Smartkarma Daily Briefs

• China announced game approval for the June 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.
• In June, Tencent received approval for a domestic game. The company, with Netease and Kingsoft, also received approval for one imported game each.

• The absurd valuation the market has placed on Hong Kong-based biotech Regencell Holdings (NASDAQ: RGC), which claims to be devising Traditional Chinese Medicine (TCM) cures for ADHD, autism, and other neurocognitive disorders, has metastasized since our April 2 newsletter.
• RGC rose 12,980% (on a split-adjusted basis) from the time of our publication to the peak on June 17.
• The stock has fallen a good deal from its $78 value on June 17, but, at $22.95 as of this writing, there is still much more distance for RGC to fall.

• Simeon McMillan, founder of Accrued Interest, has a unique perspective on the broadcast television industry, with experience as a banker and executive in prominent media companies.
• The broadcast television industry has evolved from the hub and spoke model of major networks to a more consolidated landscape, with companies like Nexstar Media Group emerging as major players.
• McMillan will discuss the revenue streams, impact of cord cutting, and strategic investments within the industry, providing insights into the structure and evolution of broadcast television.

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• Natco specializes in complex generics with a catalogue of 30 Para IV filings (14 approved), demonstrating strong R&D expertise and a track record of successful high-value launches most prominently gRevlimid.
• Its current pipeline include potential blockbuster drugs like generic versions of Evrysdi, Ozempic/Wegovy (GLP-1), Kyprolis, and Imbruvica, which could drive future growth and offset concerns about declining Revlimid revenues post-FY26.
• We estimate Natco (ex-Revlimid) can generate ~2,500cr in revenues with profit of 320-350cr. Its 3,500cr cash-in-hand, Para IV optionalities and NCE investments (Gene therapy) make its current valuation attractive.

• Zijin plans to IPO its overseas gold unit, targeting 85t output in 2025; timeline not yet disclosed.
• SOTP values copper business at RMB 592 bn, gold at RMB 190–200 bn, lithium adds RMB 18–28 bn.
• Stock trades ~15–20% below intrinsic value, offering ~25–26% upside even without IPO re-rating.

• Playtika Holding Corp reported a strong first quarter of 2025, achieving a record revenue of over $700 million, marking their highest quarterly revenue to date.
• This success reflects the robustness of their diverse portfolio of mobile games and showcases their ability to support and grow acquired franchises.
• The global launch of Disney Solitaire in April has shown promising early performance, demonstrating the potential for it to become a significant contributor to Playtika’s revenue, alongside the established success of their flagship titles.

• We introduce our payments scorecard in this report, in which we apply weightings to our metrics of valuation, margins, EBITDA growth estimates and valuation-to-growth to deliver rankings
• We keep PagSeguro and Nexi on the buy list, both of these are in the top three in the scorecard; we add PayPal to the buys, replacing the mega-cap Visa
• We remove our sell rating on Affirm, replacing it with Kakao Pay; Kakao Pay stock has rallied hard on stablecoin speculation, but our concern is that investors under-estimate regulatory risk

• Lancaster Colony Corporation delivered mixed results for its fiscal year 2025 third quarter.
• Despite the 2.9% decline in consolidated net sales to $458 million, the company achieved record gross profit and operating income, reaching $106 million and $50 million, respectively.
• This highlights effective cost management and operational efficiencies in a challenging sales environment.

• Updated 10th June: iFOREX Financial Trading, the fintech business with a proprietary online and mobile trading platform for multi-asset contracts for difference, announced that its proposed IPO onto the Main Market, which was expected to occur in late June, will be briefly delayed.
• A routine thematic compliance inspection commenced earlier this year in the BVI, which was disclosed in the Company’s Registration Document, requires additional time to enable finalisation ahead of the IPO.
• The inspection process is close to completion and the Company anticipates only a short delay to the IPO timetable. 

• Ajax Resources (AQSE:AJAX) has moved from the Main Market to AQSE. Ajax is pursuing a strategy as a natural resources investment Company, with a focus on Copper, Gold, Zinc, Uranium, and Lead.
• The Company completed its first acquisition on 21 May 2025, the purchase of Puna Metals S.A., holding the mining rights for 12 licences, collectively forming the Eureka Gold and Copper project in the north-west corner of the Province of Jujuy in Argentina.
• Updated 10th June: iFOREX Financial Trading, the fintech business with a proprietary online and mobile trading platform for multi-asset contracts for difference, announced that its proposed IPO onto the Main Market, which was expected to occur in late June, will be briefly delayed.