In today’s briefing:
- Down from HK$40 to HK$15, Opportunity to Come After Hard Q2
- Yonex: Rising Through the Ranks in New Markets
- Shimamura Back on Track, Targeting Urban Centres
- Remegen (9995HK) Vs Keymed Biosciences (2162HK)-Deep Dive the Logic & Internationalization Prospects
- Japan Retail | 3 Stocks to Buy for Revenge Shopping
- Amplitude: Valuations Look Attractive and Growth Catalysts May Materialize in CY22
- Subaru (7270 JP) | Production Problems in the Rear View Mirror
Down from HK$40 to HK$15, Opportunity to Come After Hard Q2
- JDL’s stock price has declined from HK$40 at its IPO to HK$15.
- We believe JDL will recover from the lockdown in Shanghai in 3Q22.
- We also believe the stock has an upside of 46%.
Yonex: Rising Through the Ranks in New Markets
- Driven by a sharp rise in revenue and profitability over the last three quarters, Yonex Co Ltd (7906 JP) shares continue to go up in relatively choppy overall market conditions.
- We expect this strong growth momentum to continue over the medium term while Yonex builds popularity in new markets and new sports categories.
- We think there could be around 100% upside to Yonex alongside improving confidence about sustainability of Yonex’s current performance.
Shimamura Back on Track, Targeting Urban Centres
- Shimamura (8227 JP) is on a roll at the moment, clawing back share after a troubled few years of mis-merchandising and confused targeting.
- After a record year, Shimamura now thinks its merchandise teams are strong enough to take on urban centre consumers – without raising operating costs. This could be a worry for Uniqlo.
- Shimamura has tried this before but back then its focus was on young women and had weaker merchandising skills. This time around too urban consumers want more discount apparel.
Remegen (9995HK) Vs Keymed Biosciences (2162HK)-Deep Dive the Logic & Internationalization Prospects
- Commercialization prospects of domestic autoimmune disease market is highly uncertain. Related drugs’ sales could be very limited in short term. Overseas market space is much larger, so internationalization is inevitable.
- Our forecast on RemeGen’s total sales is just RMB3.5-4 billion. The deal with Seagen still puzzles us, which is the key to determine how far RemeGen can go in internationalization.
- Keymed is like “a younger RemeGen” due to the differentiation strategy of pipeline layout. However, Keymed’s internationalization progress is much weaker, with higher risks and uncertainties than RemeGen.
Japan Retail | 3 Stocks to Buy for Revenge Shopping
- Over the past 2 years, customers cut back drastically on shopping and travel. Many worked in home offices in sweatpants and t-shirts.
- But now, people are vaccinated, and lockdowns have lifted. Even Japan’s borders are starting to spring open.
- Consumers are looking for ways to make up for lost time – we highlight 3 beneficiaries of revenge shopping.
Amplitude: Valuations Look Attractive and Growth Catalysts May Materialize in CY22
- During the #1 product and growth conference Amplify 2022 in Las Vegas, Amplitude (AMPL US) introduced the Customer Data Platform (CDP) with integrated product analytics.
- The company expanded partner integration with Snowflake Inc (SNOW US) to improve data connectivity while Amplitude Experiment sees strong traction with customers.
- With shares down ~65% YTD, Amplitude has underperformed the Nasdaq Composite (-23%). Our PT is $28.00, implying ~14x EV/2022E revenue and ~10x EV/2023E revenue.
Subaru (7270 JP) | Production Problems in the Rear View Mirror
- Subaru’s profitability is set to improve dramatically, driven by a weaker yen
- After two painful years, production is starting to normalise post Covid
- At 1xPBR, we think Subaru is significantly undervalued and see at least 30% upside
Related tickers: Yonex Co Ltd (7906.T), Shimamura (8227.T), MatsukiyoCocokara (3088.T), Subaru Corp (7270.T)
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