Equity Analyst - Asia Consumer Sector, Investory

Devi Subhakesan

Equity Analyst - Asia Consumer Sector

ASIA CONSUMER: INSIGHTS AND INVESTMENT IDEAS

Investory

Investory is a Singapore-based boutique independent equity research firm founded in January 2017 with a primary focus on consumption themes across Asia-Pacific.

We aim to generate investible ideas based on consumption trends and outlook. We screen our ideas on several parameters - product potential, long-term growth and management commitment being the most critical.  We follow a fundamental analysis approach in our stock selection process and are not restricted by market cap.

We aspire to grow into a leading source of unbiased research, free of conflict of interest, for investors yearning for independent and disciplined analysis. 

We also undertake bespoke research mandates to support our Institutional clients’ investment needs.

Our team comprises of professionals with extensive experience in the Asian equity markets, in areas ranging from research, servicing institutional clients and investment management.

Equity Capital Markets

<ul>
<li>
<a href="https://www.smartkarma.com/entities/laopu-gold-co-ltd" target="_blank" data-smartkarma-citation="entities:44036:1" rel="noopener">Laopu Gold (6181 HK)</a>  targets to raise approximately USD350 mn from a primary placement of 4.31 million new shares at HKD630 per share.</li>
<li>Laopu Gold has delivered both superior margins and rapid growth by marrying cultural resonance, premium pricing, artisanal excellence, and outstanding store economics.</li>
<li>Laopu’s growth track record coincides with period of rising gold prices. Investors should weigh its impressive margins and brand strength against the risk of a less supportive gold price environment.</li>
</ul>



Laopu Gold (6181 HK)  targets to raise approximately USD350 mn from a primary placement of 4.31 million new shares at HKD630 per share.
Laopu Gold has delivered both superior margins and rapid growth by marrying cultural resonance, premium pricing, artisanal excellence, and outstanding store economics.
Laopu’s growth track record coincides with period of rising gold prices. Investors should weigh its impressive margins and brand strength against the risk of a less supportive gold price environment.


Laopu Gold (6181 HK): Heritage Luxury, Guochao Appeal. Key Facts, Financials & Valuation

External reports (aggregated public sources), Value Investors Club

Value Investors Club (VIC)

External reports (aggregated public sources)

Value Investors Club

Equity Bottom-Up

<ul><li>Luxury sector experiencing challenges after period of record-high growth</li><li>Key players like LVMH, Hermes, and Richemont facing corrections in share prices</li><li>Burberry facing short thesis due to concerns about navigating changing market dynamics</li></ul><p><em>This content is sourced through publicly available sources and has been machine generated. Information displayed is for general informational purposes only. This article was originally published 3 months ago on Value Investors Club.</em></p>

Luxury sector experiencing challenges after period of record-high growthKey players like LVMH, Hermes, and Richemont facing corrections in share pricesBurberry facing short thesis due to concerns about navigating changing market dynamicsThis content is sourced through publicly available sources and has been machine generated. Information displayed is for general informational purposes only. This article was originally published 3 months ago on Value Investors Club.

Articles from Caixin Global, Caixin Global

Caixin Global

Articles from Caixin Global

Caixin is a media group dedicated to providing financial and business news through periodicals, online content, mobile apps, conferences, books and TV/video programs. Caixin aims to blaze a trail that helps traditional media prosper in the new media age through integrated multimedia platforms.

News from Caixin

LVMH Moet Hennessy Louis Vuitt / Equity Bottom-Up

LVMH Moet Hennessy Louis Vuitt (LVMUY US)

<ul><li>LVMH Moet Hennessy Louis Vuitton SE is not worried about sales pressure on the Chinese mainland as long as its clientele there is growing overall, according to Chief Financial Officer Jean-Jacques Guiony.</li><li>The world’s largest luxury goods group is looking to attract more Chinese shoppers amid a broader slowdown in demand for expensive bags, jewelry, and perfume.</li><li>Many consumers have been making their purchases outside of China, especially in Japan, where the yen is weak, the French conglomerate disclosed in its 2024 first-quarter earnings released last week.</li></ul>

LVMH Moet Hennessy Louis Vuitton SE is not worried about sales pressure on the Chinese mainland as long as its clientele there is growing overall, according to Chief Financial Officer Jean-Jacques Guiony.The world’s largest luxury goods group is looking to attract more Chinese shoppers amid a broader slowdown in demand for expensive bags, jewelry, and perfume.Many consumers have been making their purchases outside of China, especially in Japan, where the yen is weak, the French conglomerate disclosed in its 2024 first-quarter earnings released last week.

