Consumer

• This family-owned dispensing pharmacy business saw the founding family decide to bail a year ago. So the company decided to set up a sales process.
• This process was a model for how this kind of sale process should be conducted. Multiple parties. Easy accommodation. Getting experts in.
• This should be a done deal because the family and cross-holders/insiders get them to the minimum.

• Nihon Chouzai (3341 JP) has recommended a tender offer from Advantage Partners and LYFE Capital at JPY3,927, a 163.6% premium to the undisturbed price of JPY1,490.
• The offer, which resulted from an auction, represents an all-time high and is above the mid-point of the IFA DCF valuation range. 
• The significant irrevocables and low required tendering rate suggests a done deal. At the last close, the gross spread was 11.7%. 

• Ownership in Alibaba has rebounded to 76.4% of EM funds, nearing its 2020 peak and making it the second most widely held stock among GEM funds, behind only TSMC.
• The past six months have seen strong momentum, with 29 new fund positions marking a 7.7% rise in participation— the third highest among all EM stocks.
• Alibaba attracts broad cross-style interest, with Value funds leading on allocation size, but Growth and GARP strategies among the top holders, reflecting high and diverse conviction.

• In Q1 FY03/26, Yellow Hat’s sales increased 16.2% YoY to JPY40.3bn, with operating profit up 12.4% YoY.
• The company opened four new Yellow Hat stores, resulting in a total of 919 domestic stores by end-Q1 FY03/26.
• Sales for a segment decreased by 0.5% YoY to JPY1.4bn, with operating profit declining by 6.3% YoY.

• Q1 FY03/26 sales were JPY71.6bn, a 7.0% YoY decrease, representing 21.7% of the full-year forecast.
• Operating profit declined 9.1% YoY to JPY3.3bn, with a 1.2pp YoY improvement in gross profit margin.
• Pre-tax profit fell 42.5% YoY to JPY3.2bn, impacted by the absence of prior one-off gains.

• Hyundai Motor India (HYUNDAI IN) Q1FY26 results saw exports and rural markets as shining stars, offsetting weak domestic urban demand; rural penetration reached an all-time high of 22.6%.
• Gross margin improved QoQ driven by localization gains, better model mix, and increased export contribution despite higher discounting.
• Outlook positive for H2FY26 with festive demand, new product launches, and Pune plant ramp-up, though profitability may be impacted by higher depreciation.

• Keurig Dr Pepper’s latest earnings results for the second quarter of 2025 demonstrate a resilient performance with notable strengths and some challenges for the coming quarters.
• The company achieved a 7% increase in net sales, highlighting robust growth across its segments, fueled by strategic pricing actions and favorable volume mixes.
• This contributed to a double-digit earnings per share (EPS) growth, reflecting the effective translation of top-line growth into profitability despite ongoing cost pressures.

• In Q1 FY03/26, sales were JPY55.6bn (+112.2% YoY), operating profit JPY7.8bn (+210.0% YoY), net income JPY5.6bn (+228.7% YoY).
• Tsuburaya Fields Holdings reported JPY3.5bn sales (-1.6% YoY) and JPY443mn operating profit (-57.7% YoY) in Content and Digital business.
• Amusement Equipment business posted JPY51.7bn sales (+132.0% YoY), JPY8.2bn operating profit (+297.5% YoY), selling 95,240 machines (+225.2% YoY).

• The ODP Corporation’s first quarter 2025 financial results and strategic updates reveal several focal points for evaluation.
• The company’s ongoing transformation and strategic pivot towards a B2B model present both opportunities and challenges.
• Positively, ODP highlighted the early stages of momentum in executing its strategy, notably through its Optimize for Growth restructuring plan which aims to pivot towards B2B and reduce reliance on retail operations.

• Seria’s Q1 FY03/26 sales were JPY60.5bn (+4.1% YoY), with operating profit at JPY4.1bn (+4.5% YoY).
• The company opened 14 and closed 13 directly managed stores, totaling 2,073 stores by end-Q1 FY03/26.
• Revised full-year forecast for FY03/26: sales JPY243.7bn (+3.1% YoY), operating profit JPY15.9bn (-5.6% YoY).

• Mixi (2121 JP)‘s A$1.20/share cash Offer is now open, with a 50.1% acceptance condition. PointsBet Holdings (PBH AU) is supportive. Mixi currently holds 25.15%. ~16% of shares out have tendered.
• Betr Entertainment (BBT AU) (self-alleged superior) scrip Offer, with no minimum acceptance condition, is still out there. betr holds 19.6%. No shareholder has accepted terms. 
• PBH has now tapped the Takeover Panel seeking orders betr clarify its convoluted Offer.

