Smartkarma Daily Briefs

Total Soft Bank (045340 KS) is a Korean software company focused on digital solutions (enterprise industrial software, SaaS) for the maritime shipping and port logistics value chain.
The company had best ever results in 2Q25. It had sales of 9.7 billion won (up 140.6% YoY) and operating profit of 5.1 billion won (up 947% YoY) in 2Q25.
Using a P/E ratio of 15x on the estimated net profit of 15.5 billion won (2027E), it would suggest market cap of 233 billion won (207% higher than current levels).

AMAT Q325. Tanking On Tepid Leading Edge Outlook & China Woes

By William Keating

AMAT reported FY Q325 revenues of $7.3 billion, up 3% QoQ, up 8% YoY and ~$100 million above the midpoint of the guided range
Looking ahead, AMAT forecasted current quarter revenues of $6.7 billion at the midpoint, down 8.3% QoQ and down 4.9% YoY
The China slump was not unexpected, but the leading edge logic drop was definitely a surprise

Xiaomi (1810.HK) Q2 Earnings: Setup Features Low Volatility and Recent Underperformance

The setup for this earnings release is interesting as Xiaomi has underperformed HSI since the end of June.
Xiaomi’s Q2 earnings setup features low vols a strong beat record and interesting Q2 dynamics.
Implied vol sits near historic lows despite the approaching earnings.

Hong Kong Single Stock Options Weekly (Aug 11 – 15): Market Breadth Expands, Options Activity Grows

Broad-Based strength across sectors pushed HSI higher despite late-week weakness.
Option trading accelerated into week’s end, with Calls showing a modest uptick.
The HKD pulled back from the top end of its trading range after prior interventions.

TSMC’s Outlook After Trump’s 300% Semiconductor Tariff Bombshell

By Nico Rosti

Our model recently signaled that Taiwan Semiconductor (TSMC) (2330 TT) is overbought. Strangely, it is overbought on the TIME model but not on the PRICE model, a bearish divergence.
On Friday Trump announced that next week he will slap 300% import tariffs on semiconductors imports. TSMC has factories in the United States so in theory it’s exempt.
South Korea, Malaysia and Philippines’ semiconductor industries are going to be affected the most, leaving TSMC in a very good position BUT TSMC IS OVERBOUGHT and will pulback soon.

PC Monitor: ASUS’s Gaming & Commercial Strength Signal AI PC Cycle; Positive Read for Dell, HP

By Vincent Fernando, CFA

ASUS experienced record 2Q25 revenue driven by 30–40% YoY growth in gaming and commercial PCs, supported by a new GPU sales strength and enterprise market expansion.
AI servers held mid-teens revenue share for ASUS; margin pressure from tariffs and FX expected to ease after 3Q.
Strong gaming and commercial PC momentum could signal PC upgrade activity in response to AI PCs, offering positive read-through for Dell and HPQ’s upcoming results end-August.

Elecom Co Ltd (6750 JP): Q1 FY03/26 flash update

Sales reached JPY28.6bn, a 3.7% YoY increase, with power supplies and I/O devices showing growth.
Operating profit increased by 18.8% YoY to JPY3.0bn, driven by higher gross profit despite rising SG&A expenses.
B2C sales were JPY19.4bn (+3.2% YoY), while B2B sales amounted to JPY9.2bn (+5.0% YoY).

Europe Next to Break Out?; Bullish Outlook Intact; Remain Overweight Korea, Greece, and the U.S.

By Joe Jasper

We remain near-term bullish SPX and ACWI since 4/22/25, and our intermediate-term outlook remains bullish as well (as of our 5/14/25 Compass), with Int’l Compass reports all echoing this sentiment.
We discussed in our July 31, 2025 Int’l Compass how $128, $125-$126, and $123-$123.50 were short-term supports to watch on ACWI-US, and ACWI-US found support at $128 the next day.
Europe (EURO STOXX 50) is the last of the major countries (from a global market cap perspective) to break out; we expect it to be next

Base Co Ltd (4481 JP): 1H FY12/25 flash update

Revenue reached JPY11.0bn, a 14.0% YoY increase, achieving 47.8% of the full-year forecast, with solid orders.
Operating profit rose to JPY2.9bn, a 21.6% YoY increase, with an operating profit margin up 1.7pp to 26.5%.
Net income attributable to owners was JPY2.0bn, a 23.3% YoY increase, achieving 47.3% of the full-year forecast.

