Smartkarma Daily Briefs

By In Good Company with Nicolai Tangen

Tsumura & Co (4540 JP) shocked everyone a year ago when they announced an immediate large price hike across the board for its kampo medicines. The stock was +35% immediately.
It did not fall back. Now the stock is up 60% from a year ago and earnings are too. It’s still <10x PER. Now we get a ¥10bn secondary offering.
It’s 12 days of ADV but not super heavy, and there is a buyback on the back end.

Mayne Pharma (MYX AU): Cosette’s A$7.40/Share Scheme

By David Blennerhassett

Mayne Pharma (MYX AU), a leader in dermatology and women’s health, has entered into a Scheme Implementation Deed with US-based pharmaceutical outfit, Cosette Pharmaceuticals.
Cosette is offering A$7.40/share, a 37% premium to last close. Apart from Mayne’s shareholder approval, the Offer requires FIRB signing off.
The Offer also has the backing of Mayne’s two largest shareholder, Viburnum and Bruce Mathieson, collectively holding 14.1%. Implementation is expected late May, early June 2025. This is done.

Eli Lilly CEO: The Weight-Loss Drug Revolution, AI in Pharma, and Innovation

Development of medicine for weight loss and diabetes has evolved over time, with newer drugs like Tirzepatide showing dual actions for weight loss and metabolic benefits
These drugs have potential to impact behaviors like smoking, alcohol consumption, and potentially drug addiction, but further studies are needed
Blue sky scenario for future impact includes potential for weight management to become a choice rather than an affliction, and reduction in downstream diseases of obesity like cardiovascular risk and kidney disease, which account for a significant portion of healthcare costs

This content is sourced through publicly available sources and has been machine generated. Information displayed is for general informational purposes only.

Gilead Sciences: Pipeline Progress & Regulatory Milestones As A Pivotal Growth Lever!

Gilead Sciences Inc. delivered a strong performance in the fourth quarter and full year 2024, with significant revenue growth driven by its core business areas despite facing some industry-specific and macroeconomic challenges.
Positives from the earnings results include a robust increase in product sales, excluding Veklury (remdesivir), demonstrating an 8% year-over-year growth, reaching $26.8 billion.
The primary driver was the HIV portfolio, which exceeded expectations with an 8% growth to $19.6 billion for the year, led by the leading HIV treatment, Biktarvy, which saw a 13% increase in sales.

4576 JP – Notice of Approval of Ophthalmic Surgical Aid “DW-1002” in China

By Sessa Investment Research

DWTI announced that ophthalmic surgical aid product “DW-1002” has been approved by the National Medical Products Administration (NMPA) in China for the indication of staining of the internal limiting membrane (ILM) during vitreous surgery, as reported by the Company’s sublicensee Dutch Ophthalmic Research Center International B.V. (DORC).
This drug is already being sold in 76 countries and regions around the world, including Europe and the United States, and sales are progressing favorably.
The graph below shows the annual trend of DW-1002 royalty income to DWTI from DORC. In China, it is scheduled to be launched under the product name ILM-BlueⓇ

LNTH: Earnings Report Next Week

By Zacks Small Cap Research

Lantheus is a leader in radiopharmaceutical offerings in oncology & precision diagnostics.
It offers a portfolio of diagnostic & therapeutic products directly & via partnerships & licensing.
The primary revenue driver is Pylarify, a PET tracer for PSMA-expressing prostate cancer.

NRXBF: US Investors Should Pay Attention

By Zacks Small Cap Research

NurExone (OTC-NRXBF) is a preclinical stage biotech company that is developing a breakthrough treatment for spinal cord injuries that has the potential to dramatically improve lives.
The technology involved also has the potential to more efficiently get other treatments to the needed area.
The company’s stock has performed exceptionally well in Canada and is expanding its presence in the US.

IDEXX: Pet Healthcare Could Be An Investor’s Best Friend

By Finimize Research

IDEXX Laboratories, a $35 billion company, is a global leader in veterinary diagnostics, selling and developing the tools that help vets diagnose and treat animals.
IDEXX operates a highly recurring, subscription-like business model, particularly in its Companion Animal Group (CAG), which accounts for over 90% of its revenue.
IDEXX is a cash-generating, high-return compounder at the center of a booming industry and stock looks undervalued right now.

