Smartkarma Daily Briefs

The Ministry of Finance has published an updated “FEFTA List” of classifications of listed companies as of July 15, 2025.
50 names lowered their ranks from the most “core” Type 3 to Type 2(20), or Type 1(30). 104 names raised from Type 1(51) or Type 2(53) to Type 3.
Smartkarma readers may want to peruse the lists and details to see if they think companies are trying to protect themselves (from threats as yet not known by the public).

[Japan ECM/Index] Japan Business Systems (5036) Offering Triggers Move to TOPIX

Japan Business Systems (5036 JP) today announced a couple of interesting things. First, admission to TOPIX (contingent on a successful secondary offering of shares, also announced today).
Then a ¥5/share special commemorative dividend (0.4%) and a “gift” of 4% of the company to a J-ESOP Trust for employees, where the company gifts the shares.
The latter looks aggressive/generous, but the modalities here are interesting.

Mercari (4385 JP): Japan’s Leading C2C Trading App at 14x P/E with Margin Uplift Potential

By Michael Fritzell

I’m fascinated by the market for second-hand goods.
eBay has existed for many decades, but it was only with the smartphone that the market took off.
With a smartphone, you could snap a photo of your item and post it online within minutes.

Metaplanet (3350) | The Slowing Flywheel: Can Metaplanet Sustain Its Bitcoin Ambition?

By Mark Chadwick

Metaplanet’s equity halved since June, slowing its bitcoin accumulation flywheel as mNAV collapsed from 8x to 2.1x, straining progress toward the 30,000 BTC target.
Despite headwinds, ¥154b raised via SAR and new perpetual preferred shares expand funding capacity, though near-term headroom of ¥80b remains modest relative to ambitions.
September’s EGM may prove pivotal; beyond share amendments, a potential U.S. listing via Metaplanet Treasury Corp could signal intent to access deeper capital markets.

SUMCO Q225. Operating Profit Tanks As Depreciation Soars

By William Keating

SUMCO reported Q225 revenues of ¥102.9 billion, flat sequentially and roughly 3% higher than guidance.
Operating profit of ¥1.5 billion was also slightly better than the forecasted breakeven, but dramatically down from its peak of ¥30.2 billion in Q322.
A projected further increase in depreciation charges for the current quarter is forecasted to drive operating profit to negative ¥3.5 billion. Yikes!

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Aug 19

Daily Brief India: Enviro Infra Engineers, Bluestone Jewellery and Lifestyle Ltd (BJL) and more

By Smartkarma Daily Briefs | Daily Briefs, India

In today’s briefing:

The Beat Ideas: Enviro Infra Engineers Ltd – High-Margin Growth Story in Water Infra
Bluestone Jewellery IPO Trading – Tepid Demand

The Beat Ideas: Enviro Infra Engineers Ltd – High-Margin Growth Story in Water Infra

By Sudarshan Bhandari

EIEL is strategically expanding into high-margin Zero Liquid Discharge (ZLD) projects and the renewable energy sector, diversifying its business beyond its traditional water and wastewater treatment core.
This strategic shift is crucial as it addresses critical national challenges like water scarcity and sustainable energy, aligning the company with major government initiatives and creating new, high-growth revenue streams.
By entering these technically complex and margin-accretive segments, the company is changing its business model to a diversified infrastructure player with enhanced long-term growth and profitability potential.

Bluestone Jewellery IPO Trading – Tepid Demand

By Sumeet Singh

Bluestone Jewellery and Lifestyle Ltd (BJL) raised around US$176m in its India IPO.
BJL offers contemporary lifestyle diamond, gold, platinum, and studded jewellery under its flagship brand. It is a digital-first direct-to-consumer (DTC) brand.
We have looked at the past performance and valuations in our previous note. In this note, we talk about the trading dynamics.

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Aug 19

Daily Brief China: Smart Share Global, Pop Mart, Consun Pharmaceutical, Tencent, Peric Special Gases, SUNeVision Holdings, Geely Auto and more

By Smartkarma Daily Briefs | China, Daily Briefs

In today’s briefing:

Smart Share Global (EM US): Hillhouse Crashes The Party. And Rightfully So
Hang Seng Index (HSI) Rebalance Preview: Inclusion Candidates for Sep25
Quiddity Leaderboard Hang Seng Biotech Sep25: Announcement Soon; MANY DELs Likely!
Tencent (700 HK): Positioning After 41% YTD Rally with Collar Strategies
Quiddity Leaderboard CSI All Share Semiconductors Dec25: Few Changes to Expectations
Quiddity Leaderboard HSCEI Sep25: One Index Change Possible; ~US$180mn One-Way; Announcement Soon
Quiddity Leaderboard HSIII Sep25: Announcement This Week; 3 Changes Likely
Tencent (700 HK): Rally Before Results, Options Market Repricing After
Quiddity Leaderboard HSTECH Sep25: GEELY up 15% Vs Peers; ~US$2.2bn One-Way; Announcement Soon
Pop Mart (9992 HK) – Core Reasons for High Growth and Performance Forecast

Smart Share Global (EM US): Hillhouse Crashes The Party. And Rightfully So

By David Blennerhassett

Nearly seven months after receiving a preliminary non-binding proposal, Smart Share Global (EM US) announced on the 1st August a firm Offer had been entered into.
The Offeror consortium, led by Mars Guangyuan Cai, Chairman and CEO, made an Offer of US$1.25/ADS, a 74.8% premium to last close; but ~20% below net cash + short-term investments.
Now Hillhouse has thrown its hat into the ring with a US$1.77/ADS NBIO. Smart Share’s special committee of independent directors should engage.

Hang Seng Index (HSI) Rebalance Preview: Inclusion Candidates for Sep25

Post market close on Friday, Hang Seng Indexes will announce the changes for the Hang Seng Index (HSI INDEX) that will be implemented at the close on 5 September.
We highlight 6 stocks that have a higher probability of being added to the index. With the index committee entitled to a lot of discretion, there will be differences.
CATL completes 3 months of listing just prior to the review meeting date and is a dark horse candidate, though the committee could let the stock season for another quarter.

