Smartkarma Daily Briefs

In a move that could redefine the future of web browsing and digital advertising, OpenAI is reportedly preparing to launch a new AI-powered browser that directly challenges Google Chrome—Alphabet’s flagship browser and a crucial pipeline for search traffic and user data.
While the browser is still under wraps, reports indicate that it will feature a ChatGPT-like interface where users complete tasks and search queries within the app, bypassing traditional website clicks altogether.
This launch follows similar innovations by AI search players like Perplexity, and represents OpenAI’s broader ambition to embed its AI across personal and professional user touchpoints.

PTC + Autodesk? The $23 Billion Merger That Could Redefine Engineering Software

The engineering software sector may be heading toward another major shake-up as Autodesk weighs a potential acquisition of Boston-based PTC Inc., according to multiple sources familiar with the discussions.
With PTC’s market value hovering around $23 billion, a deal of this magnitude could place Autodesk in a stronger competitive stance against industrial software giants like Siemens and Dassault Systèmes.
While Autodesk has yet to confirm the move publicly, it is reportedly evaluating a cash-and-stock deal, working with advisers to assess the strategic benefits and financial implications.

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Jul 13

Daily Brief Industrials: Johns Lyng, Marumae Co Ltd and more

By Smartkarma Daily Briefs | Daily Briefs, Industrials

In today’s briefing:

(Mostly) Asia-Pac M&A: Johns Lyng, New World Resources, Oneconnect, Great Eastern, VIOL
Marumae Co Ltd (6264 JP): Q3 FY08/25 flash update

(Mostly) Asia-Pac M&A: Johns Lyng, New World Resources, Oneconnect, Great Eastern, VIOL

I tally 41 – mostly firm, mostly Asia-Pac – arb transactions currently being discussed and analysed on Smartkarma.
One new deal were discussed on Smartkarma this week: PEP’s Scheme Offer for Johns Lyng (JLG AU).
Key updates/news took place on New World Resources (NWC AU), Oneconnect Financial Technology (6638 HK), Great Eastern Holdings (GE SP), and VIOL (335890 KS).

Marumae Co Ltd (6264 JP): Q3 FY08/25 flash update

By Shared Research

The company reported sales of JPY7.3bn, operating profit of JPY1.5bn, and net income of JPY940mn, with no YoY data.
Transitioned to consolidated financial reporting in Q3 FY08/25, adding a Functional Materials segment, primarily operated by KMAC.
Announced consolidated earnings forecast for FY08/25: sales JPY11.3bn, operating profit JPY1.9bn, and net income JPY1.3bn.

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Jul 13

Most Read: Taishin Financial Holding, IFBH, FWD Group Holdings, BayCurrent Consulting , Horizon Robotics, Mazagon Dock Shipbuilders , Pop Mart International Group L, Lg Innotek, Johns Lyng and more

By Smartkarma Daily Briefs | Daily Briefs, Most Read

In today’s briefing:

Taishin (2887 TT)/Shin Kong (2888 TT) Merger: Index Flows in July
HSCI Index Rebalance Preview and Stock Connect (Sep 2025): Plenty of Recent IPOs Could Be Added
FWD Group (1828 HK): Offering Details & Index Entry Timeline
Nikkei 225 Index Rebalance Preview (Sep 2025): Potential Adds, Deletes, PAF, Capping & Other Changes
HSTECH Index Rebalance Preview: Universe Expansion Could Lead to One Change
AMFI Stock Reclassification Preview (Jun 2025): Active Flows Lead to Passive Flows
HSCEI Index Rebalance Preview: Pop Mart (9992 HK) Could Replace J&T Global (1519 HK)
KOSPI Size Indices: Overlaps Between Active & Passive Flows
Johns Lyng (JLG AU): PEP’s A$4/Share Offer Looks Light
HEW: Kicked Can Lands Steady

Taishin (2887 TT)/Shin Kong (2888 TT) Merger: Index Flows in July

Taishin Financial Holding (2887 TT) and Shin Kong Financial Holding (2888 TT) announced a Merger of Equals in August 2024 and completion is expected on 24 July.
Taishin Financial Holding (2887 TT) has underperformed its peers over the last 18 months while Shin Kong Financial Holding (2888 TT) has underperformed its peers following the merger announcement.
There will be passive flows in the merged entity following the completion of the merger and could help reverse some of Taishin Financial Holding (2887 TT)‘s underperformance.