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Feb 21

Daily Brief Energy/Materials: China National Building Material, SGX Rubber Future TSR20, Crude Oil, Eid Parry India, Boustead Singapore Limited, Southern Copper, Nicola Mining, PetroTal, Pharos Energy and more

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

In today’s briefing:

CNBM (3323 HK): Whitewash Waiver Secured. Next Is The Proration
Heartening Rubber Production Figures For Malaysia In 2024
China National Building Material (3323 HK): Buyback Approved and Implications
OPEC Keeps Oil Demand Forecasts Steady While the EIA and IEA Raise Outlook for 2025
E.I.D. Parry Q3FY25 Update: Strong Nutraceutical Performance Despite Sugar Segment Challenge
Boustead Singapore Meeting (BOCS SP)
Southern Copper Corporation: The 6 Most Significant Forces Steering Its Performance into 2025 & Beyond!
NIM: Successful 2024 Drill Campaign; Setting Up for 2025
PetroTal Corp (AIM: PTAL): 208% 2P Reserves Replacement Ratio
Pharos Energy Plc (LSE: PHAR): MOU with EGPC in Egypt to improve terms and licence duration

CNBM (3323 HK): Whitewash Waiver Secured. Next Is The Proration

By David Blennerhassett

On the 6th December 2024, China National Building Material (3323 HK) (CNBM), China’s leading building materials company, offered to buy back 841,749,304 H-shares at HK$4.03/share, a 15.1% premium to undisturbed.
This elevated CNBM’s parent’s stake to 50.01% of total shares from 45.02% currently, necessitating a whitewash waiver so the parent would not be obliged to make a full blown offer.
Independent H-shareholder overwhelmingly approved the waiver yesterday, the 19th February. Tendering closes on the 5th March. Minimum pro-ration is 19.24%. I’m estimating at least 35%. The Offer is now unconditional.

Heartening Rubber Production Figures For Malaysia In 2024

By Vinod Nedumudy

Year-on-year increase of 11.06% in NR production in 2024
Ivory Coast once again upstages Thailand in imports
Seed collection and sales to nurseries turn revenue spinner for smallholders

China National Building Material (3323 HK): Buyback Approved and Implications

By Osbert Tang, CFA

China National Building Material (3323 HK)‘s proposed H-share buyback has been approved. We continue to support existing shareholders to tender their holdings to accept the offer.
The buyback will enhance FY25 and FY26 EPS by 4.8% and 8.2%, respectively. Its book value will increase by 11% compared to without a buyback.
The post-buyback FY25 PER of 9.6x is at a premium to the sector median of 7.6x. The proposal has led to significant outperformance, and we anticipate downside risks on completion.

OPEC Keeps Oil Demand Forecasts Steady While the EIA and IEA Raise Outlook for 2025

By Suhas Reddy

OPEC kept its 2025 and 2026 oil demand growth forecasts steady, while EIA and IEA raised their estimates for 2025 by 3% and 4.8%, respectively.
EIA sees India leading oil demand growth, with consumption rising 0.3m bpd in 2025 and 2026, while China’s demand is expected to increase by 0.2m bpd over the same period.
Among the nine OPEC members with quotas, production fell 107k bpd MoM to 21.23m bpd, just below the 21.24m bpd target. Saudi Arabia led the decline in output.

E.I.D. Parry Q3FY25 Update: Strong Nutraceutical Performance Despite Sugar Segment Challenge

Eid Parry India (EID IN)‘s consolidated Q3 & 9M FY25 results show a 12% revenue growth and a 79% surge in EBITDA, despite challenges in its sugar segment.
The robust margins and diversified revenue streams strengthen EID Parry’s overall resilience, enabling it to offset sector-specific challenges and tap into emerging growth opportunities.
The Company’s future capital allocation is expected to prioritize ethanol blending and consumer products, contingent on a sustainable policy framework.

Boustead Singapore Meeting (BOCS SP)

By Michael Fritzell

I had the great pleasure of meeting with Boustead Singapore’s Chief Investment Officer, Keith Chu, and Head of Investor Relations, Dominic Seow, at their headquarters at the Edward Boustead Centre in Singapore.
The meeting was set up by our friends at Smartkarma, whose analysts have covered Boustead Singapore in the past.
While the stock price has risen +15% over the past year, it still trades at just 6.8x trailing P/E and 9.4x forward P/E.

Southern Copper Corporation: The 6 Most Significant Forces Steering Its Performance into 2025 & Beyond!

Southern Copper Corporation’s third-quarter and nine-month results for 2024 reflect a mixed performance with several key highlights and challenges.
On the positive side, the company saw a significant boost in sales, production, and profitability.
Revenue for the third quarter of 2024 increased to $2.9 billion, a 17% rise from the same period in 2023, mainly driven by a 21% rise in copper sales value and an 8% rise in copper sales volume.

NIM: Successful 2024 Drill Campaign; Setting Up for 2025

By Atrium Research

What you need to know: • Nicola announced drill results from its 14-hole, 4,874m drill program at its New Craigmont Copper Project.
• Hole NC-24-002 intersected 1.03% Cu over 52.9m, highlighting significant copper mineralization at this target.
• We remind readers of NIM’s partner Blue Lagoon Resources which recently secured final mine permits for its Dome Mountain Gold Project.

