Category

Consumer

Consumer: LG Energy Solution, Barbeque Nation Hospitality, ITC Ltd, Westlife Development and more

By | Consumer, Daily Briefs

In today’s briefing:

  • FTSE All-World/​All-Cap Index Rebalance: Inclusions, Deletions & Other Changes
  • 4QFY22 Results Update – Barbeque Nation Hospitality
  • 4QFY22 Results Update – ITC
  • 4QFY22 Results Update – Westlife Development
  • Westlife Development – Strong Consecutive Beat Boosts Confidence

FTSE All-World/​All-Cap Index Rebalance: Inclusions, Deletions & Other Changes

By Brian Freitas

  • For Asia Pacific, there are 8 inclusions each to the All-World Index and the All-Cap Index at the June QIR. Quite a few have over 3 days ADV to buy.
  • There are also changes to the NOS and investability weights that will require passive funds to buy/sell a lot of stocks. Some have a reasonably large impact/flow.
  • A lot of the IPOs are trading below their offering prices and investors could be looking to sell into any rallies that take the stocks close to their IPO prices.

4QFY22 Results Update – Barbeque Nation Hospitality

By Motilal Oswal

  • Omicron-led disruptions hurt sales and impair profitability – BARBEQUE’s dine-in focused business (as opposed to QSRs) meant that higher-than-expected Omicron impact for the sector adversely affected the company more.
  • Sales miss leads to lower operating leverage – Sales grew 10.9% YoY to INR2.5b. (est. INR2.7b), with SSSG of 5.5% (est.13%).
  • Highlights from the management commentary – BARBEQUE took an effective 5% cumulative price hike in Apr-May’22 put together, which along with other cost saving efforts will be able to revive its gross margin to earlier levels.

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.


4QFY22 Results Update – ITC

By Motilal Oswal

EBITDA and PAT in line; cigarette volumes resilient – ITC’s 4QFY22 EBITDA and PAT growth came in line with our estimates.

Sales beat led by Agri business and Paperboards – ITC’s revenue grew 16.8% YoY to INR155.3b (est. INR138.4b) in 4QFY22.

Valuation and view – ITC’s re-rating would depend on sustained earnings growth going back to the high-teens levels witnessed in the first half of the last decade (at 18% CAGR) which had slowed down to 6.6% CAGR over the latter half of the decade.

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.


4QFY22 Results Update – Westlife Development

By Motilal Oswal

  • In line result, fair valuations limit the upside – All operating parameters for WLDL – SSSG, sales, gross margin, and EBITDA – were in line
  • Operating performance in line – Sales grew 27.3% YoY to INR4.5b (inline). SSSG stood at 23% YoY (inline).
  • Key takeaways from the management commentary – The management has raised prices in 1QFY23. Along with the mix and efficiency, it said it can manage margin.

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.


Westlife Development – Strong Consecutive Beat Boosts Confidence

By Emkay

  • Strong performance with best-ever Q4 revenue/PAT: WLDL reported ~27% growth in revenues, led by 23% SSG and new store additions (up 7% to 326 stores).
  • Consistent delivery should boost Street confidence: Pre-IndAS EBITDA margins improved 260bps to 11.8% (vs. ~9% in FY20), despite a RM spike, which affected gross margin by ~150bps.
  • Attractive valuations vs. peers; maintain Buy: We forecast healthy sales/EBITDA CAGRs of 13%/24% in FY20-25E.

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

Consumer: NIO Inc, Kakao Pay, TVS Motor , Hero Motocorp, JD.com Inc (ADR) and more

By | Consumer, Daily Briefs

In today’s briefing:

  • Hang Seng TECH Index Rebalance: NIO (9866 HK) To Replace ASM Pacific (522 HK)
  • KOSPI 200 IT Sector Index Rebalancing Flow: Watch Kakao Pay & LG Corp
  • TVS Motors- Forensic Analysis
  • Index Rebalance & ETF Flow Recap: MSCI, ASX, NIFTY, KRX, PCOMP, HSI, HSCEI, HSTECH, SK Tel, GoTo
  • Hero Motocorp (HMCL IN) | Structural Problems Persist
  • ECM Weekly (22nd May 22) – JD, LIC, Delhivery, Leapmotor, Vista, Paradeep, Woori, Hyundai Heavy, NIO

Hang Seng TECH Index Rebalance: NIO (9866 HK) To Replace ASM Pacific (522 HK)

By Brian Freitas


KOSPI 200 IT Sector Index Rebalancing Flow: Watch Kakao Pay & LG Corp

By Sanghyun Park

  • We should focus on the weight changes of the existing constituents. For this, two names really stand out: Kakao Pay (+0.44x ADTV) and LG Corp (+0.37x ADTV).
  • It is because Kakao Pay and LG Corp will undergo an increase in their float rate in the KOSPI 200 rebalancing, and these up-weights will also affect this sector index.
  • Their combined inflow size (KOSPI 200 & KOSPI 200 IT) will be 1.41x and 1.16x ADTVs. This will be the most substantial, except for Kakao Bank and the new additions.

TVS Motors- Forensic Analysis

By Nitin Mangal

  • TVS Motor (TVSL IN) primary setback is in the form of poor capital allocation
  • In TVS Motors: Analysis Of Various Investments , we had briefed on the investment policy of the company and how the non-core investments/subsidiaries are dragging the profits.
  • This insight is an extension of the previous one; we update on the various investments the company has undergone and how it impacts the capital allocation.

Index Rebalance & ETF Flow Recap: MSCI, ASX, NIFTY, KRX, PCOMP, HSI, HSCEI, HSTECH, SK Tel, GoTo

By Brian Freitas

  • Plenty of review announcements after the close on Friday – HSI, HSCEI, HSTECH, FTSE AW/AC, Sensex. Most changes were as expected.
  • There are a lot of review cutoffs on Monday and announcements expected later in the week (KOSPI200, KOSDAQ150, CSI300, STAR50).
  • There were inflows to Hong Kong, Taiwan, Korea and Australia focused ETFs during the week, while there were outflows from China, Japan and India focused ETFs.

Hero Motocorp (HMCL IN) | Structural Problems Persist

By Pranav Bhavsar

  • We anticipate the uptick in retail primarily aided by the wedding season to be short-lived for Hero Motocorp (HMCL IN)
  • HMCL has not been able to keep pace with changing consumer preferences, the limited success in premium segment and scooters is likely to remain an overhang even on new launches.  
  • Inventory correction at the dealer’s end could aid wholesales supporting valuations, but the company remains structurally unattractive. 

