In today’s briefing:
- 60 Stocks Screened by Tax Draft Setup — Short-Term Policy Flow Targets
- Laopu Gold (6181 HK): Potential Inclusion in Both Global Indices
- Dentsu Group (4324 JP): Global Index Deletion Likely
- Smart Share Global (EM US): MBO Firmed
- Smart Share Global (EM US): Trustar Capital-Sponsored MBO a Done Deal
- Royal Caribbean Group: Optimization of Loyalty Programs to Build Stronger Relationships With Guests!
- ECM Weekly (4 August 2025)-Meituan, LG CNS, Wuxi AppTec, SICC, NSDL, Aditya Info, GigaDevice, WeWork
- TVS Motor (TVSL) – The Juggernaut; Solid Outlook
- Mondelez International: Emerging Market Contributions As A Critical Growth Engine!
- Will the Incorporation of TSR into the Remuneration System Affect Cash Allocation?
60 Stocks Screened by Tax Draft Setup — Short-Term Policy Flow Targets
- Revisions to the draft are almost certain, but near-term flows will still trade off the current framework—so screening now helps front-run likely winners before the final version lands.
- Out of 386 stocks with FY1/FY2 consensus data, 60 names screen in based on FY2: payout ≥40% or ≥25% with DPS up 5%+ vs. 3Y avg.
- This tax reform will still drive near-term KOSPI flow—these screened names are core policy plays worth building setups around.
Laopu Gold (6181 HK): Potential Inclusion in Both Global Indices
- Laopu Gold (6181 HK) missed global index inclusion in May following completion of full circulation. The primary placement in May then improved chances of index inclusion in August.
- The stock rose nearly 60% in the 2 months following the placement and has lost more than a third of its value from the peak in the last month.
- The stock could be added to both global indices with one inclusion at the end of August and one in mid-September. That could provide short-term support for the stock.
Dentsu Group (4324 JP): Global Index Deletion Likely
- The drop in Dentsu Inc (4324 JP)‘s stock price over the last few months could lead to the deletion of the stock from a global index in August.
- Dentsu Inc (4324 JP) has underperformed its peers over the last year and trades cheaper than the average of its Advertising peers.
- There is positioning in Dentsu Inc (4324 JP), though it is likely to be smaller than the estimated passive selling. A relative selloff could be used to enter the stock.
Smart Share Global (EM US): MBO Firmed
- Nearly seven months after Smart Share (EM US), the largest provider of mobile device charging services in China, announced a preliminary non-binding proposal, a firm Offer has been entered into.
- Terms remains the same as the indicative NBIO: US$0.625/share (US$1.25/ADS), a 74.8% premium to last close. The Offeror comprises a consortium led by Mars Guangyuan Cai, Chairman and CEO.
- Timing from here? Perhaps three to four months, or late November completion by my estimate.
Smart Share Global (EM US): Trustar Capital-Sponsored MBO a Done Deal
- Smart Share Global (EM US) has entered into a definitive merger agreement for a Trustar Capital-sponsored MBO at US$1.25 per ADS.
- The proposal is conditional on regulatory approvals (low risk), shareholder approval (effectively done) and a maximum dissenting condition (likely to be waived).
- This is a done deal. At the last close and for the end of December payment, the gross/annualised spread is 7.8%/20.1% (3.5%/8.7% including an ADS cancellation fee).
Royal Caribbean Group: Optimization of Loyalty Programs to Build Stronger Relationships With Guests!
- Royal Caribbean Group delivered a strong performance in the second quarter of 2025, demonstrating significant improvements in key financial metrics largely driven by strong consumer demand and strategic operational enhancements.
- The company exceeded expectations with adjusted earnings per share reaching $4.38, which is a 36% increase compared to last year, surpassing guidance by $0.33.
- A key contributor was a robust 5.2% growth in net yields, driven by strong close-in bookings and a split between new and existing fleet contributions.
ECM Weekly (4 August 2025)-Meituan, LG CNS, Wuxi AppTec, SICC, NSDL, Aditya Info, GigaDevice, WeWork
- Aequitas Research’s weekly update on the IPOs, placements, lockup expiry and other ECM linked events that were covered by the team over the past week.
- On the IPO front, India deal flow remains strong, with HK A/H listing starting to flow in again.
- On the placements front, WuXi AppTec (2359 HK) undertook a mega raising, while Prosus NV (PRX NA) has begun to pare its stake in Meituan (3690 HK).
TVS Motor (TVSL) – The Juggernaut; Solid Outlook
- TVS Motor (TVSL IN) posted its highest-ever revenue and EBITDA in Q1FY26, with 20% topline growth. Strong export recovery (+39%) and robust EV sales (+35%) helped offset modest domestic growth.
- Strong Festive Outlook: Management expects festive demand, rural recovery, and new launches—including EVs and Norton bikes—to drive strong H2 FY26 performance.
- But the Valuation At 57x P/E TTM EPS, TVS commands a steep premium over peers.Despite the sustained outperformance in EV adoption,export monetization, and upcoming premium product launches, we retain HOLD.
Mondelez International: Emerging Market Contributions As A Critical Growth Engine!
- Mondelez International’s latest financial results present a mixed picture with both strengths and challenges for potential investors to consider.
- During the second quarter of 2025, the company achieved promising outcomes overall, but encountered significant regional disparities.
- On the positive side, Mondelez reported strong global balance, driven by impressive performance outside North America.
Will the Incorporation of TSR into the Remuneration System Affect Cash Allocation?
- With nearly half of companies listed on TSE having a P/B ratio of less than 1, many investors are likely to question the appropriateness of executives receiving fixed remuneration.
- Incorporating TSR into the compensation system will likely motivate companies to increase shareholder returns, which is a good thing if it leads to the return of unused cash to shareholders.
- As long as fixed compensation remains high, there won’t be much incentive to put a lot of cash into growth investments that boost corporate value.
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