In today’s briefing:
- L’Occitane (973 HK): Two Good Moves, Though Rerating Has Been Fast And Furious
- Best World (BEST SP): Exit Stage Left
- KRUS: Successive Guidance Upgrade as Kura Face Tougher Comps
- BellRing Brands: Upping Its Inventory Management Game While Expanding Distribution Scale!
- Reynolds Consumer Products: Can It Successfully Restore Profitability in Disposable Tableware?
- Will the TSE’s Convoy System Work?
L’Occitane (973 HK): Two Good Moves, Though Rerating Has Been Fast And Furious
- L’Occitane (973 HK) announced two solid moves this week: 1) Disposing the 70% stake in Grown Alchemist;
- And 2) granting additional call options to Sol de Janeiro CEO Heela Yang of up to 7%.
- The stock is trading at 19x FY25 PE (fiscal year ending March), up from just 14x six months ago.
Best World (BEST SP): Exit Stage Left
- After flagging a proposed delisting exercise last month, direct seller Best World International (BEST SP) has announced an Exit Offer lead by Best World founders Dora Hoan and Doreen Tan.
- The Offer Price is S$2.50/share, a 42.86% premium to undisturbed. The Offer requires approval from 75% of disinterested shareholders. Hoan, Tan and concert parties holding 65.12%, are required to abstain.
- Best World shares resumed trading on November 2022 after 42 months of suspension, subsequent to media reports and a short seller raising regulatory concerns over its Chinese business model.
KRUS: Successive Guidance Upgrade as Kura Face Tougher Comps
- Kura Sushi US Weighting as of writing: 4% 5th April 2024 – Q2 FY24 Results On April 4th, Kura Sushi US reported earnings for the second quarter of FY24.
- Nothing major to report and similar themes to previous quarters so will keep this one short. The market valuation is astronomically stupid.
- Average unit volumes at Kura are $4.28 million and have improved significantly; up 22% since 2019.
BellRing Brands: Upping Its Inventory Management Game While Expanding Distribution Scale!
- BellRing Brands Inc. has reported the results from their first quarter ending fiscal year 2024.
- These results have come out better than the management’s expectations, with net sales increasing by 19% in comparison to the previous year.
- The company’s adjusted EBITDA also showed considerable growth, rising by 18%.
Reynolds Consumer Products: Can It Successfully Restore Profitability in Disposable Tableware?
- Reynolds Consumer Products managed to maintain strong growth in Q4 2023, raising its share in some of its largest categories, including household foil and waste bags, achieving record profits, and boosting its cash flow.
- This was driven by double-digit profit growth across its various businesses.
- The operational stability of its Reynolds Cooking business has been restored and it has returned to historical earnings.
Will the TSE’s Convoy System Work?
- While more companies should include the cost of capital in their disclosures, investors are demanding that management present specific solutions discussed by the board of directors to solve their company’s problems.
- Many companies with high foreign shareholding disclose their own management strategies, while companies without high foreign shareholding tend to lack the ability to think of measures to increase profitability.
- The TSE’s newly established department supports such companies to ensure that all listed companies are not left behind, but that seems to go against the quality of the market.
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