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Smartkarma Daily Briefs

Apr 26
0

Daily Brief Event-Driven: YAGEO and Shibaura Still Fighting and more

By | Daily Briefs, Event-Driven

In today’s briefing:

  • YAGEO and Shibaura Still Fighting, Minebea Likely to Bid Up, The Question Is Another YAGEO Overbid
  • Hongkong Land (HKL SP) Recycles Nine Floors Of One Exchange Square
  • HLB Merger Arb Setup: How Cancellation Risk Could Lead to Extra Profits
  • SK Telecom’s Block Deal Sale of 10.8 Million Shares of Kakao Corp
  • Devyani International’s Acquisition of Sky Gate Hospitality: A Strategic Move for Accelerated Growth
  • Building the Arsenal: Indra’s Possible Merger with EM&E

YAGEO and Shibaura Still Fighting, Minebea Likely to Bid Up, The Question Is Another YAGEO Overbid

By Travis Lundy

  • Yageo Corporation (2327 TT) bid ¥4,300 for Shibaura Electronics (6957 JP). Minebea Mitsumi (6479 JP) overbid at ¥4,500. YAGEO overbid Minebea at ¥5,400 on 17 April (expected to start 7-May)
  • Apparently, YAGEO was a bit upset by the public comments by Shibaura regarding custom/mass-market/online different ways of doing business. YAGEO responded with receipts. Shibaura will respond later.
  • On the 22nd, Minebea noted they would delay their intended 23rd start date. Now they have more irrevocables. In the end, I expect YAGEO’s, not Minebea’s, top price defines this.

Hongkong Land (HKL SP) Recycles Nine Floors Of One Exchange Square

By David Blennerhassett

  • In a rare move, Jardine Matheson (JM SP)-controlled Hongkong Land (HKL SP) has sold nine floors (147,025 square feet) of One Exchange Square to HKEX (388 HK) for HK$6.3bn (US$810mn).
  • HKL plans to use the proceeds to provide enhancements to the property sold,  the reduction of net debt; and for a share buyback. Shares are up 9% as I type. 
  • HKL is focussed on divesting US$4bn to US$6bn of its balance sheet assets in the next three years. HKL’s CEO Michael Smith: “Recycling capital is our top priority right now“.

HLB Merger Arb Setup: How Cancellation Risk Could Lead to Extra Profits

By Sanghyun Park

  • We go long on HLB LS, short on HLB Inc, and close the short once HLB LS converts. If the deal falls through, there’s potential for extra profits.
  • The view that the merger’s worse for HLB LS is gaining support, making it likely the spread could go negative, though there’s risk, the chances are pretty high.
  • The 4% spread is the floor for arb profit, and cancellation risk could add extra gains. This angle deserves serious consideration right now.

SK Telecom’s Block Deal Sale of 10.8 Million Shares of Kakao Corp

By Douglas Kim

  • Prior to market open on 25 April, SK Telecom announced that it plans to sell 10.8 million shares of Kakao, representing 2.4% of outstanding shares in a  block deal sale.
  • The sale of Kakao Corp shares and using the proceeds to further acquire shares in SK Broadband and invest in AI businesses is a solid move by SK Telecom. 
  • We believe that this trading down gap of Kakao Corp is likely to be covered soon in the next several days/weeks so it represents a short term buying opportunity. 

Devyani International’s Acquisition of Sky Gate Hospitality: A Strategic Move for Accelerated Growth

By Nimish Maheshwari

  • Devyani International acquired an Indian QSR brand, Sky Gate, marking its entry into Biryani.
  • The acquisition deal is valued at INR 4.19 billion, translating to a relatively low 1.9x FY25 EV/Sales. This attractive valuation provides DIL with an entry into a high-TAM segment.
  • No single brand has surpassed INR 3 bn in revenue due to regional taste differences, difficulty in standardising quality, and difficulty in achieving profitability due to high operational costs

Building the Arsenal: Indra’s Possible Merger with EM&E

By Jesus Rodriguez Aguilar

  • Indra’s potential merger with Escribano aims to strengthen its industrial base for future European defense programs, but governance concerns and shareholder dilution risks are creating significant market uncertainty.
  • The transaction’s structure is critical: a pure share swap would preserve Indra’s balance sheet health, while a heavy cash component could raise leverage dangerously, approaching 3.4x net debt/EBITDA.
  • Event-Driven investors should de-risk ahead of the April 30 board meeting, monitor deal terms closely, and prepare to pivot based on the merger’s financing structure, governance safeguards, and strategic fit.

