In today’s briefing:
- Ace Hardware Indonesia (ACES IJ) – Reasons to Be Helpful
- [XPeng Inc. (XPEV US, BUY, TP US$13.7) Target Price Change]: Buy on More Visibility of Future Growth
- Learning Through Engagement Takes a Certain Period of Time to Show Results
- Culp, Inc. – 4QFY23: Results Beat Estimates; Trends Improve in Mattress Fabrics
Ace Hardware Indonesia (ACES IJ) – Reasons to Be Helpful
- Ace Hardware Indonesia is starting to see the seeds of recovery come through in SSSG through April and May and should get a further boost from its BOOM sale.
- The company has resumed its store opening with plans for 13 new stores this year and a new store concept being rolled out across existing stores providing a potential boost.
- Ace Hardware Indonesia has a more cohesive digital strategy and has taken on its first brand ambassadors to boost millennial demand. Valuations remain attractive.
[XPeng Inc. (XPEV US, BUY, TP US$13.7) Target Price Change]: Buy on More Visibility of Future Growth
- We are more positive on G6’s potential due to attractive pricing and higher conversion rate brought by nationwide availability of display vehicles.
- The success of G6 will add visibility of its growth due to the shared architecture. We reiterate a rebound of sales momentum starting from 2Q23, driven by:
- 1) increased order intake of P7i and G6; 2) faster channel expansion than its peers. We raise our TP to US$ 13.7. Our TP implies 2.5x PS.
Learning Through Engagement Takes a Certain Period of Time to Show Results
- 8 years after the introduction of Corporate Governance Code and “Ito Report,” which showed the relationship between P/B and ROE as the cornerstone of management, few companies improved their management.
- Companies with sustained share price growth were executing excellent growth policies and IR disclosures that were likely learned from their engagement with overseas investors.
- It takes a certain period of time for a company to learn through engagement, for the results to show up in improved management, and for other investors to notice it.
Culp, Inc. – 4QFY23: Results Beat Estimates; Trends Improve in Mattress Fabrics
Beat expectations. After market close on June 28, Culp reported 4QFY23 results that exceeded expectations.
Total revenues were $61.4 million, beating our $54 million estimate and consensus of $55.5 million.
On the bottom line, the company’s EPS of ($0.38) beat our ($0.50) estimate and consensus of ($0.45).
💡 Before it’s here, it’s on Smartkarma
Sign Up for Free
The Smartkarma Preview Pass is your entry to the Independent Investment Research Network
- ✓ Unlimited Research Summaries
- ✓ Personalised Alerts
- ✓ Custom Watchlists
- ✓ Company Data and News
- ✓ Events & Webinars
