In today’s briefing:
- Medlive – High Conviction Update 2022
- Bifurcation Continues; Banks, Semiconductors, Small-Caps, Homebuilders Remain Concerns
- EBOS Group (EBO NZ): Strong Industry Positioning and Acquisitions to Drive Growth
- Japan’s Governance: Articles About Torii Pharmaceutical’s AGM (2)
Medlive – High Conviction Update 2022
- Medlive’s shares are currently trading at HK$8.15 per share and lost almost 70% YTD which we think was due to the ongoing regulatory crackdown on tech platforms in China.
- Medlive’s 2021 revenues grew 33.2% YoY to RMB284m while adjusted OP grew 19.0% YoY to RMB123m. Shares reacted negatively due to slowdown in top line growth.
- Medlive is currently trading at FY2 EV/Revenue of 0.97x compared to 34.3x when we last wrote. We think shares are extremely cheap and offers a good entry point.
Bifurcation Continues; Banks, Semiconductors, Small-Caps, Homebuilders Remain Concerns
- The bifurcation between large-cap growth and small-caps that we discussed last week has continued, where small-caps have generally not been participating in the rally.
- As we said last week, this bifurcation can continue, but it is not the type of breadth that supports a sustainable new bull market.
- We need to see the Russell 2000 (IWM) stay above $209 in order to have confidence that the bottom is in. Meanwhile, stick with the commodity and defensive Sectors.
EBOS Group (EBO NZ): Strong Industry Positioning and Acquisitions to Drive Growth
- Ebos Group Ltd (EBO NZ)’s proposed acquisition of LifeHealthcare has been cleared by Australian Competition Commission, paving the timely closure of the transaction by the end of FY22.
- EBOS has achieved another record result in H1FY22, headlined by double digit revenue and earnings growth, due to continued strong growth trajectory of both healthcare and animal care segments.
- EBOS shares gained 5% since I published bullish insight on December 16. I am still optimistic on the long-term growth prospect of the company.
Japan’s Governance: Articles About Torii Pharmaceutical’s AGM (2)
- Torii Pharmaceutical rejected a shareholder proposal at its AGM to prohibit “revolving door” appointments of people from JT to the board of directors and to disclose the cost of capital.
- The Company disclosed the propriety of opposing these shareholder proposals, but this was not understood to be a sufficient explanation.
- Will the Company eventually terminate its parent-subsidiary listing if it does not meet the prime market listing criteria for governance?
Before it’s here, it’s on Smartkarma
