In today’s briefing:
- M&A Battle for TaylorMade
- StubWorld: Wilmar Trading “Cheap” To YKA. Understandably.
- Pop Mart (9992 HK): Revenue Up by 204%, Margin Up by 17 PPT, 64% Upside
- NIFTY100 Low Volatility 30 Index Rebalance Preview: 2 Changes as Review Cutoff Nears
- Smart Share Global: An Interesting Merger Arb Play
- Marriott International: A New Game-Changing Media Network to Tap Billions in Ad Revenue & Other Key Developments!
- Gem Aromatics IPO Analysis: A Niche Aroma Player
- Pan Pacific International Holdings (7532 JP): FY FY06/25 flash update
- Mid & Small Cap Surge: Liquidity, Inflows and Big Movers Since May
- What’s News in Amsterdam – 19 August (Ahold Delhaize)
M&A Battle for TaylorMade
- TaylorMade is up for sale. TaylorMade is one of the most valuable, golf equipment brands globally.
- We labeled this article as Bearish due to concerns about F&F getting into this M&A battle for TaylorMade in the first place which could result in overpaying for this deal.
- We would rather have F&F take the win and provide higher returns to its shareholders.
StubWorld: Wilmar Trading “Cheap” To YKA. Understandably.
- Wilmar International (WIL SP) is coming up “cheap” to 90%-held Yihai Kerry Arawana Holdings C (300999 CH); yet implied stub numbers suggests otherwise.
- Preceding my comments on Wilmar are the current setup/unwind tables for Asia-Pacific Holdcos.
- These relationships trade with a minimum liquidity of US$1mn, and a % market capitalisation >20%.
Pop Mart (9992 HK): Revenue Up by 204%, Margin Up by 17 PPT, 64% Upside
- In 1H25, Pop Mart’s revenue surged by 204% YoY with all major business lines growing significantly.
- We believe the operating margin will improve strongly in 2025 and rise slightly in 2026.
- The P/E band suggests an upside of 64% for the end of 1H265. Buy.
NIFTY100 Low Volatility 30 Index Rebalance Preview: 2 Changes as Review Cutoff Nears
- The review period for the Nifty 100 Low Volatility 30 Index ends on 29 August. The changes will be announced mid-September and implemented at the close on 29 September.
- Two potential constituent changes, volatility changes and capping changes will result in one-way turnover of 10.7% resulting in a round-trip trade of INR 12.6bn (US$145m).
- The forecast deletions will also have sell flows from the NIFTY Index, NSE Nifty Next 50 Index and/or the Nifty 100 Index, so the impact will add up.
Smart Share Global: An Interesting Merger Arb Play
- Smart Share Global (EM US) , previously known as “Energy Monster”, is a rather interesting merger arbitrage situation.
- It provides a unique risk/reward balance analogous to the famous adage, “heads I win, tails I don’t lose too much”.
- In this note, we examine the company and the merger dynamics.
Marriott International: A New Game-Changing Media Network to Tap Billions in Ad Revenue & Other Key Developments!
- Marriott International, Inc. reported its second-quarter 2025 financial results, revealing both positives and areas of concern.
- The company showed resilience amid global macroeconomic uncertainty by delivering strong performance metrics that surpassed previous earnings guidance.
- The company’s global RevPAR (revenue per available room) increased by 1.5%, with particular strength observed in regions like APAC (Asia-Pacific) and EMEA (Europe, Middle East, and Africa), demonstrating a 9% and 7% rise, respectively.
Gem Aromatics IPO Analysis: A Niche Aroma Player
- Gem Aromatics, a specialty ingredients manufacturer, opened its INR 450 crore IPO (Aug 19–21) at a INR 309–INR 325 price band.
- The company supplies sticky, specification-heavy ingredients (mint derivatives, aroma chemicals) to marquee FMCG and F&F players—segments benefiting from “China+1” and premiumisation in India.
- Quality of customers and process capabilities are positives, but concentration, raw-material cycles and a pending land litigation temper enthusiasm, execution on citral scale-up is key.
Pan Pacific International Holdings (7532 JP): FY FY06/25 flash update
- In FY06/25, sales increased 7.2% YoY, operating profit grew 15.8% YoY, driven by effective business initiatives.
- Discount Store business achieved non-consolidated operating profit over JPY100.0bn, OPM improved to 7.2%, strong duty-free sales.
- Company plans to open 25 new stores in Japan, seven overseas, targeting JPY190.0bn duty-free sales annually.
Mid & Small Cap Surge: Liquidity, Inflows and Big Movers Since May
- Oxley Holdings’ ADT surged to S$0.583 million since May, a 10.6× increase, with S$5.3 million profit before tax in 1HFY25.
- UOB-Kay Hian Holdings recorded S$23.09 million net institutional inflow, with P/E ratio rising from 7x to 10x.
- Non-index mid and small cap stocks attracted over S$100 million net institutional inflows since May, led by UOBKH and CSE Global.
What’s News in Amsterdam – 19 August (Ahold Delhaize)
- Yesterday, Ahold Delhaize announced to have reached an agreement for the divestment of 87 Romanian stores with local Romanian supermarket company Annabella, which has over 30 years of history of operating in the Romanian market.
- This divestment is in accordance with Ahold Delhaize’s post-closing obligations from the Romanian Competition Council (RCC), as announced on 3 January 2025 following the acquisition of Profi.
- Of the 87 stores to be divested, 82 are currently operated by Profi, with the remaining five operated by Mega Image, Ahold Delhaize’s other supermarket brand in the Romanian market.
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