In today’s briefing:
- Chery Automobile IPO: The Bull Case
- Asian Dividend Gems: Mars Group Holdings
- China Healthcare Weekly (Sep.7)- Device Inflection Point, WuXi XDC Placement, MIXUE’s Lock-Up Expiry
- Bath & Body Works in College Bookstores: Can This Bold Move Capture Gen Z?
- Gap Enters Beauty Battle: Will Makeup Save The Brand?
- Ollie’s Bargain Outlet Revealed: What Competitor Bankruptcies Mean for Its Expansion Plans!
Chery Automobile IPO: The Bull Case
- Chery Automobile (CH3456 CH), a Chinese automobile manufacturer, has secured HKEx listing approval for a US$1.5-2.0 billion IPO.
- Chery is the second largest Chinese domestic brand passenger vehicle company, and the 11th largest passenger vehicle company globally.
- The bull case rests on market share gains, encouraging NEV segmental performance, good margin profile and cash generation.
Asian Dividend Gems: Mars Group Holdings
- Mars Group Holdings has three main business units including Amusement related (including pachinko/pachislot peripherals), Smart Solutions, and Hotels/restaurants related.
- It trades at P/E of 8.5x, P/B of 0.8x, and EV/EBITDA of 2.3x. Net cash is 48% of its market cap.
- Its sales, gross profit, and operating profit increased by 180%, 146%, and 680%, respectively from FY22 to FY25. However, it had a disappointing results in FY1Q26.
China Healthcare Weekly (Sep.7)- Device Inflection Point, WuXi XDC Placement, MIXUE’s Lock-Up Expiry
- The inflection point of the policy on medical device is expected to appear this year. High-end imaging, medical robots, AI, and biomaterials are the four fields worth investors’ attention.
- WuXi XDC announced Placement to raise HK$1.3 billion net proceeds at HK$58.85/share.XDC will have >30% YoY growth in 2025-2027 but Li Ge/WuXi AppTec’s reduction of holdings is a discordant voice.
- MIXUE’s lock-up of shares allotted to cornerstone investors expired. Current valuation is acceptable based on 2025 forecast, but investors need more ‘safety margins’ on valuation due to concerns on outlook
Bath & Body Works in College Bookstores: Can This Bold Move Capture Gen Z?
- Bath & Body Works presented its financial performance for the second quarter of 2025, reflecting a strategic focus on customer-centric growth initiatives.
- The company reported net sales of $1.5 billion, up 1.5% compared to the previous year, alongside adjusted earnings per diluted share of $0.37.
- The sales growth was led by robust store traffic and successful promotional activity during their semiannual sale, which was strategically shifted to align with market dynamics and consumer behavior.
Gap Enters Beauty Battle: Will Makeup Save The Brand?
- Gap Inc. is moving beyond basics into blushes and body mists.
- Starting this fall, Old Navy will roll out an expanded beauty and personal-care assortment in roughly 150 stores, with most items priced under $25 and a curated mix that includes Old Navy–branded skincare and body care alongside names like e.l.f., Mario Badescu, and Korean beauty staples TonyMoly and Mixik.
- About 45 of those doors will feature dedicated beauty shops staffed with advisers, while the remaining locations will merchandise assortments through enhanced checkout lanes.
Ollie’s Bargain Outlet Revealed: What Competitor Bankruptcies Mean for Its Expansion Plans!
- The latest financial results of Ollie’s Bargain Outlet Holdings Inc. reflect both accomplishments and challenges for the company in the second quarter of fiscal 2025.
- The company reported an 18% increase in net sales, reaching $680 million, driven by new and expanded store operations and a rise in comparable store sales by 5%.
- This growth highlights the success of the company’s strategic focus on expansion and customer acquisition, particularly through its Ollie’s Army loyalty program, which saw membership increase by over 10% to 16.1 million.
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