Smartkarma Daily Briefs

In 1Q25, BEKE’s active stores increased by 29% YoY and total revenue increased by 42% YoY.
New home revenue and rental revenue grew by 64% YoY and 94% YoY in 1Q25.
We believe the stock price can double and is undervalued for the concerns on the general property market.

Philippine Stock Exchange (PSE PM): Inflection In Q1 2025, More Catalysts To Come

By Sameer Taneja

Philippine Stock Exchange (PSE PM) reported an encouraging Q1 2025 with revenue/operating income up 82%/72% YoY, buoyed by the acquisition of PDS.
Despite acquiring 91.6% of PDS (as of 15 May 2025), the company has net cash and investments of 4.8 bn pesos, representing more than 30% of its current market capitalization.
Trading at 13x PE, with a >6% forward dividend yield, and ex-cash ROCE>20%, the stock is cheap. We believe there is a long runway for growth with multiple catalysts.

SGX Group (SGX SP): Likely More Listings. Triggered by Trade Tensions, Tax Perks

By Devi Subhakesan

Reported surge in listing interest on SGX (SGX SP) driven by escalating U.S.- China trade tensions and associated geopolitical uncertainties.
Singapore’s proactive policy toolkit announced in February 2025 offer issuers both cost savings and regulatory certainty and could play a role in attracting more companies to list in Singapore.
An uptick in listings on the Singapore Exchange (SGX) can set off a virtuous cycle, strengthen valuation multiples and lead to upward revisions to 2026 earnings forecasts.

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May 19

Daily Brief Consumer: BYD, Sankyo Co Ltd, Alibaba Group Holding , Midea Group, China Literature, Seven & I Holdings, Reject Shop and more

By Smartkarma Daily Briefs | Consumer, Daily Briefs

In today’s briefing:

HSTECH Index Rebalance: BYD (1211 HK) To Replace China Literature (772 HK) As Trade Hits US$6bn
[Japan Buybacks] ¥7.3trln of Buybacks Announced In the Last Month – Data on Each, Plus History
Alibaba (BABA): 4Q25, Main Business Growth Recovered to 12% YoY, Buy
Hang Seng Index (HSI) Rebalance: Midea (300 HK) & ZTO Express (2057 HK) Added; Inching Towards a 100
[Quiddity Index] Six Hang Seng Index Family Indices: Flows for June 6 Rebal
Merger Arb Mondays (19 May) – Seven & I, Nissin, Welcia/Tsuruha, Mayne, ESR, OneConnect, Frasers
Reject Shop (TRS AU): 23rd June Vote On Dollarama’s Offer

HSTECH Index Rebalance: BYD (1211 HK) To Replace China Literature (772 HK) As Trade Hits US$6bn

As expected, BYD (1211 HK) will be added to the Hang Seng TECH Index (HSTECH INDEX) in June following the launch of God’s Eye, its Advanced Driver-Assistance System (ADAS).
BYD (1211 HK)‘s inclusion results in China Literature (772 HK) being deleted from the index. China Literature stock should drop over the near-term.
Estimated one-way turnover at the rebalance is 13% resulting in a round-trip trade of HK$46.5bn (US$5.95bn). There are 16 stocks that have at least 1x ADV to trade from passives.

[Japan Buybacks] ¥7.3trln of Buybacks Announced In the Last Month – Data on Each, Plus History

Buybacks are a central part of Corporate Japan’s effort to improve corporate/capital governance. Lots of cross-holders want/need to sell. Lots of companies want to reduce excess equity.
This earnings season has seen a LOT of new buybacks announced. ¥7.3trln in the last month and that doesn’t even include the biggest buybacks extant by March-end companies.
We are experimenting with new ways of displaying data/analytics for buybacks in Japan. To that end, we have a new tool. We hope users find it useful. We invite feedback.

Alibaba (BABA): 4Q25, Main Business Growth Recovered to 12% YoY, Buy

Management claimed 4Q25 total revenue should grow by 10% YoY excluding two sold subsidiaries.
The growth rate of customer management revenue rose to two digits in 4Q25.
The main business margin was stable and most of the minor business margins rose YoY in 4Q25.

