Consumer

• The New/Better A-H Premium Tracker has tables, charts, measures galore to track A/H premium positioning, southbound and northbound positioning/volatility in pairs over time, etc.
• SOUTHBOUND flows were net negative and NORTHBOUND flows a decent buy. AH premia on average fell, but liquid pairs saw AH premia rise. Chinese/HK shares shellacked.
• Watch the SOE stock price KPI space. Wouldn’t be short SOEs vs Privates on H/A basis. Low-hanging fruit with some SOEs having large cash balances.

• The Quiddity Mainland Connect NORTHBOUND Monitor. Like the A/H Premium Monitor and HK Connect SOUTHBOUND Monitor. Lots of Flows/Position Tables and Charts with which to play.
• Last week saw NORTHBOUND net BUY RMB 9.9bn of A-shares on very strong average activity after +12.1bn RMB the week before. Some National Team buying this week. 
• Renewables selling was tempered. Energy and Finance saw net selling. Industry and Tech saw large net buying. Relatively larger net Shenzhen buying later in the week as stocks fell hard.

• Netflix, in their recent Q4 2023 earnings call, highlighted key developments that signal both progress and future challenges for the company.
• The firm elaborated on its partnership with WWE, where Netflix airs live WWE events.
• As per co-CEO Theodore Sarandos, fans of WWE have lauded this move, many of whom Netflix assumes were underserved previously.

• Since the introduction of the Corporate Governance Code, the hurdle for listed companies to fulfill their responsibilities has become higher, which is why more managers are choosing to go private.
• While some of companies with large market capitalizations that overseas investor engagement extends to are showing promise for change, many others are failing to step up management to create value.
• TOPIX’s rise has been mainly driven by an increase in the number of companies rather than an increase in stock prices. The market should become higher in quality through de-listing.

• Singapore-based agritech startup DayaTani has raised US$2.3 million in a seed funding round led by Ascent Venture Group with participation from KBI Investment, MDI Ventures, Northstar Ventures, BRI Ventures, and Gentree Fund.
• Founded in 2023, DayaTani works to enhance yields for Indonesian farmers, operating research and development sites across the Java island that focus on horticulture and grain crops.
• The company is developing hardware and software including data science models for more accurate recommendations, such as what fertilizer to use, based on real-world conditions.

• Aequitas Research puts out a weekly update on the deals that were covered by the team recently along with updates for upcoming IPOs.
• On the IPO front, Amer Sports (AS US) was priced below its range, while Thai Credit Bank PCL, managed to get enough support to pull thru. 
• Given the earnings season, there weren’t many placement apart from Indus Towers (INDUSTOW IN) and Metals Acquisition (MTAL US)‘s CDR offering. 

• This is our first report on D.R. Horton, one of America’s largest homebuilders.
• The company reported solid first quarter results for the fiscal year 2024.
• The company highlighted a promising increase of net sales orders by 35% from the previous year’s quarter.

• Based on the information shared during the recent earnings, Procter & Gamble has demonstrated solid performance, accomplishing significant organic sales growth and market share results despite a challenging operating environment.
• A diverse portfolio, combined with strong steps in innovation and sustainability, positions the company for continued success.
• Notably, Procter & Gamble reported a strong quarter with 4% growth in organic sales and a 16% increase in core earnings per share.

• Ferrari N.V. (RACE US) continued its stellar quarterlies, showing no signs of a slowdown, with Q4 2023 revenue/profits increasing 11.3%/34% YoY.
• FY24 will see the newly launched Purosangue become 20% of the product mix, and personalization trends continue with a mid-single-digit price hike. Ferrari Lifestyle brand will continue strong growth.
• Trading at 48x/41x FY24e/25e, the stock seems expensive, but growth at a >25% ROCE seems highly probable in the not-to-distant future.

• Due to a reallocation of resources, we are terminating coverage of Regis Corporation (RGS).
• Our previous rating, price target and estimates for Regis Corporation (RGS) should no longer be relied upon.
• Historical disclosures will be provided upon request.

• Lucror Analytics’ ESG Scores are based on a 3-tiered scale and are adjusted for Controversies (if applicable).
• We assess Merlin Entertainments’ ESG as “Adequate”, in line with the Environmental, Social and Governance scores. Controversies are “Immaterial” and Disclosure is “Weak”.
• Merlin Entertainments is a global leader in the branded, location-based entertainment business.

