Smartkarma Daily Briefs

IQVIA’s recent financial performance and strategic direction provide a nuanced picture of its current position within the life sciences sector.
In the first quarter of 2025, IQVIA reported strong financial results, achieving revenue growth at the high end of its expectations despite facing a challenging environment in Research & Development Solutions (R&DS).
The company recorded total revenue of $3.829 billion, marking a 2.5% increase on a reported basis and a 3.5% rise at constant currency.

Leads Biolabs (维立志生物) Pre-IPO: Long Time to Commercialization

By Ke Yan, CFA, FRM

Leads Biolabs, a China-based clinical-stage biotech, is looking to raise at least USD 100 million via a Hong Kong listing. The joint book runners are MS and CITIC.
In this insight, we look at the company’s two products with the most advanced stage of clinical trial, LBL-024 and LBL-007.
We also look at the company’s pre-IPO investors and management team.

Tempus AI Strikes $200M Pharma Deal—Will Its Foundation Models Help Revolutionize Cancer Treatment?

Tempus’ first-quarter financial results for 2025 reveal a complex yet promising outlook.
The company saw a significant increase in quarterly revenue, which rose by 75.4% year-over-year to $255.7 million.
Genomics emerged as a key driver, growing by 89% year-over-year to $193.8 million.

Waters Corporation Is Tapping Into The Billion-Dollar Pharma Boom with Strategic Global Moves; Will It Work?

Waters Corporation’s first quarter of 2025 showcased a mixed performance with notable strengths and specific challenges.
The company marked a promising start to the year with robust instrument growth driven by expansive demand in pharma and industrial markets.
Sales grew 4% as reported, and 7% on a constant currency basis, hitting the higher end of the company’s guidance.

Zoetis Inc.: Focus On Adaptation to Market Channels & Consumer Preferences To Sustain Growth Across Its Diverse Portfolio!

By Research as a Service (RaaS)

Zoetis Inc. recently held its first-quarter 2025 financial results presentation, where senior executives highlighted the company’s performance amidst a challenging economic landscape marked by geopolitical and regulatory uncertainties.
Zoetis reported a strong 9% growth in organic operational revenue, driven largely by the International segment, which grew by 11%, while the U.S. segment grew by 6% when excluding its Medicated Feed Additives (MFA) divestiture.
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.

Pre-IPO GenFleet Therapeutics – The Pipeline Outlook Is Full of Challenges

By Xinyao (Criss) Wang

The whole KRAS field just crossed the threshold of druggablility but hasn’t met previous expectations. KRAS monotherapy on NSCLC/CRC is not good. It also progresses slowly when combined with PD-1.
If GFH925 cannot at least demonstrate the same level of strong efficacy as other existing targeted inhibitors/combination therapies and also with favorable safety profile, there’s little chance in afterwards commercialization
Pre-IPO valuation has already reached RMB3.1 billion. In our view, valuation of GenFleet could be similar to that of Jacobio if the sales performance of GFH925 fails to meet expectations.

Riverstone & Ho Bee Land Chairs Make Fresh Share Purchases

By Geoff Howie

Institutions were net sellers of Singapore stocks with a net outflow of S$65 million, totaling S$1.73 billion for 2025.
Financial Services and REITs saw the highest net institutional outflow, while Industrials and Real Estate (Ex-REITs) had inflow.
Share buybacks totaled S$67.6 million, with significant transactions by Hongkong Land and ESR-REIT.

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May 27

Daily Brief Macro: US Debt Downgrade: No Impact on Fiscal Policy Conduct as US Equity-Treasury Valuations Turn Neutral and more

By Smartkarma Daily Briefs | Daily Briefs, Macro

In today’s briefing:

US Debt Downgrade: No Impact on Fiscal Policy Conduct as US Equity-Treasury Valuations Turn Neutral
Family Offices Don’t Like Commodities
Asia base oils demand outlook: Week of 26 May
Malaysia’s Rubber Sector In Flux As Q1 2025 Draws To A Close
[US Crude Oil Options Weekly 2025/21] WTI Slips on Surprise Stockpile Surge and OPEC+ Supply Jitters
[US Nat Gas Options Weekly 2025/21] Henry Hub Pared Gains to Strong Storage Build and Weak Demand

US Debt Downgrade: No Impact on Fiscal Policy Conduct as US Equity-Treasury Valuations Turn Neutral

By Said Desaque

Historically, US sovereign rating changes have had no impact on fiscal policy conduct. Moody’s failed to downgrade the US sovereign credit rating when conduct was profligate during the Biden administration.
The long end segment of the US Treasury yield curve has suffered the bulk of the fallout from the sovereign debt downgrade, although inflationary expectations in this segment remain well-anchored.
The correlation between equities and Treasury yields has turned negative, implying headwinds for equities if yields rise. Valuations no longer favour equities against Treasuries for the first time since 2002.

