Consumer

• In April I wrote about Sun Corp (6736 JP). Activists had bought more and the stock was trading at the value of its CLBT holdings. Then it widened sharply. 
• The discount widened out to 30% in June and July, but jumped when CLBT shares tanked four weeks ago on reduced guidance and a possibly sudden CEO change. 
• Then CLBT bounced and fell while Sun Corp continues to rally. That puts Sun Corp at 10+% through its CLBT holdings value. But there are possibly other things afoot.

• PDD Holdings, Inc. reported steady revenue growth in the second quarter of 2026 amid ongoing investments in platform governance, supply chain enhancement, and broader ecosystem support.
• Group revenue rose 8% year-over-year to RMB 112.4 billion, driven primarily by an increase in transaction service revenues, which grew 13%.
• However, net income declined 12% year-over-year to RMB 27.2 billion, influenced by elevated investment levels in platform improvement and industry ecosystem development.

• Ross Stores reported a robust second quarter of fiscal 2026, demonstrating solid top-line growth with total sales increasing 13% to $6.3 billion and comparable store sales advancing 10%, marking consecutive quarters of double-digit comp growth.
• The growth primarily stemmed from increased customer traffic, supported by successful customer acquisition efforts reaching a broad demographic spectrum, including younger shoppers and diverse income groups.
• Both Ross Dress for Less and its subsidiary dd’s DISCOUNTS experienced broad-based strength across merchandise categories and geographies, notably driven by home and cosmetics sectors, and particularly strong performance in the Midwest.

• Lowe’s Companies reported second quarter fiscal 2026 sales of $26 billion, an 8.3% increase year-over-year, with comparable sales rising 0.2%.
• The company noted modest price inflation contributing to a 2.3% rise in average ticket size, although comparable transactions declined 2.1%, pressured by reduced demand in weather-sensitive seasonal and outdoor categories.
• Sales growth was supported by strong performances in Pro customer segments, online channels—which grew 15.7%—and Home Services, partially offsetting softness in the Do-It-Yourself (DIY) discretionary segment amid macroeconomic challenges including elevated fuel prices and heightened economic uncertainty.

• Trip.com will finally report Q2 results after the US close on Tuesday, September 15
• Earlier investigation, now concluded, was likely a drag on growth & earnings in period
• Management commentary could indicate pace of recovery from Trip.com’s latest stumble

• VenHub Global, Inc. is a fully autonomous and robotic-operated store utilizing AI and smart inventory management systems for a seamless shopping experience.
• VenHub Global commenced trading as “VHUB” on NASDAQ on January 30, 2026, and increased authorized common stock to 300,000,000 shares.
• Net losses were approximately $62.4 million for 2025, with an accumulated deficit of approximately $109.2 million as of June 30, 2026.

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• Walmart Inc. reported second-quarter fiscal 2027 results showing continued strength across its diversified retail and e-commerce operations despite a challenging macroeconomic environment.
• Net sales increased 5% on a constant currency basis, near the high end of guidance.
• Walmart U.S. comparable sales excluding fuel rose 2.6%, supported by transaction and unit growth.

• Zixin Group Holdings Limited is an integrated sweet potato value chain operator based in Liancheng County, Fujian.
• The company buys raw sweet potato from farmers and either sells it into the Chinese wholesale trade or processes it into snacks sold under its own brands and as a contract manufacturer for others.
• FY26 sales reached RMB607mn (+43% YoY), a 3rd consecutive year of strong growth with similar levels of profit growth. 

• Mewah International Inc. (“Mewah”) is an agribusiness focused on edible oils & fats.
• It operates edible oil refineries and food manufacturing plants, as well as other facilities, in Malaysia, Indonesia, and Singapore.
• Mewah also markets and distributes cooking oil and margarine, as well as a range of Fast-Moving Consumer Goods products such as rice, cashew, dairy-related products, cocoa, food premixes, and soap.

Executive Summary

• Hybrid Hospitality Platform Transition: RedDoorz operates a technology-enabled accommodation network spanning more than 4,400 properties across 257 cities in Southeast Asia. The business is currently shifting from a purely asset-light franchise model towards direct operational control, targeting up to 150 company-operated hotels in Indonesia by 2027 to standardise quality and improve unit-level economics.
• Proprietary Technology and Consolidation: The company leverages its in-house artificial intelligence system, RedPilot, to automate dynamic pricing and operational oversight for independent budget hotels. Having achieved pre-tax earnings of US$9.6m in FY24, management is preparing for a 2027 mainboard listing on the Singapore Exchange to raise up to US$100.0m for regional acquisitions.
• Data Privacy Compliance Exposure: The platform’s reliance on centralised artificial intelligence and cross-border data flows exposes the business to strict regional data protection frameworks. Following a historical breach affecting 5.9 million users, future cybersecurity incidents or regulatory failures risk statutory penalties of up to 10.0% of annual turnover under updated Singaporean legislation.

• As expectations are growing for individual investors to serve as “stable shareholders,” the trend of lowering minimum trading unit is beginning to spread even to companies with high stock prices.
• The 2001 amendment to the Commercial Code, which authorized the current minimum trading unit system, neglects the rights of shareholders holding less than the minimum trading unit.
• The issue of wealth inequality can no longer be ignored. To prevent social instability, individuals with limited assets should be given opportunities to invest, even in smaller amounts.

