Consumer

• On 22 August, Dongfeng Motor (489 HK) disclosed a pre-conditional privatisation by merger by absorption by Dongfeng Motor Corporation, along with a proposed distribution and listing of VOYAH shares.
• The VOYAH application proof, filed on 2 October, points to strong fundamentals and suggests that the appraised value of VOYAH and the offer are conservative. 
• Based on the data points from the application proof, I calculate that the implied offer is HK$12.11-12.25 per H Share, a 11.6%-12.9% premium to the appraised value of HK$10.85. 

• Tata Motors (TTMT IN) is demerging the company into two separate listed entities that will focus on the Passenger Vehicle business and the Commercial Vehicle businesses.
• Based on the estimated valuation for the two entities, both stocks will continue to remain in the MGlobal Index and the FGlobal Index.
• NIFTY and SENSEX trackers will need to sell their Commercial Vehicle business holdings soon after listing. There could be selling in the Passenger Vehicle business holdings at a later rebalance.

• After incorporating the company’s FY25 results, we have tweaked our income statement estimates and valuations of LG Electronics India IPO.
• Our base case valuation is target price of 1,514 INR which is 33% higher than the high end of the IPO price range. 
• It appears that the company wants the IPO to be successful and after much review the company has decided to price the IPO at more attractive levels to new investors. 

• LG Electronics (066570 KS) will divest a 15% stake in its 100% subsidiary LG Electronics India (123D IN) through an IPO, raising Rs116 billion (USD 1.3 billion).
• The IPO pricing implies a valuation well below that of listed Indian peers and appears to overlook the sector’s underlying near term macro demand tailwinds.
• LGEIL’s 1QFY26 financial performance came in weak, primarily due to a seasonal slowdown in cooling product sales, particularly air conditioners. This follows a strong FY2025.

• Severe Financial Distress: Vinfast is operating with deeply negative gross and net margins, leading to significant cash burn and a high degree of uncertainty regarding its path to profitability. The company is critically dependent on the financial support of its parent, Vingroup, and its founder for survival.
• Ambitious but Risky Global Expansion: The company is pursuing an aggressive and costly expansion strategy, pivoting from a challenging entry into the US and European markets to focus on high-growth potential markets in Asia, such as India and Indonesia. Execution in these highly competitive regions remains a key uncertainty.
• High-Stakes Bet on an Unproven Brand: While revenue is growing rapidly, this is off a low base and has been achieved through substantial losses. The company faces intense competition from established global automakers and new EV players, and its brand has limited recognition outside of Vietnam, posing a significant hurdle to capturing market share.

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• Chow Tai Fook Jewellery (1929 HK) is one of the best-performing Hang Seng Index (HSI INDEX) constituents YTD, but it is time to take some money off the table.
• At 5%, its 12-month forward dividend yield is about the lowest in the last five years, implying limited share price upside. Valuations have run ahead of earnings momentum.
• The recent recovery in Hong Kong jewellery retail sales is partly due to the low base effect. Additionally, a higher gold price will weigh on demand for gold products. 

• Shopback is a leading cashback and rewards platform in the Asia-Pacific region, poised to benefit from the rapidly growing e-commerce and digital loyalty market. The company is currently undergoing a strategic realignment, focusing on its core cashback services and sustainable growth after a period of aggressive expansion.
• Recent financial performance for the fiscal year ending March 2024 shows a 13% increase in revenue to S$133 million (US$102.4 million) and a 36.3% reduction in operating losses, indicating early positive results from its restructuring efforts. This follows a challenging prior year where revenue declined 20% and losses widened.
• Key challenges include intense competition from regional super apps and other loyalty platforms, the need to regain and maintain consumer trust after significant layoffs and the discontinuation of its Buy Now, Pay Later (BNPL) service, and navigating the complexities of a diverse and fragmented APAC market.

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• CP ALL is expected to benefit from the government’s copayment stimulus program, set to launch in October, directly through Makro, which supplies mom-and-pop stores and indirectly through 7-Eleven. 
• The company remains optimistic about a pick-up in growth in 2H2025, driven by promotions in 3Q2025 and government stimulus, along with improving margins driven by an improved product mix. 
• 7-Eleven remains on track to expand its store network by 700 new outlets in FY2025, is gravitating toward slightly larger stores, allowing an increased number of SKUs. Valuations remain attractive.

• Despite TONGSHIFU’s leading position through vertically integrated business model, the inherent limitations of the industry are obstacles for further expansion. Performance growth is clearly constrained by the overall market capacity.
• The “double attack” market pattern makes it more difficult for TONGSHIFU to achieve breakthrough growth within the existing market. Outside of copper-based products, TONGSHIFU hasn’t found a second growth curve.
• TONGSHIFU’s valuation should be lower than Pop Mart/Laopu Gold/Bloks due to the big gap in growth potential/profitability/cashability. However, valuation could be higher than industry average due to leading market position.  

