Consumer

• SHEIN, a global online fashion and lifestyle retailer, launched its Hong Kong IPO to raise USD 1,768m. GS, MS and JPM are the joint sponsors.
• In this note, we look at the deal terms and recap our valuation note for the company.
• We analyze cornerstone and sponsor performance and assess the risk-reward of the deal.

• SHEIN Global Holdings (625 HK) could raise up to US$2bn in its IPO if the overallotment option is exercised, valuing the company at HK$212bn (US$27bn).
• Cornerstone investors will take up between 21.7-22.6% of the base offering and those shares will be locked up for 6 months from listing date.
• Fast Entry inclusion in the HSCI is likely but Southbound Stock Connect could take over a year from listing date. Earliest global index inclusion in March.

• SHEIN Global Holdings (625 HK), a global online fashion and lifestyle company, aims to raise up to US$1.8bn in its Hong Kong listing.
• Shein is a global online fashion and lifestyle company serving approximately 273m active customers in approximately 160 markets in 2025.
• We have looked at the company’s past performance and provided our thoughts on valuations in our previous notes. In this note, we talk about the IPO pricing.

• I discuss a trading strategy for Shein which starts trading in Hong Kong on 1 September. My base case valuation of Shein is target price of HK48.2 per share.
• I think its share price needs to decline another 25% or more for the valuation of the company to be more compelling.
• That would mean its share price would need to decline to about HK36.2 per share. 

• Shein Group Ltd filed its prospectus for a Hong Kong listing on July 26th. SHEIN has adopted a dual-class share structure, which it expects to maintain post-IPO.
• Shein is widely classified as the leading example of ultra-fast fashion.  It pushes traditional fast-fashion models to an extreme level through real-time trend tracking and massive daily output.
• US de minimis exemption ended in August 2025,  increasing fulfillment costs for China-origin shipments. EU DSA investigation and escalating regulatory fines across multiple jurisdictions create compliance costs and reputational risk.

• Shein Global launched Hongkong IPO to raise nearly HK$13.9B. They are a global online fashion and lifestyle company.
• Shein Global intends to use the proceeds for technology upgradation, enhance brand awareness, promote corporate responsibility (compliance, governance, climate initiatives etc) and for general corporate purpose.
• Valuation seems reasonable. The operational scale, technological infrastructure and supply chain efficiency does make this issue worth a try for investors.

• SHEIN Global Holdings (625 HK) has an ambitious IPO plan to raise HK$13.1bn. However, the volatile earnings record and challenging environment require a sizeable safety margin.
• We project a 3-year EPS CAGR of -5.3% as profitability will only slightly recover next year. Yet, our forecasts may still be optimistic.
• The maximum IPO price (HK$49.50) implies a FY16 PER of 18.5x, but its small size and volatile growth are negatives. We will only be involved at the low end.

• US online travel agent Booking Holdings (BKNG US — US$158 billion) built a dominant online travel business across the United States and Europe over the past 20 years.
• And the business seems to be going from strength to strength.
• In Asia, we have India’s MakeMyTrip (MMYT US – US$5.7 billion), which dominates that market and trades at a 5.0x EV/Sales multiple with weak profitability. 

• The legacy domestic growth engine has hit a structural ceiling. The tightening of private medical indemnity insurance (silbi) reimbursement rules in South Korea has severely constrained the high-margin hospital-exclusive Zeroid MD channel. The transition of the Zeroid brand into mass-retail channels like Olive Young in late 2024 was an essential defense mechanism but is diluting profitability due to intense competition and heavy marketing requirements.
• Operating margins remain healthy but are increasingly vulnerable to K-beauty’s structural inflation of customer acquisition costs (CAC). While Neopharm reported a solid 21.77% operating margin for FY 2025, domestic marketing expenses and slotting fees demanded by the dominant multi-brand store (MBS) channel, Olive Young, are compressing margins.
• Inorganic growth through M&A is urgently required to deploy cash and fill critical portfolio gaps. Despite holding 145.94 billion KRW in net cash with zero debt as of late 2025, management has been overly conservative. A capital allocation policy that prioritizes a 33% to 35% dividend payout ratio over aggressive, strategic acquisitions prevents the company from acquiring active ingredient-led brands (e.g., PDRN, Retinol) or international distribution infrastructure necessary to break the legacy brand ceiling.

• Lalithaa Jewellery Mart Ltd (1607844D IN) raised US$178m in its India IPO.
• Lalithaa Jewellery Mart Ltd (LJML) is a jewellery retailer operating under the brand name “Lalithaa”, offering a range of gold, silver, and diamond jewellery.
• We have looked at the company’s past performance and valuations in our previous notes. In this note, we will talk about the trading dynamics.

• Alibaba (9988 HK) / Alibaba (BABA US) has announced a placement of HK$80bn (US$10.2bn) to invest in its full stack AI capabilities and to expand and enhance its AI infrastructure.
• The shares are being offered at HK$112.7/share, an 8.4% discount to the Alibaba (9988 HK) close and a 3.6% discount to the Alibaba (BABA US) close.
• There will be passive buying from trackers of one global index later this week, while trackers of the other global index will buy in November. No impact for local indices.

• Alibaba (9988 HK)  is looking to raise around US$10bn to fund its AI spending.
• Alibaba (BABA US) recently reported its 1H26 results, with elevated AI capex and negative free cash flows.
• In this note, we will talk about the placement and run the deal through our ECM framework.

• Aequitas Research’s weekly update on the IPOs, placements, lockup expiry and other ECM linked events that were covered by the team over the past week.
• On the IPO front, SHEIN Global Holdings (SHEIN HK) is set to launch this week/today, as per media reports, while deal in India continue to flow in.
• On the placement front, Alibaba (9988 HK) launched the largest HK primary raising yet on Sunday. 

• Lalithaa Jewellery Mart Ltd (1607844D IN) raised INR 17 billion in its IPO,which is a combination of fresh issue of INR 12 billion and offer for sale of INR 5billion.
• The company is jewelery retailer with a strong regional presence across South India, catering primarily to the mass and value-conscious customer segment.
• We had discussed about ground feedback from Chennai – Lalitha Jewellery IPO – On Ground Feedback From Chennai . This insight discusses about listing dynamics.

