Smartkarma Daily Briefs

Horizon Robotics (9660 HK) will be added to Southbound Stock Connect from the start of trading today. Then there will be passive buying at the close on 20 June.
The lock up expiry in April will result in large buying from trackers of the Hang Seng TECH Index (HSTECH INDEX) and HSIII Index in September.
The stock will also be added to another large global index, though the timing on inclusion is not certain at the moment.

Curator’s Cut: Korea’s Value, CATL’s Charge and Copper’s Surge

By Pranav Rao

Welcome to Curator’s Cut, a fortnightly roundup of standout themes from the 1,200+ insights published over the past two weeks on Smartkarma
In this cut, we look at Korea’s compelling valuation versus AxJ equities, CATL’s blockbuster Hong Kong listing and its market implications, and explore copper’s price surge amidst Chinese demand
Want to dig deeper? Comment or message with the themes you think should be highlighted next

STAR Chip/ CES Chips/ CNI Chips Index Rebalance Preview: Multiple Stocks with Overlapping Flow

There could be 1 change each for the STAR Chip Index and CNI Semiconductor Chips Index, and 3 changes for the CES China Semiconductor Chips Index in June.
There are a few stocks that will have same-way flow from passive trackers of the STAR50 INDEX, STAR 100 Index, CSI 500 Index, CSI 1000 Index and CSI A500 Index.
The round-trip trade across the indices is CNY 2.9bn (US$400m) and will add to the impact across the other China indices that rebalance on the same day.

Tongcheng Travel (780 HK): Regaining Momentum, Better Choice than Trip.com

By Osbert Tang, CFA

Tongcheng Travel Holdings (780 HK)‘s 1Q25 adjusted net profit surged 41.1%, suggesting an accelerating momentum. It should continue to outperform Trip.com Group (9961 HK).
Good cost management, even as revenue rose 13.2%, has enhanced adjusted EBITDA margin by 5.3pp YoY – this trend will sustain.
More visa convenience will boost inbound and outbound travel. At end-1Q25, net cash equals 14% of market capitalisation, and it can still generate ROE of 12-15%.

Alibaba (9988 HK): Unpacking the Week’s Savvy Top Options Trades

By Gaudenz Schneider

Over the past five trading days, Alibaba Group Holding (9988 HK) multi-leg option strategies showcased a variety of approaches. Strategy highlights are provided.
Popular Strategies: Over 35% of all strategies are Calendar or Diagonal Spreads. Bullish and bearish views prevail at equal rates, with very few market-neutral views expressed.
Top Trades: Some market participants were betting on a short term re-bound after the post-earnings drop. Others take a bearish view with finely calibrated medium-term hedges. Trade-examples are presented.

Alibaba (9988 HK): Navigating Post-Earnings Volatility

By Gaudenz Schneider

Implied Volatility Trends:Alibaba Group Holding’s (9988 HK) one-month implied volatility has significantly receded to the 37th percentile after its 15 May earnings, reflecting a substantial implied vola crush.
Skew and Term Structure Dynamics: The implied volatility term structure is now slightly upward-sloping with longer-dated options commanding a small premium. Skew dynamics indicate cheaper puts.
Open Interest Distribution: Liquidity is greatest in the June and September expiries. Short term strikes are concentrated near or at the money.

ECM Weekly (26 May 2025) – CATL, Hengrui, Eastroc, Haitian, Schloss, Aegis, Hyundai Marine, Pony

By Sumeet Singh

Aequitas Research’s weekly update on the IPOs, placements, lockup expiry and other ECM linked events that were covered by the team over the past week.
On the IPO front, Contemporary Amperex Technology (CATL) (300750 CH) and Jiangsu Hengrui Pharmaceuticals (1276 HK) performance has paved the way for a slew of A/H listings to follow.
On the placements front, there was a large selldown in HD Hyundai Marine Solution (443060 KS) and a lockup release for Pony AI (PONY US) is coming up.

Guangdong Investment (270): Stable Diversifier and USD 1.3 Bn FCF

By Henry Soediarko

Guangdong Investment (270 HK) exposure in water distribution provides the much-needed stability (low volatility). While its Real Estate exposure could provide some growth.
With low valuation and healthy dividend yield, owning GDI during the tumultuous period will provide healthy diversification for your portfolio and a hedge during Trump’ tariff period.
The water sector is undervalued, mainly due to the characteristically low growth, but free cash flow is generally quite strong yet undervalued. GDI generated USD 1.3 bn Free cash flow.