LVMH Remains Committed to China Even Amid Sluggish Sales 

Equity Long-Short

Mo Aziz

China Tourism Group Duty Free Corp Ltd / Equity Bottom-Up

China Tourism Group Duty Free Corp Ltd (601888 CH)

<ul>
<li>European luxury goods maker enjoyed its best week in the past 52 weeks, spurred by better-than-expected results by LVMH, the industry leader and widely viewed as the bellwether  </li>
<li>China's market was cited as resilient and very strong in certain categories, defying the general market perception that Chinese demand is soft</li>
<li>The key European luxury goods share price has risen by an average of 8.2% YTD, China Tourism Group share price performance has lagged. Good buying opportunity    </li>
</ul>


European luxury goods maker enjoyed its best week in the past 52 weeks, spurred by better-than-expected results by LVMH, the industry leader and widely viewed as the bellwether  
China's market was cited as resilient and very strong in certain categories, defying the general market perception that Chinese demand is soft
The key European luxury goods share price has risen by an average of 8.2% YTD, China Tourism Group share price performance has lagged. Good buying opportunity    


LVMH & Richemont Said Chinese Demand for Luxury Goods Is Strong; POSITIVE for China Tourism Group

Analyst

Steve

<ul>
<li>
<a href="https://www.smartkarma.com/entities/kweichow-moutai-co-ltd-a" target="_blank" data-smartkarma-citation="entities:1553:1" rel="noopener">Kweichow Moutai (600519 CH)</a> announced the preliminary result for FY23, with sales and net profit both up 17% yoy. </li>
<li>The overall weak consumer sentiment in China has not spared the Chinese liquor sector, as overall Chinese liquor demand has been lukewarm. </li>
<li>The current valuation for Moutai has become very attractive, and even if no rerating, the return is likely to be around 15% through earnings growth plus 2% from dividend yield.</li>
</ul>



Kweichow Moutai (600519 CH) announced the preliminary result for FY23, with sales and net profit both up 17% yoy. 
The overall weak consumer sentiment in China has not spared the Chinese liquor sector, as overall Chinese liquor demand has been lukewarm. 
The current valuation for Moutai has become very attractive, and even if no rerating, the return is likely to be around 15% through earnings growth plus 2% from dividend yield.


Kweichow Moutai (600519 CH):  Stability Amidst Overall Industry Weakness

France

Hermes International designs, produces, and distributes personal luxury accessories and apparel.  The Company operates a chain of boutiques under the Hermes name that sells items such as leather, scarves, men's clothes, ties, women's fashions, perfume, watches, stationery, shoes, hats, gloves, and jewelry.

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Hermes International (RMS FP)

Laopu Gold (6181 HK): Heritage Luxury, Guochao Appeal. Key Facts, Financials & Valuation

Laopu Gold's multiples are not too steep given strong earnings growth outlook. Investors however need to weigh its upside potential against...

Devi Subhakesan

Burberry (BRBY) - Sunday, Mar 31, 2024

Luxury sector experiencing challenges after period of record-high growthKey players like LVMH, Hermes, and Richemont facing corrections in share...

Value Investors Club (VIC)

LVMH Remains Committed to China Even Amid Sluggish Sales

LVMH Moet Hennessy Louis Vuitton SE is not worried about sales pressure on the Chinese mainland as long as its clientele there is growing overall,...

Caixin Global

LVMH & Richemont Said Chinese Demand for Luxury Goods Is Strong; POSITIVE for China Tourism Group

European luxury goods producers performing well and attributed to Chinese consumers. China Tourism Group is the primary beneficiary of Chinese...

Mo Aziz

Kweichow Moutai (600519 CH): Stability Amidst Overall Industry Weakness

Kweichow Moutai reports 17% increase in sales and net profit for FY23. Attractive valuation offers potential 15% return through earnings growth...

Steve

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

Laopu Gold (6181 HK): Heritage Luxury, Guochao Appeal. Key Facts, Financials & Valuation

Laopu Gold's multiples are not too steep given strong earnings growth outlook. Investors however need to weigh its upside potential against...

Devi Subhakesan

Burberry (BRBY) - Sunday, Mar 31, 2024

Luxury sector experiencing challenges after period of record-high growthKey players like LVMH, Hermes, and Richemont facing corrections in share...

Value Investors Club (VIC)

LVMH Remains Committed to China Even Amid Sluggish Sales

LVMH Moet Hennessy Louis Vuitton SE is not worried about sales pressure on the Chinese mainland as long as its clientele there is growing overall,...

Caixin Global

LVMH & Richemont Said Chinese Demand for Luxury Goods Is Strong; POSITIVE for China Tourism Group

​European luxury goods producers performing well and attributed to Chinese consumers. China Tourism Group is the primary beneficiary of Chinese...

Mo Aziz

Kweichow Moutai (600519 CH): Stability Amidst Overall Industry Weakness

​Kweichow Moutai reports 17% increase in sales and net profit for FY23. Attractive valuation offers potential 15% return through earnings growth...

Steve

European luxury goods producers performing well and attributed to Chinese consumers. China Tourism Group is the primary beneficiary of Chinese...

Kweichow Moutai reports 17% increase in sales and net profit for FY23. Attractive valuation offers potential 15% return through earnings growth...