Daily Brief Consumer: Orion Breweries, LG Electronics India, Suzuki Motor, FineToday Holdings, Sa Sa International Hldgs, TSE Tokyo Price Index TOPIX, Midea Group, SGX Rubber Future TSR20, The Keepers Holdings, Phu Nhuan Jewelry and more

• Quiddity’s “Who is Ready” series of insights aims to objectively identify names listed on the Tokyo Stock Exchange that are potential additions to the TOPIX Index in future.
• Section-Transfer name Japan Business Systems (5036 JP) is expected to be included in the TOPIX index at the end of October 2025.
• New listings Orion Breweries (409A JP) and Tekscend Photomask (429A JP) are expected to be included in TOPIX at the end of October 2025 and November 2025 respectively.

• LG Electronics India (123D IN) much awaited INR 116.1 bn IPO is set to open for subscription this week. It’s a complete OFS by the Korean Parent.
• While LG is the market leader, there are huge litigation liabilities ~74% of net-worth which could pose a serious threat to the financials, with particular attention to AMP spends proceedings.
• We also find it disturbing to note that the parent has taken out 175% of the free cash flows in FY23 and FY24 as interim dividends.

• Suzuki Motor (7269 JP) had a disappointing Q1FY2025 driven by lower sales in India & Europe and impact of raw material cost and foreign exchange rates.
• However, we expect business performance should revive in H2FY2025 driven by booster shot from India.
• We remain positive on long term prospects of the company driven by its maiden EV launch and long term growth plans though near term valuation appears to be full.

• FineToday Holdings (420A JP) (FT) is planning to raise around US$280m via selling a mix of primary and secondary shares.
• FineToday (FT) is a beauty and personal care company in Asia offering a range of products, including hair care, skin care and body care products.
• In our previous note, we had looked at its past performance. In this note, we will talk about the updates from its most recent filings.

• Sa Sa International Hldgs (178 HK)‘s 1.63x P/B is near-trough level, but the recovery in earnings in FY26 (+56.4%) and improving industry figures suggest earnings have bottomed. 
• Its 2Q FY26 turnover grew 8.4%, accelerating from 4.7% in 1Q and -9.7% in FY25. The 1H turnover equals 49.3% of FY26F (vs. 47.2% historically). We see upgrade potential.
• With net cash amounting to 19.3% of the share price, its 15.9x and 12.4x PERs for FY26F and FY27F do not look stretched.

• Standard Market contains many companies with small market capitalizations and low trading liquidity, so there aren’t many companies in the Standard Market that institutional investors can consider as investment targets.
• Standard Market has more companies with P/B below 1x and ROE below 8%, but there’s little difference between Prime Market and Standard Market in their improvements over past two years.
• Whether companies disclosed improvement plans in response to the TSE’s request does not necessarily correlate with improvements in their P/B ratio or ROE.

• Midea will achieve double-digit growth in 2025. As domestic home appliance market enters a stage of competition for existing customers, B-end market and overseas markets have become new growth keys.
• The development path of three giants becomes clear – Midea pursues full industry chain synergy with diversified layout/digital capabilities.Haier builds a global brand matrix through high-end/localized operations.Gree is lagging behind.
• For mature industry leading enterprises, 10-18x P/E is reasonable, or market value of RMB430-855bn based on Midea’s 2025 net profit forecast. Considering higher growth, valuation would be higher than Haier.

• U.S. tire shipments projected at a record 340.2 million units in 2025  
•  Dynamics shift, with Chinese tire imports falling and SE Asian imports rising  
• Top players pursue expansion, innovation, and portfolio revamp  

• We are gradually building a high-conviction coverage of ideas for mid and small-cap companies in the Philippines.
• We established metrics focusing on high ROCE, sustainable growth of 10-15% YoY, robust balance sheets, and prudent capital allocation, essential elements for identifying potential multi-bagger opportunities.
• Read our recent initiation on ICTSI (ICT PM): Terminal Operator, Serial Grower With Pricing Power, 20% ROCE, 30% Net Margins 

• Dominant Market Leader with Strong Brand Equity: PNJ is the leading jewelry manufacturer and retailer in Vietnam, possessing a significant market share, a vast retail network of over 400 stores, and strong brand recognition that allows it to command premium pricing and foster customer loyalty.
• Favorable Long-Term Growth Drivers: The company is poised to benefit from structural tailwinds including a rising middle class, increasing urbanization, and a cultural affinity for gold. Furthermore, anticipated regulatory reforms (amendments to Decree 24) are expected to liberalize the gold market, potentially enhancing PNJ’s market dominance and ensuring a more stable supply of raw materials.
• Attractive Valuation with Resilient Financials: Despite short-term macroeconomic headwinds, PNJ has demonstrated resilient financial performance and a strong growth track record. Analyst commentary suggests the company is trading at an attractive valuation relative to its historical averages, presenting a compelling investment opportunity given its sound fundamentals and positive long-term outlook.

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