Pre-IPO Foshan Haitian Flavouring & Food Company (PHIP Updates) – Some Points Worth the Attention

By Xinyao (Criss) Wang

Despite returning to positive growth, Haitian still failed to achieve its 2024 revenue target, mainly due to underperformance of Soy sauce products, consumption downgrades, slow online layout/distributors recovery.
Haitian would face dual challenges of “cost increase + structural transformation” in the next three years due to inflation and the negative impact of “new standard”. We shared our performance forecast.
High valuation is unsustainable if based on current growth rate.Reasonable valuation is about 20-30x P/E. However, due to the strong sentiment for AH listing, share price may still perform well.

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May 26

Daily Brief Japan: Tsuruha Holdings, Toyota Industries, Jade Group and more

By Smartkarma Daily Briefs | Daily Briefs, Japan

In today’s briefing:

Tsuruha (3391 JP)/Welcia (3141 JP): Vote Musings
Weekly Deals Digest (25 May) – Toyota Industries, Shibaura, ESR, Soundwill, Mayne Pharma, GMO
Jade Group: Magaseek and Locondo Stall

Tsuruha (3391 JP)/Welcia (3141 JP): Vote Musings

Leading proxies recommend that Tsuruha Holdings (3391 JP) shareholders vote against the Tsuruha/Welcia Holdings (3141 JP) merger on 26 May.
The share exchange terms favour Welcia over Tsuruha shareholders. The Tsuruha vote will be close but likely to be approved. Long Tsuruha is the trade, irrespective of the vote.
For a vote pass, you are long synergies and a likely partial offer bump. For a fail, you are long an undemanding multiple and the optionality of a new bid.

Weekly Deals Digest (25 May) – Toyota Industries, Shibaura, ESR, Soundwill, Mayne Pharma, GMO

A weekly summary of key developments across ECM and Event-Driven names tracked by us across Hong Kong, Australia, New Zealand, Singapore, Japan, Indonesia, Malaysia, Thailand, Korea, India and Chinese ADRs.
ECM developments: GMO Internet (4784 JP) secondary offering of 91.7 million shares, worth around US$1.9 billion.
Event-Driven developments: Toyota Industries (6201 JP), Shibaura Electronics (6957 JP), ESR Group (1821 HK), Soundwill Holdings (878 HK), Mayne Pharma (MYX AU), Gold Road Resources (GOR AU).

Jade Group: Magaseek and Locondo Stall

By Michael Causton

Jade Group (3558 JP) made some wild promises about its potential to grow its online fashion mall business last year when it acquired Magaseek.
But recent results suggest what many feared: building scale without due regard for the quality of the assets acquired does not an empire make.
With Magaseek contracting and e-commerce overall showing muted growth, Jade Group´s capacity to escape the shadow of the big three looks limited.

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May 26

Most Read: Alibaba Group Holding , Horizon Robotics, Tsuruha Holdings, Soundwill Holdings, Toyota Industries, Mayne Pharma, Eternal, Samsung Biologics , Elite Material and more

By Smartkarma Daily Briefs | Daily Briefs, Most Read

In today’s briefing:

Why Is Michael Burry So Bearish on Alibaba (And Other Major Chinese Tech Stocks)?
Horizon Robotics (9660 HK): Southbound Stock Connect Inclusion Today & Upcoming Index Flows
Tsuruha (3391 JP)/Welcia (3141 JP): Vote Musings
Soundwill Holdings (878 HK): Hard Lessons from Another HK Arbageddon
Last Week in Event SPACE: Toyota Industries, CATL, Mitsubishi Logisnext, Mayne Pharma, Melco
Weekly Deals Digest (25 May) – Toyota Industries, Shibaura, ESR, Soundwill, Mayne Pharma, GMO
Merger Arb Mondays (26 May) – Mayne, Seven & I, Shibaura, Welcia/Tsuruha, Nissin, ESR, Dickson
Zomato/Eternal: The BIG Passive Selling Starts
Clarifying a Few Points of Confusion Surrounding the Samsung Biologics Spin-Off
Taiwan Top 50 ETF Rebalance Preview: Elite Material (2383 TT) Walking a Fine Line

Why Is Michael Burry So Bearish on Alibaba (And Other Major Chinese Tech Stocks)?

