In today’s briefing:
- Weekly Deals Digest (21 Sep) – Chery Auto, Zijin Gold, Centurion, Soft99, Mandom, Jinke, Shengjing
- Korea Small Cap Gem #45: Genic
- Hamee: “Demerger Arbitrage” Setup Remains On Track
- General Mills’ Pet Food Push: Could BLUE & Tiki Cat Spark a Growth Explosion?
- Global-e & Shopify Forge Deeper Alliance to Dominate Global Markets!
- Bausch & Lomb: How Their Xiidra + Miebo Combo Could Redefine Dry Eye Treatment!
- Kellanova’s Bold Snacking Pivot: Can Pringles & Cheez-It Dominate the Global Market?
- Boyd Gaming: An Insight Into Its FanDuel Stake Monetization
- Weekly Update (3134, Versant, Aumovio)
Weekly Deals Digest (21 Sep) – Chery Auto, Zijin Gold, Centurion, Soft99, Mandom, Jinke, Shengjing
- A weekly summary of key developments across ECM and Event-Driven names tracked by us across Hong Kong, Australia, New Zealand, Singapore, Japan, Indonesia, Malaysia, Thailand, Korea, India and Chinese ADRs.
- ECM developments: Chery Automobile (9973 HK), Zijin Gold (2259 HK) and Centurion Accomodation REIT (CAREIT SP) IPOs.
- Event-Driven developments: Soft99 Corp (4464 JP), Mandom Corp (4917 JP), ANE Cayman Inc (9956 HK), Jinke Smart Services (9666 HK), Shengjing Bank Co Ltd H (2066 HK).
Korea Small Cap Gem #45: Genic
- Genic is a turnaround story. Genic is one of the largest ODM companies that make beauty face masks in Korea.
- Genic is one of the biggest suppliers of hydrogel based face masks of the Biodance brand which has been experiencing an excellent demand in global markets, including the United States.
- Despite surging growth in sales and profits, valuation multiples remain reasonable. It is trading at EV/EBITDA of 12.7x and P/E of 14.2x, based on recent prices and LTM financials.
Hamee: “Demerger Arbitrage” Setup Remains On Track
- Hamee reported earnings on September 12, and the stock traded down ~6%.
- The headline earnings looked awful but they included many one time and/or non cash expenses.
- To me, the underlying business looks strong. The spin-off is on track for early November, and I expect it to serve as a hard catalyst to drive shares higher.
General Mills’ Pet Food Push: Could BLUE & Tiki Cat Spark a Growth Explosion?
- General Mills’ first quarter fiscal 2026 results present a mixed bag of strategic maneuvers and financial performance.
- The company is navigating a dynamic environment marked by significant changes, including the divestiture of its Yoplait business and the acquisition of Whitebridge.
- CEO Jeff Harmening emphasizes the company’s commitment to returning to profitable organic growth, aiming to enhance shareholder value despite these transitions.
Global-e & Shopify Forge Deeper Alliance to Dominate Global Markets!
- Global-E Online Ltd. exhibited a strong set of financial results for the second quarter of 2025, highlighted by notable year-over-year growth and a milestone achievement in profitability.
- The company’s Gross Merchandise Volume (GMV) grew by 34% from the same period last year, reaching $1.45 billion, while total revenue increased by 28% to approximately $215 million.
- Adjusted EBITDA for the quarter was $38.5 million, marking a 23% increase, although the EBITDA margin slightly contracted to 17.9% due to a lower gross margin.
Bausch & Lomb: How Their Xiidra + Miebo Combo Could Redefine Dry Eye Treatment!
- Bausch + Lomb’s second quarter 2025 results reflect a mix of solid performance and ongoing strategic challenges.
- The company’s revenue grew by 3% year-over-year, reaching $1.278 billion, spurred by robust growth in their contact lenses and consumer segments, despite facing headwinds such as the enVista intraocular lens recall and challenges in their U.S. generics business.
- Positives in this performance include constant currency revenue growth of 3%, which would have been significantly higher at 6% if the enVista recall had been excluded.
Kellanova’s Bold Snacking Pivot: Can Pringles & Cheez-It Dominate the Global Market?
- Kellanova reported results that demonstrated continued execution on its strategy of driving growth through innovation, volume recovery, and margin expansion while navigating a complex operating environment.
- The company delivered organic net sales growth of 4 percent in the second quarter, in line with its long-term target range, supported by a combination of price mix and sequential improvement in volume across most regions outside of Nigeria.
- Baptista Research looks to evaluate the different factors that could influence the company’s price in the near future and attempts to carry out an independent valuation of the company using a Discounted Cash Flow (DCF) methodology.
Boyd Gaming: An Insight Into Its FanDuel Stake Monetization
- Boyd Gaming reported a quarter characterized by strong operational results, significant capital deployment, and a transformative monetization of its digital gaming stake.
- The company announced the sale of its 5% equity interest in FanDuel to Flutter Entertainment for $1.755 billion in cash, with after-tax proceeds of approximately $1.4 billion.
- Proceeds will be used to repay outstanding credit facility debt, lowering leverage from 2.8x to below 2x and resulting in estimated annual interest savings of $85 million.
Weekly Update (3134, Versant, Aumovio)
Before I get into my regular update, I want to share one fantastic chart that caught my eye.
It shows current earnings multiple of the S&P 500, 400 and 600, respectively.
One takeaway is that large caps (S&P 500) are at the high end of their historical trading range.
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