Consumer: Nissan Motor, NagaCorp Ltd, CP FOODS, GFPT Public Company Limited, Home Product Center, VGI PCL and more

• On Friday, a Bloomberg article suggested Renault SA (RNO FP) is considering selling some of its 43% stake in Nissan Motor (7201 JP) to help fund its efforts in EVs.
• Sources were “people familiar with the matter.” Since 2018, Bloomberg and Les Echos have been the outlets which do “scoops” on the Renault/Nissan relationship, but they are not always right.
• However, it raises some interesting questions and possibilities. And given the prices, it makes the decision somewhat uncomfortable for both. 

• We have long been bullish on Nagacorp Ltd. on long term fundamentals. We are now seeing rising positivity as market sentiment begins to recognize ASEAN covid recovery coming.
• Stock is at midpoint of 52 week range at HKD$6.97. Our 1 year target is HKD$10.425 based on what we see trending from its 1Q22 unaudited results.
• All revenue segments up: Morgan Stanley report agrees with our view that shares present an immediate opportunity due to potential in cross border gamblers and ASEAN mass.

• More positive sentiment
• Vietnam subsidiary to list on HCM stock market
• CPV’s sales growing
• Improving swine prices to support earnings recovery

Upgrade to BUY from HOLD with TP of THB27.9. The upcoming IPO of subsidiary CP Vietnam (CPV) will give it more flexibility to raise funds for further business expansion as well as unlock value of CPV. This is a new development creating positive sentiment on CPF. CPF’s 1Q22 resultsare likely to be lacklustre but CPF’s share price dropped 5% in the past three months possibly pricing in the weak 1Q22 profit outlook. Besides, we see prospects for improvement in 2Q22 from the favourable livestock prices.

• We see upside to guidance; raising our earnings, TP
• 1Q22 sales growth likely driven by volume and price
• Recovery in gross margin to push profit higher
• Better prospects

• Encouraging 1Q22E recovery, maintain BUY
• Sales and occupancy rebounds drive earnings growth
• Inflationary pressures present but manageable
• Positive earnings bias

• We maintain BUY rating for VGI with the new target price of Bt6.20 (Previous TP: Bt6.50), derived from SOTP method or 50% premium to Thai media peers.  
• We anticipate revenue streams from media and commercial space (recently started to manage by NINE),to retreat to 70% of the level we have seen during pre-pandemic by late 2QFY23 (July’22-September’22)
• The management revenue target in FY2023 at Bt6.5bn-7.0bn is fairly optimistic as we anticipate OOH media revenue to not recover that quickly.