In today’s briefing:
- Toshiba Board Ructions as Independent Director Goes Rogue
- Meituan (3690 HK): Authorities Turned Friendly to Internet Companies, Upgrade to Buy
- Toshiba – Zage News
- Sea Ltd.’s Money Machine Is Broken, Downside Is Not Fully Priced-In
- China Conch Venture (586 HK): Last Day Of Entitlement
Toshiba Board Ructions as Independent Director Goes Rogue
- There is a Toshiba Corp (6502 JP) EGM next week for shareholders to vote on the company’s Separation Plan, with a shareholder proposal to re-engage take-private buyers.
- Four+ weeks ago, the Board unanimously supported the first, and unanimously opposed the second, and shareholders and major proxy advisors came out against the first.
- Now Independent Director Raymond Zage, originally from one of the dissenting shareholders, has written a letter stating he has voted FOR the shareholder proposal the board rejected. OOPS! 🤭
Meituan (3690 HK): Authorities Turned Friendly to Internet Companies, Upgrade to Buy
- Central Financial Working Committee turned friendly to overseas listed internet Companies.
- We believe Meituan will be free from the pressure of anti-monopoly rules.
- Meituan stock has fallen significantly and we upgrade it to BUY.
Toshiba – Zage News
- The announcement from Raymond Zage that he would vote for 3D’s proposal at next week’s EGM is a curious development.
- It suggests that pressure on Toshiba’s directors could be ramping up significantly.
- Whether that is a good thing or not is a serious question though.
Sea Ltd.’s Money Machine Is Broken, Downside Is Not Fully Priced-In
- Perhaps, misled by the Chinese tech rally due to the change in stance from the Chinese Government, Sea’s shares rose by 33% compared to the broader market’s 8.3%.
- With fundamentals deteriorating and the Federal Reserve signalling an aggressive rate hike outlook, Sea Ltd (SE US)’s 33% move seems unwarranted.
- Meanwhile, the downside potential is quite significant as Sea trades at a significant FY+2 EV/Sales premium to regional peers whose cyclical bottoms are unknown.
China Conch Venture (586 HK): Last Day Of Entitlement
- Today (18 March) is the last day of dealing in China Conch Venture Holdings (586 HK) shares on a cum-entitlement basis for the Conch Environment Protection (CEEP) spin-off.
- CEEP is expected to commence trading on the 30 March. The Listing Document is expected to be issued on or around the 22 March.
- Separately, I see CCV trading at a 14% premium to its NAV, around its most extreme-ever level.
Before it’s here, it’s on Smartkarma
