Daily Brief Consumer: Rakuten Group , Genda Inc, Cinema XXI, Oriental Watch, Dickson Concepts Intl, BRF SA, Colgate Palmolive Co, Yerbae Brands and more

• Last Friday, the FFW changes for the TOPIX July Free Float Weight Review were announced. There have also been other recent announcements creating flows on 30 July.
• Some of these other recent announcements represent a possible change in ad hoc methodology.
• Total Flow for 30 July is ~$3.3bn a side driven by selling flows (3/4 of the buy flows are reverse funding). $2.1bn of selling is > 3 days ADV.

• Genda Inc (9166 JP) is looking to raise around US$100m in its Japan IPO.
• Genda develops and operates amusement facilities in Japan, primarily operating under its Genda GiGO Entertainment subsidiary.
• As of Apr 23, the firm operated 250 amusement facilities domestically and four facilities in Taiwan. 

• Cinema XXI (CINEMA IJ) aims to raise up to US$160m in its Indonesia IPO.
• Cinema XXI is a premium theatrical exhibition, F&B and experience company. It is the largest cinema chain operator in Indonesia.
• We have looked at the company’s past performance in our earlier notes. In this note, we will undertake a peer comparison.

• A Review on Final Results Oriental Watch recently announced its earnings for the fiscal year, and the results were quite impressive.
• On June 20, 2023, the company reported a revenue of HKD3.7 billion and a net profit of HKD295 million.
• These figures surpassed our initial estimates of HKD3.

• In my previous insight Dickson Concepts 113 HK: Straight From The Ben Graham Stable, >40% Discount to NCAV, I highlighted why one must explore the stock as a viable investment.
• NCAV (Net current asset value) in FY23 was 7.5 HKD/share ( Vs. current share price of 4.25 HKD/share), with net cash + ST/LT financial investments now at 9.7 HKD/share. 
• Absolute DPS ( dividend per share) was 35 cents representing a yield of 8.2% ( payout ratio of 55%). The trailing PE is 6.6x FY23. 

Lucror Analytics’ ESG Scores are based on a 3-tiered scale and are adjusted for Controversies (if applicable).
We assess BRF’s ESG as “Adequate”, in line with the “Adequate” Environmental and Governance scores. The Social pillar is “Strong”. Controversies are “Immaterial” and Disclosure is “Strong”.

• Cinema XXI (CINEMA IJ) aims to raise up to US$160m in its Indonesia IPO.
• Cinema XXI is a premium theatrical exhibition, F&B and experience company. It is the largest cinema chain operator in Indonesia.
• We have looked at the company’s past performance and undertaken a peer comparison in our earlier notes. In this note, we talk about valuations.

• Colgate-Palmolive’s share price performance over the past few years is not as grim as it might look on the surface.
• Improving gross margin remains the only game in town for future shareholder returns, according to the company.
• Colgate-Palmolive Company (NYSE:CL) is rarely seen as an attractive investment opportunity as the company significantly underperformed the S&P 500 and the consumer staples sector in particular over the past 5-year period.

• Yerbaé announced a strategic partnership with Farrell Distribution, a renowned distributor of premium beverages in Vermont.
• YERB.U extended its partnership with CrossFit champion Annie Thorisdottir and launched new flavours in Sprouts Farmers Markets.
• However, Yerbaé (3.7x 2024E sales) continues to trade at a sizeable discount to Celsius at 7.7x 2024E sales and Monster Beverage at 7.0x 2024E sales.