Smartkarma Daily Briefs

IDEXX Laboratories, Inc. reported robust financial results for the second quarter of 2025, underpinned by strong execution, particularly in their Companion Animal Group (CAG) business.
The company’s revenue increased 11% as reported and 9% organically.
Growth was driven notably by advancements in their CAG Diagnostic Recurring Revenues, which benefited from significant CAG instrument sales and a strong international performance.

Moderna Inc Expands Beyond Respiratory Vaccines – Is Diversification the Key to Long-Term Success?

The earnings report for Moderna, Inc.’s second quarter of 2025 presents a multifaceted picture of the company’s current financial health and strategic endeavors.
Beginning with the financial landscape, Moderna reported revenues of $2.1 billion and experienced a loss of $0.8 billion, which aligns with the company’s expectations given the seasonal nature of its respiratory vaccine business.
Notably, the company managed to reduce its cost of sales and SG&A by 35% compared to the previous year, indicating a strong commitment to financial discipline.

Vertex Pharmaceuticals: Will Its Growth of JOURNAVX Be A Critical Breakthrough?

Vertex Pharmaceuticals reported strong performance in the second quarter of 2025, achieving a 12% year-overyear revenue growth, reaching $2.96 billion.
This growth was driven by the successful commercialization of multiple new products and the expansion of its existing portfolio in treating cystic fibrosis (CF), sickle cell disease, beta thalassemia, and acute pain.
On the positive side, Vertex Pharmaceuticals made significant strides in the CF market with the introduction of ALYFTREK, which is showing promising adoption across the United States and Europe.

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Aug 17

Daily Brief Industrials: Fluor Corp, Hillenbrand Inc, nVent Electric , Oshkosh Corp, RBC Bearings , Regal Rexnord and more

By Smartkarma Daily Briefs | Daily Briefs, Industrials

In today’s briefing:

Fluor Corporation Navigates Trade Turbulence – Can It Keep Its Global Project Pipeline Strong?
Hillenbrand Stock Pops On Sale Rumors—Is A Bidding War Next?
nVent Captures Modular & Gray Space Opportunities to Fuel Revenue Growth; What’s The Expected Revenue Impact?
Oshkosh Corporation: Initiation of Coverage- These Are The 4 Biggest Challenges In Its Path!
RBC Bearings: Initiation Of Coverage- Why Synergies & Market Expansion Are Key To Its Long-Term Success!
Regal Rexnord: A Tale Of Cross-Sell Synergies & New Product Launches To Drive Industrial Transformation!

Fluor Corporation Navigates Trade Turbulence – Can It Keep Its Global Project Pipeline Strong?

Fluor Corporation recently reported its second quarter earnings for 2025, which presented a mixed financial picture and an update on strategic activities.
A major highlight was the announcement of converting 15 million NuScale Power (NuScale) Class B shares into Class A securities.
This strategic move aims to enhance shareholder value and leverage their expertise in NuScale EPC, although the decrease in NuScale’s market performance presents challenges.

Hillenbrand Stock Pops On Sale Rumors—Is A Bidding War Next?

Hillenbrand’s fiscal third-quarter results for 2025 present a complex picture of strategic maneuvers amidst persistent economic challenges.
On one hand, Hillenbrand has advanced its strategic objectives, focusing on simplifying its portfolio and reducing debt, evidenced by the divestiture of the Milacron Injection Molding & Extrusion (MIME) business and the sale of its minority interest in TerraSource.
These divestitures generated a total of $380 million in net proceeds, which were channelled towards debt reduction, thereby enhancing the company’s balance sheet.

nVent Captures Modular & Gray Space Opportunities to Fuel Revenue Growth; What’s The Expected Revenue Impact?

nVent Electric plc delivered a strong performance in its second quarter of 2025, with both sales and adjusted earnings per share (EPS) surpassing prior guidance.
The company’s strategic transformation towards focusing on higher-growth, electrical connection, and protection markets is yielding positive results.
Notably, sales rose by 30%, including 9% organic growth, driven primarily by the infrastructure vertical, which saw a significant increase owing to heightened demand for data solutions and data centers.

Oshkosh Corporation: Initiation of Coverage- These Are The 4 Biggest Challenges In Its Path!

