Smartkarma Daily Briefs

Apeejay Surrendra Park Hotel (PARK IN), With a sharp pivot post-IPO, it has deleveraged, scaled Flurys to 100 outlets, and launched ARR-led palace properties, all while staying asset-light and cash-smart.
F&B now contributes nearly half of revenues, ARRs are climbing, and legacy land is being monetised to fund INR 500 crore of capex without debt.
Earlier seen as a traditional hotel chain, Park now to be looked as a brand with strong visibility, smart capital use, and fresh retail momentum.

Update- SAMHI Hotels: Strategic Partnership with GIC

SAMHI Hotels (SAMHI IN) has entered into a strategic partnership with GIC, a global institutional investor, to establish a joint venture platform for upscale and higher hotel assets in India.
This transaction will significantly reduce SAMHI’s debt, enhance its financial flexibility, and provide access to up to $300 million in future capital for further expansion in high-demand upscale hotel sector.
The partnership with GIC strengthens SAMHI’s growth outlook, boosts profitability through debt reduction, and positions the company to capitalize on the rapidly expanding upscale hospitality market in India.

Dorf-Ketal Chemicals India Pre-IPO – The Negatives – Elevated Borrowings and Tariff Uncertainty

By Akshat Shah

Dorf-Ketal Chemicals Ltd (998552Z IN) (DKCI) is looking to raise about US$579m in its upcoming India IPO.
DKCI is an R&D and innovation-focused global manufacturer and supplier of specialty chemicals, catering to hydrocarbons and industrial supply chains, and customers with diverse applications across various industrial segments.
In this note, we talk about the not-so-positive aspects of the deal.

Ather Energy IPO – Still Not Cheap Enough

Ather Energy is now looking to raise about US$350m in its upcoming India IPO.
Ather is a pure play electric vehicle company in India designing and developing E2Ws, battery packs, charging infrastructure, associated software and accessories, also manufacturing battery packs and assembling E2Ws in-house.
In our previous note, we looked at the company’s past performance. In this note, we talk about the updates since then and valuations.

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Apr 25

Daily Brief China: Dickson Concepts Intl, Pop Mart International Group L, Wanda Hotel Development, CiDi Inc, China Hongqiao, Blackrock Inc and more

By Smartkarma Daily Briefs | China, Daily Briefs

In today’s briefing:

Poon Moves On Dickson Concepts (113 HK)’s Cash Hoard?
Pop Mart (9992 HK): Eye-Popping Growth. Is It the Next Pokémon for Kidults?
Dickson Concepts (113 HK): Controlling Shareholder to Privatise a Negative EV Play?
Wanda Hotel (169 HK) To Offload Hotel Management Arm
CiDi Pre-IPO – Promising Company Amid Strong Industry Tailwinds & Narrowing Losses
Lucror Analytics – Morning Views Asia
Asia Real Estate Tracker (24-Apr-2025): Lone Star buys Yokohama block for hotel project.

Poon Moves On Dickson Concepts (113 HK)’s Cash Hoard?

Dickson Concepts Intl (113 HK) (DC), which is principally engaged in the sale of luxury goods business, is suspended pursuant to the Takeovers Code.
DC’s Chairman, Dickson Poon (& spouse), hold 60.5%. Super-net-cash rich DC is trading in sync with historical metrics. 1H25 (Mar Y/E) net profit dropped 40.1%. Shares are roughly flat yoy.
Given DC’s cash hoard, taking the company private makes sense. I doubt Poon is seeking to exit his stake.

Pop Mart (9992 HK): Eye-Popping Growth. Is It the Next Pokémon for Kidults?

By Devi Subhakesan

Pop Mart International Group L (9992 HK) ’s stock has nearly doubled in three months, fueled by surging revenue and the breakout popularity of its Labubu dolls.
Driven by strong international expansion and solid omni-channel demand in its home market, Pop Mart reported over 165% revenue growth in 1Q2025 compared to the same period last year.
Investors remain split on whether Pop Mart’s unconventional products and marketing are driven by lasting fandom or just a passing trend.

Dickson Concepts (113 HK): Controlling Shareholder to Privatise a Negative EV Play?

Dickson Concepts Intl (113 HK) has entered a trading halt “pending the release of an announcement pursuant to The Code on Takeovers and Mergers, which constitutes inside information of the Company.”
The controlling shareholder (Sir Poon) is likely seeking to launch a privatisation through a Bermuda scheme, particularly as the shares trade below net cash.
While no disinterested shareholder holds a blocking stake, the headcount test and a decent AGM participation rate necessitate an attractive offer. The potential offer price range is HK$5.60-9.24.

