Smartkarma Daily Briefs

• At noon today, Jafco Co Ltd (8595 JP) announced full year (to March 2025) results. Revenues were up 21.4% this year, OP +49.7%, and Net Income +27.8%.
• The company announced a ¥5bn buyback, and also announced a new dividend policy of 6% DOE or 50% payout ratio. As it is a markets business, there is no guidance. 
• The stock popped significantly in the PM session, but the market zeitgeist is a tailwind. And there is supportive new news.

• Jafco divests overseas operations to focus on domestic capital markets
• The company continues to focus on shareholder returns in a meaningful way
• Domestic venture capital returns exceed overseas returns historically and the future looks bright

• Bright Smart Securities And (1428 HK) is in a trading halt “pursuant to the Hong Kong Code on Takeovers and Mergers, which constitutes inside information of the Company.”
• It is likely that Mr Lum, the founder and chairman, has entered a sale and purchase agreement to sell his controlling stake, which would trigger a mandatory general offer (MGO).   
• The shares are at an all-time high and have a P/B multiple that is a material premium to peers. The MGO price is likely to be lower than last close.

• Among the various industries, the banking sector could be negatively impacted if Lee Jae-Myung becomes the next President of Korea.
• Lee Jae-Myung has pledged providing a “basic loan” of 10 million won per citizen which is likely to negatively impact the Korean banks since it lacks rigorous credit checks. 
• There is an increasing likelihood that Lee Jae-Myung could raise the pressure on local banks to share the responsibility of social policies by contributing more money to support them.

• 360 ONE WAM acquires UBS AG’s onshore wealth management business in India for INR 307 crore, adding INR 26,000 crore AUM and expanding its product and client base.
• This acquisition strengthens 360 ONE’s domestic position and offers UBS’s global expertise, creating a powerful, dual-access wealth management platform for global Indians, enhancing growth opportunities.
• The deal signifies a strategic collaboration, not just an exit, with UBS retaining a stake& expanding its Indian operations through 360 ONE, enhancing the value proposition for both firms’ clients.

• An in-depth look at price patterns, implied vol, and the earnings implied jump compared to historical outcomes.
• Based on ICBC’s historical post-earnings behavior and current implied vol levels, we recommend a hedge into the event.
• We explore post-earnings moves that show a potentially exploitable pattern.

• Robert Ng, a significant figure at Sino, is implicated in Singapore’s foreign political interference law due to his involvement with children.
• Cuscaden Peak secures approval for the $2.1B privatization deal of Singapore’s Paragon REIT, marking a significant milestone in the real estate industry.
• PAG DCU appoints Sanjay Goel, formerly of American Tower, as their new CEO, signaling a strategic move in their leadership team.

• Mid-Trading yesterday, broker Bright Smart Securities And (1428 HK) was suspended pursuant to the Takeovers Code. Shares closed up 9.3% before suspension.
• Bright Smart’s ops are tonking along nicely. It recently announced a (preliminary) 10% increase in FY25 profit (Mar Y/E). The share price is up 97% yoy.
• Bright Smart’s Chairman, Yip Peter Mow Lun, holds 50.54%. Unusual timing to take the company private. Alternatively Yip, at 73-years of age, may be cashing in his chips. 

Foxtons Group’s Q125 trading update revealed revenue growth of 24%, driven predominantly by growth in the Sales division, which in turn benefited from a pull forward in transactions due to Stamp Duty changes. However, in the longer term, we believe the company’s strategic direction remains positive, and we expect an update on its strategy to be revealed at the 4 June capital markets day. This may see an upgrade to the medium-term adjusted operating profit target of £28–33m, which is now coming into focus. We maintain our revenue and operating profit estimates and our 134p/share valuation, although risks appear to be skewed to the upside if market momentum continues.

• Hu discussed the upcoming launch of Molecular Universe MU-0 and described how the firm is using AI to accelerate battery materials discovery.
• The Molecular Universe platform is the outgrowth of the firm’s work to map out the entire small molecule universe relevant for Li-metal and Li-ion battery chemistries.
• The platform enables R&D teams to search for chemistries that meet specific engineering requirements, tuned to the specifics of different industry use cases, and interrogate the map of the chemical space in natural language, greatly enhancing R&D efficiency.