Quiddity Leaderboard Hang Seng Biotech Sep25: Announcement Soon; MANY DELs Likely!

The Hang Seng Biotech Index (HSHKBIO) represents the largest biotech companies listed in Hong Kong (HKEX) from September 2025.
We expect 20 index constituents to face deletion in September 2025 rebal due to a recent change in index selection methodology.
The index changes will be announced after the close on Friday 22nd August 2025.

Tencent (700 HK): Positioning After 41% YTD Rally with Collar Strategies

Context:Tencent (700 HK) has performed strongly this year, gaining 41% YTD, including 5.5% last week around its earnings release.
Volatility Skew: A rare setup shows calls trading rich versus puts, creating favorable conditions for protective collar strategies.
Actionable Trade Ideas: Three variations of a protective collar — with charts, pricing, and Greeks — illustrate how to position in the current market.

Quiddity Leaderboard CSI All Share Semiconductors Dec25: Few Changes to Expectations

CSI All Share Semiconductors Index represents the largest and most-liquid stocks in the Semiconductor Industry Group from the Shanghai, Shenzhen, and Beijing Exchanges.
In this insight, we take a look at the potential ADDs and DELs leading the race for the semiannual index rebal event in December 2025.
We expect up to five ADDs and one DEL for the CSI All Share Semiconductors index during this index review event based on the latest available data.

Quiddity Leaderboard HSCEI Sep25: One Index Change Possible; ~US$180mn One-Way; Announcement Soon

The HSCEI serves as a benchmark to reflect the overall performance of the top 50 “Mainland China” securities listed in Hong Kong.
The official index changes and indicative weights for the September 2025 index rebal event will be publicly announced after the close on Friday 22nd August 2025.
We continue to expect Pop Mart (9992 HK) to be an ADD and J&T Global Express (1519 HK) to be a DEL in HSCEI in September 2025.

Quiddity Leaderboard HSIII Sep25: Announcement This Week; 3 Changes Likely

The Hang Seng Internet & IT (HSIII) index represents the top 30 stocks related to internet and information technology businesses listed in Hong Kong (HKEX).
We see three ADDs and three DELs and one float percentage revision which could collectively trigger roughly US$428mn in one-way index flows in September 2025.
The index changes will be announced after the close on Friday 22nd August 2025.

Tencent (700 HK): Rally Before Results, Options Market Repricing After

Context:Tencent (700 HK) reported 2Q25 results last week, beating expectations and fueling a 5.5% move in the stock.
Market Reaction: Shares rallied while front-end options saw a pronounced volatility crush, rotating the term structure back into contango.
Why Read: This note unpacks Tencent’s price action and the evolving volatility setup.

Quiddity Leaderboard HSTECH Sep25: GEELY up 15% Vs Peers; ~US$2.2bn One-Way; Announcement Soon

The HSTECH Index tracks the performance of the top 30 technology companies listed in Hong Kong that have high business exposure to certain technology themes.
The official index changes and indicative weights for the September 2025 index rebal event will be announced after the close on Friday 22nd August 2025.
We continue to expect one low-conviction index change for September 2025 and we estimate there to be capping flows of ~US$2.2bn one-way.

Pop Mart (9992 HK) – Core Reasons for High Growth and Performance Forecast

By Xinyao (Criss) Wang

In bleak consumption environment, Pop Mart is definitely an “outsider”.Explanations such as “lipstick effect” are more like a self-consistent logic, which may have some sense, but doesn’t constitute core contradiction.
To truly understand the investment value of Pop Mart, it’s necessary to assess future growth potential.We think overseas revenue could reach RMB16-17 billion in 2025 and RMB42 billion in 2026.
Net profit CAGR in 2024-2026 could be about 79.5%. Pop Mart would still maintain high growth in short-term. But after 2026, there are uncertainties of channel policies and IP-driven factors.

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Aug 19

Daily Brief Industrials: HMM Co., Ltd., Hanon Systems, Keppel Corp, Enviro Infra Engineers, Bwx Technologies, Allison Transmission Holdings, Sterling Construction Co, Aecom, Trex Company, Hydrofarm Holdings Group Inc and more

By Smartkarma Daily Briefs | Daily Briefs, Industrials

In today’s briefing:

Today’s HMM Tender Follow-Up Disclosure and Hedge Ratio Setup
Hanon Systems Announces a Major Potential Rights Offering
Keppel Ltd. M1: From Privatization to Divestment, What Has Keppel Achieved?
The Beat Ideas: Enviro Infra Engineers Ltd – High-Margin Growth Story in Water Infra
BWX Technologies Expands in Nuclear Innovation—Is This the Next Big Growth Catalyst?
Allison Transmission: Accelerating Global Market Presence With A $2.7 Billion Game-Changing Acquisition!
Sterling Infrastructure: 6 Major Game-Changers Impacting Its 2025 Performance & Beyond!
Aecom – AECOM’s Data Center Boom: Can AI & Advisory Services Propel It to $1 Billion?
Will Trex Company’s Level-Loading Production Enhancement Be A Potential Game Changer?
Hydrofarm Holdings Group, Inc. Portfolio and Footprint Optimization…

Today’s HMM Tender Follow-Up Disclosure and Hedge Ratio Setup

By Sanghyun Park

KOBC’s core mission hinges on HMM; without it, no real mandate. Structural incentive to hold remains, so its active tender participation is still questionable.
Still, max proration risk seems base case, with weak Q2, soft Q3 freight outlook, and post-tender skew pointing bearish for HMM.
Spread >10% makes this too good to pass, but should also watch policy risk — better to lock futures hedge early as flows show players scrambling for cover.

