Consumer

• 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.

• Effissimo has formally launched its hostile tender offer for Soft99 Corp (4464 JP) at JPY4,100, which is 66.3% higher than the MBO price of JPY2,465. 
• The Board stonewalled Effissimo’s attempts to negotiate a friendly offer. The huge premium of Effissimo’s offer relies on lower WACC assumptions compared to the target/special committee IFA.
• Management’s initial approach will be to rely on the Board to oppose the Effissimo offer. There is a good chance that Soft99 will remain listed with two large shareholders. 

• Chery Automobile Co. Ltd. (9973 HK)‘s IPO range is HK$27.75-HK$30.75/share and will raise up to HK$10bn (US$1.3m) if the oversubscription option is exercised, valuing the company at HK$169bn (US$21.7bn).
• The stock should be added to the HSCI Index in December and that will make the stock eligible for inclusion in Southbound Stock Connect.
• There will be no inclusion in global indexes for the next year, but there is a possibility of inclusion in the Hang Seng TECH Index (HSTECH INDEX) in December.

• Shares of Kenvue Inc., maker of Tylenol, dropped roughly 10% in early September 2025 after media reports—primarily from The Wall Street Journal—indicated that U.S. Health Secretary Robert F.
• Kennedy Jr. will release a forthcoming HHS report that likely links prenatal use of acetaminophen (Tylenol’s active ingredient) to autism.
• This decline followed investor concern over what such a regulatory conclusion could mean for Kenvue’s reputation, sales, litigation exposure, and overall risk profile.

• Kraft Heinz will separate into two independent publicly-traded companies via a tax-free spin-off  expected to close in H2 2026
• The two entities : Global Taste Elevation Co. focusing on sauces, spreads, seasonings, shelf-stable meals and North American Grocery Co.  centered on staples sold in North America
• The move is designed to disentangle distinct brand portfolios, so each can pursue clearer growth, margin and capital-allocation strategies.

• In 2017, Apollo Global Management took the University of Phoenix’s parent company, Apollo Education Group, private in a deal valued at roughly $1.1 billion.
• Their net revenue was $709.8 million and $749.8 million and their net income was $105.1 million and $116.4 million in the first three quarters of fiscal 2024 and 2025, respectively.
• An IPO for Phoenix Education is set for the last week of September or potentially the first half of October.

• Orkla India Ltd. (0752506D IN) is looking to raise about US$300m in its upcoming India IPO.
• Orkla India is a multi-category food company offering a diverse range of spices and convenience food products, catering to every meal occasion across breakfast, lunch, dinner, snacks, beverages and desserts.
• In this note, we talk about the company’s historical performance.

• We visited a “Busy for You” store near a university in Shanghai.
• We believe Busy Ming can attract young customers because of low prices and small packages.
• However, we also believe the company does employ enough shop assistants.

• Vinfast (VFS US) is in severe financial distress, with negative gross margins (-57.4%), a $4.3B liquidity crisis, and total dependence on its parent for funding.
• The company has significant operational risks, including reliance on related-party sales for 27.6% of deliveries and material weaknesses in its internal financial controls.
• Despite its instability, VinFast is pursuing a high-risk, debt-funded $2 billion expansion into India, launching two SUVs and inaugurating a new manufacturing facility.

Key points (machine generated)

• Six Flags Entertainment’s current trading downturn is due to unfounded consumer demand fears and poor weather conditions.
• Improved weather and successful strategy execution in 2025 could significantly increase stock value to $55-60 per share.
• With new management from Cedar Fair, Six Flags is well-positioned for long-term growth, making it an attractive investment.

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.

• In this edition: • Unilever | to appoint Srinivas Phatak as its new CFO • Fugro | awarded contract for sewerage infrastructure renewal program

• Alibaba Group is back in the spotlight after unveiling a trifecta of high-profile moves that have reignited investor interest and sent its shares sharply higher.
• The Chinese tech conglomerate raised $3.2 billion through the issuance of zero-coupon convertible bonds due 2032, a financing round earmarked for strengthening its AI and cloud infrastructure.
• At the same time, reports surfaced that Alibaba is beginning to deploy in-house AI training chips, reducing reliance on Nvidia’s costly accelerators and signaling a shift toward technological sovereignty in the middle of China’s broader AI race.

