In today’s briefing:
- Orion Breweries IPO – Deal Upsized; Lower End Looks Digestible
- Long Isuzu (7202 JP) Vs. Short Suzuki (7269 JP): Statistical Arbitrage in Japanese Autos Targets 10%
- US Tariffs on Imports from Japan Lowered to 15% but Imports from Korea Are Unchanged at 25% – Why?
- Chery Auto Pre-IPO – Peer Comparison
- Deckers Outdoor Betting Big on HOKA: What Does The Recent Quarterly Growth Imply In Terms Of its Long Term Prospects?
- Zepp Health’s Wild.AI Acquisition: Could This Be A Game-Changer For Female Sports Tech?
- Taste Gourmet H1 FY26: Earnings Preview, 5.8x PE with 30% of Mkt Cap in Cash, And a 9% Yield
- Darling Ingredients: Initiation Of Coverage- How Its Recent Acquisitions Are Powering Global Expansion!
- Ricegrowers Ltd – Closing the multiple gap
- Sligro Food Group NV – What’s New(s) in Amsterdam
Orion Breweries IPO – Deal Upsized; Lower End Looks Digestible
- Orion Breweries’ (409A JP) operations span across alcoholic beverages, tourism and hotel businesses. It aims to raise around US$162m in its Japan IPO which could increase to US$196m (including over-allotment).
- Orion Breweries (OBL) has a strong Okinawa market position. Share of overseas sales has been growing (~23% of FY25 revenues), while profitability has also largely been steady.
- In our previous note, we looked at the firm’s past performance and peer comparison. In this note, we talk about the pricing updates and IPO valuations.
Long Isuzu (7202 JP) Vs. Short Suzuki (7269 JP): Statistical Arbitrage in Japanese Autos Targets 10%
- Context: The Isuzu (7202 JP) vs. Suzuki (7269 JP) price-ratio has deviated more than two standard deviations from its one-year average, presenting a potential relative value opportunity.
- Highlights: Going long Isuzu (7202 JP) and short Suzuki (7269 JP) targets a 10% return.
- Why Read: Essential for quantitative traders seeking mean-reversion opportunities, with detailed execution framework, risk management protocols, and historical simulation showing the statistical basis for this relative value play.
US Tariffs on Imports from Japan Lowered to 15% but Imports from Korea Are Unchanged at 25% – Why?
- One of the biggest events in Korea in the past week has been the uncertainty regarding the US tariffs on South Korea which remains unchanged at 25%.
- On top of this, it was reported on 9 September that the US tariffs on Japanese goods including cars and auto parts will be lowered to 15% by 16 September.
- If Lee’s approval rating falls to about 45% to 50% range, then there could be a greater urgency by the Korean government to finalize a trade deal with the US.
Chery Auto Pre-IPO – Peer Comparison
- Chery Automobile is looking to raise about US$1.5bn in its upcoming Hong Kong IPO.
- 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.
- We have looked at the company’s past performance in our previous notes. In this note, we undertake a peer comparison.
Deckers Outdoor Betting Big on HOKA: What Does The Recent Quarterly Growth Imply In Terms Of its Long Term Prospects?
- Deckers Brands, the parent company of popular footwear brands HOKA and UGG, has delivered a noteworthy start to its fiscal year 2026, surpassing market expectations.
- In the first quarter, the company reported a 17% increase in revenue, reaching $965 million, and a 24% rise in diluted earnings per share to $0.93.
- Such performance was largely driven by the robust sales from its flagship brands, especially in international markets despite a challenging domestic environment in the United States.
Zepp Health’s Wild.AI Acquisition: Could This Be A Game-Changer For Female Sports Tech?
- Zepp Health Corporation’s financial performance in the second quarter of 2025 showcased a noteworthy yearover-year revenue increase by 46%, reaching $59.4 million, driven predominantly by sales contributions from the Amazfit brand.
- This marked the company’s first year-over-year revenue growth since Q2 2021, signifying potential effectiveness in their strategic business transformation.
- A crucial point of success was the performance of their adventure-focused T-Rex smartwatch series and the introduction of new products like the Balance 2 and Helio Strap, which appear to have expanded their market presence and contributed to financial growth.
Taste Gourmet H1 FY26: Earnings Preview, 5.8x PE with 30% of Mkt Cap in Cash, And a 9% Yield
- Taste Gourmet (8371 HK) will report its H1FY26 earnings in late November. We estimate a 15% revenue growth and 20-25% profit growth as the retail environment in HK improved slightly.
- The company increased its restaurant count in HK to around 65 restaurants (vs 56 last year), whereas the count in China remained static at six restaurants.
- The stock trades at a 5.8x PE, with a 9% dividend yield and 30% of the market capitalization in cash.
Darling Ingredients: Initiation Of Coverage- How Its Recent Acquisitions Are Powering Global Expansion!
- Darling Ingredients Inc. reported its second-quarter 2025 financial results, offering a mixed picture of performance and outlook.
- On the positive side, the company demonstrated resilience across its core businesses amid a challenging renewable fuel environment, maintaining strong earnings and capital discipline.
- Darling locked in borrowing costs for the next five years, enhancing financial flexibility through a successful refinancing process.
Ricegrowers Ltd – Closing the multiple gap
- Following the August 2025 reporting season, we look at key changes to consensus estimates, share price movements and outlook commentary relevant to Ricegrowers Limited, trading as SunRice (ASX:SGLLV).
- Across our selected peer group there were two notable downgrades (SHV and TWE) and two notable upgrades (CBO and GNC).
- The RaaS selected peer average has outperformed the ASX200 over the past three months, increasing 11% against +3.3%.
Sligro Food Group NV – What’s New(s) in Amsterdam
- In this edition: • ABN Amro | NLFI to further reduce stake to approx. 20% • Ahold Delhaize | Delhaize to open 7 new supermarkets by early 2026 • ASML Holding | invests EUR 1.3bn in Mistral AI • X-FAB | presents its long-term financial ambition at its CMD • Household consumption | up 1.3% YoY in July
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