Hang Seng Index (HSI) Rebalance: Midea (300 HK) & ZTO Express (2057 HK) Added; Inching Towards a 100

Midea Group (300 HK) and ZTO Express Cayman (2057 HK) will be added to the Hang Seng Index (HSI INDEX) in June to take us up to 85 index constituents.
Estimated one-way turnover is 2.9% and the estimated round-trip trade is HK$11.3bn (US$1.44bn) with over 1x ADV to trade in the adds and in one stock with a FAF increase.
There could be a short-term drop in the AH premium for Midea Group while this inclusion ensures ZTO Express Cayman is a member of all major indices where eligible.

[Quiddity Index] Six Hang Seng Index Family Indices: Flows for June 6 Rebal

In this insight, we present the flows to buy and sell for each of the top 6 Hang Seng Index Family indices based on estimated tracking AUM.
The indices: Hang Seng Index (HSI), HS Tech Index (HSTECH), HS China Enterprise Index (HSCEI), HS HK Biotech (HSHKBIO), HS Internet & Infotech (HSIII), and HS Healthcare Index (HSHCI).
By Quiddity calculations based on the 16 May close, there is one-way flow across these six indices of HK$34,556,596,089.99 (approximately), to trade on 6 June.

Merger Arb Mondays (19 May) – Seven & I, Nissin, Welcia/Tsuruha, Mayne, ESR, OneConnect, Frasers

By Arun George

We summarise the latest spreads and newsflow of merger arb situations we cover across Hong Kong, Australia, New Zealand, Singapore, Japan, Indonesia, Malaysia, Philippines, Thailand and Chinese ADRs.
Highest spreads: Insignia Financial (IFL AU), ENN Energy (2688 HK), Smartpay Holdings (SPY NZ), Seven & I Holdings (3382 JP), ZEEKR (ZK US), Mayne Pharma (MYX AU), Smart Share.
Lowest spreads: Bright Smart Securities And (1428 HK), Dada Nexus (DADA US), Nissin Corp (9066 JP), Sinarmas Land (SML SP), Fujitsu General (6755 JP), Torii Pharmaceutical (4551 JP).

Reject Shop (TRS AU): 23rd June Vote On Dollarama’s Offer

By David Blennerhassett

Back on the 27th March, Reject Shop (TRS AU), a discount variety store, has entered into a Scheme Implementation Deed with Canadian outfit Dollarama (DOL CN).
Dollarama Offered A$6.68/share, a 112% premium to last close. The Offer does NOT require FIRB signing off. The Offer has the backing of TRS’ largest shareholder, Kin Group (20.8%).
The Scheme Booklet is now out, with a Scheme Meeting on the 23 June, and expected payment on or before the 22nd July. The IE (Kroll) says “fair & reasonable“.

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May 19

Daily Brief Japan: Sankyo Co Ltd, Seven & I Holdings, Nexon, Eisai Co Ltd, GMO Internet and more

By Smartkarma Daily Briefs | Daily Briefs, Japan

In today’s briefing:

[Japan Buybacks] ¥7.3trln of Buybacks Announced In the Last Month – Data on Each, Plus History
Merger Arb Mondays (19 May) – Seven & I, Nissin, Welcia/Tsuruha, Mayne, ESR, OneConnect, Frasers
How Nexon (3659) Got Its Mojo Back
Eisai Co Ltd (4523 JP): Leqembi at a Growth Juncture as New Markets Open Up; Margins Under Pressure
GMO Internet Placement: Extremely Overvalued at the Moment

[Japan Buybacks] ¥7.3trln of Buybacks Announced In the Last Month – Data on Each, Plus History

Buybacks are a central part of Corporate Japan’s effort to improve corporate/capital governance. Lots of cross-holders want/need to sell. Lots of companies want to reduce excess equity.
This earnings season has seen a LOT of new buybacks announced. ¥7.3trln in the last month and that doesn’t even include the biggest buybacks extant by March-end companies.
We are experimenting with new ways of displaying data/analytics for buybacks in Japan. To that end, we have a new tool. We hope users find it useful. We invite feedback.

