Smartkarma Daily Briefs

• KRX updated the Value-Up Index with five new names: KB Financial, Hana Financial, KT Corp, SK Telecom, and Hyundai Mobis, with Mobis replacing JB Financial, surprising the market.
• This is the first rebalancing, packed into one day, so expect notable price action. Reverse moves could also follow Thursday as pre-positioned trades unwind, so monitor price action closely.
• Even after Thursday’s rebalancing, half of the funds, especially from the National Pension Service, will flow into high-yield stocks, likely driving significant price moves through early next year.

• In this insight, we provide a list of 70 prominent companies in Asia that could complete their IPOs in Asia next year. 
• This is a comprehensive, REFERENCE GUIDE to help clients so that they could get a broad view of the major IPOs that could get completed in Asia in 2025.
• Some of the most prominent potential IPOs in Asia next year include Reliance Jio, LG Electronics India, Shein, Sony Financial Group, Didi Global, and Okada Manila.

• Both HSI and HSCEI show characteristics of being short gamma at higher strikes highlighted by Mondays pop in spot and vol in both markets.
• Implied vol did a complete round-trip closing virtually unchanged from last week despite spot holding on to modest gains on the week and large high – low range.
• Up-Strike Calls look to have been added in both markets which will help maintain the positive spot vol correlation.

• Signet Jewelers’ third quarter fiscal 2025 earnings report presents a nuanced outlook on the company’s current standing and its future trajectory.
• The company has demonstrated a mixed performance, showing improvements in certain areas while encountering challenges in others.
• One of the notable positives from the report is Signet’s continued sales momentum, as indicated by the sixth consecutive quarter of sequential same-store sales improvement, despite an overall decline of 0.7% in same store sales.

• Wayfair has 4k primary customers and multiple brands under their umbrella
• Their business model involves offering a wide selection of furniture and home goods at competitive prices
• Wayfair is positioned to benefit from current market conditions and has potential for growth and profitability in the coming years

This content is sourced through publicly available sources and has been machine generated. Information displayed is for general informational purposes only. This article was originally published 3 months ago on Value Investors Club.

• In this insight we chart the progress of China’s tourism recovery vs pre-pandemic levels
• In October 2024, Chinese outbound (international) demand finally reached pre-Covid levels
• The recovery in domestic activity was completed earlier and more quickly than outbound

Borussia Dortmund is one of the leading football clubs in Europe, with a strong track record in its domestic league, which has enabled it to feature regularly in Europe’s leading club competitions. Its relatively consistent success and, therefore, high level of media exposure means it is well positioned to benefit from structural growth drivers such as increasing global interest in football, which will support the growth of its multiple revenue streams. Perhaps most importantly, the club’s sporting success has been achieved with low levels of investment versus its peers, which reflects management’s financial prudence.

• Neutral view on recent deal: In the short term, it may pose downside risk of 2.8% and 1.1% to the 2025-26E profit forecasts due to an immediate increase in interest expenses from higher debt.
• However, revenue generation is expected to begin in 2Q26E. Medium-term risks may arise from intensified competition in the same area, but the long-term prospects are positive for CPAXT, as the project could provide stable income if executed as planned.
• Maintain a Neutral recommendation: The valuation metrics reflect a neutral view on the current fundamentals (the stock price sees 2.4% downside risk from its fair value) and the long- term growth prospects (profit growth expected at a 14% CAGR over the next two years). 

• We are reiterating our Buy rating, projections and $5.50 price target for Vera Bradley after visiting main line and outlet stores in Connecticut and Long Island.
• We believe, with an emphasis on key price points, compelling sale items and a focus on winning collaborations (Wicked and Disney), Vera Bradley is well positioned to drive gifting purchases for Xmas shoppers and, continue to attract curious customers attracted to the company’s Project Restoration driven new offerings and looks.
• Given low expectations and solid pricing power, we believe there remains some upside to 4Q and we reiterate our Buy rating and $5.50 price target for BBW.