Daily Brief Equity Bottom-Up: Smartkarma Corporate Webinar | Miniso: Leveraging China’s Manufacturing Capacity for the Global Market and more

For our next Corporate Webinar, we are glad to welcome Miniso Group Holding Limited’s Investor Relation Specialist, Ms. Allis-Yueling Chen. 

In the upcoming webinar, Allis will share a short company presentation after which, she will engage in a fireside chat with Smartkarma Insight Provider, Eric Wen. The Corporate Webinar will include a live Q&A session.

The Corporate Webinar will be hosted on Thursday, 20 June 2024, 16:00 SGT.

About Miniso Group Holding Limited

Miniso Group Holding Limited is a global value retailer offering a variety of trendy lifestyle products featuring IP design. Since Miniso Group opened its first store in China in 2013, they have successfully incubated two brands, “MINISO” and “TOP TOY”. The flagship brand “MINISO” is a globally recognized retail brand and have established a store network worldwide of 6,630 stores in more than 200 countries. The flagship brand “MINISO” offers a frequently-refreshed assortment of lifestyle products covering diverse consumer needs, and consumers are attracted to their products’ trendiness, creativeness, high quality and affordability.

• Firms that split their shares show an avg. return of +25.4% one year after split. That’s more than 2x the average return of the S&P 500 during those periods. 
• Critically, returns post stock splits are mainly seen from announcement to actual split date. Mega caps have shown 9.3% absolute returns 12 months post split. Be cautious of misleading averages.
• On relative terms (v/s S&P500) price returns were down 6.3% 12-months after stock splits. All splits generated negative returns except for Tesla in 2020.

• Patel Engineering (PEC IN) ‘s large order book, strategic sectors focus, and successful debt reduction through QIP and restructuring.
• Strong financial resilience, projected revenue growth, and robust order pipeline signal promising future prospects.
• Poised for growth strong order pipeline and increased government focus on Infrastructure, Hydro Power segment and Irrigation segment.

• While Marui’s credit card business now has in excess of ¥4 trillion in GTVs, its shopping buildings are also doing outperforming the mall sector.
• Sales for all 22 buildings rose 14.5% last year but as much as 24% at some buildings.
• This is the result of new tenants, more services and better marketing based on vast in-house data sources. This data-mining capability will get better and is unique to Marui.

• With ORG offering a 4.9% higher price and securing Zhang Wei’s acceptance, the ball is now back in Baowu’s hands. Good reasons exist for Baowu to raise its offer price. 
• Baowu’s subsidiary Shanghai Baosteel Packaging-A (601968 CH) needs CPMC Holdings (906 HK) more than ORG, given its smaller market share and weaker profitability.
• At ORG’s offer price, CPMC’s PERs for FY24 and FY25 of 15.4x and 14.2x are cheaper than Baosteel Packaging’s 22x and 18.7x. This gives additional justifications for a higher offer. 

• Independent Director’s resignation highlights the lack of strong corporate governance practices within Suzlon. 
• Suzlon Energy’s response to the outgoing director’s concerns demonstrates a willingness to address issues and make necessary changes to enhance corporate governance.
• Though it does not raise concerns on any financial irregularities and legal violation but resolution of issues remains a key event to watch for.

• Concord Biotech Ltd (CONCORDB IN) reported 19% revenue growth in FY24. EBITDA and PAT grew at a faster pace of 26% and 28%, YoY, respectively.  
• With focus on deeper market penetration, acquiring new customers, and introducing new products in niche categories, Concord is well-positioned for 25% revenue CAGR in 3–5 years.
• Despite a huge run-up from the IPO price, Concord shares are trading at forward P/E of 38.9x, which is lower than peers.

• Regenerative medicine remains an extremely exciting area of healthcare with vast investment potential.
• In spite of the usual setbacks in valuation and strategy, the sub-sector has pivoted and the market remains innovative and attracts investment capital.
• Rather than replace entire tissues, which is a complex activity, we believe the immediate future for stem cells is more likely to be in the successful stimulation of the bodies on repair mechanisms.

• AViC upwardly revised its full-year FY24/9 earnings forecast at the time of its 1H earnings announcement, demonstrating renewed and accelerated growth after recovering from the temporary slowdown in growth caused by business conditions and funding difficulties among startups and other emerging companies in FY23/9.
• While many of its competitors are showing sluggish business performance, the Company has been able to pursue growth on its own by committing to improving both client advertising efficiency and in-house productivity through meticulous and data-driven business operations as well as executing its fast-paced Plan-Do-Check-Act (PDCA) cycle.
• Meanwhile, its share price has not risen in line with the boost in EPS, with the latest P/E ratio hovering around 20x based on the revised earnings forecast.

• The Jetstream # 1 appraisal well has been tested at a rate of up to 0.8 mmcf/d with helium concentration of 8.7%-14.5%.
• The flow rate initially reached 0.15 mmcf/d with flowing tubing head pressure of 34 psi. The bottom hole pressure was 162 psi.
• A compressor was then installed at the well head to reduce the flowing tubing head pressure to 20 psi, thereby increasing the difference between the flowing pressure and the reservoir pressure.