Ferrotec Corp (6890 JP): Q1 FY03/26 flash update

Q1 FY03/26 sales increased by 12.7% YoY to JPY68.9bn, while operating profit decreased by 4.9% YoY to JPY6.7bn.
Semiconductor Equipment-related segment sales rose 3.6% YoY, but segment profit declined 31.5% YoY due to lower quartz crucible sales.
Automotive-related segment sales grew 53.5% YoY to JPY9.0bn, with segment operating profit increasing 79.2% YoY to JPY1.3bn.

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Aug 16

Daily Brief South Korea: SK Innovation, Total Soft Bank, Dentium and more

By Smartkarma Daily Briefs | Daily Briefs, South Korea

In today’s briefing:

Playing Korea’s Hot Secondary Battery Sector Rotation
Korea Small Cap Gem #43: Total Soft Bank
Dentium – Cancellation of 2.44 Million Treasury Shares (22% of Outstanding Shares)

Playing Korea’s Hot Secondary Battery Sector Rotation

By Sanghyun Park

Battery-Sector rotation is heating up in Korea as active ETFs sharply boost LG Energy Solution and Samsung SDI, signaling renewed sector focus amid ESS growth and easing valuation pressures.
Watch for supply-demand dislocations during battery-sector ETF rebalances; top-heavy names may see concentrated flows, amplifying trading intensity and driving larger-than-normal price swings.
The 25% cap reversion could move LG Energy Solution down and SK Innovation up ~5pp, with flows hitting -0.2x/+0.6x DTV, potentially amplified by aggressive sector inflows.

Korea Small Cap Gem #43: Total Soft Bank

Total Soft Bank (045340 KS) is a Korean software company focused on digital solutions (enterprise industrial software, SaaS) for the maritime shipping and port logistics value chain.
The company had best ever results in 2Q25. It had sales of 9.7 billion won (up 140.6% YoY) and operating profit of 5.1 billion won (up 947% YoY) in 2Q25.
Using a P/E ratio of 15x on the estimated net profit of 15.5 billion won (2027E), it would suggest market cap of 233 billion won (207% higher than current levels).

Dentium – Cancellation of 2.44 Million Treasury Shares (22% of Outstanding Shares)

Dentium announced that it has decided to cancel all of its 2.44 million treasury shares (22% of its outstanding shares).
This is massive and should have a positive impact on Dentium’s share price.
Although the company reported a disappointing results in 2Q 2025 and its exports to China are slowing down, the company still generates healthy operating margins (18.9% in 2Q 2025).

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Aug 16

Daily Brief Credit: Lucror Analytics – Convertibles Brief and more

By Smartkarma Daily Briefs | Credit, Daily Briefs

In today’s briefing:

Lucror Analytics – Convertibles Brief

Lucror Analytics – Convertibles Brief

By Trung Nguyen

Credit markets were stable yesterday, with the iTraxx X-Over at 261 bps. European bourses rose 0.1-1.2%. In the US, both the S&P 500 and Nasdaq were flat.
In Asia this morning, the Nikkei is up 1.0%, while the Hang Seng is down 1.1%. US equity futures are slightly higher.
WTI is trading at USD 63.8/bbl, and Brent at USD 66.7/bbl. US President Donald Trump said that he sees the upcoming meeting with his Russian counterpart Vladimir Putin today as a precursor to a second and more important meeting.