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Apr 26
0

Daily Brief Equity Bottom-Up: Top 10 Korean Stock Picks and Key Catalysts Bi-Weekly (Starting 28 April 2025) and more

By | Daily Briefs, Equity Bottom-Up

In today’s briefing:

  • Top 10 Korean Stock Picks and Key Catalysts Bi-Weekly (Starting 28 April 2025)
  • Kyoto Financial Group (TSE:5844) – Positive Shift in C-Suite Outlook
  • STMicroelectronics: Initiation of Coverage- An Insight Into Its Cost-Saving Initiatives & Financial Resilience!
  • Synopsys: Harnessing Complexity
  • Safran: Initiation of Coverage- Will the LEAP Engine Ramp-Up Reverse Its Stock Slide?
  • Vinci: Initiation of Coverage- From Data Centers to Airports—Is This the Most Overlooked Infrastructure Powerhouse in Europe?
  • Capgemini: Initiation of Coverage- Strategic Acquisitions & 4 Pivotal Growth Levers!
  • Legrand S.A.: Initiation of Coverage- How Are They Executing Geographical Diversification To Seize Growth Opportunities!
  • STMicro: Ugly but Mngt Says 1Q25 Is the Bottom. Restructuring Has to Start, Horrendous Inventories.
  • Waaree Energies Pre IPO Lock-In Opens: What’s The Way Ahead

Top 10 Korean Stock Picks and Key Catalysts Bi-Weekly (Starting 28 April 2025)

By Douglas Kim

  • In this insight, we provide the top 10 stocks picks and key catalysts in the Korean stock market for the two weeks starting 28 April.
  • Our top 10 picks in Korea were up on average 5.1% (from 11 to 25 April), outperforming KOSPI which is up 4.7% in the same period. 
  • Our top 10 picks in this bi-weekly include Hanwha Systems, Hyundai Elevator, HD Hyundai, Hyundai Rotem, SK Telecom, Samyang Foods, KT&G, Posco, SK Inc, and Korea Investment Holdings.

Kyoto Financial Group (TSE:5844) – Positive Shift in C-Suite Outlook

By Victor Galliano

  • Kyoto Financial’s president has hinted at increasing disposals in strategic equity holdings; the prior target was a JPY100bn reduction in holdings by March 2029, now there is talk of JPY200-300bn
  • We estimate Kyoto Financial’s equity holdings relative to market cap at 140%+, well above its peer banks; yet, until very recently, the president had been against meaningfully reducing equity holdings
  • The president’s change of view leads us to upgrade Kyoto Financial to a buy; the change in outlook means that there is real potential to extract value for shareholders

STMicroelectronics: Initiation of Coverage- An Insight Into Its Cost-Saving Initiatives & Financial Resilience!

By Baptista Research

  • STMicroelectronics reported its financial results for the fourth quarter and the fiscal year 2024, showcasing notable operational challenges within a volatile market environment.
  • The company experienced significant revenue declines amidst broader industry downturns particularly in its Industrial and Automotive segments.
  • For the fourth quarter, STMicroelectronics saw a year-over-year decline in net revenues by 22.4%, landing at $3.32 billion, but managed a slight sequential increase of 2.2%.

Synopsys: Harnessing Complexity

By MBI Deep Dives

  • Chip design has long been a paradoxical craft.
  • On one hand, engineers must trust sophisticated software to help them craft circuits of mind-boggling complexity; on the other, they maintain a healthy skepticism, knowing a single flaw can doom a chip.
  • The old mantra “trust, but verify” could well have been coined for this process.

Safran: Initiation of Coverage- Will the LEAP Engine Ramp-Up Reverse Its Stock Slide?

By Baptista Research

  • Safran’s financial results show a strong performance in 2024, with record highs in revenue, profit, and cash flows.
  • Revenue increased by 18% to €27.3 billion, largely driven by a 25% growth in civil aftermarket activities.
  • Operating margin improved by 150 basis points to 15.1%, supported by operational excellence and strong aftermarket demand.

Vinci: Initiation of Coverage- From Data Centers to Airports—Is This the Most Overlooked Infrastructure Powerhouse in Europe?

