ConsumerDaily Briefs

Daily Brief Consumer: Trip.com, Trip.com Group , Fast Retailing, Trial Holdings, Adeia, Airbnb , Marriott International, Miniso, Xiaocaiyuan International Holding, Coca Cola Co and more

In today’s briefing:

  • Trip.com (9961 HK, TCOM US): 4Q23, Revenue Up by 105%, But Reached Our Last Price Target
  • Trip.com (9961 HK): Looks to Reap More Recovery Benefits
  • HK CEO & Director Dealings (23 Feb 2024): Fast Retailing, Far East Consortium, Pharmaron Beijing
  • Trial Holdings IPO: The Investment Case
  • ADEA: Adding More Licensees
  • Airbnb Inc: Increased Supply & Better Conversion Rates Can Lead To A Solid 2024? – Major Drivers
  • Marriott International: Increased Demand from Corporates and Leisure Customers Changing The Game? – Major Drivers
  • [Miniso Group (MNSO US, BUY, TP US$33) Company Update]: CNY Foot Traffic Growth Support Decent C1Q24
  • Xiaocaiyuan International Holding Pre-IPO – Strong Network Expansion and Same Store Sales Growth
  • The Coca-Cola Company: What Is The Impact Of Changing North American Market Dynamics? – Major Drivers


Trip.com (9961 HK, TCOM US): 4Q23, Revenue Up by 105%, But Reached Our Last Price Target

By Ming Lu

  • The main businesses, hotel and air ticket bookings increased by 131% YoY and 86% YoY in 4Q23.
  • The Chinese traveling market continued its recovery after the lift of the lockdown at the end of 2022.
  • The stock price is close to our last price target – Downgrade to Hold.

Trip.com (9961 HK): Looks to Reap More Recovery Benefits

By Osbert Tang, CFA

  • Trip.com Group (9961 HK) has a remarkable 4Q23 with adjusted net profit surged 437.1% YoY. Higher volume and better market efficiency have resulted in massive margin expansion.
  • Net cash has ballooned to about 15% of its share price, and this has allowed it to carry out a massive US$300m Capital Return Program in 2024.
  • Business has outperformed the industry in CNY, with domestic hotel and air business volume increased by 60% and 50% YoY. Its overseas platform also saw double-digit growth.

HK CEO & Director Dealings (23 Feb 2024): Fast Retailing, Far East Consortium, Pharmaron Beijing

By David Blennerhassett


Trial Holdings IPO: The Investment Case

By Arun George

  • Trial Holdings (5882 JP), a discount store operator in Japan, is seeking to raise US$235 million at the IPO reference price of JPY1,550 per share. Pricing on 11 March.
  • Trial aims to act as a one-stop shopping store where consumers can buy whatever they want at a great price. Trial’s basic pricing strategy is Every Day Low Price.
  • The investment case rests on steady revenue growth, industry-leading same-store sales growth, solid margin profile and cash generation.

ADEA: Adding More Licensees

By Hamed Khorsand

  • ADEA reported fourth quarter results showcasing debt reduction through free cash flow generation. ADEA had eight license signings of which two were brand new licensees
  • Reported fourth quarter results showcasing debt reduction through free cash flow generation. ADEA had eight license signings of which two were brand new licensees
  • ADEA has started to invest more in R&D, which resulted in ADEA ending 2023 with nearly 11,000 patents compared to approximately 10,000 in the year prior

Airbnb Inc: Increased Supply & Better Conversion Rates Can Lead To A Solid 2024? – Major Drivers

By Baptista Research

  • Airbnb’s Fourth Quarter earnings for 2023 revealed significant financial growth, with 99 million Nights and Experiences booked in Q4, marking Airbnb’s highest ever fourth-quarter results.
  • Revenue increased by 70% year on year to reach $2.2 billion.
  • However, the net loss for the company stood at $249 million.

Marriott International: Increased Demand from Corporates and Leisure Customers Changing The Game? – Major Drivers

By Baptista Research

  • Marriott International delivered strong results in 2023 due to robust demand for travel and an increasing portfolio of over 30 leading brands.
  • The global room revenue per available room (RevPAR) grew nearly 15%, and net rooms increased 4.7%, driving profitable growth in earnings and cash flows.
  • For the fourth quarter, global RevPAR rose over 7% year-on-year, propelled by roughly equal growth in average daily rate (ADR) and occupancy levels.

[Miniso Group (MNSO US, BUY, TP US$33) Company Update]: CNY Foot Traffic Growth Support Decent C1Q24

By Eric Wen

  • Intra-Urban mobility in major cities and foot traffic in leading shopping malls in China have demonstrated decent growth during 2024 CNY holiday period.
  • We estimate Miniso domestic store sales increased 35% yoy during CNY-holiday and 11% yoy during Jan to mid-Feb 2024. We expect Miniso total revenue to increase 26% yoy in 1Q24.
  • We maintain the stock as BUY and maintain TP at US$33/ADS.

Xiaocaiyuan International Holding Pre-IPO – Strong Network Expansion and Same Store Sales Growth

By Ethan Aw

  • Xiaocaiyuan International Holding (XCY HK) is looking to raise up to US$200m in its upcoming HK IPO.
  • Xiaocaiyuan is a Chinese home-style cuisine restaurant operator. It prices its menus’ items to achieve average spending per consumer between RMB50 and RMB70 for its dine-in customers at its restaurants. 
  • In this note, we talk about the company’s historical performance.

The Coca-Cola Company: What Is The Impact Of Changing North American Market Dynamics? – Major Drivers

By Baptista Research

  • Coca-Cola provided overall positive results despite the ongoing global challenges they faced.
  • James Quincey, Chairman and CEO, specifically highlighted their “all-weather strategy,” which allowed them to attain 8% comparable earnings per share growth, despite notable headwinds from a 7% currency impact.
  • He attributed the year’s success to the company’s strategy and improved capabilities, making Coca-Cola a more agile and efficient global organization.

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