Daily BriefsMost Read

Most Read: Yamada Denki, China MeiDong Auto, Delhivery, Yashili International Holdings, SenseTime Group and more

In today’s briefing:

  • Yamada Denki – GINORMOUS Buyback To Dramatically Boost EPS and ROE
  • China Meidong: Back the Porsche at 20 HKD
  • Delhivery IPO: Offering Details & Index Inclusion Timeline
  • Yashili (1230 HK)’s Pre-Conditional Offer From Mengniu
  • Index Rebalance & ETF Flow Recap: KOSPI200, KQ150, CSI300, STAR50, SET50, China A50, HSCI, SenseTime

Yamada Denki – GINORMOUS Buyback To Dramatically Boost EPS and ROE

By Travis Lundy

  • Yamada Denki (9831 JP) reported earnings (Revs -7.6% (slight beat), OP -28.6% (slight miss), NP -2.4% (slight miss)), and slightly upbeat forecasts to Mar-2023 (Revs +4.6%, OP +12.5%, NP +2.9%) 
  • They also announced an unchanged dividend at ¥18/share, and a VERY BIG BUYBACK. This is one of the largest, most aggressive, on-market buyback programs I have ever seen.
  • Previous buybacks have been duds. Yamada Denki is not playing around this time. This time it will be a buy.

China Meidong: Back the Porsche at 20 HKD

By Sameer Taneja

  • China Meidong Auto (1268 HK) trades at a 12x/9x PE FY22/23E with a 6.5% dividend yield at a 20 HKD/share price (assuming an 80% payout ratio).
  • In buying China Meidong Auto (1268 HK), you get an industry leader in the dealership space with supreme execution (35% ROE/47% CAGR profit growth/best capital allocator).
  • The integration of the Starchase Porsche Dealerships provides an upside potential, as the management, with their superior track record, can significantly improve the target’s operations.

Delhivery IPO: Offering Details & Index Inclusion Timeline

By Brian Freitas

  • Delhivery (1058656D IN) is looking at raising INR 52,350m (US$685m) in its IPO by selling up to 113.3m shares at a range of INR 462-487/share.
  • At the mid point of the IPO range, Delhivery (1058656D IN) will be valued at INR 344.8bn (US$4.5bn) while the free float market cap will be much lower.
  • Delhivery (1058656D IN) could get entry to the FTSE All-World Index at the December QIR, while inclusion in the MSCI India Index could take place at the May 2023 SAIR.

Yashili (1230 HK)’s Pre-Conditional Offer From Mengniu

By David Blennerhassett


Index Rebalance & ETF Flow Recap: KOSPI200, KQ150, CSI300, STAR50, SET50, China A50, HSCI, SenseTime

By Brian Freitas


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