ECM Weekly (22nd May 22) – JD, LIC, Delhivery, Leapmotor, Vista, Paradeep, Woori, Hyundai Heavy, NIO

By Sumeet Singh

  • Aequitas Research puts out a weekly update on the deals that were covered by the team recently along with updates for upcoming IPOs.
  • With LIC not delivering and Delhivery needing insurance, combined with the Korean cancellations and HK silence, it looks like its going to be a quiet few weeks for IPOs.
  • On placements, both the Korean deals were a disappointment, despite being well-flagged.

Before it’s here, it’s on Smartkarma

Consumer: MyDeal.com.au Ltd, Ultrajaya Milk Industry & Trading, Shiseido Company, Eicher Motors, Asian Sea, Sappe Pcl, Minor International, V.I.P. Industries and more

By | Consumer, Daily Briefs

In today’s briefing:

  • Woolies Moves On MyDeal (MYD AU)
  • Ultrajaya Milk Industry & Trading (ULTJ IJ) – Dairy and Tea Driven Momentum Continues
  • Shiseido: Around 59% Upside Possible on Upgrades to Consensus
  • MyDeal.com.au Gets a A$1.05 Offer from Woolworths
  • Eicher Motors (EIM IN) | The “Twins” (New Models & Exports) Are Firing
  • ASIAN: Pet Food Unit Continue to Be Key Growth Driver
  • SAPPE: Targets to Hit Revenue at Bt10bn by 2026
  • MINT: Hotel Segment’s Recovery Will Boost 2022 Growth
  • VIP Industries.: Returning Normalcy, Rewired Business & Regaining Market Share

Woolies Moves On MyDeal (MYD AU)

By David Blennerhassett

  • Woolworths Ltd (WOW AU) proposes to acquire all shares in MyDeal.com.au Ltd (MYD AU) other than those held by Sean Senvirtne and other key management personnel.
  • MyDeal shareholders will receive $1.05/share in cash, a punchy 62.8% premium to last close, but just 5% above its 2020 IPO price.
  • This proposal is being done by way of a Scheme with expected completion in Q3/Q4 2022.

Ultrajaya Milk Industry & Trading (ULTJ IJ) – Dairy and Tea Driven Momentum Continues

By Angus Mackintosh

  • Ultrajaya Milk Industry & Trading saw continued growth momentum in 1Q2022 both for its core UHT milk business (No.1) and its carton tea business as mobility restrictions were lifted.
  • The company also sources more of its milk requirements locally, which means less exposure to imported milk power but prices there have started to come off. 
  • Management remains optimistic that the company can achieve double-digit growth this year plus it has increased ASPs by +3% in April. Valuations at a discount to staple peers. 

Shiseido: Around 59% Upside Possible on Upgrades to Consensus

By Oshadhi Kumarasiri

  • At 4% below the COVID sell-off low level, Shiseido Company (4911 JP) is looking genuinely attractive over the medium-long term.
  • In addition, there could be a shift in the short term market sentiment towards Japanese cosmetics with China’s COVID lockdowns expected to ease from the beginning of next month.
  • With the downside risk limited to less than 10%, we think it may be a good time to start owning Shiseido.

MyDeal.com.au Gets a A$1.05 Offer from Woolworths

By Arun George

  • MyDeal.com.au Ltd (MYD AU) entered a SID with Woolworths Ltd (WOW AU) to acquire an 80.2% interest. Shareholders will receive A$1.05 per share, a 62.8% premium to the unaffected price. 
  • The three largest shareholders, representing 76.0% of outstanding shares, will vote in favour of the deal. The scheme meeting is set for 3Q. 
  • This is a done deal. At the last close price, the gross and annualised spread for an October implementation date is 4.5% and 10.1% respectively.  

Eicher Motors (EIM IN) | The “Twins” (New Models & Exports) Are Firing

By Pranav Bhavsar

  • Eicher Motors (EIM IN) is well-positioned to offset margin pressures due to its aspirational brand, the success of its new models and exports. 
  • Easing supply issues along with newer export markets provide a compelling runway for revenue growth. 
  • While our estimates are in line with consensus,  we believe the YTD outperformance is likely to continue and any opportunities presented amidst market volatility must be exploited. 

ASIAN: Pet Food Unit Continue to Be Key Growth Driver

By Pi Research

  • Maintain BUY rating with TP of B23.00 derived from 16xPE’22E, which is close to +1SD of 5-years trading average. Our rating reflects strong pet food growth outlook, attractive 3.8% yield
  • We foresee earnings momentum to improve QoQ in 2Q22, supported by better pet food business unit from new capacity, and further strengthen by Baht downtrend.
  • In our view, the new pet food capacity should gather pace in 2H22, upon better demand in light of favorable macro dynamics. Moreover

SAPPE: Targets to Hit Revenue at Bt10bn by 2026

By Pi Research

  • Yesterday analyst meeting came out with a positive tone.We reiterate our BUY rating for SAPPE with a target price of Bt35.25 (+10% from previous TP)based on 24xPE’22E, close to +1SD
  • Management targeted revenue at Bt10bn by 2026 or +22%CAGR(2022-26). •In our view, SAPPE target is quite challenging amid concern over rising inflation situation. 
  • We expect 2Q22 earnings to continue to grow YoY and QoQ supported by (1) higher oversea market penetration, (2) distribution channel expansion,  (3) more effective marketing activities

MINT: Hotel Segment’s Recovery Will Boost 2022 Growth

By Pi Research

  • Analyst meeting came out with a positive tone regarding 2022 outlook.We maintain BUY rating with a target price of Bt38.0,based DCF method (WACC of 8% and terminal growth of 2%)
  • Positive 2022outlook as we expect the hotel industry to make a strong come back in 2022due to vaccine roll outs and easing of international travel restrictions,making the earnings positive for2022
  • Since 1Q is typically the lowest travel seasonality,we expect the revenue from hotels to grow for next 3 quarters (around 50% by 4Q22), contributing around 75% of the total revenue.

VIP Industries.: Returning Normalcy, Rewired Business & Regaining Market Share

By Axis Direct

  • VIP Industries (VIP) Q4 FY22 results reported a weak set of numbers given the seasonally weak quarter.
  • Revenue stood at Rs 356 Cr up 46% YoY on account of the low base & down 13% QoQ due to the 3rd wave of Covid-19 Omnicron variant
  • Revising our FY23/24 estimates adjusting for the new cost environment we revise our recommendation from Buy to HOLD with a revised TP of Rs 596/share (earlier: Rs 600/share) valuing the stock at 47x FY24E EPS.

