Daily Brief Consumer: SHEIN Global Holdings, Fast Retailing, Bermaz Auto, Jiangsu Slender West Lake Culture and Tourism, Nichirei Corp, Seven & I Holdings, QAF, Vince Holding, Yadea and more

• The Hang Seng Internet & IT (HSIII) index represents the top 30 stocks related to internet and information technology businesses listed in Hong Kong (HKEX).
• In this insight, we take a look at the December 2026 index capping flows.
• We have also presented our index change expectations for the next semiannual index review which will take place in March 2027.

• 4Q OP of ¥128.8bn was 6% below our ¥137.7bn but in line with consensus; International SG&A and a GU loss drove the miss.
• FY8/27 guide: OP ¥830bn (+12% YoY), in line with consensus ¥833bn and 2.5% below our ¥851bn; payout raised to 50%.
• Forecasts and ¥69,000 target unchanged; 8% downside after a 9% run-up into results; maintain Neutral.

• After a close to a 40% 1 year share price performance, the Bermaz Auto (BAUTO MK) share price could look a little expensive. 
• Valuations are not too undemanding, and the near-term catalysts seem to be working, and are margins accretive as well. 
• For dividend, start accumulating, while for capital appreciation, let’s wait for the next quarter to determine whether the recent spike is not a fluke. 

• Jiangsu Slender West Lake Culture and Tourism Co., Ltd. is a state-owned water-based tourism service provider in Yangzhou, Jiangsu Province.
• The company ranked second in Jiangsu’s water-based tourism market in 2025 with 18.5% share. It holds exclusive operation rights for water sightseeing boat services until 2035.
• The company reported RMB141,196 thousand revenue and RMB51,990 thousand net profit for 2025, though gross profit margin and net profit margin decreased.

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• Context: The Kikkoman (2801 JP) vs. Nichirei (2871 JP) price ratio has deviated more than two standard deviations from its one-year average, presenting a potential relative value opportunity.
• Highlight: Going long Nichirei (2871 JP) and short Kikkoman (2801 JP) targets a 5% return.
• Why Read: Essential for quantitative traders seeking mean-reversion opportunities, with detailed execution framework, risk management protocols, and historical simulation showing the statistical basis for this relative value play.

• Seven Eleven is turning to apparel to boost same-store sales growth as it falls behind rivals.  
• Hello Kitty aside, its hands-off tie-up with And ST looks poorly suited to the very specific type of compact, impulse-driven conbini merchandising needed here.
• FamilyMart got it right and how has a ¥20 billion clothing line aiming for ¥100 billion – but even then, FamilyMart is still struggling to keep footfall positive.

• QAF stock has been steady as investors look at its steady dividend yield, 5.3%
• Stock is being priced as a steady dividend yield play, which we think is wrong
• We don’t see much upside in the stock and see better value in consumer plays in the region

• We are reiterating our Buy rating, raising our price target for VNCE to $16 (from $9) and maintaining our conservative projections after meeting with Vince Holding management at their New York City showroom.
• We believe the core Vince operations remain primed for continued top and bottom line growth, driven by great looks, premium pricing and an affluent customer base who will pay full price for the right lifestyle driven offerings.
• Further, we are now even more enthused about the potential for the recent October’s Very Own (“OVO”) transaction to begin to move at a quicker pace than we initially projected, with key announcements (new wholesale relationships, retail stores and category and product expansion) on tap for 2026, with a key impact for FY27.

• Yadea (1585 HK) result was not great, and its share price suffered as a result. However, AIMA Technology Group (603529 CH) results were much worse than Yadea. 
• The industry is going through consolidation, so whichever company has a stronger war chest should be better off.  
• Yadea’s valuation is near a historical low, but it has great support from the 6% dividend yield. Expect the share price to diverge from Aima Tech.