Daily Brief Consumer: Seven & I Holdings, Porsche AG, Jyp Entertainment, Hyundai Greenfood, Etsy Inc, Best Buy Co Inc, Church & Dwight Co, Under Armour, WD-40 Company and more

• After raising guidance yet again in 1QFY23 through stronger than expected performance in the overseas business, Seven & I is scheduled to release Q2 results on 6th October 2022.
• We are optimistic that 2QFY23 could provide the platform for Seven & I to break the ¥6,100 level, at which the share-price has been stuck for the first 9-months 2022.
• This is because, we are seeing a significant improvement in Seven & I’s domestic performance while, North America is carrying the growth momentum that been there since the Speedway-acquisition.

• The Porsche IPO is expected to be the second largest IPO ever in Germany. Total proceeds from the IPO will be 18.1 billion to 19.5 billion euros.
• The IPO price range is from 76.50 euros to 82.50 euros per share, which suggests a valuation of 70 billion to 75 billion euros.
• After the IPO, Volkswagen will have an extraordinary shareholders meeting in December to propose to pay 49% of total proceeds to shareholders in early 2023 as a special dividend.

In our next Webinar, we welcome Analyst Soo Young Kim , who will take us through the ESG risks present in South Korea and her analysis based on negative ESG incidents. 

The webinar will be hosted on Wednesday, 21 September 2022, 17:00 SGT/HKT.

Soo Young is the Head of ESG Intelligence at Who’s Good, Asia’s first AI-driven ESG Insight Provider. Using AI technologies and public data, Who’s Good provides objective and up-to-date corporate ESG insights on Asian companies.

• The value accretion that will occur by unlocking treasury shares will be more significant than Hyundai Dept. The treasury shares account for 10.64%, compared with 6.61% for Hyundai Dept.
• Neither Holdco nor Opco will likely remain in the KOSPI 200 after relisting. So we cannot expect PASSIVE inflow at the time of relisting.
• A tender will likely follow. However, neither is available for shorting. So, we should use Opco’s overheated price adjustment as an exit timing for our positions aimed at value accretion.

• Etsy recently launched the Etsy Purchase Protection program where buyers will get a total refund for purchases they make on Etsy.com in cases that do not match the item description, never arrive, or arrive damaged.
• This new program aims at making shopping on the website more worry-free.
• The purchase Protection Program of Etsy will complement the company’s brand efforts in improving customer support, maintaining integrity in its marketplace as a destination for special and unique items, and increasing trust signals over the user experience.

• Best Buy delivered a decent result this quarter surpassing Wall Street expectations on all counts.
• Best Buy is also viewing more interest in the sales events such as tax-free events, prime day, and other events that are geared at an exceptional value.
• Best Buy also opened new outlet stores, finished store remodels, and started to implement newly signed deals with healthcare companies.

• Church & Dwight has recently been in the news for its acquisition of the Hero Might Patch brand.
• In the last quarter, Church & Dwight increased consumption in 11 of the 17 categories in which they participate, in some cases on top of significant increases in consumption from the previous year.
• One of their acquisitions, Therabreath, had a great quarter with 33% consumption growth.

• Under Armour’s brand strength helped the company deliver an all-around beat while navigating the present environment.
• The company’s financial performance has been decent as its wholesale revenue increased while the eCommerce revenue and direct-to-consumer revenue decreased.
• The company is planning to launch a new footwear platform, Kevin, that can change the landscape of athletic footwear.

• The recent decline in crude oil has resulted in optimism WDFC’s gross margin would improve. There is a delay before WDFC sees a benefit/impact from the price of oil
• We continue to maintain our viewpoint of WDFC experiencing slower demand for its products from consumers and retailers holding back on orders
• WDFC’s exposure to international markets could negatively impact sales due to the strong US Dollar