• GMO Internet Group (9449 JP) needs to sell shares in GMO Internet (4784 JP) to achieve a “float” of 35% by 31 December 2026. Recent filings show they are selling. 
• Preceding my comments on the GMO group – and Haw Par Corp (HPAR SP)/ UOB (UOB SP) – are the current setup/unwind tables for Asia-Pacific Holdcos.
• These relationships trade with a minimum liquidity of US$1mn, and a % market capitalisation >20%.

• Don Quijote announced a slew of initiatives over the past two months targeting tourists, a move to capitalise on the burgeoning fitness boom, and new social media use.
• The initiatives reflect the continued dynamism in the business both in the discount format and as city centre tourist meccas.
• While the company has closed some overseas stores, the outlook in Asia remains very strong. 

• BETR Entertainment (BBT AU) has bumped its PointsBet Holdings (PBH AU) offer to 4.219 BBT shares per PBH share. However, the offer’s opening is delayed by the Panel’s interim orders.
• Betr expects that the Board will now recommend its offer. However, the Board has several reasons not to deem Betr’s revised proposal as superior to Mixi Inc (2121 JP).
• Since 3 June, the average gross spread of the revised Betr offer to the Mixi offer is 3.4%. The logical next step is for Mixi to declare its offer unconditional. 

• Oisix was originally known for its food subscription boxes but then expanded into meal kits which brought in a new type of customer looking to save time.
• But with more busy and stressed customers no longer wanting to even spend 20 minutes cooking its meal kits, Oisix has launched 5-minute deli meals.
• Oisix remains the leading independent online food retailer and the most innovative. While subscriber numbers fell recently, sales per user are up.

• Milky Mist Dairy Food Ltd (1023949D IN) (MMDFL)  is looking to raise about US$237m in its upcoming India IPO. The bookrunners for the deal are Axis, JM Fin and IIFL.
• MMDFL is a value-added dairy and packaged food manufacturer focused on premium products such as paneer, cheese, curd, yogurt, UHT milk, and frozen RTE/RTC foods.
• MMDFL is the fastest-growing packaged food firm in India among those with revenue above INR15,000m, having achieved a revenue CAGR of 29.82% from FY23-25, as per 1Lattice Report.

• Las Vegas Sands Corporation’s latest earnings report offers a mixed yet intriguing view into the company’s operational performance, focusing on their flagship properties in Macau and Marina Bay Sands in Singapore.
• The highlights of the earnings call indicate an exceptional quarter for Marina Bay Sands, posting a record quarterly EBITDA of $768 million.
• This reflects significant growth propelled by mass gaming, which reached $843 million – a stark increase of 97% from Q2 2019 and 40% higher year-on-year.

• Hilton’s latest financial performance in the second quarter of 2025 showcases both strengths and challenges within the company.
• The firm reported an Adjusted EBITDA exceeding $1 billion, surpassing expectations despite facing challenges such as modestly negative system-wide RevPAR and shifting holiday schedules that impacted business transient RevPAR negatively by 2%.
• The leisure transient sector, however, showed resilience with a 1% increase, bolstered by extended spring break periods.

• Netflix shares dropped 5.1% despite beating earnings expectations and raising full-year guidance—a reminder that strong results don’t always satisfy a market pricing in perfection.
• The stock is up 36% in 2025 and trades at 44 times forward earnings, just below a three-year high.
• While the selloff may have stemmed from revenue gains partially driven by foreign exchange effects rather than robust U.S. growth, the underlying business performance remains solid.

• Wyndham Hotels & Resorts reported a robust second quarter in 2025, demonstrating resilience and strategic expansion across multiple fronts.
• The company’s global system growth reached 4%, with sequential net room growth in all operating regions.
• The introduction of innovative technology and strategic partnerships appears to have contributed significantly to this growth trajectory.

• I have harped on the fact that GMO Internet Group (9449 JP) has to sell GMO Internet (4784 JP) shares with the goal to get 35% tradable shares by end-2025.
• I have written about it here, here, here, and here. The price needs to be lower so the parent can launch a HUGE block. The stock must be less squeeze-able.
• It turns out the parent started selling in the market the day after the Offering was cancelled. The setup is delicious now.

• On 28 July, it was announced that Affirma Capital will conduct a tender offer of JTC Inc/Fukuoka (950170 KS) which is a Japanese duty free operator listed on KOSDAQ. 
• This follows the exercise of a call option on all shares held by former JTC Chairman Gu Cheol-mo. 
• Despite some recent concerns about travelling to Japan due to Manga driven fears about earthquakes, there are some clear longer term signs that the global travelers visiting Japan are increasing.

• Singapore’s small- and mid-cap equities have surged over the past month, defying a generally cautious macroeconomic backdrop.
• The rally is widely linked to expectations of significant capital inflows from the Monetary Authority of Singapore’s (MAS) Equity Market Development Programme (EQDP).
• A firm Singapore dollar and comparatively attractive dividend yields have further supported investor interest in these stocks.