Oshkosh Corporation’s second quarter of 2025 demonstrated a nuanced financial landscape with both strengths and challenges.
The company reported revenues of $2.7 billion, a slight decrease from the previous year, alongside an adjusted operating margin of 11.5%.
Despite the revenue decline, Oshkosh delivered adjusted earnings per share of $3.41, representing a modest 2.1% increase from the past year.

RBC Bearings: Initiation Of Coverage- Why Synergies & Market Expansion Are Key To Its Long-Term Success!

RBC Bearings Inc., a company specializing in precision bearings and components in the Aerospace, Defense, and Industrial markets, reported strong financial results for their fiscal first quarter of 2026.
The company achieved a notable 7.3% increase in sales to $436 million compared to the same period last year, driven primarily by robust performance in the Aerospace and Defense (A&D) segment and solid growth in industrial businesses.
This growth was complemented by a 10.4% year-over-year sales increase in A&D, fueled by significant contributions from commercial aerospace and defense aftermarket activities.

Regal Rexnord: A Tale Of Cross-Sell Synergies & New Product Launches To Drive Industrial Transformation!

Regal Rexnord delivered a mixed performance in its second quarter of 2025, demonstrating resilience amidst a challenging macroeconomic environment.
The company’s sales experienced a slight decline of 1.2% on an organic basis year-over-year, in line with expectations, due to project timing issues within metals and mining and temporary constraints concerning rare earth magnet availability in the AMC segment.
However, these challenges were balanced by robust performance in the residential and commercial HVAC and aerospace markets.

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Aug 17

Daily Brief ESG: Revision of Corporate Governance Code Will Support Dialogue Between Overseas Investors and Companies and more

By Smartkarma Daily Briefs | Daily Briefs, ESG

In today’s briefing:

Revision of Corporate Governance Code Will Support Dialogue Between Overseas Investors and Companies

Revision of Corporate Governance Code Will Support Dialogue Between Overseas Investors and Companies

By Aki Matsumoto

At June AGMs held by over 1,700 companies, out of 114 companies that received shareholder proposals, 7 were approved. The fact is that proposals aren’t approved without high foreign ownerships.
At the end of March 2024, institutional investors’ shareholding surpassed the combined shareholding of corporate and financial institutions. Companies are expected to listen to the opinions of their shareholders.
Although technical guidance from FSA and TSE is unlikely to directly lead to management improvements, it’s expected to serve as a basis for supporting dialogue between overseas investors and companies.

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Aug 17

Daily Brief Consumer: Guangzhou Automobile Group, Sun Corp, Samsonite, TSE Tokyo Price Index TOPIX, Sinclair Broadcast Group A, MercadoLibre , Ingredion Inc, Magna International , Church & Dwight Co and more

By Smartkarma Daily Briefs | Consumer, Daily Briefs

In today’s briefing:

A/H Premium Tracker (To 15 Aug 2025): BIG Beautiful Skew Rampages Onward
Last Week In Event SPACE: Sun Corp/Cellebrite, Swire, Shandong Hi-Speed, PRC Rural Bank Delistings
Strategic Developments: LWAY’s Strong Q2, RTAC’s Decline, WOW Buyout, and Samsonite’s Dual Listing Plans
Revision of Corporate Governance Code Will Support Dialogue Between Overseas Investors and Companies
Sinclair’s Strategic Review Sends M&A Signals—Is A Mega Deal Coming?
MercadoLibre Inc.: E-commerce Expansion & Free Shipping Strategy to Enhance Overall Value Proposition!
Ingredion Incorporated: Geographic Market Strategy in LATAM to Further Enforce Their Competitive Edge!
Magna International: Initiation Of Coverage- Strengthening Its Competitive Edge With Localization & Technological Flexibility!
Church & Dwight: International Expansion & Market Penetration to Enhance Revenue Streams Outside of the U.S.!

