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Smartkarma Daily Briefs

Jul 07
0

Event-Driven: Rakuten Inc, Hwa Hong Corp, Bank of Kyoto, SK IE Technology, LG Energy Solution, Baidu, TPG Telecom Ltd and more

By | Daily Briefs, Event-Driven

In today’s briefing:

  • Rakuten’s Fortunes Could Change With The Rakuten Bank IPO
  • Hwa Hong (HWAH SP): MGO Triggered, Offeror Now Controls 38.2%
  • JAPAN ACTIVISM:  Silchester’s Bank of Kyoto AGM Results – Activism Still Failing
  • SKIET Block Deal: Passive Impact on TIGER (WISE) Secondary Cell ETF Rebalancing
  • LG Energy Solution: Potential Sellers Post Lock-Up End, Mkt Share Losses, & LG Chem’s Capital Needs
  • HSI Index Rebalance Preview: Finding the Balance
  • TPG Telecom Possible Selldown – Founder Could Look to Raise up to US$1bn with a Clean Exit

Rakuten’s Fortunes Could Change With The Rakuten Bank IPO

By Oshadhi Kumarasiri

  • One of Japan’s largest internet companies, Rakuten Inc (4755 JP) applied to list its consolidated subsidiary, Rakuten Bank (EBANKZ JP) on the Tokyo Stock Exchange on the 4th of July.
  • With steady customer account growth mostly assured through leveraging Rakuten’s eco-system with more than 36.0m monthly active users, Rakuten Bank is likely to be valued at over ¥500bn.
  • Thus, we think the Rakuten Bank IPO could change Rakuten’s fortunes and help the share price bounce back from a 10-year low level.

Hwa Hong (HWAH SP): MGO Triggered, Offeror Now Controls 38.2%

By David Blennerhassett

  • As a result of market acquisitions, the Offeror for Hwa Hong Corp (HWAH SP) now holds 30.0%, triggering a mandatory general offer (MGO). 
  • Including shares tendered, the Offeror controls 38.24%. The Offer remains subject to a 50% acceptance condition. HWAH directors holding 29.26% of shares still do not intend to accept the Offer. 
  • The S$0.40/share Offer price has been declared final. The final closing date is 1 August. This transaction will go down to the wire.

JAPAN ACTIVISM:  Silchester’s Bank of Kyoto AGM Results – Activism Still Failing

By Travis Lundy

  • Silchester, after holding Bank of Kyoto (8369 JP) shares 16 years, becoming the largest investor, FINALLY publicly asked the bank to make a gesture to pay out a tiny special div. 
  • The bank rejected them, but they took it to to the AGM. And there Silchester got rejected by the shareholders. Soundly. Hostile activism is not going to be easy here. 
  • But all is not lost. Since December, the bank has raised its payout ratio to 50% and has promised to cut a piece of its cross-holdings in the MTMP.

SKIET Block Deal: Passive Impact on TIGER (WISE) Secondary Cell ETF Rebalancing

By Sanghyun Park

  • This block deal won’t lead to a float increase event. Nevertheless, it will substantially impact the rebalancing of the TIGER (WISE) Secondary Cell ETF next week.
  • A passive net inflow of up to ₩10B occurs, equivalent to 0.5x ADTV. Indeed, this level provides a significant day trade setup.
  • With today’s price correction, SKIET’s index weight will drop to the high 4% range. Applying the 36% float to today’s price will increase the weight to 5.5% at the rebalancing. 

LG Energy Solution: Potential Sellers Post Lock-Up End, Mkt Share Losses, & LG Chem’s Capital Needs

By Douglas Kim

  • Although LG Chem may not sell additional stake in LGES this year, over the next 2-3 years, there is a high probability of LG Chem selling some stake in LGES.
  • On 27 July 2022, 86% stake of LG Energy Solution could be sold, of which 81.8% is owned by LG Chem and the remaining 4.2% is owned by institutional investors/others.
  • LGES’s market share in the global rechargeable battery usage declined significantly from May 2021 to May 2022, due to recent EV disruption at Tesla’s Shanghai plant and rise of BYD.

