In today’s briefing:
- KRX’s Responses to TMI-Related Confusions on KRX Semicon & Autos Rebalancing
- Chung Yong-Jin Will Receive 10% of E Mart Shares from His Mum to Become the Controlling Shareholder
- A Strategic Pivot: Adani Enterprises Exits Adani Wilmar for $2B
- Destination XL Group Faces Potential Buyout: Fund 1 Investments Considers Raising Initial $3/Share Offer
- Growth Policy Score Improved with the Request to Raise P/B, but Other Criteria Are in the Process
- Onward Holdings (8016 JP): Q3 FY02/24 flash update
- PepsiCo Inc.: Portfolio Diversification & Innovation As A Vital Tool For Growth! – Major Drivers
- LXJ International Holdings Pre-IPO Tearsheet
- ‘Colorful’ 2024 For Cambodia In Rubber, Tire Sectors
- Champion Homes: Can Its Mergers & Acquisitions Strategy Serve As A Growth Factor? – Major Drivers
KRX’s Responses to TMI-Related Confusions on KRX Semicon & Autos Rebalancing
- KRX confirmed no immediate changes on KRX Semicon and KRX Autos. The universe will switch from BMI to TMI large and mid-caps, with constituent updates happening in the September rebalancing.
- TMI rebalances quarterly, while KRX Semicon and Autos rebalance annually in September. KRX confirmed these indices will use the September TMI rebalancing results.
- TMI rebalances quarterly, likely releasing results before KRX Sector Indices, giving a window to predict shifts in KRX Semicon and Autos stocks and position ahead of the sector rebalancing.
Chung Yong-Jin Will Receive 10% of E Mart Shares from His Mum to Become the Controlling Shareholder
- E Mart’s Chairman Chung Yong-Jin will receive the entire 10% shares of E Mart held by his mum Lee Myung-Hee.
- After this transaction, Chung Yong-Jin will become the largest shareholder in E Mart with a 28.6% stake in the company.
- This is likely to positively impact E Mart. In Korea, when the final major ownership stake is transferred, there is often a positive boost to the share price.
A Strategic Pivot: Adani Enterprises Exits Adani Wilmar for $2B
- Adani Enterprises (ADE IN) exits Adani Wilmar (AWLTD IN), selling its entire 44% stake for over $2 billion, redirecting funds toward core infrastructure ambitions.
- The exit frees capital for energy, transport, and logistics projects, showcasing Adani’s commitment to strategic resource deployment and robust corporate governance.
- Adani’s strategic divestment highlights its focus on infrastructure-driven growth, underscoring the potential for shareholder value creation through timely exits from non-core businesses.
Destination XL Group Faces Potential Buyout: Fund 1 Investments Considers Raising Initial $3/Share Offer
- Destination XL Group received a non-binding $3/share proposal from Fund 1 Investments, holding a 21% stake.
- Fund 1’s offer values DXLG at 6.1x EBITDA, with potential for a higher bid if additional value is identified.
- DXLG repurchased 6.6% of shares in Q3 2024 at an average price of $2.80/share, totaling $10 million.
Growth Policy Score Improved with the Request to Raise P/B, but Other Criteria Are in the Process
- It is commendable that more listed companies as a whole are setting ROE and ROIC as their targets. The real value of actually achieving these goals will now be tested.
- Dividend Policy score, Treasury Shares Retirement score, AGM Disclosure score, and IR Disclosure score improved slightly, but the listed companies as a whole have yet to show improvement.
- Even though higher stock prices negatively impacted Policy Stock Holding score, overall improvement has not been achieved for the listed companies. Cash allocation also remains an issue for many companies.
Onward Holdings (8016 JP): Q3 FY02/24 flash update
- Onward Holdings’ sales increased by 6.1% YoY to JPY149.9bn, while operating profit decreased by 11.8% YoY to JPY8.6bn.
- Domestic Business sales rose by 6.5% YoY to JPY136.8bn, but operating profit fell by 14.9% YoY.
- Overseas Business sales increased by 1.3% YoY to JPY13.1bn, with a significant narrowing of operating loss.
PepsiCo Inc.: Portfolio Diversification & Innovation As A Vital Tool For Growth! – Major Drivers
- PepsiCo’s results for the third quarter of 2024 reflected the complexities of navigating through evolving consumer habits and geopolitical challenges.
- The company reported a deceleration in growth due to several factors, indicating both challenges and strategic initiatives needed for future growth.
- One of the main highlights is the Frito-Lay segment, which, after experiencing significant double-digit growth over the last few years, is expected to normalize this year.
LXJ International Holdings Pre-IPO Tearsheet
- LXJ International Holdings (LXJ HK) is looking to raise atleast US$100m in its upcoming Hong Kong IPO. The deal will be run by CICC and Haitong.
- LXJ International Holdings Limited (LXJIH) is a Chinese-style QSR brand having a chain of fast food restaurants in China.
- It was ranked first in the Chinese-style QSR industry in China by GMV in 2023, according to CIC, making it the largest Chinese-style QSR brand in China.
‘Colorful’ 2024 For Cambodia In Rubber, Tire Sectors
- Highlights · Set to finish 2024 with a 30% rise in rubber sale values YoY · Exports tires worth US$772.5 million during Jan-Nov 2024 · Minister charts course of action for 2025 Cambodia has made impressive strides in 2024, fueled by higher global rubber prices and exceptional progress in its burgeoning tire production and export industry, marking a pivotal step in its transformation into a key player in the global rubber value chain.
- The Southeast Asian kingdom earned US$472 million from exports of NR latex during January-October 2024, up 22.5% over the same period the previous year.
- On the other hand, it gained US$568 million from exports of the product during January-November 2024, up 26.7% over the same period in 2023.
Champion Homes: Can Its Mergers & Acquisitions Strategy Serve As A Growth Factor? – Major Drivers
- Champion Homes showcased a robust performance in the second quarter of fiscal 2025, highlighting several strategic advancements and operational efficiencies, although not without challenges.
- The company’s net sales saw a substantial year-over-year increase of 33% to $617 million, significantly boosted by a 37% rise in U.S. factory-built housing revenue.
- This growth was predominantly driven by a 31% increase in the U.S. homes sold, aided by the augmented retail and manufacturing capacity following the Regional Homes acquisition, which alone contributed $148 million to the quarter’s net sales.
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