Smartkarma Daily Briefs

There could be 1 constituent change for the STAR Chip Index at the June rebalance. There will also be a few capping changes.
Estimated one-way turnover is 2.1% resulting in a round-trip trade of CNY 1.04bn (US$141m). Passives need to trade between 0.65-1.65x ADV in the potential changes.
Jinhong Gas (688106 CH) is also a potential delete from the STAR100 Index and that will lead to increased passive selling in the stock.

EUDR May Be Subject To Revision

By Farah Miller

Importers labeling rubber used as synthetic or compounded to avoid due diligence
Automated checks may miss incorrect documentation
Ongoing review for the list of products which need documentation before entering EU

BWGI’s Tender Offer for Verallia

By Jesus Rodriguez Aguilar

BWGI proposes a voluntary tender offer at €30 per share (cum dividend), aiming for majority control without delisting, supported by the Moreira Salles family’s substantial financial capacity and credibility.
BWGI’s offer, backed by a $26 billion family office, presents a credible liquidity event; however, valuation and DCF analysis suggest room for a higher bid or competing interest.
Market volatility may increase investor preference for deal certainty, potentially improving acceptance of BWGI’s offer despite its modest premium over Verallia’s recent trading levels and long-term valuation benchmarks.

ARG: Slight Miss on Q1 Production; Copper Price Supports FCF

By Atrium Research

Quarterly copper production was 13.2Mlbs, below our estimate of 14.9Mlbs due to the scheduled annual plant maintenance.
Cash costs came in at $2.22/lb, above our estimate of $1.88/lb.
Copper prices rose substantially in Q1, followed by a sharp drop in recent days due to U.S. tariffs, despite this, copper remains high at >$4.00/lb.

Southern Energy Corp. (SOUC LN/SOU CN): First recompletion expected by the end of 2Q25

By Auctus Advisors

Southern has raised US$5 mm in new equity at a price of 3.8p per share (C$0.07 per share).
Investors participating in the transaction will also receive a full warrant for each new share, with an exercise price of 4.8p per share (C$0.09 per share).
US$3.1 mm of outstanding convertible debenture will be converted into equity on the same terms.

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Apr 10

Daily Brief Industrials: CK Hutchison Holdings, Daihatsu Diesel Mfg, DL E&C , Jain Resource Recycling, Daiseki Co Ltd, ISDN Holdings, KULR Technology Group , Ohba Co Ltd and more

By Smartkarma Daily Briefs | Daily Briefs, Industrials

In today’s briefing:

CK Hutch (1 HK): Back To Square One
USTR Hearings on Section 301 China Maritime Dominance – Fees on Chinese Ships
A Pair Trade Between DL Holdings and DL E&C
Jain Resource Recycling Pre-IPO Tearsheet
Daiseki Co Ltd (9793 JP): Full-year FY02/25 flash update
kopi-C with ISDN Holdings: Seizing the Moment in Automation: ISDN’s Vision for Future-Proofing and Sustainable Growth
KULR Technology Group Inc.
Ohba (9765 Jp) – Announced FY2025/5 Dividend Forecast Increase and Expanded Shareholder Benefits

CK Hutch (1 HK): Back To Square One

The irony is that CKH (1 HK)‘s Panama-port sale was probably prompted, at least in part, by a desire to get out of a situation which was becoming increasingly political.
Instead, it has thrust the company right into the heart of it. And the share price has now given up all of its initial gains. And then some.
After Panama’s Attorney General recently determined CK Hutchison’s concessions were unconstitutional, the Comptroller-General has now announced that an audit had found “many breaches” of the concession.

USTR Hearings on Section 301 China Maritime Dominance – Fees on Chinese Ships

The original issues were discussed in depth in The USTR’s New “Proposed Actions” For Section 301 Investigation on China’s Maritime/Shipping Sectors (now unpaywalled). Hearings took place 24-26 March 2025.
The hearings were long, and comments were predictable. Those supporting the measures offered evidence which was simply incorrect. Those against tried. Post-hearing comments were due 2 April.
We don’t yet know what will happen, but if they stay in place, starting 17 April, US exports of grain/pulses, coal, etc will suffer. Imports will see higher costs too.

