Daily Brief Consumer: Korea Stock Exchange KOSPI 200, Alibaba Group Holding , KT&G Corporation, Nameson Holdings, L’Oreal SA, The Walt Disney Co, Soybean Active Contract, TSE Tokyo Price Index TOPIX, GAN , Comcast Corp Class A and more

• We can use KRX to access PER, PBR, and dividend yield. However, except for PER, the data, being based on the most recent information, limits its usefulness for proactive positions.
• So, we should look into FnGuide, which aggregates and provides exclusive consensus data. This website also requires payment for access.
• However, FnGuide provides some data for free, including PBR. Therefore, we can make use of this within the scope of its free offerings.

• Alibaba’s revenue grew by 5% YoY and its operating margin improved by 2 percentage points YoY in 3Q24.
• We believe the company turned its focus from margin improvement to revenue growth.
• We set the upside at 20% and the price target at HK$90 for March 2025. Buy.

• One of the biggest news facing KT&G this year as been a class action lawsuit against KT&G’s directors by Flashlight Capital Partners.
• KT&G announced that it will cancel 3.5 million shares (about 315 billion won) on 16 February, which represent 2.6% of its outstanding shares and 16.7% of treasury shares.
• One of the major reasons why we remain positive on KT&G is that there is a relatively high probability of the company announcing cigarette price hikes in 2H 2024.

Lucror Analytics Morning Views comprise our fundamental credit analysis, opinions and trade recommendations on high yield issuers in the region, based on key company-specific developments in the past 24 hours. Our Morning Views include a section with a brief market commentary, key market indicators and a macroeconomic and corporate event calendar.

• Sands China
• Tata Motors ADR
• UPL Ltd

• L’Oreal SA (OR FP) is the largest beauty company in the world, with a 15% global market share.  The second place in contrast has only around 5% market share. 
• The company has been excellently managed, and out-performed the overall global beauty industry growth by an average of 5% over the last 3 years.  However, growth could be slowing down.
• L’Oreal is now trading at 34x forward PE, which is a near 100% premium over the average of European consumer staples, and near a multi-decade high. 

• Not so long ago, Disney’s share price was nearing the $200 mark, despite the pandemic’s severe impact on its Parks and Resorts business.
• Fast forward to the present, and even with the parks posting record results, Disney’s share price has fallen to levels not seen in a decade, raising the question: what happened?
• Several factors are at play, including challenges within the studio arm, ongoing decline of its legacy media operations, and Big Tech’s incursion into sports media.

• Depressed Soybean crush margin to deal a further blow to Soybean demand.
• The outlook for Soy Meal and Soy Oil is better than the outlook for Soybean.
• Important production guidance updates from CONAB and USDA this week. Expectations point to lower production and lower consumption. 

• While many companies have disclosed enhanced shareholder returns, dividend payout ratio in 30% range and no increase, and 4% increase in total dividends from the previous year, is not enough.
• Since DOE remains at just under 3% same as the previous year, few companies allocate enough cash to dividend to reduce Shareholder’s Equity, and consequently ROE is expected to lower.
• Cash on hand in September is at all-time high. Behind the ROE, which shows no sign of rising, is the psychology of managers who want to keep cash on hand.

Key points (machine generated)

• GAN Limited has agreed to be acquired by Sega Sammy for $1.97 per share in cash.
• A law firm is investigating the fairness of the sale, causing a temporary decline in GAN’s stock.
• The writer predicts a 21.6% gain in GAN’s stock by Q4 2024, with insiders and Goldman Sachs holding significant ownership stakes, and expects arbitrageurs to support the deal, closing the gap caused by the investigation.

This article is sourced from an online content aggregator through publicly available sources and is displayed below for general informational purposes only. This article was originally published 3 months ago on Value Investors Club.

• Comcast Corporation presented its financial position strongly in the fourth-quarter conference call, posting the highest ever revenue, adjusted EBITDA, and adjusted EPS for the third consecutive year.
• The company emphasized its robust cash flow and solid balance sheet, which have facilitated organic investments and significant share repurchases, offering impressive capital return.
• It showcased the gains made in the connectivity businesses, with a 24% increase in Xfinity Mobile subscriber lines and 20% upsurge in total domestic wireless revenue, thereby demonstrating its resilience despite an intensely competitive environment.