Consumer

• The policy turning point of high-value consumables/medical device industry is not far away. When a mature pricing mechanism is formed, it’s the time when industry expectations reverse and stabilize.
• There’s rumor that AstraZeneca is in discussions for a US$15 billion partnership focused on ivonescimab. Although we understand that investors have been anticipating a big deal, we remain cautious.
• After the outstanding IPO debut, IFBH’s share price continued to fall. The capital frenzy has led to the valuation to deviate seriously from the fundamentals. The outlook is not optimistic.

• The benefits of China Medical System (867 HK) China Medical System (867 HK)’s secondary listing on the SGX are more apparent than real. 
• Should Meituan (3690 HK) continue its Brazil market launch, Prosus NV (PRX NA) will have little reason to continue to hold on to its Meituan stake.
• Look for value to be realised for Japanese banks with low PBRs and PERs, AND high cross-holdings as a percentage of market cap or book value through better capital allocation.

• Some companies adopt policy of not granting performance-based compensation to outside directors to ensure independence. Given this, outside directors may have little incentive to leverage skills and knowledge in value-creation.
• Most independent board members also serve as board members of other companies, but very few companies have set clear standards for the number of concurrent positions that may be held.
• Although few companies disclose the criteria for the tenure of independent directors, the longest term was 12 years. ISS has set this as the standard in its voting guidelines.

• KOSPI 200 is a Korean blue-chip index that tracks the 200 largest and most-liquid names listed in the KOSPI section of the KRX. Here we look at Dec25 index rebal.
• We expect up to 6 ADDs and 6 DELs in the KOSPI 200 index during the December 2025 index rebal event based on the latest available data.
• This is up from 4 ADDs and 4 DELs last month, but there is a lot of potential sector threshold borderline volatility to change both the number and the names.

• Patek Philippe is a premier watchmaker with a rich history and unmatched craftsmanship
• The brand is differentiated from others like Rolex by its exclusivity, handmade quality, and tradition of creating the finest watches in the world
• John Reardon from Collectability provides insights into what makes Patek Philippe a special and highly sought-after brand

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

• As reported by Gaudenz Schneider , South Korea left interest rates unchanged on July 11th, but significant uncertainty from US Tariffs policies pose a challenge for its economy.
• In our previous KOSPI 200‘s insight we flagged an ‘overbought warning’, yet the index extended its rally for four more weeks, closing at 428 — near its all-time highs (449).
• The index is now off the chart on our time model and approaching the upper limit of our SHORT price model. A WEEKLY pullback is imminent, but may be short-lived.

• The TJX Companies, Inc. delivered solid financial results for the second quarter of fiscal year 2025, citing exceptional execution of their flexible off-price business model and strong customer transaction-driven sales growth across all divisions.
• The company’s ongoing commitment to delivering excellent value and an exciting merchandise assortment continues to resonate with consumers globally.
• This effectively reflects in the company’s decision to raise the full year guidance for both pretax profit margins and earnings per share.

• Pandora A/S, a renowned name in the global jewelry market, delivered a robust financial performance during the first quarter of 2025, aligning well with its strategic objectives.
• The company reported a solid 6% like-for-like growth, translating into a 7% organic increase, attributed to the adherence to its Phoenix strategy and the mission to develop a comprehensive jewelry brand.
• Pandora’s ability to maintain growth amidst a volatile global economic environment is a testament to its strategic positioning and operational resilience.

• We are reiterating our Buy rating, projections and $22.50 price target for Betterware de Mexico as we look at key trends for 2HFY25 and beyond.
• We believe BWMX has remained weak in 2025 (down 14% YTD) as worries remain over the health of the Mexican consumer and a material 1Q25 miss, which also resulted in a 20% cut in the annual dividend rate.
• While management maintained the 2025 annual guidance, we believe the Street is already projecting the company will have to reduce overall guidance.

• Gen Z is an important & sometimes challenging target demo for brands to reach.
• The Brag House model is designed to enable brands to connect to Gen Z casual gamers via multiple channels.
• Based on user behavior on its platform, TBH expects to build a database that can provide brands insights to customize offerings and marketing strategies & potentially lower customer acquisition costs.

