Consumer

• State-Owned-Entities (SOEs) in Tianjin are set to complete the migration of their data from private sector operators like Alibaba Group (9988 HK) to a state-backed cloud by 30th Sept 2022.
• This has already started to tip the balance of power in Chinese cloud computing in favour of politically favoured cloud operators like China Telecom.
• We think the impact of nationalising the cloud could escalate to Alibaba Cloud’s overseas markets as most of its customers overseas are Chinese companies with a global presence.

• Leapmotor is getting ready to complete its IPO in Hong Kong in the next few weeks, aiming to raise US$1 billion to US$1.5 billion.
• Leapmotor is one of the fastest growing pure play EV companies in China in terms of delivery volume. Leapmotor shipped more than 43,000 EVs in 2021, up 443.5% YoY.
• Leapmotor’s revenue surged from 117 million RMB in 2019 to 3,132 million RMB in 2021. Operating margin improved from -625% in 2019 to -137.7% in 2020, and -91.6% in 2021.

• In 2Q22, revenue growth rate accelerated and the operating profit achieved record high.
• However, we believe PDD does not fully explain its exclusive advantages over competitors.
• We set a downside of 19% and a price target of US$47 for year end 2023.

• YH Entertainment Group (2306 HK) is looking to raise up to US$144m in its Hong Kong IPO.
• YH Entertainment (YHE) is an artist management company in China. Its business covers the entire artist management industry value chain, from auditioning, training, artist operation to artist promotion.
• As per Frost & Sullivan (F&S), YHE was ranked first amongst artist management companies in China with a market share of 1.9%, based on artist management revenue generated in 2021. 

• Leapmotor (LM) aims to raise around US$1.5bn in its Hong Kong IPO. LM is a smart EV company based in China, founded in 2015.
• As of end Jun 22, it had delivered a total of 104,829 cars with most of its sales coming from its mini units, T03.
• In our previous notes, we spoke about the company’s past performance. In this note, we will have a look at its PHIP updates.

• Not many individual investors understand the value of ESG investing and buy ESG investment trusts, as inflows/outflows from ESG investment trusts have much to do with market volatility.
• It’s unclear how much ESG investing contributed to the performance, as aspects were saved by the performance of sectors in which they invest and by the benefits of weak yen.
• Efforts must be made to help individual investors understand the value of ESG investing and encourage long-term investment. To this end, investment managers should establish investment approach to ESG investing.

• IPAR has taken over the Donna Karan and DKNY brands setting the stage for further growth with larger brand licenses in its portfolio
• IPAR reported second quarter sales of $244.7 million, which was in line with IPAR’s preannouncement
• The Euro declining in value versus the US Dollar dented European sales growth figures, but sales managed to increase by double-digits over last year

• JD Health bucked the trend and grew in 2022H1. The Company has turned a profit first in front of its competitors Alibaba Health and Ping An Good Doctor.
• The performance of the second growth point would determine whether JD Health can maintain good momentum under the challenges of policy risks and possible future bottlenecks of products revenue growth. 
• Hopefully, the smart healthcare solutions and digital health business or the pet healthcare business can achieve breakthroughs. Then, there’re more certainty in long-term performance and valuation growth of JD Health.

• PepsiCo reported a decent result in the quarter as the business momentum continued in spite of ongoing geopolitical and macroeconomic volatility and greater levels of inflation over the markets.
• The company delivered an all-aroubd beat driven by organic revenue growth of double digits in the quarter.
• We provide the stock of PepsiCo with a ‘Hold’ rating with a revision in the target price.

• Restaurants Brands International has been facing a difficult and uncertain environment because of ongoing wage and commodity inflation, broader macro uncertainties, and rising interest rates impacting the restaurant industry.
• During the quarter, Restaurant Brands raised menu prices to help offset rising freight and food costs.
• We provide a ‘Hold’ rating on the stock of Restaurants Brands International with a revision in the target price.

• Friday in US time, the China Securities Regulatory Commission (CSRC), China’s MOF, and the US Public Company Accounting Oversight Board (PCAOB) “agreed” on a Statement of Protocol.
• This SoP sets the outlines for PCAOB access to inspect/investigate audit papers and accounting firms in China and HK for companies listed in the US.
• The releases’ difference in language is to be expected – different constituencies – but as PCAOB Chair Williams said, “Now we will find out whether those promises hold up.”

