Consumer

• Yamada Denki (9831 JP) lowering the March 2023 div to ¥12/share vs ¥18/share last year was just weird. And bodes badly. We need a lightbulb moment for a lightbulb dilemma.
• Genting Bhd (GENT MK)‘s implied stub and simple ratio (GENT/ Genting Singapore (GENS SP)) are currently at muti-year trough levels. 
• Buy Toyo Construction (1890 JP) <¥970. The proposed dividend could be in danger should YFO spill the board; but spilling the board to get better governance is a good thing. 

• LVS just reported 1Q23 results showing a surging recovery of GGR and daily arrivals in Macau driving gains in revenue and profit profile.
• Labor shortages that have limited availability of LVS’ 12,000 rooms are beginning to subside. Golden Week just ahead expected to reach +90% room occupancy.
• Stock has moved over 20% since our buy call at $53. Our PT is raised to $80.

• Ambev delivered mixed results in Q4.
• The company saw a 1.5% increase in volumes though its revenues were below Wall Street expectations.
• Also, despite the impact of inflationary pressures on Ambev’s expenditures and expenses, normalized EBITDA increased in the quarter and the company delivered an earnings beat.

• There are 41 – mostly firm, mostly Asia-Pac – transactions currently being discussed and analysed on Smartkarma. Inside is a timetable of upcoming key events for each deal.
• Two new deals were discussed on Smartkarma this past week: Wesfarmers  (WES AU)‘s tilt for Silk Laser (SLA AU); and Arclands Corporation (9842 JP)Offer for Arcland Service (3085 JP).
• Key updates took place for Essential Metals (ESS AU), Genesis Minerals (GMD AU), Alliance Aviation (AQZ AU), AAG Energy (2686 HK), Lian Beng (LBG SP), and Oishi Group (OISHI TB).

• Dongwon Industries’ float rate is less than 10% (1 – 63.15% – 27.65% = 9.20%), which makes it ineligible for KOSPI 200. KRX will reflect this in the June review.
• The passive outflow size due to K200 deletion is expected to be about 50 billion won, which will cause an impact of about 28x ADTV.
• Considering this deletion has not been sufficiently exposed in the market, the actual price impact may be even more significant and preemptive.

• Ts Corporation (001790 KS) is the 21st company in our Korea Small Cap Gems series.
• TS Corp is one of the largest sugar refining companies in Korea. Rising raw sugar prices generally have a positive impact on TS Corp’s sales and profits. 
• TS Corp owns very valuable real estate assets that are much larger than its current market cap (299 billion won).

• Now that percentage of foreign shareholders has reached 30%, other foreign shareholders are more likely to support activist investors’ proposals, and companies are paying more attention to communication with investors.
• While cross-shareholdings held by banks etc. are declining, foreign shareholders and trust banks are on the rise. The holdings held by trust banks are managed by domestic institutional investors.
• Whether their exercise of voting rights changes from the past will be the key to improving governance and moving forward with solutions to issues that have been postponed until now.

• Inflationary headwinds in Latin America might have had a material effect in Q1.
• However, Coca-Cola’s EMEA and North American results will probably blossom once more.
• Most are non-core and unlikely to influence the stock’s valuation, KO stock is fairly valued.

• Etsy Inc delivered a mixed set of results during the quarter and managed to surpass the revenue expectations of analysts but its profitability was below par.
• The company’s management claims that its overall reach and consumer demand have increased and the services offered by the company are differentiated.
• The company’s marketing programs, including the Star Seller program, continued to benefit the company.

• IPAR announced its first quarter sales highlighting the continued momentum in demand the Company has been seeing in recent quarters. 
• IPAR’s major brands each grew by more than 20 percent compared to the year ago period. 
• IPAR raised full year sales and EPS outlook as the business continues to run with brisk demand

• Value Act’s investor activism campaign picked up steam following the death of Seven & I Holdings (3382 JP) founder.
• The board of Seven & I may have been aggravated by Value Act’s unreasonable demands and timing, leading to their first angry response in over two years.
• The damaged relationship between Seven & I and Value Act reduces the upside risk to our short thesis from disposal of underperforming businesses.

