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Smartkarma Daily Briefs

Apr 26
0

Daily Brief Consumer: Devyani International , Sands China , Coupang , Sodexo SA, Istyle Inc, Kering, Michelin, Pernod Ricard Sa, Publicis Groupe Sa, Renault SA and more

By | Consumer, Daily Briefs

In today’s briefing:

  • Devyani International’s Acquisition of Sky Gate Hospitality: A Strategic Move for Accelerated Growth
  • Lucror Analytics – Morning Views Asia
  • JD Logistics Enters South Korea: Accelerated by Tariff War Between China and the US?
  • Sodexo: Initiation of Coverage- Can Bold U.S. Expansions & Smart Tech Disrupt the Food Service Game?
  • IStyle (3660 JP) Ups Investment in Retail
  • Kering SA – Integration of A New Creative Vision Is Driving Our Optimism!
  • Michelin – Can Its Growth in Specialty Segments Boost Overall Profit Margins?
  • Pernod Ricard- An Insight Into The Various Macro-Economic Factors
  • Publicis Groupe: Initiation of Coverage- Expanding Influence in Pharma Sector & 3 Critical Growth Levers!
  • Renault SA: Initiation of Coverage- Strategic Tie-Ups with Geely Can Unlock Untapped Market Riches!

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

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.

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.

Sodexo: Initiation of Coverage- Can Bold U.S. Expansions & Smart Tech Disrupt the Food Service Game?

By Baptista Research

  • Sodexo reported its first half fiscal 2025 results, addressing the challenges and adjustments needed to align their operations with strategic expectations.
  • The firm revised its annual guidance due to slower-than-anticipated growth, with key impacts centered in North America.
  • Despite this, Sodexo maintains confidence in its long-term strategies and operational resilience.

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.

Kering SA – Integration of A New Creative Vision Is Driving Our Optimism!

By Baptista Research

  • Kering S.A.’s 2024 financial performance did not meet initial expectations due to ongoing transformation efforts and adverse market conditions.
  • The company remains committed to a long-term strategy focusing on brand health and avoiding immediate fixes.
  • Kering’s brand portfolio, which includes Gucci, Kering Eyewear, and Kering Beauté, is evolving with a focus on individual brand strategies within a unified framework aimed at elevating their product offerings 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.

Michelin – Can Its Growth in Specialty Segments Boost Overall Profit Margins?

By Baptista Research

  • The latest financial results of Compagnie Générale des Établissements Michelin, commonly known as Michelin, reflect a period of both notable achievements and challenges.
  • The company’s performance demonstrates resilience amidst varied market conditions, leveraging its renowned brand and innovation prowess to navigate the competitive landscape.
  • Michelin’s strategic focus on its “Michelin in Motion Strategy 2030” is evident, aiming to expand beyond its core tire business into services, experiences, and polymer composite solutions.

Pernod Ricard- An Insight Into The Various Macro-Economic Factors

By Baptista Research

  • Pernod Ricard’s recent fiscal year 2024 financial performance reflects a mix of challenges and strategic responses.
  • The company’s overall organic net sales showed stability, registering a slight decline of 1%, which would have been a 1% increase excluding the exit from Russia.
  • A significant performance disparity was observed between markets: strength in mature and emerging markets was counterbalanced by a slower recovery in the United States and weaker results in China.

Publicis Groupe: Initiation of Coverage- Expanding Influence in Pharma Sector & 3 Critical Growth Levers!

By Baptista Research

  • Publicis Groupe delivered robust financial performance in 2024, marking a distinctive year for the company.
  • The organization achieved an organic growth rate of 5.8%, outperforming its peers and establishing Publicis as the largest advertising network globally by net revenue.
  • The company’s financial achievements were bolstered by strategic investments in AI and talent, reinforcing its competitive positioning in the industry.

Renault SA: Initiation of Coverage- Strategic Tie-Ups with Geely Can Unlock Untapped Market Riches!