By Baptista Research

  • Vinci, a global leader in concessions, construction, and energy, reported its financial performance for the fiscal year 2024, showcasing both achievements and challenges that frame its investment outlook.
  • Positively, Vinci demonstrated robust revenue growth, achieving a 4% overall increase to reach record levels despite economic headwinds.
  • This growth stemmed from significant contributions across its diverse business segments—Concessions, Energy, and Construction.

Capgemini: Initiation of Coverage- Strategic Acquisitions & 4 Pivotal Growth Levers!

By Baptista Research

  • Capgemini’s full-year 2024 results reflect a mixed performance against a backdrop of continued market challenges.
  • The company’s revenues saw a decline of 2% at constant currency to EUR 22,096 million, evidencing the broader economic pressures and restrained client spending, especially in sectors like Manufacturing and regions such as France.
  • This drop was somewhat mitigated by resilience in segments such as Financial Services and Public Sector, and geographic improvement in North America, the U.K., Asia Pacific, and Latin America.

Legrand S.A.: Initiation of Coverage- How Are They Executing Geographical Diversification To Seize Growth Opportunities!

By Baptista Research

  • Legrand, a French multinational company specializing in electrical and digital building infrastructure, concluded 2024 with noteworthy results, achieving its stated financial targets.
  • The company reported a combined sales growth of 3.9%, driven by organic expansion and acquisitions, despite facing headwinds such as currency fluctuations and reduced contributions from Russia.
  • Most prominently, Legrand’s data center segment and strategic M&A activities contributed significantly to its performance.

STMicro: Ugly but Mngt Says 1Q25 Is the Bottom. Restructuring Has to Start, Horrendous Inventories.

By Nicolas Baratte

  • Very poor 1Q25, operating profit close to zero. 2Q a bit better with lower revenue decline, but OP still close to zero.  
  • Management claims 1Q is the bottom for revenues, its possible, but 2 large risks: restructuring costs and very high inventories.
  • Consensus expects a slow recovery into 2026, the stock looks cheap at 11x 2026 EPS. However, given the firm’s track record and the risks mentioned, lets wait 1 more quarter.

Waaree Energies Pre IPO Lock-In Opens: What’s The Way Ahead

By Sudarshan Bhandari

  • Waaree Energies posted exceptional Q4 and FY25 results, reporting a 72.6% YoY increase in EBITDA and a robust order book of INR 47,000 crores.
  • The company continues to ramp up its manufacturing capacities, with a focus on solar cells, modules, and energy storage, positioning itself as a leader in India’s solar transition.
  • Strong operational performance, strategic investments in green energy, and a solid order book enhance confidence in Waaree’s growth prospects for FY26 and beyond.

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Apr 26
0

Daily Brief Macro: HEW: Put Inside The Trump Collar and more

By | Daily Briefs, Macro

In today’s briefing:

  • HEW: Put Inside The Trump Collar
  • [IO Technicals Weekly 2025/17] Bullish Momentum Builds
  • The Diverging Impact of Falling Crude Prices on Various Oil Producing Regions
  • Indian Rubber Prices Shrugging Off Negative Trump Tariff Impact
  • Oilfield Services Industry to Bear the Brunt of Falling Oil Prices
  • “Trying To Crash The Market On Purpose”: How To Invest In A Trump Era
  • Actinver Research

HEW: Put Inside The Trump Collar

By Phil Rush

  • The US policy caused market volatility over Easter, creating a ‘Trump Collar’ to pricing, but the global economy remains unaffected by the attacks and uncertainty.
  • The upcoming week will see a heavy release of data, providing insights into current conditions.
  • Key data highlights include US payrolls, the ISMs, and Euro inflation for April, while Q1 EA and US GDP are likely to be discounted by the market as outdated information.

[IO Technicals Weekly 2025/17] Bullish Momentum Builds

By Pranay Yadav

  • SGX IO Futures gained $2.69/ton this week, closing at $100.24/ton on April 23, breaking above the R1 level of $99.00/ton.
  • Managed Money flipped to net short while Physicals turned net long, signaling a major positioning shift
  • MACD divergence and RSI at 51.09 reflect building bullish momentum despite prices trading below long-term moving averages.

