Consumer

• Chagee Holdings (CHA US), a leading premium tea drinks brand, is seeking to raise US$400-500 million through a Nasdaq IPO. 
• According to iResearch, as of December 31, 2024, Chagee was the largest premium freshly made tea drink brand in China by the number of stores.
• The bull case rests on a strong brand, leading market share, peer-leading revenue growth, top-tier profitability and cash generation.   

• Chagee Holdings (CHA US) is planning to raise up to US$500m through its upcoming US IPO.
• Chagee is a leading premium tea drinks brand, serving healthy and delicious freshly-made tea drinks.
• In this note, we look at the firm’s past performance.

• The Hong Kong Alpha simulated portfolio returned 0.97% in March outperforming its benchmark by 1.1%.  Since inception the portfolio has outperformed Hong Kong indexes by 8% to 11%.
• The portfolio has generated alpha while maintaining a correlation of 0.8 and a beta of 1.05.  The HK Alpha portfolio has a Sharpe ratio of 2.19 YTD.
• On 3/31/25 we sold Shanghai Electric Group Company (2727 HK) , Citic Securities (H) (6030 HK) , Sands China (1928 HK) , and Sunny Optical Technology Group (2382 HK)

• Politico just published a report saying that Elon Musk is about to Step Back from DOGE, if true, this could impact somehow Tesla (TSLA US) stock price.
• Death threats and the spate vandalism directed at Tesla (TSLA US)‘s cars, plus Musk being viewed as a potential political liability by members of the Trump Administration are the drivers.
• Tesla (TSLA US) brand has been heavily damaged by Musk involvement in politics, sales are falling gobally and competitors like BYD (1211 HK) are rising. The stock is short-term OVERBOUGHT.

• Chagee adopts the “1+1+9+N” business model, which ensures the successful replication of the single store model. However, we saw performance decline in 2024, and future performance growth sustainability is uncertain.
• In terms of valuation, comparable companies include Starbucks and MIXUE. We think valuation of Chagee should be lower than MIXUE and Starbucks as both have proved themselves in the industry.
• Future growth would inevitably slow down. Investors may need more ‘safety margins’ on valuation because despite short-term strong demand, investors need to be alert to the performance validation after IPO.  

• Sarimelati Kencana (PZZA IJ) booked a profit in 4Q2024, and the company will remain profitable in 1Q2024, with a strong uptick expected in 2Q2024 and a profit expected for FY2025. 
• The company has been focused on reducing costs and improving efficiencies, booking a record gross profit margin in 4Q2024, and is now able to book a profit with lower sales. 
• Sarimelati Kencana remains a leading quick-service food provider in Indonesia, with prospects improving as it starts to book sustainable profits, with significant upside if it books sales at pre-COVID levels. 

• For FY2024/11, MORITO (hereafter, the Company) reported net sales of JPY 48,537 mn (+0.0% YoY), operating profit of JPY 2,868 mn (+16.4% YoY), ordinary profit of JPY 3,003 mn (+8.4% YoY), and profit attributable to owners of parent (hereafter, net profit) of JPY 2,572 mn (+16.0% YoY).
• Net sales rose slightly, but gross profit margin grew to 29.1%, marking record highs for net sales, operating profit, and ordinary profit.
• For FY2025/11, Morito projects net sales of JPY 53,000 mn (+9.2% YoY), operating profit of JPY 3,100 mn (+8.1% YoY), ordinary profit of JPY 3,200 mn (+6.5% YoY), and net profit of JPY 2,700 mn (+5.0% YoY).

• LFVN announced it is expanding its MindBody GLP- 1 System to markets outside of the US beginning on March 15.
• The MB System, as the product is known internationally, will be available to consultants and customers in Japan, and exclusively to consultants in most other markets, with those markets making the product available to customers at the end of April.
• Therefore, we do not expect the full benefit of the international launch to have an impact on financials until 4QFY25.

• We are reiterating our Buy rating, projections and $22.50 price target for Betterware de Mexico after reviewing the April catalog.
• As we have seen since 4Q24, the April catalog registered higher YoY SKU levels (up 4%) and pricing (up 12%), as management focused on newness, complete collections and expanding higher end offerings.
• Further, even as the catalog shifts to Summer (with fans, cold drink holders and ice cube trays), the pace of discounting, while up YoY, continues to cool off month to month, with a 160 bp decline in the % of discounted items from March (to 28.2%, a low for 2025).

• In this edition: • ING Group | considering takeover in Italy • Unilever | acquires personal care brand Wild • Alfen | signs a multi-year framework agreement with Abloco Energy

• Back on the 23 December 2022, Skyworth Group (751 HK) announced (another) partial buyback, at HK$3.80/share, a 20.25% premium to undisturbed. On the 28 March, terms were bumped to $5.00/share. 
• At the close of the Offer, the Wong Concert Group held 50.35%, and were no longer subject to the creeper rule. The Group now holds 56.04%
• Yet another Partial Offer has been announced (HK$3.11/share, a 15.19% premium)), which will lift the Group’s stake to 66.45%.  Minimum pro-ration is 37.84%. It is likely to go higher.

• Northern Star Resources (NST AU)‘s acquisition of De Grey Mining (DEG AU) is expected to complete in the next 3 weeks.
• There will be an ad hoc inclusion to the S&P/ASX 200 (AS51 INDEX) and passive buying in Northern Star Resources (NST AU) from a bunch of trackers of different indices.
• The acquisition brings Northern Star Resources (NST AU) close to inclusion in the S&P/ASX 20 Index, but it’s not there yet.