• The SET50 index tracks the performance of the top 50 largest and most liquid names listed on the Stock Exchange of Thailand (SET).
• In this insight, we take a look at our capping flow expectations for the September 2025 index rebal event.
• Separately, we expect at least two index changes during the next index review in December 2025.

Key points (machine generated)

• The article highlights Potbelly (PBPB) as a promising investment opportunity in the fast-casual restaurant sector.
• Under CEO Bob Wright, Potbelly has made operational improvements leading to increased average-unit volumes and profit margins.
• The author believes Potbelly is shifting from a turnaround story to a growth stock, with potential for shares to double.

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.

• Argos’s strategic value remains underappreciated, despite JD.com walking away. A sale or internal turnaround could unlock up to £2 billion in value based on realistic, post-tax synergy assumptions.
• Sainsbury acquired Argos for £1.4 billion in 2016, aiming for multichannel scale. While digital integration succeeded, long-term profit delivery has lagged — offering a compelling restructuring opportunity today.
• My event-driven SOTP model shows 10–25% share price upside, with optionality from renewed M&A interest, internal margin improvement, or capital allocation catalysts including divestment or spin-off.

• Thunderbird Entertainment is a highly illiquid Canadian stock with a market cap of $75 million CAD, traded at low volumes.
• Sofon Capital Research is interested in microcap companies like Thunderbird, defining them as high quality businesses at fair to great prices.
• Thunderbird is considered a very good business at an outstanding price, trading at less than 2x next 12 months EBITDA, making it an attractive investment opportunity.

This content is sourced through publicly available sources and has been machine generated. Information displayed is for general informational purposes only.

Key points (machine generated)

• Moutai is a premium baijiu essential for social gatherings in China, symbolizing respect and status.
• Despite strong financial performance, Moutai’s stock price has stagnated due to oversupply and pricing volatility.
• The long-term outlook for Moutai remains optimistic, with potential for recovery as market conditions stabilize.

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.

• Shares of KRBL Ltd (KRB IN) dropped as much as 12% intraday on September 15th, owing to resignation of Independent Director, Mr. Anil Kumar Chaudhary.
• His letter highlights suppression of dissent, lack of transparency in decision-making, questionable receivable write-offs, and CSR mismanagement among several governance concerns currently at the company.
• When triangulated with auditor qualifications, committee overlaps, CSR lapses, frequent Board/CS exits, and major write off, a pattern of weak checks and board oversight emerges.

• Independent Director Anil Kumar Chaudhary resigned in September 2025 citing serious governance issues including suppression of dissent, withholding of information, arbitrary financial decisions, and board process irregularities.
• These recent events suggest that previous governance controversies are not fully resolved, raising issues around board transparency, independent oversight, and risk to stakeholder trust.
• While KRBL’s operational performance remains strong, this development raises serious red flags about the company’s governance culture.

• LiDAR TAM is underestimated – Current consensus misses the true size. Our work suggests 2030 TAM can be 70–120% higher than implied; Hesai best positioned as the market leader.
• Three Sub-segments Key –China LiDAR penetration reaching 60% penetration, Global ex-China ADAS (and LiDAR) adoption accelerating to 25–35%, and Robotics (logistics, humanoids, appliances) building upto $60bn market by 2030.
• Though the use-cases and upside for the sector can be far beyond current estimates, the industry faces a significant technology risk and the jury is still out.

• Institutions were net buyers of Singapore stocks with S$11.1 million inflow, major inflows to DBS, ST Engineering, UOL.
• Stamford Land’s Ow Chio Kiat increased interest to 46.23%, maintaining a debt-free position with S$0.5 billion cash.
• Nordic Group’s Chang Yeh Hong increased interest to 54.87%, with a strong S$184.9 million orderbook as of June 2025.

