In today’s briefing:
- Ashimori Industry (3526 JP): Murakami Outlines His Case
- Pacific Industrial (7250 JP): Effissimo Rears Its Head
- A Trader’s Guide To “G” Day | Positioning For “Next-Generation GST Reforms”
- Midea Group(300 HK)-Firing on All Cylinders; Disciplined Execution Across Legacy &Emerging Verticals
- Lucror Analytics – Morning Views Asia
- What Is More Important in Promoting “Effective Investor Relations”?
- VNCE: 2Q Preview: Progressing Against the Tariff Tides; Reiterate Buy, $4 PT
Ashimori Industry (3526 JP): Murakami Outlines His Case
- Takateru Murakami, Yoshiaki Murakami’s son, has increased his Ashimori Industry (3526 JP) to an 18.36% ownership ratio at an average buy-in price of JPY4,154.28 vs. the JPY4,140 tender offer.
- Crucially, in today’s disclosure, Takateru Murakami outlines the rationale for his stake building, which centres on the book value being materially understated if certain land were revalued at market rates.
- Maintaining current terms is increasingly not a viable option. Toyoda Gosei (7282 JP) is likely to pursue a strategy of either increasing its offer or lowering the minimum acceptance condition.
Pacific Industrial (7250 JP): Effissimo Rears Its Head
- Effissimo reported a 5.87% ownership ratio in Pacific Industrial (7250 JP). The average buy-in price of JPY2,235.91 per share is 9.1% above the JPY2,050 MBO offer.
- Effissimo buying significantly above terms is justifiable as the offer implied a P/B of 0.71x. Effissimo is agitating for either a bump or an opportunity to participate in the back-end.
- With the offer closing on 8 September and shares trading 16.9% above terms, the Ogawas have little choice but to revise terms.
A Trader’s Guide To “G” Day | Positioning For “Next-Generation GST Reforms”
- The 56th GST Council Meeting is currently underway in New Delhi, having commenced on September 3, 2025 at 11:00 AM and will continue until September 4, 2025.
- These are supposed to be “next-generation GST reforms” with a promise of implementing reforms as a “Diwali gift” for consumers.
- Negative FII Participation, Negative Price Action, Rich Multiples coupled with Negative Earnings Revisions argue for a bearish positioning going into the “G” Day – Day of GST Reform Announcements.
Midea Group(300 HK)-Firing on All Cylinders; Disciplined Execution Across Legacy &Emerging Verticals
- Firing on All Cylinders :Midea Group (300 HK) delivered robust 15.7% YoY revenue growth and 25% profit increase in H1 2025, driven by strong domestic demand and overseas expansion.
- Disciplined Execution : Smart Home remained the largest contributor, while Energy Solutions and Intelligent Building Technology delivered fastest growth; overseas revenue rose 17.7% YoY, now 42.5% of group sales.
- Available at compelling valuation of 13.7x P/E (FY25e), Midea emphasizes R&D leadership, digital transformation, and green solutions to sustain long-term growth.
Lucror Analytics – Morning Views Asia
- In today’s Morning Views publication we comment on developments of the following high yield issuers: Melco Resorts, Tata Motors, Fosun International
- UST yields rose yesterday alongside a sell-off in long-dated European bonds, as well as on account of concerns that court rulings against US President Donald Trump’s tariffs would worsen the country’s fiscal deficit.
- The yield on the 2Y UST rose 2 bps to 3.64%, while the yield on the 10Y UST was up 3 bps at 4.26%. Equities slipped, with the S&P 500 and Nasdaq down 0.7% and 0.8% at 6,416 and 21,280, respectively.
What Is More Important in Promoting “Effective Investor Relations”?
- Most companies appointed IR officers and hold some sort of briefing for analysts and investors, but briefings for overseas investors and explanations by the CEO himself are still insufficient.
- It is valuable to have a direct Q&A session with the CEO about the feasibility of the business plan’s commitments and planned values, and the formulation process.
- There are still many companies that are reluctant to hold meetings between independent outside directors and investors, and such companies are missing out on an opportunity to create value.
VNCE: 2Q Preview: Progressing Against the Tariff Tides; Reiterate Buy, $4 PT
- We are reiterating our Buy rating, projections and $4 price target for Vince Holding with the company announcing 2QFY25 (July) results after the close on Wednesday.
- We believe the company has continued to offer compelling styles in both the wholesale and retail channels, even in the face of higher tariffs, which have somewhat altered the product flows for the Spring/Pre-Fall collections.
- Further, we expect the impact of higher tariffs, which did not coincide with material price increases in 2Q, to be the largest negative this quarter, with the bottom line impact increasingly offset going forward from price and sourcing shifts.
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