By Baptista Research

  • Renault Group presented its 2024 financial results, revealing robust performance driven by disciplined operations and strategic repositioning.
  • On a positive note, the company achieved an operating margin of 7.6%, equating to EUR 4.3 billion, the highest in its 126-year history.
  • Additionally, Renault generated nearly EUR 3 billion in free cash flow, leading to a net cash position of over EUR 7 billion.

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Apr 26
0

Daily Brief Financials: Hongkong Land, Kyoto Financial Group , Jio Financial Services and more

By | Daily Briefs, Financials

In today’s briefing:

  • Hongkong Land (HKL SP) Recycles Nine Floors Of One Exchange Square
  • Kyoto Financial Group (TSE:5844) – Positive Shift in C-Suite Outlook
  • Asia Real Estate Tracker (25-Apr-2025): HKEX buys 9 floors at Exchange Square for $810M.
  • Jio Financial Q4 FY25 Update: Strategic Growth and Digital Expansion Drive Strong Performance

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“.

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

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.

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 TMT/Internet: Shibaura Electronics, SK Telecom, China Mobile, Capgemini, Deepexi Technology, STMicroelectronics NV, Synopsys Inc, Alphabet, Sopra Steria and more

By | Daily Briefs, TMT/Internet

In today’s briefing:

  • YAGEO and Shibaura Still Fighting, Minebea Likely to Bid Up, The Question Is Another YAGEO Overbid
  • SK Telecom’s Block Deal Sale of 10.8 Million Shares of Kakao Corp
  • China Mobile (941 HK) Tactical Outlook Following Q1 2025 Results
  • Capgemini: Initiation of Coverage- Strategic Acquisitions & 4 Pivotal Growth Levers!
  • Deepexi Technology Pre-IPO Tearsheet
  • STMicroelectronics: Initiation of Coverage- An Insight Into Its Cost-Saving Initiatives & Financial Resilience!
  • Synopsys: Harnessing Complexity
  • STMicro: Ugly but Mngt Says 1Q25 Is the Bottom. Restructuring Has to Start, Horrendous Inventories.
  • Alphabet 1Q’25 Update
  • Sopra Steria Group SA: Initiation of Coverage- Why Its Shift towards Digital Services & Consulting Is Driving Our Optimism?

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.

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. 

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).

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.

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.

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.

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.

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.

Sopra Steria Group SA: Initiation of Coverage- Why Its Shift towards Digital Services & Consulting Is Driving Our Optimism?

By Baptista Research

  • Sopra Steria, a European leader in digital services and consulting, reported mixed outcomes in its 2024 financial results.
  • Despite an overall challenging market environment, the company delivered notable achievements and faced several obstacles that could shape its future trajectory.
  • Positively, the company witnessed a sturdy operating margin, reaching 9.8%, a milestone marking the highest since 2007.

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Apr 25
0

Daily Brief Quantitative Analysis: HK Short Interest Weekly: China Mobile and more

By | Daily Briefs, Quantitative Analysis

In today’s briefing:

  • HK Short Interest Weekly: China Mobile, Sinopec, Smic, CNOOC, Meituan, Kuaishou

HK Short Interest Weekly: China Mobile, Sinopec, Smic, CNOOC, Meituan, Kuaishou

By Ke Yan, CFA, FRM

  • We analyzed the latest HK SFC report for aggregate short position as of Apr 11th.
  • Top short increases and decreases were tabulated for one week and four week period. 
  • We highlight short changes in China Mobile, Sinopec, Ishares A50, Smic, CNOOC, Meituan, Kuaishou, Tracker Fund.

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Apr 25
0

Daily Brief ESG: Sheng Siong Group Ltd: Inflection Point for a Great Performer and more

By | Daily Briefs, ESG

In today’s briefing:

  • Sheng Siong Group Ltd: Inflection Point for a Great Performer
  • It Is Not a Question of Whether Investment in Growth or Shareholder Return Is Better

Sheng Siong Group Ltd: Inflection Point for a Great Performer

By Tan Yee Peng

  • We analysed Sheng Siong’s success over the years to see what its secret sauce is and what made the retailer so successful.