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Aug 16

Daily Brief United States: Applied Materials, BioLine RX , BioStem Technologies , Bone Biologics , BrainStorm Cell Therapeutics I, Dyadic International , Protalix BioTherapeutics and more

By Smartkarma Daily Briefs | Daily Briefs, United States

In today’s briefing:

AMAT Q325. Tanking On Tepid Leading Edge Outlook & China Woes
BLRX: ASCO Poster & Abstract
BSEM: Company Meeting Challenges Head On
BBLG: Making Major Step Toward Commercialization
BCLI: Focused on Initiation of Phase 3b ENDURANCE Trial of NurOwn in ALS
DYAI: One Strain To Rule Them All
PLX: New CFO to Take the Reins

AMAT Q325. Tanking On Tepid Leading Edge Outlook & China Woes

By William Keating

AMAT reported FY Q325 revenues of $7.3 billion, up 3% QoQ, up 8% YoY and ~$100 million above the midpoint of the guided range
Looking ahead, AMAT forecasted current quarter revenues of $6.7 billion at the midpoint, down 8.3% QoQ and down 4.9% YoY
The China slump was not unexpected, but the leading edge logic drop was definitely a surprise

BLRX: ASCO Poster & Abstract

BioLineRx is a commercial stage biopharmaceutical company with a development portfolio advancing motixafortide, a platform molecule targeting indications in stem cell mobilization (SCM) & in the treatment of advanced pancreatic cancer.
The candidate is approved in the US for SCM and is undergoing studies for use in gene therapy and in pancreatic cancer.
Partner Gloria Biosciences is developing motixafortide in Asia & is expected to be conducting bridging studies in the near term for SCM & longer-term studies for other indications.

BSEM: Company Meeting Challenges Head On

BioStem Technologies is a leading innovator focused on harnessing the natural properties of perinatal tissue in the development, manufacture, and commercialization of allografts for regenerative therapies.
The company announced its 2Q2025 preliminary financial results.
The company continues to execute at a high level but faces reimbursement uncertainty.

BBLG: Making Major Step Toward Commercialization

Bone Biologics is pursuing a better and more effective way of dealing with back pain requiring surgery by developing bone regeneration in spinal fusion using the recombinant human protein known as NELL-1/DBX, or NB1.
The company continues with human trials and reported 2Q2025 financial results that showed good cash balances that should allow testing results to bolster BBLG.

BCLI: Focused on Initiation of Phase 3b ENDURANCE Trial of NurOwn in ALS

On August 14, 2025, BrainStorm Cell Therapeutics, Inc. (BCLI) announced financial results for the second quarter of 2025 and provided a business update.
The company continues to be focused on initiating the Phase 3b ENDURANCE trial of NurOwn for the treatment of amyotrophic lateral sclerosis (ALS).
Following the filing of the Citizen’s Petition in July 2025, we await a decision from the FDA regarding that petition and whether the agency will invite BrainStorm to resubmit the Biologics License Application (BLA) for NurOwn in ALS.

DYAI: One Strain To Rule Them All

Dyadic has developed C1, its proprietary fungal expression system that can produce a variety of recombinant proteins.
C1 has been commercialized in industrial applications and is in development for production of pharmaceutical grade proteins.
C1 exhibits potential to economically produce recombinant proteins, biologic vaccines, virus like particles, antibodies, Fc-fusion, enzymes, AAVs and other biopharmaceuticals.

PLX: New CFO to Take the Reins

Protalix is a clinical and commercial pharmaceutical company using its proprietary ProCellEx plant-based expression system to pro duce thera peutic proteins for global markets.
The company has two commer cialized products, Elelyso that is marketed by Fiocruz in Brazil & Pfizer in the rest of the world for Gaucher Disease and Elfabrio which was approved in May 2023.
Chiesi Rare Disease will commercialize Elfabrio globally.

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Aug 16

Daily Brief Event-Driven: Shengjing Bank (2066 HK): Another Rural Commercial Bank Delisting and more

By Smartkarma Daily Briefs | Daily Briefs, Event-Driven

In today’s briefing:

Shengjing Bank (2066 HK): Another Rural Commercial Bank Delisting
Shengjing Bank (2066 HK): Privatisation on the Cards?
Playing Korea’s Hot Secondary Battery Sector Rotation
Dentium – Cancellation of 2.44 Million Treasury Shares (22% of Outstanding Shares)

Shengjing Bank (2066 HK): Another Rural Commercial Bank Delisting

In Chinese RCBs: Two Bailouts. How Many More At Risk?, I concluded Shengjing Bank (2066 HK) was one bank I would avoid. It’s now suspended pursuant to the Takeovers code.
Shengjing Bank had one of the largest P/B and net income declines in recent years. It had borderline allowance/provision coverage. It also had the lowest net interest margin.
Shengjing Bank is PRC-incorporated, therefore any delisting proposal would involve a Merger by Absorption, incorporating a Scheme-like vote. And probably a tendering condition.

