In today’s briefing:
- Alibaba (9988 HK): Daniel Steps Down as Jack Changes Strategy
- Eisai Co (4523 JP): Alzheimer’s Drug Approaching Full FDA Approval; Other Countries to Follow Soon
- Taste Gourmet: Expansion in Full Swing, Set Up For A Great 2024
- The Business of CMS Info Systems
- Ricegrowers Limited (SunRice)- FY23 Earnings Beat and FY24-FY26 Upgrades
- REIT Watch – S-REITs actively manage impact of rising rates; average ICR at 4.3 times
- The Art of Resilience
Alibaba (9988 HK): Daniel Steps Down as Jack Changes Strategy
- Daniel Zhang stepped down from the Chair and CEO and moved to be the head of cloud intelligence.
- The retail focus will move from physical store and branded product to a platform for third-party retailers.
- We believe the strategy change is correct in the weak consumption market.
Eisai Co (4523 JP): Alzheimer’s Drug Approaching Full FDA Approval; Other Countries to Follow Soon
- Eisai Co Ltd (4523 JP) is expected to receive full approval from the FDA for Alzheimer’s disease drug, Leqembi, as FDA advisory committee voted unanimously in support of the drug.
- Leqembi application has been granted Priority Review, with PDUFA action date of July 6. Once the FDA grants traditional approval, broader Medicare coverage for Leqembi would begin the same day.
- Leqembi is expected to receive approval in Japan, EU, and China in FY24. With these approvals, Leqembi is expected to become the top selling Alzheimer’s disease drug globally.
Taste Gourmet: Expansion in Full Swing, Set Up For A Great 2024
- Taste Gourmet (8371 HK) reported earnings of 68 mn HKD for FY23 (including impairments of 3.2 mn HKD). Adjusting for impairments, earnings were in line with our estimates.
- The company signed ten new leases in HK, which are expected to commence over the next 5-6 months taking the total restaurant count in HK to 49.
- Trading at 5.6x PE FY24e with a dividend yield of 10.7% based on a 60 payout ratio, we see a further inflection in earnings in FY24 with new restaurant openings.
The Business of CMS Info Systems
- Rajiv Kaul had it all. By 2008, he had won the proverbial game of life.
- Armed with an engineering degree from BIT Mesra and an MBA from XLRI Jamshedpur, Rajiv joined Microsoft in 1992 and quickly rose the ranks to become its youngest managing director at the age of 33.
- After a stint of 14 years, Rajiv left the comfort and familiarity of Microsoft for the shores of Private Equity.
Ricegrowers Limited (SunRice)- FY23 Earnings Beat and FY24-FY26 Upgrades
- Ricegrowers Limited, trading as SunRice (ASX:SGLLV), has reported its FY23 results and provided some outlook commentary for FY24.
- The FY23 result delivered adjusted revenue growth of 23%, EBITDA growth of 28%, NPAT growth of 18% and EPS growth of 14%, all above RaaS’ estimates.
- The full-year dividend was raised from $0.40/share to $0.50/share (fully franked yield of 7.3%) and we view this level as sustainable near- term given outlook comments and have increased our assumptions accordingly.
REIT Watch – S-REITs actively manage impact of rising rates; average ICR at 4.3 times
- S-REITs actively manage impact of rising rates; average ICR at 4.3 times Higher interest rates have typically been associated with higher borrowing costs and therefore lower distributions available for unitholders.
- To hedge the impact of rising rates, S-REITs have been actively managing interest rate exposures.
The Art of Resilience
- In the face of potential recession and inflationary pressures, the luxury goods market stands out from its peers.
- This resilience can largely be attributed to strong pent-up demand following pandemic lockdowns, coupled with the spending power of high-end consumers.
- One of the leaders of the space is Global Blue Group, a tax-free shopping-focused company that had a turbulent introduction to public markets in 2020, through a SPAC deal, amidst the pandemic.
💡 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