By Douglas Kim

It recently became publicly available that Michael Burry (CEO of Scion Asset Management) started buying put options on numerous Chinese stocks including Alibaba Group Holding (BABA US).
We highlight four major reasons why Burry may have turned bearish on Chinese tech names (tariffs, delisting threats, increasing hostile political pressure on China, and China’s 30 year bond yield).
Although we do not know exactly know how Burry has changed his position in 2Q25, he is likely to have reduced put options on major Chinese tech stocks in April/May.

Horizon Robotics (9660 HK): Southbound Stock Connect Inclusion Today & Upcoming Index Flows

Horizon Robotics (9660 HK) will be added to Southbound Stock Connect from the start of trading today. Then there will be passive buying at the close on 20 June.
The lock up expiry in April will result in large buying from trackers of the Hang Seng TECH Index (HSTECH INDEX) and HSIII Index in September.
The stock will also be added to another large global index, though the timing on inclusion is not certain at the moment.

Tsuruha (3391 JP)/Welcia (3141 JP): Vote Musings

Leading proxies recommend that Tsuruha Holdings (3391 JP) shareholders vote against the Tsuruha/Welcia Holdings (3141 JP) merger on 26 May.
The share exchange terms favour Welcia over Tsuruha shareholders. The Tsuruha vote will be close but likely to be approved. Long Tsuruha is the trade, irrespective of the vote.
For a vote pass, you are long synergies and a likely partial offer bump. For a fail, you are long an undemanding multiple and the optionality of a new bid.

Soundwill Holdings (878 HK): Hard Lessons from Another HK Arbageddon

Soundwill Holdings (878 HK) shareholders have voted against the Foo family’s HK$8.50 per share offer. The minority participation rate was high, and the NO vote comfortably failed the value test.
Unlike the Goldlion Holdings (533 HK) deal break, the price action over the last three days pointed to a deal break. Like previous deal breaks, this one offers hard lessons.
Soundwill has the fourth-highest premium of the pre-deal break price to the undisturbed price compared to previous deal breaks. My estimated deal-break price is HK$5.63, 13.2% below the last close.

Last Week in Event SPACE: Toyota Industries, CATL, Mitsubishi Logisnext, Mayne Pharma, Melco

Winner winner chicken dinner. A Nikke article suggests a bid higher than ¥6tn for Toyota Industries (6201 JP). In addition, people thinking about ¥18,400/share are going about this incorrectly.
Contemporary Amperex Technology (CATL) (3750 HK) pops on its IPO debut. The HKEx has issued a high concentration warning
Mitsubishi Logisnext Co., Ltd. (7105 JP) is still ragingly cheap given the move to delist dual parent/sub listings and having a global footprint. Own it here and now.

Weekly Deals Digest (25 May) – Toyota Industries, Shibaura, ESR, Soundwill, Mayne Pharma, GMO

A weekly summary of key developments across ECM and Event-Driven names tracked by us across Hong Kong, Australia, New Zealand, Singapore, Japan, Indonesia, Malaysia, Thailand, Korea, India and Chinese ADRs.
ECM developments: GMO Internet (4784 JP) secondary offering of 91.7 million shares, worth around US$1.9 billion.
Event-Driven developments: Toyota Industries (6201 JP), Shibaura Electronics (6957 JP), ESR Group (1821 HK), Soundwill Holdings (878 HK), Mayne Pharma (MYX AU), Gold Road Resources (GOR AU).

Merger Arb Mondays (26 May) – Mayne, Seven & I, Shibaura, Welcia/Tsuruha, Nissin, ESR, Dickson

We summarise the latest spreads and newsflow of merger arb situations we cover across Hong Kong, Australia, New Zealand, Singapore, Japan, Indonesia, Malaysia, Philippines, Thailand and Chinese ADRs.
Highest spreads: Mayne Pharma (MYX AU), Insignia Financial (IFL AU), ENN Energy (2688 HK), Seven & I Holdings (3382 JP), Smartpay Holdings (SPY NZ), ZEEKR (ZK US).
Lowest spreads: Bright Smart Securities And (1428 HK), Dada Nexus (DADA US), Amara Holdings (AMA SP), Nissin Corp (9066 JP), Avjennings Ltd (AVJ AU), SLB Development (SLB SP).

Zomato/Eternal: The BIG Passive Selling Starts

Following shareholder approval of the proposal to reduce the Foreign Ownership Limit from 100% to 49.5%, NSDL has updated the FOL. This starts the process of passive selling in Zomato.
Passives will sell US$350m at the close on Tuesday. There is a low probability of more selling later in the week. There will be bigger selling in August.
The size of the selling in August and beyond will depend on what foreign investors do in the stock till the end of June. Watch the red flag/ breach list.