• CyberAgent Inc (4751 JP) reported 1QFY09/2024 results yesterday. Revenue increased 15.2% YoY with OP increasing 12.4% QoQ, and beat consensus estimates by a huge margin.
• All three business segments have shown strong improvement, with newly released gaming title  “Jujutsu Kaisen Phantom Parade” driving growth for Games business.
• CyberAgent’s (CA’s) share price moved up by about 4% following earnings announcement and seems that the worst is over for the company.

• GoTo (GOTO IJ) has legally completed the transaction to sell 75% of Tokopedia to TikTok, paving the way for higher growth and improving profitability, without the need to subsidise growth. 
• The company will continue to benefit from the new Tokopedia’s core GMV growth without having to provide funding, with the benefit of a larger total addressable market. 
• GoTo has achieved positive adjusted EBITDA in 4Q2023 beating expectations but financials should improve further in 2024 although resources will be focused on growing on-demand services, and especially food delivery.

Rakuten Group has launched a USD 1.8 bn 144A/RegS three-year notes offering with a coupon of 11.25% at 97.83, yielding 12.125%. The deal was upsized from USD 1.0 bn. Proceeds from the transaction will be used to fund a concurrent tender offer for the company’s two USD 2024 bonds.

The tender offer is for the 10.25% 2024s (USD 950 mn outstanding) and 3.546% 2024s (USD 800 mn). The tender cap is set at the size of the notes offering, which would be enough to buy back all the outstanding 2024 bonds. The tender consideration is USD 1,006.76 per USD 1,000 principal for the 10.25% ’24s, and USD 956.75 for the 3.546% ’24s. The early tender consideration is USD 30 per USD 1,000 principal.

• Soybean continues to face bearish outlook with supply surplus and lagging demand.
• Soybean price reached a 2-year low this month, with some using the bargain prices as a buying opportunity.
• US exports lag but recent uptick in large export sales suggests the availability of buyers at these prices.

• The fact that only 7% of companies disclosed their cost of capital disappoints investors who had hoped that the “TSE request” would change management’s mindset to become more share-price conscious.
• The average ROE of listed companies declined slightly. This indicates that they haven’t been able to find effective investments to raise business profitability and that shareholder returns have been inadequate.
• The ROE trend does not indicate a significant change in management’s mindset, so this will be a major issue if the stock price moves lower to the June AGM season.

• India’s beauty and personal care market is expected to hit US$30 billion by 2027. While the segment as a whole is thriving, beauty ecommerce penetration in Tier 2 and Tier 3 cities suffers from long delivery periods as well as issues with product authenticity and quality.
• BuyEazzy, a beauty ecommerce platform, aims to solve this by leveraging the trust between neighborhood store owners and consumers.
• The startup has raised over US$4.2 million in a series A round led by Info Edge Ventures, with participation from existing investors Incubate Fund Asia and M Venture Partners.

• Motorist Motorist, a Singapore-based automotive tech firm, has raised a strategic investment from Tokyo Century Leasing (Singapore), a subsidiary of the Japanese auto financing group.
• The startup did not disclose the round’s size but said that it was raised at a US$60 million valuation.
• Founded in 2015, Motorist facilitates vehicle-related transactions, including car valuations, second-hand car listings, and applications for loans and insurance.

Lucror Analytics Morning Views comprise our fundamental credit analysis, opinions and trade recommendations on high yield issuers in the region, based on key company-specific developments in the past 24 hours. Our Morning Views include a section with a brief market commentary, key market indicators and a macroeconomic and corporate event calendar.

• Alam Sutera Realty
• Lippo Malls Indonesia Retail Trust
• Vista Land & Lifescapes
• Wynn Macau Ltd

• The review period for the Nikkei 225 (NKY INDEX) March rebalance ends yesterday. There could be three changes at the rebalance with sector balance in focus.
• Depending on the changes, passive trackers will need to buy between 1.3-19x ADV (7.1-24% of real float) on the inclusions and sell between 3.5-47x ADV on the deletions.
• Fast Retailing (9983 JP) avoids capping in March, passives will buy Nitori Holdings (9843 JP), and 25 stocks have over 0.5x ADV to sell as part of the funding trade.