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

Consumer: Central Plaza Hotel, PTT Oil and Retail, MatsukiyoCocokara, Magnum Bhd, Somboon Advance Technology P, Westlife Development, Genting Bhd, ITC Ltd and more

By | Consumer, Daily Briefs

In today’s briefing:

  • CENTEL: Hotel Business Recovery Drives 1Q22 EBITDA Growth
  • OR: Rising Sales and Healthy Margin in 2Q22
  • Japan Tourism | A Journey of a Thousand Miles Begins with a Single Step
  • ITC: Healthy OverallPerformance
  • Magnum Berhad (MAGM.KL) – Not A Great Start To The Year But Worst Likely Over
  • Somboon Advance Technology (SAT.BK) – Resilient Earnings Growth
  • Westlife Development – Strong SSSG Performance
  • Genting Bhd (GENT.KL) – Next Stop, Resorts World Las Vegas
  • ITC Ltd – Robust Operating Performance- Dividend Yield Improves Further

CENTEL: Hotel Business Recovery Drives 1Q22 EBITDA Growth

By Pi Research

  • We downgrade to HOLD rating from  BUY rating with TP unchanged at Bt43, derived from  DCF (WACC of 10% and TG of 2%), implying 28.6xPE’23. 
  • The company reported a net loss of Bt44m in 1Q22 compared to net loss of Bt476m in 1Q21 and net profit of Bt152m in 4Q21 in line with our expectation.
  • 1Q22 EBITDA doubled YoY but remained flat QoQ at Bt951m supported by strong YoY recovery of hotel performance benefitting from 1) Rebound of Thailand tourism 2) Continued strong operations.

OR: Rising Sales and Healthy Margin in 2Q22

By Pi Research

  • Yesterday analyst meeting came out in a positive tone. We maintain the HOLD rating with a target price of Bt27.0, derived from an SOTP methodology. Our TP implies 25xPE’22E
  • Expect the 2Q22 earnings to improve both YoY and QoQ, on the back of continued oil sales growth  and healthy marketing margin.
  • The 2H22 earnings should improve YoY from better sales growth, however oil marketing margin may prone to downside risk as the crude oil price continue to remain at high levels.

Japan Tourism | A Journey of a Thousand Miles Begins with a Single Step

By Mark Chadwick

  • Ancient proverbs dictate the pace of policy change in Japan. But, the first step has been taken 
  • Investors should be watching for further relaxation of inbound tourist restrictions, particularly on the Chinese market 
  • Out top pick on this thematic is MatsukiyoCocokara (3088 JP) . Tourists used to account for over 10% of sales, but there is more…

ITC: Healthy OverallPerformance

By Axis Direct

  • ITC reported a healthy set of numbers in Q4FY22with Revenue of Rs 15,331Cr (our estimate – Rs16,205Cr), down 2.2%QoQ but up ~16.5% YoY, led by a strong 8% volume growth in Cigarettes (in line with our estimates).
  • Gross Margins at 52.5% was 132bps lower YoY on account of unprecedented RM inflation
  • Benign taxation, inexpensive valuations (20x FY24E EPS), 5% dividend yield makes us BUYers of the stock. Our TP is revised to Rs 295 (earlier Rs 280).

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.


Magnum Berhad (MAGM.KL) – Not A Great Start To The Year But Worst Likely Over

By Maybank Research

  • Maintain BUY call and MYR2.43 DCF-based TP
  • Earnings and dividends below our expectations…
  • … but worst likely over, in our view
  • Maintaining earnings and dividends estimates

Somboon Advance Technology (SAT.BK) – Resilient Earnings Growth

By Maybank Research

  • Undemanding valuation and good dividend, BUY
  • 1Q22 earnings recovery
  • New orders to boost sales growth
  • Profit growth seen despite high costs

1Q22 earnings recovered QoQ to THB259m (+44% QoQ, -19% YoY). We expect new orders to help fuel 2022E sales growth of 6.5% YoY. While higher steel costs will initially squeeze gross profit margins, as it takes 3-6 months to hike prices, we expect only a dip in GPM. We forecast FY22 earnings to hit a new high of THB1.032b (+8% YoY). We think SAT’s valuations are undemanding at 7.6x 2022E P/E and 1x P/BV, with a healthy THB3.5b cash on hand. It offers a good dividend yield of 8.6%. Our THB25.50 TP is based on 10-yr average forward P/E of 10.3x. Maintain BUY.


Westlife Development – Strong SSSG Performance

By Nirmal Bang

  • 4QFY22 headline performance: WDL’s 4QFY22 topline grew by 27.3% YoY to Rs4.55bn (vs. our est. 22% growth to Rs4.36bn), led by SSSG growth of 23% YoY (vs. our est. 17%).
  • FY22 performance: Revenue and EBITDA grew by ~60% and ~161%, respectively. EBITDA margin stood at 12.6% (up 490bps over FY21).
  • Other key highlights: (1) WDL did not take any price hike in 4QFY22, but has taken a price hike of 3-5% in 1QFY23. (2) Metro and smaller town mix stands at ~70:30, and at most can change to ~60-40% in coming years.

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.


Genting Bhd (GENT.KL) – Next Stop, Resorts World Las Vegas

By Maybank Research

  • Maintain BUY with a tad lower TP of MYR5.43 (-1%)
  • 1Q22 unlikely to be better QoQ for RWLV, we opine
  • 2Q22 likely to be a lot better for RWLV, in our view
  • Vegas Loop likely to be a boon for RWLV, we gather

ITC Ltd – Robust Operating Performance- Dividend Yield Improves Further

By Nirmal Bang

  • 4QFY22 headline performance: ITC’s 4QFY22 standalone topline (adjusted for excise duty) was up 16.8% YoY at Rs155bn vs our est. of 21.9% YoY growth to Rs162bn.
  • 4QFY22 segmental performance: Cigarette revenue grew by 10% YoY to Rs64.4bn (vs our est. of Rs65.3bn), up ~12% on a two-year CAGR basis.
  • FY22 performance: Standalone Revenue, EBITDA and APAT grew by 23.9%, 22% and 15.5%, respectively.

