Daily Brief Consumer: REA Group Ltd, Toyota Motor, QAF Ltd, Tilaknagar Industries, Pacific Industrial, Tesla , Brigade Hotel Ventures Ltd, Evolution, Coles Group , TSE Tokyo Price Index TOPIX and more

• In this insight, we take a look at the potential index changes for ASX 300, 200, 100, 50, and 20 in the run-up to the September 2025 index rebal event.
• Currently, a market consultation is being conducted and there could be several significant changes made to the index selection process.
• The official index changes will be announced after the close on Friday 5th September 2025.

• Context: On 23 July 2025, Toyota Motor (7203 JP) surged 14.3%, driven by macro factors tied to tariffs. This Insight examines how that sharp move affected the stock’s volatility surface.
• Key Observations: Implied volatility spiked to extreme percentiles, with two-week IV hitting the 99th–100th percentile. Skew dynamics show otm calls becoming historically rich relative to puts.
• Opportunity: Elevated implied volatility and historically flat skew present an attractive setup for a zero-cost option strategy.

• Singapore small-mid cap stocks are having a good run in anticipation of Market Equity Development Programme. QAF may appeal to yield investors
• QAF is a well run number 1 bread company in Singapore, Malaysia and Philippines
• Business is stable and mature making it difficult for a new player to enter the market

• Tilaknagar Industries (TLNGR IN) acquires Pernod Ricard India’s Imperial Blue for INR 4,150 crore, diversifying its portfolio into whisky from dominance in brandy.
• This acquisition will establish TI as a pan-India spirits player, significantly enhancing distribution and is expected to be accretive.
• However, substantial deal size raises concerns about equity dilution, high leverage risks, and significant integration challenges for TI

• Overnight, the Nikkei carried an article saying Toyota valve supplier Pacific Industrial (7250 JP) would go private at a 40% premium in an MBO. 
• The implied price would match its ATH, but would remain far below book value, which is disappointing for a company with a very strong customer base and market share.
• This is potentially blockable, but it would need to be activism from scratch I think. An activist or collection of them would need about 18-20% to block this deal.

• Not impressive earnings result for 2Q25 as revenue fell 12%, led by a weaker EV sales followed by lower sales from the renewable energy division as well.  
• The highest-margin business contributor, regulatory credit, may be gone soon as recently the US government removed the financial penalty for higher emissions. 
• Tesla (TSLA US) is trading at premium compared to its Chinese counterparts such as BYD (1211 HK) , NIO (9866 HK) and XPeng (9868 HK) .

• Brigade Hotel Ventures has filed for IPO to raise up to INR 7,596M. The company plans to sell 84.4M shares at between INR 85 and INR 90 per share.
• The company owns and develops hotels in key cities in India, with a portfolio of nine operating hotels. The hotels are operated by global marquee hospitality companies.
• The debt-to-equity ratio for Brigade Hotel being at 5.8x is the highest among its peers. The company’s plans to use the proceeds to service the outstanding debts makes sense.

• Evolution reported 2Q25 earnings, with stock up 7% on the day
• Live casino revenue up 4%, RNG flat with potential for growth
• Expansion of partnership with Hasbro for Monopoly IP in North America, positive outlook in the market

This content is sourced through publicly available sources and has been machine generated. Information displayed is for general informational purposes only.

• The Coles Group’s financial results for the first half of fiscal year 2025 present a mixed picture of robust revenue growth and cost management challenges.
• The company reported a 3.7% increase in group sales revenue, reaching over $23 billion.
• This growth was bolstered by their strategic focus on core business execution, value campaigns, and strong seasonal trade during events like Christmas and Halloween.

• Data suggests that share buybacks/share cancellations are expected to have positive effect on ROE/ROA, while companies with low valuations increasingly utilize share buybacks as a measure to raise stock prices.
• Overseas investors share the value that companies should have business plans for growth and return surplus cash after investment to shareholders. There’s gap between investors and companies inn this value.
• More effective approach would be to require management to fulfill accountability by explaining fundamentals of returning unused cash to shareholders and disclosing business plans if they wish to retain cash.