Smartkarma Daily Briefs

Cloudflare reported its financial performance for Q1 2025, showcasing several encouraging outcomes along with some aspects that warrant attention.
The company achieved a revenue of $479.1 million, marking a 27% increase year-over-year.
This growth was primarily driven by the addition of large customers, with 3,527 clients contributing over $100,000 annually—a 23% year-over-year rise.

HubSpot Inc.: How Is The Management Executing Mid-Market Expansion to Make Its Business More Resilient To Economic Fluctuations?

HubSpot reported strong financial results for the first quarter of 2025, reflecting continued growth and strategic momentum.
Revenue increased by 18% year-over-year in constant currency, driven by several key trends.
The company added over 10,000 net new customers, bringing its total customer base to 258,000, with customer growth driven by platform consolidation, upmarket expansion, and robust downmarket acquisition.

Microchip Technology Slashes $100M in Costs with Bold Restructuring Plan But Is It Enough To Sustain Margins?

Microchip Technology Inc. presented its Q4 and fiscal year 2025 financial results, highlighting several strategic decisions and market dynamics impacting the company’s performance.
CEO Steve Sanghi detailed a nine-point recovery plan initiated to restore the company to its former performance levels.
Key actions under this plan involved resizing the manufacturing footprint, reducing inventory, refining business focus areas, strengthening customer relations, and conducting organizational restructuring efforts.

Warner Bros. Discovery: Optimized Content Production & Strategic Licensing to Strengthen Brand Presence Across Different Viewership Landscapes!

Warner Bros. Discovery’s (WBD) Q1 2025 earnings call highlighted the company’s strategic focus on quality content and global expansion across its varied media platforms, consisting of streaming, studios, and traditional networks.
The performance reflected notable aspects of growth but also certain challenges inherent in the media industry.
On the positive side, Warner Bros. Discovery made significant gains with its streaming service, advancing its subscriber base by over 5 million in the first quarter alone, bringing the yearly total to more than 22 million new subscribers.

CATL (3750.HK): Rich Vols, Strong Start, and a Tactical Hedge

CATL’s options debut in Hong Kong has been active, with strong Call interest and rising open interest suggesting early investor enthusiasm.
Implied vols are holding firm post-listing and appear rich —potentially justifiable given the trading dynamics and catalysts.
We recommend a tactical hedge structure that skews return favourably, targeting recent highs and protecting against downside drift.

Dropbox Is Supercharging The Dash Ecosystem—Is This the Future of Cloud Collaboration?

Dropbox’s first quarter of 2025 revealed a mixed bag of financial and operational results, marked by some areas of strength and others where challenges persist.
On a positive note, Dropbox achieved a record non-GAAP operating margin, underpinned by their focus on operational efficiency and strategic cost management.
This margin expansion was primarily driven by reduced headcount and marketing expenditures, aligning with prior restructuring efforts.

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May 31

Daily Brief United States: Circle Internet Group, Texas Roadhouse, Cloudflare, Carvana , Viacom Inc Class B, Coinbase Global , Royalty Pharma , Hubspot Inc, Microchip Technology, SharkNinja and more

By Smartkarma Daily Briefs | Daily Briefs, United States

In today’s briefing:

Circle Internet Group (CRCL): Ark, BlackRock to Anchor Oversubscribed Stablecoin IPO
Texas Roadhouse: A Tale Of Smart Menu Pricing & Inflation Defense Tactics!
Cloudflare Inc.: Expansion in Zero Trust and SASE Solutions & Major Growth Levers!
Carvana Co.: Is The Third-Party Marketplace Expansion Its Secret Weapon For Growth?
VIAB US – How Paramount Global Is Mastering Linear-Streaming Synergy to Dominate Sports and Series!
Coinbase Global: USDC & Stablecoin Strategy Can Help Enhance Revenue Streams But What Is Its Future?
Royalty Pharma Flexes Financial Muscle: A $723 Million In Share Repurchases & Bold 2025 Outlook!
HubSpot Inc.: How Is The Management Executing Mid-Market Expansion to Make Its Business More Resilient To Economic Fluctuations?
Microchip Technology Slashes $100M in Costs with Bold Restructuring Plan But Is It Enough To Sustain Margins?
SharkNinja Unleashes 25 Game-Changing Products: Can They Impact Its 2025 Growth Story?

Circle Internet Group (CRCL): Ark, BlackRock to Anchor Oversubscribed Stablecoin IPO

By IPO Boutique

Circle Internet locked down a pair of anchor orders ahead of next week’s IPO which is already oversubscribed.
Circle posted $122m of adjusted Ebitda in Q12025 while growing revenue by 58% to $579m.
The combination of anchor orders, an attractive valuation, growing metrics and a tailwind from the Trump administration all tilt the risk-reward profile in a positive direction.

Texas Roadhouse: A Tale Of Smart Menu Pricing & Inflation Defense Tactics!

