In today’s briefing:
- Playmates Toys: TMNT Movie Grosses 50M+ Global Sales in Opening Week, Toy Sales to Follow
- Vinda International (3331 HK): Worst Is Likely Over
- Why SHEIN and Temu Are Worried About Reform of De Minimis Imports into the US
- BeiGene (6160.HK/BGNE.US) 23H1 – “Accidents” Behind the Strong Growth
- International Housewares Retail Co Ltd (1373 HK) – Weak End to FY23, Q1 FY24 Improving
Playmates Toys: TMNT Movie Grosses 50M+ Global Sales in Opening Week, Toy Sales to Follow
- Teenage Mutant Ninja Turtles: Mutant Mayhem had a smash opening grossing over 50M USD at the box office in its first week of operation.
- The box office success de-risks the upside potential for Playmates Toys as successful movies have a high likelihood of driving toy sales.
- Paramount+ launching the new TMNT-inspired series will also drive Ninja Turtles’ revival even more.
Vinda International (3331 HK): Worst Is Likely Over
- According to various public news sources, Brazil’s Suzano SA, the world’s largest pulp maker, and a few private equity players may participate in the bidding for Vinda International (3331 HK).
- Note that the controlling shareholder Essity is looking to potentially dispose its stake, announced in April this year.
- Two major drivers of share price – pulp price and competition – likely have reached the bottom and could improve in 2H23.
Why SHEIN and Temu Are Worried About Reform of De Minimis Imports into the US
- SHEIN announced it wants a role in reforming US de minimis import regulations
- A tightening of de minimis threshholds could undermine SHEIN (and Temu) in the US
- The de minimis issue highlights SHEIN’s and Temu’s lack of political allies in the US
BeiGene (6160.HK/BGNE.US) 23H1 – “Accidents” Behind the Strong Growth
- BeiGene maintained strong product sales in 23H1 and its net loss continued to narrow. This means that BeiGene has realized the cost control problem and entered a healthy growth phase.
- Our revenue forecast indicates BeiGene is approaching the minimum threshold for turning losses into profits. A more likely scenario is revenue need to reach over US$4 billion to be breakeven
- However, regardless of the calculation, BeiGene ‘s valuation is still unreasonably high. Its potential/certainty is nowhere near that of Alnylam. Maintaining sustained high growth is not easy because “accidents” remain.
International Housewares Retail Co Ltd (1373 HK) – Weak End to FY23, Q1 FY24 Improving
- International Housewares Retail (1373 HK) reported weaker than expected numbers, with revenues down 3% YoY and profits down 18% YoY for FY23 (down 10%/42% for H2 FY23).
- The cause for the decline was the roll-off in COVID-related subsidies worth 30 mn HKD and weak revenues in Q4 FY23 owing to a surge in outbound travel.
- The company declared a 10-cent final dividend ( Full Year: 22 cents). Post the correction in share price, it represents an 8.3% dividend yield.
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