HSI Index Rebalance Preview: Finding the Balance

By Brian Freitas

  • Currently at 69 constituents, it is unlikely that we reach 80 member by year end. Hang Seng Indexes is finding it tough to reach the target by excluding unprofitable companies.
  • We list 11 stocks that could be added to the index in September – with one-way turnover just over 5%, the actual number of inclusions will be lower.
  • There are a few potential inclusions where short interest is over 5% of the free float. These stocks could see short covering ahead of announcement of the changes.

TPG Telecom Possible Selldown – Founder Could Look to Raise up to US$1bn with a Clean Exit

By Sumeet Singh

  • TPG Telecom was formed by a merger of Vodafone and TPG in Jul 2020. The merger resulted in the shares owned by Vodafone, Hutchison and DavidTeoh, being put in escrow.
  • The lockup on those shares will expire this month. David Teoh, TPG’s founder, has sold some stock before in Dec 21 and could look to exit his remaining shareholding.
  • In this note, we talk about the upcoming lock-up release and its dynamics.

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Jul 07
0

Consumer: Rakuten Inc, Emperador Inc, New Oriental Education & Technology Group, DoorDash Inc, Allied Blenders & Distillers, Kura Sushi Inc, Marico Ltd and more

By | Consumer, Daily Briefs

In today’s briefing:

  • Rakuten’s Fortunes Could Change With The Rakuten Bank IPO
  • Emperador SGX Secondary Listing: Scotch, Not so Neat
  • A New New Oriental?
  • Amazon’s Grubhub Deal Worse for DoorDash than Uber
  • Allied Blenders and Distillers Pre-IPO Tear Sheet
  • Kura Sushi (2695): Dominates Sushi Market with Sanrio Power
  • Marico Ltd – Weak Consumption Trends Weigh on 1QFY23 Volume

Rakuten’s Fortunes Could Change With The Rakuten Bank IPO

By Oshadhi Kumarasiri

  • One of Japan’s largest internet companies, Rakuten Inc (4755 JP) applied to list its consolidated subsidiary, Rakuten Bank (EBANKZ JP) on the Tokyo Stock Exchange on the 4th of July.
  • With steady customer account growth mostly assured through leveraging Rakuten’s eco-system with more than 36.0m monthly active users, Rakuten Bank is likely to be valued at over ¥500bn.
  • Thus, we think the Rakuten Bank IPO could change Rakuten’s fortunes and help the share price bounce back from a 10-year low level.

Emperador SGX Secondary Listing: Scotch, Not so Neat

By Arun George

  • Emperador Inc (EMP PM) is pre-marketing a secondary listing on the SGX IPO by raising US$300-500 million, according to press reports. 
  • Emperador has established a track record of decent revenue growth, profitability and cash generation over the years. 
  • While the fundamentals are solid the valuation looks full in comparison to peers and historical trading ranges. 

A New New Oriental?

By Evelyn Zhang

  • Oriental Selection achieves high-speed user growth through bilingual livestreaming, thanks to Douyin’s  algorithmic recommendation mechanism before 6/18 ecommerce, after 6/18 the increase in the follower numbers & GMV dropped sharply.
  • The unit price of the product is below average, due to the focus on produce and books, Agricultural livestreaming has always been a difficult to grow category
  • 10%-15% Commission  is lower than industry average, and subsequent supply chain control and 1st party products have lower margins.

Amazon’s Grubhub Deal Worse for DoorDash than Uber

By Aaron Gabin

  • Amazon announced a partnership with TKWY’s Grubhub where Amazon Prime members will get one year free of Grubhub+ membership.
  • Amazon has the option to take a 2% stake in Grubhub which could grow to 15% depending on performance conditions.
  • Deal is a direct shot at DoorDash’s Dashpass subscription program, which is 30% of DASH’s customers and accounts for ~50%? of GOV… expect a price cut to stave off churn.