Family Offices Don’t Like Commodities

By The Commodity Report

Investments in commodities and gold as a percentage share of family offices money remain very little, as this year’s Global Family Office Report by UBS shows.
When asked how they are defying the volatile environment, respondents most frequently cite the selection of managers and/or active management (40%), followed by hedge funds (31%).
Almost as many family offices are increasing their holdings of illiquid assets (27%) and more than a quarter (26%) are focusing on high-quality bonds with short maturities.

Asia base oils demand outlook: Week of 26 May

By Iain Pocock

Asia’s base oils demand likely to weaken in face of seasonal slowdown in consumption and rise in supply.
Drop in lube demand likely to gather pace from start of Q3 2025.
Drop in demand could be larger than usual because of weaker-than-expected economic growth.

Malaysia’s Rubber Sector In Flux As Q1 2025 Draws To A Close

By Vinod Nedumudy

NR production plummets; export and import too down
Ivory Coast once again pips Thailand in imports
Nitrile gloves posing greater threat to latex gloves

[US Crude Oil Options Weekly 2025/21] WTI Slips on Surprise Stockpile Surge and OPEC+ Supply Jitters

By Suhas Reddy

WTI futures fell by 0.7% for the week ending 23/May due to rising U.S. crude inventories and concerns over OPEC+ raining supply.
The U.S. rig count fell by ten to 566. The oil rig count fell by eight to 465, while gas rigs also fell by two to 98.
WTI OI PCR remained unchanged at 0.82 on 23/May compared to 16/May. Call OI rose by 4.8% WoW, while put OI grew by 4.7%.

[US Nat Gas Options Weekly 2025/21] Henry Hub Pared Gains to Strong Storage Build and Weak Demand

By Suhas Reddy

For the week ending 23/May, U.S. natural gas prices remained flat despite having a volatile week. Hot summer forecasts were offset by a strong storage build.
For the week ending 23/May, the EIA reported that U.S. natural gas inventories rose by 120 Bcf, moderately higher than analyst expectations of a 118 Bcf build.
Henry Hub OI PCR fell to 0.89 on 23/May compared to 0.92 on 16/May. Call OI increased by 4.4% WoW, while put OI grew by 1.5%.

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May 27

Daily Brief Australia: Verbrec and more

By Smartkarma Daily Briefs | Australia, Daily Briefs

In today’s briefing:

Verbrec Ltd – Positive signals for the sector

Verbrec Ltd – Positive signals for the sector

Verbrec Limited (ASX:VBC) provides engineering, asset management, infrastructure services and training to the energy, mining, infrastructure and defence industries in Australia, New Zealand, PNG and the Pacific Islands.
The company has released a business update, including news of the recent securement of $11.0m in engineering and construction projects.
This is the first sign that the challenging macro environment experienced over the past six months is beginning to improve, particularly in government and government-adjacent sectors such as defence and water.

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May 27

Daily Brief Financials: Soundwill Holdings, Taishin Financial Holding, Schloss Bangalore Ltd, United Overseas Insurance, Lifenet Insurance Company, Ho Bee Land Ltd and more

By Smartkarma Daily Briefs | Daily Briefs, Financials

In today’s briefing:

Soundwill (878 HK): Thoughts On The Latest Scheme Fail
Quiddity Leaderboard TDIV Jun25: Final Expectations; Trade Successful; New Sector-Neutral Idea
Schloss Bangalore IPO – Thoughts on Peer Comp and Valuation
United Overseas Insurance: The Samsung Family of Singapore?
LIFENET INSURANCE COMPANY (7157 JP) – Charting the Course for Long-Term Growth
Riverstone & Ho Bee Land Chairs Make Fresh Share Purchases

Soundwill (878 HK): Thoughts On The Latest Scheme Fail

By David Blennerhassett

After Goldlion (533 HK)‘s spectacular Scheme fail, Soundwill (878 HK) appeared destined to be the next failure as shares dipped hard ahead of the Scheme vote. And fail it did.
Just like for Goldlion, Soundwill’s Offer was clearly light. The counter-argument was that terms were, arguably, as good as it gets. And no competing Offer would emerge. Minorities voiced otherwise.
Hong Kong has been the proverbial graveyard for arb deals of late. However, in a positive sense, minorities in Goldlion and Soundwill simply rejected opportunistic Offers.

