In today’s briefing:
- Trip.com (TCOM, 9961HK): 4Q24, Even Better Results, But Plunged as Expected
- Trip.com Q424 Results | Higher Costs Finally Arrive, And With a Vengeance
- Quiddity Leaderboard BSE/SENSEX Jun25: One Change to Expectations; US$500mn One-Way Collectively
- Potential Buyout of Nathan’s Famous by Smithfield Foods Could Unlock 45% Upside Amid Strategic Synergies
- How Is Sony Group Leveraging Synergy in Entertainment & Technology To Up The Ante!
- China Dongxiang (3818 HK): More than Just BABA
- Honda Motor Co.: How Is It Adapting To The Shifting Global Vehicle Mix & Regional Market Dynamics?
- Pre-AGM Filling of Annual Securities Reports Is Plus, but May Take Long Before More Companies Do So
- What’s News in Amsterdam – 25 February (AkzoNobel | Unilever | PostNL)
- BBW: Moving on to Easter/Spring after Solid V-Day; Reiterate Buy, $58 PT
Trip.com (TCOM, 9961HK): 4Q24, Even Better Results, But Plunged as Expected
- Total revenue grew by 24% in 4Q24, higher than 19% we expected.
- The stock price plunged in Hong Kong as we expect in our preview note.
- However, we believe, any stock decline over 11% means overreacted.
Trip.com Q424 Results | Higher Costs Finally Arrive, And With a Vengeance
- Net Revenue growth accelerated to +23% Y/Y in Q424, far stronger than in Q224 and Q324
- But costs and expenses grew even faster, leading to surprisingly sharp margin contraction
- We no longer view Trip.com as an attractive play on Chinese travel; airlines may outperform
Quiddity Leaderboard BSE/SENSEX Jun25: One Change to Expectations; US$500mn One-Way Collectively
- In this insight, we take a look at the Potential ADDs/DELs for the BSE SENSEX, BSE 100, and BSE 200 Indices in the June 2025 index rebal event.
- As things stand, there could be two index changes for the SENSEX index.
- There could be two ADDs/DELs for the BSE 100 Index and four ADDs/DELs for the BSE 200 Index.
Potential Buyout of Nathan’s Famous by Smithfield Foods Could Unlock 45% Upside Amid Strategic Synergies
- Nathan’s Famous is in potential sale talks, with major food manufacturers and PE firms as potential buyers.
- Smithfield Foods, Nathan’s key partner, is well-positioned for acquisition, potentially eliminating royalties and achieving cost synergies.
- Sum of the parts valuation estimates Nathan’s equity value at $604m or $148/share, a 45% upside potential.
How Is Sony Group Leveraging Synergy in Entertainment & Technology To Up The Ante!
- Sony Group Corporation’s recent earnings highlighted its financial performance for the third quarter of fiscal year 2025 and provided insights into future strategic direction amid a transitional leadership period.
- The company’s revenue and profit saw substantial growth, yet certain challenges remain, reflecting the complexities within its diverse business segments.
- Positive aspects of Sony’s financial performance include a 7% year-on-year increase in consolidated sales, excluding its Financial Services segment, reaching JPY 3,695.7 billion for the quarter.
China Dongxiang (3818 HK): More than Just BABA
- China Dongxiang (3818 HK)‘s share price change has not sufficiently reflected Alibaba Group (9988 HK)‘s movement. Their share price ratio is now at a historical low.
- Its SOTP value increased by HK$927m with the surge in its PE, unlisted and fixed-income investment value, but its market capitalisation has gone up by just HK$258m.
- Holdings in unlisted assets like Ant Financial and JD Technology (JD Digital) will benefit from the AI bonanza and the better sentiment in the HK IPO market.
Honda Motor Co.: How Is It Adapting To The Shifting Global Vehicle Mix & Regional Market Dynamics?
- Honda Motor Co., Ltd.’s financial performance in the first quarter of FY 2025 presented a complex picture with both strengths and challenges noted.
- On the positive side, Honda achieved its highest ever quarterly operating profit of JPY 484.7 billion, up JPY 90.2 billion year-over-year, translating into a robust operating profit margin of 9%.
- The growth was largely driven by an increase in unit sales in the Motorcycle Business, particularly in India and Brazil, and a strong performance in the Automobile Business, especially with hybrid models in Japan and the U.S. 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.
Pre-AGM Filling of Annual Securities Reports Is Plus, but May Take Long Before More Companies Do So
- 42 companies submitted their annual securities reports by the business day before AGM date, and most of them submitted their reports immediately before AGM, such as the day before AGM.
- If the record date is moved forward from fiscal year-end, the problem of administrative burden will be solved. English-disclosure in annual securities reports will increase, and engagement will be positive.
- For companies with a record date in their articles of incorporation, changing the record date would require general shareholders’ meeting, but only a few shareholders would oppose the change.
What’s News in Amsterdam – 25 February (AkzoNobel | Unilever | PostNL)
- In this edition: • AkzoNobel | to acquire Akzo Nobel India’s powder coatings business • Unilever | CEO Schumacher to leave the company unexpectedly; company reconfirms outlook • PostNL | main takeaways 4Q24 earnings call
BBW: Moving on to Easter/Spring after Solid V-Day; Reiterate Buy, $58 PT
- We are reiterating our Buy rating, $58 price target and projections for Build-A-Bear Workshop after visiting stores in Connecticut and Long Island.
- We believe Build-A-Bear was once again a key winner during the Valentine’s Day season, with new items, a continued focus of expanding the offerings (Mini Beans and Giant “furry friends”) and leveraging new and licensed properties.
- Further, Build-A-Bear continues to expand key properties such as Pokémon and Sanrio.
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