Smartkarma Daily Briefs

On 8 April, Hanwha Aerospace (012450 KS) announced that it plans to lower its rights offering capital raise amount from 3.6 trillion won to 2.3 trillion won (US$1.6 billion).
The remaining 1.3 trillion won will be secured through a third-party allocation paid-in capital increase targeting three companies, including Hanwha Energy, Hanwha Impact Partners, and Hanwha Energy Singapore.
Hanwha Aerospace disclosed today that it expects sales of 30 trillion won (58% higher than consensus) and operating profit of 3 trillion won (20% higher than consensus) in 2025.

Potential Sale of a Controlling Stake in SK Siltron to Hahn & Co

In this insight, we discuss about SK Inc (034730 KS) which is considering on selling the controlling stake of SK Siltron.
If SK is successful in selling 70.6% stake in SK Siltron for about 5 trillion won, it could result in more than 3 trillion won cash inflow for SK Inc.
Our base case valuation of SK Inc is NAV of 13.9 trillion won (NAV per share of 192,217 won), representing a 61% upside from current levels.

Samsung Elec Better 1Q25 on Smartphone. 2-4Q25 Upside Due to Memory Price Recovery

By Nicolas Baratte

1Q25 better than Consensus by a good margin, guided Operating Profit KRW 6.6tn versus Consensus 5.3tn. Better Smartphone and Memory price. Risk of demand boosted ahead of US tariffs.
Consensus expects sequential growth from 1Q to 4Q25 on better memory prices and HBM3E contribution (late, small, but finally).
The stock is cheap and outperforming, flat YTD and flat since the market correction started mid-Feb-25. Also outperforming SK Hynix. Main risk is AI demand outlook.

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Apr 09

Daily Brief United States: Chagee Holdings, Power Integrations, Ncr Corporation, S&P 500 INDEX, frontdoor Inc, Pvh Corp, GameStop, Cable One Inc, DoubleVerify, Lululemon Athletica and more

By Smartkarma Daily Briefs | Daily Briefs, United States

In today’s briefing:

Chagee IPO: Peer Comp and Thoughts on Valuation
Power Integrations Powers Up with GaN Breakthroughs—Is It Time To BUY Into the Future?
NCR Voyix: How Its Gradual Transition to a Recurring Revenue Model Is Panning Out In Terms Of Financial Impact!
S&P 500 and Nasdaq 100 Testing Prior 2022 Highs; Still Bearish and Cautious
Frontdoor Just Launched a Game-Changing App—Is This the Future of Home Services?
PVH Corporation’s Mixed Bag: Calvin Klein & Tommy Hilfiger Shine But Global Headwinds & China Are A Cause Of Concern!
GameStop’s Secret Weapon: How Smart Vendor Deals Could Revive Its Fortunes!
Cable One’s Billion-Dollar Bet: Can Tech Upgrades & Customer Gains Help Them Outrun the Competition?
DoubleVerify Just Partnered With Meta and TikTok—Is This the Ultimate Social Media Power Play?
Lululemon Athletica Faces New Tariff Pressures Through Vietnam

Chagee IPO: Peer Comp and Thoughts on Valuation

By Nicholas Tan

Chagee Holdings (CHA US) is planning to raise up to US$500m through its upcoming US IPO.
It is a leading premium tea drinks brand, serving healthy and delicious freshly-made tea drinks.
We have looked at the company’s past performance in our earlier notes. In this note, we discuss latest industry dynamics, conduct a quick peer comparison and discuss the company’s valuation.

Power Integrations Powers Up with GaN Breakthroughs—Is It Time To BUY Into the Future?

Power Integrations, Inc., a company renowned for its high-performance electronic components focused on power conversion, reported its fourth quarter and full-year results, highlighting a mix of challenges and opportunities.
The company’s Q4 revenue reached $105 million, marking an 18% increase year-over-year but a sequential decline of 9%.
Despite these mixed signals, revenue for 2024 stood at $419 million, reflecting a 6% decrease from the previous year.

NCR Voyix: How Its Gradual Transition to a Recurring Revenue Model Is Panning Out In Terms Of Financial Impact!

NCR Voyix’s latest earnings offers crucial insights into the company’s strategic position and operational performance over the fourth quarter of 2024.
The company reported a decline in revenue, notably from its hardware division, aligning with expectations of a challenging market environment.
The total revenue stood at $682 million, with adjusted EBITDA showing a significant increase by 75% to $114 million, aided by cost-cutting measures and a focus on recurring revenue streams.

