Daily Brief Consumer: Samsonite, Bapcor Ltd, Fast Retailing, Samyang Foods, New Gonow Recreational Vehicles, Wardwizard Innovations & Mobility, SSI Group Inc, Cuckoo Holdings, S&P 500 INDEX and more

• Samsonite is similar to another HK-listed company that I have written extensively about, L’Occitane (973 HK), in that they are both western brands selling globally but somehow listed on HKSE.  
• The company announced a share buyback program this morning.  The company targets to repurchase up to USD200m, which is around 4.3% of the total shares outstanding.
• With the announcement of the share buyback plan, it offers an attractive entry point for the stock, as I like the fundamentals of the company and the valuation is cheap. 

• In response to media speculation, Bapcor Ltd (BAP AU) disclosed an indicative non-binding proposal from Bain Capital at A$5.40 per share, a 23.9% premium to the last close.
• The offer is opportunistically timed to take advantage of the share price collapse precipitating from the profit warning on 2 May. 
• The offer is unattractive. Several substantial shareholders and a high retail base suggest Bain needs to bump. Bain’s offer could also draw other suitors. 

• Fast Retailing is due to report Q3 results on 11 July. We update our views on the outlook for the stock heading into the announcement.
• Uniqlo Japan has already released monthly sales data for the March to May quarter. Performance in May was again strong, slightly surpassing our estimates
• We maintain our full year earnings estimates. The stock has declined by around 6% since Q2 results, but remains fully valued.

• One of the key themes this year that has worked well has been Korean food & beverage stocks that have significantly outperformed KOSPI. 
• Some of the best selling Korean foods (especially overseas) include Samyang Foods’ instant noodles, CJ Seafood’s seaweed products, and Wooyang’s frozen gimbab. 
• We prefer a basket approach to investing in Korean F&B stocks. A basket of top 10 F&B stocks in Korea has outperformed the market YTD and this outperformance could continue.

• Back in February 2022, automotive aftermarket parts provider Bapcor Ltd (BAP AU) was  reportedly subject to multiple buyout proposals. BGH Capital, Quadrant, and Pacific Equity Partners were touted.
• That all came to nought. Shares drifted sideways. Then down. Shares touched a four year low late last month.
• After the incoming CEO had a change of heart, and weaker FY24E guidance, Bain has now tabled a cheeky A$5.40/share indicative Offer. That won’t fly; but value is evidently emerging. 

• New Gonow Recreational Vehicles (NGRV HK) is looking to raise US$100m in its upcoming Hong Kong IPO. The bookrunner on the deal is Huatai International.
• New Gonow Recreational Vehicles (NGRV) is a recreational vehicle (RV) platform with an extensive presence in Australasia that designs, develops, manufactures and sells bespoke towable RVs.
• According to Frost & Sullivan (F&S), the firm held the second-largest market share in Australasia’s RV industry in terms of 2023 sales volume.

• The billion-dollar order that had initially seemed like a game-changer for Wardwizard Innovations turned out to be its downfall as it happens to be a Non Binding MoU. 
• While for an INR 300 crore revenue company billion dollar order was huge, hence stock price rose on the back of rosy picture.
• Promoter used the situation to dump the shares via stake sale as the news of order led to 20% rise in the stock price which eventually raises Corporate Governance Concerns

• SSI grew and expanded, but underwent restructuring after market downturn in 2015
• Share price has not fully reflected improved fundamentals post-restructuring
• Undervalued at P$3.8 per share, with fair value estimate of P$10 per share, offering 160% potential upside for investors

This content is sourced through publicly available sources and has been machine generated. Information displayed is for general informational purposes only. This article was originally published 3 months ago on Value Investors Club.

• Cuckoo Holdings is known for its high-quality rice cookers popular among Asians, particularly Koreans
• Stock price of the company has increased due to its success, with dividends rising from 800 to 1,100 per share
• South Korea’s “value-up” program may further boost the company’s growth and attract more investors as the importance of rice in Korean cuisine creates a strong market for its products

This content is sourced through publicly available sources and has been machine generated. Information displayed is for general informational purposes only. This article was originally published 3 months ago on Value Investors Club.

• The U.S. dollar has staged a false breakdown and is now on the cusp of a reversal.
• False breakdown on 10-yr yield at the critical 4.35% level. Simply put, higher yields tend to pressure the equity markets.
• IWM breaking to new RS lows, violating 7-month RS support. Quality related names continue to be leadership within the market, and Technology continues to dominate relative performance.