PetroTal Corp (AIM: PTAL): 208% 2P Reserves Replacement Ratio

By Auctus Advisors

YE24 1P, 2P and 3P reserves at Bretana were estimated at 62.9 mmbbl (YE23: 48 mmbbl), 108 mmbbl (YE23: 100.2 mmbbl) and 206.6 mmbbl (YE23: 199.6 mmbbl) respectively.
Additionally, Los Angeles is now estimated to hold 5.8 mmbbl of 2P reserves, an increase of 1.5 mmbbl from previous estimates.
Overall, the new reserves estimates represent a Reserves Replacement Ratio of 293% for 1P and 208% for 2P reserves.

Pharos Energy Plc (LSE: PHAR): MOU with EGPC in Egypt to improve terms and licence duration

By Auctus Advisors

Pharos and IPR have signed a non-binding MOU with EGPC to use their best efforts to conclude negotiations for the merger of the El Fayum and North Beni Suef Concession Agreements.
While there is limited information at this stage, this is an important step that would unlock further investment through better fiscal terms and longer licence duration.
The El-Fayum licence has a current expiry date of 2034 (including a 5 year extension), with 9 years remaining.

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Feb 21

Daily Brief Consumer: Proto Corp, Alibaba Group Holding , E Mart Inc, Kalyan Jewellers, Jyp Entertainment, Mcdonald’s Corp, Innova Captab, DoorDash , Marriott International and more

By Smartkarma Daily Briefs | Consumer, Daily Briefs

In today’s briefing:

Proto Corp (4298) – Large Active Holders Going Activish-Y
Proto Corp (4298 JP): Kaname Capital Throws a Spanner in the Works
Alibaba (BABA): 3Q25, Main Business Growth Close to Double Digits
Growing Importance of ACT – Korea’s Largest Minority Shareholders Platform
Kalyan Jewellers (KALYANKJ IN) | FOCO Model Warrants Attention
China Could Lift Ban on Korean Popular Culture (Hallyu) As Early As May 2025
McDonald’s: $100 Million Recovery Plan & 2,200 New Stores – Can It Bounce Back?
Innova Captab Limited: Q3 FY25 Update
DoorDash Inc.: Expansion Into New Verticals & Enhancing Grocery Delivery To Catalyze Growth!
Marriott International: How It’s Monetizing Loyalty & Direct Bookings!

Proto Corp (4298) – Large Active Holders Going Activish-Y

When the deal was announced, I wrote that the MBO for Proto Corp (4298 JP) was opportunistic and was possibly “vulnerable” to activist attentions (original insight here).
On the 17th, one large active holder Ancient Arts LP filed an amendment to their Large Shareholder Filing showing a change in Reason for Investment.
On the 18th of Feb, top independent shareholder Kaname Capital reported an increase in stake and sent Open Letters which appear only now to be circulating. It’s worth a look.

Proto Corp (4298 JP): Kaname Capital Throws a Spanner in the Works

By Arun George

Kaname Capital, the second-largest shareholder of Proto Corp (4298 JP), has issued an open letter stating that the JPY2,100 MBO tender offer is a bad conclusion at the wrong price.
Some assertions are valid, while others do not stand up to scrutiny. Kaname claims that Proto is worth JPY3,778, which will make it hard to reach a compromise.
Maintaining terms is increasingly not viable. The Chairman is likely to respond by lowering the minimum acceptance condition and/or bumping to secure the support of minorities (excluding Kaname).

Alibaba (BABA): 3Q25, Main Business Growth Close to Double Digits

By Ming Lu

Total revenue growth rate continued to rise in 3Q25 ending March 2025.
Also, the growth rate of the largest business line, customer management, was close to double digits.
The upside for the next twelve months was narrowed to 18%, as Alibaba’s stock surged after our preview note.

Growing Importance of ACT – Korea’s Largest Minority Shareholders Platform

By Douglas Kim

In this insight, we discuss about the growing importance of ACT, the largest minority shareholders platform (https://www.act.ag/) in Korea with nearly 100,000 members and market share of more than 50%.
Recently, ACT has been demanding corporate governance improvements on the following companies: E-Mart, DB Hitek, Lotte Shopping, Youlchon Chem, Hanmi Science, and Solu-M.
ACT has played an important role in the recent shareholder return polices announced by E-Mart which announced a sharply higher total shareholder return policy including higher dividends and share cancellations.

Kalyan Jewellers (KALYANKJ IN) | FOCO Model Warrants Attention

By Pranav Bhavsar

We believe Kalyan Jewellers (KALYANKJ IN) ‘s FOCO (Franchise Owned, Company Operated) model warrants deeper attention
Our casual checks question the company’s store expansion narrative vs on ground reality.
Our conversation seems to indicate franchisees are financial partners only.

