In today’s briefing:
- AKM Industrial’s Offer Spread Risk/Reward
- Appier (4180 JP) – Eating the Cookie Crumbs
- Meituan (3690 HK): 4Q21, Strong Revenue and Promising Initiatives
- V.S. Industry (VSID.KL) – Rising Concerns From Operational Disruptions
AKM Industrial’s Offer Spread Risk/Reward
- AKM Industrial (1639 HK)’s privatisation offer from Alpha Luck and AKM Meadville of HK$1.8345 consists of a base offer (HK$1.82) and a final dividend (HK1.45 cents).
- Approval from the State Administration of Foreign Exchange is the remaining pre-condition. The Court hearing of the petition for the sanction of the scheme is set for 19 July.
- At last close and for a July end effective date, the gross and annualised spread to the total offer of HK$1.8345 is 3.6% and 11.2%, respectively.
Appier (4180 JP) – Eating the Cookie Crumbs
- The stock is down 54% over the past year despite 41% revenue growth. We see 3 key drivers in 2022.
- Appier is growing rapidly in the US, a much bigger market than its home market of North Asia.
- Appier is at the forefront of digital transformation, benefitting from structural DX of marketing functions and increased use of 1st party data.
Meituan (3690 HK): 4Q21, Strong Revenue and Promising Initiatives
- Meituan’s total revenue continued to rise strongly by 31% in 4Q21.
- Initiatives businesses are losing money, but two of them are in leading positions.
- We believe the stock has a 20% upside for this year.
V.S. Industry (VSID.KL) – Rising Concerns From Operational Disruptions
- D/G to HOLD with lower TP of RM1.07 (-38%)
- Labour and components shortages dragged earnings
- QoQ core profit improvement may not be sustainable
- Rising costs and inflation headwinds ahead
Before it’s here, it’s on Smartkarma
