In today’s briefing:
- Anta (2020 HK): Acquired Jack Wolfskin, Still Financial Momentum, Upgrade to Buy
- Asia Real Estate Tracker (16-Apr-2025): Singapore’s LHN Group wants SGX listing for Coliwoo Co-Living.
- Asian Dividend Gems: Hyundai Elevator
- Taiwan Dual-Listings Monitor: TSMC Premium at High-End; ChipMOS & CHT Multi-Year High Short Interest
- DKSH Malaysia (DKSH MH): Stable Business Available at Attractive Valuation
- Gensol Engineering Forensic Analysis: Insights from SEBI’s Investigation
- The Beat Ideas: Samhi Hotels, A Strategic Play on India’s Premium Hotels
- China East Education (667 HK): In an Excellent Position
- [Earnings Preview] SLB Faces Downward Pressure from Weak Oil Prices and Softening Demand
- SMIORE: Transitioning from Merchant Miner to Integrated Steel & Minerals Powerhouse
Anta (2020 HK): Acquired Jack Wolfskin, Still Financial Momentum, Upgrade to Buy
- The acquisition of Jack Wolfskin means the brand portfolio strategy still works.
- The financial potential is NOT as weak as the 2024 result looks.
- We conclude an upside of 40% and a price target of HK$122 for the next twelve months.
Asia Real Estate Tracker (16-Apr-2025): Singapore’s LHN Group wants SGX listing for Coliwoo Co-Living.
- LHN Group intends to list Coliwoo Co-Living on SGX, expanding their presence in the real estate market.
- C&W reports a significant 42% drop in office rents in Hong Kong, reflecting the changing landscape post-Q1 2019.
- PGIM Real Estate promotes David Fassbender to Deputy Head of APAC, indicating a shift in leadership within the company.
Asian Dividend Gems: Hyundai Elevator
- Hyundai Elevator Co (017800 KS)’s share price has been moving higher on the back of higher dividends and a beneficiary of the potential economic co-operations between North and South Korea.
- Hyundai Elevator currently has a dividend yield of 8%, which is one of the highest dividend yields among Korean companies with more than 2 trillion won in market cap.
- There have been some initial discussions about increased economic co-operation between North and South Korea. Hyundai Elevator is a key beneficiary in such a scenario.
Taiwan Dual-Listings Monitor: TSMC Premium at High-End; ChipMOS & CHT Multi-Year High Short Interest
- TSMC: +21.5% Premium; Consider Shorting the Spread at This Level
- ChipMOS: +3.2% Premium; Good Level to Consider Shorting the Spread: Local Shares’ Short Interest at Multi-Year Highs
- CHT: +1.3% Premium; Good Level to Consider Shorting the Spread; ADR Short Interest at Multi-Year Highs
DKSH Malaysia (DKSH MH): Stable Business Available at Attractive Valuation
- Stable and free cash flow generating business available at attractive price
- Trades below book with double digit ROE and at Significant discount to its parent valuation
- Priced towards low end of historical PE and P/B ( similar to COVID valuations)
Gensol Engineering Forensic Analysis: Insights from SEBI’s Investigation
- SEBI has launched a forensic investigation into Gensol Engineering Ltd. (GEL), highlighting grave concerns around corporate governance, fund misuse, and misleading disclosures
- What began as a story of meteoric financial growth has now unfolded into a cautionary tale of alleged fund diversion, shady preferential allotments, and sharp promoter decline.
- This research note delves into the key issues identified by SEBI, the financial patterns that triggered scrutiny, and the implications for stakeholders.
The Beat Ideas: Samhi Hotels, A Strategic Play on India’s Premium Hotels
- SAMHI Hotels (SAMHI IN) witnessing a 9-10% top-line growth attributed to same-store Average Room Rate (ARR) growth and robust occupancy trend across all the segments.
- Company is set to generate a top line of INR 3.2-3.5bn pa post stabilization in 2 years with an increase of 532 keys across three hotels.
- Company is expecting 35% revenue growth in next 3-4 years by repositioning the ACIC portfolio under the Marriott Tribute & Courtyard brands and opening new hotels like W& Westin Tribute.
China East Education (667 HK): In an Excellent Position
- China East Education (667 HK) remains well-positioned in the government’s support of vocational education, despite its YTD outperformance.
- Higher average tuition per student, better cost control, accelerating growth in the “Fashion and Beauty” segment, and new course introduction are the main profit drivers.
- Net cash equals 17.2% of the share price, while other peers are struggling with debt repayment. Coupled with stronger earnings CAGR, its premium PERs are justified.
[Earnings Preview] SLB Faces Downward Pressure from Weak Oil Prices and Softening Demand
- Schlumberger’s Q1 2025 revenue is expected to drop by 7.6% QoQ, while its EPS is anticipated to fall by 19.6%, marking the lowest EPS in five quarters.
- SLB has underperformed the S&P 500, XLE, and WTI futures since 2024, pressured by weak oil prices, lower drilling activity, and rising costs from tariff-related headwinds.
- Despite weaker return ratios in Q4 2024 and macro uncertainty, SLB maintains a “Strong Buy” consensus, backed by its global presence, digital expansion, and strong cash flow.
SMIORE: Transitioning from Merchant Miner to Integrated Steel & Minerals Powerhouse
- Scale-Up in Mining: Iron ore capacity ramped up to 3.86 MTPA with visibility to reach 4.36 MTPA, positioning mining as a high-margin cash engine.
- Forward Integration via Arjas Acquisition: Strategic acquisition of Arjas Steel marks a shift from merchant mining to integrated steel production, with embedded OEM relationships and SBQ focus.
- Valuation Reset in Progress: Despite structural upgrades, the stock trades at ~8x EV/EBITDA, offering a rerating opportunity as steel margins expand and loss-making verticals normalise.
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