Smartkarma Daily Briefs

• Earnings momentum accelerating driven by gold volume +20% and mine margin expansion to 60.6%, supported by disciplined cost control and strong operating cash flow.
• Copper–gold dual exposure provides structural upside with spot torque to Cu ~US$10,800/t and Au ~US$4,200/oz, reinforcing earnings visibility into FY26–27.
• Zijin Gold spin-off unlocks value via clean asset separation, improved capital efficiency, and SOTP rerating potential to HK$41–42/sh under spot scenario.

• Pending Acquisition by Cosette Pharma: Mayne Pharma‘s future is largely defined by a pending acquisition by Cosette Pharmaceuticals, which aims to create a leading entity in the U.S. Women’s Health and Dermatology sectors. However, the deal is subject to a legal dispute initiated by Cosette, creating significant uncertainty around its completion.
• Strategic Focus and Turnaround: Following a period of financial distress and a major asset sale in 2022, management has refocused the company on its core specialty areas of Women’s Health and Dermatology. This strategy has led to significant improvements in recent financial performance, with strong revenue growth and a return to positive operating cash flow.
• Highly Competitive Landscape: The company operates in the intensely competitive generic and specialty pharmaceutical markets. While it possesses a portfolio of branded products, it faces constant pricing pressure from larger competitors and other generic manufacturers, necessitating strong commercial execution.

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• Context: The ICICI Prudential Life (IPRU IN) vs. ICICI Lombard General Insurance (ICICIGI IN) price-ratio has deviated two standard deviations from its one-year average, presenting a potential relative value opportunity.
• Highlights: Going long ICICI Prudential Life (IPRU IN) and short ICICI Lombard General Insurance (ICICIGI IN) targets a 5% return.
• Why Read: Essential for quantitative traders seeking mean-reversion opportunities, with detailed execution framework, risk management protocols, and historical simulation showing the statistical basis for this relative value play.

• Wrkr Ltd (ASX:WRK) offers compliance solutions for Australian superannuation contributions and payroll including member onboarding, super payments, messaging and employee validation.
• We have taken the opportunity to incorporate the recent $15m capital raise into our numbers and fine tune client migration timing, which has resulted in reductions to our FY26 estimates, but an increase to our FY27 revenue forecasts as AustralianSuper (set to migrate between February and June 2026) is larger than our previous user assumptions.
• We also take a more aggressive view on near-term cost growth relative to revenue.

• GoodRx operates a leading digital healthcare platform in the U.S., capitalizing on the opaque and high-cost prescription drug market by offering price transparency and discounts, primarily earning revenue from Pharmacy Benefit Managers (PBMs).
• The company faces a highly competitive and evolving landscape with threats from direct competitors, large new entrants like Amazon, and disruptive models such as Mark Cuban’s Cost Plus Drugs, alongside significant reliance on a concentrated number of PBM partners.
• Future growth hinges on diversifying revenue streams beyond prescription transactions into pharma manufacturer solutions, subscription services (GoodRx Gold), and telehealth (GoodRx Care), while navigating regulatory risks and strengthening direct relationships with pharmacies.

This content is AI-generated and displayed for general informational purposes only. Please verify independently before use.

• Context: This Insight follows up on previously highlighted relative value opportunities, using a statistical methodology based on mean-reversion to identify opportunities in paired securities.
• Highlights: Currently elevenpair trade opportunities across three markets and seven sectors persist.
• Why read: Statistical analysis offers a unique perspective on relative value. Gain insights into actionable statistical pair trade opportunities and monitor performance of previously highlighted pairs.

• Istyle Inc (3660 JP) is a cosmetics retailer under the name @Cosme, but it is also an exemplar of how to build a true omnichannel business.
• Its effective use of the deep data available from the 10 million users on its core @Cosme platform is its key asset.
• It now targets ¥83 billion in sales this year, using data to expand into supplements and Femtech.

• Context: The Scentre Group (SCG AU) vs. Stockland (SGP AU) price-ratio has deviated more than two standard deviations from its one-year average, presenting a potential relative value opportunity.
• Highlights: Going long Scentre Group (SCG AU) and short Stockland (SGP AU) targets a 3% return.
• Why Read: Essential for quantitative traders seeking mean-reversion opportunities, with detailed execution framework, risk management protocols, and historical simulation showing the statistical basis for this relative value play.

• Price momentum and volume growth both remained weak in September 
• Mideast ceasefire raises possibility of Suez Canal re-opening in 2026
• Expect pricing to remain weak; Suez re-start would likely lead to losses

• Regulation steady, not softer; policy silence reaffirms the 24% cap as industry standard, with industry participants electing to comply with immediate effect.
• Asset stress rising; delinquencies peak as low-tier borrowers struggle, but QFIN’s disciplined underwriting and data scale set the stage for recovery in 2026e.
• Leadership and capital strength, market-leading balance sheet and strong commitment to shareholder returns underpin confidence through the transition phase.