• While 95% of companies now disclose mandatory documents in English, concerns remain that when only partial disclosure is made in English, important information may not be disclosed in English.
• The simultaneous disclosure of Japanese and English versions of previously delayed disclosure materials has been well received by overseas investors.
• Companies’ attitudes differ significantly between documents mandated by the TSE and those that are not. Documents not subject to mandatory requirements are left to the company’s discretion.

• LG Electronics India (123D IN)/LGEIL, a subsidiary of LG Electronics (066570 KS), aims to raise up to US$1.3 billion through a secondary offering.
• I previously discussed the IPO in LG Electronics India IPO: The Bull Case and LG Electronics India IPO: The Bear Case. 
• In this note, I look at the recent updates outlined in the RHP. Overall, the RHP updates are supportive of the bull case.

• The Labubu craze has resulted in a ~200% increase in Pop Mart (9992 HK)’s shares YTD. MINISO (9896 HK)‘s TOP TOY will be wanting to cash in on this exuberance.
• Those who want to buy Sony Financial (8729 JP) may wait until earnings. If shares stayed flat for a month until earnings came out, don’t short the eve of earnings.
• Zijin Mining Group (2899 HK) is fully valued as Zijin Gold (2259 HK)  trades at a 100% premium to peers on forward PER and EV/EBITDA multiples. 

• I tally 40 – mostly firm, mostly Asia-Pac – arb transactions currently being discussed and analysed on Smartkarma.
• Three new deals were discussed on Smartkarma this week: Seven West Media (SWM AU)‘s, Mitsubishi Logisnext Co., Ltd. (7105 JP), and Spindex Industries (SPE SP).
• Key updates/news took place on ReNew Energy Global (RNW US), Soft99 Corp (4464 JP), and Carenet Inc (2150 JP).

• LG Electronics (066570 KS) is looking to raise US$1.3bn via part-selling its stake in LG Electronics India.
• LG Electronics India (LGEI) was the market leader in India in major home appliances and consumer electronics (excluding mobile phones) in terms of volume, as per Redseer Report.
• We have looked at the company’s past performance in our previous note, in this note we talk about the RHP updates and refresh our peer comparison

• TreeHouse Foods presented their second-quarter results with both positive and negative takeaways.
• The company surpassed its guidance upper ranges for adjusted net sales and adjusted EBITDA, a sign of successful execution in margin improvement strategies.
• However, the volume was pressured due to structural cost reductions and adjustments within their manufacturing network to focus on efficiency.

• Youngone Corp stands as a premier global original equipment manufacturer (OEM) for the outdoor and athletic apparel industry, underpinned by strong, long-term relationships with leading global brands and a vast, efficient manufacturing network.
• While the company faces near-term margin pressures from rising labor costs and potential tariffs, its robust OEM order book, particularly from high-growth brands, provides a solid revenue foundation.
• The company’s strategic ‘Corporate Value-Up’ initiatives, aimed at enhancing shareholder returns by improving ROE and P/B ratios, combined with a potential earnings inflection from its Scott subsidiary, present significant long-term catalysts.

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• BYD (1211 HK) is currently in a position from where it could rally. Our previous insight suggested a possible bottoming area around 100.9 but the stock never reached that low.
• This week the stock rallied to 114.7, then pulled back. If the stock is temporarily bottoming, it could rally past 115 and up to 130 from here. 
• According to our TIME MODEL the duration of the rally could be up to 3-4 weeks (2-3 more weeks up from here).

• Sales increased 18.4% YoY to JPY112.6bn, driven by Domestic Business growth, strategic brands, and expanded product lineup.
• Operating profit rose 9.2% YoY to JPY5.7bn, with improved gross profit margin and increased SG&A ratio due to investments.
• Overseas Business sales declined 11.8% YoY, with operating loss stable; growth strategy targets JPY15.0bn sales in US by FY2030.

• Exceptional Financial Growth: G&E Herbal Biotechnology has demonstrated a remarkable growth trajectory, with a 3-year revenue CAGR of 116.41% and a net income CAGR of 92.50%. This is complemented by significant margin expansion, indicating strong operational efficiency and pricing power.
• Favorable Industry Tailwinds: The company is well-positioned within the rapidly growing global herbal medicine market, which is projected to expand significantly. This growth is driven by increasing consumer preference for natural health solutions, rising wellness consciousness, and supportive government initiatives for traditional medicine.
• Emerging Dividend Story with High Valuation: While the company has recently initiated a dividend, its history is short. The current valuation appears stretched, with a P/E ratio of 32.7x, suggesting that the market has already priced in a significant portion of its future growth prospects. Key risks include regulatory changes and increased competition.