The Diverging Impact of Falling Crude Prices on Various Oil Producing Regions

By Suhas Reddy

  • U.S. oil producers need prices between USD 61-70 per barrel to maintain profitability. With prices around USD 60 per barrel, drilling activity is likely to decrease.
  • Rising tariffs and trade uncertainty are increasing oilfield equipment costs and threatening production growth in the United States.
  • While Saudi Arabia faces fiscal pressures and OPEC supply constraints, Petrobras benefits from low breakeven costs, no OPEC restrictions, and strong investment.

Indian Rubber Prices Shrugging Off Negative Trump Tariff Impact

By Vinod Nedumudy

  • RSS-4 prices near stable around INR 198/kg for past ten days  
  • Kerala farmers engaged in rainguarding in right earnest  
  • RRII devises process for extracting top-quality rubber from skim latex  

Oilfield Services Industry to Bear the Brunt of Falling Oil Prices

By Suhas Reddy

  • Crude prices plunged to multi-year lows amid rising global supply and trade tensions, stoking demand fears and slowing U.S. shale activity.
  • Oilfield services firms are underperforming peers as falling rig counts and steel tariffs drive up costs and erode margins.
  • With fixed-cost-heavy models and fewer upstream clients, the sector faces amplified downside risks and limited pricing power in the near term.

“Trying To Crash The Market On Purpose”: How To Invest In A Trump Era

By Finimize Research

  • “Trump is trying to crash the market on purpose.” When I first heard this theory a few weeks ago, I quickly dismissed it as absurd.
  • But just two days after “Liberation Day” Trump himself reposted a video claiming that he was intentionally driving the market lower.
  • That made me take a second look (and this time, with a more open mind). Hhere’s what it said – plus, my take on whether its claims hold water.

Actinver Research

By Actinver

  • Consolidated sales of P$45.5bn were 10.4% higher YoY, and above our estimates and consensus.
  • This was driven by better-than-expected SSS in Liverpool, sales in Suburbia, and other businesses (financial and real estate), which grew above retail sales.
  • Liverpool and Suburbia posted SSS growth of 7.9% and 7.3%, respectively, ahead of our estimates and consensus.

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Apr 26
0

Daily Brief Australia: Iron Ore and more

By | Australia, Daily Briefs

In today’s briefing:

  • [IO Technicals Weekly 2025/17] Bullish Momentum Builds

[IO Technicals Weekly 2025/17] Bullish Momentum Builds

By Pranay Yadav

  • SGX IO Futures gained $2.69/ton this week, closing at $100.24/ton on April 23, breaking above the R1 level of $99.00/ton.
  • Managed Money flipped to net short while Physicals turned net long, signaling a major positioning shift
  • MACD divergence and RSI at 51.09 reflect building bullish momentum despite prices trading below long-term moving averages.

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Apr 26
0

Daily Brief South Korea: HLB Life Science, SK Telecom, Hanwha Systems Co Ltd, Coupang and more

By | Daily Briefs, South Korea

In today’s briefing:

  • HLB Merger Arb Setup: How Cancellation Risk Could Lead to Extra Profits
  • SK Telecom’s Block Deal Sale of 10.8 Million Shares of Kakao Corp
  • Top 10 Korean Stock Picks and Key Catalysts Bi-Weekly (Starting 28 April 2025)
  • JD Logistics Enters South Korea: Accelerated by Tariff War Between China and the US?

HLB Merger Arb Setup: How Cancellation Risk Could Lead to Extra Profits

By Sanghyun Park

  • We go long on HLB LS, short on HLB Inc, and close the short once HLB LS converts. If the deal falls through, there’s potential for extra profits.
  • The view that the merger’s worse for HLB LS is gaining support, making it likely the spread could go negative, though there’s risk, the chances are pretty high.
  • The 4% spread is the floor for arb profit, and cancellation risk could add extra gains. This angle deserves serious consideration right now.

SK Telecom’s Block Deal Sale of 10.8 Million Shares of Kakao Corp

By Douglas Kim

  • Prior to market open on 25 April, SK Telecom announced that it plans to sell 10.8 million shares of Kakao, representing 2.4% of outstanding shares in a  block deal sale.
  • The sale of Kakao Corp shares and using the proceeds to further acquire shares in SK Broadband and invest in AI businesses is a solid move by SK Telecom. 
  • We believe that this trading down gap of Kakao Corp is likely to be covered soon in the next several days/weeks so it represents a short term buying opportunity. 

