Daily Brief Consumer: Perfect Medical Health, Inageya Co Ltd, KraneShares CSI China Internet ETF, Nameson Holdings, ADT , Under Armour, Global-e Online , Inter Parfums and more

• Perfect Medical Health (1830 HK), post a correction of consumer discretionary stocks in HK, now trades at a yield of 11.5%, with cash&investments representing 24% of the market cap.
• HK is experiencing a dip in consumer sentiment, and the company isn’t immune to it, but flat sales/profitability, a 24% net margin, and >40% ROE provide great margin of safety.
• The stock trades at 9.3x FY24 PE and 11.5% yield (assuming a 110% payout average across company history) with a growth option once the HK economy kickstarts.

• Inageya Co Ltd (8182 JP) announced a share exchange offer by United Super Markets (3222 JP) at 1.46 USMH shares per Inageya share.
• The share exchange aligns with Aeon Co Ltd (8267 JP)’s well-flagged intention of making Inageya a wholly-owned subsidiary of USMH.
• Aeon’s 50%+ shareholding in Inageya and USMH facilitates the two EGM votes. The deal metrics are broadly fair for both sets of shareholders. 

• KWEB giving an attractive entry point here, as it begins to outperform the domestic FDN.
• Toyota>Honda and look for that relationship to continue going forward.
• JD>BABA, a new dynamic divergence between the two, and my opinion is JD will be the leader in 2024 and beyond.

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.

• China Jinmao Holdings
• JSW Steel Ltd
• Sands China
• Yuexiu Property

• The full-year 2023 earnings of ADT revealed notable developments and financial figures in its operation highlights.
• The company has seen a solid performance, with investments for its future and a shift towards its core security and smart home business as primary focuses.
• The plan to exit its residential solar business promises simplicity and concentration on expanding its consumer oriented model.

• Under Armour Inc.’s Q3 2024 earnings revealed a challenging retail environment and uneven consumer behavior across markets.
• Despite the difficulties, the company achieved Q3 results aligned with November projections, better-than-expected earnings, and has made substantial progress in boosting global demand and simplifying consumer interactions.
• Baptista Research looks to evaluate the different factors that could influence the company’s price in the near future and attempts to carry out an independent valuation of the company using a Discounted Cash Flow (DCF) methodology.

• Global-e Online Ltd.
• announced its fourth quarter and full year 2023 financial results and we would term the outcome as largely optimistic, yet grounded in the challenging macroeconomic conditions of the past year.
• The company concluded 2023 strongly, with the fourth quarter being its most successful to date.

• IPAR has started 2024 with what could be described as relaunching of the Lacoste fragrance line after IPAR encountered under investment by the previous licensee
• There is increased investor concern consumer appetite for fragrances could wane even though so far there has been little sign of it
• Specific to Lacoste, we expect greater excitement when IPAR releases its first fragrance for the brand later this year