Daily Brief Consumer: Macromill, Inc, DiDi Global, Goldlion Holdings, Lotte Shopping Co, Vishal Mega Mart, Fosun Tourism, Dongwon Industries, Abc Mart Inc, Hong Kong Television Network, Mission Produce and more

• Today post-close, activist/engagement investor Oasis Management filed a new LSR on Macromill, Inc (3978 JP) owning 7.12% of shares as of 13-Dec-2024. Reason: Defend shareholder value, propose measures to management.
• That is 7.56-7.65% of effective voting/tender rights. It’s big enough to matter. Of course, the stock has not traded below terms once since full trading started post-announcement. 
• And this was warned in CVC Offers ¥1150 for Macromill (3978) – Wrong Price, Wrong Register – Expect Activism or An Overbid. Shareholder structure REALLY matters. 

• DiDi Global (DIDI US) has begun to generate positive EBITDA after several challenging years post-IPO.  With a high degree of operating leverage, the company is poised to grow quickly.
• Didi which maintains a 70% market share in the ride-hailing industry in China is expanding into Tier 3 cities where there is a large untapped opportunity.
• The company has indicated that it wants to list in Hong Kong in 2025 providing a catalyst for share price re-rating next year.

• After Goldlion Holdings (533 HK), an apparel manufacturer/distributor, was suspended pursuant to the Takeovers Code, the obvious Offeror, by way of a Scheme, from the Tsang family (63.09% stakeholder).  
• And that it’s exactly what unfolded.  The Cancellation Price is $1.5232/share (declared final), a 24.85% premium to last price, but a punchy 71% premium to undisturbed. 
• The long stop is the 30th September 2025. This will probably be completed in less than half the time. There will be a question mark over the low price-to-book multiple. 

• At today’s close, Lotte Shopping (023530 KS) shows solid contango for a basis trade, with LS Corp (006260 KS) next; the rest are too tight or dry.
• Lotte Shopping surprised the market today, changing its dividend record date to a board-set day, wiping out the backwardation that matched its dividend yield until yesterday.
• Lotte Shopping’s move could signal other stocks changing dividend dates, causing similar dislocations. With a 7% yield and solid SSF volume, it’s prime for aggressive dividend arbitrage.

• Vishal Mega Mart (VMM) raised around US$950m in its India IPO.
• Vishal Mega Mart Limited (VMM), is a one-stop retail destination. As per the company it targets middle and lower-middle income consumers across India
• We have looked at the company’s past performance and valuations in our previous notes. In this note, we will talk about the trading dynamics.

• It is difficult for Fosun Tourism (1992 HK) to return to its peak and IPO share prices over the next two years. The buyback proposal represents a good exit opportunity.
• Net profit is unlikely to go back to FY19 level even in FY26F. The derating of the Chinese equities and Fosun Group, as well as its high gearing, are barriers.
• Its PER multiples have already aligned back to the sector average from the extremely depressed level previously. Relative to global names, it is now only at slight discounts.

• KOSPI 200 is a Korean blue-chip index that tracks the 200 largest and most-liquid names listed in the KOSPI section of the Korea Exchange (KRX).
• In this insight, we take a look at the names leading the race to become ADDs and DELs during the upcoming semiannual review in June 2025.
• We expect up to six ADDs and six DELs in the KOSPI 200 index during the June 2025 index rebal event based on the latest available data.

• The disparity between the leading footwear retailers continues to widen.
• ABC Mart is pulling so far ahead that it has the market almost to itself. 
• Chiyoda may have finally turned the corner but G-Foot may need further financial support from Aeon.

• HKTV is a prominent e-commerce platform in Hong Kong facing challenges from the pandemic and retail market.
• Founder Ricky Wong has shown a history of moonshot diversifications and strong leadership from executives like Jelly Zhou, leading to renewed optimism for the company.
• With a low valuation, potential for growth, and Ricky Wong’s history of successful ventures, HKTV could be a lucrative investment opportunity in the future.

This content is sourced through publicly available sources and has been machine generated. Information displayed is for general informational purposes only. This article was originally published 3 months ago on Value Investors Club.

• Mission Produce Produce buys, ages, packages, and distributes avocados through facilities in the US, Canada, Mexico, and the UK with around 1,000 suppliers
• Majority of avocado volume sourced from Mexico, California, and Peru, with top 10 customers accounting for 60% of sales
• Company considered low-quality, volatile business with minimal cash flow generation and projected lower earnings in F2025, overpriced based on normalized earnings estimates

This content is sourced through publicly available sources and has been machine generated. Information displayed is for general informational purposes only. This article was originally published 3 months ago on Value Investors Club.