HSCI Index Rebalance Preview and Stock Connect (Sep 2025): Plenty of Recent IPOs Could Be Added

We see 28 potential and close adds and 34 potential and close deletes for the Hang Seng Composite Index in September. Some of the stocks are close on market cap/liquidity.
A lot of the potential adds are very recently listed stocks that have a limited trading history. The low free float could lead to price spikes in the stocks.
There are stocks that have a very high percentage of holdings via Stock Connect and there could be some unwinding prior to the stocks becoming Sell-only.

FWD Group (1828 HK): Offering Details & Index Entry Timeline

FWD Group Holdings (FWD HK) is looking to raise up to HK$3.99bn (US$508m) in its IPO, valuing the company at HK$48.82bn (US$6.22bn).
Cornerstone investors will take up more than half the base offering and that will delay index inclusion to well into 2026.
FWD Group Holdings (FWD HK) could be added to the HSCI Index and Southbound Stock Connect in December. That could bring some buying into the stock from mainland investors.

Nikkei 225 Index Rebalance Preview (Sep 2025): Potential Adds, Deletes, PAF, Capping & Other Changes

The review period for the Nikkei 225 (NKY INDEX) September rebalance ends in 4 weeks. There could be one outright change and one or two others driven by sector balance.
There will be passive buying in BayCurrent Consulting as the PAF moves from 0.5 to 1. Fast Retailing (9983 JP)‘s index weight is below the 10% cap for now.
ROHM Co Ltd (6963 JP) replaces NTT Data Corp (9613 JP) later this week and there will be a lot of focus on those names.

HSTECH Index Rebalance Preview: Universe Expansion Could Lead to One Change

The review period for the September rebalance of the Hang Seng TECH Index ended on 30 June, the changes will be announced on 22 August and implemented on 5 September.
No constituent changes will result in a one-way turnover of 4.1% and that will mean a round-trip trade of HK$15.2bn (US$1.94bn).
An expansion of the index universe could lead to one constituent change and that increases the one-way turnover to 6.2% and the round-trip trade to HK$23.1bn (US$2.94bn).

AMFI Stock Reclassification Preview (Jun 2025): Active Flows Lead to Passive Flows

We forecast 10 stocks moving from MidCap to LargeCap, 11 stocks moving from LargeCap to MidCap, 10 stocks from SmallCap to MidCap, and 13 stocks from MidCap to SmallCap.
From the new listings, 1 stock is expected to be added to Large cap, 2 stocks are expected to be added to Mid Cap, and multiple stocks to Small Cap.
There are multiple stocks among the AMFI changes that will be changes for global indices, NIFTY Index, NSE Nifty Next 50 Index and/or Nifty Midcap 150 Index in September.

HSCEI Index Rebalance Preview: Pop Mart (9992 HK) Could Replace J&T Global (1519 HK)

The review period for the September rebalance of the HSCEI INDEX ended on 30 June, the results will be announced on 22 August and will be implemented on 5 September.
Pop Mart International Group L (9992 HK) could be added to the index while J&T Global Express (1519 HK) could be deleted from the index.
There is a possibility of Pop Mart International Group L (9992 HK) being added to the Hang Seng Index (HSI INDEX) as well.

KOSPI Size Indices: Overlaps Between Active & Passive Flows

The review period for the September rebalance of the KOSPI Size Indices commenced on 1 June and will end on 31 August.
Nearing halfway in the review period, we forecast 53 migrating stocks. Among new listings, 1 stock could be added to LargeCap, 3 to MidCap and 1 to SmallCap.
Two potential downward migrations could be deleted from a global index in August. The new listing that is a potential LargeCap add could be added to a globalindex in September.

Johns Lyng (JLG AU): PEP’s A$4/Share Offer Looks Light

A month ago, Integrated building services provider Johns Lyng (JLG AU) fielded a non-binding Offer, by way of a Scheme, from Aussie fund manager Pacific Equity Partners (PEP).
JLG and PEP have now entered into a SID at A$4/share, a 77% premium to undisturbed. CEO Scott Didier, JLG’s largest shareholder with 17.64%, is supportive.
A shareholder vote is expected to take place in October, with the transaction potentially wrapping up in November. This may need more gruel.