• A recent insight by Brian Freitas signals that BYD (1211 HK)buying from global index trackers is done (more passive buying from HSI/HSCEI trackers may come later this month).
• As of Tuesday, the stock is currently in the middle of a modest pullback, 1 week down, reached a support area where the probability of a bounce is around 50%.
• We are at the start of the month, it may be early to benefit from the passive buying discussed by Brian Freitas, however this pullback could support a buy-the-dips strategy.

• Dada Nexus (DADA US) disclosed a binding proposal from JD.com Inc (ADR) (JD US) at US$2.00 per ADS, a 41.8% premium to the undisturbed price of US$1.41 (24 January).
• The shareholder vote is low-risk (two-thirds voting threshold), as JD.com represents 63.2% of voting power. The dissenting condition (less than 12% of outstanding shares) is waivable. 
• Although the offer is unattractive, this is a done deal. The transaction is expected to close within the third quarter of 2025.

• Appraisal rights are for HLB Life Science holders only. Record date: April 16. Objection: May 28–June 11. Exercise: June 12–July 2. Spread’s fat—over 11% today.
• Swap spread closed at 2.3%. With short selling back, execution looks clean. Classic arb: short HLB Inc, long HLB Life Science, cover with new HLB Inc shares post-merger.
• HLB has a cult-like retail base that follows management blindly. Despite headline cancellation risk, real odds may be lower, meaning the swap spread could be seriously mispriced—prime arb setup.

• Hindware Home Innovation (HINDWARE IN) plans to demerge its consumer appliances division into a separate listed entity.
• Demerger removes loss-making drag, improving profitability and segment-specific valuation clarity.
• Unlocks hidden value; better execution with new CEO with clear growth trajectory may lead further value creation for shareholders.

• ITC Ltd (ITC IN) recently announced the strategic acquisition of Century Pulp and Paper (CPP) from AB Real Estate (ABREL) for INR 3,500 crore on a slump sale basis.  
• This Business Transfer Agreement (BTA) occurs amid an industry downturn marked by surging input costs, subdued demand, and competition from low-priced imports.
• This acquisition significantly expands ITC’s paper segment capacity by 60%, targeting a 30-40% EBITDA per tonne improvement.

• In the US, New York Fed President John Williams said tariffs could produce “more prolonged effects” on inflation, as indirect effects from the new duties “might not be fully felt for a couple of years”.
• Mr Williams added that “there’s a lot of uncertainty about how the economy will evolve and a lot of uncertainty about all the policy actions”, and hence expects the US central bank to keep interest rates unchanged for “some time”.
• Treasuries gained for a second day yesterday on continued safe-haven flows, ahead of US President Donald Trump’s expected announcement of reciprocal tariffs tomorrow.

• In January 2024, SHiDAX Corporation was consolidated as a subsidiary, boosting sales and EBITDA in Q4 FY03/24.
• Cumulative Q3 FY03/25 progress rates: 75.9% sales, 93.7% EBITDA, 84.4% operating profit, 110.5% net income.
• B2C Subscription sales decreased YoY, but segment profit increased due to higher ARPU and cost-efficient acquisitions.

•  -50% Orange Juice Price Implosion After a crazy price surge – orange juice futures traded at the ICE have more than halved since the start of the year.
• While reaching its temporary high of 539 USX in December, the forward contract is now trading at 247 USX.
• The price is now back at levels it was trading at the beginning of 2024. Compared to 2020 futures pricing is still up 150%. (yeah you read that right)

• BYD (1211 HK) raised US$5.6bn in a secondary offering a few weeks ago and the stock is trading a lot higher than the placement price.
• Buying from global index trackers is done, but there will be more passive buying from Hang Seng Index (HSI) and Hang Seng China Enterprises Index (HSCEI) trackers later this month.
• With the release of the God’s Eye advanced driver-assistance system (ADAS), the stock could be added to the Hang Seng TECH Index (HSTECH INDEX) in June, bringing more passive inflows.

• On 27 March, Skyworth Group Limited (751 HK) launched a conditional buyback to acquire a maximum of 350.0m shares (15.67% of outstanding) at HK$3.11, a 15.2% premium to undisturbed price.
• Unlike the previous buybacks, the controlling shareholder can vote. Therefore, while the buyback offer is unattractive, the shareholder vote will pass. 
• Based on the irrevocables, a 100% share minority participation rate implies a minimum proration of 37.84%. The actual proration was around twice the minimum proration for the previous two. 

• Fast Retailing (9983 JP)  is set to report its second-quarter results on April 10, and we see an opportunity to buy ahead of a strong earnings release
• We expect Fast Retailing to post Q2 sales of ¥905bn (+15% YoY), above consensus estimates of ¥881bn. EBIT projected at ¥133bn (+21% YoY), ahead of street expectations of ¥125bn.
• Domestic Uniqlo monthly sales and quarterly results from global peers suggest strong sales momentum. 

• It’s unlikely that the transition to ‘company with audit committee’ will enhance the supervisory function, but it’s likely to speed up the decision-making process by delegating authority to executive directors.
• Instead of achieving 30% female board member and moving to Company with US-type 3 Committees at once, Toyota will implement Toyota’s way firmly with BOD that is half independent directors.
• The only way for Toyota, which faces several governance challenges, to uphold tradition of Toyoda family being at the top of management is to make the returns expected by investors.

