In today’s briefing:
- Tod’s: Failed Privatization Provides Red Carpet for LVMH Bid
- Ambuja Cements – Quick Insight on Valuation
- Com2uS Corp: The Most Likely Corporate Activist Target in Korea’s Game Industry
- Shanghai Junshi Bioscience (1877 HK/688180 CH): US Approval of Toripalimab Is Still In Doldrums
- PICC P&C (2328 HK): Performance Recoupling; Breaking Support at HKD7.25?
- Meta Platforms: Q4 Earnings Update, Our Approach Now
- Hugo Boss: Self-Help Growth Story
- Advanced Micro Devices (AMD): New Launches & Other Drivers
- BetMakers Technology Group Ltd – Turning Point
- IMMR: Rumbles of a Special Sit, Initiating
Tod’s: Failed Privatization Provides Red Carpet for LVMH Bid
- Tod’s founder Diego Della Valle is undoubtedly frustrated his bid to privatize Tod’s at 40 EUR failed in 4Q22
- It was the ideal time to privatize in order to maximize value for his family before selling to LVMH, the most logical buyer since 2017
- Our conviction that Tod’s ends up in the LVMH stable of brands is stronger than ever, an exit offer of 60 EUR per share would be a reasonable assumption
Ambuja Cements – Quick Insight on Valuation
- Cement sector is witnessing a margin recovery and valuations are reasonable.
- Ambuja Cements, the second largest in the sector provides a tactical opportunity for a valuation pop.
- Avoid | as any inclusion amounts to adding to the risk rather than to the return of the portfolio.
Com2uS Corp: The Most Likely Corporate Activist Target in Korea’s Game Industry
- Com2us Corp (078340 KS) is the most likely corporate activist target in Korea’s game industry.
- Our base case valuation of Com2uS suggests a target price of 97,321 won which is 49% higher than current price.
- Finally, the company is expected to launch at least 3-4 promising new games this year. All in all, we have a positive view of Com2uS Corp.
Shanghai Junshi Bioscience (1877 HK/688180 CH): US Approval of Toripalimab Is Still In Doldrums
- Shanghai Junshi Bioscience (688180 CH) did not receive FDA approval for toripalimab in US, as the agency could not conduct on-site inspection of the company’s manufacturing facility for the drug.
- Toripalimab (branded as TUOYI) is showing decelerated revenue growth rate in China. Besides being approved for small patient population, TUOYI has seen reduction in price after being included in NRDL.
- In May 2022, the company launched adalimumab biosimilar in China. It marks a late entry in a highly competitive market. COVID-19 oral drug should not bode well for the company.
PICC P&C (2328 HK): Performance Recoupling; Breaking Support at HKD7.25?
- PICC P&C was a shelter for investors in 2022, as its earnings were largely shielded from the pandemic. However, momentum has shifted in favor of the rest of the sector.
- As the reopening story tails off, we expect the stock’s performance to recouple to the broader H-Financials index.
- Valuation is undemanding, but the same can be said of almost any other stock in the space. If the HKD7.25/share resistance level breaks, we may see a major correction.
Meta Platforms: Q4 Earnings Update, Our Approach Now
- Meta announced its Q4 earnings, exceeding expectations on the top line by 1.5%, but falling short on the bottom line by 20.8%.
- The key highlights from the announcement included an increase in share buybacks, reductions in capital expenditures, and a lowered outlook for operating expenses.
- Since the release of new earnings by Meta (NASDAQ:META), we have been following up on our last report, which got a very positive response.
Hugo Boss: Self-Help Growth Story
- Under the new leadership led by CEO Daniel Grieder, Hugo Boss’s new refreshed brand has been gaining market share over the last few quarters
- Growth has been driven by strong marketing campaigns aimed at younger consumers and an improved execution.
- Hugo Boss is a self-help growth story with further margin expansion potential. Valuation remains appealing at these levels and should re-rate in line with the sector. Upside 15%
Advanced Micro Devices (AMD): New Launches & Other Drivers
- AMD had a strong quarter and managed an all-around beat despite the fact that the company navigated quite a challenging macro environment.
- The company also launched the Ryzen 7000 mobile APUs, RX 7000 laptop GPUs, and V-cache chips.
- For the company’s Xilinx data center as well as networking products, AMD had strong sales in the quarter.
BetMakers Technology Group Ltd – Turning Point
- BetMakers Technology Group (ASX:BET) is a B2B software services business providing racing, wagering and integrity data, software and hardware products to bookmakers, racing authorities and rights holders globally.
- BET announced a significant restructure of its senior management team and board with the appointment of the company’s largest shareholder and gaming tech investor Matt Davey to the position of President and Executive Chairman; the transition of Chairman Nick Chan to Non-Executive Director; the promotion of COO Jake Henson to the position of Chief Executive Officer and the appointment of CEO Todd Buckingham to Chief Growth Officer.
- Mr Buckingham also steps down from the board and has surrendered 10m of his performance rights.
IMMR: Rumbles of a Special Sit, Initiating
- We are initiating coverage of Immersion (IMMR) with a Buy Rating and $11 target
- IMMR is a haptics technology developer that has undergone a management change that could further result in a series of material developments
- IMMR naming Eric Singer as its CEO suggests there is more to come from IMMR than the cost cuts IMMR undertook two years ago when Mr. Singer joined the Board
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