Consumer

• 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.

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• 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.

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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.

• Today after the close, the Soft99 Corp (4464 JP) Board of Directors came out AGAINST the Effissimo ¥4,100/share counterbid to the original ¥2,465/share MBO.
• “The Special Committee advised that the Tender Offer would not contribute to the enhancement of the Company Group’s corporate value, nor would it be fair to the Company’s general shareholders.”
• ¥2,465 is fair. ¥4,100 is not fair. Absolute hogwash. Unmitigated blatherskite. Pure trumpery. Codswallop, buncombe, taradiddle, balderdash, and nincompoopery too. I expound below.

• On 10 September, CVC announced a family-led MBO of well-known Japanese hair-care/cosmetics firm Mandom Corp (4917 JP). Agreed, supported, recommended, for a start date end-September. It was also too light.
• I suggested the open-ish register could trigger activists. The stock opened just above terms post-announcement and then traded higher. Shares fell today but it is still 15% through terms. 
• Hibiki Path Advisors wrote a strong letter. Murakami announced a 6.67% stake yesterday, 8.39% today. But that’s 5 days old. Today, the company announced the TOB starts tomorrow. Still fun. 

• As Prosus NV (PRX NA) outperforms, Naspers (NPN SJ) is coming up “cheap” on my monitor. 
• Preceding my comments on Naspers/Prosus and Tencent (700 HK), 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%.

• The Soft99 Corp (4464 JP) Board has, unsurprisingly, opposed the Effissimo offer for several reasons. Notably, they do address the huge price disparity between the two offers. 
• While most of the reasons to justify the opposition are weak, the Board unexpectedly notes that as of 24 September, the MBO retained acceptances to satisfy its minimum tendering condition. 
• Despite the significant premium of the Effissimo offer, this development suggests that the current acceptances for the MBO are sticky, thereby increasing the likelihood that Effissimo’s offer will fail. 

• Disclosure threshold drops from 5% to 1%, signaling stricter transparency, heavier penalties, and potential acceleration of buyback cancellations; new rules open for comment until November 5, effective Q4.
• Near-Term, high-treasury, solid-ROE stocks could see short-term momentum as mandatory cancels and tighter disclosure mechanically lift EPS, driving flows and setting up potential short-term longs.
• This sparks a new event-driven “disclosure schedule trading” setup, as 1%+ treasury holdings now trigger twice-yearly reports and six-month follow-ups, boosting volatility around announcements.

• Alibaba Group has announced an aggressive expansion of its artificial intelligence ambitions, earmarking over $50 billion in new AI and cloud investments over the next three years—an amount greater than its entire spending over the last decade.
• This significant push is aimed at positioning the company at the forefront of Asia’s generative AI and cloud infrastructure race.
• Central to this effort is the launch of its next-generation large language model, Qwen3-Max, following the success of Qwen2.5, which already has over 90,000 derivative models globally.

• Comcast (Nasdaq: CMCSA) will spin off its cable networks and digital platforms into a new, independent, tax-free entity, Versant Media Group (Nasdaq: VSNT).
• The separation aims to unlock distinct value profiles, giving investors clearer exposure to both Comcast’s infrastructure-driven growth and Versant’s media/content-driven earnings
• The transaction is expected to be tax-free for Comcast shareholders and is anticipated to be completed in 2026.

• NIO is a prominent player in China’s premium electric vehicle (EV) market, distinguished by its strong brand, innovative Battery-as-a-Service (BaaS) model, and focus on user community.
• The company faces significant headwinds, including intense competition in the Chinese EV market, persistent unprofitability, and high cash burn, necessitating reliance on capital markets for funding, as evidenced by a recent US$1 billion equity offering.
• Future success hinges on management’s ability to execute on ambitious targets, such as improving gross margins with new models and achieving profitability, a goal they have missed in the past.

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• Companies that responded that they disclosed their annual securities reports prior to the AGM in response to investor needs are considering postponing the timing of their shareholders’ meetings.
• Annual securities reports are legal documents, and false statements are punishable by law, so the level of authenticity differs from other documents. It takes time to read them for AGM.
• There needs to be an increase in the number of investors who carefully read annual securities reports and use them to make investment decisions.