• L’Occitane (973 HK) announced a strong 3QFY24 operational update last night.  Share price is up 7% today and up 36% since interim results announcement late November last year.
• Sol de Janeiro, the Brazilian-inspired premium body care brand, continued to shine in the quarter, growing 199% at reported sales and 214% at constant currency. 
• Recommend to take advantage of the current weak sentiment on such companies trading on the HK stock exchange but are actually not reliant on China in terms of business fundamentals.

• Amer Sports (AS US) raised around US$1.3bn in its US IPO, after pricing its IPO below its initial range, as per media reports.
• Amer Sports is a sports and outdoor brands company making clothing and other sporting equipment for use in snow sports, running, climbing, baseball, american football, tennis and other sports.
• We have looked at the company’s performance and valuation in our past note. In this note, we talk about the trading dynamics.

• Ginebra San Miguel (GSMI PM) is a monopoly in the Philippines, with over 95% of the gin market. It has a 10 Revenue CAGR of 14%. 
• The company has experienced margin expansion due to premiumization and operating leverage on SG&A, the former of which is likely to continue in the future with new premium gin launches.
• There is value in the name trading at 7x PE, with >20% of the market cap in cash and a 7.3% dividend yield predicated on a 50% payout ratio. 

• Ultrajaya Milk (ULTJ IJ) is back to the boil in terms of sales growth for both its dairy and carton tea businesses, which both benefit from a nominalisation of mobility. 
• The company’s margins have improved in the dairy business as cost pressure has abated with falling powdered milk prices. Competition has picked up but the overall market is growing sufficiently. 
• Ultrajaya Milk will open a new distribution centre in 1Q2024, which should help to drive growth plus it looks to launch new product categories in 2024. Valuations are attractive.

Key points (machine generated)

• Liverpool is a major player in the financial services industry in Mexico and offers credit cards.
• The company has a strong presence in retail, real estate, and financial sectors, focusing on expanding its reach and providing a diverse range of products and services.
• Liverpool has incorporated e-commerce and implemented a new logistics platform to strengthen their supply chain and accommodate more clients, showcasing their dedication to innovation and customer satisfaction.

This article is sourced from an online content aggregator through publicly available sources and is displayed below for general informational purposes only. This article was originally published 3 months ago on Value Investors Club.

• This is our first report on e-commerce player, Global-e Online Ltd.
• The company delivered decent results for the third quarter of 2023, marked by significant growth in Gross Merchandise Value (GMV) by 35% and an Adjusted EBITDA increase by 76%.
• A key determinant of this success was their improved profitability margins and comprehensive cost control measures, alongside strategic advancements across their operations.

WPP’s capital markets day (CMD) focused on the combination of creativity and AI at scale and how these can be leveraged to boost clients’ businesses. Outline Q423 performance figures were given, along with updated forward guidance, including on restructuring costs and potential payback. We expect market expectations to be broadly unchanged. The overarching narrative of consolidation and simplification, common data platforms and standardised reporting, is coherent and supports the projected margin expansion. To be really convincing, though, top-line growth needs to exceed the 3% indicated, which depends on better performances in both Media and Creative. The rating remains undemanding.

Smiths News’ trading update highlights the resilience of its business model in a tough macroeconomic environment, with FY24 results expected to be in line with consensus. As a reminder, our 2024e PBT forecast stands flat at £33.4m despite an anticipated 6% y-o-y decline in revenue to £1.0bn, attributable to management’s tight control of the business and the ongoing annual efficiencies being delivered. Smiths has renewed several long-term publisher contracts in the past year, which could imply visibility over c 74% of annual revenues to 2029, with potential for expansion. This should further bolster the company’s cash-generative business model and underpin the sustainability of the business in the long term.

• 2QFY24 (December) ongoing EPS was $0.10 versus ($0.07) in 2QFY23 and ahead of our $0.04 estimate.
• Ongoing EBITDA was $3.1MM in the quarter, well above the $0.8MM in 2QFY23 and ahead of our $2.5MM estimate.
• EBITDA margins of 6.0% exceeded our 4.6% estimate.

• Alibaba Changed its Tmall Taobao business unit from three centers to six departments.
• We believe the change means Alibaba is moving its focus from cost cut to revenue growth.
• We set the stock upside at 26% and the price target at HK$91. Buy.