Merger Arb Mondays (19 May) – Seven & I, Nissin, Welcia/Tsuruha, Mayne, ESR, OneConnect, Frasers

By Arun George

We summarise the latest spreads and newsflow of merger arb situations we cover across Hong Kong, Australia, New Zealand, Singapore, Japan, Indonesia, Malaysia, Philippines, Thailand and Chinese ADRs.
Highest spreads: Insignia Financial (IFL AU), ENN Energy (2688 HK), Smartpay Holdings (SPY NZ), Seven & I Holdings (3382 JP), ZEEKR (ZK US), Mayne Pharma (MYX AU), Smart Share.
Lowest spreads: Bright Smart Securities And (1428 HK), Dada Nexus (DADA US), Nissin Corp (9066 JP), Sinarmas Land (SML SP), Fujitsu General (6755 JP), Torii Pharmaceutical (4551 JP).

How Nexon (3659) Got Its Mojo Back

By Michael Allen

Nexon underperformed the software segment by 32% in the past 12 months, and analysts expect earnings to decline over the next 5 years.
But the company beat Q1 consensus EBIT estimates.by 54% and the stock lurched 17% the very next day.
Nexon’s business is immune to tariffs and tends to perform well in recessions. The company’s pipeline appears to be stronger than anyone imagined.

Eisai Co Ltd (4523 JP): Leqembi at a Growth Juncture as New Markets Open Up; Margins Under Pressure

By Tina Banerjee

In FY25, Eisai Co Ltd (4523 JP) reported 6% YoY growth in revenue, driven by 3Ls. Operating profit rose 2% YoY and net profit climbed 9% YoY to ¥46B.
Eisai guided for FY26 revenue of ¥790B, flat YoY. Revenue for Leqembi is expected to grow significantly (¥76.5B, up 73% YoY). Operating profit is expected to remain flat at ¥54.5B.
Leqembi’s potential market expansion holds promise, especially in the developed economies with the proportion of aged population gradually on the rise and with a dearth of suitable treatment options available.

GMO Internet Placement: Extremely Overvalued at the Moment

By Nicholas Tan

GMO Internet Group (9449 JP) is looking to sell its 33.4% stake in its subsidiary GMO Internet (4784 JP) to meet free-float requirements.
Shares are very overvalued at the moment and should be worth a mere fraction of its current trading value.
We have looked at the company’s deal dynamics in our earlier notes. In this note, we discuss the firm’s outlook as well as valuation.

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May 19

Daily Brief Singapore: Mirxes Holding, SGX and more

By Smartkarma Daily Briefs | Daily Briefs, Singapore

In today’s briefing:

Pre-IPO Mirxes Holding (PHIP Updates) – Some Points Worth the Attention
SGX Group (SGX SP): Likely More Listings. Triggered by Trade Tensions, Tax Perks

Pre-IPO Mirxes Holding (PHIP Updates) – Some Points Worth the Attention

By Xinyao (Criss) Wang

GASTROClear’s clinical application may be limited by doctors’ lack of sufficient trust/recognition. GASTROClear could mainly be commercialized in the non-clinical market in China first. However, the competition is more intense.
The dual pressure of lack of medical insurance reimbursement and higher pricing may lead to lower-than-expected market penetration.It’s not easy for Mirxes’ revenue to return to the level of 2021.
Short-Term valuation depends on market sentiment, but in long term, it still depends on the commercialization performance and the improvement of cash flow. The IPO pricing is expensive.

SGX Group (SGX SP): Likely More Listings. Triggered by Trade Tensions, Tax Perks

By Devi Subhakesan

Reported surge in listing interest on SGX (SGX SP) driven by escalating U.S.- China trade tensions and associated geopolitical uncertainties.
Singapore’s proactive policy toolkit announced in February 2025 offer issuers both cost savings and regulatory certainty and could play a role in attracting more companies to list in Singapore.
An uptick in listings on the Singapore Exchange (SGX) can set off a virtuous cycle, strengthen valuation multiples and lead to upward revisions to 2026 earnings forecasts.