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• Maxigen Biotech is a leading Taiwanese manufacturer of collagen and hyaluronic acid-based medical devices, with a growing presence in the global regenerative medicine and medical aesthetics markets.
• The company is strategically shifting from a contract manufacturing model to a higher-margin, branded product focus, with a key initiative being the expansion of its sales and operations in the U.S. market.
• Consistent revenue growth and strong net income margins, as evidenced by recent financial performance, are driven by increasing demand for minimally invasive aesthetic and orthopedic treatments.

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• Market Leader with Strong Growth Tailwinds: Union Auction is the dominant player in Thailand’s used vehicle auction market, poised to benefit from the growing demand for affordable transportation and a backlog of repossessed vehicles entering the auction pipeline post-pandemic.
• Proven Financial Performance and Shareholder Returns: The company exhibits a history of robust revenue and net income growth, high profit margins, and a strong commitment to shareholder returns through consistent high-payout dividends.
• Digital Transformation and Service Expansion: AUCT is actively investing in its online auction platform, AUCT Live, to enhance customer convenience and efficiency, aiming to increase its online user base and expand its service offerings to solidify its competitive position.

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• In this edition: ABN Amro / ING | AI can save thousands of jobs at AML departments Unilever | Magnum Ice Cream Company will be listed on 10 November E-commerce & Logistics | Temu has entered top 5 of largest marketplaces in Germany

• Fast Retailing (9983 JP) will report FY 2025 results on Thursday, 9 October 2025. Gain insight into earnings-day price history, volatility dynamics, and signals from the options market.
• Expect Volatility: Results have historically driven moves between 2–9%, with announcement-day beta vs. the Nikkei 225 more than doubling. Despite illiquidity, options imply a ±4.7% swing — in line with history.
• Portfolio Impact: As an 8% Nikkei 225 heavyweight, earnings-day moves ripple across the benchmark, making results market-relevant beyond the single stock.

• Soft99 Corp (4464 JP) announced that the close of the MBO offer period has been extended from 2 to 17 October. There are two key takeaways from the announcement.
• First, KeePer has not yet tendered its shares, despite providing an irrevocable. Second, the non-KeePer acceptances have increased from 6,108,200 shares on September 18 to 6,598,149 shares on October 2.
• The chances that KeePer accepts the Effissimo offer have increased. However, the current non-KeePer acceptances of the MBO make it highly challenging for Effissimo to succeed. Take profits.

• LG Electronics India (123D IN) is looking to list on the exchanges by selling 101.8m shares at a valuation of US$8.7bn and raising around US$1.3bn in its IPO.
• The new valuation is around 24% lower than the rumoured valuation at the time of the DRHP filing last December.
• The stock will not get Fast Entry to global indices. Inclusion at regular rebalances will commence in June 2026 but flow will be small given the low float.

• On 25 September, with the stock trading just below Effissimo’s terms, the Soft99 Corp (4464 JP) Board came out AGAINST the Effissimo proposal 66% higher than the MBO terms.
• The fine print said that the Soft99 deal had enough shares to get over the line assuming Keeper Labs tendered according to agreement due to Board Support. Shares plummeted. 
• Effissimo issued a stunning rebuttal which showed Board incompetence/negligence, possible breach of fiduciary duty. Today, MBO Bidco extended, the stock popped, but details are key.

• ADF Foods is shifting from an agency-based distribution model to a brand-led, in-house manufacturing approach, focusing on the U.S. frozen food segment to improve margins and supply control.
• This strategic pivot enhances margin stability, mitigates raw material and geopolitical risks, and deepens market penetration in mainstream international retail, positioning ADF for sustainable long-term growth and profitability.
• Market focus should move from export volatility to ADF’s brand premiumization and successful US greenfield execution, the key drivers of sustainable growth and long-term re-rating.

• More companies have appointed outside directors as board chairpersons, driven by investor demands. For corporate governance to improve, it’s essential that investors continue speaking out, demanding management that creates value.
• Corporate Governance Code called for appointing outside directors to strengthen supervisory function of BODs, driven by concerns that a board composed solely of internal executive directors couldn’t effectively address challenges.
• If corporate governance has become a mere formality, it is the company itself that has driven this trend, so the company has no choice but to change its previous course.

• Tesla remains a leader in the electric vehicle (EV) market, but is facing significant margin pressure from slowing demand and intense competition, particularly from Chinese manufacturers.
• The company’s future growth and lofty valuation are increasingly dependent on its ambitious pivot to artificial intelligence, robotics, and the successful commercialization of a robotaxi network.
• While revenue growth has decelerated and profitability has declined in recent quarters, the company’s strong brand, technological lead, and expanding energy division provide a foundation for future opportunities, albeit with high execution risk.

