In today’s briefing:
- JD.com (9618 HK): Overhang a Bigger Worry than Immediate Selling
- GoTo Vs Bukalapak Vs Grab Vs Sea
- First News of Toshiba “Studying a Privatisation Plan”
- AKM (1639 HK): Timeline Clarified As Pre-Conditions Nearly Fulfilled
- No Surprise As Perth Royal Commission Finds Crown Resorts Unsuitable for WA Licence
JD.com (9618 HK): Overhang a Bigger Worry than Immediate Selling
- We do not expect there will be huge selling in JD.com Inc. (9618 HK) immediately. However, there will be an overhang on the stock in the near to medium term.
- JD.com could drop in the next few days as the ADR allotment is sold in the market. Shorts that have been built up could soak up some of the flow.
- The big worry is the US$4bn of JD.com stock that Prosus will receive. It is likely they will look to sell and use the cash to buy back their own stock.
GoTo Vs Bukalapak Vs Grab Vs Sea
- GoTo (1379371D IJ) is the leading digital ecosystem in Southeast Asia. It has extended its book build for a $1.3 billion IPO to 24 March.
- In GoTo Gojek Tokopedia IPO: Valuation Insights, we noted that our valuation analysis suggests that the price range is aggressive and unattractive.
- In this note, we compare GoTo vs Bukalapak (BUKA IJ), Grab (GRAB US) and Sea Ltd (SE US)‘s relevant businesses across GTV, take rates and segmental margins.
First News of Toshiba “Studying a Privatisation Plan”
- A Nikkei article overnight displays the first buds of “spring” around Toshiba management’s tilt towards trying to get shareholders what they want after the Separation Plan failed at the EGM.
- The article doesn’t say much, but it is a sign the Toshiba Board are not “lying flat.”
- However it doesn’t mean a deal is coming much less anywhere near doable. This is a long road. But it encourages more proactive portfolio resconstruction.
AKM (1639 HK): Timeline Clarified As Pre-Conditions Nearly Fulfilled
- Flexible printed board player AKM Industrial (1639 HK) has announced the approvals for the pre-conditions attached to the Scheme are in the final stages.
- Separately, the Court date for sanctioning the Scheme has been listed for the 19 July.
- Trading at a gross spread to terms of 3.6%, including the final dividend.
No Surprise As Perth Royal Commission Finds Crown Resorts Unsuitable for WA Licence
- The Perth Casino Royal Commission has found Crown Resorts (CWN AU)‘s casino in Perth, Western Australia, is “not suitable” to hold a gaming licence.
- This follows the findings in New South Wales and Victoria that two of Crown Resort’s other subsidiaries were either not suitable to be granted a casino license or not suitable.
- As with the recently announced AUSTRAC proceedings, Blackstone would have been well prepared for this latest development.
Before it’s here, it’s on Smartkarma
