Pan-Asia Catalysts/Events, Quiddity Advisors

David Blennerhassett

Pan-Asia Catalysts/Events

Quiddity Advisors

Equity Bottom-Up

Hengan International Group / Equity Bottom-Up

<ul>
<li>
<a href="https://www.smartkarma.com/entities/hengan-international-group-co-ltd" target="_blank" data-smartkarma-citation="entities:29:1" rel="noopener">Hengan International Group (1044 HK)</a> and <a href="https://www.smartkarma.com/entities/vinda-international-holdings-limited" target="_blank" data-smartkarma-citation="entities:475:1" rel="noopener">Vinda International (3331 HK)</a> are both market leaders in China's personal care industry.</li>
<li>Hengan's operations have greater exposure to sanitary napkins and diapers; whereas tissues account for 83% of Vinda's revenue. Both companies have been impacted by an increase in wood pulp prices.</li>
<li>Hengan is trading cheap; but Vinda's bottom line is forecast to return to its glory days. Plus rumours of a possible takeover of Vinda continue to do the rounds. </li>
</ul>



Hengan International Group (1044 HK) and Vinda International (3331 HK) are both market leaders in China's personal care industry.
Hengan's operations have greater exposure to sanitary napkins and diapers; whereas tissues account for 83% of Vinda's revenue. Both companies have been impacted by an increase in wood pulp prices.
Hengan is trading cheap; but Vinda's bottom line is forecast to return to its glory days. Plus rumours of a possible takeover of Vinda continue to do the rounds. 


Event-Driven

<ul>
<li>Tissue-Maker <a href="https://www.smartkarma.com/entities/vinda-international-holdings-limited" target="_blank" data-smartkarma-citation="entities:475:1" rel="noopener">Vinda International (3331 HK)</a> closed down 6.4% yesterday, recovering from a 13.8% fall intra day.</li>
<li>Vinda said its 1Q23 operating profit declined 85.4% to HK$65mn. Vinda also announced its controlling shareholder <a href="https://www.smartkarma.com/entities/essity-ab" target="_blank" data-smartkarma-citation="entities:28203:1" rel="noopener">Essity (ESSITYB SS)</a> will commence a strategic review of its 51.59% ownership.</li>
<li>A long-term shareholder potentially seeking a possible divestment, shortly after a company announces poor results, is not a great look.</li>
</ul>


Tissue-Maker Vinda International (3331 HK) closed down 6.4% yesterday, recovering from a 13.8% fall intra day.
Vinda said its 1Q23 operating profit declined 85.4% to HK$65mn. Vinda also announced its controlling shareholder Essity (ESSITYB SS) will commence a strategic review of its 51.59% ownership.
A long-term shareholder potentially seeking a possible divestment, shortly after a company announces poor results, is not a great look.


Equity Long-Short Analyst

Pyari Menon

Thematic (Sector/Industry)

<ul>
<li>Brand recognition is a driver of margins and returns for consumer products, but developing and maintaining product superiority is of paramount importance to establish and sustain brands and market share</li>
<li>In this report, we take  look at how well companies in personal hygiene products like diapers, sanitary pads,  linings, and tampons are positioned from a technological perspective</li>
<li>
<a href="https://www.smartkarma.com/entities/procter-gamble-co" target="_blank" data-smartkarma-citation="entities:978:1" rel="noopener">Procter &amp; Gamble Co (PG US)</a>, <a href="https://www.smartkarma.com/entities/kimberly-clark-corp" target="_blank" data-smartkarma-citation="entities:2292:1" rel="noopener">Kimberly Clark (KMB US)</a> , <a href="https://www.smartkarma.com/entities/unicharm-corp" target="_blank" data-smartkarma-citation="entities:6246:1" rel="noopener">Unicharm Corp (8113 JP)</a>, <a href="https://www.smartkarma.com/entities/daio-paper-corp" target="_blank" data-smartkarma-citation="entities:3211:1" rel="noopener">Daio Paper Corp (3880 JP)</a>, and <a href="https://www.smartkarma.com/entities/kao-corp" target="_blank" data-smartkarma-citation="entities:12933:1" rel="noopener">Kao Corp (4452 JP)</a> lead the field</li>
</ul>


Brand recognition is a driver of margins and returns for consumer products, but developing and maintaining product superiority is of paramount importance to establish and sustain brands and market share
In this report, we take  look at how well companies in personal hygiene products like diapers, sanitary pads,  linings, and tampons are positioned from a technological perspective

Procter &amp; Gamble Co (PG US), Kimberly Clark (KMB US) , Unicharm Corp (8113 JP), Daio Paper Corp (3880 JP), and Kao Corp (4452 JP) lead the field


Stock Ideas from Data Mining Technical Publications: A Look at Diapers, Sanitary Pads, and Tampons

After its first Offer was rejected by <a href="https://www.smartkarma.com/entities/asaleo-care-ltd" target="_blank" data-smartkarma-citation="entities:19923:1" rel="noopener">Asaleo Care Ltd (AHY AU)</a> board, Swedish outfit <a href="https://www.smartkarma.com/entities/essity-ab" target="_blank" data-smartkarma-citation="entities:28203:1" rel="noopener">Essity AB (ESSITYB SS)</a> returned on the 17 February with an improved <a href="https://cdn-api.markitdigital.com/apiman-gateway/ASX/asx-research/1.0/file/2924-02342161-3A561375?access_token=83ff96335c2d45a094df02a206a39ff4" target="_blank" rel="noopener">A$1.45/share proposal</a> - up from $1.26/share - comprising $1.40/share in cash plus A$0.05/share of permitted dividends, which are expected to be fully franked.
The record date for the ordinary dividend of A$0.03/share was the 16 March.
The Scheme Doc was <a href="https://cdn-api.markitdigital.com/apiman-gateway/ASX/asx-research/1.0/file/2924-02366574-3A565799?access_token=83ff96335c2d45a094df02a206a39ff4" target="_blank" rel="noopener">released</a> on the 23 April, and yesterday Asaleo shareholders overwhelmingly (99%+) <a href="https://cdn-api.markitdigital.com/apiman-gateway/ASX/asx-research/1.0/file/2924-02380616-3A568149?access_token=83ff96335c2d45a094df02a206a39ff4" target="_blank" rel="noopener">voted</a> for the Scheme. 
Done &amp; dusted. The implementation date is expected to be on the 1 July. The special dividend of A$0.02/share will be paid on the 21 June, with a record date of the 15 June.
More below the fold.