• Jollibee (JFC PM) will list its international business unit in Hong Kong Exchanges and Clearing (HKEX23 TB) . 
• The Philippines business can re-rate as the company masks and subsidizes the lower-margin, capital-intensive expansion phase of foreign acquisitions.
• An independent HKEX listing gives autonomy to directly fund future overseas M&A, capital expenditure, and store rollouts without diluting the parent company or taking on Philippine-issued debt. 

• Alibaba Group reported mixed financial results, with strong cloud and artificial intelligence growth offset by profitability pressure from heavy investment.
• Total revenue reached RMB 269 billion, up 9% year-over-year, driven largely by a 45% increase in Alibaba Cloud external revenue, marking the 22nd quarter of acceleration.
• AI-related cloud products sustained triple-digit growth for the 12th consecutive quarter and reached an annualized revenue run rate of RMB 49.5 billion, or approximately USD 7.3 billion.

• Birkenstock Holding plc reported third-quarter fiscal 2026 revenue growth of 15% in constant currency, reaching the high end of annual guidance.
• Growth was broad-based, with EMEA up 15% and APAC up 23%, excluding timing shifts related to the Australian distributor acquisition.
• Direct-to-consumer revenue increased 16%, outpacing B2B, supported by 50% growth in owned retail revenue and high single-digit same-store sales growth.

• The company is very good at generating consistently positive operating cash flow
• Earnings quality is very high based on our analysis of net income relative to operating cash flow
• Looking at the balance sheet, the company has good access to capital to fund growth

• Advance Auto Parts reported mixed second-quarter 2026 results amid constrained consumer spending and variable weather conditions.
• Net sales reached $2 billion, with comparable sales declining slightly due primarily to weakness in the Do-It-Yourself channel.
• DIY softness intensified in the final month as tighter household budgets reduced demand, particularly for larger-ticket repairs.

• The company is very good at generating consistently positive operating cash flow
• The tightness of the operation is very good based on the cash conversion cycle
• Looking at the balance sheet, the company has very good access to capital to fund growth

• Alibaba’s recent HK$80 billion (US$10.2 billion) equity placement was a direct response to offshore liquidity pressure. This funding strategy bypasses the 10% mainland withholding tax and State Administration of Foreign Exchange (SAFE) approval frictions required to transfer onshore e-commerce profits to the offshore Cayman holding company to support capital projects and existing buybacks.
• The cancellation of Cloud and Cainiao spin-offs reflects a strategic reality rather than just regulatory retreat. Cloud has been repurposed as a capital-intensive “full-stack AI factory” that requires immense, ongoing cash subsidies from core commerce, while Cainiao’s full integration is structurally necessary to compete with Temu and Shein in international logistics.
• Heavy AI investments have pushed quarterly Capex to RMB 67.7 billion, leading to a negative free cash flow of RMB 44.6 billion in the June 2026 quarter. This aggressive infrastructure spending carries highly ambitious 2-to-3-year payback targets that remain vulnerable to China’s ongoing domestic cloud price wars and a shifting margin pool where merchant take-rates are structurally squeezed.

• The current HSTECH Index tracks the performance of the top 30 technology companies listed in Hong Kong that have high business exposure to certain technology themes.
• A new methodology has been proposed and if implemented, index composition could change drastically in the next index rebal event.
• There could be at least 20 changes to the index as the new methodology aims to increase index member count from 30 to 50 in December 2026.

• The Hang Seng Internet & IT (HSIII) index represents the top 30 Hong Kong-listed stocks related to internet and information technology businesses.
• We expect no index changes in December 2026 but we see capping flows of ~US$112mn one-way.
• We expect at least two ADDs/DELs in the next index review which will take place in March 2027. 

• Seiko has tripled YTD as Grand Seiko accelerates and the yen weakened, but USDJPY has fallen to 153.7 from 164 — reversing the currency tailwind.
• At 27.7x guidance EPS, Seiko faces multiple risk rather than earnings collapse; Citizen carries greater FX sensitivity but its ¥199/share net cash provides a floor.
• We rate Seiko SELL, FV ¥6,400 based on 20x FY3/27E stressed EPS of ¥319; Citizen is REDUCE at ¥1,940 on 17x stressed EPS.

• Cathay Share Placement and Bond Buyback: Swire Pacific’s September 2, 2026 accelerated exchange trade—selling a 5.96% stake in Cathay Pacific (362.65 million shares) at HK$13.20 to fund the repurchase of HK$4.69 billion in zero-coupon exchangeable bonds due 2027—strategically removes a major dilution overhang. While it trims Swire’s Cathay stake to 39.15%, it locks in a HK$1.12 billion gain on the placement and leaves Swire’s management control fully intact.
• Dual-Class B-Share Discount Anomalies: The A-to-B share premium is currently at a 24-year high (with B-shares trading at a ~28% discount to their theoretical 1/5th economic value of the A-shares). Despite this massive discrepancy, a share consolidation is structurally blocked by parent company John Swire & Sons, who hold 74.83% of B-shares to maintain 70.97% voting control over the listed group at a cheaper economic cost.
• Parent-Subsidiary Misalignment and KPI Anchoring: Executive compensation and alignment at Swire Pacific are heavily biased toward the private UK parent, John Swire & Sons, through a long-standing Services Agreement. Senior leadership are JSS secondees whose long-term incentives are tied to the private parent’s global returns rather than public market share performance, explaining their high tolerance for a persistent 30% to 40% NAV discount.

