Daily Brief Consumer: Alibaba Group Holding , Li Auto , Cheerwin, GHCL Textiles, China Tourism Group Duty Free, ContextLogic , Lands’ End Inc, Cinemark Holdings, Vail Resorts and more

• Customer management as the largest business began to increase compared to the past two stagnant quarters.
• We believe margin will continue to decline as the company turned its focus to growth.
• We conclude an upside of 41% for March 2025 based on peer companies’ P/S ratios.

• The HSTECH Index tracks the performance of the top 30 technology companies listed in Hong Kong that have high business exposure to certain technology themes.
• The final results for the June 2024 index rebal event will be confirmed after market close on Friday 17th May 2024.
• In this insight, we take a look at our latest flow expectations.

• Cheerwin is a strong turnaround story with significant earnings growth in 2023 with solid dividend yield. It is the number one player in the inspect repellent sector in China. 
• Cheerwin’s current price is 79% lower than the IPO  price. However, Cheerwin’s shares are up 35% YTD, sharply outperforming Hang Seng index which is up 13.6% YTD.
• We found Cheerwin (6601 HK) using Smartkarma’s Smart Score Screener system. We used the following screening methodology: Market cap – More than $300 million Dividends = 5 only.

• GHCL Textiles (GHCLTEXT IN)  Aiming 25-30% revenue growth along with 15-20% average margins significantly increase the profitability of the company.
• Entering into value-added products like Functional fabrics and setting up their own manufacturing plant for fabric.
• Management Guidance on yarn prices, capex and debt profile of the company.

• While its share price has collapsed, China Tourism Group Duty Free (1880 HK) is still facing many challenges and uncertainties which render it unattractive at current level.
• Average duty free spending per customer in Hainan is 46% lower than the peak and 26% lower YoY in Mar 2024, and the downtrend looks to continue.
• The government’s efforts to strike down purchasing agents in Hainan duty free products and the island’s change to a duty-free zone are also negative developments.

• textLogic Inc. has entered into a definitive agreement to merge with Qoo10, a leading Asian e-commerce platform
• The deal values Wish at less than its estimated book value as of 12/31/23, reflecting the company’s struggles, but presents opportunities for growth and synergies
• The merger will allow ContextLogic to focus on monetizing its valuable NOLs and cash position, potentially unlocking additional value for shareholders and signaling a new chapter for Wish as it moves past its downfall

This content is sourced through publicly available sources and has been machine generated. Information displayed is for general informational purposes only. This article was originally published 3 months ago on Value Investors Club.

• We are reiterating our Buy rating, $14 price target, and projections for Lands’ End after reviewing the May catalogs for 2023 and 2024.
• The overwhelming focus for this month is swim, one of the core categories for the company.
• Lands’ End continues to drive deeper levels of newness to capture higher pricing and create a sense of urgency for purchases.

• Cinemark Holdings, Inc. is the 3rd largest movie theater chain in North America with over 500 theaters, making it a compelling risk/reward investment opportunity
• Stock has decreased in value due to concerns about potential impact of Hollywood strikes in 2024, but analysts anticipate a return to box office growth by mid-3Q 2024 and a focus on blockbuster films in 2025
• Analysts project >50% return in equity over next 6 to 12 months, with potential for greater gains in the future, citing Cinemark’s strong position in suburban areas with lower rent costs as an added attraction for investors

This content is sourced through publicly available sources and has been machine generated. Information displayed is for general informational purposes only. This article was originally published 3 months ago on Value Investors Club.

• Vail Resorts has underperformed benchmarks in the past but is now poised for a turnaround
• The company has expanded its portfolio to 41 strategically located destinations and increased EBITDA and revenue by over 50% since 2018
• Despite increased leverage from acquisitions, the management team has effectively managed disruptions to the business and presents an attractive investment opportunity with potential for growth

This content is sourced through publicly available sources and has been machine generated. Information displayed is for general informational purposes only. This article was originally published 3 months ago on Value Investors Club.