Consumer

• We continue to be bullish about Workman’s back-to-basics strategy which has delivered a second straight year of record sales and profit, with same-store sales up 9%. 
• New president Koji Ouchi has just revamped the business under five core functional categories, as well as moving towards more mass-scale manufacturing and corporate franchising.
• The new strategy is part of a drive toward 1,300 stores by 2030.

• Benchmark Anchor for South Korean Growth Capital: The KOSDAQ 150 Index serves as the premier liquid equity benchmark representing the top 150 technology, biotechnology, and high-growth industrial companies listed on the KOSDAQ market of the Korea Exchange (KRX), capturing over 70% of total market capitalization while filtering out illiquid small-cap tail risk.
• High-Beta Thematic Concentration: The index offers concentrated fundamental exposure to structural secular trends—notably advanced biopharmaceuticals, artificial intelligence semiconductor equipment, high-purity battery materials, and robotics—generating elevated upside participation during liquidity expansions and tech capex cycles.
• Institutional Utility and Structural Churn: While serving as the definitive underlying benchmark for KRX-listed index futures, options, and exchange-traded funds (ETFs), the index faces recurring structural graduation risk as mature mega-cap constituents periodically migrate to the KOSPI main board, maintaining a high-volatility, mid-to-large cap growth profile.

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• Autoneum Holding AG (AUTN SW) is the global market and technology leader in acoustic and thermal management solutions for light and commercial vehicles, uniquely positioned to capture structural content-per-vehicle growth as automotive original equipment manufacturers (OEMs) transition toward electric and hybrid powertrains.
• The successful execution of the ‘Level Up’ operational program and the seamless integration of Borgers Automotive have substantially improved structural profitability, lifting EBITDA margins from 7.94% in 2023 to 10.43% in 2025, while sustaining robust free cash flow generation exceeding CHF 107 million annually.
• With strong cash conversion, a solid balance sheet, a top-tier Growth score (5/5), and an expanding dividend profile (DPS raised from CHF 2.50 to CHF 3.20), Autoneum presents an attractive risk-adjusted investment proposition trading at a compelling valuation relative to its cash-generation capability.

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• Zhejiang Taotao Vehicles (ZTTV HK) , provider of outdoor leisure and electrified mobility solutions, aims to raise around US$250m in its H-share listing.
• Zhejiang Taotao Vehicles (ZTV) is a global provider of outdoor leisure and electrified mobility solutions.
• In this note, we talk about the company’s past performance.

• FY2026 Results: Zixin delivered an exceptionally strong performance in FY26.
• Revenue up by 43.0% YoY to RMB607.5 million, primarily driven by solid contributions from the Product Innovation & Food Production segment, which accounted for 68.0% of total revenue, followed by Cultivation & Supply at 31.2% and Recovery & Recycling at 0.7%.
• Alongside the strong revenue growth, gross profit increased by 32.0% YoY to RMB177.3 million, while gross margin remained relatively stable at around 30%, consistent with previous financial years. 

• Following the lock-up expiry, pre-IPO investors have been selling stock, and the increased free float should lead to Meesho (MEESHO IN)‘s inclusion in a global index in November. 
• The stock is up 11% since we highlighted it as a potential inclusion a couple of weeks back.
• Positioning has surged in the last few trading sessions and there could be more to go before passives need to buy.

• Molycop has transformed Tega from a INR 1,800 Crore Business into a Global Mining-Consumables Platform with much Larger Scale and Reach.
• The key opportunity is not just Molycop’s earnings, but Cross-Selling, Cost Synergies, Margin Improvement and Gradual Debt Reduction.
• Q1 FY27 gives an encouraging starting point, but the next 2 to 3 years will decide whether the acquisition creates the expected value.

• Las Vegas Sands Corporation reported its second-quarter 2026 financial results, highlighting mixed performance across its key markets, Singapore and Macau, amid several external and operational factors.
• The company achieved strong EBITDA of $689 million at Marina Bay Sands (MBS) in Singapore, slightly above adjusted expectations by approximately $37 million when considering rolling play hold adjustments.
• This performance occurred despite typical seasonal softness and a notable decline in visitation by high-value patrons during the June World Cup football tournament.

• Kylian Mbappé’s decision to leave Nike after roughly two decades and become the face of On Holding’s push into football creates the kind of headline that reaches far beyond Wall Street.
• One of the world’s most recognizable athletes has walked away from the Swoosh just as Nike is trying to rebuild momentum across product innovation, lifestyle footwear and consumer culture.
• The symbolism is difficult to ignore: a younger challenger has recruited a global superstar while Nike is openly acknowledging weakness in Sportswear and Jordan Streetwear.

• Activists are losing legal leverage, but the defensive cost is rising: The Daejeon District Court’s August 12, 2026 ruling, which rejected Flashlight Capital Partners’ (FCP) derivative lawsuit against former directors, has temporarily shielded KT&G’s board. However, defending against the October 2024 hostile bid of 1.9 trillion won for Korea Ginseng Corp (KGC) has forced the company to commit to an unprecedented 360 billion won share buyback starting today (September 23, 2026), and to completely retire 1.8 trillion won in treasury shares.
• Regulatory arbitrage is closing rapidly: South Korea’s April 24, 2026 amendment to the Tobacco Business Act closed the synthetic nicotine excise tax loophole, instantly leveling the playing field for the “Lil” Heat-Not-Burn (HNB) portfolio against low-cost independent vape competitors. Simultaneously, the Ministry of Health and Welfare’s Sixth National Health Promotion Plan (2026–2030) outlines a transition toward a domestic retail price of 10,000 won per pack—representing a potential margin reset.
• The Kazakhstan “Eurasian Supply Hub” is a geopolitical hedge: The newly completed Almaty facility (April 2025), with its 4.5 billion stick capacity, successfully mitigates Russia-Ukraine war-related logistics disruptions and provides tariff-free access inside the Eurasian Economic Union (EAEU). However, regional EAEU excise harmonization agreements (targeting 35 EUR per 1,000 sticks) are placing downward margin pressure on combustible volumes, speeding up the transition to the higher-margin Lil platform.