• Qdama International Holding Ltd. is China’s largest community-based fresh product chain, operating primarily through a franchise model, offering fresh products and known for its ‘no overnight meat’ commitment.
• Qdama is China’s largest community-based fresh product chain, with GMV reaching RMB14.3 billion in 2025 and 3,014 stores as of June 30, 2026.
• Qdama reported RMB11,744,089 revenue in 2023, RMB295,767 adjusted net profit in 2025, and accumulated losses of RMB2,719.1 million as of June 30, 2026.

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• Ethos has crossed 100 boutiques, Q1 FY27 revenue grew 33.3%, and owned brand Favre Leuba is entering its commercial scale-up phase.
• Owned and exclusive brands can offer better economics, differentiation and global optionality than conventional authorised retail.
• The thesis is no longer only store-led growth; investors must separately value retail execution and the risk-adjusted option value of brand ownership.

• Inflection Point in Raw Milk Deflation: Farm-gate raw milk prices in China have stabilized around the 3.02 to 3.04 yuan/kg range and recently broke above the 3.05 yuan/kg floor in late July 2026. This recovery, supported by aggressive upstream cow culling and lower feed costs, is driving a financial turnaround for major farming operations. However, a structural return to high prices is unlikely due to persistent domestic oversupply and weak consumer sentiment.
• Chilled Liquid Milk as the Core Growth Engine: Junlebao is successfully navigating the steep decline in China’s infant formula sector—which fell to 22.1% of company revenue in late 2025—by pivoting to chilled liquid milk and premium fresh milk. Their flagship fresh milk brand, Yuexianhuo, generated 2.04 billion yuan in H1 2026, registering a 55.4% year-on-year growth rate and securing more than 50% of the high-end fresh milk market.
• High Leverage and Balance Sheet Strain: Despite solid operational growth in H1 2026, with revenue reaching 10.61 billion yuan, Junlebao faces severe capital allocation constraints. Its debt-to-asset ratio stood at 77.1% as of late 2025, significantly exceeding the industry average of approximately 45%. Post-IPO, the primary capital allocation challenge will be addressing its net current liabilities and integrating the heavy capital expenditures of its 63% self-sufficient upstream pasture model.

• Junlebao Dairy Group Co., Ltd. is a reputable Chinese dairy company with over 30 years of experience. It ranked No. 3 in China’s dairy market in 2025 with a 4.3%.
• The company operated 33 dairy farms and 20 dairy production facilities across China as of June 30, 2026, cooperating with approximately 5,200 distributors.
• The company reported a net loss attributable to owners of (21,442) in 2023 and net current liabilities of 5,276,220 as of December 31, 2024.

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• 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 five 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.

• A weekly summary of key developments in ECM and Event-Driven names that I track in Hong Kong, Australia, New Zealand, Singapore, Japan, Indonesia, Malaysia, Thailand, Korea, India, and Chinese ADRs.
• ECM developments: SHEIN Global Holdings (SHEIN HK) and GCash (Mynt) (GCASH PM) IPOs; Lintec Corp (7966 JP) secondary offering.
• Event-Driven developments: Baudroie (4413 JP), Ausgold Ltd (AUC AU), Carnaby Resources (CNB AU), EQT Holdings (EQT AU), European Lithium (EUR AU), Steadfast (SDF AU), Reliance Worldwide Corp (RWC AU). 

• Dorman Products reported second quarter 2026 results characterized by record sales, earnings, and strong cash flow generation.
• The company benefited from a recovery of IEEPA tariff costs, which positively impacted margins and earnings per share.
• Consolidated net sales reached $545 million, reflecting a modest 1% increase year-over-year, influenced by pricing reductions stemming from a more stable and lower tariff environment.

• Kimberly-Clark’s second quarter 2026 results demonstrate ongoing resilience amidst a challenging global environment.
• The company reported its tenth consecutive quarter of positive volume plus mix growth and maintained global weighted share, supported by strong gross productivity gains.
• Despite facing headwinds, including consumer pressure, moderating category growth, and disruptive events, the company achieved solid operating profit and earnings per share that exceeded internal expectations, largely due to a favorable $45 million tariff refund and successful productivity improvements of 6.4%.

• Sysco Corporation reported fourth-quarter fiscal 2026 results showing solid operational momentum and financial performance across its core business segments.
• Total revenues grew 4.7% year-over-year to over $22 billion, supported by positive case volume growth in both local and national customers within the U.S. Foodservice (USFS) segment, as well as continued robust expansion internationally.
• Adjusted earnings per share (EPS) for the quarter came in at $1.53, surpassing prior guidance, leading to a full-year EPS of $4.61, also above expectations.

• Archer Daniels Midland Company reported a solid financial performance in the second quarter of 2026, highlighted by adjusted earnings per share of $1.84 and a total segment operating profit of $1.5 billion.
• The company’s trailing four-quarter adjusted return on invested capital reached 7.8%, while cash flow from operations before working capital changes totaled $1.8 billion during the first half of the year.
• The results reflect favorable contributions from a constructive biofuels margin environment, strong commercial and operational execution, elevated global energy prices, and momentum in the Nutrition segment.

• While the number of shareholder proposals passed at the June AGMs remained at the usual level of two, those receiving over 40% approval increased from four in 2025 to 11.
• The shareholding of foreigners, based on votes, has risen to 28.3%, and while the influence of overseas investors is growing, they still need support of domestic investors to secure majority.
• Even if not approved, the company should respect shareholder proposals that receive high approval rate as the shareholders views, and it’s important to maintain a sense of accountability toward shareholders.