Hanon Systems Announces a Major Potential Rights Offering

By Douglas Kim

On 14 August, Hanon Systems (018880 KS) announced a potential rights offering capital raise. The exact amount will be finalized at the EGM next month.
The significant size of the rights offering is expected to burden its largest shareholder Hankook Tire & Technology (161390 KS) which owns a 54.8% stake in Hanon Systems.
We believe the potential rights offering is likely to continue to negatively impact Hanon Systems by diluting its existing shareholders.

Keppel Ltd. M1: From Privatization to Divestment, What Has Keppel Achieved?

By Tan Yee Peng

Keppel’s sale of M1 to SIMBA generated a lot of interest. However, the most important question goes unanswered: Did Keppel make money since the privatization of M1 in 2018?
Keppel has been reticent about this question, which is odd as this goes to the heart of Keppel’s Vision 2030 transformation plan: to be a global asset manager with Funds Under Management of S$200 billion.
Keppel has insisted that its operating capability differentiates it from other money managers such as Blackstone, Brookfield, KKR, Carlyle, TPG, etc. Connectivity is a main business unit of Keppel, and M1 has been a key business within this vertical.

The Beat Ideas: Enviro Infra Engineers Ltd – High-Margin Growth Story in Water Infra

By Sudarshan Bhandari

EIEL is strategically expanding into high-margin Zero Liquid Discharge (ZLD) projects and the renewable energy sector, diversifying its business beyond its traditional water and wastewater treatment core.
This strategic shift is crucial as it addresses critical national challenges like water scarcity and sustainable energy, aligning the company with major government initiatives and creating new, high-growth revenue streams.
By entering these technically complex and margin-accretive segments, the company is changing its business model to a diversified infrastructure player with enhanced long-term growth and profitability potential.

BWX Technologies Expands in Nuclear Innovation—Is This the Next Big Growth Catalyst?

BWX Technologies, Inc., presented robust financial results for the second quarter of 2025, showcasing a strong operational performance that exceeded expectations.
The key highlights of the quarter include double-digit growth in adjusted EBITDA and earnings per share, alongside substantial free cash flow.
A significant contributor to the company’s promising outlook is the recently closed acquisition of Kinectrics, expanding BWXT’s capabilities in the nuclear power and energy infrastructure markets.

Allison Transmission: Accelerating Global Market Presence With A $2.7 Billion Game-Changing Acquisition!

Allison Transmission’s recent earnings call highlighted a mix of strategic initiatives, industry achievements, and both financial performance and adjustments that are significant to potential investors.
The acquisition of Dana Incorporated’s Off-Highway business reflects a key strategic move to broaden the company’s global reach, diversify its markets, and optimize its operational efficiencies.
This transaction, which carries a purchase price of approximately $2.7 billion, is expected to extend Allison Transmission’s capabilities into additional markets, such as agriculture and construction, while promising significant synergy benefits of up to $120 million annually.

Sterling Infrastructure: 6 Major Game-Changers Impacting Its 2025 Performance & Beyond!

Sterling Infrastructure delivered an impressive performance in the second quarter of 2025, showing significant growth in revenue, earnings, and margins, while also enhancing its financial outlook for the remainder of the year.
The company reported a 21% increase in overall revenue, driven largely by its E-Infrastructure and Transportation Solutions segments, which grew by 29% and 24% respectively.
Sterling’s strategic emphasis on scaling high-margin businesses, particularly in the data center market, stands out as a catalyst for its robust financial results.

Aecom – AECOM’s Data Center Boom: Can AI & Advisory Services Propel It to $1 Billion?

AECOM’s third-quarter performance for fiscal 2025 highlighted several key accomplishments, challenges, and strategic insights that are crucial in evaluating the company’s investment profile.
As disclosed in their earnings call, AECOM achieved record results across multiple financial metrics, including a 6% year-over-year increase in organic net service revenue (NSR) with an 8% increase in the Americas segment alone, indicating robust fundamentals in its core markets.
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.

Will Trex Company’s Level-Loading Production Enhancement Be A Potential Game Changer?

Trex Company’s second-quarter 2025 financial performance showcases a mixed but promising outlook.
The company reported a 3% increase in net sales to $388 million, achieving record quarterly sales despite challenging weather conditions and a declining repair and remodel market.
This growth underscores the resiliency of Trex’s consumer base, the strength of its channel partnerships, and the appeal of its diversified product offerings.

Hydrofarm Holdings Group, Inc. Portfolio and Footprint Optimization…

By Water Tower Research

2Q25 results reflect continued market weakness.
HYFM delivered 2Q25 results that missed our expectations, with revenue of $39MM falling short of our $42MM estimate, while the adjusted EBITDA loss of $2.3MM was worse than our estimate of a loss of $0.3MM.
Industry oversupply and consolidating customer base resulted in a 28% decline in Y/Y volume/mix, with most of the decline attributed to durable product sales, with consumables seeing a less drastic correction.

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Aug 19

Daily Brief Energy/Materials: Peric Special Gases, VanEck Oil Services ETF, Imperial Oil , Base Oil, Copper, Pulsar Helium, Standard Lithium , Coterra Energy and more

By Smartkarma Daily Briefs | Daily Briefs, Energy & Materials Sector

In today’s briefing:

Quiddity Leaderboard CSI All Share Semiconductors Dec25: Few Changes to Expectations
Oilfield Services’ Quiet Comeback: Can It Keep Outpacing the Broader Energy Pack?
Imperial Oil’s Latest Developments: Accelerated Buybacks
Asia base oils demand outlook: Week of 18 August
Antofagasta (ANTO LN) H1 2025: Outperforming The Pack
Pulsar Helium Inc. (TSX-V: PLSR): Very High Flow Rates at Jetstream…
Standard Lithium Ltd: SWA Phase 1 and East Texas Maiden Resource Report Expected Before End of 3Q25
Coterra Energy: Strategic Expansion, Resource Development & Other Major Drivers!