S&P 500 and Nasdaq 100 Testing Prior 2022 Highs; Still Bearish and Cautious

By Joe Jasper

Since late-February (2/25/25 Compass) we expected an 8-10% pullback to provide a buying opportunity. But that all changed in last week’s Compass (4/1/25), when we downgraded our outlook to bearish/cautious.
A historic selloff has ensued and significant damage has been done as market dynamics have worsened.
Until we see some base-building process develop alongside improving market dynamics, we remain cautious and we continue to favor defensives as long as the SPX is below its 200-day MA.

Frontdoor Just Launched a Game-Changing App—Is This the Future of Home Services?

Frontdoor’s financial performance in the third quarter of 2024 reflects both achievements and challenges for the company as it navigates a fluctuating market environment.
The company reported a 3% increase in revenue to $540 million compared to the same period last year, alongside a notable rise in gross profit margin by 550 basis points to reach 57%.
Net income saw a substantial uptick of 40% to $100 million, while Adjusted EBITDA increased by 29% to $165 million.

PVH Corporation’s Mixed Bag: Calvin Klein & Tommy Hilfiger Shine But Global Headwinds & China Are A Cause Of Concern!

PVH Corp’s recent earnings reflects a mix of achievements and challenges in the fiscal year 2024 and sets cautious expectations for 2025.
The company, which owns iconic brands Calvin Klein and Tommy Hilfiger, surpassed its initial 2024 guidance both in terms of revenue and non-GAAP EPS.
However, it faced a decrease in overall revenue compared to previous years, largely attributed to divestitures and external economic factors.

GameStop’s Secret Weapon: How Smart Vendor Deals Could Revive Its Fortunes!

GameStop Corporation reported its fourth-quarter and full-year financial results for 2022 with a noticeable shift toward profitability and efficient operations amidst a challenging retail environment.
The company’s transformation over the past couple of years has been a story of significant restructuring and strategic shifts aimed at revitalizing its financial health and market positioning.
A notable positive from the results is GameStop’s turnaround from a net loss in the fourth quarter of 2021 to a net income of $48.2 million in the same period of 2022.

Cable One’s Billion-Dollar Bet: Can Tech Upgrades & Customer Gains Help Them Outrun the Competition?

Cable One’s recent earnings presented a mixed set of financial results for its fourth quarter and full-year 2024.
The company, while navigating competitive pressures and changes in subscriber programs, managed to demonstrate some resilience in strategies aimed at stabilizing its business.
On the positive side, Cable One reported growth in its business broadband revenue by 2.6% year-over-year, driven by rising demand across its carrier, enterprise, and wholesale segments.

DoubleVerify Just Partnered With Meta and TikTok—Is This the Ultimate Social Media Power Play?

DoubleVerify, a company providing digital media measurement solutions, concluded 2024 with several notable achievements and a number of challenges that shape both its financial performance and future outlook.
Overall, DoubleVerify delivered substantial growth in revenue, achieving a 15% year-over-year increase to $657 million.
This growth was driven by significant momentum across its three main revenue streams.

Lululemon Athletica Faces New Tariff Pressures Through Vietnam

By Shifara Samsudeen, FCMA, CGMA

Lululemon Athletica Inc. recently reported its fourth-quarter and full-year financial results, marking another year of growth, while also spotlighting both achievements and challenges.
The company reported total revenue for the fourth quarter, excluding the 53rd week, increased by 8% year-over-year, or 9% on a constant currency basis.
Operating margin expanded by 40 basis points to 28.9%, and earnings per share rose by 16%.

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Apr 09

Daily Brief China: Bestechnic Shanghai , Duality Biotherapeutics, Jiangsu Zenergy Battery Technologies, Beijing Yunji Technology Ltd, Yuexiu Property , Mixue Group and more

By Smartkarma Daily Briefs | China, Daily Briefs

In today’s briefing:

STAR50/STAR100 Index Rebalance Preview: Central Huijin’s ETF Creations Skew Performance
Duality Biotherapeutics (映恩生物) IPO: Valuation Upside at Risk
Jiangsu Zenergy Battery Tech IPO: Forecasts and Valuation
Beijing Yunji Technology Ltd Pre-IPO Tearsheet
Lucror Analytics – Morning Views Asia
Mixue Group (2097 HK) – Updates on Valuation Outlook and Growth Forecast Based on 2024 Results

STAR50/STAR100 Index Rebalance Preview: Central Huijin’s ETF Creations Skew Performance

By Brian Freitas

Nearing the end of the review period, we forecast 1 change for the SSE STAR50 (STAR50 INDEX) and 4 changes for the STAR100 Index in June.
We estimate turnover of 1.9% for the SSE STAR50 (STAR50 INDEX) and 4.5% for the STAR100 Index. The estimated round-trip trade is CNY 7.5bn (US$1.02bn).
Large ETF inflows could have led to the recent underperformance of a long add/ short delete trade. That could reverse once markets stabilize or when the passives trade the rebalance.

