Daily Briefs

• Elliott has filed a substantial shareholder notice reporting a Toyota Industries (6201 JP) ownership of 16.3 million or 5.01% of outstanding shares.
• The disclosure is likely a tactic to pressure Toyota Fudosan (offeror) and also a useful signalling tactic to other minorities that Elliott is committed to securing a bump.
• A potential bump could reach JPY19,000. While this would require an additional US$4 billion, financing should not be an issue as the book value (understated) is close to JPY18,000. 

• Meesho successfully went  public with a Fresh Issue of up to INR4,250 crore. Notably, nearly 44% of the fresh capital is earmarked specifically for deepening its technology and AI moat.
• Unlike traditional search-led e-commerce, Meesho is proving the viability of a “discovery-led” model powered by an immense data engine (5.9 billion daily data points), integrating a high-growth content commerce business. 
• Meesho presents a compelling play on consumption. IPO is not just for funding growth, but for funding AI infrastructure required to defend its “Everyday Low Price” moat against deep-pocketed competitors.

• DraftKings Inc. recently held its third-quarter 2025 earnings call, highlighting both achievements and challenges.
• The company reported $1.144 billion in revenue, growing 4% year-over-year, though this was below their expectations due to unfavorable sports outcomes impacting revenue by over $300 million.
• Despite these challenges, some positive developments were noted.

• On October 21st we published an insight predicting Toyota Motor’s imminent pullback. The stock started to pullback the following week, the correction lasted for a few weeks.
• After last week’s weakness, Toyota Motor (7203 JP) is rallying again. There’s conflicting sentiment on valuation—some see it as undervalued.
• This insight presents a short-term tactical analysis with a bullisht target at 3291 (75% probability of seeing a new pullback after that target is reached). 

• Dominant Market Leader Poised for Diversified Growth: Gabriel India is the flagship company of the ANAND Group and a market leader in ride control products in India, with an 89% market share in the commercial vehicle segment, 32% in two/three-wheelers, and 24% in passenger vehicles. A recent strategic restructuring is set to transform the company from a suspension-focused entity into a diversified mobility solutions provider, integrating businesses in EV drivetrains, automotive fluids, NVH solutions, and sunroofs.
• Strong Financial Performance and Growth Trajectory: The company has demonstrated a robust growth track record, with a 3-year revenue CAGR of 20.35% and a net income CAGR of 39.88%. This financial strength is underpinned by its leadership position, strong OEM relationships, and a vast aftermarket network of over 700 dealers and 12,000 retailers.
• Strategic Pivot to High-Growth Areas: Gabriel is proactively adapting to industry trends by expanding into higher-growth segments. It has a first-mover advantage in the electric two-wheeler (E2W) space, commanding over 70% market share. Furthermore, new joint ventures for sunroofs and EV fluids position the company to capitalize on vehicle premiumization and electrification trends.

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• The convenience store sector is not only saturated but also facing serious levels of new competition. Despite this, Seven Eleven posted much higher growth in November but problems remain.
• The big 3 are working hard to innovate their way out of trouble and move on to new, fertile pastures of growth but Seven Eleven is behind Lawson and Familymart.
• Innovation means high levels of differentiation across prices, tech, services and merchandising, making each chain much more distinctive and a fascinating example of where Japanese retail is headed.

• Somnigroup International reported a strong performance in the third quarter of 2025, driven by its recent acquisition of Mattress Firm and successful execution of key initiatives.
• The company achieved record results across important financial metrics despite flat conditions in the U.S. bedding market and persistent challenges internationally.
• Net sales rose by 63% to $2.1 billion, while adjusted EBITDA increased 52% to $419 million, and adjusted EPS grew by 16% to $0.95 per share.

• DigiPlus Interactive (PLUS PM) confirmed that the government is working with licensed operators to develop a legal framework to ensure responsible gaming/root out illegal gambling/player protection—final hearing this month(December). 
• The company purchased a convertible bond for 1.6 billion HKD (205 million USD), giving it the right to acquire 53.89% of International Entertainment (1009 HK), lowering its GGR share. 
• The stock trades at 7x/5.5x FY25/26PE, based on our numbers, which assume a sequential quarterly recovery (normalized by Q2FY26 levels) as guided by management. 

• Advance Auto Parts (AAP) continues to struggle even after two major restructuring programs.
• For 2025, this seller of after-market auto parts has pulled out a save from liquidity constraints by raising cash, extending debt maturities, shedding assets, and streamlining operations.
• But that brings AAP near to the bottom of its bag of tricks.

• Renaissance Inc. is a major player in the Japanese fitness industry, demonstrating a strong revenue recovery post-pandemic, although profitability and cash flow remain volatile.
• The company is diversifying its business model beyond traditional fitness clubs to include healthcare-related services, such as corporate wellness programs and senior-focused rehabilitation centers, tapping into Japan’s key demographic trends.
• While facing intense competition and economic sensitivity, the company’s strategic focus on health solutions for an aging population and its established brand presence of over 100 clubs position it for potential long-term growth in the expanding wellness market.

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