In today’s briefing:
- Millie’s Library IPO Valuation Analysis
- Muji 500: The Missing Key to Plans for 2,000 Stores
- Doordash 3Q22: Is DASH the COVID Winner?
Millie’s Library IPO Valuation Analysis
- Our base case valuation of the company is target price of 26,404 won per share, which represents 6% higher than the high end of the IPO price range.
- Given the low upside, we have a Negative view of this IPO.
- All in all, while we believe Millie’s Library is a solid company with excellent fundamentals, the IPO price range is not valued at meaningful discount to the intrinsic value.
Muji 500: The Missing Key to Plans for 2,000 Stores
- Muji has been trying to both reduce prices and consumer perception of its price positioning in the past few years, both at home and abroad.
- This has been hard but a new ¥500 chain will make it clear that Muji is shifting positioning.
- Muji will now even compete with discount and fixed price chains across food, home and clothing and the new price format will be much better suited to markets like China.
Doordash 3Q22: Is DASH the COVID Winner?
- Strong growth continues….GOV grew 30%, 2% ahead of consensus..no macro headwinds.
- New “disclosures” imply the core business is more profitable then presumed, rationalizing management’s investments in new businesses.
- Beat and Raise…one of the few online platforms to do this in the current environment…in a business (food delivery) that most didn’t think was habitual LT.
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