Quiddity Leaderboard TDIV Jun25: Final Expectations; Trade Successful; New Sector-Neutral Idea

By Janaghan Jeyakumar, CFA

The TDIV index tracks the top 50 names in the Taiwan Stock Exchange with the highest dividend yields. It is a yield-weighted index with unique capping rules.
Today is the base date for the final ranks and we see five ADDs and five DELs.
We estimate one-way flow to be around US$2.55bn with multiple expected ADDs having 10x ADV or more to trade.

Schloss Bangalore IPO – Thoughts on Peer Comp and Valuation

By Akshat Shah

Schloss Bangalore Ltd (SCHBL IN) is looking to raise about US$409m in its India IPO. The deal has been downsized from an earlier size of around US$600m.
It is a luxury hospitality company which owns, operates, manages and develops luxury hotels and resorts under ‘The Leela’ brand, through direct ownership and hotel management agreements with third-party owners.
In this note, we will talk about the IPO valuations.

United Overseas Insurance: The Samsung Family of Singapore?

By Alec Tseung

UOI received much media attention when a minority shareholder group attempted to push the company to distribute its Haw Par shares and appoint a financial advisor to unlock shareholder value.
Although the Board dismissed the request due to the failure to meet statutory requirements, the ownership structure between UOI, UOB, Haw Par, and Wee family remains a valid concern.
UOI has underperformed the broader market over the past 5 years; the key to management is how it can grow from a mid-sized local insurer to a leading regional one.

LIFENET INSURANCE COMPANY (7157 JP) – Charting the Course for Long-Term Growth

Solid execution despite macro volatility impact – FY3/25 results were positive, driven by strong performance at the GCL business, a direct result of Lifenet’s partnership strategy.
Despite solid execution in FY3/25, the Comprehensive Equity Per Share growth of +4.5% YoY was well below the Company’s FY3/29 target of +10.0% annual growth due to macroeconomic volatility, highlighting the need for investors to focus on the longer term.
Looking beyond the FY3/26 guidance, we think Lifenet is well-positioned to deliver longer-term growth with a new technology-oriented CEO, a renewed commitment to accelerating growth at the individual life business, and upside from its partnership-focused growth strategy.

Riverstone & Ho Bee Land Chairs Make Fresh Share Purchases

By Geoff Howie

Institutions were net sellers of Singapore stocks with a net outflow of S$65 million, totaling S$1.73 billion for 2025.
Financial Services and REITs saw the highest net institutional outflow, while Industrials and Real Estate (Ex-REITs) had inflow.
Share buybacks totaled S$67.6 million, with significant transactions by Hongkong Land and ESR-REIT.

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May 27

Daily Brief Consumer: Tsuruha Holdings, Fuji Media Holdings, Meituan, Uni President Enterprises, Thai Beverage, NIFTY Index, Foshan Haitian Flavouring & Food, BYD, TSE Tokyo Price Index TOPIX, DoorDash and more

By Smartkarma Daily Briefs | Consumer, Daily Briefs

In today’s briefing:

[Japan Activism/M&A] – Shareholders Approve Tsuruha/Welcia Merger – Now It’s Partial Offer+Synergies
[Japan Activism] The Upcoming Fuji Media AGM Stoush – Foreigners Vs Voting Right Limits
Meituan (3690 HK): 1Q25, Main Businesses Up by 20%
Yuanta/P-Shares Taiwan Div+ ETF Rebalance Preview: Five Changes; US$5.2bn Trade; Other Index Flows
Thai Beverage (THBEV): Undervalued with Catalysts Coming
NIFTY Index Outlook (With an Eye on Zomato’s Passive Selling Starting…)
Foshan Haitian Flavouring H Share Listing: The Investment Case
Connect SOUTHBOUND Flows (To 23 May 2025); Volumes OK, Telecoms & Banks Bought, Tech & Consumer Sold
Is Now Time to Move Forward with Efforts to Raise % Female Board Directors, Even Matching Numbers?
DoorDash Inc.: How Autonomous Delivery Initiatives Could Potentially Redefine Logistics Within The Food Delivery & Broader E-Commerce Sectors!

