In today’s briefing:
- Hope Education (1765 HK): Have We Reached the Bottom?
- Weekly Stock Bullfinder – Week of 12/5
- Shakey’s Pizza: Brace For Yourselves For An Epic Q4 2022
- Kakao Bank – Only Major Internet Bank
- KPJ Healthcare (KPJ MK): 3Q22 Result- Continued Improvement in Operating Parameters
- Closing Some Idea’s
Hope Education (1765 HK): Have We Reached the Bottom?
- Despite the plunge in share price after FY22 result, we think Hope Education Group Co Ltd (1765 HK) has not yet reached its bottom given the challenging outlook faced.
- We are concerned about stretched financial position with gearing surged 32.5pp in last year. Heavy capex and need to repay outstanding convertible bonds will strain its cash flow.
- Market earnings expectations are still overly optimistic. New schools looks to drag on near-term margins while surge in staffing, primarily teacher, costs is an added pressure.
Weekly Stock Bullfinder – Week of 12/5
- As investors we are faced with a deluge of noisy breaking news, business media talking heads, and what has felt like non-stop Fed speakers offering their differing views on the economy and the path of rate hikes going in 2023.
- This week was no different. Fed Chair Jay Powell was front and center suggesting that interest rate hikes will likely be stepped down to 50bps in the upcoming December Fed meeting in a few weeks.
- This was already discounted and expected by the market and effectively didn’t offer much of anything Wall St. didn’t already know.
Shakey’s Pizza: Brace For Yourselves For An Epic Q4 2022
- Shakey’s Pizza (PIZZA PM) is on the cusp of reporting a stellar Q4 2022. The stock trades at 16.2x FY22e/10.4x FY23e, with massive scope for upgrades from the street.
- With the addition of brands like Potato Corner, Peri-Peri, and R&B Tea, the company has sustainably solidified its scope for mid-teens CAGR growth from 2023 onwards.
- The company continues to lower its leverage, and net-debt equity was 0.75x in Q3 2022 as cash generation from its operations solidified the balance sheet.
Kakao Bank – Only Major Internet Bank
- KKBank is one of the only major internet banks in Asia-Pacific
- Operating metrics show increasing core income momentum and strong ALM
- Credit metrics have not yet proven to be a concern, as we near end of rising rates
KPJ Healthcare (KPJ MK): 3Q22 Result- Continued Improvement in Operating Parameters
- KPJ Healthcare (KPJ MK) is seeing a resurgence in elective medical procedures and recovery of the health tourism sector. In Q3, total revenue hit highest level in last two years.
- Growth was mainly driven by the improving hospital activities evidenced by the increase in patient visits and bed occupancy rate. Bed occupancy has reached pre-pandemic level.
- KPJ Healthcare has opened new flagship quaternary level smart hospital, Damansara Specialist Hospital 2 in September. The new hospital will add value and accelerate further growth for the company.
Closing Some Idea’s
- In this post I tracked my performance on stock mentioned in my blog, and I would like to officially close some ideas here.
- I will start doing that from now on. Something I did privately but not on the blog publicly.
- Either because they have worked out and upside is no more attractive, or because the facts have changed.
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