resorts, a well-known operator of casinos and resorts across the globe.
- The company observed strength throughout the casino, with record gross gaming revenue and record hotel revenue, driven by strength in both ADR and occupancy on the nongaming side.
- In addition, Wynn is progressing with the planning for Wynn Marjan, their integrated resort in the United Arab Emirates.
Wynn Resorts
- Wynn Resorts is a renowned operator of casinos and resorts across the world.
- Wynn’s management observed strength throughout the casino, with record gross gaming revenue and record hotel revenue, driven by strength in both ADR and occupancy on the nongaming side.
- In addition, Wynn is progressing with the planning for Wynn Marjan, their integrated resort in the United Arab Emirates.
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