Top 10 Korean Stock Picks and Key Catalysts Bi-Weekly (Starting 28 April 2025)

By Douglas Kim

  • In this insight, we provide the top 10 stocks picks and key catalysts in the Korean stock market for the two weeks starting 28 April.
  • Our top 10 picks in Korea were up on average 5.1% (from 11 to 25 April), outperforming KOSPI which is up 4.7% in the same period. 
  • Our top 10 picks in this bi-weekly include Hanwha Systems, Hyundai Elevator, HD Hyundai, Hyundai Rotem, SK Telecom, Samyang Foods, KT&G, Posco, SK Inc, and Korea Investment Holdings.

JD Logistics Enters South Korea: Accelerated by Tariff War Between China and the US?

By Douglas Kim

  • In the past week, one of the biggest stories in the Korean e-commerce/logistics market has been the entrance of JD Logistics into the South Korean market.
  • We believe that the ongoing tariff war between the US and China is likely to have accelerated this move by JD Logistics to find new markets for its products. 
  • If JD.com/JD Logistics decide to expand aggressively in Korea, the major Korean e-commerce players (such as Coupang (CPNG US), Naver Corp (035420 KS), Gmarket, and 11st) may be negatively impacted.

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Apr 26
0

Daily Brief Singapore: STMicroelectronics NV, SGX Rubber Future TSR20 and more

By | Daily Briefs, Singapore

In today’s briefing:

  • STMicro: Ugly but Mngt Says 1Q25 Is the Bottom. Restructuring Has to Start, Horrendous Inventories.
  • Indian Rubber Prices Shrugging Off Negative Trump Tariff Impact

STMicro: Ugly but Mngt Says 1Q25 Is the Bottom. Restructuring Has to Start, Horrendous Inventories.

By Nicolas Baratte

  • Very poor 1Q25, operating profit close to zero. 2Q a bit better with lower revenue decline, but OP still close to zero.  
  • Management claims 1Q is the bottom for revenues, its possible, but 2 large risks: restructuring costs and very high inventories.
  • Consensus expects a slow recovery into 2026, the stock looks cheap at 11x 2026 EPS. However, given the firm’s track record and the risks mentioned, lets wait 1 more quarter.

Indian Rubber Prices Shrugging Off Negative Trump Tariff Impact

By Vinod Nedumudy

  • RSS-4 prices near stable around INR 198/kg for past ten days  
  • Kerala farmers engaged in rainguarding in right earnest  
  • RRII devises process for extracting top-quality rubber from skim latex  

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Apr 26
0

Daily Brief United States: Synopsys Inc, Crude Oil, Alphabet, Sands China , SGX Rubber Future TSR20, Vince Holding and more

By | Daily Briefs, United States

In today’s briefing:

  • Synopsys: Harnessing Complexity
  • The Diverging Impact of Falling Crude Prices on Various Oil Producing Regions
  • Alphabet 1Q’25 Update
  • Lucror Analytics – Morning Views Asia
  • Oilfield Services Industry to Bear the Brunt of Falling Oil Prices
  • Indian Rubber Prices Shrugging Off Negative Trump Tariff Impact
  • VNCE: 4Q Preview; Being Realistic on Tariffs; Reit. Buy, Lowering PT & Estimate

Synopsys: Harnessing Complexity

By MBI Deep Dives

  • Chip design has long been a paradoxical craft.
  • On one hand, engineers must trust sophisticated software to help them craft circuits of mind-boggling complexity; on the other, they maintain a healthy skepticism, knowing a single flaw can doom a chip.
  • The old mantra “trust, but verify” could well have been coined for this process.

The Diverging Impact of Falling Crude Prices on Various Oil Producing Regions

By Suhas Reddy

  • U.S. oil producers need prices between USD 61-70 per barrel to maintain profitability. With prices around USD 60 per barrel, drilling activity is likely to decrease.
  • Rising tariffs and trade uncertainty are increasing oilfield equipment costs and threatening production growth in the United States.
  • While Saudi Arabia faces fiscal pressures and OPEC supply constraints, Petrobras benefits from low breakeven costs, no OPEC restrictions, and strong investment.

Alphabet 1Q’25 Update

By MBI Deep Dives

  • On an FX adjusted basis, Alphabet increased its revenue by 14% in 1Q’25 (~200 bps headwind from FX).
  • For the 11th consecutive quarters, Google network’s revenue went down.
  • Just when regulators are lambasting Google for their network business in court, it keeps dwindling to oblivion.