• On 12 September, Kyodo News reported that Effissimo Capital Management will launch a competing tender offer for Soft99 Corp (4464 JP) at JPY4,100, 66.3% higher than the JPY2,465 MBO offer.
• The Effissimo offer structure has been designed to shine an unflattering spotlight on the MBO low-ball offer and to prevent management from privatising Soft99.  
• The management has several options to respond. The initial play will likely be to lean on the special committee to question the feasibility of the Effissimo bid. 

• Gross SOUTHBOUND volumes just under US$20+bn a day this past 5-day week. BIG Net buying. Big BABA trading. 
• SOUTHBOUND investors traded US$9bn of Alibaba (9988 HK) in the week. Not shy. It was a big net buy as well (4 of 5 days was +US$500mm or more).
• 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.

• In early August, the founder-family announced they would MBO the car care company Soft99 Corp (4464 JP). It was a very cheap MBO. Even 20% higher it would be cheap. 
• On Saturday, Kyodo, followed by various other media outlets, announced activist Effissimo Capital Management had announced a TOB to buy the company saying the MBO was “an extremely low level.”
• The Nikkei-reported goal would be “to protect the interests of minority shareholders while ensuring medium- to long-term increases in corporate value.” This is REALLY BIG NEWS.

• 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, things are picking up going into the year end, as is usual, with multiple US$1bn+ deals said to go live over the next few weeks.
• On the placements front, as well, market remains receptive for both primary and secondary offerings.

• The strong bullish sentiment towards gold has boosted Laopu’s share price, but we still have doubts about whether Laopu can truly benefit from the gold price rally in the future.
• In a crisis, gold stocks will face sell-off. We may see an “interesting phenomenon”- The price of gold commodities is soaring, while gold stocks are performing unsatisfactory or even plummeting.
• In fact, we already witnessed the inconsistency between the gold commodities prices and Laopu’s share price. This is the core logic we recommend investors take profits on Laopu in time.

• Context: Volatility cones provide a clear framework to evaluate whether options are trading cheap or rich.
• Highlights: Implied volatility has increased across the board, but while some stocks recorded a 5-10% increase, other just added 1-2%. Upcoming November earnings start to shape the term structure.
• Why Read: Spot opportunities, assess regime shifts, and manage risk effectively — volatility cones turn complex data into actionable insights for traders and investors.

• In Q3 FY2025/9, LIFULL Co., Ltd. (hereafter, the Company) reported consolidated net sales of JPY 21,059 mn, up 7.1% YoY and operating profit of JPY 3,001 mn, up 23.3% YoY .
• Operating profit rose substantially, backed by strong performance in the HOME’S Services segment.
• Excluding the one-time gain on sale recorded in the same period a year earlier, operating profit doubled on an actual basis, underscoring a notable improvement in profitability. 

• LFVN reported 4QFY25 adjusted EPS of $0.17 versus $0.14, up 21.4% and in line with our forecast. FactSet consensus was $0.18. All % changes are Y/Y.
• Sales in the quarter increased 12.6% to $55.1MM, below our forecast for $59.0MM and FactSet consensus of $56.9MM.
• Management’s implied 4QFY25 sales range was $54.6-61.6MM so it was at the lower end of management’s previous expectations as well. 

• Continental (XTRA: CON) is set to spin off its automotive business, Aumovio, on September 18, 2025.
• The business, which has historically operated with low margins and modest growth, is currently undergoing a turnaround.
• I estimate Aumovio’s fair value at approximately €56 per share and believe the stock could present an attractive opportunity if it trades down meaningfully following the spin-off.

• Next week, Continental (CON) will spin off its auto parts business, Aumovio, as a public company.
• The first day of regular trading will be September 18, 2025. Shareholders will receive one share of Aumovio for every two shares of Continental.

• Aumovio is in the midst of a turnaround, and I was initially skeptical of managements rosy guidance.

• I tally 43 – mostly firm, mostly Asia-Pac – arb transactions currently being discussed and analysed on Smartkarma.
• Two new deals were discussed on Smartkarma this week: Mandom Corp (4917 JP) and Digital Holdings (2389 JP). Also, Evergrande Property Services (6666 HK) suspended pursuant to the Takeovers Code. 
• Key updates/news took place on PointsBet Holdings (PBH AU), Jilin Jiutai Rural Comm Bank (6122 HK), Topcon Corp (7732 JP), and Furukawa Battery (6937 JP).