Shengjing Bank (2066 HK): Privatisation on the Cards?

By Arun George

Shengjing Bank Co Ltd H (2066 HK) entered a trading halt “pending the publication of an announcement pursuant to the Hong Kong Code on Takeovers and Mergers.”
It is likely that the SASAC of Shenyang Municipal People’s Government, the largest shareholder, is seeking to privatise Shengjing.
Precedents point to a voluntary conditional offer and delisting proposal. My estimated offer price range is HK$2.00-HK$2.80, a 75.4%-145% premium to the last close.

Playing Korea’s Hot Secondary Battery Sector Rotation

By Sanghyun Park

Battery-Sector rotation is heating up in Korea as active ETFs sharply boost LG Energy Solution and Samsung SDI, signaling renewed sector focus amid ESS growth and easing valuation pressures.
Watch for supply-demand dislocations during battery-sector ETF rebalances; top-heavy names may see concentrated flows, amplifying trading intensity and driving larger-than-normal price swings.
The 25% cap reversion could move LG Energy Solution down and SK Innovation up ~5pp, with flows hitting -0.2x/+0.6x DTV, potentially amplified by aggressive sector inflows.

Dentium – Cancellation of 2.44 Million Treasury Shares (22% of Outstanding Shares)

Dentium announced that it has decided to cancel all of its 2.44 million treasury shares (22% of its outstanding shares).
This is massive and should have a positive impact on Dentium’s share price.
Although the company reported a disappointing results in 2Q 2025 and its exports to China are slowing down, the company still generates healthy operating margins (18.9% in 2Q 2025).

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Aug 16

Daily Brief Equity Bottom-Up: What’s Up (& Up) With Shandong Hi-Speed 412 HK)? and more

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

In today’s briefing:

What’s Up (& Up) With Shandong Hi-Speed 412 HK)?
Korea Small Cap Gem #43: Total Soft Bank
Fast Fitness Japan Inc (7092 JP): Q1 FY03/26 flash update
AMAT Q325. Tanking On Tepid Leading Edge Outlook & China Woes
What’s New(s) in Amsterdam – 15 August (Aalberts / GVT | Triodos Bank)
OneSource Specialty Pharma: Building a Global CDMO Champion from India
Elecom Co Ltd (6750 JP): Q1 FY03/26 flash update
PC Monitor: ASUS’s Gaming & Commercial Strength Signal AI PC Cycle; Positive Read for Dell, HP
BLRX: ASCO Poster & Abstract
BCLI: Focused on Initiation of Phase 3b ENDURANCE Trial of NurOwn in ALS

What’s Up (& Up) With Shandong Hi-Speed 412 HK)?

Back on the 18th Feb 2025, Shandong Hi-Speed (412 HK) (SHS) closed its unconditional Offer for Shandong Hi-Speed New Energy (1250 HK). Shortly thereafter, SHS’ share price took off.
SHS is now up 190% in the past six months. And ~1800% since Covid.
What gives? It’s not index related. And forward earnings do not justify the move. This looks like a bubble. Short interest is on the move.

Korea Small Cap Gem #43: Total Soft Bank

Total Soft Bank (045340 KS) is a Korean software company focused on digital solutions (enterprise industrial software, SaaS) for the maritime shipping and port logistics value chain.
The company had best ever results in 2Q25. It had sales of 9.7 billion won (up 140.6% YoY) and operating profit of 5.1 billion won (up 947% YoY) in 2Q25.
Using a P/E ratio of 15x on the estimated net profit of 15.5 billion won (2027E), it would suggest market cap of 233 billion won (207% higher than current levels).

Fast Fitness Japan Inc (7092 JP): Q1 FY03/26 flash update

Revenue reached JPY4.9bn (+15.9% YoY), with JPY2.9bn from directly operated clubs and JPY1.8bn from franchise revenue.
Operating profit increased 40.8% YoY to JPY877mn, driven by higher revenue and offsetting increased SG&A expenses.
Gross profit was JPY2.2bn (+18.9% YoY) with a GPM of 44.8%, and SG&A expenses totaled JPY1.3bn (+7.7% YoY).