Greggs’ H125 trading update showed sales growth slowed in June as high temperatures affected footfall and purchasing patterns. Although the company benefits from sales of cold drinks, including its own over-ice drinks that are in only part of the estate and third-party drinks, there is both an overall volume and a gross margin impact versus other products that have sold less well. Therefore, following challenging weather conditions in January and June and with hotter weather forecast in July, management anticipates FY25 operating profit could be modestly lower than reported in FY24. We reduce our FY25 profit estimate by c 10%.

• Puig, a significant player in the premium beauty market, reported strong financial performance for the year ending December 31, 2024.
• The company achieved record net revenues of EUR 4.8 billion, indicating a double digit reported growth of 11.3% and a 10.9% like-for-like increase, which outpaced the premium beauty market.
• Gross margins improved to 74.9%, a reflection of the desirability and strength of Puig’s brand portfolio.

• Crizac has had a successful IPO, pricing at 28x PE. 
• Before any aftermarket premium, the company is already at a significant valuation premium to other global education stocks.
• CRIZ has too many risks to justify a high rating. 95% of revenues come from India-UK student placement, aggregating applications for 10,362 agents.   

• Q3 revenue/OP miss vs. our est. on weaker-than-expected Uniqlo International – FX and China weakness key drivers.
• Japan and Western markets continue to outperform; U.S. and Europe now rival China in size.
• FY company guidance unchanged but rising risks to next FY from tariffs and persistent China underperformance.

• Sa Sa International Hldgs (178 HK)‘s 1Q FY26 update provides evidence for a business recovery as turnover grew 4.7%, against a YoY drop in the last 5 quarters.  
• Resurgence in mainland tourist arrivals is a driver. The start of 2Q FY26 also looks good, as this has increased 21.8% YoY in the last 15 days.
• At 1.55x P/B, it is only 7% above the trough since 2020. Also, it traded at a higher multiple in FY20-22 when it was loss-making. 

• Q1FY26 Decline: JLR’s Q1FY26 wholesale volumes dropped 10.7% YoY and 21.7% QoQ, signaling a tougher-than-expected environment amid planned model transitions and tariff shocks.
• US Tariffs & Jaguar Phase-Out Drag Down Sales:Pause in US shipments post-April’25 and wind-down of legacy Jaguar models led to sharp volume contraction in key markets, particularly UK and North-America.
• Luxury Mix Strong, but Growth Uncertain:While 77.2% of Q1FY26 volumes came from high-margin models (Range Rover/Defender),growing reliance on a few nameplates adds concentration risk in a sluggish global macro environment

• Nike Inc. is undertaking a major overhaul of its global supply chain to reduce its reliance on Chinese manufacturing for footwear destined for the U.S. market. The move comes as the sportswear giant faces mounting tariff pressures and falling sales.
• Currently, China accounts for about 16% of Nike’s footwear imported into the United States, Matthew Friend, Nike’s chief financial officer, said during an earnings call on Thursday. The company wants to cut that figure to a “high single-digit percentage range” by May 2026, shifting production to other countries to offset rising tariff costs.
• Nike estimates tariffs imposed by the Trump administration will add roughly $1 billion to its expenses, highlighting the urgency of diversifying its sourcing strategy.

• We are reiterating our Buy rating, $4 price target and projections for Vince as we look at key trends for 2HFY25 and beyond.
• We believe, more than any other player in our universe, VNCE has been affected by worries over tariffs; given that the company registered over 60% of their goods from China in FY24, this is not surprising.
• That said, we believe Vince management has done yeoman’s work in quickly diversifying the supply chain and focusing on the key longer term drivers of the business, from continued store expansion and upgrades, increasing wholesale penetration, international growth, deepening the focus on men’s and adding new categories to the store mix to become even more of a lifestyle brand.

• In cumulative Q3 FY08/25, revenue was JPY51.4bn (+10.7% YoY), with operating profit at JPY8.4bn (+19.1% YoY).
• The company opened 31 facilities and closed seven, totaling 688 facilities and 18,574 rooms by end-Q3 FY08/25.
• Personnel expenses rose 9.2% YoY, rent increased 11.8% YoY, and SG&A expenses rose to JPY5.1bn (+0.7% YoY).

• The trend of AGMs being concentrated in the last week of June remains unchanged, and this’s seen as attempt to divert shareholder attention and reluctant attitude toward dialogue with shareholders.
• The rise in share proposals has made some managers wary, and we are not optimistic about pushing AGM later dates and disclosing annual securities reports well in advance of AGM.
• There are gap between what is stated and what actually happens in “the reasons for not introducing anti-takeover measures,” “compliance with constructive dialogue with shareholders,” and disclosure of “TSE’s requests.”