Wanda Hotel (169 HK) To Offload Hotel Management Arm

Wanda Hotel Development (169 HK), 65.05% held by Wang Jianlin, is selling its hotel property arm to Tencent (700 HK) and Trip.com (9961 HK)-backed Tongcheng Travel Holdings (780 HK).
Wang Jianlin’s cash-strapped Dalian Wanda Group has been offloading assets such as the $8.3bn sale of its mall management business to a PAG-led consortium in March last year.
Wanda Hotel proposes distributing all or part of the proceeds from the sale. Given Wang’s controlling shareholding, I’d tilt towards the former.

CiDi Pre-IPO – Promising Company Amid Strong Industry Tailwinds & Narrowing Losses

By Troy Wong

CiDi Inc. is looking to raise about US$200m in its upcoming Hong Kong IPO.
CiDi is a leading autonomous driving technology provider for commercial vehicles in China, with a strong foothold in the autonomous mining segment.
The company stands to benefit from sustained industry tailwinds. While still in its early stages, CiDi has made progress in narrowing its losses.

Lucror Analytics – Morning Views Asia

By Trung Nguyen

In today’s Morning Views publication we comment on developments of the following high yield issuers: China Hongqiao, Softbank Group, Vedanta Resources, China Oil & Gas, Biocon Biologics
In the US, new home sales jumped 7.4% m-o-m (1.3% e / 3.1% revised p) to an annualised 724 k units in March, driven by a surge in home sales in the South. The March (final) building permits rose 0.5% to an annualised 1.47 mn units.
Separately, the S&P manufacturing PMI edged up to 50.7 (49.0 e / 50.2 p), while the services PMI fell to 51.4 (52.6 e / 54.4 p). The composite PMI declined to 51.2 (52.0 e / 53.5 p).

Asia Real Estate Tracker (24-Apr-2025): Lone Star buys Yokohama block for hotel project.

By Asia Real Estate Tracker

Lone Star acquires Yokohama apartment block from Mapletree for hotel project, expanding their investment portfolio in the real estate sector.
Former executives from BlackRock and CapitaLand, including Simon Treacy, are taking on leadership roles in the energy startup PolarBlue.
It is important to stay positive and keep moving forward in the face of challenges, as success is attainable with perseverance and determination.

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Apr 25

Daily Brief Japan: Fujitsu Ltd, Gunma Bank, Nidec Corp, Jafco Co Ltd, Ono Sokki, TSE Tokyo Price Index TOPIX and more

By Smartkarma Daily Briefs | Daily Briefs, Japan

In today’s briefing:

Fujitsu (6702) – Earnings/Guidance OK, Margins Better, But New Quiddity Buyback Data Tool 🥳
Gunma Bank (8334 JP): Daishi Hokuetsu (7327 JP) Share Exchange to Establish a Top Regional Bank
Nidec (6594) | Chasing Trends to Fiscal Discipline
Jafco Co Ltd (8595 JP): Full-year FY03/25 flash update
Ono Sokki (6858 JP): Q1 FY12/25 flash update
It Is Not a Question of Whether Investment in Growth or Shareholder Return Is Better

Fujitsu (6702) – Earnings/Guidance OK, Margins Better, But New Quiddity Buyback Data Tool 🥳

By Travis Lundy

Fujitsu Earnings. Revenues +2.1%, OP +77.5%, Pretax +65.1%, Net -13.0% (basis effect from FY23 one-offs). Forecast? Revs -2.8%, OP/adj +35.8%/+17.2%, Net/adj +77.4%/+3.7%. All guided measures shy vs the Street consensus.
The company presented a progress update on its Medium-Term Management Plan. Core profits are better. Things are improving.
The company also announced a big 11-month ¥170bn buyback. Last year’s was ¥180bn (completed 24 March). Worth checking out the details (and our brand-new buyback tool)

Gunma Bank (8334 JP): Daishi Hokuetsu (7327 JP) Share Exchange to Establish a Top Regional Bank

Gunma Bank (8334 JP) and Daishi Hokuetsu Financial Group (7327 JP)/DHFG have announced an MoU to establish one of the largest regional banks in Japan by 1 April 2027.
The transaction involves delisting Gunma through a share exchange with DHFG. A definitive agreement is expected around March 2026.
The plan is long-dated. The lack of a controlling shareholder necessitates a “fair” exchange ratio. My estimated Gunma/DHFG exchange ratio range is 0.38-0.39x.

Nidec (6594) | Chasing Trends to Fiscal Discipline

By Mark Chadwick

Nidec beat Q4 expectations but offered muted FY3/26 guidance, with flat sales and modest profit growth amid macro and tariff uncertainty.
New CEO Kishida shifts focus from top-line ambition to margin discipline, targeting ¥150bn in cost cuts over three years.
Once a high-growth play, Nidec now trades at value multiples — 1.5x book — offering a more grounded path to shareholder returns.