A/H Premium Tracker (To 15 Aug 2025): BIG Beautiful Skew Rampages Onward

HUGE, rampaging, “Beautiful Skew” continues. Enormous swings in H/A ratios in high AH premia names, materials, and non-bank finance.
Last week’s short reco on China Merchants Bank H (3968 HK) fell 2.9% on the week, 2.2% from Monday close to Friday. AH premium fell a tick.
The data tables below update on a daily basis in the Tools section of Smartkarma. The SOUTHBOUND Flow Monitor and AH Pairs Monitor are both there free for SK readers.

Last Week In Event SPACE: Sun Corp/Cellebrite, Swire, Shandong Hi-Speed, PRC Rural Bank Delistings

By Special Situation Investments

Sun Corp (6736 JP) is a clear value play. But it’s not as cheap to Cellebrite (CLBT US) as it was last month. The trade is a net long position
As Swire Pacific (A) (19 HK) plumbs new 12-month lows for its NAV discount and implied stub, Swire’s B shares have significantly outperformed the As over the past month.
Shandong Hi-Speed (412 HK) is a bubble. High shareholder concentration is still likely present, and the stock is getting squeezed. SHP is a short. Once it starts to turn.

Strategic Developments: LWAY’s Strong Q2, RTAC’s Decline, WOW Buyout, and Samsonite’s Dual Listing Plans

Lifeway Foods’ Q2 results show 10% sales growth and 18% volume increase, enhancing leverage in Danone negotiations.
Renatus Tactical Acquisition’s stock declined by 6% amid speculation on crypto treasury strategy, maintaining attractive risk-reward profile.
WideOpenWest buyout concluded at $5.2/share, offering 65% premium to recent levels, despite undervaluation concerns.

Revision of Corporate Governance Code Will Support Dialogue Between Overseas Investors and Companies

By Aki Matsumoto

At June AGMs held by over 1,700 companies, out of 114 companies that received shareholder proposals, 7 were approved. The fact is that proposals aren’t approved without high foreign ownerships.
At the end of March 2024, institutional investors’ shareholding surpassed the combined shareholding of corporate and financial institutions. Companies are expected to listen to the opinions of their shareholders.
Although technical guidance from FSA and TSE is unlikely to directly lead to management improvements, it’s expected to serve as a basis for supporting dialogue between overseas investors and companies.

Sinclair’s Strategic Review Sends M&A Signals—Is A Mega Deal Coming?

Sinclair Broadcast Group recently released its financial results for the second quarter of 2025, reporting a challenging quarter amid macroeconomic uncertainties, though they still managed to deliver results close to their target ranges.
The company showed resilience through its extensive media and technology platform, with advertising revenue within expectations, and a year-over-year rise in core advertising revenue.
However, expectations were tempered with distribution revenues not meeting projections due to slower subscriber growth in larger virtual MVPDs. 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.

MercadoLibre Inc.: E-commerce Expansion & Free Shipping Strategy to Enhance Overall Value Proposition!

MercadoLibre reported solid performance for the second quarter of 2025, marked by a substantial revenue increase of over 30% year-on-year and record income from operations of $825 million.
The company’s strategy to lower the free shipping threshold in Brazil for the third time in five years reflects its goal of increasing online retail by minimizing transaction barriers.
This initiative reportedly attracted new users and enhanced engagement with existing ones, positively impacting gross merchandise value (GMV) growth, especially in June.

Ingredion Incorporated: Geographic Market Strategy in LATAM to Further Enforce Their Competitive Edge!

Ingredion Incorporated reported its second-quarter results for 2025, showcasing mixed financial performance with both positive and negative aspects influencing its strategic outlook.
The company achieved a historic milestone with an adjusted operating income of $273 million, marking its highest ever for a second quarter, bolstered by a 1% increase from the previous year and a 12% increase during the first half of 2025.
However, net sales declined by 2% due to the pass-through of lower corn costs, highlighting some challenges in its operational efficiency and pricing strategy.

Magna International: Initiation Of Coverage- Strengthening Its Competitive Edge With Localization & Technological Flexibility!

Magna International’s second quarter of 2025 results showcase a mixed performance across various financial metrics, amid ongoing industry challenges such as lower vehicle production in key markets and tariff impacts.
The company managed to achieve a 1% increase in adjusted earnings before interest and taxes (EBIT) and a 20- basis-point improvement in EBIT margin, although sales decreased by 3% year-over-year to $10.6 billion.
This contraction in sales was mainly attributed to weaker production dynamics in North America and Europe, declines in complete vehicle assembly volumes, and other operational adjustments.

