In today’s briefing:
- Otsuka Holdings (4578 JP): Strong 2022 Result; 2023 Revenue to Hit Record-High Thanks to Key Drugs
- A Pair Trade Between KT & LG Uplus
Otsuka Holdings (4578 JP): Strong 2022 Result; 2023 Revenue to Hit Record-High Thanks to Key Drugs
- Otsuka Holdings (4578 JP) reported better-than-expected 2022 result. Revenue increased 16% to ¥1,738B and business profit grew 11% to ¥175B, driven by the four global products and the nutraceutical segment.
- Revenue from four global products surged 26% to ¥619B, representing 54% of pharmaceutical revenue. Otsuka expects the momentum to continue and these products to record revenue of ¥637B in 2023.
- For 2023, Otsuka has guided for record-high revenue and net profit of ¥1,800B (+4% YoY) and 158B (+18% YoY), respectively, driven by increased revenue from growth businesses.
A Pair Trade Between KT & LG Uplus
- In this insight, we discuss a pair trade between KT Corp (030200 KS) (go long) and LG Uplus Corp (032640 KS) (go short).
- The three major reasons for going long on KT Corp include a) the potential inclusion in MSCI Korea Standard index, b) attractive valuations, and c) a new CEO.
- KT Corp is a potential inclusion candidate for MSCI Korea Standard index in May 2023. With foreign room at 17%, it is comfortably above the 15% level threshold requirement.
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