• The terminal value buffer is longer than consensus models assume, but the transition risk is mispriced in the terminal growth rate (TGR). While S&P Global Mobility data showing the average US vehicle age at 12.6 years pushes the structural headwind out past 2035, standard 2.0% TGR assumptions fail to account for the structural margin compression of a commercial-heavy, high-SKU-density model.
• Dual-inventory management will degrade working capital efficiency before SKU obsolescence occurs. AutoZone must carry both ICE and EV parts simultaneously, which will compress its historically low inventory turns of 1.3x to 1.4x and increase working capital intensity, as purging legacy ICE parts prematurely is not a viable option.
• The commercial DIFM acceleration acts as a volume hedge but a margin drag. Management’s private mitigation strategy relies on capturing fleet and commercial business through complex thermal and suspension components. However, this commercial shift dilutes AutoZone’s 52% to 53% gross margin, requiring substantial SG&A leverage to preserve the historical 20% to 21% operating margin.

• CK Hutchison (1 HK) initiates a second arbitration against the Republic of Panama after Panama’s highest court annulled CKH’s port contracts earlier this year. 
• After falling post-1H26 results,  China Unicom (762 HK) is inexpensive to its parent China United Network A (600050 CH) – its hybrid domestic A-share twin 
• The “upside-down world” continues as Trump embraces North Korea, and amps up hostility towards it southern neighbour, possibly disrupting Hanwha’s acquisition of Austal Ltd (ASB AU)‘s US ops. 

• Last week, CK Hutchison (1 HK) reported a 6.1% and 6.4% lift in 1H26 revenue and underlying net profit (excluding one-off items) to HK$241.6bn and HK$12.6bn. Pretty decent numbers.
• End-July, CKH offloaded its 49% stake in VodafoneThree for US$5.8bn. No mention of the AS Watson IPO in the results or the anaylsts’ call. Reportedly it’s been delayed to 2027.
• The Panama port cessation incurred a HK$496mn hit to EBITDA. CKH has now announced a  Investment Treaty Arbitration against the Panamanian Republic, an entirely separate claim to the contractual arbitration.

• Ather’s AtherStack Pro software package has achieved a 94% attach rate, meaning almost every customer buying an Ather scooter is also buying connected features.
• Non-Vehicle revenue, including software, charging, accessories, spares, and services, contributed 14% of operating revenue in Q1 FY27, up from 13% YoY.
• Ather’s early success suggests software monetisation can become an additional margin lever.

• All Time Plastics (ALLTIME IN) delivered steady growth with resilient gross margins; however, FY26 profitability weakened as geopolitical headwinds and capacity additions increased overheads, while utilisation remained subdued.
• FY25 receivables surged 79% despite 9% revenue growth, though normalised subsequently; recurring discrepancies between books and bank-reported working capital raise concerns over periodic reporting and reconciliation controls.
• Governance warrants attention given sizeable pre-IPO property purchases from promoters, high promoter/KMP remuneration and an unexplained INR 150 mn corporate loan.

• Cautious Bullish on the KC HRW over CBOT SRW class spread (KE-ZW). Neutral on flat wheat price.

• Treefera captures the winter-wheat crop at the first mile, at plot level.

• That resolution exposes the defining feature of the 2026 season: the shortfall sits overwhelmingly in hard red winter, while soft red winter and the white classes hold near trend.

• Indofood Agri Resources Ltd (“IndoAgri”) is a vertically integrated agribusiness with activities spanning from Research & Development (“R&D”), seed breeding, and oil palm cultivation to the extraction & processing of Crude Palm Oil (“CPO”) and Palm Kernel (“PK”), as well as the production & marketing of edible oil, margarine, and other related products and derivatives.
• For the six months ended 30 June 2026 (1H FY2026), revenue rose by 2.5% to Rp 9.6 trillion in 1H FY2026 from Rp 9.4 trillion in 1H FY2025.
• Third party plantations revenue fell by 11.7% year on-year (“y-o-y”) to Rp 2.1 trillion in 1H FY2026 amid higher portion of CPO sold internally to its Edible Oils & Fats (“EOF”) division, while third party EOF revenue rose by 7.4% y-o-y to Rp 7.5 trillion in 1H FY2026.

• UK Telecom Exit Liquidity Windfall: CK Hutchison’s sudden £4.3 billion (€4.9 billion) cash exit from its 49% stake in VodafoneThree on July 30, 2026, completely reshapes its balance sheet. Confronted with onerous UK CMA behavioural commitments, including an £11.1 billion network upgrade, CK Hutchison opted for immediate asset monetization, generating HK$45.5 billion in cash to defend its Moody’s A2 and Fitch A investment-grade credit ratings.
• Geopolitical Squeeze and Ports Stagnation: The escalating concession dispute in Panama, highlighted by CK Hutchison filing a $1.5 billion (HK$11.7 billion) treaty arbitration on August 20, 2026, represents a broader sovereign risk read-through. This escalating dispute and national security scrutiny have indefinitely delayed the $22.8 billion global ports portfolio sale to BlackRock and MSC, forcing the company to hold onto low-growth, high-capex marine terminals.
• The Watson Valuation Standoff: The long-delayed A.S. Watson IPO remains stalled at a rigid $30 billion target valuation. Because public markets price retail peers at 7x to 9x EBITDA while CK Hutchison demands an 11x to 12x multiple to facilitate a clean exit for its 24.95% minority partner Temasek, the parent company prefers to extract high-margin retail dividends rather than accept an IPO discount.

• Scale Multi-Brand Operator with Strong Regional Leadership: AmRest Holdings SE operates a diversified footprint of over 2,100 restaurants across Central & Eastern Europe and Western Europe, uniquely combining premier global franchise partnerships (KFC, Pizza Hut, Starbucks) with high-margin proprietary casual dining and sushi brands (La Tagliatella, Sushi Shop).
• Robust Free Cash Flow Generation Despite Thin Net Margins: While inflationary cost pressures and winter seasonality continue to weigh on accounting net margins (FY25 net margin of 0.63%), AmRest consistently generates substantial operating cash flow (>PLN 1.44B in FY25) and robust Free Cash Flow to Equity (PLN 800.25M in FY25), facilitating ongoing balance sheet deleveraging and steady capital return.
• Compelling Valuation Discount to Global Peers: Trading at an attractive 5.4x EV/EBITDA, 0.8x EV/Sales, and 1.5x P/B, AmRest is priced at a steep discount to international restaurant peers, offering an asymmetrical risk/reward profile as digital efficiencies and network optimization drive operational re-rating.

