Investment Research - Asia Consumer Sector, Investory

Devi Subhakesan

Investment Research - Asia Consumer Sector

ASIA CONSUMER: INSIGHTS AND INVESTMENT IDEAS

Investory

Investory is a Singapore-based boutique independent equity research firm founded in January 2017 with a primary focus on consumption themes across Asia-Pacific.

We aim to generate investible ideas based on consumption trends and outlook. We screen our ideas on several parameters - product potential, long-term growth and management commitment being the most critical.  We follow a fundamental analysis approach in our stock selection process and are not restricted by market cap.

We aspire to grow into a leading source of unbiased research, free of conflict of interest, for investors yearning for independent and disciplined analysis. 

We also undertake bespoke research mandates to support our Institutional clients’ investment needs.

Our team comprises of professionals with extensive experience in the Asian equity markets, in areas ranging from research, servicing institutional clients and investment management.

Equity Bottom-Up

Jollibee Foods Corporation owns, franchises and manages a network of fast food restaurants under the trade name Jollibee. The Company was incorporated in 1978.

<ul>
<li>
<a href="https://www.smartkarma.com/entities/jollibee-foods-corp" target="_blank" data-smartkarma-citation="entities:987:1" rel="noopener">Jollibee Foods (JFC PM)</a> delivered strong sales and profit growth in 3Q, driven by robust Same Store Sales Growth (SSSG) in its home market and key overseas regions, excluding China.</li>
<li>Jollibee's value-for-money appeal has likely driven its impressive Same Store Sales Growth (SSSG), outpacing industry peers struggling with rising customer price sensitivity and fall in SSSG.</li>
<li>However, in China, Jollibee's delay in adapting to a quickly shifting market landscape has led to EBITDA losses, a sharp reversal from the profitability seen in Q2.</li>
</ul>



Jollibee Foods (JFC PM) delivered strong sales and profit growth in 3Q, driven by robust Same Store Sales Growth (SSSG) in its home market and key overseas regions, excluding China.
Jollibee's value-for-money appeal has likely driven its impressive Same Store Sales Growth (SSSG), outpacing industry peers struggling with rising customer price sensitivity and fall in SSSG.
However, in China, Jollibee's delay in adapting to a quickly shifting market landscape has led to EBITDA losses, a sharp reversal from the profitability seen in Q2.


Jollibee Foods: Sector-Beating Growth Fuelled by Value-For-Money Appeal.

Sea Limited offers information technology services. The Company provides online personal computer and mobile digital content, e-commerce, and payment platforms. Sea serves customers worldwide.

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<li>
<a href="https://www.smartkarma.com/entities/sea-ltd" target="_blank" data-smartkarma-citation="entities:8509:1" rel="noopener">Sea (SE US)</a> 's management expects all three business segments - ecommerce, financial services and entertainment - to deliver high growth and profitability in 2025, supported by strong macro-eceonomic tailwind.</li>
<li>It's GAAP revenue was US$4.3 billion, up 30.8% year-on-year and net income was US$153.3 million, as compared to total net loss of US$(144.0) million for 3Q2023.</li>
<li>Its e-commerce business achieved positive adjusted EBITDA in 3Q 2024 in both Asia markets and Brazil.</li>
</ul>



Sea (SE US) 's management expects all three business segments - ecommerce, financial services and entertainment - to deliver high growth and profitability in 2025, supported by strong macro-eceonomic tailwind.
It's GAAP revenue was US$4.3 billion, up 30.8% year-on-year and net income was US$153.3 million, as compared to total net loss of US$(144.0) million for 3Q2023.
Its e-commerce business achieved positive adjusted EBITDA in 3Q 2024 in both Asia markets and Brazil.


Sea (SE US): Strong 3Q, Upbeat Management Talk Fires up the Stock

Equity Capital Markets

Bundl Technologies Private Limited provides food ordering and delivery services. The Company operates a fleet of delivery personnel who pick up orders from restaurants and deliver it to customers. Bundl Technologies serves customers in India.

