Smartkarma Daily Briefs

• In What’s Up (& Up) With Shandong Hi-Speed (412 HK)?, I thought Shandong Hi-Speed Holdings (412 HK) was a bubble after gaining 190% in the past six months. 
• My guess was that SDHG’s high shareholder concentration was still very much present, and the stock was getting (unjustly) squeezed.
• The SFC concurred on the 18th September, and issued a concentration warning. SDHG’s shares cratered 76% on the 19th September, before recovering 49%. Quite the ride. 

• On the 28th April 2025, PRC-incorporated property management play Jinke Smart Services (9666 HK) announced a possible unconditional MGO take-under at HK$6.67/share.
• At an auction, the Boyu-backed Offeror and Concert Parties, (then) holding 37.86%, bought a 18.05% stake in Jinke, subject to CSDC oversight. Approval was received on the 19th September.
• The Composite Document is now out, and shareholders, should they so choose, can tender. The first close is the 17th October. The Offer may get extended.  I doubt it. 

• Manulife Financial’s second-quarter 2025 earnings call provides a comprehensive view of the company’s performance and strategic direction.
• The quarter was marked by promising growth in several areas, alongside some challenges that need addressing.
• Baptista Research looks to evaluate the different factors that could influence the company’s price in the near future and attempts to carry out an independent valuation of the company using a Discounted Cash Flow (DCF) methodology.

• Sony Group Corporation (6758) is planning to spin off 80% of its stake in Sony Financial Group Inc. (8729) on September 29, 2025.
• Sony Financial Group Inc. is the financial services arm of Sony, comprised of three main businesses
• The spin-off will generate ~ ¥100BN in the current fiscal year and pay a ¥50BN annual dividend.

• Neinor’s takeover of Aedas is effectively secured by Castlelake’s 79% lock-in; with FDI clearance obtained and the 20 October EGM approaching, execution risk is minimal, spread remains modest.
• At €21.335/share, the offer implies a 1.35% gross spread versus €21.05; base-case annualized return ~6.8% for 75 days, with IRR sensitive to settlement timing and entry price.
• Upside from a sweetener looks limited; downside tied mainly to timing drift, not deal break. Minority leverage persists for delisting, but near-term event-driven positioning is purely a carry trade.

• Context: The Bajaj Finserv (BJFIN IN) vs. Bajaj Finance (BAF IN) price-ratio has deviated more than two standard deviations from its one-year average, presenting a potential relative value opportunity.
• Highlights: Going long Bajaj Finserv (BJFIN IN) and short Bajaj Finance Ltd (BAF IN) targets a 6% 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.

Key points (machine generated)

• Bitdigital (BTBT) has an intrinsic valuation gap estimated at $4 per share, suggesting nearly 100% upside potential.
• The company is spinning off its data center and cloud services into a new entity, Whitefiber, while ceasing bitcoin mining and raising $150 million to enhance its Ethereum staking strategy.
• Recent market trends highlight the increasing value of high-performance computing assets, which may positively impact Bitdigital’s future prospects.

This article is sourced from an online content aggregator through publicly available sources and is displayed below for general informational purposes only. This article was originally published 3 months ago on Value Investors Club.

• €1bn buyback absorbs ~5% of free float by Feb 2026, providing scarcity support and EPS accretion while signaling independence.
• UniCredit builds to 26%, cleared up to 29.9%, with 30% as the mandatory offer trigger.
• Options market shows heavy 33C positioning; best trade expressions are call spreads or financed risk reversals around MAR disclosures and regulatory milestones.

• Sun Life Financial’s second quarter of 2025 showcased both strengths and challenges in its diversified global portfolio.
• The company reported a 4% year-over-year increase in underlying earnings per share, reaching $1.79, while underlying net income surpassed $1 billion.
• Despite facing industry headwinds, particularly in the U.S. dental business, Sun Life exhibited resilience across its broad business spectrum, marked by significant contributions from Asia, Canada, and SLC Management.

• The Travelers Companies, Inc. reported a robust financial performance for the second quarter of 2025, reflecting solid execution and favorable market conditions across its segments.
• The company reported core income of $1.5 billion, equating to $6.51 per diluted share, and a core return on equity of 18.8%.
• These results were primarily driven by strong underwriting and investment performance.

• Shiga Bank is well-leveraged to Japan’s rate hike cycle and regional revitalization strategy, with higher market-rate loan exposure than peers, enabling stronger earnings sensitivity to rising rates.
• Core profitability is improving, driven by double-digit NII growth and rising NIMs. A CET1 ratio of 14.0% supports capital returns, selective M&A, and ¥700bn in planned loan growth through 2029.
• Despite a +63% YTD rally, shares remain undervalued at 0.7x P/B. Our target of ¥7,850/share implies ~+20% upside, supported by improving RoE, operational efficiencies, and capital deployment.

