Smartkarma Daily Briefs

• Due to NAV accuracy issues, locals favor sigma plays within ±2σ bands over classic stub trades, with aggressive traders rotating longs and shorts around ±1σ.
• Avoid trending divergence periods; these eight targets usually mean-revert well, but H1 this year showed unusually deep divergence—important to consider for current sigma plays.
• As of today, no 20-day MA sigmas trigger trades, but holding company strength drives price ratios—a trend likely lasting post-election—suggesting ±2σ sigma plays with longs in holdcos.

• On 15 May, Hanjin KAL Corp (180640 KS) announced that it will contribute 440,044 shares of its treasury stock to the company’s welfare fund, representing 0.7% of its common shares. 
• This is a clear indication of Hanjin Kal Chairman Cho Won-Tae and his allies launching a management rights defense against Hoban Group which recently increased its stake in Hanjin Kal. 
• The higher probability scenario is for Hanjin Kal’s shares to retrace down to below 100,000 won level as a full blown M&A fight is not likely in the near future. 

• Blackbuck (1355652D IN) raised around US$130m in its India IPO in Nov 2024. The lockup on its pre-IPO investors is set to expire soon.
• Zinka Logistics (Blackbuck) is India’s largest digital platform for truck operators (in terms of users), with 27.52% of India’s truck operators transacting on its platform in FY24, as per Redseer.
• In this note, we will talk about the lockup dynamics and possible placement.

• Ready -Mix Cement market leader in Singapore which is focused on operational efficiency.
• Remains committed to innovation, technology and sustainability of environment by reducing carbon emissions
• Focus on improving ROE, asset light and with reasonable earnings earnings visibility 

• Contemporary Amperex Technology Co. Ltd. (CATL) said its new electric vehicle (EV) battery technologies increase a car’s range, lower charging times and keep working at extremely low temperatures.
• The improvements that CATL touted in its announcement Monday aim to alleviate some of the major issues seen as hindering the uptake of EVs, such as “range anxiety” — the concern that a car’s battery might run out on longer drives.
• The highlight of the announcement was the Freevoy dual-power battery system, which divides a single battery pack into two independent energy “zones” — one to power a car for running around town and another that kicks in for longer trips that might test the vehicle’s range.

• GE’s old headquarters in Schenectady, NY has been a significant part of the company’s history, but has seen a decline in recent years
• GE Vernova, a spinoff of General Electric, has seen success in the electrification business and is capitalizing on the surge in demand for energy
• GE Vernova CEO Scott Strazik, a longtime company man, is confident about the company’s future and sees it as just the beginning of an investment super cycle

This content is sourced through publicly available sources and has been machine generated. Information displayed is for general informational purposes only.

• In today’s Morning Views publication we comment on developments of the following high yield issuers: GMR Hyderabad, China Vanke, Indofood CBP, Pertamina (Persero), Rakuten Group
• Treasuries fell, with yields rising yesterday as the market continued to dial back expectations for Fed rate cuts. Fed-dated OIS were pricing in 49 bps of rate cuts in 2025 as of yesterday (vs. 54 bps as of Tuesday).
• The yield on the 2Y UST rose 5 bps to 4.05%, while the yield on the 10Y UST expanded 7 bps to 4.54%. Equities edged higher, with the S&P 500 and Nasdaq up 0.1% and 0.7%, respectively.

• Defensive growth in motion – We view Q1-4 FY3/25 results as indicating that Japan Elevator Services (JES) reinforced its position as a structurally growing, non-cyclical business with resilient cash flows and strong earnings visibility.
• Contract growth accelerated at the high-margin Maintenance segment, rising 13.3% YoY, and operational leverage resulted in OPM expansion YoY, signifying a scalable business model.
• With increasing engineer productivity improving margin dynamics, nationwide market expansion driving sales, and inflationary cost pressures reinforcing JES’s competitive advantage to gain market share, we believe the earnings outlook is one of sustained compounding growth.

• EMCOR Group, Inc. recently reported robust first-quarter results for 2025, showcasing strong revenue growth and solid performance across many of its business segments.
• The company’s revenue increased by 12.7% year over year to $3.87 billion, with a significant contribution from the Electrical and Mechanical Construction segments, which grew by 42.3% and 10.2%, respectively.
• This growth was driven by heightened activity in sectors like data centers, healthcare, and industrial projects, reflecting organic expansion and the strategic acquisition of Miller Electric.

• The company reported FY03/25 revenue of JPY59.2bn (+23.9% YoY) and operating profit of JPY5.7bn (+29.1% YoY).
• FY03/26 forecast includes revenue of JPY84.5bn (+42.7% YoY) and operating profit of JPY7.5bn (+31.7% YoY).
• The medium-term plan targets JPY90.0bn revenue by FY03/28, with a 15.0% CAGR and 40% payout ratio.