• PT Surya Citra Media 1H2022 reflects a recovery in advertising activity but also a normalisation of costs and investment in future growth, especially in its leading Indonesian OTT business Vidio.
• The company continues to gain audience share, as it invests in new fresh content and its sporting content such as Liga 1, and the English Premier League kicks in.
• PT Surya Citra Media is a proxy for recovering advertising spending as the Indonesian economy recovers plus its digital strategy through Vidio has already been proving successful.

• We turn Bullish on Shiseido. The market has now digested the weak results for 2022 and can look to a recovery over the next year
• Recent commentary from Estee Lauder’s CEO suggest that China is recovering and that the outlook is bright
• Shiseido is one of the key beneficiaries as Japan re-opens its borders to foreign travellers

• Chongqing Hongjiu Fruit (6689 HK) is looking to raise up to US$93m in its HK IPO.
• Chongqing Hongjiu Fruit (CHJF) is a multi-brand fresh fruit distributor in China with an end-to-end supply chain. They have 1.0% market share as China’s second largest fruit distributor
• CHJF had grown at an impressive rate even in the face of COVID-19. In this note, we will take a look at its valuations vs that of listed peers.

• Gome Retail Holdings Ltd, one of China’s largest bricks-and-mortar electronics retailers, plans to acquire real estate to develop into shopping malls and a customer experience center.
• The company will modify an eight-story shopping mall in Gome Commercial Capital into an arena capable of accommodating roughly 300 manufacturers of home appliances and consumer electronics to display and sell their products.
• The Beijing property covers an area of 524,638 square meters and also includes catering and entertainment facilities, a hotel, a warehouse and an underground parking lot.

• For the first time since the Covid-19 pandemic, Booking Holdings managed to exceed the levels for room nights in the last quarter which is a significant milestone in its recovery.
• Nearly 0.25 billion room nights were reserved by the company’s clients in Q2, a slight increase from the first quarter’s 9% fall and a rise of 16% compared to Q2 2019.
• The near-term macroeconomic climate is unpredictable which is why we maintain our ‘Hold’ rating on Booking Holdings with a revised target price.

• Procter and Gamble delivered a decent top-line growth in the last quarter surpassing Wall Street expectations and continued its strong cash productivity which enables its high dividend payouts.
• Feminine care, fabric care, and Personal health care were up by double digits, whereas personal care, skin and hair care, and oral and home care all grew low-single digit.
• We provide the stock of Procter and Gamble Company with a ‘Hold’ rating with a revision in the target price.

• Conagra Brands’ strong result was driven by the excellent performance of its snacks business and it managed to deliver an all-around beat.
• With the joint venture, Ardent Mills, the company had a strong quarter performance that recently managed through the latest instability in the wheat markets as well as proved to be an effective windbreak against inflation.
• Conagra brands are planning to deliver $1 billion in cost savings in the upcoming three years as it updates and renovates its supply chain.

• YH Entertainment Group (2306 HK) is looking to raise up to US$144m in its Hong Kong IPO.
• YH Entertainment (YHE) is an artist management company in China. Its business covers the entire artist management industry value chain, from auditioning, training, artist operation to artist promotion.
• As per Frost & Sullivan (F&S), YHE was ranked first amongst artist management companies in China with a market share of 1.9%, based on artist management revenue generated in 2021. 

• WM Motor Technology Co Ltd (WMT CH) (WMM) is looking to raise about US$1bn in its upcoming Hong Kong IPO.
• WM Motor is a smart EV player in China. As of the latest practicable date, it had a total of four main EV models. 
• In this note, we talk about the not-so-positive aspects of the deal.

• Nike Inc had another stellar quarter and managed to surpass Wall Street expectations in terms of revenues as well as earnings with plenty of new innovations coming out.
• A new lifestyle show, Nike Spark Flynit, was launched that introduces the latest innovation of NIKE Running with the Spark cushioning system.
• This quarter, in Jordan, Luka Doncic debuted his anticipated signature shoe Luka 1, during the NBA Playoff.

• Colgate-Palmolive (NYSE:CL) is hardly a business for risk-seeking and short-term oriented investors.
• While the management has given us a master class in long-term value creation, the share price is also unlikely to make anyone rich quickly.
• On the contrary, CL is an investment akin for anyone looking for steady value accumulation, superior risk-adjusted returns and a wide moat.

