CitiThe_Global_Pot_Thursday_30_May_2024The_Global_Pot

Summary of Key Points from Conference Call Records Industry or Company Involved - Retail Real Estate in Australia [2] - Consumer Finance in Thailand [2] - BYD (1211.HK/002594.SZ) [6] - Industries Qatar (IQCD.QA) [6] - Brazil Insurance Sector [9] - YDUQS (YDUQ3.SA) [11] - Domino's Pizza Inc. (DPZ.N) [11] - Aerospace & Defense (LMT and HII) [11] Core Insights and Arguments Retail Real Estate in Australia - Retail real estate has shown resilience with improving occupancy rates and net operating income growth despite cautious investor sentiment due to high interest rates [2][2] - Retail real estate stocks are trading at historically high discounts to NTA and low P/E ratios, indicating potential value [2][2] - There is a disconnect between MAT growth (+14%) and book values (-12%) since 2018 [2][2] Consumer Finance in Thailand - The risk-reward for Thai non-bank financial companies (NBFCs) appears balanced, with modest NP growth expected in 2Q24E [2][2] - Title loan operators are favored due to recovering earnings, while unsecured operators face asset-quality pressures [2][2] BYD (1211.HK/002594.SZ) - Volume forecasts for FY24/25E have been raised to 3.85 million and 5.01 million respectively, reflecting strong sales momentum [6][6] - Gross profit margins are expected to improve, leading to an updated NP forecast of Rmb35.7 billion and Rmb51.7 billion for FY24/25E [6][6] - Target prices for H-share and A-share are set at HK$475.0 and Rmb437.0, respectively [6][6] Industries Qatar (IQCD.QA) - The company is viewed as an underappreciated growth story, particularly in its blue ammonia business, which is expected to contribute 20% of earnings by 2030 [6][6] - The market undervalues IQ compared to peers, with a DCF-based valuation of 13.7 QAR [6][6] Brazil Insurance Sector - The insurance sector in Brazil is improving, with a reacceleration of premiums and reduced expectations of losses from El Niño [9][9] - The competition in auto insurance remains well-behaved, and recent floods have had a manageable impact on most players [9][9] YDUQS (YDUQ3.SA) - The company is downgraded to Neutral due to expected topline slowdown and rising bad debt [11][11] - Earnings estimates for 2024/25 have been cut by 16%, with a new target price of R$14.0 per share [11][11] Domino's Pizza Inc. (DPZ.N) - The CFO expressed optimism about business momentum, driven by value promotions and product innovation [11][11] - The company is expected to benefit from increased traffic and rewards program engagement [11][11] Aerospace & Defense (LMT and HII) - Meetings with management indicated a positive outlook for DoD budgets and cash flow, supporting Buy ratings for both companies [11][11] Other Important but Possibly Overlooked Content - The retail real estate sector's fundamentals remain supportive despite investor caution [2][2] - The performance of title loan operators in Thailand is contrasted with unsecured operators facing challenges [2][2] - BYD's strong model cycle and sales momentum are critical to its revised forecasts [6][6] - The Brazilian insurance sector's recovery is contingent on weather-related risks and competitive dynamics [9][9] - YDUQS's downgrade reflects broader market conditions and internal challenges [11][11]