• While FY25 results for Myer revealed resilient sales, a step-up in costs was cause for concern though analysts generally believe management’s strategy reset remains on track.
• -Myer’s FY25 result disappoints on costs, shares weaken -Analysts posit it is still early in management’s multi-year transformation plan -Step-up in CODB costs is structural, cautions Ord Minnett -If all goes well, shareholders can expect significant step-up in dividends

• Alibaba (9988 HK) launched Qwen3-Max, its largest LLM to date, along with a suite of Qwen3 models and technical upgrades at its annual flagship conference, reinforcing its full-stack AI ambitions.
• The stock has surged nearly 50% month-to-date, fueled by investor optimism over AI-related upside, since the August 29 investor call.
• Investors now await proof that execution and performance will deliver on Alibaba’s bold technical claims and high market expectations.

• Murakami reported a 7.14% ownership ratio in Mandom Corp (4917 JP). The average buy-in price of JPY2,070.73 per share is 5.6% above the JPY1,960 CVC-sponsored MBO.
• Murakami undoubtedly shares Hibiki’s concerns. On 15 September, Hibiki issued an open letter questioning the rationale behind the Board’s recommendation of a CVC-sponsored preconditional MBO. 
• With the emergence of Murakami, CVC and the founding family’s options narrow. The need for satisfaction of the precondition buys time, but a bump seems inevitable. 

• Chery Automobile (9973. HK) priced its IPO at HK$30.75 per share to raise gross proceeds of approximately US$1.2 billion. The shares will begin trading on September 25.
• The IPO was discussed in Chery Automobile IPO: The Bull Case, Chery Automobile IPO: The Bear Case and Chery Automobile IPO (9973 HK): Valuation Insights. 
• The market sentiment of the peers has declined since the IPO launch. Chery Auto is fairly valued at the IPO price.

• Baba’s recent surge mirrors past rallies, with recent sideways price action raising a caution flag.
• Metrics from the options market suggest that sentiment that was overheated has begun to turn.
• We explore an alternative hedge that will not cap a continued rally but is less expensive than directly buying Puts in Baba.

• Chery Auto, the second largest Chinese domestic brand passenger vehicle company, priced its IPO at the high end of the range at HK$30.75/share.
• High demand for the stock was predictable. Cornerstone investors collectively agreed to acquire ~$588M worth of Chery Auto shares in this offering.  
• The Chery Auto stock is set to start trading on Thursday. I see modest potential upside vs. IPO offer price as growth is slowing down and margins compressed.

• Context: The Toyota Motor (7203 JP) vs. Suzuki Motor (7269 JP) price-ratio has deviated more than two standard deviations from its one-year average, presenting a potential relative value opportunity.
• Highlights: Going long Suzuki and short Toyota targets a 9% return.
• Why Read: Essential for quantitative traders seeking mean-reversion opportunities, with detailed execution framework, risk management protocols, and historical simulation showing the statistical basis for this relative value play.

• Chery Automobile (9973 HK) raised around US$1.2bn in its Hong Kong IPO.
• Chery Auto is a Chinese passenger vehicle company which designs, develops, manufactures and sells passenger vehicles, including internal combustion engine vehicles and new energy vehicles, both domestically and overseas.
• We have looked at the company’s past performance in our previous notes. In this note, we talk about the trading dynamics.

• M Dias Branco is the undisputed market leader in Brazil’s cookies and pasta segments, possessing a vast portfolio of well-recognized brands and an extensive nationwide distribution network.
• The company is exposed to significant commodity price volatility, particularly wheat, and currency fluctuations, which can pressure margins. However, a vertical integration strategy, including its own mills, helps mitigate some of this risk.
• After a period of margin compression, recent financial performance shows signs of recovery driven by price adjustments and cost control measures. Future growth is expected to come from organic expansion in underpenetrated regions, product innovation, and potential acquisitions.