• abrdn Bloomberg All Commodity Strategy K-1 Free ETF (Ticker: BCI US) provides cost-effective, institutional-grade access to a fully collateralized, broad-basket commodity portfolio tracking the Bloomberg Commodity Index Total Return (BCOMTR).
• Structurally Advantageous K-1 Free Wrapper: Operating as a registered 1940-Act exchange-traded fund utilizing a wholly-owned Cayman Islands subsidiary, BCI issues a standard Form 1099 rather than a Schedule K-1, eliminating tax filing friction and unrelated business taxable income (UBTI) for non-taxable institutional investors, pensions, and foundations.
• Competitive Total Cost of Ownership: With a low net expense ratio of 0.26% and substantial liquidity (over $3 billion in AUM with a tight 0.04% median bid/ask spread), BCI serves as an efficient vehicle for real-asset diversification, macroeconomic inflation hedging, and collateral yield capture.

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• PT Fast Food Indonesia Tbk (FAST IJ) holds an entrenched leadership position in Indonesia’s quick-service restaurant (QSR) sector as the sole franchisee of KFC and Taco Bell, underpinned by strategic sponsorship from the Gelael family and the Salim Group.
• Financial performance exhibits early operational stabilization following severe margin erosion during 2023–2024 caused by raw material cost inflation and geopolitical consumer boycott headwinds, with annual revenue holding at IDR 4.88T in FY25 and Q1 2026 marking a brief inflection to positive net profitability.
• Balance sheet deleveraging, store network rationalization toward capital-efficient compact formats, and gross margin defense remain critical to restoring sustainable return on equity, as an elevated P/B multiple of 8.7x reflects a depleted equity base rather than premium fundamental earnings power.

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• Taihe’s three businesses form a complete commercial loop of “IP content → amplification of artist performances → monetization of the ticketing platform → feeding back to the IP ecosystem”
• Taihe’s advantage lies in its all-round layout covering the entire industrial chain. However, its weakness is compared with platform-type enterprises, Taihe lacks a super entry point directly reaching end consumers
• Based on the analysis, we think a conservative scenario could be P/E of 15-20x. A neutral scenario could be 20-25x. An optimistic scenario could be 25-30x.

• JD.com’s second quarter of 2026 results showed a steady operational performance amid challenging macroeconomic and industry conditions, delivering a mix of positives and areas for cautious observation.
• Revenues declined slightly by 2.9% year-over-year to RMB 346 billion, primarily due to headwinds in the electronics and home appliances categories.
• This segment faced pressure from a high comparison base linked to last year’s trade-in program and upstream raw material cost increases.

• When shareholders have a certain degree of influence through voting rights, management should be expected to conduct operations with discipline and accountability through dialogue with shareholders.
• Simply aiming to reduce cash reserves is risky. The problem with Japanese companies is a lack of awareness that mission is to maximize shareholder interest and sustainably grow corporate value.
• This revision to the Corporate Governance Code may have given investors mixed signals regarding the ongoing formalization—and potential regression—of corporate governance at Japanese companies.

• Valuation gap has closed; move to Neutral despite intact underlying fundamentals. 
• International growth remains strong, but incremental margin leverage is less certain. 
• FY27 guidance is the key catalyst: Japan traffic and International margins are the swing factors.

• The structural stickiness of Tesco’s recent 28.7% market share is primarily defensive rather than organic expansion, heavily sustained by matching discounters on price (via 600+ Aldi Price Match lines) and using high-margin Tesco Finest (£3.0 billion in sales) to offset low-margin staple matches.
• Retail media represents a highly lucrative but mathematically capped revenue driver, with blended margins of 50-60% run via Tesco Media & Insight Group (Dunnhumby). The structural ceiling is estimated to be around 1.5% of gross sales (~£1.0 billion in revenue), meaning retail media is a margin-stabilizer against wage growth rather than an infinite expansion engine.
• Tesco’s Urban Fulfillment Center (UFC) rollout has experienced substantial diminishing returns, with escalating CapEx costs (£5.0 million to £5.5 million per site) and deployment delays limiting the active network to just around 7 operational units. Instead of full-automation, Tesco is relying on manual, route-optimized “dotcom” picking and rapid-delivery partnerships (e.g., Uber Eats / Whoosh) to preserve its medium-term ROIC targets.

• The “Split-Brain” Strategy and Crisis: Want Want China is experiencing an operational bottleneck, highlighted by Chairman Tsai Eng-meng’s August 2026 internal letter calling their 38% Q1 profit plunge a “major operating crisis”. Senior management is paralyzed: they are pushing the R&D team to innovate sugar-free and healthy products, while concurrently incentivizing the sales force to dump legacy, high-sugar, high-margin products like Want Want Milk to meet aggressive short-term volume targets.
• Channel Conflict and Cannibalization: Legacy traditional wholesale channels (which historically represented the core of Want Want’s business) are in a structural decline, down high single-digits. The rapid expansion into hard-discount specialty snack retail (now representing 15% of total revenue) is cannibalizing traditional distributors. Lower-tier distributor channel inventory has ballooned from a healthy 30-day baseline to a dangerous 90 to 100 days.
• Macro and Raw Material Pressures: Recent margin erosion is structural rather than cyclical. Spiking raw materials—with global sugar hitting a multi-month high above 18.36 cents per pound and palm oil hovering around RM 4,966 per tonne—are colliding with high internal M&A hurdle rates (WACC of 15%) that prevent the company from acquiring healthy snack brands defensively, leaving them trapped with declining legacy assets.

• EBay’s fast-growing Japanese arm, Qoo10, is betting on a radical move into retail, opening three permanent Tokyo stores, including a 2,500 sqm Harajuku flagship in the next nine months.
• The investment is part of a push to reach a target of ¥500 billion by 2029, up from around ¥300 billion last year, and a real threat to arch-rival, Zozo.
• Qoo10 is also moving beyond K-beauty dependence by expanding collaboration with Japan-based vendors at the same time as broadening categories across fashion, food, home and appliances.

