Daily Brief Consumer: Soft99 Corp, Nameson Holdings, Isuzu Motors, Trip.com, American Eagle Outfitters and more

• KeePer Technical Laboratory (6036 JP) has switched its allegiance from the Soft99 Corp (4464 JP) MBO by agreeing to accept the higher Effissimo offer. 
• KeePer’s change of heart sets a huge precedent and signals that irrevocables are unenforceable and fiduciary duty outweighs a promise to tender.
• Nevertheless, the outcome is still not set in stone. Effissimo’s chances of success have increased, but the MBO still retains a long-shot chance of success.

• Nameson Holdings currently has a very high dividend yield of 12.8% which is one of the highest dividend yields among listed stocks in Asia. 
• It has attractive valuations. It has valuation multiples of 5.6x (P/E), 0.8x (P/B), and 4.2x (EV/EBITDA) based on FY25 earnings. 
• Uniqlo is the largest customer of Nameson Holdings. Uniqlo accounted for 60% of Nameson’s total sales in FY25 and from FY22 to FY25. 

• Context: This Insight follows up on previously highlighted relative value opportunities, using a statistical methodology based on mean-reversion to identify opportunities in paired securities.
• Highlights: Currently nine pair trade opportunities across four markets and four sectors persist.
• Why read: Statistical analysis offers a unique perspective on relative value. Gain insights into actionable statistical pair trade opportunities and monitor performance of previously highlighted pairs.

• Growth rates of outbound and domestic air travel slowed again in September
• Initial read on Golden Week demand: weak activity growth, weaker spending
• In our view, it’s increasingly difficult to retain an upbeat view of the sector

• Aerie’s Continued Strength: The Aerie brand, focusing on intimates, activewear, and loungewear with a body positivity message, remains the primary growth engine for the company, consistently posting positive comparable sales and revenue growth.
• Competitive and Macro Headwinds: The company operates in the highly competitive and fragmented apparel retail sector, facing significant pricing pressure and the need for constant innovation. Furthermore, its performance is sensitive to macroeconomic conditions that affect discretionary consumer spending.
• ‘Powering Profitable Growth’ Strategy: Management has outlined a long-term strategy focused on driving profitable growth through supply chain optimization, disciplined cost management, and targeted expansion of its core brands, aiming for a mid-to-high teens annual operating income expansion.

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