Daily Brief Consumer: Zhou Liu Fu Jewellery, Ola Electric, IFBH, Abercrombie & Fitch Co Cl A, Poh Huat Resources Holdings, CaoCao, Fukutome Meat Packers, Five Below, Glass House Brands and more

• Zhou Liu Fu Jewellery (6168 HK) raised US$143m from its Hong Kong IPO in June 2025 via a primary offering of HKD 24/share in its IPO.
• It is a leading and fast growing jewellery franchise in China offering a diverse range of products through offline and online sales channels.
• In this note, we will talk about the lockup dynamics and possible placement.

• Ola Electric (OLAELEC IN) since its IPO has been under scanner. The management presented a very optimistic narrative in Q1FY26, hoping to turn tides, increase volumes, along with better profitability.
• As things stand, volumes continue to hit new lows, market share continues to tumble and the new narrative of Auto EBITDA positive could possibly be an eye wash.
• The company’s strategic mismanagement is unmasked and and with internal controls disappearing . Ultimately, the promoter sell off could be a final nail in the coffin.

• IFBH (6603 HK) raised US$169m (including over-allocation) from its Hong Kong IPO in June 2025. The lockup on its cornerstone, pre-IPO investors and controlling shareholders is set to expire soon.
• IFBH specializes in ready-to-consume beverages and food, with a focus on coconut water and plant-based products. 
• In this note, we will talk about the lockup dynamics and possible placement.

• Abercrombie & Fitch reported its twelfth consecutive quarter of growth, achieving record net sales of $1.3 billion, an increase of 7% from the previous year.
• This growth showcased a balanced performance across regions, with notable success in the Americas and EMEA, despite challenges in the APAC region where sales declined 6%.
• The company also managed to increase its gross margin to 62.5% amidst a 210 basis point adverse impact due to tariffs.

• Ola Electric saw a sharp sales collapse, lost its E2W leadership to TVS Motor, and witnessed founder Bhavish Aggarwal selling 1.54% stake worth INR 234 crore across two sessions.
• The combination of a ~50–70% sales decline, market share erosion, guidance cuts, and promoter stake sales raises concerns around demand sustainability, execution gaps, and balance-sheet stress at the promoter level.
• Despite selective operational improvements, Ola Electric’s weakening sales momentum and promoter de-risking signal a shift from aggressive growth to damage control, warranting a cautious stance until demand visibility stabilises.

• Market capitalisation is less than cash on its books implying negative enterprise valkue
• Leading integrated wooden furniture manufacturer from Malaysia with factories in Vietnam and Malaysia
• Consistently profitable including COVID and has Balance Sheet to face downturn

• CaoCao (2643 HK) raised US$236m from its HK IPO in June 2025 via a primary offering of HKD41.94/share in its IPO.
• It is a ride hailing platform in China originally incubated by Geely Group connecting passengers and drivers to deliver consistent and high-quality ride experiences.
• In this note, we will talk about the lockup dynamics and possible placement.

• Fukutome Meat Packers is a long-established Japanese meat processor facing significant profitability and cash flow challenges. The company has demonstrated revenue stability but has struggled with volatile and often negative net income, leading to a deteriorating balance sheet and suspension of dividends.
• The company operates in a highly competitive domestic market characterized by shifting consumer preferences towards poultry and convenience products. While Fukutome has a recognized brand, its financial performance indicates difficulty in adapting to margin pressures from input costs and competition.
• Valuation appears low on a Price-to-Book and EV-to-Sales basis relative to peers, reflecting the market’s concern over its poor profitability, negative cash flow, and high uncertainty. A significant operational turnaround is required to unlock shareholder value.

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• Five Below’s third-quarter 2025 financial results reveal both encouraging successes and areas of strategic focus for the company moving forward.
• The retailer experienced significant growth in net sales, reaching over $1 billion, marking a 23% increase year-over-year, supported by a 14% rise in comparable sales.
• This growth was equally driven by an increase in both transaction volume and ticket size, demonstrating robust consumer response and capturing the appeal of the store’s diverse offerings.

• Dominant California Market Position: Glass House Brands is a vertically integrated cannabis company with a commanding presence in California, the world’s largest legal cannabis market. Its scale in cultivation, growing brand portfolio, and expanding retail footprint provide a significant competitive advantage.
• Path to Profitability and Positive Cash Flow: The company has demonstrated a clear trajectory of revenue growth and margin expansion, driven by operational efficiencies at its large-scale greenhouses. Recent financial performance indicates a turn towards sustainable profitability and positive operating cash flow, a rarity in the U.S. cannabis sector.
• Significant Growth Optionality: Future growth is underpinned by the phased build-out of its cultivation facilities, brand expansion, and potential regulatory catalysts. Federal rescheduling or legalization of cannabis would remove punitive tax burdens (IRC 280E) and open up national markets, representing a substantial long-term value driver.

This content is AI-generated and displayed for general informational purposes only. Please verify independently before use.