Consumer: Swiggy, FSN E-Commerce Ventures (Nykaa), Lawson Inc, Marui Group, Erawan Group, Genting Malaysia, Automotive Axles, Sarawak Oil Palms, Genting Bhd, Skylark Co Ltd and more

• Swiggy is a leading food delivery platform in India. It along with its listed rival, Zomato, control nearly the entire food delivery market in India.
• Swiggy last raised another $700m investment led by Invesco US with a valuation of $10.7bn in Jan 2022. 
• Recent media reports have indicated that the company could look to raise around US$800m via an IPO in early 2023

• Inclusions are FSN E-Commerce Ventures (NYKAA), Mindtree Ltd (MTCL), Paytm (PAYTM), SRF Ltd (SRF) and Zomato (ZOMATO), while Indian Oil Corp (IOCL IN) moves lower from the NIFTY Index.
• Deletions are Aurobindo Pharma (ARBP), Hindustan Petroleum (HPCL), Indraprastha Gas (IGL), Jindal Steel & Power (JSP) and Yes Bank (YES), while Apollo Hospitals (APHS) moves up to the NIFTY Index.
• Estimated one-way turnover on the NIFTY NEXT50 Index is 10.24%, the one-way trade is INR 8,486bn and there is over 1 day of ADV to trade on a few stocks.

• Lawson will begin offering made-on-demand meals direct from its convenience stores. 
• Suitable stores are being renovated to include in-store kitchens, with 100 planned for this time next year and 1,000 by 2025, with delivery handled by companies like Uber Eats.
• Most other chains offering made-to-order meals are small, so Lawson could well take a large share of this growing market.

• Marui Group (8252 JP) is increasingly ethereal, shifting further away from selling merchandise through tenants. 
• While seen as a shop building operator, Marui is still true to its service origins as a consumer finance business.
• Now even its shop buildings are increasingly devoted to non-stuff with the company aiming for 70% of tenancies to be selling things other than merchandise by 2025.

• Excluding extraordinary items, ERW’s 4Q21 normalized loss was at Bt371m, the eighth consecutive quarter loss, due to operations under EBIT breakeven.
• 4Q21 negative EBITDA declined to -Bt29m compared to -Bt30m in 4Q20 and -Bt243m in 3Q21 backed by recovering overall hotel operation.
• Lockdown easing and launching ‘Rao Tiew Duay Kan phase 3’ program during 4Q21 resulted in improving occupancy rate (ex. Hop INN segment) to 30%  up from 25% in 4Q20 

• Maintain BUY call and tweak TP to MYR3.37 (-1sen)
• FY21 losses narrower than expected
• 4Q21 core net profit the first since 4Q19
• Cautiously optimistic about FY22

• Automotive Axles (AAL), established in 1981, is largest independent manufacturer of rear axle drive assemblies in India (primarily for CVs, M&HCV)
• As of FY20, rear drive axles comprise ~60% of its topline with brakes share at ~20% and other parts comprising the rest
• Target Price and Valuation: We introduce FY24E. We now value the company at a revised target price of Rs 1730 i.e. 20x P/E on FY24E EPS (earlier TP Rs 1260).

• An excellent proxy to CPO price rally
• 4Q results: Another beat
• Anticipating 2% YoY FFB output growth in FY22E
• Raising CPO ASP and PATMI forecasts

FY21 core PATMI beat our/street estimates by 37%/35% due to record palm oil products ASP. SOP is now in net cash position, allowing it to raise DPS beyond the yearly 5-6sen. A final DPS for FY21 will be proposed before its AGM (in addition to 4sen interim DPS paid). SOP is poised to benefit from high spot prices in 2022 as it has minimal forward sales. Following our EPS upgrade, we raise TP to MYR5.88 after rolling forward valuation to FY23E (from FY22) on unchanged 13x PER, its 5Y mean.

• Maintain BUY call and tweak TP to MYR5.48 (+3sen)
• Losses wider than expected but DPS outperformed
• Earnings recovery will be gradual, in our view
• Cut FY22E/FY23E earnings by 30%/23%

• Maintaining TP of 1,600 yen and a Hold rating. We are updating our earnings forecast for Skylark Holdings (3197, the company)
• On February 14, the company announced full-year IFRS OP of 18.2bn yen (vs. -23.0bn yen loss in FY12/20)
• Our new forecast for FY12/22 is for sales of 311.9bn yen (+17.9% YoY; previous forecast 311.8bn yen) and OP of 8.8bn yen (-51.5% YoY; previous forecast 10.4bn yen)