Daily Brief Consumer: Kangwon Land, Xingda International, Sona Blw Precision Forgings Lt, The Born Korea, Midea Group Co Ltd A, Toyota Motor, Samvardhana Motherson Automotive Systems Group BV, Urban Outfitters, Lands’ End Inc and more

• For this September reshuffle, fewer factors affected price impact, so outlier chances were low. Biggest price moves typically occur 30 days before the effective date, especially during LARGE↔MID transitions.
• Early positioning for this reshuffle paid off. Past trends suggest price action fades before the effective date, so consider exiting positions by tomorrow or early next week.
• Small→Mid migrants historically show weak price impacts, with no clear correlation observed in this September reshuffle either. I’m avoiding those plays targeting the effective date for now.

• Back on the 7 Dec 2023, Xingda International (1899 HK)  announced a partial Offer from a consortium comprising management at HK$1.88/share.
• The consortium, at the time, held 45%, with the objective to hold >50.01% at the close of the Offer. The final % was 50.42%. 
• The consortium was then free to take their stake up to 75%. However the shareholder structure has materially changed in 2024. Xingda is suspended (again) pursuant to the Takeovers Code.

• Xingda International (1899 HK) entered a trading halt pending the release of an announcement under the Hong Kong Code on Takeovers and Mergers. 
• Significant changes in substantial shareholders have occurred since the previous partial offer closed on 10 March 2023, which could be the catalyst for an offer. 
• Management is likely reloading a partial offer to exercise statutory control and bypass the 2% creeper rule. The partial offer price could be around HK$1.60-1.70 per share. 

• Sona Blw Precision Forgings Lt (SONACOMS IN) is looking to raise INR24bn (US$286m) from its qualified institutional placement (QIP).
• The capital raising is well flagged having gone through rounds of board approvals, and having been well covered by various media outlets as well.
• In this note, we run the deal through our ECM framework and comment on deal dynamics.

• The Born Korea is getting ready to complete its IPO in Korea in November. The total IPO offering is expected to range from 69 billion won to 84 billion won. 
• Based on the bankers’ valuation, the expected market cap of the company ranges from 357 billion won to 419 billion won. 
• The Born Korea was founded by Baek Jong-Won, the most famous celebrity chef in Korea. 

• Chinese appliance maker Midea’s application to list its shares on the HKEx has been approved and the company plans to list up to 10% of its shares to raise $4bn.
• Midea Group Co Ltd A (000333 CH)  has a diversified product portfolio,  well-balanced exposure to domestic as well as overseas markets and M&A’s that have helped significantly grow its business.
• Our analysis on previous secondary listings of Chinese-listed companies on HKEx shows that the HK listings were priced at a significant discount to their A-Shares.

• Toyota Kirloskar, Toyota Motor‘s 89%-owned India JV, recorded a 65% rise in revenues and 240% jump in profits to around USD575 million in FY2024 following 48% increase in units sold.
• The company has continued to maintain its strong growth momentum in FY2025 YTD, with wholesale volumes up 36% YoY.
• Successful launch of rebadged Suzuki models, ramped-up production and customer-friendly initiatives have supported Toyota’s accelerated volume growth in India.

Lucror Analytics Morning Views comprise our fundamental credit analysis, opinions and trade recommendations on high yield issuers in the region, based on key company-specific developments in the past 24 hours. Our Morning Views include a section with a brief market commentary, key market indicators and a macroeconomic and corporate event calendar.

• Samvardhana Motherson International Ltd
• West China Cement
• Yuexiu Property

• In the second quarter, Urban Outfitters reported a 6% increase in total sales, reaching $1.4 billion, propelled by strong performance in its retail and wholesale segments.
• Specifically, the Anthropologie and Free People brands exhibited high single-digit retail segment comps, which nicely offset the decline at Urban Outfitters.
• Additionally, the Nuuly segment achieved significant growth with a 55% rise in average active subscribers compared to the previous year.

• We are reiterating our Buy rating and $20 price target for Lands’ End and raising our FY24 and FY25 projections after the company registered another strong upside quarter in 2Q FY24 (July) and provided further compelling evidence the focus on innovation and newness to drive higher overall top and bottom line returns is fully on track and setting up for strong near and longer term upside.
• We believe there remain multiple key catalysts at Lands’ End, from: 1) shifts in customer base to a younger, more fashion driven buyer; 2) European top line and margin expansion 3) new online marketplaces, with Nordstrom just coming online; 4) material expansion of the licensing effort, with a new domestic license for wholesale apparel, outerwear and swimwear; and 5) market share gains in the B2B business.
• When combined with a disciplined management team focused on efficiencies and operations, we view the best as still ahead for LE and reiterate our Buy rating and $20 price target.