China Could Lift Ban on Korean Popular Culture (Hallyu) As Early As May 2025

By Douglas Kim

One of the big thematic events on the Korean stock market has been the expectation that China could lift ban on Korean popular culture (Hallyu) as early as May 2025.
China’s President Xi recently stated “Cultural exchanges are a valuable part of our bilateral relations [between China and Korea]. We should avoid any problems occurring in handling such matters.”
We provide a list of 40 stocks in Korea that could most benefit from the end of lifting ban of Korean popular culture.

McDonald’s: $100 Million Recovery Plan & 2,200 New Stores – Can It Bounce Back?

McDonald’s faced a challenging end to 2024, as its U.S. sales and earnings declined, largely due to an E.
coli outbreak tied to slivered onions on Quarter Pounders.
This food safety crisis affected 104 people across 14 states, leading to 34 hospitalizations and one fatality.

Innova Captab Limited: Q3 FY25 Update

Innova Captab (1605221D IN)’s Q3 FY25 results show modest revenue growth, enhanced EBITDA margins, and a significant manufacturing expansion via the new Jammu facility with innovative dosage forms.
Improved margins and strategic expansion into new dosage forms enhance competitiveness, setting the stage for 25%+ growth and long-term profitability in the evolving CDMO and generics market.
The company anticipates Rs. 400 to Rs. 500 crores of incremental revenue from the Jammu facility in the next fiscal year.

DoorDash Inc.: Expansion Into New Verticals & Enhancing Grocery Delivery To Catalyze Growth!

DoorDash’s latest earnings report provides a comprehensive overview of the company’s performance, growth prospects, and strategic initiatives.
The company showcased strong performance, with significant contributions from both U.S. and international markets.
Despite the financial statements being marked by improvements and challenges, they highlight the key factors influencing the company’s trajectory.

Marriott International: How It’s Monetizing Loyalty & Direct Bookings!

Marriott International’s fourth-quarter 2024 earnings reflect a strong performance with continued robust demand translating into a worldwide RevPAR increase of 5% for the quarter.
Key metrics such as ADR grew by 3% and occupancy improved by over 1 percentage point.
The company also achieved significant net rooms growth of 6.8% for the year, driven by strategic partnerships and conversions, which contributed significantly to its success.

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Feb 21

Daily Brief TMT/Internet: Xiaomi Corp, DeepSeek, Taiwan Semiconductor (TSMC) – ADR, Samsung Electronics Pref Shares, Hua Hong Semiconductor, Amazon.com Inc, Softbank Group, Alibaba Group Holding , Domain Holdings Australia , Wistron Corp and more

By Smartkarma Daily Briefs | Daily Briefs, TMT/Internet

In today’s briefing:

Hang Seng Indexes: Announcement Today; Updated Flows (Some Big Ones)
The story behind DeepSeek’s breakthrough
Taiwan Dual-Listings Monitor: TSMC Premium Eases Down; Massive Change in UMC Headroom
Clarifying Samsung Life’s Position on How Samsung Electronics Structures Its Shareholder Returns
BUY/SELL/HOLD: Hong Kong Stock Update (February 20)
Amazon.com Inc – Amazon’s AI Billions, Store Struggles, & The Risks No One Is Talking About!
Softbank (9984) Is Trading Cheap, And That Could Be An Opportunity
Alibaba’s C4Q24 Result Says the Inflection Point of Chinese AI Has Arrived for the Capital Markets
Domain Holdings (DHG AU): CoStar Makes an NBIO; Buys 16.9% Stake; Short Covering Today
Tech Supply Chain Tracker (21-Feb-2025): Honda-Nissan merger drama as Renault strengthens ties.

Hang Seng Indexes: Announcement Today; Updated Flows (Some Big Ones)

By Brian Freitas

Hang Seng Indexes announces changes to the Hang Seng Index, Hang Seng China Enterprises Index, Hang Seng TECH Index, HSIII Index and HSCI Index (among others) post market close today.
The net round-trip trade across the stocks is estimated to be HK$35bn (US$4.5bn) with big impact in a lot of stocks.
Capping will lead to most inflows to Meituan (3690 HK) while the largest outflows will be from Alibaba Group Holding (9988 HK) and Xiaomi Corp (1810 HK).

The story behind DeepSeek’s breakthrough

By Behind the Money

Liang Wanfang became a celebrity overnight, with visitors from all over Guangdong coming to pay their respects
Liang has been praised for his contributions to China’s tech sector, surpassing competitors and boosting national pride
China’s tech sector has faced challenges, including regulatory crackdowns and decreased foreign investment, leading to a shift towards state-backed funding and increased risk for entrepreneurs.

This content is sourced through publicly available sources and has been machine generated. Information displayed is for general informational purposes only.