• In response to an AFR article, IDP Education (IEL AU) disclosed that it rejected a non-binding proposal from Blackstone (BX US) at A$2.50 (received on 9 September).
• The offer is light on several metrics. Based on its weighted-average purchase price, Southeastern (which has quickly grown to be the largest shareholder) would need a A$3.00+ offer. 
• Several factors suggest that Blackstone is likely to return with at least a third offer. An offer of at least A$3.00 is required to pressure the Board to engage. 

• Chery Automobile raised around US$1.2bn in its Hong Kong IPO. The lockup on its pre-IPO investors is set to expire soon.
• Chery Auto is a Chinese passenger vehicle company which designs, develops, manufactures and sells passenger vehicles, including internal combustion engine vehicles and new energy vehicles, both domestically and overseas.
• In this note, we will talk about the lockup dynamics and possible placement.

• On 22 September, KT&G Corporation (033780 KS) announced that it plans to buyback and cancel 2.07 million shares (about 2% of outstanding shares) worth 360 billion won. 
• The Kazakhstan market is a prime example. KT&G began commercial production in Kazakhstan in March 2025. Its local market share expanded from 5.1% in 2022 to 9.6% in 2025.
• KT&G launched the “Lil Tonino Lamborghini” on 15 September in Korea. This product reduces the preheating time to 3 seconds versus competing products that typically take 10 to 20 seconds.

• Gentex Corporation’s second quarter of 2026 financial results showed net sales of $651.3 million, reflecting a slight 1% decrease compared to the same period last year.
• Automotive revenue declined approximately 3% year-over-year, primarily due to lower shipments in Europe, Japan, Korea, and China.
• This decline was partially offset by stronger demand in North America and higher vehicle content in Europe.

• Puregold is now the largest grocery retailer in the Philippines, catering for a broad spectrum of the population through its mass-market-focused Puregold Stores and member-only S&R Warehouse stores.
• PGOLD outperformed its major competitors in 1H2026, booking SSSG at double the rate of its nearest rival, with some trading down at Puregold Stores, and stronger growth at S&R.
• The company is pushing hard into private labels and is stepping up its store expansion. Management is cautiously optimistic for 2H2026 and maintains FY2026 guidance. Valuations remain attractive.

• Omnicom Group Inc. reported its second quarter 2026 results reflecting a continuation of its strategic repositioning following the integration with Interpublic, casting it as a more integrated operating company rather than a traditional holding company.
• The company achieved organic revenue growth of 6.1% from its Core Operations, which exclude assets held for sale or planned dispositions, driven primarily by strong performance in Integrated Media and experiential disciplines.
• Core Operations generated 91.4% of total revenue and 95% of adjusted EBITA, which grew 20.4% year-over-year, with EBITA margin improving nearly 200 basis points to 17.8%, largely attributed to the realization of cost reduction synergies.

• The J.
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• Smucker Company made one of the biggest bets in its history when it acquired Hostess Brands for roughly $5.6 billion in 2023, bringing Twinkies, Donettes, Ding Dongs and other familiar snack brands into a portfolio already dominated by coffee, peanut butter, pet food and frozen sandwiches.

• Asbury Automotive Group’s second quarter of 2026 reflects a period of transition driven by the ongoing implementation of the Tekion dealer management system (DMS).
• Approximately 70% of the company’s store base has been converted to Tekion, with completion expected by October 2026.
• While the rollout has involved significant investment and short-term operational challenges—such as managing dual legacy and new systems—the company reports early indications of improved productivity and operational efficiency in markets that have been on Tekion longest.

• We are rehashing our investment thesis on THS Maple ahead of Q4 and FY26 results, which are due by the end of October.
• We model Q4 revenue of $4.7M (+13% YoY) and FY26 revenue of $16.4M (+14% YoY).
• YAY recently celebrated its 50th anniversary, with its products now sold in over 30 markets after opening in the Philippines, Australia, and New Zealand this year.

• We are reiterating our Buy rating, $50 price target and projections for Build-A-Bear Workshop after visiting stores in Connecticut and Long Island.
• We believe, as we enter the heart of the Halloween season, Build-A-Bear, after a second round of new “furry friends,” is focused on once again driving strong overall results and margins, as the company is maintaining inventory discipline and reducing discounting following a somewhat difficult Summer season.
• Further, we believe demand for key Halloween related “furry friends” has remained strong beyond the almost immediate sell outs of the Posable Bat and Jumping Spider.

• Consumer Tissue is reportedly valued at €2.5–3.0bn, with a sale or spin-off under consideration and the strategic review expected to conclude during H1 2027.
• Our FY27 SOTP yields SEK299/share, supporting a SEK295 target price and 12.8% upside; neither full CMD margin delivery nor an above-range Tissue valuation is required.
• Risk/Reward is SEK250/295/316 bear/base/bull, with a probability-weighted value of SEK285/share; the SEK250 bear case assumes 11x RemainCo EBIT and €2.5bn for Tissue.

• Sa Sa (178 HK)‘s positive profit alert suggests net profit will reach HK$150m in 1H FY26/27, equaling a 2x YoY increase, ahead of the consensus. 
• 2H net profit has been historically better than 1H, meaning the market’s full-year forecast of HK$277m provides room for an upgrade. The Jul retail sales trend also supports this.
• Despite a 106% YTD rally, its 2.7x 12-month P/B is only slightly above average. With an ROE of 21-24% and net cash of HK$0.16, valuations remain not stretched.

