Daily Brief Consumer: Melco International Development, H World Group , Sido Muncul, Cash Converters Intl, Abercrombie & Fitch Co Cl A, TSE Tokyo Price Index TOPIX, British American Tobacco , Inter Parfums, Kambi Group and more

• The data in this insight is collated from the “shareholding disclosure” link on the HKEx website.
• Often there is a corresponding HKEx announcement on the increase – or decrease – in the shareholding by directors. Or pledging. However, such disclosures are by no means an absolute.
• The key stocks mentioned in this regular insight include Melco International Development (200 HK), Sino Land Co (83 HK), and ZJLD Group (6979 HK).

• Hotel rooms in China decreased by 5.4% compared to the previous year
• H World has maintained its position as a leading hotel operator in China with a diverse portfolio of brands
• Founder Qi Ji’s strong track record in the hospitality industry has contributed to H World’s success in navigating challenges and growing its presence in the industry.

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.

• Sido Muncul (SIDO IJ) had a poor Q2-Q3 numbers, and investors sold off. 
• The recent uptick is driven by revenue growth and cost cutting exercises (mainly in wages) that improve margins.  
• Productivity may not stay at the same level thus Q2 24 numbers are key. Take your win first. 

• Cash Converters International (ASX:CCV) is a consumer finance company operating as a service provider, owner and franchisor of second-hand goods and financial services stores in Australia and internationally.
• CCV released a solid Q3 FY24 unaudited trading update with revenue growth of 19% over the previous corresponding period (pcp) to $93.0m.
• The gross loan book has grown 9% to $292m, which is all the more impressive as the business transitions away from Small Amount Credit Contract (SACC) products due to regulatory change, more than offset by growth in other products, domestically and internationally.

• We are reiterating our Buy rating, raising our pice target to $25 (from $14), and upping our projections for a.k.a. Brands after the company registered better-than-expected revenue and Adjusted EBITDA for 1Q24 and raised 2024 guidance, driven by strong domestic results, as all the company’s concepts continue to gain market share in the United States via new stores, expanding digital marketplace relationships and the “test and repeat” method driving newness and fashion excitement.
• Further, we believe the Australian operations, especially Culture Kings, are setting up for a 2H24 turn, with leaner inventories and better product mix.
• As such, even after raising our projections, we believe upside remains in 2H24 and 2025 and are confident raising our price target to $25 and reiterating our Buy rating on AKA.

• Profit margins boosted by cuts in personnel, R&D, CapEx, and corporate tax rates. Much of the improved free cash flow went onto the balance sheet instead of being invested.
• OP Margin’s sluggish growth indicates that the cost-cutting model is no longer working. Investments are needed to create products with higher gross margins.
• While the limitations of the cost-cutting model can be seen, ROE, which indicates the achievement of the management goal of increasing medium-to-long-term shareholder returns, is sluggish in many companies.

• Business Breakdowns podcast covers British American Tobacco with guest Evan Tindall
• British American Tobacco primarily sells tobacco, with significant presence in the US, Europe, and Asia
• Company’s profits are more weighted towards the US market

This content is sourced through publicly available sources and has been machine generated. Information displayed is for general informational purposes only.

• IPAR reported first quarter results detailing how consumer demand for fragrances has yet to wane even in a difficult to compare period
• In a change of strategy than prior years, IPAR is spending more in the early parts of the year to build awareness for its lineup of products 
• With one quarter past, we believe Lacoste and Roberto Cavalli are additive to the investment story and not the year’s only topic

• I am long shares of Kambi (“Kambi” or the “Company”) because I believe the Company is worth over 170 – 200 SEK / share today – This represents a 20% – 32% margin of safety to the current share price of ~136 SEK
• If I am wrong about this, I think Kambi is its growing intrinsic value and will still be worth at least 200 SEK / share (likely closer to 250 SEK / share) over the next 2 – 4 years, which would generate a mid-teens IRR or higher from the current share price
• Several free options / catalysts (some of which I believe are inevitable) are not priced into the stock and could drive returns substantially higher (20%+ IRR). Multiple expansion is also a lever that could drive further returns.

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.