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• After shedding 28% of its value year-to-date, Primo Water’s stock has come under intense scrutiny.
• The sharp decline reflects operational dislocations following its November 2024 merger with BlueTriton Brands, as well as broader disruptions across weather-impacted sales regions and distribution bottlenecks.
• In Q2 2025, comparable net sales fell 2.5% year-over-year, prompting a downward revision of full-year guidance to flat-to-1% growth from the previously guided 3% to 5%.

Greggs’ Q325 trading update shows improving trading as the period progressed, following the already-flagged negative effect of July’s hot weather. With a slight improvement to the outlook for cost inflation, management’s expectations for full year profit are unchanged. This is despite indications of lower new space growth than initially guided, due to phasing of new build opportunities. Management was clear that there is potential for significantly more than 3,000 stores, and returns will not be sacrificed as the estate grows. The company is now lapping weak comparatives from Q424, and with ongoing menu innovation as well as new initiatives, such as the expanding partnership with Tesco, management is hopeful of better revenue growth.

• DFI Retail Group is undergoing a significant strategic shift, unlocking capital through divestments (over US$900 million) and returning a substantial portion to shareholders (US$600 million special dividend), signaling confidence in its refined focus.
• The company’s financial performance is mixed, with 1H2025 underlying profit growth of 39% driven by lower financing costs and strong Health & Beauty segment performance, but this is contrasted by multi-year declines in revenue and net income.
• The forward outlook is challenging, characterized by intense competition and weak consumer sentiment across key Asian markets, making future growth heavily dependent on the successful expansion of its Health & Beauty footprint and effective cost control.

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Topps Tiles enjoyed better momentum across all of its businesses in H225 as its strategic initiatives to drive growth in larger addressable markets combined with more favourable dynamics in some of its end markets. This implies trade customers continue to drive growth, while trends for the retail customer are less negative. As a result, the company expects to be in line with consensus profit expectations, which are materially ahead of FY24. The CEO designate, Alex Jensen, is on board and there will be an orderly transition ahead of Rob Parker’s departure at the end of 2025.

• Strategic Transformation Complete: Tate & Lyle has successfully transitioned into a growth-oriented specialty food and beverage solutions business, divesting its commoditized Primary Products segment to focus on high-margin, value-added ingredients.
• Aligned with Consumer Megatrends: The company is well-positioned to capitalize on the increasing consumer demand for healthier, plant-based, and ‘clean-label’ food and beverage options, particularly in the high-growth areas of sugar and calorie reduction.
• Valuation and Performance Headwinds: Despite its strategic repositioning, the company faces challenges, including recent revenue declines, significant negative growth in net income and EPS over the past three years, and a high P/E ratio that appears expensive relative to peers.

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• Deliveroo is set to be acquired by US-based DoorDash for approximately $3.9 billion, a move expected to close by early October 2025, significantly expanding DoorDash’s international footprint into nine new markets.
• The company has demonstrated a strong growth trajectory, achieving its first annual pre-tax profit in 2024 and showing a 4.33% 3-year revenue CAGR, though it has historically struggled with consistent profitability.
• The acquisition is viewed as a strategic necessity in a rapidly consolidating and intensely competitive global food delivery market, aiming to leverage DoorDash’s scale and technology with Deliveroo‘s local market expertise.

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• Centurion Corp is a leading owner-operator of specialized accommodation, focusing on Purpose-Built Worker Accommodation (PBWA) in Singapore and Malaysia, and Purpose-Built Student Accommodation (PBSA) in the UK, Australia, and other markets.
• The company is poised for growth, driven by strong secular tailwinds in both its core segments, including regulatory pushes for higher quality worker dormitories and a persistent demand-supply imbalance in student housing in key educational hubs.
• A key strategic initiative is the planned spin-off of a portfolio of its stabilized assets into a REIT, which is expected to unlock significant value, transition the company towards an asset-light model, and enhance shareholder returns through capital recycling and potential special dividends.

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• We are reiterating our Buy rating, projections and $4 price target for Vince Holding after visiting stores in Connecticut, Long Island and New Jersey.
• We believe, with the company now showing virtually the entire Fall collection, that Vince is once again normalizing their product flows.
• Further, and perhaps more importantly, the Fall looks demonstrate that, even as the company has shifted their supply chain, the ability to provide compelling looks with high levels of quality and utility, with limited pricing increases, has allowed Vince to maintain their premium focus and drive higher levels of overall penetration in the wholesale segment and, we believe register top line growth in their own store channel.