• Pioneering Sensorless Powertrain & Genset Control Technology: SEDEMAC Mechatronics is a high-growth Tier-1 automotive electronics innovator commanding a dominant ~35% domestic market share in 2W/3W Integrated Starter Generator (ISG) ECUs and ~75%+ in Genset controllers, anchored by proprietary sensorless commutation (SLC) algorithms that eliminate physical position sensors.
• Exceptional Financial Compounding & Operating Leverage: Revenue nearly doubled from INR 5,306.53M in FY2024 to INR 10,583.80M in FY2026 (41.2% 3-year CAGR), while Net Income scaled from INR 58.78M to INR 1,035.80M, driven by gross margin expansion (10.20% to 18.82%) and EBITDA margins expanding to 21.34%.
• Strategic Expansion vs. Valuation & Capex Headwinds: Multi-segment scaling into combined ISG+EFI architectures, EV Motor Control Units (MCUs), and export markets (North America and Europe) provides long-term runway, balanced against near-term capex-driven negative Free Cash Flow (-INR 168.40M in FY2026), OEM client concentration, and premium valuation multiples at INR 3,098.00.

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• Games Workshop was already a high-return franchise; the surprise was that Warhammer’s reinvestment runway proved far larger than stagnant FY05/2013–FY05/2016 revenue implied.
• From FY05/2016 to FY05/2026, core revenue rose 5.3× and core operating profit 22× while average core capital employed increased only 3.1×.
• The broader 50-bagger setup combines proven economics, global portability, internal funding capacity, high incremental returns, substantial whitespace and a starting valuation that does not pre-price the runway.

• Crops Corporation (9428) is a Nagoya-based conglomerate best known as KDDI’s largest au/UQ Mobile retail agency in the Chubu region, but the segment that actually drives profit is a restaurant-property sub-leasing arbitrage business (Innovation Holdings/Tempo Innovation), generating 43% of operating profit from just 26% of revenue.

• KDDI itself holds a 20.32% equity-method stake with board representation, alongside staffing, building-maintenance, and overseas BPO units.

• The company seems to steadily compound revenues and profits and once you strip out the asset write-off from a small Vietnamese subsidiary, it seems to trade very cheaply on just over 7x earnings.

• The strategic review of the Consumer Tissue business (representing SEK 43,537m or 31% of 2025 net sales) is highly likely to culminate in a structural split by H1 2027, but the disutility from stranded corporate overhead could run as high as SEK 600m to 800m annually without aggressive post-separation restructuring.
• Regulatory compliance from the EU Deforestation Regulation (EUDR) and escalating Extended Producer Responsibility (EPR) packaging fees in Europe and North America will create a persistent 50 to 100 basis point margin headwind, forcing a faster transition toward high-barrier personal care products and recycled materials.
• The SEK 1bn SG&A efficiency program, designed to be fully implemented by the end of 2026 under CEO Ulrika Kolsrud, is largely on track but faces execution risk as decentralized decision-making shifts accountability to localized business areas, potentially diluting global procurement synergies.

• Gildan Activewear reported second-quarter 2026 results that reflected the impact of its HanesBrands acquisition, completed eight months earlier.
• Net sales from continuing operations increased 72% year-over-year to $1.58 billion, driven primarily by the acquired business.
• Adjusted diluted EPS from continuing operations rose 32% to $1.28.

• iFabric announced the launch of Doctor’s Choice scrubs on Amazon.ca, building on the already strong retail network, which includes Walmart USA, Target USA, and Costco Canada.
• This currently includes women’s scrub tops and bottoms in various colours, which are receiving strong reviews thus far.
• Management is executing well and at a rapid pace, as seen on the timeline on page 2, setting up the Company for long-term growth in this category as it increases distribution and penetration.

• The Kroger Company’s second quarter results reflect a mix of modest sales growth and operational progress amid ongoing industry challenges.
• Identical sales excluding fuel grew by 0.2%, a figure impacted by adverse factors such as a Cyclospora outbreak that reduced produce sales by approximately 35 basis points, lower pharmacy sales driven by the Inflation Reduction Act (about 140 basis points), and lingering effects of egg deflation.
• Despite these headwinds totaling roughly 265 basis points pressure on identical sales, Kroger managed to outperform its retail sector peers in unit trends, suggesting relative resilience in its customer base.

• Macy’s, Inc. reported second quarter 2026 results reflecting incremental progress under its Bold New Chapter strategic plan, emphasizing growth across its Macy’s, Bloomingdale’s, and Bluemercury nameplates.
• The company recorded net sales growth of 1.1% to $4.9 billion, with comparable sales increasing 2.7% overall and 2.8% on a go-forward basis.
• Macy’s comparable sales rose 1.1%, driven by the Reimagine store initiative which now includes 200 locations delivering 1.9% comparable sales growth, marking the fifth consecutive quarter of positive comps for this program.

• Context: This Insight follows up on previously highlighted relative value opportunities, using a statistical methodology based on mean-reversion to identify opportunities in paired securities.
• Highlights: Currently seven pair trade opportunities persist across three markets and four sectors.
• Why read: Statistical analysis offers a unique perspective on relative value. Gain insights into actionable statistical pair trade opportunities and monitor performance of previously highlighted pairs.

• Vital Farms has suddenly become an M&A story after a report said the premium egg producer is reviewing strategic alternatives, including a potential sale.
• Shares rose roughly 4% following the report, reflecting investor attention around what could become an important turning point for the company.
• No transaction has been announced, and there is no certainty that the strategic review will result in a sale.

• General Motors has spent more than a century building cars and trucks, but one of its newest growth opportunities looks very different.
• GM Defense has delivered housing components for Lockheed Martin’s PAC-3 Missile Segment Enhancement interceptor, putting one of America’s largest automakers directly into the Patriot missile supply chain.
• GM is not assembling complete Patriot missiles, but the development is still significant because it comes as the U.S. defense industry faces pressure to replenish inventories and dramatically increase production capacity.