• Ola Electric is looking to raise about US$1bn in its upcoming India IPO.
• Ola Electric Mobility is a vertically integrated pure EV player in India with manufacturing capabilities for EVs and EV components, including cells.
• In this note, we talk about the not-so-positive aspects of the deal.

• Ecuador’s crisis, driven by violence and narco-gang threats, impacts the global seafood supply chain, especially the lucrative shrimp exports sector.
• Resilient amid challenges, India holds its position as the second-largest global shrimp producer, balancing opportunities and persistent challenges in logistics and competition.
• Investors urged caution in the Indian seafood boom, yet potential opportunities arise from Ecuador’s supply disruptions, with reduced import duty enhancing India’s competitiveness.

• FirstCry (0172540D IN), India’s largest multi-channel retailing platform for mothers’, babies’ and kids’ products, has filed for a US$700 million IPO. 
• In Brainbees Solutions (FirstCry) IPO: The Bull Case, we highlighted the key elements of the bull case. In this note, we outline the bear case.
• The bear case rests on the worrying trend of India’s KPIs, margin pressures, cash burn, and deteriorating balance sheet strength. 

Key points (machine generated)

• The litigation industry is filing lawsuits against companies that manufacture consumer headphones, including major players like Apple, Bose, and Skullcandy.
• The company in focus has filed lawsuits against several headphone manufacturers and has settled with Apple and Plantronics, earning around $11.0 million in net proceeds.
• Despite being in a declining industry, the company is currently trading as a net-net and has hidden asset value, suggesting potential upside value of up to 75%, with a downside value only slightly lower than its current levels.

This article is sourced from an online content aggregator through publicly available sources and is displayed below for general informational purposes only. This article was originally published 3 months ago on Value Investors Club.

• If the ISS ROE criteria, which seems somewhat slow, were to be resumed, many companies would still be below 5%. However, how many companies are feeling threatened?
• About 40% of the companies have large shareholders holding more than 20% of their shares, which is one reason why many companies do not feel a sense of threat.
• Domestic institutional investors should apply the Proxy Voting Guidelines more strictly to companies that do not make maximum efforts to increase their ROE.

Key points (machine generated)

• O’Reilly Automotive is a retail company specializing in automotive aftermarket parts and services.
• The company has over 6,000 stores in the US and Mexico, making it one of the largest retailers and suppliers in the industry.
• O’Reilly Automotive offers both do-it-yourself and professional services for a wide range of domestic and imported automobiles.

This article is sourced from an online content aggregator through publicly available sources and is displayed below for general informational purposes only. This article was originally published 3 months ago on Value Investors Club.

• Aeon Co Ltd (8267 JP) owns 13% of Tsuruha Holdings (3391 JP). Oasis owns 13% too. Oasis ran a governance campaign but lost last summer’s AGM. Aeon supported Tsuruha.
• Tsuruha shares popped in November when Tsuruha said it was looking at its strategic options. BBG reported PE firms were circling. Now Aeon wants to buy Oasis’ stake. 
• That would put Aeon in a near-blocking position without consolidating. And it would mean minorities stayed minorities. The real question is whether this is what Tsuruha wants.

• The “MBO” for Benesse traded through terms from the 6th day post-announcement onwards. 37% total traded since announcement, 20% since that 6th day. 
• The deal as announced 10 November was entirely too cheap. It was somewhat egregious if you look through the balance sheet. Plus there was a free museum on top.
• But to no avail. There is no bump. There have been no activists peeping above the parapet (yet). It isn’t impossible to block, but if nobody shows their face…

• The change in the dividend payment system in Korea in 2024 is likely to result in some attractive “double dividends” opportunities.
• According to the Korea Exchange, there are seven stocks that have changed their dividend record dates policy last year and also that pay quarterly dividends. 
• Hyundai Motor (005380 KS) (common) provides a dividend yield of 5.8% and Hyundai Motor (005385 KS) (pref) provides a dividend yield of 9.6% at current prices.

• Astra International has seen an aggressive sell-off on fears of increasing competition from the EV space as more operators enter the Indonesian auto market, with the most recent being BYD.
• The company has successfully held its market share at 56% in FY2023 and has launched several EV models, mostly hybrids,  as adoption levels for BEVs remain low.
• Management remains confident that FY2024 will be a stable year for both 2W and 4W, with overall EPS only set to decline slightly but valuations are now compelling.