• CIE’s €24/share partial offer closed with just 9.8% uptake, suggesting investors see more value ahead. No proration required. Treasury shares may support future free float improvements.
• The weak subscription outcome aligns with our DCF-based fair value of €31–33/share. Market consensus also points to €32, underscoring material undervaluation and long-term upside potential.
• Strong fundamentals, 4.0% yield, and attractive peer comps reinforce the case. Investors chose to stay long, confirming confidence in CIE’s strategic direction, liquidity plans, and re-rating potential.

• Toyota Industries (6201 JP)’s preconditional tender offer from Toyota Fudosan is susceptible to a bump if there is enough vocal opposition from minorities. 
• In July, two public pieces have sharply criticised the offer – the Asian Corporate Governance Association (ACGA) on 2 July and Sloane Robinson Investment Management on 8 July.
• Some of the criticism has merit, while others do not. Nevertheless, these letters are the first and right step to agitate for terms that are closer to TICO’s intrinsic value.

• Market focus is now on retroactive impact — existing treasury holdings above 10% must be canceled within a year, flipping earlier expectations that they’d be exempt.
• DP’s fast-tracking the bill, targeting a September vote and mid-October go-live, with this Commercial Act tweak topping their legislative priority list.
• Excel below shows 230 stocks above the 10% treasury cap, including 35 large-caps — prime candidates for momentum trades as the mandatory buyback burn bill gains steam.

• Travel Food Services leads India’s airport QSR sector with a 24% market share and expands internationally through strategic partnerships, capitalizing on the growing global travel F&B market. 
• With a debt-free balance sheet and robust margins, TFS ensures scalable growth through strategic joint ventures and partnerships, minimizing capital expenditure while expanding operations. 
• With its diverse brand portfolio and a presence in high-traffic airports across India and abroad. The company’s expansion into new airports ensures sustained growth in the travel food services sector.

• Zhou Liu Fu Jewellery (6168 HK) has an impressive debut, but it is currently expensive, at 4.33x PEG with just a 3-year EPS CAGR of 4.7%.
• It is overpriced by ROE vs. P/B, given it stands higher than the best-fit line. Its inferior market position in the industry makes it deserve to trade below.
• At 20% discount to Chow Tai Fook Jewellery (1929 HK), it should value at HK$27.80. Even at par, it still implies an 8.5% downside. 

• As per news reports, Prosus NV (PRX NA) could look to sell some/all of its Meituan (3690 HK) stake, worth around US$4bn
• Prosus has held its stake for a few years, owing to the dividend payout by Tencent, but Meituan appears to be planning to take on one of its subsidiaries.
• In this note, we will talk about the possible selldown and other deal dynamics.

• Brightstar Lottery (fka IGT) announced a better than expected capital return program following the closing of the Apollo transaction.
• Brightstar will pay a $3 special dividend (7/14 ex date) and buy back $500MM of stock.
• Brightstar is in a quiet period, but I would expect it to aggressively buy back stock following its earnings report on July 29, 2025.

• Nameson Holdings (1982 HK) reported FY25 revenue/net profit declines of 0.6%/5.3% YoY, respectively, primarily driven by a margin contraction of approximately 40 basis points.
• The company declared a 1.5-cent final dividend (total dividend 11.3 cents/share), maintaining a 75% payout ratio, resulting in a 14% yield on the current share price. 
• The stock trades at a 5.5x FY26e PE with a 3x EV-EBITDA and a 14% dividend yield, assuming the company can maintain flat earnings for FY26.

• We are reiterating our Buy rating, $20 price target and projections for Lands’ End as we look at key trends for 2HFY25 and beyond.
• We believe Lands’ End is poised to move into the next phase of the transformation of the company into a higher margin, higher return global brand, as the recently launched licensing initiatives begin expanding the overall category levels, as opposed to shifting prior owned categories into licensing relationships which, while driving higher return on assets, led to YoY revenue declines.
• Further, with continued international expansion (both owned and licensed) on tap, further key wins at Lands’ End Outfitters and the potential to continue to drive higher returns (and sales) in the core business as the company shifts the business model, we believe Lands’ End remains well situated to drive further top and bottom line upside, and we reiterate our Buy rating and $20 price target.

