Daily Brief Consumer: Mandom Corp, Shinsegae Food, BYD, Home Depot Inc, Tencent Music, Hikari Tsushin, OPAP SA, PDD Holdings, JD.com and more

• Mandom Corp (4917 JP) has disclosed that it has received a non-binding letter of intent from a third-party candidate, with purchase prices exceeding the CVC JPY2,520 offer.
• The Nikkei identifies the bidder as KKR and states that the offer is over JPY2,800, a 11.1% premium to the CVC offer. KKR want a Board-recommended offer.
• CVC has extended the close of its offer to 5 January 2026, but will need to revise terms as its irrevocables (particularly Murakami and Hibiki) can switch to KKR.

• The Nikkei came out post-close with an article saying that KKR had offered “more than 10%” (“higher than ¥2,800”) for Mandom Corp (4917 JP) vs the revised ¥2,520 CVC Bid.
• Mandom announced a revision to the Opinion Statement to include some but not a lot of details. That triggers an extension to the deal, closing 5 Jan vs 18 Dec.
• The language in the Mandom release is kind of interesting. This price gets us closer, but it may not be high enough.

• On 15 December, it was announced that E Mart Inc (139480 KS) is conducting a tender offer and delisting of Shinsegae Food (031440 KS).
• Tender offer price is 48,120 won (20% higher than the closing price on 12 December).
• Shinsegae Food is currently trading at very low valuations. It is trading at P/E of 5.3x, P/B of 0.4x, and EV/EBITDA of 1.5x based on 2026 consensus earnings estimates.

• BYD (1211 HK) has been downtrending for a while, a speculative LONG positioning starts to become attractive for some, but according to our model the short-term upside is limited.
• The stock is pulling back this week, second consecutive week down, this insight will try to identify price zones where to buy the stock and where to exit / hedge.
• BYD could be held past our suggested profit target at 101.8 (in case the next bear rally it’s not just a bear-rally), but time-wise it’s a 2 weeks rally, tops.

• The Home Depot’s third quarter earnings report for 2025 presents a mixed picture, with both positive developments and areas of concern.
• The company reported total sales of $41.4 billion, a 2.8% increase from the same period last year, and a slight increase in comp sales by 0.2% in the U.S. However, adjusted diluted earnings per share decreased slightly to $3.74 from $3.78 a year ago, indicating some pressure on profitability.
• One of the key factors adversely affecting Home Depot’s performance was the lack of storm activity during the quarter, which traditionally boosts demand for products like roofing and power generation.

• Tencent Music Entertainment Group reported strong third-quarter results in 2025, driven by significant growth in its online music business.
• Total revenues grew by 21% year-over-year to RMB 8.5 billion, with online music revenues increasing by over 27% to RMB 7 billion.
• The growth in music subscription revenues was notable, with a 70% year-on-year increase to RMB 4.5 billion, propelled by a steady rise in paying users and enhancements in ARPPU, which reached RMB 11.9 compared to RMB 10.8 from the previous year.

• Hikari Tsushin operates a diversified business model centered on recurring revenue streams from corporate and individual customers, with a strong focus on telecommunications, office automation, and energy services.
• The company has demonstrated a robust long-term growth track record, evidenced by double-digit compound annual growth in net income, EPS, and dividends over the past decade, alongside a strategic focus on shareholder returns through consistent dividend increases and buybacks.
• While revenue growth is solid, recent profitability has been hampered by rising Selling, General & Administrative (SG&A) expenses, leading to flat operating profit despite record top-line performance. This highlights a key challenge in managing costs amidst expansion.

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OPAP delivered a strong set of results in Q325, with broad-based operational momentum across its portfolio and continued progress in its digital transformation. OPAP was also successful in retaining the concession for the State Lotteries with a consideration in line with our estimate, and a lower minimum annual payment of €20m. OPAP’s Q325 performance prompts us to upgrade our FY25 EBITDA estimate by c 2%, with conservatism baked in given the challenging comparative from Q424. News in the coming quarters will be dominated by the proposed business combination with Allwyn.

• PDD Holdings Inc. has presented a performance in the third quarter of 2025 that reflects the challenges and opportunities in the evolving e-commerce landscape.
• The company reported revenues of RMB 108.3 billion, marking a 9% year-over-year increase, fueled by growth in online marketing services and transaction revenues.
• However, growth remains pressured amidst an intensely competitive environment in the e-commerce sector.

• JD.com’s third-quarter 2025 earnings indicate a blend of moderate growth and inherent challenges.
• The company reported a 15% year-on-year increase in total revenues, maintaining a double-digit growth pattern.
• This uptick was driven by gains in general merchandise and marketplace and marketing revenues.