Daily Brief Consumer: China Resources Beverage, Laopu Gold, The Walt Disney Co, Sun Art Retail, Netflix Inc, Build A Bear Workshop, TUI , Koninklijke Ahold Delhaize NV, Dollar Tree Inc and more

• China Resources Beverage (2460 HK) raised around US$750m in its Hong Kong IPO, after pricing at the top-end.
• China Resources Beverage manufactures and sells packaged drinking water and RTD soft beverages in China.
• We have looked at the company’s past performance and valuations in our previous notes. In this note, we will talk about the trading dynamics.

• China Resources Beverage (2460 HK) priced its IPO at HK$14.50 per share to raise the gross proceeds of US$649 million. The shares will start trading on 23 October.
• The IPO was discussed in CR Beverage IPO: The Bull Case, CR Beverage IPO: The Bear Case, CR Beverage IPO: The Investment Case, CR Beverage (2460 HK) IPO: Valuation Insights. 
• The market sentiment of the peers has remained unchanged since the IPO launch. CR Beverage is fairly valued at the IPO price.

• Laopu Gold (6181 HK) is expected to fail the fcap threshold at the December 2024 review due to low free float unless its price surges ~22% in the next week.
• The 6-month lock-up expiry will lift the fcap closely above the threshold significantly increasing the probability of inclusion at the March 2025 review.
• If the mcap qualifies for the small-cap segment, its inclusion is possible at the November 2024 review due to lower fcap requirements. 

• A lot has happened since we published our Disney thesis back in February.
• On the corporate front, Disney emerged victorious from its proxy battle with Nelson Peltz and managed to patch things up with Florida Governor Ron DeSantis.
• In media, Disney posted its first streaming profit—ahead of schedule—and secured the NBA’s coveted “A Package,” though it came with a hefty price tag.

• Hong Kong markets continue to outperform globally this year with short selling declining and mainland buying increasing.  These trends should accelerate going into next year.
• Sun Art Retail (6808 HK)resumed trading after announcing that the company is entertaining one or more potential acquisition plans for the company.  The company also announced strong 1H25 earnings.
• Shanghai Electric Group Company (2727 HK) announce a buyback plan for 10% of A and H shares outstanding.  The company also announced the acquisition of the China Fanuc robotics business.

• Netflix’s third-quarter performance for 2024 highlights several key developments that provide a nuanced view of its position in the competitive streaming market.
• On the financial front, Netflix delivered strong results, surpassing expectations on both earnings per share ($5.40 vs. $5.12 expected) and revenue ($9.83 billion vs. $9.77 billion expected), reflecting a 15% year-on-year growth.
• The company added 5.1 million new subscribers, slightly above Wall Street expectations, bringing its total membership to 282.7 million.

• We are reiterating our Buy rating, $41 price target and projections for Build-A-Bear after visiting stores in Connecticut and Long Island.
• As expected, the decision to start the key Halloween period early was a material success, with multiple rollouts and newness and inventory flows ensuring key sales and the ability to satisfy shoppers for the season later.
• Further, driving key newness in Sanrio, and favorites such as Nightmare Before Xmas, and the launch of Bluey and Bingo assured a strong season.

• Recent decline in TUI’s stock seen as an attractive opportunity by analysts
• Stock’s sell-off attributed to two placements in July and concerns about Q2 earnings
• Analysts believe TUI’s available flight and hotel capacity will help in the short term, especially in its dynamic packaging business

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.

• Our estimations for FY 2024 annual revenue range at around €89,979 million and for 2025 at around €91,778 million.
• The company’s annual revenue reached €88,649 million in 2023 compared to €86,984 million in 2022, posting an increase by 1.91%.
• Ahold Delhaize gross profit for FY 2023 was €23,769 million, increased by 2.03% compared to €23,295 million for the corresponding period of 2022.

• Dollar Tree plans to play a key role in its growth strategy moving forward
• Rick Dreiling’s leadership is expected to drive improvement and achieve ambitious targets for Fiscal 2026
• The company aims to narrow the profitability gap with competitors and position Family Dollar for success in the future

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.