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

Consumer: JD.com Inc (ADR), Yamaha Motor, Li Ning, FamilyMart Co Ltd, Taste Gourmet Group, Dongwon Industries, Eicher Motors, Las Vegas Sands, Erawan Group, Leapmotor and more

By | Consumer, Daily Briefs

In today’s briefing:

  • JD.com Tencent Distribution – All Prosus Stock Worth US$3.5bn Could Be in CCASS Now
  • Yamaha Motor – Struggling But Still Too Cheap
  • Li Ning (2331): Turning Positive.
  • Familymart to Double Space for Hit Clothing Range
  • Taste Gourmet: Update Post Management Call / Bullish
  • Dongwon Industries Listens to Minority Shareholders and Changes Merger Ratio with Dongwon Enterprise
  • India Channel Insight #34 | Eicher (Royal Enfield), TVS Motors, Hero MotoCorp
  • Las Vegas Sands: Totally Asia Facing, Is Held Hostage to Travel Bans Remains Attractive at US$33.98
  • ERW: Operational Losses Continued to Decline in 1Q22
  • Leapmotor Pre-IPO – The Negatives – Related Party Sanctions, Lags Peers

JD.com Tencent Distribution – All Prosus Stock Worth US$3.5bn Could Be in CCASS Now

By Sumeet Singh

  • On 23rd Dec 2021, Tencent declared a special dividend in the form of distribution in specie of shares of JD.com, making Prosus the third largest shareholder with a 4.2% stake.
  • The actual settlement only happened on 25th Mar. On that day, the bulk of the stock that Tencent distributed moved into CCASS with the exception of shares held by Prosus.
  • In this note, we talk about the shareholding pattern and increase in shares held in CCASS.

Yamaha Motor – Struggling But Still Too Cheap

By Mio Kato

  • Yamaha’s 1QFY22 was weak with revenue of ¥482bn (-1.5% vs. consensus), and OP of ¥40.1bn (-17.3% vs. consensus). 
  • The company’s FY22 guidance remained unchanged projecting ¥2,000bn in revenue (-2.0% vs. consensus) and OP guidance of ¥190bn (-4.5% vs. consensus). 
  • Beating guidance significantly will now be difficult without price hikes but valuations are too cheap to ignore.

Li Ning (2331): Turning Positive.

By Henry Soediarko

  • Q1 22 operating figures are better than the smaller peers although not exactly beating Anta. 
  • Launching the cafe to boost SSSG post-COVID-19 is a positive strategy. 
  • Its valuation is currently trading below its historical highs . Turn positive on Li Ning (2331 HK) .

Familymart to Double Space for Hit Clothing Range

By Michael Causton

  • Convenience stores in Japan aren’t known for their fashion prowess although most sell the odd sock and underwear.
  • FamilyMart Co Ltd (8028 JP) sees an opportunity to both expand sales categories and increase margins with higher value fashion basics supplied by its new parent Itochu Corp (8001 JP).
  • Itochu is a leading fashion supplier and has created a hit product range for Familymart as well as another in cosmetics.

Taste Gourmet: Update Post Management Call / Bullish

By Sameer Taneja

  • Taste Gourmet Group (8371 HK) held a webinar with Smartkarma on the 17th of May, highlighting the sharp and swift recovery of F&B in Hong Kong. 
  • Post 19th May, eight people can dine in till midnight (vs. four). With mid-May revenue tracking 109% of June 2020 (restrictions were fully relaxed), recovery should be better than expectations.
  • Despite the 13% move yesterday, the stock is still cheap at 5.9x PE FY23 earnings and an 8-10% dividend yield (with a potential for further upgrades). 

Dongwon Industries Listens to Minority Shareholders and Changes Merger Ratio with Dongwon Enterprise

By Douglas Kim

  • In a surprising move, Dongwon Industries announced that it will listen to the demands of the minority shareholders and change the merger ratio with Dongwon Enterprise.
  • This is likely to have a positive impact on Dongwon Industries since it boosts the value of Dongwon Industries’ minority shareholders at the expense of controlling shareholders of Dongwon Enterprise.
  • The merger price of Dongwon Industries will be raised from 248,961 won to 384,140 won (reflecting net asset value). The merger ratio will be adjusted from 1:3.8385530 to 1:2.7023475.

India Channel Insight #34 | Eicher (Royal Enfield), TVS Motors, Hero MotoCorp

By Pranav Bhavsar

  • We speak to channels across West, North and South to understand the 2W demand environment 
  • Mid segment is still not seeing recovery, premium and lower end segment is stabilising / doing relatively better. 
  • Restoration of supplies and aggressive marketing strategies can aid volume recovery for TVS Motor (TVSL IN) and Eicher Motors (EIM IN) 

Las Vegas Sands: Totally Asia Facing, Is Held Hostage to Travel Bans Remains Attractive at US$33.98

By Howard J Klein

  • DCF valuation now at $44.51 indicating stock could be 24% undervalued here.
  • Sentiment on Las Vegas asset sale has turned negative as to timing as some investors believe it was hasty given the recovery of the Vegas market.
  • Strong balance sheet provides long term solvency with current ratio of 2.1 as rumors of China lockdown easing persist since last week.

ERW: Operational Losses Continued to Decline in 1Q22

By Pi Research

  • Analyst meeting came out with positive tone regarding 22E outlook.We maintain BUY rating with TP Bt4.20 derived from DCF valuation (WACC=7% & Terminal growth= 2%) implying 10% discount to 23.1xPE’23.
  • The company reported net loss of Bt313m in 1Q22 compared to net loss of Bt492m in 1Q21 and net loss of Bt246 in 4Q21 in line with our expectation.
  • Excluding extra ordinary items, the operational losses declined YoY and QoQ to Bt313m since revenue almost doubled YoY  and increased 4% QoQ to Bt646m after bottoming out in 3Q21.

Leapmotor Pre-IPO – The Negatives – Related Party Sanctions, Lags Peers

By Sumeet Singh

  • Leapmotor (LM) aims to raise around US$1bn in its Hong Kong IPO. LM is a smart EV company based in China, founded in 2015.
  • It focuses on the mid- to high-end segment in China’s NEV market with a price range of RMB150,000-300,000. As of end FY21, it had delivered a total of 52,832 cars.
  • In this note, we talk about the not so positive aspects of the deal.