Church & Dwight: International Expansion & Market Penetration to Enhance Revenue Streams Outside of the U.S.!

The recent earnings report for Church & Dwight reveals a mixed performance in the second quarter of 2025, characterized by modest growth and strategic management actions.
Organic sales registered a slight increase of 0.1%, slightly surpassing earlier expectations of a decline between 2% to flat sales.
Adjusted EPS was $0.94, outperforming the anticipated $0.85, driven by stronger sales performance and resilient gross margins.

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Aug 17

Daily Brief Financials: Edelweiss Financial Services and more

By Smartkarma Daily Briefs | Daily Briefs, Financials

In today’s briefing:

Edelweiss Financial (EDEL IN): Attractive Valuations with Value Unlocking on the Anvil

Edelweiss Financial (EDEL IN): Attractive Valuations with Value Unlocking on the Anvil

By Himanshu Dugar

Edelweiss is a financial services platform offering asset management, lending, and insurance. It has restructured its corporate model in recent years, shifting from a diversified conglomerate to operating standalone businesses.
The proposed IPO of the alternate-assets business and stake sale in MF business creates an event-driven opportunity. Group is out of liquidity issues now with legacy ARC assets resolved.
Stock corrected 20% in the last month after SEBI returned the IPO application. We note that the reason was just reporting changes and company is on track for 2026 IPO.

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Aug 17

Daily Brief Equity Bottom-Up: Coherent Sells $400 Million Unit To Advent—What Are They Hiding? and more

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

In today’s briefing:

Coherent Sells $400 Million Unit To Advent—What Are They Hiding?
Top 10 Korean Stock Picks and Key Catalysts Bi-Weekly (15 to 29 August 2025)
China Healthcare Weekly (Aug.17) – GLP-1s Inflection Point, Novartis to Acquire Avidity Biosciences
Taiwan Dual-Listings Monitor: TSMC ADR Premium Sees Small Breakdown; ASE Discount Long Opportunity
Diamondback Energy: Initiation of Coverage- Unlocking Hidden Value Through Advanced Zone Development!
Birla Opus: Grasim’s Game-Changing Play in India’s Decorative Paints Market
EchoStar Corporation: Initiation Of Coverage- Betting Big on LEO Satellites – Will Direct-to-Device Services Capture the Market First?
IDEXX Laboratories Hits 10
Hillenbrand Stock Pops On Sale Rumors—Is A Bidding War Next?
Fluor Corporation Navigates Trade Turbulence – Can It Keep Its Global Project Pipeline Strong?

Coherent Sells $400 Million Unit To Advent—What Are They Hiding?

Coherent Corp has announced a strategic divestiture, selling its Aerospace and Defense (A&D) business unit to private equity firm Advent International for $400 million.
The transaction, disclosed on August 13, 2025, marks a critical pivot in Coherent’s broader portfolio optimization initiative.
As part of this deal, Coherent will relinquish approximately 550 employees and 10 global operational sites tied to the A&D division.

Top 10 Korean Stock Picks and Key Catalysts Bi-Weekly (15 to 29 August 2025)

By Douglas Kim

In this insight, we provide the top 10 stock picks and key catalysts in the Korean stock market for the two weeks (15 to 29 August 2025).
Shipbuilding and rechargeable battery were two of the best performing sectors in the past two weeks.
Top 10 picks in this bi-weekly include Samsung Electronics, LG Uplus, Hyundai Elevator, KT&G, KEPCO E&C, Dentium, NCsoft, JYP Entertainment, LG Chem, and Ecopro BM.

China Healthcare Weekly (Aug.17) – GLP-1s Inflection Point, Novartis to Acquire Avidity Biosciences

By Xinyao (Criss) Wang

Based on 25Q2 sales data of Semaglutide and Tirzepatide, the penetration rate of both T2D and weight loss indications is approaching ceiling. The inflection point of GLP-1 market has arrived.
When the gap of clinical progress in EU/US markets is too large, these drugs may not even be on the same tier, and thus do not constitute substantive competition.
Novartis has approached Avidity Biosciences with an acquisition offer. We think price range of $9-11B is justified by 3-5x peak sales multiples and strategic urgency.

