In today’s briefing:
- Swiggy IPO: Zomato’s USD 1bn Fundraise Signals Looming Quick Commerce Challenges
- Multi Bintang (MLBI IJ): Massive Inflection in Q3 FY24 with Double Digit Growth !!
- Goldwin: 50% Growth in 5 Years? Possible but Some Challenges
- If Equity Compensation Are Introduced for Employees as Is, the Gender Gap in Compensation Widens
- JAKK: 3Q Preview: More than Holiday Movie Winners; Reiterate Buy, $30 PT
- Actinver Research – ARA 3Q24: Quarterly Results in Line with Our Estimates (Quick View)
- IPAR: Prestige of Success
- GES: Snapping the Store: Going Full On for Fall; Reiterate Buy, $29 PT
Swiggy IPO: Zomato’s USD 1bn Fundraise Signals Looming Quick Commerce Challenges
- Zomato (ZOMATO IN) ‘s proposed USD 1 billion fundraise highlights several potential risks for Quick Commerce players, including Swiggy (1255298D IN) .
- Beyond heightened competition, majority foreign-owned Quick Commerce businesses including Swiggy could face regulatory hurdles if classified as multi-brand retail, limiting their foreign ownership.
- Investors may fear about Swiggy’s regulatory risks and profitability struggles in this competitive landscape, which could dampen investor enthusiasm and IPO valuation.
Multi Bintang (MLBI IJ): Massive Inflection in Q3 FY24 with Double Digit Growth !!
- Multi Bintang Indonesia (MLBI IJ) experienced a massive inflection in its revenue with 21.9%/35% revenue/net profit growth as we approach the Q4 high season.
- Earlier, parent Heineken NV (HEIA NA) had flagged in its H1 2024 report that Indonesia was experiencing double-digit growth following excise duties implemented in January 2024.
- Trading at 11.5x FY24/net cash with >8% dividend yield and historical ROCEs averaging over 80%, we see a turning point in the share price now.
Goldwin: 50% Growth in 5 Years? Possible but Some Challenges
- Goldwin has big plans for both The North Face in the Japanese and Korean markets and for its own brand globally.
- But there are worries about saturation for the former in Japan, slowing brand development, and lack of expertise in overseas markets to build its own brand.
- Goldwin has had an amazing run but can it build a global brand? If it can, it will feed into high levels of demand for Japan-tech sports brands.
If Equity Compensation Are Introduced for Employees as Is, the Gender Gap in Compensation Widens
- Unlike the transfer of personnel rights, which is resisted by management, equity compensation that can be used to retain talent is attractive to management and is likely to accelerate.
- If equity compensation plans are introduced for employees with a low ratio of female managers, the gap in compensation between men and women is expected to widen.
- The introduction of equity compensation for employees is anticipated to provide an opportunity for management “kaizen” tips to emerge from individual workplaces.
JAKK: 3Q Preview: More than Holiday Movie Winners; Reiterate Buy, $30 PT
- We are reiterating our Buy rating, $30 price target and projections for JAKKS Pacific with the company announcing 3Q24 (September) results after the close on Wednesday.
- We remain confident in our inline projections for the quarter, and believe the company, with a strong, somewhat lower-risk Holiday movie lineup in 2024, the beginning of the ramp of the Authentic Brands and The Simpsons license expansions, and the potential upside for Dog Man and the company’s own Wild Manes line launch, is well positioned to drive top and bottom line upside into 2025.
- As such, we reiterate our Buy rating and $30 price target for JAKK.
Actinver Research – ARA 3Q24: Quarterly Results in Line with Our Estimates (Quick View)
- Total revenues of P$1.9bn were in line with our estimates and increased 6% YoY.
- Housing revenues (96% of total) were up 7% due to an 8% gain in the average selling price to P$1.2 million.
- This result partially offset the 1% contraction in the housing volume during the quarter.
IPAR: Prestige of Success
- IPAR continues to demonstrate its ability to outperform with its brand portfolio of prestige fragrances. IPAR provided preliminary third quarter 2024 sales estimate of approximately $425 million.
- We believe the growth IPAR is reporting for the third quarter was the result of greater demand than retailers stocking more for the holidays.
- IPAR highlighted the growth in its top two brands, Jimmy Choo and Montblanc, as primary reasons for the sales in the quarter. Lacoste and Cavalli were an additional boost.
GES: Snapping the Store: Going Full On for Fall; Reiterate Buy, $29 PT
- We are reiterating our Buy rating, $29 price target and projections for Guess?
- after visiting stores in Long Island and the Metro New York City area.
- We believe, with the Fall fashion season in full bloom, the company has continued to raise the stakes for elevation, escalating key categories such as sweaters, outerwear and activewear, while raising the stakes for denim and focusing even more attention on accessories as a key play for Holiday events/parties.
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