Allied Blenders and Distillers Pre-IPO Tear Sheet

By Sumeet Singh

  • Allied Blenders and Distillers (ABD) is looking to raise about US$250m in its upcoming India IPO. The deal will be run by ISec, Axis, JM Fin, Kotak and Equirus.
  • ABD is the largest Indian-owned Indian-made foreign liquor (IMFL) company and the third largest IMFL company in India, in terms of annual sales volumes between FY14 and FY21.
  • It had a market share of 8.2% in the IMFL market by sales volumes in FY21. Its products are retailed at over 64,000 outlets in India.

Kura Sushi (2695): Dominates Sushi Market with Sanrio Power

By Mita Securities

  • Same-store sales were 108.6% vs. June 2021 (113.6% for May), 101.5% vs. June 2020 (128.0% for May), and 98.9% vs. June 2019 (102.4% for May)
  • The company ran a Sanrio Characters campaign in June. The prizes featuring popular characters such as “Cinnamoroll” seem to have been well received by the customers
  • The number of stores at the end of June was 516 in Japan (+2 MoM), 37 in the U.S. (flat MoM), and 46 in Taiwan (+1 MoM). The total number of stores was 599 (+3 MoM)

Marico Ltd – Weak Consumption Trends Weigh on 1QFY23 Volume

By Nirmal Bang

  • Tepid demand leads to mid-single-digit volume decline in India business: MRCO’s domestic business (~77% of revenue) saw mid-single-digit volume decline in 1QFY23, largely dragged by a sharp drop in Saffola Oils, which had high in-home consumption in the base quarter and also witnessed significant downtrading from super premium to mass segment in Edible Oils.

  • Gross margins to stay flat sequentially: Trends seen in certain key raw materials for MRCO in 1QFY23: (i) Copra prices remained soft, (ii) Edible and crude oil prices cooled off to some extent towards the end of the quarter.

  • View & Valuation: Barring the recent quarters (affected by overall deceleration in market demand), MRCO’s core portfolio has delivered a strong performance and the company continues to make efforts towards meeting its medium-term growth aspirations.

Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

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Jul 07
0

Singapore: Hwa Hong Corp and more

By | Daily Briefs, Singapore

In today’s briefing:

  • Hwa Hong (HWAH SP): MGO Triggered, Offeror Now Controls 38.2%

Hwa Hong (HWAH SP): MGO Triggered, Offeror Now Controls 38.2%

By David Blennerhassett

  • As a result of market acquisitions, the Offeror for Hwa Hong Corp (HWAH SP) now holds 30.0%, triggering a mandatory general offer (MGO). 
  • Including shares tendered, the Offeror controls 38.24%. The Offer remains subject to a 50% acceptance condition. HWAH directors holding 29.26% of shares still do not intend to accept the Offer. 
  • The S$0.40/share Offer price has been declared final. The final closing date is 1 August. This transaction will go down to the wire.

Before it’s here, it’s on Smartkarma

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Jul 07
0

China: New Oriental Education & Technology Group, Baidu, Deewin Tianxia, Shimao Property Holdings, Central China Real Estate, Hong Kong Hang Seng Index and more

By | China, Daily Briefs

In today’s briefing:

  • A New New Oriental?
  • HSI Index Rebalance Preview: Finding the Balance
  • Deewin Tianxia IPO – Largest Segment Has Slowed and Generates Bulk of Sales from Related Parties
  • Bond Market Monitor: What Shimao’s Default Tells Us
  • Morning Views Asia: Central China Securities, China Vanke
  • Hang Seng Index Constituents 6th July 2022

A New New Oriental?

By Evelyn Zhang

  • Oriental Selection achieves high-speed user growth through bilingual livestreaming, thanks to Douyin’s  algorithmic recommendation mechanism before 6/18 ecommerce, after 6/18 the increase in the follower numbers & GMV dropped sharply.
  • The unit price of the product is below average, due to the focus on produce and books, Agricultural livestreaming has always been a difficult to grow category
  • 10%-15% Commission  is lower than industry average, and subsequent supply chain control and 1st party products have lower margins.