Key points (machine generated)

• Kichiri Holdings, listed as 3082 on the Tokyo Stock Exchange, anticipates double-digit revenue and profit growth by June 2026.
• The company operates various dining formats, including urban and suburban restaurants, and is involved in recruitment and regional revitalization.
• As of June 2025, Kichiri Holdings had 139 stores and reported a 9.5% revenue increase to 15,056 million yen, but a 25.9% decline in operating profit to 581 million yen.

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• We are reiterating our Hold rating and projections for Guess?
• after visiting stores in the Metropolitan New York City and New Jersey areas.
• As we have seen throughout 2025, Guess?

Key points (machine generated)

• Nestlé offers a stable investment opportunity with an attractive valuation amid rising interest rates and inflation.
• The company has a dividend yield nearing 4% and a free cash flow yield of 6.8%, indicating financial health.
• With a strong portfolio and global presence, Nestlé is expected to achieve low double-digit compounding in the future.

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• Today we saw the culmination of the ridiculously wrong-way Nikkei 225 Sep25 rebalance. Shift Inc (3697 JP) looked like a classic deletion, not addition.
• 93.3% of the observation period has now passed, which means we can look at the March 2026 Periodic Review with a fair bit of accuracy.
• It is likely to be the runner-ups in the Sep25 review from the Consumer Goods sector, though the second-runner-up ADD needs a stock split to have any chance. More below.

• Blink Charging is navigating a high-growth phase, marked by significant revenue increases over the past several years, driven by both organic expansion and strategic acquisitions. However, this growth has been accompanied by substantial and persistent net losses and negative cash flow, raising concerns about its path to profitability.
• The company operates with a flexible business model, offering equipment sales (host-owned), a turnkey owner-operator model, and hybrid variations. There is a strategic shift towards the owner-operator model to build a recurring revenue base from charging services, which command higher margins than hardware sales.
• The Electric Vehicle (EV) charging industry is intensely competitive and capital-intensive. Blink faces significant competition from larger, better-capitalized players. The company’s success is heavily reliant on the continued growth of EV adoption, favorable government policies and subsidies, and its ability to manage high operational costs and secure ongoing funding.

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• LG Electronics’ BOD finally approved a plan to sell a 15% stake in LG Electronics India in an IPO to be completed in 2025.
• According to local media, LG Electronics India is now valued at about US$13 billion which is higher than LG Electronics’ market cap of US$8.8 billion. 
• Our base case valuation of LG Electronics India is implied market cap of 1,280 billion INR or US$14.4 billion.

• Melco International Development (200 HK) is now trading at a premium to NAV for the first time since announcing a one-for-two rights issue.
• Preceding my comments on Melco are the current setup/unwind tables for Asia-Pacific Holdcos.
• These relationships trade with a minimum liquidity of US$1mn, and a % market capitalisation >20%.

• Fiduciary duty expansion gains teeth once the third-stage treasury cancellation passes—setting up Class A prefs as prime re-rating, discount-compression plays in local flows.
• Fiduciary duty expansion gives Class A prefs new legal backing, making them standout re-rating plays with discount-compression potential, unlike Class B with built-in dividend protections.
• Hyundai Motor 1P vs 2PB offers a tight but tradable setup, while CJ Corp and AmoreH show wider A/B gaps, even after adjusting convertible premiums.

• Television broadcaster and publisher Seven West Media (SWM AU) has entered into a Scheme with radio network play Southern Cross Media (SXL AU).
• SXL will issue 0.1552 new shares for every SWM. Should the Scheme get up, SXL will hold 50.1% of the combined entity and SWM the remainder.
• Kerry Stokes backed SGH Limited (SGH AU) will hold ~20% in the merged entity. But not all shareholders are on board with the Offer. Trading through terms.

• Exchange holidays: Early October holidays in China (Golden Week) and South Korea (Chuseok) may dampen market activity, while India’s Diwali on 21–22 October brings the traditional Muhurat trading session.
• Earnings season begins in the final third of October across India, Japan, China/Hong Kong, and South Korea, alongside key central bank meetings and the TOPIX rebalance on 30 October.
• Why Read: Plan ahead and take into account known market events when making investment and trading decision.

• The Pinkfong Company, creator of the global phenomenon ‘Baby Shark’, is poised for a KOSDAQ IPO in Q4 2025, aiming to raise capital for content development and global expansion.
• While the company possesses an immensely powerful and globally recognized IP in ‘Baby Shark’, it faces significant challenges related to revenue concentration and recent declines in sales, which have fallen from a peak in 2022.
• The company’s strong balance sheet, characterized by a net cash position, and its strategic shift towards higher-margin digital content sales are key strengths, but its future success hinges on its ability to replicate its hit-making success and diversify its IP portfolio.

