Daily Brief Equity Bottom-Up: Pop Mart (9992 HK):  Accelerating Momentum Internationally; Raising My Estimates and more

• In 1Q24, Pop Mart International Group L (9992 HK)‘s international sales grew around 250% yoy, and made up around one quarter of sales (vs. 17% of sales in 2023). 
• I now expect 39% sales growth in 2024, driven by 140% yoy growth in the international business and 18% growth in domestic China business. 
• I further expect a 50% yoy growth in net profit growth in 2024 driven by a 0.8ppt increase in gross margin and 0.5ppt in operating leverage. 

• Gelsinger excited for AI PC breakthrough at Computex 2024, plans Intel’s 40th anniversary event in Taiwan next year.
• MediaTek unveils AI and wireless advancements at Computex 2024, demonstrating commitment to technology innovation.
• Nvidia CEO predicts rise of robots in the future; Taiwan’s LEO satellite program delayed by funding and tech transfer issues.

• Accounting fraud costs the global economy at least US$1 trillion each year in losses to investors, suppliers and consumers
• Detecting accounting fraud early gives investors valuable intel to rethink certain stock or bond holdings.
• Transparently.AI’s AI-powered solution is highly accurate in measuring and detecting accounting manipulation and fraud.

• The market’s assumption of no special dividends in Chow Tai Fook Jewellery (1929 HK)‘s upcoming FY24 result is conservative, and this does not fit into its usual pattern. 
• Should it pay special DPS, the dividend yield may reach an attractive 10.7%. With its net cash position, CTF can financially maintain the average 135.6% payout ratio. 
• A return to its historical average dividend yield of 7.4% means that CTF’s share price will need to go up by 45% from the current level.

• Tosei achieved record revenue and profit, driven by robust growth in its fund management business and a balanced portfolio of stable and sales-driven operations.
• Activist investor Dalton acquired a 5.02% stake, highlighting concerns over recent governance decisions and potential Board independence dilution due to the Nagoya Railroad alliance.
• Dalton’s involvement ensures heightened scrutiny, promising better governance, and potentially favorable outcomes for minority shareholders amid Tosei’s continued strong business performance.

• Short term overhang from expanded share count and selling from unwilling participants
• The copper supply and demand story is intact and the fundamentals of the company remain strong
• Parent’s uptake of the rights is positive but the stock will take time to build a base for the next leg up 

• Results underline high earnings visibility in Profit-Generating Funeral Services – Q1-4 FY3/24 results were in line with guidance, with positive high growth momentum being sustained at Profit- Generating Funeral Services.
• The legacy businesses (Information and HR) missed forecasts, highlighting turnaround challenges.
• However, the new business Asset Consulting has started strongly as a high-margin activity, and the outlook is positive. 

• Carnival Corporation is the world’s largest cruise ship operator with a large fleet and significant market share
• The company was severely impacted by the COVID-19 pandemic, halting service for 15 months and taking on substantial debt
• Since resuming cruises in July 2021, Carnival has seen a rebound in revenues driven by strong demand for post-COVID travel, but still faces challenges with cashflow and debt sustainability

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.

• RaaS Research Group has published a flash comment on advanced materials manufacturing group Amaero International (ASX:3DA) following its announcement that the first atomiser has been commissioned at its Tennessee facility ahead of schedule.
• The commissioning is an important step toward the production of C103 and specialty alloy powder at the facility and allows the company to move to the next step of achieving qualification and, ultimately, commercialisation.
• Amaero’s announcement underpins our confidence in the production timing we have applied to our estimates.

• On May 28, 2024, MediciNova, Inc. (MNOV) announced that two abstracts regarding MN-001 (tipelukast) and MN-002 were presented as posters at the 92nd European Atherosclerosis Society (EAS) 2024 Congress.
• The poster on MN-001 discussed the objectives and design of the ongoing Phase 2 clinical trial enrolling patients with Type 2 diabetes, dyslipidemia, and NAFLD, which has now enrolled a total of 33 patients.
• The other presentation regarded the mechanism of action of MN-001/MN-002 in lipid metabolism.