  • It has punched its weight above its competitors with a set of strong financial metrics. Its ability to generate free cash flow and achieve a high return on equity are truly impressive.

  • However, Sheng Siong is at an inflection point now as its revenue and net profit have stagnated since the pandemic. 

It Is Not a Question of Whether Investment in Growth or Shareholder Return Is Better

By Aki Matsumoto

  • While the absolute amount of share repurchases has increased, many companies face challenges in using cash, given the slow growth in ROE and depth of equity capital over a decade.
  • While growth investment should increase corporate value, it’s important for managers to manage to earn returns commensurate with investment risk, and to return cash to shareholders without taking unnecessary risks.
  • The question is not whether investment in growth or shareholder return is better, but whether the company was managing its business in a shareholder-friendly manner.

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Apr 25
0

Daily Brief Thematic (Sector/Industry): Ohayo Japan | Megacap Tech Rallies and more

By | Daily Briefs, Thematic (Sector/Industry)

In today’s briefing:

  • Ohayo Japan | Megacap Tech Rallies
  • India’s Hotel Boom: How Spiritual Travel and Smart Expansion Are Redefining Hospitality
  • #139 India Insight: Adani’s $10B AI Push, Flipkart’s Domicile Shift, Tesla To Cut Reliance On China?
  • [Blue Lotus Daily-TMT Update]:JD US/BABA US/PDD US/700 HK/BIDU US/3690 HK/NTES US/BILI US/E-Commerce
  • RBI Forward-Looking Survey Analysis
  • Thematic Report: All You Need to Know About Fluorination Industry in India
  • Japan Morning Connection: Japan Set to Melt up with Smaller Cap SPE and Power/Analog Names in Focus
  • Insider Buying Trends in Indian Equities (Market Cap > USD 1 Billion) – March 2025
  • [Blue Lotus Daily]:XPEV US/1810 HK/LI US/NIO US/Macro
  • #140 India Insight: IMF Trims FY26 Growth to 6.2%, Rapeseed Opportunity, IndusInd Audits MFI Gap

Ohayo Japan | Megacap Tech Rallies

By Mark Chadwick

  • U.S. stocks surged Thursday, driven by Big Tech gains and optimism over tariff negotiations
  • Canon has revised down net profit to 333 billion yen for FY2025, down 31 billion yen from prior estimates, due to U.S. tariff policies and yen appreciation hitting profits
  • Nissan Motor forecasts a record consolidated final loss of 750 billion yen for the fiscal year ending March 2025

India’s Hotel Boom: How Spiritual Travel and Smart Expansion Are Redefining Hospitality

By Viral Kishorchandra Shah

  • The hotel sector has seen robust room additions post-Covid, with a record high of 10,897 rooms projected for 2024-25, driven by domestic travel demand.
  • Occupancy rates have remained steady at around 64.5%, despite significant room capacity increases, while average room rates rose by 13.5% to Rs.7,608 in 2023-24.
  • The industry’s asset-light expansion strategy, including franchise and lease agreements, has facilitated rapid room inventory growth, with ongoing new project announcements remaining strong.

#139 India Insight: Adani’s $10B AI Push, Flipkart’s Domicile Shift, Tesla To Cut Reliance On China?

By Sudarshan Bhandari

  • Adani commits $10B to data centers to meet booming AI demand; this bold expansion positions India as a future-ready digital infrastructure hub.
  • Flipkart Online Services (1398508D IN)’s board approves shifting domicile to India ahead of its IPO and this move can unlock higher valuations and boost local investor participation.
  • Tesla (TSLA US) starts chip talks with Tata, Micron, and CG Semi to cut reliance on China; this reshapes India’s role in the global EV and semiconductor supply chain.