• Prosus’s €20.30/share offer for JET trades at a 1.1% gross spread with EU clearance due 11 August; implied success probability stands at ~97% based on current market pricing.
• Offer extended to 1 October to align with EC timeline. Prosus proposes structural remedies—stake cut and board exit from Delivery Hero—to resolve competition overlap in five EU countries.
• Estimated settlement by mid-October. New entrants see 5.5% annualized return; early investors could realize 9.6%. Downside risk to €12.43 implies a 38% loss if deal breaks unexpectedly.

Greggs’ H125 results reflect disruption to revenue growth from unusual weather as well as the phasing of cost pressures. The presentation focused on why weak trading is not specific to Greggs. Directionally, revenue growth is consistent with market trends (ie improving momentum) through May 2025 until the June heatwave reversed the trend. There was no specific negative effect on volumes following the most recent price increase, and management quantified cannibalisation of existing stores within a catchment area from the addition of new stores is minimal. As a result, it believes the relatively weak trading reflects the wider weak consumer confidence as well as pressures on disposable income for some consumers, beyond the one-off weather effects. The announcements of numerous new initiatives, including trials of smaller ‘bitesize Greggs’ stores in appropriate locations, extending the frozen ‘Bake at Home’ range into Tesco and trialling of kiosks in stores, show management continues to seek new growth initiatives and efficiencies.

• In today’s Morning Views publication we comment on developments of the following high yield issuers: SJM Holdings, Yinson Production, Adani Green Energy
• Long-end UST yields rose slightly yesterday, with no macro catalysts and following mixed results for auctions of 2Y and 2Y notes. The yield on the 2Y UST was unchanged at 3.93%, while the yield on the 10Y UST rose 2 bps to 4.41%.
• Equities held steady at record high levels following the US-EU trade agreement, and on expectations of an extension of the US-China trade truce. The S&P 500 was flat at 6,390, while the Nasdaq was up 0.3% at 21,179.

• The M&A development of Sarantis Group has primarily focused on expanding its consumer household product portfolio, alongside growth in the beauty and personal care categories.
• Acquisitions prior to 2010 were mainly aimed at entering new country markets to gain market share and access new consumer bases.
• In contrast, acquisitions post-2010—particularly those in Greece and Poland—have emphasized portfolio diversification and reinforced the Group’s market position within existing territories by entering additional sectors.

• Almost no one could argue that adaptability, the search for market opportunities and the striving for organic growth are a key matter for any company across any sector.
• But regarding the consumer products sector, especially in Eastern Europe and Greece there is undoubtedly not greater example than Sarantis Group at this case.
• Starting in Greece and boasting a history of over 50 years, it was transformed into a multinational company leading the way in household and cosmetics products, representing and distributing also famous brands across a wide geographical area ranging from Greece to Poland and reaching even Portugal, while its exports lead to multiple countries.

• AH premia down again among liquid names but “beautiful skew” of wide premia converging more than narrow premia continues bigly. It still pays well to be long wide H discounts.
• This is the most significant 60-day AH pair average H outperformance in five years, maybe ever. Remarkable. 
• The data tables below update on a daily basis in the Tools section of Smartkarma. The SOUTHBOUND Flow Monitor and AH Monitor are both there free for SK readers.

• Gross SOUTHBOUND volumes US$20+bn a day this past 5-day week. Best in months. Net buying strong at +US$800mm a day. 
• Among the top buys as a percentage of volume, Non-bank FINANCIALS stood out, dramatically. Tech-y CONSUMER DISCRETIONARY was sold. SOEs stand out on the sell side. Again. 
• The data tables below update on a daily basis in the Tools section of Smartkarma. The SOUTHBOUND Flow Monitor and AH Monitor are both there free for SK readers.

• Laopu Gold (6181 HK)’s stock has fallen nearly 30% since its July 8 peak and declined another 4% yesterday despite an upbeat 1H2025 profit update.
• The company’s positive profit alert reported revenues and profits up more than 2.5x year-on-year, exceeding market expectations.
• The ongoing share price weakness despite strong results likely reflects a combination of technical factors, such as lock-up related selling, and broader fundamental concerns.

• A quick synoptic look at the tactical models for the key indices, stocks, commodities and bonds we cover, for the week July 28 – August 1.
• OVERSOLD: China Mobile (941 HK) , Commonwealth Bank of Australia (CBA AU) are just mildly oversold, NIFTY Index (NIFTY INDEX) is oversold.
• OVERBOUGHT: Amazon (AMZN US) , Alphabet (GOOG US) , NVIDIA (NVDA US) , Toyota Motor (7203 JP) , Softbank Group (9984 JP) , Hang Seng Index , Nikkei 225 INDEX 

• Anta expects “other brands” revenue will increase by “60-65%” YoY in 1H25.
• We believe Anta finished the consolidation of Jack Wolfskin within June.
• We conclude the stock will have an upside of 28% for the next twelve months.