HSI Index Rebalance Preview: Finding the Balance

By Brian Freitas

  • Currently at 69 constituents, it is unlikely that we reach 80 member by year end. Hang Seng Indexes is finding it tough to reach the target by excluding unprofitable companies.
  • We list 11 stocks that could be added to the index in September – with one-way turnover just over 5%, the actual number of inclusions will be lower.
  • There are a few potential inclusions where short interest is over 5% of the free float. These stocks could see short covering ahead of announcement of the changes.

Deewin Tianxia IPO – Largest Segment Has Slowed and Generates Bulk of Sales from Related Parties

By Clarence Chu

  • Deewin Tianxia (2418 HK) is looking to raise up to US$147m in its Hong Kong IPO.
  • Deewin Tianxia (DT) is a service provider in the commercial automobile service industry in China. 
  • The firm continues to generate the bulk of its revenue from its controlling shareholder and the latter’s associates. 

Bond Market Monitor: What Shimao’s Default Tells Us

By Warut Promboon

  • A lack of prediction accuracy leads us to advise against investing in risky credits.
  • We expect up 1/3 of Chinese property developers to either default or negotiate with their creditors and see a few sovereigns running out of cash, following Sri Lanka’s demise. 
  • Shimao’s failure to negotiate with its creditors leads us to believe the liquidity situation at many Chinese developers is worse than expected.

Morning Views Asia: Central China Securities, China Vanke

By Charles Macgregor

Lucror Analytics Morning Views comprise our fundamental credit analysis, opinions and trade recommendations on high yield issuers in the region, based on key company-specific developments in the past 24 hours. Our Morning Views include a section with a brief market commentary, key market indicators and a macroeconomic and corporate event calendar.

Hang Seng Index Constituents 6th July 2022

By Untying The Gordian Knot

  • Over the last few days, the banks and financials have been acting very poorly.
  • The gap down on Wednesday in a few sectors and stocks got my attention as there was a bearish setup before today’s trading day.
  • A gap, if not filled, will usually mark a change or acceleration of a trend. 

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Jul 07
0

Financials: Bank of Kyoto, S&P 500, Hong Kong Hang Seng Index, Peer Metaverse Coin and more

By | Daily Briefs, Financials

In today’s briefing:

  • JAPAN ACTIVISM:  Silchester’s Bank of Kyoto AGM Results – Activism Still Failing
  • SPX July Rally Hurdles
  • Hang Seng Index Constituents 6th July 2022
  • Peer Metaverse Coin Deep Dive

JAPAN ACTIVISM:  Silchester’s Bank of Kyoto AGM Results – Activism Still Failing

By Travis Lundy

  • Silchester, after holding Bank of Kyoto (8369 JP) shares 16 years, becoming the largest investor, FINALLY publicly asked the bank to make a gesture to pay out a tiny special div. 
  • The bank rejected them, but they took it to to the AGM. And there Silchester got rejected by the shareholders. Soundly. Hostile activism is not going to be easy here. 
  • But all is not lost. Since December, the bank has raised its payout ratio to 50% and has promised to cut a piece of its cross-holdings in the MTMP.

SPX July Rally Hurdles

By Thomas Schroeder

  • Call for early July low for a choppy rise into mid July+. Expect a series of sharp draw downs and rallies. Asia and Europe display a more bearish tone.
  • Deep backfills within the SPX range are a concern. 3,750/00 buy support with 3,900 and 4,000 rally objectives.
  • Risk of a muted C wave rise that fizzles near 3,950 on the back of recession/growth concerns is becoming more apparent.

Hang Seng Index Constituents 6th July 2022

By Untying The Gordian Knot

  • Over the last few days, the banks and financials have been acting very poorly.
  • The gap down on Wednesday in a few sectors and stocks got my attention as there was a bearish setup before today’s trading day.
  • A gap, if not filled, will usually mark a change or acceleration of a trend. 

