Daily Brief Consumer: Fosun Tourism, Vishal Mega Mart, Prosus NV, Geely Auto, Popular Vehicles and Services, Vivid Seats, Build A Bear Workshop, Savencia SA, Viomi Technology Co Ltd and more

• Fosun Tourism (1992 HK) disclosed a share buyback of the company through a scheme of arrangement at HK$7.80, a 95.0% premium to the last close price of HK$4.00. 
• The key condition is the scheme be approved by at least 75% of disinterested shareholders (rejection by <10% of disinterested shareholders).
• The timing is arguably opportunistic, as the shares are down 31% YTD. Nevertheless, the high takeover premium and a potential scrip option lower the vote risk.    

• When Fosun Tourism (1992 HK), a leisure-focused integrated tourism group, was suspended pursuant to the Takeovers Code, the obvious Offeror, by way of a Scheme, was Fosun International (656 HK)
• Not quite. We do have a Scheme, but it’s being enacted by way of a buyback. Fosun Int’l still abstains from voting, but will control 100% if the Scheme completes.
• The Cancellation Price is $7.80/share (not declared final), a punchy 95% premium to undisturbed. I previously speculated a 100% premium was not out of the question.  Clean deal.

• Vishal Mega Mart (1620871D IN) is looking to list on the exchanges by selling INR 80bn (US$943m) of stock at a valuation of INR 352bn (US$4.15bn).
• Anchor allocations were completed on 10 December, the IPO opens today, and the stock is expected to start trading on 18 December. Grey market premium is around 25%.
• The stock will not get Fast Entry to global indices. Inclusion at regular rebalances should take place in May and June 2025.

• For the first time in 2024, Prosus NV (PRX NA) lodges a substantial shareholder notice,  as its stake in Tencent (700 HK) dips below 24%. 
• Preceding my comments on Prosus, Tencent and Naspers (NPN SJ), are the current setup/unwind tables for Asia-Pacific Holdcos.
• These relationships trade with a minimum liquidity of US$1mn, and a % market capitalisation >20%.

• Geely’s sales volume grew by 27% YoY in November 2024.
• BEV delivery growth rate accelerated to 173% YoY in November from 26% YoY in July.
• Geely’s forward financial ratios are lower than its major competitors.

• Popular Vehicles and Services (PVSL IN) are available at a 50% discount since IPO and available at 25%
• PVSL plans to enter two new states by June 2025 and open multiple new facilities, including a NEXA Studio and service centers in Maharashtra and Kerala.
• PVSL’s focus on geographic expansion, high-margin segments, and inventory normalization enhances its growth potential, making it a compelling value play with room for significant re-rating in the near future.

• SEAT is a leading online secondary ticket marketplace for live events with a strong market share and over 290K unique events sold in 2023
• The company’s asset light model allows for high cash flow generation with forecasted growth in Marketplace, Revenue, and Adjusted EBITDA
• Industry fundamentals are promising with strong consumer demand for live events, last-minute ticket purchases, and increasing average order sizes, along with a growing interest in experiential events post-Covid.

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.

• We are reiterating our Buy rating, estimates and $58 price target after visiting the Build-A-Bear X Hello Kitty and Friends Workshop pop up store in the Westfield Century City shopping center in Los Angeles.
• We believe the collaboration, which opened November 15th, highlights the ability of both brands to offer a compelling and unique retail experience that, with exclusive offerings and a beautiful and exciting store for every Sanrio fan, can help drive material returns and register strong operating margins at the store level for Build-A-Bear.
• We believe this collaboration also amply demonstrates the ability of Build-A-Bear to leverage their unique experiential store offerings and strong family of licensed products to create compelling, high margin retail stores.

• Savencia Fromage & Dairy generated €6.8 billion in net sales in 2023, ranking it among the top five dairy companies worldwide
• The company remains relatively unknown to institutional investors despite its strong financial performance and defensive nature
• With an attractive valuation, including a low EV/EBITDA ratio and high free cash flow yield, the stock is trading at a 15-year low, making it a potential opportunity for investors

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.

• Viomi has undergone a radical transformation to shed unprofitable business lines and focus on the home water systems market which is poised to experience steady growth in China in coming years.
• The company is hoping to expand into fairly mature international markets including the US with new home water systems that offer advantages over current offerings.
• The company’s investment in a largely automated manufacturing facility should help the company achieve above average margins in the Chinese market as utilization rates improve.