Texas Roadhouse reported its first quarter financial results, demonstrating both strengths and challenges in its business performance.
The company recorded a revenue of over $1.4 billion, with same-store sales increasing by 3.5% and average weekly sales reaching all-time highs.
Notably, March experienced the highest weekly sales across Texas Roadhouse’s three brands: Texas Roadhouse, Bubba’s 33, and Jaggers.

Cloudflare Inc.: Expansion in Zero Trust and SASE Solutions & Major Growth Levers!

Cloudflare reported its financial performance for Q1 2025, showcasing several encouraging outcomes along with some aspects that warrant attention.
The company achieved a revenue of $479.1 million, marking a 27% increase year-over-year.
This growth was primarily driven by the addition of large customers, with 3,527 clients contributing over $100,000 annually—a 23% year-over-year rise.

Carvana Co.: Is The Third-Party Marketplace Expansion Its Secret Weapon For Growth?

Carvana Co.’s latest earnings for Q1 2025 highlighted several key achievements as well as ongoing challenges.
The company reported robust growth across several financial metrics, reflecting the effectiveness of its business model in a competitive and fragmented automotive retail industry.
On the positive side, Carvana achieved record retail units sold at 133,898, representing a 46% increase year over-year.

VIAB US – How Paramount Global Is Mastering Linear-Streaming Synergy to Dominate Sports and Series!

Paramount Global’s Q1 2025 financial results presented a mixed picture of the company’s performance and strategic positioning.
On the positive side, Paramount reported a 2% revenue growth, when excluding the Super Bowl, alongside a significant year-over-year improvement in Direct-to-Consumer (DTC) OIBDA by approximately $180 million.
The company also generated $123 million in free cash flow, demonstrating efficient cash management amid a challenging advertising environment.

Coinbase Global: USDC & Stablecoin Strategy Can Help Enhance Revenue Streams But What Is Its Future?

Coinbase delivered notable results in the first quarter of 2025, showcasing both strengths and areas for potential growth.
The company reported a robust financial performance with a top-line revenue of $2 billion and an adjusted EBITDA of $930 million, indicating a strong operational capability even amidst a challenging macroeconomic environment.
This quarter also saw Coinbase making a strategic acquisition of Deribit, positioning it as the leading global crypto derivative platform by open interest, which is significant as it seeks to expand its footprint in international markets.

Royalty Pharma Flexes Financial Muscle: A $723 Million In Share Repurchases & Bold 2025 Outlook!

Royalty Pharma PLC’s recent earnings results for the first quarter of 2025 outline a period of significant financial performance and strategic initiatives.
The company reported a 12% increase in royalty receipts, demonstrating solid cash flow stemming from its diversified portfolio.
Total portfolio receipts grew by 17%, boosted by variable milestones and contractual payments, indicating a strong top-line performance.

HubSpot Inc.: How Is The Management Executing Mid-Market Expansion to Make Its Business More Resilient To Economic Fluctuations?

HubSpot reported strong financial results for the first quarter of 2025, reflecting continued growth and strategic momentum.
Revenue increased by 18% year-over-year in constant currency, driven by several key trends.
The company added over 10,000 net new customers, bringing its total customer base to 258,000, with customer growth driven by platform consolidation, upmarket expansion, and robust downmarket acquisition.

Microchip Technology Slashes $100M in Costs with Bold Restructuring Plan But Is It Enough To Sustain Margins?

Microchip Technology Inc. presented its Q4 and fiscal year 2025 financial results, highlighting several strategic decisions and market dynamics impacting the company’s performance.
CEO Steve Sanghi detailed a nine-point recovery plan initiated to restore the company to its former performance levels.
Key actions under this plan involved resizing the manufacturing footprint, reducing inventory, refining business focus areas, strengthening customer relations, and conducting organizational restructuring efforts.

SharkNinja Unleashes 25 Game-Changing Products: Can They Impact Its 2025 Growth Story?

SharkNinja’s first quarter results for 2025 reflect a period of both significant achievements and challenges, painting a nuanced picture for potential investors.
The company demonstrated resilience in sales growth and strategic adaptability amidst an uncertain macroeconomic backdrop.
Let’s explore both the positive and negative aspects of the financial results and strategic directions highlighted in the call.

Before it’s here, it’s on Smartkarma

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✓ Company Data and News
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May 31

Daily Brief Financials: Metaplanet, Rakuten Bank, Assura PLC, Coinbase Global , Affirm Holdings , Wee Hur Holdings, Clip Money , ICG Enterprise Trust plc, Klarna Group and more

By Smartkarma Daily Briefs | Daily Briefs, Financials

In today’s briefing:

Quiddity JPX-Nikkei 400 Rebal 2025: End-May 2025 Ranks
Japanese Neobanks: Time to Short Rakuten Bank (TSE: 5838)
Certainty Vs. Upside: Navigating the Assura-KKR-PHP Showdown
Coinbase Global: USDC & Stablecoin Strategy Can Help Enhance Revenue Streams But What Is Its Future?
Affirm Holdings: Will Its Merchant Offers & Dynamic Optimization Be A Game Changer?
25 Most Net Sold Stocks by Retail in May Averaged 9% Total Returns
CLPMF: Clip Money Q1 Revenues Grow 225% and Losses Narrow. 2025 Revenues Should Almost Triple
ICG Enterprise Trust plc – Hardman & Co Monthly: June 2025
Klarna IPO Update: Earnings Recap/Estimate Changes, 1Q25 Net Loss Widened to ~$101M