A Pair Trade Between DL Holdings and DL E&C

By Douglas Kim

In this insight, we discuss a pair trade between DL Holdings Co (000210 KS) (go long) and DL E&C (375500 KS) (go short).
In the past three months, DL Holdings’ share price is down 9.9% versus DL E&C which is up 21%. We believe this gap has become too excessive.
The shares sold short volume/total traded volume ratio is more than double for DL E&C versus DL Holdings from 31 March to 9 April.

Jain Resource Recycling Pre-IPO Tearsheet

By Akshat Shah

Jain Resource Recycling (2300699D IN) is looking to raise about US$234m in its upcoming India IPO. The deal will be run by ICICI, Motilal, DAM and PL Capital.
The company is primarily focused on manufacturing of non-ferrous metal products by recycling of non-ferrous metal scrap. It is also engaged in trading of non-ferrous metals and other commodities.
According to CRISIL, it was the largest and fastest-growing non-ferrous metal recycling business, in terms of revenue for FY22-24 in India.

Daiseki Co Ltd (9793 JP): Full-year FY02/25 flash update

By Shared Research

Daiseki’s FY02/25 sales declined 2.8% YoY to JPY67.3bn, exceeding the forecast of JPY66.0bn.
Operating profit fell 3.3% YoY to JPY14.3bn, impacted by TOB-related expenses and heavy snowfall.
FY02/26 forecast: Sales JPY70.0bn (+4.0% YoY), operating profit JPY15.7bn (+9.7% YoY), OPM 22.4% (+1.1pp YoY).

kopi-C with ISDN Holdings: Seizing the Moment in Automation: ISDN’s Vision for Future-Proofing and Sustainable Growth

By Geoff Howie

ISDN Holdings is expanding its industrial automation capabilities and exploring opportunities in China, Taiwan, and Malaysia.
The company is building a renewable energy vertical with hydropower plants in Indonesia, aiming for sustainable income.
ISDN has over 10,000 customers and 74 offices in Asia, serving sectors like semiconductors and Industry 4.0.

KULR Technology Group Inc.

By Zacks Small Cap Research

KULR Technology Group, Inc. develops and commercializes high-performance thermal management technologies for electronics, batteries, and other components across a range of applications.
Currently, it is focused on high performance aerospace and Department of Defense applications, such as space exploration, satellite communications, and underwater vehicles, and applying them to mass market commercial applications, such as lithium-ion battery energy storage, electric vehicles, 5G, cloud computer infrastructure, consumer and industrial devices.
It is also applying its zero-vibration technology to fans in commercial markets which has already resulted in licensing agreements.

Ohba (9765 Jp) – Announced FY2025/5 Dividend Forecast Increase and Expanded Shareholder Benefits

By Sessa Investment Research

Dividend Increase | On March 13, 2025, OHBA (hereafter, the Company) announced an increase to its FY2025/5 dividend forecast.
Prior to the announcement, the Company had planned to pay dividends of JPY 20.00 in H1 and JPY 20.00 in H2, for a total of JPY 40.00.
However, OHBA decided to increase its H2 dividend by JPY 2.00 to JPY 22.00 (for a full-year dividend of JPY 42.00).

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Apr 10

Daily Brief Health Care: Jiangsu Hengrui Medicine, Amvis Holdings Inc, BrainStorm Cell Therapeutics I, Mckesson Corp and more

By Smartkarma Daily Briefs | Daily Briefs, Healthcare

In today’s briefing:

Jiangsu Hengrui Pharma A/H Listing – Recent Updates and Thoughts on A/H Premium
Amvis Holdings Inc (7071 JP): Deteriorating Margin to Limit Near-Term Upside Potential
BrainStorm Cell Therapeutics (BCLI) – Fundamentals Update 09042025
Is McKesson Wall Street’s Safe Haven? How This Drug Giant Can Thrive In Uncertain Times!

Jiangsu Hengrui Pharma A/H Listing – Recent Updates and Thoughts on A/H Premium

By Sumeet Singh

Jiangsu Hengrui Medicine (600276 CH) (JHP), a China-based pharmaceutical company, aims to raise around US$2bn in its H-share listing.
JHP has been ranked as one of the global Top 50 pharmaceutical companies by Pharm Exec for six consecutive years since 2019.
We have looked at the company’s past performance in our previous note. In this note, we talk about the recent updates and provide our thoughts on the possible A/H premium.

