In today’s briefing:
- Preview PC Partner FY21 Earnings: Record Profit + Record Dividend + Strong Outlook for FY22
- Tencent: Is More Fintech Restructuring On Its Way?
- Jinchuan International (2362 HK): Thoughts On A Rumoured Offer
- Toshiba – The 3D Dilemma
- MCT and MNACT Merger – Against Expectations, Could MCT Be a Net Beneficiary?
- Descente: The Next Goldwin?
- Osstem Implant – Where to Next?
Preview PC Partner FY21 Earnings: Record Profit + Record Dividend + Strong Outlook for FY22
- PC Partner (1263 HK) issued a positive profit alert 15/12/2021.
- Company will report FY21 results in 60 days which will be the best ever. 1H22 is on track to show growth YoY.
- Forecast exceptional dividend to celebrate 25-yr since founding and 10-yr since IPO.
Tencent: Is More Fintech Restructuring On Its Way?
- In December, Tencent announced that its board of directors has resolved to declare a special dividend by way of a distribution of its Class A ordinary shares of JD.com.
- This seems to be in line with regulators’ aim of bringing down walled gardens; however, we think these steps are aimed more towards restructuring Tencent’s fintech business.
- Tencent’s fintech arm has been benefitting from its partnerships with JD.com and Pinduoduo which has helped face competition from closest rival AliPay.
Jinchuan International (2362 HK): Thoughts On A Rumoured Offer
- Shares have declined ~9% since copper/cobalt miner Jinchuan Group International Resources (2362 HK) said it was unaware Jinchuan Group, its largest shareholder, was proposing a privatisation plan.
- As the world moves towards alternative energy sources, copper will remain in high demand. Jinchuan is also China’s third-largest cobalt refiner, whose output is used in lithium-ion batteries.
- Jinchuan is not expensive. And taking the company private is not a significant outlay for Jinchuan Group. Especially ahead of the copper/cobalt Musonoi project coming online next year.
Toshiba – The 3D Dilemma
- After a brief respite in their never-ending drama over the holiday period Toshiba is again in the news as 3D reiterates their demands for a “review of all options”.
- We have lost count of the number of reviews which haven’t resulted in a PE sale.
- The question is exactly why 3D appears to be so aggressive even relative to other less than bashful activists.
MCT and MNACT Merger – Against Expectations, Could MCT Be a Net Beneficiary?
- On 31 December 2021, MCT and MNACT announced a SGD4.2 billion merger transaction
- The prevailing sentiment is that MNACT unitholders get a better deal than MCT unitholders, as reflected in the share price and Moody’s review of MCT’s issuer rating for downgrade
- In this Insight, we play the the devil’s advocate and highlight how this merger results in a net benefit to MCT’s unitholders
Descente: The Next Goldwin?
- Descente Ltd (8114 JP) is about the same size as Goldwin but has traditionally depended for half of its sales on South Korea.
- Itochu Corp (8001 JP) acquired control in a fraught battle with management, in order to reduce this dependence. As a result, Descente managed a return to the black in 1H202.
- It has ambitious plans to create a set of brands strong both at home and abroad by copying much of Goldwin’s playbook, particularly its investment in retail and online.
Osstem Implant – Where to Next?
- The family of the accused has said that the embezzlement was not an act of one man but due to orders taken from superiors.
- The recovery shoudn’t be an issue as the accused had bought in gold in Dec and Dongjin Chem has not had a substantial drop for the period in question.
- When did this start? According to the Capital Market Act, if an investor incurs loss due to false statements/omissions in the business/quarterly report, the company is responsible for damages.
Related tickers: PC Partner (1263.HK), Tencent (0700.HK), Jinchuan Group International Resources (2362.HK), Toshiba Corp (6502.T), Mapletree Commercial Trust (MACT.SI), Descente Ltd (8114.T), Osstem Implant (048260.KQ)
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