In today’s briefing:
- Weekly Consumer Tales: India Festive Season: Hyundai Slows, Toyota Aces. First Cry Fails to Cheer
- HK-Listed Apparel & Footwear Screener: Right Stocks Listed in the Wrong Market – Attractive Yield & Rapid Expansion Outside China – Sep 2024
- JNBY Design (3306 HK): A Cash Cow
- Autodesk Inc.: Expansion into Digital Transformation Solutions & Use Of AI-ML To Drive Growth! – Major Drivers
- Elastic N.V.: An Insight Into Their Pricing Strategy & Our Revenue & Profitability Projections! – Major Drivers
- China Consumption Weekly (9 Sep 2024): Tesla, NIO, PDD, Anta, 361 Degree
- Affirm Holdings: Expanded Adoption of Wallet Partnerships & Other Major Drivers
- Nutanix Inc.: Increased Demand for Private Cloud Solutions Driving Our Optimism! – Major Drivers
- Burlington Stores Inc.: Leveraging Physical and Digital Growth Opportunities! – Major Drivers
- Brown-Forman Corporation: Can They Sustain Their Competitive Advantage With Brand Power? – Major Drivers
Weekly Consumer Tales: India Festive Season: Hyundai Slows, Toyota Aces. First Cry Fails to Cheer
- Welcome to Consumer Tales & Trends, your weekly roundup of the latest corporate developments, investment reports and sector events in the consumer industry.
- Hyundai Motor India’s August dispatch volumes were down 8% versus previous year – mostly due to sluggish demand for hatchback segment amd intense competition in the SUV segment.
- Toyota Motor (7203 JP) is on a fast track in India recording high double digit volume growth thanks mainly to successful launch of rebadged Suzuki models.
HK-Listed Apparel & Footwear Screener: Right Stocks Listed in the Wrong Market – Attractive Yield & Rapid Expansion Outside China – Sep 2024
- We compile a list of ten high-yielding/net cash or low-net debt stocks in the apparel/footwear value chain. Just because HK has become a pariah for investors, trailing dividend yields are approaching 6-20%.
- We track recent developments of these companies; for given their low valuations any incremental recoveries could spark huge share price returns.
- Crystal International (2232 HK), Stella International (1836 HK), and Yue Yuen Industrial Holdings (551 HK) stand out – they have had positive inflections in their earnings/dividend payouts and capital allocation.
JNBY Design (3306 HK): A Cash Cow
- JNBY Design Ltd (3306 HK) is successful in capturing China’s niche designer fashion segment. Its FY24 net profit surged 36.4%, despite the challenging retail market.
- Gross margin reached a record high of 67.3% in 2H24 on higher purchases from loyal members. Operating cash flow surged 70.7% YoY, affirming its status as a cash cow.
- Including special dividends, FY24 payout ratio was 95%. At 75% ordinary payout for FY25, it sits on a 10.9% yield. Net cash equals 22% of the share price.
Autodesk Inc.: Expansion into Digital Transformation Solutions & Use Of AI-ML To Drive Growth! – Major Drivers
- Autodesk, Inc. concluded its second quarter of Fiscal Year 2025 with robust results, characterized by a 13% revenue growth in constant currency, which has led to an upward revision of the full-year guidance.
- This reflects not only the success of the recent launch of their new transaction model in North America but also anticipates a similar introduction in Western Europe come September.
- 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.
Elastic N.V.: An Insight Into Their Pricing Strategy & Our Revenue & Profitability Projections! – Major Drivers
- Elastic N.V. reported an 18% year-over-year growth in total revenue, with cloud revenue experiencing a 30% increase.
- The non-GAAP operating margin was 10.7%, aligning with the company’s performance exceeding its revenue and profitability guidance.
- A key strategy highlighted was their “land, expand, and consolidate” approach, which has led to growth in customers spending over $100,000 to more than 1,370.
China Consumption Weekly (9 Sep 2024): Tesla, NIO, PDD, Anta, 361 Degree
- In August, Tesla’s shipments grew by 3% YoY, while top domestic producers’ shipments grew over 30% YoY.
- The revenues of two domestic sneaker makers, 361 Degree and Anta, increased by 19% YoY and 14% YoY in 1H24.
- In 2Q24, NIO’s deliveries and revenue increased by 144% YoY and 99% YoY, but its losses were still significant.
Affirm Holdings: Expanded Adoption of Wallet Partnerships & Other Major Drivers
- Affirm Holdings recently reported its Fourth Quarter Fiscal 2024 Earnings and the management emphasized the company’s robust performance both in terms of growth and profitability for the fiscal year.
- The discussion underlined Affirm’s management’s ability to leverage technological advancements, particularly in artificial intelligence and machine learning, to maintain control over credit outcomes, which they describe as an intentional result of their strategies.
- 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.
Nutanix Inc.: Increased Demand for Private Cloud Solutions Driving Our Optimism! – Major Drivers
- Nutanix’s fourth quarter and fiscal year 2024 earnings results mark a period of solid performance and strategic progress.
- During the fourth quarter, Nutanix exceeded its financial guidance, achieving revenue of $548 million, which represents an increase of 11% year-over-year.
- This growth was supported by substantial free cash flow generation and the acquisition of significant new customers, the highest in three years.
Burlington Stores Inc.: Leveraging Physical and Digital Growth Opportunities! – Major Drivers
- Burlington Stores, Inc. reported robust financial results for the fiscal second quarter of 2024, highlighted by significant growth in total sales and improvements in gross margin.
- The positive performance can be largely attributed to strategic store expansions and efficient supply chain management.
- The company opened 36 new stores, taking the total to 1,057 locations, and reported a 5% increase in comparable store sales, surpassing the guided range of flat to 2%.
Brown-Forman Corporation: Can They Sustain Their Competitive Advantage With Brand Power? – Major Drivers
- Brown-Forman Corporation’s first quarter fiscal year 2025 results reflect a challenging start to the year, consistent with the company’s expectations of a stronger second half.
- The globally recognized beverage company reported an 8% decline in reported net sales and a 4% decrease in organic net sales, highlighting a period of adjustment and alignment with strategic transitions and economic influences.
- 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.
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