Taiwan Dual-Listings Monitor: TSMC ADR Premium Sees Small Breakdown; ASE Discount Long Opportunity

By Vincent Fernando, CFA

TSMC: +21.5% Premium; Historically High Short Interest in the Local Begins to Drop?
ASE: -0.4% Discount; Opportunity to Go Long the ADR Premium
UMC: +0.2% Premium; Wait for More Extreme Levels Before Going Long or Short the Spread

Diamondback Energy: Initiation of Coverage- Unlocking Hidden Value Through Advanced Zone Development!

Diamondback Energy reported its second-quarter 2025 results, showcasing its consistent focus on enhancing shareholder value through operational efficiencies and strategic asset management.
The company continues to leverage its expertise in acquiring and optimizing assets, particularly in the Permian Basin, where it has historically demonstrated proficiency in cost reduction and improved execution.
One of the highlights of the quarter included successful integration of previous acquisitions, notably Endeavor, which was executed smoothly without operational disruptions.

Birla Opus: Grasim’s Game-Changing Play in India’s Decorative Paints Market

By Sudarshan Bhandari

Grasim’s Birla Opus has rapidly gained market share in India’s decorative paints sector, crossing the 10% organized market threshold in Q1FY26.
Capacity is set to ~24% of organised industry, reinforcing a scale-led market share push even as incumbents intensify discounting in economy paints.
With distribution densification, a service layer (PaintCraft), and premium skew, Birla Opus is building operating leverage; monitor execution through festive season and monsoon volatility.

EchoStar Corporation: Initiation Of Coverage- Betting Big on LEO Satellites – Will Direct-to-Device Services Capture the Market First?

EchoStar Corporation’s second quarter 2025 financial performance reflects a combination of strategic initiatives and significant challenges, particularly in its interaction with the Federal Communications Commission (FCC) and the communications market.
The company’s overarching ambition is to maintain leadership in global communications through spectrum rights and technological advances, yet it is navigating regulatory complexities that impact these plans.
The company’s primary setback stems from an FCC review of its spectrum licenses, including obligations related to 5G broadband service and its AWS-4 band rights.

IDEXX Laboratories Hits 10

IDEXX Laboratories, Inc. reported robust financial results for the second quarter of 2025, underpinned by strong execution, particularly in their Companion Animal Group (CAG) business.
The company’s revenue increased 11% as reported and 9% organically.
Growth was driven notably by advancements in their CAG Diagnostic Recurring Revenues, which benefited from significant CAG instrument sales and a strong international performance.

Hillenbrand Stock Pops On Sale Rumors—Is A Bidding War Next?

Hillenbrand’s fiscal third-quarter results for 2025 present a complex picture of strategic maneuvers amidst persistent economic challenges.
On one hand, Hillenbrand has advanced its strategic objectives, focusing on simplifying its portfolio and reducing debt, evidenced by the divestiture of the Milacron Injection Molding & Extrusion (MIME) business and the sale of its minority interest in TerraSource.
These divestitures generated a total of $380 million in net proceeds, which were channelled towards debt reduction, thereby enhancing the company’s balance sheet.

Fluor Corporation Navigates Trade Turbulence – Can It Keep Its Global Project Pipeline Strong?

Fluor Corporation recently reported its second quarter earnings for 2025, which presented a mixed financial picture and an update on strategic activities.
A major highlight was the announcement of converting 15 million NuScale Power (NuScale) Class B shares into Class A securities.
This strategic move aims to enhance shareholder value and leverage their expertise in NuScale EPC, although the decrease in NuScale’s market performance presents challenges.

