Daily Brief Consumer: Yum China, Lalithaa Jewellery Mart Ltd, Milky Mist Dairy Food, Geely Auto, China Yuchai International, Silicon2, Food Empire, Pan Pacific International Holdings, Photosynth Inc, TSE Tokyo Price Index TOPIX and more

• Post market close on Friday, Hang Seng Indexes will announce the changes for the Hang Seng Index (HSI INDEX) that will be implemented at the close on 4 September.
• We highlight 7 stocks that have a higher probability of being added to the index. With the index committee entitled to a lot of discretion, there will be differences.
• The Healthcare industry continues to remain the most underweight and there could be more additions from the industry as we near the 100-stock target.

• Lalithaa Jewellery Mart Ltd (1607844D IN) is looking to raise up to US$178m in its upcoming India IPO.
• Lalithaa Jewellery Mart Ltd (LJML) is a jewellery retailer operating under the brand name “Lalithaa”, offering a range of gold, silver, and diamond jewellery.
• We have looked at the past performance in our previous note. In this note, we talk about the RHP updates and valuations.

• Milky Mist Dairy Food (1231D IN) raised US$163m in its India IPO.
• Milky Mist Dairy Food Ltd (MMDFL) is a value-added dairy and packaged food manufacturer focused on premium products such as paneer, cheese, curd, yogurt, UHT milk, and frozen RTE/RTC foods.
• We have looked at the company’s past performance and valuations in our previous notes. In this note, we will talk about the trading dynamics.

• Amid the impact of oil prices, the car maker recorded a growth rate of 15% YoY in 2Q26.
• Export growth has exceeded 100% YoY over past half year and surged to 200% YoY in July.
• We estimate that the stock price will double at the end of 2027.

• HHP Sales Propel H1 Growth. CYD reported first half revenue of RMB 14.7 billion, 13.9% above  the year ago period, but well shy of our revised estimate.
• The growth rates for nearly all segments looks impressive on the surface, but the details impacted the miss from our estimate.
• HHP engines drove Revenue growth, with 1,800 total HHP units going to AIDC. 

• Silicon2 (257720 KS) has secured a third party allocated capital increase worth 300 billion won (representing 10.3% of market share) from CVC Capital private equity firm.
• Silicon2 plans to use the capital for working capital to expand its global logistics infrastructure and increase its market share overseas.
• The company’s excellent sales growth and profit margins in the past year have been able to reduce concerns about the U.S. tariffs.

• Food Empire (FEH) delivered a clean-looking 1H26 — record half-year revenue and PAT swinging back to positive; [top-line beat riding on a margin miss vs RHTC FY26F].
• Revenue tracks slightly ahead of the run-rate cf full-year forecast; profitability tracks behind it.
• Revenue beat, but it is the only line that beat.

• PPIH’s FY06/26 sales increased 8.8% YoY, driven by increased customer traffic and discretionary product demand, achieving 100.4% of sales forecast.
• The company forecasts a 5.6% YoY sales growth, focusing on customer traffic, private-brand strategy, and pricing measures amid rising costs.
• Olympic Group, a newly consolidated subsidiary, targets doubling sales to JPY200.0bn and achieving a 6.0% OPM within five years.

• Leading Pure-Play HESaaS Provider in Japan: Photosynth Inc (4379 JP) has established a dominant market position in cloud-based access control and smart lock solutions through its proprietary Akerun Access Intelligence platform, pioneering the Hardware-Enabled Software-as-a-Service (HESaaS) business model across commercial, residential, and institutional sectors.
• Substantial Operating Inflection and Cash Flow Expansion: The company has successfully transitioned from an investment-heavy growth phase to structural profitability, delivering a 3-year Revenue CAGR of 19.28% and an EPS CAGR of 35.74%, supported by expanding EBITDA margins (~15-16% in recent quarters) and robust free cash flow generation (JPY 309.10M in FY2025).
• Attractive Valuation with Strategic TAM Expansion: Trading at an attractive 1.3x EV/Sales and 8.8x EV/EBITDA, Photosynth possesses significant multi-year growth runway fueled by Japan’s corporate digital transformation (DX) tailwinds, labor shortages driving demand for unmanned facility management (Migakun BPaaS), and strategic residential access partnerships via MIWA Akerun Technologies.

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• Although the number of individual shareholders has increased—partly due to a rising number of companies implementing stock splits—the proportion of shares held by individuals has hardly risen at all.
• While the ownership of other investor groups have remained flat, that of foreign corporations has continued rising. Listed companies are increasingly forced to pay close attention to overseas investors’ shareholdings.
• While the shareholding ratio of corporations has been steadily declining, share buybacks have increased. This suggests that the unwinding of cross-shareholdings between corporations and financial institutions is likely to continue.