💡 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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✓ Company Data and News
✓ Events & Webinars

May 19

Daily Brief Australia: Reject Shop and more

By Smartkarma Daily Briefs | Australia, Daily Briefs

In today’s briefing:

Reject Shop (TRS AU): 23rd June Vote On Dollarama’s Offer

Reject Shop (TRS AU): 23rd June Vote On Dollarama’s Offer

By David Blennerhassett

Back on the 27th March, Reject Shop (TRS AU), a discount variety store, has entered into a Scheme Implementation Deed with Canadian outfit Dollarama (DOL CN).
Dollarama Offered A$6.68/share, a 112% premium to last close. The Offer does NOT require FIRB signing off. The Offer has the backing of TRS’ largest shareholder, Kin Group (20.8%).
The Scheme Booklet is now out, with a Scheme Meeting on the 23 June, and expected payment on or before the 22nd July. The IE (Kroll) says “fair & reasonable“.

💡 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 19

Daily Brief India: Belrise Industries and more

By Smartkarma Daily Briefs | Daily Briefs, India

In today’s briefing:

Belrise Industries IPO: Strategic OEM Partner, Deleveraging Move Faces Structural Headwinds

Belrise Industries IPO: Strategic OEM Partner, Deleveraging Move Faces Structural Headwinds

By Rahul Jain

Belrise Industries, founded by the Badve family, is a leading auto component maker launching its Rs2,150 crore IPO from May 21–23, 2025, at a price band of Rs85–90.
It supplies key chassis and metal parts to top OEMs like Bajaj Auto, Hero MotoCorp, and HMSI, playing a critical role across ICE and EV platforms.
While most proceeds are earmarked for debt repayment, high working capital needs suggest leverage could rebuild as the business scales.

💡 Before it’s here, it’s on Smartkarma

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✓ Company Data and News
✓ Events & Webinars

May 19

Daily Brief China: BYD, Alibaba Group Holding , Cosco Shipping Development, Midea Group, China Literature, Contemporary Amperex Technology, Tencent, KE Holdings and more

By Smartkarma Daily Briefs | China, Daily Briefs

In today’s briefing:

HSTECH Index Rebalance: BYD (1211 HK) To Replace China Literature (772 HK) As Trade Hits US$6bn
Alibaba (BABA): 4Q25, Main Business Growth Recovered to 12% YoY, Buy
A/H Premium Tracker (To 16 May 2025): AH Premia Contract Small Again. BYD and CMB Go Negative.
Hang Seng Index (HSI) Rebalance: Midea (300 HK) & ZTO Express (2057 HK) Added; Inching Towards a 100
[Quiddity Index] Six Hang Seng Index Family Indices: Flows for June 6 Rebal
Weekly Deals Digest (18 May) – CATL, Hengrui, ESR, OneConnect, Mayne, Nissin, Nippon Road, TechnoPro
HK Connect SOUTHBOUND Flows (To 16 May 2025); Volumes Pick Up, Net Flows Drop; Banks Still Strong
CATL (3750 HK): Fast-Entry to Global Indices Unlikely Despite $150B Market Cap
KE (BEKE): In 1Q25, Rental and New Home Revenues Up by 94% and 64%
ECM Weekly (19 May 2025) – CATL, Hengrui, Green Tea, SMPP, Unisound, Renesas, Genda, GMO, PayTM

HSTECH Index Rebalance: BYD (1211 HK) To Replace China Literature (772 HK) As Trade Hits US$6bn

As expected, BYD (1211 HK) will be added to the Hang Seng TECH Index (HSTECH INDEX) in June following the launch of God’s Eye, its Advanced Driver-Assistance System (ADAS).
BYD (1211 HK)‘s inclusion results in China Literature (772 HK) being deleted from the index. China Literature stock should drop over the near-term.
Estimated one-way turnover at the rebalance is 13% resulting in a round-trip trade of HK$46.5bn (US$5.95bn). There are 16 stocks that have at least 1x ADV to trade from passives.

