sandalwood

Huazhou's Total Turnover (Legacy-Huazhu) is estimated to normalize to +23% y/y in 2Q24 vs. 1Q24’s estimation of +29% y/y on tough comps.

The company’s turnover value surged in early May, mainly driven by the strong travel demand during the May Day holiday, particularly in Tier 2 and Tier 3 & below cities, and partly benefiting from the holiday timing difference.

Lululemon (LULU US Equity) reported F1Q24 PRC Rev(USD) +39% y/y, slowed down but remained healthy growth from last quarter’s +74% y/y, above but directionally in line with our projection range of + 22-27% y/y, at the high end of consensus. 

 The proportion of sales revenue generated in China to the company's global sales has increased from 12% in F1Q23 to 16% in F1Q24.

Sandalwood offline + online data consistently captures 50-60% of Lululemon's reported China total revenue.

Positive: Proya, Giant Biogene, Freda, Marubi, Anta, Fila, Lululemon, Asics, Amer Sports, 361 Degrees, Huawei, Xiaomi, Vivo, Sony, Canon, Midea, Roborock

Negative: Kose, Amore, Botanee, Bloomage, Puma, Nike, Apple, Oppo, Xgimi, Gree, Haier, Hisense Visual Technology, Ecovacs