In today’s briefing:
- Shortlist Of High Conviction Ideas Across China, Japan, India – June 2025
- RPSG Ventures: BPO Business Doing Well | Holding Company Discount at 82%
- Event Driven: ABFRL~ Value Unlocking Through Strategic Demerger
- Buy International Gaming Technologies
- High-Conviction Arbitrage: 36% IRR Possible with 30 July Settlement, Court Approval Secured
- Korea Small Cap Gem #37: Easy Bio Inc
- Tencent Music (TME): Quick Note – Acquisition of Ximalaya
- Sanyo Shokai (8011 JP): Q1 FY02/26 flash update
- Midea Group(300 HK): Upcoming Spin-Off & IPO of ‘Annto’,Ongoing and Proposed Buyback, Strong Outlook
- JD.com (9618 HK) Top Option Trades: Bullish Butterfly Stands Out Amond Bearish Sentiment
Shortlist Of High Conviction Ideas Across China, Japan, India – June 2025
- We compile our selection of companies across Japan, China and India based on bottom-up triggers in each company.
- Our top in China are Chow Tai Fook Jewellery (1929 HK) , Midea Group (300 HK) and Dongfeng Motor (489 HK)
- Our top picks in Japan are Denso Corp (6902 JP),ROHM Co Ltd (6963 JP) and in India Auto it is Mahindra & Mahindra (MM IN) & Ashok Leyland (AL IN)
RPSG Ventures: BPO Business Doing Well | Holding Company Discount at 82%
- RPSG Ventures reported a strong Q4FY25 led by the BPO business that has been growing well. BPO revenues grew 3%+ QoQ and 30%+ YoY. EBIT margin has sustained at 11%+.
- The FMCG business after posting INR 550cr+ annualized revenue run-rate for the past few quarters saw a dip in Q4FY25 with annualized revenue at INR 520cr.
- The Sports segment reported similar revenue YoY at INR 135cr+, led by part revenue recognition from IPL 2025 that began at end of March, similar to that in 2024.
Event Driven: ABFRL~ Value Unlocking Through Strategic Demerger
- Aditya Birla Fashion and Retail Ltd (ABFRL IN) demerged its business into two focussed entities, ABLBL(Stable Business) and ABFRL(High growth Business).
- The separation aligns capital with business maturity isolating cash-generating lifestyle brands from high-growth, capital-hungry verticals like ethnic, luxury, and digital-first.
- The two entities are targeting a combined INR 30,000 Cr in revenue and 3x cash profit by FY30 through unlocking sharper execution, better capital efficiency, and distinct investor appeal.
Buy International Gaming Technologies
- International Gaming Technologies (IGT) is in the process of selling its Global Gaming and PlayDigital segments.
- The merger arbitrage market implies a high likelihood that this deal closes soon ($14.23 share price for EVRI vs. acquisition price of $14.25).
- Guidance is the deal could close as soon as July 1, 2025.
High-Conviction Arbitrage: 36% IRR Possible with 30 July Settlement, Court Approval Secured
- Deliveroo shareholders approved DoorDash’s 180p cash offer; only court sanction and procedural steps remain. Settlement could occur as early as 30 July 2025.
- At 175.9p, the 2.33% gross spread implies a ~36.3% annualised return assuming 30-day closing.
- Amazon counterbid now highly improbable under Rule 2.8; DoorDash bid remains dominant with 97% scenario weighting.
Korea Small Cap Gem #37: Easy Bio Inc
- Easy Bio Inc is one of the leaders specializing in piglet feed and animal feed additives in Korea.
- The company completed an excellent M&A of a company in the US called Devenish Nutrition in February 2024 for 88 billion won.
- If we assume a P/E of 10x and apply this on consensus net profit estimate of 36.3 billion won in 2026, this would suggest market cap of 363 billion won.
Tencent Music (TME): Quick Note – Acquisition of Ximalaya
- TME proposed to acquire 100% shares of Ximalaya, a long audio app.
- TME has been exploring the long audio market since 2020.
- We believe Ximalaya has advantages in monthly active users and car radio.
Sanyo Shokai (8011 JP): Q1 FY02/26 flash update
- Revenue decreased by 5.7% YoY to JPY14.5bn, with operating profit declining by 95.2% YoY to JPY36m.
- Net income attributable to owners fell 93.9% YoY to JPY36m, with recurring profit down 96.6% YoY to JPY25m.
- Despite reducing SG&A expenses by JPY400m, cost-control efforts failed to offset gross profit decline from lower revenue.
Midea Group(300 HK): Upcoming Spin-Off & IPO of ‘Annto’,Ongoing and Proposed Buyback, Strong Outlook
- Annto IPO: Midea Group (300 HK)plans to spin off its subsidiary Annto Logistics via a domestic IPO to unlock value in its fast-growing logistics platform.
- Share Buyback:Midea Group Co Ltd A (000333 CH) announced a RMB 5–10 billion A-share buyback in June 2025, signaling confidence and supporting shareholder returns through disciplined capital allocation.
- B2B Transition: Shifting from a B2C appliance maker to a tech-led B2B solution provider. With B2B contribution over 30% of revenue, it positions it for long-term, higher-margin, solution-led global growth
JD.com (9618 HK) Top Option Trades: Bullish Butterfly Stands Out Amond Bearish Sentiment
- Context: Over the past five trading days, JD.com (9618 HK) multi-leg option strategies showcased a variety of approaches. Strategy highlights are provided.
- Highlights: Diagonal Spreads continue to enjoy popularity. Plus, an out of the money butterfly at near zero premium demonstrates a creative application of this popular option combination.
- Why read: This breakdown of complex option strategies sheds light on market sentiment and positioning. Detailed examples provide actionable insights that could inspire similar strategies,
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