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• US as the world’s largest service economy means artificial general intelligence (AGI) saves cost by replacing knowledge workers. 
• China’s AI monetization is today 1/3 of US but will improve to 1/2 by 2030. 
• We reiterate our TOP PICKS of Alibaba, HESAI, CATL and Kuaishou. BIDU stays as SELL.

• DoorDash (DASH US) has agreed to acquire Deliveroo (ROO LN) in an all-cash transaction valued at approximately $3.9 billion, with Deliveroo shareholders receiving 180 pence per share.
• The acquisition is expected to become effective on October 2, 2025, with Deliveroo (ROO LN) founder and CEO Will Shu and several non-executive directors stepping down upon completion.
• Following the deal, Deliveroo (ROO LN) will be removed from UK and European indices, with replacements expected imminently.

• In MINISO (9896 HK)’s (Possible) TOP TOY Spin-Off Is Priced In, based on (then) available figures and applying a holding company discount, post spin-off, MINISO’s upside appeared limited.
• A listing application form has now been submitted to the HKEx, providing greater detail of TOP TOY’s finances, figures vastly different to those in MINISO’s recent segment accounts. 
• The Labubu craze has resulted in a ~200% increase in Pop Mart (9992 HK)’s shares YTD. TOP TOY will be wanting to cash in on this exuberance. 

• In our previous Fast Retailing (9983 JP) insight we identified a potential BUY opportunity ahead of the September 25 rebalance, but the rally failed to materialize. 
• The stock at the moment is oversold, according to our quantitative model, so we would like to review its tactical outlook in this insight.
• Right now, the stock is the most oversold of all the Asian stocks we track, probability of WEEKLY reversal stands at 72%, after last week’s Close.

• Our base case valuation of the Pinkfong Co is implied market cap of 671.4 billion won or target price of 46,369 won per share (over the next 6-12 months). 
• This represents a 22% upside to the high end of the IPO price range. Given the reasonable upside, we have a Positive view of the Pinkfong Co IPO.
• Pinkfong Co is one of the most sought-after acquisition candidates in the global animation industry and this is one of the major reasons why it should trade at premium valuation. 

• Alliance Laundry Holdings (ALH US) is offering 34.146 million shares at $19-$22 and will debut on the NYSE on Thursday, October 9th. 
• The company is backed by BDT Capital who will own 76.0% of this company post-IPO. 
• The durability of this market will have to be balanced with the valuation and the large amount of indebtedness this company has on the balance sheet. 

• Garmin is a market leader in GPS technology, demonstrating strong growth and profitability through a diversified business model spanning Fitness, Outdoor, Aviation, Marine, and Auto segments.
• The company exhibits robust financial health, characterized by consistent revenue growth, high margins, and a strong balance sheet with minimal debt, supporting sustained investment in innovation.
• While facing intense competition from large technology firms in the consumer wearables market, Garmin maintains a wide economic moat in its specialized, high-barrier-to-entry segments like aviation and marine.

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• Strategic Shift to Diversified Services Amid Regulatory Headwinds: Tianli Education is actively transitioning its business model in response to significant regulatory changes in China’s K-12 education sector. The company is expanding into diversified services such as study tours, art training, and online education to mitigate the impact of restrictions on for-profit tutoring in compulsory education.
• Strong Growth in High School Segment and Student Base: Despite the challenging environment, the company has demonstrated resilient growth, particularly in its high school segment. As of fall 2025, Tianli’s total student base reached approximately 141,000, an 8% year-over-year increase, with high school student numbers growing by 11% to around 60,000.
• Focus on AI-Powered Education and Quality: Tianli is strategically investing in AI-powered learning solutions, with its self-developed ‘Qiming AI Learning Companion’ already registered with national authorities. This focus on technology and quality teaching is aimed at enhancing its competitive edge and has contributed to strong academic results, including high university admission rates.

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Key points (machine generated)

• Flutter is a leading global gaming company specializing in online sports betting and casino products.
• The company’s competitive advantages stem from its scale, market share, and effective management and capital allocation.
• Flutter’s strategic expansion into the US market and beyond, known as the ‘Flutter Edge,’ positions it for future growth.

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• The shift toward management that creates value through dialogue with overseas investors is evident in the relationship between foreign shareholding ratios, capital profitability, and stock price valuations.
• There is significant correlation between cash reserves and ROA. ROA, which reflects the cash flow returns generated by a business, is considered to be closely related to stock price valuation.
• Companies with high cash generation capabilities and large amounts of cash on hand are expected to invest in generating more cash flow and return cash to shareholders.

