Daily Brief Consumer: Alibaba Group Holding , Ola Electric, Avanti Feeds, FirstCry, Koss , TSE Tokyo Price Index TOPIX, O’Reilly Automotive and more

• Alibaba Changed its Tmall Taobao business unit from three centers to six departments.
• We believe the change means Alibaba is moving its focus from cost cut to revenue growth.
• We set the stock upside at 26% and the price target at HK$91. Buy.

• Ola Electric is looking to raise about US$1bn in its upcoming India IPO.
• Ola Electric Mobility is a vertically integrated pure EV player in India with manufacturing capabilities for EVs and EV components, including cells.
• In this note, we talk about the not-so-positive aspects of the deal.

• Ecuador’s crisis, driven by violence and narco-gang threats, impacts the global seafood supply chain, especially the lucrative shrimp exports sector.
• Resilient amid challenges, India holds its position as the second-largest global shrimp producer, balancing opportunities and persistent challenges in logistics and competition.
• Investors urged caution in the Indian seafood boom, yet potential opportunities arise from Ecuador’s supply disruptions, with reduced import duty enhancing India’s competitiveness.

• FirstCry (0172540D IN), India’s largest multi-channel retailing platform for mothers’, babies’ and kids’ products, has filed for a US$700 million IPO. 
• In Brainbees Solutions (FirstCry) IPO: The Bull Case, we highlighted the key elements of the bull case. In this note, we outline the bear case.
• The bear case rests on the worrying trend of India’s KPIs, margin pressures, cash burn, and deteriorating balance sheet strength. 

Key points (machine generated)

• The litigation industry is filing lawsuits against companies that manufacture consumer headphones, including major players like Apple, Bose, and Skullcandy.
• The company in focus has filed lawsuits against several headphone manufacturers and has settled with Apple and Plantronics, earning around $11.0 million in net proceeds.
• Despite being in a declining industry, the company is currently trading as a net-net and has hidden asset value, suggesting potential upside value of up to 75%, with a downside value only slightly lower than its current levels.

This article is sourced from an online content aggregator through publicly available sources and is displayed below for general informational purposes only. This article was originally published 3 months ago on Value Investors Club.

• If the ISS ROE criteria, which seems somewhat slow, were to be resumed, many companies would still be below 5%. However, how many companies are feeling threatened?
• About 40% of the companies have large shareholders holding more than 20% of their shares, which is one reason why many companies do not feel a sense of threat.
• Domestic institutional investors should apply the Proxy Voting Guidelines more strictly to companies that do not make maximum efforts to increase their ROE.

Key points (machine generated)

• O’Reilly Automotive is a retail company specializing in automotive aftermarket parts and services.
• The company has over 6,000 stores in the US and Mexico, making it one of the largest retailers and suppliers in the industry.
• O’Reilly Automotive offers both do-it-yourself and professional services for a wide range of domestic and imported automobiles.

This article is sourced from an online content aggregator through publicly available sources and is displayed below for general informational purposes only. This article was originally published 3 months ago on Value Investors Club.