Daily Brief Consumer: Sun Art Retail, Bloks Group, Amorepacific Corp (Preferred), Adient PLC, Kering, Samsonite, GNA Axles Ltd, Steven Madden, Shake Shack Inc Class A and more

• HK$1.38/Share. That’s the takeaway as Alibaba Group (9988 HK) enters an SPA to offload its 78.7% stake in Sun Art (6808 HK) at HK$1.38/share, a 44.4% discount to last close.
• The buyer, Paragon Shine, an entity under Chinese PE outfit DCP Capital, is paying ~HK$12.3bn compared to BABA’s HK$28.1bn purchase of a 51% stake in October 2020.
• Should the SPA complete, an unconditional MGO is triggered. Minorities tendering can receive up to HK$1.58/share. But the question is: why would BABA be cashing out at this price?

• Shanghai-Based Bloks Group, a leader of assembly character toys in China, has announced the initial price range for its IPO in Hong Kong.
• The offering is expected to be between HK$55.65 and HK$60.35, implying a market cap of ~HK$14B or ~$1.8B at the midpoint of the price range. 
• Assuming IPO offer price of HK$58.00, UBS AM Singapore, Greenwoods AM and Fullgoal Investors have agreed to invest ~HK$388M or ~$50M in the offering.

• In this insight, we discuss numerous gap trade opportunities involving Korean preferred and common shares in 1Q 2025.
• Among the 27 major pair trades (prefs vs. common shares), 20 of the pref stocks outperformed their common shares counterparts in 2024.
• The 27 Korean preferred stocks’ average prices declined by 1% from end of 2023 to end of 2024 (excluding dividends), outperforming their common counterparts which were down on average 3.7%.

• Bloks Group (1850960D CH) is looking to raise US$188m in its Hong Kong IPO.
• Bloks Groups (Bloks) operates in the toy segment where it primarily assembles character and brick-based toys.
• In our previous note, we looked at the firm’s past performance. In this note, we discuss the latest PHIP updates.

• Adient plc has recently reported its fourth quarter 2024 earnings as well as its full-year results, providing a snapshot of the company’s current position and future outlook.
• The company’s performance was solid in the face of a challenging macroeconomic environment.
• Revenues decreased by 4% year-over-year, but Adient managed to maintain adjusted EBITDA at $235 million, highlighting its ability to mitigate customer volume headwinds through strong business performance.

• Kering is a luxury house similar to LVMH, with brands like Gucci, YSL, Bottega Veneta, and Balenciaga
• Gucci represents nearly 50% of Kering’s revenues and over 50% of profits, with its popularity tied to fashion trends
• Kering traces its history back to a diverse set of regional businesses before focusing on luxury under the leadership of Francois Henry Pinault

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

• Samsonite is planning to re-list in the US, despite currently being listed in Hong Kong
• Company is trading at low valuation but expected to see medium-term growth
• Listing in Hong Kong has not benefitted Samsonite, with potential for increased interest and growth in the US market

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.

• Favorable reservoir level, an uptick in Kharif Harvest, and strong sowing for the Rabi season are expected to drive good demand for tractors in the medium term.
• We summarize the sales volume published by listed players Mahindra & Mahindra(M&M), and Escorts Kubota Limited.
• Positive management commentary augurs well for uptick in tractor OEM stocks and related auto ancillary companies like GNA Axles Ltd (GNA IN) in medium term.

• Steve Madden Limited’s results for the third quarter of 2024 reveal a mixed performance, characterized by notable achievements in certain areas and challenges in others.
• The company’s revenue increased by 13% compared to the third quarter of 2023, totaling $624.7 million.
• This growth was attributed to several factors, including exceptional performance in the accessories and apparel categories, profound contribution from the acquisition of Almost Famous, and strong top-line gains in international markets and direct-to-consumer channels.

• Shake Shack delivered a strong financial performance in the third quarter of 2024, showcasing positive trends and potential areas for caution.
• The company achieved its 15th consecutive quarter of positive same-Shack sales growth, with a 4.4% rise and a significant expansion in restaurant-level margins for the ninth consecutive quarter.
• This resulted in a 28% increase in adjusted EBITDA to $45.8 million.