Daily Brief Consumer: Wakefit Innovations, Toyota Industries, Airbnb , Instacart, Nike, TOP TOY International Group, Lenskart Solutions, Ford Motor Co, Choo Chiang Holdings Ltd, Kasumi Co Ltd and more

• Wakefit Innovations (1684049D IN) ‘s INR 12.9 bn IPO is a combination of fresh issue worth INR 3.8 bn and OFS component worth INR 9.1 bn.
• Wakefit is among the top 3 companies in the organised mattress market and has been growing much faster than its rival B2C companies.
• Wakefit’s turnaround in profitability in H1FY26 however relies on other income, inventory changes and A&P spends. Moreover, stagnant provisions for loyalty, and slow moving inventory warrant attention

• The process in the Toyota Industries (6201 JP) transaction is egregiously bad and lacking in  transparency. This deal, as structured, is block-able, even if bumped.
• There’s been a lot of enthusiasm for HK spin-offs of late (Zijin Mining (2899 HK) and MINISO (9896 HK)). I’m not convinced Dongfeng Motor (489 HK) deserves similar accolades.  
• If you’ve the ability to borrow Aeon (8267 JP), this promises to be fun/interesting. If you’re a long-only investor, it’s more nuanced. And it depends on where you are post-tender.

• Airbnb’s latest quarterly results for the third quarter of 2025 demonstrated a robust financial performance, marked by a 10% increase in revenue year-over-year, amounting to $4.1 billion, and achieving an all-time high adjusted EBITDA exceeding $2 billion.
• Gross booking value grew by 14%, while nights and seats booked increased by 9%, largely driven by strong performance in the U.S. market.
• However, the results weren’t solely driven by top-line growth; they also highlighted significant strategic advancements and operational improvements.

• Instacart’s recent earnings call highlighted several key aspects of the company’s performance and strategic outlook.
• The company reported robust growth in its core marketplace, enterprise technology offerings, and advertising ecosystem during the third quarter of 2025.
• This positioning is underpinned by a focus on customer satisfaction through product affordability, enterprise expansion, and advertising innovations.

• NIKE, Inc.’s first-quarter fiscal 2026 results indicate a company in the midst of a transformative phase, focusing intently on its ‘Win Now’ actions aimed at revitalizing the brand across various dimensions.
• Elliott Hill, NIKE’s President and CEO, emphasized the efforts to realign approximately 8,000 employees under the new ‘Sport Offense’ strategy, intending to identify sharper consumer and athlete insights to fuel innovation and brand differentiation.
• This strategic shift is aimed at enhancing focus across NIKE’s three core brands: NIKE, Jordan, and Converse, with a significant emphasis on product development and market positioning by sport.

• TOP TOY is expected to IPO in 2026. The company has completed a ~$60M Series A round that was led by Temasek at a ~$1.3B post-money valuation in July.
• In my insight, I discuss IPO valuation, update relative valuation table and examine competitive landscape among domestic and international toymakers.
• TOP TOY revenue growth accelerated in 2025 coupled with improving profitability and growing free cash flows. TOP TOY was a major growth engine for MINISO’s business in 3Q.

• Lenskart is a dominant, vertically integrated eyewear retailer in India with a rapidly growing omnichannel presence, well-positioned to capitalize on the under-penetrated and fast-growing Indian eyewear market.
• The company has demonstrated strong revenue growth and improving profitability, driven by its unique blend of online and offline sales channels, in-house manufacturing, and a strong brand recall.
• While the company’s high valuation at IPO and dependence on the Indian market present risks, its aggressive expansion plans, both domestically and internationally, coupled with a technology-driven approach, offer a compelling long-term growth story.

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• Ford Motor Company’s third-quarter results for 2025 reflected a strong operational performance with some key challenges impacting the overall financial outlook.
• The company reported a record revenue of $50.5 billion and an adjusted EBIT of $2.6 billion, driven by robust demand and effective cost management strategies.
• The underlying business performance was solid, but external factors, such as the Novelis fire and tariff impacts, have moderated otherwise favorable guidance revisions.

• Choo Chiang is a leading distributor of electrical products in Singapore, benefiting from a strong brand presence, an extensive network of 10 retail branches, and a diverse product portfolio of over 30 third-party and two proprietary brands (‘CCM’ and ‘CRM’).
• The company demonstrates resilient financial performance, characterized by stable revenue streams, consistent profitability, and strong cash flow generation. A secondary revenue stream from a portfolio of 11 investment properties adds diversification.
• Shareholders are rewarded through a consistent dividend policy, with the company historically aiming to distribute at least 30% of net profits. The company’s strong balance sheet and positive operating cash flow support this shareholder return policy.

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• Subsidiary Role in a Market Leader: Kasumi is a core supermarket subsidiary of United Super Markets Holdings (U.S.M.H.), Japan’s largest supermarket federation and a key component of the Aeon Group. This provides significant competitive advantages in sourcing, private label offerings (TopValu), and financial stability, though its strategic direction is determined at the group level.
• Strong Regional Focus in a Mature Market: The company holds a strong market position in the Kanto region, particularly in Ibaraki Prefecture. However, it operates within the mature, slow-growing, and highly competitive Japanese grocery industry, facing pressures from demographic decline and format encroachment from drug and convenience stores.
• Operational Strategy and Financials: Kasumi employs a multi-format store strategy to cater to diverse consumer needs, from standard supermarkets to discount outlets. While detailed financials are now consolidated at the U.S.M.H. level, available data indicates stable top-line revenue. The valuation of its parent, U.S.M.H., appears moderate relative to its peer group.

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