Amvis Holdings Inc (7071 JP): Deteriorating Margin to Limit Near-Term Upside Potential

By Tina Banerjee

While Amvis Holdings Inc (7071 JP) expects decelerating revenue growth of 26% for FY25 (FY24: 33%), EBITDA, operating, and net profits are likely to decline 9–22%.
Personnel expenses as % of sales surged to 49.3% in Q1FY25 from 44.6% in Q1FY24. The trend is expected to continue with the increase in staff and training cost.
Decelerating revenue growth, margin erosion, aggressive business expansion, and overhang related to improperly claimed medical service fee will limit the near-term upside potential for Amvis.

BrainStorm Cell Therapeutics (BCLI) – Fundamentals Update 09042025

By ACF Equity Research

BrainStorm Cell Therapeutics Inc. (Nasdaq: BCLI) develops NurOwn® stem cell therapy for NDDs – BCLI’s first target is ALS (MND/Lou Gehrig’s).
Recent micro capitalization and patent development buy time for non-dilutive funding to be secured.
BCLI’s Nasdaq compliance for minimum price was regained in late Oct 24, which helps maintain capital access.

Is McKesson Wall Street’s Safe Haven? How This Drug Giant Can Thrive In Uncertain Times!

As markets reel from the reimposition of tariffs on Mexico and Canada, investors are scrambling for stability in a landscape marked by global trade uncertainty and rising macroeconomic risk.
While the broader market has faltered, McKesson Corporation, the largest drug distributor in the U.S., has quietly emerged as a defensive standout.
The company’s supply chain resilience, diversified business model, and essential role in healthcare delivery position it as a stock that is potentially insulated from the brunt of economic and policy headwinds.

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Apr 10

Daily Brief TMT/Internet: HKBN Ltd, Taiwan Semiconductor (TSMC) – ADR, Samsung SDI, NVIDIA Corp, Clear Secure, Wex Inc, Concentrix Corporation, Intel Corp, Lions Gate Entertainment and more

By Smartkarma Daily Briefs | Daily Briefs, TMT/Internet

In today’s briefing:

HKBN (1310 HK): China Mobile Agrees to Acquire TPG’s Stake
Taiwan Dual-Listings Monitor: TSMC Spread Near Short Level; ASE & ChipMOS Spreads Good Short Levels
Samsung SDI: Rights Offering Capital Raise Amount Lowered by 14% to 1.7 Trillion Won
HKBN (1310 HK): TPG Cashes In Early
Nvidia Is Getting Hit by Tariffs—But Here’s How It Plans to Fight Back!
CLEAR Secure: The Biometric Technology Advancements & Critical Growth Enablers!
WEX Doubles Down on Marketing Muscle To Try & Capture The Payments & Benefits Sectors – But Will It Work?
Concentrix Corporation: Expanding Client Base & Capitalizing On Consolidation Opportunities…
Intel’s High-Stakes Reboot: Can the TSMC Tie-Up and Lip-Bu Tan’s Strategy Save the Chip Giant?
Lions Gate Entertainment Strikes Gold with New TV Hits & Bold Digital Expansion!

HKBN (1310 HK): China Mobile Agrees to Acquire TPG’s Stake

By Arun George

China Mobile (941 HK) has entered a share purchase agreement to acquire TPG’s HKBN Ltd (1310 HK) shares and vendor loan note conversion shares by 28 November.
On completion, TPG will be released from its irrevocable, which has a competing offer clause. China Mobile’s agreement signals its expectation that I Squared will launch a competing proposal.
The agreement will not change I Squared’s approach as it would not negatively impact regulatory approvals (a key risk) or prevent it from meeting a 50% minimum tendering condition.

Taiwan Dual-Listings Monitor: TSMC Spread Near Short Level; ASE & ChipMOS Spreads Good Short Levels

By Vincent Fernando, CFA

TSMC: +18.9% Premium; Soon at a Good Level to Short the Spread
ASE: +6.5% Premium; Good Level to Short the Spread Given Trading Range Breakdown
ChipMOS: +6.6% Premium; 2% And Higher Good Level to Short the Spread

Samsung SDI: Rights Offering Capital Raise Amount Lowered by 14% to 1.7 Trillion Won

By Douglas Kim

Samsung SDI (006400 KS) has lowered the rights offering capital raise amount by 14% to 1.7 trillion won, mainly due to the recent carnage in the global equity markets.
The expected rights offering price has been lowered to 146,200 won, which is 14.9% lower than current price.
We remain negative on Samsung SDI’s rights offering capital raise mainly due to shares dilution risk. We also remain concerned that the weak demand for EVs globally could last longer.

