In today’s briefing:
- Miniso: Genuinely Undervalued & A Decent Long Hedge to Increase Short Exposure to Chinese E-Commerce
- KKP – Small Enough To Grow
- Yaskawa (6506) | Further 20% Downside on Higher Rate Cycle
Miniso: Genuinely Undervalued & A Decent Long Hedge to Increase Short Exposure to Chinese E-Commerce
- After hitting the bottom during the COVID crisis, the only direction left for MINISO Group Holdings (MNSO US) to move is up.
- Given the current valuations, Miniso could generate multi-bagger returns during favourable market conditions.
- In addition, Miniso could help investors generate sizable returns in the short-term on the short side with increased short exposure to Chinese E-commerce.
KKP – Small Enough To Grow
- This smaller Thai bank can more easily grow due to relatively small loan base
- Strong core fundamentals of rising interest income and falling funding costs
- Credit costs remain inflated, falling figures can support strong ROA growth
Yaskawa (6506) | Further 20% Downside on Higher Rate Cycle
- Stay short ahead of Q1 results. Full year guidance remains too high and will likely be cut later this year
- Yaskawa remains a cyclical stock that correlates with the SOX index – higher interest rates are impacting valuation multiples
- We see 20% downside risk towards 3x price to book
Related tickers: Kiatnakin Bank (KKP.BK), Yaskawa Electric (6506.T)
Before it’s here, it’s on Smartkarma
