In today’s briefing:
- Hero Motocorp (HMCL IN) | Brace for Disappointment
- Seven & I – The US Is About to Hit the Brakes
- Shanghai/Shenzhen Northbound Connect: Weekly Moves (7 October 2022)
- Country Style Cooking Restaurant Chain Pre-IPO – The Positives – A Second Attempt at Profitability
Hero Motocorp (HMCL IN) | Brace for Disappointment
- Hero Motocorp (HMCL IN) has been outperforming the Nifty 50 over the last 6M
- Our flash checks done in the south suggests the outperformance may not last long
- Failure of a model, high competitive intensity, and changing preferences can again lead to high inventory levels leading to a possible correction in wholesales post-festive season.
Seven & I – The US Is About to Hit the Brakes
- With OP up by 22% YoY to beat the consensus estimate by ¥2.0bn, Seven & I turned in a strong 2QFY23 along with a considerable upgrade to FY23 guidance.
- However, the post-earnings price reaction seems to suggest that the market is a bit worried about the short-term performance of Seven & I Holdings (3382 JP)’s US convenience store business.
- In addition, the struggling non-core businesses whose future remains undecided could also be weighing in on Seven & I’s price performance.
Shanghai/Shenzhen Northbound Connect: Weekly Moves (7 October 2022)
- Inside is a recap of movements in the last week relating to the Hong Kong Stock Exchange -Shanghai and Shenzhen Northbound Connect facilities, broken down by company and industry.
- Overall, net outflow over the past week was ~US$0.15bn, split between Shanghai (+US$0.05bn) and Shenzhen (-US$0.20bn).
- The largest inflows were into Kweichow Moutai (600519 CH) and Zhejiang Huayou Cobalt (603799 CH). The largest outflows were in LONGi Green Energy Technology (601012 CH) and CATL (300750 CH).
Country Style Cooking Restaurant Chain Pre-IPO – The Positives – A Second Attempt at Profitability
- Country Style Cooking Restaurant Chain (1985552D HK) is looking to raise about US$200m in its upcoming Hong Kong IPO.
- Country Style Cooking Restaurant Chain (CSCRC) is a Chinese quick service restaurant (QSR) chain situated in China. It operates two brands, namely: CSC and Rice Space, which are all self-operated.
- In this note, we talk about the positive aspects of the deal.
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