• Stagnant Revenue and Severe Margin Compression: PT Campina Ice Cream Industry Tbk (CAMP IJ) has seen top-line growth slow to a 3-year CAGR of 1.30% (reaching IDR 1.17T in FY2025), while net profit declined at a -14.89% CAGR to IDR 74.77B. Gross margins compressed from 53.05% in FY2023 to 48.52% in FY2025 due to elevated dairy/sugar raw material costs and heightened discounting across retail channels.
• Unleveraged Balance Sheet Provides Defensive Anchor: Despite operating headwinds, CAMP maintains an unleveraged balance sheet with solid net cash backing, supporting a Smartkarma Resilience score of 4/5. This robust liquidity profile insulates the firm against debt distress and funds ongoing point-of-sale freezer replacements without solvency risk.
• Competitive Squeeze and Free Cash Flow Contraction: Intense category rivalry from low-cost entrants (notably Aice and Joyday) and incumbent Unilever continues to limit Campina’s pricing power. Free cash flow contracted sharply from IDR 47.27B in FY2023 to IDR 2.30B in FY2025 (-71.71% 3-year CAGR), warranting a Neutral institutional stance pending volume re-acceleration and cost stabilization.

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• Only 10% in Prime/Standard market were identified by investors as “showing progress in initiatives.” Unless managers return to management facing shareholders head-on, initiatives addressing specific, individual challenges will remain superficial.
• Investors should have voiced their opinions regarding the disclosure in  annual securities report prior to AGM, change in the record date, and postponement of the AGM by approximately one month.
• Rather than focusing on resolving specific individual issues, the TSE should educate companies on the fact that management has fiduciary duties and must fulfill them.

• PT Ultrajaya Milk Industry & Trading Co. Tbk (ULTJ IJ) is Indonesia’s preeminent producer of aseptic dairy and ready-to-drink (RTD) beverages, controlling dominant market share in Ultra-High Temperature (UHT) milk (Ultra Milk) and RTD tea (Teh Kotak). The company’s competitive moat is anchored by iconic brand equity, an integrated supply chain, and an extensive nationwide ambient distribution network.
• Financial performance demonstrates strong margin expansion and cash conversion, with FY2025 net profit reaching IDR 1,353.3B (+19.1% YoY) at a 15.4% net margin, accelerating further into 1H2026 with quarterly net margins surpassing 20%. ULTJ maintains a fortress balance sheet characterized by a net cash position, negligible financial leverage, and robust free cash flow generation (IDR 1,219.2B in FY2025).
• At current price levels (IDR 2,060), ULTJ presents an attractive risk-reward profile, trading at ~11.6x trailing P/E and ~5.4x EV/EBITDA—a substantial discount to domestic consumer staple peers (ICBP, CMRY, MYOR). The investment case is reinforced by an outstanding dividend yield of 6.31% (IDR 130/share DPS) and structural tailwinds in Indonesian per-capita dairy consumption.

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• Since companies that have listed on NYSE through ADR etc have been reporting their financial results under US-GAAP, it is expected that more companies will transition to IFRS as needed.
• If IFRS is promoted on the assumption that “eliminating the periodic amortization of goodwill under Japanese-GAAP will likely lead to increased M&A,” the discussion risks heading in the wrong direction.
• Needless to say, successfully implementing PMI to increase future profits and cash flow is both more difficult and more important.

• Revenue rose 49.8% YoY and the credit portfolio 75.2%, while adjusted EBITDA margin held at 9.6%; gross and net leverage increased to 3.39x and 1.65x.
• Operating cash flow reached $3.66bn and FOCF $3.22bn, but lending and restricted funds absorbed most cash, leaving adjusted FCF at just $214mn.
• Neutral maintained as spreads offer limited cushion for rising balance sheet intensity; we prefer the shorter-duration bond after the longer bond’s prior spread concession disappeared.

• Adani entered airport operations only in 2019–20, but now manages eight airports and serves more than 23% of India’s passenger traffic.
• The business has evolved from operating terminals to monetising the entire passenger journey through retail, food and beverage, duty-free, digital services, ground handling, cargo and city-side real estate.
• Alpha Wave Global, Premji Invest, Temasek and BlackRock-managed funds will invest Rs 9,825 crore of primary equity at an approximately USD 18 billion pre-money valuation.

• 17 Education & Technology Group Inc. is a leading AI-enabled education technology company in China that provides digital teaching, learning, and assessment solutions to education authorities, schools, teachers, students, and parents.
• Over its nearly 15 year history, the Company has built a large network of school, teacher and end users, along with an expanding proprietary data set generated by in-school and on-platform activities.
• YQ markets its AI platform and complementary hardware across three connected customer groups, including Government Agencies (G-end), Schools and Educational Institutions (B-end), and Direct to Consumer (C-end).

• What you need to know: • DWS released a three-year strategic plan built on four pillars: profitable growth, brand power, operational excellence, and culture and execution.
• • Execution is framed in three phases: Build in FY26, Scale in FY27, and Optimize across FY28 and FY29.
• Click here to view the deck.

• Adani Enterprises Limited (AEL) has incubated six publicly traded businesses across ports, power, transmission, renewable energy, city gas and FMCG.
• The combined market capitalisation of businesses incubated by AEL stood at USD 94.3 billion as of March 31, 2026, according to the company.
• The next value-unlocking candidates are airports, the new-energy ecosystem, data centres, roads and primary-materials. These businesses are larger and more capital-intensive, making execution and balance-sheet discipline central to the thesis.

• What you need to know: • PesoRama operates 45 dollar stores in Mexico and is targeting ~500 stores over the next five years.
• Mexico remains highly underpenetrated by dollar stores, creating a significant first-mover opportunity for PESO.
• • The store economics are compelling, with a 2-3 year payback period and a path to self-funded growth at scale.