• As of December 31, 2024, their network comprised 6,440 teahouses, including 6,284 located in China.
• Their net revenues increased by 844% to RMB4,640.2 million in 2023 from RMB491.7 million in 2022. 
• We anticipate this company to set terms (share size, price range) and debut in the second half of April.

• TEGNA Inc. recently presented its fourth-quarter and full-year 2024 financial results, demonstrating both opportunities and challenges for potential investors.
• The company reported a significant 20% year-over-year increase in total revenue for the fourth quarter, amounting to $871 million, primarily driven by political advertising revenues.
• However, the political advertising performance nearly matched that of the 2020 election cycle, indicating the cyclical nature of this revenue stream.

• Dalata Hotel recently announced a formal sales process. Last few days have been really busy ;ppp and I’ve been using time on the road to conjure my “tin-foil hat” hypotheses and squeezing out whatever spare time I have to eke out this article.
• Before going on, I’d like to highlight that amidst the market chaos, there seems to be a fair few interesting things popping – for e.g. last week, I highlighted DLTR selling off its FD stake and how DLTR deserved a rerating; in other news, Intel has also successfully divested its memory chip business (this time, IP and manpower) over to Sk Hynix, netting a ~1.9b cash infusion and also an indication of focus on its core “less-commoditized” logic chips business.
• Tan Lip Bu also finished acquiring his 25m worth of shares at ~$23.96 per share. Yet, INTC has traded down with the rest of its boys, as the semicon indices continually to get smacked downwards. Exciting times ahead.

• Mitra Adiperkasa reported a solid finish to the year with positive sequential growth in 4Q2024, although it was impacted by the delayed iPhone 16 launch, which reduced its peak quarter.
• MAP Aktif Adiperkasa was the core growth driver, and its 4Q2024 was more seasonally strong at 28% of FY2024, with its regional expansion also helping to drive growth in FY2024. 
• Mitra Adiperkasa remains a core retail proxy for Indonesia, with an increasing regional edge, and stronger growth prospects for FY2025. Valuations look extremely attractive on 9.9x FY2025E PER.

• Installed Building Products reported mixed results for the fourth quarter and fiscal year 2024, reflecting both opportunities and challenges in its various segments.
• During the fiscal year, the company achieved record revenues and profitability, driven by organic growth across its residential markets and a series of acquisitions that expanded its geographic footprint.
• Positive aspects from the earnings discussion include the robust performance in the residential end markets, particularly in single-family and multifamily installations.

• Lifeway Foods anticipates a sale to Danone, with AGM negotiations expected; SpringWorks Therapeutics in buyout talks with Merck KGaA.
• Sage Therapeutics rejected Biogen’s offer, initiating strategic review; Kronos Bio undergoes strategic review post-trial discontinuation.
• Microstrategy trades at NAV premium; OCI N.V. plans asset sales and dividends; Liquidia prepares for drug commercialization.

• A weekly summary of key developments across ECM and Event-Driven names tracked by us across Hong Kong, Australia, New Zealand, Singapore, Japan, Indonesia, Malaysia, Thailand, Korea, India and Chinese ADRs.
• ECM developments: DN Solutions (298440 KS) seeks to raise US$1.1 billion in a KRX IPO.
• Event-Driven developments: Seven & I Holdings (3382 JP), Topcon Corp (7732 JP), ENN Energy (2688 HK), Jinke Smart Services (9666 HK), Sinarmas Land (SML SP), Gold Road Resources (GOR AU). 

• Vesync (2148 HK)’s IFA opines that the Yang family’s HK$5.60 cash offer is fair and reasonable. The IFA does not recommend the scrip option. The vote is on 23 April. 
• Key conditions include approval by at least 75% of independent shareholders (<10% of independent shareholders rejection). The offer price is final.
• The vote is low-risk due to a lack of opposition. At the last close and for the 15 May payment, the gross/annualised spread is 2.9%/28.7%.

• On the 27th December, Vesync (2148 HK), a manufacturer of small home appliances, announced an Offer, by way of a Scheme, from the Yang family controlling ~69.04% of Vesync.
• The Cancellation Price of $5.60/share – declared final – was a 33.3% premium to undisturbed, and above the 2020 IPO price of HK$5.52/share.
• The Scheme Doc is now out, with a Court Meeting on the 23rd April, and expected payment on or before the 15th May. The IFA (Somerley) says “fair & reasonable”.

• Reject Shop (TRS AU), a discount variety store, has entered into a Scheme Implementation Deed with Canadian outfit Dollarama (DOL CN).
• Dollarama is offering A$6.68/share, a 112% premium to last close. The Offer does NOT require FIRB signing off. The Offer has the unanimous backing of both boards.
• The Offer also has the backing of TRS’ largest shareholder, Kin Group (20.8%).  Implementation is expected July 2025. This is done.

• Global Digital Niaga (BELI IJ) booked a strong finish to 2024, driven by its 3P retail and institutional business, although 1P retail and physical stores also performed well. 
• The company continues to see improving take rates in FY2024, whilst its average order value increased through a more favourable product mix, with gross margins and cash flows improving significantly.
• Global Digital Niaga continued to expand its physical stores for monobrand and multibrand stores, adding Huawei as a brand. Valuations look reasonable given growth prospects and progress towards profitability.

