In today’s briefing:
- United Malt: Shareholder Vote On 12th Oct
- Quiddity Mainland Connect NORTHBOUND Flows (Week to 8Sep23) : BYD, ZTE, Zhongji Innolight, Amperex
- TUHU Car IPO: The Investment Case
- Taste Gourmet: Reaching an Inflection Point on Earnings Solid H1 FY24 Expected
- Dollar Tree Inc.: Revolutionizing The Retail Landscape With Multi-Price Models! – Major Drivers
- Burlington Stores: Expanding Its Footprint Through The Acquisition of Former Bed Bath & Beyond Leases! – Major Drivers
- Ulta Beauty Inc.: The Powerhouses Behind Their Double-Digit Comp Growth! – Major Drivers
- The Gap Inc.: A Bold Strategy To Strengthen Their Balance Sheet! – Major Drivers
- Brown-Forman Corporation: The New Distribution Business in Slovakia Could Be A Decent Revenue Contributor? – Major Drivers
United Malt: Shareholder Vote On 12th Oct
- Back on the 3 July, United Malt Group Ltd (UMG AU) and Malteries Soufflet entered into a binding agreement of A$5.00/share, by way of a Scheme.
- The Scheme Booklet has now been lodged with ASIC. UMG shareholders vote on the transaction on the 12 October, with implementation on the 15 November.
- The Offer remains subject to FIRB and other regulatory approvals. Malteries Soufflet and UMG are the second and fourth-largest maltsters in the world.
Quiddity Mainland Connect NORTHBOUND Flows (Week to 8Sep23) : BYD, ZTE, Zhongji Innolight, Amperex
- This is the brand spanking new Quiddity Mainland Connect NORTHBOUND Monitor. We work off the same presentation as the A/H Premium Monitor and HK Connect SOUTHBOUND Monitor.
- The data on liquid names is presented for 5 days and four weeks and anything seen can be ranked in tables or selected and charted (names, sectors, outperformance, etc).
- We like the nifty interactive tables and charts. We welcome feedback on how to make it more useful going forward.
TUHU Car IPO: The Investment Case
- Tuhu Car (2007986D HK), a leading integrated online and offline platform for automotive service in China, is set to open books for its US$300 million IPO.
- Among independent aftermarket (IAM) stores in China, Tuhu ranked first in terms of both number of stores as of 31 December 2022 and annual automotive service revenue in 2022.
- The investment case rests on the return to growth, improving gross margin, a shift to profitability and a return to cash generation.
Taste Gourmet: Reaching an Inflection Point on Earnings Solid H1 FY24 Expected
- With 46 restaurants in HK (up 35% YoY) and the end of dining restrictions, we estimate an inflection point in earnings for Q2 FY24 for Taste Gourmet (8371 HK)
- We estimate revenues/earnings up 45%/40% YoY for Q2 2024 ( to be reported in November) and that the company declares a semi-annual dividend of around 5.5-6 cents (8% annualized).
- With a solid base for H2 2024, the stock trades at 8.5x/5.9x PE FY23/24e and a 10% FY24e dividend yield with 23% of the market cap in cash.
Dollar Tree Inc.: Revolutionizing The Retail Landscape With Multi-Price Models! – Major Drivers
- Dollar Tree delivered a solid result and managed an all-around beat in the last quarter.
- For the quarter, Dollar Tree produced a combined increase in sales of 8.2% to $7.3 billion, 6.9% enterprise comp growth, and operating income of $287.8 million, resulting in earnings per share of $0.91.
- In the Dollar Tree sector, with a slight offset from average ticket, their 7.8% comp was driven by 9.6% increased visitation.
Burlington Stores: Expanding Its Footprint Through The Acquisition of Former Bed Bath & Beyond Leases! – Major Drivers
- Burlington Stores managed to exceed the revenue expectations and the earnings expectations of Wall Street.
- Comparable store sales increased by 4%, while overall sales increased by 9%.
- This was caused by a 130 basis point drop in freight costs and a 150 basis point increase in merchandise margin.
Ulta Beauty Inc.: The Powerhouses Behind Their Double-Digit Comp Growth! – Major Drivers
- Ulta Beauty surpassed the revenue and earnings expectations of Wall Street.
- For the quarter, all major categories produced comp growth.
- The quarter saw double-digit growth in both prestige and mass skin care.
The Gap Inc.: A Bold Strategy To Strengthen Their Balance Sheet! – Major Drivers
- The Gap, Inc. delivered a mixed result in the quarter, with revenues below expectations but surpassed the analyst consensus regarding earnings.
- The company continued to enhance its cash flows and strengthen its balance sheet by reducing inventory by 29% year over year, generating over $300 million in free cash flow.
- Second quarter sales were down in the mid- to high single digits, with net sales of $3.5 billion, down 8% from last year.
Brown-Forman Corporation: The New Distribution Business in Slovakia Could Be A Decent Revenue Contributor? – Major Drivers
- The company reported net sales growth climbed by 3%, with organic net sales growth up by 2%.
- Jack Daniel’s Tennessee Whiskey, Jack Daniel’s Tennessee Apple, and El Jimador all had continued increases in the quarter, which fueled organic net sales growth.
- Jack Daniel’s Tennessee Apple increased organic net sales by more than half.
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