Smartkarma Daily Briefs

• Spindex is an illiquid but well managed company listed in Singapore
• It trades at less than 2X EV/EBDITA multiple  while its competitor Innovalues got privatised at 9 X EV/EBDITA
• With 60% of market cap in cash, ex-cash current assets are more than total liabilities, offering limited downside

• China announced game approval for the April batch. The number of games approved remained at a higher level than 2023.
• The pace of China game approval appears to have accelerated to the same level as pre-tightening.
• While Netease received one game approval for its domestic game, Tencent received an approval for an imported game.

• Lagged results: Q1 EPS surged 171% QoQ on aluminum price strength, offsetting alumina softness; EBITDA rose to $855M despite weaker volumes.
• Tariff overhang: $105M quarterly drag from Section 232 now embedded; net annual impact ~$100M—yet Midwest premium offsets buffer U.S. exposure.
• Trading near book at 1.04x P/B—cycle pessimism and policy risks may present contrarian upside.

• Wanda sells hotel business to Tencent-backed firm for $347M, indicating a strategic shift in their business operations.
• Keppel raises $1.5B for data centre, education funds, and urban renewal, showing a focus on diverse investments.
• Cushman & Wakefield appoints Matthew Bouw as APAC CEO for EMEA, highlighting leadership changes in the real estate industry.

• Shilchar’s focus on Inverter Duty Transformers positions it to capitalize on the booming renewable energy sector, especially solar, supporting long-term growth and profitability.
• Shilchar’s recent capacity expansion, with a potential to scale further, ensures it can meet increasing domestic and export demand for transformers, positioning it for sustained market leadership.
• Shilchar’s debt-free balance sheet and strong cash reserves enable strategic reinvestment in capacity and technology, ensuring continued growth in the competitive transformer industry.

• Danish Power (DANISH IN) stands to benefit from India’s aggressive shift towards renewable energy, particularly solar, supported by strong product offerings like Inverter Duty Transformers, which drive substantial revenue growth.
• DPL’s strategic shift to higher-margin products, improved operating leverage, and expanded capacity should fuel margin expansion and support sustained profitability, positioning it well for continued growth and competitiveness.
• With a robust order book exceeding INR 400 crore and an active pipeline, DPL has solid revenue visibility supported by strong demand in domestic and international markets.

• Shakey’s Pizza (PIZZA PM) delivered FY24 revenue/profit growth of 13%/11% YoY.  This was due to a turnaround of 9MFY24 revenue/profits from-10%/10% YoY, with Q4FY24 high season revenue/profits growing 19%/57% YoY.
• The company is experiencing a sequential improvement in its SSSG, which is continuing into Q1 FY25. It has guided double-digit growth in revenues and profits in FY25.
• Trading at 11.5x/10.2x PE for FY24/25e, with low expectations, we believe there could be a good rally post the results.

• We interacted with Microfinance BU (Business Unit) managers of Bandhan Bank Ltd (BANDHAN IN) across major states in India. 
• Our objective was to understand the current collection trends and asset quality issues especially in the Microfinance Portfolio. 
• Based on our interactions, we would like to put a case for declining provisions going ahead. 

• Sysmex Corp (6869 JP) earns 26% of total revenue from Americas. During 9MFY25, revenue from Americas increased 13% YoY to ¥96B.
• The U.S. President Trump has proposed 10% baseline import tariffs on medical devices. Although Trump announced a 90-day pause on most reciprocal tariffs, the respite seems to be temporary.
• Sysmex is exposed to tariff for instruments only as reagents are produced locally. Instrument sales in the Americas account for 5–6% of revenue, so tariff impact would be negligible.

Vietnam Holding (VNH) delivered solid net asset value (NAV) per share growth of 16.5% in 2024, ahead of the Vietnam All-Share Index (VNAS), which rose 10.2%. The fund has outperformed the market over the long term, highlighting the manager\’s stock selection expertise, which is supported by the fund’s relatively small size, allowing for great flexibility and nimbleness. After introducing the tender offer mechanism, the discount to NAV had largely closed by late 2024. In the first quarter of 2025, the political turmoil caused by US tariff announcements weighed on valuations across emerging markets, especially exporters to the US like Vietnam (the VNAS was down by 17% in a week). We note that Vietnam has undertaken a series of steps aimed at avoiding the worst-case scenario, and we believe VNH’s agile investment approach may allow it to capture opportunities as they arise. At the same time, VNH’s shares are currently available at a 7% discount, despite the already depressed NAV.