Quiddity Leaderboard CSI All Share Semiconductors Dec25: Few Changes to Expectations

CSI All Share Semiconductors Index represents the largest and most-liquid stocks in the Semiconductor Industry Group from the Shanghai, Shenzhen, and Beijing Exchanges.
In this insight, we take a look at the potential ADDs and DELs leading the race for the semiannual index rebal event in December 2025.
We expect up to five ADDs and one DEL for the CSI All Share Semiconductors index during this index review event based on the latest available data.

Oilfield Services’ Quiet Comeback: Can It Keep Outpacing the Broader Energy Pack?

By Suhas Reddy

OIH’s oilfield services focus, bullish technicals, and rebound history position it to outpace XLE, provided crude prices avoid a sharp near-term downturn.
Since April, OIH has steadily recovered with higher lows, outperforming XLE on the back of a technical rebound and strengthening oil services fundamentals.
The rebound was led by Baker Hughes, OIH’s second-largest holding, after a Q2 beat driven by expanding gas and LNG technology services, while SLB and Halliburton lagged.

Imperial Oil’s Latest Developments: Accelerated Buybacks

Imperial Oil has delivered a mixed set of financial and operational outcomes in its second quarter of 2025 earnings report, underscoring both strengths and challenges for potential investors to consider.
The company reported net income of $949 million, reflecting a decrease from the previous quarter and year due primarily to lower upstream realizations despite higher production volumes.
This suggests that while production efficiency has improved, market conditions have slightly offset these gains.

Asia base oils demand outlook: Week of 18 August

By Iain Pocock

Asia’s base oils demand could get support from pick-up in requirements for replenishment volumes to meet seasonal rise in consumption during final weeks of Q3.
Simultaneous rise in requirements throughout Asia-Pacific region could magnify pick-up in demand and competition for supplies.
Blenders’ relatively lower stocks would add to need for additional supplies.

Antofagasta (ANTO LN) H1 2025: Outperforming The Pack

By Sameer Taneja

The company has been able to lower costs significantly by 12% YoY, improve on its byproduct credits by 37%YoY due to gold prices increasing, while copper prices rose 3.5% YoY.
Production for H1FY25 rose 10% YoY, led by a ramp-up in Centinala, resulting in EBITDA/profit improving by 60% YoY.
While the stock trades at 25x FY25e P/E, we believe that the runway for earnings improvement is enormous as the company ramps up its volumes and manages costs.

Pulsar Helium Inc. (TSX-V: PLSR): Very High Flow Rates at Jetstream…

By Auctus Advisors

Following wellbore clean-up at Jetstream #1, Pulsar Helium achieved a peak natural flow rate of ~0.50 mmcf/d on a 38/64-inch choke at 30 psi wellhead pressure, without compression.
This marks a more than 3x increase compared to the ~0.15 mmcf/d recorded under similar conditions in April 2024.
The well also demonstrated sustained flow rates of 0.15–0.30 mmcf/d over 12–18 hour intervals on smaller choke sizes, with no significant decline and rapid pressure recovery—indicative of strong reservoir performance.

Standard Lithium Ltd: SWA Phase 1 and East Texas Maiden Resource Report Expected Before End of 3Q25

By Water Tower Research

SLI expects to publish a Definitive Feasibility Study (DFS) for its South West Arkansas Phase 1 project in 3Q25 and hopes to reach a Final Investment Decision (FID) by year- end 2025.
Management continues to work with advisors to secure offtake arrangements and evaluate project finance (debt) alternatives.
Phase 1 is designed to produce 22,500 tons/year of battery-quality lithium.

Coterra Energy: Strategic Expansion, Resource Development & Other Major Drivers!

Coterra Energy’s recent earnings call provided a comprehensive overview of the company’s second-quarter 2025 performance, offering insights into both strong points and areas of concern for investors.
The company outperformed its guidance in natural gas production and surpassed its midpoint targets for oil volumes, leading to substantial revenues of approximately $1.7 billion, with a balanced contribution from both oil and natural gas, including natural gas liquids (NGLs).
This performance highlights the company’s ability to generate high returns on capital with a reinvestment rate efficiently kept at 50% of cash flow, indicating strong asset quality.

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Aug 19

Most Read: Sanrio, Santos Ltd, Isupetasys, Shibaura Electronics, Smart Share Global, HMM Co., Ltd., Pop Mart, Mayne Pharma, Japan Business Systems and more

By Smartkarma Daily Briefs | Daily Briefs, Most Read

In today’s briefing:

Nikkei 225 Index Rebalance Sep25: Performance of Potential Adds/Deletes & Positioning
HMM: Tender Offer of 8% of Outstanding Shares and Cancellation
Merger Arb Mondays (18 Aug) – Santos, Shibaura, ENN Energy, Kangji, OneConnect, Smart Share
KOSPI Size Indices: Passive Flows for Many Active Changes
FEFTA Classification Changes Summer 2025
Smart Share Global (EM US): Hillhouse Crashes The Party. And Rightfully So
Today’s HMM Tender Follow-Up Disclosure and Hedge Ratio Setup
Hang Seng Index (HSI) Rebalance Preview: Inclusion Candidates for Sep25
Mayne Pharma (MYX AU): Got to Know when to Hold ‘em, when to Fold ’em
[Japan ECM/Index] Japan Business Systems (5036) Offering Triggers Move to TOPIX

Nikkei 225 Index Rebalance Sep25: Performance of Potential Adds/Deletes & Positioning

The changes to the Nikkei 225 (NKY INDEX) as part of the September rebalance should be announced in just over 2 weeks. We expect 2 changes at the review.
BayCurrent Consulting‘s PAF will double, Fast Retailing‘s CPAF will stay the same, and Sony Financial Group will be deleted from the index following its spinoff from Sony Corp (6758 JP).
Sanrio (8136 JP)‘s improved liquidity increases the probability of index inclusion, and the stock could be added to the index at the next rebalance if it misses in September.