• We are reiterating our Buy rating, $40 price target and projections for JAKKS Pacific as we look at key trends for 2H2025 and beyond.
• With toy production, especially on the lower end, firmly established in China, and with limited near term options, JAKKS will, as they have done throughout their 30-year history, have to transform to maximize overall returns.
• We believe management has the financial firepower, relationships and product offerings to maintain their strong market position and once again quickly return to driving solid top and bottom line growth.

• We are reiterating our projections as we look ahead for Vera Bradley as we enter 2Q earnings season.
• Give the tumultuous last year, with Project Restoration launched and almost immediately abhorred by the company’s OG shoppers, management then rethinking and softening the impact and reviving key pieces of the prior business model, followed by the recent resignation of the prior CEO and CFO, a new CFO and Executive Chairperson hiring and search for a new CEO, VRA investors can be excused for suffering a case of whiplash.
• That said, we believe there remains a basis for the company to build on; given that we do not know where the ultimate goal for Vera Bradley is currently, we are rating VRA a Hold.

• Several Japanese companies jumped onto the OBaaBM/TABaaBM (Own/Talk-About-Bitcoin-as-a-Business Model) last fall to this spring as Microstrategy Inc Cl A (MSTR US) shares went up and bitcoin did too. 
• Yesterday, resin coating/injection molding product maker Ikuyo Co Ltd (7273 JP) announced an M&A Policy, and a Shareholder Benefits Program where shareholders will “win” amounts of bitcoin by lottery.  
• Ikuyo expects revenues +955% this year. Details are sparse. The shareholder structure has red flags. The CEO sold himself half the company in Feb for peanuts. Forewarned. But it’s interesting.

• In today’s Morning Views publication we comment on developments of the following high yield issuers: Tata Motors, Nissan Motor
• UST yields rose yesterday, ahead of an auction cycle beginning today. The UST curve bear steepened, with the yield on the 2Y UST rising 1 bp to 3.90%, while that on the 10Y UST climbed 3 bps to 4.38%.
• Equities retreated from record high levels after US President Donald Trump unveiled his tariff plans for countries that have yet to secure a trade deal with Washington. The S&P 500 fell 0.8% to 6,230, while the Nasdaq was down 0.9% at 20,413.

• Liuliu adopts a light asset model for cost control. Through OEM production model, Liuliu has avoided the risk of heavy asset investment, so its gross margin is higher than peers. 
• In the context of fierce competition, how to keep high performance growth while maintain profit margin is not easy.We’re not optimistic about Liuliu’s  “single product category + marketing/promotion driven” business model.
• Sequoia ceased to be Liuliu’s Shareholder in 2025, right before this IPO, which is not a good signal. In our view, valuation of Liuliu should be lower than peers.

• We are reiterating our Buy rating, $65 price target and projections for Build-A-Bear as we look at key trends for 2HFY25 and beyond.
• We believe the company remains ideally positioned, with multiple drivers in store, internationally and third party operations to register top and bottom line upside for 2H and beyond, and to continue to capture further margin expansion.
• Further, we believe there remains online opportunities to continue to expand the overall Build-A-Bear universe.

• In this edition: • Shell | 2Q25 update: a clear profit warning • Dutch household consumption | up 1.1% YoY in May • Corporate agenda | week 29 – 34

• We are reiterating our Buy rating, $23 price target, and projections for Guess?
• as we look at key trends for 2HFY26 and beyond.
• GES, trading at 7.2X our FY26 EPS, has remained fully in “show me” mode with investors since the rag and bone acquisition (April 2024) and weakness in Guess?

• T&D Holdings and HOYA, two March fiscal year-end companies that filed their annual securities reports more than 2 weeks ago this year, have previously filed their reports 2-3 weeks earlier.
• Only two companies will revise articles of incorporation this year and postpone the record date. Most companies will hold AGM in June next year and file reports just before AGM.
• Since institutional investors decide their votes based on various aspects of the company as a whole, companies should disclose their annual securities reports well in advance of AGM.

• The DigiPlus Interactive (PLUS PM) share price has slipped from a peak of 65 Pesos on June 17th to under 30 Pesos/share as gaming restriction proposals dampen sentiment.  
• The bill proposed by Senator Gatchalian prohibits e-wallets, imposes high minimum cash-ins, and stricter advertising regulations. In addition, the Finance department is proposing a tax on online gaming. 
• The stock now trades at 8.3x PE FY25e. The company has announced a buyback of 6 billion pesos (5% of outstanding shares on current market capitalization). 