• MFE’s €5.70/share offer reflects strategic aims, not a traditional control premium, and values ProSieben near peer multiples amid industry disruption and weak organic growth prospects.
• The deal structure and German takeover law enable MFE to carry out a creeping takeover strategy, allowing it to gradually increase its stake post-settlement without launching a new public offer.
• Estimated net synergies of €1.00–1.39 per share, boosting the deal’s potential strategic return.Market skepticism is visible in the -10.2% gross spread.

• Sariguna Primatirta (CLEO IJ) booked yet another quarter of impressive sequential growth in 4Q2024, hitting another record quarterly revenue, with margins improving at the same time, boosting profits.
• The company opened three factories in 2024 and plans three more in FY2025, with the total to 35 across Indonesia and further extending its scale and reach, and driving growth.
• The main driver for growth will come through general trade, which makes up 70% of distribution, with a factory opening push outside Java. Valuations are attractive versus growth.

• J Front has been pushing ahead with new ways to get younger (and richer) customers into its stores. 
• It recently opened a high end art floor at Matsuzakaya Nagoya, continues to expand its fashion subscription business, and will shortly open the first joint store with Komehyo.
• It is also investing heavily in real estate in key cities as a third major platform to its business.

• With INR 145cr revenue in the FMCG business in Q3FY25, RPSGV has sustained its INR 550cr+ annualized revenue run-rate from the last quarter, which implies it is scaling up well.
• The BPO business (“Firstsource”) has normalized after seeing tough times a few quarters ago. Q3FY25 revenue grew 30%+ YoY and 10%+ QoQ. EBIT margin has been steady at 11% QoQ.
• Within the Sports business, the IPL franchise, Lucknow Super Giants, announced a new captain, Rishabh Pant, under whose leadership there is likely to be more aggression towards result orientation.

• The comparison between Mixue Group (2097 HK) and Guming (1364 HK)’s 2024 annual results highlight how their financial and operational performance diverged sharply.
• Mixue’s vertically integrated operations provide it a strong competitive edge and superior margins while Guming, operating in the mid-priced segment faced fierce competition
• Mixue’s high-quality earnings growth underscores a robust business model that attracts premium valuation multiples.

• This Insight analyses JD.com (9618 HK) option strategies traded over the last five trading days on the Hong Kong Exchange. Strategy highlights and volatility context are provided.
• Bearish strategies dominate trading activity, outnumbering bullish ones by more than 3:1, with long volatility structures and calendar/diagonal spreads being prevalent.
• Long tail events: Several strategies follow a pattern of minimal upfront cost (0.1% premium), targeting a significant payout in case of large price movements within a short timeframe. 

• If you don’t think Seven & I (3382 JP)‘s Standalone Plan has legs to go north of here, or ACT gets its act together,  then you should sell into strength.
• ENN Energy (2688 HK)‘s cash and scrip (into a unlisted H-share-equivalent entity) Offer was not what the doctor ordered.
• Sun Corp (6736 JP) is cheap to its holding in Cellebrite DI (CLBT US). How cheap depends on the form and structure of its eventual exit.

• Macy’s Inc.’s fourth quarter 2024 results reflect a mixture of strategic advancements and continued challenges within a shifting retail landscape.
• First, the positive aspect of Macy’s strategy comes through its “Bold New Chapter” framework, which focuses on enhancing customer experiences, optimizing store operations, and improving merchandising and digital capabilities.
• This plan is seemingly paying off as Macy’s achieved a 0.2% year-over-year increase in comparable sales, marking its best performance in 11 quarters.

• Signet Jewelers Ltd. is currently navigating a complex landscape, balancing strategic restructuring with the need to address short-term operational challenges.
• The fourth quarter of the fiscal year reflected a decline in revenue by 6%, yet adjusted earnings per share (EPS) maintained near previous levels due to significant share repurchases.
• Same-store sales fell by 1.1%, influenced by the absence of a 53rd week from the prior fiscal year, which accounted for an approximate 4-point difference in total sales.

• Target Corporation’s recent financial presentation unveiled a comprehensive roadmap for potential growth, positioned against the backdrop of a mixed retail environment characterized by both challenges and opportunities.
• Target emphasized its differentiated retail strategy, focusing on delivering on-trend, affordable products, aiming to capitalize on its unique brand position in the market often affectionately referred to as “Tarzhay” by its consumers.
• Baptista Research looks to evaluate the different factors that could influence the company’s price in the near future and attempts to carry out an independent valuation of the company using a Discounted Cash Flow (DCF) methodology.

• Abercrombie & Fitch Company delivered strong financial performance in the fourth quarter of fiscal year 2024, marking a successful turnaround and growth trajectory driven by robust sales, improved operating efficiencies, and strategic investments.
• The period ended with notable financial achievements including a 9% increase in net sales year-over-year, translating to $1.58 billion.
• Excluding the impact of the 53rd week in 2023, the net sales growth was an even more impressive 14%.

• REITs, whose main players are regional banks that invest as a bond alternative, tend to stop their market decline when the spread with JGB yields approaches 400 basis points.
• While there is certainly room for REITs to strengthen shareholder returns, the possibility that domestic investors may want stable dividends cannot be denied.
• Other activist investors are watching with interest to see if the shareholder activism approach works in REITs as well, but the main battleground is still listed equities.

