Daily Brief Consumer: Dongfeng Motor, Walmart, Pharma Foods International, Wonderla Holidays, Beyond Meat, Toyota Motor, Binggrae Co Ltd, Ricegrowers Ltd, Aurrigo International and more

• I summarise the latest spreads and newsflow of merger arb situations we cover across Hong Kong, Australia, New Zealand, Singapore, Japan, Indonesia, Malaysia, Philippines, Thailand and Chinese ADRs.
• Highest spreads: Smart Share Global (EM US), Dongfeng Motor (489 HK), ENN Energy (2688 HK), Jinke Smart Services (9666 HK), Humm Group (HUM AU), Qube Holdings (QUB AU). 
• Lowest spreads: Bright Smart Securities (1428 HK), Mandom Corp (4917 JP), Toyota Industries (6201 JP), Pacific Industrial (7250 JP), Ainsworth Game Technology (AGI AU), Hainan Meilan International Airport (357 HK). 

• Walmart (WMT US) is now eligible for Nasdaq100 following its listing change from NYSE to Nasdaq on 9 December 2025, marking the largest exchange transfer in history.
• The listing transfer was completed after the December 2025 annual review cut-off, so Nasdaq100 inclusion is anticipated by December 2026.
• Forecasted passive fund demand upon inclusion is ~600m shares, $70bn and 25 ADV.

• After dropping to a 52-week low on operating and net 1Q losses, the share price has recovered to 20x EPS guidance for FY July 2026. 
• The gross margin remains near 80%, but a large increase in advertising expenses put the company into the red. It also boosted sales as planned. 
• Management plans to cut back on advertising, aiming for break-even in 2Q and profits in 2H. The dividend yield is now 3.6%. The long-term investment story remains intact. 

• Established Market Leader with Clear Expansion Roadmap: Wonderla is the largest amusement park operator in India, possessing a strong brand recall and a proven track-record of profitable operations. The company is embarking on a significant expansion phase with new parks recently opened in Bhubaneswar and a flagship park in Chennai set to open, which are expected to be key growth drivers.
• Favorable Industry Tailwinds: The Indian amusement park industry is nascent and underpenetrated, poised for significant growth driven by rising disposable incomes, a large youth population, and increasing consumer preference for experiences over products. This provides a long runway for growth for established players like Wonderla.
• Robust Financials and Prudent Capital Management: The company maintains a strong, debt-free balance sheet with healthy cash flow generation from existing parks. Its unique in-house ride manufacturing capability provides a significant cost advantage for both new projects and maintenance, supporting high operating margins.

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• Beyond Meat is a pioneer in the plant-based meat industry facing severe financial headwinds, including persistent net losses, negative cash flow, and a high debt burden. The company’s stock has experienced a dramatic decline from its post-IPO highs amid waning consumer demand and intense competition.
• Management is executing a turnaround strategy focused on significant cost reductions, operational streamlining, and product innovation aimed at improving health credentials (e.g., the Beyond IV platform with avocado oil). The goal is to achieve positive cash flow and improved gross margins.
• The competitive landscape is fierce, with direct competitor Impossible Foods, traditional meat producers like Tyson and Nestlé entering the space, and numerous other plant-based brands. Beyond Meat‘s premium pricing is a significant disadvantage in an inflationary environment where consumers are price-sensitive.

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• A tactical WEEKLY snapshot of the Asian indices and stocks we cover.
• Many Asian stocks we track are flashing very oversold signals—creating tactical long setups worth considering.
• Toyota Motor (7203 JP) is the only Asian stock overbought.

• Dominant Market Position Solidified by Acquisition: Following the acquisition of Haitai Ice Cream in 2020, Binggrae has secured a leading position in the South Korean ice cream market with a combined market share of approximately 41%. This strategic move is expected to drive revenue growth and enhance market pricing power.
• Strong Financial Performance and Growth Trajectory: The company has demonstrated a remarkable turnaround and robust growth, with a 3-year net income CAGR of 94.35%. This is supported by expanding margins, a strong balance sheet with a net cash position, and consistent revenue growth, indicating efficient operations and a positive outlook.
• Aggressive and Successful International Expansion: Binggrae is successfully leveraging the global popularity of Korean culture (‘Hallyu wave’) to drive international sales, particularly for its flagship products like Melona and Banana Flavored Milk. The company is strategically expanding its footprint in key markets such as the US, China, Vietnam, and Europe, with overseas sales growing significantly.

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• Ricegrowers Limited, trading as SunRice (ASX:SGLLV) has reported its H1 FY26 result, delivering RaaS adjusted NPAT of $34.8m, 11.5% above the previous corresponding period (pcp) and a touch above RaaS estimates, albeit aided by a lower tax rate (23% vs. 28% forecast and the pcp).
• Net debt closed the half at $169m, the lowest since October 2021 despite ~$125m in subsequent acquisitions.
• Operating cash flow was 115% of adjusted EBITDA and the interim dividend was in-line at 20cps.

• Ricegrowers Group CFO Dimitri Courtelis discusses the company’s recent interim results with RaaS Research Group.

• The launch of the ‘Hub strategy’ programme will accelerate global commercialisation and licensing income from this manufacturer of autonomous airport vehicles.
• The ‘Hub strategy’ is designed to align local partnerships, funding, operations and manufacturing with Aurrigo’s proprietary technology platform.
• The Hub partners and JVs will be at a local/subsidiary level to established regional ground operations and manufacturing capacity, to reduce risk, capital requirements and time to market.