Daily Brief Consumer: Seven & I Holdings, Geely Auto, The Walt Disney Co, TI Fluid Systems , Walmart, Target Corp, Wynn Macau Ltd, Adastria Co Ltd, Kura Sushi USA , Gap Inc/The and more

• 7&I traded at less than 5x reported EV/EBITDA consistently for roughly 4 years straight, and no one seemed to care or notice.
• Now that it trades close to 9x, there is an overflow of eager financiers and a mile-long line of analysts who will tell you that it is still undervalued.
• This is the stock market equivalent of duct tape and a banana.

• The data in this insight is collated from the “shareholding disclosure” link on the HKEx website.
• Often there is a corresponding HKEx announcement on the increase – or decrease – in the shareholding by directors. Or pledging. However, such disclosures are by no means an absolute.
• The key stocks mentioned in this regular insight include: Geely Auto (175 HK), Kingsoft Corp (3888 HK), and Coastal Greenland (1124 HK).

• Bob Iger, CEO of Disney, discusses the legacy and importance of storytelling at Disney, emphasizing the need to balance heritage and innovation.
• He shares insights on leadership qualities, such as empathy, optimism, and the ability to act decisively, as well as the importance of staying curious and patient.
• Bob also touches on the impact of technology, AI, and the role of creativity in the future of storytelling, highlighting the need to maintain human creativity and caution with AI implementation.

This content is sourced through publicly available sources and has been machine generated. Information displayed is for general informational purposes only.

• ABC Technologies has largely completed its due diligence and reiterated a potential offer price of 200p per share, which the TIFS Board is minded to recommend if confirmed. 
• After several extensions, tomorrow November 29 marks the final extension of the PUSU deadline. Spread has tightened over the last trading sessions in anticipation of a firm offer.
• The 200p proposal values TIFS at 4.64x NTM EBITDA, above the 4.55x sector median, reflecting a fair valuation despite industry challenges like Chinese market weakness and fluctuating OEM shares.

• Walmart’s recent performance in the third quarter of the fiscal year 2025 exhibited both strong growth and notable challenges.
• The company achieved a 6.1% increase in sales in constant currency, and profit grew by 9.8%, reflecting Walmart’s ability to manage costs and drive efficiency amid complex global operations.
• Key contributors to the positive results include a 27% increase in e-commerce sales, a 28% growth in advertising, and a 22% rise in membership income, which collectively helped Walmart grow profits faster than sales.

• In Target Corporation’s third-quarter earnings, Target witnessed a healthy 2.4% traffic growth, translating to over 10 million additional transactions compared to last year.
• This is indicative of customer engagement and loyalty, supported by the company’s attractive offerings combining essential services and promotional activities.
• The digital sector also emerged as a strong contender, showcasing an impressive growth of nearly 11%.

• In today’s Morning Views publication we comment on developments of the following high yield issuers: Wynn Macau, ReNew Energy, Softbank Group, Vedanta Resources
• In the US, October personal income came in above estimates at 0.6% m-o-m (0.3% e / 0.3% p).
• Meanwhile, personal spending slowed to 0.4% m-o-m (0.4% e / 0.6% revised p).

• Adastria Co Ltd (2685 JP) has rebuilt and renamed its online store as it aims to create a major fashion mall to rival the likes of Zozo and Rakuten Fashion.
• Unlike those rivals, it has a chain of stores linked to the mall, an advantage in a market where omnichannel is well supported by customers.
• To boost sales from younger Japanese with fewer savings, it has also tied with Acom Co Ltd (8572 JP) to offer small loans.

• It’s a playbook Kura Sushi has performed numerous times before to shore up the balance sheet. In 2021, the company issued 1.1 million shares of stock at $45 netting proceeds of ~$47 million of which $17 million was used to erase the line of credit extended to them during the pandemic from the parent company.

• The rest was used for CapEx and operating costs. In 2023, the company issued a further 1.3 million shares at $54 per share, netting ~$65 million in proceeds for CapEx and operating costs.

• Following the Q4 earnings in November 2024, an announcement to raise (at $85 per share) a further $64.6 million in proceeds surfaced; once again for CapEx and operating costs.

• Gap Inc. reported its third quarter fiscal 2024 earnings, delivering results that met and, in several instances, surpassed expectations.
• Net sales increased by 2%, marking the fourth consecutive quarter of sales growth and contributing to a 1% rise in comparable sales.
• The growth in sales was distributed across its brand portfolio, with Old Navy and Gap showing strong performances, and Athleta experiencing a notable turnaround with a 5% increase in comparable sales.