Smartkarma Daily Briefs, Author at Smartkarma

May 05

Daily Brief TMT/Internet: Smartpay Holdings, Vanguard Intl Semiconductor, Silicon Motion Technology, Airtasker and more

By Smartkarma Daily Briefs | Daily Briefs, TMT/Internet

In today’s briefing:

Smartpay (SPY NZ/SMP AU): Three Is No Crowd as a Third Bid Lands at NZ$1.20
Vanguard (5347.TT): 2Q25 Outlook Slightly Upbeat; US Tariffs Remain a Negative Factor.
Silicon Motion (SIMO US) Taps NVIDIA AI Pipeline, Sees PC Market Turning
Airtasker Ltd – Key RaaS KPIs heading in the right direction

Smartpay (SPY NZ/SMP AU): Three Is No Crowd as a Third Bid Lands at NZ$1.20

By Arun George

On 2 May, Smartpay Holdings (SPY NZ) disclosed receiving a third non-binding scheme proposal from another international strategic at NZ$1.20 (A$1.12), 20% premium to the Tyro Payments (TYR AU) offer.
Smartpay previously disclosed a NZ$1.00 cash/scrip bid from Tyro and an undisclosed offer from an international strategic (rumoured to be Shift4 Payments (FOUR US)).
Smartpay was susceptible to bids due to the RBA’s surcharge review, but the shareholder structure necessitates an attractive offer. The NZ$1.20 offer is attractive.

Vanguard (5347.TT): 2Q25 Outlook Slightly Upbeat; US Tariffs Remain a Negative Factor.

By Patrick Liao

We assume that Vanguard Intl Semiconductor (5347 TT) will see an upside in its 2Q25 outlook by a few percentage points.
The DDIC (Display Driver IC) segment appears relatively flat, while PMIC (Power Management IC) may experience slight growth.
Vanguard Intl Semiconductor (5347 TT) and other Taiwanese semiconductor Fabs are not subject to the 125% tariff imposed by Beijing on U.S. products.

Silicon Motion (SIMO US) Taps NVIDIA AI Pipeline, Sees PC Market Turning

By Vincent Fernando, CFA

SIMO beat 1Q25 EPS estimates by 20%, with strong gross margins (47.1%) driven by PCIe Gen 5 SSD controller mix and tight cost control.
SIMO’s MonTitan confirmed as boot SSD supplier for NVIDIA’s BlueField-3 DPU, marking SIMO’s formal entry into NVIDIA-linked enterprise AI storage.
Management maintains $1bn revenue run-rate target for 4Q25, supported by PCIe 5, UFS 4.1, and MonTitan ramps. We maintain our Structural Long rating.

Airtasker Ltd – Key RaaS KPIs heading in the right direction

By Research as a Service (RaaS)

Airtasker Limited (ASX:ART) is an online marketplace for local services, connecting people and businesses who need work done with people who want to work.
ART has reported its Q3 FY25 trading update with key RaaS KPIs all heading in the right direction.
Another quarter of positive cash flow was achieved, resulting in a stable net cash position of $18.3m.

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May 05

Daily Brief Consumer: Toyota Industries, TSE Tokyo Price Index TOPIX and more

By Smartkarma Daily Briefs | Consumer, Daily Briefs

In today’s briefing:

Weekly Deals Digest (04 May) – Toyota Industries, Shibaura, Dickson, HKBN, Meilan Airport, Soundwill
Pre AGM Annual Securities Report Disclosure as a Clue to a True Dialogue with Investors

Weekly Deals Digest (04 May) – Toyota Industries, Shibaura, Dickson, HKBN, Meilan Airport, Soundwill

By Arun George

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: Contemporary Amperex Technology (CATL) (300750 CH) is set to launch an H Share listing to raise US$5 billion.
Event-Driven developments: Toyota Industries (6201 JP), Shibaura Electronics (6957 JP), Dickson Concepts Intl (113 HK), HKBN Ltd (1310 HK), Hainan Meilan International Airport (357 HK), Soundwill Holdings (878 HK).

Pre AGM Annual Securities Report Disclosure as a Clue to a True Dialogue with Investors

By Aki Matsumoto

Based on experience with “TSE’s request,” it’s impossible to request the same level of disclosure from every company. Companies that overseas investors can target should be requested to disclose proactively.
This “FSA’s request” is expected to potentially cause companies to lose the effectiveness of the tactics they have used to control AGMs. Future steps are expected.
The slowdown in profit margin growth may also increase calls for improved corporate governance practices, with more companies reducing cross-shareholdings and launching stronger shareholder returns.

