In today’s briefing:
- PointsBet (PBH AU)/Betr (BBT AU): Mutual Due Diligence Proposed
- The Beat Ideas: KDDL- Precision Engineering with Luxury Retail
- Lucror Analytics – Morning Views Asia
- Sula Vineyards Q4FY25: What Is Hidden?
- Giant Manufacturing (9921 TT)
- Chagee Holdings – Debut Is the Peak, and Then It Wanes?
- Broadcast Battles: PPF’s White Knight Bid Challenges MFE’s Media Ambition
- Asbury Automotive Group Goes High-Tech: Inside the Bold Tekion Integration That’s Slashing Costs!
- Management Strategy Before Starting a Constructive Dialogue with Investors
- Euglena Co Ltd (2931 JP): Q1 FY12/25 flash update
PointsBet (PBH AU)/Betr (BBT AU): Mutual Due Diligence Proposed
- In Betr’s “Superior Offer” For PointsBet (PBH AU) Is Questionable, I surmised, on balance, PointsBet Holdings (PBH AU) would afford Betr Entertainment (BBT AU) due diligence. That is now confirmed.
- PointsBet initial focus will be on Betr’s scrip as it comprises 43% of the funding mix.
- Separately, Mixi Inc (2121 JP)‘s Scheme Booklet was dispatched on the 8th May, with a shareholder vote on the 12th June. Mixi has matching rights under its SID.
The Beat Ideas: KDDL- Precision Engineering with Luxury Retail
- KDDL’s precision engineering division, Eigen, is expanding its manufacturing capacity with a new facility and further upgrades planned, aiming to capture high-growth sectors like aerospace, automotive, and medical devices.
- This expansion enhances KDDL’s competitive edge in precision engineering, a high-margin segment, and aligns with the company’s goal of making Eigen a significant revenue contributor, targeting 40-50% of manufacturing revenue.
- The focus on precision engineering and premium retail through Ethos positions KDDL for sustained growth, balancing stable manufacturing revenue with high-margin luxury retail.
Lucror Analytics – Morning Views Asia
- In today’s Morning Views publication we comment on developments of the following high yield issuers: Melco Resorts, Tata Steel, Tata Motors
- US President Donald Trump wrote in a Truth Social post on Sunday hat the US had “a very good meeting with China in Switzerland”, with “great progress made”. Meanwhile, US Treasury Secretary Scott Bessent and Trade Representative Jamieson Greer described “substantial progress”, adding that further details would be announced today.
- Chinese Vice-Premier He Lifeng highlighted that the talks were “candid, in-depth and constructive” on issues of concern to both countries, adding that the meeting “achieved substantial progress” and “reached important consensus”.
Sula Vineyards Q4FY25: What Is Hidden?
- In a surprising turn of events, the management of Sula Vineyards (SULA IN) has cancelled earnings call for Q4FY25 citing Indo-Pak conflict after posting bad quarterly numbers.
- Receivable cycle has further elongated to all time high since the company became public.
- Revenue growth yet remains muted post company became public in 2022.
Giant Manufacturing (9921 TT)
Taiwan’s Giant Manufacturing (9921 TT — US$1.7 billion) is the world’s largest bicycle manufacturer.
It’s based in the Taiwanese city of Taichung, which has become somewhat of the center of the global bicycle industry.
From there, it controls nine factories around the world, selling about 6 million bicycles a year via many thousands of distributors in 50 countries.
Chagee Holdings – Debut Is the Peak, and Then It Wanes?
- The core reason for the success of Chagee lies in the Company finding an effective “shortcut” of business model – “minimalism”, but this model does not imply a high moat.
- A likely situation is Chagee’s future growth in domestic market would be limited, and the overseas expansion could be unsatisfactory.So, we recommend investors to be cautious about the valuation prospects.
- If domestic competition intensifies or overseas expansion falls short of expectations, it is highly likely that the stock price will fall back to the range of US$25-30/share or even lower.
Broadcast Battles: PPF’s White Knight Bid Challenges MFE’s Media Ambition
- PPF launched a superior partial cash offer at €7.00 per share, positioning itself as a white knight against MFE’s lower-value bid and supporting ProSiebenSat.1’s current strategy.
- MFE’s mixed cash-share offer, based on a €5.70 valuation, lacks a premium and aims for creeping control; it has published its offer prospectus but hasn’t raised the price.
- Risk arbitrageurs may find an attractive setup in long ProSiebenSat.1, short MFE trades, though apportionment and offer risks require careful sizing and attention to German takeover rules.
Asbury Automotive Group Goes High-Tech: Inside the Bold Tekion Integration That’s Slashing Costs!
- Asbury Automotive Group’s first quarter of 2025 financial performance showcased both strong aspects and potential challenges.
- The company reported revenue of $4.1 billion, with a gross profit of $724 million, yielding a gross profit margin of 17.5%.
- Despite facing tariff-related uncertainties, Asbury achieved an all-time record gross profit in its parts and service division, with a same-store gross profit increase of 5% and a 6% rise in same-store customer pay gross.
Management Strategy Before Starting a Constructive Dialogue with Investors
- It is expected that there will be cases where investors and companies will have different views on “what constitutes constructive dialogue,” which will be added to the revised Stewardship Code.
- This revision would be unfortunate if it is used only to secure affirmative votes for company agendas and to seek a compromise on shareholder proposals.
- Before starting constructive dialogue with investors, a company must have business strategy that is “conducive to sustainable growth” or engagement will be waste of time and will not help management.
Euglena Co Ltd (2931 JP): Q1 FY12/25 flash update
- In Q1 FY12/25, sales reached JPY11.9bn (+7.0% YoY) with adjusted EBITDA at JPY1.5bn (+44.3% YoY).
- Segment sales in Healthcare were JPY10.9bn (+6.0% YoY) and segment profit was JPY1.2bn (+30.5% YoY).
- Biofuels segment sales were JPY252mn (+113.6% YoY) with a segment loss of JPY50mn, improving from prior losses.
💡 Before it’s here, it’s on Smartkarma
Sign Up for Free
The Smartkarma Preview Pass is your entry to the Independent Investment Research Network
- ✓ Unlimited Research Summaries
- ✓ Personalised Alerts
- ✓ Custom Watchlists
- ✓ Company Data and News
- ✓ Events & Webinars