Jafco Co Ltd (8595 JP): Full-year FY03/25 flash update

Revenue increased by 21.4% YoY to JPY29.7bn, with operating profit rising 53.1% YoY to JPY12.5bn.
Capital gains reached JPY12.7bn, a 60.0% YoY increase, driven by IPO-related share sales and unlisted shares.
Total assets under management stood at JPY458.4bn, with JPY198.5bn subject to management fees as of end-March 2025.

Ono Sokki (6858 JP): Q1 FY12/25 flash update

Ono Sokki’s FY12/24 sales rose 23.2% YoY, with operating profit up 266.7% YoY, despite a 12.0% YoY order decline.
Measuring Equipment segment’s operating profit dropped 74.4% YoY due to increased personnel expenses for overseas sales expansion.
Custom Order Test Equipment and Service segment’s operating profit surged 555.1% YoY, driven by increased sales and fixed cost absorption.

It Is Not a Question of Whether Investment in Growth or Shareholder Return Is Better

By Aki Matsumoto

While the absolute amount of share repurchases has increased, many companies face challenges in using cash, given the slow growth in ROE and depth of equity capital over a decade.
While growth investment should increase corporate value, it’s important for managers to manage to earn returns commensurate with investment risk, and to return cash to shareholders without taking unnecessary risks.
The question is not whether investment in growth or shareholder return is better, but whether the company was managing its business in a shareholder-friendly manner.

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Apr 25

Most Read: Panasonic Corp, Evolution Mining, Samsung C&T, Pop Mart International Group L, Fujitsu Ltd, Kakao Corp, DN Solutions, Bank Jago Tbk PT, Gunma Bank and more

By Smartkarma Daily Briefs | Daily Briefs, Most Read

In today’s briefing:

Solactive Global Lithium Index Rebalance: Passive Flows Next Week
Evolution Mining (EVN AU): Global Index Inclusion in May as Gold Rallies
Korea Dems’ Surprise Proposal: Separate Tax for Dividends Over 35% Payout
Pop Mart (9992 HK): Eye-Popping Growth. Is It the Next Pokémon for Kidults?
Fujitsu (6702) – Earnings/Guidance OK, Margins Better, But New Quiddity Buyback Data Tool 🥳
Kakao Corp Placement – Momentum Isn’t Great but It Is a Small Deal
DN Solutions IPO – Tariffs, Peer Correction Don’t Help
IDX30/LQ45/IDX80 Index Rebalance: Few Changes
Gunma Bank (8334 JP): Daishi Hokuetsu (7327 JP) Share Exchange to Establish a Top Regional Bank
DOGE Didn’t Dent Resilience

Solactive Global Lithium Index Rebalance: Passive Flows Next Week

Solactive has announced the review results for the Global Lithium Index. There are no constituent changes for the index but there will be capping changes for a few stocks.
Estimated one-way turnover is 10.8% and will result in a round-trip trade of US$208m. There are some stocks with over 0.5x ADV to trade.
The index has been in a secular downtrend over the last few years and there have been big redemptions from ETFs tracking the index.

Evolution Mining (EVN AU): Global Index Inclusion in May as Gold Rallies

Evolution Mining‘s stock price has moved higher over the last year as Gold has gone on a big run. The increased market cap should result in a global index inclusion.
Evolution Mining (EVN AU) has performed in line with its peers over the last year and trades in line with the group on most valuation parameters.
Positioning has jumped in Evolution Mining (EVN AU) and its peers over the last couple of months. The index inclusion could result in outperformance over the next few weeks.

Korea Dems’ Surprise Proposal: Separate Tax for Dividends Over 35% Payout

By Sanghyun Park

The bill submitted by the Democratic Party today highlights that separate taxation on dividend income applies only to dividends from companies with a 35% payout ratio or higher.
We might see re-rating on dividend stocks with solid cash flow but below 35%, especially banks over telcos. Holdcos like Samsung C&T, LG, and Hyundai Glovis could attract attention too.
Dark horses like NAVER, with earnings potential, and Samsung Electronics, currently at 25%, could attract attention if they increase payouts to 35%.

Pop Mart (9992 HK): Eye-Popping Growth. Is It the Next Pokémon for Kidults?

By Devi Subhakesan

Pop Mart International Group L (9992 HK) ’s stock has nearly doubled in three months, fueled by surging revenue and the breakout popularity of its Labubu dolls.
Driven by strong international expansion and solid omni-channel demand in its home market, Pop Mart reported over 165% revenue growth in 1Q2025 compared to the same period last year.
Investors remain split on whether Pop Mart’s unconventional products and marketing are driven by lasting fandom or just a passing trend.

