Daily Brief Consumer: LG Electronics India, ABC Mart, Fast Retailing, Yoshinoya Holdings, TSE Tokyo Price Index TOPIX, Betterware de Mexico Sab de CV, ATRenew , Hang Seng Index, Aurrigo International , Veru and more

• There has an excellent demand for the LG Electronics India (LGEI) IPO among the institutional investors which sets the stage for a positive rally once it starts trading.
• LGEI raised 4.43 trillion rupees in subscription funds during the general subscription period from 7 to 9 October. This amount is approximately 40 times the initial public offering (IPO) target.
• Our base case valuation is target price of 1,514 INR which is 33% higher than the high end of the IPO price range.

• Context: The ABC Mart (2670 JP) vs. Fast Retailing (9983 JP) price-ratio has deviated more than three standard deviations from its one-year average, presenting a potential relative value opportunity.
• Highlights: Going long ABC Mart (2670 JP) and short Fast Retailing (9983 JP) targets an 11% return. Both companies reported very recently.
• 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.

• Tadashi Yanai has finally achieved one of his many long-term ambitions: surpassing ¥1 trillion in sales in the home market. 
• This, after exceeding ¥3 trillion globally for the first time but his goal of ¥10 trillion remains outstanding.  Whether a mostly single-brand company can achieve such volume is debatable.
• Yanai is rebuilding GU in the hopes of creating a second brand – while at last admitting failure with his old French acquisitions.

• FY02/26 forecast revised upward: revenue JPY225.0bn (+9.8% YoY), operating profit JPY8.2bn (+12.2% YoY), net income JPY4.8bn (+26.2% YoY).
• 1H sales rose 11.3% YoY, driven by product initiatives, new stores, and price revisions; profit margin improved.
• Overseas sales declined 1.7% YoY due to exchange rates; segment profit fell 4.8% YoY from higher labor costs.

• Even as more companies shifted to cash flow-focused management, their cash reserves remained stubbornly high, and few announced cash allocation policies. Finally, cash reserves began to decline—driven by TSE’s request.
• ROE and P/B of companies that disclosed in response to TSE’s request haven’t improved. Consequently, the strategic intent behind share buybacks appears weak and isn’t being well received by investors.
• The decision to veer away from increasing cash reserves is the first step. How long will it take before the next move emerges to improve capital profitability and generate value?

• We are reiterating our Buy rating, $22.50 price target and projections for Betterware de Mexico after reviewing the October catalog.
• With October another month of material YoY SKU declines and a focus on higher overall pricing, we believe it is increasingly obvious that Betterware management is focusing the overall business on driving higher returns.
• Further, even against materially tougher comparisons, the overall level of discounting has continued to tick down, which speaks to limited need to clear goods.

Key points (machine generated)

• ATRenew’s market capitalization has dropped 79% since its IPO in mid-2021 due to factors like the pandemic and economic slowdown.
• The company’s shift to direct retailing of refurbished devices has led to skepticism about profitability and minimal analyst coverage.
• Despite challenges, ATRenew shows potential for growth with an expected CAGR of 23.4% over the next four years.

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• Hong Kong equities erased last week’s gains, with further losses on Monday likely after Trump’s social media post Friday morning.
• Weakness was not widespread, though there was a sharp reversal in breadth week over week.
• Option volumes and ratios suggest there’s little concern in the market at this point.

• On the 29 September, the Interims to June 2025 were reported by this designer of electric automated transport technology and software used by the Automotive industry and airports.
• Revenue was 10% lower at £3.5m with a divergence of performance for the two divisions. Revenue at the automotive division (specialist components for electric vehicles) was affected by production volatility, while rising star the Autonomous division revenues increased 41% to £1.1m.
• The increase is being driven by trial deployments and contracts progressing to larger orders. 

• On our latest WTR Healthcare Happenings podcast, we welcomed back Mitch Steiner, CEO of Veru, Inc. (NASDAQ: VERU) to fill us in on the company’s latest significant developments and progress made since his previous appearance on our podcast in February 2025.
• Having divested its sexual health business for $18 million last year, Veru has pivoted toward the burgeoning obesity market with its lead drug candidate enobosarm, which selectively causes fat loss, while preserving lean mass in patients taking GLP-1 for weight loss.
• The state of the GLP-1 market for obesity. Steiner offered his take on the latest trends in the rapidly evolving GLP-1 market for weight loss.