Daily Brief Consumer: Japan Tobacco, Oishi Group PCL, DXN Holdings, NFC Indonesia, Luckin Coffee, Pointerra Ltd and more

• Japan Tobacco’s 1Q23 performance exceeded consensus expectations, with revenue and OP surpassing by 5.3% and 12.3%, respectively.
• Consensus expected no volume growth for Japan Tobacco in declining combustible tobacco market; targeted mid-single digit constant currency revenue growth via pricing.
• Higher cigarette prices are expected to contribute to Japan Tobacco (2914 JP)‘s OP growth, which we anticipate will exceed its historical peak levels in the next few years.

• Back on the 10th March, Thai Beverage (THBEV SP) launched a Delisting Offer for 79.66%-held Oishi Group (OISHI TB), at THB 59/share, a 26.9% premium to last close. 
• This two-step Offer required a shareholder vote followed by a tendering process. Yesterday (the 3rd May), Oishi shareholders approved the Delisting Offer. 
• The tendering period may kick off around this time next month, with an expected payment late August. 

• DXN Holdings (2080694D MK) is looking to raise around US$159m in its Malaysia IPO.
• DXN Holdings (DXN) is a global health-oriented and wellness direct selling company.
• In this note, we will undertake a peer comparison, discuss our earnings assumptions, and share our thoughts on valuation.

For our next Corporate Webinar, we are glad to welcome NFC Indonesia’s Group Head of Corporate Finance & Strategy, Stanley Tijandra.

In the upcoming webinar, Stanley will share a short company presentation after which, he will engage in a fireside chat with Smartkarma Insight Provider, Angus Mackintosh. The Corporate Webinar will include a live Q&A session.

The Corporate Webinar will be hosted on Tuesday, 09 May 2023, 17:00 SGT.

About NFC Indonesia

PT NFC Indonesia Tbk (IDX: NFCX), a subsidiary of PT M Cash Integrasi Tbk (IDX: MCAS), is a digital customer experience company that offers a complete suite of services aimed at assisting the retail industry in improving customer engagement and competitiveness, in Indonesia’s growing economic biosphere, through its five main initiatives: Digital Product Aggregator, Digital Cloud Advertising, Content & Entertainment, Digital Wholesale, and Clean Energy.

• Luckin Coffee 1Q23 revenue beat is due to higher-than-expected store expansion, while SSSG is in-line with our estimate. 
• The normalized of RMB9.9 per cup campaign is expected to generate minor impact on Luckin Coffee’s profitability. 
• We maintain the stock as BUY and maintain TP at US$41.