After its first Offer was rejected by Asaleo Care Ltd (AHY AU) board, Swedish outfit Essity AB (ESSITYB SS) returned on the 17 February with an improved A$1.45/share proposal - up from $1.26/share - comprising $1.40/share in cash plus A$0.05/share of permitted dividends, which are expected to be fully franked.
The record date for the ordinary dividend of A$0.03/share was the 16 March.
The Scheme Doc was released on the 23 April, and yesterday Asaleo shareholders overwhelmingly (99%+) voted for the Scheme. 
Done &amp; dusted. The implementation date is expected to be on the 1 July. The special dividend of A$0.02/share will be paid on the 21 June, with a record date of the 15 June.
More below the fold.

Asaleo (ASX: AHY): Essity’s Offer Gets Up

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On the 10 December, Swedish outfit <a href="https://www.smartkarma.com/entities/essity-ab" target="_blank" data-smartkarma-citation="entities:28203:1" rel="noopener">Essity AB (ESSITYB SS)</a> made a conditional, non-binding <a href="https://cdn-api.markitdigital.com/apiman-gateway/ASX/asx-research/1.0/file/2924-02320914-3A557776?access_token=83ff96335c2d45a094df02a206a39ff4" target="_blank" rel="noopener">A$1.26/share Offer</a> for the remaining 63.8% of <a href="https://www.smartkarma.com/entities/asaleo-care-ltd" target="_blank" data-smartkarma-citation="entities:19923:1" rel="noopener">Asaleo Care Ltd (AHY AU)</a> it did not already own, either by way of a Scheme or an off-market takeover.
Concurrent with a <a href="https://cdn-api.markitdigital.com/apiman-gateway/ASX/asx-research/1.0/file/2924-02333643-3A559971?access_token=83ff96335c2d45a094df02a206a39ff4" target="_blank" rel="noopener">trading update on the 27 January</a>, AHY's independent board committee concluded the proposal fundamentally undervalued Asaelo and was materially inadequate.
Essity has now returned with an improved <a href="https://cdn-api.markitdigital.com/apiman-gateway/ASX/asx-research/1.0/file/2924-02342161-3A561375?access_token=83ff96335c2d45a094df02a206a39ff4" target="_blank" rel="noopener">A$1.45/share proposal</a>, comprising $1.40/share in cash plus A$0.05/share of permitted dividends, which are expected to be fully franked. A$1.45 represents a premium of 43.6% to the undisturbed price. The Scheme is not subject to financing or due diligence. 
Independent non-Essity directors and AHY's CEO recommend the Offer.
The parties have entered into a Scheme implementation agreement. Provided the Scheme is approved, implementation is expected late-June of this year.
</div>
<div>
More below the fold.
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On the 10 December, Swedish outfit Essity AB (ESSITYB SS) made a conditional, non-binding A$1.26/share Offer for the remaining 63.8% of Asaleo Care Ltd (AHY AU) it did not already own, either by way of a Scheme or an off-market takeover.
Concurrent with a trading update on the 27 January, AHY's independent board committee concluded the proposal fundamentally undervalued Asaelo and was materially inadequate.
Essity has now returned with an improved A$1.45/share proposal, comprising $1.40/share in cash plus A$0.05/share of permitted dividends, which are expected to be fully franked. A$1.45 represents a premium of 43.6% to the undisturbed price. The Scheme is not subject to financing or due diligence. 
Independent non-Essity directors and AHY's CEO recommend the Offer.
The parties have entered into a Scheme implementation agreement. Provided the Scheme is approved, implementation is expected late-June of this year.


More below the fold.


Asaleo (ASX: AHY): Essity's Revised Offer

Sweden

Essity Aktiebolag develops, produces, and sells personal care products. The Company offers products such as toilet papers, household towels, handkerchiefs, facial tissues, hand sanitizers, dispensers, wet wipes, and napkins. Essity markets its products globally.

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Essity (ESSITYB SS)

Hengan/Vinda: Pulp Friction

Of the two, Hengan looks unduly beaten up here. I'd tilt outright long in Hengan; or hedge with Vinda (although that's been an awful trade in...

David Blennerhassett

Essity Mulls Holding In Vinda (3331 HK)

A long-term shareholder potentially looking to divest its stake, shortly after a company announces poor results, is not a great look. Pricing for...

David Blennerhassett

Stock Ideas from Data Mining Technical Publications: A Look at Diapers, Sanitary Pads, and Tampons

Spotting the innovation leaders in the hygiene aisle of the supermarkets. A look at the diaper, sanitary pads, and tampon makers.

Pyari Menon

Asaleo (ASX: AHY): Essity’s Offer Gets Up

This has and will continue to trade tight to terms. Depending on their individual tax circumstances, some shareholders can take advantage of the...

David Blennerhassett

Asaleo (ASX: AHY): Essity's Revised Offer

Trading at a spread of 1.4%/3.9% gross/annualised. Depending on their individual tax circumstances, some shareholders can take advantage of the...

David Blennerhassett

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