• Wesfarmers Ltd (WES AU) has made a non-binding indicative Offer, by way of a Scheme, for Silk Laser Australia (SLA AU), an operator of specialist clinic networks across Australia. 
• The Offer Price of $3.15/share is a decent 30.2% premium to last close. Wilson Asset Management, with 9.3% of shares out, is supportive. 
• Wesfarmers has been granted 30 days to undertake due diligence on an exclusive basis.

• We believe the recovery of China consumption is “not yet solid”, but not faltering.
• China catering sector’s recovery stays on track, although Q2 has historically been a low season.
• Long Xiabuxiabu and short Jiumaojiu to play the sector’s recovery while hedging against potential macro weakness.

• At TMA we deliver high probability outcomes by focusing on our 3 pillars of technical analysis. 1) Response to key levels. 2) Price action. 3) Momentum confirmation.
• China Mengniu Dairy Co Ltd (2319 HK), ANTA Sports Products Ltd (2020 HK) and Baidu Inc (9888 HK) are all trading at significant discounts to 2023 highs and LT highs.
• Today we highlight targeted support levels / buying opportunities in the coming 1-2 days in 2319 HK, 1-3 weeks in 2020 HK and 1-3 months in 9888 HK). 

• Q1 20223 sales exceed expectations with LFL sales growth of 13.0% versus consensus of 7.3%. 
• L’Oréal is ideally positioned in all regions, across all pricing points.
• China impact post-reopening still to be seen in figures. We expect upside from China in H2

• The S&P 500 is approaching the 4165-4200 area; we continue to believe this will cap upside in 2023, but we also acknowledge that a move to 4300-4325 is possible
• Considering limited upside in both scenarios, we continue to recommend shifting to defensives, particularly Health Care (XLV), Utilities (RYU, XLU), Consumer Staples (XLP), and precious metals miners (GDX)
• 10-Year and 30-Year Treasury yields testing short-term resistance while the US dollar (DXY) tests support at $101-101.50.

• The Keepers Holdings (KEEPR PM) reported 26% YoY revenue growth and 41% YoY profit growth for FY22. Based on our estimates, the stock trades at 7.7x/6.6x FY23e/24e PE.
• Net cash represents a healthy 21% of market capitalization, and given its strong profitability, the management seemed reasonably confident in maintaining its 50% payout ratio (5%/6% dividend yield FY24e/25e).
• The management guided a structural industry uptrend with teens growth across all its spirits for FY23e/24e. We believe a multiple of 15x is a fair multiple for this company. 

• I recently made my first purchase for the year, buying a core position in Brazilian holdco Companhia Brasileira de Distribuição (CBD:NYSE).
• I believe it has merely been caught up in the general market/SIVB sell-off and the price being offered is too good to pass up.
• CBD is engaged in supermarket/retailing operations and is controlled by the French giant Casino, with 41% ownership.

• Yerbaé has been posting accelerating sales growth (+124% YoY in Q1E), using its diversified and growing distribution network which covers over 10,000 retail doors across the U.S.
• CEO Todd Gibson is a beverage industry veteran, having experience at Hansen’s Energy (Monster), SoBe, FUZE Beverage, and Coca Cola
• YERB.U is trading at 3.0x 2024E sales compared to high-growth peers at 5.9x, despite having the highest sales growth and gross margins Yerbaé Brands Corp. (YERB.U:TSXV) produces energy drinks using plant-based ingredients, tailored to health-conscious active lifestyle consumers.

• Astra International (ASII IJ) registered a strong start to the year with strong growth across most of its major divisions in 1Q2023, including 4W, 2W, Financial Services, and Heavy Equipment. 
• The company’s market share in the auto business remained stable and increased for motorcycles, whilst heavy equipment and mining benefited from higher coal prices and infrastructure improving revenues on toll-roads.
• Astra has launched a new JV with Equinix to build data centres in Indonesia, which makes an interesting addition to its digital economy exposure. Valuations are attractive relative to history. 

• Despite a 15% drop in March 2023, Miniso (MNSO US) remains relatively expensive compared to peers, having rallied 330% between October 2022 and March 2023.
• We think this is a good opportunity to short MINISO Group Holding (9896 HK) as we see around 35% downside purely from a valuation angle.
• Meanwhile, red flags like insider selling, Blue Orca’s accusations, senior management departures, and a mature domestic market could send the share price back below $5.0.