HEW: Kicked Can Lands Steady

By Phil Rush

Trump kicked the tariff can a few weeks to 1 August, leaving other policymakers and markets in a wait-and-see mode. Pricing was little changed amid little news elsewhere.
We thematically explored the market implications of resilience rolling cuts later, how healthy the US labour market data is, and dug into the UK’s political problems.
Next week’s UK labour market and inflation data are critical ahead of an August BoE decision we believe remains finely balanced. US and EA inflation are other highlights.

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Jul 13

Daily Brief Health Care: Anthem Biosciences, Dexcom Inc, Meta Biomed, Evotec AG, Zimvie and more

By Smartkarma Daily Briefs | Daily Briefs, Healthcare

In today’s briefing:

IPO Review – Anthem Biosciences – Pioneering Pharma CRDMO with Advanced Capabilities – Fairly Priced
DexCom Eyes Explosive Growth with Game-Changing Type 2 Strategy—Is This Its Biggest Pivot Yet?
Korea Small Cap Gem #40: Meta Biomed (#1 Player Globally in Root Canal Filling Materials)
Evotec SE: These Are The 4 Biggest Factors Making It An Attractive Acquisition Target!
ZimVie Inc. Up For Sale But Can It Get Acquired?

IPO Review – Anthem Biosciences – Pioneering Pharma CRDMO with Advanced Capabilities – Fairly Priced

By Himanshu Dugar

Anthem is a CRDMO platform with 5 main modalities (RNAi, ADC, peptides, lipids and oligonucleotides) and 4 manufacturing capabilities (custom synthesis, flow chemistry, fermentation and biotransformation).
With its aggressive focus on emerging biotech; industry tailwinds, upcoming capacities in fermentation and CSM; they are positioned for 20+% revenue growth and industry leading operating margins of 35+%.
We estimate FY26 EPS of INR 9-11, implying IPO multiple of 50-62x earnings. Truenorth and Portsmouth holding 3.9% and 2.7% post-IPO creates a technical overhang.

DexCom Eyes Explosive Growth with Game-Changing Type 2 Strategy—Is This Its Biggest Pivot Yet?

DexCom’s latest earnings and strategy pivot have reignited investor attention as the company recalibrates its focus on the vast, underpenetrated Type 2 diabetes market.
After suffering a 41% stock drop in July 2024 due to poor execution in its transition away from its traditional Type 1 diabetes stronghold, the company now appears to be correcting course—not by retreating, but by accelerating into the same direction with more refined tactics.
The first quarter of 2025 showed encouraging signs, including record-breaking new patient additions, expanded insurance coverage from all three major PBMs for non-insulin-dependent patients, and the introduction of Stelo, DexCom’s first over-the-counter CGM.

Korea Small Cap Gem #40: Meta Biomed (#1 Player Globally in Root Canal Filling Materials)

By Douglas Kim

Meta Biomed is the number one player in the world for root canal filling materials. It also produces other dental products, including bio-absorbable sutures and cosmetic medical products.
Six major reasons why we like Meta Biomed include number one player for root canal filling materials, solid sales growth, strong export growth, improving ROE and operating margins, and valuations.
We are introducing a new section (Major Factors of Business Operations and Valuations) for all our Korea Small Cap Gem Series from now on (see below).

Evotec SE: These Are The 4 Biggest Factors Making It An Attractive Acquisition Target!

Evotec SE has provided a comprehensive overview of their financial and operational status for Q1 2024, reflecting mixed results influenced by the current market environment.
The report reveals a slight revenue decrease of 2% year-over-year, totaling EUR 208.8 million, attributed to a 23% decline in the Shared R&D business, overshadowed by notable advances in the Just – Evotec Biologics segment, which reported a 400% revenue increase compared to Q1 2023.
This growth primarily stems from collaborations like those with Sandoz and Department of Defense.

ZimVie Inc. Up For Sale But Can It Get Acquired?

ZimVie has recently shifted its strategic focus and has shown committed actions towards becoming a streamlined organization dedicated to the dental industry.
With the sales of its spine business yielding $375 million, including $350 million in cash and a $60 million promissary note, ZimVie has embarked on a course of debt reduction and refocusing.
It’s notable that ZimVie used part of the sales proceeds to pay down $275 million of its existing liabilities.