• A group of shareholders are looking to raise US$184m from selling their respective stakes in Marui Group (8252 JP) .
• While the deal shouldn’t come as a surprise, given the ongoing cross-shareholding unwind narrative in Japan, the timing of such a selldown isn’t always certain.
• In this note, we will talk about the placement and run the deal through our ECM framework.

• TFS operates QSRs and lounge in airports. They are present in the top 14 airports in India accounting for 26% of Indian-airport QSR and ~45% of the Indian-airport Lounge revenues
• FY26 performance is expected to be flattish as 1H results will lap impact of Adani operated airports being moved from TFS books to Joint venture with 25% stake.
• FY27 onwards growth is estimated at 15+% with EBITDA margins of 34-37%. We estimate FY27 revenues of ~2,000cr with PAT of 450-500cr implying the deal is being priced at 30-33x

• Travel Food Services Ltd (1450229D IN) is looking to raise about US$233m in its India IPO.
• Travel Food Services Limited (TFS) operates a network of travel quick service restaurants (Travel QSRs) and private lounges in airports.
• We have looked at the company’s past performance in our previous notes. In this note, we will talk about the RHP updates and IPO valuations.

• Extra Edition of the Broker Call Report

• Q3 earnings risk skewed to upside: we forecast sales/OP of ¥857b/¥171b vs. Street’s ¥826b/¥152b.
• Domestic Uniqlo trends strong; international segment likely resilient despite Inditex’s headline miss.
• Tariff impact likely reiterated but remains a FY26 issue, not a near-term earnings swing factor.

• In today’s Morning Views publication we comment on developments of the following high yield issuers: Health and Happiness (H&H), Tata Steel
• The US market was closed for Independence Day on Friday. US President Donald Trump passed his signature tax cut and spending Bill into law on Friday, after it was approved by Congress in a 218-214 vote on Thursday.
• The fiscal package includes tax cuts, lower spending on social programmes (e.g. federal food stamps and college student loans) and the elimination of tax benefits encouraging the use of clean energies. The non-partisan Congressional Budget Office estimated that the new legislation will add more than USD 3 tn to the country’s deficit over the next decade.

• The company, better known as NielsenIQ, describes itself as a leading global consumer intelligence company positioned at the nexus of brands, retailers and consumers.
• The company is private equity backed with a majority stake owned by Advent International.
• With revenues over the last three months relatively flat versus the year prior, it will be “interesting” to see how (or if) the market “embraces” this company. 

• United Arrows is best known for building its own chains but has had a choppy few years spent fixing merchandising, supply chains and a poor e-commerce unit.
• It now believes it can take a leaf from the playbook of Mash Holdings by signing promising overseas brands as a way to accelerate growth.
• The first of these is the Korean brand, Nice Weather, a sort of lifestyle convenience store beloved by Gen Z.

• We are reiterating our Buy rating.
• projections and $22.50 price target for Betterware de Mexico after reviewing the July 2025 catalog.
• The catalog story for 2025 has been greater newness, slowly reducing the number of discounted SKUs to levels at or below last year and raising overall pricing (to the highest levels in the last three years).

• I summarise the latest spreads and newsflow of merger arb situations we cover across Hong Kong, Australia, New Zealand, Singapore, Japan, Indonesia, Malaysia, Philippines, Thailand and Chinese ADRs.
• Highest spreads:Mayne Pharma (MYX AU), Yichang HEC Changjiang Pharma (1558 HK), Insignia Financial (IFL AU), ENN Energy (2688 HK), Seven & I Holdings (3382 JP), Santos Ltd (STO AU).
• Lowest spreads: Bright Smart Securities And (1428 HK), Hainan Meilan International Airport (357 HK), New World Resources (NWC AU), Humm Group (HUM AU), Avjennings Ltd (AVJ AU). 

• The review period for the September rebalance of the HSCEI INDEX ended on 30 June, the results will be announced on 22 August and will be implemented on 5 September.
• Pop Mart International Group L (9992 HK) could be added to the index while J&T Global Express (1519 HK) could be deleted from the index.
• There is a possibility of Pop Mart International Group L (9992 HK) being added to the Hang Seng Index (HSI INDEX) as well.