Fujitsu (6702) – Earnings/Guidance OK, Margins Better, But New Quiddity Buyback Data Tool 🥳

By Travis Lundy

Fujitsu Earnings. Revenues +2.1%, OP +77.5%, Pretax +65.1%, Net -13.0% (basis effect from FY23 one-offs). Forecast? Revs -2.8%, OP/adj +35.8%/+17.2%, Net/adj +77.4%/+3.7%. All guided measures shy vs the Street consensus.
The company presented a progress update on its Medium-Term Management Plan. Core profits are better. Things are improving.
The company also announced a big 11-month ¥170bn buyback. Last year’s was ¥180bn (completed 24 March). Worth checking out the details (and our brand-new buyback tool)

Kakao Corp Placement – Momentum Isn’t Great but It Is a Small Deal

SK Telecom (017670 KS) plans to raise around US$280m via selling its 2%+ stake in Kakao Corp (035720 KS).
Kakao’s recent performance hasn’t been particularly great and the stock has been suffering even since the Kakao Pay management scandal in 2021.
In this note, we will run the deal through our ECM framework and talk about the recent updates.

DN Solutions IPO – Tariffs, Peer Correction Don’t Help

DN Solutions (298440 KS) (DNS) aims to raise around US$1.1bn in its Korea IPO via selling a mix of primary and secondary shares.
DNS is engaged in the manufacture and sale of machine tools and the business of automation solutions and services related thereto.
In our previous note, we looked at the company’s past performance and valuations. In this note, we talk about the updates since then.

IDX30/LQ45/IDX80 Index Rebalance: Few Changes

There is 1 constituent change for the IDX30 Index and 2 changes for the IDX80 Index to be implemented at the close on 30 April.
The largest passive flows are expected in Bank Rakyat Indonesia, Bank Jago Tbk PT, Bank Mandiri Persero, Bank Tabungan Negara Persero, Adaro Energy and Bukalapak.com PT Tbk.
There are only 4 days to implementation, so there could be relatively big moves on the changes to the IDX30 Index.

Gunma Bank (8334 JP): Daishi Hokuetsu (7327 JP) Share Exchange to Establish a Top Regional Bank

Gunma Bank (8334 JP) and Daishi Hokuetsu Financial Group (7327 JP)/DHFG have announced an MoU to establish one of the largest regional banks in Japan by 1 April 2027.
The transaction involves delisting Gunma through a share exchange with DHFG. A definitive agreement is expected around March 2026.
The plan is long-dated. The lack of a controlling shareholder necessitates a “fair” exchange ratio. My estimated Gunma/DHFG exchange ratio range is 0.38-0.39x.

DOGE Didn’t Dent Resilience

By Phil Rush

President Trump is restructuring the US state through tariff funding and efficiency savings. The former dominates focus, but we also see no evidence of problematic cuts.
Jobless claims are low and stable, including among federal workers and in states with the highest federal workforce shares. Government job openings haven’t even fallen.
DOGE cuts are often multi-year and in grants to others. It may have helped the deficit, and the efficiency is fundamentally desirable. Concerns about it still seem overblown.

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Apr 25

Daily Brief Consumer: Dickson Concepts Intl, Pop Mart International Group L, Sheng Siong, Apeejay Surrendra Park Hotel, Aspirasi Hidup Indonesia, Vince Holding, Ather Energy, Kimberly-Clark De Mexico-A, TSE Tokyo Price Index TOPIX and more

By Smartkarma Daily Briefs | Consumer, Daily Briefs

In today’s briefing:

Poon Moves On Dickson Concepts (113 HK)’s Cash Hoard?
Pop Mart (9992 HK): Eye-Popping Growth. Is It the Next Pokémon for Kidults?
Dickson Concepts (113 HK): Controlling Shareholder to Privatise a Negative EV Play?
Sheng Siong Group Ltd: Inflection Point for a Great Performer
The Beat Ideas: Park Hotels: Serving Long-Term Value
Aspirasi Hidup Indonesia (ACES IJ) – Growing AZKO Stores and Private Label
VNCE: Snapping the Store; Moving to Another Winning Season; Reiterate Buy, PT
Ather Energy IPO – Still Not Cheap Enough
Kimberly-Clark De Mexico-A – Actinver Research
It Is Not a Question of Whether Investment in Growth or Shareholder Return Is Better

Poon Moves On Dickson Concepts (113 HK)’s Cash Hoard?

Dickson Concepts Intl (113 HK) (DC), which is principally engaged in the sale of luxury goods business, is suspended pursuant to the Takeovers Code.
DC’s Chairman, Dickson Poon (& spouse), hold 60.5%. Super-net-cash rich DC is trading in sync with historical metrics. 1H25 (Mar Y/E) net profit dropped 40.1%. Shares are roughly flat yoy.
Given DC’s cash hoard, taking the company private makes sense. I doubt Poon is seeking to exit his stake.

Pop Mart (9992 HK): Eye-Popping Growth. Is It the Next Pokémon for Kidults?

