Daily Brief Consumer: Sula Vineyards, Cie Financiere Richemont Sa, Tokyo Stock Exchange Tokyo Price Index Topix, Games Workshop Group PLC and more

• Sula Vineyards  raised around US$117m in its India IPO in Dec 2022.
• Sula Vineyards (SV) distributes wines under a bouquet of brands. In addition to its flagship brand “Sula,” popular brands include “RASA,” “Dindori”, “The source,” “Satori”, “Madera” & “Dia”. 
• In this note, we will talk about the lock-up dynamics and updates since our last note.

• FY 2023 was a record year for Richemont with double-digit growth, confirming the Company’s best-in-class fundamentals (pricing power and high barriers to entry), and resilience to challenging market conditions
• Coming out of the pandemic, Richemont Jewellery Maisons have been one of the clear market share winners in the sector
• The Company’s strong sales, profit and cash flows confirm the strong appeal for its Maisons and relevance for long-term growth

• Overseas investors have called for increasing the ratio of variable compensation to executive compensation. Given that foreign ownership ratios have remained high, this upward trend is expected to continue.
• Few companies use capital efficiency like ROE as KPIs for variable compensation, which is consistent with the fact that few companies set them as numerical targets in mid-term management plans.
• The role of independent directors has become more important as more companies are involving compensation committees in the compensation determination process since the 2001 amendments to the Companies Law.

Games Workshop Group’s (GAW’s) FY23 trading update indicates an improvement in underlying trading in the latter months of the period and the expected easing of cost pressures. The strength of the improvement is evident in the fact that FY23 PBT is greater than both our previous FY23 and FY24 estimates. We upgrade our FY24 PBT estimates by c 4%, which incorporates an underlying upgrade offset by a new foreign exchange headwind.