Equity Research Focusing on the Consumer Sector, Small Cap Consumer Research

Small Cap Consumer Research

Equity Research Focusing on the Consumer Sector

Small Cap Consumer Research, LLC is a leading company-sponsored equity research provider focusing on the consumer sector (apparel, brand licensing and specialty retailing segments).

Equity Bottom-Up

Betterware de Mexico Sab de CV / Equity Bottom-Up

<ul><li>We are reiterating our Buy rating and $22.50 price target and slightly back-end loading our 2024 projections after reviewing the July catalog and recent foreign exchange swings between the Mexican Peso and USD.</li><li>July continued to demonstrate normalizing trends in the Betterware catalog, with SKU levels up YoY and discounting remaining down, as the division begins to compare against more normalized results from the prior year, as supply chains reset at more historic levels.</li><li>That said, overall pricing power remains somewhat constrained, as YoY pricing dropped 8.4%, the sixth drop, and deepest decline, this year.</li></ul>

We are reiterating our Buy rating and $22.50 price target and slightly back-end loading our 2024 projections after reviewing the July catalog and recent foreign exchange swings between the Mexican Peso and USD.July continued to demonstrate normalizing trends in the Betterware catalog, with SKU levels up YoY and discounting remaining down, as the division begins to compare against more normalized results from the prior year, as supply chains reset at more historic levels.That said, overall pricing power remains somewhat constrained, as YoY pricing dropped 8.4%, the sixth drop, and deepest decline, this year.

BWMX: Snapping the Catalog: July Remains Hot; Reiterate Buy, $22.50 PT

IPOs and Catalysts/Events, Global Equity Research Ltd

Arun George

IPOs and Catalysts/Events

Uncompromised, Independent, Conflict-Free Research

Global Equity Research Ltd

Global Equity Research was started in 2017 by a group of experienced research professionals. It was founded on a passionate belief in the importance and the need for uncompromised, independent, conflict-free research. We aim to provide differentiated and actionable primary and bottom up fundamental research.

Event-Driven

<ul>
<li>The <a href="https://www.smartkarma.com/entities/best-world-international-ltd" target="_blank" data-smartkarma-citation="entities:4600:1" rel="noopener">Best World International (BEST SP)</a> IFA considers the S$2.56 exit offer fair and reasonable as it is towards the upper end of its S$1.36-2.69 per share valuation range. </li>
<li>The key conditions are approval for the selective capital reduction (at least 75% of eligible shareholders) and delisting resolution (a majority holding not less than 75% in value).</li>
<li>The lack of activists, IFA supporting recommendations, and no competing offer suggest a done deal. At the last close, the gross spread was 2.8%.</li>
</ul>


The Best World International (BEST SP) IFA considers the S$2.56 exit offer fair and reasonable as it is towards the upper end of its S$1.36-2.69 per share valuation range. 
The key conditions are approval for the selective capital reduction (at least 75% of eligible shareholders) and delisting resolution (a majority holding not less than 75% in value).
The lack of activists, IFA supporting recommendations, and no competing offer suggest a done deal. At the last close, the gross spread was 2.8%.


Best World (BEST SP): EGM Vote on 19 July

<ul>
<li>
<a href="https://www.smartkarma.com/entities/l-occitane-international-sa" target="_blank" data-smartkarma-citation="entities:6772:1" rel="noopener">L'Occitane (973 HK)</a> announced the share alternative at an exchange ratio of 10 rollover shares for each offer share, subject to a cap of 5% of outstanding shares.</li>
<li>The share alternative option will help the offer and was likely required to get Pleasant Lake Partners’ support (3.25% of outstanding shares). There is minimal vocal opposition to the offer. </li>
<li>Irrevocables/Letters of support represent 49.83% of disinterested shares. An attractive offer and the share alternative facilitate meeting the minimum acceptance condition, which requires an 80% disinterested acceptance rate (ex. irrevocables).</li>
</ul>



L'Occitane (973 HK) announced the share alternative at an exchange ratio of 10 rollover shares for each offer share, subject to a cap of 5% of outstanding shares.
The share alternative option will help the offer and was likely required to get Pleasant Lake Partners’ support (3.25% of outstanding shares). There is minimal vocal opposition to the offer. 
Irrevocables/Letters of support represent 49.83% of disinterested shares. An attractive offer and the share alternative facilitate meeting the minimum acceptance condition, which requires an 80% disinterested acceptance rate (ex. irrevocables).


