Daily Brief Consumer: Pan Pacific International Holdings, Blink Charging Co, LG Electronics India, Melco International Development, Hyundai Motor , Seven West Media, Fast Retailing, The Pinkfong Company, Alibaba, Deliveroo and more

• Today we saw the culmination of the ridiculously wrong-way Nikkei 225 Sep25 rebalance. Shift Inc (3697 JP) looked like a classic deletion, not addition.
• 93.3% of the observation period has now passed, which means we can look at the March 2026 Periodic Review with a fair bit of accuracy.
• It is likely to be the runner-ups in the Sep25 review from the Consumer Goods sector, though the second-runner-up ADD needs a stock split to have any chance. More below.

• Blink Charging is navigating a high-growth phase, marked by significant revenue increases over the past several years, driven by both organic expansion and strategic acquisitions. However, this growth has been accompanied by substantial and persistent net losses and negative cash flow, raising concerns about its path to profitability.
• The company operates with a flexible business model, offering equipment sales (host-owned), a turnkey owner-operator model, and hybrid variations. There is a strategic shift towards the owner-operator model to build a recurring revenue base from charging services, which command higher margins than hardware sales.
• The Electric Vehicle (EV) charging industry is intensely competitive and capital-intensive. Blink faces significant competition from larger, better-capitalized players. The company’s success is heavily reliant on the continued growth of EV adoption, favorable government policies and subsidies, and its ability to manage high operational costs and secure ongoing funding.

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• LG Electronics’ BOD finally approved a plan to sell a 15% stake in LG Electronics India in an IPO to be completed in 2025.
• According to local media, LG Electronics India is now valued at about US$13 billion which is higher than LG Electronics’ market cap of US$8.8 billion. 
• Our base case valuation of LG Electronics India is implied market cap of 1,280 billion INR or US$14.4 billion.

• Melco International Development (200 HK) is now trading at a premium to NAV for the first time since announcing a one-for-two rights issue.
• Preceding my comments on Melco are the current setup/unwind tables for Asia-Pacific Holdcos.
• These relationships trade with a minimum liquidity of US$1mn, and a % market capitalisation >20%.

• Fiduciary duty expansion gains teeth once the third-stage treasury cancellation passes—setting up Class A prefs as prime re-rating, discount-compression plays in local flows.
• Fiduciary duty expansion gives Class A prefs new legal backing, making them standout re-rating plays with discount-compression potential, unlike Class B with built-in dividend protections.
• Hyundai Motor 1P vs 2PB offers a tight but tradable setup, while CJ Corp and AmoreH show wider A/B gaps, even after adjusting convertible premiums.

• Television broadcaster and publisher Seven West Media (SWM AU) has entered into a Scheme with radio network play Southern Cross Media (SXL AU).
• SXL will issue 0.1552 new shares for every SWM. Should the Scheme get up, SXL will hold 50.1% of the combined entity and SWM the remainder.
• Kerry Stokes backed SGH Limited (SGH AU) will hold ~20% in the merged entity. But not all shareholders are on board with the Offer. Trading through terms.

• Exchange holidays: Early October holidays in China (Golden Week) and South Korea (Chuseok) may dampen market activity, while India’s Diwali on 21–22 October brings the traditional Muhurat trading session.
• Earnings season begins in the final third of October across India, Japan, China/Hong Kong, and South Korea, alongside key central bank meetings and the TOPIX rebalance on 30 October.
• Why Read: Plan ahead and take into account known market events when making investment and trading decision.

• The Pinkfong Company, creator of the global phenomenon ‘Baby Shark’, is poised for a KOSDAQ IPO in Q4 2025, aiming to raise capital for content development and global expansion.
• While the company possesses an immensely powerful and globally recognized IP in ‘Baby Shark’, it faces significant challenges related to revenue concentration and recent declines in sales, which have fallen from a peak in 2022.
• The company’s strong balance sheet, characterized by a net cash position, and its strategic shift towards higher-margin digital content sales are key strengths, but its future success hinges on its ability to replicate its hit-making success and diversify its IP portfolio.

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• US as the world’s largest service economy means artificial general intelligence (AGI) saves cost by replacing knowledge workers. 
• China’s AI monetization is today 1/3 of US but will improve to 1/2 by 2030. 
• We reiterate our TOP PICKS of Alibaba, HESAI, CATL and Kuaishou. BIDU stays as SELL.

• DoorDash (DASH US) has agreed to acquire Deliveroo (ROO LN) in an all-cash transaction valued at approximately $3.9 billion, with Deliveroo shareholders receiving 180 pence per share.
• The acquisition is expected to become effective on October 2, 2025, with Deliveroo (ROO LN) founder and CEO Will Shu and several non-executive directors stepping down upon completion.
• Following the deal, Deliveroo (ROO LN) will be removed from UK and European indices, with replacements expected imminently.