Duality Biotherapeutics (映恩生物) IPO: Valuation Upside at Risk

By Ke Yan, CFA, FRM

Duality, a China-based clinical-stage biotechnology company, launched its IPO to raise up to US$200m via a Hong Kong listing.
We look at the deal dynamics and latest developments in the biotech sector.
The deal initially presented upside for investors but there’s a portion of its valuation now at risk due to the latest development.

Jiangsu Zenergy Battery Tech IPO: Forecasts and Valuation

Jiangsu Zenergy Battery Technologies (JSZENERGY CH) has announced the terms for its IPO. The company plans to issue 121.5m shares at HK$8.27 per share, raising HK$1.0bn (US$130m).
The company’s earnings have seen strong growth during the last 3-4 years driven by its LFP battery products and fall in lithium carbonate prices have helped turn around profitability.
However, our analysis on the company’s valuation shows that JZBT’s IPO is expensive and with the ongoing geopolitical tensions, we would remain on the sidelines.

Beijing Yunji Technology Ltd Pre-IPO Tearsheet

By Rosita Fernandes

Beijing Yunji Technology Ltd (1860671D CH) (BYTL) is planning to raise about US$100m through its upcoming Hong Kong IPO. The lead bookrunners for the deal are Citic, CBB International.
BYTL provides hospitality robotic AI agents, using advanced robotics and AI to enhance customer experiences. Its solutions include physical-interaction robots and AI-driven digitalization systems for streamlined decision-making and operational efficiency.
According to the F&S Report, BYTL ranked first globally in 2024 among robotic AI agent companies with multi-layer adaptable robots, leading in concurrent robot operations and total consumers served.

Lucror Analytics – Morning Views Asia

By Leonard Law, CFA

In today’s Morning Views publication we comment on developments of the following high yield issuers: Yuexiu Property, Tata Motors, Softbank Group
US President Donald Trump wrote on Truth Social that Washington will impose an additional 50% tariff on China effective April 9th, if Beijing does not back down from its 34% retaliatory tariffs.
Mr Trump’s post also stated that the US will terminate all talks with China, while commencing negotiations with other countries. Separately, the President told reporters at the White House that he was not looking at a pause on tariffs, but added that “many countries” were seeking negotiations and there would be fair deals in certain cases.

Mixue Group (2097 HK) – Updates on Valuation Outlook and Growth Forecast Based on 2024 Results

By Xinyao (Criss) Wang

Revenue growth of MIXUE in 2024 was the lowest in recent three year but is still higher than competitors.Together with higher profit margin, MIXUE’s valuation should be higher than peers.
Based on 2024 results, we adjusted our forecast for the next three years. Declining performance growth is inevitable, but successful internationalization helps reassure its high growth outlook in the future
Due to concerns, investors need to pay attention to the performance verification.If 2025H1 net profit growth is significantly lower than 30% YoY, investors should be alert to a potential correction.

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Apr 09

Daily Brief Japan: Tokyo Metro, Nikkei 225, TSE Tokyo Price Index TOPIX and more

By Smartkarma Daily Briefs | Daily Briefs, Japan

In today’s briefing:

TOPIX Index Upweights: Great Hit Rate; Strong Trade Performance; A Rare Win!
Nikkei 225 Bounce: Setting Up for Tactical Shorts
Companies May Worked on Raising OP Margin in Minor Ways Without Working on Raising Gross Margins

TOPIX Index Upweights: Great Hit Rate; Strong Trade Performance; A Rare Win!

In the TOPIX Index, some “low liquidity” names carry a liquidity factor of 0.75x resulting in their actual index weights being smaller than their default weights.
These names are reviewed every April and if the liquidity factor of a stock gets removed, the stock will see index inflows from passive trackers of TOPIX.
The results for April 2025 liquidity factor removal have been confirmed and we achieved very high hit rates for our High and Medium conviction baskets.

Nikkei 225 Bounce: Setting Up for Tactical Shorts

By Nico Rosti

From Monday’s gloom to Tuesday’s euphoria, the Nikkei 225 (NKY INDEX) staged one of the strongest rebounds — but tariff risks haven’t gone away. Still there.
Here are some tactical analysis and ideas specific for the Nikkei 225 Index to prepare for the key risk ahead: another brutal sell-off.
The targets highlighted by our models (below) come with low reversal probabilities — ranging from just 25% to 50% — this is consistent with weak market rebound dynamics.

Companies May Worked on Raising OP Margin in Minor Ways Without Working on Raising Gross Margins

By Aki Matsumoto

Japan’s declining % global GDP and the number of top companies in market capitalization shows that simply boosting profits through yen depreciation left behind the growth speed of global competitors.
While many Japanese companies tried to improve profit margins by reducing labor costs and other expenses, few have managed to improve gross profit margins, which relate to their business models.
The fact that few companies have taken steps to shift to higher value-added products and services is why the yen rate remains a key factor in stock valuations.