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May 05

Daily Brief Financials: Chongqing Rural Commercial Ban, S&P Global and more

By Smartkarma Daily Briefs | Daily Briefs, Financials

In today’s briefing:

Quiddity Leaderboard CSI 300/500 Jun25: Momentum Turning Positive for This Major Rebal Trade
Weekly Update (LION, STRZ, GTX, LBTYA, WDC)

Quiddity Leaderboard CSI 300/500 Jun25: Momentum Turning Positive for This Major Rebal Trade

By Janaghan Jeyakumar, CFA

CSI 300 represents the 300 largest stocks by market cap and liquidity from the Shanghai and Shenzhen Exchanges. CSI 500 is the next 500 names.
In this insight, we have presented our final expectations for ADDs and DELs for the upcoming semiannual index rebal event in June 2025.
We expect 6 ADDs/DELs for the CSI 300 index and 50 ADDs/DELs for the CSI 500 index during this index review based on the latest available data.

Weekly Update (LION, STRZ, GTX, LBTYA, WDC)

By Richard Howe

S&P Global (SPGI) announced on April 29, 2025, its intention to spin off its Mobility division into a standalone publicly traded company.
This strategic move aims to streamline operations and allow S&P Global to concentrate on its core businesses: Market Intelligence, Ratings, Commodity Insights, and Dow Jones Indices.
The Mobility division, which provides data and analytics to the automotive industry, generated $1.6 billion in revenue in fiscal year 2024, marking an 8% year-over-year increase.

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May 05

Daily Brief Health Care: Akeso Biopharma Inc, CF PharmTech and more

By Smartkarma Daily Briefs | Daily Briefs, Healthcare

In today’s briefing:

China Healthcare Weekly (May.4)-HK Stock Is About to Soar, Mindray’s Trouble,Views on Akeso’s Plunge
Pre-IPO CF PharmTech – The Outlook Is Bleak Due to VBP and Fierce Competition

China Healthcare Weekly (May.4)-HK Stock Is About to Soar, Mindray’s Trouble,Views on Akeso’s Plunge

By Xinyao (Criss) Wang

The HKD hit its upper limit of 7.75/USD. Capital inflows are expected post–Labor Day, likely boosting Hong Kong stock prices.
Mindray faces headwinds. A turnaround may come in 25Q3–Q4, but the market seeks a new growth story. A 20–25x TTM P/E reflects fair value, not undervaluation.
Akeso’s high valuation leans on HARMONi-3 and HARMONi 7 over HARMONi-2. Final OS data raises concerns, as MRCT is challenging and the safety margin is lower than expected.

Pre-IPO CF PharmTech – The Outlook Is Bleak Due to VBP and Fierce Competition

By Xinyao (Criss) Wang

Unlike most biotech companies in Hong Kong which focus on innovative drugs, CF PharmTech mainly produces generic drugs. Its revenue mainly comes from CF017, with high single product risk.
The pipelines have to face fierce competition and don’t have advantage in R&D progress in from of competing candidates. CF PharmTech is hard to generate decent profits due to VBP.
Since its establishment, CF PharmTech has raised its valuation step by step through multiple rounds of capital increase and equity transfer.Valuation was RMB4.021 billion in 2022, which is already high.

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May 05

Daily Brief Industrials: JSW Infrastructure, Makino Milling Machine Co, Afcons Infrastructure Limited, Contemporary Amperex Technology (CATL), Amaero International Ltd, S.F. Holding and more

By Smartkarma Daily Briefs | Daily Briefs, Industrials

In today’s briefing:

JSW Infra: Expansion Plans Prudent; Valuation Multiples Remain Elevated
Merger Arb Mondays (05 May) – Makino, Shibaura, 7&I, Dickson, Meilan, Soundwill, Smartpay, Pointsbet
Afcons Infrastructure (AFCONS IN): Global Index Inclusion & Upweights Post Lock-Up Expiries
ECM Weekly (5 May 2025) – CATL, Chery, Ather, Drinda, Eco-Shop, Green Tea, DN Sol, Lotte Glo, Hanwha
Amaero International Ltd – New five-year contract kicks off commercialisation push
Chinese Express: SF, STO Enjoyed Margin Expansion in Q125; YTO, Yunda Saw Margins Contract

JSW Infra: Expansion Plans Prudent; Valuation Multiples Remain Elevated

By Rahul Jain

Strong FY25 growth, but bulk cargo (~90%) dominates, keeping revenue per ton lower versus peers.
Targeting 10% volume and 50% logistics growth by FY27, with heavy CAPEX and Navkar integration focus.
Trades at ~28x EV/EBITDA, ~40x P/E — far higher than Adani Ports; promoter dilution likely to meet public float norms.

