Daily Brief Consumer: SHEIN Global Holdings, Ather Energy, Formosa Prosonic Inds, Amos Food Group, Bob’s Discount Furniture, Sheng Siong, Denso Corp, DoorDash , Genuine Parts Co and more

• Shein is actively preparing for an IPO on the Hong Kong Stock Exchange, tentatively scheduled for the second half of 2026.
• The company is targeting a listing valuation of US$40 billion to US$50 billion, representing a significant haircut from its historical peak valuations.
• I think the company is likely to face tough challenges in in reaching valuation at even lower end of its target valuation range. 

• SHEIN, a global online fashion and lifestyle retailer, has passed the HKEX listing hearing. GS, MS and JPM are joint sponsors.
• In our previous note, we briefly looked at the company’s business, financials and investor backing.
• In this note, we compare the company with listed peers from financial, operating and valuation perspectives.

• Ather Energy, an Indian electric two-wheeler manufacturer, delivered its first positive EBITDA, 89% revenue growth and a 71% reduction in net loss despite severe commodity inflation and supply constraints.
• Demand now exceeds production, with three-day dealer inventory, two-month waiting periods and 13,000-15,000 unrealised monthly sales, making the Auric ramp and EL launch critical for FY27 growth.
• Ather’s pricing power, 94% software attach rate and INR 2,500 crore funding strengthen the outlook, but execution, Auric capacity ramp-up and commodity-cost control will determine sustainable profitability.

• Formosa Prosonic announced excellent 2nd quarter numbers. Revenue up 66% y-on-y basis
• Gross Profit Margin fell from 15% to 10%. Despite significant cost control PAT fell from 14%  to 8%
• Excess Cash per share in the company books remains at 56 sens.

• Amos Food, a Chinese sugar confectionery maker, has filed its prospectus with the HKEX. BOA, CMS, and JPM are the joint sponsors.
• We look at the company’s core segments: Amos, Biobor and third-party brands.
• We think the deal is not interesting. Revenue growth and margin expansion prospects are outweighed by large concentration risk, geopolitical risk and weak consumer-sector sentiment.

• Volatile aftermarket. Shares rallied early before falling more than 40%, but have recovered to within striking distance of the IPO price.
• Execution improving. Better-than-expected adjusted earnings and reaffirmed full-year guidance restored investor confidence following a difficult spring.
• Sponsor overhang remains. Bain Capital’s significant ownership could create future follow-on offering opportunities as it monetizes its investment.

• 2Q FY2026 revenue of S$402.6m (+11.3% YoY) and net profit of S$37.6m (+10.2%); 1H revenue S$855.4m (+11.9%) on 16 new stores and +3.3% SSSG.
• Gross margin hit a record 32.8% in 2Q; network reached 97 stores; interim DPS raised 17.2% to 3.75 cents despite the S$520m Sungei Kadut build.
• At S$3.35, SSG trades at 30.3x FY2026e P/E and 23.0x EV/EBITDA; the premium reflects 27.1% ROE and net cash of S$402.3m, but upside now looks capped.

• As the world’s second-largest automotive components supplier, Denso is strategically positioned to capitalize on the industry’s shift towards electrification and autonomous driving. Its deep-rooted relationship with Toyota provides a stable foundation, while its expanding technological capabilities in semiconductors and software are key growth drivers.
• The company is navigating the transition from legacy internal combustion engine (ICE) components to future-focused products for electric vehicles (EVs) and advanced driver-assistance systems (ADAS). This involves significant R&D investment and a strategic pivot towards higher-margin, technology-intensive systems.
• While facing headwinds from the cyclical nature of the automotive industry, persistent margin pressures, and intense global competition, Denso’s strong financial position, global manufacturing footprint, and commitment to innovation provide a resilient platform for long-term value creation.

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• DoorDash is preparing to take delivery beyond cars, bicycles, and scooters by developing its own drones and the infrastructure required to operate them.
• After years of testing aerial delivery through partners such as Alphabet’s Wing and Flytrex, the company has secured an important Federal Aviation Administration certification for commercial drone operations.
• DoorDash is also developing routing software, merchant handoff locations, remote operating systems, and autonomous ground vehicles such as Dot.

• Genuine Parts Company is undergoing a significant strategic transformation by separating its Automotive and Industrial segments into two independent public companies, a move expected to unlock shareholder value and enhance focus.
• The company’s vast distribution network, particularly through its NAPA brand, provides a significant competitive advantage in the stable, non-discretionary automotive aftermarket, which primarily serves the professional ‘do-it-for-me’ segment.
• Despite recent revenue growth, the company faces challenges including margin pressure in its North American Automotive segment, macroeconomic headwinds, and execution risks associated with the planned business separation.

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