In today’s briefing:
- Gemlife (GLF AU): Index Inclusions Start Later This Year
- Toyota (7203 JP // TM US) Hits Oversold: Your High-Potential Options Strategy
- Dickson Concepts (113 HK): Scheme Vote on 18 July for a Below Net Cash Offer
- Cao Cao IPO Trading: Weak Institutional Demand; Clawback Triggered
- Kent R O Systems Ltd IPO- Purity at a Price
- Dickson Concept (113 HK): 18th July Vote On Poon’s Low-Balled Offer
- VIOT: Viomi hits a few speed bumps in the road. Adjusting our valuation target to 4.00
- What’s News in Amsterdam – 24 June (Unilever)
- BBW: Snapping the Store: Winning from Mini to Giant Sizes; Reiterate Buy, PT
Gemlife (GLF AU): Index Inclusions Start Later This Year
- Gemlife (GLF AU) is looking to raise A$750m in a primary offering, valuing the company at A$1.58bn. The stock is expected to start trading on 3 July.
- The Puljich family and Thakral Corp (THK SP) are escrowed on their shares till mid 2026 at the earliest.
- Gemlife (GLF AU) could be added to global indexes in November and December this year, but S&P/ASX 300 Index inclusion could take place only in March 2026.
Toyota (7203 JP // TM US) Hits Oversold: Your High-Potential Options Strategy
- Context: After three consecutive down weeks, Toyota Motor (7203 JP) has entered oversold territory, triggering a potential upside signal in quantitative models.
- Trade Idea: With signs pointing to a short-term reversal, a Bull Call Spread strategy offers high return potential (~12x premium) with limited upfront cost.
- Why Read: This Insight presents a timely, actionable trade idea with a well-defined risk/reward profile—ideal for investors seeking tactical exposure. Details Provided.
Dickson Concepts (113 HK): Scheme Vote on 18 July for a Below Net Cash Offer
- Dickson Concepts Intl (113 HK)’s IFA opines that the controlling shareholder (Sir Poon) at HK$7.20 to be fair and reasonable. The vote is on 18 July.
- A low AGM minority participation rate and quiet retail forums are helpful. However, the offer is below the net cash, and Dickson is cash generative on an underlying basis.
- Dickson shares traits similar to those of the Goldlion and Soundwill deal breaks, which showed that low-ball offers can be blocked. This situation warrants a safety-first approach.
Cao Cao IPO Trading: Weak Institutional Demand; Clawback Triggered
- Cao Cao is a ride hailing platform in China that raised US$236m in its Hong Kong IPO.
- As of 2024, it held a 5.4% market share as per Frost & Sullivan.
- We have covered various aspects of the deal in our previous note. In this note, we will talk about the demand and trading dynamics.
Kent R O Systems Ltd IPO- Purity at a Price
- Kent R O Systems (6592700Z IN) Kent R O Systems Ltd plans to come up with its IPO
- The company is the second largest player in the Indian water purifier market with a market share of about 20%, behind Eureka Forbes.
- We are concerned with the related party transactions of the company, especially with the promoters. The lease rental policy, coupled with some impairments, and trademark infringement matter also attracts attention.
Dickson Concept (113 HK): 18th July Vote On Poon’s Low-Balled Offer
- Back on the 29th April, Dickson Concepts Intl (113 HK)‘s Chairman, Dickson Poon (& relatives), holding (now) 65.77%, tabled an Offer by way of a Scheme for shares not held.
- The family offered HK$7.20/share (best & final). That compared to DC’s net cash (as at 31st Mar 2025) of HK$6.92/share. Plus financial assets comprise an additional ~HK$1.92/share.
- The Scheme Document’s now out, with a Court Meeting on the 18th July, and expected payment around the 12th August. The IFA (Platinum) says “fair & reasonable”. It is not.
VIOT: Viomi hits a few speed bumps in the road. Adjusting our valuation target to 4.00
- Viomi recently launched a new filtration system that produces mineral water-like output, which could be a differentiated product in the market, enabling Viomi to gain a share in an increasingly crowded filtration market.
- The company’s inability to file a timely 20-F with the SEC, combined with a recent change in auditors, will likely raise concerns among investors.
- Viomi’s strong balance sheet could enable it to pursue multiple growth strategies (expansion, new products, M&A) over the next 3-5 years.
What’s News in Amsterdam – 24 June (Unilever)
- In this edition: • Unilever | agrees to buy Dr. Squatch from Summit Partners
BBW: Snapping the Store: Winning from Mini to Giant Sizes; Reiterate Buy, PT
- We are reiterating our Buy rating, projections and $58 price target for Build-A-Bear Workshop after visiting stores in Connecticut and Long Island.
- We believe, with compelling offerings, the ability to launch new exciting seasonal items and then further leverage the offerings via extensions into Mini (Beans) or Giant sized “furry friends,” the ability to drive upside from movie releases, to quickly capitalize on online trends and to expand key licensed franchises (Sanrio, Pokemon), Build-A-Bear is putting on a master class in how to drive incremental purchases and to achieve top and bottom line growth.
- As such, we remain highly impressed and believe there remains upside to our top and bottom line projections and price target and reiterate our Buy rating and $58 price target.
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