Daily Brief Consumer: Light & Wonder , China Shengmu Organic Milk, Alibaba, Coca Cola Bottling Co. Consolidated, Sprouts Farmers Market, Eastroc Beverage Group, Hikari Tsushin, Ngk Spark Plug, FSN E-Commerce Ventures (Nykaa) and more

• Light & Wonder (LNW US) will be delisted at the close of tomorrow US time (two trading days left) and shares converted to Australian CDIs.
• After studying the matter we have amended our assumptions on how flows work. More net selling than expected in November, irksome uncertainy in December, more buyback flows in the meantime.
• The stock was higher on earnings in Australia, skipped a day, then skipped another day, then jumped in the US yesterday. 

• On the 30th October, China Modern Dairy (1117 HK) (CMD) entered into a conditional SPA to acquire a 1.28% stake in raw milk producer China Shengmu Organic Milk (1432 HK) (CSM). 
• CMD currently holds 29.99% in CSM. Should the SPA complete, CMD clears 30% and will be obligated to make an Offer for all shares not held. 
• The Offer Price will be A$0.35/share, a 14.75% premium to undisturbed. The Offer will be conditional on a 50% acceptance hurdle. 

• Alibaba (9988 HK) and JD.com (9618 HK) often see heightened volatility following Singles’ Day (11 November), though performance varies by year.
• Alibaba’s post-event returns are mixed, averaging nearly twice its normal four-day move, while JD.com has shown stronger and more consistent gains.
• Option markets imply elevated short-term volatility—especially for JD.com—with potential trading opportunities around the 14 November expiry.

• Introducing the all new Adobe Acrobat Studio with AI powered PDF spaces
• Fairlife milk, a phenomenon in the dairy industry, known for being healthier and having longer shelf life
• Protein craze in the beverage industry, highlighted by Fairlife and other protein drinks at Starbucks

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• On 30 October, China Modern Dairy (1117 HK) announced a conditional share purchase agreement to acquire 1.28% of outstanding China Shengmu Organic Milk (1432 HK) shares at HK$0.35 per share. 
• The SPA is conditional on SAMR and independent CMD shareholder approval. SPA completion will trigger a mandatory conditional cash offer at HK$0.35 per share.
• Post-Completion, CMD and concert parties will hold a 31.26% stake. The offer is conditional on a 50% minimum acceptance condition, which is problematic as the offer is not particularly attractive.  

• Sprouts Farmers Market released a set of financial results for the third quarter of 2025 that presents a mixed picture for current and potential investors.
• The company reported total sales of $2.2 billion, marking a 13% increase compared to the same quarter in the prior year.
• Comparable store sales rose by 5.9%, indicating growth despite challenging market conditions.

• Based on 25Q3 results, the biggest problem lies in the continuous slowdown of its core business (energy beverages), which has led to the overall performance slightly falling short of expectations.
• The upper limit of Eastroc Super Drink could be around RMB23-27 billion. Since energy beverages’ annual revenue has approached RMB16 billion, it’s becoming increasingly difficult to achieve the remaining growth.
• The future growth of Eastroc may not support the current valuation. A more comfortable valuation range could be P/E of 20-25x, which will provide investors with sufficient margin of safety.

• The company reported record highs for 1H with revenue of JPY361.7bn and profit attributable to owners of JPY70.3bn.
• Effective Q1 FY03/25, the company adopted a new segmentation, now reporting seven segments, including Electricity and Gas.
• Dividend forecasts for FY03/26 were raised to JPY736 per share, reflecting solid earnings and outlook adjustments.

• NGK Spark Plug, now operating as Niterra, is the global leader in spark plugs and automotive sensors, commanding a dominant market share. However, the company faces a significant long-term structural headwind from the global transition to electric vehicles (EVs), which do not utilize its core products.
• Management is actively pursuing a diversification strategy to mitigate EV risk, leveraging its core competency in ceramics to expand into higher-growth areas. Key focus areas include components for semiconductor manufacturing equipment, medical products, and next-generation technologies like solid-state batteries.
• The company exhibits strong financial performance with consistent revenue growth, robust profitability, and significant cash flow generation. Valuation appears attractive relative to peers, but the market is pricing in the long-term uncertainty associated with the decline of the internal combustion engine (ICE).

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• Nykaa delivered its strongest quarter in two years in Q2 FY26, with GMV up 30% YoY and EBITDA margins expanding 125 bps to 6.8%.
• The results confirm that Nykaa’s profitability driven by owned brands, omnichannel integration, and AI-enabled personalization is firmly turning.
• Fashion’s near-term breakeven and continued premiumization in beauty could re-rate Nykaa as a sustainable compounding story.