• HSI broke out to fresh four-year highs, driven by Alibaba’s surge, with broad-based gains and rising single stock option activity.
• Market breadth strengthened across both price action and single stock options flows.
• Spot-Up/Vol-Up dynamics defined the week, as sectors with strong gains also posted the largest implied vol increases.

• New Oriental Education & Technology Group Ltd reported a strong performance in the fourth quarter of its fiscal year 2025, highlighting both positive advancements and some challenges that may impact their future outlook.
• The company announced an 18.7% year-over-year revenue increase, excluding contributions from its East Buy segment, primarily driven by the expansion of new business ventures.
• These ventures include overseas test preparation, which grew by 15%, and adult and university student services, expanding by 17%.

• K-Pop Demon Hunters (KDH) started streaming on Netflix on 20 June 2025. KDH has become the most watched film on Netflix history, achieving 291.5 million views as of 11 September. 
• Nongshim has a collaboration with Netflix, releasing ramyun and snacks featuring characters from K-Pop Demon Hunters. The sale of these products (especially overseas) are likely to result in higher sales.
• Nongshim has hit a big home run in this collaboration with Netflix and the K-Pop Demon Hunters film. Additional series related to KDH are highly likely. 

• Appointment of a digital-savvy CEO and professionalized board strengthens management, positioning Vadilal for sustained growth and corporate transformation.  
• Robust distribution, innovative production, and premium parlours drive competitive edge and market leadership. 
• Resolution of internal family disputes and promoter group merger streamlines operations, though potential dilution could affect minority shareholders.

• Tesla’s recent unveiling of its Megapack 3 and the all-new Megablock could mark a pivotal moment in its shift from being seen purely as a carmaker to a vertically integrated energy company.
• While Tesla’s robotaxi launch and AI developments have dominated headlines, the energy division—specifically industrial battery storage—is quietly becoming a major pillar.
• The Megablock is a fully integrated, utility-scale energy solution, reducing construction costs by 40% and installation times by 23%.

• Forian (FORA) received a $2.10/share go-private proposal from a founder-led consortium controlling 63% of the company.
• Lifeway Foods (LWAY) trades 20% above Danone’s previous offer, with NDA agreement expiry on September 15.
• Currency Exchange International (CURN) Q3 results show 4% EBITDA growth, with management considering distributing $12.8m cash to shareholders.

• Gildan Activewear, in its latest earnings report, presented notable financial performance during the second quarter of 2025.
• The company achieved record quarterly sales of $919 million, marking a 6.5% increase from the previous year, primarily driven by a 12% growth in Activewear sales.
• This segment’s robust performance came from increased sales volumes and favorable pricing dynamics, along with strong demand from existing and new brand offerings, including the launch of the AllPro brand and Champion.

• Unilever has reported its financial results for the first half of 2025, showcasing several strategic advancements and challenges across various business sectors and geographic regions.
• These results are marked by an underlying sales growth of 3.4% for the half-year, a commendable balance between volume and price increases.
• The company has successfully achieved volume improvements, indicating a strategic focus on maintaining competitive edge and operational efficiency despite prevailing subdued market conditions.

• The Oregon-based coffee chain priced its IPO at $20.00 per share, above the marketed range of $16–$18, raising $294 million through the sale of 14.7 million shares.
• The stock opened at $26.50, a 32.5% premium to issue and closed at $27.53, up 37.6% from the IPO price.
• Black Rock commands a market cap near $1.1 billion, implying much of its near-term growth story may already be baked in.

• Procter & Gamble’s latest financial results present a mixed picture in a complex operating environment, underscoring both promising strategies and challenging headwinds impacting their performance.
• The company’s organic sales saw a modest increase of 2% for the fiscal year, driven equally by volume growth and price/mix enhancements.
• Nine out of ten product categories registered growth, with the exception of Baby Care, which experienced a slight decline.