Alibaba (BABA): 4Q25, Main Business Growth Recovered to 12% YoY, Buy

Management claimed 4Q25 total revenue should grow by 10% YoY excluding two sold subsidiaries.
The growth rate of customer management revenue rose to two digits in 4Q25.
The main business margin was stable and most of the minor business margins rose YoY in 4Q25.

A/H Premium Tracker (To 16 May 2025): AH Premia Contract Small Again. BYD and CMB Go Negative.

AH spreads are slightly narrower, but performance is concentrated in fewer names and broad spread volatility is up. BYD (1211 HK) AH is negative now, maybe on HSTECH inclusion expectations.
I didn’t expect much out of Geneva last weekend. I was wrong in that there was a big announcement, but maybe not wrong because content was pretty slim.
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.

Hang Seng Index (HSI) Rebalance: Midea (300 HK) & ZTO Express (2057 HK) Added; Inching Towards a 100

Midea Group (300 HK) and ZTO Express Cayman (2057 HK) will be added to the Hang Seng Index (HSI INDEX) in June to take us up to 85 index constituents.
Estimated one-way turnover is 2.9% and the estimated round-trip trade is HK$11.3bn (US$1.44bn) with over 1x ADV to trade in the adds and in one stock with a FAF increase.
There could be a short-term drop in the AH premium for Midea Group while this inclusion ensures ZTO Express Cayman is a member of all major indices where eligible.

[Quiddity Index] Six Hang Seng Index Family Indices: Flows for June 6 Rebal

In this insight, we present the flows to buy and sell for each of the top 6 Hang Seng Index Family indices based on estimated tracking AUM.
The indices: Hang Seng Index (HSI), HS Tech Index (HSTECH), HS China Enterprise Index (HSCEI), HS HK Biotech (HSHKBIO), HS Internet & Infotech (HSIII), and HS Healthcare Index (HSHCI).
By Quiddity calculations based on the 16 May close, there is one-way flow across these six indices of HK$34,556,596,089.99 (approximately), to trade on 6 June.

Weekly Deals Digest (18 May) – CATL, Hengrui, ESR, OneConnect, Mayne, Nissin, Nippon Road, TechnoPro

By Arun George

A weekly summary of key developments across ECM and Event-Driven names tracked by us across Hong Kong, Australia, New Zealand, Singapore, Japan, Indonesia, Malaysia, Thailand, Korea, India and Chinese ADRs.
ECM developments: Contemporary Amperex Technology (3750 HK) and Jiangsu Hengrui Pharmaceuticals (1276 HK) launch H Share listings.
Event-Driven developments: ESR Group (1821 HK), Oneconnect Financial Technology (6638 HK), Mayne Pharma (MYX AU), Nissin Corp (9066 JP), Nippon Road (1884 JP), Technopro Holdings (6028 JP).

HK Connect SOUTHBOUND Flows (To 16 May 2025); Volumes Pick Up, Net Flows Drop; Banks Still Strong

Gross SOUTHBOUND volumes averaged more than HK$100bn a day this past week, which gets us back above halfway to the peak earlier this spring. Net flows were negative HK$8bn+.
Among the top buys as a percentage of volume, financials, utilities, and energy REALLY stand out. Among top sells, industrials, info tech, and consumer discretionary are tops.
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.

CATL (3750 HK): Fast-Entry to Global Indices Unlikely Despite $150B Market Cap

By Dimitris Ioannidis

CATL (3750 HK) is forecasted to fail the fast-entry float cap threshold of both global indices due to unlisted shares, locked cornerstone investors and domestic offering.
Stock price needs to rise by ~30% on the first trading day to achieve fast-entry to one global index. Offer price is 263HKD and the adjustment option has been exercised.
The security is expected to be added to Global Standard in August 2025 and to Global All-World in December 2025, with an elevated free float following the 6-month cornerstone lock-up.

KE (BEKE): In 1Q25, Rental and New Home Revenues Up by 94% and 64%