In today’s briefing:
- Elon Suddenly Admits Massive Tesla Losses (Because Other News Out Soon Is Even Worse)
- Kirin Sells The Myanmar JV to MEHL: Not a Fair Valuation But Getting At Least Some Money Is a Bonus
- India Food Delivery – Bracing for Disruption (ONDC)
- Shanghai/Shenzhen Southbound Connect: Weekly Moves (30 June 2022)
- J Front (3086) | Posts Strong Q1 Numbers as Thesis Plays Out
- Hang Seng, MSCI China Near Major Base Breakouts; Bottoms-Up Stock Rec’s in Hong Kong, China, & Japan
- Oasis Corp: Market Leader of Organic Foods Online Sales in Korea
- Mobile World Investment Corporation (MWG VN/BUY)
- Askul Corp – Q4 22 Results Reaction: Mixed as Growth Looks Appealing but Profits Light
- Ohsho Food Service (9936): Price Hike Effect Continues; Record Sales for June
Elon Suddenly Admits Massive Tesla Losses (Because Other News Out Soon Is Even Worse)
- Elon Musk suddenly admitted Tesla is burning billions at its Austin & Berlin plants.
- This happened to come just as he likely saw Q2 becoming “super bad,” as I had warned, since plunging China sales mean Tesla can’t mask big losses as usual.
- Tesla’s problems are bigger than second quarter woes—and they’re not going away anytime soon.
Kirin Sells The Myanmar JV to MEHL: Not a Fair Valuation But Getting At Least Some Money Is a Bonus
- Kirin Holdings (2503 JP) announced yesterday that it will transfer its stake in the Myanmar business (51% of share capital) to its JV partner MEHL, via a share buyback of ¥22.4bn.
- Having disposed most of the other underperforming assets during 2018-21, the Myanmar business was the main issue holding back Kirin’s share price performance.
- With the Myanmar issue resolved better than anticipated, it seems like the right time for Kirin to get a move on.
India Food Delivery – Bracing for Disruption (ONDC)
- The near term impact of ONDC on OFD platforms like Zomato & Swiggy is limited, longer term they will have to move from platform to a network centric model.
- An external shock will be required to drive faster ONDC adaption as we have seen in the case of UPI.
- Logistics companies especially the ones with express capabilities are likely beneficiaries in case ONDC scales up rapidly.
Shanghai/Shenzhen Southbound Connect: Weekly Moves (30 June 2022)
- Inside is a recap of movements in the last week relating to the Shanghai and Shenzhen-Hong Kong Stock Connect facilities, broken down by company and industry.
- Overall, net inflow over the past week was ~US$1.5bn, split US$0.4bn for Shanghai and US$1.2bn for Shenzhen.
- He largest inflows were into Geely Auto (175 HK), Li Auto (2015 HK), and HKEX (388 HK). The largest outflow was in China Mobile (941 HK) and CCB (939 HK).
J Front (3086) | Posts Strong Q1 Numbers as Thesis Plays Out
- J Front reported strong Q1 numbers with OP recovering to +¥7.5b from red ink a year ago
- The company is reaping the benefits of restructuring and better cost control
- A recovery in domestic consumption and the opening of borders will drive further appreciation in the share price
Hang Seng, MSCI China Near Major Base Breakouts; Bottoms-Up Stock Rec’s in Hong Kong, China, & Japan
- Broad global MSCI equity indexes (ACWI,ACWI ex-U.S.,EAFE, and EM) remain bearish with YTD downtrends intact. Until these indexes reverse downtrends, we are bearish and view bounces as bear market rallies.
- Major non-U.S. countries appear to be much further along in the bottoming process, a potential sign that U.S. indexes could take a back seat once global equities finally bottom.
- Indexes that have not made a new low since March: Nikkei 225, TOPIX, TOPIX Small, Hang Seng, Europe’s EURO STOXX 50, and China’s MSCI China (MCHI-US) and China Internet (KWEB-US).
Oasis Corp: Market Leader of Organic Foods Online Sales in Korea
- Oasis Corp is the market leader of organic foods online sales in Korea.
- Oasis Corp generated sales of 356.9 billion won (up 49.6% YoY) and an operating margin of 1.6% in 2021. From 2017 to 2021, Oasis Corp’s sales increased by 45.9% CAGR.
- Oasis Corp has been consistently profitable unlike its competitors such as Kurly, Coupang, and SSG.com.
Mobile World Investment Corporation (MWG VN/BUY)
Jun 21 Sep 21 Dec 21 Mar 22 Jun 22
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.
Askul Corp – Q4 22 Results Reaction: Mixed as Growth Looks Appealing but Profits Light
- Askul posted Q4 results that were largely in-line and issued FY23 targets that are robust for revenue growth (+6%) but accompanied by upfront investment
- Management also announced it would prepare subsidiary AlphaPurchase for a public listing although the timing has not been determined
- The miss on profitability guidance is not ideal but the acceleration of top-line growth is attractive
Ohsho Food Service (9936): Price Hike Effect Continues; Record Sales for June
- Ohsho Food Service (9936, the company) disclosed monthly data for its company-owned stores in June (on a preliminary basis)
- All-store sales of 6.609bn yen (109.0% vs. June 2021) were the record high for June.
- In June, the company opened one new store (one company-owned store) and closed one store (one franchised store)
Before it’s here, it’s on Smartkarma