HMM: Tender Offer of 8% of Outstanding Shares and Cancellation

By Douglas Kim

After the market close on 14 August, HMM Co., Ltd. (011200 KS) announced a tender offer of 81.8 million treasury shares (8% of outstanding shares).
An even bigger factor on HMM’s share price than this tender offer could be the continued decline in the global shipping rates which is negative on the company.
Overall, we would be cautious on HMM over the next one year. HMM also reported worse than expected operating profit in 2Q 2025 due to weaker global shipping rates.

Merger Arb Mondays (18 Aug) – Santos, Shibaura, ENN Energy, Kangji, OneConnect, Smart Share

By Arun George

I 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: Smart Share Global (EM US), Mayne Pharma (MYX AU), ENN Energy (2688 HK), Santos Ltd (STO AU), Joy City Property (207 HK), Oneconnect Financial Technology (6638 HK).
Lowest spreads: Bright Smart Securities (1428 HK), Pacific Industrial (7250 JP), Shibaura Electronics (6957 JP), Ci Medical (3540 JP), Soft99 Corp (4464 JP), Ainsworth Game Technology (AGI AU).

KOSPI Size Indices: Passive Flows for Many Active Changes

The review period for the September rebalance of the KOSPI Size Indices commenced on 1 June and will end on 31 August.
Nearing the end of the review period, we forecast 49 migrating stocks. Among new listings, 1 stock could be added to LargeCap, 3 to MidCap and 1 to SmallCap.
There are a number of stocks that will have passive flow from global index trackers over the next few weeks, while some are potential changes to the KOSPI2 in December.

FEFTA Classification Changes Summer 2025

The Ministry of Finance has published an updated “FEFTA List” of classifications of listed companies as of July 15, 2025.
50 names lowered their ranks from the most “core” Type 3 to Type 2(20), or Type 1(30). 104 names raised from Type 1(51) or Type 2(53) to Type 3.
Smartkarma readers may want to peruse the lists and details to see if they think companies are trying to protect themselves (from threats as yet not known by the public).

Smart Share Global (EM US): Hillhouse Crashes The Party. And Rightfully So

By David Blennerhassett

Nearly seven months after receiving a preliminary non-binding proposal, Smart Share Global (EM US) announced on the 1st August a firm Offer had been entered into.
The Offeror consortium, led by Mars Guangyuan Cai, Chairman and CEO, made an Offer of US$1.25/ADS, a 74.8% premium to last close; but ~20% below net cash + short-term investments.
Now Hillhouse has thrown its hat into the ring with a US$1.77/ADS NBIO. Smart Share’s special committee of independent directors should engage.

Today’s HMM Tender Follow-Up Disclosure and Hedge Ratio Setup

By Sanghyun Park

KOBC’s core mission hinges on HMM; without it, no real mandate. Structural incentive to hold remains, so its active tender participation is still questionable.
Still, max proration risk seems base case, with weak Q2, soft Q3 freight outlook, and post-tender skew pointing bearish for HMM.
Spread >10% makes this too good to pass, but should also watch policy risk — better to lock futures hedge early as flows show players scrambling for cover.

Hang Seng Index (HSI) Rebalance Preview: Inclusion Candidates for Sep25

Post market close on Friday, Hang Seng Indexes will announce the changes for the Hang Seng Index (HSI INDEX) that will be implemented at the close on 5 September.
We highlight 6 stocks that have a higher probability of being added to the index. With the index committee entitled to a lot of discretion, there will be differences.
CATL completes 3 months of listing just prior to the review meeting date and is a dark horse candidate, though the committee could let the stock season for another quarter.

Mayne Pharma (MYX AU): Got to Know when to Hold ‘em, when to Fold ’em

By Arun George

On 17 May, Cosette asserted that a material adverse change had occurred. Mayne Pharma (MYX AU) disputes the claim with court proceedings set to start on 22 September.
Mayne’s FY25 results on 29 August should provide incremental clarity, but not a definite answer, on the MAC breach relating to maintainable EBITDA (decline by at least A$10.76 million).
The outcome of the trial remains uncertain as both Mayne and Cosette have valid arguments. Risk/reward is attractive – upside (43.1% to offer) vs the downside (22.3% to deal-break price).

[Japan ECM/Index] Japan Business Systems (5036) Offering Triggers Move to TOPIX

Japan Business Systems (5036 JP) today announced a couple of interesting things. First, admission to TOPIX (contingent on a successful secondary offering of shares, also announced today).
Then a ¥5/share special commemorative dividend (0.4%) and a “gift” of 4% of the company to a J-ESOP Trust for employees, where the company gifts the shares.
The latter looks aggressive/generous, but the modalities here are interesting.

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Aug 19

Daily Brief Industrials: HMM Co., Ltd., Hanon Systems, Keppel Corp, Enviro Infra Engineers, Bwx Technologies, Allison Transmission Holdings, Sterling Construction Co, Aecom, Trex Company, Hydrofarm Holdings Group Inc and more

By Smartkarma Daily Briefs | Daily Briefs, Industrials

In today’s briefing:

Today’s HMM Tender Follow-Up Disclosure and Hedge Ratio Setup
Hanon Systems Announces a Major Potential Rights Offering
Keppel Ltd. M1: From Privatization to Divestment, What Has Keppel Achieved?
The Beat Ideas: Enviro Infra Engineers Ltd – High-Margin Growth Story in Water Infra
BWX Technologies Expands in Nuclear Innovation—Is This the Next Big Growth Catalyst?
Allison Transmission: Accelerating Global Market Presence With A $2.7 Billion Game-Changing Acquisition!
Sterling Infrastructure: 6 Major Game-Changers Impacting Its 2025 Performance & Beyond!
Aecom – AECOM’s Data Center Boom: Can AI & Advisory Services Propel It to $1 Billion?
Will Trex Company’s Level-Loading Production Enhancement Be A Potential Game Changer?
Hydrofarm Holdings Group, Inc. Portfolio and Footprint Optimization…

Today’s HMM Tender Follow-Up Disclosure and Hedge Ratio Setup

By Sanghyun Park

KOBC’s core mission hinges on HMM; without it, no real mandate. Structural incentive to hold remains, so its active tender participation is still questionable.
Still, max proration risk seems base case, with weak Q2, soft Q3 freight outlook, and post-tender skew pointing bearish for HMM.
Spread >10% makes this too good to pass, but should also watch policy risk — better to lock futures hedge early as flows show players scrambling for cover.