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• Sportradar International Ltd. reported its second quarter 2026 financial results, highlighting 19% year-over-year revenue growth to EUR 378 million, primarily driven by increased betting and gaming content revenues, particularly through the monetization of IMG ARENA rights.
• On a constant currency basis, revenue growth was approximately 21%.
• The company achieved an adjusted EBITDA of EUR 76 million, reflecting a 19% increase compared to the prior year, supported by operational efficiencies and synergy realization from IMG ARENA integration.

• We are raising our rating on Vera Bradley to Buy (from Hold) and instituting a price target of $5, as we believe the gains from “Project Sunshine” are becoming materially evident and will begin to register bottom line upside in 2HFY27 and beyond, as we are seeing material progress in main line and outlet stores and the beginning of a resurgence in the wholesale channel.
• Although we are leaving our projections unchanged (for now), we believe, beginning in 2HFY27 (and beyond), the company has the ability to materially outperform our projections.

• Bullish crop, cautiously bearish price — the damaging heat missed the eastern belt, where most of the crop is grown

• Following the August WASDE release on 12 August, December corn futures rallied about 3%, from a pre-release level of 469.25 cents to 483.25 cents at the close on 14 August, as USDA’s lower yield estimate came in below market expectations.

• Over the past month, headlines have pointed to a poor corn crop, driven by heat and drought across the belt.

• I-Scream Media reported excellent results in 1H26. The company generated sales of 92.5 billion won (up 18.5% YoY) and operating profit of 23.9 billion won (up 64.5% YoY) in 1H26.
• The company is listening to its minority shareholders and seriously improving its corporate governance with higher shareholder returns. Estimated dividend yield is 13% this year.
• I Scream Media is trading at P/E of 4.5x and EV/EBITDA of 1.3x based on recent prices and TTM financials. Net cash as a percentage of market cap is 74%. 

• EPS miss (non-GAAP US$1.26 vs US$1.50) is discrete: AI Labs RMB13.9bn EBITA loss, peaked QoQ per management; EC DSA fine; RMB4.5bn goodwill impairment.
• AI Cloud +45% YoY; segment EBITA +133%; AI revenue reaches 35% of external cloud — twelfth consecutive quarter of triple-digit growth.
• Maintain BULLISH, with unchanged FV US$170/ADS & HK$166 — SOTP-derived: commerce 8x FY27F EBITA, cloud 4x FY27F EV/Sales, 10% geopolitical discount. 

• Clear Channel Outdoor Holdings, Inc. appeared to have a relatively straightforward path toward a $6.2 billion takeover after agreeing in February to be acquired by Mubadala Capital and TWG Global for $2.43 per share.
• That narrative has become more complicated.
• Clear Channel shares fell 2.3% following a Bloomberg report detailing financial issues surrounding Mark Walter’s TWG Global, including efforts to address loans on an insurer’s balance sheet that have reportedly drawn scrutiny from federal prosecutors.

• Abbey Plc (ABEYF) is a well-established residential housebuilder and property developer with primary operational hubs across the United Kingdom (Abbey Homes), Ireland (Abbey New Homes), and the Czech Republic (Prague), complemented by its UK plant hire subsidiary (M&J Engineers) and property rental assets.
• The group’s recent three-year financial trajectory reflects pronounced cyclical headwinds and margin compression: gross margins contracted from 31.01% in FY18 to 25.09% in FY20, while net income fell from €48.93m to €26.52m (-20.02% 3-year CAGR), leading to negative operating cash flow (-€7.68m) and free cash flow (-€14.05m) in FY20 alongside a dividend suspension.
• While long-term fundamentals remain supported by structural housing deficits in the UK and Ireland and substantial balance sheet asset backing (€378.7m in net assets), investor sentiment is constrained by high cyclical exposure to mortgage rates, input cost inflation, and significant ownership concentration by Gallagher Holdings.

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• In Taotao’s overall business, the growth momentum is rapidly converging towards a single product, but the boom of LSEV masked the overall decline of Taotao’s traditional core business.
• The consecutive two quarters of performance declining contrasted sharply with the YoY increasing annual report data, drawing the attention of the capital market to the sustainability of its explosive growth.
• Based on 2026 forecast, a conservative scenario could be P/E of 18x. A neutral scenario could be P/E of 22x, and an optimistic scenario could be P/E of 25x.

• Sustained Pricing Power via Controlled Distribution: Alliance Laundry Systems maintains its 40% North American commercial market share through a highly exclusive, regionally locked distributor network. By systematically acquiring major regional distributors like Metropolitan Laundry and Super Laundry, Alliance is capturing the distributor margin pool (typically low-to-mid 20% EBITDA margins) and establishing direct market offices in high-density urban areas.
• Deleveraging Ahead of Schedule Post-IPO: Following its $22.00 per share IPO in October 2025, Alliance has rapidly optimized its balance sheet, reducing net leverage from over 5.0x to 2.8x by the end of 2025, with public guidance pointing toward the low 2x range by the end of 2026. This cash generation is supported by low capital intensity (capex at ~3% of net revenues historically, falling to 1.5% in 1H 2026).
• Macro Resilience and Replacement Cycle Stability: Despite elevated interest rates compressing independent laundromat cash-on-cash yields, the commercial laundry sector remains highly resilient due to a consistent 10-to-15-year replacement cycle. Leading indicators of sector inflection—specifically distributor backlog levels and regional occupancy trends in multi-family and hospitality end-markets—show that demand volume remains stable, supporting revised FY2026 revenue growth guidance of 6% to 7%.

• This edition centers on two shocks arriving in the same week: USDA’s 12 August WASDE delivered a bigger-than-expected corn yield cut alongside a wheat trim, compounding a Black Sea supply disruption, while a faltering Indian monsoon and Vietnamese dry spells point to a separate El Nino pattern building into the fourth quarter across sugar and coffee.
• Novorossiysk’s two disabled terminals remove roughly 15.6 million tons of annual Russian wheat export capacity, arriving as Treefera’s US winter wheat model had already tracked harvested area down to 9.81 million hectares for the season just completed.
• Treefera’s US Corn model reads 12 August yield at 185.9 bushels per acre, 5.2 bu/ac above USDA’s post-WASDE figure, a gap that has narrowed toward Treefera’s estimate in each of the last six seasons.

