Daily Brief Consumer: Tsuruha Holdings, Dongfeng Motor, Seres Group , Digital Holdings Inc, Guangzhou Automobile Group, Lenskart Solutions, Bloks Group, Heineken Holding NV, Las Vegas Sands, Universal Corp/Va and more

• Tsuruha Holdings (3391 JP) acquires Welcia Holdings (3141 JP) in just over 4 weeks. Aeon Co Ltd (8267 JP)‘s tender offer for Tsuruha Holdings (3391 JP) could commence in December/January.
• The enlarged Tsuruha Holdings (3391 JP) could migrate upward in the MGlobal Index and that will bring in large passive flows. But there is one thing to watch out for.
• Tsuruha Holdings (3391 JP) and Welcia Holdings (3141 JP) have outperformed peers over the last 6 months and now trade at a higher forward PE.

• I summarise the latest spreads and newsflow of merger arb situations we cover across Hong Kong, Australia, New Zealand, Singapore, Japan, Indonesia, Malaysia, Philippines, Thailand and Chinese ADRs.
• Highest spreads: Smart Share Global (EM US), Mayne Pharma (MYX AU), ENN Energy (2688 HK), Dongfeng Motor (489 HK), Changhong Jiahua Holdings (3991 HK), Joy City Property (207 HK).
• Lowest spreads: Bright Smart Securities (1428 HK), Mandom Corp (4917 JP), Humm Group (HUM AU), Larvotto Resources (LRV AU), Seven West Media (SWM AU), Jinke Smart Services (9666 HK). 

• Seres Group (601127 CH) could raise up to HK$17.4bn (US$2.24bn) in its H-share listing if the Offer Size Adjustment Option and the Overallotment Option are both exercised.
• There is a big allocation to cornerstone investors that is locked up for 6 months. That eliminates the already small possibility of Fast Entry inclusion to global indexes.
• Seres (9927 HK) should be added to Southbound Stock Connect from the open of trading on 1 December following the end of the Price Stabilisation period.

• A weekly summary of key developments across ECM and Event-Driven names tracked by us across Hong Kong, Australia, New Zealand, Singapore, Japan, Indonesia, Malaysia, Thailand, Korea, India and Chinese ADRs.
• ECM developments: Sany Heavy Industry (600031 CH), Seres Group (601127 CH) and Pony AI (PONY US) H Share listings.
• Event-Driven developments: Digital Holdings Inc (2389 JP), Pacific Industrial (7250 JP), Soft99 Corp (4464 JP), Joy City Property (207 HK), Minmetals Land (230 HK), Larvotto Resources (LRV AU). 

• Gross SOUTHBOUND volumes just over US$21bn a day two weeks ago as markets fell sharply. About two-thirds that this past week as indices rebounded. High-div SOEs seeing buying demand.
• The recommended name was short Fuyao Glass Industry Group (3606 HK). The stock was -4.9% over two weeks, but the H outperformed its A by 0.55%.
• The data tables below update on a daily basis in the Tools section of Smartkarma. The Southbound Flow Monitor and AH Pairs Monitor are both there – free – for all SK readers.

• Lenskart Solutions (0370405Z IN) is looking to list on the exchanges by selling 181.05m shares via a primary and secondary offering to raise US$829m at a valuation of US$7.95bn.
• The price band has been set at INR 382-402/share, and the issue is likely to price at the top end of the range.
• The stock will not get Fast Entry to global indices. Inclusion at regular rebalances will commence in June 2026 but flow will be small given the low float.

• Bloks Group shares returned ~47% for IPO investors as of today, trailing the HSI’s 30% gain. The stock peaked at HK$190+ and fell ~55% over the following four months.
• Shares saw pressure after lockup restrictions expired in July. Until this month, the lockup provision had prevented the majority shareholder and other early investors from selling their shares. 
• The company’s revenue grew ~28% YoY in the first half of 2025, raising potential concerns of continued slowdown in sales of assembly character toys. Expect stock underperformance to continue.

• Heineken N.V.’s recent half-year earnings showcased a period of mixed performance, marked by both significant achievements and persistent challenges across its global operations.
• The company reported solid profit growth, driven particularly by strong performances in its Africa, Middle East (AME), and Asia Pacific (APAC) regions, but continued to face difficulties in Europe and the Americas due to various macroeconomic factors and operational challenges.
• Baptista Research looks to evaluate the different factors that could influence the company’s price in the near future and attempts to carry out an independent valuation of the company using a Discounted Cash Flow (DCF) methodology.

• Las Vegas Sands Corporation (LVS) has reported its third-quarter 2025 earnings, showcasing impressive performance, particularly in its Singapore operation, Marina Bay Sands (MBS), and significant improvements in Macau.
• The company’s Financial Year 2025 demonstrates robust growth, but some challenges remain, especially in Macau.
• The standout performer in this quarter for Las Vegas Sands was Marina Bay Sands, which delivered EBITDA of $743 million, pointing to an expected annual EBITDA well above the projected $2.5 billion, potentially nearing $2.8 or $2.9 billion.

• Universal Corp is a global leader in the leaf tobacco supply industry, acting as a critical intermediary between farmers and large consumer tobacco product manufacturers. Its established global network and long-standing customer relationships provide a solid foundation for its core business.
• Facing secular declines in global tobacco consumption, the company is strategically diversifying into the plant-based ingredients market. This initiative leverages its core competencies in agricultural sourcing and processing to create a new, potentially high-growth revenue stream.
• The company is a consistent dividend payer with a long history of annual dividend increases, making it attractive to income-focused investors. However, its financial performance shows revenue growth offset by margin pressures and volatile cash flows, reflecting the challenging dynamics of its primary market.

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