• Due to NAV accuracy issues, locals favor sigma plays within ±2σ bands over classic stub trades, with aggressive traders rotating longs and shorts around ±1σ.
• Avoid trending divergence periods; these eight targets usually mean-revert well, but H1 this year showed unusually deep divergence—important to consider for current sigma plays.
• As of today, no 20-day MA sigmas trigger trades, but holding company strength drives price ratios—a trend likely lasting post-election—suggesting ±2σ sigma plays with longs in holdcos.

• On 15 May, Hanjin KAL Corp (180640 KS) announced that it will contribute 440,044 shares of its treasury stock to the company’s welfare fund, representing 0.7% of its common shares. 
• This is a clear indication of Hanjin Kal Chairman Cho Won-Tae and his allies launching a management rights defense against Hoban Group which recently increased its stake in Hanjin Kal. 
• The higher probability scenario is for Hanjin Kal’s shares to retrace down to below 100,000 won level as a full blown M&A fight is not likely in the near future. 

• Blackbuck (1355652D IN) raised around US$130m in its India IPO in Nov 2024. The lockup on its pre-IPO investors is set to expire soon.
• Zinka Logistics (Blackbuck) is India’s largest digital platform for truck operators (in terms of users), with 27.52% of India’s truck operators transacting on its platform in FY24, as per Redseer.
• In this note, we will talk about the lockup dynamics and possible placement.

• Ready -Mix Cement market leader in Singapore which is focused on operational efficiency.
• Remains committed to innovation, technology and sustainability of environment by reducing carbon emissions
• Focus on improving ROE, asset light and with reasonable earnings earnings visibility 

• Contemporary Amperex Technology Co. Ltd. (CATL) said its new electric vehicle (EV) battery technologies increase a car’s range, lower charging times and keep working at extremely low temperatures.
• The improvements that CATL touted in its announcement Monday aim to alleviate some of the major issues seen as hindering the uptake of EVs, such as “range anxiety” — the concern that a car’s battery might run out on longer drives.
• The highlight of the announcement was the Freevoy dual-power battery system, which divides a single battery pack into two independent energy “zones” — one to power a car for running around town and another that kicks in for longer trips that might test the vehicle’s range.

• GE’s old headquarters in Schenectady, NY has been a significant part of the company’s history, but has seen a decline in recent years
• GE Vernova, a spinoff of General Electric, has seen success in the electrification business and is capitalizing on the surge in demand for energy
• GE Vernova CEO Scott Strazik, a longtime company man, is confident about the company’s future and sees it as just the beginning of an investment super cycle

This content is sourced through publicly available sources and has been machine generated. Information displayed is for general informational purposes only.

• In today’s Morning Views publication we comment on developments of the following high yield issuers: GMR Hyderabad, China Vanke, Indofood CBP, Pertamina (Persero), Rakuten Group
• Treasuries fell, with yields rising yesterday as the market continued to dial back expectations for Fed rate cuts. Fed-dated OIS were pricing in 49 bps of rate cuts in 2025 as of yesterday (vs. 54 bps as of Tuesday).
• The yield on the 2Y UST rose 5 bps to 4.05%, while the yield on the 10Y UST expanded 7 bps to 4.54%. Equities edged higher, with the S&P 500 and Nasdaq up 0.1% and 0.7%, respectively.

• Defensive growth in motion – We view Q1-4 FY3/25 results as indicating that Japan Elevator Services (JES) reinforced its position as a structurally growing, non-cyclical business with resilient cash flows and strong earnings visibility.
• Contract growth accelerated at the high-margin Maintenance segment, rising 13.3% YoY, and operational leverage resulted in OPM expansion YoY, signifying a scalable business model.
• With increasing engineer productivity improving margin dynamics, nationwide market expansion driving sales, and inflationary cost pressures reinforcing JES’s competitive advantage to gain market share, we believe the earnings outlook is one of sustained compounding growth.

• EMCOR Group, Inc. recently reported robust first-quarter results for 2025, showcasing strong revenue growth and solid performance across many of its business segments.
• The company’s revenue increased by 12.7% year over year to $3.87 billion, with a significant contribution from the Electrical and Mechanical Construction segments, which grew by 42.3% and 10.2%, respectively.
• This growth was driven by heightened activity in sectors like data centers, healthcare, and industrial projects, reflecting organic expansion and the strategic acquisition of Miller Electric.

• The company reported FY03/25 revenue of JPY59.2bn (+23.9% YoY) and operating profit of JPY5.7bn (+29.1% YoY).
• FY03/26 forecast includes revenue of JPY84.5bn (+42.7% YoY) and operating profit of JPY7.5bn (+31.7% YoY).
• The medium-term plan targets JPY90.0bn revenue by FY03/28, with a 15.0% CAGR and 40% payout ratio.