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Apr 09

Daily Brief India: LG Electronics India, Park Medi World and more

By Smartkarma Daily Briefs | Daily Briefs, India

In today’s briefing:

LG Electronics India Pre-IPO – Peer Comparison – Largest but One of the Slowest
LG Electronics India Pre-IPO – Thoughts on Valuation
Park Medi World Pre-IPO Tearsheet

LG Electronics India Pre-IPO – Peer Comparison – Largest but One of the Slowest

By Sumeet Singh

LG Electronics (066570 KS) is looking to raise US$1.5bn+ via part-selling its stake in LG Electronics India.
LG Electronics India (LGEI) was the market leader in India in major home appliances and consumer electronics (excluding mobile phones) in terms of volume in 1Q25, as per Redseer Report.
We have looked at the company’s past performance in our previous note. In this note, we undertake a peer comparison.

LG Electronics India Pre-IPO – Thoughts on Valuation

By Sumeet Singh

LG Electronics (066570 KS) is looking to raise US$1.5bn+ via part-selling its stake in LG Electronics India.
LG Electronics India (LGEI) was the market leader in India in major home appliances and consumer electronics (excluding mobile phones) in terms of volume in 1Q25, as per Redseer Report.
We have looked at the company’s past performance and undertaken a peer comparison in our previous note. In this note, we talk about valuations.

Park Medi World Pre-IPO Tearsheet

By Nicholas Tan

Park Medi World (1605334D IN) is looking to raise at least US$147m in its upcoming India IPO. The deal will be run by Nuvama, CLSA, DAM Capital and Intensive FS.
It is the second largest private hospital chain in North India, with an aggregate bed capacity of 3,000 beds.
It the largest private hospital chain in terms of bed capacity in Haryana with 1,600 beds located in the state as of 1H25.

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Apr 09

Most Read: ESR Group , Mitsubishi Corp, Suzuki Motor, Bestechnic Shanghai , Tokyo Metro, SK Inc, Hanwha Aerospace, Duality Biotherapeutics and more

By Smartkarma Daily Briefs | Daily Briefs, Most Read

In today’s briefing:

HK Merger Arb: Opportunities Amidst the Market Selloff
Hong Kong Arbs: (Largely) Immune From Trump Tariffs
MitCorp (8058) BIG Buyback – Share Demand Will Help Weather The Storm
Suzuki Motor (7269 JP) Placement: Limited Index Buying & Weak Markets Could Pressure Stock
STAR50/STAR100 Index Rebalance Preview: Central Huijin’s ETF Creations Skew Performance
TOPIX Index Upweights: Great Hit Rate; Strong Trade Performance; A Rare Win!
UK: Spillover effects from US tariffs
Key Implications of SK Inc’s Disposal of SK Siltron
Hanwha Aerospace – Lowers Rights Offering Capital Raise Amount To 2.3 Trillion Won
Duality Biotherapeutics (映恩生物) IPO: Valuation Upside at Risk

HK Merger Arb: Opportunities Amidst the Market Selloff

By Arun George

The gross spreads of large HK merger arb situations have increased due to the unfortunate fallout from Trump’s trade war. The HSI closed down 13.2%.
We assess the widening spreads of HK’s merger arb situations based on offer structure, preconditions, conditions, and other factors.
The deals, ranked in terms of increasing deal risk, are Tam Jai, Soundwill, Vesync, Goldlion, Canvest, ESR, OneConnect, HKBN, and ENN Energy.

Hong Kong Arbs: (Largely) Immune From Trump Tariffs

By David Blennerhassett

In Aussie Arbs: Trump Tariffs And MACs, I ran a ruler over the fifteen live deals Down Under, and how they may be affected by the Trump Tariffs.
This insight canvasses the ongoing Hong Kong arbs and wording surrounding material adverse changes (MACs). Hong Kong MACs are typically less onerous, and lack specificity, versus Aussie arbs.
Although the framework exists for an Offeror to enforce a MAC, I’m not aware of any evidence of this occurring under Hong Kong’s Takeovers Code.

MitCorp (8058) BIG Buyback – Share Demand Will Help Weather The Storm

By Travis Lundy

On 3 April mid-day, Mitsubishi Corp (8058 JP) announced its FY25 earnings guidance and new “Shareholder Return Strategy”, a ¥1 trillion buyback, and its “Corporate Strategy 2027” Mid-Term Management Plan.
The FY25 forecast is for a third consecutive decline in underlying operating cashflow, but a hike in dividend from ¥100 to ¥110 and a ¥1trln share buyback, including ¥230bn tender.
The combination of dividend and buyback should be 15% of market cap over the next 12mos. And I expect Warren Buffett will consider buying dips.