Quiddity JPX-Nikkei 400 Rebal 2025: End-May 2025 Ranks

By Janaghan Jeyakumar, CFA

JPX-Nikkei 400 is composed of common stocks listed on the Tokyo Stock Exchange. It is a free-float-adjusted capped index composed of 400 constituents.
The annual index review takes place in August every year. We look at the latest rankings of potential ADDs/DELs every month.
Below is a look at the rankings of potential ADDs/DELs for the JPX-Nikkei 400 August 2025 rebalance based on trading data as of end-May 2025.

Japanese Neobanks: Time to Short Rakuten Bank (TSE: 5838)

By Victor Galliano

We believe that the recently announced offer by NTT Docomo for SBI Sumishin Netbank is attractive for Netbank shareholders; this brings the Japanese neobanks into the valuation spotlight
There is a modest long arbitrage opportunity in SBI Sumishin Netbank based on its 30th May closing price, but the bigger opportunity, in our view, is shorting Rakuten Bank
Seven Bank is of potential M&A interest, according to the Japanese financial press; despite the speculative boost to Seven shares and its PBV, Rakuten Bank valuations look relatively very stretched

Certainty Vs. Upside: Navigating the Assura-KKR-PHP Showdown

By Jesus Rodriguez Aguilar

Assura draws competing offers: KKR offers 49.4p cash per share, while PHP counters with a 50.53p blend of cash and stock, sparking a rare UK healthcare REIT bidding war.
With pro forma LTV below 50% and strong interest coverage, PHP can raise its cash component by 2–3p/share without losing investment-grade status; PUSU deadline looms 14 June.
Arbitrage investors can go long Assura and hedge PHP exposure via CFDs at a 0.3769 ratio, isolating deal spread upside while managing market risk.

Coinbase Global: USDC & Stablecoin Strategy Can Help Enhance Revenue Streams But What Is Its Future?

Coinbase delivered notable results in the first quarter of 2025, showcasing both strengths and areas for potential growth.
The company reported a robust financial performance with a top-line revenue of $2 billion and an adjusted EBITDA of $930 million, indicating a strong operational capability even amidst a challenging macroeconomic environment.
This quarter also saw Coinbase making a strategic acquisition of Deribit, positioning it as the leading global crypto derivative platform by open interest, which is significant as it seeks to expand its footprint in international markets.

Affirm Holdings: Will Its Merchant Offers & Dynamic Optimization Be A Game Changer?

Affirm Holdings, a leader in the “buy now, pay later” (BNPL) sector, reported its financial performance for the third quarter of fiscal 2025.
Here are the key highlights and considerations for an investment thesis based on the company’s recent earnings call.
Affirm demonstrated growth with an optimistic outlook for the current quarter and fiscal year.

25 Most Net Sold Stocks by Retail in May Averaged 9% Total Returns

By Geoff Howie

The 25 Singapore stocks most net sold by retail in May averaged 8.5% total returns, outperforming the STI’s 2.9%.
Retail investors net sold S$280 million in Singapore stocks in May, while institutions net bought S$306,522.
Singapore Airlines was the most net sold stock by retail, gaining 7% in May, with a record S$2.8 billion net profit.

CLPMF: Clip Money Q1 Revenues Grow 225% and Losses Narrow. 2025 Revenues Should Almost Triple

By Zacks Small Cap Research

Clip Money continues its march to profitability, reporting growth of 225% in Q1 2025 to $973,000, ahead of projections.
Growth was driven by a 153% increase in new deposit users and a 10% increase in average monthly deposit revenues per user.
New product revenue was 22% of total revenue in Q1 2025 versus 9% in last year’s quarter.

ICG Enterprise Trust plc – Hardman & Co Monthly: June 2025

By Hardman & Co

Feature article: Addressing the “risk off” investment challenge As we approach mid-2025, life remains challenging for many UK companies and their shareholders, and ‒ as a broad generalisation – consensus suggests little will change in the foreseeable future.
So, are we now facing a real risk of the UK economy stagnating due to lack of funding?
If that is the case, who is going to take the initiative and avert such a crisis?

Klarna IPO Update: Earnings Recap/Estimate Changes, 1Q25 Net Loss Widened to ~$101M

By Andrei Zakharov

Klarna Group, a founder-led BNPL giant and leading fintech company, will try to make another one IPO push in the second half of the year.
With the most recent F-1/A, the company reported worse-than-expected 1Q25 results, including total revenue of $701M (+9% YoY) and operating loss of $90M, up ~221% YoY.
Klarna Group 1Q net loss nearly tripled to ~$101M on mid-single-digit GMV growth, weaker-than-expected interest income and high SBC expense (~8% of revenues).

