In today’s briefing:
- Penguin International (PBS SP): Dymon Asia’s Unconditional and Final Offer of S$0.83
- Quiddity Leaderboard-DAX Jun 23: Two Changes for the MDAX Index
- NPS: Increasing Capital Allocation to More Defensive Stocks in Korea
- Recruit 4Q: Earnings Growth to Decline as Labour Markets Begin to Slowdown
- [JD Logistics (2618 HK, SELL) Earnings Review]: Declining Customer Count Isn’t a Good Sign
- Growatt Technology Pre-IPO – Latest Thoughts on Valuation
Penguin International (PBS SP): Dymon Asia’s Unconditional and Final Offer of S$0.83
- Penguin International (PBS SP) disclosed a revised and final voluntary unconditional offer from Dymon Asia, Executive Chairman and Managing Director at S$0.83, a 16.9% premium to the undisturbed price.
- Unlike the previous offer, the final offer will not be reduced for the FY22 dividend. The final offer price is attractive and represents a 10-year share price high.
- An attractive offer makes it also likely that the offeror hits the 90% compulsory acquisition threshold, which requires a minority acceptance rate of around 44%.
Quiddity Leaderboard-DAX Jun 23: Two Changes for the MDAX Index
- In this insight, we take a look at Quiddity’s estimates for the names leading the race to become ADDs/DELETEs for the DAX, MDAX, and SDAX Indices.
- As things stand, there will not be any ADDs or DELs from the DAX index or the SDAX index.
- There could be two ADDs/DELs for the MDAX index in the June 2023 rebalance.
NPS: Increasing Capital Allocation to More Defensive Stocks in Korea
- In this insight, we discuss the recent Korean stock portfolio allocation changes by the NPS.
- The data suggests that NPS has been increasing its holdings into more defensive sectors such as insurance, convenience stores, and industrials.
- On the other hand, it has been decreasing capital allocation in consumer discretionary related stocks.
Recruit 4Q: Earnings Growth to Decline as Labour Markets Begin to Slowdown
- Recruit Holdings (6098 JP) reported FQ4 and full-year FY03/2023 results. FQ4 revenue increased 9.0% YoY to ¥827.7bn (vs consensus ¥846.7bn) while OP decreased 57.1% YoY to ¥19.4bn (vs consensus ¥40.0bn).
- Excluding restructuring charges and one-time charge on impairment losses on right-of-use assets, OP increased 12.4% YoY to ¥50.9bn resulting in an OPM of 6.1% vs 6.0% in 4QFY03/2023.
- Recruit’s FY03/2024E guidance is in line with our expectation where the company expects earnings to weaken as labour markets have begun to slowdown.
[JD Logistics (2618 HK, SELL) Earnings Review]: Declining Customer Count Isn’t a Good Sign
- JDL reported 1Q23 revenue that is 2.2% vs. our est. and cons., and non-IFRS net loss that was 32% vs. our est., and 18% vs. cons.
- We have concerns about 1) the declining number of external integrated supply chain (ISC) customers;
- And 2) declining gross margin, which demonstrate the effects of JD’s low-price strategy, in our view; We maintain JDL’s SELL rating and HK$ 9.20 TP.
Growatt Technology Pre-IPO – Latest Thoughts on Valuation
- Growatt Technology (1833969D CH) is looking to raise about US$400m in its upcoming Hong Kong IPO, after downsizing from an earlier US$1bn float in Nov 2022.
- Growatt Technology is a global distributed energy solution provider, specializing in sustainable energy generation, storage and consumption, as well as energy digitalization.
- Previously, we looked at the company’s past performance, peer comparison and shared our earlier thoughts on valuation. In this note, we will provide our latest thoughts on valuation.
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