• Several news media outlets reported that Leapmotor (9863 HK) had inflated its sales data for December 2022 based on distributor claims.
• With China ending its new energy vehicle subsidy policy in 2022, EV makers were rushing to sell as many units as possible before embracing price hikes and face competition.
• The company announced a price hike in January and sales volumes have declined in 1Q2023. We think the company will struggle to increase its sales volume going forward.

• The fact that there is a certain correlation between ROE+DOE and TOPIX reconfirms that it’s effective to ask management to improve performance in terms of both profitability and shareholder return.
• While % change in shareholders’ equity moves in line with % of change in net profit, dividend payout moves moves differently. Many companies still adopt a “stable dividend” policy.
• If shareholders propose share repurchases, dividend increases, etc., it can be said that management has determined that the shareholder return (ROE+DOE) it has secured is not sufficient.

• Following the company’s fiscal 2Q sales release, our thesis remains intact.
• We are encouraged by the improving sales trends RCI experienced in March and early April.
• Further, we see several catalysts on the horizon to provide for accelerating growth over the next 12-18 months.

• Lear had a strong quarterly performance and managed an all-around beat.
• Its sales increased by 10% to $5.4 billion, and core operating profitability rose by 67% to $265 million.
• The Lear Forward initiative also improved the company’s cash flow performance.

• Living a healthy lifestyle can be burdensome and expensive. Indonesian startup Fit Hub is on a mission to democratize health for middle- and low-income households in Indonesia by offering affordable gym memberships.
• In Indonesia, the average membership costs US$50 per month, while the startup charges US$17.
• Since being founded in 2020, Fit Hub has opened up 60 offline clubs across 14 cities in Indonesia. It plans to open 100 clubs by the end of the year.

• Monster Beverages’ last result was a colossal disappointment as the company faced challenges meeting the increased demand for its products due to the rampant supply chain issues.
• Despite these issues, the company reported a 3.1% increase in operating income, driven by increased input costs and selling expenses.
• The company saw positive results from its Java Monster line, with increased sales and increased share in its coffee plus energy category.

• Darden Restaurants had a strong quarter and exceeded the market expectations with respect to the top and bottom lines.
• Despite an 8% increase in hourly wages, restaurant labor was 120 basis points better than the previous year due to sales leverage.
• Since Darden used higher revenues to leverage higher inflation on utilities and higher repairs and maintenance costs, restaurant expenses were 40 basis points better than the previous year.

• Alibaba broke down Taobao Tmall Center, the most important department, into three departments.
• Industry Development Department One is actually “other businesses” after the reorganization.
• Following Department One will help investors to understand Alibaba’s financials.

• In May 2022, Yamada Denki (9831 JP) announced a very large buyback. GINORMOUS – in fact – at 23.9% of shares out ex-Treasury if maximum shares were bought.
• So far, YDH is 83.5% through, and at the recent pace, they will end it 8 May having bought 183-184mm shares (21.9% of TSO) spending 86.6% of funds allocated.
• That’s why the announcement lowering the March 2023 div to ¥12/share vs ¥18/share last year was just weird. And bodes badly. We need a lightbulb moment for a lightbulb dilemma.

• ZJLD Group (ZJLD HK) is looking to raise between US$775m-US$933m (including the oversubscription option) in its IPO by selling 564.3m shares at a price range of HK$10.78-HK$12.98/share.
• ZJLD Group (ZJLD HK) will not get Fast Entry to any indices but should be added to the HSCI and Stock Connect in September.
• Peer performance has not been great this year and that could weigh on the ZJLD Group (ZJLD HK) listing.

• On the 10th March, Thai Beverage (THBEV SP) proposed taking 79.66%-held Oishi Group PCL (OISHI TB) private, at an Offer price of THB 59/share, a 26.9% premium to last close. 
• This Delisting Offer requires a shareholder vote which will take place on the 3<May. Payment may occur mid-to-late August. 
• In its report yesterday, the IFA reckons “that the shareholders should approve of the voluntary delisting“.

• The new share placement of Anta Sports Products (2020 HK) has caught the market by surprise, but we think long-term story for the company should not be affected.
• With proceeds to be used for repayment of outstanding debts, expansion in China and pursuing SE Asia markets, we should not overlook the benefits to be generated. 
• An IPO of Amer Sports is clearly brewing and this represents an important catalyst. Anta’s 26.4x and 20.9x FY23 and FY24 PERs do not look stretched relative to earnings growth. 