[Blue Lotus Daily-TMT Update]:JD US/BABA US/PDD US/700 HK/BIDU US/3690 HK/NTES US/BILI US/E-Commerce

By Ying Pan

  • JD US/BABA US/PDD US: Government Regulation Forces Cancellation of “Refund Without Return” Policy (+/+/-)
  • 700 HK: Tencent Games SPARK Conference Reveals R&D Progress for Multiple Titles Including <Honor of Kings: World> (+)
  • BIDU US:Baidu launches the AI agent app “Xin Xiang,” which is similar to Manus(/)

RBI Forward-Looking Survey Analysis

By Nimish Maheshwari

  • The RBI’s March 2025 surveys highlight a balanced recovery, with easing inflation expectations, strong rural sentiment, and sector-specific growth prospects across banking, manufacturing, and services.
  • With moderate credit growth and consumer confidence improving, sectors like agri-finance, retail, and infrastructure are poised for growth, while inflationary pressures and currency depreciation may impact import-dependent companies.
  • India’s economic recovery is steady, with sector-specific positioning crucial. As rural confidence rises and inflation expectations moderate, growth opportunities are more identifiable, especially in rural finance and manufacturing.

Thematic Report: All You Need to Know About Fluorination Industry in India

By Nimish Maheshwari

  • Fluorine chemistry is gaining strategic importance across sectors like pharma, agrochemicals, EVs, and semiconductors, driven by the superior thermal, chemical, and biological properties of fluorinated compounds. 
  • India is emerging as a global hub in fluorination, supported by backward-integrated capacities, decades of handling expertise, and the global China+1 diversification strategy. 
  • Companies like SRF Ltd (SRF IN), Gujarat Fluorochemicals (FLUOROCH IN), and Navin Fluorine International (NFIL IN) are scaling up across the value chain from fluoropolymers to battery-grade electrolytes.

Japan Morning Connection: Japan Set to Melt up with Smaller Cap SPE and Power/Analog Names in Focus

By Andrew Jackson

  • Texas Instruments and STM numbers pointing to a bottom for industrial and automotive semi’s.
  • Memory catching a bid on SK Hynix numbers yesterday, may see signs of live for Kioxia.
  • Renesas may run after better-than-feared numbers yesterday and a more positive read for the sector overall.

Insider Buying Trends in Indian Equities (Market Cap > USD 1 Billion) – March 2025

By Sreemant Dudhoria

  • Promoters of multiple large-cap Indian firms made significant insider purchases in March 2025.
  • Sectors with notable activity include financials, real estate, and specialty chemicals.
  • Many of these stocks have already rallied post-purchase, with gains reaching up to 30%.

[Blue Lotus Daily]:XPEV US/1810 HK/LI US/NIO US/Macro

By Eric Wen

  • XPEV US: 2025 X9 Achieves 7,500 Orders in 7 Days Post-Launch (+)
  • 1810 HK: YU7 to Launch as Scheduled in June-July 2025(+)
  • Macro: Shanghai slightly enhances support measures for catering businesses (/)

#140 India Insight: IMF Trims FY26 Growth to 6.2%, Rapeseed Opportunity, IndusInd Audits MFI Gap

By Sudarshan Bhandari

  • The IMF has trimmed India’s FY26 growth forecast to 6.2% due to global tariff uncertainty, indicating growing external risks for the Indian economy.
  • India is targeting a Rs. 1,000 crore rapeseed meal export opportunity to China following regulatory clearance, potentially boosting agri-exports and farmer income.
  • Indusind Bank (IIB IN) has appointed EY for a re-audit after detecting a Rs. 600 crore gap in its microfinance portfolio, raising red flags on governance and risk management.

