In today’s briefing:
- 7&I Results and Plans – The Good, The Bad, The Ugly, The Respectable, Unfortunate, and Encouraging
- 7-Eleven Corporation: A Clear Strategy for Long-Term Value, Founding Family Return to Super-Stores
- Hyundai Motor India IPO – RHP Updates, Valuation Getting Tricky
- Quiddity Leaderboard BSE/SENSEX Dec 24: Some Changes to Expectations + Zomato Question Mark
- Shiyue Daotian US$480m Lockup Expiry – Would Need Some Selling to Improve Its Liquidity
- Swiggy Pre-IPO – The Negtives – Neither Food nor Quick Commerce Was the Largest Revenue Driver
- Zhou Liu Fu Pre-IPO – Capturing the Gold Rush
- TPX US: These Are The 4 Biggest Factors Impacting Its Performance In 2025 & Beyond!
- Mattel Inc.: Will Its Strategic Expansion Into Entertainment & Digital Content Yield Dividends? – Major Drivers
- Planet Fitness Inc.: Acceleration of Franchise Development & New Corporate-Owned Clubs May Drive Growth! – Major Drivers
7&I Results and Plans – The Good, The Bad, The Ugly, The Respectable, Unfortunate, and Encouraging
- H1 sales were GOOD. H1 earnings were BAD. New forecasts are UGLY. The CVS initiatives are RESPECTABLE, but US CVS market environment UNFORTUNATE. The creation of the new Holdco ENCOURAGING.
- The Couche-Tard Bid? That’s SEPARATE. Confidential. But three weeks after receiving the new proposal, it hasn’t been publicly rejected. So that’s a thing.
- 7&i is progressing with its Standalone Plan, as it should, because ACT’s bid is more a show of faith for discussions. The York Holdings structure is INTERESTING.
7-Eleven Corporation: A Clear Strategy for Long-Term Value, Founding Family Return to Super-Stores
- Seven & I released 1H24 earnings today as well as details on planned restructuring of its business. Results included some one-off items hitting operating profit as well as lower footfall.
- The bigger news was the plan to hive off the non-CVS retail operations into a new company, York Holdings, leaving a newly named 7-Eleven Corporation running CVS globally.
- Unusually, Seven also mentioned the possibility of new strategic partners investing in York, including even the “original founding families”, suggesting one way of holding on to control.
Hyundai Motor India IPO – RHP Updates, Valuation Getting Tricky
- Hyundai Motor (005387 KS) is looking to raise around US$3.3bn via listing its India unit, Hyundai Motor India. HMI is a wholly owned subsidiary of the Hyundai Motor Group.
- HMI primarily manufactures and sells four-wheeler passenger vehicles and parts. Currently its vehicle portfolio includes 13 passenger vehicle models across sedans, hatchbacks, SUVs and battery EVs.
- In our previous notes, we looked at the company’s past performance. In this note, we will talk about its RHP updates and valuations.
Quiddity Leaderboard BSE/SENSEX Dec 24: Some Changes to Expectations + Zomato Question Mark
- In this insight, we take a look at the Potential ADDs/DELs for the BSE SENSEX, 100, and 200 indices in the December 2024 index rebal event.
- We expect six ADDs/DELs for BSE 100 and six ADDs/DELs for BSE 200.
- Zomato is one of the six BSE 100 expected DELs but its fate will depend on when its expected F&O list inclusion takes place and the index provider’s discretionary choices.
Shiyue Daotian US$480m Lockup Expiry – Would Need Some Selling to Improve Its Liquidity
- Shiyue Daotian (1892269D CH) was listed in Hong Kong on 12th Oct 2023 after raising US$105m close to the top end of its indicative IPO price range.
- Shiyue Daotian is a pantry staple food company in China, providing consumers with pre-packaged premium rice, whole grain, bean, and dried food products.
- The firm’s one-year lockup will expire on 12th Oct 2024. In this note, we will talk about the lock-up dynamics and updates since our last note.
Swiggy Pre-IPO – The Negtives – Neither Food nor Quick Commerce Was the Largest Revenue Driver
- Swiggy is planning to raise around US$1.25bn through its upcoming India IPO.
- Swiggy Limited (Swiggy) is a business to commerce (B2C) marketplace company offering users a platform for ordering grocery and household items (Instamart) and food delivery, through its on-demand delivery network.
- In this note, we talk about the not-so-positive aspects of the deal.
Zhou Liu Fu Pre-IPO – Capturing the Gold Rush
- Zhou Liu Fu Jewellery Co., Ltd. (1716396D CH) is looking to raise $US200m in its upcoming Hong Kong IPO.
- It is a leading and fast growing jewellery franchise in China offering a diverse range of products through offline and online sales channels.
- In this note, we look at the firm’s past performance.
TPX US: These Are The 4 Biggest Factors Impacting Its Performance In 2025 & Beyond!
- The earnings for Tempur Sealy in the second quarter of 2024 presents a mixed financial outlook, characterized by both positive achievements and challenging market conditions.
- The company reported a notable increase in net sales which approximate $1.2 billion, and adjusted EBITDA stood at $231 million, marking a year-over-year improvement of 6%.
- Adjusted earnings per share also saw growth, rising 9% to $0.63, alongside an improved leverage ratio.
Mattel Inc.: Will Its Strategic Expansion Into Entertainment & Digital Content Yield Dividends? – Major Drivers
- Mattel’s second quarter of 2024 presented a mixed set of results, reflecting both the challenges and strategic progress within the toy industry.
- In terms of financial performance, net sales slightly declined by 1% but were stable on a constant currency basis.
- This relatively flat sales trajectory indicates a degree of resilience amidst broader economic fluctuations, with the company managing to maintain its sales levels year-over-year.
Planet Fitness Inc.: Acceleration of Franchise Development & New Corporate-Owned Clubs May Drive Growth! – Major Drivers
- Planet Fitness has released its financial results for the second quarter, demonstrating solid growth figures, a testament to its strategic expansion and robust franchise model.
- The company marked this quarter with a few significant milestones and strategic shifts under the new CEO, Colleen Keating, who brings extensive experience in franchise businesses and real estate.
- One of the notable achievements this quarter was the growth in same-store sales by 4.2% and an increase in revenue by 5.1%.
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