In today’s briefing:
- NIFTY Outlook: Possible Breakout as Options Expiry Moves to Monday
- Top 10 Korean Stock Picks and Key Catalysts Bi-Weekly (Starting 31 March 2025)
- [Miniso Group (MNSO US, SELL, TP US$16) TP Change]: C4Q24 Review: Downside Not yet Fully Priced In
- Lululemon 4Q’24 Update
- Innova Captab’s Jammu Expansion Update
- Freshpet’s Recent Market Growth & Household Penetration Expansion
- Chinese EV Maker Neta on Brink of Collapse as $600 million Funding Round Falls Through
- [Update] FY2024 Annual Report – Leon’s Furniture ($LNF , $LNF.TO)
- Leggett & Platt: Focus On Expanding High-End Bedding Market To Enable Margin Expansion!
- Pia Corp (4337 JP): Coverage Initiation
NIFTY Outlook: Possible Breakout as Options Expiry Moves to Monday
- The NIFTY Index had rallied quite hard the week before last week, then stalled last week, however its looks like maybe is changing in its trend structure, maybe a breakout…
- However the breakout may have to wait a bit more, as the NIFTY is overbought WEEKLY according to our model: before the uptrend resumes, there will be a pullback.
- Last: as written by AceGama Advisors the WEEKLY options expiry will be moved from Thursday to Monday, starting in April 2025, impacting the market. Read their insight for detailed analysis.
Top 10 Korean Stock Picks and Key Catalysts Bi-Weekly (Starting 31 March 2025)
- In this insight, we provide the top 10 stocks picks and key catalysts in the Korean stock market for the two weeks starting 31 March.
- The top 10 picks in this bi-weekly include Orion Holdings, Hyundai Wia, KEPCO KPS, Samsung Electronics, KT, Emart, CJ Logistics, APR, Doosan Enerbility, and HD Hyundai Marine Solution.
- The biggest near-term negative catalyst on the Korean stock market remains tariffs. The final legal outcome on President Yoon Seok-Yeol is expected to be made by the end of April.
[Miniso Group (MNSO US, SELL, TP US$16) TP Change]: C4Q24 Review: Downside Not yet Fully Priced In
- MNSO reported C4Q24 rev.1.6%/2.0%, and non-GAAP EBIT 3.4%/2.0% below our est./cons.. What concerns us more is the quality of the growth;
- In our view, MNSO’s slow same-store-sales-growth (SSSG), overseas investment, and Yonghui’s integration haven’t fully reflected in the price;
- We cut the TP to US$16 and maintain the SELL rating to reflect slower profit growth. The stock trades at 14x 25E P/E vs. a 12% 3 Yr. NI CAGR
Lululemon 4Q’24 Update
- Since its IPO back in 2007, Lululemon always posted double-digit revenue growth every single year.
- While there was plenty of skepticism throughout 2024, they managed to eke out double digit growth last year.
- But 2025 topline guidance of 5-7% implies the era of persistent double digit growth regardless of the economy is likely behind us!
Innova Captab’s Jammu Expansion Update
- Innova Captab (1605221D IN) has commissioned a new 11-acre manufacturing facility in Jammu, with capacity for 10.7 bn tablets and 562 mn LVP/respules.
- The plant adds new dosage forms and therapy areas (Penicillin, Penum) and enables strategic domestic-export capacity balancing, with potential ROIC >20%.
- This is not just a capacity bump, it positions Innova for premium exports, higher utilization, and long-term revenue scale-up to INR 14–16Bn from Jammu alone.
Freshpet’s Recent Market Growth & Household Penetration Expansion
- Freshpet delivered a strong performance in the fiscal year 2024, characterized by notable growth in net sales and even more significant improvements in profitability.
- The company’s net sales reached $975 million, marking a 27% increase from the previous year, driven largely by volume gains.
- This was predominantly a result of increased household penetration and buy rates, boosted by strategic media investments and retail expansion.
Chinese EV Maker Neta on Brink of Collapse as $600 million Funding Round Falls Through
- Neta Auto, the Chinese electric vehicle (EV) startup, is teetering on the brink of collapse after a funding crisis brought production to a standstill and triggered mass layoffs, leaving its parent company scrambling for a financial lifeline amid rising debt.
- Hozon New Energy Automobile Co. Ltd., which produces EVs under the Neta brand, revealed in February that its much-anticipated Series E funding round had unraveled.
- Originally scheduled to close by Feb. 28 with a planned injection of 4 billion to 4.5 billion yuan ($550 million to $620 million), the deal never materialized.
[Update] FY2024 Annual Report – Leon’s Furniture ($LNF , $LNF.TO)
- ‘Loneliness is the feeling of isolation even when other people are there’ That’s how I feel about being a shareholder of Leon’s Furniture (LNF). Lonely.
- No one talks about it, barring a few (Canadian Value Investor, Greystone).
- 69% of LNF is owned by the Leon’s family and the stock continues to be illiquid despite being a 1 billion + market cap company in Canada.
Leggett & Platt: Focus On Expanding High-End Bedding Market To Enable Margin Expansion!
- Leggett & Platt’s fourth-quarter and full-year 2024 results reflect a challenging market environment with mixed outcomes from restructuring efforts and demand dynamics across its segments.
- Throughout 2024, Leggett & Platt undertook significant restructuring, particularly in its Bedding Products segment, as well as in home furniture, flooring products, and hydraulic cylinders.
- The company exceeded its target for restructuring EBIT benefits, achieving $22 million, which was above the expected $10 million to $15 million, indicating successful execution of the restructuring plans.
Pia Corp (4337 JP): Coverage Initiation
- In FY03/24, revenue was JPY39.6bn (+20.8% YoY), operating profit JPY1.2bn (+47.4% YoY), recurring profit JPY922mn (+53.7% YoY), and net income attributable to owners of the parent JPY1.1bn (-21.0% YoY).
- The Japanese leisure and audience entertainment market recovered, including in the live entertainment market.
- In addition, major IT service providers such as LINE Ticket exited the market during the COVID-19 pandemic, reducing competitive pressure and providing a tailwind for the company.
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