Index Rebal Trades & Special Situations, Quiddity Advisors

Janaghan Jeyakumar, CFA

Index Rebal Trades & Special Situations

Quiddity Advisors

Pan-Asia Catalysts/Events

Event-Driven

<p>On 13th July 2021, Australia-based ready-made meal delivery company <a href="https://www.smartkarma.com/entities/youfoodz-holdings-ltd" target="_blank" data-smartkarma-citation="entities:33759:1" rel="noopener">Youfoodz Holdings (YFZ AU)</a> announced they had entered into a Scheme Implementation Deed with multinational meal-kit delivery company <a href="https://www.smartkarma.com/entities/hellofresh-ag" target="_blank" data-smartkarma-citation="entities:26000:1" rel="noopener">HelloFresh AG (HFG GR)</a> which will see them get acquired in an all-cash transaction that valued the company at a market cap of A$125mn. </p><p>The Offer Price is A$0.93/share in cash. The transaction will be conditional on the receipt of regulatory approvals and Target shareholder approval.</p><p>The Deal is expected to be completed in October/November 2021. </p><div><p><em>More below the fold. </em></p></div><hr><div><div><div class="content-remarks"><p>For more information about M&amp;A rules, regulations, and practices in Australia, please refer to <a href="https://www.smartkarma.com/insights/quiddity-australia-m-a-guide-2019" target="_blank" data-smartkarma-citation="insights:30118" rel="noopener">Quiddity Australia M&amp;A Guide 2019</a> and <a href="https://www.smartkarma.com/insights/quiddity-m-a-australia-foreign-investment-reforms" target="_blank" data-smartkarma-citation="insights:40210" rel="noopener">Quiddity M&amp;A: Australia Foreign Investment Reforms</a> </p></div></div></div>

On 13th July 2021, Australia-based ready-made meal delivery company Youfoodz Holdings (YFZ AU) announced they had entered into a Scheme Implementation Deed with multinational meal-kit delivery company HelloFresh AG (HFG GR) which will see them get acquired in an all-cash transaction that valued the company at a market cap of A$125mn. The Offer Price is A$0.93/share in cash. The transaction will be conditional on the receipt of regulatory approvals and Target shareholder approval.The Deal is expected to be completed in October/November 2021. More below the fold. For more information about M&amp;A rules, regulations, and practices in Australia, please refer to Quiddity Australia M&amp;A Guide 2019 and Quiddity M&amp;A: Australia Foreign Investment Reforms 

Youfoodz (YFZ AU): HelloFresh's Lowball Takeover Offer Difficult to Block But Not UnBumbable

Technical Analyst, Vermilion Research

Joe Jasper

Technical Analyst

Technical and Quantitative Research

Vermilion Research

Vermilion’s objective is to deliver timely, actionable, and unique technical research to professional investors through the application of our various technical indicators.

Our research strategists seek to highlight securities which we believe are at major inflection points, based on our various technical and quantitative indicators, and offer asymmetric risk/return profiles. Our unique research methodology, centered on relative strength, enables our strategists to deliver superior investment recommendations.

Our process begins by organizing the universe of actively traded stocks into discrete sectors, then into industry groups. We then apply our technical and quantitative tools to identify developing price trends. Once attractive trends are identified within a selected sector or group, we screen for individual stocks which we believe offer the best risk/reward profile. We provide a historical perspective that often reveals, through our long-term charts, how price patterns often repeat themselves over time.

Technical Analysis

<p>Global indexes remain overwhelmingly positive which is supported by the fact that there is a dearth of breakdowns. Overall our big picture view remains unchanged; overhead longer-term resistance on the MSCI EM, EAFE, and ACWI ex-US indexes (all priced in local currency) is something to be aware of, however if the ACWI-US is above $70 our intermediate-term outlook remains bullish and we suggest buying any dips. In today's report we highlight attractive charts within defensives (<strong>Consumer Staples &amp; Utilities</strong>), cyclicals (<strong>Consumer Discretionary, Energy, Financial, &amp; Materials</strong>), and in-between Sectors (<strong>Communications, Services, &amp; Health Care</strong>)</p>