• Levi Strauss & Co continued to see a strong consumer demand in the last quarter as the management continued executing its strategic initiatives that are viewed clearly in the results.
• Its strategic priorities continue to be focused on margin expansion with a direct-to-consumer (D2C) first approach.
• We provide Levi Strauss with a ‘Buy’ rating and a revision in the target price.

• CTG Duty-Free Group has priced its IPO at HK$158 per share, at a slight premium to the midpoint of the indicative IPO price range of HK$143.5-165.5 per share.
• At HK$158 per share, the company raised net proceeds of HK$15,892.3 (approx. US$2.0bn) and the IPO is priced at an almost 30% discount to CTG’s A-share last close price.
• Cornerstone investors subscribed for approx. 38.4% of the H-share offering (or 1.9% of the total issued share capital of the company post-offering) with some existing shareholders subscribing under placing guidelines.

• The revenue growth rate fell to 5% in 2Q22 due to the lockdown in Shanghai and Yangtze delta.
• However, freezers became popular in June and July because of the experience during the lockdown.
• We believe the stock has an upside of 21% based on EBITDA, but the upside can be significant if based on sales-related ratios.

• China Tourism Group Duty Free Corp Ltd (1880 HK)/CTGDF priced its H Share at HK$158.00 per share to raise net proceeds of US$2.0 billion. The H Share starts trading tomorrow.
• The H Share listing price implies an AH discount of 27.2% at A Share price of RMB189.80. This compares to an average AH discount of 46.6% of listed AH shares.
• The China Tourism Group Duty Free Corp Ltd (601888 CH) A Shares are trading close to fair value. The H Shares valuation is unattractive compared to peers. 

• 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. However, such disclosures are by no means an absolute. 
• These insights also flag those companies where shares have been pledged, both recently and ongoing.

• JD Health reported 1H2022 results. Revenue increased 48.3% YoY to RMB20.2bn (vs consensus RMB19.4bn) while managed to report a small OP of RMB60m (0.3% of revenue) for the period.
• Excluding share-based payment expenses, JD Health reported an OP of RMB1.0bn vs RMB564m in the same period a year ago, resulting in an OPM of 5.1% vs 4.1% in 1H2021.
• The growth in annual active user account growth has declined during 1H2022, however, it was mainly due to decrease in marketing spend.

• Leapmotor (2007699D HK), a Chinese EV manufacturer, will start its listing hearing for a US$1.5 billion HKEx IPO this week, according to press reports.
• In Leapmotor IPO: The Bull Case, we highlighted the key elements of the bull case. In this note, we outline the bear case. 
• The key elements of the bear case rest on a slow ramp-up, lower revenue, high EBIT and FCF loss margin compared to peers at a similar stage of development.

• Sido Muncul recently released its 1H2022, which reflected some impact from inflationary pressure impacting the purchasing power of its customer base, especially for herbal products.
• The company’s food and beverage division and notably energy drinks saw some impact from a slowdown due to consumers taking a longer Lebaran break this year but saw strong exports.
• Sido Muncul (SIDO IJ) saw a sharp correction post its numbers but we would expect some recovery in 1H2022 and a resumption of growth in FY2023 plus valuations are attractive.

• Based on the correlation between revenue and China’s online retail sales, we estimate Pinduoduo (PDD US)’s Q2 revenue to beat consensus by around RMB 2.4bn.
• Our cost estimates translate the above revenue to an OP of RMB 4.0bn in 2Q22 compared to RMB 3.6bn for consensus.
• Even though consensus seems to have over-corrected its 2Q22 assumptions, it is still hung up on old assumptions for the medium term.

• Our earnings projections for China Tourism Group Duty Free Corp Ltd (1880 HK) are 14% and 18% below market consensus respectively. We think these are more realistic expectations.
• At IPO price of HK$158, CDFC H-share sits on 23.9x FY23F PER. We think it is difficult to trade above 22x – the average for top consumer discretionary names.
• Weakened visitor appetite to Sanya, potentially higher discounts, increase in border opening, higher fixed cost and uncertainties for duty free policies beyond 2025 are negative earnings factors.