Before it’s here, it’s on Smartkarma

Consumer: Ryohin Keikaku, Tabcorp Ltd, Haier Smart Home Co Ltd, JD.com Inc., Asahi Group Holdings, Central Retail Corp Ltd, Invesco QQQ Trust Series 1, Discovery, Inc., Ohsho Food Service, Aeon Co Ltd and more

By | Consumer, Daily Briefs

In today’s briefing:

  • MSCI Japan Index Rebalance: Covering to Come After Large Short Buildup
  • Tabcorp & The Lottery Co Spin-Off – Valuation Grids and Index Treatment
  • Haier Smart Home (6690 HK): Smart Moves
  • JD.com (9618 HK): 1Q22 Result, Undervalued Despite of Weak Revenue
  • Asahi: More Downside Left After Maintaining The Optimistic 2022 Guidance
  • CRC: Growth Momentum Intact Despite Uncertainties
  • Panic Buying Achieved, Waiting for More Confirmation of a Bottom;Buying Staples & Auto Dealers/Parts
  • MergerTalk: Why Warner Bros. Discovery Is A Mis-Valuation Opportunity Rather Than A Value Trap
  • Ohsho Food Service (9936): OP Exceeds Our Forecast for Both FY3/22 Results and FY3/23 Guidance
  • Aeon Shows up Seven & I in E-Commerce Growth and Strategy

MSCI Japan Index Rebalance: Covering to Come After Large Short Buildup

By Brian Freitas

  • There are 22 deletions for the MSCI Japan Index at the May SAIR. The changes were expected and there is large short buildup on quite a few of the stocks.
  • Over the last month, the largest increase in shorts as a percentage of passive selling was on Mercari Inc, Ryohin Keikaku, Tokyo Century Corp, Sohgo Security Services, Pola Orbis Holdings.
  • The deletions have underperformed the TOPIX by 22% over the last 6 months and by 10% over the last two months. Position for a bounce post implementation.

Tabcorp & The Lottery Co Spin-Off – Valuation Grids and Index Treatment

By Travis Lundy

  • Tabcorp Ltd (TAH AU) will soon spin out its Lottery and Keno business, to be called The Lottery Corp (TLC AU). TAH shares go ex-TLC on 24 May.  
  • The question is where do they trade. What is in the price? What is not? What are the potential index implications?
  • This insight provides a grid of index implications and pro-forma valuations (EV/EBITDA, PER, Dividend Yield) for each and both and the combined entity.

Haier Smart Home (6690 HK): Smart Moves

By Osbert Tang, CFA

  • Besides as nationalistic consumption play, Haier Smart Home (6690 HK) also offers attractive investment theses with bright growth prospects. Despite share price rebound, valuations are still not yet reflecting fundamentals.
  • The surge in demand for refrigerators and freezers during the pandemic-led lockdowns has boosted HSH’s business in 4M22 while it will also reap benefits from Rmb depreciation.
  • The government’s support of healthy development of residential real estate market will be positive towards smart home appliance demand which HSH is set to gain from its leadership position. 

JD.com (9618 HK): 1Q22 Result, Undervalued Despite of Weak Revenue

By Ming Lu

  • JD will continue to close its unprofitable minor businesses in following quarters.
  • The growth rate of total revenue slowed down in 1Q21 due to weak demand of home appliance.
  • We believe JD has a significant upside despite that the revenue growth will continue to slow down.

Asahi: More Downside Left After Maintaining The Optimistic 2022 Guidance

By Oshadhi Kumarasiri

  • Asahi Group Holdings (2502 JP)’s 1Q22 OP of ¥9.0bn from ¥496.9bn revenue was significantly below the consensus OP of ¥34.0bn from ¥489.4bn revenue.
  • Yet the company maintained its aggressive 2022 guidance, which expects domestic beer volume growth while prices are scheduled to increase by 6-10%.
  • We don’t find this estimate credible, especially given that Asahi generates most of the domestic revenue from the price-sensitive high malt beer segment.

CRC: Growth Momentum Intact Despite Uncertainties

By Pi Research

  • Last week analyst meeting came out with neutral tone.We reiterate our BUY rating for CRC with a target price of Bt43.0,based on DCF (WACC of 8.2% and TG of 2%)
  • Management maintained its key 2022 financial guidance. CRC targeted 2022 sales growth of 15%-20%YoY, mainly from fashion business and targeted GPM retail sales to expend by 100-120bps YoY.
  • •CRC showed three measures to mitigate the effect from uncertainties under global issue such as(1)cost optimization by controlling OPEX growth to not be higher than 50% of total sales growth

Panic Buying Achieved, Waiting for More Confirmation of a Bottom;Buying Staples & Auto Dealers/Parts

By Joe Jasper

  • Following panic selling that we have outlined over the past month, we finally saw panic buying last Friday in the form of 92% upside volume on the NYSE.
  • There is hope that this panic buying could signal a major bottom, but we still need to see more confirmation before declaring that the low is in.
  • We are watching the Nasdaq 100 (QQQ) and the steep RS uptrends on Utilities (XLU) and Staples (XLP) for more confirmation that a major low is in place. Details below.

MergerTalk: Why Warner Bros. Discovery Is A Mis-Valuation Opportunity Rather Than A Value Trap

By Robert Sassoon

  • The Netflix Inc (NFLX US) fall out has created a significant buying opportunity in Warner Bros. Discovery (WBD US)
  • Warren Buffet’s purchases of WBD peer Paramount Global (PARA US) only serves to validate the buying opportunity in the much cheaper WBD
  • Attributing a PARA-like value multiple to WBD’s Consensus 2023 EBITDA which is a little lower than management’s reaffirmed guidance, indicates a value up lift of 80% plus

Ohsho Food Service (9936): OP Exceeds Our Forecast for Both FY3/22 Results and FY3/23 Guidance

By Mita Securities

  • On May 16, Ohsho Food Service (9936, the company) announced FY3/22 full-year sales of 84.775bn yen (+5.1% YoY), OP of 6.959bn yen (+14.6% YoY), and RP of 13.024bn yen (+89.7% YoY)
  • 4Q (Jan-Mar) OP was 1.938bn yen (+33.7% YoY; +6.0% QoQ), and OPM was 8.8% (7.2% in 4Q FY3/21; 8.2% in 3Q)
  • The company’s guidance for FY3/23 is sales of 90.029bn yen (+6.2% YoY), OP of 7.516bn yen (+8.0% YoY), OPM 8.3% (+0.1ppt YoY) and RP of 8.627bn yen (-33.8% YoY)

Aeon Shows up Seven & I in E-Commerce Growth and Strategy

By Michael Causton

  • Aeon has finally published numbers on its e-commerce growth and performance.
  • It has a ¥1 trillion target for FY2025 and while this is still a far off target, Aeon is making progress. 
  • Digital sales have doubled in the past two years and Aeon is now well ahead of Seven & I which continues to fail to present a coherent e-commerce plan.

