In today’s briefing:
- The Wendy’s Company: Initiation Of Coverage – Expansion Of Footprint In UK & US
- Mitra Adiperkasa (MAPI IJ) – Pushing Retail Boundaries
- Drivers of Corporate Governance Improvement Are the Percentage of Foreign Shareholdings
- PDD Holdings: 6 Growth Factors & 3 Major Challenges In Front Of This Chinese Giant! – Financial Forecasts
- Acushnet Holdings Corp.: Initiation Of Coverage – 3 Biggest Challenges In Its Path For Growth! – Major Drivers
- M.D.C. Holdings: Initiation Of Coverage – 4 Pivotal Factors Driving Their Performance! – Financial Forecasts
- Lululemon Athletica Inc.: A Tale Of Store Expansion & International Growth! – Major Drivers
- General Mills Inc.: Are Its Portfolio Reshaping & Acquisition Strategy Paying Off? – Major Drivers
- RH (Restoration Hardware): Initiation Of Coverage – What Is Their Biggest Competitive Advantage? – 5 Major Growth Drivers
- Five Below Inc.: Initiation Of Coverage – Accelerated Real Estate & Streamlining Store Approvals! – Major Drivers
The Wendy’s Company: Initiation Of Coverage – Expansion Of Footprint In UK & US
- This is our first report on Wendy’s Company.
- In Q4, Wendy’s global systemwide sales grew over 3%, supported by global same-restaurant sales growth and the benefit of global net unit growth.
- U.S. company-operated restaurant sales grew due to higher average check figures driven by cumulative pricing of around 4.5%.
Mitra Adiperkasa (MAPI IJ) – Pushing Retail Boundaries
- Mitra Adiperkasa (MAPI IJ) finished the year with strong sales growth of +17.4% YoY in 4Q2023 with solid growth across all segments and improving margins.
- The company continues to add to its 150-strong brand portfolio in Indonesia, as well as extending its reach further in Southeast Asia and growing its omnichannel capabilities.
- MAPI remains our top retail pick in Indonesia with its focus on the resilient upper-middle segment in Indonesia and increasing regional exposure. Valuations remain attractive at 12.5x FY2024E PER.
Drivers of Corporate Governance Improvement Are the Percentage of Foreign Shareholdings
- Overseas investors tend to invest in companies with large market capitalization and high profitability, resulting in higher stock price valuations. They also tend to avoid investing in listed subsidiaries.
- Since companies with over 20% foreign ownership show superior board practices, it’s reasonable to assume that board practices improve as foreign ownership increases and the influence of overseas investors increases.
- Companies with more than 30% foreign ownership have many items that generally show excellent values in Key Actions. However, all companies still face challenges in cash allocation.
PDD Holdings: 6 Growth Factors & 3 Major Challenges In Front Of This Chinese Giant! – Financial Forecasts
- Pinduoduo Holdings, Inc. closed its fiscal year of 2023 in a positive trajectory.
- The company reported sustained growth in consumer engagement on its platform in its fourth quarter results.
- High-quality development remains a key strategy for the company.
Acushnet Holdings Corp.: Initiation Of Coverage – 3 Biggest Challenges In Its Path For Growth! – Major Drivers
- This is our first report on golf distributor, Acushnet Holdings Corp.
- The company’s 2023 performance has been buoyed by the growth of its Titleist golf balls, increased 13%, led by strong demand for its new Pro V1 models; golf ball sales increased in all regions with the U.S. and EMEA markets leading the way.
- Despite concerns about the EMEA region, golf balls and clubs were vibrant, affirming golfers’ trust in the quality, consistency, and game performance of the Titleist brand.
M.D.C. Holdings: Initiation Of Coverage – 4 Pivotal Factors Driving Their Performance! – Financial Forecasts
- This is our first report on M.D.C Holdings, a major American construction company specialising in property development and mortgage services.
- The company reported strong profitability for its third quarter earnings call in 2023, with a net income of $107 million ($1.40 per diluted share).
- Despite the rise in mortgage rates, M.D.C. witnessed a robust demand trend, mainly attributable to the company’s financial incentives and lack of existing homes supply that drew more buyers to the new home market.
Lululemon Athletica Inc.: A Tale Of Store Expansion & International Growth! – Major Drivers
- The Q4 2023 earnings of Lululemon Athletica Inc. highlighted positive operational results with revenue increases across most regions.
- Total revenue was reported to have increased by 16% for the quarter.
- In the Americas, the increase was 9%, while Mainland China saw a rather prominent rise of 78%.
General Mills Inc.: Are Its Portfolio Reshaping & Acquisition Strategy Paying Off? – Major Drivers
- General Mills reported encouraging third quarter results, especially with the underlying performance improvement in North America retail and the pet segment.
- CEO Jeff Harmening forecasts that the fourth quarter sales would look similar to the third quarter in terms of annual performance.
- However, there is uncertainty due to innumerable external variables that could influence the outcome.Baptista Research looks to evaluate the different factors that could influence the company’s price in the near future and attempts to carry out an independent valuation of the company using a Discounted Cash Flow (DCF) methodology.
RH (Restoration Hardware): Initiation Of Coverage – What Is Their Biggest Competitive Advantage? – 5 Major Growth Drivers
- Restoration Hardware (RH) has consistently demonstrated its resilience in the face of various market challenges.
- RH’s Q3 2023 earnings call reiterated this persistence as the company navigated through higher-than anticipated expenses and a challenging housing market, reflecting on both the areas of strength and weakness in the company’s financial performance.
- One of the highlights was that the company’s net revenues for the quarter stood at $751 million, which was at the midpoint of its guidance.
Five Below Inc.: Initiation Of Coverage – Accelerated Real Estate & Streamlining Store Approvals! – Major Drivers
- Despite being impacted by unfavorable weather during January, Five Below’s sales ended within the guidance and comparable sales were slightly more than their expected figures.
- The company’s growth was mainly driven by the increasing popularity of Five Beyond format stores and the upward trend of customers embracing the value-for-money concept.
- The total fourth quarter sales were $1.34 billion, witnessing a growth of over 19%, and the comparable sales increased by 3.1%.
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