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• Orion Breweries holds a dominant market position in its home market of Okinawa, commanding a market share of approximately 40-60%. This provides a stable foundation for its operations.
• The company is strategically diversifying its business into tourism and hotels, leveraging the strong tourism industry in Okinawa to create synergies with its core beer business.
• While poised for growth through an upcoming IPO and overseas expansion, Orion faces significant challenges including high leverage, upcoming tax headwinds, and intense competition from larger domestic rivals.

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• In our previousNIFTY Index insight published at the end of August we highlighted two possible scenarios before the Sep-30 rebalance: 1) risk-off pullback or 2) small rally. 
• Scenario 2), the small rally is what came true, it lasted 3 weeks (we said 2 weeks), but it was a weak rally. The NIFTY however is not very overbought.
• 3-Week rallies not reaching higher highs usually indicate a weakness in the trend, but this could be a buy opportunity, so let’s have a look at our model’s BUY zones… 

• Context: Stat-arb models flag Alibaba (9988 HK) as overvalued versus the Hang Seng Index (HSI INDEX), with the difference between implied volatility and option premium at historically high levels.
• Highlight: An actionable trade setup — long HSI calls vs. short Alibaba calls — that captures relative value and introduces leverage through a ratio structure.
• Why Read: This is a timely opportunity to combine a directional view with favorable volatility dynamics, offering asymmetric payoff potential.

• Heineken Holding NV (HEIO NA) ’s US$3.2bn acquisition of beer, soft drinks, and retail assets in Central America at 11.6x EV/EBITDA highlights the valuation gap with Asian Beer Companies.
• CR Beer’s strong 1H2025 recovery in sales and margins were powered by innovative product launches and digital channel sales. However it’s performance has drawn little market attention, yet.
• China Resources Beer Holdings (291 HK)  trades near 10-year low EV/EBITDA, even as consensus expects solid margins and steady revenue growth ahead. Expect a valuation upside.

• Cash Converters International (ASX:CCV) is a consumer finance company operating as a service provider, owner and franchisor of second-hand goods and financial services stores in Australia and internationally.
• CCV is currently executing a clearly stated growth strategy involving the reshaping of its personal finance business complemented by growing its corporately-owned store network through acquisition.
• The recent FY25 result was a strong representation of a business that is successfully transitioning and a good leading indicator of the changing business mix which should ultimately result in a business that is geographically broadened yet operating a simplified lending business, with a lower risk profile and improved growth funding optionality.

• Hanon Systems announced that it has finalized a rights offering capital increase of 900 billion won. This capital raise will involve 347.5 million common shares (51.2% of outstanding shares)
• The expected rights offering price is 2,590 won per share, which is 18.4% lower than current price of 3,175 won. 
• We remain Negative on Hanon Systems (018880 KS). There is a high probability that this rights offering deal will likely be a dilutive deal for the Hanon System shareholders.

• Dowlais shareholders receive £0.43 cash plus 0.0881 AAM shares, valuing the stock near 82p. Current price 79.75p leaves a 2.9% spread, annualising to ~11–13% returns.
• Both shareholder votes passed and AAM secured $3bn funding, reducing execution risk. Regulatory approvals across the US, EU, China, Brazil, and Mexico remain the final gating conditions to completion.
• Downside if deal fails: shares could re-rate to pre-announcement 68–75p, ~5–15% downside. Market sees limited overlap, so main risk is delayed approvals pushing closing into early 2026.

• In today’s Morning Views publication we comment on developments of the following high yield issuers: SJM Holdings
• UST yields climbed 2-3 bps across the curve yesterday, rising for the fourth straight day after the Fed’s rate cut last week. The UST curve bear flattened slightly, with the yield on the 2Y UST rising 3 bps to 3.60%, while that on the 10Y UST increased 2 bps to 4.15%. Equities climbed for a third straight day.
• The S&P 500 edged up 0.4% to a fresh record high (for the 28th time this year) of 6,694, while the Nasdaq was up 0.7% at 22,789.