• In this insight, we take a look at the names leading the race to become ADDs/DELs for the T50 and T100 Indices for the March 2024 index rebal event.
• I expect one change for the T50 index and two other changes for the T100 index.
• One of the T100 changes also has implications for the TDIV index flows in March 2024.

• There are a few stocks in Korea that have outperformed/ underperformed their peers and could be added to or deleted from global passive portfolios next month.
• There could be buying in EcoPro Materials and Hanjin KAL while Hotel Shilla, Pearl Abyss, F&F, Hyundai Mipo Dockyard, Hanon Systems and Jyp Entertainment could be sold.
• There will be a lot of flow on the stocks and passive trackers will need to trade over 7 days of ADV in most stocks.

• Benesse Holdings (9783 JP) notes that the pre-condition for EQT-backed MBO has been satisfied. The offer price remains unchanged at JPY2,600 per share, a 45.1% premium to the undisturbed price.
• EQT has noted a possibility of extending the tender offer close from 4 to 13 March, which suggests a limited appetite to bump the offer.
• The shares are trading 1.3% above terms. A 51% minority acceptance rate and no competing bidder indicate an unfavourable risk/reward profile – a 27% downside on deal break. 

• We believe Mixue’s low prices are fit for the current weak economy.
• Any “freshly made” price lower than Mixue’s will compete with bottled drinks.
• We also believe low rental is the key for Mixue’s low prices.

• E Mart Inc (139480 KS) has been a strong outperformer this year (up 5.6% YTD) versus KOSPI which is down 5.8% in the same period. 
• We expect E Mart to outperform the market in the rest of 2024 driven by two major factors including “open on Sundays” policy and focus on low P/B stocks. 
• E Mart is trading at P/B of 0.2x versus Coupang which is trading at P/B of 8.3x. E Mart is more attractive than Coupang, especially considering the recent catalysts. 

• Ola Electric is looking to raise about US$1bn in its upcoming India IPO. 
• Ola Electric Mobility is a vertically integrated pure EV player in India with manufacturing capabilities for EVs and EV components, including cells.
• In this note, we talk about the positive aspects of the deal.

• On Friday 26 January, NAFCO Co Ltd (2790 JP) announced Q3 earnings and a large Buyback Program to run from 29 January through 31 March.
• While the company is having A Very Bad Year, this buyback raises obvious questions. The size is interesting given the float and the shareholder structure. 
• Those interested in SmallCap Events might take a look. There are very short-term and slightly longer-term implications.

• The situation at Paris Miki has been relatively non-salutary the last many years til 2022. The stock has underperformed peers in sales growth and has dropped sales points. 
• The company has a decent relationship with one of its main suppliers, global eyewear giant Luxottica Group (LUX IM), which just added to their stake recently, aggressively. 
• The company is getting slow-kicked out of TOPIX, but revival appears in the works. It kind of looks like a setup for an MBO.

• This is our first report on global hotels major, Choice Hotels International.
• The company’s CEO, Patrick Pacious, and CFO, Scott Oaksmith, provided details on their financial results and strategic initiatives, including the proposed acquisition of Wyndham Hotels & Resorts.
• In this report, we have carried out a fundamental analysis of the historical financial statements of the company.

• This is our first report on Natura &Co, a multinational cosmetics and personal care company.
• The Wave 2 roll-out in Brazil did, however, have positive results, showing combined year-on-year revenue growth in certain categories.
• In this report, we have carried out a fundamental analysis of the historical financial statements of the company.

• It will be useful for investors if timely disclosure information, which has large market impact but is still disclosed in English by half of companies, is disclosed in English simultaneously.
• By limiting the TSE policy to documents that are already disclosed in English by many companies, there is concern that other high-demand documents may not be disclosed in English.
• An analysis of English disclosure status and value creation indicators shows that many companies, even those with high profitability and high stock valuation, are not ready for disclosure in English.

• This is our first report on Marriott Vacations Worldwide.
• On the positive side, contract sales across Europe and Asia Pacific increased by a notable 42% year-over-year proving the company’s strong international growth.
• Another positive aspect is the successful launch of the Hyatt Vacation Club brand and the new BEYOND program, which increased the number of travel offerings for Hyatt Vacation Club owners.

• 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    

• This is our first report on Casey’s General Stores.
• The company’s performance in the previous quarter remains solid as it delivered strong second-quarter results.
• In this report, we have carried out a fundamental analysis of the historical financial statements of the company.

