Daily Briefs

• Tsuruha Holdings (3391 JP) had been planning to release a Medium Term Management Plan this month BUT stock prices are higher, goodwill effects changed, so they announced a “Vision” instead. 
• Today post-close, Aeon Co Ltd (8267 JP) announced its Partial Tender Offer on TSURUHA (Japanese) at ¥2,900/share. Slightly lower than hoped. Much better than before. 
• AEON obviously really did not want to bump, but they did, considering synergies and the desire to consummate the deal. The Tender Offer shrinks so minimum pro-ration is lower. 

• Tsuruha Holdings (3391 JP) announced a partial tender offer from Aeon Co Ltd (8267 JP) at JPY2,900, a 27.2% premium over the previously stated offer price of JPY2,280.
• Aeon will acquire a maximum (upper limit) of 43.2 million shares (9.52% ownership ratio) such that it attains a 50.90% ownership ratio. There is no lower limit. 
• The offer is above the midpoint of the IFA DCF valuation range and marginally below the JPY3,100 price Aeon paid in 2024 to acquire Oasis’ stake. 

• Mitra Adiperkasa stands out as Indonesia’s leading retailers, with an impressive portfolio of brands across segments, a dominant presence in major malls across Indonesia, and a strong online presence. 
• MAPI booked a solid set of results in 3Q2025, with momentum continuing into October, as consumer sentiment has started to improve, with active outperforming. Digital, F&B, and fashion are improving  
• The company’s international business is seeing better performance, especially in Thailand and the Philippines, with expansion remaining on track, and management expressing a more optimistic view for 4Q2025 and beyond.

• Indofood is a vertically integrated food solutions giant in Indonesia, poised to benefit from the country’s favorable demographics and rising consumer spending.
• The Agribusiness segment, particularly palm oil, is a significant growth driver, supported by strong commodity prices and government biodiesel mandates.
• While the company exhibits strong top-line growth and market leadership, it faces risks from commodity price volatility, currency fluctuations, and margin pressures in its consumer branded products segment.

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• Dominant Market Leader with Strong Pricing Power: Afya is the largest medical education group in Brazil, a market characterized by high demand and significant barriers to entry. This position allows for consistent tuition fee increases and maintains high occupancy rates (100% in medical programs), ensuring predictable revenue growth from the maturation of its existing medical school seats.
• Integrated Ecosystem Driving Lifetime Value: The company is successfully transitioning from a pure education provider to an end-to-end, physician-centric ecosystem. This strategy combines its core medical school offerings with a growing suite of digital health tools and continuing education, aiming to capture value throughout a physician’s entire career.
• Disciplined M&A Strategy and Solid Financials: Afya has a proven track record of growth through strategic acquisitions, funded by strong operating cash flow. The company maintains a healthy balance sheet with low leverage, providing flexibility for future M&A, share buybacks, and the recent initiation of dividend payments.

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• Mao Geping Cosmetics (1318 HK) raised around US$345m in its Hong Kong IPO. The lockup on its founders and pre-IPO investors is set to expire soon.
• Mao Geping Cosmetics (MGC) operates in the premium beauty segment. Via its two brands, MAOGEPING and Love Keeps, the firm offers a wide range of Color cosmetics and Skincare products.
• In this note, we will talk about the lockup dynamics and possible placement.

• Orion Holdings is a leading South Korean confectionery company with a strong brand portfolio, including the iconic ‘Choco Pie’, and a significant, growing presence in key international markets such as China, Vietnam, and Russia.
• The company is strategically diversifying its business into new growth areas, including beverages, convenient meal replacements, and biotechnology, to build a more comprehensive food and healthcare enterprise.
• Despite robust growth in revenue and net income, the company’s market capitalization has underperformed, suggesting a potential valuation disconnect that may present an opportunity for investors.

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• We are reiterating our Buy rating, projections and $20 price target for Lands’ End with the company reporting 3QFY25 (October) results before the open on Tuesday.
• We believe, as the company begins to: 1) anniversary the shift to deeper levels of licensed goods/selling segments; 2) continues their focus on lifestyle driven looks and offering key solutions for their customer base (increasingly driven by customization), and 3) further expands the Outfitters uniform business, top line growth will become more obvious and, even more so, margin expansion will drive material free cash flow and EPS upside.
• As such, we remain highly positive on the overall potential for LE and reiterate our Buy rating and $20 price target

• Dometic is a global leader in the niche market for mobile living solutions, with a strong brand and extensive distribution network. However, the company is currently navigating a challenging macroeconomic environment characterized by weakened demand in the key Recreational Vehicle (RV) and Marine markets.
• Recent financial performance reflects industry headwinds, with declining revenues and a net loss in the most recent full year. Management is implementing a global restructuring program to improve efficiency and profitability, which is showing early signs of success with improved margins and strong cash flow generation.
• The company’s valuation appears inexpensive on some metrics like Price-to-Book and EV/Sales, but the lack of profitability (negative P/E) reflects the current operational challenges. A recovery in earnings is contingent on a stabilization of its end markets and the successful execution of its cost-saving initiatives.

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• Essity is a global hygiene and health products leader, well-positioned to capitalize on long-term growth trends such as aging populations and rising hygiene standards in emerging markets.
• The company is demonstrating a commitment to improving profitability, evidenced by recent margin recovery, ongoing cost-saving initiatives, and a strategic portfolio shift towards higher-margin segments following the divestment of its Vinda stake.
• Despite a stable demand profile, Essity faces significant headwinds from volatile input costs, intense competition from branded and private-label players, and recent volume pressures in key segments like Professional Hygiene.

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