• Lululemon Athletica has gone from being one of the most recognizable winners of the athleisure boom to facing a much harder question: are consumers simply losing interest?
• The stock fell nearly 20% following its latest earnings report, briefly pushing shares below $100 for the first time since 2018 and extending a decline of more than 50% in 2026.
• The financial numbers explain part of the reaction.

• FY26 revenue RMB6,046mn (+9.0%) and net profit RMB997mn (+11.1%) set records, driven by online growth of 20.5% and positive offline same-store sales of 2.4%.
• Gross margin rose 100bps to 66.6%, and operating cash flow rose 26.5% to RMB1,433mn, funding the Shuangpu park build.
• Stock on FY26 trades at 8.5x P/E, 5.3x EV/EBITDA, 3.1x P/B, and a 10.2% yield on DPS of HK$2.33 (this includes a HK $0.75 special one-time) 

• Earnings quality is very high based on our analysis of net income relative to operating cash flow
• The stock trades at a very attractive valuation
• The efficiency is very good when looking at the growth in sales relative to the growth in assets

• Its competitive strategy appears excellent based on the gross profit margin
• The company is very good at generating consistently positive operating cash flow
• The tightness of the operation is very good based on the cash conversion cycle

• The company is very good at generating consistently positive operating cash flow
• The efficiency is very good when looking at the growth in sales relative to the growth in assets
• The company has delivered strong sales growth, which is essential for long-term value creation

• Zhejiang Taotao Vehicles designs, manufactures, and distributes outdoor leisure and electrified mobility products. It holds a leading position in the global LSEV market, with over 97% of 2025 revenue from.
• The company ranked first by revenue in the global LSEV industry in 2025, with a market share of approximately 10.9%.
• The gearing ratio increased from 10.2% in 2023 to 28.6% in 2025. Gross profit margin was 41.4% for four months ended April 30, 2026.

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• Today, regional supermarket operator Life Corp (8194 JP) announced a TOB on processed foods and supermarket services outsourcee Albis Co Ltd (7475 JP). 
• Albis is a TOPIX stock which will be announced as a DELETE next month. MitCorp owns 16.6%. Other crossholders hold 20+%. Foreigners hold nothing. Retail most of the rest.
• This likely gets done. It’s tiny. Illiquidish. Another smallcap disappearing to earn synergies without paying for them.

• ClubMed Lifestyle Group (CLBMD HK) is looking to raise up to US$700m in its upcoming Hong Kong IPO. The deal will be run by BNP, HSBC and JPM.
• ClubMed Lifestyle Group is a global premium vacation lifestyle group.
• The firm focuses on delivering comprehensive, high-quality premium all-inclusive resort operations and asset-light vacation scenario services.

• Albis Co Ltd (7475 JP) announced a tender offer from Life Corp (8194 JP) at JPY3,780, a 51.2% premium to the last close of JPY2,500.  
• Despite the lack of an auction and being marginally below book value (P/B of 0.95x), the offer is attractive compared to historical trading ranges and peer multiples.
• The offer is above the midpoint of the target IFA’s DCF valuation range. The required minority acceptance rate to meet the lower limit is achievable. This is a done deal. 

• This insight discusses about comparison between the financial and operational results of Midea Group (300 HK) , Haier Smart Home (6690 HK) and Gree Electric Appliances (000651 CH) 
• It compares the domestic & export performance, revenue mix and guidance for H2FY2026.
• Finally, we discuss about valuation comparison between the companies and our view.

• Gokaldas Exports has transformed from a domestic manufacturer into a multi-region exporter, almost doubling consolidated revenues from INR 2,222 crore (FY23) to INR 3,988 crore (FY26).
• Through key acquisitions (like Atraco in East Africa), the company now operates across both India and Africa, offering global buyers flexible trade regimes, distinct labor costs, and diversified sourcing options.
• Global buyers are moving beyond traditional-categories into high-volume segments like denim, bottoms, and shirts historically dominated by Bangladesh while exports to Europe are rising alongside zero-duty access under UK FTA.

• Cash Converters International (ASX:CCV) is a consumer finance company operating as a service provider, owner and franchisor of second-hand goods and financial services stores in Australia and internationally.
• The company released a strong FY26 result marginally ahead of expectation, with revenue growth of 11% to a record $429.2m (vs. RaaS $424.0m) and operating EBITDA growth of 11% over the previous corresponding period (pcp) to $67.0m (vs. RaaS $62.1m).
• This was despite the deliberate run-off of its legacy lending portfolios.

• Sumber Alfaria Trijaya (AMRT IJ) is Indonesia’s leading grocery retailer through a network of more than 24,000 outlets across the archipelago, with mini-markets being the winning format in Indonesia.
• The company booked solid growth in 2Q2026, despite domestic and international headwinds, with margins improving at the same time through a combination of price increases and an improved product mix. 
• AMRT remains confident in its target to expand its stores by 1,000 new outlets in 2026, while increasing the share of online sales to 10%. Valuations remain highly attractive.

• Beeks Financial Cloud Group 225.00p £150.02m (BKS.L)
• The cloud computing and connectivity provider for financial markets announced the signing of a multiyear agreement with the Stock Exchange of Thailand (SET) for the deployment of Beeks’ Exchange Cloud platform across the SET market.
• Beeks will deploy its Exchange Cloud platform to underpin SET’s market infrastructure, delivering a suite of connectivity market data and co-location services within a single managed environment. 