Taiwan Dual-Listings Monitor: TSMC Premium Eases Down; Massive Change in UMC Headroom

By Vincent Fernando, CFA

TSMC: +22.2% Premium; Wait for Higher Level Before Fresh Short of Spread
UMC: 0% Premium (Parity) — Massive Increase in ADR Headroom
ChipMOS: +0.5% Premium; Wait for More Extreme Levels; Earnings Ahead

Clarifying Samsung Life’s Position on How Samsung Electronics Structures Its Shareholder Returns

By Sanghyun Park

Samsung Life isn’t getting a boost from Samsung Fire, so they need to stay focused on managing equity to maintain their K-ICS ratio.
They’ll use capital securities issuance as a quick fix but must also monitor their Samsung Electronics stake, a major asset, to manage the situation effectively.
Samsung Electronics will likely focus on dividends over buybacks. Watch for a pair trade setup between common and preferred shares, favoring long positions on preferreds.

BUY/SELL/HOLD: Hong Kong Stock Update (February 20)

By David Mudd

Hong Kong’s secular bull market continues this year with record buying from mainland investors through the Southbound Connect platform.
AAC Technologies Holdings (2018 HK) announced a positive profit alert of of 150% increase in profit for 2024. The AI, phone and auto segments saw value content increases.
Hua Hong Semiconductor (1347 HK) is well-positioned to cater to China’s increasing demand for locally designed and produced chips, especially in the EV, smart home appliances and wearables industries.

Amazon.com Inc – Amazon’s AI Billions, Store Struggles, & The Risks No One Is Talking About!

Amazon.com reported a strong fourth quarter for 2024, with a revenue of $187.8 billion, reflecting a year-over year growth of 10%.
Notably, this growth was primarily driven by the company’s strategic focus on expanding its product selection, competitive pricing, and enhanced delivery services, which significantly boosted customer engagement and unit sales, especially in the North American and International segments.
The company’s operating income also saw a substantial improvement, reaching $21.2 billion, marking a 61% increase from the previous year, further supported by effective cost management and productivity improvements throughout its distribution network.

Softbank (9984) Is Trading Cheap, And That Could Be An Opportunity

By Finimize Research

Softbank’s investment in Arm, valued at around USD 148 billion, is its new NAV driver, after its 300% rally post its IPO.
Despite an ongoing share buyback and an LTV near 12.9%, Softbank is still trading around a 59% discount to its net asset value.
Softbank looks like a good proxy for investing in Arm and being long Softbank and Short Arm looks like reasonable risk/reward at current levels.

Alibaba’s C4Q24 Result Says the Inflection Point of Chinese AI Has Arrived for the Capital Markets

By Ying Pan

After rallying ~50% from its lows, Alibaba rallied another ~10% after reporting in-line result, despite saying it would spend more capex in the next 3 years than the previous 10;
Behind this performance is a sudden clarification of AI’s monetization future in China. Alibaba’s vision certainly has itself at the center of beneficiary, but a few other readings also exist;
Alibaba suggested that partial replacement of human worker is possible in a platform with structured workflow, allowing AI users to reap benefits earlier than we have anticipated.

Domain Holdings (DHG AU): CoStar Makes an NBIO; Buys 16.9% Stake; Short Covering Today

By Brian Freitas

Costar Group (CSGP US) bought a 16.9% stake in Domain Holdings Australia (DHG AU) yesterday at A$4.2/share in cash. That is a 34.6% premium to the last close.
Then, Costar Group (CSGP US) made a non-binding indicative proposal to buy all the Domain Holdings Australia (DHG AU) shares it did not own at A$4.2/share.
Nine Entertainment Co Holdings (NEC AU) owns just over 60% of Domain Holdings Australia (DHG AU) and should move higher on the offer.

Tech Supply Chain Tracker (21-Feb-2025): Honda-Nissan merger drama as Renault strengthens ties.

By Tech Supply Chain Tracker

Honda-Nissan merger and Renault-Geely alliance shake up auto industry landscape, causing speculation and uncertainty.
AI technology leading to increased demand for edge computing and device upgrades due to affordable costs and improved efficiency.
Liquid-cooled fast charging technology set to revolutionize EV charging by 2025, allowing for ultrafast charging speeds. Tesla’s India factory plans criticized by Trump. Grok 3 drives spike in AI server demand.

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Feb 21

Daily Brief Industrials: Sotetsu Holdings, Adani Ports & Special Economic Zone, Mastech Digital , NOW Inc, Urban-Gro and more

By Smartkarma Daily Briefs | Daily Briefs, Industrials

In today’s briefing:

Sotetsu Holdings (9003) – Crossholders Sell Down – Big ADV Multiple, Low Earnings Multiple, Boring
Sotetsu Placement: Low Valuation and Share Buyback Should Aid Deal Performance
Lucror Analytics – Morning Views Asia
MHH: Mastech Digital Starts the Year with a New CEO
DNOW, Inc. – Expect 2025 Growth Despite Uncertain Upstream Activity
UGRO: A New Start; Cleaning Up and Moving Forward with Realistic Expectations

Sotetsu Holdings (9003) – Crossholders Sell Down – Big ADV Multiple, Low Earnings Multiple, Boring

By Small Cap Consumer Research

Sotetsu Holdings (9003 JP) today announced a large-ish secondary equity offering – 10% of shares out and 20% of Max Real World Float.
This is crossholders selling down roughly 30% of what they own. Sotetsu announced a buyback for a quarter of the offering over the next six months.
The shareholder structure and distribution within Max Real World Float tells you all you need to know.

