In today’s briefing:
- BUY/SELL/HOLD: Hong Kong Stocks Update (July 15)
- Money Forward (3994) | Metronomic Growth
- Wasion (3393): Smart Power Meter
- DCI Indonesia (DCII IJ) – More Than a Concept
- Vega’s Lowya Expanding Omnichannel to Grow Audience
- China Shineway Pharmaceutical (2877.HK) – Negative Growth in 24H1 Seems Inevitable
- APAC Luxury Industry Series Update: Travel Rebounds While Goods Decline
- Centurion CEO Kong Chee Min adds to interest at S$0.59 per share
- BRBY: New CEO & Yet More Bad News for the Troubled Retailer
- Hisamitsu Pharmaceutical (4530 JP): Mixed Performance in Q1FY25; No Change in FY25 Guidance
BUY/SELL/HOLD: Hong Kong Stocks Update (July 15)
- Hong Kong market still trades at a substantial discount to Analyst year end price targets.
- Budweiser APAC is dependent on China’s consumer to lift sales while Anta Sports is targeting increased sales from the upcoming Paris Olympics.
- Sunny Optical is seeing substantial growth from it EV segment and Haitian continues to grow its international sales. Shineway RX is a rare value play in the pharmaceutical sector.
Money Forward (3994) | Metronomic Growth
- Money Forward released Q2 results post market close on Friday. Revenue growth of +41% YoY beat our estimates by 7%.
- We highlight continued solid financial metrics supported by growth in SaaS ARR and in particular mid-sized corporate growth.
- No change to our bullish long-term view on the company. Stock has run up around 11% ahead of earnings but we see further 20%+ upside from here.
Wasion (3393): Smart Power Meter
- Energy is scarce, thus, besides renewable energy, energy efficiency should also be the key focus.
- Wasion Group Holdings (3393 HK) customers have grown from domestic grids to both non-grid and grid domestic as well as overseas customers (Latin America).
- Despite a 65% YTD return, it is still trading at 11x PER, with a 4% dividend yield, 6x EV/EBITDA, and 1.2x PBR.
DCI Indonesia (DCII IJ) – More Than a Concept
- DCI Indonesia (DCII IJ) is Indonesia’s leading operator of Tier 4 data centres, which require the highest operational standards, with its main business in co-location services.
- The company has a long track record of growth in both sales and profits, making it more than a concept, with a well-thought-out expansion at its three existing data centres.
- DCI Indonesia is hard to justify on current valuations but has a strong track record on execution with a high pedigree management team and customer base, with backing from Salim.
Vega’s Lowya Expanding Omnichannel to Grow Audience
- Lowya began as an online furniture retailer and is still one of the largest in e-commerce, but limited brand awareness has held it back and sales fell last year.
- Vega Corporation, Lowya’s parent, is now expanding physical stores and offering omnichannel solutions to fix the problem.
- This makes sense in a market where stores remain preeminent and are likely to remain so.
China Shineway Pharmaceutical (2877.HK) – Negative Growth in 24H1 Seems Inevitable
- Three business segments of Shineway showed negative YoY growth in 24Q1. 24Q2 performance could remain sluggish. We’re not optimistic about the 24H1 results due to the high base in 23H1.
- It is expected that Shineway’s growth in 24H2 would pick up. If revenue growth of Shineway in 2024 full-year could be double-digit (e.g. 10-15% YoY), it is already good.
- Shineway is undervalued. It has sufficient cash (cash balance of RMB5.9 billion by 2023) and is willing to distribute dividends (usually twice a year). Shineway is suitable for long-term holding.
APAC Luxury Industry Series Update: Travel Rebounds While Goods Decline
- This is the final installment in our series on the APAC Luxury Industry, where we highlighted that luxury travel might offer more appealing opportunities than traditional luxury goods.
- While travel has surpassed pre-pandemic levels, traditional luxury goods have shown very low demand in recent months.
- Below, we analyze recent trends in luxury travel for Mandarin Oriental International (MAND SP), Minor International (MINT TB), and Shiseido Company (4911 JP).
Centurion CEO Kong Chee Min adds to interest at S$0.59 per share
- Centurion CEO Kong Chee Min adds to interest at S$0.59 per share CapitaLand Investment led the buyback consideration tally, acquiring 8,312,600 shares at an average price of S$2.64 per share.
- On Jul 4, Centurion Corp CEO Kong Chee Min acquired 115,000 shares, at an average price of S$0.59 cents per share.
BRBY: New CEO & Yet More Bad News for the Troubled Retailer
- It was hard to imagine a worse first quarter for Burberry.
- At a time when investors were desperate for some positive news following a torrentially bad fiscal 2024, Burberry’s Q1 trading update emphasised a “luxury market that is proving more challenging than expected” with the weakness highlighted coming into FY25 having “deepened” .
- Retail revenue for the quarter of £458 million came in 22% below the prior year.
Hisamitsu Pharmaceutical (4530 JP): Mixed Performance in Q1FY25; No Change in FY25 Guidance
- Hisamitsu Pharmaceutical Co (4530 JP) has reported double-digit growth in revenue and net profit in Q1FY25. However, operating profit decreased 5% YoY due to higher expenses.
- Topline growth was mainly driven by Salonpas, which was named the world’s no. 1 OTC topical analgesic patch band for the eighth consecutive year.
- The company reiterated FY25 guidance of 7% revenue growth and low double-digit operating and net profit growth, as an increase in operating profit is expected for the full-year as planned.
💡 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