Before it’s here, it’s on Smartkarma

Consumer: Mazda Motor, Cisarua Mountain Dairy, Honda Motor, Yamaha Motor, Leapmotor, Inter Parfums, Tuesday Morning, Fast Fitness Japan Inc, Monogatari Corp, Relaxo Footwears and more

By | Consumer, Daily Briefs

In today’s briefing:

  • Mazda – Guidance Is Actually MORE Conservative Than Peers
  • Cisarua Mountain Dairy (CMRY IJ) – Yoghurts, UHT Milk, and Proteins in One Basket
  • Honda – Unnecessarily Conservative But…
  • Yamaha Motors (7272 JP) | Back on Track
  • Leapmotor Pre-IPO – The Positives – Planned Launches Should Prop up Growth
  • IPAR: Outpacing Expectations
  • TUEM: Macro Driven Morning
  • Fast Fitness Japan (7092): FY3/23 OP Guidance in Line with Our Forecast; Limited Impact of Inflation
  • Monogatari Corporation (3097): Consumers Cannot Resist Japanese BBQ
  • Result Update – Relaxo Footwear

Mazda – Guidance Is Actually MORE Conservative Than Peers

By Mio Kato

  • Despite supply chain and material cost headwinds Mazda beat consensus FY OP estimates by 15% despite being in-line on revenue. 
  • Guidance was also 17% above consensus but we think both should be ignored because guidance is being sandbagged and consensus remains clueless. 
  • We expect sales volumes to beat Mazda’s guidance slightly and for OP generation to be ¥240-300bn rather than ¥120bn.

Cisarua Mountain Dairy (CMRY IJ) – Yoghurts, UHT Milk, and Proteins in One Basket

By Angus Mackintosh

  • Leading dairy and premium foods player Cisarua Mountain Dairy continued to demonstrate its resilience during 1Q2022 despite some omicron disruption, and rising pressure from raw materials.
  • Growth will be driven this year through capacity expansion and a focus on expanding distribution channels, especially through general trade and Miss Cimory MCM. 
  • Management remains confident in the growth outlook and will potentially raise prices in 3Q2022 to offset inflationary pressures although powdered milk prices have already stabilized. Top consumer staples pick.

Honda – Unnecessarily Conservative But…

By Mio Kato

  • Honda 4QFY22 was mixed with revenue of ¥3,876bn (-0.7% vs. consensus) and OP of ¥200bn (+33.1% vs. consensus). 
  • The company’s FY23 guidance was weak projecting just ¥16,250bn (-2.2% vs. consensus) in revenue and OP of ¥810bn (-15.1% vs. consensus). 
  • Those numbers are laden with Honda conservatism, but we nevertheless foresee smaller potential beats by Honda than for peers.

Yamaha Motors (7272 JP) | Back on Track

By Mark Chadwick

  • Yamaha Motors’ stock crashed 9% after a poor quarterly report
  • However, there were a number of temporary issues impacting costs in the quarter. Management reiterated its guidance for the full year
  • Given that demand for its marine engines and motorbikes remains on track, we think the stock is too cheap, trading below book value 

Leapmotor Pre-IPO – The Positives – Planned Launches Should Prop up Growth

By Sumeet Singh

  • Leapmotor (LM) aims to raise around US$1bn in its Hong Kong IPO. LM is a smart EV company based in China, founded in 2015.
  • It focuses on the mid- to high-end segment in China’s NEV market with a price range of RMB150,000-300,000. As of end FY21, it had delivered a total of 52,832 cars.
  • In this note, we talk about the positive aspects of the deal.

IPAR: Outpacing Expectations

By Hamed Khorsand

  • IPAR reported strong demand for its fragrances in the first period even though the US Dollar strengthened against the Euro
  • The first quarter performance was at the onset of the weakening of the Euro, but IPAR’s management asserted there has been no sign of demand abating
  • IPAR’s stock has continued to underperform our expectations even though consensus estimates call for sales and earnings growth

TUEM: Macro Driven Morning

By Hamed Khorsand

  • TUEM reported fiscal third quarter (March) results depicting how its business model looks when sales slowdown.
  • The softness in sales was combined with TUEM getting full order placement from vendors when completion rates were running less than 70 percent in prior quarters
  • TUEM announced a credit facility of $110 million, providing ample liquidity and flexibility heading into the holiday shopping season. It also removes one of the biggest overhangs on the stock

Fast Fitness Japan (7092): FY3/23 OP Guidance in Line with Our Forecast; Limited Impact of Inflation

By Mita Securities

  • On May 13, Fast Fitness Japan (7092, the company) announced FY3/22 results. Sales were 13.097bn yen (+17.3% YoY), and OP was 2.946bn yen (+28.4% YoY)
  • The company’s FY3/23 guidance is for sales of 14.0bn yen (+6.9% YoY) and OP of 3.0bn yen (+1.8% YoY)
  • The company announced its mid-term plan targets for FY3/25. The company aims for 18 bn yen in sales, 4bn yen in OP, and 1,400 stores

Monogatari Corporation (3097): Consumers Cannot Resist Japanese BBQ

By Mita Securities

  • Same-store sales for company-owned stores were 123.9% vs. April 2021 (108.1% for March), 743.9% vs. April 2020 (93.9% for March), and 102.7% vs. April 2019 (91.3% for March)
  • Sales have been strong, as operating restrictions were lifted in late March. In particular, the Yakiniku division (Japanese BBQ) performed much better than in the pre-pandemic period
  • The number of domestic company-owned stores at end of April was 365 (+5 MoM, +25 vs. end FY6/21).