• There are three major reasons why we would take profits on APR (278470 KS) at current levels. 
• They include lofty valuations, increased competition, and share price decline post large scale dividend payout announcement. 
• APR could be facing especially tough competition for the beauty device products from Amorepacific, LG H&H, and others especially starting in 4Q 2025. 

• MFE raised its offer to €7.88 implied, tightening the spread to just +1.15%; new long entries now face skewed downside risk without a second bump or strategic surprise.
• Legacy holders from €5.80–7.00 have captured meaningful gains; with the August 13 deadline approaching, using MFE-A hedges or call structures preserves upside while limiting exposure.
• MFE-A borrow remains accessible (~0.75%), making short hedges viable; paired with call options, this offers capital-efficient exposure to upside while mitigating equity volatility in a tight spread setup.

• Back on the 28th April 2025, Ainsworth Game Technology (AGI AU), an Aussie gaming supplier, entered into a Scheme with Austria’s Novomatic, Ainsworth’s largest shareholder (52.9%). 
• Novomatic offered A$1.00/share (best & final) – including a permitted dividend – a 35% premium to last close; yet 64% below what Novomatic paid for its controlling stake in 2016.
• The Scheme Doc is now out, with a shareholder vote on the 29th August. The IE says fair & reasonable. They are probably tight. 

• Both revenue and net profit of Eastroc maintain a high-speed growth trend in 25H1, which is impressive against the backdrop of the overall stabilization of the food and beverage industry.
• The mid-term dividend payout ratio is high, which is relatively rare among growth-oriented food and beverage companies. Valuation of Eastroc should be higher than Nongfu Spring, China Resources Beverage.
• However, inflation may drive up raw material prices. Eastroc’s profit may face pressure once products sales fail to grow as fast as expected.We updated our forecast for next three years

• United Natural Foods (UNFI) is a billion-dollar nationwide distributor of groceries in the U.S. and Canada, and has faced challenges with debt and integration following a merger
• UNFI saw success during the COVID-19 pandemic as demand for groceries surged, leading to improved financial performance and potential turnaround opportunities.

This content is sourced through publicly available sources and has been machine generated. Information displayed is for general informational purposes only.

• Most expect prefs to be in policy crosshairs soon—watch for tighter rules on dividends, discounts, and liquidity, plus likely incentives for redemption or cancellation ahead of commons.
• If Korea rolls out a pref stock overhaul, long-biased rerate plays could pop—focus on liquid, high-yield large-cap prefs trading at 35%+, yield north of 3%, and solid daily turnover.
• Korea Inv, Kumho Petro, CJ Cheil, CJ Corp prefs already screen well; Doosan and Hanwha 3PB could join if dividend hikes materialize on back of strong sub earnings.

• The MBO for Pacific Industrial (7250 JP) starts with the father+son Chairman and CEO, – combined stake 2.92% – putting nothing in to buy this, with help from banks.
• The Takeover Price is priced at 0.7x book, and a Net Debt to EBITDA of 2x (when adjusted for securities+pension assets+DTLs) and 5-6x average 2026-2030 FCF.
• This is being done too cheap: Toyota is the main customer, one third of revenues comes from Japan, and the company is set for a transition to EVs.

• It seems unlikely that there’ll be an increase in formal criteria for corporate governance, like in the previous revision. It looks like there’ll be more demand for human capital disclosure.
• Many companies don’t fully understand human capital, and there’s concern that achieving disclosure criteria will become the goal, rather than original objective of investing in human capital to create value.
• The revised Corporate Governance Code requires verification that management resources are being appropriately allocated to investment and shareholder returns. It seems that simpler questions are better than difficult “technical terms.”

• The Ainsworth Game Technology (AGI AU) IE considers Novomatic’s A$1.00 to be fair and reasonable, as it falls within its A$0.93-1.07 valuation range. The vote is on 29 August.
• The offer has drawn opposition from several notable shareholders. There remains at least a 50% chance that the scheme vote fails.  
• Novomatic can switch to an alternative takeover offer, which limits the downside risk. At the last close and for a 26 September payment, the gross/annualised spread was 1.5%/8.2%.  

• Prosus NV (PRX NA) is acquiring Just Eat Takeaway.com NV (TKWY NA) in an all-cash tender offer of €20.30 per share, valuing the deal at approximately €4.1 billion.
• The transaction is awaiting Phase 1 regulatory approval from the European Commission, anticipated by late July 2025.
• Upon completion, Just Eat Takeaway.com NV (TKWY NA) will be removed from multiple major indices, potentially causing significant passive fund outflows.

• Kraft Heinz (KHC) is currently evaluating a plan to spin off a significant portion of its grocery business into a new, distinct entity. The WSJ reported that this transaction is likely to occur.

• The news comes a decade after the infamous merger of two of the biggest names in packaged foods that was orchestrated by Warren Buffett and Brazilian private equity firm 3G Capital Partners.

