Daily Brief Consumer: Prosus NV, Crystal International, Mr. DIY Holding (Thailand), Smartworks Coworking Spaces Ltd, Mr Price Group Ltd, Volkswagen , RPSG Ventures Limited, Adeia, Pvh Corp and more

• On Tuesday, China announced fresh stimulus measures targeting the stock market and property sector.
• The PBoC reduced the main policy rate and cut the RRR, signaling that further cuts were on the cards for later this year.
• Further stimulus measures were announced today ahead of the Golden Week holiday. The discounts of Naspers and Prosus have rallied on the news, we see room for further upside.

• This is a short follow-up on HK-Listed Apparel & Footwear Screener: Right Stocks Listed in the Wrong Market – Attractive Yield & Rapid Expansion Outside China – Sep 2024 
• To make the list more comprehensive, we added JNBY Design Ltd (3306 HK), which trades at 8x PE, has a 9% dividend yield, and is net cash.
• We also have updates from Crystal International’s (2232 HK) interim report, which has a very positive future outlook. 

• Mr. DIY Holding (Thailand) (2472516D TB)  is looking to raise as much as US$300m in its upcoming IPO in Thailand.
• It is the largest home improvement retailer in Thailand offering value prices i.e. “Always Low Prices” for over 15,000 products across a variety of departments. 
• In this note, we look at the firm’s past performance.

• Smartworks Coworking Spaces Ltd (1742134D IN) is looking to raise about US$120m in its India IPO.
• It is an office experience and managed campus platform, typically focused on leasing entire/large, bare shell properties in prime locations and transforming them into fully serviced, tech-enabled campuses with amenities.
• In this note, we talk about the company’s historical performance.

• Last week Friday, JSE indices were rebalanced in the closing auction. Turnover for the day was R53.7bn, R37bn traded in the closing auction (68%).
• Turnover at the June rebalance was R58bn, 66% traded in the closing auction.
• Foreign activity in MRP on Friday suggests that there was a large buyer, despite muted index weight changes.

• Volkswagen, an iconic symbol of German industry, is facing unprecedented challenges with potential factory closures
• The Volkswagen brand, which produces half of the cars for the entire Volkswagen Group, is struggling with high costs and low profit margins
• The potential layoffs and factory closures could have significant impacts on both Germany’s economy and its national identity as an industrial giant

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• RPSGV reported a decent Q1FY25 with FMCG business sustaining an annualized revenue run-rate of INR 500cr+. The Sports business also reported healthy Q1FY25 revenue (INR 500cr+) led by IPL contribution.
• To add to growth aggression, RPSGV announced a new CEO for the FMCG business in August. Mr. Sudhir Langer, an accomplished FMCG professional, took the baton from Mr. Rajeev Khandelwal.
• At the current valuation, RPSGV is available at a holding company discount of 75%+. As the scalability potential of the FMCG and Sports businesses become evident, significant re-rating could happen.

• Q3 is coming to an end and ADEA has yet to announce new licensing deals its management has been asserting would happen this year. 
• ADEA has maintained a revenue forecast of $380 million to $420 million on the expectation there would be at least two major new licenses announced this year.   
• Our earning model currently calls for ADEA to generate $400 million in revenue with the third quarter being a smaller step up in revenue compared to the fourth quarter.

• We are reiterating our Buy rating, $3 price target and projections for Vince Holding after visiting the company’s store in London and reviewing Vince’s wholesale offering with leading department stores.
• We continue to believe Europe, and especially the United Kingdom, remain key growth opportunities for Vince, as their fashion aesthetic and pricing are ideal to capture market share in Europe.
• Further, we believe, even with their limited current reach, Vince is already beginning to cultivate a very loyal local customer base that considers the product part of their overall lifestyle.