Daily Brief Consumer: Midea Group Co Ltd A, Seven & I Holdings, P N Gadgil Jewellers, Hengan International Group, Corn Active Contract, Geely Auto, Ingredion Inc, Singular Genomic Systems, Samvardhana Motherson Automotive Systems Group BV and more

• Midea Group Co Ltd A (000333 CH) priced its H Share at HK$54.80 to raise HK$31,014 million (US$4.0 billion) in gross proceeds. The H Share will be listed tomorrow.
• The H Share listing price implies an AH discount of 21.4% at the A Share price of RMB63.51. This compares to Haier Smart Home (6690 HK)‘s AH discount of 13.8%.
• Futu grey market data shows that the H Shares closed 5.1% higher at HK$57.60. Our valuation analysis suggests that the H Share listing price is attractive.

• On 13 September, the Ministry of Finance of Japan added 7&I to a list of “core” designated companies based on results of voluntary inquiries to all listed companies.
• Several media reports suggest that the change in 7&I’s designation to core would complicate the proposed acquisition by Alimentation Couche-Tard (ATD CN). The core designation will not change Couche-Tard’s strategy.
• The change to 7&I’s designation to core will paradoxically push Couche-Tard to firm up its revised offer. An undemanding valuation protects the downside of a no-deal situation.

• Midea Group Co Ltd A (000333 CH) raised around US$4.6bn in its H-share listing (including over-allocation), after the deal was upsized.
• Midea Group is one of the world’s largest home appliance manufacturing companies with a presence in over 200 countries. Its A-shares have been listed since 2013.
• We have covered the deal background in our previous notes. In this note, we talk about the trading dynamics.

• P N Gadgil Jewellers (1742652D IN) raised around US$130m in its India IPO. 
• It is an Indian organized jewellery player with product offerings which include traditional as well as modern and functional jewellery designs, in gold, diamond, silver and platinum.
• In our previous notes, we looked at the company’s past performance and valuation. In this note, we talk about trading dynamics.

• Hong Kong Conglomerate Sector is showing renewed strength with Materials and Energy under pressure.  HK market 30 day volatility at 5 year low as market continues to de-risk.
• Hengan International Group (1044 HK) chart broke down from its Descending Triangle pattern after reporting its 1H24 results. J&T Global Express (1519 HK) broke down from its double bottom pattern.
• China Galaxy Securities (H) (6881 HK) price relative to the MSCI China index broke to a new high.  The company reported good results in a difficult environment for China brokers.

• Geopolitical risks are resurfacing in grain and oilseed markets
• Weather-related risks are impacting agricultural markets, particularly in the US and South America
• US grain export demand is strong, but dry conditions may lower yield potential and delay planting in South America, causing prices to rise

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

• The sales volume growth rate began to accelerate in August.
• Geely’s revenue grew strongly by 39% YoY in 2Q24 and 47% YoY in 1H24.
• The operating margin had improved YoY for the past one year and a half.

• Innovation trends and patent filings within the food industry saw significant upswing over the year in the areas of natural ingredients and methods to manufacture vegan proteins.
• Ingredion Ingredion Inc (INGR US) has a leadership position in  the fast growing Clean Label, Sugar Reduction and Plant-Based Protein Technologies
• On a relative basis the stock despite better profitability metrics trades at a discount to the country-sector median and on an absolute basis at about 20% discount to FV.

• Singular Genomics Systems, Inc. stands at an interesting crossroads with the recent acquisition interest shown by Deerfield Management.
• Known for its innovative approach in genomics, specifically its G4® Sequencing Platform and the upcoming G4X™ Spatial Sequencer, Singular Genomics has garnered attention in the competitive genomics space.
• Despite its modest financial performance, with only $0.7 million in Q2 revenue and a negative gross profit, its cutting-edge technology and increasing customer interest make it a potentially valuable asset.

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.

• Meituan
• Samvardhana Motherson International Ltd