Peer Metaverse Coin Deep Dive

By Coinstack

  • Peer is a Web3 social network and blockchain-based metaverse ecosystem.
  • As we wrote an earlier deep dive article about, Peer’s debut application this Fall will be a Web3 social network that will allow users to read, write, and own their social content and friend graph and be incentivized through tokenization. 
  • After three years of development, Peer launched their own L1 blockchain in March ‘22 and will soon launch their own wallet. 

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Jul 07
0

TMT: LG Energy Solution, HPSP, NVIDIA Corp, Xperi, Delta Electronics Thai and more

By | Daily Briefs, TMT/Internet

In today’s briefing:

  • LG Energy Solution: Potential Sellers Post Lock-Up End, Mkt Share Losses, & LG Chem’s Capital Needs
  • HPSP IPO Book Building Results Analysis
  • Is Nvidia Really A Bargain Or Is There More Pain Ahead?
  • XPER: Positive Catalyst to Growth Story
  • DELTA: Shortage Issue Still Persists Despite Concerns on Weakening Demand in 2022

LG Energy Solution: Potential Sellers Post Lock-Up End, Mkt Share Losses, & LG Chem’s Capital Needs

By Douglas Kim

  • Although LG Chem may not sell additional stake in LGES this year, over the next 2-3 years, there is a high probability of LG Chem selling some stake in LGES.
  • On 27 July 2022, 86% stake of LG Energy Solution could be sold, of which 81.8% is owned by LG Chem and the remaining 4.2% is owned by institutional investors/others.
  • LGES’s market share in the global rechargeable battery usage declined significantly from May 2021 to May 2022, due to recent EV disruption at Tesla’s Shanghai plant and rise of BYD.

HPSP IPO Book Building Results Analysis

By Douglas Kim

  • HPSP (403870 KS) announced its IPO book building results. The IPO price has been determined at 25,000 won, which is at the high end of the IPO price range.
  • There were 1,577 institutions that were involved in the IPO survey and the demand ratio was 1,511 to 1. The IPO offering amount is 75 billion won.
  • Our base case valuation of HPSP is target price of 38,228 won per share, which represents 53% higher than the high end of the IPO price range of 25,000 won.

Is Nvidia Really A Bargain Or Is There More Pain Ahead?

By Vladimir Dimitrov, CFA

  • Nvidia lost nearly 35% of its value in a matter of months, when the broader market fell by less than 15% during the same period.
  • The company’s share price might not recover to its 2021 highs anytime soon, according to the company’s report.
  • About ten months ago I took a deep dive into NVIDIA’s (NASDAQ:NVDA) share price and laid out my thesis on why investors should be less concerned about the company’s business fundamentals and laser focused on its momentum exposure.

XPER: Positive Catalyst to Growth Story

By Hamed Khorsand

  • XPER is accelerating its presence within connected TVs with the acquisition of Vewd Software
  • Vewd Software is a middleware developer that has been installed in more than 450 million connected TVs and devices.
  • The synergistic value of Vewd could be revealed to shareholders in the next 12 to 18 months when XPER begins to monetize Vewd’s install base

DELTA: Shortage Issue Still Persists Despite Concerns on Weakening Demand in 2022

By Pi Research

  • We maintain our BUY rating and TP of Bt419 based on based on 51.7xPE’22E. Business update meeting last Friday came with positive news on improving shortage situation by 4Q22 
  • 2Q22E earnings to decline QoQ: We believe that 2Q22E net profit will be at Bt2.7bn (+61% YoY, -4% QoQ).
  • We expect 2Q22E sales to be at Bt24bn (+15%YoY, -4% QoQ). QoQ decline is mainly due to lockdown issues in China and longer holidays during 2Q22.