Suzuki Motor (7269 JP) Placement: Limited Index Buying & Weak Markets Could Pressure Stock

By Brian Freitas

Tokio Marine & Nichido Fire Insurance and Sompo Japan Insurance are looking to offload their entire stakes in Suzuki Motor (7269 JP) by way of a secondary offering.
With the size of the secondary offering less than 5% of the number of shares, there could be no index buying in the short-term and that will pressure the stock.
If the overallotment option is exercised and the seller of the shares is currently considered as non-float, there could be small passive buying in the short-term.

STAR50/STAR100 Index Rebalance Preview: Central Huijin’s ETF Creations Skew Performance

By Brian Freitas

Nearing the end of the review period, we forecast 1 change for the SSE STAR50 (STAR50 INDEX) and 4 changes for the STAR100 Index in June.
We estimate turnover of 1.9% for the SSE STAR50 (STAR50 INDEX) and 4.5% for the STAR100 Index. The estimated round-trip trade is CNY 7.5bn (US$1.02bn).
Large ETF inflows could have led to the recent underperformance of a long add/ short delete trade. That could reverse once markets stabilize or when the passives trade the rebalance.

TOPIX Index Upweights: Great Hit Rate; Strong Trade Performance; A Rare Win!

In the TOPIX Index, some “low liquidity” names carry a liquidity factor of 0.75x resulting in their actual index weights being smaller than their default weights.
These names are reviewed every April and if the liquidity factor of a stock gets removed, the stock will see index inflows from passive trackers of TOPIX.
The results for April 2025 liquidity factor removal have been confirmed and we achieved very high hit rates for our High and Medium conviction baskets.

UK: Spillover effects from US tariffs

By Phil Rush

The UK output destroyed by reciprocal US tariffs is only partly due to the direct impact of the new 10% rate (worth ~0.2% of GDP) and generally weaker US prospects (0.1%).
Global GDP growth is depressed by this policy, indirectly destroying demand for UK exports from elsewhere (0.2%), especially if countries harm themselves by retaliating.
An overall 0.6% GDP hit has two-sided risks and a skew lowered by likely negotiations. Fears of items dumping into the UK market are overblown excuses for protectionism.

Key Implications of SK Inc’s Disposal of SK Siltron

By Sanghyun Park

SK Inc is selling SK Siltron to cut its 68% debt-to-equity ratio. The sale could reduce borrowings below ₩5T and lower debt ratio to 30-40%.
Chey Tae-won’s divorce lawsuit risks his majority stake in SK Inc. Selling Siltron helps raise ₩1T for alimony without touching his SK Inc shares, potentially reducing the holding company discount.
SK Inc-SK Square merger is unlikely soon, despite asset sales and preparation on both sides, as SK Square recently reaffirmed no current merger plans. Setting a position now seems premature.

Hanwha Aerospace – Lowers Rights Offering Capital Raise Amount To 2.3 Trillion Won

On 8 April, Hanwha Aerospace (012450 KS) announced that it plans to lower its rights offering capital raise amount from 3.6 trillion won to 2.3 trillion won (US$1.6 billion).
The remaining 1.3 trillion won will be secured through a third-party allocation paid-in capital increase targeting three companies, including Hanwha Energy, Hanwha Impact Partners, and Hanwha Energy Singapore.
Hanwha Aerospace disclosed today that it expects sales of 30 trillion won (58% higher than consensus) and operating profit of 3 trillion won (20% higher than consensus) in 2025.

Duality Biotherapeutics (映恩生物) IPO: Valuation Upside at Risk

By Ke Yan, CFA, FRM

Duality, a China-based clinical-stage biotechnology company, launched its IPO to raise up to US$200m via a Hong Kong listing.
We look at the deal dynamics and latest developments in the biotech sector.
The deal initially presented upside for investors but there’s a portion of its valuation now at risk due to the latest development.

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Apr 09

Daily Brief Health Care: Duality Biotherapeutics, S&P 500 INDEX, Eli Lilly & Co, LogicMark , Park Medi World and more

By Smartkarma Daily Briefs | Daily Briefs, Healthcare

In today’s briefing:

Duality Biotherapeutics (映恩生物) IPO: Valuation Upside at Risk
S&P 500 and Nasdaq 100 Testing Prior 2022 Highs; Still Bearish and Cautious
Eli Lilly and Co: Mounjaro & Zepbound Catalyzing Growth, But Challenges Linger!
LGMK: Potential Revenue Catalysts: GSA Approval, Medicaid Waivers, Device Upgrades
Park Medi World Pre-IPO Tearsheet

Duality Biotherapeutics (映恩生物) IPO: Valuation Upside at Risk

By Ke Yan, CFA, FRM

Duality, a China-based clinical-stage biotechnology company, launched its IPO to raise up to US$200m via a Hong Kong listing.
We look at the deal dynamics and latest developments in the biotech sector.
The deal initially presented upside for investors but there’s a portion of its valuation now at risk due to the latest development.