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Aug 17

Most Read: Dian Swastatika Sentosa, Horizon Robotics, Amman Mineral Internasional, Consun Pharmaceutical, Zhongji Innolight , Ola Electric, JX Advanced Metals, King Slide Works, Guangzhou Automobile Group, Carta Holdings, Inc. and more

By Smartkarma Daily Briefs | Daily Briefs, Most Read

In today’s briefing:

Dian Swastatika Sentosa (DSSA IJ): Surprise, Surprise!
Hang Seng Internet & IT Index (HSIII) Rebalance Preview: Constituent, FAF & Capping Changes
Gold Miners ETF (GDX US): Big Outperformance Driven by Benchmark Change; Valuation Gap Opens Up
Hang Seng Biotech Index Rebalance Preview: Methodology Change Leads to 20 Deletions
China A50 ETFs Rebalance Preview: Three Changes in September
NIFTY MIDCAP150 Index Rebalance Preview: 11 Potential Changes in September
JX Advanced Metals (5016 JP): Passive Buying in the Next 6 Weeks
Taiwan Top 50 ETF Rebalance Preview: Another Inclusion for King Slide
A/H Premium Tracker (To 15 Aug 2025): BIG Beautiful Skew Rampages Onward
[Japan M&A] NTT Docomo and Dentsu Squeeze Out Minorities in Carta (3688 JP) Cheap. Tender Starts Now

Dian Swastatika Sentosa (DSSA IJ): Surprise, Surprise!

Dian Swastatika Sentosa (DSSA IJ) will be added to a global index in August and that should come as a surprise to most of the market.
The stock is up 10x over the last 18 months and liquidity has shown a marked improvement in the last year.
Dian Swastatika Sentosa (DSSA IJ) trades at nosebleed valuations and there is the risk of a sell off following index inclusion.

Hang Seng Internet & IT Index (HSIII) Rebalance Preview: Constituent, FAF & Capping Changes

There are 3 potential changes for the HSIII Index in September. There are couple of names that are close to the inclusion/ deletion thresholds.
The largest inflows will go to Horizon Robotics (9660 HK) following lock-up expiry that increases the Free-Float Adjusted Factor (FAF) by a factor of 7-8x.
There are large capping changes too and the estimated one-way turnover is 9.8% resulting in a round-trip trade of HK$5.65bn (US$720m).

Gold Miners ETF (GDX US): Big Outperformance Driven by Benchmark Change; Valuation Gap Opens Up

The VanEck Gold Miners ETF/USA (GDX US) will change benchmark from the NYSE Arca Gold Miners Index to the MarketVector Global Gold Miners Index at the close on 19 September.
We forecast 8 adds and 25 deletes for the ETF. Estimated one-way turnover is 15.77% resulting in a round-trip trade of US$6.18bn.
The forecast adds have outperformed the forecast deletes since the announcement of the benchmark switch and over shorter time frames too. The valuation gap has opened up.

Hang Seng Biotech Index Rebalance Preview: Methodology Change Leads to 20 Deletions

A methodology change for the Hang Seng Biotech Index (HSHKBIO Index) will result in 20 deletions at the close of trading on 5 September.
Estimated one-way turnover at the rebalance is 9.5% resulting in a round-trip trade of HK$1.3bn (US$162m). Passive trackers need to sell between 0.05-1x ADV in the deletes.
The forecast deletes have underperformed the other index constituents since the start of the year but there has been little movement since the announcement of the methodology change.

China A50 ETFs Rebalance Preview: Three Changes in September

Nearing the end of the review period for the September rebalance, there could be three changes for the iShares A50 China (2823 HK)/ CSOP China A50 (HKD) (2822 HK).
WuXi AppTec, Zhongji Innolight and BeiGene could replace China United Network, NARI Technology and China National Nuclear Power in the ETF at the close on 19 September.
Passives will need to trade 0.1-0.7x ADV in the forecast changes. The forecast adds have massively outperformed the forecast deletes over the last 4 months.

NIFTY MIDCAP150 Index Rebalance Preview: 11 Potential Changes in September

With the review period now complete, there could be 11 changes for the NIFTY Midcap 150 Index at the September rebalance.
Estimated one-way turnover is 7.7% resulting in a round-trip trade of INR 17.6bn (US$201m). With over US$43bn tracking the index actively, the impact on the stocks will be much larger.
The outright forecast adds have outperformed the forecast deletes over the last 4 months and there has been a jump in the last week.

