In today’s briefing:
- Beenos: Big Buybacks Forthcoming
- Mitra Adiperkasa (MAPI IJ) – Vibrant Start to Very Different Year
- AMD Q1’23 Revenue $5.4 Billion, -3.5% QoQ, -9% YoY. Q2 Flat Sequentially.
- Minth: Buy
- Meituan’s Strategies to Compete with Douyin: A Review of the Latest Three
- Focus Media (002027 CH): Light at the End of Tunnel
- Fiserv: Achieving Industry-Leading Returns Is Not As Hard As You Might Think
- Kazatomprom NAC (KAP LI): Strong Fundamentals and Improving Demand Supply Dynamics.
- Black Rock Mining Ltd – Well Advanced for a Low Capex, High Margin/Return Project
- Rent.com.au Ltd – Tight Housing Market Bites on Advertising, RentPay Shines
Beenos: Big Buybacks Forthcoming
- Beenos Inc (3328 JP) is currently one of the cheapest stocks in the Japanese e-commerce sector with a consensus FY+2 EV/OP of 4.5x with an OP CAGR of around 130%.
- In addition, the relatively cheap-looking valuation multiple excludes the current valuation of Beenos’ incubation program investments.
- We think Beenos can sell its stake in GoTo in the short-term to conduct a big share buyback as the management thinks that Beenos is unfairly valued by the market.
Mitra Adiperkasa (MAPI IJ) – Vibrant Start to Very Different Year
- Mitra Adiperkasa (MAPI IJ) 1Q2023 numbers reflected a strong start to the New Year, with vibrant sales growth, improved profitability, and growth across all segments.
- The company maintained the momentum behind its omnichannel strategy with online sales making up 8.1% of total sales despite more offline activity as COVID restrictions were dropped.
- Mitra Adiperkasa continues to expand its footprint both in Indonesia and with selective brands in South-East Asia, most recently in the Philippines. Valuations are attractive versus historical levels.
AMD Q1’23 Revenue $5.4 Billion, -3.5% QoQ, -9% YoY. Q2 Flat Sequentially.
- Q1’23 revenues of $5.4 billion, down 3.5% QoQ, down 9% YoY, but marginally ahead of the guided midpoint.
- AMD’s outlook for the current quarter is for revenues of $5.3 billion at the midpoint, basically flat sequentially:
- Data center revenues will grow 50% sequentially in H2’23 compared to H1’23
Minth: Buy
- Minth’s stock price has been weak in the past year but its improving fundamentals started to reflect in the results in 2H22.
- 2023 revenue growth will be supported by the overseas auto market recovery and fast-growing battery housing business.
- Minth’s valuation is near historical low and is at a discount to its peers
Meituan’s Strategies to Compete with Douyin: A Review of the Latest Three
- Meituan has recently implemented three strategies to compete with Douyin: a low-price strategy, the addition of more video/live streaming content, and a management reorganization.
- The low-price strategy has already shown some promising results, as seen in the slowdown of Douyin’s local service GTV and the number of new merchants joining its platform.
- However, the effectiveness of the other two strategies, particularly Meituan’s push to add more video content, remains unclear.
Focus Media (002027 CH): Light at the End of Tunnel
- Urbanization and brand premiumization are Focus Media’s two long term structural drivers which will keep broadening its audience and advertiser base.
- 1Q23 results end a 5-quarter streak of profit decline and mark the start of new profit cycle. This will usher in a meaningful stock re-rating if history is a guide.
- We expect at least 30% upside by the end of 2023 by applying 25x P/E (still at large discount to last profit cycle) on RMB4.9 billion net profit for 2023.
Fiserv: Achieving Industry-Leading Returns Is Not As Hard As You Might Think
- Fiserv’s delivered a 30% return since October of last year, when I laid out my full investment thesis.
- Fiserv is laying the groundwork for long-term growth, says the company’s market commentators.
- The company continues to outmaneuver its direct competitors, according to analysts.
Kazatomprom NAC (KAP LI): Strong Fundamentals and Improving Demand Supply Dynamics.
- Kazatomprom is the world’s largest Uranium miner with the lowest cost of production.
- The company has strong fundamentals with demand supply dynamics expected to steadily become more favorable going forward.
- Geopolitical concerns, which is the main reason for its low P/E, should subside as time passes by.
Black Rock Mining Ltd – Well Advanced for a Low Capex, High Margin/Return Project
- Black Rock Mining Ltd (ASX:BKT) is developing the Mahenge natural graphite project in Tanzania, eastern Africa and is well advanced in defining and planning a low capex, high margin, high return operation.
- The company holds an 84% interest in Mahenge with the Tanzanian government retaining a free-carried 16% stake.
- Mahenge is one of the largest JORC-compliant flake graphite resources globally and is well positioned to benefit from growing global demand for natural graphite from use in Li-ion batteries.
Rent.com.au Ltd – Tight Housing Market Bites on Advertising, RentPay Shines
- Rent.com.au Limited (ASX:RNT) is a purpose-led company seeking to empower home renters through their technology platform and a growing number of aligned transactional services.
- The company has reported Q3 FY23 revenue of $0.631m, down 26% on the previous corresponding period (pcp) but up 4% on the December quarter.
- Underlying EBITDA was an estimated loss of $0.78m, compared with an EBITDA loss of $0.36m in Q3 FY22 with the bulk of the loss attributable to the investment in RentPay.
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