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Jul 07
0

Equity Capital Markets: Emperador Inc, HPSP, Deewin Tianxia, Allied Blenders & Distillers and more

By | Daily Briefs, ECM

In today’s briefing:

  • Emperador SGX Secondary Listing: Scotch, Not so Neat
  • HPSP IPO Book Building Results Analysis
  • Deewin Tianxia IPO – Largest Segment Has Slowed and Generates Bulk of Sales from Related Parties
  • Allied Blenders and Distillers Pre-IPO Tear Sheet

Emperador SGX Secondary Listing: Scotch, Not so Neat

By Arun George

  • Emperador Inc (EMP PM) is pre-marketing a secondary listing on the SGX IPO by raising US$300-500 million, according to press reports. 
  • Emperador has established a track record of decent revenue growth, profitability and cash generation over the years. 
  • While the fundamentals are solid the valuation looks full in comparison to peers and historical trading ranges. 

HPSP IPO Book Building Results Analysis

By Douglas Kim

  • HPSP (403870 KS) announced its IPO book building results. The IPO price has been determined at 25,000 won, which is at the high end of the IPO price range.
  • There were 1,577 institutions that were involved in the IPO survey and the demand ratio was 1,511 to 1. The IPO offering amount is 75 billion won.
  • Our base case valuation of HPSP is target price of 38,228 won per share, which represents 53% higher than the high end of the IPO price range of 25,000 won.

Deewin Tianxia IPO – Largest Segment Has Slowed and Generates Bulk of Sales from Related Parties

By Clarence Chu

  • Deewin Tianxia (2418 HK) is looking to raise up to US$147m in its Hong Kong IPO.
  • Deewin Tianxia (DT) is a service provider in the commercial automobile service industry in China. 
  • The firm continues to generate the bulk of its revenue from its controlling shareholder and the latter’s associates. 

Allied Blenders and Distillers Pre-IPO Tear Sheet

By Sumeet Singh

  • Allied Blenders and Distillers (ABD) is looking to raise about US$250m in its upcoming India IPO. The deal will be run by ISec, Axis, JM Fin, Kotak and Equirus.
  • ABD is the largest Indian-owned Indian-made foreign liquor (IMFL) company and the third largest IMFL company in India, in terms of annual sales volumes between FY14 and FY21.
  • It had a market share of 8.2% in the IMFL market by sales volumes in FY21. Its products are retailed at over 64,000 outlets in India.

Before it’s here, it’s on Smartkarma

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Jul 07
0

Most Read: Tianqi Lithium, Mapletree Commercial Trust, Hwa Hong Corp, Bank of Kyoto, SK IE Technology and more

By | Daily Briefs, Most Read

In today’s briefing:

  • MSCI August 2022 Index Rebalance Preview: The Last QIR?
  • MCT SP as MPACT Creeping Ever Higher Vs Peers
  • Hwa Hong (HWAH SP): MGO Triggered, Offeror Now Controls 38.2%
  • JAPAN ACTIVISM:  Silchester’s Bank of Kyoto AGM Results – Activism Still Failing
  • SKIET Block Deal: Passive Impact on TIGER (WISE) Secondary Cell ETF Rebalancing

MSCI August 2022 Index Rebalance Preview: The Last QIR?

By Brian Freitas

MCT SP as MPACT Creeping Ever Higher Vs Peers

By Travis Lundy

  • Mapletree Commercial Trust (MCT SP) has crept higher vs the Peer Baskets, especially in the last 4-6 weeks as Other S-REITs have weakened. 
  • This sets the stage for a potentially large flowback into S-REITs as a class coming in a few weeks.
  • It may be time to reconsider positioning, looking at where MPACT has been and will be.

Hwa Hong (HWAH SP): MGO Triggered, Offeror Now Controls 38.2%

By David Blennerhassett

  • As a result of market acquisitions, the Offeror for Hwa Hong Corp (HWAH SP) now holds 30.0%, triggering a mandatory general offer (MGO). 
  • Including shares tendered, the Offeror controls 38.24%. The Offer remains subject to a 50% acceptance condition. HWAH directors holding 29.26% of shares still do not intend to accept the Offer. 
  • The S$0.40/share Offer price has been declared final. The final closing date is 1 August. This transaction will go down to the wire.