L’Occitane (973 HK): Share Alternative a Crucial Step Towards the Offer Being Declared Unconditional

<ul><li>We are reiterating our Buy rating, $22.50 price target and projections for Betterware de Mexico after meeting with the management of Betterware and JAFRA Mexico and touring JAFRA's manufacturing facility.</li><li>We believe there are multiple top and bottom line upside drivers for the company, and we increasingly view our projections as conservative, as both Betterware and JAFRA have the ability to leverage a relatively fixed infrastructure which can support multiple years of expansion.</li><li>Further, we believe management is highly focused on higher levels of innovation and leveraging their distribution networks to increase their "share of wallet" for both housewares and personal care items.</li></ul>

We are reiterating our Buy rating, $22.50 price target and projections for Betterware de Mexico after meeting with the management of Betterware and JAFRA Mexico and touring JAFRA's manufacturing facility.We believe there are multiple top and bottom line upside drivers for the company, and we increasingly view our projections as conservative, as both Betterware and JAFRA have the ability to leverage a relatively fixed infrastructure which can support multiple years of expansion.Further, we believe management is highly focused on higher levels of innovation and leveraging their distribution networks to increase their "share of wallet" for both housewares and personal care items.

BWMX: Management Meetings Confirm Multiple Upside Drivers; Reiterate Buy

<ul><li>We are reiterating our Buy rating, $22.50 price target and projections for Betterware de Mexico after reviewing the June catalog.</li><li>Despite the return of normalized comparisons, as supply chain issues began to normalize last year, June was another solid month for Betterware, as the catalog registered further SKU growth, continued higher levels of newness, and lower discounting.</li><li>Further, these results were achieved despite the company pulling back from prior categories (Better Kids and Pets), making the YoY gains even more impressive.</li></ul>

We are reiterating our Buy rating, $22.50 price target and projections for Betterware de Mexico after reviewing the June catalog.Despite the return of normalized comparisons, as supply chain issues began to normalize last year, June was another solid month for Betterware, as the catalog registered further SKU growth, continued higher levels of newness, and lower discounting.Further, these results were achieved despite the company pulling back from prior categories (Better Kids and Pets), making the YoY gains even more impressive.

BWMX: Snapping the Catalog: Tough Comps Not an Issue; Reiterate Buy, $22.50 PT

United States

Nu Skin Enterprises, Inc. is a global direct selling company.  The Company distributes premium quality personal care products and nutritional supplements. Nu Skin markets its products in the Americas, Europe, and the Asia Pacific region.  The Company provides marketing and distribution of technology-based products through Big Planet, Inc.

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Nu Skin Enterprises Inc A (NUS US)

BWMX: Snapping the Catalog: July Remains Hot; Reiterate Buy, $22.50 PT

We are reiterating our Buy rating and $22.50 price target and slightly back-end loading our 2024 projections after reviewing the July catalog and...

Small Cap Consumer Research

Best World (BEST SP): EGM Vote on 19 July

The lack of activists, IFA supporting recommendations, and no competing offer suggest a done deal. At the last close, the gross spread was 2.8%.

Arun George

BWMX: Management Meetings Confirm Multiple Upside Drivers; Reiterate Buy

We are reiterating our Buy rating, $22.50 price target and projections for Betterware de Mexico after meeting with the management of Betterware...

Small Cap Consumer Research

BWMX: Snapping the Catalog: Tough Comps Not an Issue; Reiterate Buy, $22.50 PT

We are reiterating our Buy rating, $22.50 price target and projections for Betterware de Mexico after reviewing the June catalog. Despite the...

Small Cap Consumer Research

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BWMX: Snapping the Catalog: July Remains Hot; Reiterate Buy, $22.50 PT

We are reiterating our Buy rating and $22.50 price target and slightly back-end loading our 2024 projections after reviewing the July catalog and...

Small Cap Consumer Research

Best World (BEST SP): EGM Vote on 19 July

The lack of activists, IFA supporting recommendations, and no competing offer suggest a done deal. At the last close, the gross spread was 2.8%.

Arun George

L’Occitane (973 HK): Share Alternative a Crucial Step Towards the Offer Being Declared Unconditional

An attractive offer and the share alternative facilitate meeting the 90% minimum acceptance condition. This looks like a done deal. At the current...

Arun George

BWMX: Management Meetings Confirm Multiple Upside Drivers; Reiterate Buy

We are reiterating our Buy rating, $22.50 price target and projections for Betterware de Mexico after meeting with the management of Betterware...

Small Cap Consumer Research

BWMX: Snapping the Catalog: Tough Comps Not an Issue; Reiterate Buy, $22.50 PT

We are reiterating our Buy rating, $22.50 price target and projections for Betterware de Mexico after reviewing the June catalog. Despite the...

Small Cap Consumer Research