Daily Brief Consumer: Saizeriya, Kweichow Moutai, Water Oasis, Amer Sports , Steven Madden and more

• Saizeriya (7581 JP) reported FY1Q24 results (September to November) last week.  Sales grew 22% yoy, and was 2% higher than company guidance.  Operating profit grew 104%.
• Operating profit for the Asia business, the key growth driver of the company, was Y3.3bn, up 56% yoy and above management guidance. 
• Overall thesis remains intact, as the Asia business performed slightly better than expectations. 

• The Quiddity Mainland Connect NORTHBOUND Monitor. Like the A/H Premium Monitor and HK Connect SOUTHBOUND Monitor. Lots of Flows/Position Tables and Charts with which to play.
• Last week saw NORTHBOUND net SELL RMB 2.4bn of A-shares on decent average activity. 
• Renewables and Kweichow Moutai (600519 CH) were the big net sells on the week.

• We compile our selection of small and mid-cap names with our desired characteristics of high dividend yields, value, and margin of safety.
• Our top picks: Perfect Medical Health (1830 HK), Water Oasis (1161 HK), Taste Gourmet (8371 HK), Uchi Technologies (UCHI MK), and The Keepers Holdings (KEEPR PM).
• We recently added Plover Bay Technologies (1523 HK) to our list of companies under coverage. We believe there are some excellent near-term catalysts in the name. 

• We consider the fundamentals of Amer Sports (AS US) attractive and are positive towards its business outlook. Profitability has surged with solid growth rates in revenue and margin.
• Amer’s investment case lies in its multi-brand portfolio, niche, functional, and professional products, margin expansion/profitability improvement, and China growth prospects.
• Since the proceeds will be used to repay shareholder loans, this will lower its interest burden and strengthen its financial position. Hence, the IPO should further boost its profitability.

Key points (machine generated)

• Steve Madden is considered a good investment opportunity due to its strong management team and attractive price.
• The shoe industry has faced challenges, but Steve Madden is seen to have minimal downside risk due to its solid balance sheet and reasonable valuation.
• Steve Madden’s focus on branded shoes also makes it an attractive acquisition target, and if it achieves estimated 2025 earnings of $3 per share, its stock price could potentially increase by 40%.

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.