• Tilaknagar reduced Debt from INR 1,199 crore (March 2019) to INR 119 crore (March 2024), while Finance costs fell from INR 184 crore (FY19) to INR 27 crore (FY24).
• The operating turnaround was driven by brandy leadership, better realisations, cost control and operating leverage. EBITDA moved from negative INR 52 crore in FY20 to INR 185 crore in FY24
• The INR 4,150 crore Imperial Blue Acquisition changed the company from a South-focused brandy player into a Pan-India, Multi-category Spirits Platform.

• What you need to know: • PesoRama reported record Q2/27 revenue of $9.7M (+59% YoY, +29% QoQ), in line with our $10.0M estimate.
• Adjusted EBITDA was ($0.3M), also in line with our estimate of ($0.4M).
• • Gross margin was 44% vs. our 45% estimate.

• Bapcor Limited (BAP AU) is Australasia’s leading automotive aftermarket distributor and retailer, currently navigating a comprehensive operational turnaround and balance sheet optimization strategy led by CEO Angus McKay following a period of executive turnover, supply chain restructuring, and substantial non-cash asset impairments.
• Underlying operational cash generation remains strong despite headline statutory losses; FY26 operating cash flow rose 14.0% year-on-year to A$152.3M, and free cash flow to equity (FCFE) reached A$137.2M, driven by strict working capital discipline, inventory rationalization, and reduced capital expenditure requirements following distribution center consolidations.
• At the current market price of A$0.78 (market capitalisation of ~A$524M), Bapcor trades at a steep discount to historical averages and private equity acquisition benchmarks, offering institutional investors asymmetric upside potential as cost-reduction programs, trade segment resilience, and gross margin stabilization take hold.

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• RedDoorz (REDDOORZ SP) operates a leading multi-brand budget hospitality network across Southeast Asia with over 3,800 properties across 257 cities, anchored primarily in the high-density markets of Indonesia and the Philippines.
• The company has executed an operational turnaround, achieving positive cash flow and pre-tax earnings of US$9.6 million in FY24 driven by its proprietary RedPilot AI yield management platform, disciplined operating expense optimization, and growing high-margin ancillary micro-products.
• Management is actively preparing for a 2027 mainboard listing on the Singapore Exchange (SGX) to raise US$50 million to US$100 million, supporting a strategic pivot toward up to 150 company-operated hotels in Indonesia alongside an acquisition-led regional expansion across APAC.

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• Fujikura Rubber Ltd. (Fujikura Composites Inc., 5121 JP) has transformed its earnings profile by establishing global market leadership in high-margin carbon fiber golf shafts (Ventus, Speeder franchises) while maintaining a resilient, cash-generative industrial rubber components foundation.
• Financial performance demonstrates expanding operational profitability, with gross margin widening to 33.13% and net income reaching JPY 3,987.5M in 2026, supported by robust free cash flow generation (FCFE of JPY 4,055.9M) and an immaculate net-cash balance sheet.
• Shareholder value enhancement is reinforced by progressive capital returns (dividend growing at a 5-year CAGR of 40.20% to JPY 86.0 per share in 2026, yielding 3.03%) alongside ongoing structural portfolio reforms aimed at lifting return on invested capital (ROIC) across legacy industrial divisions.

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• In cumulative Q3 FY2026/9, LIFULL Co., Ltd. (hereinafter, the Company) reported higher revenue and profits, with revenue of JPY 21,983 mn (+4.4% YoY) and operating profit of JPY 3,239 mn (+7.9% YoY).
• Profit attributable to owners of the parent (net profit) came in at JPY 2,126 mn, representing a solid 41.8% YoY increase on an underlying basis (adjusting for prior-year one-off factors).
• The core HOME’S Services segment drove overall performance, with revenue of JPY 20,041 mn (+4.5% YoY).

• Bega Cheese (ASX:BGA) is one of Australia’s leading producers of dairy products for domestic branded segment, as well as bulk (volume) and highervalue exports.
• The Lion Dairy & Drinks acquisition (November 2020) proved a timely expansion in the branded dairy segment.
• BGA holds leading market share positions in yoghurt and milk beverages, with its branded business representing over 80% of group revenue.

• Daiso is unlisted but dominates the listed competitors in the 100 Yen sector like Seria Co Ltd (2782 JP) and Can Do Co Ltd (2698 JP).
• Daiso posted its 15th consecutive year of record sales in FY2025 and store count reaching 6,000, driven by rapid expansion of its multi-banner format.
• This is alongside a growing proprietary IP business and fandom marketing that is beginning to feed directly into product development.

• We are reiterating our Buy rating, projections and $9 price target after visiting the October’s Very Own (“OVO”) flagship store in Manhattan.
• We were impressed with the quality and offering of goods and the visit reinforced our belief OVO is a premium brand with the potential for material expansion.
• That said, we note the store, after being open for almost a decade, needs some upgrades and TLC, which we believe represents an opportunity for Vince.

• In cumulative Q3 FY2026/9, LIFULL Co., Ltd. (hereinafter, the Company) reported higher revenue and profits, with revenue of JPY 21,983 mn (+4.4% YoY) and operating profit of JPY 3,239 mn (+7.9% YoY).
• For FY2026/9, the Company trimmed its revenue forecast to JPY 29,300 mn due to delays in the regional revitalization business while raising its forecast for operating profit to JPY 3,900 mn and net profit to JPY 2,500 mn.
• The Company’s share price has recently rebounded following a period of fluctuations, supported by the significant upward revision announced with Q3 FY2026/9 results.

• As expected, a SAMR investigation depressed top-line growth and profitability in Q226 
• Management offered no forward guidance on earnings call, but hinted at headwinds to come
• We believe it may take a few quarters for Trip.com to regain momentum

• Sentiment: Cautious Bearish, on a record managed-money long meeting a report that missed on the bearish side, with no flat-price information advantage in a settled crop.
• Treefera’s crop size agrees with the government’s, so the national number holds no edge.
• What is left to trade is which states grew the corn, and who is holding the position. Both sit outside the balance sheet the market is still trading.