By Devi Subhakesan

Pop Mart International Group L (9992 HK) ’s stock has nearly doubled in three months, fueled by surging revenue and the breakout popularity of its Labubu dolls.
Driven by strong international expansion and solid omni-channel demand in its home market, Pop Mart reported over 165% revenue growth in 1Q2025 compared to the same period last year.
Investors remain split on whether Pop Mart’s unconventional products and marketing are driven by lasting fandom or just a passing trend.

Dickson Concepts (113 HK): Controlling Shareholder to Privatise a Negative EV Play?

Dickson Concepts Intl (113 HK) has entered a trading halt “pending the release of an announcement pursuant to The Code on Takeovers and Mergers, which constitutes inside information of the Company.”
The controlling shareholder (Sir Poon) is likely seeking to launch a privatisation through a Bermuda scheme, particularly as the shares trade below net cash.
While no disinterested shareholder holds a blocking stake, the headcount test and a decent AGM participation rate necessitate an attractive offer. The potential offer price range is HK$5.60-9.24.

Sheng Siong Group Ltd: Inflection Point for a Great Performer

By Tan Yee Peng

We analysed Sheng Siong’s success over the years to see what its secret sauce is and what made the retailer so successful.
It has punched its weight above its competitors with a set of strong financial metrics. Its ability to generate free cash flow and achieve a high return on equity are truly impressive.
However, Sheng Siong is at an inflection point now as its revenue and net profit have stagnated since the pandemic.

The Beat Ideas: Park Hotels: Serving Long-Term Value

By Small Cap Consumer Research

Apeejay Surrendra Park Hotel (PARK IN), With a sharp pivot post-IPO, it has deleveraged, scaled Flurys to 100 outlets, and launched ARR-led palace properties, all while staying asset-light and cash-smart.
F&B now contributes nearly half of revenues, ARRs are climbing, and legacy land is being monetised to fund INR 500 crore of capex without debt.
Earlier seen as a traditional hotel chain, Park now to be looked as a brand with strong visibility, smart capital use, and fresh retail momentum.

Aspirasi Hidup Indonesia (ACES IJ) – Growing AZKO Stores and Private Label

By Angus Mackintosh

Aspirasi Hidup Indonesia (ACES IJ) released a solid set of FY2024 results, with SSSG and headline coming in ahead of expectations, with the company expanding its stores by 20 outlets.
The key concern from the results was the slower guidance for SSSG and sales for 2025, despite a more aggressive store rollout this year, especially outside Java.
Aspirasi Hidup Indonesia continues to push the AZKO brand with higher promotional spend, offset by the lack of royalties to ACES US. Guidance looks conservative and valuations look attractive historically.

VNCE: Snapping the Store; Moving to Another Winning Season; Reiterate Buy, PT

We are reiterating our Buy rating, projections and $6 price target for Vince Holding after visiting stores in Connecticut, Long Island and New Jersey.
We believe the company has continued to drive strong in-store results with impressive product offerings, continued expansion of the color palette, a deepening commitment to the men’s arena (and accessories), a focus on key tops and providing seasonal twists to key items such as sweaters and dresses.
Further, Vince continues to focus on full price selling, maintaining discipline during key events in terms of overall price cuts, which we believe will help overall returns.

Ather Energy IPO – Still Not Cheap Enough

Ather Energy is now looking to raise about US$350m in its upcoming India IPO.
Ather is a pure play electric vehicle company in India designing and developing E2Ws, battery packs, charging infrastructure, associated software and accessories, also manufacturing battery packs and assembling E2Ws in-house.
In our previous note, we looked at the company’s past performance. In this note, we talk about the updates since then and valuations.

Kimberly-Clark De Mexico-A – Actinver Research

By Actinver

Revenues of P$13.8bn grew only 0.3% YoY, below our estimates, with both Consumer and Away from Home declining (1% and 4%, respectively), vs our low growth estimates, while Exports grew 21%, better than expected and aided by FX tailwinds.
Margins were on average in line with our estimates, contracting YoY and with EBITDA margin of 25.1% in line with long-term target range of 25-27%.
At the gross margin level, results were underperforming amid a 410bps YoY contraction, yet EBIT and EBITDA margins contracted less and were slightly above our cautious estimates.

It Is Not a Question of Whether Investment in Growth or Shareholder Return Is Better

By Aki Matsumoto

While the absolute amount of share repurchases has increased, many companies face challenges in using cash, given the slow growth in ROE and depth of equity capital over a decade.
While growth investment should increase corporate value, it’s important for managers to manage to earn returns commensurate with investment risk, and to return cash to shareholders without taking unnecessary risks.
The question is not whether investment in growth or shareholder return is better, but whether the company was managing its business in a shareholder-friendly manner.

