In today’s briefing:
- EQD | KOSPI 200 Index Approaching Resistance
- [KE (BEKE US, BUY, TP US$24) TP Change]: Silver Lining Appear in Industry Cycle, Maintain BUY
- Selected European HoldCos and DLC: August’23 Report
EQD | KOSPI 200 Index Approaching Resistance
- The KOSPI 200 INDEX last week started to rally, so we want to look at WEEKLY resistance levels to evaluate where the current rally could end.
- MRM Resistance Levels where the rally could stop are: 339, 348, 356.
- Based on the current MRM pattern reading we expect the index to either roll down this week, or to rally for +2 more weeks (CC=+4) and then go down.
[KE (BEKE US, BUY, TP US$24) TP Change]: Silver Lining Appear in Industry Cycle, Maintain BUY
- KE Holdings (Beike) reported 2Q23 GTV 5.6% lower than our estimate, revenue (2.6%)/0.4% vs. our estimate/consensus, and non-GAAP NI 21.8%/42.9% higher than our estimate/consensus.
- We think 3Q23 is the trough and expect a rebound in 4Q23 as more substantial supportive policies laying out in China.
- We maintain the stock as BUY rating and raised TP by US$2 to US$24/ADS
Selected European HoldCos and DLC: August’23 Report
- The discounts to NAV of covered holdcos have not shown a clear pattern during August, some widened while others tightened. Discounts to NAV: C.F.Alba, 46.6% (vs. 47.5%); GBL, 36.2% (vs. 39.1%);
- Heineken Holding, 17.9% (vs.16.4%); Industrivärden C, 7.8% (vs. 6.6%); Investor B, 16.6% (vs. 15%); Porsche Automobile Holding, 41.5% (vs. 43.8%). The spread of Rio Tinto DLC tightened to 17.8% (vs. 19%).
- What seems interesting: holding trades, Investor B vs. listed assets, Porsche SE/vs. listed assets and the Rio DLC, long RIO LN/short RIO AU.
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