• On August 6, YUKIGUNI FACTORY CO., LTD. (hereinafter, the Company) announced its consolidated financial results for Q1 FY2027/3.
• Revenue—equivalent to net sales— increased 9.6% YoY to JPY 7,983 mn, core EBITDA increased 44.4% YoY to JPY 831 mn, and core operating profit was approximately 11 times the prior-year period at JPY 246 mn.
• For Q1, revenue reached a record high and core EBITDA substantially exceeded the same period last year. As the sales momentum in December carried through, the Company sustained the last Q3-established sales strategy—product mix initiatives and in-store measures—resulting in the realization of “organic growth driven by underlying strength,” in SIR’s view.

• Aramark reported strong third-quarter fiscal 2026 results, with momentum across its core businesses and the emerging Aramark Nexus platform.
• Organic revenue increased 9% to $5 billion, while an estimated additional 2% of growth was offset by a calendar shift mainly affecting education.
• Client retention reached a record approximately 98%, and year-to-date new client wins exceeded $1.6 billion, up 51% from the prior year.

• Delfi reported 1HFY2026 results, and the stock has fallen 12.92% since our initiating report of 8 June 2026.
• Net sales rose 2.7% while gross profit fell 4.1% and EBITDA fell 3.7% and profit attributable to shareholders rose 5.4% only because the tax charge fell 14.0%.
• Two senior posts have changed hands since April 2026, and the interim dividend held at 50% of reported profit. 

• Fast Retailing (9983 JP) earnings are one month away. The stock has corrected nearly 22% from its peak in early July. Our model just signaled a high probability LONG entry.
• The broad sentiment on the stock is bullish/outperform, based on upgraded full-year FY2026 guidance, high-margin international expansion and robust domestic same-store sales. 
• There is currently no catalyst to suggest an imminent restart of the rally but our model has flagged the stock as excessively oversold: a rally could start this week.

• Post the conclusion of the second tender offer, One & Partners pivoted from their previous stance and announced that it no longer plans to delist Golfzon Holdings for now.
• The pressure is on for One & Partners to improve corporate governance and share price of Golfzon Holdings further in the coming months.
• Since the announcement of the initial tender offer, Golfzon Holdings’ share price has climbed 89.2% to 8,050 won.

• In this insight we discuss about Midea Group (300 HK)’s resilient business model in midst of challenging industry situation. 
• We discuss how AI, Robotics & Smart Buildings Are Saving the Day for the company.
• Finally, we conclude with our view on H2 FY2026 performance.

• The 7-Eleven convenience store chain was originally created in Dallas, Texas.

• When the chain faced bankruptcy in the early 1990s, Japan’s Ito-Yokado acquired it and later renamed the combined group Seven & i (3382 JP – US$28 billion).

• Today, there are over 85,000 “7-Eleven” stores worldwide. 

• NFC (265740 KS) is a Korean cosmetics company which has rapidly increased its ODM business sales in the past two years. 
• NFC’s customers include Equalberry, Cellimax, Dr. Althea and Beauty of Joseon, brands whose products are increasingly visible outside Korea.
• Based on consensus net profit estimate of 18.5 billion won (2027E) and a 12x P/E, this would result in a market cap of 222 billion won (91% higher than now). 

• Applied Co is a small cap regional Japanese PC retailer and IT provider with surprisingly good execution that’s moving into higher margin local AI deployments (HPC) and IT services.

• Company-wide return on equity was 17.6% in FY26 despite carrying more than half its market cap in net cash.

• FY23 and FY24 were historically bad years with 12.3% RoE while FY2016-FY2022 bounced around 17-20%. This is incredible for such an over capitalized business.

• Aditya Infotech Limited (CP PLUS) is the undisputed market leader in India’s electronic video security and surveillance industry, commanding over 20% domestic market share and benefiting from structural tailwinds in smart infrastructure, enterprise digitization, and government security mandates.
• Financial execution has accelerated substantially with revenues scaling from INR 27,824.26M in FY24 to INR 42,208.12M in FY26 (23.1% CAGR), accompanied by meaningful operating leverage as gross margins expanded to 19.09% and EBITDA margins reached 13.59% in FY26.
• While fundamental business momentum remains robust, the stock trades at an elevated valuation of 91.3x P/E and 23.3x P/B against a backdrop of working capital intensity and negative free cash flow generation (-INR 1,344.13M in FY26), leaving limited margin of safety for operational missteps.

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• Defensive options positioning dominated the week of August 31.
• Across five high-severity pulses, traders piled into protective puts on names nursing sharp price declines.
• The put/call ratio (PCR) – which measures put volume relative to call volume – spiked well above seasonal norms on multiple names, with several readings hitting 52-week extremes.

• A more direct way to resolve management challenges is to address the structural issue of trading liquidity being significantly lower than market capitalization and thereby attract attention of global investors.
• Companies should strive to resolve cross-shareholdings promptly. Prompt elimination of parent-subsidiary listings—in the broad sense—will lead to improved profitability for both the parent company and its affiliates.
• This structural issue is the reason why companies that wish to continue operating based on traditional values are still able to hold a majority of voting rights.

• Meituan (3690 HK) returned to profit in 2Q26 after 3 quarters of losses.  The company had a net income of RMB 2.16B vs. a consensus loss of RMB 1.23B.
• Operating profit surged to RMB 2.69 bn, an 11-fold increase YOY, as easing competition allowed the company to reduce food delivery subsidies, improving unit economics across food and non-food categories.
• Meituan’s profit surge, combined with JD.com cutting promotional spending and Alibaba reducing sales and marketing expenses, adds to the evidence that China’s quick-commerce price war may be peaking. 

