Daily Brief Consumer: Dongfeng Motor, Mandom Corp, LG Electronics India, PDD Holdings, Milky Mist Dairy Food Ltd, Kalyan Jewellers, FineToday Holdings Co Ltd, G8 Education and more

• On the 22nd August 2025, SOE-backed Dongfeng Motor (489 HK) announced a privatisation; together with a concurrent listing of its EV arm, VOYAH.
• Dongfeng has now released the application proof for VOYAH, with finances through to July 2025. Of interest, VOYAH is in the black for 7M25.
• The market is implying a price-to-trailing-sales of 1.5x for VOYAH versus the basket average of 2.1x.

• Four weeks ago, CVC announced a family-led MBO of hair care and cosmetics company Mandom Corp (4917 JP) at a price which was decidedly too light, well below company plans.
• One activist wrote a letter clearly calling them out for accepting a low-ball price well below the Medium Term Management Plan target. Another bought a lot of shares. 
• On 25 September, Murakami-san and affiliates reported an 8.39% position. Seven trading days later it is 16.59% and the shares are up small from my last piece + 1. 

• LG Electronics (066570 KS) is looking to raise US$1.3bn via part-selling its stake in LG Electronics India.
• LG Electronics India (LGEI) was the market leader in India in major home appliances and consumer electronics (excluding mobile phones) in terms of volume, as per Redseer Report.
• We have looked at the company’s past performance and undertaken a peer comparison in our previous note. In this note, we talk about valuations.

• LG Electronics India (123D IN)/LGEIL, a subsidiary of LG Electronics (066570 KS), aims to raise up to US$1.3 billion through a secondary offering.
• I previously discussed the IPO in LG Electronics India IPO: The Bull Case, LG Electronics India IPO: The Bear Case and LG Electronics India IPO: Updates Support the Bull Case. 
• My valuation analysis suggests that the IPO price range of Rs1,080-1,140 per share is attractive. Therefore, I would participate in the IPO.

• PDD Holdings, Inc.’s second-quarter 2025 financial results reflect a strategic focus on long-term value creation rather than short-term financial gains.
• The company’s revenue for the quarter increased by 7% year-over-year to RMB 104 billion, driven primarily by online marketing services and transaction services.
• However, operating profit experienced a significant decline of 21% year-over-year, reflecting the company’s substantial investments in enhancing its platform ecosystem through its RMB 100 billion support program aimed at bolstering merchant capabilities and fostering sustainable growth.

• Milky Mist Dairy Food Ltd (1023949D IN) is looking to raise about US$237m in its upcoming India IPO.
• Milky Mist Dairy Food Ltd (MMDFL) is a value-added dairy and packaged food manufacturer focused on premium products such as paneer, cheese, curd.
• In this note, we look at the company’s past performance.

• Kalyan is aggressively expanding its non-South presence and scaling its omni-channel platform, Candere, driven by an asset-light, franchisee-owned, company-operated (FOCO) model.
• The FOCO model and a higher margin studded-jewellery mix in new markets are structurally improving return ratios and freeing up capital for aggressive, low-risk store rollouts.
• With significant deleveraging and a clear path to enhanced profitability, the fundamental story remains intact, nudging investors to look beyond cyclical factors and towards execution consistency.

• FineToday Holdings Co Ltd (289A JP), a Japanese personal care business, is seeking to raise US$286 million. It previously pulled an IPO to raise US$500 million in December 2024.  
• FineToday has four product categories: Hair care, Skin care, Body care and others. Hair care is the largest category, accounting for 49.0% of 1H25 revenue.
• The investment case rests on top-tier revenue growth, top-quartile profitability, peer-leading FCF generation and manageable leverage. 

• LG Electronics (066570 KS)  is selling 15% stake in Indian subsidiary LG Electronics India (123D IN). Interestingly, the market cap of Indian subsidiary shall now be equal to Korean parent
• Indian listed markets have hitherto offered selective consumer appliance plays. LGEI will become the largest of them all, offering access to the structural growth of consumer appliances in India
• IPO is priced attractively at 26-30x 1yr forward earnings. Near-term performance to benefit from recently announced indirect tax cuts as well as rate cuts. Must Apply

• G8 Education is Australia’s largest publicly listed provider of early childhood education and care (ECEC), operating over 400 centres. The company is poised to benefit from favorable demographic trends and increasing government support for the sector.
• Recent financial performance shows consistent revenue and net income growth, driven by improved occupancy rates and disciplined cost management. The company has also demonstrated a commitment to shareholder returns through progressively higher dividends.
• Key strategic priorities include enhancing educational quality, improving workforce retention, and optimizing the centre network. However, the company faces significant risks from potential changes in government childcare subsidies, intense industry competition, and challenges in attracting and retaining qualified staff.

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