Equity, Bottom-up Analyst, Investics Research

Sameer Taneja

A buy-side analyst with over 15 years of experience investing in Asian markets and specializing in the mid-small cap space, emphasizing value investing in companies with good free cash flows/dividends and long-term holding horizons. 
Exempt Financial Adviser (EFA) under CrossASEAN Research Pte Ltd. It is important to note that the information provided by Investics Research is based on publicly available data and own knowledge, which has been gathered and analyzed from a variety of sources. While every effort has been made to ensure the accuracy and completeness of the information provided, it is not guaranteed to be free from errors or omissions. All forecasts and estimates are based on information that has been obtained from public sources that are considered to be reliable. The sources include but are not limited to, company announcements, exchange filings, presentations, etc. Investics does not guarantee the accuracy and completeness of the forecasts, estimates, and/or other information.

Equity, Bottom-up Analyst

Times Neighborhood - Value+Growth, Could It Be an Acquisition Target?

Times Neighborhood: H1 2020 Excellence in Execution

Investics Research

It is important to note that the information provided by Investics Research is based on publicly available data and own knowledge, which has been gathered and analyzed from a variety of sources. While every effort has been made to ensure the accuracy and completeness of the information provided, it is not guaranteed to be free from errors or omissions. All forecasts and estimates are based on information that has been obtained from public sources that are considered to be reliable. The sources include but are not limited to, company announcements, exchange filings, presentations, etc. Investics does not guarantee the accuracy and completeness of the forecasts, estimates, and/or other information.

Equity Bottom-up Research

Equity Bottom-Up

<p>We believe that <a href="https://www.smartkarma.com/entities/times-neighborhood-holdings" target="_blank" data-smartkarma-citation="entities:28666:1" rel="noopener">Times Neighborhood (9928 HK)</a> will continue to execute well in the current environment. There are multiple catalysts for the share price in the not too distant future:</p><ul>
<li>We expect the company to announce a profit alert for H1 FY2021, which at the very least would match its full-year guidance of 73% profit growth for FY2021. Given its historical record, we would not be surprised if it handily beats its guidance.</li>
<li>Recently the controlling shareholder has also purchased stock which further increases our conviction in the name.</li>
<li>We expect the company to be on track to accomplish its GFA guidance through M&amp;A and 3rd parties.</li>
<li>The stock is cheap, trading at 12.1x FY21 and 8.0x FY22 PE, which is a massive valuation gap to its peers.</li>
<li>The company has &gt;20% of its market capitalization in cash, and we believe that it will be able to engage in shareholder-friendly activities like increasing its payout ratios. We see dividend yields improving from 2.9% in FY21 to 4.8% in FY22.  We expect an improvement in the payout ratio from 35% to 40% unless the company can increase the pace of its M&amp;A activity.</li>
</ul>

We believe that Times Neighborhood (9928 HK) will continue to execute well in the current environment. There are multiple catalysts for the share price in the not too distant future:
We expect the company to announce a profit alert for H1 FY2021, which at the very least would match its full-year guidance of 73% profit growth for FY2021. Given its historical record, we would not be surprised if it handily beats its guidance.
Recently the controlling shareholder has also purchased stock which further increases our conviction in the name.
We expect the company to be on track to accomplish its GFA guidance through M&amp;A and 3rd parties.
The stock is cheap, trading at 12.1x FY21 and 8.0x FY22 PE, which is a massive valuation gap to its peers.
The company has &gt;20% of its market capitalization in cash, and we believe that it will be able to engage in shareholder-friendly activities like increasing its payout ratios. We see dividend yields improving from 2.9% in FY21 to 4.8% in FY22.  We expect an improvement in the payout ratio from 35% to 40% unless the company can increase the pace of its M&amp;A activity.


Times Neighborhood: Good H1 2021 on the Cards