• This is our first report on apparel major, American Eagle Outfitters.
• In the third quarter of 2023, American Eagle Outfitters achieved record revenue of $1.3 billion, buoyed by both strong in-store performance and a 10% growth in its digital channel.
• In this report, we have carried out a fundamental analysis of the historical financial statements of the company.

• This is our first report on Hilton Grand Vacations Inc (HGV).
• This acquisition is part of Hilton Grand Vacations’ strategy to enhance business resilience and long-term value, suggesting new growth avenues.
• However, the company faced challenges in the third quarter, primarily due to the impact of wildfires on its Maui business.

• This is our first report on fragrance and fragrance related product provider, Inter Parfums Inc.
• The company’s Q3 2023 results painted a picture of a company capitalising on the strength of the global fragrance market.
• The total sales growth the company recorded was an impressive 27% year to date.

• This is our first report on eye health major, Bausch + Lomb Corporation.
• The company’s Q3 2023 Earnings Call reported an 8% increase in revenue, growth attributed to strengths across its well established and emerging brands that cover the whole spectrum of eye health.
• In this report, we have carried out a fundamental analysis of the historical financial statements of the company.

• This is our first report on television broadcasting and digital media major, Nexstar Media Group.
• The company maintained strengths in crucial areas despite year-over-year declines in cyclical political advertising and net distribution revenue impacts resulting from negotiations with DirecTV.
• Due to the favorable terms of these agreements and upcoming renewals, the company anticipates high-margin distribution revenue growth in future periods.

• This is our first report on Toll Brothers.
• The company recorded a strong performance for the fourth quarter of Fiscal Year 2023, despite challenges such as high mortgage rates, global unrest, and fears of a recession, delivering 2,755 homes and yielding $2.95 billion in home sales revenues.
• Similarly, for the full year, the company delivered 9,597 homes at an average price of around $1.03 million, bringing the total homebuilding revenues to a record $9.9 billion.

• As I warned, troubled Q4 results were worse than investors expected, even with further drops in already plunging market expectations following disappointing deliveries dubiously called a “beat.”
• Even numbers as reported were weaker than reported when I stripped out subsidies and accounting boosts which mask underlying trouble—as is typical with Tesla (see attached model).
• Tesla continues to foster the false impression that it’s healthier, more profitable and more successful than it is, which greatly overstates its ability to weather the storm already upon it.

• We are initiating coverage of Starco Brands, Inc. (“Starco” or the “Company”), an emerging owner and marketer of branded consumer goods, with a Buy rating and price target of $0.25, or 26X our December 2024 Adjusted EBITDA.
• Starco’s stable of brands includes: Art of Sport body and skincare products, Skylar hypoallergenic fragrance and beauty products; Soylent plant-based food products, Whipshots vodka infused whipped cream aerosols and Winona butter flavored popcorn spray.
• As such, we view STCB as a rapidly growing owner of highly differentiated brands, with the business model to register consistent and strong overall top and EBITDA returns and are initiating coverage of STCB with a Buy rating and $0.25 price target.

Britvic delivered an encouraging start to FY24 with robust Q124 results that showed good revenue progression, reflecting the strength of its brand portfolio. Group revenue growth of 8.1% was driven by positive trends in both price and volumes and was broad-based across Britvic’s geographies, continuing the positive momentum from FY23. Particularly strong growth in Brazil reflects the success of the Extra Power acquisition. Britvic reported robust trading over the important Christmas period, with revenue growth of 12.1% and volumes up 6.4% in December. The company continues to invest in its brands, including a refresh of Pepsi, and consequently is confident in achieving FY24 market expectations.

Dowlais Group’s shares trade at a significant discount to our fair value. We have lowered our forecasts due to reduced expectations for automotive production and currency impact, but the key to unlocking value remains the group’s margin trajectory. We expect management to confirm that these targets (pre-central cost operating margin over 10% against 7.1% forecast for FY23) remain on track with the impending maiden set of results.

Key points (machine generated)

• Lamb Weston’s stock price has dropped by about 30% since July 2023 due to market concerns regarding the potential impact of GLP-1s on consumer consumption and caloric intake behavior, particularly in the greasy fried foods category.
• Despite this decline, experts believe it is an overreaction and a good opportunity for investors. Lamb Weston is considered a high-quality business with strong pricing power and long-term earnings growth potential.
• The stock decline is attributed to misunderstandings, including reports of volume decline and concerns about demand and pricing power, which are not accurately reflecting the company’s true prospects.