HKBN (1310 HK): TPG Cashes In Early

Back in December, China Mobile (941 HK) made a pre-conditional HK$5.23/share voluntary Offer for HKBN (1310 HK). The wild card is whether I Squared launches a counter-proposal.
This transaction has no shortage of intriguing developments. Last month, MBK mysteriously converted its VLNs. Now TPG has entered into an SPA with Mobile to sell its 15.46% stake.
IF I Squared were to make a counter-proposal, I doubt it would secure the necessary regulatory approvals. Evidently TPG is not waiting around to find out.

Nvidia Is Getting Hit by Tariffs—But Here’s How It Plans to Fight Back!

The semiconductor sector has been rattled by a wave of tariff escalations, with Nvidia at the center of attention.
President Donald Trump’s recent imposition of steep new tariffs—34% on imports from China and 32% on Taiwan—sent shockwaves across the global technology industry.
While semiconductors were initially exempted from the levies, the ambiguity in policy messaging and the potential for future inclusion have raised investor concerns.

CLEAR Secure: The Biometric Technology Advancements & Critical Growth Enablers!

CLEAR, known for its identity verification platform, reported its fiscal fourth quarter and full-year 2024 results demonstrating both opportunities and challenges.
The company continues to expand its footprint in the travel sector, with a notable presence in 73% of U.S. airports through 166 lanes nationwide.
The rollout of the NextGen Identity technology, including innovative systems such as EnVe’s (enrollment and verification Pods), has been a focal point—improving member throughput and enhancing the customer experience significantly.

WEX Doubles Down on Marketing Muscle To Try & Capture The Payments & Benefits Sectors – But Will It Work?

WEX Inc. reported its fourth-quarter and full-year 2024 financial results, reflecting a complex mix of positive and negative developments.
The company’s full-year revenue reached a record high of $2.6 billion, a modest 3% increase compared to the previous year, despite headwinds from fluctuating fuel prices and foreign exchange rates.
Excluding these factors, revenue growth was more robust at 6%.

Concentrix Corporation: Expanding Client Base & Capitalizing On Consolidation Opportunities…

Concentrix Corporation presented a mixed overview of its performance for the first quarter of fiscal 2025, achieving revenue growth and profitability ahead of guidance, yet facing strategic and operational challenges.
On the positive side, Concentrix reported a solid demand environment, with a particular emphasis on the growing adoption of their GenAI solutions across its client base, claiming one of the largest scales in global deployments of such technology.
The company emphasized its strategic focus on integrating AI solutions and expanding its business portfolio to deliver value across a broader client base.

Intel’s High-Stakes Reboot: Can the TSMC Tie-Up and Lip-Bu Tan’s Strategy Save the Chip Giant?

Intel is navigating one of the most pivotal moments in its corporate history as new CEO Lip-Bu Tan begins implementing a series of structural reforms aimed at reversing the chipmaker’s prolonged decline.
In recent weeks, a series of bold announcements and market-moving headlines have brought Intel’s turnaround efforts back into the spotlight.
The most notable development is a tentative joint venture with Taiwan Semiconductor Manufacturing Company (TSMC), where TSMC is expected to take a 20% stake in Intel’s loss-making manufacturing business in exchange for sharing advanced foundry techniques.

Lions Gate Entertainment Strikes Gold with New TV Hits & Bold Digital Expansion!

Lionsgate secured a solid performance in the third quarter of fiscal 2025, demonstrating resilience in a challenging operating environment.
The Motion Picture segment was particularly strong, highlighted by the successful conversion of three mid-budget films into profitable ventures.
This performance underscores Lionsgate’s ability to effectively manage mid-range budget productions, capitalizing on steady box office showings, robust business models, and efficient execution.