AMAT Q325. Tanking On Tepid Leading Edge Outlook & China Woes

By William Keating

AMAT reported FY Q325 revenues of $7.3 billion, up 3% QoQ, up 8% YoY and ~$100 million above the midpoint of the guided range
Looking ahead, AMAT forecasted current quarter revenues of $6.7 billion at the midpoint, down 8.3% QoQ and down 4.9% YoY
The China slump was not unexpected, but the leading edge logic drop was definitely a surprise

What’s New(s) in Amsterdam – 15 August (Aalberts / GVT | Triodos Bank)

By The IDEA!

In this edition: • Aalberts | Grand Venture Technology records modest EBITDA growth in relation to revenue growth • Triodos Bank | making progress in managing its risks; a lot more work ahead though

OneSource Specialty Pharma: Building a Global CDMO Champion from India

By Sudarshan Bhandari

Onesource Specialty Pharma (ONESOURC IN) reported a solid Q1 FY26, with a 12% YoY revenue increase, accelerated capacity expansion, and momentum toward global growth through potential acquisitions.
The proposed acquisition of sterile injectable and carbapenem facilities, coupled with the company’s existing biologics platform, positions OneSource to become a formidable, multi-modality CDMO.
This quarter marks a strategic inflection point for OneSource, signaling a confident transition from a focused CDMO to a globally competitive specialty pharma player with an eye on high-value segments.

Elecom Co Ltd (6750 JP): Q1 FY03/26 flash update

Sales reached JPY28.6bn, a 3.7% YoY increase, with power supplies and I/O devices showing growth.
Operating profit increased by 18.8% YoY to JPY3.0bn, driven by higher gross profit despite rising SG&A expenses.
B2C sales were JPY19.4bn (+3.2% YoY), while B2B sales amounted to JPY9.2bn (+5.0% YoY).

PC Monitor: ASUS’s Gaming & Commercial Strength Signal AI PC Cycle; Positive Read for Dell, HP

By Vincent Fernando, CFA

ASUS experienced record 2Q25 revenue driven by 30–40% YoY growth in gaming and commercial PCs, supported by a new GPU sales strength and enterprise market expansion.
AI servers held mid-teens revenue share for ASUS; margin pressure from tariffs and FX expected to ease after 3Q.
Strong gaming and commercial PC momentum could signal PC upgrade activity in response to AI PCs, offering positive read-through for Dell and HPQ’s upcoming results end-August.

BLRX: ASCO Poster & Abstract

BioLineRx is a commercial stage biopharmaceutical company with a development portfolio advancing motixafortide, a platform molecule targeting indications in stem cell mobilization (SCM) & in the treatment of advanced pancreatic cancer.
The candidate is approved in the US for SCM and is undergoing studies for use in gene therapy and in pancreatic cancer.
Partner Gloria Biosciences is developing motixafortide in Asia & is expected to be conducting bridging studies in the near term for SCM & longer-term studies for other indications.

BCLI: Focused on Initiation of Phase 3b ENDURANCE Trial of NurOwn in ALS

On August 14, 2025, BrainStorm Cell Therapeutics, Inc. (BCLI) announced financial results for the second quarter of 2025 and provided a business update.
The company continues to be focused on initiating the Phase 3b ENDURANCE trial of NurOwn for the treatment of amyotrophic lateral sclerosis (ALS).
Following the filing of the Citizen’s Petition in July 2025, we await a decision from the FDA regarding that petition and whether the agency will invite BrainStorm to resubmit the Biologics License Application (BLA) for NurOwn in ALS.

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Aug 16

Daily Brief India: Onesource Specialty Pharma, Aster DM Healthcare Ltd and more

By Smartkarma Daily Briefs | Daily Briefs, India

In today’s briefing:

OneSource Specialty Pharma: Building a Global CDMO Champion from India
2025 High Conviction Update: Aster DM (ASTERDM IN)- Starts FY26 On High Note; Announces New Hospital

OneSource Specialty Pharma: Building a Global CDMO Champion from India

By Sudarshan Bhandari

Onesource Specialty Pharma (ONESOURC IN) reported a solid Q1 FY26, with a 12% YoY revenue increase, accelerated capacity expansion, and momentum toward global growth through potential acquisitions.
The proposed acquisition of sterile injectable and carbapenem facilities, coupled with the company’s existing biologics platform, positions OneSource to become a formidable, multi-modality CDMO.
This quarter marks a strategic inflection point for OneSource, signaling a confident transition from a focused CDMO to a globally competitive specialty pharma player with an eye on high-value segments.

