In today’s briefing:
- NPN X PRX FY24 Results: Initial Market Reaction Positive & JSE June Auction Analytics
- Best World (BEST SP): The 19th July Vote Will Be Close
- RPSG Ventures: FMCG Business Is Scaling Up Well
- ZJLD Group (6979 HK): AGM Takeaway + Thoughts On The Chinese Liquor Industry
- Unilever PLC: How Will The Enhanced Productivity and Efficiency Measures Translate Into EBITDA Margins! – Major Drivers
- In Particular, Companies with Small Market Capitalization Should Consider Going Private
- The J. M. Smucker Company: These Are The 4 Fundamental Factors Driving Its Performance! – Financial Forecasts
- LKQ Corporation: Adoption and Expansion of Digital and Technological Solutions! – Major Drivers
- Philip Morris International Inc.: Is The Focus on Smoke-Free Product Portfolio Paying Off? – Major Drivers
- Domino’s Pizza Inc.: How Are Their Franchisee and Market Pricing Strategies Evolving? – Major Drivers
NPN X PRX FY24 Results: Initial Market Reaction Positive & JSE June Auction Analytics
- Naspers and Prosus released results for FY24 yesterday morning. The initial market reaction was positive, both discounts closed narrower for the day.
- Since the appointment of Fabricio Bloisi was announced in May, both discounts have widened.
- JSE indices were rebalanced in the closing auction on Friday. Turnover for the day on the JSE was R58bn, R38bn traded in the closing auction (66%).
Best World (BEST SP): The 19th July Vote Will Be Close
- Two years of suspension, an “okay” Offer (following the bump), family members selling prior to and after the Offer – Best World International (BEST SP) is anything but dull.
- The Circular is now out for the $2.56/share Exit Offer from Best World’s founders Dora Hoan and Doreen Tan. The Offer Price will not be increased.
- Independent shareholders go to the vote on the 19th July. The IFA says fair & reasonable. Payment is possible late-July. But the vote is by no means a sure thing.
RPSG Ventures: FMCG Business Is Scaling Up Well
- The FMCG business has been now sustaining an annualized revenue run-rate of INR 500cr+. Q4FY24 FMCG revenue was INR 135cr+, similar to Q3FY24 and a growth of 30%+ YoY.
- Firstsource Solutions (“Firstsource”) , the BPO business, has been sustaining its recovery after a lull period for two years. Its revenue grew 4.2% QoQ and 4.5% YoY in constant currency.
- The Sports business revenue continue to be dominated by IPL. Having played three seasons now, RPSGV’s IPL franchise, Lucknow Super Giants (LSG), has made its place and holds significant value.
ZJLD Group (6979 HK): AGM Takeaway + Thoughts On The Chinese Liquor Industry
- ZJLD Group (6979 HK) held its annual general meeting last Friday (June 21).
- The share price is down 21% in the last 30 days, mainly due to a major sector pullback.
- I continue to expect 20% net profit growth for the company in 2024E. The company is trading at 13x 2024E PE which I believe is attractive.
Unilever PLC: How Will The Enhanced Productivity and Efficiency Measures Translate Into EBITDA Margins! – Major Drivers
- Unilever has presented its full-year results, reflecting a mix of positive advancements and areas requiring improvement.
- Among the highlights, Unilever reported an underlying sales growth of 7%, driven by a significant contribution from price increases at 6.8% and a marginal recovery in volume at 0.2%.
- Notably, the 30 Power Brands demonstrated robust performance, accruing an 8.6% growth in underlying sales and contributing notably to the company’s volume growth.
In Particular, Companies with Small Market Capitalization Should Consider Going Private
- For companies facing challenges in maximizing sustainable shareholder returns, it is not a bad idea to rethink management strategies for corporate value growth in the quiet environment of going private.
- MBOs began to attract attention as managers became more aware of the listing costs. TSE’s request last March was the product of making companies even more aware of the costs.
- It is not easy for a company that has not been recognized in the marketplace for many years to increase its stock valuation in a short period of time.
The J. M. Smucker Company: These Are The 4 Fundamental Factors Driving Its Performance! – Financial Forecasts
- J.M. Smucker Company, in its Fiscal 2024 Fourth Quarter, presented a mixed picture of its operational and financial stances, balancing strategic growth initiatives against persistent challenges.
- The management outlined a cautious yet structured approach towards scaling its operations, emphasizing investment in key growth areas while navigating through ongoing market volatilities, particularly in the coffee segment.
- 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.
LKQ Corporation: Adoption and Expansion of Digital and Technological Solutions! – Major Drivers
- LKQ Corporation reported its first quarter of 2024 earnings, revealing a mixed bag of results under a challenging economic atmosphere.
- While the top-line revenue grew considerably, other key performance indicators softened compared to previous quarters, reflecting the impact of several external and operational headwinds.
- 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.
Philip Morris International Inc.: Is The Focus on Smoke-Free Product Portfolio Paying Off? – Major Drivers
- Philip Morris International has presented its 2024 first-quarter results, revealing significant strides in revenue and operating income facilitated by robust volume growth and effective operational execution.
- The company has demonstrated a marked improvement in its performance across various sectors, including both its traditional combustible products and newer, smoke-free alternatives.
- 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.
Domino’s Pizza Inc.: How Are Their Franchisee and Market Pricing Strategies Evolving? – Major Drivers
- Domino’s Pizza, Inc. recently presented its first quarter 2024 results, underpinned by a robust performance reportedly driven by strong U.S. sales, reflecting bullish growth in the carryout and lower-income cohort segments.
- The company experienced a notable 5.6% increase in U.S. same-store sales, driven predominantly by transaction growth, which the management attributes to the enhancements in its loyalty program and promotional strategies.
- Despite a strong domestic performance, international sales showed relatively softer growth at a rate of 0.9%.
💡 Before it’s here, it’s on Smartkarma
Sign Up for Free
The Smartkarma Preview Pass is your entry to the Independent Investment Research Network
- ✓ Unlimited Research Summaries
- ✓ Personalised Alerts
- ✓ Custom Watchlists
- ✓ Company Data and News
- ✓ Events & Webinars