• Sentiment: Cautious Bearish, conditional on Black Sea export disruption easing
• Chicago SRW wheat futures (ZW) December 2026 closed at $7.4125 per bushel on 10 September.
• The rally primarily reflects the Russia-Ukraine conflict disrupting Black Sea exports.

• Following the August 2026 reporting season, we look at key changes to peer consensus estimates, share-price movements and outlook commentary relevant to Ricegrowers Limited, trading as SunRice (ASX:SGLLV).
• In terms of FY27 eps revisions across our selected peer group, we have seen a 17% reduction in (ASX:CBO) estimates and a 24% increase in (ASX:GNC) estimates, which has corresponded with the best and worst share price performances, respectively, over the period.
• The RaaS selected peer average outperformed the ASX200 by 8% over the past three months (+6% versus -2%), with (ASX:CBO) dragging the peer average down.

• Tractor Supply Company (TSCO US) maintains a commanding leadership position in the US ‘Out Here’ rural lifestyle retail sector, leveraging a network of over 2,200 stores anchored by non-discretionary C.U.E. (consumable, usable, and edible) product categories that insulate the top line against broader consumer discretionary cycles.
• Despite post-pandemic demand normalization and discretionary big-ticket headwinds, TSCO demonstrated resilient revenue growth reaching $15.52B in FY2025, supported by steady new store expansion, Project Fusion remodels, expanded garden center buildouts, and double-digit digital sales growth.
• Capital allocation remains disciplined, characterized by robust operating cash flow ($1.64B in FY2025), targeted portfolio optimization—including the strategic closure of underperforming Petsense units to scale higher-margin VIP Petcare clinics—and a committed shareholder return profile evidenced by a 2.93% dividend yield and a 5-year dividend CAGR of 25.12%.

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• ABC Mart aims to have 50 Oshman’s stores by 2031. 
• The plan is to build out Run & Fitness, a new, smaller concept designed for shopping malls and to appeal to more female customers through yoga and Pilates.
• The investment is part of wider plans to broaden ABC Mart’s business beyond footwear and firmly into the still growing sports market, both in Japan and around Asia.

• Select Harvests Ltd (ASX:SHV) is one of Australia’s largest almond growers, processors and sellers, with an extensive orchard footprint (Riverland, Sunraysia and Riverina) and increasing third-party volume processing.
• SHV provided a trading update (8 Sept) prior to the end of its financial year (30 Sept.) indicating additional harvest costs of $7m ($13m total costs) which have impacted in FY26 (initial weather-related costs at H1 indicated $6m).
• SHV also provided commentary on strengthening global pricing, increasing its pool almond price from $10.21/kg to $10.26/kg, and stating a marginally reduced crop range 28,800-29,600 metric tonnes, with processing now complete.

• Lululemon Athletica Inc. reported second-quarter 2026 results reflecting pressure in North America and China Mainland while continuing to invest for long-term growth.
• Net revenue declined 4%, or 5% in constant currency, to $2.4 billion, while comparable sales fell 10%.
• North America revenue decreased 8%, with comparable sales down 12%.

• The Campbell Soup Company’s fourth-quarter fiscal 2026 results and accompanying discussion reveal a business navigating a challenging environment marked by inflationary pressures, evolving consumer preferences, and the integration of a significant acquisition.
• The company reported a consolidated quarter inclusive of its recent 49% acquisition of La Regina, which introduced additional debt and associated interest expense into the financials.
• Net sales expectations for fiscal 2027 indicate a midrange organic decline around 3%, with the Meals and Beverages (MMB) segment anticipated to be slightly down throughout the year.

• Copart and ACV will combine in a friendly cash transaction that values ACV at $1.9 billion. Enterprise value = equity value as ACV has no net debt.
• Copart is paying 2.5x ACV’s 2025 revenue and 32x adjusted EBITDA.
• The deal is expected to close by the end of the calendar year and will eat up 40% of Copart’s current $4.5 billion cash/equivalents.

• VERY late last night Tokyo time, Kadoya Sesame Mills (2612 JP) announced a Supported/Recommended Deal whereby local PE form Integral would buy out the company at ¥2,514-2,760 pending shareholder agreements. 
• The base case is ¥2,514. ¥2,760 comes when major shareholders agree to sell at a discount, passive their tax benefits to the whole shareholder base.
• But there’s competition. A started things off last year. Integral/family joined in. Major shareholders MitCorp and Mitsui got B and C to join. A and C are still in it.

• Oliver Corporation (619A JP) raised US$142m in its Japan IPO.
• Established in 1967, Oliver Corporation was initially a furniture manufacturing company known as Fuji Steel and sold steel furniture. 
• In our previous note, we looked at its past performance and valuations. In this note, we will talk about the trading dynamics.

• Market Leadership in Buffalo Meat Exports: HMA Agro Industries Limited (HMAAGRO) is one of India’s top three exporters of frozen boneless buffalo meat (carabeef), commanding over 10% of India’s total export volumes. The company operates a fully integrated farm-to-fork processing infrastructure with modern abattoirs certified by APEDA and international food safety authorities, serving over 40 countries across the Middle East, Southeast Asia, and Africa.
• Top-Line Expansion vs. Margin Compression: Total revenues expanded robustly from INR 48,132.90 million in FY24 to INR 69,164.95 million in FY26, representing an annualized growth of over 19.8%. However, operating margins remain razor-thin (FY26 EBITDA margin of 3.22% and Net Margin of 2.38%), heavily exposed to raw livestock procurement costs, export freight volatility, and adverse foreign exchange fluctuations.
• Attractive Valuation Offset by Cash Flow Volatility: Trading at a trailing P/E of 4.7x and P/B of 1.1x at a share price of INR 21.83, HMAAGRO presents deep optical value. However, persistent working capital demands and procurement advances have led to negative free cash flows in two of the last three fiscal years (FY26 FCF at -INR 1,392.70 million), keeping financial resilience constrained.