• British American Tobacco (BAT) presented their 2025 interim results, showing a blend of achievements and challenges that influence the company’s future trajectory.
• BAT’s revenue rose by 1.8%, and profits from operations increased by 1.9% on a constant currency basis.
• Adjusted earnings per share grew by 1.7%, despite being offset by reductions in ITC profits and higher finance costs.

• On 10 September, the founding Nishimura family, the PE Firm CVC, and Mandom Corp (4917 JP) agreed that the first two could take over the latter at 4.9x Mar28 EBITDA.
• A cocktail napkin calculation of expected leverage suggests the equity check is buying this at 5x average Mar27-28 free cash flow. That’s cheap for a growing company.
• The register is open enough to cause problems but not open enough to allow a clean hostile bid by a strategic. But still open enough for someone to have fun.

• The HSCEI serves as a benchmark to reflect the overall performance of the top 50 “Mainland China” securities listed in Hong Kong.
• In this insight, we take a look at the rankings of potential ADDs and potential DELs for the December 2025 index rebal event.
• At present, we see three changes based on the latest data but the rankings can change until 30th September 2025.

• Chery Automobile is looking to raise about US$1.5bn 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.

• On 11 Sep 2025 after the close, Hakuhodo Dy Holdings (2433 JP) announced a takeunder of Digital Holdings Inc (2389 JP) in MBO form. 
• Two major holders with 37% roll their stakes into new ownership in Hakuhodo Dy Holdings (2433 JP) and another 17+% probably just fall in line.
• Foreigners hold a lot. They may not like the takeunder. It is not clear who would buy this if Hakuhodo does not, or whether it is worth the hassle.

• India’s home services market, valued at INR 5,210 billion, is projected to reach INR 8,580 billion by FY2030 at a CAGR of 10–11% .
• Urban Company’s core Indian business has turned profitable, with its EBITDA for this segment improving from a 9.72% loss in FY23 to a 3.30% profit in FY25.
• The company’s annual consumers grew from 4.76 million in FY2023 to 6.5 million in FY2025, while average spend rose from INR 3,786 to INR 4,079 during the same period.

• As lack of investment, including in human capital, is recognized as a factor behind the lack of growth, there’re plans to enhance disclosure of human capital in annual securities reports.
• While labor share of large companies has fallen 1.3 ppt over the past year, OP margins increased only 0.3 ppt. It’s necessary to produce products with high gross profit margins.
• Unable to make bold investments to create higher added-value products, companies instead use cash-flows for shareholders return without increasing cash reserves, resulting in high level of cash on hand.

• Sailun revives Bridgestone’s idle TBR plant, breaks ground in Egypt  
•  Chinese pneumatic tire exports climb 4.6% in value in H1 2025  
• Jiangsu General ramps up projects in Thailand and Cambodia  

OPAP delivered good growth in revenue and EBITDA in H125 as its online activities continued to power ahead, with solid support from its retail activities. The results provide management with confidence in delivering FY25 guidance, against more challenging comparatives from H224 following OPAP’s exceptionally strong performance last year. Post the period end, OPAP bought the remaining minority stake in Stoiximan and the tender offer for the next 10-year licence to manage and operate the Greek State Lotteries (Instant & Passives vertical) has commenced, with OPAP through to the next stage of the process. The valuation looks well-supported by our unchanged DCF-based value of €22 per share and attractive dividend yield.

• HLF has a network of more than 2 million distributors and is unique among direct sellers by having a hybrid model that includes more than 60,000 brick-and-mortar locations worldwide in the form of its distributors’ nutrition clubs.
• This unique infrastructure provides a strong foundation to build a premier, technology-driven health and wellness platform.

• Today’s technology-driven platforms interact with customers on one end and service providers on the other, bringing the two together to create a marketplace.

