Daily Brief Consumer: Oriental Land, JD.com Inc (ADR), Ryohin Keikaku, Li Auto , Fu Shou Yuan, Paradise Co Ltd, Vinda International, Coupang , Domino’s Pizza, Celsius Holdings and more

• Keisei Electric Railway Co (9009 JP) is looking to raise up to US$553m from selling a 1% stake in Oriental Land (4661 JP).
• Palliser Capital, has been pushing Keisei Electric Railway to reduce its stake in OLC to unlock shareholder value owing to the wide discrepancy between carrying/market value of the former’s investment.
• Selling just 1% of shares outstanding, the deal wouldn’t be a very large one to digest, representing 4.7 days of OLC’s three month ADV. 

• JD.com Inc (ADR) (JD US) reported a set of better-than-expected 4Q23 results yesterday, as the ADR rose 16% last night in US trading session. 
• The improvement in net profit margin showed that being more price competitive did not lead to lower margins. 
• I believe the key takeaway, aside from the resilient 4Q23 results and solid 2024 outlook, is the much improved shareholder return measures.

• Ryohin Keikaku (7453 JP) offers products covering all aspects of daily life.
• For FY08/23, Ryohin Keikaku reported consolidated operating revenue of JPY581.4bn , operating profit of JPY33.1bn, recurring profit of JPY36.2bn, and net income attributable to owners of the parent of JPY22.1bn.
• The company’s full-year FY08/24 forecast calls for operating revenue of JPY640.0bn, operating profit of JPY48.0bn, recurring profit of JPY46.0bn and net income attributable to shareholders of the parent of JPY33.3bn.

• The HSTECH Index tracks the performance of the top 30 technology companies listed in Hong Kong that have high business exposure to certain technology themes.
• In this insight, we take a look at the rankings of potential ADDs and potential DELs for the June 2024 index rebal event.
• While there are no expected ADDs/DELs for HSTECH in June 2024, some index members like Li Auto (2015 HK), Meituan (3690 HK), and XPeng (9868 HK) could experience capping flows.

• Fu Shou Yuan (1448 HK) is likely to declare a special dividend in its FY23 result announcement as indicated in its board meeting notification.
• Net cash at end-1H23 amounted to 14.5% of its current share price, providing room for imagination of the amount of special dividends. 
• Besides raising its yield, returning excess cash should raise its ROE. This will also demonstrate the management’s confidence on the outlook and its financial position.

• On 7 March, Paradise Co Ltd (034230 KS) announced that it plans to switch its listing from KOSDAQ to KOSPI. 
• Paradise will be excluded from KOSDAQ150 when it makes the switch to KOSPI. However, it is not certain if and when the company will be included in KOSPI200.
• All in all, we would argue that the valuations are not especially appealing for Paradise, despite the sharp pick-up in business in 2023.

• PRC regulatory approvals were satisfied on the 4th March for the Tanoto family’s HK$23.50 pre-conditional Offer for Vinda International (3331 HK). 
• The Circular has been dispatched, and the Offer is now open for acceptances.
• With a 50% minimum acceptance condition and irrevocables of 72.624% (plus Tanoto’s 7.69% direct stake), this should turn unconditional on or before the 19th March

• Coupang Inc., an e-commerce giant based in South Korea, has reportedly shown significant advancements and growth in their latest fourth quarter earnings.
• They boasted a year of accelerating growth, record profits and notably expanded free cash flows in business, with the creation of the ‘wow’ moments for customers deemed as the foundation to their long-term growth, profitability and in turn, shareholder value.
• Customer growth and revenues notably accelerated every quarter in 2023, with active customers growing 16% year-over-year.

• Domino’s Pizza had a strong Q4 which the company attributes to its new “Hungriest for MORE” strategy, focusing on increased sales, store growth, and profits.
• Throughout the earnings call, the company pointed at positive U.S. same-store sales and transaction growth in both delivery and carryout, signaling strong momentum in the business.
• In 2023, Domino’s added over 60 new franchisees to its system, the most in 15 years, highlighting the company’s expansion strategy.

• Bloomberg Audio Studios podcasts Radio News with hosts Weisenthal and Tracy Alloway
• Discussion on energy drinks like Celsius and their rise in popularity
• Interview with John Fieldley, President and CEO of Celsius holdings, discussing the competitive energy drink market and distribution strategies

This content is sourced through publicly available sources and has been machine generated. Information displayed is for general informational purposes only.