• Foot Locker has been working hard to reduce its dependence on Nike and offer a broader set offerings over its channels categories and brands that have been yielding positive results.
• The partnership of Foot Locker with Puma continues to drive heat in the basketball categories as MB.01 remains the best-selling shoe in the company.
• It now has the brand worldwide in 95 doors, and it continues to grow its presence of the brand with robust results.

• We expect Emperador (EMI SP) to be added to the FTSE Straits Times Index at the September rebalance after meeting the free float, market cap and liquidity requirements. 
• As the lowest ranked current index constituent, we expect Comfortdelgro Corp (CD SP) will be deleted heaping pressure on the beleaguered stock with over 4 days of ADV to sell.
• Emperador (EMP PM) is an inclusion to the FTSE All-World Index and there is a lot to buy on that line from passive trackers at the close on 16 September.

• Last week Yum China Holdings Inc (9987 HK)  announced it has applied for voluntary conversion to a primary listing on the Hong Kong Stock Exchange.
• Should all necessary approvals from the HKEx be satisfied, Yum will become dual primary listed on the New York Stock Exchange and the HKEx.
• This regulatory process, facilitated by rules introduced by the HKEx over the past year, enables the de-listing of the ADRs and the smooth transition to a sole HK listing.

• Bright Scholar Education (BEDU US) (BSE), an operator of schools across China, the UK, and the US, received an Offer earlier this year from Huiyan Yang, the chairperson.
• Yang is offering US$3.32/ADS – adjusted for the recent reverse split – a 44% premium to the undisturbed price. 
• Yang controls 92.5% of the votes. There is no shareholder vote on this transaction should a firm Offer unfold.

• With Q1 park attendance falling short of expectations, it seems unlikely that Oriental Land (4661 JP) will beat FY23 guidance as expected by consensus.
• The consensus medium outlook is also questionable as the management seems less keen on opening Fantasy Springs as soon as possible.
• At over 29.2x EV/consensus FY27 OP (56.5x at LSR-FY27-OP), on exaggerated medium-term growth targets, Oriental Land probably has more downside than some of the expensive tech names on the market.

• Campus Activewear (CAMPUS IN) has received the court’s approval for amalgamation of Campus AI Pvt Ltd into the standalone entity.
• Amidst the plethora of positive rationale for the amalgamation, the one that stands out from the rest is the cleaning up of the books of campus activewear. 
• With the amalgamation scheme, the company also gets rid of the negative capital reserve balance. Is this the only adjustment, or are there more things to clean?

• Leapmotor (2007699D HK), a Chinese EV manufacturer, will start its listing hearing for a US$1.5 billion HKEx IPO this week, according to press reports.
• Leapmotor ranked fifth among the global pure-play EV companies and fourth among the pure-play EV companies based in China as measured by sales volume in 2021. 
• The key elements of the bull case rest on a solid roadmap, executive capabilities, explosive growth, declining loss margin and declining FCF burn.

• China Tourism Group Duty Free Corporation Limited (CDF) raised around US$2.4bn in its H-share listing in Hong Kong, after pricing its IPO at HKD158/share.
• As per Frost & Sullivan, CDF had 92.3% market share by retail revenue in China duty-free merchandise sales in 2020.
• In this note, we talk about the deal pricing and the trading dynamics.

• Despite the difficult climate, Tapestry’s financial performance in the recent quarter was decent.
• It failed to meet revenue expectations of the Wall Street but managed to produce an earnings beat.
• AUR growth for handbags worldwide increased by about 20% due to this outstanding performance, intentional reductions in promotional activities, and tactical price increases.

• Hyatt witnessed a strong recovery in group and business transient demand and saw strong levels of leisure demand.
• The management is on track to turn the high leisure demand into high rate realization, capitalize on fee increases, and enable margin expansion.
• The Hyatt management is adopting an increasingly data-driven approach and recently expanded their relationship with Knowland to deliver value across its portfolio.

• China-based Lazbao Group, an integrated service provider, has closed its series B round, raising “tens of millions of dollars.”
• Lazbao provides ecommerce services to Southeast Asia, offering supply chain management, ecommerce operations, warehousing, logistics, marketing, cross-border payments, and a digital enterprise resource planning system.
• It has operations in Indonesia, Thailand, the Philippines, Vietnam, and Malaysia.