Clarifying a Few Points of Confusion Surrounding the Samsung Biologics Spin-Off

By Sanghyun Park

Will the newly listed spinco also IPO Samsung Bioepis? That’s a textbook ECO — and could spark shareholder value dilution concerns, regulatory pushback, or even a potential KRX block.
The 8% dip looks tied to IPO fears around Bioepis. If Samsung hard-locks its no-IPO stance and FSS signs off, a near-term bounce in Biologics could be in play.
Post-Listing, watch for Samsung C&T to shift exposure—potentially boosting the surviving company’s value while capping the spinco. Sets up a compelling relative-value trade worth positioning for.

Taiwan Top 50 ETF Rebalance Preview: Elite Material (2383 TT) Walking a Fine Line

Elite Material (2383 TT)‘s stock price has soared recently and is forecast to be added to the Yuanta/P-Shares Taiwan Top 50 ETF in June, replacing Unimicron Technology (3037 TT).
Passive trackers will have 1 day of ADV to buy in Elite Material (2383 TT) and over 1 day of ADV to sell in Unimicron Technology (3037 TT).
However, Elite Material is at risk of deletion from another ETF where the impact of passive selling is a lot bigger. Tricky interplay between the two ETFs.

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May 25

Daily Brief ESG: A Company that Performs Well Has Shareholders with Influential Equity Interests and more

By Smartkarma Daily Briefs | Daily Briefs, ESG

In today’s briefing:

A Company that Performs Well Has Shareholders with Influential Equity Interests

A Company that Performs Well Has Shareholders with Influential Equity Interests

By Aki Matsumoto

The biggest difference between founder family companies and others is the shareholding, and the presence of certain percentage of founder family’s equity would have positive impact on management and performance.
When the founding family is a major shareholder, they can manage the company from the same perspective as shareholders, sharing the same goal of maximizing corporate value with them.
A company with shareholders with equity interests that exceed a certain level of influence cannot manage without regard to its shareholders. MBOs are also expected for founder family companies.

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May 25

Daily Brief Thematic (Sector/Industry): APAC Healthcare Weekly (May 25)- 3SBio and more

By Smartkarma Daily Briefs | Daily Briefs, Thematic (Sector/Industry)

In today’s briefing:

APAC Healthcare Weekly (May 25)- 3SBio, Samsung Biologics, Celltrion, CSPC Pharma, Chugai

APAC Healthcare Weekly (May 25)- 3SBio, Samsung Biologics, Celltrion, CSPC Pharma, Chugai

By Tina Banerjee

3SBio entered into an exclusive licensing agreement with Pfizer granting them exclusive license to develop, manufacture, commercialize, and otherwise exploit its breakthrough PD-1/VEGF bispecific antibody SSGJ-707 worldwide excluding mainland China.
CSPC Pharmaceutical Group Limited announced that CPO301, their first-in-class epidermal growth factor receptor (‘‘EGFR’’) antibody drug conjugate (ADC), has been granted the third Fast Track designation by the U.S. FDA.
Samsung Biologics Co. announced that it plans to spin off its biosimilar development business into separate new entity, Samsung Epis Holdings. Samsung Biologics will become a pure-play CDMO.

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May 25

Daily Brief ECM: China Healthcare Weekly (May 25) – Pfizer-3SBio’s Record-Breaking Deal and more

By Smartkarma Daily Briefs | Daily Briefs, ECM

In today’s briefing:

China Healthcare Weekly (May 25) – Pfizer-3SBio’s Record-Breaking Deal, RemeGen’s HK$796Mn Placing

China Healthcare Weekly (May 25) – Pfizer-3SBio’s Record-Breaking Deal, RemeGen’s HK$796Mn Placing

By Xinyao (Criss) Wang

The 11th batch of national VBP rules is expected to include optimizations aimed at balancing bidding prices with drug quality
The US$6 billion deal between Pfizer and 3SBio has energized the innovative drug industry. While 3SBio’s valuation may continue to rise, Akeso’s valuation could face downward revisions.
RemeGen has shown positive momentum, with its valuation reflecting RC18’s successful out-licensing already. Its recent HK$796 million placement indicates a clear intent to raise funds at a premium.