Result Update – Relaxo Footwear

By Axis Direct

  • Mgmt has undertaken 25% price hike across categories, to counterRM inflation and GST hike& remains cautious on further price hikes depending on demand scenario.
  • The Margins are impacted due to high base, Covid, GST rate differential & inflation (leading to substantial increase in raw material prices and normalisation of selling, marketing and admin expenses).
  • Good growth is observed in athleisure and sports category in line with industry.
    •  

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

Consumer: Shakey’s Pizza, Alibaba Group, Apollo Tyres, Balkrishna Industries, Eicher Motors, Emami Ltd, Tata Motors Ltd, Amber Enterprises India and more

By | Consumer, Daily Briefs

In today’s briefing:

  • Shakeys Pizza: Encouraging Q1 2022, Despite Headwinds
  • Alibaba (9988 HK) Pre-Earnings: Still Active Under Lockdown, Buy
  • Apollo Tyres – Entering High Growth, Low Capex Phase; Resume with BUY
  • Balkrishna Industries – Margin Pressure to Sustain; Valuation Remains Attractive
  • Eicher Motors – New Launches and Exports to Drive Volume Growth; BUY
  • Emami Ltd – Subdued Operating Performance; Undemanding Valuation
  • Tata Motors – Margin Beat on Better Mix; Commodity and Chip Shortage Risks Persist
  • Amber Enterprises India Ltd – Robust Topline Growth; Margins to Improve Going Forward

Shakeys Pizza: Encouraging Q1 2022, Despite Headwinds

By Sameer Taneja

  • Although we were more optimistic about FY22, we still see recovery backed by a very healthy momentum in Q1 2022 with 33% YoY systemwide sales (mid-teens ex-Potato Corner).
  • EBITDA margins were weaker in Q1 2022 at 18.2% (with Jan/Feb 2022 restrictions), but management guided a sequential improvement QoQ and a 20-21% EBITDA margin for FY22. 
  • The stock trades at 16.6x FY12 and 11.1x FY23 on more conservatively guided numbers. (see: Shakey’s Pizza: High Conviction Three Bagger, Management Call Provides Superb Guidance For FY22 )

Alibaba (9988 HK) Pre-Earnings: Still Active Under Lockdown, Buy

By Ming Lu

  • We estimate that the revenue growth will rise to 11.5% YoY in 4Q22 from 9.7% YoY in 3Q22.
  • Freshippo is the store chain closest to the operation before the lockdown among all large retailers.
  • We believe the stock has an upside of 27% for March 2023.

Apollo Tyres – Entering High Growth, Low Capex Phase; Resume with BUY

By Nirmal Bang

  • Revenue beat on the back of strong growth in Europe; Europe operations lead margin beat
  • Demand outlook remains positive; expect commodity cost pressures to peak by 1QFY23: Domestic volume was flattish QoQ in 4QFY22, led by robust exports even as replacement demand remained muted.
  • Focus on sweating assets and deleveraging balance sheet: Capex done in the last 3 years will likely support growth in the medium term (no major capex lined up for FY23/FY24) while the focus on de-bottlenecking and better asset utilization is likely to drive better returns in the medium term.

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.


Balkrishna Industries – Margin Pressure to Sustain; Valuation Remains Attractive

By Nirmal Bang

  • Demand holds reasonably well: Demand continued to hold strong across segments and regions.
  • Cost pressures to persist in the near term; reiterates sustainable margin guidance
  • Rs22.5bn capex to cater to medium term demand: BKT has decided to keep on hold investment of Rs3.5bn to continue operating the old Walunj plant and operations in the plant will continue, taking its total capacity to 360k MT by the end of FY23. Project capex for FY23 will likely be at ~Rs9bn each.

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.


Eicher Motors – New Launches and Exports to Drive Volume Growth; BUY

By Nirmal Bang

  • Revenue and margins in line – displaying good improvement: Standalone revenue came in at Rs31.9bn, up ~9% YoY, which was in line with our estimate, led by ASP growth and an optimum product mix.
  • Valuation turns favorable: We value RE (standalone) at 24x FY24E EPS and VECV at 12x EV/EBITDA on FY24E to arrive at a TP of Rs2,939.
  • We expect demand to remain strong and drive volume growth going ahead in both domestic as well as export markets, leading to 21% volume growth.

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.


Emami Ltd – Subdued Operating Performance; Undemanding Valuation

By Nirmal Bang

  • 4QFY22 headline performance: Emami’s 4QFY22 consolidated revenue grew by 5.4% YoY to Rs7.7bn (vs our est. Rs7.7bn).
  • FY22 performance: Revenue, EBITDA, PBT and APAT (before Amortization) grew by 10.8%, 7.7%, 12.2% and 49.2% YoY, respectively.
  • Other highlights: (1) LUP’s contribute 23-24% to the overall portfolio. (2) The company added additional 8,000 rural towns in FY22 through Project Khoj, taking the total to 40,000 towns.

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.


Tata Motors – Margin Beat on Better Mix; Commodity and Chip Shortage Risks Persist

By Nirmal Bang

  • Tata Motors reported cons. revenue of Rs784.4bn, down 11.4% YoY but up 8.6% QoQ.
  • JLR revenue declined by 27% YoY due to volume decline of 38%/11% YoY/QoQ while retails came in flat QoQ.
  • PV revenue was up 62% YoY, led by strong volume growth of ~47%/25% YoY/QoQ.

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.


Amber Enterprises India Ltd – Robust Topline Growth; Margins to Improve Going Forward

By Nirmal Bang

  • RAC, Components & Mobility Applications segments Update: (1) Industry RAC volume for FY20/FY21/FY22 stood at 7.2mn/5.2mn/6.4mn units.
  • Key Concall Highlights: (1) Company had taken a price hike of 8-9% for three quarters. It is likely to pass on another 2-3% price hike in 1QFY23
  • Working Capital Position: Working capital days declined by 17 days to 39 days at the end of FY22 vs 56 days at the end of FY21.

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

Consumer: Wacoal Holdings, Figs Inc, Adidas AG, Life Insurance Corp of India (LIC) and more

By | Consumer, Daily Briefs

In today’s briefing:

  • HUGE Wacoal (3591) Buyback – Buyback Structure Unknown But Interesting Possibilities Exist
  • 1 Main Capital Partners Q1 2022 Fund Letter
  • Polen International Growth Q1 2022 Portfolio Manager Commentary
  • ECM Weekly (15th May 22) – LIC, ThaiBev, Delhivery, One Store, Yunkang, VistaREIT, Ngern Tid Lor

HUGE Wacoal (3591) Buyback – Buyback Structure Unknown But Interesting Possibilities Exist

By Travis Lundy


1 Main Capital Partners Q1 2022 Fund Letter

By Fund Newsletters

  • For the first quarter, 1 Main Capital Partners, L.P.
  • (the “Fund’s) returned (11.4)% net of fees and expenses, according to the “Fund’s” quarterly results.
  • The first quarter of the first year, the fund returned 11.

