Korea / Special Situations, Clepsydra Capital

Sanghyun Park

Korea / Special Situations

Korea / Special Sits, Pairs, Index Rebalancing

Clepsydra Capital

Investigate special situations, pairs, and index rebalancing trades in Korea.

Index Rebalance

Fadu Inc. oprates electronic component manufacturing businesses. The Company produces controller components, integrated circuits, and other products. Fadu conducts businesses in South Korea.

<ul>
<li>I spoke directly with the KRX official overseeing KOSDAQ 150, who confirmed that Fadu’s June exclusion was due to ongoing litigation, putting December inclusion in question.</li>
<li>He also confirmed the six-month normal trading record is irrelevant; Fadu’s inclusion hinges on the court case, with a ruling unlikely before early next year, effectively ruling out December entry.</li>
<li>Simmtech could enter TIGER Semis Top 10 if FnGuide reclassifies it as Semiconductors in November’s MKF500 rebalance, potentially triggering front running and passive flow positioning.</li>
</ul>


I spoke directly with the KRX official overseeing KOSDAQ 150, who confirmed that Fadu’s June exclusion was due to ongoing litigation, putting December inclusion in question.
He also confirmed the six-month normal trading record is irrelevant; Fadu’s inclusion hinges on the court case, with a ruling unlikely before early next year, effectively ruling out December entry.
Simmtech could enter TIGER Semis Top 10 if FnGuide reclassifies it as Semiconductors in November’s MKF500 rebalance, potentially triggering front running and passive flow positioning.


What I've Found on Fadu and Simmtech: Key Near Term Passive Flow Plays

IPOs and Catalysts/Events, Global Equity Research Ltd

Arun George

IPOs and Catalysts/Events

Uncompromised, Independent, Conflict-Free Research

Global Equity Research Ltd

Global Equity Research was started in 2017 by a group of experienced research professionals. It was founded on a passionate belief in the importance and the need for uncompromised, independent, conflict-free research. We aim to provide differentiated and actionable primary and bottom up fundamental research.

Event-Driven

Kakaku.com, Inc provides price comparison services and products information through its website.  The Company also provides Internet advertising services.

<ul>
<li>EQT/DG raised its <a href="https://www.smartkarma.com/entities/kakaku-com-inc" target="_blank" data-smartkarma-citation="entities:7408:1" rel="noopener">Kakaku.com Inc (2371 JP)</a> offer by JPY1 to JPY3,682, extending the closing date to 28 October. The bump buys time as EQT/DG still lacks minimum acceptances.</li>
<li>Bain/LY's silence likely signals one decisive bump, ideally above JPY3,756 and towards the JPY3,923 DCF high end. But each idle extension gives Oasis and KDDI time to side with EQT/DG.</li>
<li>At JPY3,800, upside is limited (+2.2% to +3.2%) against a -3.1% base downside and a severe (low-probability) tail risk. Taking some money off the table is sensible.</li>
</ul>


EQT/DG raised its Kakaku.com Inc (2371 JP) offer by JPY1 to JPY3,682, extending the closing date to 28 October. The bump buys time as EQT/DG still lacks minimum acceptances.
Bain/LY's silence likely signals one decisive bump, ideally above JPY3,756 and towards the JPY3,923 DCF high end. But each idle extension gives Oasis and KDDI time to side with EQT/DG.
At JPY3,800, upside is limited (+2.2% to +3.2%) against a -3.1% base downside and a severe (low-probability) tail risk. Taking some money off the table is sensible.


Kakaku.com (2371 JP): Third JPY1 Bump, Same Stalemate, Limited Upside Left

Smartkarma AI Primers, Smartkarma

αSK Primers

Smartkarma AI Primers

Smartkarma

Smartkarma unites the fragmented investment industry, connecting institutional investors, independent research providers, and corporates within a single network.

Research Reinvented

Equity Bottom-Up

Affle 3i Limited is a global technology company that provides a consumer intelligence platform, delivering consumer engagements, acquisitions, and transactions through mobile advertising. The company operates on a Cost Per Converted User (CPCU) model, transforming online and offline user data into actionable insights for brands. It was incorporated in 1994 and is headquartered in Gurugram, India.