[Japan Activism/M&A] – Shareholders Approve Tsuruha/Welcia Merger – Now It’s Partial Offer+Synergies

This morning the Nikkei reported shareholders of Welcia Holdings (3141 JP) and Tsuruha Holdings (3391 JP) approved their Merger. Activists opposed but it was going to be close at best.
As expected, Welcia shares popped, and the spread converged to 2% with Tsuruha falling back to just below ¥11,400. Some of this is unwind of speculative interest in Tsuruha.
The new yuhos are out, which shows roughly where we stand (as of end-Feb, and some updates). Now the trade is NEWCO vs Aeon’s interest and NEWCO vs World.

[Japan Activism] The Upcoming Fuji Media AGM Stoush – Foreigners Vs Voting Right Limits

Fuji Media Holdings (4676 JP) has for years been “undervalued” and owned by value-oriented actively-managed fund managers. Under-used real estate and IP assets. Lack of governance regarding capital.
A Shukan Bunshun article in Dec-2024 reported a former boy band SMAP member and Fuji TV regular made a big payment to an unidentified woman after a June 2023 “incident.”
Fuji TV hemmed and hawed about its involvement. Advertisers bolted. Activists activisted. The chairman resigned. Now Major Activist Dalton has a director slate for the AGM. What Next?

Meituan (3690 HK): 1Q25, Main Businesses Up by 20%

By Ming Lu

In 1Q25, total revenue grew by 18% YoY, with main businesses up by 20% YoY.
The operating margin rose by 3.6 ppt YoY by cutting every cost in 1Q25.
We expect EPS will grow by 37% in 2025 and the stock has an upside of 48%.

Yuanta/P-Shares Taiwan Div+ ETF Rebalance Preview: Five Changes; US$5.2bn Trade; Other Index Flows

By Brian Freitas

There should be 5 changes for the Yuanta/P-Shares Taiwan Dividend Plus ETF in June. Most changes are due to missing dividend forecasts for constituent stocks.
Constituent changes along with capping changes will lead to a one-way turnover of 17.6% and in a round-trip trade of TWD 157bn (US$5.2bn).
There are multiple stocks that have same-way or opposite flow from trackers of other Taiwan dividend yield weighted indices and presents some interesting trading opportunities.

Thai Beverage (THBEV): Undervalued with Catalysts Coming

By Henry Soediarko

Thai Beverage (THBEV SP) share price has been quite beaten down in the last few years and has not recovered since COVID.
A few near-term catalysts that could revive the share price i.e. government subsidies for tourist flights, Chinese tourists are back, and the lifting of the alcohol sales ban in afternoon.
Cheapest earnings multiple, pays higher dividend yield, high ROE, and also generated USD 420 million free cash flow.

NIFTY Index Outlook (With an Eye on Zomato’s Passive Selling Starting…)

By Nico Rosti

As reported by Brian Freitas , one of the NIFTY Index (NIFTY INDEX) ‘s component (Zomato: Eternal (ETERNAL IN) ) will be subject to big passive selling beginning on Tuesday.
Let’s have a look at the NIFTY Index (NIFTY INDEX) to evaluate the tactical outlook according to our model.
Since our last BUY recommendation in a previous insight in early May, the index has made some progress uptrending, let’s see if the rally can continue…

Foshan Haitian Flavouring H Share Listing: The Investment Case

By Arun George

Foshan Haitian Flavouring & Food (603288 CH), a leading Chinese pharmaceutical company, has filed its PHIP for an H Share listing to raise US$1 billion.
Foshan Haitian Flavouring & Food Company (FHF HK) has been China’s leading condiments company in terms of sales volume for 28 consecutive years.
The investment case rests on its market positioning, return to growth, industry-leading profitability, cash generation and strong balance sheet. However, the valuation of the A Shares is full.

Connect SOUTHBOUND Flows (To 23 May 2025); Volumes OK, Telecoms & Banks Bought, Tech & Consumer Sold

Gross SOUTHBOUND volumes back below HK$100bn a day this past week, but net buying was nearly HK$19bn, which is decent.
Among the top buys as a percentage of volume, FINANCIALS and TELECOMS stand out, dramatically. Among top sells, it is CONSUMER and INFO TECH dominating the top 20.
The data tables below update on a daily basis in the Tools section of Smartkarma. The SOUTHBOUND Flow Monitor and AH Monitor are both there free for SK readers.