Merger Arb Mondays (05 May) – Makino, Shibaura, 7&I, Dickson, Meilan, Soundwill, Smartpay, Pointsbet

By Arun George

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: Smartpay Holdings (SPY NZ), Insignia Financial (IFL AU), ENN Energy (2688 HK), Oneconnect Financial Technology (6638 HK), Seven & I Holdings (3382 JP), Smart Share Global (EM US).
Lowest spreads: Bright Smart Securities And (1428 HK), Shibaura Electronics (6957 JP), Abacus Storage King (ASK AU), Makino Milling Machine Co (6135 JP), Sinarmas Land (SML SP).

Afcons Infrastructure (AFCONS IN): Global Index Inclusion & Upweights Post Lock-Up Expiries

By Dimitris Ioannidis

AFCONS debuted on the NSE on 4 November 2024. As of 2 May 2025, the price was 420 INR resulting in a market cap of ~$1.8bn.
AFCONS is forecasted to be added to Global-F at the June 2025 review with a free float of 31.7% following the 3-month lock-up expiry of the Anchor Investors.
AFCONS is forecasted to experience a free float increase in Global-M from 35% to 45% at the August 2025 review following the 6-month lock-up expiry of the pre-IPO shareholders.

ECM Weekly (5 May 2025) – CATL, Chery, Ather, Drinda, Eco-Shop, Green Tea, DN Sol, Lotte Glo, Hanwha

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) is said to be gearing up for an IPO launch this month, as per media reports.
On the placements front, Hanwha Ocean (042660 KS) was the only sizable placement over the past week that we covered.

Amaero International Ltd – New five-year contract kicks off commercialisation push

By Research as a Service (RaaS)

Amaero Ltd (ASX:3DA) is a global specialist in advanced materials manufacturing for the defence, aerospace and other industrial sectors, developing a critical metals alloy powder manufacturing facility in Tennessee, USA.
The company has announced it has signed a five-year, exclusive supply agreement with US-based metal additive manufacturing technology company Velo3D (OTC:VLDX) for mission-critical parts in the defence, space and aviation industries (ASX release 29 April).
Amaero said, based on demand estimates from Velo3D, revenue from C103 and titanium alloy powder sales over the five-year agreement are expected to equal approximately US$22m (A$35m).

Chinese Express: SF, STO Enjoyed Margin Expansion in Q125; YTO, Yunda Saw Margins Contract

By Daniel Hellberg

SF Hldg had slowest Q125 revenue growth among China-listed express companies, STO fastest
Only these two express firms reported margin expansion in Q125 — how’d they do it?
Q125 results suggest two very different paths toward improved express profitability

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May 04

Daily Brief Quantitative Analysis: HK Connect Flows Weekly (May 2nd): Meituan and more

By Smartkarma Daily Briefs | Daily Briefs, Quantitative Analysis

In today’s briefing:

HK Connect Flows Weekly (May 2nd): Meituan, Tencent, Ping An Insurance, BYD, SMIC, China Mobile

HK Connect Flows Weekly (May 2nd): Meituan, Tencent, Ping An Insurance, BYD, SMIC, China Mobile

By Ke Yan, CFA, FRM

We analyze the weekly Hong Kong Connect flows with our data engine for holding position as of May 2nd.
The top stocks by inflows and outflows were tabulated for all market, HSCEI, mid cap and s/mid cap groups.
We highlight flows for Meituan, Tencent, Ping An Insurance, BYD, SMIC, China Mobile.

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May 04

Daily Brief ECM: CATL H Share Listing: AH Discount Views and more

By Smartkarma Daily Briefs | Daily Briefs, ECM

In today’s briefing:

CATL H Share Listing: AH Discount Views

CATL H Share Listing: AH Discount Views

By Arun George

Contemporary Amperex Technology (CATL) (300750 CH), the world’s largest supplier of EV and ESS batteries, is set to launch an H Share listing to raise US$5 billion.
In CATL H Share Listing: The Investment Case, a leading market position, forecasted return to growth, peer-leading profitability, cash generation, peer-leading FCF margin and an attractive valuation are highlighted.
In this note, I examine the likely discount CATL will offer its H Shares compared to the A Shares.

