In today’s briefing:
- JD.com (JD US): Improved Shareholder Return Is Key
- China Vanke: Should Investors Be Worried?
- Ryohin Keikaku (7453): Q1 FY08/24 Update
- Sasseur REIT (SGX: CRPU) – A Play On China Consumption Via The Operations-Focused Outlet Sector
- Fu Shou Yuan (1448 HK): Proposing a Special Dividend
- Grab Holdings: Initiation Of Coverage – What Is Their Core Business Strategy? – Major Drivers
- HK RE Series (2): Market Is Still Bearish but Bottom Is Near, Few Things Needed for Re-Rating
- SITC International (1308 HK): Bidding Farewell to the Trough
- Malaysian Banks Screener; Value Pick CIMB Has Momentum, Maybank Is the Quality Pick
- Zoom Video Communications: Incorporating AI Capabilities to Improve Customer Engagement and Productivity! – Major Drivers
JD.com (JD US): Improved Shareholder Return Is Key
- JD.com Inc (ADR) (JD US) reported a set of better-than-expected 4Q23 results yesterday, as the ADR rose 16% last night in US trading session.
- The improvement in net profit margin showed that being more price competitive did not lead to lower margins.
- I believe the key takeaway, aside from the resilient 4Q23 results and solid 2024 outlook, is the much improved shareholder return measures.
China Vanke: Should Investors Be Worried?
- China Vanke has caused jitters as it was reported to be closely watched by some insurers as it seeks to rollover some of its debt with insurers.
- It is reported that it has sufficient funding to repay its bond due on March 11th and is lining up a HK$1.5 billion syndication loan.
- Vanke warrants close monitoring as there is no sign of turning in its reducing contract sales, deteriorating cash position, shrinking financing ability.
Ryohin Keikaku (7453): Q1 FY08/24 Update
- Ryohin Keikaku (7453 JP) offers products covering all aspects of daily life.
- For FY08/23, Ryohin Keikaku reported consolidated operating revenue of JPY581.4bn , operating profit of JPY33.1bn, recurring profit of JPY36.2bn, and net income attributable to owners of the parent of JPY22.1bn.
- The company’s full-year FY08/24 forecast calls for operating revenue of JPY640.0bn, operating profit of JPY48.0bn, recurring profit of JPY46.0bn and net income attributable to shareholders of the parent of JPY33.3bn.
Sasseur REIT (SGX: CRPU) – A Play On China Consumption Via The Operations-Focused Outlet Sector
- The Smartkarma Corporate Webinar | Sasseur REIT: A Glimpse into China’s Outlet Industry on Feb 29 explored the Oulet sector with Sasseur REIT, a Singapore REIT focused on China Outlets.
- Sasseur REIT is 57.85% owned by the Sasseur Group operating China outlets since 2008, with 4 outlets in 3 major Tier-2 cities currently in the REIT, with room for expansion.
- Sasseur REIT is a play on China consumption and outlet operations. 2023 EMA rental income +10.7% Y/Y. The 9.1% dividend yield stands out, at a relatively low aggregate leverage.
Fu Shou Yuan (1448 HK): Proposing a Special Dividend
- Fu Shou Yuan (1448 HK) is likely to declare a special dividend in its FY23 result announcement as indicated in its board meeting notification.
- Net cash at end-1H23 amounted to 14.5% of its current share price, providing room for imagination of the amount of special dividends.
- Besides raising its yield, returning excess cash should raise its ROE. This will also demonstrate the management’s confidence on the outlook and its financial position.
Grab Holdings: Initiation Of Coverage – What Is Their Core Business Strategy? – Major Drivers
- This is our first report on transportation and fintech platform provider, Grab Holdings Inc.
- The company had a pivotal year in 2023, delivering on key goals and achieving profitability in adjusted EBITDA since the third quarter and earning a positive net profit in the fourth quarter.
- The company experienced a series of enhancements, including a successful rebuild of their mobility business which had been vastly impacted by the pandemic.
HK RE Series (2): Market Is Still Bearish but Bottom Is Near, Few Things Needed for Re-Rating
- Markets continue to be extremely bearish on HK/China, we look at the latest property market fundamentals and macro indicators, as well as company updates of our top picks
- In the latest budget, the HK government just announced to scrap all spicy measures on property market and eased mortgage policy
- With government support, we view the bottom of physical market is near. For further re-rating, we need interest rate to go down, as well as resumed fund flows.
SITC International (1308 HK): Bidding Farewell to the Trough
- The 72.5% decline in SITC International (1308 HK)‘s FY23 earnings is disappointing but should already reflected in the share price given the profit warning. Instead, this may be the trough.
- Spot freight rates for key intra-Asia routes have already recovered since 3Q23, with the YTD level higher than the 2H23 average. The 1H24 result may show a sequential rebound.
- Even assuming flat YoY earnings in FY24, it still sits on a 9% dividend yield. The projected ROE of over 24% and net cash position mean 1.6-1.7x P/B undemanding.
Malaysian Banks Screener; Value Pick CIMB Has Momentum, Maybank Is the Quality Pick
- Of the six Malaysian banks screened, we keep quality play Maybank on the buy list and switch our prior buy RHB for CIMB
- CIMB is our value pick for its undemanding PE and PBV whilst second from top in post-provision profitability; its credit quality is improving, a positive trend we expect will continue
- We maintain quality pick Maybank as a buy for its relatively undemanding valuations, and strong balance sheet credentials in terms of credit quality and capital adequacy
Zoom Video Communications: Incorporating AI Capabilities to Improve Customer Engagement and Productivity! – Major Drivers
- Zoom Video Communications, Inc reported financial results for its fiscal Q4 and full-year 2024.
- The company’s revenue for the Q4 reached $1.146 billion, up 3% YoY. Zoom’s Enterprise revenue grew by 5% YoY and formed 58% of total revenue.
- The company’s non-GAAP income from operations grew 10% YoY to $444 million.
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