Lucror Analytics – Morning Views Asia

By Leonard Law, CFA

  • In today’s Morning Views publication we comment on developments of the following high yield issuers: Sands China, SK Hynix
  • The rebound in US equity continued overnight, amid bets the Fed could cut rates sooner than anticipated to prevent a recession. The S&P 500 rallied by 2%, while US treasuries rallied 7-9 bps across the curve.
  • Some 5 bps of additional Fed cuts were priced in for 2025 after comments by Fed officials. Gold climbed 1.7%, continuing its strong rally YTD.

Oilfield Services Industry to Bear the Brunt of Falling Oil Prices

By Suhas Reddy

  • Crude prices plunged to multi-year lows amid rising global supply and trade tensions, stoking demand fears and slowing U.S. shale activity.
  • Oilfield services firms are underperforming peers as falling rig counts and steel tariffs drive up costs and erode margins.
  • With fixed-cost-heavy models and fewer upstream clients, the sector faces amplified downside risks and limited pricing power in the near term.

Indian Rubber Prices Shrugging Off Negative Trump Tariff Impact

By Vinod Nedumudy

  • RSS-4 prices near stable around INR 198/kg for past ten days  
  • Kerala farmers engaged in rainguarding in right earnest  
  • RRII devises process for extracting top-quality rubber from skim latex  

VNCE: 4Q Preview; Being Realistic on Tariffs; Reit. Buy, Lowering PT & Estimate

By Small Cap Consumer Research

  • We are lowering our FY25 projections and price target for Vince Holding ahead of the company reporting 4QFY24 (January) results next Friday.
  • While we love the company’s product direction, material returns from further expansion in men’s and accessories, ability to open new stores in key domestic and international arenas and the potential to add more wholesale relationships, and believe new management, under CEO Brendan Hoffman, is highly motivated to expand the brand and reach of Vince, we believe the company, with 79% of goods purchased from China in FY23, will be materially impacted in the near term by the current tariff regime, especially as they pivot in FY25.
  • As such, we believe the material turn in earnings we previously projected will now be shifted into FY26, and we are lowering our FY25 EPS from $0.55 to a loss per share of $0.08 and cutting our VNCE price target to $4 (from $6).

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Apr 26
0

Daily Brief India: Devyani International , Waaree Energies, Gold Plus Glass Industry Ltd, SGX Rubber Future TSR20, Jio Financial Services and more

By | Daily Briefs, India

In today’s briefing:

  • Devyani International’s Acquisition of Sky Gate Hospitality: A Strategic Move for Accelerated Growth
  • Waaree Energies Pre IPO Lock-In Opens: What’s The Way Ahead
  • From Panels to Powerhouses: How Waaree Energies Is Building India’s Solar Backbone
  • Gold Plus Glass Industry Pre-IPO – Volatile Margins and Rising Debt
  • Indian Rubber Prices Shrugging Off Negative Trump Tariff Impact
  • Jio Financial Q4 FY25 Update: Strategic Growth and Digital Expansion Drive Strong Performance

Devyani International’s Acquisition of Sky Gate Hospitality: A Strategic Move for Accelerated Growth

By Nimish Maheshwari

  • Devyani International acquired an Indian QSR brand, Sky Gate, marking its entry into Biryani.
  • The acquisition deal is valued at INR 4.19 billion, translating to a relatively low 1.9x FY25 EV/Sales. This attractive valuation provides DIL with an entry into a high-TAM segment.
  • No single brand has surpassed INR 3 bn in revenue due to regional taste differences, difficulty in standardising quality, and difficulty in achieving profitability due to high operational costs

Waaree Energies Pre IPO Lock-In Opens: What’s The Way Ahead

By Sudarshan Bhandari

  • Waaree Energies posted exceptional Q4 and FY25 results, reporting a 72.6% YoY increase in EBITDA and a robust order book of INR 47,000 crores.
  • The company continues to ramp up its manufacturing capacities, with a focus on solar cells, modules, and energy storage, positioning itself as a leader in India’s solar transition.
  • Strong operational performance, strategic investments in green energy, and a solid order book enhance confidence in Waaree’s growth prospects for FY26 and beyond.

