In today’s briefing:
- IDP Education (IEL AU): Blackstone’s Offer Rejection Justified, Third Approach Likely
- Aequitas: Chery Auto IPO Lockup – US$8bn Pre-IPO Release
- KT&G: Buyback and Cancellation of 360 Billion Won & Market Share Gains From Lil Tonino Lamborghini
- Gentex’s Hidden Growth Engine — Klipsch & Onkyo Are Expanding Fast!
- Puregold Price Club (PGOLD PM) – Resilience in Retail
- Omnicom Group’s $900 Million Synergy Engine — Can The Interpublic Integration Transform Earnings?
- Smucker’s $5.6 Billion Twinkies Bet Went Wrong — Can It Still Be Saved?
- Asbury Automotive Group’s 70% Tekion Conversion Signals A Pivotal Operating Reset!
- YAY: Thesis Rehash & Q4 Preview
- BBW: Snapping the Store: Focusing on Halloween Returns; Reiterate Buy, $50 PT
IDP Education (IEL AU): Blackstone’s Offer Rejection Justified, Third Approach Likely
- In response to an AFR article, IDP Education (IEL AU) disclosed that it rejected a non-binding proposal from Blackstone (BX US) at A$2.50 (received on 9 September).
- The offer is light on several metrics. Based on its weighted-average purchase price, Southeastern (which has quickly grown to be the largest shareholder) would need a A$3.00+ offer.
- Several factors suggest that Blackstone is likely to return with at least a third offer. An offer of at least A$3.00 is required to pressure the Board to engage.
Aequitas: Chery Auto IPO Lockup – US$8bn Pre-IPO Release
- Chery Automobile raised around US$1.2bn in its Hong Kong IPO. The lockup on its pre-IPO investors is set to expire soon.
- Chery Auto is a Chinese passenger vehicle company which designs, develops, manufactures and sells passenger vehicles, including internal combustion engine vehicles and new energy vehicles, both domestically and overseas.
- In this note, we will talk about the lockup dynamics and possible placement.
KT&G: Buyback and Cancellation of 360 Billion Won & Market Share Gains From Lil Tonino Lamborghini
- On 22 September, KT&G Corporation (033780 KS) announced that it plans to buyback and cancel 2.07 million shares (about 2% of outstanding shares) worth 360 billion won.
- The Kazakhstan market is a prime example. KT&G began commercial production in Kazakhstan in March 2025. Its local market share expanded from 5.1% in 2022 to 9.6% in 2025.
- KT&G launched the “Lil Tonino Lamborghini” on 15 September in Korea. This product reduces the preheating time to 3 seconds versus competing products that typically take 10 to 20 seconds.
Gentex’s Hidden Growth Engine — Klipsch & Onkyo Are Expanding Fast!
- Gentex Corporation’s second quarter of 2026 financial results showed net sales of $651.3 million, reflecting a slight 1% decrease compared to the same period last year.
- Automotive revenue declined approximately 3% year-over-year, primarily due to lower shipments in Europe, Japan, Korea, and China.
- This decline was partially offset by stronger demand in North America and higher vehicle content in Europe.
Puregold Price Club (PGOLD PM) – Resilience in Retail
- Puregold is now the largest grocery retailer in the Philippines, catering for a broad spectrum of the population through its mass-market-focused Puregold Stores and member-only S&R Warehouse stores.
- PGOLD outperformed its major competitors in 1H2026, booking SSSG at double the rate of its nearest rival, with some trading down at Puregold Stores, and stronger growth at S&R.
- The company is pushing hard into private labels and is stepping up its store expansion. Management is cautiously optimistic for 2H2026 and maintains FY2026 guidance. Valuations remain attractive.
Omnicom Group’s $900 Million Synergy Engine — Can The Interpublic Integration Transform Earnings?
- Omnicom Group Inc. reported its second quarter 2026 results reflecting a continuation of its strategic repositioning following the integration with Interpublic, casting it as a more integrated operating company rather than a traditional holding company.
- The company achieved organic revenue growth of 6.1% from its Core Operations, which exclude assets held for sale or planned dispositions, driven primarily by strong performance in Integrated Media and experiential disciplines.
- Core Operations generated 91.4% of total revenue and 95% of adjusted EBITA, which grew 20.4% year-over-year, with EBITA margin improving nearly 200 basis points to 17.8%, largely attributed to the realization of cost reduction synergies.
Smucker’s $5.6 Billion Twinkies Bet Went Wrong — Can It Still Be Saved?
- The J.
- M.
- Smucker Company made one of the biggest bets in its history when it acquired Hostess Brands for roughly $5.6 billion in 2023, bringing Twinkies, Donettes, Ding Dongs and other familiar snack brands into a portfolio already dominated by coffee, peanut butter, pet food and frozen sandwiches.
Asbury Automotive Group’s 70% Tekion Conversion Signals A Pivotal Operating Reset!
- Asbury Automotive Group’s second quarter of 2026 reflects a period of transition driven by the ongoing implementation of the Tekion dealer management system (DMS).
- Approximately 70% of the company’s store base has been converted to Tekion, with completion expected by October 2026.
- While the rollout has involved significant investment and short-term operational challenges—such as managing dual legacy and new systems—the company reports early indications of improved productivity and operational efficiency in markets that have been on Tekion longest.
YAY: Thesis Rehash & Q4 Preview
- We are rehashing our investment thesis on THS Maple ahead of Q4 and FY26 results, which are due by the end of October.
- We model Q4 revenue of $4.7M (+13% YoY) and FY26 revenue of $16.4M (+14% YoY).
- YAY recently celebrated its 50th anniversary, with its products now sold in over 30 markets after opening in the Philippines, Australia, and New Zealand this year.
BBW: Snapping the Store: Focusing on Halloween Returns; Reiterate Buy, $50 PT
- We are reiterating our Buy rating, $50 price target and projections for Build-A-Bear Workshop after visiting stores in Connecticut and Long Island.
- We believe, as we enter the heart of the Halloween season, Build-A-Bear, after a second round of new “furry friends,” is focused on once again driving strong overall results and margins, as the company is maintaining inventory discipline and reducing discounting following a somewhat difficult Summer season.
- Further, we believe demand for key Halloween related “furry friends” has remained strong beyond the almost immediate sell outs of the Posable Bat and Jumping Spider.
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