In today’s briefing:
- China’s Export Restrictions on Rare Earth Minerals – Key Impact on Korean Companies
- Takashimaya (8233 JP): Full-year FY02/25 flash update
- TSMC (2330.TT; TSM.US): Key Questions for TSMC 1Q25 Earnings Conference
- China Pair Trade: Long SITC Intl (1308 HK), Short OOIL (316 HK)
- Anglo American: Initiation of Coverage- Copper Production Expansion & Optimization Driving Our Optimism!
- Intel Offloads Altera Majority Stake At Steep Discount
- MOIL Ltd: Plans to Double Output Well Supported
- Keepers Holdings (KEEPR PM) Concall Highlights: Solid Q4 2024, Growth Unabated In FY25
- Asia Real Estate Tracker (15-Apr-2025): HK Admiralty office floor sells at 17-year low.
- Associated British Foods: Initiation of Coverage- Automation & Labor Efficiency As A Pivotal Factor Driving Growth!
China’s Export Restrictions on Rare Earth Minerals – Key Impact on Korean Companies
- In this insight, we discuss some of the key beneficiaries in Korea that could actually stand to gain from such export restrictions.
- We also discuss other Korean companies that could be negatively impacted by this move by the Chinese government.
- Despite the uncertainties related to China’s export restrictions of rare earths minerals, we do not expect sudden collapse of the entire semiconductor and EVs value-chain in Korea.
Takashimaya (8233 JP): Full-year FY02/25 flash update
- Total operating revenue for FY02/25 was JPY1.03tn, up 8.5% YoY, with operating profit at JPY57.5bn, up 25.2%.
- Domestic and Overseas Department Stores, along with Finance and Contract and Design segments, drove YoY revenue and profit growth.
- FY02/26 forecast anticipates revenue and profit growth, led by Domestic and Overseas Department Store segments, despite some segment challenges.
TSMC (2330.TT; TSM.US): Key Questions for TSMC 1Q25 Earnings Conference
- Will Taiwan Semiconductor (TSMC) – ADR (TSM US) work on Intel Corp (INTC US)‘s Foundry Services (IFS) and invest about 20% share?
- Taiwan Semiconductor (TSMC) – ADR (TSM US) Chairman and CEO Dr. CC Wei has promised to further invest USD$100bn to establish capacity in the US; what’s the reasoning behind this?
- Given the current US tariff issue, what is the best investment advice?
China Pair Trade: Long SITC Intl (1308 HK), Short OOIL (316 HK)
- A “Long SITC Intl (1308 HK), Short OOIL (316 HK)” pair trade should benefit from the more resilient intra-Asia trade and capture the tariff-induced challenges on Trans-Pacific trade.
- OOIL derived 28.3% of its volume and 38.7% of its revenue from the Trans-Pacific route in 1Q25. Instead, SITC generated 100% of its revenue from the Asian market.
- While OOIL’s 0.7x P/B is cheaper than SITC’s 2.5x, its FY25 ROE of 10.6% is lower than SITC’s 34.6%. SITC’s dividend yield is also trending up, against OOIL’s down.
Anglo American: Initiation of Coverage- Copper Production Expansion & Optimization Driving Our Optimism!
- The 2024 results for Anglo American highlight a year marked by strategic shifts and operational execution, albeit with mixed outcomes.
- Safety remains a priority, yet the company faced three fatalities, underscoring ongoing safety challenges.
- Leadership changes have impacted the structure, with board addition Anne Wade contributing her expertise to strategic committees.
Intel Offloads Altera Majority Stake At Steep Discount
- Intel yesterday announced that it was selling a 51% stake of its Altera business to Silver Lake for $4.46 billion
- The deal values Altera at $8.75 billion, roughly half what Intel paid to acquire the company over a decade ago
- Altera’s CEO, Intel veteran Sandra Rivera, will be replaced with a new CEO, Raghib Hussain, formerly president of Products and Technologies at Marvell
MOIL Ltd: Plans to Double Output Well Supported
- MOIL is India’s largest manganese ore producer, contributing over 50% of the country’s production. Its dominant position provides a competitive advantage in meeting domestic demand.
- Planned a capex of Rs24 billion until FY30. This investment will support brownfield expansions, greenfield projects, and modernization efforts, including shaft-sinking projects at Balaghat and Gumgaon mines.
- Valuations: Trades at a marginal premium to historic valuations. Debt-free balance sheet, 25yr+ mine life gives confidence over LT execution of expansion plans.
Keepers Holdings (KEEPR PM) Concall Highlights: Solid Q4 2024, Growth Unabated In FY25
- The Keepers Holdings (KEEPR PM) reported Q4 2024 revenues/profits of 11.8%/23.5% YoY. Based on current trends, they provided a outlook for FY25.
- For FY24, the company reported 13.6%/21.3% YoY revenue/profit growth, led by a 14% YoY expansion in volumes. The company declared a 0.12 peso/share dividend (~4.7% dividend yield).
- Trading at 10.6x FY24 PE, net cash, >20% ROE, and a 4.7% dividend yield based on a 50% payout is a structural play on the premiumization of alcohol consumption.
Asia Real Estate Tracker (15-Apr-2025): HK Admiralty office floor sells at 17-year low.
- Hong Kong office floor in Admiralty sells at a 17-year low, reflecting challenging market conditions in the region.
- Brookfield strengthens APAC logistics presence with $588M NZ joint venture, highlighting growth opportunities in the sector.
- Manulife IM acquires Sydney Logistics Park from KKR and Centennial for $35M, expanding their real estate portfolio in Australia.
Associated British Foods: Initiation of Coverage- Automation & Labor Efficiency As A Pivotal Factor Driving Growth!
- Associated British Foods (ABF) has reported a robust financial performance for the 52 weeks ending 14th September 2024, highlighted by substantial profit and cash flow improvements across its diversified portfolio.
- Operating profit witnessed a 38% increase, with adjusted earnings per share climbing by 39%.
- Cash generation rose to GBP 1.4 billion, marking an increase of GBP 1.1 billion from the previous year, which signifies positive operational and financial strides.
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