Is Now Time to Move Forward with Efforts to Raise % Female Board Directors, Even Matching Numbers?

By Aki Matsumoto

It is good to see that affirmative action has increased the number of women managerial positions in ITOCHU. This is presumably due to the increase in foreign ownership.
The non-statutory executive officers are not in a legally responsible position and are not involved in management decisions. 2 female independent non-executive directors do not have a management background.
Looking at the board compositions, one notices many issues, but AGMs of many companies are concentrated in June, making it difficult to take the time to scrutinize the convocation notices.

DoorDash Inc.: How Autonomous Delivery Initiatives Could Potentially Redefine Logistics Within The Food Delivery & Broader E-Commerce Sectors!

DoorDash’s latest earnings revealed a nuanced overview of its financial performance and strategic direction, highlighting a mix of strengths and challenges.
The first quarter of 2025 demonstrated significant growth and ongoing investment in expanding its global footprint through strategic acquisitions.
In terms of financial performance, DoorDash saw a continuation of growth trends, with consistent gains in gross order volume (GOV) and earnings before interest, taxes, depreciation, and amortization (EBITDA), underscoring operational efficiency.

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May 27

Daily Brief Thailand: Thai Beverage and more

By Smartkarma Daily Briefs | Daily Briefs, Thailand

In today’s briefing:

Thai Beverage (THBEV): Undervalued with Catalysts Coming

Thai Beverage (THBEV): Undervalued with Catalysts Coming

By Henry Soediarko

Thai Beverage (THBEV SP) share price has been quite beaten down in the last few years and has not recovered since COVID.
A few near-term catalysts that could revive the share price i.e. government subsidies for tourist flights, Chinese tourists are back, and the lifting of the alcohol sales ban in afternoon.
Cheapest earnings multiple, pays higher dividend yield, high ROE, and also generated USD 420 million free cash flow.

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May 27

Daily Brief Singapore: United Overseas Insurance, Ho Bee Land Ltd, SGX Rubber Future TSR20 and more

By Smartkarma Daily Briefs | Daily Briefs, Singapore

In today’s briefing:

United Overseas Insurance: The Samsung Family of Singapore?
Riverstone & Ho Bee Land Chairs Make Fresh Share Purchases
Malaysia’s Rubber Sector In Flux As Q1 2025 Draws To A Close

United Overseas Insurance: The Samsung Family of Singapore?

By Alec Tseung

UOI received much media attention when a minority shareholder group attempted to push the company to distribute its Haw Par shares and appoint a financial advisor to unlock shareholder value.
Although the Board dismissed the request due to the failure to meet statutory requirements, the ownership structure between UOI, UOB, Haw Par, and Wee family remains a valid concern.
UOI has underperformed the broader market over the past 5 years; the key to management is how it can grow from a mid-sized local insurer to a leading regional one.

Riverstone & Ho Bee Land Chairs Make Fresh Share Purchases

By Geoff Howie

Institutions were net sellers of Singapore stocks with a net outflow of S$65 million, totaling S$1.73 billion for 2025.
Financial Services and REITs saw the highest net institutional outflow, while Industrials and Real Estate (Ex-REITs) had inflow.
Share buybacks totaled S$67.6 million, with significant transactions by Hongkong Land and ESR-REIT.

Malaysia’s Rubber Sector In Flux As Q1 2025 Draws To A Close

By Vinod Nedumudy

NR production plummets; export and import too down
Ivory Coast once again pips Thailand in imports
Nitrile gloves posing greater threat to latex gloves

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May 27

Daily Brief South Korea: LS Marine Solution, Dowooinsys, Coupang and more

By Smartkarma Daily Briefs | Daily Briefs, South Korea

In today’s briefing:

LS Marine Solution: Rights Offering Capital Raise of 278 Billion Won
LS Marine Solution’s Rights Deal Is Serving up a Pretty Rare Arbitrage Hunting Ground
Dowoo Insys IPO Valuation Analysis
Coupang: The Taiwan Market Expansion Can Help Create Significant Long-Term Value!