<ul>
 <li>
Differentiated CPCU Architecture and AI-Driven Growth: <a href="https://smartkarma.com/entities/affle-3i-limited">Affle 3i</a> demonstrates sustained conversion-focused momentum, achieving FY26 revenue of INR 27,093.09 Mn (+19.5% YoY) and net profit of INR 4,548.51 Mn (+19.1% YoY), underpinned by its proprietary Cost Per Converted User (CPCU) model and agentic AI integrations (Niko, OpticksAI) that drive superior advertiser ROI across mobile and connected devices.</li>
 <li>
Pristine Balance Sheet Counterbalanced by Working Capital and Accounting Friction: The company maintains a virtually debt-free balance sheet with robust operating cash flow (INR 5,445.87 Mn in FY26) and cash reserves; however, institutional scrutiny persists regarding aggressive capitalisation of product-development costs, elevated unbilled revenues, lengthening receivable cycles, and potential impairment risks on legacy investments such as Bobble.</li>
 <li>
Global Expansion and Valuation Headwinds: Trading at ~42.3x P/E and ~27.1x EV/EBITDA at a price of INR 1434.10, Affle trades at a premium to domestic enterprise IT peers but at an EV/growth discount to top-tier global programmatic platforms. Sustained re-rating hinges on accelerating penetration in Established Markets (North America and Europe) while defending dominant market shares across Emerging Asia-Pacific and Latin America.</li>
</ul>This content is AI-generated and displayed for general informational purposes only. Please verify independently before use.


  
Differentiated CPCU Architecture and AI-Driven Growth: Affle 3i demonstrates sustained conversion-focused momentum, achieving FY26 revenue of INR 27,093.09 Mn (+19.5% YoY) and net profit of INR 4,548.51 Mn (+19.1% YoY), underpinned by its proprietary Cost Per Converted User (CPCU) model and agentic AI integrations (Niko, OpticksAI) that drive superior advertiser ROI across mobile and connected devices.
  
Pristine Balance Sheet Counterbalanced by Working Capital and Accounting Friction: The company maintains a virtually debt-free balance sheet with robust operating cash flow (INR 5,445.87 Mn in FY26) and cash reserves; however, institutional scrutiny persists regarding aggressive capitalisation of product-development costs, elevated unbilled revenues, lengthening receivable cycles, and potential impairment risks on legacy investments such as Bobble.
  
Global Expansion and Valuation Headwinds: Trading at ~42.3x P/E and ~27.1x EV/EBITDA at a price of INR 1434.10, Affle trades at a premium to domestic enterprise IT peers but at an EV/growth discount to top-tier global programmatic platforms. Sustained re-rating hinges on accelerating penetration in Established Markets (North America and Europe) while defending dominant market shares across Emerging Asia-Pacific and Latin America.
This content is AI-generated and displayed for general informational purposes only. Please verify independently before use.

Forensic Analyst, Trudence Capital Advisors

Nitin Mangal

Forensic Analyst

Trudence Capital Advisors

Trudence Capital Advisors Private Limited is a SEBI-registered Research Analyst, holding SEBI registration number INH000015747. Our firm is dedicated to providing independent and unbiased research on Indian mid to large-cap companies. Trudence Capital is known for its counter-consensus views, with a focus on forensic research and on-ground primary investigations. Our research approach is thorough, involving detailed analysis of accounting practices and governance, alongside extensive channel checks.

Independent & Unbiased Research

Forensic Accounting

<ul>
<li>
<a href="https://www.smartkarma.com/entities/affle-3i-limited" target="_blank" data-smartkarma-citation="entities:28934:1" rel="noopener">Affle 3i (AFFLE IN)</a> 's revenue recognition accounting differs from the peers despite same business model. Rising unbilled revenues coupled with a sharp increase in bad debts strike concerns.</li>
<li>Affle’s capitalisation rate of product-development costs has also increased over the last five years; standing above peers and supporting margins amidst slowdown in revenue growth.</li>
<li>Accounting prudence also remains under question for acquisitions. Investment in Bobble continues to be carried in full despite impairment risks while Appnext’s restructuring is interesting amid losses.</li>
</ul>



Affle 3i (AFFLE IN) 's revenue recognition accounting differs from the peers despite same business model. Rising unbilled revenues coupled with a sharp increase in bad debts strike concerns.
Affle’s capitalisation rate of product-development costs has also increased over the last five years; standing above peers and supporting margins amidst slowdown in revenue growth.
Accounting prudence also remains under question for acquisitions. Investment in Bobble continues to be carried in full despite impairment risks while Appnext’s restructuring is interesting amid losses.


Private Markets Analyst, pvtIQ

Beier Luo

Private Markets Analyst

Private Markets Research and Data, Reimagined

pvtIQ

pvtIQ leverages Smartkarma’s technology and distribution to deliver high-quality research and data on Asian private markets.

