In today’s briefing:
- A/H Premium Tracker (To 6 June 2025): Narrow Premia Hs Worst Performers, BYD Relents
- With Us (9696 JP): NSSK’s JPY3,237 Tender Offer
- Index Treatment of Sony (6758 JP)’s Spinoff of the Financial Services Business
- Quiddity BSE/SENSEX Jun25 Results: 23/26 Correct; ~US$600mn Total One-Way Flows
- Reiterate Short Tata Motors – Weak Sales Volume, JLR UK Retails Weak
- Shinsung Tongsang: A Second Try at Tender Offer and Privatization
- Can Lululemon Athletica Strike Back? Some Bold Moves to Crush Tariffs & Supply Chain Chaos!
- Lululemon 1Q’25 Update
- PVH Is Reinventing Calvin Klein And Tommy Hilfiger: Inside Its Recent
- Weak Spending over China’s Dragon Boat Festival Holiday Period Suggests Tourists Remain Frugal
A/H Premium Tracker (To 6 June 2025): Narrow Premia Hs Worst Performers, BYD Relents
- AH spreads are slightly narrower. BANKS, INSURERS, BROKERS, INDUSTRIALS, PHARMA and UTILITIES see significant H-share outperformance vs their A pairs. TECH, CONSUMER, ENERGY mixed to worse.
- Ongoing skew on H-vs-A performance this week. Those trading AH Premium <20% saw H outperform sharply but those with H Premia contracted. Quiddity Portfolio alpha trending strongly.
- The data tables below update on a daily basis in the Tools section of Smartkarma. The SOUTHBOUND Flow Monitor and AH Monitor are both there free for SK readers.
With Us (9696 JP): NSSK’s JPY3,237 Tender Offer
- With Us Corp (9696 JP) has recommended a tender offer from Nippon Sangyo Suishin Kiko (NSSK) at JPY3,237, an 18.0% premium to the last close price.
- The offer represents an all-time high and concludes SwissAsia’s activist campaign to spill the Board at the AGM on 26 June.
- SwissAsia and the founding family have provided irrevocables (39.81% ownership ratio), paving the way for deal completion.
Index Treatment of Sony (6758 JP)’s Spinoff of the Financial Services Business
- For each share of Sony Corp (6758 JP), shareholders will receive 1 share of Sony Financial Group. Ex-date for the dividend in-kind is 29 September.
- The Nikkei has started a market consultation on treatment of the spinoff in the Nikkei225 and that means the dividend in-kind will not be included in the Dividend Point Index.
- There will be some selling in SFGI from passive trackers and the company will buy back some stock following listing. Details of the buyback have not been announced yet.
Quiddity BSE/SENSEX Jun25 Results: 23/26 Correct; ~US$600mn Total One-Way Flows
- The semiannual index rebal events of the SENSEX index, BSE 100 index, and BSE 200 index will take place in June 2025.
- There will be two changes for BSE Sensex, three changes for BSE 100, and eight changes for BSE 200.
- In this insight, we take a look at our final flow expectations.
Reiterate Short Tata Motors – Weak Sales Volume, JLR UK Retails Weak
- We continue to reiterate our short call on Tata Motors Ltd (TTMT IN) based on near term challenges.
- May sales volume is weak versus peers in industry. This weak performance is seen across segments – India passenger cars, commercial vehicles and UK Retail sales
- This insight discusses the whole sale volume in the month of May and compares it with its nearest competitors.
Shinsung Tongsang: A Second Try at Tender Offer and Privatization
- On 9 June, Shinsung Tongsang (005390 KS) announced a second tender offer after a failed attempt last year. Tender offer price is 4,100 won per share.
- The tender offer price this time (second try) is much higher than recent prices, making it much more likely that the tender offer will be successful.
- From 2019 to 2023, Top Ten’s sales nearly tripled whereas Uniqlo Korea’s sales declined by about 33% in the same period.
Can Lululemon Athletica Strike Back? Some Bold Moves to Crush Tariffs & Supply Chain Chaos!
- Lululemon Athletica Inc. reported its financial results for the first quarter of 2025, posting revenue growth that reached the high end of its guidance range with a notable improvement in the United States, where revenues grew by 2%.
- The overall revenue increased by 7% (or 8% in constant currency) reaching $2.4 billion, driven by strong performance across various regions, despite a seemingly cautious consumer sentiment in the U.S. The brand witnessed robust in-market performance with revenues in Canada increasing by 9% and a significant 22% increase in Mainland China.
- The company also saw 17% revenue growth in the rest of the world.
Lululemon 1Q’25 Update
- Lulu is again back to LSD growth in the US; what makes it more disappointing is they actually had a somewhat easier comparison since 1Q’24 growth was just 2%.
- Canada, despite a low double digit growth in 1Q’24, again had higher growth than the US this quarter.
- China and Rest of the World (RoW) maintained healthy growth rates but growth has materially decelerated.
PVH Is Reinventing Calvin Klein And Tommy Hilfiger: Inside Its Recent
- PVH Corp.’s first-quarter 2025 performance reflects a balance of achievements and challenges in a complex macroeconomic environment.
- On the positive side, PVH delivered revenue growth that surpassed company guidance, attributable to the effective execution of its PVH+ Plan.
- The revenue increased by 2%, exceeding expectations due to stronger-than-projected wholesale performance, early shipments, and the relaunch of Calvin Klein women’s sportswear and jeans in North America.
Weak Spending over China’s Dragon Boat Festival Holiday Period Suggests Tourists Remain Frugal
- China’s Ministry of Tourism & Culture reported mediocre holiday travel & spending activity
- Separately, Xinhua also reported underwhelming numbers from Dragon Boat Festival period
- Weak travel numbers may indicate Chinese consumers remain uneasy about near-term outlook
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