• British American Tobacco delivered decent financial results and successfully navigated a progressively challenging macro environment.
• In New Categories, the company delivered strong revenue growth driven by Geo expansion, innovation, and share growth.
• British American Tobacco launched the first connected Vapour device of the Group, Vuse ePod2 plus, that drives increased pod consumption.

• Pointerra Ltd (ASX:3DP) provides a powerful cloud-based solution (Pointerra3D) for managing, visualising, analysing, using, and sharing massive 3D point clouds and datasets.
• The company has taken a highly manual, slow, and cost-prohibitive process and turned it into a fast, efficient workflow solution for 3D data, enabling digital asset management from any device in any location.
• The Pointerra3D suite of solutions spans target sectors including survey and mapping; architecture, engineering, and construction (AEC); utilities; transport; resources; and defence and intelligence. 

• Colgate entered 2023 on a positive note with decent top-line momentum and delivered an all-around beat in the last result.
• The company saw good growth in organic sales in four categories which include double-digit growth in organic sales in Pet Nutrition.
• Colgate, is launching the Optic White Pro Series and its new MPS whitening technology all over the world.

• XWELL reported 2022 results that were slightly better than preliminary results issued on March 30.
• Revenues for the quarter were $7.5 million, with $4.5 million coming from the spa business (XpresSpa and Treat), $2.6 million from the CDC program and the one remaining XpresCheck location, and $.5 million from HyperPointe.
• While 1Q is usually a slower quarter for the travel industry, we expect the company to continue to focus on improving the profitability of its spa business primarily through the closure of a few stores that don’t contribute to profitability.

• Anta Sports Products (2020 HK)  aims to raise around US$1.5bn in its top-up placement. 
• Anta hasn’t specified what it aims to do with the money that it’s looking to raise, furthermore, it’s already net cash.
• In this note, we will talk about the placement and run the deal through our ECM framework.

• With 3.5 months left in the dataset, the data is pretty close to settled. The interesting bits are elsewhere. There are three auto DELETEs and two auto ADDs. Maybe.
• One auto-ADD is Toshiba, which may have a deal on it. That leaves two to add for sector balance. That could be Nitori (9843 JP) and Zozo (3092 JP).
• Friday’s move on Fast Retailing brings in the issue of the new capping function. That would be a different US$2bn selldown. Lots of gory details here. 

• Genting Bhd (GENT MK)‘s implied stub and the simple ratio (GENT / Genting Singapore (GENS SP)) are at multi-year lows.
• Preceding my comments on Genting are the weekly setup/unwind tables for Asia-Pacific Holdcos.
• These relationships trade with a minimum liquidity of US$1mn, and a % market capitalisation >20%.

• ZJLD Group (ZJLD HK) is looking to raise around US$811m in its Hong Kong IPO.
• ZJLD Group (ZJLD) is a Chinese liquor company primarily producing baijiu.
• In this note, we will look at deal dynamics and share our thoughts on valuation.

• ZJLD Group (ZJLD HK) has launched its HKEx listing at HK$10.78-12.98 per share to raise up to US$811 million. Books are open from 17 to 20 April.
• We previously discussed the IPO in ZJLD Group IPO: The Bull Case, ZJLD Group IPO: The Bear Case and ZJLD Group IPO: Valuation First Look. 
• Our valuation analysis suggests that the IPO price range is attractive. Therefore, we would participate in the IPO. 

• The Oishi Group PCL (OISHI TB) IFA opines that shareholders approve Thai Beverage (THBEV SP)’s delisting tender offer of THB59.00 per share at the EGM on 3 May.
• The offer is conditional on Oishi shareholder approval which requires 75% approval by total outstanding shares and <10% rejection by total outstanding shares.
• The offer is attractive to the IFA’s fair value of THB53.48-56.42 per share. At last close and the end-July completion, the gross and annualised spread is 2.2% and 8.1%, respectively.

• Many companies have worked to ensure labour productivity by curbing personnel costs by reducing work hours and shifting from full-time to part-time workers, as well as by controlling depreciation.
• Maintaining labor productivity by converting to part-time and reducing working hours of full-time employees has been an effective measure to ensure operating profits margins, but it also carries risks.
• Personnel cost/sales have bottomed out in 2018 and are on the rise. With cost structures changing dramatically after the economic reopening, controlling labor costs will be more difficult than ever.

