In today’s briefing:
- Playmates Toys: Movie and Toy Reviews TMNT Mutant Mayhem Suggest Big Upside Ahead
- Ant Group Proposes Share Buyback at Roughly 30% of IPO Valuation
- Seven & I: 7-Eleven US Poses Challenges for FY24 Guidance
- Rorze (6323) | Q1 Miss, Buying Opp
- Initiation – OHBA (9765 JP)
- Dr Lal PathLabs (DLPL IN): Strong Trajectory in Non-COVID Business; Positive Industry Outlook
- 5 in 5 with Sri Trang Gloves Thailand – Touch Of Life
- BeiGene (6160.HK/BGNE.US) – Novatis Chose to Escape Before Tragedy of TIGIT Truly Comes
- Chariot Limited (AIM: CHAR): Adding portfolio depth and near term newsflow
- Moderna Inc (MRNA US) – What Would Happen After Moderna Enters China?
Playmates Toys: Movie and Toy Reviews TMNT Mutant Mayhem Suggest Big Upside Ahead
- Three weeks ahead of the global launch of TMNT Mutant Mayhem momentum is building
- Google Trends searches reveal rising interest in both movies and toys
- Risk/Reward is still highly attractive, last time a TMNT movie was a success stock hit 4 HKD
Ant Group Proposes Share Buyback at Roughly 30% of IPO Valuation
- Ant Group Co. Ltd. has offered to buy back some shares at a whopping 70% discount to the unrealized valuation for its ill-fated IPO, shortly after regulators hit the fintech giant with an almost $1 billion fine.
- Ant Group announced Saturday that it had proposed to repurchase as much as 7.6% at a price that values the company at approximately 567 billion yuan ($78 billion).
- The offer represents a roughly 40% discount to the approximate 960 billion yuan figure achieved in Ant Group’s last fundraising round in 2018, and is around 70% cheaper than the 2.1 trillion yuan valuation touted in its planned 2020 IPO.
Seven & I: 7-Eleven US Poses Challenges for FY24 Guidance
- Gasoline retail prices have caught up with declining wholesale prices, and it should lead to around 16-20% QoQ decrease in retail fuel margin to ¥35-37 cents per gallon.
- US gas station merchandise sales exhibited weak performance this year, experiencing YoY growth rates of 5%, -2%, -15%, -17%, and -22% during the first five months.
- We anticipate around 25% downside for Seven & I Holdings (3382 JP) after earnings, as it may face challenges in achieving its FY24 guidance.
Rorze (6323) | Q1 Miss, Buying Opp
- Rorze’s stock price has risen 35% since we became bullish on the stock in August
- Q1 sales and operating profits big miss versus analyst consensus due to slowing semicon capex cycle
- We would be buying into any stock weakness with an eye on recovery in 2H23 into 2024
Initiation – OHBA (9765 JP)
- OHBA is a general construction consulting firm boasting a leading market share in the field of urban development, with potential to reap the benefits of the long- term shift to compact and smart cities in rural areas.
- Since its establishment in 1922, the company has been involved in various stages of public works projects preceding the construction phase, such as urban planning, land readjustment, surveying, and land development, in Japan, where the separation of design and construction is mandatory
- This commenced with the development of Togoshi New Town (1932), which OHBA undertook in partnership with Mitsui Gomei and Mitsui Trust.
Dr Lal PathLabs (DLPL IN): Strong Trajectory in Non-COVID Business; Positive Industry Outlook
- Dr Lal PathLabs Ltd (DLPL IN) reported 14% and 16%, YoY, revenue growth from its non-COVID business in 4QFY23 and FY23, respectively.
- The company’s base business is now back to pre-COVID trajectory. Margins are also nearing pre-COVID level. Going ahead, the company has couple of margin levers.
- Due to lesser competitive threat and uncertainty over COVID, FY24 is lesser challenging than the previous year. The company expects higher revenue growth in FY24 than FY23.
5 in 5 with Sri Trang Gloves Thailand – Touch Of Life
5 in 5 with Sri Trang Gloves Thailand – Touch Of Life
BeiGene (6160.HK/BGNE.US) – Novatis Chose to Escape Before Tragedy of TIGIT Truly Comes
- BeiGene and Novartis mutually terminate the Option Agreement on ociperlimab. Our interpretation is Novartis may think its clinical data wouldn’t meet expectations, and is therefore unwilling to take the risk.
- Theoretically, BeiGene still has the possibility of creating miracles to turn things around, but based on the current situation, the risk of TIGIT project failure is already very high.
- We suggest that investors can reduce the position of BeiGene in advance or even consider offload entirely (In case its stock price falls due to unsatisfactory clinical data in 23H2).
Chariot Limited (AIM: CHAR): Adding portfolio depth and near term newsflow
- Chariot has raised US mm of new equity priced at £0.14 per share.
- The company is also looking to raise up to an additional US$3 mm through an open offer.
- The proceeds of the raise will be used to drill four new low cost/low risk exploration wells onshore Morocco in a licence expected to be awarded imminently.
Moderna Inc (MRNA US) – What Would Happen After Moderna Enters China?
- Moderna’s move into China helps ease its current performance difficulties. But China has its own regulations/policies on vaccines. Whether Moderna can successfully adapt/stand out in China remains to be seen.
- The entire vaccine industry in China is expected to undergo significant changes. We listed the companies in this industrial chain that would benefit from the successful signing with Moderna.
- An important signal behind this deal is that while significant differences remain at the top, mutually beneficial business cooperation between China and US will continue, providing investors with additional options/confidence.
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