• Milbon Co., Ltd (4919 JP) reported FY25 (Dec year-end) 1H earnings with a gross profit [GP] of ¥15,502mil (-1.6% YoY) and operating profit [OP] of ¥1,938mil (-39.0% YoY) on sales of ¥24,807mil (+1.1% YoY).
• RP declined -44.3% YoY to ¥1,853mil, due mainly to net FOREX losses (-¥120mil).
• The 1H results fell short of the firm’s sales and OP guidance by -4.2% and -31.0%, respectively due to (1) a decline in GP due to weaker-than-expected sales (-¥707mil) and (2) the deterioration of the GPM on the back of inventory valuation losses (approx. -¥454mil).

• NIO (9866 HK) / NIO (NIO US) is looking to raise up to US$1.15bn, including the overallotment option, in an equity offering across Hong Kong and the U.S.
• The HK offering is priced at HK$43.36/share and the ADR pricing is US$5.57/share. NIO (NIO US) closed at US$5.72/share overnight, so expect NIO (9866 HK) to open around HK$44.55/share.
• There will be buying from global index trackers at the time of settlement of the offering shares. The buying from Hang Seng TECH Index (HSTECH INDEX) trackers is more nuanced.

• Toei Animation (4816 JP) ’s shareholder, Fuji Media, is looking to raise around US$210m from a secondary placement.
• The deal is a large one to digest, representing 41.7 days of the stock’s three month ADV and 4.9% of the shares outstanding.
• In this note, we will talk about the placement and run the deal through our ECM framework.

• In Feb 2024, I wrote Toei Animation (4816 JP) – This Offering Could Be Heavy; the NEXT Offering Is More Interesting. 
• Today, the company announced another offering where Fuji Media Holdings (4676 JP) is selling 10.575mm shares in an overseas offering priced likely tomorrow. 
• It is not as interesting as I had expected. But it means the NEXT offering could be more interesting. But there is index buying long-term anyway. 

• NIO (NIO US), a Chinese premium electric vehicle manufacturer, has launched an equity offering to raise around US$1 billion. 
• The raise is opportunistically timed to take advantage of the 83% QTD share price rally and comes hot on the heels of a US$513 million raise in April.
• While NIO continues to target a break-even in 4Q25 and reduce its cash burn, the valuation is stretched. A history of false dawns and intensifying competition warrants caution.  

• After a protracted succession stoush, Rupert Murdoch’s son Lachlan is set to take control of News Corp (NWS US) and Fox (FOXA US).
• Preceding my comments on News Corp and 62%-held REA Group Ltd (REA AU) 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%.

• Mandom Corp (4917 JP) has recommended a CVC-sponsored preconditional MBO at JPY1,960, a 32.1% premium to the last close price.
• The offer is below the midpoint of the IFA DCF valuation range and the special committee’s requested price. It is unattractive compared to precedent transactions and peer multiples. 
• The offer is unequivocally light. The setup has the potential for a bump, particularly if an activist emerges as a substantial shareholder.  

• On the 29th August, Mixi (2121 JP) cleared 50% of the voting power in PointsBet (PBH AU). It’s Offer was automatically extended, and will now close on the 12th September.
• Mixi has 51.59%. betr Entertainment (BBT AU) said it holds 20.45%, plus 6.5% in the IAF, the instructions for which can be withdrawn. betr said it won’t accept Mixi’s Offer.
• Mixi adds betr will have no PBH board representation “either now or in the future”; and betr will continue to be a clear competitor. Additionally, PBH questions betr’s buyback funding,

• NIO (NIO US) is looking to raise around US$1bn via a primary placement in Hong Kong and US.
• The company had last raised around US$450m in March 2025. The deal didn’t end up doing well.
• In this note, we will talk about the placement and run the deal through our ECM framework.

• All regulatory approvals secured; Deliveroo’s 180p/share takeover by DoorDash now awaits only procedural court steps. Sanction hearing is scheduled for 30 September; scheme effective date is 2 October.
• With a 1p spread and 179p entry, the deal offers ~8.9% annualised return by early October. Early entrants at 170.8p continue to realise strong IRRs above 12%.
• Risk is minimal with near-unanimous shareholder backing and no regulatory obstacles remaining. Administrative timing is the only variable; monitoring court scheduling and filing is key to arbitrage efficiency.

