In today’s briefing:
- Weekly Deals Digest (26 May) – Henlius, HKTV, SciClone, KFC, Best World, PropertyGuru, Modec
- Sony Corporation: How It Is Implementing A Multi-Faceted Strategy In A Maturing Consumer Electronics Market! – Major Drivers
- Honda Motor Co.: What Is The Positioning of Hybrid in Electrification Strategy? – Major Drivers
- Improved Profitability to Attract Overseas Investors Key to Raise Valuation Even After TSE’s Request
Weekly Deals Digest (26 May) – Henlius, HKTV, SciClone, KFC, Best World, PropertyGuru, Modec
- A weekly summary of key developments across ECM and Event-Driven names tracked by us across Hong Kong, Australia, New Zealand, Singapore, Japan, Indonesia, Malaysia, Thailand, Korea, India and Chinese ADRs.
- ECM developments: Modec Inc (6269 JP) prices its US$535 million secondary offering.
- Event-Driven developments: Shanghai Henlius Biotech (2696 HK), Hong Kong Television Network (1137 HK). Sciclone Pharmaceuticals (6600 HK), Kfc Holdings Japan (9873 JP), Best World International (BEST SP), PropertyGuru (PGRU US).
Sony Corporation: How It Is Implementing A Multi-Faceted Strategy In A Maturing Consumer Electronics Market! – Major Drivers
- Sony Group Corporation recently reported its FY 2023 results and offered insights into its FY 2024 forecast as well as its fifth mid-range plan.
- The corporation experienced a record high in consolidated sales at JPY 13,020.8 billion while consolidated operating income was JPY 1,208.8 billion.
- Net income stood at JPY 970.6 billion, and consolidated adjusted EBITDA was JPY 1,880 billion.
Honda Motor Co.: What Is The Positioning of Hybrid in Electrification Strategy? – Major Drivers
- Honda Motor’s earnings of FY ’24 reveals that the mobility company has been posting a historic high operating profit of JPY 1,381.9 billion, with an operating profit margin of 6.8%.
- Underpinning this growth has been the company’s core strategy of focusing on environmental sustainability and safety, which is resonating well with the consumers.
- For FY ’25, Honda has set a higher target for operating profit at JPY 1.42 billion, aiming to achieve an operating profit margin of 7%, a year ahead of their original plan.
Improved Profitability to Attract Overseas Investors Key to Raise Valuation Even After TSE’s Request
- Companies that increased Tobin’sQ have further increased Tobin’sQ due to continued growth in ROE and ROA. They have room to further improve return on capital by reducing cash on hand.
- Companies with lower Tobin’s Q may include small-cap stocks that are increasingly undervalued because they have relatively high ROE and ROA but are not covered by overseas investors.
- Over the past year, few companies raised their valuations based solely on expectations of P/B bottoming-out without improving profitability, and IR activities alone have had limited effect in boosting valuations.
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