Hanon Systems Announces a Major Potential Rights Offering

By Douglas Kim

On 14 August, Hanon Systems (018880 KS) announced a potential rights offering capital raise. The exact amount will be finalized at the EGM next month.
The significant size of the rights offering is expected to burden its largest shareholder Hankook Tire & Technology (161390 KS) which owns a 54.8% stake in Hanon Systems.
We believe the potential rights offering is likely to continue to negatively impact Hanon Systems by diluting its existing shareholders.

Keppel Ltd. M1: From Privatization to Divestment, What Has Keppel Achieved?

By Tan Yee Peng

Keppel’s sale of M1 to SIMBA generated a lot of interest. However, the most important question goes unanswered: Did Keppel make money since the privatization of M1 in 2018?
Keppel has been reticent about this question, which is odd as this goes to the heart of Keppel’s Vision 2030 transformation plan: to be a global asset manager with Funds Under Management of S$200 billion.
Keppel has insisted that its operating capability differentiates it from other money managers such as Blackstone, Brookfield, KKR, Carlyle, TPG, etc. Connectivity is a main business unit of Keppel, and M1 has been a key business within this vertical.

The Beat Ideas: Enviro Infra Engineers Ltd – High-Margin Growth Story in Water Infra

By Sudarshan Bhandari

EIEL is strategically expanding into high-margin Zero Liquid Discharge (ZLD) projects and the renewable energy sector, diversifying its business beyond its traditional water and wastewater treatment core.
This strategic shift is crucial as it addresses critical national challenges like water scarcity and sustainable energy, aligning the company with major government initiatives and creating new, high-growth revenue streams.
By entering these technically complex and margin-accretive segments, the company is changing its business model to a diversified infrastructure player with enhanced long-term growth and profitability potential.

BWX Technologies Expands in Nuclear Innovation—Is This the Next Big Growth Catalyst?

BWX Technologies, Inc., presented robust financial results for the second quarter of 2025, showcasing a strong operational performance that exceeded expectations.
The key highlights of the quarter include double-digit growth in adjusted EBITDA and earnings per share, alongside substantial free cash flow.
A significant contributor to the company’s promising outlook is the recently closed acquisition of Kinectrics, expanding BWXT’s capabilities in the nuclear power and energy infrastructure markets.

Allison Transmission: Accelerating Global Market Presence With A $2.7 Billion Game-Changing Acquisition!

Allison Transmission’s recent earnings call highlighted a mix of strategic initiatives, industry achievements, and both financial performance and adjustments that are significant to potential investors.
The acquisition of Dana Incorporated’s Off-Highway business reflects a key strategic move to broaden the company’s global reach, diversify its markets, and optimize its operational efficiencies.
This transaction, which carries a purchase price of approximately $2.7 billion, is expected to extend Allison Transmission’s capabilities into additional markets, such as agriculture and construction, while promising significant synergy benefits of up to $120 million annually.

Sterling Infrastructure: 6 Major Game-Changers Impacting Its 2025 Performance & Beyond!

Sterling Infrastructure delivered an impressive performance in the second quarter of 2025, showing significant growth in revenue, earnings, and margins, while also enhancing its financial outlook for the remainder of the year.
The company reported a 21% increase in overall revenue, driven largely by its E-Infrastructure and Transportation Solutions segments, which grew by 29% and 24% respectively.
Sterling’s strategic emphasis on scaling high-margin businesses, particularly in the data center market, stands out as a catalyst for its robust financial results.

Aecom – AECOM’s Data Center Boom: Can AI & Advisory Services Propel It to $1 Billion?

AECOM’s third-quarter performance for fiscal 2025 highlighted several key accomplishments, challenges, and strategic insights that are crucial in evaluating the company’s investment profile.
As disclosed in their earnings call, AECOM achieved record results across multiple financial metrics, including a 6% year-over-year increase in organic net service revenue (NSR) with an 8% increase in the Americas segment alone, indicating robust fundamentals in its core markets.
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.

Will Trex Company’s Level-Loading Production Enhancement Be A Potential Game Changer?

Trex Company’s second-quarter 2025 financial performance showcases a mixed but promising outlook.
The company reported a 3% increase in net sales to $388 million, achieving record quarterly sales despite challenging weather conditions and a declining repair and remodel market.
This growth underscores the resiliency of Trex’s consumer base, the strength of its channel partnerships, and the appeal of its diversified product offerings.

Hydrofarm Holdings Group, Inc. Portfolio and Footprint Optimization…

By Water Tower Research

2Q25 results reflect continued market weakness.
HYFM delivered 2Q25 results that missed our expectations, with revenue of $39MM falling short of our $42MM estimate, while the adjusted EBITDA loss of $2.3MM was worse than our estimate of a loss of $0.3MM.
Industry oversupply and consolidating customer base resulted in a 28% decline in Y/Y volume/mix, with most of the decline attributed to durable product sales, with consumables seeing a less drastic correction.

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Aug 19

Daily Brief TMT/Internet: Shibaura Electronics, Japan Business Systems , iFAST, Gemvax & Kael, Tencent, SUNeVision Holdings, Kyndryl Holdings , SUMCO Corp, On Semiconductor and more

By Smartkarma Daily Briefs | Daily Briefs, TMT/Internet

In today’s briefing:

FEFTA Classification Changes Summer 2025
[Japan ECM/Index] Japan Business Systems (5036) Offering Triggers Move to TOPIX
IFAST Placement – Great Track Record but the Stock Is Toppish
FnGuide Semiconductor Top10 Index Rebalance Preview: Two Changes Likely in September
Tencent (700 HK): Positioning After 41% YTD Rally with Collar Strategies
Quiddity Leaderboard HSIII Sep25: Announcement This Week; 3 Changes Likely
Tencent (700 HK): Rally Before Results, Options Market Repricing After
Kyndryl’s $1.8 Billion Partnership Pipeline & Consulting Growth—Is There A Good Upside?
SUMCO Q225. Operating Profit Tanks As Depreciation Soars
ON Semiconductor Is Reshaping Its Business—Could Strategic Exits Unlock Massive Growth?