Before it’s here, it’s on Smartkarma

The Smartkarma Preview Pass is your entry to the Independent Investment Research Network

✓ Unlimited Research Summaries
✓ Personalised Alerts
✓ Custom Watchlists
✓ Company Data and News
✓ Events & Webinars

May 31

Daily Brief Health Care: Viatris, Royalty Pharma , Illumina Inc, CSPC Pharmaceutical Group, Zomedica , Insulet Corp, Globus Medical Inc A and more

By Smartkarma Daily Briefs | Daily Briefs, Healthcare

In today’s briefing:

Viatris Inc: Fast-Acting Meloxicam Development, A $650M Buyback Blitz, & Other Key Developments!
Royalty Pharma Flexes Financial Muscle: A $723 Million In Share Repurchases & Bold 2025 Outlook!
Illumina Inc.: Tackling Global Headwinds With Strategic Market Diversification!
CSPC Pharmaceutical (1093 HK): Finished Drugs Drag 1Q25; Out Licensing And New Launches To Be Key
WTR Biotech Spotlight Podcast Recap Zomedica Corp. (ZOMDF)
Insulet Corporation: Will Its Efforts Towards Type 2 Diabetes Market Penetration & DTC Initiatives Pay Off?
Globus Medical’s $250M Nevro Bet: Can This Bold Acquisition Disrupt Neuromodulation?

Viatris Inc: Fast-Acting Meloxicam Development, A $650M Buyback Blitz, & Other Key Developments!

Viatris, formerly known by the ticker VTRS, reported its Q1 2025 earnings, reflecting a careful balance of opportunities and challenges.
For this quarter, Viatris recorded $3.3 billion in total revenues, representing a marginal decline of 2% when adjusted for divestitures and operational changes.
This decline was largely attributed to continued issues at the Indore facility, which impacted revenues by approximately $140 million.

Royalty Pharma Flexes Financial Muscle: A $723 Million In Share Repurchases & Bold 2025 Outlook!

Royalty Pharma PLC’s recent earnings results for the first quarter of 2025 outline a period of significant financial performance and strategic initiatives.
The company reported a 12% increase in royalty receipts, demonstrating solid cash flow stemming from its diversified portfolio.
Total portfolio receipts grew by 17%, boosted by variable milestones and contractual payments, indicating a strong top-line performance.

Illumina Inc.: Tackling Global Headwinds With Strategic Market Diversification!

Illumina’s first-quarter 2025 earnings present a mixed financial picture.
The company showed resilience by achieving revenue and EPS at the upper end of guidance, highlighting strong execution despite macroeconomic challenges, especially in the context of foreign exchange impacts and geopolitical uncertainties that have complicated the operating environment.
Positive indicators include robust performance in the NovaSeq X instruments, exceeding expectations with significant quarterly placements.

CSPC Pharmaceutical (1093 HK): Finished Drugs Drag 1Q25; Out Licensing And New Launches To Be Key

By Tina Banerjee

CSPC Pharmaceutical Group (1093 HK) 1Q25 revenue dropped 22% YoY as finished drugs witnessed decrease on VBP and NRDL inclusion. Bulk products and license fees compensated to an extent.
Operating margin (23.7%) remained stable despite 11% higher R&D expenses at RMB 1.3B.
License and collaboration in relation to the development, manufacturing, and commercialization of certain products of the company augur well in terms of future revenue visibility.

WTR Biotech Spotlight Podcast Recap Zomedica Corp. (ZOMDF)

By Water Tower Research

Heaton’s journey to Zomedica. Heaton mapped his journey to animal health and Zomedica.
Having started in human health with surgical device company US Surgical Corporation (USCC), where he gained experience in selling innovative solutions to surgeons, and then after leading several start-ups in a few different areas of healthcare, he was appointed CEO of Zomedica in October 2021.
The opportunity to lead the animal healthcare company appealed to Heaton both from the standpoint of being able to help pets and also because of the relative freedom that animal healthcare afforded to innovate and get to market from a regulatory standpoint compared with the human side of healthcare.

Insulet Corporation: Will Its Efforts Towards Type 2 Diabetes Market Penetration & DTC Initiatives Pay Off?

Insulet Corporation’s first quarter results of 2025 reveal a robust performance characterized by significant revenue growth alongside ongoing strategic expansions.
The most notable aspect is the 30% surge in total company revenue, driven by a strong uptake of its Omnipod insulin delivery system, which itself saw a 29% growth.
This underlines Insulet’s strong foothold in the diabetes management field, particularly in the U.S., where Omnipod revenue grew by 26%.

Globus Medical’s $250M Nevro Bet: Can This Bold Acquisition Disrupt Neuromodulation?

Globus Medical’s first quarter of 2025 delivered a mixed performance, reflecting both strengths and challenges.
The company reported a slight decline in revenue of 0.8% on a constant currency basis, culminating in $598 million.
This stagnation was attributed to softer sales in enabling technology, supply chain disruptions related to integration processes, and the timing of international distributor orders.