• Structural Shift to Asset-Light Intermediary: Following the disposal of its Chinese manufacturing subsidiary (RLSP) in November 2025, Rubber Leaf has transitioned into a trading intermediary with zero in-house manufacturing capabilities, resulting in a headcount drop to just 10 employees as of late 2025.
• Severe Liquidity Constraints and Solvency Risks: As of June 30, 2026, the company operated with just $1,361 in cash against a working capital deficit of $2.3 million, leaving it highly vulnerable to raw-material price spikes and unable to absorb supply-chain shocks.
• Extreme Related-Party Dependency and Margin Squeeze: Rubber Leaf is structurally dependent on related parties, purchasing 100% of its inventory from Yongliansen (which purchased RLSP and is 30% owned by CEO Xingxiu Hua) and selling 100% of its goods through Shanghai Huaxin. This lack of bargaining power led to a gross margin drop to negative 2.2% in Q2 2026.

• YETI Holdings delivered the kind of earnings report that would normally be expected to support a stock: second-quarter sales increased 9% to approximately $484 million, adjusted earnings of $0.67 per share exceeded expectations, and management raised its full-year EPS outlook to $2.94-$3.00, implying growth of 19%-21%.
• Yet investors responded by sending the shares sharply lower, with the stock falling more than 12% following the report.
• The disconnect becomes easier to understand when looking beneath the headline numbers.

• EL reported a 4QFY26 upside surprise and the stock traded up more than 15%. 
• Sales were +6.8% to $3,640M, with organic sales +5.3%; FactSet consensus was $3,545M.
• This was the fourth consecutive quarter of positive organic sales growth; sales growth was helped by the placement of Amazon’s (AMZN) Prime Day in June this year versus July last year. 

• Premium Valuation vs. Asset-Heavy Reality: Following its listing on August 18, 2026, at ₹181.50 (a 29.61% premium over the ₹140 issue price), Milky Mist is valued at ₹13,972.66 crore (~$1.46 billion). This 85x price-to-earnings multiple matches premium packaged-food FMCG players, but ignores the company’s asset-heavy, highly leveraged, and low Return on Capital Employed (11.73% in FY26) model.
• The Cold-Chain Distribution Moat: Milky Mist’s primary defense against cooperative giants like Amul is its network of 41,459 owned visi-coolers placed in retail stores. This capital-intensive strategy secures exclusive shelf space and drives a 19% national organized paneer market share, but severely depresses free cash flows and asset turnover compared to asset-light peers like Dodla Dairy.
• Concentration Risk and High Financial Leverage: Despite using ₹496.86 crore of its IPO proceeds to deleverage—bringing debt-to-equity down from 3.61x toward a target of under 1.4x by FY27—Milky Mist is concentrating ₹469.24 crore of new capital expenditure back into its single manufacturing facility in Perundurai, Tamil Nadu. Its high-profile national expansion remains high-risk and freight-heavy until its proposed Baramati, Maharashtra plant is operational.

• Alibaba Group Holding Limited is advancing another major portfolio simplification as its Lingxi Games business moves toward new ownership under Asian private-equity firm Trustar Capital.
• The latest development goes beyond preliminary acquisition interest: Alibaba has reached an agreement to sell Lingxi Games, with reports indicating a valuation of more than $1.5 billion, although the final consideration has not been publicly disclosed.
• Lingxi Chief Executive Zhou Bingshu described the transaction as part of Alibaba’s broader effort to sharpen its strategic focus, while the company continues directing more capital toward artificial intelligence, cloud infrastructure, e-commerce and consumption.

• Piccadily Agro Industries Limited (PCAI) is undergoing a structural corporate transformation from a legacy sugar and bulk distillery producer into a high-margin Indian craft spirits powerhouse, anchored by its globally acclaimed flagship single malt whisky brand ‘Indri’ and luxury cane juice rum ‘Camikara’.
• Operational financial metrics reflect solid business momentum, with FY26 revenue reaching INR 10,379.04m (+30.2% YoY) and net income advancing to INR 1,375.34m (+34.4% YoY), supported by an expansion in gross margin to 34.16% as branded premium spirits comprise an increasing share of the product mix.
• A transformational INR 1,000 crore capital expenditure program across Indri (Haryana), Mahasamund (Chhattisgarh), and Portavadie (Scotland), combined with the proposed demerger of the cyclical sugar business, positions PCAI for long-term premiumisation and international scaling, balanced against elevated working capital lock-up in barrel inventory and a full valuation multiple (48.3x P/E).

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• Rubber Leaf Inc is a Nevada-incorporated holding company operating through its Hong Kong subsidiary, specializing in automotive rubber and plastic sealing strips. It supplies major auto OEMs like eGT and.
• The company specializes in automotive rubber and plastic sealing strips, supplying major OEMs. It entered a joint R&D agreement with FAW-Volkswagen in October 2023 and cooperated with Hozon in February.
• Revenues were $6,038,954 and net income was $183,440 for the six months ended June 30, 2026. Total assets were $11,375,449 as of June 30, 2026.

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• MORITO CO., LTD. (hereafter, the Company) posted consolidated net sales of JPY 33,068 mn (+28.1% YoY), operating profit of JPY 2,058 mn (+31.2% YoY), ordinary profit of JPY 2,162 mn (+26.4% YoY), and profit attributable to owners of parent (hereafter, net profit) of JPY 1,645 mn (-29.9% YoY).
• Progress against the full-year earnings forecast remains solid as of H1, with both net sales and profits exceeding 50%.
• SIR believes that steadily expanding into new growth areas while maintaining its solidly profitable structure could contribute to medium- to long-term corporate value enhancement.

