In today’s briefing:
- Eicher Motors (EIM IN) | Why Exports Are on Fire
- BMW Shifts into High Gear: A 10% Share Buyback to Drive Value
- Plant-based Butadiene Emerges, Thanks To Zeon And Yokohama
- Bluestone Jewellery and Lifestyle Pre-IPO – Strong Growth but with Cash Flow Struggles
- Bama Tea Pre-IPO – Fourth Attempt to Go Public
- Coupang Inc.: Geographic Expansion & Market Penetration Driving Our Optimism!
- Familymart Adding Variety Flavour to Chain Under Nigo
- CAVA Group Inc.: Are The Recently Enhanced Restaurant-Level Profit Margins Here To Stay?
- Keurig Dr Pepper: International Expansion & Performance To Yield Positive Results In Long Term?
- 1-800-Flowers.com, Inc – H&D Opens Store on Long Island; Bloomnet Partners with Uber
Eicher Motors (EIM IN) | Why Exports Are on Fire
- Eicher Motors (EIM IN), through its brand Royal Enfield, is experiencing strong export performance driven by strategic global expansion in the middleweight motorcycle segment.
- The unit in Thailand, serves as a key manufacturing hub, with a CKD assembly facility supporting both local and Asia-Pacific markets.
- Royal Enfield’s focus on retro design and competitive pricing attracts customers in Europe and Brazil, filling a niche left by premium brands.
BMW Shifts into High Gear: A 10% Share Buyback to Drive Value
- BMW plans to repurchase 10% of its share capital over five years, likely replacing the previous buy-back program to optimize capital efficiency.
- The share buy-back is expected to boost EPS and support stock prices, with a stronger impact on preferred shares due to lower liquidity.
- The Quandt family’s ownership stake could increase to approximately 54.36%, further solidifying their control over BMW.
Plant-based Butadiene Emerges, Thanks To Zeon And Yokohama
- Zeon will develop BR and Yokohama will make tires with it
- Facility to be installed at Zeon’s Tokuyama Plant in Shunan City in Japan
- Trial production scheduled for 2026 and mass production by 2030
Bluestone Jewellery and Lifestyle Pre-IPO – Strong Growth but with Cash Flow Struggles
- Bluestone Jewellery and Lifestyle Ltd Ltd (BJL) (0124165D IN)(BJL) is planning to raise about US$118m in its upcoming India IPO.
- BJL offers contemporary lifestyle diamond, gold, platinum, and studded jewellery under its flagship brand.
- It is a digital-first direct-to-consumer (DTC) brand and is the second largest digital-first omni-channel jewellery brand in India in terms of revenue for FY24, as per RedSeer Report.
Bama Tea Pre-IPO – Fourth Attempt to Go Public
- Bama Tea (BT) is looking to raise at least US$100m in its upcoming Hong Kong IPO.
- BT mainly grew through franchising. Its broad portfolio boosts market reach. A shift to online sales and stable tea prices may improve gross margins.
- BT needs capital for expansion but faces challenges: a fragmented, slow-growing industry, declining franchise earnings, weak 9M24 tea-leaf sales, supplier/customer concentration, and this being BT’s fourth attempt at going public.
Coupang Inc.: Geographic Expansion & Market Penetration Driving Our Optimism!
- Coupang’s recent performance in the fourth quarter of 2024 illustrates both advancements and challenges within the company.
- On the positive side, Coupang’s efforts in expanding its logistical and technological capabilities have yielded significant results.
- Over the past 12 months, the company reported nearly a $6 billion increase in net revenues, reflecting a 23% growth in constant currency, after excluding the acquisition of Farfetch and the gains from a fulfillment center fire insurance.
Familymart Adding Variety Flavour to Chain Under Nigo
- Ever since Itochu Shoji acquired Familymart, it has tried to leverage the more than 16,000 stores to sell product from its many other interests, including clothing.
- With Convenience Wear a clear hit, it is now going further, adding new cosmetics and other products for the young.
- It is also bringing in The Bathing Ape’s founder to turn Familymart into a new kind of Conbini-Variety store.
CAVA Group Inc.: Are The Recently Enhanced Restaurant-Level Profit Margins Here To Stay?
- CAVA Group, a fast-casual Mediterranean restaurant chain, reported strong financial performance for the fourth quarter and full year 2024.
- The company’s revenue increased significantly, driven by a 36.8% rise in CAVA revenue and 21.2% same-restaurant sales growth, primarily attributed to a jump in traffic by 15.6%.
- CAVA’s overall financial health appears solid, with an 18.8% year-over-year increase in adjusted EBITDA, indicating effective cost management and operational efficiency.
Keurig Dr Pepper: International Expansion & Performance To Yield Positive Results In Long Term?
- Keurig Dr Pepper’s (KDP) fourth quarter and full-year 2024 earnings release and subsequent discussion highlighted several key points about the company’s financial health and strategic direction.
- With constant currency net sales growth of approximately 4% and earnings per share (EPS) growth of 8% for the full year, KDP achieved results in line with its long-term performance algorithm despite a challenging operating environment characterized by escalating inflation and supply chain constraints.
- 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.
1-800-Flowers.com, Inc – H&D Opens Store on Long Island; Bloomnet Partners with Uber
- FLWS recently announced that Harry & David has opened a retail storefront in Huntington, New York.
- This is the first opening of a Harry & David store since it permanently shuttered 38 of its 39 stores, which were forced to close during the pandemic.
- This is a test lab for expanding Harry & David back into retail to leverage the strong brand equity that has been built through its large e-commerce business.
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