Daily Brief Consumer: SHEIN, Toyota Motor, Clio Cosmetics, TSE Tokyo Price Index TOPIX, BYD, Corn Active Contract, Card Factory and more

• EU, like the US, is considering lowering “de minimis” import threshold, soon
• Lowering import value thresholds or raising reporting requirements could make SHEIN/Temu/AliExpress goods more expensive, and fulfillment more onerous
• Threat of “de minimis” changes coming just as SHEIN reportedly seeks an IPO

• Aequitas Research’s weekly update on the IPOs, placements, lockup expiry and other ECM linked events that were covered by the team over the past week.
• On the IPO front, we looked at the recently launced offerings of Timee Inc , Chenqi Technology Limited and Cirrus Aircraft.
• On the placement front, this week too was dominated by the cross-shareholding unwinds, this time in Honda Motor (7267 JP).

• With just over a third of the review period complete, there could be 12 changes for the KOSDAQ 150 Index (KOSDQ150 INDEX EQUITY) at the December rebalance.
• Even with 12 potential changes, there is sector balance with over half the changes in the Information Technology sector. Passive trading impact varies from 0.04-4.1x ADV.
• The potential adds have outperformed the potential deletes and the KOSDAQ 150 Index (KOSDQ150 INDEX) since the start of the year with a big move higher since mid-May.

• Since TSE’s request, more companies have used ROE or ROIC as KPIs in mid-term management plans, but even now, more companies only indicate targets for sales, operating profit, etc.
• Larger companies have been the first to raise ROE; the key will be for smaller companies, which have been slower to improve their ROE, to raise their ROE.
• Many companies have only just begun to reduce their policy shareholdings and strengthen shareholder returns, and are still in the process of addressing the core issue of increasing profit margins.

• BYD’s sales volume increased by 35% YoY in June and by 39% YoY in 2Q24.
• Tesla’s Model Y is on the state-owned corporation procurement catalogs.
• Microsoft plans to close its franchised store chain in China due to the weak demand for Surface.

• Corn and Wheat planted acreage are down 3% and 5% YoY, respectively. Meanwhile, Soybean total planted area is up by 5% YoY compared to 2023.
• Planted acreage and ending stocks drove prices down for wheat and corn. Soybeans bucked the trend as reported acreage fell short of WASDE estimates by 400k acres.
• A positive picture for 2024 planting season is visible, with the early benefits of warm temperatures and improved moisture levels setting the stage for strong yields.

• CARD is a UK microcap retailer with impressive qualities despite appearing unattractive at first glance
• The company has shown consistent growth and gains market share each year in a stagnant market
• With a strong balance sheet, high return on capital employed, and efficient CEO, CARD presents a compelling investment opportunity at a low valuation

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.