FEFTA Classification Changes Summer 2025

The Ministry of Finance has published an updated “FEFTA List” of classifications of listed companies as of July 15, 2025.
50 names lowered their ranks from the most “core” Type 3 to Type 2(20), or Type 1(30). 104 names raised from Type 1(51) or Type 2(53) to Type 3.
Smartkarma readers may want to peruse the lists and details to see if they think companies are trying to protect themselves (from threats as yet not known by the public).

[Japan ECM/Index] Japan Business Systems (5036) Offering Triggers Move to TOPIX

Japan Business Systems (5036 JP) today announced a couple of interesting things. First, admission to TOPIX (contingent on a successful secondary offering of shares, also announced today).
Then a ¥5/share special commemorative dividend (0.4%) and a “gift” of 4% of the company to a J-ESOP Trust for employees, where the company gifts the shares.
The latter looks aggressive/generous, but the modalities here are interesting.

IFAST Placement – Great Track Record but the Stock Is Toppish

By Sumeet Singh

Temasek aims to raise around US$104m via selling nearly half of its stake in iFAST (IFAST SP).
The stock has done exceptionally well over the past few years, however, it is now trading at its all time highs.
In this note, we will talk about the deal dynamics and run the deal through our ECM framework.

FnGuide Semiconductor Top10 Index Rebalance Preview: Two Changes Likely in September

With the averaging period for the October rebalance starting in two weeks, we forecast 2 changes for the FnGuide Semiconductor Top10 Index at the upcoming rebalance.
Based on the passive assets tracking the index, there will be between 1.5-4.7x ADV to trade in the forecast changes.
On average, the forecast adds have outperformed the forecast deletes by a wide margin over the last 3 months and could reverse some of the changes from the April rebalance.

Tencent (700 HK): Positioning After 41% YTD Rally with Collar Strategies

Context:Tencent (700 HK) has performed strongly this year, gaining 41% YTD, including 5.5% last week around its earnings release.
Volatility Skew: A rare setup shows calls trading rich versus puts, creating favorable conditions for protective collar strategies.
Actionable Trade Ideas: Three variations of a protective collar — with charts, pricing, and Greeks — illustrate how to position in the current market.

Quiddity Leaderboard HSIII Sep25: Announcement This Week; 3 Changes Likely

The Hang Seng Internet & IT (HSIII) index represents the top 30 stocks related to internet and information technology businesses listed in Hong Kong (HKEX).
We see three ADDs and three DELs and one float percentage revision which could collectively trigger roughly US$428mn in one-way index flows in September 2025.
The index changes will be announced after the close on Friday 22nd August 2025.

Tencent (700 HK): Rally Before Results, Options Market Repricing After

Context:Tencent (700 HK) reported 2Q25 results last week, beating expectations and fueling a 5.5% move in the stock.
Market Reaction: Shares rallied while front-end options saw a pronounced volatility crush, rotating the term structure back into contango.
Why Read: This note unpacks Tencent’s price action and the evolving volatility setup.

Kyndryl’s $1.8 Billion Partnership Pipeline & Consulting Growth—Is There A Good Upside?

Kyndryl, a prominent player in mission-critical enterprise technology services, presented its earnings results for the first fiscal quarter ending June 30, 2025.
The company’s financial performance showcased notable progress alongside certain challenges, reflecting the ongoing transformation and strategic initiatives implemented since the spin-off from IBM.
The company reported revenue of $3.7 billion for the quarter, an increase on a reported basis but a decline of 2.6% in constant currency.

SUMCO Q225. Operating Profit Tanks As Depreciation Soars

By William Keating

SUMCO reported Q225 revenues of ¥102.9 billion, flat sequentially and roughly 3% higher than guidance.
Operating profit of ¥1.5 billion was also slightly better than the forecasted breakeven, but dramatically down from its peak of ¥30.2 billion in Q322.
A projected further increase in depreciation charges for the current quarter is forecasted to drive operating profit to negative ¥3.5 billion. Yikes!

ON Semiconductor Is Reshaping Its Business—Could Strategic Exits Unlock Massive Growth?

ON Semiconductor’s recent quarterly performance showcases a nuanced landscape as it navigates market dynamics and strategic shifts.
The company reported a 1.6% increase in revenue for the quarter, totaling $1.47 billion, which exceeded the midpoint of its guidance.
The non-GAAP gross margin was 37.6%, with an earnings per share (EPS) of $0.53.

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Aug 19

Daily Brief ESG: Keppel Ltd. M1: From Privatization to Divestment and more

By Smartkarma Daily Briefs | Daily Briefs, ESG

In today’s briefing:

Keppel Ltd. M1: From Privatization to Divestment, What Has Keppel Achieved?

Keppel Ltd. M1: From Privatization to Divestment, What Has Keppel Achieved?

By Tan Yee Peng

Keppel’s sale of M1 to SIMBA generated a lot of interest. However, the most important question goes unanswered: Did Keppel make money since the privatization of M1 in 2018?
Keppel has been reticent about this question, which is odd as this goes to the heart of Keppel’s Vision 2030 transformation plan: to be a global asset manager with Funds Under Management of S$200 billion.
Keppel has insisted that its operating capability differentiates it from other money managers such as Blackstone, Brookfield, KKR, Carlyle, TPG, etc. Connectivity is a main business unit of Keppel, and M1 has been a key business within this vertical.