• This new entity, which can be referred to as “SpinCo,” would encompass many of the traditional Kraft products. The remaining company, or “RemainCo,” would strategically focus its operations on faster-growing segments, specifically sauces, spreads, and condiments.

• Three robotics startups announced Monday they had completed funding rounds led by JD.com Inc., signaling the Chinese e-commerce giant is accelerating its push into the burgeoning, much-hyped field of embodied artificial intelligence (AI).
• Embodied AI — which refers to intelligent systems with physical forms that interact with the real world, such as robots and self-driving cars — has recently become a battleground for tech firms. As JD.com is a relative latecomer, it’s making an aggressive effort to catch up with rivals like Meituan and Lenovo Group Ltd.
• While supporters of the tech say it’s set to reshape industries from logistics to consumer households, others warn that the technology is a long way off mass adoption and that many firms in the space lack a viable commercial model.

• Domino’s Pizza reported a strong second quarter performance, marked by market share gains and growth in both U.S. and international markets, despite a challenging macroeconomic environment.
• In the U.S., Domino’s saw positive results in its delivery and carryout businesses, driven by strategic innovations and improvements in customer value propositions.
• The launch of the Parmesan Stuffed Crust pizza was highlighted as a significant contributor, attracting new customers and performing well operationally due to prior training investments.

• D.R. Horton, Inc., a significant player in the homebuilding industry, reported its financial results for the third quarter of fiscal 2025.
• The company navigated prevailing market conditions with a focus on maximizing returns and efficiency.
• Earnings per share stood at $3.36, reflecting a decrease from $4.10 in the previous year.

• Coca-Cola Company’s second-quarter 2025 results illustrate both achievements and challenges within a dynamic operating environment.
• The company experienced a modest 1% decline in volume, attributed to difficult prior-year comparisons and adverse weather affecting key markets, coupled with some consumer pressure.
• However, Coca-Cola achieved a 5% organic revenue growth and 4% earnings per share growth, even amidst currency headwinds and a higher effective tax rate.

• Philip Morris International’s recent quarterly performance demonstrates a complex financial picture characterized by several positive developments interspersed with notable challenges.
• In terms of results, the company showcased significant growth trajectories within its smoke-free product segment, encompassing products like IQOS, ZYN, and VEEV.
• This performance contributed substantially to the overall financial outcome, resulting in a robust double-digit increase in adjusted diluted earnings per share in both constant currency and U.S. dollar terms.

• PulteGroup Inc.’s earnings report for the second quarter of 2025 reflects a complex but strategically managed operational landscape.
• On the positive side, PulteGroup achieved a commendable 23% return on equity through resilient financial performance, alongside robust gross margins and effective overhead leverage.
• The company’s diversified operating model allows it to maintain strategic advantages in a challenging market, evidenced by strong responses to its active adult communities, like Del Webb, which contribute to high-margin closings.

• General Motors Company presented its financial results for the second quarter of 2025, underscoring both strengths and areas of challenge in its current performance.
• The company’s financial position and strategic maneuvers present a complex picture for potential investors to consider.
• On the positive side, General Motors reported a strong operating performance, with key highlights including substantial revenue figures.

• Since inception on February 23, our Robust Dividend Yielders basket has generated 20.3% total return, vs MSCI Asia-ex-Japan’s 11.34%. 10 stocks in our basket of 23 appreciated more than 20%.
• We reconstruct our basket screening all Asian stocks > US$2bn market cap, dividend yield >6% in 2025 and 2026, EPS CAGR > 5% and upward revision to EPS forecasts.
• Our new Dividend Yield basket has 15 stocks, 10 from HK, 3 from onshore China, 1 each from Indonesia and Singapore. Bosideng is the only stock common in both baskets. 

• Following Ibex’s disposal of its 28% stake in Pepcor earlier this week, Pepcor (PPH) will be upweighted in the closing auction today.
• PPH’s free float will increase to 99.82% from 71.61%. Passive funds and hedgers will need to increase their exposure by between 37 and 47bps.
• In addition, active managers looking to maintain their active positioning would need to buy PPH, failure to do so would result in an underweight of 39bps (assuming a Capped ALSI benchmark and an active weight of 0%).

• Ibex sold its entire 28% stake in Pepkor Holdings (PPH SJ) for $1.5bn in a Secondary Offering completed on 22 July 2025.
• The free float is expected to increase by 28 percentage points causing a significant upweight in Global and South African indices at the close of 25 July 2025.
• Aggregated passive fund demand is estimated at 103m shares, $160m and 15 ADV at the close of 25 July.