• Aequitas Research’s weekly update on the IPOs, placements, lockup expiry and other ECM linked events that were covered by the team over the past week.
• On the IPO front, next week will see a large number of listings across the region.
• On the placements front, given the HK and US holidays and approaching earnings season, there were only a few deals in the past week.

• After the Offeror for Shandong Fengxiang (9977 HK) fulfilled pre-cons on the 3rd July, the Composite was dispatched on the 4th July (but dated 5th July). 
• The EGM/H-share class meeting will take place on the 24th July. Settlement should be on ore around the 11th August, well ahead of my prior estimate.
• Trading at a gross/annualised spread off 4.2%/49.6%. Get involved if illiquid arbs are your bag.

• Takeover defenses peaked in 2008 and have been gradually declining. The direct cause of the difficulty in maintaining advance warning-type takeover defenses is the increase in the foreign shareholding ratio.
• Even companies that don’t have preemptive anti-takeover may take countermeasures when the risk of takeover increases, but with the publication of “Guidelines on Takeover Defense Measures,” transparent practices are expected.
• Not only parent-subsidiary listings, but companies that cannot transform management to generate more cash from holding cash on hand and assets will be unable to continue in their current situation.

• As the traffic dividend of e-commerce fades, Three Squirrels is facing challenges.The offline predicament is essentially a conflict between the online traffic thinking mode and the logic of physical retail. 
• Three Squirrels hasn’t built a true moat, and the high selling expenses would continue to erode the transformation space, leading to rely more on online channels and quick customer traffic.
• We have concerns on the expansion outlook and growth sustainability. Our forecast is CAGR could be 15% in 2025-2027. Valuation may not meet expectations if growth continues to slow down.

• On July 2nd, Gabriel India (GABR IN) announced its strategic restructuring plan, merging key entities to diversify its business and unlock significant shareholder value.
• The merger increases promoter shareholding from 55% to 63.5%, with projected EPS accretion of 41%.
• This move positions Gabriel India as a multi-product leader, enhancing global OEM partnerships and boosting market presence in key automotive segments.

• In 1H FY11/25, revenue was JPY18.7bn (+13.2% YoY), with operating profit of JPY321mn and net income of JPY186mn.
• Wholesale unit sales increased, retail unit sales declined, but higher average unit prices boosted revenue and gross profit.
• SG&A expenses decreased by 3.3% YoY, contributing to improved profitability, with a workforce of 1,037 employees.

• Chewy Inc., a prominent player in the pet e-commerce space, presented an overall positive first-quarter performance for fiscal year 2025, emphasizing growth initiatives and financial health.
• Chewy reported an 8.3% year-over-year increase in net sales, reaching $3.12 billion, surpassing their guidance estimates.
• This growth was largely driven by robust demand across consumables and health and wellness product categories, with a notable year-over-year hardgoods sales increase of 12.3%.

• TripAdvisor has been thrust back into the spotlight following activist investor Starboard Value’s disclosure of a 9% stake in the company.
• The move comes on the heels of major strategic shifts at the travel-review giant, including the completion of its buyout of Liberty TripAdvisor Holdings, the removal of its dual-class share structure, and a renewed push to stabilize its legacy business while scaling up its Viator and TheFork segments.
• The investment, estimated at around $160 million, instantly made Starboard one of TripAdvisor’s top shareholders and sent the stock surging more than 16% on the news.

• The latest financial results of Restoration Hardware Holdings, Inc. (RH) for the first quarter of fiscal 2025 portray a company navigating multiple challenges with a strategic approach aimed at long-term growth rather than immediate short-term gains.
• RH reported a 12% increase in revenue, attributed to their significant investments in product elevation and platform expansion despite facing uncertainty due to tariffs and a struggling housing market.
• A key positive indicator for RH is their international expansion, particularly in Europe, where demand at RH England increased substantially by 47% in the gallery and 44% online.

• Considering that it took seven years to finally begin reducing policy-held shares, it seems reasonable to assume that many companies will begin seriously incorporating capital costs into management in 2028.
• TSE states that while Prime Market has most companies whose initiatives are out of step with investors’ perspectives, companies whose initiatives are highly regarded by investors show superior stock performance.
• TSE appears to be placing its hopes on efficient market hypothesis. However, investors need to see increase in capital profitability that will convince them of the path to value creation.