JX Advanced Metals (5016 JP): Passive Buying in the Next 6 Weeks

JX Advanced Metals (5016 JP) listed in March and did not get Fast Entry to global indices since a large part of the IPO was allotted to domestic retail investors.
JX Advanced Metals (5016 JP) will be added to one global index this month and could be added to the other global index in September.
The stock is trading higher following the better than forecast results announced last week. The index inclusions could take the stock higher in the short-term.

Taiwan Top 50 ETF Rebalance Preview: Another Inclusion for King Slide

There could be 2 changes for the Yuanta/P-Shares Taiwan Top 50 ETF in September – one is high probability and the other is right at the cusp.
King Slide Works (2059 TT) is being added to a global index this month, so the ETF inclusion will come hot on the heels of that.
The impact on the stocks is pretty big with passive trackers needing to buy between 1.3-5.5x ADV in the adds and sell between 3.4-6.4x ADV in the deletes.

A/H Premium Tracker (To 15 Aug 2025): BIG Beautiful Skew Rampages Onward

HUGE, rampaging, “Beautiful Skew” continues. Enormous swings in H/A ratios in high AH premia names, materials, and non-bank finance.
Last week’s short reco on China Merchants Bank H (3968 HK) fell 2.9% on the week, 2.2% from Monday close to Friday. AH premium fell a tick.
The data tables below update on a daily basis in the Tools section of Smartkarma. The SOUTHBOUND Flow Monitor and AH Pairs Monitor are both there free for SK readers.

[Japan M&A] NTT Docomo and Dentsu Squeeze Out Minorities in Carta (3688 JP) Cheap. Tender Starts Now

On 16 June 2025, NTT (Nippon Telegraph & Telephone) (9432 JP) sub NTT Docomo and Dentsu Inc (4324 JP) announced Docomo would buy out minorities in Dentsu sub Carta Holdings.
The price for minorities is OK, not great. The Board talks up synergies not included in fair value considerations, and Dentsu+Docomo are actually buying it 15% cheaper.
That comes out to a net price below the bottom end of the DCF range. Aaargh. But Dentsu+irrevocables+ large individuals likely gets this over the line cleanly.

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Aug 17

Daily Brief Event-Driven: A/H Premium Tracker (To 15 Aug 2025): BIG Beautiful Skew Rampages Onward and more

By Smartkarma Daily Briefs | Daily Briefs, Event-Driven

In today’s briefing:

A/H Premium Tracker (To 15 Aug 2025): BIG Beautiful Skew Rampages Onward
HK Connect SOUTHBOUND Flows (To 15 Aug 2025); Big Swing Into ETFs Likely Means Swing to Tech This Wk
[Japan M&A] NTT Docomo and Dentsu Squeeze Out Minorities in Carta (3688 JP) Cheap. Tender Starts Now
Edelweiss Financial (EDEL IN): Attractive Valuations with Value Unlocking on the Anvil
Gold Road (GOR AU): 22th September Vote On Gold Fields’ Offer
Last Week In Event SPACE: Sun Corp/Cellebrite, Swire, Shandong Hi-Speed, PRC Rural Bank Delistings
Gold Road (GOR AU): Gold Fields (GFI US)’s Scheme Vote on 22 September
Strategic Developments: LWAY’s Strong Q2, RTAC’s Decline, WOW Buyout, and Samsonite’s Dual Listing Plans
(Mostly) Asia-Pac M&A: Kangji Medical, Ashimori, Carenet, Rezil, HKBN, Toyo Cons., Shibaura Elect.

A/H Premium Tracker (To 15 Aug 2025): BIG Beautiful Skew Rampages Onward

HUGE, rampaging, “Beautiful Skew” continues. Enormous swings in H/A ratios in high AH premia names, materials, and non-bank finance.
Last week’s short reco on China Merchants Bank H (3968 HK) fell 2.9% on the week, 2.2% from Monday close to Friday. AH premium fell a tick.
The data tables below update on a daily basis in the Tools section of Smartkarma. The SOUTHBOUND Flow Monitor and AH Pairs Monitor are both there free for SK readers.