Global indexes remain overwhelmingly positive which is supported by the fact that there is a dearth of breakdowns. Overall our big picture view remains unchanged; overhead longer-term resistance on the MSCI EM, EAFE, and ACWI ex-US indexes (all priced in local currency) is something to be aware of, however if the ACWI-US is above $70 our intermediate-term outlook remains bullish and we suggest buying any dips. In today's report we highlight attractive charts within defensives (Consumer Staples &amp; Utilities), cyclicals (Consumer Discretionary, Energy, Financial, &amp; Materials), and in-between Sectors (Communications, Services, &amp; Health Care)

Global Equity Strategy: Stick With Technology

Expert on Japan Retail and Consumer Markets, JapanConsuming

Michael Causton

Expert on Japan Retail and Consumer Markets

Real Insight on Japanese Consumer Markets

JapanConsuming

JapanConsuming is a specialist research firm producing intelligence on Japanese retail and consumer markets. Founded in 2000, JapanConsuming has become the leading provider of insights on Japanese retailers and consumer trends to retailers, brands, government agencies and investors. As well as a highly regarded monthly report on the market, JapanConsuming produces in-depth reports on retail sectors, seminars on key trends and telephone consulting to investors on trends and retailers.

JapanConsuming was founded by Michael Causton and Roy Larke. 

Equity Bottom-Up

<p>It’s not easy selling food online, and the pickiness of Japanese consumers makes it doubly difficult. Now, by adapting the growing meal-kit category into something very Japanese and simple to use, Japan might well have found a way to crack this particular problem.</p>
<p>Right now, <a href="https://www.smartkarma.com/entities/10145" target="_blank" data-smartkarma-citation="entities:10145:1">Oisix (3182 JP)</a> is the meal-kit king, and more and more retailers have realised the potential and are quickly adopting this new product to sell online, giving Oisix new channels to sell through including the leader in online fresh food delivery, Amazon.</p>
<p>The market for meal kits in Japan is growing fast thanks to higher rates of female participation the workforce, the growth in single person households, and the simple fact that meal kits offer convenience without sacrificing quality or being unhealthy. While more competitors are emerging, we think they will just help to grow the market, and Oisix is going to be a leader in what is likely to be a key staple of the fast-growing online food market.</p>

It’s not easy selling food online, and the pickiness of Japanese consumers makes it doubly difficult. Now, by adapting the growing meal-kit category into something very Japanese and simple to use, Japan might well have found a way to crack this particular problem.
Right now, Oisix (3182 JP) is the meal-kit king, and more and more retailers have realised the potential and are quickly adopting this new product to sell online, giving Oisix new channels to sell through including the leader in online fresh food delivery, Amazon.
The market for meal kits in Japan is growing fast thanks to higher rates of female participation the workforce, the growth in single person households, and the simple fact that meal kits offer convenience without sacrificing quality or being unhealthy. While more competitors are emerging, we think they will just help to grow the market, and Oisix is going to be a leader in what is likely to be a key staple of the fast-growing online food market.

Oisix: King of the Meal Kit Boom, up 74%, and Plenty of Growth to Come

Asian Equities Analyst, Logistics & Transport, Tracking Traffic

Daniel Hellberg

Asian Equities Analyst, Logistics & Transport

<figure class="editor-figure mceNonEditable"><img src="https://static-prod.smartkarma.com/images/media/000/049/842/original/APRN-banner.png?1524009273" class="editor-image img-responsive" data-smartkarma-image-id="49842"></figure><p>I admit I am often quite critical of some of the companies I write about here on Smartkarma.com. Not surprisingly, a few readers occasionally ask, what would it take for me to turn more positive on some of the companies I criticize here on the platform?</p><p>This series is designed to answer those questions. Each of these 'What's Wrong With...?' notes will look at one of the companies I've picked on. I will offer my 'diagnosis' of the company's problems (<em>Ma always wanted a doctor in the family...</em>), a multi-step prescription to restore financial health, and then offer a prognosis for the 'patient'.</p><p>In this inaugural note, I examine <a href="https://www.smartkarma.com/entities/24175" target="_blank" data-smartkarma-citation="entities:24175:1">Blue Apron Holdings, Inc. (APRN US)</a>, a US-based meal kit specialist that has seemingly been stumbling from one crisis to another since it began marketing its IPO in June 2017. </p>