LS Marine Solution: Rights Offering Capital Raise of 278 Billion Won

By Douglas Kim

After the market close on 26 May, LS Marine Solution (060370 KS) announced that it plans to conduct a capital raise worth 278.3 billion won.
LS Marine Solution plans to issue 19.57 million new shares in this capital raise, which represents 60% of its outstanding shares.
Despite the company’s strong sales and profit growth, LS Marine Solution’s valuation multiples may be a bit too aggressive, especially with the major rights offering that will dilute existing shareholders.

LS Marine Solution’s Rights Deal Is Serving up a Pretty Rare Arbitrage Hunting Ground

By Sanghyun Park

This raise stands out with a near-60% issuance ratio—fat rights per share make pre-positioning before ex-date a compelling trade with solid pickup potential.
LS Cable holds 66.75% and has been steadily upping its stake—likely all-in on this raise, which adds serious anchor support and puts a strong floor under the rights.
Skip chasing rights—this setup favors buying shares pre–ex-rights, where the embedded rights value likely beats the ex-day drop, making it a clean trade.

Dowoo Insys IPO Valuation Analysis

By Douglas Kim

Our base case valuation of Dowoo Insys is target price of 40,667 won per share, which is 27% higher than the high end of the IPO price range (32,000 won).
We used an EV/EBITDA multiple of 14.9x to value the company, which is 10% premium to the comps’ valuation multiples in 2024.
The decline in operating margin remains one of the biggest risk factors on the company. Its major customers such as Samsung Display are putting increasing pressure to reduce its prices.

Coupang: The Taiwan Market Expansion Can Help Create Significant Long-Term Value!

Coupang’s financial performance in the first quarter of 2025 illustrates both positive advancements and ongoing challenges.
Consolidated revenue increased by 11% year-over-year, or 21% on a constant currency basis.
This growth reflects strong demand and expansion in key segments, supported by an extensive selection of products and enhancements in their delivery service.

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May 27

Daily Brief United States: United States Steel, Transdigm Group, Advanced Micro Devices, Datadog , Fidelity National Info Serv, Super Micro Computer, DoorDash , Electronic Arts, Marriott International, Elevation Oncology and more

By Smartkarma Daily Briefs | Daily Briefs, United States

In today’s briefing:

Forged in Politics: Nippon’s $55 Bid for X Heats Up Again
TransDigm Group: An Insight Into Its Recent Aftermarket Growth, Market Dynamics & Key Growth Levers!
AMD’s Epic Earnings & Shocking Setback: What Is The Impact Of The MASSIVE China-Related Revenue Loss?
Datadog’s AI Playbook: Will Data Observability Be the Key to Dominating the Future?
Fidelity National Information Services (FIS): Is The Sales Pipeline & Recurring Revenue Growth Here To Stay?
Super Micro Computer’s (SMCI) AI Server Shock: NVIDIA Transition Woes & Profit Wipeout Rock Wall Street!
DoorDash Inc.: How Autonomous Delivery Initiatives Could Potentially Redefine Logistics Within The Food Delivery & Broader E-Commerce Sectors!
Electronic Arts’ Secret Weapon: Can Live Services Really Power Explosive Growth Ahead?
Marriott International: Is Its Focus on Fee Structure & Non-RevPAR Growth Paying Off?
SSI Weekly Newsletter: Strategic Reviews, Merger Arbitrage, Tender Offers, and Portfolio Updates

Forged in Politics: Nippon’s $55 Bid for X Heats Up Again

By Jesus Rodriguez Aguilar

Trump’s endorsement removes the political overhang, reigniting momentum for Nippon Steel’s $55/share all-cash offer.
Implied EV/EBITDA of 8.94x reflects ~$2–3B in strategic synergies over standalone valuation.
11.59% annualized return offers attractive arbitrage upside with manageable regulatory and execution risk.

TransDigm Group: An Insight Into Its Recent Aftermarket Growth, Market Dynamics & Key Growth Levers!

TransDigm Group Inc.’s recent earnings discussion sheds light on both its strengths and challenges, providing insights into the company’s ongoing strategies and performance outlook.
During the second quarter of fiscal 2025, TransDigm reported strong operational performance with significant contributions from its commercial aftermarket and defense market channels.
Revenue from these divisions displayed healthy growth, while commercial OEM revenues remained largely flat compared to the previous year, indicating an area of potential improvement as production recovers from past disruptions.

AMD’s Epic Earnings & Shocking Setback: What Is The Impact Of The MASSIVE China-Related Revenue Loss?

