Daily Brief Consumer: Vesync, Coupang , Yum! Brands Inc, Macy’s Inc, Tripadvisor Inc, Hershey Co/The, Xiaocaiyuan International Holding, Corn Active Contract, Walgreens Boots Alliance, Ingredion Inc and more

• Vesync (2148 HK) is in a trading halt “pending the release of an announcement pursuant to the Code on Takeovers and Mergers which contains inside information of the Company.” 
• The Yang family is likely seeking to privatise Vesync through a Cayman scheme. The shares are trading 24% below the HK$5.52 IPO price.
• We use several methods to triangulate the likely offer price, which suggests a price range of HK$5.09-10.30 per share, with an average of HK$6.71, a 59.8% premium to last close.

• Chevron Corporation’s third-quarter 2024 financial results demonstrated a mixture of positive operational achievements and financial headwinds.
• The company reported earnings of $4.5 billion or $2.48 per share, with adjusted earnings similarly at $4.5 billion or $2.51 per share.
• Despite these substantial earnings, this marked a decrease from the prior year largely due to lower liquids realizations and increased depreciation, depletion, and amortization (DD&A), particularly at the Tengizchevroil (TCO) project in Kazakhstan.

• Yum!
• Brands’ recent earnings provide a snapshot of both strengths and challenges faced by the company in the third quarter of its 2024 fiscal year.
• The company demonstrated resilience through its geographic and brand diversification, although certain macroeconomic and geopolitical headwinds impacted its performance globally.

• Macy’s Inc. has been in the spotlight recently as Barington Capital disclosed a stake in the iconic department store chain, pushing for a series of strategic changes aimed at enhancing shareholder value.
• This follows a history of activist investor interest in Macy’s, reflecting its ongoing struggles in a challenging retail environment.
• While Macy’s management has reaffirmed its commitment to its “A Bold New Chapter” turnaround plan, Barington’s proposals focus on optimizing real estate assets, cutting capital expenditures, and exploring strategic alternatives for its premium brands, Bloomingdale’s and Bluemercury.

• Tripadvisor’s third-quarter 2024 results present a mixed picture of the company’s performance and strategic direction.
• On a consolidated basis, revenue was $532 million, essentially flat compared to the previous year.
• This stagnation in revenue reflects headwinds in Tripadvisor’s legacy hotel meta offering, which declined 17% year-over-year in branded hotels revenue.

• The confectionery industry was abuzz recently as news broke that Mondelez International (MDLZ) had approached Hershey (HSY) about a potential acquisition.
• Hershey’s stock surged by 14%, reflecting investors’ optimism about the possibility of a $50 billion industry giant emerging.
• While neither company confirmed the rumors, the timing is intriguing.

• The financial data for 2024 has already shown investors weak growth signal.After IPO, Xiaocaiyuan may face stricter scrutiny from investors and the market in terms of its sustainable performance growth.
• It’s not easy for Xiaocaiyuan to find new growth points. Catering companies commonly face problems such as performance fluctuations and uncertain profitability, which has left their share price underperforming.
• Post investment valuation has already reached RMB10 billion, which far exceeds the market value of A-share peers. Due to concerns on the outlook, valuation performance after IPO could be lower-than-expected.

• India’s ethanol policy is driving increasing corn demand both locally and for imports
• India’s corn production is estimated to be around 38 million for the next year
• India primarily imports non-GMO corn from Myanmar and Ukraine for their ethanol industry, facing challenges in meeting the demand due to feedstock tightness and high import duties

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• Walgreens Boots Alliance (WBA), a well-known retail pharmacy giant, has been making headlines due to potential buyout discussions with Sycamore Partners, a private equity firm.
• Walgreens’ shares surged after reports surfaced about these ongoing talks.
• This comes amid a challenging business environment marked by margin pressures from pharmacy benefit managers (PBMs), store closures, and rising operating costs.

• Ingredion Incorporated’s third-quarter financial performance in 2024 highlights several key developments, showcasing both strengths and challenges that the company faces.
• The company achieved a milestone with a 29% increase in adjusted operating income, marking this quarter as the best third-quarter performance in its history.
• This growth was largely attributed to double-digit operating income growth across all three segments, driven by operational excellence and strategic contract management, despite ongoing inflationary pressures.