• Bermaz Auto (BAUTO MK — US$186 million) is the former auto distribution arm of Malaysia’s Berjaya Corporation.

• It has been listed on Bursa Malaysia since 2013 and has since expanded from a Mazda-focused dealer to also sell Kia, XPeng, and Deepal.

• The competition within Malaysia’s auto industry has historically been favorable, thanks to a set of regulations. For example, imported vehicles are subject to a 30% duty, thereby protecting locally assembled cars, such as those made by Mazda and Kia.

• We compile our selection of small and mid-cap names with our desired characteristics of high dividend yields, value, and margin of safety.
• We compile updates on Philippine Stock Exchange (PSE PM) ‘s IPO pipeline, preview Taste Gourmet (8371 HK) H1 FY26 earnings, and more. 
• Our top picks are Asian Terminals (ATI PM), The Keepers Holdings (KEEPR PM), Taste Gourmet (8371 HK), Philippine Stock Exchange (PSE PM), and Ginebra San Miguel (GSMI PM).

• I summarise the latest spreads and newsflow of merger arb situations we cover across Hong Kong, Australia, New Zealand, Singapore, Japan, Indonesia, Malaysia, Philippines, Thailand and Chinese ADRs.
• Highest spreads: Mayne Pharma (MYX AU), Smart Share Global (EM US), ENN Energy (2688 HK), Dongfeng Motor (489 HK), Soft99 Corp (4464 JP), Joy City Property (207 HK).
• Lowest spreads: Bright Smart Securities (1428 HK), Pacific Industrial (7250 JP), Humm Group (HUM AU), Mandom Corp (4917 JP), Paramount Bed Holdings Co Lt (7817 JP). 

• Gross SOUTHBOUND volumes just over US$19bn a day this past 5-day week. Big. Quite decent net buying flows too though the market fell. 
• The recommended name last week was short Alibaba (9988 HK) was +4.65% on the week despite HK being down across the board.
• The data tables below update on a daily basis in the Tools section of Smartkarma. The SOUTHBOUND Flow Monitor and AH Pairs Monitor are both there for all SK readers.

• Roborock’s margins are expected to bottom-out after a tough four quarters of strategically prioritizing market share at the cost of margins. 3Q-4Q25 will mark the start of new margin cycle.
• Margins stabilizing at the new normal of 12-14% NPM will mean earnings will track revenue growth going forward. Meanwhile, revenues can surprise on the upside with >25% CAGR in medium-term.
• HK-Listing into 2H25/ 1H26 is a strong catalyst which can bring in fresh money, and improve disclosure standards – a key concern. We expect 70% upside in our bull case.

• Genky Drugstores is one of three hybrid food & drug chains, all of which target the discount end of the market. 
• Unlike rivals, Genky’s blends in-house control of both store and product development, and logistics.
• This level of control and discipline is making Genky a growing threat to competitors in central Japan.

• Amidst very modest improvements in corporate governance over the past few years, the percentage of female board members has steadily increased.
• Even if the %of female board members rises, there’re concerns that it will be a repeat of governance reforms that have’t achieved to transform management into one that creates value.
• Whether companies that step forward with diversity-conscious boards of directors can use this as a catalyst for management change, and promote female executive directors within companies, will be closely watched.

• The reason why IPOs tend to become the goal is that many IPOs are conducted for purposes other than company growth after IPOs.
• In order to correct the notion that “IPO is the goal,” there are expectations for the revitalization of the market for trading unlisted shares and M&A of unlisted companies.
• With the entry of unlisted stock funds, trading in privately-held stocks will become active, and if M&A for growth and management changes take place, the quality of IPOs will improve.

• In this insight, we provide the top 10 stock picks and key catalysts in the Korean stock market for the next two weeks (26 September to 10 October 2025).
• Top 10 picks in this bi-weekly include S&T Dynamics, Samsung Electronics, KT&G, Samsung Life Insurance, Hana Financial, Hyundai Elevator, SK Inc, Lotte Tour Development, Naver, and Douzone Bizon. 
• There have been some signs of shipbuilding and shipping services related stocks (such as HMM, SK Oceanplant, and HJ Shipbuilding) experiencing some weakness in the past couple of weeks. 

• I tally 39 – mostly firm, mostly Asia-Pac – arb transactions currently being discussed and analysed on Smartkarma.
• One new deal was discussed on Smartkarma this week: Paramount Bed Holdings Co Lt (7817 JP).
• Key updates/news took place on PointsBet (PBH AU), Oneconnect (6638 HK), Kangji Medical Instrument (9997 HK), Jinke Smart Services (9666 HK), Soft99 Corp (4464 JP), and Mandom Corp (4917 JP).

