Daily Brief Consumer: Tencent, Zomato, Prada S.P.A., Binggrae Co Ltd, Aspirasi Hidup Indonesia, Aeon Co Ltd, Lagardere SCA, Benson Hill , TSE Tokyo Price Index TOPIX, Guess? Inc and more

• Implied vols were lower across all sectors on the week with option volumes peaking on Friday.
• Post-Earnings vol crush helped push vols lower for key names.
• Tencent stands out with low implied vols over the past year, high liquidity and is trading almost 17% below its 52 week high.

• The December 2024 index review results for the BSE Sensex and BSE 100 Indices were announced after the close on Friday 22nd November 2024.
• On the same day, the Bombay Stock Exchange announced several new names will be added to the Futures and Options (F&O) segment resulting in multiple surprises among the index changes.
• There will be one change for BSE Sensex and six changes for BSE 100 during the December 2024 index rebal event.

• Prada S.P.A. (1913 HK) (1913 HK —US$18 billion) is a strange beast.

• It’s an Italian fashion group listed in Hong Kong, of all places. Many European and American investors ignore the name, which has caused Prada to trade at a considerable discount to its peers.

• The first Prada shop was opened in 1913 by Mario Prada, a former leather goods salesman who imported English handbags and travel accessories and sold them to the Italian elite.

• In the past week, Binggrae (005180 KS) announced that it plans to split into a holding company and an operating company in May 2025.
• As part of this company reorganization, Binggrae announced that it plans to cancel all of its treasury shares (1 million common shares, representing 10.2% of total common shares outstanding).
• We are positive on Binggrae due to cheap valuations (1.6x EV/EBITDA in 2025), steady growth in sales and profits, and 10% share cancellation. 

• Aspirasi Hidup Indonesia booked a solid set of 3Q2024 results with an upgrade to SSSG projects for FY2024 with the numbers and guidance for 20 new stores this year. 
• The company continued to expand stores more aggressively outside Java in 3Q2024 and into October and intends to increase store openings further in 2025 along with its rebranding exercise. 
• ACES will see inventories rise in 4Q2024 as it stocks up early for rebranding and upcoming festive periods. Valuations remain attractive with improving growth and productivity driven by regional expansion.

• Post-Covid, Aeon Co Ltd (8267 JP) began to deliver real profit growth but 1H2024 showed it cannot rest on its laurels. 
• While it’ll be happy not to be worrying about a takeover bid like its rival, Seven & I, it still doesn’t have a profit machine similar to Seven Eleven Japan.
• Welcia helps and so does expanding e-commerce but there is still plenty of room for cutting overhead.

• Lagardere has two core businesses: publishing and travel retail.
• Publishing business has long-term cash flow potential and growth opportunities.
• Travel retail has captive audience but faces competition from airports for margins.

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• Benson Hill’s share price decline amid no management updates raises concerns of potential buyout failure and urgent funding needs.
• Indiana Resources announced a special dividend after settling with Tanzania, with further shareholder returns expected by 2025.
• Grifols rejected Brookfield Asset Management’s buyout offer, maintaining a 22% discount between Class A and Class B shares.

• The limit is to serve on the boards of two companies concurrently in order to preview the agenda for the monthly board meetings in advance.
• There may be challenges to the effectiveness of the nominating committee of a company that nominates a candidate to serve on the board of directors of three or more companies.
• With the growing demand for female outside board members, it’s hoped that active investment managers will pay attention to the issue of concurrent board membership and make a clear statement.

• We are reiterating our Buy rating, $29 price target and projections for Guess?
• after visiting stores in the New York City metropolitan and Long Island areas.
• The company has continued to focus on Fall/Winter fashion favorites such as sweaters, outerwear and activewear in multiple looks, fabrics and cuts.