• CarMax delivered robust results in its fiscal 2026 first quarter, showcasing strengths and pinpointing areas for growth.
• Positives included achieving its fourth consecutive quarter of positive retail unit comp growth and double-digit earnings per share (EPS) expansion, marking a 42% increase in EPS year-over-year.
• This growth was attributed to a 9% increase in total retail unit sales, solid retail gross profits per used unit at a historic high, and an effective omnichannel shopping model that blends in-store and online customer experiences.

• The J.M. Smucker Company’s recent earnings provide a mix of insights into both the challenges and strategic maneuvers that are shaping its fiscal 2025 outlook.
• The company is grappling with significant cost pressures, notably from increased green coffee costs and the impact of tariffs, which has somewhat reshaped its earnings expectations.
• Despite these hurdles, Smucker is employing a balanced approach, taking firm steps to maintain market share and profitability through pricing strategies and focused marketing investments.

• The Kroger Co.’s recent earnings highlighted a period of strategic adjustments and strength in key segments that influenced the company’s performance.
• As outlined by CEO Ronald Sargent, these shifts encompass both operational and strategic domains, aimed at positioning the company for sustainable growth while responding to external market forces.
• On the positive side, Kroger reported a solid first quarter for 2025 with identical sales growth, excluding fuel and adjustment items, at 3.2%, and a 4% increase in adjusted net earnings per diluted share to $1.49.

• Netflix, once the poster child for prestige TV and high-budget scripted series, is now rewriting its own playbook.
• In a strategic pivot to broaden its appeal, the streaming giant is aggressively moving into unscripted entertainment, including music competitions, celebrity interviews, global live events, and talent shows.
• Among the most notable developments, Netflix is set to debut Building the Band, a reality competition blending the secrecy of Love Is Blind with the structure of The Voice, hosted by Backstreet Boys’ AJ McLean.

• Patanjali Ayurved (holding company of Patanjali Foods (PATANJAL IN)) acquired a 73.555% majority stake in Magma General Insurance for approximately INR 4,500 crore.
• Patanjali seeks to diversify, leveraging its brand and distribution network to tap India’s underpenetrated insurance market, aligning with IRDAI’s “Insurance for All by 2047” vision.
• Magma General brings established operations, a 26% GWP CAGR, and a network of 18,000 agents, providing an immediate platform for market expansion and growth.

• Context: The REA Group Ltd (REA AU) vs. News Corp (NWS AU) Price-Ratio has deviated more than two standard deviations from its one-year average, presenting a potential relative value opportunity. 
• Highlights: Statistical mean reversion suggests going long REA Group Ltd (REA AU) and short News (NWS AU). A target return is provided. News Corp is the majority owner of REA.
• Why Read: Essential for quantitative traders seeking mean-reversion opportunities, with detailed execution framework, risk management protocols, and historical simulation showing the statistical basis for this relative value play.

• SeedWorks International Ltd (1441147D IN)  (SIL) is planning to raise about US$115m in its upcoming India IPO. 
• SIL is a seed research and development organization engaged in the research, production, and marketing of hybrid seeds.
• As per F&S Report, in FY24, the company ranked 3rd in cotton seeds, 4th in hybrid rice and pearl millet seeds, in terms of volume of seeds sold in India. 

• YUKIGUNI FACTORY CO., LTD. (hereinafter, “the Company”) produces, processes, and sells Maitake, which was the first in the world to be successfully mass- produced (with approximately 52% of the domestic production share), as well as a range of mushrooms (Eryngii, Buna-shimeji, Button Mushrooms, etc.).
• In recent years, the Company has also pursued the development of mushroom-based alternative meats as part of its efforts to create new value from mushrooms.
• 1) Through a vertically integrated value chain covering production, processing, and sales of mushrooms, the Company ensures strict quality control and stable year-round supply.

• Jumia Technologies AG’s first quarter 2025 financial results present a mixed picture of progress in cost management and challenges posed by external factors.
• On the positive side, the company demonstrated improvements in operational efficiency, particularly through measures such as targeted cost-cutting across logistics, staffing, and technology.
• These efforts have resulted in a reduction in fulfillment expenses per order and an overall decrease in cash burn, signaling effective cost control.