2025 High Conviction Update: Aster DM (ASTERDM IN)- Starts FY26 On High Note; Announces New Hospital

By Tina Banerjee

Aster DM Healthcare Ltd (ASTERDM IN) reported 8% revenue growth in Q1FY26, driven by a 14% rise in ARPOB and 4% reduction in ALOS. EBITDA margin expanded 230bps to 20.0%.
Kerala revenue grew 5% as compared with 4% decline in Q4FY25, driven by 6% QoQ increase in-patient volumes and 200 bps QoQ increase in occupancy, reflecting early signs of recovery.
Q1FY26 results ensure that the momentum is back. With strong base business, proposed merger with QCIL, and expansion plan, Aster DM is well-positioned for 20%+ revenue growth through FY28.

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Aug 16

Daily Brief Macro: HONG KONG ALPHA PORTFOLIO (July 2025) and more

By Smartkarma Daily Briefs | Daily Briefs, Macro

In today’s briefing:

HONG KONG ALPHA PORTFOLIO (July 2025)
CX Daily: Chinese Veteran Investment Banker Taken Away by Graft-Busters
HEW: Wrong Policy Turnings

HONG KONG ALPHA PORTFOLIO (July 2025)

By David Mudd

The Hong Kong Alpha portfolio outperformed its benchmark and all Hong Kong indexes in July. The portfolio achieved these results while increasing its Sharpe ratio and reducing beta and volatility.
The shift to the healthcare and materials sectors since Liberation Day in April has aided the portfolio’s performance. The consumer staples sector lost momentum, and we exited some positions there.
The HSI now trades above its long-term resistance levels for the first time since 2022. This signals a good time to rotate back into market leaders in tech.

CX Daily: Chinese Veteran Investment Banker Taken Away by Graft-Busters

By Caixin Global

Chinese veteran investment banker taken away by graft-busters
Ding Wei, a former chairman of investment banking giant China International Capital Corp. Ltd.’s (CICC) private equity subsidiary, has been taken away by Chinese graft-busters, Caixin has learned from sources with knowledge of this matter.
An Yuan, an executive at the subsidiary, CICC Capital Operation Co. Ltd., has also been unreachable recently, the sources said.

HEW: Wrong Policy Turnings

By Phil Rush

As soon as a data point calms nerves around a theme, a hawkish challenge seems to appear. This week, that was US CPI into PPI and UK unemployment into GDP.
A bias to ease, triggered by a one-touch round of bad news, has consequences when not sustained. The BoE’s early start to its easing cycle has proved to be a policy mistake.
Next week is a prime opportunity for Chair Powell to calm dovish excitement about Fed easing. UK inflation seems set to rise by another tenth, while the EA rate sticks at 2%.

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Aug 16

Daily Brief Japan: Fast Fitness Japan Inc, Elecom Co Ltd, Dai Ichi Cutter Kogyo Kk, Ferrotec Corp, KEIWA , MarketEnterprise Co Ltd, Mrt Inc/Jp, Piala, Raqualia Pharma, Rezil and more

By Smartkarma Daily Briefs | Daily Briefs, Japan

In today’s briefing:

Fast Fitness Japan Inc (7092 JP): Q1 FY03/26 flash update
Elecom Co Ltd (6750 JP): Q1 FY03/26 flash update
Dai Ichi Cutter Kogyo Kk (1716 JP): Full-year FY06/25 flash update
Ferrotec Corp (6890 JP): Q1 FY03/26 flash update
KEIWA (4251 JP): 1H FY12/25 flash update
MarketEnterprise Co Ltd (3135 JP): Full-year FY06/25 flash update
Mrt Inc/Jp (6034 JP): 1H FY12/25 flash update
Piala (7044 JP): 1H FY12/25 flash update
Raqualia Pharma (4579 JP): 1H FY12/25 flash update
Rezil (176A JP): Full-year FY06/25 flash update

