Japan Inc confronts limit of corporate carbon cuts 4 Dec 2020 Companies including Sony are lobbying for more renewable power in Japan. They need to satisfy clients like Apple, who have committed to carbon-neutral supply chains as soon as 2030. But even an edict from the $2 trln tech titan can’t force change where policymakers lag behind.
Payments is a wrinkly bow on Walmart’s India deal 3 Dec 2020 PhonePe was an afterthought when the U.S. retailer bought it with Flipkart in 2018. Now the star money-transfer app is being partially spun out of the e-tailer at a $5.5 bln price tag. It’s a deliberately conservative valuation for a business with enormous potential.
Corona Capital: Merck sells Moderna stake 2 Dec 2020 Concise views on the pandemic’s corporate and financial fallout: The U.S. drugmaker is banking its winnings on an investment in Covid-19 vaccine producer Moderna that dates back to 2015.
Healthcare IPO examines value of China’s big tech 2 Dec 2020 The unit of e-commerce giant JD priced its $3.5 bln offer at a reasonable 13 times sales. Virtual consultations and pharmacies are booming, supporting an official push for a healthy China. It’s a timely reminder that powerful internet platforms have valuable uses for Beijing.
Xiaomi $4 bln cash raise exploits peak market 2 Dec 2020 The $81 bln Chinese smartphone maker is using its 143% share rally this year to raise $4 bln - a record Hong Kong follow-on. Shares are now pricier than Apple’s, which should please founder Lei Jun, a Steve Jobs imitator. He has his work cut out justifying that valuation.
Meituan delivers food slathered in EV spice 1 Dec 2020 The $220 bln Chinese food delivery group saw earnings rise 374% in the third quarter, mostly thanks to an equity stake in an electric car maker. Blistering portfolio gains only emphasize the bland performance of Meituan’s core business – and its expensive share price.
Beware Chinese used-car dealer’s sticker price 27 Nov 2020 Kaixin Auto is riding electric-vehicle enthusiasm with an odd plan to merge with e-commerce outfit Haitaoche. After going public by way of a shell company in 2018, just 2% of its shares are freely traded. The 2,300% rise in market cap requires a closer look under the hood.
China’s e-yuan solves one stimulus problem 24 Nov 2020 Digital currency transactions have topped $300 mln as the central bank steps up trials across the country. Virtual money that’s traceable is showing promise in getting consumers to spend rather than hoard. That might spur Beijing to use cash handouts to boost consumption.
Australian milk deal looks a little too local 24 Nov 2020 Vegemite-maker Bega could buy Lion Dairy for $400 mln after regulators blocked a Chinese buyer amidst diplomatic tensions. A home-grown champion could consolidate the domestic market, but as other Aussie industries are discovering, there are few substitutes for Chinese demand.
Corona Capital: Cash stockpiles, Empty real estate 23 Nov 2020 Concise views on the pandemic’s corporate and financial fallout: U.S. companies hoard money; retailer rout causes real estate double whammy.
Corona Capital: U.S. airlines 20 Nov 2020 Concise views on the pandemic’s corporate and financial fallout: The CDC issued a warning to Americans not to travel over the upcoming Thanksgiving holiday as Covid-19 cases surge. Airlines, once again, are going hat-in-hand to Washington.
Panasonic pushes limits of rewiring circuitry 20 Nov 2020 The $26 bln electronics empire is yet again shuffling around its fax machines and electric-vehicle batteries. This latest restructuring should help streamline operations and boost profitability. If it clears the way for new boss Yuki Kusumi to lead a broader breakup, even better.
Video IPO live-streams cost of ByteDance rivalry 20 Nov 2020 Chinese app Kuaishou wants to go public at a $50 bln valuation. The Tencent-backed company swung into the red in the first half as growth slows and fierce competition with TikTok’s owner takes a toll. It’s a preview of the costly battles playing out across the industry.
Russia is blessing and curse for e-commerce IPO 19 Nov 2020 Online marketplace Ozon’s New York offering values it at up to $5.6 bln. A big and underpenetrated market is a plus, as are barriers to foreign rivals. But subsidising deliveries in the world’s biggest country means it’s burning cash. The $1 bln fundraising may not be its last.
Corona Capital: Brexit curveball, Sonos 19 Nov 2020 Concise views on the pandemic’s corporate and financial fallout: a Covid-19 scare for European Brexit negotiators puts an already-optimistic deadline to the test; and wireless-speaker maker Sonos joins the list of companies profiting from consumers being stuck indoors.
Baidu gets useful M&A advice from unlikely source 19 Nov 2020 Days after the Chinese search-engine operator agreed to buy a video-streaming app for $3.6 bln, short-seller Muddy Waters has accused owner Joyy of fraud. It’s a blessing in disguise. YY is losing users and lagging rivals. The allegations may give Baidu room to rethink the deal.
Revlon may take shareholder rights full circle 18 Nov 2020 The cosmetics company controlled by Ron Perelman became a case study on shareholder value maximization following a 1980s lawsuit. Last week it narrowly avoided bankruptcy. Its business and stock price have been sliding for several years. A sale looks like the best final chapter.
Corona Capital: Dimon weighs in, Gen Z 18 Nov 2020 Concise views on the pandemic’s corporate and financial fallout: JPMorgan’s chief executive calls for U.S. politicians to “just split the baby” on stimulus; and Generation Z deals a new body blow to the idea that office life will emerge from the pandemic unscathed.
Nio mania reaches Tesla’s extra gear 18 Nov 2020 The Chinese electric-car maker narrowed its quarterly loss as sales surged. Even without the production of its U.S. rival or a bombastic boss like Elon Musk, its shares have rocketed up by 1,000% this year. Nio, too, has a long way to go to grow into a racy $63 bln valuation.
Haier’s $14 bln deal gives up simplicity for speed 18 Nov 2020 The Shanghai-traded appliance maker will add a Hong Kong listing so it can issue stock to buy out its electronics unit. But the paid shares will only trade after the deal, and a cross-border valuation gap makes it hard to assess their value. That could rile minority investors.