• Total US border crossings in July 2026 were up just 0.6% Y/Y (and down 5% vs July 2024)
• July 2026 crossings by aircraft were down over 3% Y/Y, and down 2% Y/Y in US West
• The figures from peak Summer travel period seem to confirm sluggish US tourism activity

Executive Summary

• Omnichannel Platform Transition: LingoAce has evolved from a predominantly digital Mandarin tutoring service, which has operated a pilot blended-learning centre in Singapore since 2020, into a multi-subject educational platform serving students across more than 180 countries. The recent rollout of physical Ace Academy centres in Singapore, the United States and Australia expands its core offering to include mathematics and English language arts.
• Institutional Backing And Scale: The company leverages a distributed network of over 8,000 certified teachers to deliver a proprietary curriculum, achieving sustained profitability and positive operating cash flow since 2024. This operational maturity is validated by US$180.0m in total capital raised from top-tier institutional investors, including Peak XV Partners and Tiger Global.
• Deteriorating Credit Profile: The company leverages a distributed network of over 8,000 certified teachers to deliver a proprietary curriculum, narrowing its pre-tax loss to a low of US$4.9m in FY24 before returning to growth-led reinvestment in FY25. It has raised US$173.0m in total from institutional investors, including Peak XV Partners (formerly Sequoia Capital India) and Tiger Global.

• The September 2026 Nikkei 225 Review was announced today. Results are discussed in [Quiddity Index] Nikkei 225 Sep26 Rebal Results: 3 ADDs, 3 DELs, No New Rules Impact. 
• Things went roughly as predicted for the selection of data they chose (there was a question about industry categorisation). Some people questioned discretionary ordering. That’s settled. 
• With 92% of the Mar27 rebal data period behind us, we take a brief look at what the March 2027 rebal. It’s kind of confusing. The third delete is tough. 

• Fox Factory Holding Corp. reported second quarter fiscal 2026 results with consolidated revenue of $358.1 million, reaching the high end of management’s guidance but reflecting a 4.5% year-over-year decline and a 2.9% sequential decrease.
• The sequential revenue dip was anticipated, attributed primarily to portfolio optimization after the Phoenix operations divestiture, shipment timing effects, and a continued aluminum supply disruption impacting Ford F-150 volumes.
• Despite these headwinds, the company expressed confidence in a revenue growth trajectory returning in the back half of 2026 and into 2027, bolstered by continued investment in research and development and new product introductions.

• Installed Building Products reported consolidated net revenue growth of 2% to $778 million in the second quarter of 2026 compared to the prior year, supported by contributions from recent acquisitions and growth within commercial installation, manufacturing, and distribution segments.
• Same-branch sales declined slightly by less than 1%, with new residential installation sales decreasing due to ongoing affordability pressures and subdued consumer confidence, while commercial installation sales grew by 10%, and heavy commercial sales increased over 15%.
• Multifamily end market backlog expanded, indicating stability in that segment despite overall softening in single-family housing starts, which decreased 4% year-over-year, while multifamily starts increased 10%.

• Papa John’s International, Inc. reported its second quarter of 2026 results amid ongoing efforts to execute a multi-faceted transformation plan aimed at strengthening its competitive position and financial performance.
• The company acknowledged that this transformation is taking longer than initially expected, with underperformance particularly evident in its North American segment, where comparable sales declined by 8.3%.
• Conversely, the International segment showed continued resilience, achieving 1.5% comparable sales growth for the seventh consecutive quarter, highlighted by strong results in the U.K. (+10%) and Korea (+9%), while the Middle East remained flat due to regional conflicts.

• PENN Entertainment reported second quarter 2026 results marked by continued growth in its retail segment, further improvements in its Interactive division, and ongoing progress in balance sheet deleveraging.
• The company achieved record quarterly retail revenues of $1.5 billion and adjusted EBITDAR of $517.2 million, reflecting year-over-year increases of approximately 4% and 6%, respectively.
• Importantly, these gains were supported by same-store growth and significant contributions from four recently completed development projects, including new hotel towers and property relocations.

• Planet Fitness operates a large and growing fitness club network with a focus on serving beginner and casual gym goers through a value-oriented and judgment-free brand proposition.
• In the second quarter of 2026, Planet Fitness reported system-wide member growth of 3.6% year-over-year, ending with 21.5 million members.
• Same-club sales increased by 1.7%, driven entirely by rate growth, and the company opened 23 new clubs.

• Four days into life as a publicly-traded company, SHEIN shares are down more than 21%
• If OP margin remains depressed in FY27, it appears SHEIN is still trading ~18x forward EPS
• However, even a modest OP margin lift next year implies a PER of just 11-14x

• Spectrum Brands Holdings, Inc. reported third-quarter fiscal 2026 results with overall net sales growth and mixed segment performance amid a challenging macroeconomic and geopolitical environment.
• Net sales increased 7.7% year-over-year, while organic sales grew 6.6% excluding foreign exchange effects.
• Global Pet Care, Home & Garden, and Home & Personal Care all contributed to growth, although Home & Personal Care softened as expected.

• With the unwinding of cross-shareholdings now irreversible, the company is keen to maintain its defensive stance. This defensive stance is aimed at managing the shareholders’ meeting.
• 81% of companies with fiscal years ending in March held their AGMs over a four-day period in late June, while only 1.6% of AGMs allowed for online questions and voting.
• While calls for AGM disclosures in annual securities reports were expected to help break with past conventions, only two companies changed record dates to postpone AGM dates to July.