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May 25

Daily Brief Event-Driven: Soundwill Holdings (878 HK): Hard Lessons from Another HK Arbageddon and more

By Smartkarma Daily Briefs | Daily Briefs, Event-Driven

In today’s briefing:

Soundwill Holdings (878 HK): Hard Lessons from Another HK Arbageddon
Last Week in Event SPACE: Toyota Industries, CATL, Mitsubishi Logisnext, Mayne Pharma, Melco
(Mostly) Asia-Pac M&A: Xanadu Mines, Reject Shop, ESR Group, Shibaura Elect., Jamco, Tsuruha/Welcia
Event Driven: Bajaj Auto Acquired Majority Control of Austrian KTM

Soundwill Holdings (878 HK): Hard Lessons from Another HK Arbageddon

Soundwill Holdings (878 HK) shareholders have voted against the Foo family’s HK$8.50 per share offer. The minority participation rate was high, and the NO vote comfortably failed the value test.
Unlike the Goldlion Holdings (533 HK) deal break, the price action over the last three days pointed to a deal break. Like previous deal breaks, this one offers hard lessons.
Soundwill has the fourth-highest premium of the pre-deal break price to the undisturbed price compared to previous deal breaks. My estimated deal-break price is HK$5.63, 13.2% below the last close.

Last Week in Event SPACE: Toyota Industries, CATL, Mitsubishi Logisnext, Mayne Pharma, Melco

Winner winner chicken dinner. A Nikke article suggests a bid higher than ¥6tn for Toyota Industries (6201 JP). In addition, people thinking about ¥18,400/share are going about this incorrectly.
Contemporary Amperex Technology (CATL) (3750 HK) pops on its IPO debut. The HKEx has issued a high concentration warning
Mitsubishi Logisnext Co., Ltd. (7105 JP) is still ragingly cheap given the move to delist dual parent/sub listings and having a global footprint. Own it here and now.

(Mostly) Asia-Pac M&A: Xanadu Mines, Reject Shop, ESR Group, Shibaura Elect., Jamco, Tsuruha/Welcia

I tally 46 – mostly firm, mostly Asia-Pac – arb transactions currently being discussed and analysed on Smartkarma.
Just one new deal was discussed on Smartkarma this week: Bastion’s off-market Offer for Xanadu Mines (XAM AU).
Key updates/news took place on: Reject Shop (TRS AU),ESR Group (1821 HK), Shibaura Electronics (6957 JP),Jamco Corp (7408 JP), and Tsuruha Holdings (3391 JP)/Welcia Holdings (3141 JP).

Event Driven: Bajaj Auto Acquired Majority Control of Austrian KTM

By Nimish Maheshwari

Bajaj Auto will take majority control of KTM AG by buying out its Austrian partner in Pierer Bajaj AG and injecting €800 million to close KTM’s court-approved restructuring.
The deal rescues a flagship European brand from insolvency, safeguards KTM’s supply chain, and vaults Bajaj into the global premium-sport segment as an OEM rather than a contract partner.
Bajaj’s pivot from passive investor to turnaround owner adds earnings volatility near-term, but long-term it secures technology, brand equity, and a bigger share of high-margin 400-1,000 cc bikes.

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May 25

Daily Brief Equity Bottom-Up: Why Is Michael Burry So Bearish on Alibaba (And Other Major Chinese Tech Stocks)? and more

By Smartkarma Daily Briefs | Daily Briefs, Equity Bottom-Up

In today’s briefing:

Why Is Michael Burry So Bearish on Alibaba (And Other Major Chinese Tech Stocks)?
TSMC (2330.TT; TSM.US): TSMC’s Arizona Subsidiary Sent a Letter in Response to the U.S. Authorities.
BioMarin Pharmaceutical: Expanding VOXZOGO Market Penetration To Up Their Game!
Palantir Technologies Is on Fire with U.S. Growth and AI Momentum—But One Risk Could Derail It All!
Leonardo DRS Inc.: These Are The 6 Biggest Factors Impacting Its Performance In 2025 & Beyond!
Shake Shack: Looking To Redefine Fast-Casual Dining with High-Impact Innovation & Smart Pricing!
Floor & Décor: Diversification In Sourcing & Supply Chain Management to Protect Margins Amidst Tariff Turmoil!
Itron Is Capturing Utility Market with Smart Grid Revolution—Is It the Ultimate Energy Infrastructure Play?
Mohawk Industries Bets Big on Luxury—Can Its Premium Products Help Them Gain Market Share?
Arrow Electronics Is Looking To Secure Future Growth with Record-High Backlog & Cloud-Driven Demand; But Will It Work?

Why Is Michael Burry So Bearish on Alibaba (And Other Major Chinese Tech Stocks)?

