Daily Brief Consumer: Benesse Holdings, Diageo Plc, WH Group, JD.com , Asahi Broadcasting, Health And Happiness (H&H), Wayfair Inc Class A, Kenvue , Regis Corp, Booking Holdings and more

• When the announcement for an MBO for Benesse Holdings (9783 JP) was made in November, they suggested it would take 3 months for approvals to launch. SAMR announced approval Wednesday.
• Japan approval should be (or have been) easy. One might expect this deal to launch prior to “early February”. The stock is trading through terms…. but…
• A reminder that this stock is TOO CHEAP. Bad management means low expectations means a decent premium still ends up at too low a price vs management’s own forecasts.

Key points (machine generated)

• Diageo, a top-performing business, is currently presenting a buying opportunity due to near-term fear.
• The company’s low multiples on normalized earnings power suggest a conservative base case of a 90% increase over the next five years.
• As fear diminishes, there is potential for a front-loaded Internal Rate of Return (IRR), and a bull case that could see shares rise 2.3 times or more. Overall, Diageo offers excellent intrinsic value and a low-risk investment opportunity.

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.

• Since my previous insight on WH Group (288 HK) in October 2023, the stock is up 17%, massively outperforming the Hang Seng Index (HSI INDEX).
• The company is still trading at 6x forward PE, compared to an average forward PE of 11x since 2016. 
• With the US business recovering as well as its potential IPO, and a stable China business, the stock remains a buy with limited downside. 

• JD.com, Inc. managed to surpass the revenue and earnings expectations of Wall Street.
• The company broadened its free shipping reach in the third quarter by leveraging enhanced logistics capabilities.
• The company strategically reduced the minimum order value for free shipping services, granting JD Plus members unlimited free shipping for 1P products.

Lucror Analytics Weekly Wraps provide an overview of all Morning Views comments and reports published by our analyst team in the past week, and also showcase a list of the most-read reports.

In this Insight:

1. Sunny Optical Technology Group
2. Yuexiu Property
3. Vedanta Resources
4. Tata Motors Ltd
5. Adani Ports & Special Economic Zone

and more…

• In the ever-evolving landscape of e-commerce, Wayfair Inc. finds itself at a crossroads, grappling with a significant loss in active customers and an alarming 82% drop in its share price over the past three years.
• As the Boston-based home goods retailer searches for a lifeline, two Chinese e-commerce powerhouses, Shein and Temu, emerge as potential suitors, according to recent reports.
• In this report, we have carried out a fundamental analysis of the historical financial statements of the company.

• This is our first report on consumer health behemoth, Kenvue Inc.
• The company delivered a strong result and managed an all-around beat in the last quarter, following a successful IPO.
• The Skin Health and Beauty segment demonstrated a recovery with organic growth of 3.4%, and Essential Health achieved 3.8% organic growth.

• We are reiterating our Buy rating, $40 price target and projections for Regis as we look forward to 2024.
• Further, we believe management’s current strategic review will, at least, extend current debt maturities and could, potentially, re-equitize and delever the balance sheets.
• Finally, we believe there remains the potential to begin to once again focus on growing the franchise base after another round of reducing low value franchises in 1H24.

• Booking Holdings Inc. exceeded Wall Street’s expectations in terms of revenue as well as earnings, marking a notable milestone.
• Their valued customers booked a significant 276 million room nights, reflecting a robust 15% year-over-year increase.
• Notably, the Q3 room night expansion of 24% from 2019 exceeded expectations, underscoring the company’s resilience and adaptability.