From Panels to Powerhouses: How Waaree Energies Is Building India’s Solar Backbone

By Viral Kishorchandra Shah

  • Waaree Energies is rapidly expanding, targeting 21 GW solar modules, 11.4 GW cells, and 6 GW ingots by FY27
  • The company boasts a robust Rs 47,000 crore order book, with 57% international and 43% domestic market share
  • Waaree diversifies into batteries, green hydrogen, and inverters, while mitigating risks via local production

Gold Plus Glass Industry Pre-IPO – Volatile Margins and Rising Debt

By Rosita Fernandes

  • Gold Plus Glass Industry Ltd (GPGI IN) is planning to raise about US$200m in its upcoming India IPO. 
  • Gold Plus Glass Industry Ltd (GPGI) is engaged in the manufacturing of float glass, mirrors, and other value-added types of glass.
  • According to the CRISIL Report, GPGI was India’s second-largest float glass manufacturer, holding a 22% market share as of Sept 2023. 

Indian Rubber Prices Shrugging Off Negative Trump Tariff Impact

By Vinod Nedumudy

  • RSS-4 prices near stable around INR 198/kg for past ten days  
  • Kerala farmers engaged in rainguarding in right earnest  
  • RRII devises process for extracting top-quality rubber from skim latex  

Jio Financial Q4 FY25 Update: Strategic Growth and Digital Expansion Drive Strong Performance

By Sudarshan Bhandari

  • Jio Financial Services (JIOFIN IN) reported a substantial increase in its Assets Under Management (AUM) to 10,053 crore, marking a 139% QoQ growth.
  • The company’s digital-first approach through the JioFinance app and the rapid growth in Jio Payments Bank’s customer base demonstrate its expanding market footprint and customer engagement.
  • The strategic investments in technology, robust growth in core segments, and improved customer acquisition processes provide strong momentum for FY26 and beyond, reinforcing confidence in JFSL’s growth trajectory.

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Apr 26
0

Daily Brief Japan: Shibaura Electronics, Kyoto Financial Group , Daiichi Sankyo, Chugai Pharmaceutical, Istyle Inc and more

By | Daily Briefs, Japan

In today’s briefing:

  • YAGEO and Shibaura Still Fighting, Minebea Likely to Bid Up, The Question Is Another YAGEO Overbid
  • Kyoto Financial Group (TSE:5844) – Positive Shift in C-Suite Outlook
  • Daiichi Sankyo (4568 JP): Strong FY25 Result; Guidance Initiated for FY26; ¥200B Buyback Announced
  • Chugai Pharmaceutical (4519 JP): Hemlibra, Actemra, And Alecensa Shine In 1Q25; Guidance Reiterated
  • IStyle (3660 JP) Ups Investment in Retail

YAGEO and Shibaura Still Fighting, Minebea Likely to Bid Up, The Question Is Another YAGEO Overbid

By Travis Lundy

  • Yageo Corporation (2327 TT) bid ¥4,300 for Shibaura Electronics (6957 JP). Minebea Mitsumi (6479 JP) overbid at ¥4,500. YAGEO overbid Minebea at ¥5,400 on 17 April (expected to start 7-May)
  • Apparently, YAGEO was a bit upset by the public comments by Shibaura regarding custom/mass-market/online different ways of doing business. YAGEO responded with receipts. Shibaura will respond later.
  • On the 22nd, Minebea noted they would delay their intended 23rd start date. Now they have more irrevocables. In the end, I expect YAGEO’s, not Minebea’s, top price defines this.

Kyoto Financial Group (TSE:5844) – Positive Shift in C-Suite Outlook

By Victor Galliano

  • Kyoto Financial’s president has hinted at increasing disposals in strategic equity holdings; the prior target was a JPY100bn reduction in holdings by March 2029, now there is talk of JPY200-300bn
  • We estimate Kyoto Financial’s equity holdings relative to market cap at 140%+, well above its peer banks; yet, until very recently, the president had been against meaningfully reducing equity holdings
  • The president’s change of view leads us to upgrade Kyoto Financial to a buy; the change in outlook means that there is real potential to extract value for shareholders

Daiichi Sankyo (4568 JP): Strong FY25 Result; Guidance Initiated for FY26; ¥200B Buyback Announced

By Tina Banerjee

  • Daiichi Sankyo (4568 JP) reported strong FY25 results, with revenue and operating profit increasing 18% and 57%, YoY, to ¥1,886B and ¥332B, respectively. Performance was mainly driven by Enhertu (+45%).
  • The company expects FY26 revenue to increase 6% YoY to ¥2,000B. Core operating profit and operating profit are expected to increase 12% and 5%, YoY, respectively to ¥350B.
  • The company has announced a ¥200B buyback plan to acquire a maximum of 80M shares from May 1, 2025 to March 24, 2026.

