In today’s briefing:
- Revisiting Long Ideas: Match Group
- Denso – Strong Overshoot Potential And Only Modest Execution Risk
- Kura Sushi (2695): Detective Conan in April, Dragon Ball in May
- Skylark Holdings (3197): April Sales on an Improving Trend; Over 1,000 Robots in Operation
- 4QFY22 Results Update – Britannia Industries
- TVS Motor Company – Lower RM Cost Drives Beat in Operating Performance
- Exide – Mixed Bag; Strong Revenue Growth, but Margin Weak
- 4QFY22 Results Update – Marico
- Weekly Stock Bullfinder- Week of 5/9
Revisiting Long Ideas: Match Group
- Match is down 52% over the past 6 months and at $71, Match trades at a 5% FCF yield, ~17x Fwd EBITDA, for ~20% growth / ~35% EBITDA margin
- Covid restrictions lifted in Japan (2nd biggest market) should be tailwind for 2H22
- New CEO from Zynga brings unique mobile monetization skillset ideally suited for coming Tinder Coins summer launch.
Denso – Strong Overshoot Potential And Only Modest Execution Risk
- Denso 4QFY22 revenue was strong at ¥1,506bn (+4.8% vs. consensus) but increases in raw material prices resulted in OP of just ¥85bn (-31.8% vs. consensus).
- The company’s FY23 guidance was conservative projecting just ¥6,350bn (+2.2% vs. consensus at +15.1% YoY) but OP guidance was for ¥560bn (+5.3% vs. consensus).
- We expect volume to grow further and the depreciating Yen should favourably impact ASPs next year.
Kura Sushi (2695): Detective Conan in April, Dragon Ball in May
- Same-store sales were in line with the pre-pandemic levels, and our impression is neutral.
- Same-store sales of other revolving sushi formats in April (compared to April 2021 and April 2019) were 105.3% and 104.2% for Sushiro (Food & Life Companies), 108.4% and 94.5% for Genki Sushi, and 103.7% and 87.1% for Kappa Sushi, respectively.
- The number of stores at the end of April was 512 in Japan (+2MoM), 37 in the U.S. (+/-0 MoM), and 45 in Taiwan (+/-0 MoM)
Skylark Holdings (3197): April Sales on an Improving Trend; Over 1,000 Robots in Operation
- Skylark Holdings (3197, the company) disclosed monthly data for April (on a preliminary basis). All of its restaurants resumed normal operations on March 22
- April same-store sales were significantly higher than in April 2021. Although the sales are still weaker than the pre-pandemic levels, the situation has been improving.
- Same-store sales were 110.6% vs. April 2021 (99.0% for March), 182.0% vs. April 2020 (92.8% for March), and 77.4% vs. April 2019 (71.0% for March)
4QFY22 Results Update – Britannia Industries
- Result beats expectations; but near-term outlook challenging
- Sales in line; margins ahead of estimates BRIT’s consolidated sales rose 13.4% YoY to INR 35.5b (inline )in 4QFY22.
- Highlights from the management commentary -forward commitments had helped protect margins in 4QFY22.
Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.
TVS Motor Company – Lower RM Cost Drives Beat in Operating Performance
- Invests ~INR14.2b in FY22 on acquisitions, subsidiaries, and associates
- Strong mix drives realization and margin –Revenue/EBITDA/adjusted PAT grew 4%/4%/-5% YoY to INR55.3b/INR5.6b/ INR2.75b in 4QFY22. The same grew 24%/36%/47% YoY in FY22.
- Key takeaways from the management interaction – Its positive FY23 outlook is driven by a normal monsoon and low impact of further COVID waves.
Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.
Exide – Mixed Bag; Strong Revenue Growth, but Margin Weak
- To invest in Li-ion cell manufacturing without PLI incentive
- Operating leverage partially offsets cost inflation – Revenue grew 16% YoY to INR34.1b, while EBITDA/PAT fell 15%/ 8% YoY to INR3.5b/INR2.25b in 4QFY22. The same grew 23%/3%/ 11% YoY in FY22.
- Highlights from the management interaction – EXID has set up a wholly-owned subsidiary – Exide Energy Solutions, which will house its greenfield multi-gigawatt hour Li-ion cell manufacturing facility. It is in advanced talks for procuring a land parcel in Karnataka.
Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.
4QFY22 Results Update – Marico
- Result in line; material cost outlook benign – MRCO’s 4QFY22 result was in line our estimates.
- Performance in line with our estimates – Consolidated net sales grew 7.4% YoY to INR 21.6b (inline) in 4QFY22.
- Highlights from the management commentary – International business reported double-digit growth in constant currency (CC) for the fifth consecutive quarter.
Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.
Weekly Stock Bullfinder- Week of 5/9
- Lost in all the hoopla of the annual Berkshire Hathaway annual meeting this past year was the significant investments Warren Buffett has made over the past 6 months in the oil and gas energy sector.
- MGP Ingredients, Inc., together with its subsidiaries, produces and supplies distilled spirits, branded spirits, and food ingredients.
- The Chemours Company provides performance chemicals in North America, the Asia Pacific, Europe, the Middle East, Africa, and Latin America
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