In today’s briefing:
- Last Week in Event SPACE: Toshiba, Hongkong Land, Inpex, L’Occitane
- Adi Sarana Armada (ASSA IJ) – A Circular Route to Success
- HNI Corporation – Integrating KII and Updating Estimates
Last Week in Event SPACE: Toshiba, Hongkong Land, Inpex, L’Occitane
- The JIP TOB for Toshiba (6502 JP) is here. Finally. It’s still too low. Since the announcement, when it was too low, peers are up a lot, and memory looks healthier.
- Hongkong Land (HKL SP) selling Three Exchange Square sounds purely speculative. At best. But it would have a bigly impact on Hong Kong Office sentiment if true.
- Inpex (1605 JP) reported 1H results, a change in forecasts, and a bigly buyback. The mechanics are the same. The impact is a bit different, but it’s worth looking at.
Adi Sarana Armada (ASSA IJ) – A Circular Route to Success
- Adi Sarana Armada remains an interesting way to play the used car theme in Indonesia with its leading car leasing business fuelling used car sales.
- The company continues developing its logistics capabilities, thrusting towards B2B and value-added cold chain logistics. Anteraja has slowed along with e-commerce but is more focused on profitability.
- Adi Sarana Armada continues to benefit from synergies across its vehicle ecosystem through leasing, auction and used cars. Valuations are attractive with the company trading on 11x forward PER.
HNI Corporation – Integrating KII and Updating Estimates
With this note, we are updating our estimates for FY23 and FY24 to reflect the surprisingly strong margin performance in legacy HNI Workplace Furnishings, the integration of Kimball International (KII), and promised margin improvement in Residential Building Products (Hearth).
One note on how we have modeled the next four quarters.
Through 2QFY24, we are modeling KII revenues and operating income independent of the legacy WF.
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