Polen International Growth Q1 2022 Portfolio Manager Commentary

By Fund Newsletters

  • Polen International Growth Composite Portfolio returned -13.94% gross and -14.17% net of fees, respectively, versus the -5.45% return of the MSCI All Country World ex-USA Index.
  • The most significant detractors from performance included ICON, Evolution AB, and Sage Group.

ECM Weekly (15th May 22) – LIC, ThaiBev, Delhivery, One Store, Yunkang, VistaREIT, Ngern Tid Lor

By Sumeet Singh

  • Aequitas Research puts out a weekly update on the deals that were covered by the team recently along with updates for upcoming IPOs.
  • On the IPOs front, LIC’s lists tomorrow, while Delhivery’s bookbuild wasn’t great.
  • There were no major placements this week, with even Air New Zealand failing to hold its deal price.

Before it’s here, it’s on Smartkarma

Consumer: Swedish Match AB, Yum China Holdings, Inc, Macy’s Inc, Ichitan Group, Blackline Inc, S Hotels & Resorts PCL, Autohome Inc (Adr), Carvana Co, Bumble and more

By | Consumer, Daily Briefs

In today’s briefing:

  • Swedish Match Set Alight by Philip Morris
  • Yum China (YUMC.US): COVID-19 Headwind Will Have More Impacts in Q2
  • Macy’s: Amid Global Uncertainties, a Special Situation in an Out of Favor Sector
  • ICHI: Disappointing 1Q22 Result Already in the Price
  • Polen Global SMID Company Growth Q1 2022 Portfolio Manager Commentary
  • SHR: 1Q22 Results Indicate Rapid Recovery in 2022
  • Polen Global Emerging Markets Growth Q1 2022 Portfolio Manager Commentary
  • CAS Investment Partners Q1 2022 Letter To Investors
  • Polen U.S. Small Company Growth Q1 2022 Portfolio Manager Commentary

Swedish Match Set Alight by Philip Morris

By Jesus Rodriguez Aguilar

  • PMI is making a recommended cash offer for the Swedish Match at SEK106/share, valuing it at SEK161.2 billion ($16 billion), 39% premium, 17.5x EV/Fwd EBITDA and 23.1x Fwd P/E.
  • Swedish Match is strategic for PMI and a valuable asset amidst big tobacco diversification drive. Some shareholders make this point to try to extract a higher price.
  • As of close of 12 May, gross spread is 3.3%, an interesting 8.7% annualised (assuming settlement by 7 October). The risk of not completing the offer seems low.

Yum China (YUMC.US): COVID-19 Headwind Will Have More Impacts in Q2

By Roger Xie

  • Yum China Holdings, Inc (YUMC US) delivered a better-than-fear 1Q22 results helped by its strong execution. KFC delivered solid margins above expectations given its store format and take-out service.
  • China COVID outbreak is getting worst, we expect 3000 stores will cancel dine-in service in April (compared with 1700 stores in March). Yum China might have deeper loss in 2Q22. 
  • We continue to think Yum China is the best-run restaurant chain in China. It has resilient business model to navigate through pandemic. Risk/reward is more compelling to own Yum China.

Macy’s: Amid Global Uncertainties, a Special Situation in an Out of Favor Sector

By Howard J Klein

  • Amid ghost malls of closed stores across the US, this reimagined middle class retail legacy operator has transformed itself and become a special situation buy at its price.
  • With 794 stores  in all major cities, Macy’s can move smartly up as global pandemic pressures begin to ease and bearish macro events like the Ukraine war find resolution.
  • Current market cap does not reflect impressive transformation of its business model management has put in place that shows in FY 2021 and promises better in 2022.

ICHI: Disappointing 1Q22 Result Already in the Price

By Pi Research

  • ICHI reported 1Q22 net profit at Bt104m (-15%YoY, -22%QoQ). The 1Q22 result came out lower than our expectation.
  • Excluding one-time tax items of Bt24m,1Q22 norm profit was at Bt128m(+5.4%YoY). The YoY and QoQ drop in earnings mainly from a contraction in gross profit margin to 14.7% in 1Q22 
  • We expect 2Q22 earnings to recover QoQ from high season quarter. Revised down 2022 earnings by 18% to 20% in 2022-23E to factor in rising cost.

Polen Global SMID Company Growth Q1 2022 Portfolio Manager Commentary

By Fund Newsletters

  • Polen Capital is a high-conviction growth investment manager.
  • Over the first quarter of 2022, Polen Global SMID Company Growth Composite Portfolio returned -22.37% gross and – 22.48% net of fees, respectively, versus the -6.41% return of the MSCI ACWI SMID Capitalization Index.

SHR: 1Q22 Results Indicate Rapid Recovery in 2022

By Pi Research

  • We maintain BUY rating with TP Bt4.50 derived from 1x PBV’22E, to reflect better outlook post-COVID crisis.
  • The company reported 1Q22 net loss of Bt204m compared to net loss of Bt311m in 1Q21 and net loss of Bt70m in 4Q21, in-line with our expectation.
  • 1Q22 EBITDA remained positive for 3-consecutive quarter at Bt256m compared to a negative EBITDA of Bt59m in 1Q21 due to strong recovery of overall hotel operation. However, EBITDA dropped 15%QoQ 

Polen Global Emerging Markets Growth Q1 2022 Portfolio Manager Commentary

By Fund Newsletters

  • Polen Capital is a high-conviction growth investment manager.
  • Over the first quarter of 2022, the Polen Global Emerging Markets Growth Composite Portfolio returned -14.68% gross and – 14.96% net of fees.
  • The top relative and absolute detractors over the quarter included Yandex N.V.

CAS Investment Partners Q1 2022 Letter To Investors

By Fund Newsletters

  • During the three months ended March 31, 2022, Sosin Partners, LP reported a loss on a mark to market basis net of all fees, expenses, and performance allocations of 26.7%.
  • Since the end of March, we have continued to experience meaningful mark toMarket losses..

Polen U.S. Small Company Growth Q1 2022 Portfolio Manager Commentary

By Fund Newsletters

  • Polen Capital is a high-conviction growth investment manager.
  • Over the first quarter, Polen U.S.
  • Small Company Growth Composite Portfolio returned -21.98% gross and -22.18% net of fees, respectively, underperforming the -12.63% return of the Russell 2000 Growth Index.

Before it’s here, it’s on Smartkarma