Before it’s here, it’s on Smartkarma

The Smartkarma Preview Pass is your entry to the Independent Investment Research Network

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✓ Personalised Alerts
✓ Custom Watchlists
✓ Company Data and News
✓ Events & Webinars

May 31

Daily Brief Consumer: Texas Roadhouse, Samyang Foods, Hang Seng Index, Carvana , Viacom Inc Class B, Ambev , Restaurant Brands Internationa, TSE Tokyo Price Index TOPIX, Valor Holdings, Planet Fitness Inc Cl A and more

By Smartkarma Daily Briefs | Consumer, Daily Briefs

In today’s briefing:

Texas Roadhouse: A Tale Of Smart Menu Pricing & Inflation Defense Tactics!
Korean F&B: Focus on Companies With Strongest Export Growth
HSI Index Options Weekly (May 26-30): Choppy Tape, One Strike Rules Them All
Carvana Co.: Is The Third-Party Marketplace Expansion Its Secret Weapon For Growth?
VIAB US – How Paramount Global Is Mastering Linear-Streaming Synergy to Dominate Sports and Series!
Ambev S.A.: How Are They Dealing With Competitive Market Dynamics & Other Risks?
Restaurant Brands International (QSR): Are Their Efforts Towards Revamping Burger King U.S. Paying Off?
Could It Be that the Unit Share System Has Helped to Turn Away from Growing Shareholder Interests?
Valor Responds to Trial-Seiyu Threat
Planet Fitness Expands Its Global Footprint with Breakout Success in Spain & Australia; What Lies Ahead?

Texas Roadhouse: A Tale Of Smart Menu Pricing & Inflation Defense Tactics!

Texas Roadhouse reported its first quarter financial results, demonstrating both strengths and challenges in its business performance.
The company recorded a revenue of over $1.4 billion, with same-store sales increasing by 3.5% and average weekly sales reaching all-time highs.
Notably, March experienced the highest weekly sales across Texas Roadhouse’s three brands: Texas Roadhouse, Bubba’s 33, and Jaggers.

Korean F&B: Focus on Companies With Strongest Export Growth

By Douglas Kim

In this insight, we provide 3 major fundamental criteria for screening major Korean F&B companies.
Three major criteria include 3 years CAGR revenue growth of 5% or more, increase in net margin in 2024, and overseas sales more than 10% of total sales.
Of the 30 Korean F&B companies mentioned in this insight, only six companies meet these criteria including Samyang Foods, Orion Corp, Hitejinro, Lotte Wellfood, Daesang Corporation, and Pulmuone.

HSI Index Options Weekly (May 26-30): Choppy Tape, One Strike Rules Them All

HSI traded sideways for a third straight week as macro headlines swirled and tariffs turned internally litigious.
Volatility drifted lower, with 1M implied vol dropping below its 1-year median for the first time in months.
Call volumes were significantly higher led by one strike in particular.

Carvana Co.: Is The Third-Party Marketplace Expansion Its Secret Weapon For Growth?

Carvana Co.’s latest earnings for Q1 2025 highlighted several key achievements as well as ongoing challenges.
The company reported robust growth across several financial metrics, reflecting the effectiveness of its business model in a competitive and fragmented automotive retail industry.
On the positive side, Carvana achieved record retail units sold at 133,898, representing a 46% increase year over-year.

VIAB US – How Paramount Global Is Mastering Linear-Streaming Synergy to Dominate Sports and Series!

Paramount Global’s Q1 2025 financial results presented a mixed picture of the company’s performance and strategic positioning.
On the positive side, Paramount reported a 2% revenue growth, when excluding the Super Bowl, alongside a significant year-over-year improvement in Direct-to-Consumer (DTC) OIBDA by approximately $180 million.
The company also generated $123 million in free cash flow, demonstrating efficient cash management amid a challenging advertising environment.

Ambev S.A.: How Are They Dealing With Competitive Market Dynamics & Other Risks?

Ambev S.A.’s recent financial disclosures provide a mixed picture for investors, underscored by a strong start to 2025 but tempered by broader economic challenges.
The company reported a robust top-line performance for the first quarter of 2025, with revenues rising by high single digits and EBITDA growing by double digits, despite nominal volume growth of just 0.7%.
This performance signifies healthy operational efficiency and strategic execution across various business pillars, though the flat net income reflects substantial tax comparisons from the previous year.

Restaurant Brands International (QSR): Are Their Efforts Towards Revamping Burger King U.S. Paying Off?

Restaurant Brands International recently held a financial review for the fiscal year and fourth quarter ending December 31, 2024.
The company displayed notable achievements and areas for improvement across its diversified portfolio, which includes household names such as Tim Hortons, Burger King, Popeyes, and Firehouse Subs, under its wing.
The company reported a moderate growth trajectory with a 2.3% increase in comparable sales, a 3.4% growth in the number of net restaurants, and a 5.4% rise in system-wide sales.

Could It Be that the Unit Share System Has Helped to Turn Away from Growing Shareholder Interests?