Chugai Pharmaceutical (4519 JP): Hemlibra, Actemra, And Alecensa Shine In 1Q25; Guidance Reiterated

By Tina Banerjee

  • Chugai Pharmaceutical (4519 JP) reported 22% YoY rise in core revenue in 1Q25, as overseas sales grew 55% YoY while domestic market remain subdued.
  • Hemlibra drove overseas sales. Actemra and Alecensa witnessed growth in both overseas and domestic markets.
  • Chugai reiterated 2025 guidance of revenue and net profit growth of 2% and 3%. The progress has been satisfactory with major line items achieving 24–25% of the full-year guidance numbers.

IStyle (3660 JP) Ups Investment in Retail

By Michael Causton

  • IStyle continues to benefit from its focus on omnichannel retailing.
  • Customers who use both its online and physical stores spend 1.5 times more than those only shopping online,
  • To further cement its hold in key areas, it has just unveiled an updated flagship store with target sales of ¥10 billion.

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Apr 26
0

Daily Brief China: Hongkong Land, China Mobile, Deepexi Technology and more

By | China, Daily Briefs

In today’s briefing:

  • Hongkong Land (HKL SP) Recycles Nine Floors Of One Exchange Square
  • China Mobile (941 HK) Tactical Outlook Following Q1 2025 Results
  • Deepexi Technology Pre-IPO Tearsheet
  • Asia Real Estate Tracker (25-Apr-2025): HKEX buys 9 floors at Exchange Square for $810M.

Hongkong Land (HKL SP) Recycles Nine Floors Of One Exchange Square

By David Blennerhassett

  • In a rare move, Jardine Matheson (JM SP)-controlled Hongkong Land (HKL SP) has sold nine floors (147,025 square feet) of One Exchange Square to HKEX (388 HK) for HK$6.3bn (US$810mn).
  • HKL plans to use the proceeds to provide enhancements to the property sold,  the reduction of net debt; and for a share buyback. Shares are up 9% as I type. 
  • HKL is focussed on divesting US$4bn to US$6bn of its balance sheet assets in the next three years. HKL’s CEO Michael Smith: “Recycling capital is our top priority right now“.

China Mobile (941 HK) Tactical Outlook Following Q1 2025 Results

By Nico Rosti

  • On April 22, 2025, China Mobile (941 HK) reported its Q1 2025 financial results, revenues substantially unchanged, but increase in net income and subscriber growth indicates resilience in its operations.
  • The initial market reaction suggests mild disappointment, the stock retreated to a low <80 intra-week, then closed the week down at 80.85.
  • Our price model shows an oversold state, while the time model indicates there is room for another week down, possibly a buy-the-dip opportunity (3 weeks down should be the limit).

Deepexi Technology Pre-IPO Tearsheet

By Akshat Shah

  • Deepexi Technology (1843779D CH) (DT) is looking to raise atleast US$100m in its upcoming Hong Kong IPO. The deal will be run by CITIC, CMBC, Guotai, Bocom International and SPDB International.
  • The firm specializes in delivering AI solutions to enterprises to integrate their data, decisions and operations efficiently at scale. 
  • DT ranked first among specialized providers of large model AI application solutions in China’s enterprise large model AI application solution market in terms of revenue in 2024, according to F&S.

Asia Real Estate Tracker (25-Apr-2025): HKEX buys 9 floors at Exchange Square for $810M.

By Asia Real Estate Tracker

  • Hong Kong Exchanges and Clearing Limited (HKEX) is purchasing 9 floors at Exchange Square in Hong Kong for $810 million, marking the top deal of the year.
  • The California Public Employees’ Retirement System (CalPERS) fund has acquired an office tower near Shanghai Xintiandi for $316 million.
  • Mitsubishi Estate has started construction on a $1.7 billion office project in London, further solidifying its presence in the city’s real estate market.

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