• Octopus Energy Ltd., Britain’s largest power utility, has partnered with Chinese electric vehicle (EV) giant BYD Co. Ltd. on a service in the U.K. that can help EV owners cut down on charging costs by providing them with a way to supply electricity to the grid.
• The Power Pack Bundle, launched last month, offers customers a leased BYD Dolphin and a special two-way charger that turns the car into a battery that can send electricity back to the grid during peak hours.
• This is one application of the vehicle-to-grid (V2G) system, creating a two-way street for electricity to flow between charging stations and EVs. This allows cars to charge up when power is abundant and provide electricity back into the grid when demand surges.

• In today’s Morning Views publication we comment on developments of the following high yield issuers: Sands China
• UST yields rose yesterday, with the curve bear flattening for a second day as the market pared expectations for Fed rate cuts. The yield on the 2Y UST increased by 4 bps to 3.92%, while that on the 10Y UST was up 1 bp at 4.40%.
• Equities closed at fresh record highs, with the S&P 500 and Nasdaq advancing 0.1% and 0.2%, respectively.

• Pacific Industrial (7250 JP) has recommended an MBO at JPY2,050, a 16.4% premium to the last close price and a 40.3% premium to the undisturbed price.
• While the offer is below book value (P/B of 0.71x), it represents an all-time high and is above the mid-point of the IFA DCF valuation range. 
• Pacific Industrial has no history of activism. Therefore, the offer will succeed at current terms unless there is vocal opposition or an activist becomes a substantial shareholder. 

• We are reiterating our Buy rating and $40 price target, and conservatively leaving our 2025 and 2026 EPS projections untouched after JAKKS Pacific registered EPS upside, but a revenue miss, for 2Q25, as the company’s operations were materially impacted by the imposition of China tariffs, which served to disrupt shipments utilizing the Freight On Board (“FOB”) method.
• While a 40% increase in international revenue YoY demonstrated what could have been, domestic sales declines of over 30% in the United States showed the lost potential of the quarter.
• That said, management did a solid job controlling the levers in their control to still register a small profit.

Reach’s interims show it is on track to meet full-year expectations. The statement highlights the new CEO’s strategic priorities: driving deeper and broader connections with audiences, accelerating the use of AI and technology, and diversifying revenue sources. The underlying macroeconomic backdrop is still difficult and further shifts in traffic referral routes, notably via Google, are problematic. However, Reach has plenty of experience in mitigating market challenges. Compelling content, in appropriate formats (especially video), should continue to build digital audiences and generate the associated data to attract advertisers, both in the UK and US markets. With inherently strong cash conversion and the end in sight for the substantive funding needed to settle historical legal issues and pension obligations, Reach can start to be more proactive in building a route back to growth.

• In today’s edition: • ING / Van Lanschot Kempen | ING completes acquisition of Van Lanschot Kempen stake • RELX Group | held talks with investors to move prime listing to New York • Signify | 25Q2 results broadly in line with consensus – marginally adjusts FY25 outlook • BAM Group | revises FY25 adjusted EBITDA-margin upward to at least 5%

• We are reiterating our Buy rating and price target for Betterware de Mexico, but lowering our 2025 and 2026 projections after the company reported lower than expected 1Q25 (March) results and lowered the dividend rate.
• 1Q faced the toughest FX comparisons, which were further exacerbated by weakness in the Mexican consumer and the company’s decision to raise prices at the Betterware division.
• That said, management still reiterated 2024 revenue and EBITDA guidance.

• In this insight, we take a look at the potential index changes for ASX 300, 200, 100, 50, and 20 in the run-up to the September 2025 index rebal event.
• Currently, a market consultation is being conducted and there could be several significant changes made to the index selection process.
• The official index changes will be announced after the close on Friday 5th September 2025.

• Context: On 23 July 2025, Toyota Motor (7203 JP) surged 14.3%, driven by macro factors tied to tariffs. This Insight examines how that sharp move affected the stock’s volatility surface.
• Key Observations: Implied volatility spiked to extreme percentiles, with two-week IV hitting the 99th–100th percentile. Skew dynamics show otm calls becoming historically rich relative to puts.
• Opportunity: Elevated implied volatility and historically flat skew present an attractive setup for a zero-cost option strategy.

• Singapore small-mid cap stocks are having a good run in anticipation of Market Equity Development Programme. QAF may appeal to yield investors
• QAF is a well run number 1 bread company in Singapore, Malaysia and Philippines
• Business is stable and mature making it difficult for a new player to enter the market

• Tilaknagar Industries (TLNGR IN) acquires Pernod Ricard India’s Imperial Blue for INR 4,150 crore, diversifying its portfolio into whisky from dominance in brandy.
• This acquisition will establish TI as a pan-India spirits player, significantly enhancing distribution and is expected to be accretive.
• However, substantial deal size raises concerns about equity dilution, high leverage risks, and significant integration challenges for TI

• Overnight, the Nikkei carried an article saying Toyota valve supplier Pacific Industrial (7250 JP) would go private at a 40% premium in an MBO. 
• The implied price would match its ATH, but would remain far below book value, which is disappointing for a company with a very strong customer base and market share.
• This is potentially blockable, but it would need to be activism from scratch I think. An activist or collection of them would need about 18-20% to block this deal.