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<li>
<a href="https://www.smartkarma.com/entities/bundl-technologies-private-limited-swiggy" target="_blank" data-smartkarma-citation="entities:35630:1" rel="noopener">Swiggy (1255298D IN)</a> debuts today amid bearish market sentiment, pressured by FII selling and disappointing corporate earnings.</li>
<li>The IPO received lukewarm interest from retail investors, who had minimal allocation - this could limit listing day selling pressure.</li>
<li>
<a href="https://www.smartkarma.com/entities/bundl-technologies-private-limited-swiggy" target="_blank" data-smartkarma-citation="entities:35630:1" rel="noopener">Swiggy's</a> valuation discount to <a href="https://www.smartkarma.com/entities/zomato-ltd" target="_blank" data-smartkarma-citation="entities:28820:1" rel="noopener">Zomato (ZOMATO IN)</a>  is noteworthy; improved metrics, financials could drive gains, but escalating competition and regulatory risks loom large in the near term.</li>
</ul>



Swiggy (1255298D IN) debuts today amid bearish market sentiment, pressured by FII selling and disappointing corporate earnings.
The IPO received lukewarm interest from retail investors, who had minimal allocation - this could limit listing day selling pressure.

Swiggy's valuation discount to Zomato (ZOMATO IN)  is noteworthy; improved metrics, financials could drive gains, but escalating competition and regulatory risks loom large in the near term.


Swiggy: Expect Soft Debut in a Weak Market. Will It Regain Lost Mojo with IPO Boost?

OLA Electric Mobility Limited manufactures electric vehicles. The Company focuses on designing, engineering, and manufacturing of electric scooters and bikes, as well as components like battery packs, motors, and vehicle frames. OLA Electric Mobility serves customers worldwide.

<ul>
<li>
<a href="https://www.smartkarma.com/entities/ola-electric-mobility-pvt-ltd" target="_blank" data-smartkarma-citation="entities:40618:1" rel="noopener">Ola Electric(OLAELEC IN)</a> ’s management, during Investor call, seemed confident in driving volume growth through expanded distribution, new model launches, and focused on technology upgrades and vertical integration for cost advantages.</li>
<li>The company, however, remains intent on continuing its disruptor play strategy of aggressive discounts and competitive pricing to drive volume growth—uncommon in India’s auto sector.</li>
<li>Investors seeking profitability and capital returns will need patience (and faith in Ola's strategy), while competitors like <a href="https://www.smartkarma.com/entities/bajaj-auto-ltd" target="_blank" data-smartkarma-citation="entities:3613:1" rel="noopener">Bajaj Auto Ltd(BJAUT IN)</a> and <a href="https://www.smartkarma.com/entities/tvs-motor-co-ltd" target="_blank" data-smartkarma-citation="entities:16123:1" rel="noopener">TVS Motor(TVSL IN)</a>  may feel the pressure.</li>
</ul>



Ola Electric(OLAELEC IN) ’s management, during Investor call, seemed confident in driving volume growth through expanded distribution, new model launches, and focused on technology upgrades and vertical integration for cost advantages.
The company, however, remains intent on continuing its disruptor play strategy of aggressive discounts and competitive pricing to drive volume growth—uncommon in India’s auto sector.
Investors seeking profitability and capital returns will need patience (and faith in Ola's strategy), while competitors like Bajaj Auto Ltd(BJAUT IN) and TVS Motor(TVSL IN)  may feel the pressure.


OLA Electric: Wimpy Quarter. But, Bigger Question—How Long Will the Disruptor Play Last?

Luckin Coffee Inc. provides non-alcoholic beverages. The Company offers various types of coffee. Luckin Coffee serves customers in China.