Sotetsu Placement: Low Valuation and Share Buyback Should Aid Deal Performance

By Nicholas Tan

A group of shareholders are looking to raise US$135m from selling their respective stakes in Sotetsu Holdings (9003 JP) .
While the deal shouldn’t come as a surprise, given the ongoing cross-shareholding unwind narrative in Japan, the timing of such a selldown isn’t always certain.
In this note, we will talk about the placement and run the deal through our ECM framework.

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: Adani Ports, ReNew Energy
In the US, January 2025 housing starts fell 9.8% m-o-m (-7.3% e / 16.1% p) to an annualised pace of 1.37 mn units, as builders pulled back on construction after a surge in December 2024. Meanwhile, building permits rose 0.1% (-1.5% e / -0.7% p) in January 2025.
The minutes of the US FOMC’s January 28-29th meeting showed that Fed officials expressed readiness to hold the policy rate at a restrictive level, if the economy remains strong and inflation stays elevated.

MHH: Mastech Digital Starts the Year with a New CEO

By Zacks Small Cap Research

Mastech Digital, based outside Pittsburgh, PA is an IT staffing business with a data and analytics, consulting, and project management service serving blue-chip customers in the US.
The company trades below its peers and we expect stock price appreciation now that the company has returned to growth and taken on a new extremely experienced CEO.
It also plans to grow through acquisition.

DNOW, Inc. – Expect 2025 Growth Despite Uncertain Upstream Activity

By Water Tower Research

DNOW’s capacity to generate free cash flow, coupled with its strong balance sheet, position the company to capitalize on accretive growth opportunities in 2025 and continue returning cash to shareholders through its share repurchase program.
The company generated $289 million of free cash flow during 2024 and ended the year with $256 million of cash on the balance sheet.
fter completing an $80 million share repurchase program in 4Q24, the board authorized a new $160 million repurchase program in January 2025.

UGRO: A New Start; Cleaning Up and Moving Forward with Realistic Expectations

We are reiterating our Buy rating on UGRO, but lowering our projections and price target (from $8 to $3) after the company regaining compliance with their financial filings after switching auditors at the end of May 2024.
While the re-audited changes are (in our opinion) minor, the simultaneous release of results for 2Q24 and 3Q24 show urban-gro is still in transition, even while management aggressively reduces costs and focuses on profitable projects.
As such, and given UGRO now trades near historic lows as investors lost patience with the lengthy accounting review and the expected approval of cannabis in Florida and Federal cannabis category shifts have not occurred, we believe it is appropriate for us to be less aggressive in the near term.

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Feb 21

Daily Brief Financials: Banco De Sabadell SA, New China Life Insurance, S&P Global , Axis Bank Ltd, SES AI Corp and more

By Smartkarma Daily Briefs | Daily Briefs, Financials

In today’s briefing:

BBVA/Sabadell: Implications of CNMC Decision, How Much Should BBVA Raise?
Asia Real Estate Tracker (20-Feb-2025): APAC investors love rate cuts, HK is buyers’ market: Colliers
S&P Global: How Data, Indexes, and AI Are Shaping Its Future!
Farcical Saga of Axis Bank’s Chief Audit Executives
SES AI Corp. – CEO Qichao Hu Talks About Battery Materials Discovery, New Markets Beyond EVs

BBVA/Sabadell: Implications of CNMC Decision, How Much Should BBVA Raise?

By Jesus Rodriguez Aguilar

The CNMC’s provisional report requires BBVA to extend commitments to SMEs for three years instead of 18 months, a condition seen as manageable but opposed by Sabadell’s leadership.
BBVA’s exchange offer for Sabadell values its shares at €2.37, below the market price of €2.504, implying a 5.3% shortfall, increasing pressure for BBVA to improve its bid.
The Spanish government opposes the takeover, and political intervention, regulatory hurdles, and a history of failed hostile bank takeovers in Europe could significantly impact the deal’s success.

Asia Real Estate Tracker (20-Feb-2025): APAC investors love rate cuts, HK is buyers’ market: Colliers

By Asia Real Estate Tracker

APAC investors are welcoming rate cuts, with Hong Kong remaining a buyers’ market, according to Colliers.
KKR & M&G invest $509M in an Aussie Warehouse Portfolio, while PGIM JV acquires Queensland sheds.
Vanke partners with government insurers for a $220M housing JV, demonstrating state support in the real estate sector.

S&P Global: How Data, Indexes, and AI Are Shaping Its Future!

