Daily Brief Consumer: Yutaka Giken, Alibaba, Dongfeng Motor, SHEIN, Nissan Motor, Reckitt Benckiser Group , Tesla , SJM Holdings and more

• Honda Motor (7267 JP) and Samvardhana Motherson International Ltd (MOTHERSO IN) have arranged to buy Honda’s 69.7%-owned subsidiary Yutaka Giken (7229 JP) in a Tender Offer. 
• The transaction structure means Motherson buys Yutaka for less than net cash but even assuming Motherson pay minority TOB price for everything, TOB ex-net cash = 0.05x PBR, <1x EBITDA.
• But they are paying less. They are paying ¥12.4bn less than net cash, and getting the other ¥58bn of net assets (¥23bn inventory, the rest in hard assets) for free.

• The de facto total revenue increased by 10% YoY excluding two disposed shopping malls.
• We believe Alibaba will win the price war for food deliveries, because competitors’ earnings were even worse.
• The stock surged by 13% in NYSE after the result release, but we still believe it has an upside of 48% for next twelve months.

• Alibaba (BABA US)  jumped 12.9% on Friday following better than expected 2Q2025 results and upbeat management commentary.
• Investors cheered growth plans centered around Consumption and AI + Cloud, signaling confidence in the company’s long-term strategy.  
• 2Q2025 operating profits dipped slightly, as higher costs in quick commerce were largely offset by growth in other business segments.

• 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: Mayne Pharma (MYX AU), Smart Share Global (EM US), ENN Energy (2688 HK), Dongfeng Motor (489 HK), Joy City Property (207 HK), Santos Ltd (STO AU). 
• Lowest spreads: Bright Smart Securities (1428 HK), Pacific Industrial (7250 JP), Humm Group (HUM AU), Ashimori Industry (3526 JP), Carenet Inc (2150 JP), Ainsworth Game Technology (AGI AU).

• For Aug 2025, 17 new transactions (firm and non-binding) were discussed on Smartkarma (by the Quiddity team) with an overall announced deal size of ~US$18bn.
• The average premium for the new transactions announced (or first discussed) in August was 48%, with a year-to-date average of 47%.
• The average premiums for transactions in 2024 (129 transactions), (2023 (117), 2022 (106), 2021 (165), 2020 (158), and 2019 (145 ) were 43%, 39%, 41%, 33%, 31%, and 31%

• SHEIN is reportedly moving its corporate HQ to China to pave way for HK IPO
• US ‘de minimis’ exemption for all countries ended Aug 29 (China/HK was May 2)
• We believe end of US ‘de minimis’ exemption changed the game for SHEIN

• Aequitas Research’s weekly update on the IPOs, placements, lockup expiry and other ECM linked events that were covered by the team over the past week.
• On the IPO front, a number of company’s appear to be lining up to launch their IPOs in the coming month.
• On the placements front, there were a number of large deals across the region.

Key points (machine generated)

• The core portfolio includes leading health and hygiene consumer brands projected to generate £10 billion in sales and £2.6 billion in operating income for FY’24.
• Mead Johnson and Essential Home contribute about 15% of EBIT but are planned for divestment due to low growth potential.
• The self-care segment is expected to represent 33% of total sales in FY’24, with a growth rate of 7% and varying contributions from different regions.

This article is sourced from an online content aggregator through publicly available sources and is displayed below for general informational purposes only. This article was originally published 3 months ago on Value Investors Club.

• Tesla, Inc. designs, develops, manufactures, leases, and sells electric vehicles, and energy generation and storage systems in the United States, China, and internationally.
• The company operates in two segments, Automotive and Energy Generation & Storage.
• The Company’s shares are listed in the Nasdaq Composite Index under the symbol ‘TSLA’ since June 29, 2010 and are included among the companies with the higher market capitalization globally. 

• SJM Holding’s H1/25 results were weaker than anticipated, as the company lost GGR market share in Q2 (after a strong Q1).
• The top line continued to expand, in line with the ramp-up of Grand Lisboa Palace (GLP).
• That said, EBITDA unexpectedly contracted due to unfavourable win rates (particularly at GLP). FCF was likely negative, owing to the reduced profitability.  Positively, the planned reorganisation of gaming assets will likely raise the properties’ margins and provide the company with operational flexibility to optimise its assets going forward.