• I view the fixed IPO price of SEK70/share (SEK35bn) as a very attractive entry point.
• Based on 2026e numbers the IPO price of SEK70 (SEK35bn) represents 2x P/TBV, 8.2x P/E. I see the stock trading to SEK47.2bn near term and climbing above with further upside.
• I This represents 35% upside vs. peer benchmark fair value on a P/TBV basis. On a P/E basis there’s potential for further upside to SEK56.8bn, or 62%.  

• LIC Housing Finance (LICHF) holds a strong position as one of India’s largest housing finance companies, benefiting significantly from the brand equity and extensive network of its parent, Life Insurance Corporation of India (LIC).
• The company has demonstrated robust growth in net income and operating cash flow over the past three years, driven by strong demand in the Indian housing market and a strategic focus on the salaried customer segment.
• While facing intense competition from banks and other housing finance companies, which puts pressure on margins, LICHF is strategically diversifying into higher-yielding segments like project finance and Loan Against Property (LAP) to support future profitability.

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• Bajaj Finance Ltd (“BAF”)  reported a strong Q1FY26 in terms of growth; however, its credit costs remain elevated due to challenging environment.
• AUM grew INR 24750cr+ in Q1FY26 to reach INR 441450cr. BAF added 13.49mm new loans and acquired 4.69mm new customers during Q1FY26 taking the customer franchise count to 106.51mm.
• BAF envisions FY26 to be a defining year for AI led transformation (FINAI). BAF has been incorporating FINAI capabilities gradually throughout the company. 

• Current gains echo past moves that required lengthy consolidation, suggesting risk management is prudent.
• Volatility trends remain middling, but skew steepness points to cost-effective downside structures.
• Rally momentum slows as Kospi reaches levels where past reversals have occurred versus SPX.

• The macro-economic backdrop in China is challenging for banks, with soft economic growth driving worsening credit quality and dovish monetary policy pushing interest margins lower
• Nonetheless, China banks balance sheets appear to be relatively robust, and we screen ten large cap banks for contrarian buy opportunities
• We focus on two banks; Ping An Bank and CCB are our buy recommendations for their relatively strong returns and sound credit quality metrics

• Robinhood has successfully disrupted the traditional brokerage industry with its commission-free, mobile-first platform, attracting a large and loyal base of younger investors. The company has recently achieved consistent profitability, driven by a rebound in trading volumes, higher net interest revenues, and growth in its subscription services.
• The company’s growth trajectory is supported by product innovation, including the expansion of its cryptocurrency offerings, introduction of retirement accounts, and a push into AI-driven trading tools. Potential inclusion in the S&P 500 could further enhance its market visibility and credibility.
• Significant risks remain, primarily centered on regulatory scrutiny of its key revenue source, Payment for Order Flow (PFOF), and its high dependence on volatile retail trading activity, particularly in speculative assets. Intense competition from both fintech startups and incumbent brokers who have adopted similar commission-free models also poses a threat to long-term market share.

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• Skylink APAC’s loan book expanded from $24 million to approximately $66 million within two years, enhancing its financial growth.
• Skylink’s revenue increased to $26 million in FY2025 from $15 million in FY2024, with gross profit rising to $6.8 million.
• The Catalist listing provides Skylink access to new capital pools, enabling faster scaling of its financing arm and acquisitions.

• Digital Transformation Leader: DBS has established itself as a pioneer in digital banking, leveraging artificial intelligence and blockchain technology to enhance customer experience and operational efficiency. This focus on innovation provides a significant competitive advantage in the evolving financial landscape.
• Strong Financial Performance and Regional Presence: The bank has consistently delivered robust financial results, characterized by strong profitability and a solid capital position. Its strategic presence in key Asian growth markets—Greater China, Southeast Asia, and South Asia—positions it well to capitalize on the region’s economic expansion.
• Commitment to Shareholder Returns: DBS has a track record of delivering value to shareholders through consistent dividend payments and has outlined a clear capital return strategy. This commitment, coupled with a positive outlook for earnings growth, provides an attractive proposition for income-focused investors.

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• Centurion Accomodation REIT (CAREIT SP) (CAREIT) raised around US$600m in its Singapore IPO.
• CAREIT plans to invest directly or indirectly, in a portfolio of purpose-built worker accommodation (PBWA), purpose-built student accommodation (PBSA) or other accommodation, located globally (excluding Malaysia).
• We have looked at the company’s past performance and valuations in our previous note. In this note, we will talk about the trading dynamics.