In today’s briefing:
- Galaxy Digital: Beyond the Ink – a Sum of the Parts of Valuation
- Significant MoM Increase in Inbound & Outbound Visitors in Korea in April 2022
- Huons Global (084110 KS): Eyeing on the New Business Areas to Secure Long-Term Growth Momentum
- Fanuc (6954 JP) | Beware of the Cycle
Galaxy Digital: Beyond the Ink – a Sum of the Parts of Valuation
- Galaxy Digital (GLXY) was worth more than C$14 bn in 2021, but by May 2022 GLXY traded down to a market cap of less than C$2.8 bn.
- Founder Mike Novogratz, a supporter of Luna, tattooed LUNA on his arm and tweeted “I’m a Lunatic!” As LUNA went into a death spiral, GLXY shares have been hit hard.
- However, there’s more than meets the eye, or the tattoo, in GLXY and we see value in the current share price range.
Significant MoM Increase in Inbound & Outbound Visitors in Korea in April 2022
- There were 128k visitors to South Korea in April, up 32% MoM which was the biggest jump in MoM change in visitors to South Korea in the past year.
- There were 215k outbound people from South Korea in April 2022, up 48% MoM and up 202% YoY.
- Among the 21 major reopening plays in Korea, we prefer certain sectors including casino related plays (GKL, Paradise, and Kangwon Land) as well as F&B related (Hitejinro and CJ Cheiljedang).
Huons Global (084110 KS): Eyeing on the New Business Areas to Secure Long-Term Growth Momentum
- Huons Global (084110 KS) is focusing on new growth drivers such as health functional food, medical devices, and research collaboration to accelerate its earnings further.
- Huons’ health functional food brand, Menolacto has become Korea’s no. 1 brand for menopausal lactic acid bacteria and generated cumulative sales of KRW64 billion within two years of its launch.
- Through external research collaboration and developing its own pipeline, Huons has a rich pipeline of new products, including new chemical entities, medical devices, and functional foods for the domestic market.
Fanuc (6954 JP) | Beware of the Cycle
- Fanuc’s share price is geared into the machine tool cycle. Unfortunately the cycle is rolling over
- Fanuc is also facing extreme margin pressure from rising parts and logistics costs
- We expect the share price to trade down 20% from here and bottom at around 2x book value
Related tickers: Galaxy (GLXY.TO), Paradise Co Ltd (034230.KQ), Huons Global (084110.KQ), Fanuc Corp (6954.T)
Before it’s here, it’s on Smartkarma
