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 for Betterware after the company reported an impressive 1Q, with better than expected top line results.</li><li>Further, management reiterated 2024 EBITDA guidance and increased the upper end of the revenue range.</li><li>There was also material progress at Betterware, which enjoyed double-digit increases in average ticket and revenue and is nearing the shift to positive growth in Associates.</li></ul>

We are reiterating our Buy rating and $22.50 price target for Betterware after the company reported an impressive 1Q, with better than expected top line results.Further, management reiterated 2024 EBITDA guidance and increased the upper end of the revenue range.There was also material progress at Betterware, which enjoyed double-digit increases in average ticket and revenue and is nearing the shift to positive growth in Associates.

BWMX: 1Q Review: In-Line Q, With Multiple Positives; Reiterate Buy, $22.50 PT

<ul><li>We are reiterating our Buy rating, projections and $22.50 price target for Betterware de Mexico with the company announcing 1Q24 (March) results after the close on Thursday.</li><li>We believe, with momentum returning at the Betterware division, JAFRA remaining on a new product and marketing focus, the United States market becoming a larger emphasis and BWMX continuing to offer a compelling (and secure) dividend yield of 8.5%, BWMX remains well positioned to reward investors on multiple levels, and we reiterate our Buy rating and $22.50 price target.</li></ul>

We are reiterating our Buy rating, projections and $22.50 price target for Betterware de Mexico with the company announcing 1Q24 (March) results after the close on Thursday.We believe, with momentum returning at the Betterware division, JAFRA remaining on a new product and marketing focus, the United States market becoming a larger emphasis and BWMX continuing to offer a compelling (and secure) dividend yield of 8.5%, BWMX remains well positioned to reward investors on multiple levels, and we reiterate our Buy rating and $22.50 price target.

BWMX: 1Q Preview: Moving to the Offensive; 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>Bloomberg reports that <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> draws takeover interest from <a href="https://www.smartkarma.com/entities/blackstone-inc" target="_blank" data-smartkarma-citation="entities:27166:1" rel="noopener">Blackstone (BX US)</a>, which is considering partnering with Chairman and largest shareholder Reinold Geiger.</li>
<li>Blackstone needs an attractive takeover premium due to the presence of significant disinterested shareholders (Mr. Geiger and Acatis KVG).</li>
<li>Shareholders will be wary of the latest rumour due to Mr Geiger’s aborted offer on 4 September 2023. Nevertheless, the valuation is undemanding compared to peer multiples.</li>
</ul>


Bloomberg reports that L'Occitane (973 HK) draws takeover interest from Blackstone (BX US), which is considering partnering with Chairman and largest shareholder Reinold Geiger.
Blackstone needs an attractive takeover premium due to the presence of significant disinterested shareholders (Mr. Geiger and Acatis KVG).
Shareholders will be wary of the latest rumour due to Mr Geiger’s aborted offer on 4 September 2023. Nevertheless, the valuation is undemanding compared to peer multiples.


L’Occitane (973 HK): Blackstone Pondering an Offer

<ul>
<li>
<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> has disclosed an exit offer through selective capital raising and delisting. The offer of S$2.50 is a 42.9% premium to the undisturbed price of S$1.75. </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 headcount test is a risk. The offer is light as only 66.7% of retained earnings will be distributed and the consideration will be covered 1.6x by the net cash.</li>
</ul>



Best World International (BEST SP) has disclosed an exit offer through selective capital raising and delisting. The offer of S$2.50 is a 42.9% premium to the undisturbed price of S$1.75. 
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 headcount test is a risk. The offer is light as only 66.7% of retained earnings will be distributed and the consideration will be covered 1.6x by the net cash.


Best World (BEST SP): Not the Best Exit Offer

<ul><li>We are reiterating our Buy rating, $22.50 price target and projections after reviewing Betterware de Mexico's April catalog.</li><li>While the level of newness declined, perhaps due to the shifting Easter Holiday, the key positive trends remain, from higher YoY SKU levels, continued emphasis on full price selling, expansion into innovative adjacent categories and leveraging an improving supply chain to offer values in a still somewhat inflationary environment.</li><li>As such, we remain upbeat on the potential for another YoY up quarter for the Betterware division and believe the division remains poised to shift again into registering increases in the level of Associates, which would be the next key step forward in the turn.</li></ul>

We are reiterating our Buy rating, $22.50 price target and projections after reviewing Betterware de Mexico's April catalog.While the level of newness declined, perhaps due to the shifting Easter Holiday, the key positive trends remain, from higher YoY SKU levels, continued emphasis on full price selling, expansion into innovative adjacent categories and leveraging an improving supply chain to offer values in a still somewhat inflationary environment.As such, we remain upbeat on the potential for another YoY up quarter for the Betterware division and believe the division remains poised to shift again into registering increases in the level of Associates, which would be the next key step forward in the turn.

BWMX: Snapping the Catalog: Remain On Trend in April; 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: 1Q Review: In-Line Q, With Multiple Positives; Reiterate Buy, $22.50 PT

We are reiterating our Buy rating and $22.50 price target for Betterware after the company reported an impressive 1Q, with better than expected...

Small Cap Consumer Research

BWMX: 1Q Preview: Moving to the Offensive; Reiterate Buy, $22.50 PT

We are reiterating our Buy rating, projections and $22.50 price target for Betterware de Mexico with the company announcing 1Q24 (March) results...

Small Cap Consumer Research

L’Occitane (973 HK): Blackstone Pondering an Offer

L’Occitane is on a trading halt pursuant to the Code on Takeovers and Mergers. Bloomberg reports that Blackstone is nearing a privatisation deal...

Arun George

Best World (BEST SP): Not the Best Exit Offer

The vote is a risk. The offer is light as only 66.7% of retained earnings will be distributed, and the consideration will be covered by 1.6x of the...

Arun George

BWMX: Snapping the Catalog: Remain On Trend in April; Reiterate Buy, $22.50 PT

We are reiterating our Buy rating, $22.50 price target and projections after reviewing Betterware de Mexico's April catalog. While the level of...

Small Cap Consumer Research

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