• Alliance Laundry Holdings Inc. is the world’s largest designer and manufacturer of commercial laundry systems, leveraging over 100 years of engineering excellence.
• Alliance Laundry Holdings has approximately 40% market share in North America and an estimated installed base of eight million units globally.
• Net revenues were $1,709,237 for the year ended Dec. 31, 2025, with net income of $101,755 for the same period.

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• Lear Corporation reported second quarter 2026 results demonstrating moderate growth amid a challenging industry environment.
• Revenue rose 3% year-over-year to $6.2 billion, contributing to record first half sales exceeding $12 billion.
• Core operating earnings improved 7% in the quarter to $313 million, with adjusted earnings per share increasing by 23% to $4.28 compared to the prior year.

• Magna International reported second quarter 2026 results showing modest top-line growth, improved profitability, and strong cash flow generation amid a mixed global automotive production environment.
• Sales increased by 3% year-over-year to $11 billion, outpacing global light vehicle production, which declined approximately 2%.
• Adjusted EBIT rose 16%, with margin expansion of 70 basis points to 6.2%, and adjusted earnings per share reached a second-quarter record of $1.86, a 29% increase over the prior year.

• Marriott International reported solid financial and operational results for the second quarter of 2026, with revenue per available room (RevPAR) and earnings exceeding prior expectations.
• The company’s global portfolio expanded by 4.5% in net rooms over the trailing 12 months, reaching approximately 1.8 million rooms across more than 10,000 properties.
• Global RevPAR increased 3.4% year-over-year, driven notably by a 5% rise in the U.S. and Canada, marking the strongest quarterly growth in over three years.

• Newell Brands reported a second quarter of 2026 that marked a significant milestone in its multi-year turnaround effort, demonstrating a return to year-over-year growth in both net sales and core sales for the first time in over four years.
• Net sales increased by 3%, and core sales rose 2.3%, both exceeding the high end of the company’s guidance and driven by broad-based improvement across five of its six business units.
• The U.S. market, the largest for Newell Brands, led this growth with approximately 5% net sales growth in the quarter, supported by mid-single-digit increases in distribution points.

• Post market close on Friday, Hang Seng Indexes will announce the changes for the Hang Seng Index (HSI INDEX) that will be implemented at the close on 4 September.
• We highlight 7 stocks that have a higher probability of being added to the index. With the index committee entitled to a lot of discretion, there will be differences.
• The Healthcare industry continues to remain the most underweight and there could be more additions from the industry as we near the 100-stock target.

• Lalithaa Jewellery Mart Ltd (1607844D IN) is looking to raise up to US$178m in its upcoming India IPO.
• Lalithaa Jewellery Mart Ltd (LJML) is a jewellery retailer operating under the brand name “Lalithaa”, offering a range of gold, silver, and diamond jewellery.
• We have looked at the past performance in our previous note. In this note, we talk about the RHP updates and valuations.

• Milky Mist Dairy Food (1231D IN) raised US$163m in its India IPO.
• Milky Mist Dairy Food Ltd (MMDFL) is a value-added dairy and packaged food manufacturer focused on premium products such as paneer, cheese, curd, yogurt, UHT milk, and frozen RTE/RTC foods.
• We have looked at the company’s past performance and valuations in our previous notes. In this note, we will talk about the trading dynamics.

• Amid the impact of oil prices, the car maker recorded a growth rate of 15% YoY in 2Q26.
• Export growth has exceeded 100% YoY over past half year and surged to 200% YoY in July.
• We estimate that the stock price will double at the end of 2027.

• HHP Sales Propel H1 Growth. CYD reported first half revenue of RMB 14.7 billion, 13.9% above  the year ago period, but well shy of our revised estimate.
• The growth rates for nearly all segments looks impressive on the surface, but the details impacted the miss from our estimate.
• HHP engines drove Revenue growth, with 1,800 total HHP units going to AIDC. 

• Silicon2 (257720 KS) has secured a third party allocated capital increase worth 300 billion won (representing 10.3% of market share) from CVC Capital private equity firm.
• Silicon2 plans to use the capital for working capital to expand its global logistics infrastructure and increase its market share overseas.
• The company’s excellent sales growth and profit margins in the past year have been able to reduce concerns about the U.S. tariffs.

• Food Empire (FEH) delivered a clean-looking 1H26 — record half-year revenue and PAT swinging back to positive; [top-line beat riding on a margin miss vs RHTC FY26F].
• Revenue tracks slightly ahead of the run-rate cf full-year forecast; profitability tracks behind it.
• Revenue beat, but it is the only line that beat.

• PPIH’s FY06/26 sales increased 8.8% YoY, driven by increased customer traffic and discretionary product demand, achieving 100.4% of sales forecast.
• The company forecasts a 5.6% YoY sales growth, focusing on customer traffic, private-brand strategy, and pricing measures amid rising costs.
• Olympic Group, a newly consolidated subsidiary, targets doubling sales to JPY200.0bn and achieving a 6.0% OPM within five years.

• Leading Pure-Play HESaaS Provider in Japan: Photosynth Inc (4379 JP) has established a dominant market position in cloud-based access control and smart lock solutions through its proprietary Akerun Access Intelligence platform, pioneering the Hardware-Enabled Software-as-a-Service (HESaaS) business model across commercial, residential, and institutional sectors.
• Substantial Operating Inflection and Cash Flow Expansion: The company has successfully transitioned from an investment-heavy growth phase to structural profitability, delivering a 3-year Revenue CAGR of 19.28% and an EPS CAGR of 35.74%, supported by expanding EBITDA margins (~15-16% in recent quarters) and robust free cash flow generation (JPY 309.10M in FY2025).
• Attractive Valuation with Strategic TAM Expansion: Trading at an attractive 1.3x EV/Sales and 8.8x EV/EBITDA, Photosynth possesses significant multi-year growth runway fueled by Japan’s corporate digital transformation (DX) tailwinds, labor shortages driving demand for unmanned facility management (Migakun BPaaS), and strategic residential access partnerships via MIWA Akerun Technologies.