Private Capital Markets

PatSnap is a global AI-native innovation intelligence company headquartered in Singapore. Founded in 2007, it provides a platform used by over 18,000 enterprises and research institutions to accelerate research and development (R&D) and protect intellectual property (IP).

<h2>Executive Summary</h2>
<ul>
<li>
Agentic Workflows Accelerating as Liquidity Thesis Tracks to Plan: The baseline investment theses remain intact, with the transition towards agentic workflows accelerating through dedicated leadership appointments and the proprietary data moat reinforced by new bioactivity datasets. While a confidential dual listing application targeting a US$300.0m to US$400.0m raise supports the liquidity thesis, limited public disclosure of financial reporting and senior leadership continues to introduce execution friction.</li>
<li>
Deepening Biopharma Capabilities and Strategic Artificial Intelligence Investments: The company expanded its life sciences architecture through a strategic data partnership with Evolvus to integrate highly curated therapeutic datasets and appointed veteran product leaders to direct its life sciences strategy and artificial intelligence drafting products. Beyond organic development, participation in the Vertex Ventures-led US$3.0m seed round of the autonomous research platform Drylab AI, and integration with the ASEAN IP Cooperation further reinforce its ecosystem footprint.</li>
<li>
Governance Drags Offset by Strengthening Data Moats: The pvtIQ Fundamental SmartScore© improved, led by Growth and Management after strategic talent acquisitions and a new data partnership, although Governance remains constrained by limited public disclosure of financial reporting and senior leadership. The pvtIQ Alt-Data SmartScore© also strengthened. Strong Product Affinity and Authority dimensions reflect consistent user satisfaction and high search engine visibility, while Socials remains the weakest dimension despite improving.</li>
</ul>

Executive Summary


Agentic Workflows Accelerating as Liquidity Thesis Tracks to Plan: The baseline investment theses remain intact, with the transition towards agentic workflows accelerating through dedicated leadership appointments and the proprietary data moat reinforced by new bioactivity datasets. While a confidential dual listing application targeting a US$300.0m to US$400.0m raise supports the liquidity thesis, limited public disclosure of financial reporting and senior leadership continues to introduce execution friction.

Deepening Biopharma Capabilities and Strategic Artificial Intelligence Investments: The company expanded its life sciences architecture through a strategic data partnership with Evolvus to integrate highly curated therapeutic datasets and appointed veteran product leaders to direct its life sciences strategy and artificial intelligence drafting products. Beyond organic development, participation in the Vertex Ventures-led US$3.0m seed round of the autonomous research platform Drylab AI, and integration with the ASEAN IP Cooperation further reinforce its ecosystem footprint.

Governance Drags Offset by Strengthening Data Moats: The pvtIQ Fundamental SmartScore© improved, led by Growth and Management after strategic talent acquisitions and a new data partnership, although Governance remains constrained by limited public disclosure of financial reporting and senior leadership. The pvtIQ Alt-Data SmartScore© also strengthened. Strong Product Affinity and Authority dimensions reflect consistent user satisfaction and high search engine visibility, while Socials remains the weakest dimension despite improving.


PatSnap: Deepening the AI-Native Transition into Agentic Workflows (Update)

Insights in the Information Technology Space

Information Technology
Insights in the Information Technology Space

What I've Found on Fadu and Simmtech: Key Near Term Passive Flow Plays

This post shares my latest findings on Fadu and Simmtech, two names drawing the most attention from a near term local passive flow perspective.

Sanghyun Park

Kakaku.com (2371 JP): Third JPY1 Bump, Same Stalemate, Limited Upside Left

EQT/DG's JPY1 bump to JPY3,682 buys time, not a win. Bain/LY's silence likely signals one decisive bump. At JPY3,800, the risk/reward is not...

Arun George

Primer: Affle 3i (AFFLE IN) - Oct 2026

Differentiated CPCU Architecture and AI-Driven Growth: Affle 3i demonstrates sustained conversion-focused momentum, achieving FY26 revenue of...

αSK Primers

Affle 3i Ltd- The Accounting Ad-Vantage

Behind Affle’s advertising growth lie critical accounting related questions on revenue recognition, capitalised development costs, acquisitions etc.

Nitin Mangal

PatSnap: Deepening the AI-Native Transition into Agentic Workflows (Update)

Executive Summary Agentic Workflows and Liquidity Catalysts Accelerating: The baseline investment theses remain intact, with the transition toward...

pvtIQ