In today’s briefing:
- Proto Corp (4298) – Large Active Holders Going Activish-Y
- Proto Corp (4298 JP): Kaname Capital Throws a Spanner in the Works
- Alibaba (BABA): 3Q25, Main Business Growth Close to Double Digits
- Growing Importance of ACT – Korea’s Largest Minority Shareholders Platform
- Kalyan Jewellers (KALYANKJ IN) | FOCO Model Warrants Attention
- China Could Lift Ban on Korean Popular Culture (Hallyu) As Early As May 2025
- McDonald’s: $100 Million Recovery Plan & 2,200 New Stores – Can It Bounce Back?
- Innova Captab Limited: Q3 FY25 Update
- DoorDash Inc.: Expansion Into New Verticals & Enhancing Grocery Delivery To Catalyze Growth!
- Marriott International: How It’s Monetizing Loyalty & Direct Bookings!
Proto Corp (4298) – Large Active Holders Going Activish-Y
- When the deal was announced, I wrote that the MBO for Proto Corp (4298 JP) was opportunistic and was possibly “vulnerable” to activist attentions (original insight here).
- On the 17th, one large active holder Ancient Arts LP filed an amendment to their Large Shareholder Filing showing a change in Reason for Investment.
- On the 18th of Feb, top independent shareholder Kaname Capital reported an increase in stake and sent Open Letters which appear only now to be circulating. It’s worth a look.
Proto Corp (4298 JP): Kaname Capital Throws a Spanner in the Works
- Kaname Capital, the second-largest shareholder of Proto Corp (4298 JP), has issued an open letter stating that the JPY2,100 MBO tender offer is a bad conclusion at the wrong price.
- Some assertions are valid, while others do not stand up to scrutiny. Kaname claims that Proto is worth JPY3,778, which will make it hard to reach a compromise.
- Maintaining terms is increasingly not viable. The Chairman is likely to respond by lowering the minimum acceptance condition and/or bumping to secure the support of minorities (excluding Kaname).
Alibaba (BABA): 3Q25, Main Business Growth Close to Double Digits
- Total revenue growth rate continued to rise in 3Q25 ending March 2025.
- Also, the growth rate of the largest business line, customer management, was close to double digits.
- The upside for the next twelve months was narrowed to 18%, as Alibaba’s stock surged after our preview note.
Growing Importance of ACT – Korea’s Largest Minority Shareholders Platform
- In this insight, we discuss about the growing importance of ACT, the largest minority shareholders platform (https://www.act.ag/) in Korea with nearly 100,000 members and market share of more than 50%.
- Recently, ACT has been demanding corporate governance improvements on the following companies: E-Mart, DB Hitek, Lotte Shopping, Youlchon Chem, Hanmi Science, and Solu-M.
- ACT has played an important role in the recent shareholder return polices announced by E-Mart which announced a sharply higher total shareholder return policy including higher dividends and share cancellations.
Kalyan Jewellers (KALYANKJ IN) | FOCO Model Warrants Attention
- We believe Kalyan Jewellers (KALYANKJ IN) ‘s FOCO (Franchise Owned, Company Operated) model warrants deeper attention
- Our casual checks question the company’s store expansion narrative vs on ground reality.
- Our conversation seems to indicate franchisees are financial partners only.
China Could Lift Ban on Korean Popular Culture (Hallyu) As Early As May 2025
- One of the big thematic events on the Korean stock market has been the expectation that China could lift ban on Korean popular culture (Hallyu) as early as May 2025.
- China’s President Xi recently stated “Cultural exchanges are a valuable part of our bilateral relations [between China and Korea]. We should avoid any problems occurring in handling such matters.”
- We provide a list of 40 stocks in Korea that could most benefit from the end of lifting ban of Korean popular culture.
McDonald’s: $100 Million Recovery Plan & 2,200 New Stores – Can It Bounce Back?
- McDonald’s faced a challenging end to 2024, as its U.S. sales and earnings declined, largely due to an E.
- coli outbreak tied to slivered onions on Quarter Pounders.
- This food safety crisis affected 104 people across 14 states, leading to 34 hospitalizations and one fatality.
Innova Captab Limited: Q3 FY25 Update
- Innova Captab (1605221D IN)’s Q3 FY25 results show modest revenue growth, enhanced EBITDA margins, and a significant manufacturing expansion via the new Jammu facility with innovative dosage forms.
- Improved margins and strategic expansion into new dosage forms enhance competitiveness, setting the stage for 25%+ growth and long-term profitability in the evolving CDMO and generics market.
- The company anticipates Rs. 400 to Rs. 500 crores of incremental revenue from the Jammu facility in the next fiscal year.
DoorDash Inc.: Expansion Into New Verticals & Enhancing Grocery Delivery To Catalyze Growth!
- DoorDash’s latest earnings report provides a comprehensive overview of the company’s performance, growth prospects, and strategic initiatives.
- The company showcased strong performance, with significant contributions from both U.S. and international markets.
- Despite the financial statements being marked by improvements and challenges, they highlight the key factors influencing the company’s trajectory.
Marriott International: How It’s Monetizing Loyalty & Direct Bookings!
- Marriott International’s fourth-quarter 2024 earnings reflect a strong performance with continued robust demand translating into a worldwide RevPAR increase of 5% for the quarter.
- Key metrics such as ADR grew by 3% and occupancy improved by over 1 percentage point.
- The company also achieved significant net rooms growth of 6.8% for the year, driven by strategic partnerships and conversions, which contributed significantly to its success.
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