• Fast Retailing (9983 JP)  has rallied 60% during the last three-months on better-than-expected Q3 performance and a relatively strong bounce in Topix exceeding the upper-end of the trend-channel by 3%.
• Although 20% below the all-time high, reached during the COVID pandemic, the Fast Retailing to Topix  ratio is currently near the pre-COVID peak and starting to show some resistance.
• We would look to short Fast Retailing  with expectations of weakness in overseas markets such as North America and Europe in addition to the already struggling Chinese market.

• The Pinkfong Company was valued at about 1 trillion won, according to local reports in early 2022. Samsung Publishing (068290 KS) owns a 16.8% stake in The Pink Fong company.
• For now, The Pinkfong Company does not have any near term plans for an IPO. However, it may try to complete its IPO sometime in 2023/2024.
• The Pinkfong Company’s sales increased by nearly 500% in the US to reach 24.9 billion in 2021, accounting for 30% of the company’s total sales in 2021.

• Ford performed well during the second quarter despite a difficult environment that included supply chain disruptions, numerous new economic challenges, and general uncertainty.
• It managed to surpass Wall Street expectations in terms of both, revenues as well as earnings.
• The Ford+ strategy, which is Ford’s best chance to add value since they scaled the Model T, is why they achieved these achievements.

Melco Resorts’ Q2/22 results were in line with our expectations. Positively, the company’s overseas assets (in the Philippines and Cyprus) reported strong revenue growth and positive EBITDA, which partly offset the very weak performance in Macau. In addition, the company’s liquidity is strongest among peers, with sufficient cash and availability under its credit facility to last 22 months in a zero-revenue scenario. We expect the company’s expansionary capex to be curtailed in 2023 (after the remaining USD 250 mn of capex for Studio City Phase 2). That said, we view negatively MLCO’s small share repurchases.

• Darden Restaurants delivered a decent quarterly result exceeding sales expectations and having fairly good earnings despite the highly inflationary environment.
• The 2022 fiscal has been good for the company despite the impact of the Omicron variant as its brands continue to strengthen their business models.
• While LongHorn and other business segments saw lower segment profit margins in the last quarter due to higher inflation levels and other investments made in those businesses since pre-COVID, Olive Garden and Fine Dining segments saw segment profit margin growth this quarter.

• Given the impact of inflationary headwinds, Domino’s has been working out ways to improve its consumer pricing architecture in the U.S.
• The management saw the average price rise close to 6% in the last quarter which helped the company surpass revenue expectations of Wall Street.
• In the new season of Stranger Things, they also introduced their Mind Ordering app, which offered a new ordering experience.

• WM Motor Technology Co Ltd (WMT CH) (WMM) is looking to raise about US$1bn in its upcoming Hong Kong IPO.
• WM Motor is a smart EV player in China. As of the latest practicable date, it had a total of four main EV models. 
• In this note, we talk about the positive aspects of the deal.

Lucror Analytics Morning Views comprise our fundamental credit analysis, opinions and trade recommendations on high yield issuers in the region, based on key company-specific developments in the past 24 hours. Our Morning Views include a section with a brief market commentary, key market indicators and a macroeconomic and corporate event calendar.

• Golden Eagle Retail
• KWG Living Group

• FTSE announced the results of the September SAIR for the FTSE All-World/All-Cap indices on Friday. There are 243 changes (adds, deletes, migrations across AW/AC) across Asia-Pac.
• The largest inflows will go to PSMC (6770 TT), Sumber Alfaria Trijaya (AMRT IJ),  Daqo New Energy (DQ US) and Tianqi Lithium (002466 CH).
• FTSE will switch index membership from the US ADRs to the HK listings for New Oriental Education & Technology Group (9901 HK) and XPeng (9868 HK). 

• The Hang Seng Index Team announced the index review for the Hang Seng Tech Index Friday after the close. There were no additions or deletions.
• However, there is a 4.9% one-way turnover on reasonably heavy FAF and capping changes. Sensetime sees a huge FAF increase. Tencent, Meituan, and Kuaishou get re-capped higher. Xiaomi lower.
• There is a fair bit of flow, but the obvious big name – SenseTime Group (20 HK) – has potential overhang. Watch Haier Smart Home Co Ltd (6690 HK). 

• Pandemic darling Peloton saw a meteoric rise and fall over the past two years.
• The company initially benefited from soaring demand, but overestimated demand and eventually leading to a fire sale and massive layoffs.
• German sports e-commerce retailer Signa Sports United, which went public through a SPAC deal last year, could face a similar fate in the coming months.