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Apr 25

Daily Brief TMT/Internet: Fujitsu Ltd, Kakao Corp, SK Hynix, Texas Instruments, United Microelectronics Corp, Intel Corp, United Microelectron Sp Adr, Koninklijke KPN, Ono Sokki and more

By Smartkarma Daily Briefs | Daily Briefs, TMT/Internet

In today’s briefing:

Fujitsu (6702) – Earnings/Guidance OK, Margins Better, But New Quiddity Buyback Data Tool 🥳
Kakao Corp Placement – Momentum Isn’t Great but It Is a Small Deal
SK Hynix Earnings Highlights Strong AI Dependence and Tariff Concerns
Texas Instruments: Surprisingly Good 1Q25, Good 2Q Guidance. End-Markets Are Back to YoY Growth.
UMC 1Q25 Is the Bottom, Consensus Is Low but the Stock at Average Valuations
Intel 1Q25: Work in Progress, More Unknowns than Clarity
SK Hynix: Record-High Profits, the Stock Gets Cheaper.
UMC Sees Broad Rebound in Demand Ahead But Is Demand Being Pulled Forward by Tariffs?
What’s News in Amsterdam – 24 April (ABN Amro | ASML | KPN | Fugro | SBM Offshore | Triodos Bank)
Ono Sokki (6858 JP): Q1 FY12/25 flash update

Fujitsu (6702) – Earnings/Guidance OK, Margins Better, But New Quiddity Buyback Data Tool 🥳

By Travis Lundy

Fujitsu Earnings. Revenues +2.1%, OP +77.5%, Pretax +65.1%, Net -13.0% (basis effect from FY23 one-offs). Forecast? Revs -2.8%, OP/adj +35.8%/+17.2%, Net/adj +77.4%/+3.7%. All guided measures shy vs the Street consensus.
The company presented a progress update on its Medium-Term Management Plan. Core profits are better. Things are improving.
The company also announced a big 11-month ¥170bn buyback. Last year’s was ¥180bn (completed 24 March). Worth checking out the details (and our brand-new buyback tool)

Kakao Corp Placement – Momentum Isn’t Great but It Is a Small Deal

SK Telecom (017670 KS) plans to raise around US$280m via selling its 2%+ stake in Kakao Corp (035720 KS).
Kakao’s recent performance hasn’t been particularly great and the stock has been suffering even since the Kakao Pay management scandal in 2021.
In this note, we will run the deal through our ECM framework and talk about the recent updates.

SK Hynix Earnings Highlights Strong AI Dependence and Tariff Concerns

By Jim Handy

SK hynix announced their second-highest revenue and operating profit for the first quarter of 2025
Much of the company’s performance is the result of its first-mover advantage and excellent execution in the HBM market
Two issues threaten the company: AI growth may stall, and tariff changes could interfere with the company’s global supply chain

Texas Instruments: Surprisingly Good 1Q25, Good 2Q Guidance. End-Markets Are Back to YoY Growth.

Demand for Auto & Industrial Semis was weak in 2024, Semi inventories remain high. But TXN beats 1Q guidance handsomely, 2Q is above expectations. TXN is back to YoY growth.
Critically, the Industrial market is recovering rapidly, Auto is back to modest growth. Management has some concerns that there could be re-stocking ahead of US import tariffs.
Consensus is too low but the stock is not cheap, has deflated from bubble levels but still not cheap.

UMC 1Q25 Is the Bottom, Consensus Is Low but the Stock at Average Valuations

1Q miss on non-ops and it’s the bottom for margins. Strong 2Q guidance but very low visibility into 2H: tariff uncertainty.
The JV with Intel for 12nm is proceeding well and demand is strong for Made in US 12nm. Some upside here for 2027
Consensus is probably a tad too low but the stock trading at average PEx ~12x. No arbitrage here.

Intel 1Q25: Work in Progress, More Unknowns than Clarity

1Q better than guided, 2Q a bit better but margins and net income remain very low. Reiteration that 1Q25 is the trough. Mngt mentions concerns about “the macro” and “tariffs”.
CEO emphasizes “it won’t be easy” to fix products, manufacturing, culture. Re-org is coming but no details. Lower Opex but “we have not yet identified what that means for headcount”.
Consensus continues to expect a swift runaround into 2026. Based on this optimistic forecast, the stock trades at 18x 2026 EPS. Too many unknowns.

SK Hynix: Record-High Profits, the Stock Gets Cheaper.

Same as last quarter: very strong AI / Server demand, capacity sold out for 12 months, HBM3E 12Hi becomes majority in 2Q25. HBM is the only driver.
Everything else remains weak. The conundrum remains: there is only 1 driver: AI / HBM. SK Hynix is the leading vendor, 12-18 months ahead of competitors. Is it sustainable?
The market thinks not sustainable and the stock is very cheap at 5x 2025 4x 2026 EPS. SK Hynix still trades like a cyclical stock – is it?

UMC Sees Broad Rebound in Demand Ahead But Is Demand Being Pulled Forward by Tariffs?

