Analyst

Steve

Equity Bottom-Up

Shenzhou Intl Group Holdings / Equity Bottom-Up

<ul>
<li>
<a href="https://www.smartkarma.com/entities/nike-inc-cl-b" target="_blank" data-smartkarma-citation="entities:6658:1" rel="noopener">Nike (NKE US)</a> reported 2QFY24 results last week with a guidance cut, as the company cut FY24 full-year sales guidance to around +1%, compared to +mid-single-digit in the previous guidance. </li>
<li>
<a href="https://www.smartkarma.com/entities/shenzhou-intl-group-holdings-ltd" target="_blank" data-smartkarma-citation="entities:10415:1" rel="noopener">Shenzhou Intl Group Holdings (2313 HK)</a> saw its stock drop by 8% the following day, given that Nike is Shenzhou's most important customer, making up 30% of Shenzhou's sales. </li>
<li>Nike's inventory is down another 14% yoy, and down high-single-digit compared to the previous quarter 1QFY24. </li>
</ul>



Nike (NKE US) reported 2QFY24 results last week with a guidance cut, as the company cut FY24 full-year sales guidance to around +1%, compared to +mid-single-digit in the previous guidance. 

Shenzhou Intl Group Holdings (2313 HK) saw its stock drop by 8% the following day, given that Nike is Shenzhou's most important customer, making up 30% of Shenzhou's sales. 
Nike's inventory is down another 14% yoy, and down high-single-digit compared to the previous quarter 1QFY24. 


Shenzhou Intl (2313 HK):  Nike Guidance Cut Presents An Opportunity

Korea/Asia, Events, IPOs, Douglas Research Advisory

Douglas Kim

Korea/Asia, Events, IPOs

Yue Yuen Industrial Holdings / Equity Bottom-Up

<ul>
<li>Yue Yuen has a scalable business model with high dividend yield (6.4%). Its sales and net profit are expected to increase by 9.3% YoY and 55% YoY, respectively in 2024.</li>
<li>The company is likely to enjoy higher sales and profits in 2024 due to improved footwear inventory destocking cycle, higher sales and profits at its subsidiary Pou Sheng.</li>
<li>Yue Yuen Industrial is one of the largest footwear and athletic shoe manufacturers in the world. Its major customers include Nike, Adidas, Puma, and Reebok.</li>
</ul>


Yue Yuen has a scalable business model with high dividend yield (6.4%). Its sales and net profit are expected to increase by 9.3% YoY and 55% YoY, respectively in 2024.
The company is likely to enjoy higher sales and profits in 2024 due to improved footwear inventory destocking cycle, higher sales and profits at its subsidiary Pou Sheng.
Yue Yuen Industrial is one of the largest footwear and athletic shoe manufacturers in the world. Its major customers include Nike, Adidas, Puma, and Reebok.


Independent research on the U.S. markets, Baptista Research

Baptista Research

Independent research on the U.S. markets

Baptista Research is an independent financial research house focused on the U.S. markets. We provide equity research as well as credit research reports on the top-listed U.S. companies with most of our focus on technology, consumer goods and services, automobiles, industrials, oil and gas, pharma, and healthcare. Our research has served more than 3000 institutional investors including mutual funds, hedge funds, banks, family offices, and various buy-side firms. We operate a research subscription service where institutions, as well as retail investors, can have priority access to all our research. We also have a wide distribution of our research reports across some of the top global financial platforms. Apart from equity research and credit research, we also provide advisory services with respect to mergers & acquisitions (M&A), private equity/ venture capital fundraising, valuation reports, and investment management services for corporates.
Baptista Research is owned and managed by Ishan Majumdar, an ex-Venture Capitalist/ Investment Banker, a Chartered Accountant, and a Masters’ degree holder in Management from HEC Paris. Ishan has nearly a decade of experience in Mergers and Acquisitions, Leveraged Buyouts (LBOs), Venture Capital Investing, Corporate Strategy, and Valuation in front-office roles at the likes of BNP Paribas CIB, Credit Agricole CIB, Groupe Danone, and TIW Private Equity. He has worked on and closed multiple acquisition deals, leveraged buyouts, and start-up investment transactions.

<ul><li>Nike Inc. delivered a mixed set of results for the previous quarter, with revenues below the analyst consensus.</li><li>The company managed a decent growth amidst various challenges over recent years, including societal, geopolitical, global health issues, and supply chain disruptions.</li><li>With revenues increasing from $39 billion in fiscal 2019 to over $50 billion, Nike’s growth rate surpasses the overall industry.</li></ul>

Nike Inc. delivered a mixed set of results for the previous quarter, with revenues below the analyst consensus.The company managed a decent growth amidst various challenges over recent years, including societal, geopolitical, global health issues, and supply chain disruptions.With revenues increasing from $39 billion in fiscal 2019 to over $50 billion, Nike’s growth rate surpasses the overall industry.