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Apr 10

Daily Brief Industrials: CK Hutchison Holdings, Daihatsu Diesel Mfg, DL E&C , Jain Resource Recycling, Daiseki Co Ltd, ISDN Holdings, KULR Technology Group , Ohba Co Ltd and more

By Smartkarma Daily Briefs | Daily Briefs, Industrials

In today’s briefing:

CK Hutch (1 HK): Back To Square One
USTR Hearings on Section 301 China Maritime Dominance – Fees on Chinese Ships
A Pair Trade Between DL Holdings and DL E&C
Jain Resource Recycling Pre-IPO Tearsheet
Daiseki Co Ltd (9793 JP): Full-year FY02/25 flash update
kopi-C with ISDN Holdings: Seizing the Moment in Automation: ISDN’s Vision for Future-Proofing and Sustainable Growth
KULR Technology Group Inc.
Ohba (9765 Jp) – Announced FY2025/5 Dividend Forecast Increase and Expanded Shareholder Benefits

CK Hutch (1 HK): Back To Square One

The irony is that CKH (1 HK)‘s Panama-port sale was probably prompted, at least in part, by a desire to get out of a situation which was becoming increasingly political.
Instead, it has thrust the company right into the heart of it. And the share price has now given up all of its initial gains. And then some.
After Panama’s Attorney General recently determined CK Hutchison’s concessions were unconstitutional, the Comptroller-General has now announced that an audit had found “many breaches” of the concession.

USTR Hearings on Section 301 China Maritime Dominance – Fees on Chinese Ships

The original issues were discussed in depth in The USTR’s New “Proposed Actions” For Section 301 Investigation on China’s Maritime/Shipping Sectors (now unpaywalled). Hearings took place 24-26 March 2025.
The hearings were long, and comments were predictable. Those supporting the measures offered evidence which was simply incorrect. Those against tried. Post-hearing comments were due 2 April.
We don’t yet know what will happen, but if they stay in place, starting 17 April, US exports of grain/pulses, coal, etc will suffer. Imports will see higher costs too.

A Pair Trade Between DL Holdings and DL E&C

By Douglas Kim

In this insight, we discuss a pair trade between DL Holdings Co (000210 KS) (go long) and DL E&C (375500 KS) (go short).
In the past three months, DL Holdings’ share price is down 9.9% versus DL E&C which is up 21%. We believe this gap has become too excessive.
The shares sold short volume/total traded volume ratio is more than double for DL E&C versus DL Holdings from 31 March to 9 April.

Jain Resource Recycling Pre-IPO Tearsheet

By Akshat Shah

Jain Resource Recycling (2300699D IN) is looking to raise about US$234m in its upcoming India IPO. The deal will be run by ICICI, Motilal, DAM and PL Capital.
The company is primarily focused on manufacturing of non-ferrous metal products by recycling of non-ferrous metal scrap. It is also engaged in trading of non-ferrous metals and other commodities.
According to CRISIL, it was the largest and fastest-growing non-ferrous metal recycling business, in terms of revenue for FY22-24 in India.

Daiseki Co Ltd (9793 JP): Full-year FY02/25 flash update

By Shared Research

Daiseki’s FY02/25 sales declined 2.8% YoY to JPY67.3bn, exceeding the forecast of JPY66.0bn.
Operating profit fell 3.3% YoY to JPY14.3bn, impacted by TOB-related expenses and heavy snowfall.
FY02/26 forecast: Sales JPY70.0bn (+4.0% YoY), operating profit JPY15.7bn (+9.7% YoY), OPM 22.4% (+1.1pp YoY).

kopi-C with ISDN Holdings: Seizing the Moment in Automation: ISDN’s Vision for Future-Proofing and Sustainable Growth

By Geoff Howie

ISDN Holdings is expanding its industrial automation capabilities and exploring opportunities in China, Taiwan, and Malaysia.
The company is building a renewable energy vertical with hydropower plants in Indonesia, aiming for sustainable income.
ISDN has over 10,000 customers and 74 offices in Asia, serving sectors like semiconductors and Industry 4.0.

KULR Technology Group Inc.

By Zacks Small Cap Research

KULR Technology Group, Inc. develops and commercializes high-performance thermal management technologies for electronics, batteries, and other components across a range of applications.
Currently, it is focused on high performance aerospace and Department of Defense applications, such as space exploration, satellite communications, and underwater vehicles, and applying them to mass market commercial applications, such as lithium-ion battery energy storage, electric vehicles, 5G, cloud computer infrastructure, consumer and industrial devices.
It is also applying its zero-vibration technology to fans in commercial markets which has already resulted in licensing agreements.

Ohba (9765 Jp) – Announced FY2025/5 Dividend Forecast Increase and Expanded Shareholder Benefits

By Sessa Investment Research

Dividend Increase | On March 13, 2025, OHBA (hereafter, the Company) announced an increase to its FY2025/5 dividend forecast.
Prior to the announcement, the Company had planned to pay dividends of JPY 20.00 in H1 and JPY 20.00 in H2, for a total of JPY 40.00.
However, OHBA decided to increase its H2 dividend by JPY 2.00 to JPY 22.00 (for a full-year dividend of JPY 42.00).

