Smartkarma Daily Briefs

• The FSS is banning arb trades under the MM book, requiring separate books for any arb positions to keep them distinct from MM flow.
• Most local shops lack the resources to set up a separate arb desk. Splitting teams, creating new workflows, and hiring extra staff isn’t feasible given their tight P&L.
• Building a tracker for MM dropouts could spot dislocations, as the crackdown creates short-term inefficiencies—if we’re dialed in, there’s alpha to be made.

• TKP Corporation (3479 JP) is a fascinating little company. It rents space. From people. To people. Then adds on services. Meeting, recruiting, training, seminar, banquet, party, etc rooms.
• Last year they bought control of two small businesses to add features. Revenues are up. The new FY suggests revenue growth, OP growth, and now a buyback.
• The buyback is the interesting bit. They did one last FY with interesting parameters, and Quiddity has a new tool we are trying out, so we showcase an example here.

• Implied vol spiked sharply on Monday, marking one of the largest single-day moves since the pandemic.
• We discuss the move in skew and suggest a course of action for previously recommended hedges.
• The magnitude of the implied vol move is examined in the context of recent price behavior—and whether it holds.

• Emperor Group is consolidating a site in Sai Ying Pun for a 62-home project in Hong Kong, promising a significant development.
• EQT has appointed a former KKR executive to take charge of their real estate operations in Japan, signaling a strategic move.
• A prominent mainland tycoon has sold a condo in The Peak for $66 million, marking a significant transaction in the luxury property market.

JDC Group’s (JDC’s) final FY24 results were in line with the preliminary numbers published on 10 March. FY24 growth was driven by the platform Advisortech division, but Advisory activities were also strong. Management provided FY25 guidance for revenue of €245–265m and EBITDA of €18.5–20.5m, along with mid-term guidance of €450–500m in turnover and EBITDA of €40–50m by 2030, which we see as both realistic and conservative. With an FY25e EV/EBITDA multiple of 13.7x, JDC’s valuation still appears undemanding, particularly compared to platform peers. Our discounted cash flow (DCF) values JDC at €34.56/share (from €34.04/share previously).

• In this edition: • InPost | Royal Mail sets sights on becoming the UK’s biggest parcel locker provider • Triodios Bank | IPO likely to be delayed until June • PostNL / IDS | Conservative leader calling for reassessment of IDS takeover approval • Dutch banking sector | strong lobby for a new national investment bank • E-commerce sector | Temu aims for Europe to become its largest market

• Tata Consultancy Svcs (TCS IN) , Aurionpro Solutions (AUPS IN) , Mazagon Dock Shipbuilders (MAZDOCKS IN)  have shared major updates across demand outlook, sector focus, expansion plans, and strategic pivots. 
• Each company is aligning efforts to navigate macro uncertainties, tap digital or sectoral growth, and optimize capital allocation.
• From TCS’s cautious outlook and margin levers to Apollo’s digital push and Indigo’s hospitality play, these moves reflect a broad spectrum of strategies among market leaders.