• Tire makers see profit pressure despite revenue gains  
• JK Tyre eyes double-digit growth, expands global footprint  
•  CEAT eyes expanding Chennai plant at US$51 million spend  

• Transformation into a Diversified FMCG Major: Tata Consumer Products (TCPL) is aggressively diversifying beyond its core tea and salt businesses, moving into higher-growth categories like packaged foods (Tata Sampann), snacks (Tata Soulfull), and ready-to-drink beverages. Recent acquisitions of Capital Foods (Ching’s Secret, Smith & Jones) and Organic India significantly expand its total addressable market and enhance its presence in high-margin segments.
• Strong Brand Equity and Distribution as Key Moats: The company leverages the immense trust associated with the ‘Tata’ brand, providing a significant competitive advantage. Its extensive distribution network, reaching millions of retail outlets, combined with a growing e-commerce presence, creates a formidable barrier to entry and a platform to scale new product launches and acquisitions effectively.
• Focus on Premiumization and Innovation Driving Growth: TCPL is strategically focused on premiumizing its portfolio across categories, such as value-added salts and premium tea variants, to capture evolving consumer preferences and improve margins. A consistent pipeline of new product launches, particularly in health and wellness, caters to modern consumer trends and is a key driver of future growth.

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• Prosus is a global internet group with a vast portfolio of online companies, but its market value is predominantly influenced by its substantial stake in Chinese tech giant Tencent.
• The company trades at a significant and persistent discount to its net asset value (NAV), a key challenge management is addressing through an open-ended share buyback program funded by the gradual sale of its Tencent shares.
• A strategic pivot is underway, shifting from a passive investment holding company to an active operator aiming to drive its core e-commerce segments (Food Delivery, Classifieds, Fintech, and Edtech) to sustained profitability and unlock value independent of Tencent.

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• Global Automotive Component Leader with Diversified Operations: Samvardhana Motherson International Ltd. (SAMIL) is a leading global manufacturer of automotive components, with a well-diversified portfolio across products, geographies, and customers. The company is a key solutions provider to major automotive original equipment manufacturers (OEMs) worldwide.
• Strong Growth Trajectory and Ambitious Future Plans: The company has a proven track record of strong financial performance, characterized by consistent revenue and profit growth. SAMIL has laid out an ambitious ‘Vision 2030’ with a target of achieving $108 billion in revenue, driven by organic growth, strategic acquisitions, and diversification into non-automotive sectors.
• Focus on Financial Prudence and Shareholder Returns: Despite its aggressive growth strategy, SAMIL maintains a focus on financial discipline, with a healthy leverage ratio and a commitment to improving its return on capital employed (ROCE). The company also has a stated policy of distributing a significant portion of its profits as dividends.

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• Gross SOUTHBOUND volumes just over US$22+bn a day this past 5-day week. Biggest week in a while. Net Flows not following gross flows. Feels toppish into GW.
• The recommended name last week was Alibaba (9988 HK) was up 2.2% on the week but only +0.7% from Monday close to Friday. 
• 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.

• The one-week lemon shortage did not impact the stock price.
• The stock price has plunged for three months to HK$395 from the peak HK$618.
• The revenue growth and the margin were healthy in 1H25.

• Effissimo has steadily increased its Pacific Industrial (7250 JP) stake to 7.0 million shares or a 12.17% ownership ratio. The most recent purchases were at an average price of JPY2,616.08. 
• Effissimo is taking contrasting approaches to low-ball MBOs. For Soft99 Corp (4464 JP), Effissimo has launched a hostile offer, while for Pacific, Effissimo has chosen to agitate for better terms.
• The offer closes on 24 September. While a bump is the most likely scenario, the share price is 30% higher than the offer price, suggesting limited upside. Take profits. 

• Warren Buffett’s Berkshire Hathaway completely exited its stake in BYD (1211 HK).
• We highlight four major reasons why Berkshire may have exited its entire position including valuations, tariffs, competition and lower profit margins, and greater risk prospects on economic stagnation in China. 
• Berkshire selling all its stake in BYD is likely to have a slightly negative impact on the Chery Auto IPO. However, we maintain a Positive view of Chery Auto IPO. 