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Apr 25
0

Daily Brief ECM: Kakao Corp Placement – Momentum Isn’t Great but It Is a Small Deal and more

By | Daily Briefs, ECM

In today’s briefing:

  • Kakao Corp Placement – Momentum Isn’t Great but It Is a Small Deal
  • CiDi Pre-IPO – Promising Company Amid Strong Industry Tailwinds & Narrowing Losses
  • Dorf-Ketal Chemicals India Pre-IPO – The Negatives – Elevated Borrowings and Tariff Uncertainty
  • Ather Energy IPO – Still Not Cheap Enough

Kakao Corp Placement – Momentum Isn’t Great but It Is a Small Deal

By Sumeet Singh

  • SK Telecom (017670 KS) plans to raise around US$280m via selling its 2%+ stake in Kakao Corp (035720 KS).
  • Kakao’s recent performance hasn’t been particularly great and the stock has been suffering even since the Kakao Pay management scandal in 2021.
  • In this note, we will run the deal through our ECM framework and talk about the recent updates.

CiDi Pre-IPO – Promising Company Amid Strong Industry Tailwinds & Narrowing Losses

By Troy Wong

  • CiDi Inc. is looking to raise about US$200m in its upcoming Hong Kong IPO.
  • CiDi is a leading autonomous driving technology provider for commercial vehicles in China, with a strong foothold in the autonomous mining segment.
  • The company stands to benefit from sustained industry tailwinds. While still in its early stages, CiDi has made progress in narrowing its losses.

Dorf-Ketal Chemicals India Pre-IPO – The Negatives – Elevated Borrowings and Tariff Uncertainty

By Akshat Shah

  • Dorf-Ketal Chemicals Ltd (998552Z IN) (DKCI) is looking to raise about US$579m in its upcoming India IPO.
  • DKCI is an R&D and innovation-focused global manufacturer and supplier of specialty chemicals, catering to hydrocarbons and industrial supply chains, and customers with diverse applications across various industrial segments.
  • In this note, we talk about the not-so-positive aspects of the deal.

Ather Energy IPO – Still Not Cheap Enough

By Sumeet Singh

  • Ather Energy is now looking to raise about US$350m in its upcoming India IPO.
  • Ather is a pure play electric vehicle company in India designing and developing E2Ws, battery packs, charging infrastructure, associated software and accessories, also manufacturing battery packs and assembling E2Ws in-house.
  • In our previous note, we looked at the company’s past performance. In this note, we talk about the updates since then and valuations.

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Apr 25
0

Daily Brief Credit: Lucror Analytics – Morning Views Asia and more

By | Credit, Daily Briefs

In today’s briefing:

  • Lucror Analytics – Morning Views Asia

Lucror Analytics – Morning Views Asia

By Trung Nguyen

  • In today’s Morning Views publication we comment on developments of the following high yield issuers: China Hongqiao, Softbank Group, Vedanta Resources, China Oil & Gas, Biocon Biologics
  • In the US, new home sales jumped 7.4% m-o-m (1.3% e / 3.1% revised p) to an annualised 724 k units in March, driven by a surge in home sales in the South. The March (final) building permits rose 0.5% to an annualised 1.47 mn units.
  • Separately, the S&P manufacturing PMI edged up to 50.7 (49.0 e / 50.2 p), while the services PMI fell to 51.4 (52.6 e / 54.4 p). The composite PMI declined to 51.2 (52.0 e / 53.5 p).

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Apr 25
0

Daily Brief Event-Driven: Poon Moves On Dickson Concepts (113 HK)’s Cash Hoard? and more

By | Daily Briefs, Event-Driven

In today’s briefing:

  • Poon Moves On Dickson Concepts (113 HK)’s Cash Hoard?
  • Korea Dems’ Surprise Proposal: Separate Tax for Dividends Over 35% Payout
  • Fujitsu (6702) – Earnings/Guidance OK, Margins Better, But New Quiddity Buyback Data Tool 🥳
  • Gunma Bank (8334 JP): Daishi Hokuetsu (7327 JP) Share Exchange to Establish a Top Regional Bank
  • Dickson Concepts (113 HK): Controlling Shareholder to Privatise a Negative EV Play?
  • Wanda Hotel (169 HK) To Offload Hotel Management Arm
  • LS Cable Plans to Purchase Up To 70 Billion Won of Gaon Cable – Will It Take It Private?
  • [Quiddity Index Apr25] KOSPI 200 Leaderboard Jun25: 6 ADDs and 6 DELETEs
  • Lab Tested, Market Approved: KKR’s Biotage Bid Under the Microscope

Poon Moves On Dickson Concepts (113 HK)’s Cash Hoard?

