Daily Brief Consumer: Tata Motors Ltd, Ola Electric, IDP Education, Zomato, Yihai Int’L Holding, Sheng Siong, TSE Tokyo Price Index TOPIX, Vinfast, Borussia Dortmund GmbH & Co KG, Culp Inc and more

• Tata Motors restructures, separating passenger and commercial vehicle businesses into distinct entities to unlock value in electric vehicles and Jaguar Land Rover unit.
• Streamlines operations, enhances shareholder value, and capitalizes on growth opportunities in passenger and commercial vehicle sectors.
• Offers investors specialized entities, unlocking hidden value, showcasing proactive adaptation to market changes, and positioning for sustainable growth in the automotive industry.

• Ola Electric is looking to raise about US$1bn in its upcoming India IPO.
• Ola Electric Mobility is a vertically integrated pure EV player in India with manufacturing capabilities for EVs and EV components, including cells.
• In our previous note we have looked at the company’s past performance. In this note, we will undertake a peer comparison.

• With the review period complete, there are 3 stocks that are close to the deletion zone and could be removed from the index at the March rebalance.
• Even if there are no constituent changes, capping changes will lead to one-way turnover of 4.4% and a one-way trade of A$97m.
• There are 9 stocks with over A$5m to trade from passive trackers but the impact on the stocks is not very high.

• AntFin is looking to raise around US$350m by selling around 2% of Zomato (ZOMATO IN).
• Ant Group had earlier sold some of its stake in Nov 2023 and Ant just came out of lockup from the previous selldown a few days ago.
• In this note, we talk about the deal dynamics and run the deal through our ECM framework.

• Yesterday, Haidilao International Holding (6862 HK), the largest hotpot chain in China, announced that the company will introduce franchise model as a new way to support growth. 
• Haidilao’s move into franchising should directly benefit Yihai Int’L Holding (1579 HK), the affiliate company that supplies hotpot condiments to Haidilao. 
• Yihai is trading at an inexpensive 12x 2024 PE compared to a historical average of 32x since listing.

• Despite margin pressure, Sheng Siong (SSG SP) delivered resilient earnings for FY23. Revenue was up 2.3% YoY, and profits were up 0.3% YoY. 
• The company guided it had opened two additional stores at the start of 2024 (2023 end: 69), and six more locations were up for tender in 2024. 
• The stock trades at 17x FY23, with a 4% dividend yield and 15% of the market cap in cash. Margin pressure due to inflation will be a headwind in FY24. 

• TSE wants to make disclosure of financial statements in English mandatory, which many prime market companies do, and to require disclosure in both Japanese and English on the same day.
• The focus will be on expanding to English-language disclosure of documents such as annual securities reports and corporate governance reports, which are in high demand by overseas investors.
• Inadequate English-language disclosure has directly affected listed companies by preventing IR meetings from deepening dialogue and negatively impacting investment decisions.

• VinFast is a fast-growing electric vehicle manufacturer based in Vietnam, founded in 2017 by Vingroup and billionaire Pham Nhat Vuong
• The company has plans for global expansion and aims to have vehicles in 50 markets by the end of 2024
• VinFast has a $16 billion market cap and recently completed a SPAC merger that raised $239 million, but its financial ties to Vingroup raise concerns about its independence

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.

Borussia Dortmund’s Q224 results reflect the positive effects of a more normal football season versus the disruption from the FIFA World Cup in the comparative Q223 period. The reiterated financial guidance for FY24 looks well underpinned given the phasing of games and with the excitement of the final stages of the Champions League to come. The share price continues to look very attractive versus our slightly adjusted sum-of-the-parts valuation of €10.40/share and its own historical multiples.

• Culp reports 3QFY24 results after the close on Wednesday, March 6. An investor conference call is scheduled for 11:00 am ET on Thursday, March 7.
• Culp revised its guidance for the second half of 2023 in January in conjunction with the WTR Furniture/Furnishings Virtual Conference.
• Recovery in the mattress segment had been slower than previously expected.