• The Pinkfong company (creator of the Baby Shark brand) is getting ready to complete its IPO in KOSDAQ in 4Q 2025. 
• The company plans to issue 2 million shares in this listing. The IPO price range is from 32,000 won to 38,000 won per share.
• At this price range, the expected expected market cap of the Pinkfong company ranges from 463 billion won (US$331 million) to 550 billion won ($393 million).

• Kraft Heinz’s decision to split into Global Taste Elevation Co. and North American Grocery Co. is a strategic move intended to recalibrate the Company amid flattening growth.
• We value Kraft Heinz on a sum-of-the-parts (SOTP) basis. Global Taste Elevation is valued at 10x 2025E adjusted EBITDA, while North America Grocery is valued at 7.8x 2025E adjusted EBITDA.
• We expect the spin-off to unlock value for shareholders as Global Taste Elevation Co will get better multiple post separation.

• After a 33.9% rally off the April lows HSI is starting to flash caution across a variety of metrics.
• Weak breadth and option exuberance at the single stock level are additional areas of concern.
• We outline the technical backdrop and recommend hedge strategies given the current level of implied vols.

• With a 50% tariff imposed on India by the US, Vietnam’s factories have now become the busiest in the region. Our textile stocks have rallied slightly in response to this. 
• Corroborating Vietnam’s strength was Dream International (1126 HK) Post Results Call: Moving Into A Great Peak Season, and now recently Nameson Holdings (1982 HK) and Stella International (1836 HK) 
• Nameson Holdings (1982 HK) trades at 6x PE trailing with a 13% dividend yield. However, as we enter peak season with busy factories, we believe the situation could improve significantly. 

• Weak travel growth getting weaker, now years out from steepest part of recovery
• Most airlines & hotel chains have benefitted little from improved travel demand
• In recent months, appears momentum shifting back to travel intermediaries 

• Wakefit Innovations (1684049D IN) is looking to raise US$231m in its upcoming India IPO.
• Wakefit Innovations is a direct‑to‑consumer sleep and home‑solutions company, founded in 2016. It mainly sells mattresses, furniture and furnishings.
• In this note, we look at the company’s past performance.

• A weekly summary of key developments across ECM and Event-Driven names tracked by us across Hong Kong, Australia, New Zealand, Singapore, Japan, Indonesia, Malaysia, Thailand, Korea, India and Chinese ADRs.
• ECM developments: Chery Automobile (9973 HK), Zijin Gold (2259 HK) and Centurion Accomodation REIT (CAREIT SP) IPOs. 
• Event-Driven developments: Soft99 Corp (4464 JP), Mandom Corp (4917 JP), ANE Cayman Inc (9956 HK), Jinke Smart Services (9666 HK), Shengjing Bank Co Ltd H (2066 HK). 

• Genic is a turnaround story. Genic is one of the largest ODM companies that make beauty face masks in Korea. 
• Genic is one of the biggest suppliers of hydrogel based face masks of the Biodance brand which has been experiencing an excellent demand in global markets, including the United States. 
• Despite surging growth in sales and profits, valuation multiples remain reasonable. It is trading at EV/EBITDA of 12.7x and P/E of 14.2x, based on recent prices and LTM financials. 

• Hamee reported earnings on September 12, and the stock traded down ~6%.
• The headline earnings looked awful but they included many one time and/or non cash expenses.
• To me, the underlying business looks strong. The spin-off is on track for early November, and I expect it to serve as a hard catalyst to drive shares higher.

• General Mills’ first quarter fiscal 2026 results present a mixed bag of strategic maneuvers and financial performance.
• The company is navigating a dynamic environment marked by significant changes, including the divestiture of its Yoplait business and the acquisition of Whitebridge.
• CEO Jeff Harmening emphasizes the company’s commitment to returning to profitable organic growth, aiming to enhance shareholder value despite these transitions.

• Global-E Online Ltd. exhibited a strong set of financial results for the second quarter of 2025, highlighted by notable year-over-year growth and a milestone achievement in profitability.
• The company’s Gross Merchandise Volume (GMV) grew by 34% from the same period last year, reaching $1.45 billion, while total revenue increased by 28% to approximately $215 million.
• Adjusted EBITDA for the quarter was $38.5 million, marking a 23% increase, although the EBITDA margin slightly contracted to 17.9% due to a lower gross margin.