S&P Global reported a robust 2024, evidenced by revenue growth and improved profitability metrics.
The company reported a 15% increase in revenue, excluding the effect of divested Engineering Solutions in 2023.
Subscription products grew by 7%.

Farcical Saga of Axis Bank’s Chief Audit Executives

By Hemindra Hazari

2 Heads of Audit in 1 month with another replacement within 6 months
Audit head in a bank is a highly sensitive post and the banking regulator recommends a minimum tenure of 3 years for the post
Internal audit in Axis Bank has become a major concern which should worry investors

SES AI Corp. – CEO Qichao Hu Talks About Battery Materials Discovery, New Markets Beyond EVs

By Water Tower Research

“AI for Science’ is SES AI’s approach to using the latest cutting-edge GNNs and LLMs to augment battery materials discovery.
“We can actually map all the physical and chemical properties of the small molecules. We did that, and then recently, we expanded to [electrolytes] for any lithium batteries….
We’re expanding to lithium-ion for robots, drones, and energy storage. We found that this tool itself is actually really powerful.

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Feb 20

Daily Brief Technical Analysis: S&P 500 and Nasdaq 100 Breaking Out; Upside Resuming; DXY and Yields Forming Major Tops? and more

By Smartkarma Daily Briefs | Daily Briefs, Technical Analysis

In today’s briefing:

S&P 500 and Nasdaq 100 Breaking Out; Upside Resuming; DXY and Yields Forming Major Tops?

S&P 500 and Nasdaq 100 Breaking Out; Upside Resuming; DXY and Yields Forming Major Tops?

By Joe Jasper

We are seeing signs that this 2+ month consolidation in the S&P 500 and Nasdaq 100 (QQQ) is ready to break out to the upside. Buy/stay long.
Part of that is the obvious; both the SPX and QQQ are breaking out to marginal new highs.
The other part that has kept us bullish this whole time is that market dynamics have remained risk-on, which we have discussed on a weekly basis.

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Feb 20

Daily Brief Thematic (Sector/Industry): Ohayo Japan | Stocks Rise as Fed Signals Steady Rates and more

By Smartkarma Daily Briefs | Daily Briefs, Thematic (Sector/Industry)

In today’s briefing:

Ohayo Japan | Stocks Rise as Fed Signals Steady Rates, Trump Escalates Tariffs
Consumer Stocks – Waiting to Catch a Fire
Data Center: How Indian Companies Are Capitalizing on the Digital Boom?
Japan Morning Connection: Power/Analog Names Drive SOX Higher, Defence Down
#105 India Insight: Gold Leasing Rates Surge, Tax Cuts Ease Foreign Firms’ Burden, Unilever Expands
India –Electric Two-Wheeler Sales Trend – January 2025
#106 India Insight: Adani Cement Targets 140 Mtpa by 2028; Vedanta Demerger Gets 83% Nod; SEC Probes

Ohayo Japan | Stocks Rise as Fed Signals Steady Rates, Trump Escalates Tariffs

By Mark Chadwick

The S&P gained 0.2% to a record 6,144; Treasury yields fell, with the 10-year at 4.53%; NKY Futs -0.5% vs cash
Listed companies’ profits are expected to reach a record ¥50 trillion for the fiscal year ending March 2025, up 6% year-on-year
Mitsui & Co. acquired a 40% stake in the Rhodes Ridge iron ore project in Australia for ¥600 billion

Consumer Stocks – Waiting to Catch a Fire

By Rikki Malik

Continuing review of the sectors we like for the next phase of the HK/China bull market
Expectations are so low that there is a high probability of upside surprises
An unloved sector that will rerate on any positive catalyst

Data Center: How Indian Companies Are Capitalizing on the Digital Boom?

By Nimish Maheshwari

India’s data center market currently holds an approximately 3% share globally, despite generating 20% of the world’s data which signifies the scope of opportunity.
ICRA projects India’s data center operational capacity to more than 2x with an estimated investment of Rs. 50k-55k Crs fueled by the increasing demand for colocation services.
Management of key players like Tata Communications (TCOM IN) and Anant Raj Ltd (ARCP IN) highlight the immense growth potential of the Indian data center market.

Japan Morning Connection: Power/Analog Names Drive SOX Higher, Defence Down

By Andrew Jackson

Good numbers from Analog Devices pointing to a bottom should help likes of Rohm and Fuji Electric.
SMCI tear continues, will Nidec keep moving up after yesterdays gains?
Sanken Electric +10.45% yesterday finally starting to catch a bid on ALGM gains.

#105 India Insight: Gold Leasing Rates Surge, Tax Cuts Ease Foreign Firms’ Burden, Unilever Expands

Gold leasing rates have surged from 2-3% to 6-7%, squeezing jewellers margins. Higher funding costs and volatile gold prices are forcing industry leaders to reconsider pricing strategies.
Foreign companies in India paid the lowest tax on earnings in over 30 years in FY24, with the tax burden dropping significantly due to corporate tax cuts and GST reforms.
Despite slow growth in India, Unilever (UL US) remains committed to its local operations, with plans to focus on expanding its beauty & wellbeing segment as part of its 2030 strategy.