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Apr 10

Daily Brief Consumer: Seven & I Holdings, YG Entertainment, Shanghai Shenzhen CSI 300 Index, LG Electronics India, Shimano Inc, NIFTY Index, Tempur Sealy International, Tesla , Conagra Foods, Trial Holdings and more

By Smartkarma Daily Briefs | Consumer, Daily Briefs

In today’s briefing:

7&I (3382) – FY24 Better, FY25 OK, Surprisingly Large Buyback
June Value-Up Rebalance: Hype Fading, But Key Flags Remain
China ETF Inflows & Implications: Central Huijin’s Huge Buying
LG Electronics India IPO: The Bull Case
Shimano (7309) | Gears Grinding
NIFTY Index Rally Outlook After Trump’s Tariffs PAUSE
Somnigroup (Tempur Sealy International): Launch of New Sealy Products & Other Key Developments!
Tesla’s Freefall: Why Sales Are Plunging, Executives Are Leaving, and Investors Are Panicking!
Conagra Brands: Powering Through Inflation with Bold Pricing & Sourcing Moves!
Trial Purchase of Seiyu Creates New Japanese Retail Power

7&I (3382) – FY24 Better, FY25 OK, Surprisingly Large Buyback

Today, Seven & I Holdings (3382 JP) reported full-year earnings. The FY2025 guidance looks OK. Not overly exciting. Optically, it falls short, but 7&i guidance includes York only for H1.
The basic outlines of strategy in the Presentation are unchanged from the 6 March strategy report. The company seems convinced an IPO of SEI is a good thing. I’m underwhelmed.
The company also announced that it would bring forward ¥600bn of its planned 6-year ¥2trln buyback program, and execute it this year. That’s good.

June Value-Up Rebalance: Hype Fading, But Key Flags Remain

By Sanghyun Park

June rebalance drops mid-May, goes live post-KOSPI 200 expiry. Back to 100 names—net outflow setup with more deletes than adds. ETFs rebalance into June 12 close.
KRX confirmed 10 special entries for June; results likely out in May with Value-Up rebalance. 12 protected names stay. Stocks over 10% weight, like Samsung and SK Hynix, remain.
Value-Up disclosure isn’t mandatory yet—rule starts June 2026. But compliant firms get a screening boost. Around 76 spots remain, filled via quant screen after excluding 24 protected names.

China ETF Inflows & Implications: Central Huijin’s Huge Buying

Nearly US$22bn has flowed into mainland China listed ETFs over the last 3 trading days, reversing outflows that started in mid February.
Central Huijin has announced that it will be increasing its ETF holdings to maintain smooth operation of China’s capital markets. The rest of the National Team will be buying too.
There are multiple implications of the huge ETF creations in a short time frame and a reversal of flows will lead to a reversion in a bunch of trades.

LG Electronics India IPO: The Bull Case

By Arun George

LG Electronics India (123D IN)/LGEIL, a subsidiary of LG Electronics (066570 KS), aims to raise up to US$1.5 billion through a secondary offering (15% of outstanding shares).
According to Redseer, as of 30 June 2024, LGEIL was the market leader in India in major home appliances and consumer electronics (excluding mobile phones) in terms of volume.
The bull case rests on a strong market position, solid revenue growth, top-tier operating and FCF margin profile.

Shimano (7309) | Gears Grinding

By Mark Chadwick

US tariffs could sharply cut Shimano’s H2 operating profit by up to 57%, despite limited direct exposure, due to opaque supply chains via China and Taiwan.
Valuation would look stretched at 25x EV/EBIT versus historical 20x, if earnings fall short of current guidance.
Shimano’s ¥530bn net cash pile offers room to boost shareholder returns through buybacks or dividends.

NIFTY Index Rally Outlook After Trump’s Tariffs PAUSE

By Nico Rosti

The NIFTY Index (NIFTY INDEX) post-crash bounce peaked around 4.4% before stalling—mirroring the fading rebounds seen across global indices.
The index has yet to reach levels attractive for shorting, but with two days remaining before the weekend, any positive tariff-related news will push the index towards the targets.
This insight highlights key price levels for initiating tactical shorts or exiting longs, depending on the tariffs scenario that, once again, changed dramatically from one day to the next.

