In today’s briefing:
- Asian Dividend Gems: Crystal International
- SJM Holdings – Earnings Flash – FY 2024 Results – Lucror Analytics
- Big Gap Between Companies that “don’t Have a Gap in Investors’ Viewpoints” and Those that Don’t
- HK SDR suite broadens to track over 40% of Hang Seng Index with Xiaomi, Meituan and Ping An Insurance
- BBW: 4Q Preview: Evolution Continues; Reiterate Buy, $58 PT
- Pre-IPO Foshan Haitian Flavouring & Food Company – The Challenges Ahead and the Outlook
- ThredUp, Inc. – Strong Momentum from 4Q Continues
- Dydo Drinco Inc (2590 JP): Full-year FY01/25 flash update
Asian Dividend Gems: Crystal International
- Crystal International ‘s business operations started to turn around in 2024 as most brand customers ended the destocking cycle and adjusted their inventory strategy.
- Crystal International is trading at attractive valuations of EV/EBITDA of 3.5x and P/E of 8.1x, based on 2025 consensus earnings estimates. Estimated dividend yield is at 6.5% in 2025.
- The company is one of the largest OEM apparel manufacturers in the world. It has a proven record of executing its business strategy successfully for more than five decades.
SJM Holdings – Earnings Flash – FY 2024 Results – Lucror Analytics
- SJM Holdings’ FY 2024 results were acceptable in our view, as its earnings and market share improved y-o-y.
- In particular, GLP has managed to improve market share gradually over the course of the year.
- Still, SJM’s overall market share remained below the pre-pandemic FY 2019 level.
Big Gap Between Companies that “don’t Have a Gap in Investors’ Viewpoints” and Those that Don’t
- A common feature of the three companies that clearly indicated the conditions for implementing share repurchases and their position in the cash allocations is high foreign ownership.
- Japanese companies’ share buybacks are less than 10% of net income, but on a cash flow basis, taking depreciation into account, share buybacks would be much less.
- If the cost of capital was calculated, it shouldn’t be tremendous requirement to indicate cash allocation and share repurchase terms necessary for targeted return on capital and corporate value.
HK SDR suite broadens to track over 40% of Hang Seng Index with Xiaomi, Meituan and Ping An Insurance
- Three new Hong Kong SDRs, Xiaomi, Meituan, and Ping An Insurance, are now tradable on SGX, expanding thematic exposures.
- HK SDRs offer cost-effective access to Hong Kong stocks with lower brokerage fees, no forex fees, and SGD settlements.
- Since October 2024, HK SDRs’ daily turnover increased eightfold to S$4 million, with significant trading in Tencent, BYD, and Alibaba.
BBW: 4Q Preview: Evolution Continues; Reiterate Buy, $58 PT
- We are reiterating our Buy rating, $58 price target and projections for Build-A-Bear Workshop, with the company announcing 4QFY24 (January) results on Wednesday before the open.
- We believe, with impressive owned store results during the Holidays and the new third party locations becoming an increasingly higher piece of the overall profitability of the business, Build-A-Berar is poised for strong 4Q results and potential top and bottom line upside.
- Further, with the company enjoying a strong Valentine’s Day season and the Spring calendar materially more favorable, we believe management will be positive for FY25.
Pre-IPO Foshan Haitian Flavouring & Food Company – The Challenges Ahead and the Outlook
- The entire condiments market in China is deeply mired in fierce competition with limited market increment space. The future performance growth of companies in the industry will further slow down.
- Haitian tries to find new growth points through diversification/internationalization. A big concern is whether China’s local brand will face “adaptation issue” overseas. The supply chain system is not yet perfect
- Due to the concerns on slowing performance growth in the future as well as the uncertainties on internationalization, we think reasonable valuation for Haitian is about 20-30x P/E.
ThredUp, Inc. – Strong Momentum from 4Q Continues
- 4Q results and 2025 outlook were already discussed, hence there were no surprises.
- The key takeaways from the call and callbacks include the following.
- Strong pickup in new buyers in 4Q, with momentum continuing into 1Q25.
Dydo Drinco Inc (2590 JP): Full-year FY01/25 flash update
- Revenue for FY01/25 was JPY237.2bn (+11.2% YoY), with operating profit at JPY4.8bn (+28.3% YoY).
- Domestic Beverage business saw a revenue decline of 4.0% YoY to JPY145.5bn due to lower sales volume.
- International Beverage business revenue increased 112.8% YoY to JPY56.3bn, driven by Turkish operations and Wosana consolidation.
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