Daily Brief Consumer: Alibaba, United Arrows, Mars Group Holdings, Life Time Group Holdings, AO World PLC, Tesla , Yum China Holdings , LOTTE Corporation, Marriott International, Bombay Burmah Trading and more

• In F2Q26, pro forma revenue increased by 18% YoY excluding two disposals.
• It was successful that the company rebranded its food delivery business.
• However, the rebranding brought significant sales and marketing expenses in F2Q26.

• United Arrows is beginning to flex its market power by launching more new brands rather than just iterations of its eponymous name
• A key focus is a move to exploit the massive demand for Korean brands in Japan with Korean licenses for Nice Weather and Osoi.
• More licenses are expected in the near future as the select shop retailer looks to take more share of the premium market.

• Mars Group Holdings exhibits a compelling value and dividend profile, underpinned by a robust history of financial growth and a strong net cash position, making it attractive for income-oriented investors.
• The company’s primary exposure to the Japanese pachinko industry presents a significant headwind, as the market is in a long-term structural decline due to demographic shifts, regulatory pressures, and competition from other entertainment forms.
• A recent downturn in quarterly performance (FY1Q26) following years of strong growth introduces uncertainty, making near-term earnings and regulatory developments critical catalysts to monitor.

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• Life Time Group Holdings Inc. reported its third-quarter 2025 financial results, showcasing significant growth across several metrics, indicative of effective strategic execution and market positioning.
• Total revenue rose by 12.9% to $783 million, supported by an increase in average monthly dues per member and robust comparable center revenue, which grew 10.6% over the prior year.
• Moreover, membership remained stable with 841,000 center memberships and total memberships reaching 891,000, in line with the company’s expectations.

• AO’s impressive H126 results show strategic, customer-focussed progress.
• 14% revenue growth reflects market share gains, and Adj. PBT rose 10% despite payroll cost headwinds.
• AO’s differentiated 5* membership programme and sustained 5* customer service underpin its success, whilst improved profit trends in mobile and musicMagpie contribute to the positive outlook.

• Tesla’s latest earnings and strategic updates present a revealing picture of a company navigating an increasingly complex path.
• The electric vehicle and clean energy giant is caught between near-term financial pressure and long-term ambitions rooted in AI, autonomy, and robotics.
• While recent quarterly results missed Wall Street’s expectations—adjusted earnings came in at 40 cents per share and revenue dropped 12% year-over-year to $22.5 billion—investor focus has shifted beyond EV sales.

• Yum China Holdings Inc., a licensee of Yum!
• Brands in China, presented mixed results in the third quarter of 2025.
• On a positive note, Yum China reported a record $400 million in adjusted operating profit, marking an 8% increase year-over-year.

• Despite the higher probability of the cancellation of treasury shares by Lotte Corp, we believe that its worsening balance sheet is a greater concern. 
• There does not appear to be a rapid business turnaround of its major affiliates including Lotte Chemical. As a result, we are concerned about further credit downgrades in 2026/2027.
• Our base case NAV valuation of Lotte Corp is market cap of 2.2 trillion won or target price of 20,918 won per share, which is 29% lower than current price.

• Marriott International’s third-quarter 2025 results demonstrate a mixed performance with several key indicators reflecting the broader intricacies of the global hospitality market.
• On the positive side, Marriott reported financial outcomes that exceeded previous expectations, driven largely by a solid development pipeline and significant portfolio growth.
• The company expanded its room repertoire by 4.7% year-over-year, reaching over 1.75 million rooms across more than 9,700 properties worldwide.

• Bombay Burmah Trading Corporation (BBTC) is a diversified holding company of the Wadia Group, with its intrinsic value primarily derived from its ~50.5% stake in the fast-moving consumer goods (FMCG) major, Britannia Industries.
• The company trades at a significant and persistent discount to the market value of its underlying assets, offering potential for substantial value unlocking. However, this discount is perpetuated by the underperformance of its standalone businesses and concerns over capital allocation.
• BBTC’s standalone operations, mainly in tea plantations and auto-electric components, face industry-specific headwinds and have historically yielded modest returns, weighing on the consolidated financial performance and investor sentiment.

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