In today’s briefing:
- Trading Strategy of Shein on the First Day of IPO
- Hua Hong Grace (1347 HK): HSI Inclusion Changes the Path, Not the Destination
- Deep-Dive:Trip.com (TCOM US)
- Uchi Technologies (UCHI MK) Q2 FY26 Results: Flat USD Revenue, Margin Recovery, Guidance Restored
- Micron’s $10 Billion AI Bet Has Apple & Trump Cheering—But Can Its Trillion-Dollar Boom Last?
- Grab Holdings’ Hidden $5 Billion Opportunity — Stash Supercharges Financial Services!
- Neopharm Co Ltd (092730 KS): Synthetic Expert Call Transcript (24 Aug 2026)
- Sunoco’s Refining Tipping Point — EBITDA Jumps From $43 Million To $175 Million!
- ARE/Asahi Holdings (5857): Take Some of Your Profit Now.
- Jacobs’ $2.1 Billion Infrastructure Quarter — Record Revenue Meets Rising Margins!
Trading Strategy of Shein on the First Day of IPO
- I discuss a trading strategy for Shein which starts trading in Hong Kong on 1 September. My base case valuation of Shein is target price of HK48.2 per share.
- I think its share price needs to decline another 25% or more for the valuation of the company to be more compelling.
- That would mean its share price would need to decline to about HK36.2 per share.
Hua Hong Grace (1347 HK): HSI Inclusion Changes the Path, Not the Destination
- Hua Hong joins the HSI on 7 September at ~0.54% weight. Passive rebalancing demand is mechanical, price-insensitive, and expires on effective date — irrelevant to valuation.
- Down 22% since initiation, the stock still trades at 57x FY26E EV/EBITDA — three to four times the peer range — with FCF deeply negative through 2027.
- BEARISH with FV HKD88 pegged to 12x FY27E EV/EBITDA — probability-weighted, sovereign-premium-adjusted, and already below SMIC’s multiple for a business with inferior margins and negative FCF.
Deep-Dive:Trip.com (TCOM US)
- US online travel agent Booking Holdings (BKNG US — US$158 billion) built a dominant online travel business across the United States and Europe over the past 20 years.
- And the business seems to be going from strength to strength.
- In Asia, we have India’s MakeMyTrip (MMYT US – US$5.7 billion), which dominates that market and trades at a 5.0x EV/Sales multiple with weak profitability.
Uchi Technologies (UCHI MK) Q2 FY26 Results: Flat USD Revenue, Margin Recovery, Guidance Restored
- Q2 FY26 USD revenue rose 1% YoY to USD 10.5m; RM revenue fell 6% to RM42.1m. OPM recovered to 60.4% from 57.6% in Q1.
- Management now guides FY26 USD revenue to be broadly comparable to FY25, a directional steer absent in Q1. Zero debt, RM132.7m net cash, 4.5 sen interim declared.
- Stock now trades at 13.2x FY25a PE, 9.6x EV/EBITDA, 6.9x P/B at a dividend yield >7%
Micron’s $10 Billion AI Bet Has Apple & Trump Cheering—But Can Its Trillion-Dollar Boom Last?
- Micron Technology has become one of the most dramatic beneficiaries of the artificial intelligence investment cycle, with its shares rising more than 700% over the past year and its market capitalization climbing above $1 trillion.
- Now the memory-chip maker is raising the stakes again.
- Micron plans to invest $10 billion over the next decade in Micron Research Labs, a new research institution whose flagship campus in Boise, Idaho, is expected to break ground next year.
Grab Holdings’ Hidden $5 Billion Opportunity — Stash Supercharges Financial Services!
- Grab Holdings Inc. reported strong second quarter 2026 results, marked by significant growth in adjusted EBITDA and active user metrics.
- Adjusted EBITDA increased 54% year-over-year to $168 million, expanding margins to 16.9% of revenue from 13.3%, representing the 18th consecutive quarter of EBITDA growth.
- On-demand gross merchandise value (GMV) rose 21% year-over-year to $6.5 billion, supported by a record 54 million monthly transacting users (MTUs), despite continued elevated fuel prices in the region.
Neopharm Co Ltd (092730 KS): Synthetic Expert Call Transcript (24 Aug 2026)
- The legacy domestic growth engine has hit a structural ceiling. The tightening of private medical indemnity insurance (silbi) reimbursement rules in South Korea has severely constrained the high-margin hospital-exclusive Zeroid MD channel. The transition of the Zeroid brand into mass-retail channels like Olive Young in late 2024 was an essential defense mechanism but is diluting profitability due to intense competition and heavy marketing requirements.
- Operating margins remain healthy but are increasingly vulnerable to K-beauty’s structural inflation of customer acquisition costs (CAC). While Neopharm reported a solid 21.77% operating margin for FY 2025, domestic marketing expenses and slotting fees demanded by the dominant multi-brand store (MBS) channel, Olive Young, are compressing margins.
- Inorganic growth through M&A is urgently required to deploy cash and fill critical portfolio gaps. Despite holding 145.94 billion KRW in net cash with zero debt as of late 2025, management has been overly conservative. A capital allocation policy that prioritizes a 33% to 35% dividend payout ratio over aggressive, strategic acquisitions prevents the company from acquiring active ingredient-led brands (e.g., PDRN, Retinol) or international distribution infrastructure necessary to break the legacy brand ceiling.
Disclaimer: The following transcripts are synthetic, AI-generated on demand, and compiled exclusively from public data sources; no real-word experts were actually interviewed. This content is designed to highlight potential market mispricings, explore compelling lines of inquiry, and suggest strategic questions rather than present verified facts. All specific financial metrics and data points, including market shares, TAM, margins, and growth rates, are AI-estimated approximations. They may be inaccurate and must be independently verified.
Sunoco’s Refining Tipping Point — EBITDA Jumps From $43 Million To $175 Million!
- Sunoco LP reported strong financial and operational results for the second quarter of 2026, demonstrating growth across its diversified portfolio comprising Fuel Distribution, Pipeline Systems, Terminals, and Refining segments.
- Adjusted EBITDA reached $996 million, excluding $14 million in one-time transaction expenses, surpassing the mid-year performance that led the company to raise its full-year adjusted EBITDA guidance by $400 million to a range of $3.5 billion to $3.7 billion.
- Distributable cash flow (DCF) as adjusted was $608 million for the quarter, supporting a declared quarterly distribution of just over $1 per common unit.
ARE/Asahi Holdings (5857): Take Some of Your Profit Now.
- Asahi Holdings (5857 JP) share price rose 30% in a month after our last insight. Nothing was wrong with the company and result was great.
- The stock will go ex-dividend next month, but the share price appreciation has beaten the dividend amount of 3.5%. Worth protecting the capital gain.
- It generates one of the highest ROIC at 10% against the peers and trades at the lower end of the spectrum.
Jacobs’ $2.1 Billion Infrastructure Quarter — Record Revenue Meets Rising Margins!
- Jacobs Engineering Group delivered solid financial and operational performance in the third quarter of fiscal 2026, marked by double-digit growth in adjusted earnings per share (EPS) and strong revenue expansion across its key segments.
- Adjusted EPS increased approximately 14% year-over-year to $1.84, supported by over 8% organic adjusted net revenue growth and a notable margin expansion of more than 100 basis points.
- The Infrastructure and Advanced Facilities (I&AF) segment achieved a quarterly record with nearly $2.1 billion in net revenue, representing a 10% increase year-over-year.
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