• Arcos Dorados Holdings Inc. reported its fourth quarter and full year 2024 earnings, highlighting both strengths and challenges the company faced over the period.
• Arcos Dorados, the largest independent McDonald’s franchisee in Latin America and the Caribbean, showcased resilience in a volatile economic landscape, demonstrating growth across sales channels and operational improvements.
• Baptista Research looks to evaluate the different factors that could influence the company’s price in the near future and attempts to carry out an independent valuation of the company using a Discounted Cash Flow (DCF) methodology.

• The NIFTY Index had rallied quite hard the week before last week, then stalled last week, however its looks like maybe is changing in its trend structure, maybe a breakout…
• However the breakout may have to wait a bit more, as the NIFTY is overbought WEEKLY according to our model: before the uptrend resumes, there will be a pullback.
• Last: as written by AceGama Advisors the WEEKLY options expiry will be moved from Thursday to Monday, starting in April 2025, impacting the market. Read their insight for detailed analysis.

• In this insight, we provide the top 10 stocks picks and key catalysts in the Korean stock market for the two weeks starting 31 March.
• The top 10 picks in this bi-weekly include Orion Holdings, Hyundai Wia, KEPCO KPS, Samsung Electronics, KT, Emart, CJ Logistics, APR, Doosan Enerbility, and HD Hyundai Marine Solution.
• The biggest near-term negative catalyst on the Korean stock market remains tariffs. The final legal outcome on President Yoon Seok-Yeol is expected to be made by the end of April.

• MNSO reported C4Q24 rev.1.6%/2.0%, and non-GAAP EBIT 3.4%/2.0% below our est./cons.. What concerns us more is the quality of the growth;
• In our view, MNSO’s slow same-store-sales-growth (SSSG), overseas investment, and Yonghui’s integration haven’t fully reflected in the price;
• We cut the TP to US$16 and maintain the SELL rating to reflect slower profit growth. The stock trades at 14x 25E P/E vs. a 12% 3 Yr. NI CAGR

• Since its IPO back in 2007, Lululemon always posted double-digit revenue growth every single year.
• While there was plenty of skepticism throughout 2024, they managed to eke out double digit growth last year.
• But 2025 topline guidance of 5-7% implies the era of persistent double digit growth regardless of the economy is likely behind us!

• Innova Captab (1605221D IN) has commissioned a new 11-acre manufacturing facility in Jammu, with capacity for 10.7 bn tablets and 562 mn LVP/respules.
• The plant adds new dosage forms and therapy areas (Penicillin, Penum) and enables strategic domestic-export capacity balancing, with potential ROIC >20%.
• This is not just a capacity bump, it positions Innova for premium exports, higher utilization, and long-term revenue scale-up to INR 14–16Bn from Jammu alone.

• Freshpet delivered a strong performance in the fiscal year 2024, characterized by notable growth in net sales and even more significant improvements in profitability.
• The company’s net sales reached $975 million, marking a 27% increase from the previous year, driven largely by volume gains.
• This was predominantly a result of increased household penetration and buy rates, boosted by strategic media investments and retail expansion.

• Neta Auto, the Chinese electric vehicle (EV) startup, is teetering on the brink of collapse after a funding crisis brought production to a standstill and triggered mass layoffs, leaving its parent company scrambling for a financial lifeline amid rising debt.
• Hozon New Energy Automobile Co. Ltd., which produces EVs under the Neta brand, revealed in February that its much-anticipated Series E funding round had unraveled.
• Originally scheduled to close by Feb. 28 with a planned injection of 4 billion to 4.5 billion yuan ($550 million to $620 million), the deal never materialized.

• ‘Loneliness is the feeling of isolation even when other people are there’ That’s how I feel about being a shareholder of Leon’s Furniture (LNF). Lonely.
• No one talks about it, barring a few (Canadian Value Investor, Greystone).
• 69% of LNF is owned by the Leon’s family and the stock continues to be illiquid despite being a 1 billion + market cap company in Canada.

• Leggett & Platt’s fourth-quarter and full-year 2024 results reflect a challenging market environment with mixed outcomes from restructuring efforts and demand dynamics across its segments.
• Throughout 2024, Leggett & Platt undertook significant restructuring, particularly in its Bedding Products segment, as well as in home furniture, flooring products, and hydraulic cylinders.
• The company exceeded its target for restructuring EBIT benefits, achieving $22 million, which was above the expected $10 million to $15 million, indicating successful execution of the restructuring plans.

• In FY03/24, revenue was JPY39.6bn (+20.8% YoY), operating profit JPY1.2bn (+47.4% YoY), recurring profit JPY922mn (+53.7% YoY), and net income attributable to owners of the parent JPY1.1bn (-21.0% YoY).
• The Japanese leisure and audience entertainment market recovered, including in the live entertainment market.
• In addition, major IT service providers such as LINE Ticket exited the market during the COVID-19 pandemic, reducing competitive pressure and providing a tailwind for the company.

• NIO (9866 HK) is looking to raise around US$450m via a primary placement in Hong Kong.
• The shares haven’t done much this year or ever since they were listed.
• In this note, we will talk about the placement and run the deal through our ECM framework.

• Hugely cash-rich Cookpad Inc (2193 JP) wouldn’t hit my radar except for two things. 1) it was the target of Melco Holdings (6676 JP) chairman Maki-san a few years ago…
• And 2) they did a huge buyback last year which pumped up the stock very bigly. 
• Maki-San appears long gone from the shares, but now they are doing another big buyback. Just as bigly. But there are new nuances this year.