HK Connect SOUTHBOUND Flows (To 15 Aug 2025); Big Swing Into ETFs Likely Means Swing to Tech This Wk

Gross SOUTHBOUND volumes over US$19+bn a day this past 5-day week. Net buying OK at just under +US$1bn/day. Significantly, there was huge net buying of ETFs.
Last week’s reco Guangzhou Automobile Group (2238 HK) was up 4.4% on the week, +3.1% from Monday’s close to Friday. +3.9% gain on the H/A pair.
The data tables below update on a daily basis in the Tools section of Smartkarma. The SOUTHBOUND Flow Monitor and AH Pairs Monitor are both there free for SK readers.

[Japan M&A] NTT Docomo and Dentsu Squeeze Out Minorities in Carta (3688 JP) Cheap. Tender Starts Now

On 16 June 2025, NTT (Nippon Telegraph & Telephone) (9432 JP) sub NTT Docomo and Dentsu Inc (4324 JP) announced Docomo would buy out minorities in Dentsu sub Carta Holdings.
The price for minorities is OK, not great. The Board talks up synergies not included in fair value considerations, and Dentsu+Docomo are actually buying it 15% cheaper.
That comes out to a net price below the bottom end of the DCF range. Aaargh. But Dentsu+irrevocables+ large individuals likely gets this over the line cleanly.

Edelweiss Financial (EDEL IN): Attractive Valuations with Value Unlocking on the Anvil

By Himanshu Dugar

Edelweiss is a financial services platform offering asset management, lending, and insurance. It has restructured its corporate model in recent years, shifting from a diversified conglomerate to operating standalone businesses.
The proposed IPO of the alternate-assets business and stake sale in MF business creates an event-driven opportunity. Group is out of liquidity issues now with legacy ARC assets resolved.
Stock corrected 20% in the last month after SEBI returned the IPO application. We note that the reason was just reporting changes and company is on track for 2026 IPO.

Gold Road (GOR AU): 22th September Vote On Gold Fields’ Offer

After rejecting an approach on the 24th March, on the 5th May, Gold Road Resources (GOR AU)entered into a Scheme with Gold Fields Ltd (GFI SJ) after terms were bumped.
GFI offered $2.52/share, cash, plus a variable cash component of ~A$0.88 (now worth ~A$0.77/share) via GOR’s indirect stake in Northern Star Resources (NST AU). This includes any fully franked dividend.
The Scheme Booklet is now out, with a shareholder vote on the 22nd September. The IE (Deloitte) says fair & reasonable. It is.

Last Week In Event SPACE: Sun Corp/Cellebrite, Swire, Shandong Hi-Speed, PRC Rural Bank Delistings

By Special Situation Investments

Sun Corp (6736 JP) is a clear value play. But it’s not as cheap to Cellebrite (CLBT US) as it was last month. The trade is a net long position
As Swire Pacific (A) (19 HK) plumbs new 12-month lows for its NAV discount and implied stub, Swire’s B shares have significantly outperformed the As over the past month.
Shandong Hi-Speed (412 HK) is a bubble. High shareholder concentration is still likely present, and the stock is getting squeezed. SHP is a short. Once it starts to turn.

Gold Road (GOR AU): Gold Fields (GFI US)’s Scheme Vote on 22 September

By Arun George

The Gold Road Resources (GOR AU) IE considers Gold Fields Ltd (GFI SJ)’s offer fair and reasonable. The offer is A$2.52 cash + value per share of GOR’s NST stake.
The key condition is GOR shareholder approval. The scheme vote should pass partly due to the benign shareholder structure.
The offer is attractive. At the last close and for a 13 October payment, the gross/annualised spread is 1.2%/8.1%.

Strategic Developments: LWAY’s Strong Q2, RTAC’s Decline, WOW Buyout, and Samsonite’s Dual Listing Plans

Lifeway Foods’ Q2 results show 10% sales growth and 18% volume increase, enhancing leverage in Danone negotiations.
Renatus Tactical Acquisition’s stock declined by 6% amid speculation on crypto treasury strategy, maintaining attractive risk-reward profile.
WideOpenWest buyout concluded at $5.2/share, offering 65% premium to recent levels, despite undervaluation concerns.

(Mostly) Asia-Pac M&A: Kangji Medical, Ashimori, Carenet, Rezil, HKBN, Toyo Cons., Shibaura Elect.