Daily Brief Consumer: Starbucks Corp, Ping An Healthcare and Technology, PT Daya Intiguna Yasa Tbk (Mr DIY Indonesia), Pacific Textiles, Lands’ End Inc, Build A Bear Workshop, 1stdibs.com and more

• Starbucks’ CEO of China denied the rumor that Starbucks will sell its Chinese businesses.
• Chow Tai Fook closed 239 stores from March to September.
• SAIC and Volkswagen will extend their joint venture to 2040.

• PAGD’s Special Dividend announcement made investors “unhappy”. PAGD’s operation after IPO is a big failure, which is why there were large amounts of funds left that were not used.
• Being a “vassal” of Ping An Group won’t bring high valuation due to limited growth potential. There’s still room for stock price/valuation to decline. Investors need not rush to buy.
• The Special Dividend will be approved. Ping An’s idea is to increase shareholding ratio by distributing dividends, which can also lower PAGD’s stock price, providing opportunity for a low-price privatization.

• PT Daya Intiguna Yasa Tbk (Mr DIY Indonesia) (2517930D IJ) is looking to raise US$296m from its Indonesia IPO.
• Mr DIY Indonesia (MRDIYI) is a home improvement retailer. The entity is the Indonesian entity under the Mr DIY group’s list of subsidiaries.
• In this note, we will undertake a peer comparison and discuss our thoughts on valuation.

• The HK market is moving, and the share prices of high-yield companies are increasing. Despite the average YTD returns of 38%, stocks are trading at 5-15% dividend yields.
• We update investors with results from Nameson Holdings (1982 HK) H1 FY25: 16-17% Dividend Yield Intact and Pacific Textiles (1382 HK), which guided down earnings due to interruptions in Vietnam.
• We also flag Yue Yuen Industrial Holdings (551 HK) results, buybacks, and some updates from our conference call with Nameson Holdings (1982 HK) management. 

• We are reiterating our Buy rating, $20 price target and projections for Lands’ End with the company announcing 3QFY24 (October) results before the open on Thursday.
• We believe, with a continued emphasis on reducing discounting, rolling out new products and features to create compelling product (and category) stories and expansion on the licensing and digital marketplace arenas, Lands’ End has continued to shift the overall story to driving higher returns and creating the ability to achieve higher overall revenue.
• Further, with a deepening international focus and material emerging opportunities in the Outfitters uniform and embroidery business, we believe Lands’ End continues to rapidly improve their overall business model, and we reiterate our Buy rating and $20 price target for LE.

• We are reiterating our Buy rating, $41 price target and projections for Build-A-Bear Workshop with the company announcing 3QFY24 (October) results before the open on Thursday.
• We believe, with a very strong Halloween season, the launch of commercial and franchised stores beginning to drive operating momentum, new products and a solid start to the Holiday season, management will be upbeat on current and future trends, and we believe Street expectations for 3Q and FY24 (and our price target) could prove conservative.
• As such, we are reiterating our Buy rating and $41 price target for BBW.

• Information provided is for informational purposes only, not investment advice
• Author may hold long positions in mentioned securities, subject to change
• Author is a trader, not obligated to inform readers of transactions, seek expert advice before making investment decisions

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.