3 interesting ideas again
Korea’s largest video game developer; UK’s top seller of proprietary data; Thailand’s largest international school
As usual, I am back with a roundup of 3 interesting ideas!
Vote for the most interesting idea. Use the poll at the end of this email. That may be the next idea I look at in detail.
Later this week, I will look deeper into ENN Energy Holdings Limited (2688 HK). This was the idea voted the most interesting last time.
NEXON Co., Ltd. (3659 JP)
About (24 Jul 2026)
Share price: JPY 2,278
Market capitalisation: JPY 1,786 bn (USD 10,901 mn)
Enterprise value (EV): JPY 970 bn (USD 5,919 mn)
Average daily volume (ADV): JPY 6 bn (USD 34 mn)
NTM P/E: 16x
Nexon is South Korea’s largest video game developer, listed in Tokyo.
Its portfolio includes MapleStory and Dungeon & Fighter (DNF).
My initial estimate suggests ~ 13% free cash flow yield on EV, an attractive premium of ~ 9% over the South Korea 10y government bond.
Under-recognised growth?
The shares sold off recently mainly over disappointing performance at DNF mobile.
In Q1’26, DNF mobile revenue declined YoY. Nexon is fixing the retention issues but expects the decline to continue into Q2’26.
DNF mobile’s short-term hiccup is overshadowing Nexon’s growth potential. In Q1’26, North American revenue surged 310% YoY. This was mainly driven by ARC Raiders released by Embark Studios, its Swedish subsidiary.
This is an important breakthrough.
Historically, Nexon relied heavily on East Asia and mobile gaming. However, ARC Raiders demonstrated a new ability to penetrate the big Western PC/console market.
Capital returns?
Nexon looked like a value trap. Cash averaged ~170% of revenue over the past 10 years.
But this is about to change.
In 2024, the new CEO took over and introduced a formal dividend policy of returning at least 33% of the previous year’s normalized operating income.
Dividend per share more than doubled from JPY 10 to JPY 23, then doubled again to JPY 45 in 2025. For 2026, Nexon plans to pay JPY 60 per share.
The company is also buying back more shares.
In total, for 2026, Nexon will return ~ 4% of its market capitalisation or ~ 8% of enterprise value.
This is likely sustainable because the company still has cash ~ 170% of revenue, no debt and a capital-light business.
Takeover?
The founding family explored a sale around 2019, attracting interest from Tencent and private equity (PE) firms like KKR and Hillhouse. However, they apparently failed to agree on price.1
In Jun 2025, Tencent was reportedly trying to revive the deal.2
I expect the founding family would eventually want to sell and diversify their wealth. The founder himself passed away in 2022. His wife and daughters inherited his majority stake but are not involved in management.
Saudi Arabia’s Public Investment Fund (PIF) owns ~11% through a subsidiary (Ayar First Investment Company). In 2025, PIF agreed to acquire Electronic Arts Inc. (EA US), another video game developer.3
Factors to focus on
Probability of takeover and timing? Any potential regulatory issues?
More details on the growth potential from Embark Studios
Probability and timing of recovery in DNF mobile revenue
YouGov plc (YOU LN)
About (24 Jul 2026)
Share price: GBP 2.41
Market capitalisation: GBP 282 mn (USD 376 mn)
Enterprise value (EV): GBP 459 mn (USD 612 mn)
Average daily volume (ADV): GBP 2 mn (USD 2 mn)
NTM P/E: 9x
YOU sells proprietary market research and data analytics.
Its flagship product is the YouGov BrandIndex. This tracks daily brand health based on responses from over 30 million panel members across 55+ markets globally.
YOU also offers customised research.
Anthropic commissioned the company to survey 50,000 Americans, spanning every state, to understand what people think about AI, how it should be built, how it should be used, and what they are worried about. YOU’s research was used to inform Anthropic’s first Super Bowl campaign and make decisions on incorporating advertising into their tools.
Good business, temporary headwinds?
The shares sold off this year.
The sell-off was mainly driven by AI fears and a Mar 2026 profit warning tied to costly investments in its Shopper division.
It seems to me that AI is not a significant threat to YOU. YOU is in the business of collecting data from the public, and processing and selling these proprietary data.
The Shopper division recruits households across Europe to record their everyday shopping habits and sells that data to manufacturers and retailers.
In H1’26, Shopper’s adjusted operating profit collapsed from GBP 14 mn to GBP 7 mn. The company trimmed its 2026 adjusted operating profit guidance to GBP 52 mn - GBP 56 mn from GBP 61 mn.
This is mainly because of a substantial GBP 6 mn incremental investment in Shopper to introduce semi-passive/passive data collection and upgrade European panels.
