Daily Brief Consumer: ZJLD Group , Honasa Consumer, GoTo Gojek Tokopedia Tbk PT, Coupang , Health And Happiness (H&H), Kimberly Clark, Midea Group Co Ltd A and more

• Late last night (near mid-night), Kweichow Moutai (600519 CH) shocked the market by announcing a direct price hike on its main Feitian 53 degree product by an average of 20%. 
• The market had no expectation of such price hike as it was widely perceived that Moutai could not directly increase the ex-factory price due to regulatory pressures. 
• Moutai’s Feitian ex-factory price is the key price leader for pretty much all other major Baijiu brand, directly benefiting ZJLD Group (6979 HK).

• Honasa Consumer (1652951D IN) IPO is a book built issue worth INR 17 bn, comprising INR 3.65 bn worth fresh issue and INR 13.4 bn of OFS (41.2 mn shares). 
• The company is renowned for its flagship brand, Mama Earth while it has acquired other brands recently such as B-Blunt, Dr. Sheth and has also ventured in the salon business. 
• Our concerns remain on the A&P spends and related growth output, acquisition value and employee churning.

• GoTo Gojek Tokopedia’s 3Q2023 results were far more illuminating and encouraging than the last 2Qs, with more progress towards adjusted EBITDA breakeven, with much more colour on its new initiatives.
• The company’s focus on budget consumers and more affordable product offerings are already expanding its TAM and improving product density and productivity, speeding progress towards productivity. 
• GoTo will continue to invest in growth, which may mean it misses its 4Q adjusted EBITDA breakeven target but it has reduced cash burn significantly giving it more breathing space.

• This is our first report on South Korean e-commerce giant, Coupang Inc.
• The company delivered an all-around beat in the most recent quarterly result.
• The company observed an acceleration in revenue and active customer growth, particularly noteworthy for the rapid acceleration in active customer numbers.

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• Kimberly-Clark Corporation delivered mixed results for the previous quarter, with revenues below the analyst consensus.
• The strategic exit from the Brazil tissue business had an additional effect, reducing net sales by 100 basis points, primarily affecting Consumer Tissue and the Professional business.
• Consumer Tissue reported 2% organic growth, with North America delivering a strong 4% organic growth, driven by robust demand for dry baths and towels.

• Two of the biggest deals in the Hong Kong pipeline are A/H listings for S.F. Holding (002352 CH) and Midea Group (000333 CH), both looking to raise around US$3bn.
• Prior to the deals going live, we had a quick look at the A/H premium, subscription and past performance of some of the earlier A/H listings.
• Overall, most of the recent A/H listings haven’t done much in the near term.