Daily Brief Equity Bottom-Up: NVIDIA Q2 2027. 2028 Supply Cannot Meet The Demand Jensen Is Paying To Create and more

• NVIDIA reported second-quarter fiscal 2027 results, details here. Revenue was $96.2 billion, up 18% sequentially and up 106% year over year, also blowing past the $91.0 billion guided midpoint.
• Q327 revenue forecast  $108.0 billion, plus or minus 2%,  +12% QoQ, +89% YoY. The company also threw in forecast for fiscal 2028 growth of 70% YoY.
• Recent announcements by NVIDIA, built around guaranteeing and backstopping investment in data centres that exclusively use their compute, suggest that much of their future demand is actually being self funded. 

In this installment of engageIR’s corporate insights, we join the management team of Geo Energy Resources at its 1HFY2026 earnings call held on 26 August 2026, 10am.

View the transcript here – https://on.skr.ma/4zCKy1X 
Passcode: 1H72N1&3

• Dream International 1st Half Results confirm our positive stance. Demand for the product is growing driven by the “kidult” market.
• Revenue grew 12%, growing across all 3 products: Stuffed Toys was the main growth driver, with both Plastic Figures and Tarapulin registering growth though lower.
• Margins weakened across all 3 products, leading to 24% decline in net profit.

• Halfords’ FY27 upgrade offers a supportive, if incomplete, UK read-through on bicycle sell-through, reinforcing early signs of channel stabilisation.
• Shimano’s normalising inventory-to-sales ratio suggests 2H restocking is increasingly likely, positioning consensus (¥51bn OP) to converge toward our ¥57bn estimate.
• Buyback pace is running ahead of schedule, and Dalton’s activist presence should keep capital discipline intact despite March’s rejected ¥200bn proposal.

• In this insight we discuss about Yadea (1585 HK) ‘s acquisition of Jinjian Technology.
• We further discuss about the contours of the transaction and the implied valuation.
• Finally, we present our view on this transaction and why it is beneficial for Yadea.

• The power- (electricity-) hungry AI leaves us to dig deeper in the value chain and enter Harbin Electric (1133 HK) , 1 of 3 largest heavy power makers in China.
• Harbin benefits from Chinese government decarbonization policies from the high-margin equipment and EPC contacts. 
• Despite the run-up in the share price, it is mostly caused by earnings growth rather than purely multiple expansion—now trades at 13x PER vs 20x PER before. 

• The proposed HK$1.223 per share privatization of Changhong Jiahua (3991.HK) by Hongtu Investment has effectively collapsed. While Mianyang City SASAC approved the transaction, the Sichuan Provincial Development and Reform Commission (DRC) and Department of Commerce have stalled the process with queries regarding valuation and state-asset preservation. With the September 20, 2026 Long Stop Date rapidly approaching, satisfying the remaining State Administration of Foreign Exchange (SAFE) pre-conditions is mathematically impossible.
• Working capital is severely constrained by a massive, unresolved legal dispute with Suning Procurement Center. Although Changhong Jiahua won a first-instance judgment ordering Suning to pay RMB 720.47 million in product costs and RMB 124.61 million in capital occupancy losses, Suning’s appeal to the Jiangsu Higher People’s Court has locked up over RMB 845 million in legal limbo. This frozen capital is nearly equivalent to the company’s entire market capitalization of HK$900 million.
• Capital allocation remains heavily subservient to the parent company, Sichuan Changhong Electric (600839.SH). Despite generating HK$43.83 billion in FY2025 revenue and adding HK$1.4 billion in net cash since the privatization offer was announced, the board recommended paying zero dividends for FY2025. This cash is functionally trapped onshore within the parent company’s cash-pooling framework to support parent liquidity, offering no protection or return to minority offshore shareholders.

• Blinkit’s spinoff and independent IPO is highly plausible but structurally delayed. While the quick-commerce business is now self-sustaining and adjusted EBITDA positive (₹102 crore in Q1 FY27), any near-term transaction is gated by Indian tax neutral demerger rules and the transfer of ₹1,800 crore in IND AS 116 lease liabilities rather than traditional debt covenants, as the parent holds ₹18,288 crore in cash and zero long-term debt.
• The ongoing CCI antitrust investigation on price parity and exclusivity represents the single largest threat to Eternal’s margins. If price-parity restrictions are fully dismantled, a projected 10% volume diversion to direct-to-consumer restaurant channels would directly hit the high-margin food delivery segment, threatening ₹150 crore to ₹180 crore in annualized adjusted EBITDA.
• Management incentives remain structurally detached from traditional return on capital metrics (ROIC), focusing almost exclusively on Net Order Value (NOV) scale and market capitalization milestones. This volume-first mindset is financially disciplined by a highly centralized finance bench under CFO Akshant Goyal, which has a proven track record of rapidly cutting non-performing experiments and reallocating underutilized physical infrastructure to asset-light initiatives.

• Revenue fell 28.5% and profit for the period fell 22.4%, to US$15.6m, which on that statement alone is an ordinary down period.
• But total assets rose US$240.6m, cash fell US$46.1m and operating cash flow went negative, each moving several times harder than profit did.
• The period’s event was the balance sheet growing on issued shares and vendor credit, and the cash going out to build it.

• KRT posted 15% YoY revenue and NOI growth in Q1 FY27, with a record INR7,516mn distribution (DPU INR1.70), up 5% QOQ, and committed occupancy rising to 93%.
• Beneath a headline 93% committed occupancy sits 87-88% economic occupancy, a 5% gap management expects to narrow to a normalized 3% by Q4 FY27.
• A 25% mark-to-market opportunity, sub-18% LTV, and multiple organic and inorganic growth levers support a credible multi-year compounding story.