Advanced Micro Devices (AMD) delivered a robust start to 2025, reporting stronger-than-expected earnings that reinforced the company’s growth trajectory in high-demand areas like AI and data centers.
The semiconductor firm posted first-quarter adjusted earnings per share of $0.96, slightly above Wall Street’s estimate of $0.94, with total revenue hitting $7.4 billion, surpassing the projected $7.1 billion.
This performance was fueled by the impressive 57% year-over-year growth in AMD’s Data Center segment, which reached $3.7 billion.

Datadog’s AI Playbook: Will Data Observability Be the Key to Dominating the Future?

Regarding Datadog’s Q1 2025 financial results, the company reported a solid performance with a revenue of $762 million, representing a 25% year-over-year increase.
This figure surpassed the high end of their guidance.
Datadog revealed a customer base of approximately 30,500, with about 3,770 customers having an Annual Recurring Revenue (ARR) of $100,000 or more, accounting for 88% of ARR.

Fidelity National Information Services (FIS): Is The Sales Pipeline & Recurring Revenue Growth Here To Stay?

The first quarter of 2025 results for Fidelity National Information Services, Inc. (FIS) demonstrated both operational progress and strategic initiatives that position the company robustly for future growth.
The revenue growth for the quarter was 4%, with a significant acceleration in recurring revenues, indicative of a resilient business model that thrives across different economic conditions.
The quarter was marked by strategic structural changes, notably the announced acquisition of Global Payments’ issuer business and the sale of a minority stake in Worldpay.

Super Micro Computer’s (SMCI) AI Server Shock: NVIDIA Transition Woes & Profit Wipeout Rock Wall Street!

Super Micro Computer shares experienced their steepest decline in months after the company released preliminary third-quarter fiscal 2025 results that came in well below Wall Street expectations.
SMCI stock fell 14% to $30.96, marking its largest one-day drop since late February.
The artificial intelligence server maker reported revenue between $4.5 billion and $4.6 billion and adjusted earnings per share of $0.29 to $0.31, significantly below analysts’ forecasts of $5.4 billion in revenue and $0.53 EPS.

DoorDash Inc.: How Autonomous Delivery Initiatives Could Potentially Redefine Logistics Within The Food Delivery & Broader E-Commerce Sectors!

DoorDash’s latest earnings revealed a nuanced overview of its financial performance and strategic direction, highlighting a mix of strengths and challenges.
The first quarter of 2025 demonstrated significant growth and ongoing investment in expanding its global footprint through strategic acquisitions.
In terms of financial performance, DoorDash saw a continuation of growth trends, with consistent gains in gross order volume (GOV) and earnings before interest, taxes, depreciation, and amortization (EBITDA), underscoring operational efficiency.

Electronic Arts’ Secret Weapon: Can Live Services Really Power Explosive Growth Ahead?

Electronic Arts Inc. recently reported strong financial performance in the last quarter of its fiscal year 2025, showcasing strengths and addressing some challenges faced throughout the year.
The company recorded notable achievements with its popular gaming franchises, highlighting its robust position in the gaming industry.
One of the significant positives for Electronic Arts was the turnaround in its EA SPORTS FC franchise.

Marriott International: Is Its Focus on Fee Structure & Non-RevPAR Growth Paying Off?

By Special Situation Investments

Marriott International delivered a solid performance in the first quarter of 2025, despite a challenging macroeconomic environment.
The company reported strong development activity with record first-quarter global signings and a 4.6% net rooms growth over the trailing 12 months.
RevPAR (revenue per available room), a key performance indicator for the industry, increased by 4.1% globally, supported by a 3% rise in average daily rate (ADR) and a one percentage point increase in occupancy.

SSI Weekly Newsletter: Strategic Reviews, Merger Arbitrage, Tender Offers, and Portfolio Updates

Elevation Oncology (ELEV) is undergoing a strategic review after discontinuing its lead program, with potential 14–42% upside.
Mayne Pharma (MYX:AX) faces merger arbitrage challenges due to Cosette Pharmaceuticals’ Material Adverse Change claims, trading at a 35% discount.
Air Canada (AC:TO) offers a tender with odd-lot provision, repurchasing shares at C$18.50 – C$21.00, with potential upside.

