Daily Brief Consumer: Shidax Corp, Eclat Textile Company, MGM China Holdings and more

• 13mos ago I wrote about Shidax Corp (4837 JP) which an interesting restructuring past and a refreshing governance outlook going forward in Shidax Outlook May Change – Better Governance Matters. 
• The stock was up 25% in that period to yesterday. Today, a Nikkei article mid-day suggests the Shida family will launch an MBO. Stock popped. Earnings out after the close.
• The article suggests a take-private MBO with Oisix ra daichi (3182 JP) again supporting the deal. 30 minutes ago Shidax responded saying an offer was put forth at ¥800/share.

• Eclat Textile Company (1476 TT) is a vertically integrated textile company, with around 20% net profit margin, similar to Shenzhou Intl Group Holdings (2313 HK).
• The company just reported 3Q23 results, with sales down 26% yoy and net profit down 28% yoy.  Starting the next quarter 4Q23, the company is expected to return to growth.
• The company now trades at 23x 2024E earnings.  I believe the valuation is reasonable as growth returns, and there are potential upside catalysts. 

Lucror Analytics Weekly Wraps provide an overview of all Morning Views comments and reports published by our analyst team in the past week, and also showcase a list of the most-read reports.

In this Insight:

1. Softbank Group
2. Sunny Optical Technology Group
3. Seazen (Formerly Future Land)
4. Melco Resorts & Entertainment
5. Yanlord Land

and more…