By Douglas Kim

It recently became publicly available that Michael Burry (CEO of Scion Asset Management) started buying put options on numerous Chinese stocks including Alibaba Group Holding (BABA US).
We highlight four major reasons why Burry may have turned bearish on Chinese tech names (tariffs, delisting threats, increasing hostile political pressure on China, and China’s 30 year bond yield).
Although we do not know exactly know how Burry has changed his position in 2Q25, he is likely to have reduced put options on major Chinese tech stocks in April/May.

TSMC (2330.TT; TSM.US): TSMC’s Arizona Subsidiary Sent a Letter in Response to the U.S. Authorities.

By Patrick Liao

The U.S. Department of Commerce’s Bureau of Industry and Security (U.S. BIS) recently released a series of public consultations regarding Section 232 related to semiconductors.
TSMC stated that any import measures should not create uncertainty for existing semiconductor investments.
Any measures taken by the U.S. government should not undermine the national security policy objectives of the U.S. government, including advanced semiconductor production at TSMC Arizona.

BioMarin Pharmaceutical: Expanding VOXZOGO Market Penetration To Up Their Game!

BioMarin Pharmaceutical reported strong first-quarter financial results for 2025, marked by a 15% increase in total revenue to $745 million compared to the prior year.
This growth was significantly driven by VOXZOGO, which generated $214 million, a 40% year-over-year increase, demonstrating continued demand for the achondroplasia treatment.
Additionally, the enzyme therapies business unit grew by 8%, bolstered by a 22% increase in PALYNZIQ revenues.

Palantir Technologies Is on Fire with U.S. Growth and AI Momentum—But One Risk Could Derail It All!

Palantir Technologies entered 2025 with first-quarter results that underscore both the power of its artificial intelligence portfolio and the hurdles that still shadow its global ambitions.
Revenue climbed 39% year over year to roughly $1.02 billion, led by a 55% jump in the United States, where commercial sales surged 71% and government revenue rose 45%.
Management highlighted that U.S. commercial activities have crossed a $1 billion annualized run rate and that uptake of its new Artificial Intelligence Platform is “racing ahead” across healthcare, financial-services, and industrial clients.

Leonardo DRS Inc.: These Are The 6 Biggest Factors Impacting Its Performance In 2025 & Beyond!

Leonardo DRS demonstrated a strong performance in the first quarter of fiscal year 2025, with financial metrics surpassing initial expectations.
The company registered organic growth of 16% in revenues, with a significant book-to-bill ratio of 1.2 and a record backlog of $8.6 billion.
This quarter marks the 13th consecutive quarter with a book-to-bill ratio over 1, underpinning strong demand across a diversified portfolio of products, including advanced infrared sensing, electric power and propulsion, and tactical radars.

Shake Shack: Looking To Redefine Fast-Casual Dining with High-Impact Innovation & Smart Pricing!

Shake Shack’s recent quarter results indicate a dynamic period for the company, showcasing both substantial progress and areas with potential challenges.
The company has positioned 2025 as a transformative year, beginning with an ambitious expansion strategy to increase the number of company-operated Shacks to at least 1,500.
This expansion will demand strong leadership and innovative strategies, with a focus on enhancing the guest experience, operational efficiency, and margin improvements.

Floor & Décor: Diversification In Sourcing & Supply Chain Management to Protect Margins Amidst Tariff Turmoil!

Floor & Decor Holdings reported its fiscal 2025 first quarter results, offering an insightful view into its strategic positioning and operational efficiencies amid a challenging economic landscape characterized by high volatility and uncertainty.
The company delivered diluted earnings per share (EPS) of $0.45, slightly down from $0.46 in the same period last year, but still surpassing the lower end of its expectations despite a decline in comparable store sales.
Total sales showed a 5.8% increase, reaching $1.161 billion compared to $1.097 billion in the previous year.

Itron Is Capturing Utility Market with Smart Grid Revolution—Is It the Ultimate Energy Infrastructure Play?

Itron’s first quarter of 2025 financial results demonstrated a robust performance characterized by strong margin expansion and earnings growth that surpassed expectations.
The company delivered a revenue of $607 million with an adjusted EBITDA of $88 million, indicating a solid operational quarter.
Non-GAAP earnings per share reached $1.52, representing a substantial year-over-year increase, while free cash flow doubled from the previous year to $67 million.

Mohawk Industries Bets Big on Luxury—Can Its Premium Products Help Them Gain Market Share?

