In today’s briefing:
- 52Toys Development Pre-IPO: Steady Expansion But in a Highly Fragmented Market
- Kalyan Jewellers: Deleveraging “Pause,” Capital Absorption Rising, Contrasting Capital Allocation
- Tencent Music (TME): 2Q25, Concert Revenue Booming, Margin Hitting Historical High
- Silver Consumer Electricals Limited Pre-IPO Tearsheet
- Prosus–JET Arbitrage: EC Clearance Granted, Minimal Spread Remains
- Shortlist of High Conviction Philippines Equity Ideas – August 2025
- Strong Momentum Underpins Nick Scali’s FY26
- Lucror Analytics – Morning Views Asia
- Ambev SA: Revenue Management & Pricing Strategy for Brand Equity Realization In An Increasingly Competitive Beverage Market!
- Riken Vitamin (4526 JP): Q1 FY03/26 flash update
52Toys Development Pre-IPO: Steady Expansion But in a Highly Fragmented Market
- 52TOYS Development (TOY HK) is looking to raise up to US$200m in its upcoming HK IPO.
- 52Toys Development is one of the leading IP toy companies in China, with a portfolio of over 100 proprietary and licensed intellectual properties (IPs) as of Dec 2024.
- In this note, we look at the company’s past performance.
Kalyan Jewellers: Deleveraging “Pause,” Capital Absorption Rising, Contrasting Capital Allocation
- Management has paused its previously articulated plan to reduce debt by INR 300–400 crore.
- The pause defers balance‑sheet de‑risking and redirects internal cash toward a lean‑credit procurement pilot and a new regional‑brand roll‑out (inventory‑heavy upfront), raising working‑capital intensity just as gross‑margin mix is shifting.
- Near‑term FCF could compress despite strong topline; margin delivery needs to outpace capital absorption to sustain the rerating. Market reaction (‑9% on the day) shows low tolerance for capital‑allocation ambiguity.
Tencent Music (TME): 2Q25, Concert Revenue Booming, Margin Hitting Historical High
- In 2Q25, non-subscriber music revenue surged by 47% YoY and total revenue grew by 18% YoY.
- The operating margin hit the historical high since TME’s IPO.
- We believe the stock has an upside of 9% and a price target of US$27.60 for the year end 2025.
Silver Consumer Electricals Limited Pre-IPO Tearsheet
- Silver Consumer Electricals (2301263D IN) is looking to raise US$160m in its upcoming India IPO. The deal will be run by Motilal Oswal Investment Advisors, ICICI, JM Financial, Choice Capital Advisors.
- Silver Consumer Electricals Limited (SCEL) is one of India’s leading manufacturers of electrical consumer durables and agricultural equipment, operating through own-branded sales (“Silver” and “Bediya”) and OEM supply
- The company operates India’s largest single-location, vertically integrated ECD and agri-equipment plant in Rajkot, Gujarat.
Prosus–JET Arbitrage: EC Clearance Granted, Minimal Spread Remains
- The EC’s conditional clearance removes the final regulatory risk for Prosus’s €20.30/share JET acquisition, leaving only procedural steps. Current 0.69% spread reflects a near-99% implied probability of deal completion.
- Structural remedies (Delivery Hero stake cut, governance exit, voting restrictions) ensure JET and Delivery Hero remain independent competitors. An independent trustee will oversee compliance under the European Commission’s binding commitments.
- Early entrants capture ~9.6% annualized return; late entrants ~4.0%. Post-clearance, the market shows minimal mispricing, making the trade appealing only for short-term, low-volatility capital deployment strategies.
Shortlist of High Conviction Philippines Equity Ideas – August 2025
- We are gradually building a high-conviction coverage of ideas for mid and small-cap companies in the Philippines.
- We established metrics focusing on high ROCE, sustainable growth of 10-15% YoY, robust balance sheets, and prudent capital allocation, essential elements for identifying potential multi-bagger opportunities.
- Read our initiation Asian Terminals Inc (ATI PM): Steady And Cheap Container Port Terminal Operator, and our updates on The Keepers Holdings (KEEPR PM) / Shakey’s Pizza (PIZZA PM)
Strong Momentum Underpins Nick Scali’s FY26
- A strong second-half performance in A&NZ and improving gross margins in the UK have propelled Nick Scali shares to new heights.
- -Nick Scali’s FY25 results exceed expectations -A strong 2H for A&NZ, UK gross margin gains -Successful measures to improve cost base -Ord Minnett expects UK profits in FY28
Lucror Analytics – Morning Views Asia
- UST yield movements were muted yesterday, amid an absence of macro news and ahead of the CPI data release today.
- The yields on the 2Y and 10Y UST were unchanged at 3.77% and 4.29%, respectively.
- Equities retreated, with the S&P 500 and Nasdaq both declining 0.3% to 6,373 and 21,385, respectively.
Ambev SA: Revenue Management & Pricing Strategy for Brand Equity Realization In An Increasingly Competitive Beverage Market!
- The recent performance of Ambev, detailed in their quarterly report, presents a mixed outlook for the company’s future.
- Key financial metrics demonstrate resilience in the face of various challenges, but also reveal areas of concern that investors should closely monitor.
- Positively, Ambev managed to deliver a high single-digit organic EBITDA increase, achieving a 110 basis point margin expansion despite difficult market conditions primarily attributed to adverse weather.
Riken Vitamin (4526 JP): Q1 FY03/26 flash update
- Q1 FY03/26 revenue was JPY23.3bn, a 1.6% YoY decline, with Domestic Chemicals increasing and Overseas business declining.
- Operating profit decreased by 6.2% YoY to JPY2.4bn, impacted by FX losses and increased advertising and logistics costs.
- Consumer foods revenue increased YoY, while commercial foods decreased; processed food ingredients and chemical products saw YoY growth.
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