S&P 500 and Nasdaq 100 Testing Prior 2022 Highs; Still Bearish and Cautious

By Joe Jasper

Since late-February (2/25/25 Compass) we expected an 8-10% pullback to provide a buying opportunity. But that all changed in last week’s Compass (4/1/25), when we downgraded our outlook to bearish/cautious.
A historic selloff has ensued and significant damage has been done as market dynamics have worsened.
Until we see some base-building process develop alongside improving market dynamics, we remain cautious and we continue to favor defensives as long as the SPX is below its 200-day MA.

Eli Lilly and Co: Mounjaro & Zepbound Catalyzing Growth, But Challenges Linger!

Eli Lilly and Company reported strong growth and progress during its fourth quarter and full fiscal year 2024 results.
The company saw a significant increase in revenue, primarily driven by notable sales of its new products, including Mounjaro and Zepbound, which contributed significantly to an impressive 45% increase in quarterly revenue and a 32% increase for the full year.
The company benefited from the successful momentum of various newly launched medications across multiple regions, including impressive uptake in European markets.

LGMK: Potential Revenue Catalysts: GSA Approval, Medicaid Waivers, Device Upgrades

By Zacks Small Cap Research

The company launched the next-gen of the Guardian Alert 911 Plus in February.
The update integrates advanced fall detection and eliminates recurring monthly subscriptions.
The updated device offers 4G LTE technology combined with fall detection in a more compact form.

Park Medi World Pre-IPO Tearsheet

By Nicholas Tan

Park Medi World (1605334D IN) is looking to raise at least US$147m in its upcoming India IPO. The deal will be run by Nuvama, CLSA, DAM Capital and Intensive FS.
It is the second largest private hospital chain in North India, with an aggregate bed capacity of 3,000 beds.
It the largest private hospital chain in terms of bed capacity in Haryana with 1,600 beds located in the state as of 1H25.

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Apr 09

Daily Brief Industrials: Tokyo Metro, Hanwha Aerospace, Jiangsu Zenergy Battery Technologies, FuelCell Energy , Atkore Inc, Intuitive Machines , Bwx Technologies and more

By Smartkarma Daily Briefs | Daily Briefs, Industrials

In today’s briefing:

TOPIX Index Upweights: Great Hit Rate; Strong Trade Performance; A Rare Win!
Hanwha Aerospace – Lowers Rights Offering Capital Raise Amount To 2.3 Trillion Won
Jiangsu Zenergy Battery Tech IPO: Forecasts and Valuation
FuelCell Energy: An Insight into Its Partnership with Diversified Energy & TESIAC & Key Growth Levers!
Atkore’s Import Defense Plan Could Protect Margins — A Smart BUY Opportunity?
Intuitive Machines: Here’s How Reddit’s Favorite Stock Is Expanding Lunar Delivery Services & Capitalizing On Government & National Security Collaborations!
BWX Technologies Powers Ahead with Revolutionary Reactor Development Breakthroughs!

TOPIX Index Upweights: Great Hit Rate; Strong Trade Performance; A Rare Win!

In the TOPIX Index, some “low liquidity” names carry a liquidity factor of 0.75x resulting in their actual index weights being smaller than their default weights.
These names are reviewed every April and if the liquidity factor of a stock gets removed, the stock will see index inflows from passive trackers of TOPIX.
The results for April 2025 liquidity factor removal have been confirmed and we achieved very high hit rates for our High and Medium conviction baskets.

Hanwha Aerospace – Lowers Rights Offering Capital Raise Amount To 2.3 Trillion Won

By Shifara Samsudeen, FCMA, CGMA

On 8 April, Hanwha Aerospace (012450 KS) announced that it plans to lower its rights offering capital raise amount from 3.6 trillion won to 2.3 trillion won (US$1.6 billion).
The remaining 1.3 trillion won will be secured through a third-party allocation paid-in capital increase targeting three companies, including Hanwha Energy, Hanwha Impact Partners, and Hanwha Energy Singapore.
Hanwha Aerospace disclosed today that it expects sales of 30 trillion won (58% higher than consensus) and operating profit of 3 trillion won (20% higher than consensus) in 2025.