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May 27

Daily Brief Japan: Tsuruha Holdings, Fuji Media Holdings, TSE Tokyo Price Index TOPIX, Lifenet Insurance Company, Mixi Inc, Nitto Kogyo, Sodick Co Ltd and more

By Smartkarma Daily Briefs | Daily Briefs, Japan

In today’s briefing:

[Japan Activism/M&A] – Shareholders Approve Tsuruha/Welcia Merger – Now It’s Partial Offer+Synergies
[Japan Activism] The Upcoming Fuji Media AGM Stoush – Foreigners Vs Voting Right Limits
Is Now Time to Move Forward with Efforts to Raise % Female Board Directors, Even Matching Numbers?
LIFENET INSURANCE COMPANY (7157 JP) – Charting the Course for Long-Term Growth
MIXI Inc. (2121 JP) – Investing in Scale to Unlock Sustainable Returns
Nitto Kogyo Corporation (6651 JP) – Full Report – May 2, 2025
Sodick (6143 JP) – Building Recovery Momentum

[Japan Activism/M&A] – Shareholders Approve Tsuruha/Welcia Merger – Now It’s Partial Offer+Synergies

This morning the Nikkei reported shareholders of Welcia Holdings (3141 JP) and Tsuruha Holdings (3391 JP) approved their Merger. Activists opposed but it was going to be close at best.
As expected, Welcia shares popped, and the spread converged to 2% with Tsuruha falling back to just below ¥11,400. Some of this is unwind of speculative interest in Tsuruha.
The new yuhos are out, which shows roughly where we stand (as of end-Feb, and some updates). Now the trade is NEWCO vs Aeon’s interest and NEWCO vs World.

[Japan Activism] The Upcoming Fuji Media AGM Stoush – Foreigners Vs Voting Right Limits

Fuji Media Holdings (4676 JP) has for years been “undervalued” and owned by value-oriented actively-managed fund managers. Under-used real estate and IP assets. Lack of governance regarding capital.
A Shukan Bunshun article in Dec-2024 reported a former boy band SMAP member and Fuji TV regular made a big payment to an unidentified woman after a June 2023 “incident.”
Fuji TV hemmed and hawed about its involvement. Advertisers bolted. Activists activisted. The chairman resigned. Now Major Activist Dalton has a director slate for the AGM. What Next?

Is Now Time to Move Forward with Efforts to Raise % Female Board Directors, Even Matching Numbers?

By Aki Matsumoto

It is good to see that affirmative action has increased the number of women managerial positions in ITOCHU. This is presumably due to the increase in foreign ownership.
The non-statutory executive officers are not in a legally responsible position and are not involved in management decisions. 2 female independent non-executive directors do not have a management background.
Looking at the board compositions, one notices many issues, but AGMs of many companies are concentrated in June, making it difficult to take the time to scrutinize the convocation notices.

LIFENET INSURANCE COMPANY (7157 JP) – Charting the Course for Long-Term Growth

Solid execution despite macro volatility impact – FY3/25 results were positive, driven by strong performance at the GCL business, a direct result of Lifenet’s partnership strategy.
Despite solid execution in FY3/25, the Comprehensive Equity Per Share growth of +4.5% YoY was well below the Company’s FY3/29 target of +10.0% annual growth due to macroeconomic volatility, highlighting the need for investors to focus on the longer term.
Looking beyond the FY3/26 guidance, we think Lifenet is well-positioned to deliver longer-term growth with a new technology-oriented CEO, a renewed commitment to accelerating growth at the individual life business, and upside from its partnership-focused growth strategy.

MIXI Inc. (2121 JP) – Investing in Scale to Unlock Sustainable Returns

Q1-4 FY3/25 results were in line with guidance, with progress made YoY to transform both Sports and Lifestyle segments into material earnings pillars.
Company guidance for FY3/26 appears conservative.
The core theme is a significant investment in growing the TIPSTAR (domestic keirin, or cycle team sports) betting service, achieving high user retention, and strong sales growth YoY.

Nitto Kogyo Corporation (6651 JP) – Full Report – May 2, 2025

By Sessa Investment Research

Nitto Kogyo Corporation (hereafter, the Company) is a leading manufacturer of distribution boards and panel boards for electrical and telecommunications infrastructure, as well as enclosures that house telecommunications and precision equipment.
The company has 42 sales offices and eight factories in Japan.
The Company is working to expand its business in ASEAN countries, with overseas production and sales bases in China, Thailand, and Singapore.

Sodick (6143 JP) – Building Recovery Momentum