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May 04

Daily Brief Thematic (Sector/Industry): APAC Healthcare Weekly (May 4)- Takeda Pharma and more

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

In today’s briefing:

APAC Healthcare Weekly (May 4)- Takeda Pharma, Samsung Biologics, Celltrion, Dr. Reddy’s, Medanta

APAC Healthcare Weekly (May 4)- Takeda Pharma, Samsung Biologics, Celltrion, Dr. Reddy’s, Medanta

By Tina Banerjee

Prescription drug sales in Japan in FY25 increased 0.6% YoY to ¥10.8T on an NHI price basis. Takeda Pharmaceutical and Daiichi Sankyo remained the top 2 pharmaceutical companies.
Samsung Biologics signed $514M CDMO deal with an undisclosed U.S.-based pharmaceutical company. Celltrion has received approval in Korea to conduct phase 3 clinical trial for its Keytruda biosimilar candidate CT-P51.
Dr. Reddy’s Laboratories expands its strategic partnership with Sanofi to introduce RSV drug, Beyfortus in India. Medanta is entering North-East India by building a 400-bed super specialty hospital in Guwahati.

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May 04

Daily Brief Equity Bottom-Up: Asian Dividend Gems: Sankyo Co and more

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

In today’s briefing:

Asian Dividend Gems: Sankyo Co
The Interpublic Group of Companies (IPG): Solid Merger Synergies With Omnicom But These Are The 4 BIGGEST Roadblocks In Its Path!
Tractor Supply Company’s PetRx Play: Could This Be the Ultimate Disrupter in Pet Medication?
VeriSign’s Domain Name Registration Growth Is Here To Stay But What Are The Challenges Ahead?
Pool Corporation: A Strategic Approach to Pricing & Market Dynamics To Strengthen Market Stability & Ensure Continued Customer Trust!
SS&C Technologies Is Powering Ahead with AI & Platform Growth—But There’s MORE To The Story!
Hasbro Inc.: Supply Chain Optimization & Diversification & 4 Pivotal Factors Driving Growth!
LKQ Corporation: An Insight Into Its North American Business Strategy And Its Market Position In Aftermarket Collision Parts!
Oisix: Major Growth Expected in Foodtech
Teck Resources Limited: Expansion of Copper Production Capacity Is A Critical Driver For Stock Performance!

Asian Dividend Gems: Sankyo Co

By Douglas Kim

Sankyo is a leading Japanese maker of Pachinko and Pachislot machines. The company has a consistent record of generating positive free cash flow and operating cash flow.
It trades at 6x EV/EBITDA (2025E) and P/E of 9.5x (2025E). Its net margin improved from 9.9% in 2021 to 21.8% in 2022, and 27% in 2024.
Sankyo has also been aggressively buying back its shares in the past five years. We believe Sankyo could continue to outperform the market in the next 1-2 years.

The Interpublic Group of Companies (IPG): Solid Merger Synergies With Omnicom But These Are The 4 BIGGEST Roadblocks In Its Path!

By Baptista Research

Interpublic Group’s (IPG) recent earnings detailed the company’s financial and operational performance for the first quarter of 2025, illustrating a mixed yet strategically potent landscape.
With an organic revenue decrease of 3.6%, this was in line with IPG’s expectations for the quarter.
The company attributed this decline to adverse impacts from past account losses, which primarily affected the U.S., Europe, and Asia Pacific regions.

Tractor Supply Company’s PetRx Play: Could This Be the Ultimate Disrupter in Pet Medication?

By Baptista Research

Tractor Supply Company (TSC) presented its first quarter results for 2025 with a nuanced report that reflects both strong operational execution and the challenges of a shifting macroeconomic environment.
Total sales reached a record $3.47 billion, marking a 2.1% increase despite a 0.9% decline in comparable store sales.
The growth in sales figures underscores a robust transaction increase; however, it was offset by a decline in the average ticket size, largely attributed to adverse weather conditions impacting seasonal sales and a resulting product mix shift.

VeriSign’s Domain Name Registration Growth Is Here To Stay But What Are The Challenges Ahead?