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• Although the number of individual shareholders has increased—partly due to a rising number of companies implementing stock splits—the proportion of shares held by individuals has hardly risen at all.
• While the ownership of other investor groups have remained flat, that of foreign corporations has continued rising. Listed companies are increasingly forced to pay close attention to overseas investors’ shareholdings.
• While the shareholding ratio of corporations has been steadily declining, share buybacks have increased. This suggests that the unwinding of cross-shareholdings between corporations and financial institutions is likely to continue.

• Back on the 22nd June 2026, MSG-manufacturer Ajinomoto Malaysia (AJI MK) announced Ajinomoto Co (2802 JP), its controlling shareholder, intends to delist the company via a selective capital reduction.
• Ajinomoto offered RM20/share in cash, a 31.6% premium to last close; but realistically a 67% premium due to apparent price leakage. It is a decade-high price. This is fair.
• In response to local media report, Ajinomoto defended its Offer Price, stating it represents a reasonable premium, and reflects the company’s business value and historical share performance.

• Company consistently generates high double-digit ROE despite having more than 30% of equity in cash
• Promoter shareholding is high, indicating alignment of interest with minority shareholders
• Recent weakness in the stock price makes the valuation attractive for a business that makes decent free cash fdlow. And a high dividend yield

• Inghams (ING AU) is Australia and New Zealand’s largest vertically integrated poultry producer with a market in each country of ~40% and ~35% respectively.
• Ingham’s share price is down 37% in the past years via a combination of ballooning costs, a bird flu lockdown in WA, and its legacy concentrated market exposure (Woolworths and Coles).
• Shares popped 6.7% on the 13th August amid media speculation about a possible acquisition (PSP Investment rumoured). Inghams denied receiving any approaches. But the situation is still worth discussing. 

• Lalithaa Jewellery Mart Ltd (1607844D IN)‘s IPO issue of INR 17 billion is a combination of fresh issue of INR 12 billion and offer for sale of INR 5 billion.
• In this insight we discuss about on ground feedback from our conversations with multiple vendors, peers and merchant in the Chennai Jewellery market where the company has sizeable presence.
• We finally conclude our findings and present our view on the IPO.

• Volume and margin: Q2 FY26 revenue fell 1.3% to PHP 4.9bn as volumes declined 6.7%; gross margin compressed 431bp to 22.1% on EUR/PHP and excise costs.
• Earnings held below the line: H1 net income still rose 7.2% to PHP 1.74bn, carried by a PHP 239mn other income line on FX gains and higher interest income.
• At PHP 1.93, the stock trades at 7.3x FY26e PE, 4.6x EV/EBITDA, and 6.1% yield. We need to monitor the current weak consumer sentiment and FX scenario for earnings downgrades.

• Nordstrom, Inc. (NYSE: JWN) operates a premier dual-format retail ecosystem comprising full-line luxury/aspirational department stores and off-price Nordstrom Rack locations, heavily integrated with an omnichannel digital platform that generates over a third of total retail sales.
• Following bottom-line compression in FY2024, financial performance inflected positively in FY2025, with revenue recovering to $15.02B, gross margins expanding to 37.43%, and Free Cash Flow surging to $751M due to disciplined inventory management and supply chain optimization.
• While long-term secular headwinds persist across physical department stores, JWN’s rapid Nordstrom Rack fleet expansion, robust customer loyalty ecosystem, and ongoing privatization/take-private interest provide downside valuation support and strategic optionality.

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• Ryohin Keikaku has updated forecasts for FY ending August: ¥907 billion in revenues this year at a 10%+ operating margin. 
• Vertical integration of sourcing is driving gross margin expansion, and a ¥1 trillion target with 12% margins is now firmly in sight.
• Overseas growth will be the key however as saturation at home beckons.

• Hibbett’s unique strategic focus on underserved, smaller markets provides a defensible niche against larger competitors, resulting in lower operating costs and a loyal customer base.
• Strong brand relationships, particularly with Nike, are a critical driver of sales, granting Hibbett access to premium and exclusive products that attract high-value “sneaker-head”customers.
• A well-developed omnichannel strategy, integrating a growing e-commerce platform with its physical store network for services like BOPIS, has been crucial for capturing and retaining customers who are increasingly shopping online.

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Executive Summary

• Global Automated Retail Footprint: IJOOZ operates a decentralised network of over 3,000 autonomous fresh juice vending machines across 32 countries, achieving an 80% market penetration rate in its domestic Singapore market. The hardware-centric model leverages proprietary robotics and IoT monitoring systems to eliminate traditional retail labour and premium storefront rental overheads.
• Asset-Light Franchise Economics: Combining proprietary technology with an asset-light expansion model yields strong operating leverage, evidenced by a reported net profit of US$2.5m for the 2024 financial year. By shifting initial machine capital expenditure to franchisees, the company generates organic cash flow to fund continued international expansion.
• Agricultural Supply Chain Exposure:The business model is highly sensitive to the pricing and availability of fresh oranges, exposing operating margins to global agricultural yields and macroeconomic volatility. Recent supply chain pressures driving severe raw orange sourcing price inflation directly threaten unit profitability if consumer pricing remains fixed.

• Dollar General maintains a strong position in the U.S. discount retail sector, leveraging its vast and convenient store footprint to serve a core demographic of low-to-middle-income consumers. Its business model is built on providing value and convenience.
• Recent financial performance shows resilient revenue growth, but margin compression highlights challenges from inflation and a strained consumer base. However, strong cash flow generation provides flexibility for strategic initiatives and shareholder returns.
• The forward outlook is mixed, with potential headwinds from macroeconomic pressures on its core customers, offset by opportunities in store expansion (including the pOpshelf concept), merchandising initiatives like DG Fresh, and the potential to attract more trade-down customers in a challenging economy.

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• Welcome to Curator’s Cut – a fortnightly roundup of standout themes from the 1,500+ insights shared on Smartkarma.
• In this cut, we spotlight the shifting sentiment towards Indian equities, highlight the investable universe in Singapore around data centres, and draw attention to the gaming industry across continents.
• Want to dig deeper? Comment or message with the themes you’d like to see highlighted next.

