Daily Brief Consumer: Oriental Land, Multi Bintang Indonesia, MGM China Holdings, Hilton Worldwide Holdings , Tempur Sealy International, O’Reilly Automotive, TSE Tokyo Price Index TOPIX, NIFTY Index, Webuy, Fourlis Holdings Sa and more

• In mid-January, the TSE announced a “name-and-shame” list where they listed all the companies which had put forth a disclosure about 【資本コストや株価を意識した経営の実現に向けた対応】. But they did not actually shame.
• The list shows which companies have disclosed a policy/consideration. But no data/links. We are weeks ahead of the TSE and we have all the links.
• We created a tool to name everyone, show their reports, provide links to every document, and now a new tool. Put in a name, see the difference between the Old/New Reports.

• Multi Bintang Indonesia (MLBI IJ) showed a weak print, with sales down 10% YoY and profitability flat for Q1 FY24. Consumption was weak locally despite strong Bali tourism. 
• On the positive side, the company improved its net cash position to substantially to 900 bn Rph ( or 6% of Mkt Cap) and expanded margins by 400 bps YoY. 
• Trading at 13x FY23 PE (with a 7% dividend yield assuming a 100% payout), there is great value in this market leader (60% Mkt share) of beer consumption in Indonesia.

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.

• Lippo Karawaci
• Lippo Malls Indonesia Retail Trust
• MGM China Holdings
• SK Hynix

• Hilton has reported its first-quarter results for 2024, which the company states have continued to demonstrate the strength of Hilton’s business along with its development story.
• Although the company’s RevPAR growth found itself at the lower end of its guidance, both adjusted EBITDA and adjusted EPS exceeded predictions significantly.
• Some of Hilton’s newly announced partnerships and portfolio additions have solidified its confidence in future growth.

• Tempur Sealy International (TPX) is the industry leader in the mattress market, consistently gaining market share and outperforming competitors
• Despite a cyclical downturn in the mattress industry post-COVID, TPX is experiencing secular share gains and margin improvements
• TPX’s pending acquisition of Mattress Firm presents an attractive opportunity for investors due to its reasonable valuation and potential for growth in the years ahead

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.

• In the first quarter of 2024, O’Reilly Automotive, Inc., had a 3.4% comparable store sales growth, which was primarily driven by mid-single-digit comps in Professional.
• This marked continuous strong top line sales results and was a testament to consistent execution across all 6,200+ stores.
• The company noted that its store volumes continued to grow despite the company’s size and market share gains over the years.

• Criteria for IPOs aren’t a major issue. TSE is concerned that many companies will be in jeopardy of being delisted if the criteria for maintaining listing are raised.
• TSE will likely make “request” to Growth Market listed companies to increase their market capitalization if the criteria for maintaining listing are not raised.
• From 2025, delisting and subsequent re-listing through M&A and MBOs is expected to increase, which will lead to more investment opportunities.

• The NIFTY Index kept rising for the past few months but has stalled its advance since March. It may be about to pullback and lose some gains, in May.
• The index is currently up 2 weeks in a row, not yet strongly overbought but our model say that from a time perspective it could start to pullback next week.
• If the index does not start to pullback soon, it could rally for another 2-3 weeks.

• We are initiating coverage of Webuy Global (WBUY) with a $0.85 target valuation.
• Webuy Global is a community-based buying group platform that sells groceries, fresh produce, and packaged travel tours through its app in Indonesia and Singapore.
• The company is attempting to leverage its customer relationships to expand into additional markets where group buying has shown promise, like insurance.

• Fourlis Group sales in 2023 increased by 10% on a comparable basis, excluding Intersport Turkey and The Athlete’s Foot sales, reaching €521.3m.
• There was a significant increase in EBITDA by 21.8%, reaching €48.2m in 2023, compared to €39.6m in the previous year, due to the rationalization of operating costs and an increase in operating leverage.
• The group’s retail business showed robust performance, contributing significantly to overall revenue growth.