• Logistics companies’ revenue grew by over 10%, which reflects the recovery of e-commerce.
• The market size of Chinese online game continued to shrink in July.
• Alibaba’s Ele.me sets up a mini-program on TikTok to fight Meituan.

• GameStop (GME US)  shares have materially outperformed the Nasdaq and S&P 500. GameStop shares fell ~2% YTD vs. Nasdaq (~-19%) and S&P 500 (~-11%). 
• RC Ventures, controlled by GameStop Chairman Mr. Ryan Cohen, holds a ~12% stake in the struggling video game retailer. The company announced a 4-for-1 stock split in July.  
• GameStop reported a record net loss of $158M and burned through ~$311M in cash in 1QFY22. We continue to believe the stock is massively overvalued and see downside potential. 

• Disney delivered another all-around beat and its strong results were driven by a stellar performance at its domestic theme parks, increases in live sports viewership across its linear channels and ESPN+, and significant subscriber growth at its streaming services.
• The company had 221 million subscribers overall as of the end of the third quarter for its streaming service finally surpassing rival Netflix.
• Their results demonstrate the Walt Disney Company’s potential to power its ecosystem and explore development prospects across industries and distribution channels thanks to its distinctively diversified businesses.

• The inclusion of China Shenhua Energy Co H (1088 HK), Chow Tai Fook Jewellery (1929 HK), Hansoh Pharmaceutical (3692 HK) and Baidu (9888 HK) takes us to 73 index constituents.
• Changes to the stocks, number of shares, float and capping result in an estimated one-way turnover of 5.09% and will result in a one-way trade of HK$10,562m.
• There are large shorts on Chow Tai Fook Jewellery (1929 HK) and Hansoh Pharmaceutical (3692 HK) and there could be some short covering from now to implementation.

• The theme we have seen over the past four weeks is an increasing number of indexes reversing 4-10-month downtrends and/or breaking above important resistance levels, with no failed breakouts.
• We continue to believe that global equities are going through a bottoming process, but the real test will come during the eventual pullback, which we believe we are now experiencing.
• We are watching to see whether these breakout levels and important moving averages (e.g., 50-day MAs) will hold.

• This week, Thirdpoint’s Dan Loeb wrote a letter to Disney asking it to cut costs, spin ESPN, and buy in Hulu.
• We agreed with Loeb two years ago, but don’t see the strategic rationale this time around…Disney isn’t bloated, needs ESPN’s FCF, and doesn’t need to spend $9B on Hulu today.
• We do agree with Loeb’s points about not reinstating the dividend (better use of FCF on Disney + and other investments) and refreshing a (strangely weird) Board of Directors.

• SOCAR (403550 KS) raised around US$78m in its South Korea IPO, after the deal was priced at 28,000 KRW/share, below the bottom end of its initial IPO price range. 
• Subscription rates for SoCar have been tepid, and previous deals with similar subscription rates as that of SoCar have had poor debuts, closing -8.2% on average. 
• The lack of instis opting for lockup will likely result in a selldown given its weak fundamentals and lofty valuations. 

• Kraft Heinz delivered outstanding second-quarter results.
• The company is aware of the Despite the effects of the current inflationary environment on Kraft Heinz’s business, the company delivered a solid result, surpassing Wall Street expectations in terms of both, revenues and earnings.
• Overall, we are neutral on Kraft Heinz we give them a ‘Hold’ rating with a revised target price.

• The food-delivery company Deliveroo (ROO LN)  initiated the stock buyback program and will purchase up to £75M worth of shares to reassure investors. 
• Deliveroo (ROO LN)  is down ~77% from the IPO price as Covid lockdown restrictions have ended and revenue growth slowed significantly. 
• Deliveroo (ROO LN)  currently trades at 0.1x EV/2022E GMV, a discount relative to its key peers that trade at an average of 0.3x EV/2022E GMV.  

• Tyson Foods delivered mixed third-quarter result surpassing revenue expectations as a result of the price increases but failed to meet Wall Street expectations with respect to earnings given the inflationary pressures.
• In order to counteract the rise in the cost of goods, the company implemented pricing efforts, which resulted in an increase in sales for the entire year.
• Among major updates, Tyson entered into a joint venture agreement with the Saudi Arabian Tanmiah Food Company.