Daily Brief Consumer: Global Food Creators, Whirlpool of India, Sumber Alfaria Trijaya Tbk Pt, Hagihara Industries, Wal-Mart de Mexico SAB de CV, Guess? Inc, TSE Tokyo Price Index TOPIX and more

• Today after the close, Global Food Creators (7559 JP) announced that the CEO would sell his 1.23% of the company into an MBO by a company he set up. 
• The family company which owns 27%, and he would fund the takeover of the other 73% with 1% equity taken from his share sale, and 99% bank loans. 
• The TOB is at 0.65x book for a cash-rich company. Liquidate the cash and the rest is being taken over at 0.33x book. Aaaaargh. 

• Whirlpool Corp (WHR US) plans to sell a 31% stake in Whirlpool of India (WHIRL IN) reducing ownership to 20% by 2025, triggering a 20% decline due to valuation concerns.
• The implied sale valuation is lower than market expectations, raising concerns about growth, profitability, and stock overvaluation, while the parent company capitalizes on an asset arbitrage opportunity.
• Short-Term stock pressure due to stake sale overhang, declining profitability, and reduced parent control, but potential long-term re-rating if operational performance improves.

• Sumber Alfaria Trijaya is set to book a strong finish to the year, with revenues on track to meet guidance and 4Q benefiting from supplier rebates and seasonal festivities.
• The company is guiding for revenue growth in 2025 in line with that of 2024, with a plan to open at least 1,000 new Alfamart stores during the year.
• The guidance for Lawson and Alfamidi store expansion has yet to be announced but numbers are likely to be similar or higher than 2024. Valuations remain attractive versus growth expectations. 

• Hagihara Industries reported FY24 (Oct year-end) earnings results on 10 December with FY24 operating profit [OP] of ¥2,097mil (+6.0% YoY) on sales of ¥33,118mil (+6.0% YoY) versus an OP target of ¥2,200mil (+11.2% YoY) on sales of ¥32,000mil (+2.4% YoY).
• While sales overshot the firm’s guidance, OP fell short due to costs associated with a core system renewal and real estate acquisition tax incurred on the Kasaoka Factory.
• Management is guiding for FY25 1H OP of ¥1,160mil (-8.8% YoY) on sales of ¥16,780mil (+2.5% YoY), and FY25 OP of ¥2,400mil (+14.4% YoY) on sales of ¥34,000mil (+2.7% YoY).

• Mexican market attractiveness discussed, focusing on Walmart de Mexico y Centroamerica (Walmex)
• Mexican equities de-rated due to government policies, leading to discounted valuations for quality businesses like Walmex
• Walmex, largest retailer in Mexico and Central America with 3,901 stores, seen as well-run, high-quality business and long-term investment opportunity

This content is sourced through publicly available sources and has been machine generated. Information displayed is for general informational purposes only. This article was originally published 3 months ago on Value Investors Club.

• We are reiterating our Buy rating, $23 price target and projections for Guess?
• after visiting stores in the New York City metro area and Long Island.
• With Guess?

• While the number of listed companies worldwide has been on a declining trend, the TSE has experienced growth in market capitalization, but growth in market capitalization has been slow.
• TSE requested companies to raise their P/B, but admits that many companies have yet to reach this goal and that it’ll take considerable time to change to such management style.
• Shareholder proposals are increasing. This could hasten the shift to value-creating management, or companies that find it burdensome as a cost of listing may choose to go private.