• Bausch + Lomb’s second quarter 2025 results reflect a mix of solid performance and ongoing strategic challenges.
• The company’s revenue grew by 3% year-over-year, reaching $1.278 billion, spurred by robust growth in their contact lenses and consumer segments, despite facing headwinds such as the enVista intraocular lens recall and challenges in their U.S. generics business.
• Positives in this performance include constant currency revenue growth of 3%, which would have been significantly higher at 6% if the enVista recall had been excluded.

• Kellanova reported results that demonstrated continued execution on its strategy of driving growth through innovation, volume recovery, and margin expansion while navigating a complex operating environment.
• The company delivered organic net sales growth of 4 percent in the second quarter, in line with its long-term target range, supported by a combination of price mix and sequential improvement in volume across most regions outside of Nigeria.
• Baptista Research looks to evaluate the different factors that could influence the company’s price in the near future and attempts to carry out an independent valuation of the company using a Discounted Cash Flow (DCF) methodology.

• Boyd Gaming reported a quarter characterized by strong operational results, significant capital deployment, and a transformative monetization of its digital gaming stake.
• The company announced the sale of its 5% equity interest in FanDuel to Flutter Entertainment for $1.755 billion in cash, with after-tax proceeds of approximately $1.4 billion.
• Proceeds will be used to repay outstanding credit facility debt, lowering leverage from 2.8x to below 2x and resulting in estimated annual interest savings of $85 million.

• Before I get into my regular update, I want to share one fantastic chart that caught my eye.

• It shows current earnings multiple of the S&P 500, 400 and 600, respectively.

• One takeaway is that large caps (S&P 500) are at the high end of their historical trading range.

• HSI tested new highs before fading, as weak breadth and strong option volumes highlighted diverging signals in Hong Kong equities.
• Technically, HSI may have reached a level from which minor corrections have started.
• Option trading activity surged, reaching its busiest day since November, even as overall market momentum faltered.

• Jumia, dubbed the “Amazon of Africa,” had a highly anticipated IPO in April 2019 but has not met expectations since listing
• The company aimed to revolutionize e-commerce in Africa but has faced challenges in profitability and implementing Western business models
• Despite initial hype and investments from blue chip firms, Jumia’s struggles serve as a cautionary tale about transposing Western ideas onto the African continent

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• It’s true that measures to raise P/B that focus on strengthening shareholder returns are unpopular with investors, while excess cash on hand should be returned to shareholders under stagnated ROE.
• Both bond and equity investors are focused on the future cash flow a company will generate, and increasing cash flow is consistent with the goals of a public company.
• If a company can’t use cash reserves to increase corporate value, it should either return excess cash to shareholders or change to a manager that can use cash for growth.

• Like all the big apparel firms, TSI sees diversification as one of the few ways to find growth in a contracting market. 
• It has the cash to do this and has just bought Daytona, the respected operator of the Freak’s store chain.
• It will use its access to capital to accelerate expansion for new fashion chains.

• In our previous insight from September 2 we suggested if BYD (1211 HK) reached 102 could have been a good BUY signal. 
• It took a bit more than a couple of week for the stock to bottom at 102.80 (this week), then rally 10%  to 113.50. Impressive, but….
• … it could be a Bear rally, so in this insight we will try to assess BYD upside potential, and suggest some tactical positioning for the next few weeks.

• On August 7, YUKIGUNI FACTORY CO., LTD. (hereinafter, the Company) announced its consolidated financial results for Q1 FY2026/3 (April–June).
• Revenue decreased 1.8% YoY to JPY 7,284 mn, while core EBITDA fell 15.5% YoY to JPY 575 mn and core operating profit dropped 78.6% YoY to JPY 22 mn.
• Due to seasonality, Q1 and Q2 are non-demanding periods for mushrooms, and significant earnings progress is difficult to expect.

