EVENTS:   The Roaring 2020s or a Rerun of the 1970s? - Edward Yardeni/Yardeni Research - 24 Mar 26   Best Equity Short Ideas Conference Call 13 - Thomas Chanos/Badger Consultants & Dr. Aaron Fletcher/Bios Research & Jonathan Telgener/Channel Dynamics & Ed Steele/Iron Blue Financials & John Zolidis/Quo Vadis Capital & Mark Hiley/The Analyst - 26 Mar 26     ROADSHOWS: Chinese Equity Ideas & Channel Checks Across 50 sub-sectors - Don Ma /Horizon Insights   •   London   23 - 27 Mar 26       Long Short European Equity Research - Harry Grist /The Analyst   •   New York   26 Mar 26       Fundamental US Healthcare Short Ideas - Dr Elliot Favus /Favus Institutional Research   •   London   27 - 27 Mar 26      
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Aequitas Research

Looking to raise US$375m in its upcoming IPO - TH operates a network of retail stores in Japan that offer one-stop shopping under its EDLP model. On the back of store addition (added 40 stores FY19-1H23; plans to add >20 more each year from FY24 onwards) and strong SSSG, FY22 sales were up 12.4% Y/Y, while 1H23 sales were up 10.9% Y/Y. However, the company’s net profit margin remains wafer thin at just 1%. In addition, TH's focus on low prices might make it difficult for it to pass on some of the recent price increases in food items. Finally, there are a lot of small shareholders who will still own ~16% of the company. Post lock up (180 days) they may well look to sell more shares.

Edition: 156

- 17 March, 2023