Fast Fitness Japan Inc (7092 JP): Q1 FY03/26 flash update

Revenue reached JPY4.9bn (+15.9% YoY), with JPY2.9bn from directly operated clubs and JPY1.8bn from franchise revenue.
Operating profit increased 40.8% YoY to JPY877mn, driven by higher revenue and offsetting increased SG&A expenses.
Gross profit was JPY2.2bn (+18.9% YoY) with a GPM of 44.8%, and SG&A expenses totaled JPY1.3bn (+7.7% YoY).

Elecom Co Ltd (6750 JP): Q1 FY03/26 flash update

Sales reached JPY28.6bn, a 3.7% YoY increase, with power supplies and I/O devices showing growth.
Operating profit increased by 18.8% YoY to JPY3.0bn, driven by higher gross profit despite rising SG&A expenses.
B2C sales were JPY19.4bn (+3.2% YoY), while B2B sales amounted to JPY9.2bn (+5.0% YoY).

Dai Ichi Cutter Kogyo Kk (1716 JP): Full-year FY06/25 flash update

Full-year FY06/25 revenue declined 3.3% YoY due to decreased construction volume and exclusion of a subsidiary.
FY06/26 forecast: Revenue JPY20.5bn (+1.3% YoY), Operating profit JPY1.8bn (+9.3% YoY), Net income JPY1.3bn (-2.8% YoY).
Dai-Ichi Cutter’s profit projections are conservative; profitability depends on project difficulty, scale, and demand response investment.

Ferrotec Corp (6890 JP): Q1 FY03/26 flash update

Q1 FY03/26 sales increased by 12.7% YoY to JPY68.9bn, while operating profit decreased by 4.9% YoY to JPY6.7bn.
Semiconductor Equipment-related segment sales rose 3.6% YoY, but segment profit declined 31.5% YoY due to lower quartz crucible sales.
Automotive-related segment sales grew 53.5% YoY to JPY9.0bn, with segment operating profit increasing 79.2% YoY to JPY1.3bn.

KEIWA (4251 JP): 1H FY12/25 flash update

Revenue increased by 2.8% YoY to JPY9.9bn, driven by higher sales of optical products for laptops and tablets.
Operating profit rose 8.9% YoY to JPY2.2bn, aided by improved profitability and segment repositioning efforts.
Recurring profit decreased 23.6% YoY to JPY2.0bn, while net income attributable to owners dropped 56.0% YoY to JPY694mn.

MarketEnterprise Co Ltd (3135 JP): Full-year FY06/25 flash update

Revenue reached JPY24.8bn (+30.3% YoY), with significant growth in Second-hand Online and Mobile & Telecommunications segments.
Operating profit increased to JPY626mn (+109.4% YoY), driven by a 0.9pp rise in the operating profit margin.
The company forecasts JPY30.0bn revenue (+21.1% YoY) and JPY1.1bn operating profit (+75.8% YoY) for FY06/25.

Mrt Inc/Jp (6034 JP): 1H FY12/25 flash update

In Q1 FY12/23, revenue was JPY2.3bn (+4.8% YoY), operating profit JPY132mn (+37.6% YoY), pre-tax profit JPY128mn (+47.0% YoY).
1H revenue reached 51.7% of FY12/25 forecast, with operating profit at 88.0% and recurring profit at 85.0%.
Revenue from Medical Personnel Placement Services was JPY1.7bn (+2.2% YoY), Other Services revenue totaled JPY646mn (+12.3% YoY).

Piala (7044 JP): 1H FY12/25 flash update

Revenue reached JPY8.3bn, a 40.6% YoY increase, with 50% progress against the revised FY12/25 forecast.
Operating profit was JPY39mn, surpassing the initial forecast, with recurring profit and net income revised upward.
FY12/25 revenue forecast increased to JPY16.7bn; recurring profit and net income forecasts revised upward by 30.1%.