• Chery Auto is getting ready to complete its IPO in the next few weeks. It is expected that Chery Auto could raise about US$1.5 -2.0 billion in this IPO. 
• ROE is super high at 70%+. Chery Auto has one of the highest ROEs among all the major auto companies globally.
• Chery Auto has one of the best records among all the major auto companies globally in the past three years in terms of sales and net profit growth.

• Orion Breweries’ (409A JP) operations span across alcoholic beverages, tourism and hotel businesses. It aims to raise around US$162m in its Japan IPO which could increase to US$196m (including over-allotment).
• Orion Breweries (OBL) has a strong Okinawa market position. Share of overseas sales has been growing (~23% of FY25 revenues), while profitability has also largely been steady.
• In our previous note, we looked at the firm’s past performance and peer comparison. In this note, we talk about the pricing updates and IPO valuations.

• Context: The Isuzu (7202 JP) vs. Suzuki (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 Isuzu (7202 JP) and short Suzuki (7269 JP) targets a 10% 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.

• One of the biggest events in Korea in the past week has been the uncertainty regarding the US tariffs on South Korea which remains unchanged at 25%.
• On top of this, it was reported on 9 September that the US tariffs on Japanese goods including cars and auto parts will be lowered to 15% by 16 September.
• If Lee’s approval rating falls to about 45% to 50% range, then there could be a greater urgency by the Korean government to finalize a trade deal with the US. 

• Chery Automobile is looking to raise about US$1.5bn 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 undertake a peer comparison.

• Deckers Brands, the parent company of popular footwear brands HOKA and UGG, has delivered a noteworthy start to its fiscal year 2026, surpassing market expectations.
• In the first quarter, the company reported a 17% increase in revenue, reaching $965 million, and a 24% rise in diluted earnings per share to $0.93.
• Such performance was largely driven by the robust sales from its flagship brands, especially in international markets despite a challenging domestic environment in the United States.

• Zepp Health Corporation’s financial performance in the second quarter of 2025 showcased a noteworthy yearover-year revenue increase by 46%, reaching $59.4 million, driven predominantly by sales contributions from the Amazfit brand.
• This marked the company’s first year-over-year revenue growth since Q2 2021, signifying potential effectiveness in their strategic business transformation.
• A crucial point of success was the performance of their adventure-focused T-Rex smartwatch series and the introduction of new products like the Balance 2 and Helio Strap, which appear to have expanded their market presence and contributed to financial growth.

• Taste Gourmet (8371 HK) will report its H1FY26 earnings in late November. We estimate a 15% revenue growth and 20-25% profit growth as the retail environment in HK improved slightly. 
• The company increased its restaurant count in HK to around 65 restaurants (vs 56 last year), whereas the count in China remained static at six restaurants. 
• The stock trades at a 5.8x PE, with a 9% dividend yield and 30% of the market capitalization in cash. 

• Darling Ingredients Inc. reported its second-quarter 2025 financial results, offering a mixed picture of performance and outlook.
• On the positive side, the company demonstrated resilience across its core businesses amid a challenging renewable fuel environment, maintaining strong earnings and capital discipline.
• Darling locked in borrowing costs for the next five years, enhancing financial flexibility through a successful refinancing process.

• Following the August 2025 reporting season, we look at key changes to consensus estimates, share price movements and outlook commentary relevant to Ricegrowers Limited, trading as SunRice (ASX:SGLLV).
• Across our selected peer group there were two notable downgrades (SHV and TWE) and two notable upgrades (CBO and GNC).
• The RaaS selected peer average has outperformed the ASX200 over the past three months, increasing 11% against +3.3%.

• In this edition: • ABN Amro | NLFI to further reduce stake to approx. 20% • Ahold Delhaize | Delhaize to open 7 new supermarkets by early 2026 • ASML Holding | invests EUR 1.3bn in Mistral AI • X-FAB | presents its long-term financial ambition at its CMD • Household consumption | up 1.3% YoY in July

• Today, the results of the Nikkei 225 Sep2025 Periodic Review were announced, discussed in [Quiddity Index] Nikkei 225 Sep25 Review: Shift (3697) In, Citizen Watch (7762) Out. Kokusai Misses. 
• That 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, though the second-runner-up ADD needs a stock split to have any chance. As always, more below the fold!