By Aki Matsumoto

The reason behind “TSE’s request to lower minimum investment amount to around JPY100,000” is to increase stocks that can be purchased with monthly 100,000 yen of NISA’s installment investment limit.
While the share unit system has allowed listed companies to reduce various costs, it has neglected the equal rights of shareholders who own less than one unit of stock.
Now that advances in shareholder administrative tools can reduce administrative costs, shareholders could be trade as few as one share and be granted the same rights as a single shareholder.

Valor Responds to Trial-Seiyu Threat

By Michael Causton

After seeing Trial acquire Seiyu, Chubu-based supermarket group, Valor, has announced it will expand into other regions too, accelerating its plans by two years.
It hopes to take advantage of the current disruption happening in the supermarket sector.
First stop will be Kansai which is ripe for disruption given the poor competitive positioning of the incumbents.

Planet Fitness Expands Its Global Footprint with Breakout Success in Spain & Australia; What Lies Ahead?

By Nippon Investment Bespoke Research UK

Planet Fitness demonstrated a solid performance in the first quarter of 2025, aligning with its strategic goals amidst a challenging macroeconomic environment.
The fitness company reported an increase in its member base to 20.6 million, reflecting growth by approximately 900,000 members from the previous year.
The system wide same club sales rose by 6.1%, with the company opening 19 new clubs globally, totaling 2,741 locations.

Before it’s here, it’s on Smartkarma

The Smartkarma Preview Pass is your entry to the Independent Investment Research Network

✓ Unlimited Research Summaries
✓ Personalised Alerts
✓ Custom Watchlists
✓ Company Data and News
✓ Events & Webinars

May 31

Daily Brief Japan: Metaplanet, Rakuten Bank, Daido Steel, Mec Co Ltd, TSE Tokyo Price Index TOPIX, Valor Holdings and more

By Smartkarma Daily Briefs | Daily Briefs, Japan

In today’s briefing:

Quiddity JPX-Nikkei 400 Rebal 2025: End-May 2025 Ranks
Japanese Neobanks: Time to Short Rakuten Bank (TSE: 5838)
Daido Steel Co., Ltd (5471 JP): Research Update
MEC Co., Ltd (4971 JP): Research Update
Could It Be that the Unit Share System Has Helped to Turn Away from Growing Shareholder Interests?
Valor Responds to Trial-Seiyu Threat

Quiddity JPX-Nikkei 400 Rebal 2025: End-May 2025 Ranks

By Janaghan Jeyakumar, CFA

JPX-Nikkei 400 is composed of common stocks listed on the Tokyo Stock Exchange. It is a free-float-adjusted capped index composed of 400 constituents.
The annual index review takes place in August every year. We look at the latest rankings of potential ADDs/DELs every month.
Below is a look at the rankings of potential ADDs/DELs for the JPX-Nikkei 400 August 2025 rebalance based on trading data as of end-May 2025.

Japanese Neobanks: Time to Short Rakuten Bank (TSE: 5838)

By Victor Galliano

We believe that the recently announced offer by NTT Docomo for SBI Sumishin Netbank is attractive for Netbank shareholders; this brings the Japanese neobanks into the valuation spotlight
There is a modest long arbitrage opportunity in SBI Sumishin Netbank based on its 30th May closing price, but the bigger opportunity, in our view, is shorting Rakuten Bank
Seven Bank is of potential M&A interest, according to the Japanese financial press; despite the speculative boost to Seven shares and its PBV, Rakuten Bank valuations look relatively very stretched

Daido Steel Co., Ltd (5471 JP): Research Update

Daido Steel (5471 JP) produced FY24 (March year-end) results full-year OP [IFRS basis] of ¥39,408mil (-6.7% YoY) on sales of ¥574,945mil (-0.6% YoY).
Due to multiple unknown factors surrounding the business environment such as impact from the US trade tariff policy and volatile FOREX, Daido Steel only released FY25 1H guidance.
The firm is guiding for 1H OP of ¥12,500mil (-31.5% YoY / -40.9% HoH) on sales of ¥275,000mil (-3.0% YoY / -5.7% HoH).

MEC Co., Ltd (4971 JP): Research Update

By Nippon Investment Bespoke Research UK

MEC’s (4971 JP) FY25 (Dec year-end) Q1 results were largely in line with guidance for OP to rise +3.8% YoY / +19.8% QoQ to ¥1,093mil on sales of ¥4,423mil (+1.6% YoY / -2.8% QoQ).
Chemical segment sales rose +8.0% YoY / -4.5% QoQ to ¥4,237mil, thanks to 1) a steady increase in demand for chemicals used in high-end packages related to generative AI, and 2) a gradual recovery in demand associated with PCs, smartphones and general servers.
MEC is guiding for FY25 1H OP of ¥2,250mil (-4.8% YoY) on sales of ¥9,600mil (+8.1% YoY), and full-year OP of ¥5,000mil (+9.6% YoY) on sales of ¥20,000mil (+9.7% YoY).