• Not impressive earnings result for 2Q25 as revenue fell 12%, led by a weaker EV sales followed by lower sales from the renewable energy division as well.  
• The highest-margin business contributor, regulatory credit, may be gone soon as recently the US government removed the financial penalty for higher emissions. 
• Tesla (TSLA US) is trading at premium compared to its Chinese counterparts such as BYD (1211 HK) , NIO (9866 HK) and XPeng (9868 HK) .

• Brigade Hotel Ventures has filed for IPO to raise up to INR 7,596M. The company plans to sell 84.4M shares at between INR 85 and INR 90 per share.
• The company owns and develops hotels in key cities in India, with a portfolio of nine operating hotels. The hotels are operated by global marquee hospitality companies.
• The debt-to-equity ratio for Brigade Hotel being at 5.8x is the highest among its peers. The company’s plans to use the proceeds to service the outstanding debts makes sense.

• Evolution reported 2Q25 earnings, with stock up 7% on the day
• Live casino revenue up 4%, RNG flat with potential for growth
• Expansion of partnership with Hasbro for Monopoly IP in North America, positive outlook in the market

This content is sourced through publicly available sources and has been machine generated. Information displayed is for general informational purposes only.

• The Coles Group’s financial results for the first half of fiscal year 2025 present a mixed picture of robust revenue growth and cost management challenges.
• The company reported a 3.7% increase in group sales revenue, reaching over $23 billion.
• This growth was bolstered by their strategic focus on core business execution, value campaigns, and strong seasonal trade during events like Christmas and Halloween.

• Data suggests that share buybacks/share cancellations are expected to have positive effect on ROE/ROA, while companies with low valuations increasingly utilize share buybacks as a measure to raise stock prices.
• Overseas investors share the value that companies should have business plans for growth and return surplus cash after investment to shareholders. There’s gap between investors and companies inn this value.
• More effective approach would be to require management to fulfill accountability by explaining fundamentals of returning unused cash to shareholders and disclosing business plans if they wish to retain cash.

• Since unwinding the Naspers (NPN SJ)/Prosus (PRX NA) circularity, Prosus has been selling Tencent shares, and buying back its share. Separately, Tencent is buying its shares to offset Prosus’ selling. 
• Prosus’ stake in Tencent has now edged below 23%, a little over seven months since dipping below 24%.
• On an implied stub and relative value, Prosus is elevated to Tencent, suggesting an unwinding of the stub.

• A bit over three years ago I re-wrote on Tsi Holdings (3608 JP). Then? EV/Revenue and EV/EBITDA of 0.03x and 0.5x respectively. I pounded the table. 
• My recommended trade: “Buy the stock (preferably from cross-holders interested in selling). Buy with both hands. Buy a lot. Buy more later. Pressure the company to go private.”
• Since then, total return has been +295%. Today they announced another buyback. Tomorrow morning it gets done. Details details details!

• Cloud Village (9899 HK)‘s stock price has doubled over the last quarter and the increased market cap should lead to global index inclusion in August. 
• Short interest in Cloud Village (9899 HK) is at an all-time high and has increased in lockstep with the stock price.
• Cloud Village (9899 HK) has outperformed Tencent Music Entertainment Group (1698 HK) and now trades at much higher valuations. A pair trade looks attractive here.

• An increase in the stock price and free float should result in Vishal Mega Mart (VMM IN)‘s inclusion in a global index in August.
• Estimated passive buying is 191m shares (US$312m; 5.8x ADV; 15.4x delivery volume) at the close of trading on 26 August.
• The index inclusion could take the stock higher in the short-term but buyers in the June placement could be looking for an exit.

• DFI Retail’s strategic shift from portfolio investor to focused operator has unlocked over US$900 million, with US$600 million returned to shareholders via a US¢44.3 per share special dividend announced yesterday.
• Underlying profit rose 39% in 1HFY2025, driven by lower financing costs and strong performance in the Health & Beauty segment.
• On its investor call, DFI Retail Group Holdings (DFI SP) acknowledged sector headwinds and outlined plans for cost control, margin focus, and digital monetisation to offset weak revenue growth.

• We expect JD.com to report C2Q25 revenue/adjusted operating profit growth of 16%/(63%) YoY, which is 2%/(50%) vs. cons. due to the takeout subsidies.
• Despite the surge in new users, we remain skeptical on the ST effectiveness of food delivery (FD) cross-selling. We expect 2025 FD losses at RMB29bn.
• We keep JD as SELL and cut TP from US$25 to US$24.