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• 1H26 adjusted EBITDA +1%, Q2 -5%; every gaming volume line fell and hold carried the quarter. We cut FY26E EBITDA 9% to HK$14.3bn, our initiation bear case.
• Filings show 1H26 capex of HK$1.25bn against a HK$10–11bn guide since halved; Phase 4 slips to FY28E. Net cash HK$35.9bn and payout at 75% got stronger.
• BULLISH, fair value HK$37.00 maintained on 8.3x FY27E EV/EBITDA plus net cash; +13% upside, ~19% TSR. Buy the September shoulder ahead of typhoon-hit comps and Golden Week.

• McBride’s FY26 Adj. EBITDA of £80m and Adj. PBT of c.£49m have come in c.2% above recently revised estimates, evidence of the group’s resilience, market leadership and strategy.
• Looking ahead, volumes in early FY27E are in-line with management’s expectations, but raw material costs are likely to rise further as geo-political tensions continue.
• Management is ready to mitigate inflation but in the meantime the group’s strategic acquisition of Eurotab and its significant contract manufacturing partnership with Vestacy illustrate the group’s multiple levers for growth.

• Ollie’s Bargain Outlet reported second-quarter fiscal 2026 results characterized by solid earnings growth despite a challenging sales environment.
• Net sales increased 9.1% year-over-year to $741 million, primarily driven by new store openings, totaling 15 in the quarter and 42 year-to-date, exceeding halfway toward the annual target of 75 new locations.
• However, comparable store sales declined 1.8%, impacted mainly by unfavorable weather conditions affecting seasonal categories, ongoing economic pressures on consumers, and an elevated promotional environment.

• PVH Corporation reported second quarter 2026 results that met or exceeded guidance, with revenues declining 3% both reported and on a constant currency basis, primarily reflecting macroeconomic challenges and timing shifts in wholesale shipments.
• The company’s two major brands, Calvin Klein and Tommy Hilfiger, delivered steady performance; Tommy Hilfiger revenues were flat year-over-year while Calvin Klein revenues declined, partially impacted by shipment timing and wholesale transitions.
• Direct-to-consumer (DTC) channels showed resilience and growth, driven by double-digit and high single-digit e-commerce growth in North America and Asia-Pacific (APAC), although wholesale channels, notably in Europe, faced ongoing weakness amid challenging market conditions and geopolitical pressures.

• Since FY2022, the NP Margin and Equity Ratio have moved in parallel, indicating that the improvement in non-operating income and expenses has directly contributed to the increase in equity.
• Over the past few years, while sales growth driven by passing on inflationary costs has gradually boosted operating profit, the improvement in the operating profit margin has been negligible.
• To raise profit margins to a level that can stand up to comparisons with companies in other countries, create products with high gross profit margins to increase cash flow.

• We are reiterating our Buy rating and $5 price target and raising our FY27 projections for Vera Bradley after the company registered another material step forward in turning the business, with 2QFY27 (July) top and bottom line upside and solid positive comps, as new products resonated and the back-to-school season was a material positive.
• Further, we believe 3Q momentum has been strong, and we view management reiterating their revenue and operating income guidance for FY27 as conservative.
• As such, we remain positive on the ongoing turn at Vera Bradley and believe Chief Executive Office Ian Bickley and his team are continuing to make material progress; we reiterate our Buy rating and $5 price target for VRA.

• ClubMed Lifestyle Group (CLBMD HK) aims to raise up to US$700m in its Hong Kong listing.
• It operates a leading global premium vacation lifestyle group with a strong global footprint.
• In this note, we look at its past performance and other deal dynamics that might impact the listing.

• Kadoya Sesame Mills (2612 JP) announced a tender offer from Integral (5842 JP) at JPY2,514, a 3.9% premium to the last close and a 40.2% premium to the undisturbed price.
• The offer could increase to JPY2,760 if both Mitsubishi Corp (8058 JP) and Mitsui & Co Ltd (8031 JP) agree to share buybacks. Two competing bidders remain in the background.
• Mitsubishi and Mitsui’s deliberately deferred, non-committal stance facilitates a potentially higher competing bid, particularly as the offer is below the midpoint of the IFA DCF valuation range.

• We established metrics focused on high ROCE, sustainable 10-15% YoY growth, robust balance sheets, and prudent capital allocation: essential elements for identifying potential multibagger opportunities in the Philippines.
• Our top picks are: Ginebra San Miguel (GSMI PM), Keepers (KEEPR PM), International Container Terminal Services (ICT PM), and Philippine Stock Exchange (PSE PM) 
• Q2FY26 earnings are out of the way, and we summarize the issues currently facing consumers in the Philippines as the country continues to grapple with inflationary pressures. 

• A year after Couche-Tard withdrew its bid, Seven & I is still searching for new growth, leading to some speculation of closer ties with Familymart. 
• Over the summer, it pulled out of an attempt to expand in Europe, and watched franchisee profits fall for a second year.
• Having sold 6.6% of itself to SoftBank, PayPay and Sumitomo Mitsui Card, it is now hoping to buy a retail media future. It won’t be enough.

• Seven & i bought back ¥400bn of stock on 3 August, then sold ¥300bn of treasury shares to SoftBank, PayPay and SMCC. Net share reduction: 1.9%, not 8.19%.
• Q1’s +654% overseas profit surge came before Brent moved from $84 to $105. Q2 (Jun-Aug) is the retail fuel-margin compression quarter; guidance risk is to the downside.
• Downgrade BUY to NEUTRAL, fair value cut to ¥2,180 from ¥2,350 — two of three re-rating drivers are impaired, leaving only 8.2% upside into a binary 8 October result release.