By Vincent Fernando, CFA

UMC guides for 2Q25 rebound, expecting 5–7% QoQ wafer shipment growth and margin recovery to ~30%, though 2H25 visibility remains low due to tariff and inventory uncertainty.
Intel Corp (INTC US) 12nm project progressing; Initial client orders planned for 2026E, with management leaving the door open to future partnerships—including rumored GLOBALFOUNDRIES (GFS US) collaboration—amid strategic diversification efforts.
Tariff-Driven pull-forward of orders IS happening but impact reportedly limited so far, with UMC noting mixed customer behavior; near-term demand strength appears broad-based. We have a Neutral rating for UMC.

What’s News in Amsterdam – 24 April (ABN Amro | ASML | KPN | Fugro | SBM Offshore | Triodos Bank)

By The IDEA!

In this edition: • ABN Amro | new CEO will focus on costs and the risk management model • ASML | wants free passage for machine parts; no evidence that China cracked the EUV puzzle • KPN | continued to deliver on its promises in 1Q25 • Fugro | 1Q25 trading update does not really contain much news • SBM Offshore | completes EUR 130m share buyback; starts new program of EUR 141m • Triodos Bank | facing new setback in its attempts to settle claims

Ono Sokki (6858 JP): Q1 FY12/25 flash update

Ono Sokki’s FY12/24 sales rose 23.2% YoY, with operating profit up 266.7% YoY, despite a 12.0% YoY order decline.
Measuring Equipment segment’s operating profit dropped 74.4% YoY due to increased personnel expenses for overseas sales expansion.
Custom Order Test Equipment and Service segment’s operating profit surged 555.1% YoY, driven by increased sales and fixed cost absorption.

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Apr 25

Daily Brief Industrials: Samsung C&T, Gaon Cable, Ryanair Holdings, CiDi Inc, Dorf-Ketal Chemicals Ltd, Nidec Corp and more

By Smartkarma Daily Briefs | Daily Briefs, Industrials

In today’s briefing:

Korea Dems’ Surprise Proposal: Separate Tax for Dividends Over 35% Payout
LS Cable Plans to Purchase Up To 70 Billion Won of Gaon Cable – Will It Take It Private?
Ryanair (RYA ID): Global Index Inclusion & EU Upweight Following Raised Foreign Ownership Limit
CiDi Pre-IPO – Promising Company Amid Strong Industry Tailwinds & Narrowing Losses
Dorf-Ketal Chemicals India Pre-IPO – The Negatives – Elevated Borrowings and Tariff Uncertainty
Nidec (6594) | Chasing Trends to Fiscal Discipline

Korea Dems’ Surprise Proposal: Separate Tax for Dividends Over 35% Payout

By Sanghyun Park

The bill submitted by the Democratic Party today highlights that separate taxation on dividend income applies only to dividends from companies with a 35% payout ratio or higher.
We might see re-rating on dividend stocks with solid cash flow but below 35%, especially banks over telcos. Holdcos like Samsung C&T, LG, and Hyundai Glovis could attract attention too.
Dark horses like NAVER, with earnings potential, and Samsung Electronics, currently at 25%, could attract attention if they increase payouts to 35%.

LS Cable Plans to Purchase Up To 70 Billion Won of Gaon Cable – Will It Take It Private?

By Douglas Kim

On 22 April, LS Cable & System announced that it plans to acquire up to 70 billion won worth of Gaon Cable.
If LS Cable purchases 70 billion won worth of Gaon Cable’s shares (7.4% stake at current price), its stake in the company would rise to 89%.
There are numerous options for Gaon Cable going forward including privatization or a merger with LS Cable.

Ryanair (RYA ID): Global Index Inclusion & EU Upweight Following Raised Foreign Ownership Limit

By Dimitris Ioannidis

Ryanair Holdings (RYA ID) raised its foreign ownership limit (FOL) from 50% to 80% on 7 March 2025, due to increasing EU national holdings over the last years.
The security is forecasted to be added to global standard in May and global all-world in September 2025 as it now has eligible foreign room after the FOL increase.
The security’s free float is expected to rise from 50% to 80% in stoxx europe 600 and euro stoxx at the June 2025 review.

CiDi Pre-IPO – Promising Company Amid Strong Industry Tailwinds & Narrowing Losses

By Troy Wong

CiDi Inc. is looking to raise about US$200m in its upcoming Hong Kong IPO.
CiDi is a leading autonomous driving technology provider for commercial vehicles in China, with a strong foothold in the autonomous mining segment.
The company stands to benefit from sustained industry tailwinds. While still in its early stages, CiDi has made progress in narrowing its losses.