• The Campbell Soup Company’s fourth-quarter fiscal 2025 performance slightly surpassed expectations, with mixed outcomes across its divisions.
• The company experienced a 1% increase in net sales, attributed partly to an additional week in the quarter and partially offset by divestitures.
• In-market consumption declined 1%, and organic net sales fell by 3%, primarily due to favorable shipment timing in the previous quarter reversing.

• Macy’s, Inc. reported a second-quarter financial performance that reflected a combination of improved sales figures, strategic advancements, and cautious outlook adjustments due to the macroeconomic environment.
• The company achieved a 1.9% growth in comparable sales, marking its strongest performance in 12 quarters, driven by a 2.2% increase in its Go-Forward businesses, which include prominent brands like Bloomingdale’s and Bluemercury.
• These brands demonstrated notable sales momentum, with Bloomingdale’s hitting a 5.7% increase in comparable sales, maintaining growth consistency, and Bluemercury achieving its 18th consecutive quarter of sales growth.

MP Evans Group’s board raised the interim dividend 20% to 18p, reflecting both confidence in long-term prospects and improved H125 results. Operating profit rose 50% to $62.2m, while EPS increased 60% to 71.7p. MP Evans continues to shift towards processing its own crop, which now represents 84% of volumes (H124: 74%). Group harvested crop rose to 8%, while independent purchases fell by 39%. The stronger mix and robust prices lifted the gross margin to 35% (H124: 26%) and underpinned net cash of $70.5m, compared with net debt of $7.3m a year earlier.

• Yesterday, Soft99 Corp (4464 JP) announced a slight change in its “Target Opinion Document” after the MBO Bidco extended its TOB by 8 days the day before. 
• The detail was not in the MBO Bidco extension. It was just revealed in an added note on p3 of the Target Opinion. 
• That details matters A LOT to people looking at the Effissimo Overbid. The company’s Board has some serious work ahead. 

• Our base case valuation of Chery Auto is target price of HKD 40.6 which is 32% higher than the high end of the IPO price range. 
• Our base case valuation is based on EV/EBITDA of 5.9x our estimated EBITDA of 37.1 billion RMB in 2026. Our target multiple is 30% premium to the comps’ average multiple.
• We have chosen to use a premium valuation multiple mainly due to Chery Auto’s higher ROE, sales growth, and net margins vs the comps.

• After sinking to 10-year lows in January,  Health And Happiness (H&H) ’s stock has rebounded more than 75%, raising the question of whether operations are finally turning the corner.
• With signs of stabilizing growth and improving returns across product categories, 1H2025 results seem to signal the end of years of investor agony.
• Nutritional supplements now contribute to 65% of H&H’s revenue – Swisse’s strong positioning in the fast-growing anti-aging category underpins future growth.

• In a bold and highly publicized move, Tesla CEO Elon Musk recently purchased $1 billion worth of Tesla shares, raising questions about whether this insider action can restore near-term investor confidence in the electric vehicle giant.
• Coming on the heels of a tumultuous few quarters marked by falling regulatory credit revenue, inflationary cost pressures from tariffs, and increased capital expenditures for AI and energy storage initiatives, the purchase is being framed as a powerful show of confidence in Tesla’s long-term vision.
• At the same time, Tesla’s recent Q2 2025 results showcased significant advancements including the rollout of robotaxis in Austin, substantial progress on Optimus humanoid robots, and growing traction for FSD software.

• Wolters Kluwer announced it will accelerate its EUR 1bn 2025 share buyback program while reiterating its full-year outlook.
• The company’s Executive Board decided to bring forward the program’s completion to November 3, 2025, two months earlier than planned, citing recent share price developments and confidence in long-term growth.
• Management emphasized that this move underlines its commitment to creating sustainable shareholder value.

• China gold jewelry demand slumped in 2Q2025, while investment demand for coins and bars remained resilient amidst rise in gold prices, according to data released by China Gold Association.
• If gold rally continues, Chow Tai Fook Jewellery (1929 HK) faces heightened demand growth risk due to reliance on the competitive, price-sensitive, consumption-driven jewellery segment.
• Chow Tai Fook’s 140% YTD rally reflects optimism on branding-driven earnings growth, but stretched valuations overlook downside risks to growth if gold prices keep rising.