Jiangsu Zenergy Battery Tech IPO: Forecasts and Valuation

Jiangsu Zenergy Battery Technologies (JSZENERGY CH) has announced the terms for its IPO. The company plans to issue 121.5m shares at HK$8.27 per share, raising HK$1.0bn (US$130m).
The company’s earnings have seen strong growth during the last 3-4 years driven by its LFP battery products and fall in lithium carbonate prices have helped turn around profitability.
However, our analysis on the company’s valuation shows that JZBT’s IPO is expensive and with the ongoing geopolitical tensions, we would remain on the sidelines.

FuelCell Energy: An Insight into Its Partnership with Diversified Energy & TESIAC & Key Growth Levers!

FuelCell Energy provides a consolidated update for its first fiscal quarter of 2025, which showcases both achievements and ongoing challenges.
The company reported revenues of $19 million for the quarter, marking an increase from $16.7 million in the corresponding period of the previous year.
Despite the revenue boost, FuelCell Energy incurred a net loss attributable to common stockholders of $29.1 million, translating to a loss per share of $1.42, a slight increase from the $1.37 per share loss in the first quarter of fiscal 2024.

Atkore’s Import Defense Plan Could Protect Margins — A Smart BUY Opportunity?

Atkore International Group’s first quarter fiscal year 2025 results were broadly aligned with expectations, but there are notable challenges and developments within the company that are influencing its forward-looking guidance.
The company reported net sales of $662 million and adjusted EBITDA of $99 million, both within the anticipated range.
Adjusted EPS was also near the high end of the forecast at $1.63, despite a 5% decline in organic volume compared to a strong prior-year quarter.

Intuitive Machines: Here’s How Reddit’s Favorite Stock Is Expanding Lunar Delivery Services & Capitalizing On Government & National Security Collaborations!

Intuitive Machines captures attention as it reported record revenue and cash flows in strong Q4 and full-year financials for 2024.
The space exploration company, which became publicly traded just two years ago, showcased technical capabilities and achievements.
However, there are aspects to weigh when evaluating an investment in Intuitive Machines.

BWX Technologies Powers Ahead with Revolutionary Reactor Development Breakthroughs!

BWX Technologies, Inc. recorded a strong performance for its fourth quarter and full year 2024, with earnings exceeding initial projections and a significant backlog increase.
The company achieved records in several financial metrics, including revenue, adjusted EBITDA, adjusted earnings per share, and free cash flow.
The strategic focus on nuclear technology across various sectors, including national security, clean energy, and medicine, positioned BWX Technologies to harness growing market demand.

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Apr 09

Daily Brief Energy/Materials: Active Energy Group, Base Oil and more

By Smartkarma Daily Briefs | Daily Briefs, Energy & Materials Sector

In today’s briefing:

Hybridan Small Cap Feast: 31/03/2025
Global base oils margins outlook: Week of 7 April
Asia base oils supply outlook: Week of 7 April
Americas/EMEA base oils supply outlook: Week of 7 April
Americas/EMEA base oils demand outlook: Week of 7 April
Global base oils arb outlook: Week of 7 April

Hybridan Small Cap Feast: 31/03/2025

By Hybridan

The international biomass based renewable energy business, today announced that its European patent application has been allowed under a Patent Application for its innovative “Process for Beneficiating and Cleaning Biomass”.
This forthcoming Patent strengthens the intellectual property portfolio underpinning the Company’s CoalSwitch technology, a next-generation solution for producing sustainable biomass fuel.
The newly allowed patent application will grant protection in several EU countries reinforcing Active Energy’s innovation in the global biomass industry.

Global base oils margins outlook: Week of 7 April

Global base oils prices face growing upward pressure versus feedstock/diesel prices following slump in crude oil prices.
Firming base oils premium points to tightening supply and rising demand, incentivizing refiners to maintain or raise output.
Recent slump in crude oil prices reflects concern about slowdown in global economic activity and subsequent drop in demand.

Asia base oils supply outlook: Week of 7 April

Asia’s base oils prices resume rise versus feedstock/gasoil prices.
Rising margins point to still-firm supply-demand fundamentals at start of Q2 2025.
That dynamic could change in coming weeks if economic growth slows, compounding typical seasonal dip in demand from end of second quarter.

Americas/EMEA base oils supply outlook: Week of 7 April

US base oils prices rise versus crude oil/competing fuel prices.
Base oils margins rise because of slump in crude oil prices.
Base oils premium to VGO previously stayed in relatively narrow range even with round of plant maintenance work and at time of year when demand faces seasonal boost.

Americas/EMEA base oils demand outlook: Week of 7 April

US base oils demand could weaken in face of widespread market volatility and slumping crude prices.
Any slowdown in demand would be at a time of year when consumption typically gets a seasonal boost.
More muted demand would cushion impact of round of base oils plant maintenance work.