India –Electric Two-Wheeler Sales Trend – January 2025

By Sreemant Dudhoria

India’s E-2W witnessed strong performance in January’2025,with registrations reaching 97,680 units. While this marked a recovery from the dip in December’2024,it remained lower than peak months of March and October’2024.
Ola Electric (OLAELEC IN) led the market,closely followed by TVS Motor (TVSL IN)&Bajaj Auto Ltd (BJAUT IN).Ather Energy (1207922D IN),Greaves Electric Mobility Ltd (GEML) (1295040D IN) also showed steady growth.
Market continues to be highly competitive,with top three players vying for leadership. Increasing consumer adoption,new product launches, and potential IPOs from key companies indicate dynamic year ahead for E-2W industry.

#106 India Insight: Adani Cement Targets 140 Mtpa by 2028; Vedanta Demerger Gets 83% Nod; SEC Probes

Adani Cement is actively pursuing acquisitions in South India and the North-East to boost its capacity to 140 MTPA by 2028.
Vedanta Ltd (VEDL IN) has secured 83% creditor approval for its demerger plan, surpassing the 75% required threshold.
The U.S. SEC has requested India’s help in investigating Gautam Adani and his nephew over alleged securities fraud and a $265 million bribery scheme.

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Feb 20

Daily Brief ECM: Goodman Group (GMG AU) – Big Placement and more

By Smartkarma Daily Briefs | Daily Briefs, ECM

In today’s briefing:

Goodman Group (GMG AU) – Big Placement, Big Index Flow But…
Goodman Group Placement – Large Deal, Doesn’t Seem Well Flagged, Not Particularly Exciting
HD Hyundai Marine Placement – Very Well Flagged but Overhang Remains
MIXUE Pre-IPO – Updated Peer Comparison – Bigger, Faster, Stronger
JX Advanced Metals (5016 JP) IPO: The Bear Case
MIXUE Pre-IPO – Updated Thoughts on Valuation
Beijing Geekplus Pre-IPO: Losses Narrowing but Revenue Concentration Is High
Pre-IPO MIXUE Group (PHIP Updates) – Some Points Worth the Attention

Goodman Group (GMG AU) – Big Placement, Big Index Flow But…

After a minor “disaster” in a secondary placement in December, this morning industrial/infrastructure (including data centres) REIT/etc Goodman Group (GMG AU) announced results and an A$4bn primary offering.
The large offering comes at a 6.9% discount, and For a combination of reasons, there is a LOT of buying to do with index tracking over the next short while.
But that too has complications. Some is immediate. Some a little delayed. A bunch may be supplied by short sellers. There is one easy trade. A few more complicated.

Goodman Group Placement – Large Deal, Doesn’t Seem Well Flagged, Not Particularly Exciting

Goodman Group (GMG AU) is looking to raise around US$2.5bn to partly fund its data centre expansion plans.
Goodman’s shares have performed exceptionally well over the past year, driven by its pivot towards data centers.
In this note, we will talk about the placement and run the deal through our ECM framework.

HD Hyundai Marine Placement – Very Well Flagged but Overhang Remains

KKR & Co (KKR US) is looking to raise around US$160m via selling some of its stake in HD Hyundai Marine Solution (443060 KS) .
KKR had come out of its IPO linked lockup in Nov 2024 and had earlier tried to launch a deal in Dec 2024. Hence, the selldown is very well flagged.
In this note, we will talk about the placement and run the deal through our ECM framework.

MIXUE Pre-IPO – Updated Peer Comparison – Bigger, Faster, Stronger

MIXUE Group Mixue Group is now looking to raise around US$500m in its upcoming Hong Kong IPO.
MIXUE Group (MIXUE) is a freshly-made drinks company providing affordable products to consumers, including freshly-made fruit drinks, tea, ice cream and coffee, typically priced at around one USD per item.
In our earlier notes, we have looked at the past performance, undertaken a peer comparison and spoken about valuations. In this note, we refresh the peer comparison.

JX Advanced Metals (5016 JP) IPO: The Bear Case

By Arun George

JX Advanced Metals (5016 JP) is a global leader in the semiconductor and ICT materials sector. It is seeking to raise up to US$2.6 billion.
In JX Advanced Metals (5016 JP) IPO: The Bull Case, we highlighted the key elements of the bull case. In this note, we outline the bear case.
The bear case rests on extensive proforma adjustments, the non-focus business remaining the largest profit contributor, margin pressure on the non-focus business and medium-to-long-term targets will likely disappoint.

MIXUE Pre-IPO – Updated Thoughts on Valuation