• Back on the 22nd August, SOE-backed Dongfeng Motor (489 HK) announced a privatisation; together with a concurrent listing of its EV arm, VOYAH.
• The share price closed up 54% on the first day, ~15% adrift of the independently valued cash + scrip (into VOYAH) under the privatisation.  
• Shares have pared back 5% since. VOYAH’s peer basket has fallen ~15% on average. The market is implying a price-to-trailing-sales of 1x for VOYAH versus the basket average of 1.9x. 

• In this insight, we discuss Pop Mart (9992 HK)’s valuation using Peter Lynch’s PEGY ratio.
• If Pop Mart misses current consensus estimates in 2026 and 2027 by 5%, this would result in PEGY ratio of 1.4x in 2026 which would make current valuations unattractive.
• WE EXPECT A HIGHER PROBABILITY OF POP MART’S VALUATION DECLINING BY 50% TO ABOUT US$25 BILLION, RATHER THAN INCREASING BY $75 BILLION FROM CURRENT LEVELS OVER THE NEXT 1-2 YEARS.

• Mahindra & Mahindra (MM IN) pre-announces GST benefits, signaling consumer-first patriotism but raising questions on intent.
• Dealer checks reveal heavy discounting despite festive demand hopes coupled with weak dispatches.
• Possible margin risks emerge as MM tries to flush out inventory ahead of GST 2.0 and festive season.

• Laopu Gold (6181 HK)  is down nearly 20% since June’s lock-up expiry, despite strong 1H2025 results and subsequent analyst earnings upgrades.
• The stock trades at 22x FY26E, the low end of its YTD P/E range, with a PEG below 0.8x.
• China’s retail gold demand in 2Q2025 has shifted toward investment products – a trend that could support Laopu’s mostly investment-driven sales.

• Performance Running momentum intact: ~10% global market share, outgrowing Nike, with scope for further share gains.
• Adjacent categories underpenetrated globally; restructuring complete, positioning for accelerated US/Asia expansion.
• Lifestyle brands (SportStyle, Onitsuka Tiger) compounding fast (+40%+ YoY), higher margins, could be the real long-term profit driver.

• Daniel Wu of BristolMoon Capital discusses Mercado Libre, a company that has evolved from being the “eBay of Latam” to a major e-commerce and fintech player in Latin America.
• Mercado Libre is described as an amalgamation of Amazon Retail and Alipay, with a dominant market share in e-commerce in countries like Brazil, Mexico, and Argentina.
• Founded in 1999 in Buenos Aires by Marcos Galperin and co-founders, Mercado Libre differentiated itself by focusing on sustainable growth strategies instead of chasing rapid user acquisition, allowing it to thrive through economic downturns and emerge as a major player in the region.

This content is sourced through publicly available sources and has been machine generated. Information displayed is for general informational purposes only.

• Amber Group’s electronics arm, ILJIN Electronics, has raised Rs 1,200 crore in its first-ever institutional fundraise, led by private equity firm ChrysCapital and supported by InCred Growth Partners.
• This capital infusion accelerates ILJIN’s organic expansion & supports its strategic inorganic growth ambitions, positioning the company as key beneficiary of India’s push for self-reliance under PLI and ECMS schemes.
• The fundraise is a powerful validation of Amber’s strategic pivot towards high-growth EMS sector, paving the way for sustained, multi-year growth and a potential re-rating of the consolidated entity.

Key points (machine generated)

• S&B Foods, established in 1923, is a leading Japanese manufacturer of spices and condiments with around 3,000 in-house SKUs.
• The company pioneered the creation of curry powder in Japan, launching the ‘Japanese curry’ category.
• S&B’s iconic ‘Golden Curry’ line is well-known in Japan and is expanding its presence in international markets as it nears its 100th anniversary.

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.

• Chery Automobile is looking to raise about US$1.5bn 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.
• In this note, we talk about the updates from its most recent filings.