In today’s briefing:
- Anycolor (5032 JP) Shareholder Structure Now And Future
- Olam Group (OLG SP): Entering the Final Stages to Unlock Value
- Fewer but Better Suits from Aoyama and Its Competitors
- Health & Happiness (1112 HK): Up 100% Since Nov. 2022. Still Awaiting a Re-Rating Upside
- If ESG Is Related to Improved Corporate Value, Doesn’t Slow ROE Imply Stalled in Real ESG Efforts?
- Oasis Corporation IPO – Peer Comparison – Smallest in Scale but Largest in Profitability
Anycolor (5032 JP) Shareholder Structure Now And Future
- Anycolor (5032 JP) is conducting a Secondary Offering so that three major pre-IPO shareholders can sell their shares. Legend Capital, Skyland Ventures, and Highsino Group are selling.
- That should bring minimum publicly-traded longs to 6.3685mm shares, but it could easily be higher.
- Based on the most conservative read of all the data, Real World Float is a net 21.2% after this offering. In reality, probably higher. But there’s still overhang.
Olam Group (OLG SP): Entering the Final Stages to Unlock Value
- On 10 January, Olam Group (OLG SP) announced the potential IPO of Olam Agri through a dual primary listing in SGX ST and Saudi Arabia as early as 1H2023.
- The Olam Agri IPO could raise US$1 billion, according to press reports. Olam will seek shareholder approval at an EGM for the transaction.
- The IPO marks the final stages of the strategy to unlock value. Our SoTP valuation is S$1.85 per share, a 19% upside to the last close price of S$1.56.
Fewer but Better Suits from Aoyama and Its Competitors
- Fewer people wear suits as a regular office uniform and there are also fewer working age Japanese.
- Combined with the fact that more people work from home some days a week, this has meant a drastic decline in suit sales
- In response, the big retailers are exploiting the growing popularity of custom and premium suits but the shift won’t offset the decline.
Health & Happiness (1112 HK): Up 100% Since Nov. 2022. Still Awaiting a Re-Rating Upside
- Despite the steep stock rebound following a strong recovery in sales, stock attracts modest valuations in line with Infant milk players. Re-rating potential exists from valuing high-growth segments differently.
- Strong growth in Adult Nutrition and Pet products fueled overall sales. Baby Nutrition sales growth is muted and accounts for less than half of total sales (vs 2/3rd in 2020).
- Stock rebound triggered by a recovery in Sep. quarter sales thanks to its diverse product portfolio, and prospects of a revival in cross-border trade following China opening its borders.
If ESG Is Related to Improved Corporate Value, Doesn’t Slow ROE Imply Stalled in Real ESG Efforts?
- Japanese companies need to resolve these issues in future, as evidenced by the fact that they have only just begun to resolve issues related to human rights and human capital.
- There is risk that less accurate disclosure of ESG initiatives may emerge in future. Attention will be focused on annual securities reports that have mandate to include sustainability-related information.
- The slow growth in ROE raises concerns that ESG efforts are not progressing as expected or are being formally mended, but have not improved enough to positively impact corporate value.
Oasis Corporation IPO – Peer Comparison – Smallest in Scale but Largest in Profitability
- OASIS Corp (370190 KS) is looking to raise up to US$166m in its upcoming Korea IPO.
- Oasis Corporation is an early morning delivery service business that delivers fresh food to consumers. It runs an e-commerce platform named ‘Oasis Market’ as well as offline stores.
- In our previous notes, we looked at the company’s past performance. In this note, we talk about peer comparison.
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