By David Blennerhassett

  • Dickson Concepts Intl (113 HK) (DC), which is principally engaged in the sale of luxury goods business, is suspended pursuant to the Takeovers Code.
  • DC’s Chairman, Dickson Poon (& spouse), hold 60.5%. Super-net-cash rich DC is trading in sync with historical metrics. 1H25 (Mar Y/E) net profit dropped 40.1%. Shares are roughly flat yoy. 
  • Given DC’s cash hoard, taking the company private makes sense. I doubt Poon is seeking to exit his stake.

Korea Dems’ Surprise Proposal: Separate Tax for Dividends Over 35% Payout

By Sanghyun Park

  • The bill submitted by the Democratic Party today highlights that separate taxation on dividend income applies only to dividends from companies with a 35% payout ratio or higher.
  • We might see re-rating on dividend stocks with solid cash flow but below 35%, especially banks over telcos. Holdcos like Samsung C&T, LG, and Hyundai Glovis could attract attention too.
  • Dark horses like NAVER, with earnings potential, and Samsung Electronics, currently at 25%, could attract attention if they increase payouts to 35%.

Fujitsu (6702) – Earnings/Guidance OK, Margins Better, But New Quiddity Buyback Data Tool 🥳

By Travis Lundy

  • Fujitsu Earnings. Revenues +2.1%, OP +77.5%, Pretax +65.1%, Net -13.0% (basis effect from FY23 one-offs). Forecast? Revs -2.8%, OP/adj +35.8%/+17.2%, Net/adj +77.4%/+3.7%. All guided measures shy vs the Street consensus.
  • The company presented a progress update on its Medium-Term Management Plan. Core profits are better. Things are improving. 
  • The company also announced a big 11-month ¥170bn buyback. Last year’s was ¥180bn (completed 24 March). Worth checking out the details (and our brand-new buyback tool)

Gunma Bank (8334 JP): Daishi Hokuetsu (7327 JP) Share Exchange to Establish a Top Regional Bank

By Arun George

  • Gunma Bank (8334 JP) and Daishi Hokuetsu Financial Group (7327 JP)/DHFG have announced an MoU to establish one of the largest regional banks in Japan by 1 April 2027.
  • The transaction involves delisting Gunma through a share exchange with DHFG. A definitive agreement is expected around March 2026. 
  • The plan is long-dated. The lack of a controlling shareholder necessitates a “fair” exchange ratio. My estimated Gunma/DHFG exchange ratio range is 0.38-0.39x.

Dickson Concepts (113 HK): Controlling Shareholder to Privatise a Negative EV Play?

By Arun George

  • Dickson Concepts Intl (113 HK) has entered a trading halt “pending the release of an announcement pursuant to The Code on Takeovers and Mergers, which constitutes inside information of the Company.”  
  • The controlling shareholder (Sir Poon) is likely seeking to launch a privatisation through a Bermuda scheme, particularly as the shares trade below net cash.
  • While no disinterested shareholder holds a blocking stake, the headcount test and a decent AGM participation rate necessitate an attractive offer. The potential offer price range is HK$5.60-9.24.

Wanda Hotel (169 HK) To Offload Hotel Management Arm

By David Blennerhassett

LS Cable Plans to Purchase Up To 70 Billion Won of Gaon Cable – Will It Take It Private?

By Douglas Kim

  • On 22 April, LS Cable & System announced that it plans to acquire up to 70 billion won worth of Gaon Cable.
  • If LS Cable purchases 70 billion won worth of Gaon Cable’s shares (7.4% stake at current price), its stake in the company would rise to 89%. 
  • There are numerous options for Gaon Cable going forward including privatization or a merger with LS Cable. 