By Baptista Research

VeriSign Inc.’s first quarter of 2025 showed a solid performance with a 4.7% increase in revenue, reaching $402 million compared to the same period last year.
This was bolstered by positive trends in domain registrations.
The domain name base for .com and .net increased by 777,000 names from the end of 2024, resulting in a total of 169.8 million domain names.

Pool Corporation: A Strategic Approach to Pricing & Market Dynamics To Strengthen Market Stability & Ensure Continued Customer Trust!

By Baptista Research

Pool Corporation’s (POOLCORP) first-quarter results for 2025 reveal both challenges and resilience amid a fluctuating market environment.
The company recorded net sales of $1.1 billion, a decline of 4% year-over-year, though this figure improved to a 2% decline when adjusting for the same selling days.
The first quarter was marked by challenging weather conditions in key markets and an Easter holiday that shifted sales into the second quarter.

SS&C Technologies Is Powering Ahead with AI & Platform Growth—But There’s MORE To The Story!

By Baptista Research

SS&C Technologies reported a commendable financial performance for the first quarter of 2025.
Adjusted revenue reached $1.5148 billion, reflecting a notable 5.5% increase year-over-year.
The adjusted diluted earnings per share rose by 8.3% to $1.44.

Hasbro Inc.: Supply Chain Optimization & Diversification & 4 Pivotal Factors Driving Growth!

By Baptista Research

Hasbro performed well in the first quarter of 2025, driven primarily by the success of its Wizards of the Coast and Digital Gaming segments.
The company reported a 17% increase in revenue, reaching $887 million, largely fueled by strong sales from the MAGIC: THE GATHERING franchise and robust licensing performance.
Key strategic initiatives, such as the “Play to Win” strategy, reinforced cost discipline and emphasized profitable growth, contributing to a 50% rise in adjusted operating profit, which resulted in a 70% increase in adjusted earnings per share to $1.04.

LKQ Corporation: An Insight Into Its North American Business Strategy And Its Market Position In Aftermarket Collision Parts!

By Baptista Research

LKQ Corporation’s recent financial results reflect a mixed performance, with both favorable developments and ongoing challenges evident in its earnings report.
During the quarter, LKQ reported diluted earnings per share of $0.65, marking a $0.06 increase compared to the previous year.
However, on an adjusted basis, diluted EPS stood at $0.79, reflecting a slight decline of $0.03 from the prior year, mainly due to decreased segment EBITDA dollars in LKQ’s North American market.

Oisix: Major Growth Expected in Foodtech

By Michael Causton

Given Japan’s growing interest in food-based health solutions, multiple players are looking to build businesses in the field across gut health and dietary solutions for the old and infirm.
Oisix, the leading online food retailer has developed an incubator for start ups in this area.
It is hoping to create a mini silicon valley for food tech businesses.

Teck Resources Limited: Expansion of Copper Production Capacity Is A Critical Driver For Stock Performance!

By Baptista Research

Teck Resources Limited, a major Canadian mining and minerals company, presented its financial results for the first quarter of 2025, highlighting both achievements and ongoing challenges.
The past few months have seen a challenging macroeconomic environment marked by geopolitical tensions, inflation, and supply chain disruptions.
Despite this, Teck remains focused on copper and zinc production, crucial for long-term industrial demand driven by global electrification, manufacturing, and infrastructure needs.

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May 04

Daily Brief Event-Driven: Last Week in Event SPACE: Toyota and more

By Smartkarma Daily Briefs | Daily Briefs, Event-Driven

In today’s briefing:

Last Week in Event SPACE: Toyota, Rio Tinto, Hainan Meilan, Fujitsu General
(Mostly) Asia-Pac M&A: Ainsworth Game, Bright Smart, PointsBet, Dickson Concepts, Canvest, Shibaura

Last Week in Event SPACE: Toyota, Rio Tinto, Hainan Meilan, Fujitsu General

By David Blennerhassett

Toyota Chair TOYODA made a proposal to take over Toyota Industries (6201 JP), not because he loves forklifts etc; but an opportunistic way to buy a large block of Toyota.
Rio Tinto Ltd (RIO AU) shareholders voted down Palliser’s proposal to review its dual-company structure. That was the right outcome.
Hainan Meilan (357 HK)‘s H-share Offer price of HK$10.62/share is not compelling; but it’s not meant to be, as the SPA Buyer and Seller are ultimately controlled by Hainan SASAC.