In today’s briefing:
- Hang Seng Indexes: Announcement Tomorrow; Potential Changes & Updated Flows
- Lynch Group (LGL AU): (Another) Clean Offer From TPG
- Hillhouse’s Competing Bid Challenges Smart Share Global’s Management-Led Privatization
- Lynch Group (LGL AU): TPG’s Scheme Offer
- Goodai Global (Unlisted) – The Most Aggressive M&A Player in the Korean Cosmetics Industry
- Yum China: Focus On Innovation & Customer Engagement to Foster Solid Growth Channels Via Advanced Digital Capabilities!
- The Main Battlefield for Dissolution of Parent-Subsidiary Listings Will Shift to Standard Market
- Yum! Brands: Focusing On Growth With AI Utilization Across 30
- HK-Listed Apparel & Footwear Screener Aug 2025: Lever Style (1346 HK) Conference Call
- GES: To Be Acquired by Authentic, Marciano Family and CEO for $16.75/GES Share
Hang Seng Indexes: Announcement Tomorrow; Potential Changes & Updated Flows
- Hang Seng Indexes announces changes to the Hang Seng Index, Hang Seng China Enterprises Index, Hang Seng TECH Index, HSIII Index, HSHKBIO Index and HSCI Index post market close tomorrow.
- The net round-trip trade across the stocks is estimated to be HK$54.3bn (US$6.9bn) with big impact in a lot of names.
- The largest inflows will be in Geely Auto if added to the HSTECH, Pop Mart if added to the HSCEI and HSI, and Horizon Robotics due to a FAF increase.
Lynch Group (LGL AU): (Another) Clean Offer From TPG
- Lynch Group (LGL AU), an integrated wholesale floral play, has entered into a Scheme Implementation Deed with Hasfarm Holdings and Darwin Aus Bidco – both of which are TPG entities.
- Hasfarm is offering A$2.245/share, a 28.3% premium to last close. The consideration includes a fully franked dividend of A$0.09/share. It’s April 2021 IPO price was A$3.60/share.
- The Offer has unanimous board support. 38.5% of the register is supportive. Hasfarm has also entered into a call option for 19.9% of shares out. Done deal.
Hillhouse’s Competing Bid Challenges Smart Share Global’s Management-Led Privatization
- Smart Share Global’s management consortium signed a definitive agreement to acquire the company at $1.25/ADS, later challenged by Hillhouse’s $1.77/ADS bid.
- Hillhouse’s competing bid is 40% higher than management’s offer, with significant shareholder stakes potentially influencing the outcome.
- EM’s business is unprofitable, with declining power bank rentals, but holds a net cash pile of $1.6/ADS.
Lynch Group (LGL AU): TPG’s Scheme Offer
- Lynch Group Holdings (LGL AU) has entered a scheme implementation deed with TPG Inc (TPG US) at A$2.245, a 28.3% premium to the undisturbed price of A$1.75 (19 August).
- Lynch has several substantial shareholders, which poses a vote risk. Encouragingly, four out of eight substantial shareholders are supportive.
- The offer is attractive compared to historical trading ranges. The scheme meeting is estimated to be in November, with payment in December.
Goodai Global (Unlisted) – The Most Aggressive M&A Player in the Korean Cosmetics Industry
- Goodai Global is the most aggressive M&A player in the Korean cosmetics industry. It has grown its business mainly through M&As.
- It has achieved the strongest growth in sales and profits among the major Korean cosmetics companies in the past four years.
- In early August 2025, Goodai Global secured 800 billion won, with a pledge to go public within three years. Goodai’s value is estimated to be about 4 trillion won.
Yum China: Focus On Innovation & Customer Engagement to Foster Solid Growth Channels Via Advanced Digital Capabilities!
- Yum China Holdings, Inc. reported strong financial results for Q2 2025, marked by new record levels in revenue, operating profit, and operating margin.
- The company’s dual-focused strategy emphasizing both same-store sales and system sales growth has yielded significant results.
- Notably, overall same-store sales grew by 1%, driven by a 17% increase in same-store transactions at Pizza Hut and 5% system sales growth at KFC.
The Main Battlefield for Dissolution of Parent-Subsidiary Listings Will Shift to Standard Market
- Standard Market is home to companies that face challenges that fail to meet tradable shares ratio, can’t grow market capitalization, or feel it burdensome to meet governance and disclosure requirements.
- TSE is likely to request companies listed on the Standard Market to disclose improvement measures in response to TSE’s requests, rather than raising the listing maintenance criteria.
- 262 Standard Market companies are listed subsidiaries. It’s considered that the quickest way to improve the quality of the Standard Market is to delist these companies by eliminating parent-subsidiary listings.
Yum! Brands: Focusing On Growth With AI Utilization Across 30
- Yum!
- Brands reported its second quarter results for 2025, showcasing a mix of growth and strategic shifts amidst a challenging consumer environment.
- The quarter was highlighted by system sales growth of 4%, with contributions from KFC International and Taco Bell US, which delivered positive transaction growth.
HK-Listed Apparel & Footwear Screener Aug 2025: Lever Style (1346 HK) Conference Call
- Tariff confusion has hit stocks, but the names in focus continue to be resilient as they pass on the costs, and the future impact of demand is to be determined.
- The investing world is now searching for stocks that are not directly affected by Trump tariffs. Lever Style (1346 HK) is one such stock trading at 7.2x trailing PE.
- With a trailing dividend yield of 6.2%, net cash of 27% of market cap, and impressive metrics on growth, this is a stock worth exploring.
GES: To Be Acquired by Authentic, Marciano Family and CEO for $16.75/GES Share
- We are reiterating our projections and Buy rating and lowering our price target on GES to $16.75 (from $23.00) after the company announced an agreement with Authentic Brands, Maurice and Paul Marciano and Guess?
- Chief Executive Officer Carlos Alberini to acquire Guess?
- for $16.75 per GES share, a valuation for the company of $1.4 billion.
💡 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