Could It Be that the Unit Share System Has Helped to Turn Away from Growing Shareholder Interests?

By Aki Matsumoto

The reason behind “TSE’s request to lower minimum investment amount to around JPY100,000” is to increase stocks that can be purchased with monthly 100,000 yen of NISA’s installment investment limit.
While the share unit system has allowed listed companies to reduce various costs, it has neglected the equal rights of shareholders who own less than one unit of stock.
Now that advances in shareholder administrative tools can reduce administrative costs, shareholders could be trade as few as one share and be granted the same rights as a single shareholder.

Valor Responds to Trial-Seiyu Threat

By Michael Causton

After seeing Trial acquire Seiyu, Chubu-based supermarket group, Valor, has announced it will expand into other regions too, accelerating its plans by two years.
It hopes to take advantage of the current disruption happening in the supermarket sector.
First stop will be Kansai which is ripe for disruption given the poor competitive positioning of the incumbents.

Before it’s here, it’s on Smartkarma

The Smartkarma Preview Pass is your entry to the Independent Investment Research Network

✓ Unlimited Research Summaries
✓ Personalised Alerts
✓ Custom Watchlists
✓ Company Data and News
✓ Events & Webinars

May 31

Daily Brief India: Adani Ports & Special Economic Zone and more

By Smartkarma Daily Briefs | Daily Briefs, India

In today’s briefing:

Lucror Analytics – Morning Views Asia

Lucror Analytics – Morning Views Asia

By Leonard Law, CFA

US treasuries climbed yesterday, on the back of a strong auction of 7Y notes and amid a soft GDP data release.
The yield on the 2Y UST fell 5 bps to 3.94%, while that on the 10Y UST declined 6 bps to 4.42%.
Equities climbed on the back of solid results from Nvidia Corp, albeit the extent of gains was pared later in the day on slowing economic data and legal uncertainties over tariffs.

Before it’s here, it’s on Smartkarma

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May 31

Daily Brief China: Hang Seng Index, Shanghai Zhida Technology Development Co Ltd, Contemporary Amperex Technology (CATL), CSPC Pharmaceutical Group and more

By Smartkarma Daily Briefs | China, Daily Briefs

In today’s briefing:

HSI Index Options Weekly (May 26-30): Choppy Tape, One Strike Rules Them All
Shanghai Zhida Technology Development Pre-IPO – Market Leader Faces Pricing Pressures
CATL (3750.HK): Rich Vols, Strong Start, and a Tactical Hedge
CSPC Pharmaceutical (1093 HK): Finished Drugs Drag 1Q25; Out Licensing And New Launches To Be Key

HSI Index Options Weekly (May 26-30): Choppy Tape, One Strike Rules Them All

HSI traded sideways for a third straight week as macro headlines swirled and tariffs turned internally litigious.
Volatility drifted lower, with 1M implied vol dropping below its 1-year median for the first time in months.
Call volumes were significantly higher led by one strike in particular.

Shanghai Zhida Technology Development Pre-IPO – Market Leader Faces Pricing Pressures

By Troy Wong

Shanghai Zhida Technology Development (SZTD) is looking to raise about US$128m in its upcoming Hong Kong IPO.
SZTD presents a compelling leadership position in the EV home charging market, both in China and globally, underpinned by strong industry tailwinds and a diversified product-service offering.
However, recent declines in revenue and margins driven by pricing pressures and high customer concentration raise concerns about the sustainability of its growth and profitability.

CATL (3750.HK): Rich Vols, Strong Start, and a Tactical Hedge

CATL’s options debut in Hong Kong has been active, with strong Call interest and rising open interest suggesting early investor enthusiasm.
Implied vols are holding firm post-listing and appear rich —potentially justifiable given the trading dynamics and catalysts.
We recommend a tactical hedge structure that skews return favourably, targeting recent highs and protecting against downside drift.

CSPC Pharmaceutical (1093 HK): Finished Drugs Drag 1Q25; Out Licensing And New Launches To Be Key

By Tina Banerjee

CSPC Pharmaceutical Group (1093 HK) 1Q25 revenue dropped 22% YoY as finished drugs witnessed decrease on VBP and NRDL inclusion. Bulk products and license fees compensated to an extent.
Operating margin (23.7%) remained stable despite 11% higher R&D expenses at RMB 1.3B.
License and collaboration in relation to the development, manufacturing, and commercialization of certain products of the company augur well in terms of future revenue visibility.