• On 15 September, Hibiki Path Advisors issued an open letter questioning the rationale for the Mandom Corp (4917 JP) Board to recommend a CVC-sponsored preconditional MBO at JPY1,960 per share. 
• Hibiki opines that the MBO is being done at the wrong price (Hibiki’s value is JPY3,050). Some of Hibiki’s criticisms are valid, while others are not.
• CVC’s initial approach will wait for precondition satisfaction and secure additional irrevocables. However, this is a stopgap measure, and a bump is likely to occur.

• Chery Automobile (9973 HK) is a Chinese automobile manufacturer. It has launched an HKEx IPO to raise up to US$1.2 billion.
• I previously discussed the IPO in Chery Automobile IPO: The Bull Case and Chery Automobile IPO: The Bear Case. 
• In this note, I present my forecasts and valuation. My analysis suggests that the IPO price range is reasonable.

• Chery Automobile is looking to raise about US$1.2bn in its upcoming Hong Kong IPO.
• Chery Auto is a Chinese passenger vehicle company which designs, develops, manufactures and sells passenger vehicles, including internal combustion engine vehicles and new energy vehicles, both domestically and overseas.
• We have looked at the company’s past performance in our previous notes. In this note, we talk about valuations.

• Context: The Alibaba (9988 HK) / Hang Seng Index (HSI INDEX) price-ratio deviated more than two standard deviations from its one-year average, presenting a potential relative value opportunity.
• Highlights: Going long the Hang Seng Index and short Alibaba (9988 HK) targets a 12% return.
• Why Read: Essential for quantitative traders seeking mean-reversion opportunities, with detailed execution framework, risk management protocols, and historical simulation showing the statistical basis for this relative value play.

• Physicswallah Limited (2076103D IN) is looking to raise about US$434m in its upcoming India IPO. The deal will be run by Axis, Kotak, GS, and JPM.
• Physicswallah Ltd (PWL) offers test preparation courses for competitive examinations, and other courses such as for upskilling, across 13 education categories, including JEE, NEET, and UPSC, among others.
• According to Redseer, PWL was among the top-five education companies in terms of revenue in India and one of the fastest-growing companies in terms of revenue growth during FY22-24.

• Chewy’s latest financial performance in the second quarter of fiscal year 2025 showcased solid growth, with net sales increasing by approximately 9% year-over-year to $3.1 billion, surpassing the upper end of the company’s guidance range.
• This growth is particularly noteworthy in a market environment characterized by low to midsingle-digit industry growth, highlighting Chewy’s ability to capture market share.
• The company’s Autoship program, especially in consumables and health categories, played a significant role, generating $2.58 billion in customer sales and constituting 83% of total sales for the quarter.

• Faraday Future to spin-off its “Crypto Flywheel” / C10 Treasury assets into a separate entity (CXC10), enabling independent fundraising and clearer strategic focus.
• Post separation, Faraday Future remains an EV story, focused on vehicle development, production milestones, and shared mobility initiatives.
• The separation of the volatile, high-risk crypto assets from the EV business will reduce investor confusion and may uplift valuation by removing any conglomerate discount.

• In 2025, 76 primary-listed companies in Singapore executed share buybacks totaling S$1.65 billion, an 80% increase from 2024.
• UOB, DBS, and OCBC led buybacks with a combined S$1.28 billion, driven by capital management initiatives and dividends.
• Secondary-listed Hongkong Land repurchased US$176 million shares, while City Developments completed an off-market buyback of preference shares.

• Corporate Governance Code, which makes the appointment of outside directors mandatory, was introduced in the hope of restructuring corporate governance and restoring profitability.
• We must explore why, as the role of outside directors expands and dependence on them grows, the challenges of profitability and rising stock prices remain far from being resolved.
• It’s a good idea to have half of directors be independent outside directors. Companies with fewer than that should improve the skills of the entire BOD to increase their effectiveness.