JAPAN ACTIVISM:  Silchester’s Bank of Kyoto AGM Results – Activism Still Failing

By Travis Lundy

  • Silchester, after holding Bank of Kyoto (8369 JP) shares 16 years, becoming the largest investor, FINALLY publicly asked the bank to make a gesture to pay out a tiny special div. 
  • The bank rejected them, but they took it to to the AGM. And there Silchester got rejected by the shareholders. Soundly. Hostile activism is not going to be easy here. 
  • But all is not lost. Since December, the bank has raised its payout ratio to 50% and has promised to cut a piece of its cross-holdings in the MTMP.

SKIET Block Deal: Passive Impact on TIGER (WISE) Secondary Cell ETF Rebalancing

By Sanghyun Park

  • This block deal won’t lead to a float increase event. Nevertheless, it will substantially impact the rebalancing of the TIGER (WISE) Secondary Cell ETF next week.
  • A passive net inflow of up to ₩10B occurs, equivalent to 0.5x ADTV. Indeed, this level provides a significant day trade setup.
  • With today’s price correction, SKIET’s index weight will drop to the high 4% range. Applying the 36% float to today’s price will increase the weight to 5.5% at the rebalancing. 

Before it’s here, it’s on Smartkarma

Learn More
Jul 07
0

India: Allied Blenders & Distillers, Marico Ltd and more

By | Daily Briefs, India

In today’s briefing:

  • Allied Blenders and Distillers Pre-IPO Tear Sheet
  • Marico Ltd – Weak Consumption Trends Weigh on 1QFY23 Volume

Allied Blenders and Distillers Pre-IPO Tear Sheet

By Sumeet Singh

  • Allied Blenders and Distillers (ABD) is looking to raise about US$250m in its upcoming India IPO. The deal will be run by ISec, Axis, JM Fin, Kotak and Equirus.
  • ABD is the largest Indian-owned Indian-made foreign liquor (IMFL) company and the third largest IMFL company in India, in terms of annual sales volumes between FY14 and FY21.
  • It had a market share of 8.2% in the IMFL market by sales volumes in FY21. Its products are retailed at over 64,000 outlets in India.

Marico Ltd – Weak Consumption Trends Weigh on 1QFY23 Volume

By Nirmal Bang

  • Tepid demand leads to mid-single-digit volume decline in India business: MRCO’s domestic business (~77% of revenue) saw mid-single-digit volume decline in 1QFY23, largely dragged by a sharp drop in Saffola Oils, which had high in-home consumption in the base quarter and also witnessed significant downtrading from super premium to mass segment in Edible Oils.

  • Gross margins to stay flat sequentially: Trends seen in certain key raw materials for MRCO in 1QFY23: (i) Copra prices remained soft, (ii) Edible and crude oil prices cooled off to some extent towards the end of the quarter.

  • View & Valuation: Barring the recent quarters (affected by overall deceleration in market demand), MRCO’s core portfolio has delivered a strong performance and the company continues to make efforts towards meeting its medium-term growth aspirations.

Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Before it’s here, it’s on Smartkarma

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Jul 07
0

Industrials: Deewin Tianxia and more

By | Daily Briefs, Industrials

In today’s briefing:

  • Deewin Tianxia IPO – Largest Segment Has Slowed and Generates Bulk of Sales from Related Parties

Deewin Tianxia IPO – Largest Segment Has Slowed and Generates Bulk of Sales from Related Parties

By Clarence Chu

  • Deewin Tianxia (2418 HK) is looking to raise up to US$147m in its Hong Kong IPO.
  • Deewin Tianxia (DT) is a service provider in the commercial automobile service industry in China. 
  • The firm continues to generate the bulk of its revenue from its controlling shareholder and the latter’s associates. 

Before it’s here, it’s on Smartkarma

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