• Costco Wholesale Corporation delivered a mixed fourth quarter for fiscal year 2025, showcasing both strengths and areas of challenge.
• The company reported an increase in net sales and income, driven by strong ecommerce growth and expansion in warehouse locations.
• However, higher employee wages and lower member renewal rates presented challenges.

• AutoZone reported its fourth-quarter and full-year 2025 results, showcasing a mixed performance amidst challenging economic conditions and competitive pressures.
• Total sales for the quarter reached $6.2 billion, reflecting a modest 0.6% growth compared to the previous 17-week quarter.
• On a 16-week basis, however, sales grew 6.9%, indicating a robust underlying performance once the extra week from last year is adjusted for.

• O’Reilly Automotive has been one of the top-performing retail stocks in 2025, rising over 30% yearto-date and recently trading at $103.47.
• While this rally might make the stock appear expensive relative to peers such as AutoZone, Advance Auto Parts, and Genuine Parts, a closer look at the company’s fundamentals justifies its elevated valuation.
• Sales are projected to grow more than 6% annually over the next two years—significantly ahead of peers struggling with stagnation or outright declines.

• KB Home’s third quarter financial results for fiscal year 2025 reflect a nuanced picture of its current market position, with both strengths and challenges evident.
• From a financial standpoint, the company managed to deliver over $1.6 billion in total revenues, a figure that met or exceeded its own guidance across key operational metrics.
• This solid performance translates into a diluted earnings per share of $1.61 and an impressive gross margin of 18.9%, excluding inventory-related charges — both of which underscore the company’s ability to effectively manage costs and drive profitability amidst changing market conditions.

• CarMax’s second quarter results for fiscal year 2026 reveal a mixed performance in a challenging market.
• The company reported total sales of $6.6 billion, down 6% compared to the previous year, mainly due to lower volume.
• Retail unit sales declined by 5.4%, while used unit comps fell by 6.3%.

• Carter’s Inc. has taken an aggressive step to safeguard its future against an unapproved takeover after hedge fund Roseman Wagner Wealth Management (RWWM) accumulated a 16.86% stake in the company.
• This strategic move comes in the form of a “poison pill” or shareholder rights plan, a mechanism commonly used to defend against hostile takeovers.
• The decision to adopt this poison pill follows RWWM’s rapid stock accumulation, which potentially signals a corporate raid or takeover attempt.

• Pacific Textiles is a major knitted fabric manufacturer facing significant headwinds, evidenced by a multi-year decline in revenue and profitability. The company’s performance is closely tied to the cyclical nature of the global apparel market and the inventory management of its key customers.
• The company maintains a high dividend yield, which may appeal to income-focused investors. However, the sustainability of this payout is questionable given the sharp decline in net income and free cash flow, and the dividend per share has already been reduced.
• Strategically, the company is shifting production capacity to its Vietnam facilities to capitalize on lower costs and changing trade dynamics. This move is crucial for future competitiveness but also entails execution risk and underutilization of its China-based assets.

This content is AI-generated and displayed for general informational purposes only. Please verify independently before use.

• Olam Group is undergoing a significant strategic reorganization, separating into three distinct operating units: ofi (Olam Food Ingredients), Olam Agri, and the Remaining Olam Group. This move is designed to unlock shareholder value through focused strategies and potential capital market activities, including IPOs and divestments.
• A key milestone in this reorganization is the announced sale of its entire stake in Olam Agri to the Saudi Agricultural & Livestock Investment Company (SALIC), which is expected to significantly deleverage the Group’s balance sheet and fund strategic investments into ofi.
• Despite strong top-line revenue growth historically, the company has demonstrated a troubling trend of deteriorating profitability and negative cash flow, with significant declines in net income, EPS, and free cash flow over the past decade, posing risks to dividend sustainability and shareholder returns.

This content is AI-generated and displayed for general informational purposes only. Please verify independently before use.

Key points (machine generated)

• Disney has strong brand recognition and diverse content, indicating potential for growth.
• Challenges include increased competition, changing consumer preferences, and economic uncertainties.
• Stakeholders should be optimistic yet cautious about Disney’s future in the evolving entertainment landscape.

This article is sourced from an online content aggregator through publicly available sources and is displayed below for general informational purposes only. This article was originally published 3 months ago on Value Investors Club.

• Culp reported 1QFY26 GAAP EPS of ($0.02) versus ($0.58) in 1QFY25.
• Adjusting for one-time items, including a $4.0MM gain on the sale of property in Canada in 1QFY26, we estimate that ongoing EPS was ($0.30) versus ($0.36) in 1QFY25; management does not provide an adjusted EPS number.
• Please note with this report, we are assuming coverage of Culp, Inc.