• Tesla’s highly anticipated trial launch of its Full Self-Driving (FSD) system in China has suffered a setback, as some users report not receiving the feature update due to a delay in regulatory approval.
• Tesla China said Monday that it is working to secure government approval for both software and hardware under new national guidelines issued by China’s Ministry of Industry and Information Technology and the State Administration for Market Regulation.
• The company said the trial will resume once all preparations are complete.

• Walgreens Boots Alliance has seen their stock price decimated over the last decade due to competition from E-commerce retailers like Amazon.
• Sycamore Partners is taking Walgreens Boots private in a $24 billion leveraged buyout, their first foray into the healthcare sector.
• Major private equity firms have been cautious of retail buyouts due to potential bad publicity and shifting priorities towards other investments.

This content is sourced through publicly available sources and has been machine generated. Information displayed is for general informational purposes only.

• The Wendy’s Company reported its fiscal 2024 fourth quarter and full-year results, highlighting a range of strategic initiatives and financial metrics.
• The company experienced a 5.4% increase in global system-wide sales on a constant currency basis during the fourth quarter, driven largely by same-restaurant sales growth in the U.S. and internationally.
• This was bolstered by innovative menu offerings and strategic partnerships, such as the collaboration with Paramount on SpongeBob’s 25th anniversary, which contributed significantly to sales.

• Eco-Shop Marketing (ECO MY) is looking to raise about US$226m in its upcoming Malaysia IPO.
• It is the largest dollar chain in Malaysia, as per the number of stores it operates, as of 31 October 2024.
• We have looked at the company’s past performance in our earlier notes. In this note, we discuss latest industry dynamics, conduct a quick peer comparison and discuss the company’s valuation.

• Since the ROE of Japanese companies is lower than that of U.S. and European companies, few companies become the companies of choice for long-term investors to invest in.
• Overseas investors bought significant overbought of Japanese equities in previous year, in the hope that the shift to inflation would trigger an improving ROE as they used their cash reserves.
• Simply using cash on hand for shareholder returns doesn’t create value. To bring investors back, the key is to let them know that it won’t take much to see results.

• Consumer discretionary wallets for alcoholic beverages are less than 2% and affected by economic pressures
• Gen Z is moderating their alcohol consumption but still engaging in zebra striping behavior
• Socializing dynamics are shifting towards more at-home and third space occasions, leading to the rise of RTDs and diverse formats in the industry

This content is sourced through publicly available sources and has been machine generated. Information displayed is for general informational purposes only.

• Meituan reported C4Q24 revenue in-line, and non-IFRS OP miss 7.9%/1.9% vs. our estimate/consensus, due to extra Opex on purchasing GPU, while core biz profitability improved.
• We see membership initiatives and enhancing O2O penetration as the main catalyst in 2025, and the downside risk on competition, social security, and overseas investment are limited.
• We rise TP to HK$196 to factor in the promising OP growth trajectory and keep as TOP BUY in China e-commerce.

• Mister Car Wash, in its fourth quarter and full-year 2024 financial results announcement, reported a strong finish to the year, with significant gains in key financial metrics and operational developments.
• The company delivered a 6% growth in comparable store sales during the fourth quarter, marking its seventh consecutive quarter of comparable sales growth.
• This was largely driven by the successful introduction of the premium Titanium service, and overall revenues for the year grew by 7%, with adjusted EBITDA rising by 12%.

• This Insight analyses Alibaba Group Holding (9988 HK) multi-leg option strategies traded over the last five trading days on the Hong Kong Exchange. Strategy highlights and volatility context are provided.
• These traders tailor structures to risk budgets and take calculated bets. With implied volatility below its median and below realized volatility, all strategies reviewed are long volatility.
• Almost 20% of all strategies are Calendar or Diagonal Spreads. Diagonal spreads can even earn premium in the current volatility environment. A live strategy is examined.

• The NIFTY Index, Nifty Next 50 Index, Nifty Bank Index, Nifty IT Index, Nifty Midcap 150 Index, Nifty100 Low Volatility30 Index and the CPSE ETF rebalance at the close today.
• The round-trip trade across the indices is US$2.6bn and there are 26 stocks with over 1 day of ADV to trade from passive trackers.
• Stocks with the largest impact are Britannia Industries, Bharat Petroleum, Adani Total Gas, Indian Hotels, Jio Financial, IRCTC, Zomato, Federal Bank, Union Bank Of India and Crompton Greaves.

• As reported by Travis Lundy , the Hang Seng Index (HSI INDEX) Committee changed the way float is calculated for Secondary Listings in Hang Seng indices.
• This action is expected to add US$2.7bn of buying to some names- read Travis Lundy’s insight for more details on this.
• The HSI INDEX is currently down 3 weeks, and quite OVERSOLD, buying the dip, at this point makes a lot of sense.

• In the past week, one of the biggest stories in Korea has been the Hyundai Motor Group’s mega $21 billion investment in the United States.
• There is a real concern that Hyundai Motor may need to raise external capital to fund its US investments/share buybacks/dividends in 2027/2028.
• Hyundai Motor (005380 KS) remains one of the most undervalued global auto companies. It is trading at P/E of 4.7x in 2025 and 4.5x in 20026. 

