In today’s briefing:
- AKM (1639 HK): Timeline Clarified As Pre-Conditions Nearly Fulfilled
- LG Energy Solution: End of the 3 Months Lock Up Period, Higher Short Selling, & JV with Stellantis
- Payment Companies – Thoughts on Screen Snapshots 1Q22
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.
LG Energy Solution: End of the 3 Months Lock Up Period, Higher Short Selling, & JV with Stellantis
- We discuss the end of the three months lock-up period, higher short selling of LG Energy Solution as well as the recent JV formation with Stellantis.
- At the current price of 439,000 won, we believe there is a 15% downside risk to LG Energy Solution shares over the next 3-6 months.
- LGES’s share price has rallied by 8% since the news about the JV with Stellantis have been announced but we believe this rally is likely to be short-lived.
Payment Companies – Thoughts on Screen Snapshots 1Q22
- Our negative recommendations from December – especially Paytm – worked better than our positive ones, given 1Q22 market conditions; we see much value in payment companies but we remain selective
- Based on our screens, we continue to favour Mastercard in the megacaps, we stick with PagSeguro and Getnet, adding Nexi which looks very oversold, despite its fundamental headwinds
- We take Paytm off the sell list, but we remain negative on DLocal on its very demanding valuations, and we add Kakao Pay to the negative list
Before it’s here, it’s on Smartkarma