[Quiddity Index Apr25] KOSPI 200 Leaderboard Jun25: 6 ADDs and 6 DELETEs

By Travis Lundy

  • KOSPI 200 is a Korean blue-chip index that tracks the 200 largest and most-liquid names listed in the KOSPI section of the Korea Exchange (KRX).
  • In this insight, we have presented our final expectations for ADDs and DELs for the upcoming semiannual review in June 2025.
  • We expect six ADDs and six DELs for the KOSPI 200 index during this index rebal event based on the latest available data.

Lab Tested, Market Approved: KKR’s Biotage Bid Under the Microscope

By Jesus Rodriguez Aguilar

  • Gross spread is 2.62%, implying a solid annualized return of ~22.0% assuming a June closing—an attractive profile given the minimal regulatory and financing risks.
  • The market is pricing in a ~93.2% probability of deal success, reflecting strong confidence driven by Board support, substantial shareholder backing (36% aligned), and the absence of antitrust red flags.
  • Challenging but feasible threshold: requires 84.3% of free flaot to tender to reach the 90% acceptance condition and enable squeeze out.

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Apr 25
0

Daily Brief Equity Bottom-Up: Pop Mart (9992 HK): Eye-Popping Growth. Is It the Next Pokémon for Kidults? and more

By | Daily Briefs, Equity Bottom-Up

In today’s briefing:

  • Pop Mart (9992 HK): Eye-Popping Growth. Is It the Next Pokémon for Kidults?
  • The Beat Ideas: Park Hotels: Serving Long-Term Value
  • Update- SAMHI Hotels: Strategic Partnership with GIC
  • UMC 1Q25 Is the Bottom, Consensus Is Low but the Stock at Average Valuations
  • Texas Instruments: Surprisingly Good 1Q25, Good 2Q Guidance. End-Markets Are Back to YoY Growth.
  • Nidec (6594) | Chasing Trends to Fiscal Discipline
  • SK Hynix Earnings Highlights Strong AI Dependence and Tariff Concerns
  • Intuitive Surgical (ISRG US): Strong 1Q Result; Tariffs to Impact Margin
  • Kaiser Reef Ltd – Becoming a Bigger East Coast Gold Producer
  • Jafco Co Ltd (8595 JP): Full-year FY03/25 flash update

Pop Mart (9992 HK): Eye-Popping Growth. Is It the Next Pokémon for Kidults?

By Devi Subhakesan

  • Pop Mart International Group L (9992 HK) ’s stock has nearly doubled in three months, fueled by surging revenue and the breakout popularity of its Labubu dolls.
  • Driven by strong international expansion and solid omni-channel demand in its home market, Pop Mart reported over 165% revenue growth in 1Q2025 compared to the same period last year.
  • Investors remain split on whether Pop Mart’s unconventional products and marketing are driven by lasting fandom or just a passing trend.

The Beat Ideas: Park Hotels: Serving Long-Term Value

By Sudarshan Bhandari

  • Apeejay Surrendra Park Hotel (PARK IN), With a sharp pivot post-IPO, it has deleveraged, scaled Flurys to 100 outlets, and launched ARR-led palace properties, all while staying asset-light and cash-smart.  
  • F&B now contributes nearly half of revenues, ARRs are climbing, and legacy land is being monetised to fund INR 500 crore of capex without debt. 
  • Earlier seen as a traditional hotel chain, Park now to be looked as a brand with strong visibility, smart capital use, and fresh retail momentum.

Update- SAMHI Hotels: Strategic Partnership with GIC

By Sudarshan Bhandari

  • SAMHI Hotels (SAMHI IN) has entered into a strategic partnership with GIC, a global institutional investor, to establish a joint venture platform for upscale and higher hotel assets in India.
  • This transaction will significantly reduce SAMHI’s debt, enhance its financial flexibility, and provide access to up to $300 million in future capital for further expansion in high-demand upscale hotel sector.
  • The partnership with GIC strengthens SAMHI’s growth outlook, boosts profitability through debt reduction, and positions the company to capitalize on the rapidly expanding upscale hospitality market in India.

