Daily Brief Consumer: Fast Retailing, ITC Ltd, Tcl Multimedia Technology, Hershey Co/The, Great Wall Motor, TSE Tokyo Price Index TOPIX, Cable One Inc and more

• Fast Retailing (9983 JP) is the largest weight in the Nikkei 225. On Friday, it closed at 11.36% of the Nikkei 225, putting it well above the 10% cap level.
• If the stock is above 10% on a pro-forma basis on the base date of 31 July 2024, it will get a capping coefficient. 2.8mm shares (US$2.5bn) to sell.
• At Friday’s close, we were borderline above a double-downweight trigger. At Monday’s open, just below. 30mins later? Back well above. Lots of interesting issues and nuances here for a short.

• Aequitas Research puts out a weekly update on the deals that were covered by the team recently along with updates for upcoming IPOs.
• On the IPO front, Hong Kong appears to be heading towards its first US$100m+ IPO for the year.
• For placements, after a flurry of placements in the prior week, past week was relatively quiet with only the US$2bn ITC Ltd (ITC IN) block.

• TCL Electronics Limited (1070.HK ) (“TCL”), with a market cap of HKD 7.57 billion (USD 968 million), is not your ordinary Chinese TV manufacturer.
• TCL focuses on mid-to-high end audio/video products like miniLED, QLED, Android, and smart TVs, ranking second in the global TV market behind Samsung.
• The Company also produces air conditioners, refrigerators, smartphones, tablets, and smart home devices. A recent catch-up with the IR team at TCL’s Shenzhen Industrial Park Headquarters intrigued us and we decided to dig a bit deeper.

• Hershey stock trading at 52-week low, making it attractive investment opportunity
• Drop in 10-year treasury yield making dividend-paying companies like Hershey more appealing to investors
• Challenges from new weight loss drugs affecting consumer appetite, but temporary dip creating discounted buying opportunity for strong brand

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.

• Great Wall Motor denied that many employees have resigned recently, but there many complaints from employees on social media.
• Many small companies grew strongly, such as Tuniu up by 140% and Kanzhun up by 46%.
• Weibo’s advertising revenue decreased, while most companies’ ad revenues have recovered.

• Most companies with large market capitalization (i.e., those with a high ratio of foreign shareholders) already disclose their financial statements, timely disclosure materials, and convocation notices in English.
• Disclosure in English of corporate governance reports and annual securities reports, which have lagged behind, is gradually increasing among companies with large market capitalization.
• Similar to the results of the recent disclosure regarding the ”TSE’s request”, there is also a difference in the disclosure stance between companies with large market capitalization and other companies.

• This is our first report on Cable One.
• The balancing growth strategy of the company indicated the progress during the fourth quarter of 2023, as the company reported customer growth driven by improvement in new connects year-over-year and sustained low churn rates.
• Focusing on specific new customer segments and adjusted market approach, the company has re-engineered its go-to-market approach to counter competition and expand network footprint.