• Nike delivered another strong quarter with revenue growth across all geographies, channels, and brands.
• It had strong digital growth, fueled by increased traffic on its apps and mobile.
• In APLA, the brand momentum of Nike continues to fuel strong growth.

• Seven & I has announced major restructuring of its struggling Ito-Yokado GMS chain – a company that big investors have long demanded be sold off entirely. 
• The latest round of cuts had to wait until the company’s founder finally passed away, although are likely not going to be the last.
• Seven & I has long had a coherent plan to rationalise – but was just waiting for the founder to pass – with a series of disposals now likely.

• Walgreens Boots Alliance produced a strong second quarter which happened to be an all-around beat.
• Also, this quarter served as a turning point in their transition to the healthcare industry.
• Besides that, Boots had a fantastic quarter in the international segment, achieving retail comp growth of 16% over the same period last year.

• On Friday Arcland Sakamoto (9842 JP) and restaurant franchise subsidiary Arcland Service (3085 JP), which it launched in 1993 and IPOed in 2007, announced they had agreed to merge. 
• Arcland SHD runs 18 restaurant brands, of which Katsuya is most well-known, with a total of 750 or so restaurants managed globally. It has grown consistently.
• The merger ratio is at an all-time high for Arcland SHD. This should be a done deal but I might expect some complaints. I think Arclands is probably overpaying. 

• We should aim for price movement patterns with relatively low market exposure. One of them is the post-effective upward price movement of deletions.
• The relative price performance for one week after the implementation compared to KOSPI 200 was consistently positive, ranging from 2.41% to 6.82%.
• Given the recent price movement of four deletion candidates, there is again a high possibility that the price distortion caused by MSCI flow will revert after the effective date.

• In the ever-changing landscape of SPACs, a new trend has emerged that has got investors talking: Re-SPACs.
• Last week, electric vehicle startup Arrival announced its intention to Re-SPAC with Kensington Capital Acquisition Corp. V, signifying a growing interest among De-SPAC companies in exploring alternative capital-raising strategies.
• Traditionally, SPACs have been a popular vehicle for ushering businesses into the public markets.

• The fact that Tesla Korea is losing its market share significantly in Korea portends increased challenges for Tesla Motors on a global basis. 
• The number of new Tesla vehicles registered in Korea was 1,303 units in 1Q 2023, down 52% YoY. 
• In this insight, we provide three major reasons for Tesla’s market share losses in Korea. We also provide Tesla Korea’s 2022 results analysis.

• Arcland Service (3085 JP)/Arcland SHD has recommended Arcland Sakamoto (9842 JP)/Arclands’ share exchange offer at 1.87 Arclands shares per Archland SHD share.
• The implied offer value of JPY3,051.84 per share at Arclands’ last close price is a 35.3% premium to the undisturbed price of JPY2,256.00 per share (14 April).
• The offer requires Arcland OGM (25 May) and Arcland SHD EGM (22 June) shareholder approval. Arcland SHD shareholders will be supportive as the deal metrics are attractive.  

• 26 Capital, a US hedge fund that has crafted an innovative spac deal to bring the leading Manila casino property into an IPO by this fall has stalled.
• The overall tone of recovery in Philippine gaming in this early post-covid era is speeding up and expected to meet or surpass baseline 1919 growth easily.
• We see an attractive entry point for Okada’s owner, Tokyo traded Universal Entertainment, based both on its strong performance and the ultimate success of the IPO.

• While the shareholding of banks and insurances has dropped significantly, that of foreign shareholders has risen to 30%, making it impossible to ignore the opinions of overseas investors as before.
• Since the introduction of the Corporate Governance Code, the concept of governance and ROE has permeated companies, making it possible for them to understand the background of activist investors’ proposals.
• Besides the close relationship between changes in valuations and changes in foreign shareholding, overseas investors account for 70% of TSE’s transactions, forcing management to increasingly listen to overseas investor’s voices.

• Q1 better-than-expected sales led by Fashion & Leather Goods; positive surprise in the Selective Retailing division
• Beat on the back of China’s economic recovery and the resilience of the rest of the world, particularly Europe
• EPS estimates lifted by 4% and 5%. Momentum is strong.