• Severe Revenue Contraction & Share Loss: PetMed Express (PETS) has experienced sustained top-line deterioration, with revenue dropping from $281.1M in FY2024 to $179.0M in FY2026 (-11.3% 3-year CAGR). The company faces structural headwinds from omnichannel pet retail powerhouses and veterinary clinic consolidation.
• Acute Profitability Collapse & Cash Burn: Operational performance weakened severely in FY2026, marked by a net loss of -$57.3M and negative free cash flow of -$33.0M. Persistent operating deleverage and escalating customer acquisition costs prompted the total suspension of the historical dividend.
• Distressed Valuation vs. Elevated Turnaround Risk: Trading at 0.1x EV/Sales and 1.6x P/B, PETS reflects deep distress pricing. While the valuation offers asymmetric upside if management stabilizes the core pharmacy base and expands into higher-margin pet wellness services, execution risks remain exceptionally high.

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Executive Summary

• Dominant Asia-Pacific Micromobility Platform: The September 2025 merger of Neuron Mobility and Beam Mobility created the clear regional market leader, with a combined fleet of roughly 100,000 shared e-scooters and e-bikes at completion. Following the UK and Canada exits in mid-2026, the retained footprint spans the Asia-Pacific and Turkey. By pooling Neuron’s tender-based strength in Australia and New Zealand with Beam’s permit-based presence in South Korea and Southeast Asia, and by exiting the United Kingdom and Canada in mid-2026, the combined group has built regional operating density and a permit-based moat that is structurally difficult for Western rivals to penetrate.
• Proven Pivot from Growth to Profitability: Both companies decisively shifted from cash-burning expansion toward disciplined unit economics, with the pre-merger Beam division reaching adjusted EBITDA profitability in the second half of 2023 on the back of a 25.0% cut in group overheads. This template for cost discipline, combined with the scale of the merged fleet, positions the company to negotiate stronger municipal tenders and drive down per-vehicle costs, underpinning a credible path to sustainable free cash flow.
• Acute Regulatory Exposure as the Central Risk: The business remains highly vulnerable to sudden municipal rule changes, which can contract its addressable market overnight. Proposed 2026 Queensland legislation mandating footpath speed limits, a minimum rider age, and a valid driver’s licence could cut the regional user base by an estimated 50.0% and force a complete withdrawal from those cities, illustrating the local legislative dependence that governs every market the company operates in.

• Unified Regional Merchant Platform: Qashier operates an integrated hardware and software ecosystem tailored for small and medium-sized enterprises across four Southeast Asian markets. The company processes US$1.0b in annualised payment volume for over 20,000 merchants, anchored by a Major Payment Institution licence in Singapore that enables direct payment processing and cross-border transfers.
• Proven Unit Economic Leverage: The business model demonstrates clear operational leverage, transitioning to sustained profitability across its active markets on a lean capital base of under US$22.0m raised to date. High switching costs embedded in its proprietary point-of-sale terminals and cloud software ensure sticky recurring revenues that insulate the core transaction engine.
• Structural Balance Sheet Fragility: The company operates with a technically insolvent balance sheet, reporting a negative equity position in FY24 driven by S$24.0m in accumulated losses against S$22.1m in share capital. A sudden working capital squeeze or call on short-term obligations could trigger a liquidity crisis, forcing a distressed capital raise or halting operations.

• Squeezing Existing Cohorts Over Top-of-Funnel Expansion: Rent the Runway (RTR) has generated record revenue of $97.7 million (up 20.8% year-over-year) in Q2 2026 primarily by monetizing its remaining user base through price hikes and a 12.9% Adjusted EBITDA margin. However, the core subscriber engine is shrinking, with active subscribers declining 3.8% year-over-year to 140,826, highlighting a structural inability to attract and retain new customers compared to competitors.
• The Competitive Disadvantage vs. Nuuly: Nuuly (owned by Urban Outfitters) has surpassed 500,000 active subscribers and generated $179 million in Q2 2026 revenue with a 10% operating margin. Nuuly wins on customer acquisition cost (CAC) and inventory margins because it sources 45% of its inventory from sister brands at cost and utilizes its parent’s massive retail footprint for organic marketing, while RTR relies on expensive third-party brands and must build its customer acquisition funnel from scratch.
• Severe Cash Burn Hidden Behind Adjusted EBITDA: Despite reporting positive Adjusted EBITDA of $12.6 million in Q2 2026, RTR remains fundamentally cash-flow negative, with a first-half operating cash outflow of $5.0 million and a capital expenditure requirement of $53 million to $55 million for rental products in fiscal 2026. The recent $10 million debt drawdown, the $9 million securities class-action settlement, and the newly announced $15 million rights offering reflect a highly constrained liquidity profile with less than 12 months of standalone cash runway.

• Dominant Domestic Duopoly: Nippon Felt holds an established position in the Japanese paper machine clothing (PMC) sector, controlling alongside its domestic peer over 90% of the domestic market for papermaking press felts and shoe press belts.
• Defensive Recurring Consumable Model: While secular paperless trends create top-line headwinds (3-year revenue CAGR of -3.32%), the consumable and mission-critical nature of press felts ensures recurring replacement cycles, with margin expansion driven by product tiering and packaging/tissue sector demand.
• Capital Efficiency & Valuation Support: Trading at a Price-to-Book ratio of 0.7x with a 2.76% dividend yield, the company offers a solid balance sheet cushion and has accelerated capital returns, raising dividends from ¥13.0 in FY2023 to ¥28.0 in FY2026 (3-year CAGR of 15.44%).

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• Dollar Tree reported its second quarter fiscal 2026 results demonstrating progress on several fronts amid a dynamic consumer environment.
• The company experienced a 7% increase in net sales to $4.9 billion, driven by a 3.7% increase in comparable store sales and 3.3% growth from new stores.
• Customer traffic returned to positive territory with a 0.4% rise, outperforming previous expectations, supported by a 3.3% increase in average ticket.