Somnigroup (Tempur Sealy International): Launch of New Sealy Products & Other Key Developments!

Somnigroup Group International, formerly known as Tempur Sealy International, has undergone a significant transformation with the completion of the merger with Mattress Firm, officially operating under the new name Somnigroup Group International.
This merger creates a global sleep solutions provider encompassing well recognized brands such as Tempur Sealy, Dreams, and Mattress Firm, each operating under their brand names within a decentralized framework.
The financial results of Mattress Firm will be included in the forthcoming quarters.

Tesla’s Freefall: Why Sales Are Plunging, Executives Are Leaving, and Investors Are Panicking!

Tesla is facing one of its most turbulent periods in recent memory.
In just the past few weeks, the electric vehicle giant reported its worst quarterly deliveries since 2022, saw its stock fall over 44% from its December peak, and lost one of its top software executives.
Tesla’s Q1 2025 vehicle deliveries came in significantly below expectations at 336,681 units, triggering a wave of analyst downgrades, with JPMorgan citing “unprecedented brand damage” as a key factor.

Conagra Brands: Powering Through Inflation with Bold Pricing & Sourcing Moves!

Conagra Brands recently reported its third-quarter fiscal 2025 financial results.
A nuanced analysis reveals both strengths and challenges the company is navigating in a dynamic macroeconomic environment.
On the positive side, Conagra Brands highlighted robust consumer demand for its products.

Trial Purchase of Seiyu Creates New Japanese Retail Power

By Michael Causton

Until last year, Trial was a Kyushu-based discount FMCG retailer, that had just completed its IPO.
Today, it is one of the largest FMCG retailers in the country having won the bidding to acquire Seiyu from foster care under KKR.
This is a massive development that will pressure other rivals to step up in order to compete.

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Apr 10

Daily Brief Financials: Abacus Storage King, Greentown China, Runwal Enterprises Limited and more

By Smartkarma Daily Briefs | Daily Briefs, Financials

In today’s briefing:

Abacus Storage (ASK AU): Kirsh/Public Storage Buck Market Volatility With NBIO
Lucror Analytics – Morning Views Asia
Runwal Enterprises Ltd Pre-IPO Tearsheet

Abacus Storage (ASK AU): Kirsh/Public Storage Buck Market Volatility With NBIO

Ki Corporation and Public Storage (PSA US) together announced a NBIO, by way of a Scheme, to acquire all of the outstanding securities of Abacus Storage (ASK AU) not held.
The indicative offer of A$1.47/stapled security is a 26.7% premium to undisturbed and ~8% discount to the latest NTA/security. Nathan Kirsh directly/indirectly holds a 59.47% stake in ASK.
Trading at a gross/annualised spread of 6.9%/10.9%, assuming late Nov completion. That’s tight given timing risk, and terms not being firm.

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: Greentown China
In the US, the NFIB small business optimism index declined to 97.4 (99.0 e / 100.7 p), just below the 51-year average of 98.
US President Donald Trump’s tariffs are set to take effect from midnight ET today, according to the US Customs and Border Protection.

Runwal Enterprises Ltd Pre-IPO Tearsheet

By Rosita Fernandes

Runwal Enterprises Limited (2300329D IN) (REL) is planning to raise about US$117m through its upcoming India IPO. The lead bookrunners for the deal are ICICI, Jefferies.
REL is a real estate developer engaged across the full spectrum of real estate, with a focus on residential (affordable to luxury), commercial spaces, retail malls, and educational buildings.
As per JLL Report, between Jan 19 and Sept 24, Runwal Enterprises ranked 2nd in Mumbai for both new launches (5.69%) and sales (5.25%).

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Apr 10

Most Read: Bestechnic Shanghai , De Grey Mining, ESR Group , Seven & I Holdings, CK Hutchison Holdings, Daihatsu Diesel Mfg, HKBN Ltd, Taiwan Semiconductor (TSMC) – ADR, YG Entertainment, Shanghai Shenzhen CSI 300 Index and more

By Smartkarma Daily Briefs | Daily Briefs, Most Read

In today’s briefing:

STAR50/STAR100 Index Rebalance Preview: Central Huijin’s ETF Creations Skew Performance
Aussie Arbs: Trump Tariffs And MACs
Hong Kong Arbs: (Largely) Immune From Trump Tariffs
7&I (3382) – FY24 Better, FY25 OK, Surprisingly Large Buyback
CK Hutch (1 HK): Back To Square One
USTR Hearings on Section 301 China Maritime Dominance – Fees on Chinese Ships
HKBN (1310 HK): China Mobile Agrees to Acquire TPG’s Stake
Taiwan Dual-Listings Monitor: TSMC Spread Near Short Level; ASE & ChipMOS Spreads Good Short Levels
June Value-Up Rebalance: Hype Fading, But Key Flags Remain
China ETF Inflows & Implications: Central Huijin’s Huge Buying

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

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.