Dorf-Ketal Chemicals India Pre-IPO – The Negatives – Elevated Borrowings and Tariff Uncertainty

By Akshat Shah

Dorf-Ketal Chemicals Ltd (998552Z IN) (DKCI) is looking to raise about US$579m in its upcoming India IPO.
DKCI is an R&D and innovation-focused global manufacturer and supplier of specialty chemicals, catering to hydrocarbons and industrial supply chains, and customers with diverse applications across various industrial segments.
In this note, we talk about the not-so-positive aspects of the deal.

Nidec (6594) | Chasing Trends to Fiscal Discipline

By Mark Chadwick

Nidec beat Q4 expectations but offered muted FY3/26 guidance, with flat sales and modest profit growth amid macro and tariff uncertainty.
New CEO Kishida shifts focus from top-line ambition to margin discipline, targeting ¥150bn in cost cuts over three years.
Once a high-growth play, Nidec now trades at value multiples — 1.5x book — offering a more grounded path to shareholder returns.

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Apr 25

Daily Brief Financials: Bank Jago Tbk PT, Gunma Bank, Wanda Hotel Development, SAMHI Hotels , HSBC Holdings, Jafco Co Ltd, Kobo Resources , Utilico Emerging Markets Ltd, Blackrock Inc and more

By Smartkarma Daily Briefs | Daily Briefs, Financials

In today’s briefing:

IDX30/LQ45/IDX80 Index Rebalance: Few Changes
Gunma Bank (8334 JP): Daishi Hokuetsu (7327 JP) Share Exchange to Establish a Top Regional Bank
Wanda Hotel (169 HK) To Offload Hotel Management Arm
Update- SAMHI Hotels: Strategic Partnership with GIC
HSBC (5.HK) Q1 Earnings: Big Move, Rich Vol, Hedge Opportunity Emerges
Jafco Co Ltd (8595 JP): Full-year FY03/25 flash update
KRI: 20,000-30,000m Drill Program Commences at Kossou
Utilico Emerging Markets Trust — Well positioned to ride out the US tariff storm
Asia Real Estate Tracker (24-Apr-2025): Lone Star buys Yokohama block for hotel project.

IDX30/LQ45/IDX80 Index Rebalance: Few Changes

There is 1 constituent change for the IDX30 Index and 2 changes for the IDX80 Index to be implemented at the close on 30 April.
The largest passive flows are expected in Bank Rakyat Indonesia, Bank Jago Tbk PT, Bank Mandiri Persero, Bank Tabungan Negara Persero, Adaro Energy and Bukalapak.com PT Tbk.
There are only 4 days to implementation, so there could be relatively big moves on the changes to the IDX30 Index.

Gunma Bank (8334 JP): Daishi Hokuetsu (7327 JP) Share Exchange to Establish a Top Regional Bank

Gunma Bank (8334 JP) and Daishi Hokuetsu Financial Group (7327 JP)/DHFG have announced an MoU to establish one of the largest regional banks in Japan by 1 April 2027.
The transaction involves delisting Gunma through a share exchange with DHFG. A definitive agreement is expected around March 2026.
The plan is long-dated. The lack of a controlling shareholder necessitates a “fair” exchange ratio. My estimated Gunma/DHFG exchange ratio range is 0.38-0.39x.

Wanda Hotel (169 HK) To Offload Hotel Management Arm

Wanda Hotel Development (169 HK), 65.05% held by Wang Jianlin, is selling its hotel property arm to Tencent (700 HK) and Trip.com (9961 HK)-backed Tongcheng Travel Holdings (780 HK).
Wang Jianlin’s cash-strapped Dalian Wanda Group has been offloading assets such as the $8.3bn sale of its mall management business to a PAG-led consortium in March last year.
Wanda Hotel proposes distributing all or part of the proceeds from the sale. Given Wang’s controlling shareholding, I’d tilt towards the former.

Update- SAMHI Hotels: Strategic Partnership with GIC

SAMHI Hotels (SAMHI IN) has entered into a strategic partnership with GIC, a global institutional investor, to establish a joint venture platform for upscale and higher hotel assets in India.
This transaction will significantly reduce SAMHI’s debt, enhance its financial flexibility, and provide access to up to $300 million in future capital for further expansion in high-demand upscale hotel sector.
The partnership with GIC strengthens SAMHI’s growth outlook, boosts profitability through debt reduction, and positions the company to capitalize on the rapidly expanding upscale hospitality market in India.

HSBC (5.HK) Q1 Earnings: Big Move, Rich Vol, Hedge Opportunity Emerges

By John Ley

HSBC has rallied 19.8% from the April low and is up > 13% year-to-date. Against this backdrop we analyze implied vol, implied jump and post-earning price patterns.
Q1 is typically HSBC’s least volatile earnings quarter, with most moves falling short of current jump expectations.
We suggest a short-vega hedge structure that benefits from elevated implied vol.

Jafco Co Ltd (8595 JP): Full-year FY03/25 flash update