Mohawk Industries’ fourth-quarter results showed a mixed performance amid ongoing industry challenges.
The company reported net sales of approximately $2.6 billion, consistent with the previous year, although this included the benefit from two additional shipping days.
Positively impacting the results were sales initiatives, restructuring efforts, and productivity improvements.

Arrow Electronics Is Looking To Secure Future Growth with Record-High Backlog & Cloud-Driven Demand; But Will It Work?

Arrow Electronics has presented several key financial outcomes and operational insights in its first quarter of 2025 results.
The company reported consolidated sales of $6.8 billion, which exceeded the upper range of its guidance.
Results showed that while global components sales were slightly down by 1% year-over-year at $4.8 billion, the Enterprise Computing Solutions (ECS) segment saw a notable 18% year-over-year increase in sales to $2 billion, indicating strong performance particularly in cloud and hybrid cloud technologies, and infrastructure software.

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May 25

Daily Brief Utilities: Idacorp Inc, Pinnacle West Capital and more

By Smartkarma Daily Briefs | Daily Briefs, Utilities Sector

In today’s briefing:

IdaCorp Launches Mega Transmission Projects—Is This the Future of Western Energy?
Pinnacle West Capital: Strategic Transmission & Generation Expansion To Up Their Game!

IdaCorp Launches Mega Transmission Projects—Is This the Future of Western Energy?

IDACORP, Inc.’s first-quarter 2025 earnings results reveal a mixed picture of operations reflecting both strengths and areas that require attention.
The company reported an increase in diluted earnings per share, reaching $1.10 compared to $0.95 in the previous year’s first quarter.
This increase was driven by higher retail revenues from Idaho Power’s rate base increase, customer growth, and the amortization of tax credits.

Pinnacle West Capital: Strategic Transmission & Generation Expansion To Up Their Game!

Pinnacle West Capital Corporation recently reported its first quarter 2025 financial results, showcasing a mix of strategic growth initiatives amidst challenges linked to historical investments.
The company, operating largely through its subsidiary Arizona Public Service (APS), has shown a clear path toward addressing regulatory lag and future growth, albeit grappling with short-term financial headwinds.
Firstly, the positive aspects: Pinnacle West’s ongoing commitment to the growth of Arizona’s economy is evident, driven by robust industrial investments and a strong influx of high-load factor customers such as Taiwan Semiconductor Manufacturing Company (TSMC).

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May 25

Daily Brief TMT/Internet: Alibaba Group Holding , Tencent, Taiwan Semiconductor (TSMC) – ADR, Shibaura Electronics, Palantir Technologies , Itron Inc, Lumen Technologies, Microsoft Corp, On Semiconductor, Interdigital Inc and more

By Smartkarma Daily Briefs | Daily Briefs, TMT/Internet

In today’s briefing:

Why Is Michael Burry So Bearish on Alibaba (And Other Major Chinese Tech Stocks)?
Tencent (700 HK): Strategies to Navigate Low Volatility and A Flat Term Structure
TSMC (2330.TT; TSM.US): TSMC’s Arizona Subsidiary Sent a Letter in Response to the U.S. Authorities.
(Mostly) Asia-Pac M&A: Xanadu Mines, Reject Shop, ESR Group, Shibaura Elect., Jamco, Tsuruha/Welcia
Palantir Technologies Is on Fire with U.S. Growth and AI Momentum—But One Risk Could Derail It All!
Itron Is Capturing Utility Market with Smart Grid Revolution—Is It the Ultimate Energy Infrastructure Play?
Lumen Technologies: Recent Divestiture Of Consumer Fiber Business To AT&T
Microsoft Just Sent a Message to the Market: Cloud, AI, and Cash Are King!
ON Semiconductor: A Tale Of Restructuring & Non-Core Business Exits For Long-Term Growth & Profitability!
InterDigital Just Secured 80% of Smartphone Market—Will $500 Million in Recurring Revenue Become A Reality?

Why Is Michael Burry So Bearish on Alibaba (And Other Major Chinese Tech Stocks)?

By Douglas Kim

It recently became publicly available that Michael Burry (CEO of Scion Asset Management) started buying put options on numerous Chinese stocks including Alibaba Group Holding (BABA US).
We highlight four major reasons why Burry may have turned bearish on Chinese tech names (tariffs, delisting threats, increasing hostile political pressure on China, and China’s 30 year bond yield).
Although we do not know exactly know how Burry has changed his position in 2Q25, he is likely to have reduced put options on major Chinese tech stocks in April/May.