• Continental, Michelin, Bridgestone pivot to premium with local focus  
• MRF expands in EV, defence, and export markets amid capacity growth  
• Apollo restructures in Europe, bolstering premium bicycle

• Banks are offering US$500m of Alibaba Health Information Tec (241 HK) stock in order to allow Exchangeable Bond investors to hedge their exposure.
• Alibaba Health (AH) stock has been heading in the wrong direction for the past few years and it remains unclear if the EB offering was well flagged.
• In this note, we will talk about the deal dynamics and run the deal through our ECM framework.

• The precondition for the PAG privatisation offer for Shandong Fengxiang (9977 HK) is satisfied. The composite document will be despatched by 11 July. 
• Despite being a 39.9% discount to the IPO price, the offer is attractive compared to precedent transactions and peer multiples. 
• The scheme vote remains low-risk due to the irrevocables, the lack of protest votes at the recent AGM, and the signalling from PAG’s decision not to introduce a scrip offer. 

• Anjoy Foods Group (2648 HK), a quick-frozen food company in China,  raised around US$350m in its H-share listing.
• AFG was the largest quick-frozen food company in China in terms of revenue in 2023, with a market share of 6.2%, according to the Frost & Sullivan report.
• We have looked at the past performance and likely A/H premium in our previous note. In this note, we talk about the trading dynamics.

• Puregold Price Club (PGOLD PM) is now the largest groceries company by market share in the Philippines, recently overtaking SM Retail, through its Puregold and S&R Warehouse stores. 
• The company’s S&R Warehouse is a members-only big box retailer aiming at more affluent consumers, whilst Puregold stores cater for both Sari Sari (mom&pop) and less affluent consumers. 
• Puregold Price Club booked a solid start to the year, despite seasonal disruptions, with management remaining confident about the outlook for FY2025. Valuations are attractive. 

• Boxihe Outdoor Sports (BOS) is looking to raise at least US$100m in its upcoming Hong Kong IPO.
• BOS has delivered impressive growth, with a 122% revenue CAGR (FY22–24) led by its core Pelliot brand.
• Its shift from a pure online DTC model to include offline and distributor channels has broadened reach, while improving gross margins reflect strong pricing and cost control.

• On 2 July, Cosmecca Korea (241710 KS) announced that it plans to switch its listing from KOSDAQ to KOSPI. Cosmecca Korea is the third largest cosmetics ODM company in Korea.
• Cosmecca Korea’s ROE is similar to the average ROE of the comps. However, Cosmecca Korea’s P/B valuation is 36% discount to that of the comps.
• By switching its listing from KOSDAQ to KOSPI, there is an increasing probability of the Cosmecca Korea receiving higher valuations, narrowing the gap with its peers. 

• Wakefit Innovations (1684049D IN)  (WIL)  is looking to raise about US$231m in its upcoming India IPO. The bookrunners for the deal are Axis, IIFL, Nomura.
• Wakefit Innovations is direct‑to‑consumer and sleep and home‑solutions company, founded in 2016.
• According to the Redseer Report, the company was the largest D2C home and furnishings company in India by revenue in FY24.

• MAP Aktif is the sportswear subsidiary of Indonesian retail giant Mitra Adiperkasa.

• I wrote a deep dive on MAP Aktif in January 2022, during the depths of the COVID-19 pandemic.

• At the time, it was suffering from Indonesia’s large-scale social distancing restrictions. But I thought that it would eventually recover, continue growing its store count, and end up with a single-digit P/E ratio.

• China Travel International Investment Hong Kong (308 HK)‘s 1-week share price rally was driven by restructuring speculations. Yet, underlying operations have improved in 2H24.  
• Tourist attractions and hotel operations will stay decent in FY25, and more projects will come on stream to fuel profitability.
• Asset-Based valuation should be the focus, and its 0.49x P/B is inexpensive. Net cash now equals 8.2% of the share price. 

• Perfect Medical Health (1830 HK) reported a disastrous FY25 with revenues/profits down 19.1%/34.5% YoY. For H2 FY25, revenues/profits were down 25%/48% YoY. 
• The company saw a stabilization in its revenues QoQ for H2 FY25, and is now seeing a slight uptick in revenues/profits courtesy of revamped stores ramping up and cost-cutting measures.  
• With 23% of its market cap in cash/investments, a PE of 10.4x/8.0x for FY25/FY26e, respectively, the company has an appetizing dividend yield of 12.5% (assuming -4.5% YoY revenue growth).