Consumer: Jardine Cycle & Carriage, Lanzhou Zhuangyuan Pasture, Yonex Co Ltd, Shimamura, MatsukiyoCocokara, CCL Products India, Subaru Corp, Hero Motocorp and more

• Tunas Ridean (TURI IJ) announced a plan to change its status from an open company to a closed company. 
• In effect, TURI will undertake a buyback of its shares at Rp1,700/share, a lifetime high. Those who do not tender will be left holding unlisted scrip. 
• Jardine Cycle & Carriage (JCNC SP) and Tunas Andalan both hold 46.24%, leaving 7.52% in public hands. The proposal requires a shareholder vote. It appears no shareholder needs to abstain. 

• Back on the 25 April, PRC dairy farmer Lanzhou Zhuangyuan Pasture (1533 HK) announced a Conditional Cash Offer for all its H-shares at $10.89/share. The Offer Doc is now out.
• This two-step voluntary cash offer involves a Scheme-like vote and a 90% tendering condition. The EGM will be held on the 29 June. 
• This transaction could potentially be wrapped up late-July. The FY21 dividend should also be added to the Offer terms.

• Driven by a sharp rise in revenue and profitability over the last three quarters, Yonex Co Ltd (7906 JP) shares continue to go up in relatively choppy overall market conditions.
• We expect this strong growth momentum to continue over the medium term while Yonex builds popularity in new markets and new sports categories.
• We think there could be around 100% upside to Yonex alongside improving confidence about sustainability of Yonex’s current performance.

• Shimamura (8227 JP) is on a roll at the moment, clawing back share after a troubled few years of mis-merchandising and confused targeting.
• After a record year, Shimamura now thinks its merchandise teams are strong enough to take on urban centre consumers – without raising operating costs. This could be a worry for Uniqlo.
• Shimamura has tried this before but back then its focus was on young women and had weaker merchandising skills. This time around too urban consumers want more discount apparel.

• Over the past 2 years, customers cut back drastically on shopping and travel. Many worked in home offices in sweatpants and t-shirts.  
• But now, people are vaccinated, and lockdowns have lifted. Even Japan’s borders are starting to spring open.  
• Consumers are looking for ways to make up for lost time – we highlight 3 beneficiaries of revenge shopping. 

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• Subaru’s profitability is set to improve dramatically, driven by a weaker yen
• After two painful years, production is starting to normalise post Covid
• At 1xPBR, we think Subaru is significantly undervalued and see at least 30% upside

• The company sees the overall demand sentiment improving and is experiencing some early signs of demand recovery in both Rural as well as Urban areas.
• It expects double- digit growth in volume as all medium term and long term triggers are in place.

• Demand is recovering on the back of festive and marriage season, which is going really well, and retail volume has outdone wholesale volume, leading to correction in inventory levels, which are lower than 6 weeks now.

Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.