Daily Brief Equity Bottom-Up: PT Avia Avian (AVIA IJ) – A More Glossy Future and more

• Avia Avian (AVIA IJ) is Indonesia’s largest paint manufacturer with a strong track record, selling a wide range of architectural solutions products, with a countrywide distribution network. 
• The company continues to add to its product portfolio by adding more affordable products to cater for consumers trading down due to inflationary pressures depressing disposable incomes. 
• Avia Avian continues to add to its distribution network and has introduced express delivery that allows retailers to take more products but less inventory. Valuations are attractive with supportive dividends.

• We expect PDD to report the highest growth in topline for 4Q23 over last three years. In particular, we believe its bottom line will beat by wide margin.
• But easy days are gone for PDD’s domestic e-commerce business and high base will kick in from 1Q24, resulting in tough comps, notable deceleration and potentially short-term share price volatility.
• We see 20% upside to current PDD valuation by assigning 20xPE to our US$12 billion adjusted net profit estimate for 2024.

• Honestly, I’m stunned I’m writing this. I did my research on Zoetis during June, July and August, and my conclusion seemed, funnily, conclusive.
• My suspicion was that Zoetis was as close to being a truly durable company as possible.
• Even though the object of this article does not claim otherwise, it does indeed reveal something I completely overlooked. My conclusion was ultimately drawn from the following:

• After forecasting record sales for this year, Asics now wants to become the leading performance running brand in Japan, Europe and the US by 2026.
• To achieve this, Asics has invested in buying up many of the leading race platforms around the world to harvest data and link its brand to serious running events.
• The sports firm could also see significant growth for the Onitsuka Tiger brand, particularly across Asia.

Key points (machine generated)

• Herbalife’s international business is seeing an increase in volume trends, which is expected to result in a return to top-line growth in the current quarter.
• Investors are mainly focused on the 20% of revenue generated from the US market, but there is significant growth potential in the other 80% of the company’s international operations.
• Despite the performance of the US market, Herbalife is projected to earn more than $3.00 per share this year and $4.00 per share next year.

This article is sourced from an online content aggregator through publicly available sources and is displayed below for general informational purposes only. This article was originally published 3 months ago on Value Investors Club.

Key points (machine generated)

• Ryanair Holdings is the largest and best capitalized airline in Europe with a low-cost business model.
• Despite being in an industry known for destroying capital, Ryanair has been able to achieve attractive returns on capital and successful growth.
• The author believes Ryanair is a profitable investment option, but recommends readers to conduct their own research before making any investment decisions.

This article is sourced from an online content aggregator through publicly available sources and is displayed below for general informational purposes only. This article was originally published 3 months ago on Value Investors Club.

• The WTO has forecasted a rise in global trade volume in 2024, especially for business cycle related goods.
• In Singapore, the 10 most traded stocks of the Sector have averaged 5.8% gains while booking S$25 million of combined net institutional inflow.
• Among Singapore’s 10 most traded Transportation stocks, the three strongest performing stocks over the past fortnight included COSCO Shipping Singapore, Chasen and Samudera Shipping, averaging 16.6% gains, with all three notching up higher trading turnover levels compared to 2023 levels.

Key points (machine generated)

• E2open provides a comprehensive supply chain management platform, offering solutions for planning, execution, and procurement, making it a major player in the industry.
• E2open has a large customer base and long average tenure, indicating the trust and reliability of their services.
• The vast amount of data gathered from partners enhances E2open’s AI/ML capabilities, allowing for more accurate analysis and forecasting, positioning the company well to meet ongoing demand for efficient supply chain management solutions.

This article is sourced from an online content aggregator through publicly available sources and is displayed below for general informational purposes only. This article was originally published 3 months ago on Value Investors Club.

Key points (machine generated)

• The deal does not require regulatory approvals from Israel, increasing the chances of successful completion.
• The Middle East situation is unlikely to have a significant impact on the deal, as NGMS’s assets and value proposition remain stable.
• The deal offers an attractive spread and potential for a low-risk profit opportunity.

This article is sourced from an online content aggregator through publicly available sources and is displayed below for general informational purposes only. This article was originally published 3 months ago on Value Investors Club.

• Due to centralized procurement and anti-corruption campaign in 23H2, negative YoY revenue growth in 2023 seems to be inevitable. We are not optimistic about Weigao’s performance turnaround in 2024.
• After new policy strictly prohibiting borrowing to purchase medical equipment in public hospitals was released, the investment logic of medical device sector changes, which would negatively affect Weigao’s outlook.
• Weigao feels like “living off its past gains”.Current valuation is reasonable not undervalued. There’s no need to rush to long this stock when downward trend in share price hasn’t reversed.