• Chinese EV giant BYD has kicked off 2025 with an aggressive push that’s shaking up the global electric vehicle landscape.
• From launching EVs that can charge in just five minutes to a soaring share price and record sales, BYD is not just catching up with Tesla — it’s pulling ahead on nearly every front.
• In recent weeks, BYD’s stock surged to a record high following the announcement of its ultra-fast-charging Super e-Platform.

• PDD Holdings, Inc. presented its financial results for the fourth quarter and full fiscal year of 2024, showcasing a strategy focused on high-quality development and ecosystem advancement.
• The company reported stable financial performance in the last quarter, closing with a revenue increase to RMB 110.6 billion, a 24% year-over year gain.
• For the entire year, revenues climbed 59% to a total of RMB 393.8 billion, marking a moderation from previous growth rates.

• In this insight, we take a look at the Potential ADDs/DELs for the BSE SENSEX, BSE 100, and BSE 200 Indices in the June 2025 index rebal event.
• As things stand, there could be two index changes for the SENSEX index.
• There could be two ADDs/DELs for the BSE 100 index and eight ADDs/DELs for the BSE 200 index.

• Altria Group reported its fourth quarter and full-year 2024 earnings with several noteworthy developments.
• Financially, the company delivered strong results, primarily supported by its core tobacco operations.
• Altria grew its adjusted diluted earnings per share (EPS) by 3.4% for the full year, maintaining a trend of returning substantial capital to shareholders through $10.2 billion in dividends and share repurchases.

• Viomi announced second half results that beat our expectations on the top and bottom line while presenting continuing operations (Water Systems, Consumables and Kitchen Appliances) that appear to be solidly profitable.
• Viomi has a very strong partner in Xiaomi and the company appears to be looking to grow in new markets by replicating this model to some degree.
• Viomi’s strong balance sheet should enable it to pursue multiple growth strategies (expansion, new products, M&A) over the next 3-5 years.

• Lennar Corporation recently reported its first-quarter results for 2025 amid challenging economic conditions impacting the housing market.
• The company has strategically navigated these headwinds with its focus on consistent volume, efficiency, and an asset-light, land-light business model.
• During the quarter, Lennar’s average sales price decreased slightly to $408,000, with sales incentives reaching approximately 13%, highlighting the pressure on margins to maintain demand amid higher mortgage rates.

• Seven & I Holdings (3382 JP) has published two documents to respond to misinformation and detail its “constructive engagement” with Alimentation Couche-Tard (ATD CN).
• The statements underscore the Board’s serious doubts about securing US antitrust approval. The significant discrepancies in the engagement timeline point to two parties at loggerheads. 
• While the Board claims it is pursuing a dual-track process to create value, the reality is that the process is designed to hinder Couche-Tard’s offer to facilitate the restructuring plan.

• On 10 March, Seven & I Holdings (3382 JP) released a statement about its interactions with Alimentation Couche-Tard (ATD CN). The next day, ATD released its own. They didn’t match. 
• The 7&i spokesperson admitted one technical point, but investors seemed to believe ATD over 7&i. On 13 March, ATD held a presentation in Tokyo. Materials? Unchanged. Earnings comments? Unchanged.
• This morning, 7&i released a document which “corrects the record regarding critical false and misleading claims about 7&i’s engagement with Alimentation Couche-Tard (ACT).” OUCH. The stock fell.

• There have been 14 new listings on the Main Board of the HKEX in Q1. One listing is a transfer from the GEM Board and one is a De-SPAC.
• Of the 14 stocks, we see Mixue Group (2097 HK), Guming Holdings (1364 HK) and Bloks Group (1850960D CH) as potential HSCI inclusions in June.
• There are no lock-up expiries in the stocks ahead of inclusion in Southbound Stock Connect and the low float could take the stocks higher ahead of the index inclusion announcement.

• The Chinese slowdown and JLR’s ICE phase-out pressure near-term margins, but Indian PV growth and EV leadership offer a strong domestic counterbalance.
• Tata Motors is demerging its Commercial Vehicle and Finance arms to sharpen focus and unlock value across its core Passenger Vehicle and JLR businesses.
• Tata Motors is transitioning from a cyclical turnaround story to a long-term structural play on India’s mobility and global EV transformation.

• D’Alba Global is getting ready to complete its IPO in KOSPI in May 2025. IPO price range is from 54,500 won to 66,300 won per share. 
• According to the bankers’ valuation, the expected market cap of the company will be 692 billion won to 842 billion won post IPO. 
• D’Alba Global has one of the best growth rates for sales and operating profits among Korean cosmetic companies in the past four years.

• Since important decisions on REIT management are made by the sponsor companies, governance isn’t functioning. That’s why REITs have been very careful to strengthen their compliance systems and information disclosure.
• For REITs that rely heavily on properties contributed by their sponsors, it is unlikely that other investors would support an activist fund’s advocacy for a change of asset manager.
• The most annoying thing for the sponsor is the change of asset manager. The tactic of this TOB is to extract shareholder returns by addressing what the sponsor company dislike.

• NZME Limited’s strategic review of OneRoof aims for potential separation, with activist Jim Grenon acquiring a 13.5% stake.
• Grenon and Osmium Partners are pushing for board changes and OneRoof’s monetization, suggesting a possible spin-off.
• The sum-of-the-parts valuation estimates NZME’s stock at A$1.49/share, implying a 35% upside from current levels.