• The Wendy’s Company reported a challenging second quarter for fiscal 2026, highlighting a notable decline in global systemwide sales of 6.5%.
• This deterioration was primarily driven by a 7% decrease in U.S. same-restaurant sales and a 2.3% drop internationally, with Canada experiencing particular softness.
• These sales pressures translated into reduced adjusted EBITDA, which declined by $22.5 million to $124.1 million, and an adjusted earnings per share of $0.18.

• Old Chang Kee Ltd. (OCK) is a Singapore-based food manufacturer, distributor and retailer offering affordable ready-to-eat food products under the “Old Chang Kee” brand.
• Its signature curry puff Curry’O is sold alongside a wide range of seafood, chicken and dessert items.
• Its revenue is mainly derived from retail sales and non-retail channels such as delivery and catering. 

• Asset-Light Compounding Engine: Hilton Worldwide Holdings Inc. operates an industry-leading, capital-light franchise and management model (>90% fee-based rooms) that generates predictable, high-margin cash flows, minimal maintenance capital expenditure requirements, and exceptional free cash flow conversion exceeding 95%.
• Formidable Brand Architecture and Loyalty Moat: With a global portfolio spanning 24+ differentiated brands from luxury to premium economy and a rapidly growing Hilton Honors loyalty membership of over 180 million members, Hilton captures over 50% of room nights directly, driving superior RevPAR index premiums for hotel owners and reinforcing developer preference.
• Robust Unit Growth and Capital Returns: Net unit growth (NUG) remains disciplined at 5-6% annually, supported by an industry-leading pipeline and rapid-conversion brand rollouts (Spark, LivSmart Studios, Graduate Hotels). Robust balance sheet management enables significant capital return via share repurchases and regular dividend distributions, balanced against premium valuation multiples (EV/EBITDA of 26.5x).

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• PPI posted excellent results last year, despite increases in SG&A costs, and new chains should mean significantly more growth to come.
• The leading discounter already has five Robin Hood supermarkets up and running and will open the first in Tokyo in December.
• The mix of cheap food and entertaining variety goods is a compelling combination and leaves competitors worried.

• Jamieson Wellness Inc. (TSX: JWEL) represents Canada’s preeminent consumer health platform, holding a commanding domestic market share (over 2x the nearest branded competitor) with an accelerating international footprint across the United States and China.
• Financial performance demonstrates robust operational execution, evidenced by a 3-year revenue CAGR of 14.52% and Free Cash Flow CAGR of 23.95%, supported by gross margin expansion from 34.54% in FY2023 to 41.16% in FY2025 as higher-margin branded products scale.
• At an EV/EBITDA of 16.2x and P/E of 24.1x, JWEL trades at a well-justified premium to micro-cap direct-selling peers, reflecting superior organic growth, premium brand equity, robust balance sheet resilience, and an attractive 2.03% dividend yield growing at double digits.

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• Differentiated Liquid Alternative Exposure: IQ Merger Arbitrage ETF (MNA US) provides institutional investors with systematic, rules-based exposure to global announced merger and acquisition (M&A) transactions, capturing deal spread premiums while systematically hedging broad equity market beta.
• Uncorrelated Risk-Adjusted Profile: Managing approximately $250M to $256M in AUM with a net expense ratio of 0.77%, MNA delivers an absolute return profile characterized by low beta (~0.10) and low correlation (<0.20) relative to broad equity indices, functioning as a defensive portfolio diversifier and volatility dampener.
• Macro Regime & Deal Arbitrage Dynamics: Fund returns are primarily governed by deal completion velocity, risk-free interest rates (which set baseline gross deal spreads), and antitrust regulatory enforcement across major jurisdictions including the US, EU, and UK.

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• The proposed separate listing of Jollibee Foods Corporation International (JFCI) on the Hong Kong Stock Exchange (HKEX), announced on September 1, 2026, is a strategic pivot away from the initially planned US IPO. While HKEX offers closer valuation benchmarks for Asian consumer plays, the carve-out is financially complex, requiring highly structured royalty agreements where the Philippine parent retains ultimate brand IP and charges JFCI licensing fees to support domestic cash flows.
• The structural removal of Jollibee’s 40% foreign ownership cap in February 2025 was achieved through sophisticated asset engineering. By amending its articles of incorporation to divest direct land ownership and transition properties into real estate vehicles (including a DoubleDragon-sponsored industrial REIT), Jollibee unlocked unlimited foreign equity access at the expense of converting capital assets into recurring lease liabilities.
• Domestic operating margins are structurally insulated by massive centralized commissary scale (reaching a record 9.1% operating margin in June 2026), but international operations lack this supply chain density. JFCI is forced to rely on expensive third-party co-packers in North America, compressing margins. High-margin acquisitions like South Korea’s Compose Coffee (41% profit margin in 2023) act as financial buffers to offset structural drags from legacy underperforming assets like Smashburger.

• Marriott Vacations Worldwide reported second quarter 2026 results marked by notable growth in contract sales and profitability, supported by strategic commercial initiatives and operational discipline.
• Contract sales rose 22% year-over-year to $545 million, fueled largely by a 23% increase in volume per guest (VPG) to $4,477, driven by improvements in owner sales which grew 41% alongside a 33% lift in owner VPG.
• These gains led to adjusted EBITDA of $215 million, a 6% increase from the prior year and above the midpoint of guidance.

