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
- 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
- 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
- The data in this insight is collated from the “shareholding disclosure” link on the HKEx website.
- Often there is a corresponding HKEx announcement on the increase – or decrease – in the shareholding by directors. Or pledging. However, such disclosures are by no means an absolute.
- The key stocks mentioned in this regular insight are Fast Retailing (9983 JP), Hang Lung (10 HK), Far East Consortium International (35 HK), and Pharmaron Beijing (3759 HK).
Trial Holdings IPO: The Investment Case
- 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
- 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
- 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
- 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
- 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
- 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
- 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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