In today’s briefing:
- SET50 Index Rebalance Preview: +JMT, JMART, BJC / -RATCH, STGT, IRPC
- Keppel Corp Rise Long in the Tooth
- SK Shieldus: Likely to Lower IPO Price by 19% Post Bookbuilding Results
- Nihon M&A: Earnings Drop Due to New Revenue Recognition Criteria; Guidance Seems Unrealistic
SET50 Index Rebalance Preview: +JMT, JMART, BJC / -RATCH, STGT, IRPC
- The market cap and liquidity review period for the June rebalance of the Stock Exchange of Thailand SET 50 Index (SET50 INDEX) ends in less than four weeks.
- Potential inclusions are JMT Network Services (JMT), Jaymart PCL (JMART) and Berli Jucker (BJC) while the potential deletions are Ratch Group (RATCH), Sri Trang Gloves (STGT) and IRPC PCL (IRPC).
- There are a couple of stocks that are close on liquidity and trading volumes over the next few weeks will determine if they are added, they stay or go.
Keppel Corp Rise Long in the Tooth
- Keppel Corp 7.0 old high barrier and pivot level as RSI and volume readings begin to warn of an exhaustive rise.
- While the KEP and Marine combination does off up better value for KEP, the market may have baked in the bulk of good news for the time being.
- RSI triangulation with non confirmation divergence warns of a pending intermediate top brewing with blow off resistance near 7.3 in the event we clear 7.0 near term resistance.
SK Shieldus: Likely to Lower IPO Price by 19% Post Bookbuilding Results
- Numerous local Korean media outlets reported today after the market close that SK Shieldus is likely to lower the IPO price by about 19% to 25,000 won.
- Our revised base case valuation of SK Shieldus is target price of 36,948 won per share, representing 48% upside from the estimated IPO price of 25,000 won.
- We maintain our same earnings estimates for SK Shieldus. We slightly lowered the valuation multiples mainly due to lower valuations of the comps and weaker market sentiment on IPOs.
Nihon M&A: Earnings Drop Due to New Revenue Recognition Criteria; Guidance Seems Unrealistic
- Nihon M&A Center (2127 JP) reported 4QFY03/2022 results last week. Revenue declined 20.5% YoY to JPY6.1bn (vs consensus JPY7.6bn) while OP decreased 60.3% YoY to JPY889m (vs consensus JPY3.1bn)
- Revenue for FY03/2022 increased 16.1% YoY to JPY40.4bn (vs guidance JPY39.bn) while OP increased 7.1% YoY to JPY16.4bn (vs guidance JPY18bn).
- The company also announced in December last year that there were irregularities in recording sales and the share price has declined 47% since then.
Before it’s here, it’s on Smartkarma