UMC 1Q25 Is the Bottom, Consensus Is Low but the Stock at Average Valuations

By Nicolas Baratte

  • 1Q miss on non-ops and it’s the bottom for margins. Strong 2Q guidance but very low visibility into 2H: tariff uncertainty.  
  • The JV with Intel for 12nm is proceeding well and demand is strong for Made in US 12nm. Some upside here for 2027
  • Consensus is probably a tad too low but the stock trading at average PEx ~12x. No arbitrage here.

Texas Instruments: Surprisingly Good 1Q25, Good 2Q Guidance. End-Markets Are Back to YoY Growth.

By Nicolas Baratte

  • Demand for Auto & Industrial Semis was weak in 2024, Semi inventories remain high. But TXN beats 1Q guidance handsomely, 2Q is above expectations. TXN is back to YoY growth.
  • Critically, the Industrial market is recovering rapidly, Auto is back to modest growth. Management has some concerns that there could be re-stocking ahead of US import tariffs. 
  • Consensus is too low but the stock is not cheap, has deflated from bubble levels but still not cheap.

Nidec (6594) | Chasing Trends to Fiscal Discipline

By Mark Chadwick

  • Nidec beat Q4 expectations but offered muted FY3/26 guidance, with flat sales and modest profit growth amid macro and tariff uncertainty.
  • New CEO Kishida shifts focus from top-line ambition to margin discipline, targeting ¥150bn in cost cuts over three years.
  • Once a high-growth play, Nidec now trades at value multiples — 1.5x book — offering a more grounded path to shareholder returns.

SK Hynix Earnings Highlights Strong AI Dependence and Tariff Concerns

By Jim Handy

  • SK hynix announced their second-highest revenue and operating profit for the first quarter of 2025
  • Much of the company’s performance is the result of its first-mover advantage and excellent execution in the HBM market
  • Two issues threaten the company: AI growth may stall, and tariff changes could interfere with the company’s global supply chain

Intuitive Surgical (ISRG US): Strong 1Q Result; Tariffs to Impact Margin

By Tina Banerjee

  • Intuitive Surgical (ISRG US) revenue grew 19% YoY to $2.3B in 1Q25.  Procedures volume grew ~17% YoY, which boosted instruments and accessories revenue.
  • The company placed 367 da Vinci surgical systems, compared with 313 in 1Q24. It included 147 da Vinci 5 systems, compared with 8 in the same period last year.
  • Intuitive has raised the procedure growth guidance range from 13–15% to 15–17%, while trimming down gross margin to the range 65–66.5% from 67–68%, due to tariffs.

Kaiser Reef Ltd – Becoming a Bigger East Coast Gold Producer

By Research as a Service (RaaS)

  • Kaiser Reef Ltd (ASX:KAU) is undergoing a transformation as it acquires the Henty Gold mine from Catalyst Minerals (ASX:CYL) which should drive a step change in the production profile of the company from <12kozpa to 37kozpa (proforma) with scope to increase to 50kozpa+ in the medium term.
  • Post the funding package completed alongside the acquisition, KAU has $27.2m in cash which can support the incremental investments into its mining operations to achieve the stated production targets.
  • Post the Henty Gold acquisition, Kaiser Reef Ltd (ASX:KAU) has the potential to become a 50kozpa+ producer over the medium term with 30kozpa+ from the Henty mine and 20kozpa+ from the A1 Gold mine.

Jafco Co Ltd (8595 JP): Full-year FY03/25 flash update

By Shared Research

  • Revenue increased by 21.4% YoY to JPY29.7bn, with operating profit rising 53.1% YoY to JPY12.5bn.
  • Capital gains reached JPY12.7bn, a 60.0% YoY increase, driven by IPO-related share sales and unlisted shares.
  • Total assets under management stood at JPY458.4bn, with JPY198.5bn subject to management fees as of end-March 2025.

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