NIKE Inc.: Zooming Into The Success Of Their D2C Marketplace Model & New Innovations! - Major Drivers

<ul>
<li>Since my bearish insight on August 11 (<a href="https://www.smartkarma.com/insights/li-ning-2331-hk-low-quality-earnings-beat" target="_blank" data-smartkarma-citation="insights:110159" rel="noopener">Li Ning (2331 HK):  Low Quality Earnings Beat</a>), Li Ning's share price has declined by 27% in less than 2 months.</li>
<li>Anta's share price on the other hand has been flat during the same time frame (<a href="https://www.smartkarma.com/insights/anta-sports-2020-hk-most-resilient-in-industry-down-cycles" target="_blank" data-smartkarma-citation="insights:111097" rel="noopener">Anta Sports (2020 HK):  Most Resilient In Industry Down-Cycles</a>).</li>
<li>In this insight, we look at if there are now any positive catalysts on the name, given the steep share price decline.</li>
</ul>


Since my bearish insight on August 11 (Li Ning (2331 HK):  Low Quality Earnings Beat), Li Ning's share price has declined by 27% in less than 2 months.
Anta's share price on the other hand has been flat during the same time frame (Anta Sports (2020 HK):  Most Resilient In Industry Down-Cycles).
In this insight, we look at if there are now any positive catalysts on the name, given the steep share price decline.


Li Ning (2331 HK):  No Positive Catalysts In Sight

<ul>
<li>
<a href="https://www.smartkarma.com/entities/anta-sports-products-ltd" target="_blank" data-smartkarma-citation="entities:10261:1" rel="noopener">Anta Sports Products (2020 HK)</a> reported a set of resilient earnings in 1H23, with net profit up 32% yoy.</li>
<li>Management reconfirmed 2023 guidance for Fila and Anta at double-digit retail sales growth, and increased 2023 guidance for other brands to 40% yoy compared to 30% before. </li>
<li>Anta’s sales growth has been the most resilient in previous industry down-turns in China.  China macro worries should not be overly read through to Anta’s future results.</li>
</ul>



Anta Sports Products (2020 HK) reported a set of resilient earnings in 1H23, with net profit up 32% yoy.
Management reconfirmed 2023 guidance for Fila and Anta at double-digit retail sales growth, and increased 2023 guidance for other brands to 40% yoy compared to 30% before. 
Anta’s sales growth has been the most resilient in previous industry down-turns in China.  China macro worries should not be overly read through to Anta’s future results.


Anta Sports (2020 HK):  Most Resilient In Industry Down-Cycles

United States

NIKE, Inc. designs, develops, and markets athletic footwear, apparel, equipment, and accessory products for men, women, and children. The Company sells its products worldwide to retail stores, through its own stores, subsidiaries, and distributors.

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Nike (NKE US)

Shenzhou Intl (2313 HK): Nike Guidance Cut Presents An Opportunity

What the market seemed to ignore is that Nike's inventory is down another 14% yoy, and down high-single-digit compared to the previous quarter 1QFY24.

Steve

Asian Dividend Gems: Yue Yuen Industrial

Yue Yuen is likely to enjoy higher sales and profits in 2024 due to improved footwear inventory destocking cycle, higher sales and profits at its...

Douglas Kim

NIKE Inc.: Zooming Into The Success Of Their D2C Marketplace Model & New Innovations! - Major Drivers

Nike Inc. delivered a mixed set of results for the previous quarter, with revenues below the analyst consensus. The company managed a decent...

Baptista Research

Li Ning (2331 HK): No Positive Catalysts In Sight

The share price of Li Ning has declined by 27% in less than 2 months, while Anta's share price has remained flat. We look at if there are any...

Steve

Anta Sports (2020 HK): Most Resilient In Industry Down-Cycles

Anta reported a set of resilient earnings in 1H23, with net profit up 32% yoy, compared to market consensus of 20-25% growth.

Steve

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Shenzhou Intl (2313 HK): Nike Guidance Cut Presents An Opportunity

What the market seemed to ignore is that Nike's inventory is down another 14% yoy, and down high-single-digit compared to the previous quarter 1QFY24.

Steve

Asian Dividend Gems: Yue Yuen Industrial

Yue Yuen is likely to enjoy higher sales and profits in 2024 due to improved footwear inventory destocking cycle, higher sales and profits at its...

Douglas Kim

NIKE Inc.: Zooming Into The Success Of Their D2C Marketplace Model & New Innovations! - Major Drivers

Nike Inc. delivered a mixed set of results for the previous quarter, with revenues below the analyst consensus. The company managed a decent...

Baptista Research

Li Ning (2331 HK): No Positive Catalysts In Sight

​The share price of Li Ning has declined by 27% in less than 2 months, while Anta's share price has remained flat. We look at if there are any...

Steve

Anta Sports (2020 HK): Most Resilient In Industry Down-Cycles

Anta reported a set of resilient earnings in 1H23, with net profit up 32% yoy, compared to market consensus of 20-25% growth.

Steve

The share price of Li Ning has declined by 27% in less than 2 months, while Anta's share price has remained flat. We look at if there are any...