Raqualia Pharma (4579 JP): 1H FY12/25 flash update

Operating revenue increased to JPY1.5bn (+8.9% YoY), with a net loss of JPY355mn and R&D expenses at JPY782mn.
Royalty income from four launched products, including tegoprazan, totaled JPY1.1bn (+7.5% YoY), contributing to operating revenue.
HK inno.N’s tegoprazan sales in South Korea reached KRW104.7bn (+14.3% YoY), with global expansion in 54 countries.

Rezil (176A JP): Full-year FY06/25 flash update

FY06/23 revenue was JPY46.6bn (+20.5% YoY); EBITDA was JPY4.4bn (+17.6% YoY); operating profit was JPY3.2bn (+15.1% YoY).
FY06/25 revenue forecast is JPY57.3bn (+22.9% YoY); operating profit forecast is JPY3.8bn (+18.8% YoY).
Rezil Inc. supports Bain Capital’s tender offer; shares are scheduled for delisting; dividend forecast undecided.

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Aug 16

Daily Brief China: Shandong Hi-Speed Holdings Gro, Shengjing Bank Co Ltd H, Jiangxi Zhengbang Tech A, Xiaomi, Hang Seng Index, Lenovo and more

By Smartkarma Daily Briefs | China, Daily Briefs

In today’s briefing:

What’s Up (& Up) With Shandong Hi-Speed 412 HK)?
Shengjing Bank (2066 HK): Another Rural Commercial Bank Delisting
Shengjing Bank (2066 HK): Privatisation on the Cards?
Quiddity Leaderboard CSI 1000 Dec25: US$2.8bn One-Way; Strong Momentum for ADDs V DELs
Xiaomi (1810.HK) Q2 Earnings: Setup Features Low Volatility and Recent Underperformance
Hong Kong Single Stock Options Weekly (Aug 11 – 15): Market Breadth Expands, Options Activity Grows
Lucror Analytics – Convertibles Brief

What’s Up (& Up) With Shandong Hi-Speed 412 HK)?

Back on the 18th Feb 2025, Shandong Hi-Speed (412 HK) (SHS) closed its unconditional Offer for Shandong Hi-Speed New Energy (1250 HK). Shortly thereafter, SHS’ share price took off.
SHS is now up 190% in the past six months. And ~1800% since Covid.
What gives? It’s not index related. And forward earnings do not justify the move. This looks like a bubble. Short interest is on the move.

Shengjing Bank (2066 HK): Another Rural Commercial Bank Delisting

In Chinese RCBs: Two Bailouts. How Many More At Risk?, I concluded Shengjing Bank (2066 HK) was one bank I would avoid. It’s now suspended pursuant to the Takeovers code.
Shengjing Bank had one of the largest P/B and net income declines in recent years. It had borderline allowance/provision coverage. It also had the lowest net interest margin.
Shengjing Bank is PRC-incorporated, therefore any delisting proposal would involve a Merger by Absorption, incorporating a Scheme-like vote. And probably a tendering condition.

Shengjing Bank (2066 HK): Privatisation on the Cards?

By Arun George

Shengjing Bank Co Ltd H (2066 HK) entered a trading halt “pending the publication of an announcement pursuant to the Hong Kong Code on Takeovers and Mergers.”
It is likely that the SASAC of Shenyang Municipal People’s Government, the largest shareholder, is seeking to privatise Shengjing.
Precedents point to a voluntary conditional offer and delisting proposal. My estimated offer price range is HK$2.00-HK$2.80, a 75.4%-145% premium to the last close.

Quiddity Leaderboard CSI 1000 Dec25: US$2.8bn One-Way; Strong Momentum for ADDs V DELs

By Janaghan Jeyakumar, CFA

CSI 1000 represents the next 1000 largest stocks by market cap and liquidity from the Shanghai and Shenzhen Exchanges after CSI 800.
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.
Currently, we see 100 ADDs/DELs for the CSI 1000 index.

Xiaomi (1810.HK) Q2 Earnings: Setup Features Low Volatility and Recent Underperformance

The setup for this earnings release is interesting as Xiaomi has underperformed HSI since the end of June.
Xiaomi’s Q2 earnings setup features low vols a strong beat record and interesting Q2 dynamics.
Implied vol sits near historic lows despite the approaching earnings.

Hong Kong Single Stock Options Weekly (Aug 11 – 15): Market Breadth Expands, Options Activity Grows