Daily Brief Consumer: Yum China Holdings , Tsuruha Holdings, Shanghai Shenzhen CSI 300 Index, Webjet Group, PDD Holdings, Dream International, Lovesac Co and more

• China Hongqiao, Innovent Biologics and Yum China replace ENN Energy, Haidilao International and New Oriental Education in the Hang Seng China Enterprises Index (HSCEI INDEX) in December. All changes are in line.
• Estimated one-way turnover at the rebalance is 4.6% resulting in a round-trip trade of HK$6.3bn (US$811m). The final capping will use the close of trading on 2 December.
• Innovent Biologics is also an add to the Hang Seng Index (HSI INDEX). The passive buying will absorb some stock from the recent placement in China Hongqiao. 

• Welcome to Curator’s Cut — a fortnightly roundup of standout themes from the 1,500+ insights published on Smartkarma.
• In this cut, we review CATL’s H-share lock-up expiry, iron ore equity opportunities in the face of Simandou’s expected supply, and the accelerating consolidation in Japan’s consumer sector.
• Want to dig deeper? Comment or message with the themes you’d like to see highlighted next.

• A tactical snapshot of the Asian indices and stocks we cover.
• Many Asian stocks we track are flashing very oversold signals—creating tactical long setups worth considering.
• We find no overbought stocks or indices in Asia at present. US equities are aligned with this view, this is a global market pullback, probably about to end.

• On 21 November, Webjet Group (WJL AU) disclosed a non-binding takeover offer from BGH Capital at A$0.91 per share, a 1.1% premium to the Helloworld Ltd (HLO AU) offer.
• BGH’s takeover offer is conditional on a 75% minimum acceptance condition, which is too high a threshold to meet. The acceptance condition is likely to be revised to 50.1%.     
• Helloworld has justification to engage in a bidding war, particularly due to potential synergies and multiple re-rating. I would expect at least another round of bids. 

• PDD’s total revenue increased by 9% YoY in 3Q25 higher than 7% YoY in 2Q25.
• In 3Q25, operating cash flows stopped decreasing after a year and grew by 66% YoY.
• We believe PDD’s stock price can be double for the next twelve month according to other e-commerce companies’ EV/EBITDA.

• We compile our selection of small- and mid-cap names with the desired characteristics of high dividend yields, value, and a margin of safety.
• We compile updates on Oriental Watch (398 HK), The Keepers Holdings (KEEPR PM), and Ginebra San Miguel (GSMI PM), and others into the results.
• Our top picks are Asian Terminals (ATI PM), The Keepers Holdings (KEEPR PM), Taste Gourmet (8371 HK), Philippine Stock Exchange (PSE PM), and Ginebra San Miguel (GSMI PM).

• Lovesac is a niche, direct-to-consumer furniture company with a strong brand identity centered on its patented, modular “Sactionals”and premium “Sacs.”
• The company’s growth is driven by its unique “Designed for Life”philosophy, emphasizing sustainable, adaptable products that foster a loyal, repeat customer base, with approximately 47% of transactions from existing customers.
• While exhibiting strong long-term revenue growth, the company faces significant near-term headwinds from a challenging macroeconomic environment, increased competition, and margin pressure from promotional activity.

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