I admit I am often quite critical of some of the companies I write about here on Smartkarma.com. Not surprisingly, a few readers occasionally ask, what would it take for me to turn more positive on some of the companies I criticize here on the platform?This series is designed to answer those questions. Each of these 'What's Wrong With...?' notes will look at one of the companies I've picked on. I will offer my 'diagnosis' of the company's problems (Ma always wanted a doctor in the family...), a multi-step prescription to restore financial health, and then offer a prognosis for the 'patient'.In this inaugural note, I examine Blue Apron Holdings, Inc. (APRN US), a US-based meal kit specialist that has seemingly been stumbling from one crisis to another since it began marketing its IPO in June 2017. 

What's Wrong With Blue Apron? A Diagnosis & Prescription for a Return to Financial Health

Japan TMT Analyst

Pelham Smithers

Market Intel on Asian Tech with a Japan focus

Pelham Smithers Associates

Founded in 2009, Pelham Smithers Associates (PSA) provides market intelligence on Asian technology, focusing in particular on Japan. The industries covered by our team of specialists are: consumer electronics, telecomms, pharmaceuticals, internet, electronic parts and materials, automotive technology, retail and capital goods. 

Research is provided by the following:
Pelham Smithers: Macro, consumer electronics, telecoms & pharma
Joel Scheiman: Electronics materials / components
Julie Boote: Autos
Will Nestuk: Capital goods, machinery & transportation equipment parts
Thao Nguyen: eCommerce, internet content, marketing & advertising

<p><strong><a href="https://www.smartkarma.com/entities/6126" target="_blank" data-smartkarma-citation="entities:6126:1">Kitano Tatsujin Corp (2930 JP)</a></strong> started 2017 worth about US$50mil, it finished it worth over US$500mil. The "furasato" (home town) eCommerce stock finally started to deliver the sort of sales growth that had been expected of it, even before it listed in 2014, and investors were rewarded with a ten-fold increase in the share price. However, while 2017's performance means that the stock chart now resembles the north face of the Eiger, and that a bout of profit-taking is overdue, there's no reason…</p>

Kitano Tatsujin Corp (2930 JP) started 2017 worth about US$50mil, it finished it worth over US$500mil. The "furasato" (home town) eCommerce stock finally started to deliver the sort of sales growth that had been expected of it, even before it listed in 2014, and investors were rewarded with a ten-fold increase in the share price. However, while 2017's performance means that the stock chart now resembles the north face of the Eiger, and that a bout of profit-taking is overdue, there's no reason…

Kitano Tatsujin (2930) - Japan's Top Performer in 2017 (And Still Worth Watching for 2018)

Germany

HelloFresh SE provides online food services. The Company offers a subscription service in which customers receive a weekly box of recipes and meal ideas. HelloFresh also provides ice packs, plastic packaging, meat packing, insulation materials, and other related products. HelloFresh serves customers worldwide.

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HelloFresh (HFG GR)

Youfoodz (YFZ AU): HelloFresh's Lowball Takeover Offer Difficult to Block But Not UnBumbable

Multi-national mealkit provider giant HelloFresh bids for Aussie local YouFoodz. May be Rescue Bid but it's well below what they have recently...

Janaghan Jeyakumar, CFA

Global Equity Strategy: Stick With Technology

Global indexes remain overwhelmingly positive which is supported by the fact that there is a dearth of breakdowns. Overall our big picture view...

Vermilion Research

Oisix: King of the Meal Kit Boom, up 74%, and Plenty of Growth to Come

It’s not easy selling food online, and the pickiness of Japanese consumers makes it doubly difficult. Now, by adapting the growing meal-kit...

Michael Causton

What's Wrong With Blue Apron? A Diagnosis & Prescription for a Return to Financial Health

I admit I am often quite critical of some of the companies I write about here on Smartkarma.com. Not surprisingly, a few readers occasionally ask,...

Daniel Hellberg

Kitano Tatsujin (2930) - Japan's Top Performer in 2017 (And Still Worth Watching for 2018)

Kitano Tatsujin Corp (2930 JP) started 2017 worth about US$50mil, it finished it worth over US$500mil. The "furasato" (home town) eCommerce stock...

Pelham Smithers Associates

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