Tencent (700 HK): Strategies to Navigate Low Volatility and A Flat Term Structure

By Gaudenz Schneider

Implied Volatility Trends: One-month implied volatility is currently cheap, trading in its 14th percentile, while Tencent (700 HK) approaches its twelve-months high.
Skew and Term Structure Dynamics: A pronounced skew smile and a relatively flat term structure make spreads and calendar / diagonal spreads attractive strategies.
Open Interest Distribution: Liquidity can be found in the monthly May expiry and the Quarterly expiries. The historically low implied volatility facilitates longer term positions.

TSMC (2330.TT; TSM.US): TSMC’s Arizona Subsidiary Sent a Letter in Response to the U.S. Authorities.

By Patrick Liao

The U.S. Department of Commerce’s Bureau of Industry and Security (U.S. BIS) recently released a series of public consultations regarding Section 232 related to semiconductors.
TSMC stated that any import measures should not create uncertainty for existing semiconductor investments.
Any measures taken by the U.S. government should not undermine the national security policy objectives of the U.S. government, including advanced semiconductor production at TSMC Arizona.

(Mostly) Asia-Pac M&A: Xanadu Mines, Reject Shop, ESR Group, Shibaura Elect., Jamco, Tsuruha/Welcia

I tally 46 – mostly firm, mostly Asia-Pac – arb transactions currently being discussed and analysed on Smartkarma.
Just one new deal was discussed on Smartkarma this week: Bastion’s off-market Offer for Xanadu Mines (XAM AU).
Key updates/news took place on: Reject Shop (TRS AU),ESR Group (1821 HK), Shibaura Electronics (6957 JP),Jamco Corp (7408 JP), and Tsuruha Holdings (3391 JP)/Welcia Holdings (3141 JP).

Palantir Technologies Is on Fire with U.S. Growth and AI Momentum—But One Risk Could Derail It All!

Palantir Technologies entered 2025 with first-quarter results that underscore both the power of its artificial intelligence portfolio and the hurdles that still shadow its global ambitions.
Revenue climbed 39% year over year to roughly $1.02 billion, led by a 55% jump in the United States, where commercial sales surged 71% and government revenue rose 45%.
Management highlighted that U.S. commercial activities have crossed a $1 billion annualized run rate and that uptake of its new Artificial Intelligence Platform is “racing ahead” across healthcare, financial-services, and industrial clients.

Itron Is Capturing Utility Market with Smart Grid Revolution—Is It the Ultimate Energy Infrastructure Play?

Itron’s first quarter of 2025 financial results demonstrated a robust performance characterized by strong margin expansion and earnings growth that surpassed expectations.
The company delivered a revenue of $607 million with an adjusted EBITDA of $88 million, indicating a solid operational quarter.
Non-GAAP earnings per share reached $1.52, representing a substantial year-over-year increase, while free cash flow doubled from the previous year to $67 million.

Lumen Technologies: Recent Divestiture Of Consumer Fiber Business To AT&T

Lumen Technologies’ latest earnings reveals a company engaged in an ambitious transformation, illustrated by both promising developments and notable challenges.
The organization executed well on its strategy to drive operational efficiency, enhance its AI infrastructure, and transition its telecommunications model to a cloud based system.
These areas contributed to better-than-expected financial outcomes for the first quarter of 2025.

Microsoft Just Sent a Message to the Market: Cloud, AI, and Cash Are King!

Microsoft Corporation’s latest quarterly results delivered a strong rebound in investor confidence, with all major business segments exceeding internal forecasts and analyst expectations.
The company posted $70.1 billion in revenue, marking a 13% year-over-year increase.
Operating income reached $32 billion, coming in 6% above consensus estimates, and net income stood at $25.8 billion, or $3.46 per diluted share, well ahead of the expected $3.22.

ON Semiconductor: A Tale Of Restructuring & Non-Core Business Exits For Long-Term Growth & Profitability!

ON Semiconductor reported a performance that reflects both ongoing strategic maneuvers and the challenges posed by the current economic landscape.
The company delivered first quarter 2025 revenues of $1.45 billion, slightly exceeding the midpoint of their guidance, and achieved non-GAAP earnings per share of $0.55.
The non GAAP gross margin was reported at 40%, highlighting the impact of their operational strategies amid a challenging environment.

InterDigital Just Secured 80% of Smartphone Market—Will $500 Million in Recurring Revenue Become A Reality?