Daily Brief Equity Bottom-Up: Alibaba and more

• Alibaba Group’s office messaging and meeting app DingTalk is allowing users of Tencent Holdings’ rival social media app WeChat to directly join any meeting initiated on DingTalk without first registering.
• DingTalk users can now share a meeting link with WeChat users, who can enter the meeting within WeChat.
• Previously, DingTalk required participants to download its meeting app and register.

• Recent RBI and SEBI actions unveil irregularities in JM Financial (JM IN) Products IPO financing, exposing risks in NBFC-led subscriptions.
• Ensuring market integrity and investor protection, regulatory scrutiny highlights governance lapses, urging transparency and accountability.
• Prompts investor caution, demanding rigorous scrutiny of financial intermediaries, and reinforcing the need for robust regulatory oversight.

• Miniso report C4Q23 revenue in-line/7.9% vs. our estimate/consensus, non-GAAP NI is 5.1%/10.5% higher than our estimate/consensus on strong overseas sales from North and Latin Americas. 
• Company guided for soft operating margin thanks to robust new store openings, which we believe to be accretive to earnings in the long run
• We maintain the stock as BUY and but cut TP by US$2 to US$31/ADS

• A&D Holon Holdings is a Japanese precision instrument company specializing in industrial measuring, medical equipment, and semiconductor production
• The company’s semiconductor division is driving high growth and profitability, with expected earnings growth of around 50% over the next two years
• Despite strong prospects, A&D Holon Holdings is significantly undervalued, trading at low multiples on FY Mar-2024 estimates

This content is sourced through publicly available sources and has been machine generated. Information displayed is for general informational purposes only. This article was originally published 3 months ago on Value Investors Club.

• Beenos Inc (3328 JP) operates cross-border e-commerce websites that allow mainly individual users to buy and sell goods both in Japan and internationally over the Internet.
• In FY09/23, BEENOS reported full-year consolidated revenue of JPY32.5bn, operating profit of JPY4.5bn, recurring profit of JPY4.1bn, and a net income attributable to owners of the parent of JPY2.2bn.
• BEENOS Inc. has announced changes in its consolidated subsidiaries (share transfer).

• In the previous 4Q follow-up report, we examined “Copilot NAVI,” a service released by JBS in November, which includes videos and summary materials as a guide for enterprise users, for Microsoft 365 Copilot, the AI tool embedded in Microsoft 365 applications, to bring efficient answers to users’ instructions and questions through a chat interface (which can be a daunting challenge).
• JBS followed up in December with interactive workshops to experience Microsoft 365 Copilot before deployment.

•  In this report, we examine JBS enterprise cloud security initiatives, which are a top priority for cloud IT systems managers.

• In 4Q23, we believe total revenue will grow by 20% YoY and MT will have the fourth profitable quarter.
• We believe Douyin will not threaten MT in the long run according to other competitors’ failure.
• We believe EPS will reach RMB0.35 in 4Q23 and RMB2.23 in 2023.

• Pca Corp (9629 JP) develops and sells corporate accounting software and other business systems for small and medium-sized companies.
• Full-Year FY03/23 revenue was JPY13.0bn (-3.0% YoY) due to lower replacement demand for the PCA X series of products, support for which ended in December 2021.
• PCA Corporation has announced changes to its dividend policy and revisions to its dividend forecast.

• We are reiterating our Buy rating and $41 price target for Build-a-Bear, slightly raising our FY24 EPS and rolling out FY25 projections after the company reported basically in-line 4QFY23 (January) results and initiated a quarterly dividend program, with an initial quarterly payout of $0.20 per share.
• We believe Build-A-Bear remains highly focused on shareholder value and the company is poised to register solid returns and upside as their experiential offerings continue to expand and resonate with their growing customer base; further, with net cash per share of over $3.10 (and no debt), a dividend yield of 2.7% and trading under 4.5X our FY25 EBITDA, we view the risk/reward in BBW as compelling, and we reiterate our Buy raring and $41 price target.

• AS ONE Corporation (7476 JP) is a specialist trading company that uses a business model focused on catalog sales.
• In FY03/23, sales were JPY91.4bn (+5.1% YoY), operating profit was JPY11.4bn (+22.0% YoY), recurring profit was JPY11.6bn (+21.6% YoY), and net income was JPY8.1bn (+12.6%YoY).
• AS ONE Corporation announced the acquisition of treasury shares via after-hours trading (ToSTNeT-3) and retirement of the treasury shares.