Daily Brief Equity Bottom-Up: HK High ROCE – Compounders Hiding in Plain Sight and more

• The screen isolates eight Hong Kong-listed companies with a five-year average ROCE above 15% (median 33.0%), spanning exchanges, medical aesthetics, toys, apparel, and networking hardware.
• Capital efficiency converts into cash: all eight have paid dividends every year since FY20, with a median trailing yield of 7.7% and cumulative payouts near half the average share price.
• Valuations remain undemanding: six of eight trades trade below 11x earnings and 6x EV/EBITDA, leaving Taste Gourmet, JNBY, and Dream International the best risk-reward.

• AMD raised its 2030 Server CPU Total Addressable Market (TAM) projection from $60 billion to $220 billion, targeting >50% market share as it scales multi-threaded architectures like “Venice”.
• Shifting from isolated CPU/GPU/FPGA product roadmaps to a combined Data Center Roadmap Steering Group. Hardware and software trade-offs are now evaluated holistically to deliver full rack-scale system solutions like Helios.
• AMD targets a >60% CAGR in Data Center revenue and >80% CAGR in AI Data Center revenue over its strategic timeframe, driving overall company growth above 35% annually.

• Xiaoxiang Supermarket expanded its footprint from 55 to 68 cities.
• Revenue growth rebounded to double digits After three sluggish quarters.
• The gross margin continued to recover, while marketing expenses has subsided.

• On 15 September, it was announced that Samsung SDS (018260 KS) has become the first Korean company to achieve “Select Tier” partnership status with Anthropic in the “Claude Partner Network.”
• This partnership is likely to have a positive impact on Samsung SDS’s share price in the coming weeks, as Anthropic IPO is likely to be the largest ever in history.
• Samsung SDS’s valuations have become more attractive. It is trading at EV/EBITDA of 5.6x and P/B of 1.5x based on 2027 consensus earnings estimates. 

The Corporate Webinar will be hosted on Tuesday, 13 October 2026, 18:00 SGT.

About Elite UK REIT

Elite UK REIT (“英利英国房地产信托”), is a UK REIT listed on the Singapore Exchange and managed by Singapore-headquartered Elite UK REIT Management Pte. Ltd. (the “Manager”).

With its portfolio, Elite UK REIT is one of the largest providers of critical social infrastructure to the UK’s Department for Work and Pensions and other government departments, with a portfolio of mostly freehold assets valued at £489 million as at 30 June 2026.

The portfolio has 148 properties which are mostly freehold or virtually freehold, geographically diversified across the UK and strategically located in town centres, near amenities and transportation nodes. The Manager is also capitalising on sectors exhibiting strong growth potential in the UK, such as purpose-built student accommodation and built-to-rent residential assets. With a long and diversified lease expiry profile and prudent capital management

For more information on Elite UK REIT, please visit https://www.eliteukreit.com/

• NAND Cycle Peak and Hyperscale Demand Bottlenecks: Kioxia is enjoying record-breaking near-term profitability, with Q1 FY2026 operating margins hitting 75% driven by enterprise SSD (eSSD) demand from AI infrastructure. However, the market is misinterpreting the cyclical tailwinds. Hyperscaler pre-booking has locked in 100% of 2026 capacity, but the cooling of retail/client channels and rising capital constraints at key hyperscalers indicate a cyclical peak in late 2026, making the proposed 2027 U.S. ADR listing a race against a cooling market.
• BiCS10 Ramping vs. Korean Peers: The transition to the 332-layer BiCS10 node at the newly opened Kitakami K2 fab represents a massive leap in areal density (greater than 29 Gb/mm² for TLC and 37 Gb/mm² for QLC). While Kioxia’s CMOS directly Bonded to Array (CBA) architecture keeps it cost-competitive with Samsung and SK Hynix despite lower layer counts, the co-development joint venture structure with SanDisk (now independent post-spin from Western Digital) severely hinders technology transition speed and capital flexibility.
• The Liquidity and Governance Gameboard: With Bain Capital having fully exited its direct fund-level stake in July 2026, and SK Hynix-backed SPC BCPE Pangea Cayman2 becoming Kioxia’s largest shareholder in August 2026 at 14.19%, the strategic path is fraught. The planned $10 billion U.S. ADR listing on Nasdaq is not an expansion play—it is a critical necessity to address Kioxia’s ¥447.5 billion in unsecured bank loans, fund the massive capex required for Kitakami K2, and provide a clear exit for SK Hynix’s indirect convertible bond exposure before the next structural down-cycle.

• The company released a positive set of results for H1 2026, with improvements across the board.
• Revenue increased by 0.8% yoy to GBP18.9mn, on new acquisitions and a higher occupancy rate (99.9% vs 95% a year ago).
• Distributable income grew 3.6% yoy to GBP10.1mn and dividend per unit (DPU) rose to 1.55 pence (vs 1.54 pence a year ago), representing a distribution yield of 9.8%.

• Micron guided US$50bn / 86% GM / US$31 EPS; the Street sits on the guide but Goldman’s US$51.9bn / US$32.54 is the bar the crowded long actually has to clear. 
• The 29 July SK Hynix template applies: a record print 5% under consensus fell 9.6% and changed nothing; Micron’s FQ4 guide annualised already equals our FY2027E EPS of US$125. 
• BULLISH maintained, TP US$1,375 (11× FY2027E EPS US$125); at 7.4× with US$100bn contracted and US$22bn deposits banked, a guidance-level “miss” is an add, not a thesis event. 

• MongoDB reported strong financial and operational results for its second quarter of fiscal year 2027, with total revenue reaching $771.8 million, marking 30% year-over-year growth—the fastest growth since fiscal 2024.
• Atlas, the company’s cloud database service, grew approximately 29% year-over-year for the fifth consecutive quarter, driven primarily by large enterprise customers and expanding momentum in artificial intelligence (AI) workloads.
• The Enterprise Advanced (EA) segment, encompassing self-managed deployments, experienced even stronger growth of 36% year-over-year, partly due to the recent launch of Search and Vector Search capabilities that support AI applications in governed environments.

• Market Leadership in Buffalo Meat Exports: HMA Agro Industries Limited (HMAAGRO) is one of India’s top three exporters of frozen boneless buffalo meat (carabeef), commanding over 10% of India’s total export volumes. The company operates a fully integrated farm-to-fork processing infrastructure with modern abattoirs certified by APEDA and international food safety authorities, serving over 40 countries across the Middle East, Southeast Asia, and Africa.
• Top-Line Expansion vs. Margin Compression: Total revenues expanded robustly from INR 48,132.90 million in FY24 to INR 69,164.95 million in FY26, representing an annualized growth of over 19.8%. However, operating margins remain razor-thin (FY26 EBITDA margin of 3.22% and Net Margin of 2.38%), heavily exposed to raw livestock procurement costs, export freight volatility, and adverse foreign exchange fluctuations.
• Attractive Valuation Offset by Cash Flow Volatility: Trading at a trailing P/E of 4.7x and P/B of 1.1x at a share price of INR 21.83, HMAAGRO presents deep optical value. However, persistent working capital demands and procurement advances have led to negative free cash flows in two of the last three fiscal years (FY26 FCF at -INR 1,392.70 million), keeping financial resilience constrained.

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