Daily Brief Consumer: Atour Lifestyle Holdings, Nike, Tokyo Stock Exchange Tokyo Price Index Topix and more

In today’s briefing:

Atour Lifestyle Holdings IPO Analysis
Nike Inc: The Connected Partnership & Other Drivers
Hostile Takeovers Should Be Well Thought Out on Fair Basis, Both in Boardroom and in Judicial Arena

Atour Lifestyle Holdings IPO Analysis

Atour Lifestyle Holdings (ATAT US) is a leading upper midscale hotel chain group in China is getting ready for an IPO in the US.
We believe that a valuation range of RMB12.8 billion ($1.8 billion) to RMB16.9 billion ($2.3 billion) is appropriate for Atour Lifestyle Holdings.
Unless the IPO is priced sufficiently lower than the intrinsic value of the company, many institutional investors will likely pass on the IPO given the Bearish market sentiment.

Nike successfully delivered yet another all-around beat in the first quarter of the new fiscal with its key brands, Nike, Jordan, and Converse continue to enjoy strong consumer affinity and demand.
For the quarter, their revenue grew by double-digits and the company generated the highest net revenue quarter ever for Nike Digital.
Customers are still supporting Nike Digital, as evidenced by the Nike commerce app’s record-breaking Q1 traffic.

Since hostile takeovers are one of the key strategies to quickly gain market share in domestic market with limited growth, more hostile takeovers are expected to occur in the future.
Only 12.1% of prime market companies have majority of independent directors. This raises concerns about whether the opinions of independent directors in minority position will be heard by the boards.
The court’s decision to dismiss the claims of companies that proposed hostile takeovers makes us think about whether hostile takeovers are being considered on fair standpoint, even in judicial arena.

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