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Jul 13

Daily Brief Consumer: IFBH, Meituan, TSE Tokyo Price Index TOPIX and more

By Smartkarma Daily Briefs | Consumer, Daily Briefs

In today’s briefing:

China Healthcare Weekly(Jul.13)- AstraZeneca-Summit $15bn Deal, IFBH Shares Decline Is Far from Over
Last Week In Event SPACE: Meituan/Prosus, China Medical System, Japanese Banks, New World Dev.
Does Introducing Incentive into Remuneration of Independent Directors Compromise Their Independence?

China Healthcare Weekly(Jul.13)- AstraZeneca-Summit $15bn Deal, IFBH Shares Decline Is Far from Over

By Xinyao (Criss) Wang

The policy turning point of high-value consumables/medical device industry is not far away. When a mature pricing mechanism is formed, it’s the time when industry expectations reverse and stabilize.
There’s rumor that AstraZeneca is in discussions for a US$15 billion partnership focused on ivonescimab. Although we understand that investors have been anticipating a big deal, we remain cautious.
After the outstanding IPO debut, IFBH’s share price continued to fall. The capital frenzy has led to the valuation to deviate seriously from the fundamentals. The outlook is not optimistic.

Last Week In Event SPACE: Meituan/Prosus, China Medical System, Japanese Banks, New World Dev.

The benefits of China Medical System (867 HK) China Medical System (867 HK)’s secondary listing on the SGX are more apparent than real.
Should Meituan (3690 HK) continue its Brazil market launch, Prosus NV (PRX NA) will have little reason to continue to hold on to its Meituan stake.
Look for value to be realised for Japanese banks with low PBRs and PERs, AND high cross-holdings as a percentage of market cap or book value through better capital allocation.

Does Introducing Incentive into Remuneration of Independent Directors Compromise Their Independence?

By Aki Matsumoto

Some companies adopt policy of not granting performance-based compensation to outside directors to ensure independence. Given this, outside directors may have little incentive to leverage skills and knowledge in value-creation.
Most independent board members also serve as board members of other companies, but very few companies have set clear standards for the number of concurrent positions that may be held.
Although few companies disclose the criteria for the tenure of independent directors, the longest term was 12 years. ISS has set this as the standard in its voting guidelines.

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Jul 13

Daily Brief Energy/Materials: Silver, Kazatomprom Natsionalnaya Atomnaya Kompaniya and more

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

In today’s briefing:

Silver Surges to Multi-Year Highs on Industrial and Monetary Tailwinds
Kazatomprom: Initiation of Coverage- Sulfuric Acid Supply & Expanding Production Capacity Is A Vital Factor Driving Growth!

Silver Surges to Multi-Year Highs on Industrial and Monetary Tailwinds

By Rahul Jain

Silver prices have rallied ~24% over the past 12 months, driven by strong industrial demand (solar, EVs) and renewed investor interest amid inflation concerns.
With a fourth consecutive market deficit and accelerating demand from clean energy applications, the setup points to a multi-year bullish cycle—especially if real rates remain subdued.
This report provides a comprehensive analysis of the silver market’s recent performance, long-term demand-supply dynamics, key producers’ sensitivity to price movements, and valuation-driven investment opportunities.

Kazatomprom: Initiation of Coverage- Sulfuric Acid Supply & Expanding Production Capacity Is A Vital Factor Driving Growth!

Kazatomprom’s 2024 half-year results reveal a complex landscape of both opportunities and challenges.
Positively, the company remains a leading force in the uranium sector, leveraging its extensive resources and production capabilities to capitalize on strong market fundamentals driven by increasing global interest in nuclear energy.
The emphasis on nuclear power as a viable green energy solution has bolstered demand, potentially leading to a significant supply deficit by 2040, which Kazatomprom appears positioned to address with its strategic focus on expanding production and exploration efforts.

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Jul 13

Daily Brief Industrials: Johns Lyng, Marumae Co Ltd and more

By Smartkarma Daily Briefs | Daily Briefs, Industrials

In today’s briefing:

(Mostly) Asia-Pac M&A: Johns Lyng, New World Resources, Oneconnect, Great Eastern, VIOL
Marumae Co Ltd (6264 JP): Q3 FY08/25 flash update

(Mostly) Asia-Pac M&A: Johns Lyng, New World Resources, Oneconnect, Great Eastern, VIOL