• Playboy, Inc. (Nasdaq: PLBY) is undergoing a transformation to an asset-light business model centered around its iconic brand, positioning the company for sustainable profitability
• The strategy is starting to yield tangible improvements in profitability, as evidenced by its return to positive adjusted EBITDA in Q1 2025.
• Playboy’s current valuation (2.7x EV/2025 sales) does not fully reflect its long-term earnings potential. As licensing continues to scale and margins expand, the company is poised for a meaningful re-rating.

• We compile our selection of small and mid-cap names with our desired characteristics of high dividend yields, value, and margin of safety.
• We add Asian Terminals (ATI PM) to our value conviction list. Read Asian Terminals Inc (ATI PM): Steady And Cheap Container Port Terminal Operator 
• Our top picks are Asian Terminals (ATI PM), The Keepers Holdings (KEEPR PM), Taste Gourmet (8371 HK), Philippine Stock Exchange (PSE PM), and Ginebra San Miguel (GSMI PM). 

• Based on the successful application of self-developed technology, Boxihe has embarked on a completely opposite path to international brands, highlighting the “cost-effectiveness” in outdoor sports industry, thus achieving high growth.
• Creating the next blockbuster and diversifying product portfolios greatly test Boxihe’s operational capabilities, with some uncertainties. Boxihe may face the troubles of finding a new growth point in long term.
• Performance growth could remain high in the short term. Post-money valuation after Series B Financing reached RMB2.8 billion.Valuation of Boxihe could be higher than Li Ning but lower than Anta.

• Omnicom Group’s second-quarter 2025 results reflect a mix of steady performance, strategic advancement, and ongoing operational challenges.
• Organic growth hit 3%, aligning with company expectations, and non-GAAP adjusted EBITDA margin remained stable at 15.3%.
• Non-GAAP adjusted net income per share increased by 5.1%, reaching $2.05.

• On July 20, 2025, Sona Blw Precision Forgings Lt (SONACOMS IN) announced a $20 million joint venture with China’s JNT to enter the world’s largest EV market.
• The move aims to capture growth in China’s dominant EV market, aligning with the company’s new strategy to expand into eastern markets
• An EV slowdown is expected in FY26 while the China JV and railway business, despite driving future growth from FY27 onwards, are expected to lower margins.

• Chow Tai Fook Jewellery (1929 HK) saw lowest degrowth in retail sales value(RSV) in Q1FY26 among last few quarters.
• Same-Store sales growth showed a clear sequential improvement across key regions. Mainland China self-operated stores saw the decline narrow sharply.
• Driven by store optimization and brand transformation, earnings quality should sustain. At 16.9x P/E valuation on FY26e EPS, we believe investors will increasingly view CTF as a long-term structural winner.

• Prestige Hospitality Ventures Ltd (1831338D IN) is looking to raise about US$317m in its upcoming India IPO.
• Prestige Hospitality Ventures Ltd (PHVL) is part of the Prestige Group. It is a hospitality asset owner and developer focused on luxury, upper upscale, and upper midscale properties in India.
• In this note, we talk about the company’s historical performance.

• Woolworths Group’s half-year financial performance for FY 2025 exhibits a mix of achievements and challenges, emphasizing the competitive and dynamic retail landscape.
• The company’s diverse portfolio, including Australian Food, New Zealand Food, BIG W, and other segments, reflected varied growth patterns influenced by external and internal factors.
• Starting with the positives, Woolworths Group achieved a 3.7% increase in group sales, reaching $35.9 billion, with eCommerce sales showcasing robust growth of 20%.

• Although corporate governance in Japan has gradually improved over the past decade, many listed companies have failed to achieve their management goal of sustainable growth in corporate value.
• TSE seems to believe that the underlying problem is that management does not recognize “capital costs” and is therefore unable to concentrate resources on businesses that can secure sufficient margins.
• I believe that the problem stems from a lack of awareness that free cash flow belongs to shareholders and that companies have a fiduciary duty to shareholders.

• REA Group Limited has reported strong growth in its third quarter of the fiscal year, underscored by significant yield increases across its operations.
• The company posted a 12% rise in revenue to $374 million, alongside a 12% boost in EBITDA, excluding associates, reaching $199 million.
• These results reflect favorable market conditions and strategic initiatives implemented by the company.

• We are reiterating our Buy rating, $65 price target and projections for Build-A-Bear Workshop after visiting stores in Long Island and Connecticut.
• Even though we are in the dog days of Summer, Build-A-Bear has seen no slowdown in innovation, launching their first round of licensed Mini Beans (Hello Kitty and Friends), leveraging the recent Superman movie release, beginning to roll out new fixtures for Mini Beans, expanding their relationship with cheer-leading leader Varsity Sports and launching new Giant licensed characters (Bluey).
• With Halloween on track for release next month, we believe there has been no slowdown in momentum for the company, and we remain confident in Build-A-Bear’s potential to drive further top and bottom line upside; as such, we reiterate our Buy rating and $65 price target for BBW.