Global base oils arb outlook: Week of 7 April

US Group II base oils export price-discount to CFR India prices widens further through March 2025 even ahead of imposition of US tariffs and slump in crude oil prices.
US Group I brightstock export price flips to rare discount to CFR India price in recent weeks.
Ongoing weakness of US export prices points to weaker-than-usual domestic demand.

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✓ Company Data and News
✓ Events & Webinars

Apr 09

Daily Brief Industrials: Tokyo Metro, Hanwha Aerospace, Jiangsu Zenergy Battery Technologies, FuelCell Energy , Atkore Inc, Intuitive Machines , Bwx Technologies and more

By Smartkarma Daily Briefs | Daily Briefs, Industrials

In today’s briefing:

TOPIX Index Upweights: Great Hit Rate; Strong Trade Performance; A Rare Win!
Hanwha Aerospace – Lowers Rights Offering Capital Raise Amount To 2.3 Trillion Won
Jiangsu Zenergy Battery Tech IPO: Forecasts and Valuation
FuelCell Energy: An Insight into Its Partnership with Diversified Energy & TESIAC & Key Growth Levers!
Atkore’s Import Defense Plan Could Protect Margins — A Smart BUY Opportunity?
Intuitive Machines: Here’s How Reddit’s Favorite Stock Is Expanding Lunar Delivery Services & Capitalizing On Government & National Security Collaborations!
BWX Technologies Powers Ahead with Revolutionary Reactor Development Breakthroughs!

TOPIX Index Upweights: Great Hit Rate; Strong Trade Performance; A Rare Win!

In the TOPIX Index, some “low liquidity” names carry a liquidity factor of 0.75x resulting in their actual index weights being smaller than their default weights.
These names are reviewed every April and if the liquidity factor of a stock gets removed, the stock will see index inflows from passive trackers of TOPIX.
The results for April 2025 liquidity factor removal have been confirmed and we achieved very high hit rates for our High and Medium conviction baskets.

Hanwha Aerospace – Lowers Rights Offering Capital Raise Amount To 2.3 Trillion Won

By Shifara Samsudeen, FCMA, CGMA

On 8 April, Hanwha Aerospace (012450 KS) announced that it plans to lower its rights offering capital raise amount from 3.6 trillion won to 2.3 trillion won (US$1.6 billion).
The remaining 1.3 trillion won will be secured through a third-party allocation paid-in capital increase targeting three companies, including Hanwha Energy, Hanwha Impact Partners, and Hanwha Energy Singapore.
Hanwha Aerospace disclosed today that it expects sales of 30 trillion won (58% higher than consensus) and operating profit of 3 trillion won (20% higher than consensus) in 2025.

Jiangsu Zenergy Battery Tech IPO: Forecasts and Valuation

Jiangsu Zenergy Battery Technologies (JSZENERGY CH) has announced the terms for its IPO. The company plans to issue 121.5m shares at HK$8.27 per share, raising HK$1.0bn (US$130m).
The company’s earnings have seen strong growth during the last 3-4 years driven by its LFP battery products and fall in lithium carbonate prices have helped turn around profitability.
However, our analysis on the company’s valuation shows that JZBT’s IPO is expensive and with the ongoing geopolitical tensions, we would remain on the sidelines.

FuelCell Energy: An Insight into Its Partnership with Diversified Energy & TESIAC & Key Growth Levers!

FuelCell Energy provides a consolidated update for its first fiscal quarter of 2025, which showcases both achievements and ongoing challenges.
The company reported revenues of $19 million for the quarter, marking an increase from $16.7 million in the corresponding period of the previous year.
Despite the revenue boost, FuelCell Energy incurred a net loss attributable to common stockholders of $29.1 million, translating to a loss per share of $1.42, a slight increase from the $1.37 per share loss in the first quarter of fiscal 2024.

Atkore’s Import Defense Plan Could Protect Margins — A Smart BUY Opportunity?

Atkore International Group’s first quarter fiscal year 2025 results were broadly aligned with expectations, but there are notable challenges and developments within the company that are influencing its forward-looking guidance.
The company reported net sales of $662 million and adjusted EBITDA of $99 million, both within the anticipated range.
Adjusted EPS was also near the high end of the forecast at $1.63, despite a 5% decline in organic volume compared to a strong prior-year quarter.

Intuitive Machines: Here’s How Reddit’s Favorite Stock Is Expanding Lunar Delivery Services & Capitalizing On Government & National Security Collaborations!

Intuitive Machines captures attention as it reported record revenue and cash flows in strong Q4 and full-year financials for 2024.
The space exploration company, which became publicly traded just two years ago, showcased technical capabilities and achievements.
However, there are aspects to weigh when evaluating an investment in Intuitive Machines.

BWX Technologies Powers Ahead with Revolutionary Reactor Development Breakthroughs!