During the Mar 2026 earnings call, management reiterated their confidence in Shopper and that the headwinds are only temporary.
They spent GBP 272 mn to buy Shopper in 2024. Today, the entire company is trading at only GBP 282 mn. Because of this severe undervaluation, shareholders are urging them to unlock the hidden value by selling Shopper.
This is what the Board is exploring.
Capital returns?
YOU may increase capital returns.
In Mar 2026, the Board announced, “Given dislocation between our confidence in YouGov’s intrinsic value and the current market valuation, the Board expects to launch a share buyback programme in place of the annual dividend.”4
YOU is also refinancing its bank facilities to provide greater flexibility, including to support the buyback.
If the company decides to sell Shopper, there is a good chance of higher capital returns too.
Activist pushing for sale
Gatemore, an activist investor, is pushing the Board to sell the company.
“We believe that YouGov presents a compelling opportunity for a financial sponsor or a strategic buyer. With the right management team and strategy, an acquirer could pay a takeover price in excess of GBP 7.00 per share”5
Gatemore first disclosed its ~1% stake in Nov 2024. Since then, Gatemore has increased its stake to just under 2.6%.6
There are increasing signs the Board is taking Gatemore’s proposals seriously.
Besides the share buyback, the Board has reduced the number of non-executive directors down to 4.
“I also want the Board with more of a private equity mindset” said newly appointed Chairman, Ian Griffiths. He was previously a senior advisor to Bain Capital, a PE firm.
Sky News recently reported that Wayne Levings, a former boss of market research firm Kantar’s operations in the Americas, has been shortlisted to take over from YOU’s co-founder and interim CEO, Stephan Shakespeare.7
Wayne helped lead Kantar through its spin-out from parent company WPP and its sale to Bain Capital. He oversaw the corporate transaction, large-scale post-merger integrations, and organizational redesigns.
Factors to focus on
More details on the incremental investment in Shopper of GBP 6 mn. What is the likelihood of a favourable return on investment?
Probability and timing in a recovery of the Shopper division?
More data on any potential threat from AI?
SISB Public Company Limited (SISB TB)
About (24 Jul 2026)
Share price: THB 9.65
Market capitalisation: THB 9,071 mn (USD 269 mn)
Enterprise value (EV): THB 7,908 mn (USD 235 mn)
Average daily volume (ADV): THB 29 mn (USD 1 mn)
NTM P/E: 10x
In Apr 2026, I published my thesis - SISB: Why I see an opportunity in Thailand’s largest international school
The share price is now lower by ~7%. But nothing has changed in my thesis.
Under-recognised growth. Because of Thailand’s declining fertility rate, the consensus seems to be expecting flat or declining student numbers.
But there is a good chance international school enrollment will grow. As parents have fewer children, they spend more per child. This means an increasing population of international school students.
Capital returns. SISB will likely increase capital returns as capex declines. Historically, capital returns were constrained because SISB was building out multiple new campuses within a short time.
SISB’s campus development plan suggests the rapid and intense build-up phase is likely over. Reflecting this, dividends nearly doubled in 2024, with the payout ratio rising from 23% in 2023 to 33% in 2024.
SISB increased its dividends again in 2025. Dividends rose by +36%, corresponding to a higher dividend payout ratio of 41%.
Vote for the best idea
Vote for the most interesting idea. That may be the next idea I analyse in detail.
Coming up next
I will look deeper into ENN Energy Holdings Limited (2688 HK) this week. This was the idea you voted the most interesting in my previous email.
Last month, the major shareholder shelved plans to privatise ENN Energy because of regulatory delays. Offer was HKD 80 per share. The shares now trade at ~ HKD 42.
The shareholder can try privatisation again from Jun 2027 onwards.
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Published by Andrew Wong, ACA, CFA
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PETS is the UK’s top pet retailer and vet operator. The potential long thesis is: Hidden asset; under-recognised growth; good business, temporary headwinds.
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Disclaimer
This publication is for informational, educational, and entertainment purposes only and does not constitute financial, investment, legal, or tax advice. The content herein is a record of my personal research and investment process, and all analysis, forecasts, and opinions expressed are solely my own.
I make no representation or warranty, express or implied, as to the accuracy, completeness, or timeliness of the information provided. The stock market is highly volatile, and my forecasts, estimates, and assumptions may prove incorrect.
I am not acting as your financial advisor or fiduciary. You should not rely on any information in this publication to make investment decisions. Under no circumstances will I be held liable for any direct, indirect, or consequential losses or damages arising from your reliance on the content of this publication.
At the time of publication, I am long SISB and YOU. I do not hold any positions in 3659, either long or short. I may change my views, predictions, or personal portfolio positioning at any time without notice.