💡 Before it’s here, it’s on Smartkarma

The Smartkarma Preview Pass is your entry to the Independent Investment Research Network

✓ Unlimited Research Summaries
✓ Personalised Alerts
✓ Custom Watchlists
✓ Company Data and News
✓ Events & Webinars

Aug 19

Daily Brief Health Care: Mayne Pharma, Consun Pharmaceutical, Apiam Animal Health, Waters Corp, Hims & Hers Health Inc, Abeona Therapeutics , Classys, Encompass Health , BioNTech and more

By Smartkarma Daily Briefs | Daily Briefs, Healthcare

In today’s briefing:

Mayne Pharma (MYX AU): Got to Know when to Hold ‘em, when to Fold ’em
Quiddity Leaderboard Hang Seng Biotech Sep25: Announcement Soon; MANY DELs Likely!
Apiam Animal Health (AHX AU): Adamantem’s NBIO
Waters Corporation: Microbiology & Mass Spec Expansion & Other Critical Growth Levers!
Hims & Hers: Advancing At-home Lab Testing and Preventive Health To Up Their Game!
ABEO: First Patient Treatment with Zevaskyn Expected in 3Q25
Classys (214150 KS): Equipment Sale Boosts 2Q Result; New Device Approval to Drive 2H Performance
Encompass Health: Use of Technology & Predictive Analytics…
BioNTech SE: An Insight Into The BNT327 Combination Trials In Oncology

Mayne Pharma (MYX AU): Got to Know when to Hold ‘em, when to Fold ’em

By Arun George

On 17 May, Cosette asserted that a material adverse change had occurred. Mayne Pharma (MYX AU) disputes the claim with court proceedings set to start on 22 September.
Mayne’s FY25 results on 29 August should provide incremental clarity, but not a definite answer, on the MAC breach relating to maintainable EBITDA (decline by at least A$10.76 million).
The outcome of the trial remains uncertain as both Mayne and Cosette have valid arguments. Risk/reward is attractive – upside (43.1% to offer) vs the downside (22.3% to deal-break price).

Quiddity Leaderboard Hang Seng Biotech Sep25: Announcement Soon; MANY DELs Likely!

The Hang Seng Biotech Index (HSHKBIO) represents the largest biotech companies listed in Hong Kong (HKEX) from September 2025.
We expect 20 index constituents to face deletion in September 2025 rebal due to a recent change in index selection methodology.
The index changes will be announced after the close on Friday 22nd August 2025.

Apiam Animal Health (AHX AU): Adamantem’s NBIO

By David Blennerhassett

Apiam Animal Health (AHX AU), Australia’s largest rural and regional veterinary group, has announced a non-binding indicative Offer from PE outfit Adamantem Capital.
Adamantem is offering A$0.88/share, a 64.5% premium to last close. If terms are firmed, shareholders will also be afforded a partial scrip option into an unlisted bidco.
Adamantem has also entered into a call option for 19.9% of shares out at A$0.88/share. An independent board committee are assessing the approach. Due diligence not yet granted.

Waters Corporation: Microbiology & Mass Spec Expansion & Other Critical Growth Levers!

Waters Corporation reported a robust financial performance for the second quarter of 2025, showcasing strong sales growth, enhanced product innovation, and strategic expansion into high-growth areas.
The company achieved a 9% sales increase as reported, and 8% on a constant currency basis.
This success was fueled by growth in their LC and mass spectrometry portfolios, and double-digit growth in recurring revenue streams such as services and consumable chemistry.

Hims & Hers: Advancing At-home Lab Testing and Preventive Health To Up Their Game!

Hims & Hers Health has delivered a robust performance in the second quarter of 2025, signaling positive momentum in its quest to democratize access to personalized, high-quality healthcare.
The company reported a 73% increase in revenue to $545 million year-over-year, with a strong adjusted EBITDA margin of over 15%.
This growth is underpinned by a substantial subscriber base of over 2.4 million, facilitated by offerings in areas like dermatology and weight management.

ABEO: First Patient Treatment with Zevaskyn Expected in 3Q25

By Zacks Small Cap Research

On August 14, 2025, Abeona Therapeutics, Inc. (ABEO) announced financial results for the second quarter of 2025 and provided a business update.
The company reported that the U.S. launch of Zevaskyn (prademagene zamikeracel), which was recently approved by the U.S. Food and Drug Administration (FDA) for the treatment of wounds in adult and pediatric patients with recessive dystrophic epidermolysis bullosa (RDEB), is on track and the first patient is scheduled to be treated in the third quarter of 2025.
Abeona indicated that approximately 50 patients have been identified thus far that would likely be good candidates for Zevaskyn treatment, and the company is planning to have capacity to treat 10-14 patients before the end of 2025 and 10 patients/month by mid-2026.

Classys (214150 KS): Equipment Sale Boosts 2Q Result; New Device Approval to Drive 2H Performance

By Tina Banerjee

Classys (214150 KS) has reported strong 2Q25 result, with record high quarterly sales, gross profit, and operating profit. In fact, revenue hit sixth consecutive quarterly record high.
During 2Q25, revenue from device increased 47% YoY and 30% QoQ to KRW46B, mainly driven by strong global sales, which increased 36% YoY and 27% QoQ to KRW33B.
Classys reaffirmed 2025 revenue guidance of KRW340–360B, up 39–48% YoY. In 1H25, the company has achieved 46% of annual revenue target, thereby enhancing guidance visibility.

Encompass Health: Use of Technology & Predictive Analytics…

Encompass Health Corporation reported strong financial performance for the second quarter of 2025, underpinned by a 12% increase in revenue to $1.46 billion and a 17.2% rise in adjusted EBITDA to $308.6 million.
This robust growth was driven by a 7.2% increase in total discharges and a 4.2% rise in net revenue per discharge, notably supported by the reduced bad debt expense.
Additionally, the quarter saw enhanced patient intake and discharge metrics, with strong growth reported in neurological conditions and stroke treatments, areas where Encompass Health holds noticeable clinical expertise.

BioNTech SE: An Insight Into The BNT327 Combination Trials In Oncology