Aussie Arbs: Trump Tariffs And MACs

Travis Lundy succinctly summarised the Trump Tariffs in Trump Team’s Weird Tariff Math – Not Meant to Be Negotiated. Do read his note.
From an arb standpoint, most (all?) NBIOs will likely see a downward revision in pricing. Vote risk should also be reduced.
Such tariffs on predominantly domestic businesses should not trigger material adverse changes (MACs) Down Under. But it is still a worthwhile project to dig a little deeper.

Hong Kong Arbs: (Largely) Immune From Trump Tariffs

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.

7&I (3382) – FY24 Better, FY25 OK, Surprisingly Large Buyback

Today, Seven & I Holdings (3382 JP) reported full-year earnings. The FY2025 guidance looks OK. Not overly exciting. Optically, it falls short, but 7&i guidance includes York only for H1.
The basic outlines of strategy in the Presentation are unchanged from the 6 March strategy report. The company seems convinced an IPO of SEI is a good thing. I’m underwhelmed.
The company also announced that it would bring forward ¥600bn of its planned 6-year ¥2trln buyback program, and execute it this year. That’s good.

CK Hutch (1 HK): Back To Square One

The irony is that CKH (1 HK)‘s Panama-port sale was probably prompted, at least in part, by a desire to get out of a situation which was becoming increasingly political.
Instead, it has thrust the company right into the heart of it. And the share price has now given up all of its initial gains. And then some.
After Panama’s Attorney General recently determined CK Hutchison’s concessions were unconstitutional, the Comptroller-General has now announced that an audit had found “many breaches” of the concession.

USTR Hearings on Section 301 China Maritime Dominance – Fees on Chinese Ships

The original issues were discussed in depth in The USTR’s New “Proposed Actions” For Section 301 Investigation on China’s Maritime/Shipping Sectors (now unpaywalled). Hearings took place 24-26 March 2025.
The hearings were long, and comments were predictable. Those supporting the measures offered evidence which was simply incorrect. Those against tried. Post-hearing comments were due 2 April.
We don’t yet know what will happen, but if they stay in place, starting 17 April, US exports of grain/pulses, coal, etc will suffer. Imports will see higher costs too.

HKBN (1310 HK): China Mobile Agrees to Acquire TPG’s Stake

By Arun George

China Mobile (941 HK) has entered a share purchase agreement to acquire TPG’s HKBN Ltd (1310 HK) shares and vendor loan note conversion shares by 28 November.
On completion, TPG will be released from its irrevocable, which has a competing offer clause. China Mobile’s agreement signals its expectation that I Squared will launch a competing proposal.
The agreement will not change I Squared’s approach as it would not negatively impact regulatory approvals (a key risk) or prevent it from meeting a 50% minimum tendering condition.

Taiwan Dual-Listings Monitor: TSMC Spread Near Short Level; ASE & ChipMOS Spreads Good Short Levels

By Vincent Fernando, CFA

TSMC: +18.9% Premium; Soon at a Good Level to Short the Spread
ASE: +6.5% Premium; Good Level to Short the Spread Given Trading Range Breakdown
ChipMOS: +6.6% Premium; 2% And Higher Good Level to Short the Spread

June Value-Up Rebalance: Hype Fading, But Key Flags Remain

By Sanghyun Park

June rebalance drops mid-May, goes live post-KOSPI 200 expiry. Back to 100 names—net outflow setup with more deletes than adds. ETFs rebalance into June 12 close.
KRX confirmed 10 special entries for June; results likely out in May with Value-Up rebalance. 12 protected names stay. Stocks over 10% weight, like Samsung and SK Hynix, remain.
Value-Up disclosure isn’t mandatory yet—rule starts June 2026. But compliant firms get a screening boost. Around 76 spots remain, filled via quant screen after excluding 24 protected names.

China ETF Inflows & Implications: Central Huijin’s Huge Buying