• The Molson Coors Beverage Company reported results for its second quarter of fiscal year 2026 that reflected ongoing challenges in the global beer industry, alongside strategic initiatives aimed at portfolio transformation and cost management.
• Consolidated net sales revenue declined by 3.6% on a constant currency basis, with underlying pretax income down 27.8% and underlying earnings per share decreasing 22.9%, impacted by a combination of external macroeconomic headwinds, timing effects, and operational factors.
• Industry-wide pressures included inflation, heightened energy costs, geopolitical uncertainty—most notably linked to the conflict in Iran—and intensified competition around major events such as the World Cup.

• Nexstar Media Group reported record financial results for the second quarter of 2026, reflecting significant contributions from its full-quarter consolidation of TEGNA operations.
• Total revenue reached nearly $2 billion, representing a 62.2% increase year-over-year, driven primarily by the acquisition and growth in advertising and distribution revenue.
• Adjusted EBITDA rose to $633 million with a 31.8% margin, up from $389 million a year prior, while adjusted free cash flow more than doubled to $238 million for the quarter.

• Our 2023 thesis correctly identified RH as a highly differentiated luxury brand, but we overestimated how reliably that differentiation would translate into durable compounding.
• We underweighted industry crowding and low purchase frequency, but most importantly the reinforcing effect of cyclicality, fixed costs, and financial leverage.
• The lesson is to test repeatability, customer alternatives, downside economics, and balance-sheet resilience before translating uniqueness and TAM into a moat.

• Over the past decade, the Japanese sportswear brand Mizuno (8022 JP – US$1.9 billion) has compounded at a 16.5% annual rate

• Of course, past performance does not indicate future performance.

• But it still begs the question: why? And what does the future look like? I’ve been working with recent graduate Meera Kapoor to understand the company from the inside out. 

• 38 companies featured insider acquisitions in August 2026. Aggregate transaction value was approximately INR 2 billion — a material step up from July 2026’s INR 270 million.
• We highlight large and small cap companies that experienced significant insider buying during August 2026, as reported on the stock exchanges.
• We also present key sectors which saw insider buying during the month along with names which have moved significantly above the insider buying price.

• We have to admit that brand acquisitions are a sustainable path forward.
• Domestically, the ANTA brand is placing increasing emphasis on online retail.
• Internationally, Anta plans to open 1,000 stores in Southeast Asia.

• ValueMax is a secured lender that also retails gold.
• Three engines of business: Pawnbroking, property-backed moneylending, retail & trading of jewellery and gold.
• The receivables on its balance sheet are its loan book, not trade debtors, so money lent runs through operating cash flow, and a growing book reports a cash outflow by its design.

• Iveco closed at €14.01 on 2 September against Tata Motors’ €14.10 cash offer, leaving 0.64% gross upside, or 3.84% annualised assuming settlement on 3 November.
• All required sector regulatory approvals have now been obtained. Exor has committed its 27.1% stake, while the 95% acceptance threshold can fall to 80% following EGM approval.
• Completion risk is now low, but the return at €14.01 is insufficient. We remain Neutral and would become more interested around €13.85–13.90, equivalent to 8.61–10.80% annualised.

• Junlebao, a formerly Mengniu-backed Chinese dairy producer, has filed its prospectus with the HKEX. CICC and MS are the joint sponsors.
• We look at the company’s core segments, liquid dairy products and formula.
• We then look at the company’s financial profile, margin pressure, pre-IPO valuation and investor backing.

• Back on the 6th January this year, Jollibee (JFC PM) announced it planned to separate its international operations and business from its Philippine operations and business.
• On the 1st September, Jollibee announced it has selected HKEx for an in-specie distribution. 
• Timing is unknown. Jollibee is trading below its five-year averages on all metrics.

• The Lottomatica-CIRSA merger announced on September 2, 2026, creates a global gaming powerhouse with a pro forma adjusted EBITDA of approximately €2 billion, but the targeted €115 million in pre-tax synergies is highly conservative and faces significant integration headwinds due to CIRSA’s complex, localized land-based footprint and Latin American exposure.
• The ultra-short 3-month lock-up period for Blackstone’s 24% equity stake represents a severe and immediate overhang threat. It strongly indicates that Blackstone is prioritizing a rapid, highly structured exit via secondary markets or block trades rather than a long-term strategic partnership.
• The Italian regulatory environment is rapidly consolidating into a tightly governed oligopoly following the implementation of the November 2025 online concession regime. However, the upcoming 2027–2028 retail concession renewal cycle poses massive capital expenditure risks that could easily disrupt the combined group’s target leverage corridor of 2.0-2.5x.

• Instacart, a leading grocery technology platform, reported a solid second quarter of 2026 with gross transaction value (GTV) growing 14% year-over-year to $10.35 billion, driven primarily by increased monthly customers.
• Total revenue rose 14% to $1.04 billion, supported by a 16% growth in advertising and other revenue, which outpaced GTV growth.
• The company’s average order value increased 4% to $115, underlining deeper customer engagement.

• The Fox Corporation reported strong financial results for fiscal year 2026, marked by record annual revenue exceeding $17 billion and a record EBITDA of $3.9 billion, representing growth of 5% and 8% respectively versus the prior year.
• This performance was notable given the particularly strong comparison base, which included the Super Bowl and the U.S. presidential election in fiscal 2025.
• The fiscal fourth quarter saw a significant acceleration in growth, with total revenue up 28% to $4.2 billion and EBITDA up 27% to $1.2 billion.