• SHENZHEN WOKE TECHNOLOGY Co., LTD is a Southeast Asia-focused cross-border brand owner of 3C accessories, small appliances, and home furnishings, seeking listing to strengthen its supply chain.
• The company is No. 1 in Indonesia’s 3C accessories sector with 2.2% market share (2025), achieving RMB1,216.9 million revenue in 2025.
• Revenue was RMB1,216,944 (2025), with net assets of RMB10,396 (June 30, 2026), and net foreign exchange losses of RMB17.9 million (six months ended June 30, 2026).

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• For the last three years, SHEIN has consistently mis-handled political challenges in US, UK
• Failure to anticipate and plan for these challenges hurt sales growth and SHEIN’s valuation
• SHEIN’s stuggles speak directly to management’s ability to identify risks and quickly adapt

• ASICS delivered a large top- and bottom-line beat in the June quarter and raised FY26 guidance
• Net sales of ¥264.2bn (+35.9% YoY) were +7.8% above consensus (¥245bn), while operating profit of ¥59.7bn (+63% YoY) beat consensus (¥47bn) by +27%
• The headline print is clearly strong, with SportStyle and Onitsuka Tiger continuing to drive growth.

• SHEIN is facing various unfavorable challenges. The core factors that previously supported its high growth and valuation are collapsing, so its future prospects and valuation is no longer optimistic
• If the IPO valuation falls below US$25bn, it can be regarded as an opportunity with a certain margin of safety to participate; US$25-30bn falls within a neutral but cautious range
• A valuation above US$30bn implies greater risks than opportunities, considering the significant potential selling pressure from existing shareholders after lock-up period ends, and a P/E higher than Inditex is unreasonable.

• Aequitas Research’s weekly update on the IPOs, placements, lockup expiry and other ECM linked events that were covered by the team over the past week.
• On the IPO front, there were a number of deals launched in India
• On the placement front, there were a few placement in India along with Dmg Mori Co Ltd (6141 JP) in Japan.

• REA Group is the dominant market leader in Australian online property listings, benefiting from a powerful network effect that creates a wide economic moat and significant pricing power.
• The company’s financial performance is intrinsically linked to the cyclical Australian housing market, with listing volumes and property prices being key drivers of revenue and earnings.
• Future growth is expected to be driven by continued price and product innovation in the core Australian business, expansion into adjacent services like financial services and data, and growth in international investments, particularly in India.

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• Under the revised Corporate Governance Code, improvements are expected only from 6.9% companies that disclosed information on or after their AGM. For all other companies, compliance has become voluntary targets.
• Investors want to change the record date so that AGM is held in July or later, when AGMs aren’t concentrated. It’s the companies that are stubbornly refusing to do so.
• While continuing to avoid facing shareholders, it is hard to imagine that the company can engage with investors. Investors, in turn, should press the company more strongly on this issue.

• Revenue reached JPY9.0bn, a 7.6% YoY increase, achieving 46.7% of the full-year company forecast.
• Operating profit was JPY112mn, a 190.1% YoY increase, surpassing the initial 1H forecast of JPY4mn.
• Marketing DX Business recorded JPY6.8bn revenue and JPY523mn segment profit, while Business Creation Business had a JPY12mn loss.

• VictoryShares US Large Cap High Div Volatility Wtd ETF (CDL) offers a unique ‘smart beta’ strategy, targeting 100 high-dividend-yielding U.S. large-cap stocks and weighting them by the inverse of their historical volatility.
• The fund’s methodology aims to provide a balance of steady income and reduced risk, potentially offering downside protection during market downturns by overweighting less volatile stocks.
• With significant exposure to defensive and interest-rate sensitive sectors like Utilities and Financials, the ETF’s performance is closely tied to the macroeconomic environment, particularly interest rate movements and overall market volatility.

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• A weekly summary of key developments in ECM and Event-Driven names that I track in Hong Kong, Australia, New Zealand, Singapore, Japan, Indonesia, Malaysia, Thailand, Korea, India, and Chinese ADRs.
• ECM developments: SHEIN Global Holdings (SHEIN HK) and GCash (Mynt) (GCASH PM) IPOs.
• Event-Driven developments: Kakaku.com Inc (2371 JP), Austal Ltd (ASB AU), Betmakers Technology Group (BET AU), Cleanaway Waste Management (CWY AU), Cygnus Metals (CY5 AU), FleetPartners Group (FPR AU). 

• l Old Country Store spent much of the past year learning how difficult it can be to modernize a brand whose appeal is deeply tied to nostalgia.
• What began as an effort under former CEO Julie Masino to refresh an aging restaurant chain turned into a national controversy after changes to its longtime logo and restaurant appearance triggered intense customer criticism and political attention.
• Cracker Barrel reversed course, restored familiar elements, refocused on loyal customers and brought back some of the food and imagery associated with its traditional identity.

• Lionsgate Studios (LION) has suddenly found itself at the center of a much bigger Hollywood question: could one of the industry’s best-known collections of franchises ultimately be worth more inside a larger technology or streaming platform?
• Activist investor Anson Funds has reportedly renewed its push for Lionsgate to explore a sale or reposition itself for the AI era, arguing that recent transactions show major platforms are increasingly willing to own premium intellectual property rather than simply license it.
• Yet the takeover case is far from straightforward.

• LKQ Corporation reported second-quarter 2026 results reflecting a mixture of operational progress and ongoing challenges across its key regions and segments.
• Consolidated revenue was approximately $3.4 billion, slightly below the prior year period’s $3.5 billion, driven primarily by softness in Europe.
• Adjusted diluted earnings per share (EPS) declined to $0.67 from $0.84 year-over-year, largely reflecting operating disruptions related to an ERP implementation in Germany and persistent market softness in parts of Europe.

• Mohawk Industries delivered a second quarter of 2026 that surpassed expectations with net sales increasing 6.8% year-over-year to $3 billion, reflecting a 5% gain on a constant currency basis.
• Growth was fueled by volume expansion, pricing actions, and favorable product mix across the company’s three segments: Global Ceramic, Flooring North America, and Flooring Rest of the World.
• The company highlighted success in new product placements and expanded market share in both residential and commercial sectors despite continued softness in home resale and new construction markets.