Daily Brief Consumer: PT Avia Avian, Seven & I Holdings, PDD Holdings, Fila Holdings, Amer Sports , ASICS Corp, Herbalife Ltd, NEOGAMES and more

• Avia Avian (AVIA IJ) is Indonesia’s largest paint manufacturer with a strong track record, selling a wide range of architectural solutions products, with a countrywide distribution network. 
• The company continues to add to its product portfolio by adding more affordable products to cater for consumers trading down due to inflationary pressures depressing disposable incomes. 
• Avia Avian continues to add to its distribution network and has introduced express delivery that allows retailers to take more products but less inventory. Valuations are attractive with supportive dividends.

• Alongside results broadly aligning with consensus expectations, Seven & I Holdings (3382 JP) announced yet another major acquisition.
• The company has agreed to acquire 204 convenience stores in the US for an acquisition price of $950m.
• It seems that through aggressive overseas expansion and share buybacks, Seven & I is aiming to retain its overseas investors and simultaneously ward off potential investor activism.

• We expect PDD to report the highest growth in topline for 4Q23 over last three years. In particular, we believe its bottom line will beat by wide margin.
• But easy days are gone for PDD’s domestic e-commerce business and high base will kick in from 1Q24, resulting in tough comps, notable deceleration and potentially short-term share price volatility.
• We see 20% upside to current PDD valuation by assigning 20xPE to our US$12 billion adjusted net profit estimate for 2024.

• We provide a list of four companies including Fila Holdings, Kolmar BNH, KG Mobility, and Hanwha Galleria where the insiders have been buying shares of their own companies. 
• These four stocks are up on average 5.6% in the past one month, outperforming KOSPI which is down 1.6% in the same period.
• Insiders at Fila Holdings are probably increasing their stakes to capitalize on the price discrepancy as Fila Holdings’ 51% stake in Acushnet is 39% more than its current market cap. 

• Amer Sports (AS US) plans to raise more than US$1bn in its US IPO. Proceeds will be used to pay down loans to Anta Sports Products (2020 HK) led consortium.
• Amer Sports is a sports and outdoor brands company making clothing and other sporting equipment for use in snow sports, running, climbing, baseball, american football, tennis and other sports.
• In this note, we talk about the not-so-positive aspects of the deal.

• After forecasting record sales for this year, Asics now wants to become the leading performance running brand in Japan, Europe and the US by 2026.
• To achieve this, Asics has invested in buying up many of the leading race platforms around the world to harvest data and link its brand to serious running events.
• The sports firm could also see significant growth for the Onitsuka Tiger brand, particularly across Asia.

Key points (machine generated)

• Herbalife’s international business is seeing an increase in volume trends, which is expected to result in a return to top-line growth in the current quarter.
• Investors are mainly focused on the 20% of revenue generated from the US market, but there is significant growth potential in the other 80% of the company’s international operations.
• Despite the performance of the US market, Herbalife is projected to earn more than $3.00 per share this year and $4.00 per share next year.

This article is sourced from an online content aggregator through publicly available sources and is displayed below for general informational purposes only. This article was originally published 3 months ago on Value Investors Club.

Key points (machine generated)

• The deal does not require regulatory approvals from Israel, increasing the chances of successful completion.
• The Middle East situation is unlikely to have a significant impact on the deal, as NGMS’s assets and value proposition remain stable.
• The deal offers an attractive spread and potential for a low-risk profit opportunity.

This article is sourced from an online content aggregator through publicly available sources and is displayed below for general informational purposes only. This article was originally published 3 months ago on Value Investors Club.