• While FY24/12 consolidated financial results paint a challenging environment, the solid achievements in GDO’s mainstay Golf Merchandise Sales business, which accounts for 34% of total consolidated net sales, should not be overlooked.
• The graph below comparing golf gear sales for one of the largest brick-and-mortar retailers ‘Co. A’ with the largest online retailer GDO highlights the success of GDO’s initiatives, GDO turning in +7.3% YoY growth versus Co. A -0.6% YoY. Co.
• A noted in its 1H FY25/6 briefing that for its Golf business (34.8% of consolidated net sales), existing store sales declined YoY, citing weak performance of golf clubs due to differences in new product launches and price reductions. 

• The New York Times Company reported its fourth quarter and full-year financial results for 2024, highlighting solid performance across key operational and financial metrics.
• The company continued to focus on its essential subscription strategy, aiming to expand its subscriber base and diversify its revenue streams.
• In 2024, New York Times Company added over 1.1 million digital subscribers, bringing its total subscriber count to 11.4 million.

• Peer-to-peer (P2P) car sharing is a new and growing industry that competes with traditional car rental companies.
• Rather than renting access to a company-owned fleet (B2C), car sharing allows owners of cars to rent their own vehicles directly to consumers through a platform (P2P) and charges a fee for the services.
• The industry looks to emulate other successful shared economy businesses such as Airbnb, etc., which are platforms for property owners to rent real estate directly to consumers.

• Sun Corp (6736 JP) has declined ~6% in the past month. Its 44.3% stake in Cellebrite DI (CLBT US) is worth ~186% of its market cap.
• Preceding my comments on Sun Corp are the current setup/unwind tables for Asia-Pacific Holdcos.
• These relationships trade with a minimum liquidity of US$1mn, and a % market capitalisation >20%.

• LG Electronics India has secured regulatory approval for its IPO, expected to raise between USD 1 to 1.5 billion. 
• However, it remains unclear whether the company will delay the launch until market sentiment shows further improvement.
• LG Electronics India (123D IN) IPO is a 100% offer for sale by parent and hence the entire proceeds from the IPO will accrue to LG Electronics (066570 KS).

• BYD (1211 HK) posted a record 2024 net profit of 40.25B yuan ($5.55B) as revenue surged 29% to 777B yuan ($107.2B), beating analyst forecasts of $5.47B and $105.6B.
• Notably, BYD’s revenue topped Tesla’s $97.7B reported on Jan. 30. The Chinese automaker is now among the biggest in the world.   
• On March 4, our BYD’s insightcorrectly suggested to BUY the stock below 340 (now trading above 400). This insight will try to determine profit targets for the current rally.

• In today’s Morning Views publication we comment on developments of the following high yield issuers: MGM China, Genting Berhad, Road King, Meituan, AAC Technologies
• In the US, Chicago Fed President Austan Goolsbee said that the inflation impact from tariffs could be transitory, if the duties are limited in scope and there is no retaliation from other countries.
• He added that the Fed is taking a wait-and-see approach for now, albeit he believes rates will be lower 12-18 months from now if inflation remains contained in the long run. Separately, New York Fed President John Williams expressed support for the Fed’s rate pause last week, stating that “the current modestly restrictive stance of monetary policy is entirely appropriate given the solid labour market and inflation still running somewhat above our 2% goal”.

• LXJ International Holdings Limited (LXJIH) is looking to raise at least US$100m in its upcoming Hong Kong IPO.
• As a market leader in the Chinese-style QSR market in China, LXJIH was focused on its self-operated restaurant model for expansion but has recently ramped up its franchise business.
• Post-COVID, LXJIH’s margins have bounced but if LXJIH continues to expand its franchise business while converting self-operated restaurants, there might be pressure on revenue growth and margins going forward.

• Revenue increased by 10.7% YoY to JPY22.2bn, driven by inbound tourism recovery and new restaurant openings.
• Operating profit declined 20.5% YoY to JPY1.3bn due to higher SG&A expenses from overseas expansion and wage increases.
• Gross profit margin decreased to 69.1%, while SG&A ratio rose to 63.1%, impacting operating profit margin.

• We are reiterating our Buy rating and $4 price target for Vera Bradley after visiting stores in Connecticut and Long Island.
• With the arrival of Spring, Vera Bradley continues to tweak the mix/features to return to a growth model.
• For the main line stores, March saw the rollout of another Disney collaboration and the continued success of the Heritage collection, with the shift back to key features (i.e. longer straps, zip enclosures and pockets) also helping drive solid results.

• We believe the stock’s upside is very limited after two buy rating this year.
• In 2024, total revenue grew by 29% and total automobile sales grew by 41%.
• The gross margin of automobile improved more than one percentage point.

• Dollar General reported its fourth-quarter and fiscal year 2024 results, reflecting both strategic challenges and opportunities.
• Net sales for Q4 increased by 4.5%, reaching $10.3 billion, contributing to fiscal year sales surpassing $40 billion, a first in the company’s history.
• Comparable store sales rose by 1.2%, driven by a 2.3% increase in average transaction amount.

• Williams-Sonoma, Inc. presents a nuanced investment case, balancing strong financial outcomes with potential challenges.
• On a positive note, the company concluded fiscal year 2024 with robust results, supported by strategic decisions such as supply chain efficiencies, product innovation, and collaborations.
• For the fourth quarter of 2024, Williams-Sonoma delivered a 3.1% increase in comparable sales, surpassing industry trends, and reported an operating margin of 21.5%, along with earnings per share at $3.28.