In today’s briefing:
- Smartkarma Corporate Webinar | First REIT: Balancing Growth and Stability
- Softbank Group – Q1 22 Results Reaction: So Many Surprises…a Few Were Positive
- China Internet Weekly (8Aug2022): Tencent, NTES, Kuaishou, Autohome
- Magic Empire Global: More Trick than Treat
- Inpex (1605) | Blockbuster Buyback
- NTT (Buy) – Q1 22 Results Reaction: Forex Gains Flatter Top-Line; Signs of Mobile Stability
- India Banks – Solid Strength at ICICI
- Tesla Trading Strategy Until August 25th Stock Split
- Coupang: Just About Halfway in Correction
- Is A Corner In Magic Empire Global Underway?
Smartkarma Corporate Webinar | First REIT: Balancing Growth and Stability
For our next Corporate Webinar we are glad to welcome First REIT’s Executive Director and CEO, Tan Kok Mian, Victor.
In the upcoming webinar, Victor will share a short company presentation after which, he will engage in a fireside chat with Smartkarma Insight Provider, Angus Mackintosh. The Corporate Webinar will include a live Q&A session.
The Corporate Webinar will be hosted on Tuesday, 6 September 2022, 17:00 SGT.
Listed on the Singapore Exchange Securities Trading Limited on 11 December 2006, First Real Estate Investment Trust (“First REIT”) is Singapore’s first healthcare real estate investment trust. Its investment strategy encompasses a diverse portfolio of yield-accretive healthcare and healthcare-related real-estate assets in Asia.
Over the years, the Trust has successfully built a high quality and diversified asset portfolio of 31 properties comprising 16 located in Indonesia, three in Singapore and 12 in Japan. The properties are collectively valued at over S$1,253.0 million¹ as at 31 December 2021. The stable income-producing portfolio covers the full scale of healthcare real estate, including hospitals, nursing homes and other healthcare-related facilities.
First REIT is managed by First REIT Management Limited, which is 60% owned by OUE Limited and 40% owned by OUE Lippo Healthcare Limited (“OUELH”). First REIT enjoys the right-of first refusal (“ROFR”) to the pipeline of hospitals in Indonesia by PT Lippo Karawaci Tbk (“Lippo Karawaci”), Indonesia’s largest broad-based listed property company. First REIT also has another ROFR from OUELH, and the opportunities to tap on its growing healthcare network across Pan-Asia.
Corporate Webinars by Smartkarma Corporate Solutions feature discussions with IROs and Executives, discussing their companies, the challenges they face, and the opportunities in their sectors and markets.
Softbank Group – Q1 22 Results Reaction: So Many Surprises…a Few Were Positive
- Softbank posted record quarterly losses again ($23bn this time) after an aggressive writedown of private investments in the portfolio
- Vision Fund’s cumulative returns since FY17 are now less than $1bn and valuation losses for WeWork at the parent mean VF and related have lost money
- The good news is Softbank valuations are more closely aligned with reality whilst a ¥400bn buyback takes some of the sting away but tech values (and ARM) remain a risk
China Internet Weekly (8Aug2022): Tencent, NTES, Kuaishou, Autohome
- Tencent aims to raise shareholdings in an overseas game company and reduce shareholdings in a domestic movie producer.
- Tencent and NetEase have not got new game licenses and a license black market has emerged in China.
- Autohome revenue decreased in 4Q22 due to the lockdown in Shanghai.
Magic Empire Global: More Trick than Treat
- Magic Empire Global (MEGL US) shares are currently up 45x since its listing at US$4.00 per share on 5 August. Its market cap currently stands at US$3.6 billion.
- Just like AMTD Digital (HKD US), it is hard to pinpoint the real reason for MEGL’s share price surge. MEGL’s financials are uninspiring and cannot justify the share price ramp.
- MEGL has no unique competitive advantage which could justify it’s current large premium multiple compared to larger and better-established peers.
Inpex (1605) | Blockbuster Buyback
- Inpex reported strong Q2 financial results with operating income rising 161% to ¥584 billion
- The company revised its full-year OP guidance by 23% to ¥1,133 billion. It is still conservative
- Inpex also announced a blockbuster buyback of 120 million shares, or 8.65% of its outstanding capital
NTT (Buy) – Q1 22 Results Reaction: Forex Gains Flatter Top-Line; Signs of Mobile Stability
- Q1 revenue growth was the highest since Q3 17, helped by forex tailwinds and stability in the mobile segment
- Core telecom results were also positive as mobile erosion was less intensive than peers on better subscriber growth whilst DX demand has kept enterprise sales healthy
- Management did not change full-year guidance but this almost never happens with a Q1 report and we expect this report is enough to nudge consensus higher
India Banks – Solid Strength at ICICI
- Typically net interest margins and loan volume are what matter most for banks
- ICICI is showing strength in both core financial metrics, but also in credit costs
- Of the large 3 banks in India, ICICI may continue to show the best marginal deltaCI
Tesla Trading Strategy Until August 25th Stock Split
- Last Friday, Tesla shareholders approved a 3:1 stock split set to go into effect on August 25th. The stock has already rallied on these expectations, up 44% since mid-June lows.
- We wouldn’t be surprised if CEO Elon Musk sells into the split, given his need to shore up cash for the potential Twitter buyout in October.
- Both Amazon and Google outperformed the market, but sold off in the days and weeks post-split. We expect Tesla to follow this pattern, but in a more augmented fashion.
Coupang: Just About Halfway in Correction
- Leading into 2Q22 results (due 10th August 2022), we are short Coupang (CPNG US) with expectations of around 5% and 27% downside to consensus 2022 and 2023 revenue estimates.
- Consensus has just about reached the halfway stage of a long correction process with current revenue estimates standing significantly above the pre-COVID trend.
- Meanwhile, Coupang is under a lot of pressure to cut losses in the short term and attain the targeted long-term EBITDA margin of 7-10%.
Is A Corner In Magic Empire Global Underway?
- Magic Empire Global (MEGL US) priced its IPO at $4.00 per share in August. Unknown financial services company sold 5M ordinary shares to investors and raised ~$18M.
- Return since IPO totaled a whopping ~2,825%. IPO investors are sitting on ~$570M in paper profits and own 25% of Magic Empire’s shares outstanding.
- Network 1 Financial Securities, an independent full-service broker-dealer based in New Jersey, led the offering. The firm specializes in investment banking services for small to mid-sized companies.
💡 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