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✓ Personalised Alerts
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✓ Company Data and News
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May 31

Most Read: JF Wealth Holdings, Melco International Development, Shandong Himile Mechanical Science & Technology, HDFC Bank, Beijing Airport High Tech A, Solid Inc, HD Hyundai Marine Solution , Ainsworth Game Technology, Anker Innovations Technology, CosmoAM&T and more

By Smartkarma Daily Briefs | Daily Briefs, Most Read

In today’s briefing:

CSI Hong Kong Connect Internet Index Rebalance Preview: 6 Changes & US$700m Trade
Melco (200 HK) Trading “Cheap” Into Rights Issue
CSI A500 Index Rebalance Preview: Many Changes Expected; US$1bn Trade
NIFTY Bank Index: Impact of the Forecast Methodology Change
CSI All Share Real Estate Sector Index Rebalance Preview: Multiple Changes in June
KOSDAQ150 Index Rebalance: 9 Changes as Fadu Ignored Again
KOSPI200 Index Rebalance: 8 Changes a Side with 2 Surprises
Novomatic (Finally) Makes A Move On Ainsworth Game Technology (AGI AU)
STAR&CHINEXT 50 Index Rebalance Preview: One Set of Change; Maybe Two
An Off-Radar One-Day Passive Flow Trading Play from the KOSPI 200 Sector Indices

CSI Hong Kong Connect Internet Index Rebalance Preview: 6 Changes & US$700m Trade

There could be 3 constituent changes for the CSI Hong Kong Connect Internet Index in June. Plus there are some fairly large capping changes for some stocks.
Estimated one-way turnover is 4.9% and the round-trip trade is HK$5.4bn (US$694m). The impact on the deletes will be a lot larger than the impact on the adds.
The forecast adds have outperformed the forecast deletes over the near-term, though the trade has been quite volatile over the medium term.

Melco (200 HK) Trading “Cheap” Into Rights Issue

By David Blennerhassett

In my stub monitor flagged in StubWorld: Toyota Industries/Motors, GMO Internet, I see Melco International Development (200 HK) is trading “cheap” to Melco Resorts & Entertainment (MLCO US).
Last month, Melco proposed one new rights share for two existing shares at a subscription price of HK$1.0286/share, a 72.93% discount to undisturbed, and a 64.28% discount to the TERP.
Lawrence Ho will backstop ~54% of the rights, if need be. Depending on the level of support for the rights, expect Lawrence to further chip away against minorities.

CSI A500 Index Rebalance Preview: Many Changes Expected; US$1bn Trade

There could be 18 changes for the CSI A500 Index at the June rebalance. Turnover is estimated at 1.7% and the round-trip trade is around US$1bn.
The index was launched in September 2024, and the passive trackers have taken in a chunk of money since then. The flows to the stocks add to other index flows.
A long add/short deletes trade has been stable over the last few months. The forecast adds could outperform following announcement of the index changes on Friday.

NIFTY Bank Index: Impact of the Forecast Methodology Change

To reduce index concentration and the risk of market volatility and market manipulation, SEBI has recommended changes to the eligibility criteria for derivatives on non-benchmark indices.
The recommended changes will result in two inclusions to the NSE Nifty Bank Index (NSEBANK INDEX) along with large capping changes.
The inclusions and capping changes will result in an estimated one-way turnover of 17.05% and in a round-trip trade of INR 76.2bn (US$893m) in September.

CSI All Share Real Estate Sector Index Rebalance Preview: Multiple Changes in June

There could be up to 8 adds and 3 deletes for the CSI All Share Real Estate Sector Index in June.
Estimated one-way turnover is 3.2% at the rebalance leading to a round-trip trade of CNY 456m. There are a few stocks with over 0.5x ADV to trade.
The forecast adds and deletes have performed in line over the last few months, and the announcement of the changes could lead to short-term outperformance.

KOSDAQ150 Index Rebalance: 9 Changes as Fadu Ignored Again

There are 9 changes for the KOSDAQ 150 Index (KOSDQ150 INDEX) in June. Most of the adds and all of the deletes were forecast.
The index committee have used their discretion and kept Fadu (440110 KS) and Snh Inc (051980 KS) out of the index for yet another rebalance – no reason provided.
There’s been little movement in the relative performance of the adds/deletes the last few months. The announcement of the changes could see the stocks move over the next few weeks.

KOSPI200 Index Rebalance: 8 Changes a Side with 2 Surprises

There will be 8 additions and 8 deletions for the Korea Stock Exchange KOSPI 200 (KOSPI2 INDEX) at the next rebalance to be implemented at the close on 12 June.
The inclusion of Korea District Heating (071320 KS) is a surprise and leads to an extra deletion – all the other adds are exactly in line with forecasts.
The list of adds has been stable for the last few months and the stocks have outperformed the deletes and the KOSPI2 INDEX since the start of the review period.

Novomatic (Finally) Makes A Move On Ainsworth Game Technology (AGI AU)

By David Blennerhassett

Ainsworth Game Technology (AGI AU), an Aussie gaming supplier, has entered into a Scheme Implementation Deed with Austria’s Novomatic, Ainsworth’s largest shareholder (52.9%). A from Offer has been long rumoured.
Novomatic is offering A$1.00/share (best & final), a 35% premium to last close. The Offer does NOT require FIRB signing off. The Offer has the unanimous backing of both boards.
Expect shareholder pushback. The Offer consideration is 64% below what Novomatic paid for its controlling stake in 2016.

STAR&CHINEXT 50 Index Rebalance Preview: One Set of Change; Maybe Two