This article is sourced from an online content aggregator through publicly available sources and is displayed below for general informational purposes only. This article was originally published 3 months ago on Value Investors Club.

• Fujitsu General (6755 JP) came out with an ugly Q3 and ugly full-year forecast change. It appears there is lots of inventory-clearing in the channel in addition to macroeconomic headwinds. 
• The split is a little difficult to discern, but the reason for channel-clearing makes a lot of sense from the distributor side. How long it lasts hard to know.
• This creates the impetus for more cost-cutting/restructuring measures before a delayed v-bound to March 2025. Fujitsu STILL wants to sell. It may make extraordinary proposals to get it done.

• New Oriental Education & Techn (9901 HK) reported better than expected FY2Q24 results last night, with sales up 36% yoy and net profit up 183% yoy.
• The company further guided a 42-45% sales growth in FY3Q24, well above market consensus. 
• The visibility for the next 2-3 years is actually quite high post-“double reduction” policy.

• Investment firms are using ten east to diversify their personal portfolios
• Business Breakdowns is a series of conversations with investors and operators diving deep into a single business
• John Reardon from Collectibility discusses what makes Patek Philippe such a special brand, including its history, craftsmanship, and exclusivity.

This podcast is sourced from an online content aggregator through publicly available sources and is displayed below for general informational purposes only.

• Yesterday, five companies disclosed dividend record dates and amounts. Hyundai Motor set record dates before March futures expired. Hyundai Motor offers single stock futures, presenting arbitrage opportunities.
• Daily updates and monitoring of dividend arbitrage spread are crucial. Despite limited English support, KLCA webpage proves effective with prompt updates, simplifying the process.
• KLCA webpage offers real-time updates and intuitive layout, ideal for dividend arbitrage trading preparation in the Korean market.

• Cello World Limited (CW IN) is a renowned company in the consumer products market. The company primarily operates in houseware, stationary and moulded furniture industry.
• The promoters recently undertook a major corp. restructuring post which several promoter entities were acquired by CWL. This has led to abnormally high ROCEs.
• Other forensic takeaways pertain to RPT, poor cash management, mysterious sale proceeds of PPE, subsidiaries audit, etc.

• Haier Smart Home (6690 HK)‘s management is confident about the FY24 outlook, with net profit growth of 12-13% can be sustained.  
• Casarte will continue to lead with 10-15% revenue increase. There is room for further margin expansion led by overseas markets and process optimisation in the domestic market.
• The plunge in real estate market does not have a material impact on sales and HSH is positive on replacement/upgrade demand. Its FY24F PER of 10.1x is undemanding.

• FirstCry (0172540D IN), India’s largest multi-channel retailing platform for mothers’, babies’ and kids’ products, has filed for a US$700 million IPO. 
• The substantial shareholders are Softbank Group (9984 JP) Vision Fund (25.55% of shares), Mahindra & Mahindra (MM IN) (10.98%), Premji Invest (10.36%) and Supam Maheshwari – founder and CEO (5.95%).
• The bull case rests on growing addressable markets, strong market positioning, robust GMV growth and strong organic growth.   

• This is our first report on electronics major, Whirlpool Corporation.
• The company delivered a solid third quarter performance in a challenging macro environment, supported by satisfying North American growth and improved cost-management measures.
• The company also successfully achieved $300 million in cost takeout actions, a performance that charts Whirlpool on course to deliver over $800 million of cost takeout actions in 2023.

• This is our first report on cruise operator, Norwegian Cruise Line Holdings.
• The company achieved record revenue, meeting or exceeding the guidance on all key metrics.
• In this report, we have carried out a fundamental analysis of the historical financial statements of the company.

• It is premature to start discussions on stopping raising the hurdles of the Corporate Governance Code when Japan’s boards are not dominated by a majority of independent directors.
• If listed companies are left to voluntarily improve their corporate governance practices, differences in corporate governance practice efforts among listed companies are expected to widen.
• Companies with high percentage of foreign shareholders, primarily those with large market capitalization, are expected to continue to improve their corporate governance practices through engagement by overseas investors. vice versa