Daily Brief Consumer: Chow Tai Fook Jewellery, KTMG, Target Corp, Lowe’s Companies Inc, Tjx Companies, Weilong Delicious Global and more

• Trip.com (9961 HK) and Chow Tai Fook Jewellery (1929 HK) could replace Country Garden Services Holdings (6098 HK) and Zhongsheng Group (881 HK) at the upcoming rebalance in September.
• Estimated one-way turnover at the rebalance is 1.2% resulting in a one-way trade of HK$744m. The official capping will be done based on closing prices from 29 August.
• Short interest has been rising on the potential adds and short covering could take the stocks higher, especially Chow Tai Fook Jewellery (1929 HK). 

For our next Corporate Webinar, we are glad to welcome KTMG Limited’s Chief Executive Officer, Damien Lim. 

In the upcoming webinar, Damien will share a short company presentation after which, he will engage in a fireside chat with Smartkarma Insight Provider, Angus Mackintosh. The Corporate Webinar will include a live Q&A session.

The webinar will be hosted on Tuesday, 20 June 2023, 17:00 SGT/HKT.

About KTMG Limited

KTMG Limited (“KTMG” and together with its subsidiaries, the “Group”) is an integrated textile and apparel manufacturer.

KTMG is a contract manufacturer of apparel specialising in athleisure wear, casual wear, loungewear, and pyjamas for various ages, with facilities in Malaysia and Cambodia. The Group manufactures apparel for retailers in the United Kingdom, United States, European Union, and Canada, who then sell apparel products under their own brands. The Group has a co-creation business model through which it collaborates closely with its customers during the product initiation process, thereby offering customers a one-stop value-added platform.

In 2019, KTMG expanded upstream into the knitting, dyeing, and finishing of fabric, with its very own textile manufacturing facility in Johor, Malaysia.

• Target Corporation delivered a mixed set of results for the previous quarter, with revenues well below analyst expectations but managed an earnings beat.
• Target’s focus on building trust and delivering affordable products to consumers led to three consecutive years of traffic growth, with a 0.9% increase in comparable traffic in Q1.
• We give Target Corporation a ‘Buy’ rating with a revised target price.

• Lowe’s Companies delivered a positive result and managed an all-around beat in the last quarter.
• Through its MVPs Pro Rewards Program and its expanded assortment of Pro national brands, it continues to build momentum with the Pro.
• Despite the pressures, it is seen that the comparable Pro sales are a bit positive, with broad-based strength in several categories.

• The TJX Companies delivered a mixed set of results for the previous quarter, with revenues well below analyst expectations but managed an earnings beat.
• TJX experienced an increase in pretax profit margin and earnings per share, surpassing last year’s figures.
• The company’s divisional performance also showcased positive results for Marmaxx, with sales and traffic consistency across regions.

• Weilong Delicious Global (9985 HK), a spicy snack food company in China, raised around US$130m in its Hong Kong IPO in Dec 2022.
• According to F&S, WDG ranked first among spicy snack food enterprises in China, with a market share of 6.2%, and in the seasoned flour product and spicy vegetable snacks categories
• In this note, we will talk about the lock-up dynamics and updates since our last note.