• GTX has entered into an agreement with its two largest shareholders to force the conversion of its Series A Preferred stock into common stock
• The agreement with Centerbridge Partners and Oaktree Capital Management calls for GTX to repurchase shares $570 million of Series A Preferred stock and pay dividends owed
• GTX had already claimed it would have reached the adjusted EBITDA requirement for the forced conversion. The transaction is accretive to GTX’s earnings.

• JD.com Inc (9618 HK) has declined heavily in 2023 (-44.5%), producing a new 5 month low of 143.50 on 13 April 2023.
• The 143.50 low was plagued by extreme ST momentum failure and the new low was quick to fail and reverse.
• Our TSS methodology triggered a TSS < 10 at the low and justifies a further 9-18% upswing in the coming 1-2 weeks.

• The data in this insight is collated from the “shareholding disclosure” link on the HKEx website.
• Often there is a corresponding HKEx announcement on the increase – or decrease – in the shareholding by directors. Or pledging. However, such disclosures are by no means an absolute.
• Stocks mentioned in this insight include: Melco International Development (200 HK), CMGE Tech (302 HK), Differ Group Auto (6878 HK), and Sino Biopharmaceutical (1177 HK)

• Retail media in its traditional sense is nothing new, simply referring to the use of advertising in stores, but in modern terms retail media is something far, far bigger. 
• It is not only a trend in the US, but one that is about to explode in Japan – although in a very different format.
• With purchase rates up two-fold in early experiments, the potential for brands advertising through retail stores will be significant with some estimates suggesting a ¥20 trillion market.

• Adastria is on a roll, capturing more market share in both the core apparel market as well as through licensing (Forever 21) and home decoration and other lifestyle markets.
• Until now, it has focused on slightly premium mass markets but a new chain will face Uniqlo and Muji head on in apparel basics.
• It is also adding a new basics chain in home decoration and hoovering up contracts to supply apparel to chain stores. 

• The Keepers Holdings (KEEPR PM) declares its FY22 results on the 14th of April 2023, and Shakey’s Pizza (PIZZA PM) on the 20th of April 2023. 
• Despite its recent move upwards, The Keepers Holdings (KEEPR PM) trades at 9.6x/7.5x FY22e/23e PE and Shakey’s Pizza (PIZZA PM) at 17.7x/11.3x FY22e/23e, with both boasting high double-digit future growth.
• We discuss our expectations on the results for FY22 and prospects for Q1 2023. For mid/small-cap investors, these are great companies to invest in for exposure to the Philippines.

• Guoquan Food (Shanghai) (1786512D CH) is looking to raise about US$500m in its upcoming Hong Kong IPO.
• Guoquan Food (Shanghai) is a home meal solutions provider in China.
• Offering a wide variety of home meal solutions products under its Guoquan Shihui (鍋圈食匯) brand, the firm had a total of 755 SKUs as of Dec 22. 

• The items to be disclosed by 300 listed companies with active women are expected to be disclosed in the Human Capital section of the Sustainability section of Annual Securities Report.
• Investors will now decide whether these disclosure items have an impact on their investment or whether they need to seek disclosure of further material factors.
• In Metrical universe, the ratio of female executives is also useful for investment tips, as it has been found to have a significant positive correlation with ROA and Tobin’s q.

• We expect Luckin to report 1Q23 revenue at 77.0% YoY to RMB4,257mn, non-GAAP operating margin and net margin are expected to increase 12.6ppt and 9.1ppt to 16.4% and 13.2%; 
• We think the current moderate competition can bring positive externality to coffee players, whereas it may hurt street tea shops; 
• We maintain the stock as BUY and raise TP by US$1 to US$41.

• The memo I shared about Kura Sushi five days ago had two conclusions.
• The fundamentals of the business continue to endure and the company was going to have to raise cash fairly soon.
• I noted that “I believe within the next 6-12 months, we may see Kura issue additional stock or tap into their credit line”.

Smiths News announced yesterday that it has secured its fifth major publisher contract renewal with News UK & Ireland, publisher of The Sun, The Times and The Sunday Times. This follows new five-year agreements with Associated Newspapers, Telegraph Media Group (TMG), Frontline and Seymour Distribution, which collectively account for 65% of current newspaper and magazine revenues. We expect additional contract renewals to be secured in the next year. These renewals bolster the company’s cash-generative business model, providing a steady stream of revenue up to 2029/30. Our valuation remains unchanged at 89p, representing 78% upside to the current share price.