In today’s briefing:
- Bossini (592 HK): Viva Goods Offer?
- China Resources Beverage IPO – Volatility Makes Pricing a Bit Tricky
- CR Beverage (2460 HK) IPO: Valuation Insights
- Takashimaya (8233 JP) Decent Earnings, BIG Buyback (Odd Register Dynamics)
- How Seven Eleven and Other Conbinis Are Sitting on a Retail Media Goldmine
- Namaste India 🙏 | Catching up with Fashion
- CR Beverage IPO Preview and Valuation Analysis: Strong Profitability Growth, IPO Valuation Is Cheap
- EQD | KOSPI 200 May Pullback Soon…
- Bassett Furniture Industries, Inc. – New Revenue and EPS Estimates
Bossini (592 HK): Viva Goods Offer?
- Bossini International Holdings (592 HK), a casual apparel play, is currently suspended pursuant to the Takeovers Code. As is Viva Goods (933 HK), Bossini’s largest shareholder, with 62.91%.
- Former Olympic gymnast Li Ning holds 68.96% of Viva Goods. Viva Goods also holds a 10.37% stake in Li Ning (2331 HK).
- The double suspension is probably a pre-cursor to Viva Goods tabling a delisting Offer for Bossini.
China Resources Beverage IPO – Volatility Makes Pricing a Bit Tricky
- China Resources Beverage (CRB HK) is looking to raise up to US$650m in its Hong Kong IPO.
- China Resources Beverage manufactures and sells packaged drinking water and RTD soft beverages in China.
- We have looked at the company’s past performance in our previous notes. In this note, we will talk about the IPO valuations.
CR Beverage (2460 HK) IPO: Valuation Insights
- China Resources Beverage (CRB HK), China’s largest purified drinking water company, has launched its HKEx IPO to raise up to US$650 million.
- We previously discussed the IPO in CR Beverage IPO: The Bull Case, CR Beverage IPO: The Bear Case and CR Beverage IPO: The Investment Case.
- Our valuation analysis suggests that CR Beverage is attractively valued at the IPO price range. Therefore, we would participate in the IPO.
Takashimaya (8233 JP) Decent Earnings, BIG Buyback (Odd Register Dynamics)
- Today, Takashimaya (8233 JP) reported Q2 earnings, a dividend hike, upward revisions to the FY26 MTMP, and a decent-sized buyback to raise leverage levels and ROE.
- The company is yen-sensitive both in overseas retail and domestic department stores on inbound traffic. One could imagine future issues.
- The register looks like it is quite open. It is not. That is worth considering now and in future.
How Seven Eleven and Other Conbinis Are Sitting on a Retail Media Goldmine
- Just as they did before, Japanese convenience stores are taking a US idea and making it Japanese, in this case retail media, which looks set to be huge in Japan.
- Seven & I believes it will be a ¥3 trillion business and Familymart, which is leading in this new profit machine, expects ¥5 billion in media income in 3 years.
- The options for highly personalised targeting and behavioural analysis will transform brand advertising and marketing – but even more the bottom line of convenience stores.
Namaste India 🙏 | Catching up with Fashion
- In this Insight, we highlight industry and company-specific developments based on the annual reports of various companies related to the apparel industry.
- The industry has encountered challenges, primarily due to a slowdown in demand and rising inflation. Most companies are now hoping for a turnaround.
- Companies in Focus Aditya Birla Fashion and Retail Ltd (ABFRL IN), Arvind Fashions (ARVINDFA IN), Vedant Fashions (MANYAVAR IN), Go Fashion India (GOCOLORS IN) and Credo Brands Marketing (CREDO IN).
CR Beverage IPO Preview and Valuation Analysis: Strong Profitability Growth, IPO Valuation Is Cheap
- CR Beverage, a pioneer in China’s packaged drinking water industry with a forty years history, sets terms for upcoming IPO in Hong Kong.
- The IPO is expected to be between HK$13.50 and HK$14.50. At the midpoint of the range, CR Beverage would command a market value of ~HK$33B or ~$4.2B.
- I view IPO valuation as attractive vs. domestic peers as profitability and gross profit margins improved. UBS, BOCI, CITIC Securities and Bank of America are leading the offering.
EQD | KOSPI 200 May Pullback Soon…
- While the short-selling ban for the KOSPI 200 INDEX will remain in place until the first months of 2025, that does not prevent the index from pulling back.
- Pullbacks, in this context, are an opportunity to buy, in the hope the index will rise higher from its current position.
- Our models right now are showing a short-term WEEKLY OVERBOUGHT scenario coming in the next 2 weeks. Keep reading for more details.
Bassett Furniture Industries, Inc. – New Revenue and EPS Estimates
- We are updating our 4QFY24 and revenue and adjusted EPS estimates for BSET following the company’s earnings release and investor call (see 1 for our summary of the quarter).
- As noted, industry conditions for residential furniture remain challenging, with the housing market (still) stuck and consumer spending on furniture and furnishings subdued after the COVID pull-through, when many people renovated their homes.
- Near term, we expect demand to remain subdued, even as easier comps and some return to normal demand dynamics gain traction over the next several quarters.
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