Daily Brief Consumer: Yamada Holdings, Golfzon Holdings, Trip.com, Nike, La Francaise des Jeux, Anheuser-Busch InBev, Innovative Eyewear, Prosus NV, TSE Tokyo Price Index TOPIX and more

• In early June, a Nikkei article suggested that Yamada Holdings (9831 JP) and Edion Corp (2730 JP) would enter talks to merge. The knee-jerk reaction? Send smaller EDION higher. 
• That was the wrong trade. Yamada was cheaper on earnings/PSR/PBR with plans to sell assets/restructure. The Yamada/EDION ratio bounced, but is flat over the past month.
• Now we have a new fly in the ointment, and that should be good for Yamada shareholders. It’s a Potentially Big Twist

• On 28 June, it was reported that SJ Investment Holdings is launching a tender offer to delist the company.
• On 22 July, Terton Capital started to go activist on Golfzon Holdings. Terton Capital is a US-based investment fund and a shareholder of Golfzon Holdings.
• According to my NAV valuation analysis, the implied value of Golfzon Holdings is 9,530 won per share, representing 43% upside from current levels. 

• In May and June, domestic and outbound Chinese travel demand both softened
• Given higher fuel prices and weak consumer sentiment, this shouldn’t be a surprise
• For Trip.com, we believe tepid Chinese demand could delay recovery in momentum

• Brand Power Endures Amidst Headwinds: Despite recent financial pressure and slowing growth, Nike‘s core strength remains its iconic global brand, which provides a significant competitive advantage and pricing power.
• Strategic Pivot to Direct-to-Consumer (DTC) Faces Challenges: The company is in a transitional period, re-emphasizing its DTC and digital channels while also reinvesting in wholesale partnerships. Execution of this rebalanced strategy is critical for reigniting growth.
• Heightened Competitive Landscape and China Weakness: Nike faces intense competition from established players like Adidas and Lululemon, alongside rapidly growing regional brands in China (Anta, Li Ning), where it has experienced notable revenue declines.

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• La Française des Jeux (FDJ) holds a resilient monopoly on French lottery operations, providing a stable and significant revenue base. This is complemented by an expanding presence in the more competitive online sports betting and gaming markets.
• Strategic acquisitions of Premier Lotteries Ireland and Kindred Group have transformed FDJ into a major European player, diversifying its revenue streams and increasing its international footprint. This expansion, however, introduces greater exposure to varied regulatory environments and competitive pressures.
• While the company demonstrates strong dividend credentials, its growth is tempered by a mature domestic market and increasing regulatory and tax pressures in France and other European jurisdictions. Future performance will heavily depend on the successful integration of its recent acquisitions and its ability to navigate the evolving digital gaming landscape.

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• Global Market Leader with Unmatched Scale: Anheuser-Busch InBev is the world’s largest brewer, commanding approximately 25% of global beer volume. This scale provides significant competitive advantages, including procurement leverage, production cost efficiencies, and extensive distribution networks, which are difficult for competitors to replicate.
• Strong Portfolio of Iconic Brands: The company possesses a diversified portfolio of over 500 brands, including global powerhouses like Budweiser, Stella Artois, and Corona. This strong brand equity fosters consumer loyalty and supports premium pricing strategies, contributing to robust revenue growth and high-profit margins.
• Strategic Focus on Premiumization and Innovation: AB InBev is actively shifting its portfolio towards higher-margin premium and ‘beyond beer’ products to capitalize on evolving consumer preferences. This strategy, coupled with investments in digital platforms like BEES, is expected to drive future growth and enhance profitability.

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• Innovative Eyewear, Inc. develops and sells smart eyewear, including prescription, sunglasses, safety, and sport glasses, connecting customers to digital lives. This prospectus registers shares for resale by selling stockholders; the.
• The smartglass market is estimated at $2.5 billion worldwide in 2025, with 24% CAGR. The company holds over 120 patents.
• The company has a capital light business model leveraging e-commerce, wholesale, and retail partners, but also a lack of operating history.

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• EQT/DG lifted their Offer Price for Kakaku.com (2371 JP) to ¥3,450/share. This “obstructs” the Bain/LY deal, slightly, temporarily, but there are nuances within. Expect Bain/LY to come over the top.
• Prosus NV (PRX NA) is cheap”  vs. Tencent (700 HK). And Naspers (NPN SJ) “rich” to Prosus. Look to long Prosus here, short Tencent here. Or long Prosus, short Naspers
• Be comfortable medium-long-term with Mitsui Matsushima (1518 JP)‘s super-cheap asset. And they have niche businesses in semiconductor/tech to spruce things up if people decide they want to run with it.

• Negative Operating Leverage and High Burn Rate: Despite strong top-line momentum, with FY2025 revenue increasing 63% year-over-year to $2.66 million and 1H 2026 sales rising 71% to $1.77 million, the company suffers from extreme operational inefficiencies. Operating expenses of $9.06 million in FY2025 led to a net loss of $7.59 million, making the business heavily dependent on dilutive capital raises like the $3.0 million warrant exercise in July 2026.
• Wholesale Pivot as a CAC Mitigant: Direct-to-consumer (DTC) channels, which represented over 90% of e-commerce sales in 2025, are plagued by high customer acquisition costs (CAC) of $50 to $70 and e-commerce return rates of 20% to 25% due to sizing and tech-onboarding friction. The strategic pivot toward wholesale is accelerating via the 345-store rollout with Canadian FYihealth group in Q3 2026 and a scheduled 50-store US retailer test in September 2026.
• Vulnerable IP Moat: The company’s portfolio of over 115 patents and applications is primarily comprised of design patents protecting aesthetic layouts, which offer minimal protection against major competitors. Utility patents, such as their modular “quick connect” frames or pending multi-AI software integrations, are vulnerable to workarounds by legacy eyewear giants and big tech hardware players.

• An increase in the approval rate for shareholder proposals and a decrease in the approval rate for management proposals will influence the company’s subsequent policies.
• Thanks to TSE’s educational initiatives, there’s been an increase in shareholder proposals that address management issues raised by activist investors. This is expected to encourage companies to implement fundamental reforms.
• However, with most shareholder proposals being rejected, there may be companies that are buying time by increasing shareholder returns until they can implement radical measures that carry significant risk.