<ul>
<li>
<a href="https://www.smartkarma.com/entities/luckin-coffee-inc" target="_blank" data-smartkarma-citation="entities:28046:1" rel="noopener">Luckin Coffee (LKNCY US)</a> reported another quarter of strong growth and is now China’s leading coffee chain by a wide margin with operating margins outperforming even premium rival <a href="https://www.smartkarma.com/entities/starbucks-corp" target="_blank" data-smartkarma-citation="entities:7641:1" rel="noopener">Starbucks Corp(SBUX US)</a> .</li>
<li>Luckin’s disruptive model—centered on affordability, convenience, and accessibility—and the competition that followed has fueled a 2.5X rise in China’s per capita coffee consumption over the past five years.</li>
<li>​Luckin Coffee's strong growth, high operating margins, dominant market share contrasts with Starbucks, which is now adapting to changing customer preference for convenience and digital experiences.</li>
</ul>



Luckin Coffee (LKNCY US) reported another quarter of strong growth and is now China’s leading coffee chain by a wide margin with operating margins outperforming even premium rival Starbucks Corp(SBUX US) .
Luckin’s disruptive model—centered on affordability, convenience, and accessibility—and the competition that followed has fueled a 2.5X rise in China’s per capita coffee consumption over the past five years.
​Luckin Coffee's strong growth, high operating margins, dominant market share contrasts with Starbucks, which is now adapting to changing customer preference for convenience and digital experiences.


Luckin Coffee: Acing It in China's Racing Coffee Market

Investory
ASIA CONSUMER: INSIGHTS AND INVESTMENT IDEAS

Jollibee Foods: Sector-Beating Growth Fuelled by Value-For-Money Appeal.

Jollibee's value-for-money appeal has driven impressive Same Store Sales Growth (SSSG) in 3Q, outpacing industry peers struggling with rising...

Devi Subhakesan

Sea (SE US): Strong 3Q, Upbeat Management Talk Fires up the Stock

Stock was up 14.5% on strong 3Q results. Key takeaways from Mgt call. Sea's mgt expects high growth and profitability across business segments to...

Devi Subhakesan

Swiggy: Expect Soft Debut in a Weak Market. Will It Regain Lost Mojo with IPO Boost?

Expect a soft debut given weak market sentiment. Fresh capital offers Swiggy an opportunity to regain lost market share. But it will need to face...

Devi Subhakesan

OLA Electric: Wimpy Quarter. But, Bigger Question—How Long Will the Disruptor Play Last?

Ola seems intent on continuing its disruptor play strategy—aggressive pricing to drive volume growth, uncommon in India’s auto sector. Investors...

Devi Subhakesan

Luckin Coffee: Acing It in China's Racing Coffee Market

Luckin Coffee's strong growth, high operating margins, dominant market share contrasts with Starbucks, which is now adapting to changing customer...

Devi Subhakesan

Jollibee Foods: Sector-Beating Growth Fuelled by Value-For-Money Appeal.

Jollibee's value-for-money appeal has driven impressive Same Store Sales Growth (SSSG) in 3Q, outpacing industry peers struggling with rising...

Devi Subhakesan

Sea (SE US): Strong 3Q, Upbeat Management Talk Fires up the Stock

​Stock was up 14.5% on strong 3Q results. Key takeaways from Mgt call. Sea's mgt expects high growth and profitability across business segments to...

Devi Subhakesan

Swiggy: Expect Soft Debut in a Weak Market. Will It Regain Lost Mojo with IPO Boost?

Expect a soft debut given weak market sentiment. Fresh capital offers Swiggy an opportunity to regain lost market share. But it will need to face...

Devi Subhakesan

OLA Electric: Wimpy Quarter. But, Bigger Question—How Long Will the Disruptor Play Last?

Ola seems intent on continuing its disruptor play strategy—aggressive pricing to drive volume growth, uncommon in India’s auto sector. Investors...

Devi Subhakesan

Luckin Coffee: Acing It in China's Racing Coffee Market

​Luckin Coffee's strong growth, high operating margins, dominant market share contrasts with Starbucks, which is now adapting to changing customer...

Devi Subhakesan

Stock was up 14.5% on strong 3Q results. Key takeaways from Mgt call. Sea's mgt expects high growth and profitability across business segments to...

Luckin Coffee's strong growth, high operating margins, dominant market share contrasts with Starbucks, which is now adapting to changing customer...