Smartkarma Daily Briefs

Illumina, a leading genomic sequencing company, reported its financial results for the fourth quarter of 2024, marking a slight revenue increase of 1% year-over-year to $1.1 billion.
This growth was primarily driven by high throughput sequencing consumables as the company continues to shift its customer base towards its new NovaSeq X series of instruments.
The company placed 91 NovaSeq X instruments in the quarter, reaching an installed base of 630, and enjoyed a robust pull-through performance, averaging $1.3 million per system in 2024.

Genpact Limited: Will Its Advancement in Data, Tech, and AI Help Alter The Playing Field?

Genpact Limited reported a strong performance in the fourth quarter of 2024, with revenue reaching $1.25 billion, reflecting a 9% year-over-year increase.
The company showcased a particularly impressive growth in their Data-Tech-AI segment, which rose by 12% year-over-year, showcasing the potential and growth of this sector within the organization.
Additionally, Digital Operations saw a 6% year-over-year increase, indicating strong demand across their business segments.

U.S. Rig Count Continues to Climb, Rises for the Third Consecutive Week

By Suhas Reddy

The U.S. oil and gas rig count rose for the third consecutive week, increasing by 2 to 588 for the week ending 14/Feb.
For the week ending 07/Feb, U.S. oil production moderately rose to 13.49m bpd from 13.48m bpd the week prior.
The number of U.S. oil rigs rose by 1 to 481, while gas rigs grew by 1 to 101. Rig count in the Permian basin rose by 1 to 304.

Ralph Lauren: Key City Ecosystem & Global Reach As a Global Growth Strategy!

Ralph Lauren’s third-quarter fiscal year 2025 results reflect a blend of positive momentum and strategic growth, tempered by an acknowledgment of ongoing market challenges.
The company reported a double digit revenue increase, significantly surpassing its own expectations across all geographies, indicating robust brand momentum and effective strategic investments, particularly noticeable during the peak holiday season.
This was facilitated by an agile global supply chain that successfully met heightened consumer demand.

Tapestry Inc.: How Badly Does It Rely On Coach’s Brand Strength and Pricing Power?

Tapestry reported strong results for its second quarter, surpassing expectations with record quarterly revenue and earnings per share.
The company, known for its brands Coach, Kate Spade, and Stuart Weitzman, demonstrated its commitment to strategic brand building and disciplined financial management, resulting in a 5% revenue growth, driven primarily by Coach’s impressive 10% increase.
Positive aspects of the earnings report include Tapestry’s successful expansion in international markets.

Expedia Group: Can Its Unified Platform Keep Up With Booking and Airbnb?

The Q4 2024 financial results for Expedia Group present a comprehensive picture with both strengths and challenges.
The company reported stronger-than-expected growth with room nights, gross bookings, and revenue all achieving double-digit growth.
This reflects strong market demand and effective execution strategies.

Snap-on Incorporated: How This Premium Tool Maker Is Adapting to Industry Shifts!

Snap-on Incorporated has reported its fourth quarter and full-year 2024 results, showcasing both strengths and challenges.
The quarter ended with a slight increase in sales to $1,198.7 million, marking a modest organic growth of 0.2%.
Despite a relatively flat revenue performance, profitability was robust, with gross margins improving by 140 basis points to 49.7% and operational company (opco) margins reaching 22.1%, an all-time high for the fourth quarter.

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Feb 18

Daily Brief India: Kilburn Engineering, Escorts Kubota Limited, NIFTY Index, Archean Chemical Industries, SGX Rubber Future TSR20, Patel Engineering and more

By Smartkarma Daily Briefs | Daily Briefs, India

In today’s briefing:

Kilburn Engineering Limited Q3 FY25 Update: Strategic Acquisitions and Strong Growth
India Rural Incomes | The Tide Has Yet to Turn
NIFTY Poised to Reignite Its Uptrend, But Faces Short-Term Obstacles
Archean Chemical Industries Limited Q3 FY25 Analysis
Kerala Rubber Farmers In Long Drawn Price Tussle With Tire Industry
Patel Engineering Limited Q3 FY25: Infrastructure Focus and Growth Trajectory

Kilburn Engineering Limited Q3 FY25 Update: Strategic Acquisitions and Strong Growth

Kilburn Engineering’s Q3 FY25 revenue rose 25.1% YoY to ₹911 million with EBITDA up 30.1%, driven by strategic acquisitions and a robust order backlog exceeding ₹3,600 million.
Robust financials, an expanding order book, and targeted acquisitions enhance growth prospects and operational efficiency, solidifying Kilburn Engineering’s market position.
Investors gain confidence as Kilburn Engineering’s disciplined execution and diversified strategy signal sustainable long-term revenue and margin expansion.

India Rural Incomes | The Tide Has Yet to Turn

By Pranav Bhavsar

In this Insight, we discuss agricultural income trends and challenges focusing on income growth and farming dynamics.
Declining cultivable land and rising input costs are affecting farmer incomes and crop yields.
Tractor OEMs remain optimistic about growth despite challenges, driven by positive macroeconomic factors and increased financing access.

NIFTY Poised to Reignite Its Uptrend, But Faces Short-Term Obstacles

By Nico Rosti

It has been a 5-months journey for the NIFTY Index (NIFTY INDEX) , from its last peak in September 2024, to its current lows.
Our WEEKLY model indicates a (mildly) OVERSOLD state (Friday at Close, 22929). If the index pulls back a bit more, it’s a BUY but keep reading…
Our tactical short-term model has found limited upside for the NIFTY at the moment, so the long-waited restart of the uptrend may be a bit bumpy.

Archean Chemical Industries Limited Q3 FY25 Analysis

Archean Chemical Industries (ACI IN)’s Q3 FY25 standalone total income reached INR 2,547 million, with EBITDA at INR 963 million (38% margin) and export markets contributing approximately 76% of revenue.
Strong export performance and stable margins underscore resilience amid global market challenges, while strategic investments in new battery technologies promise future growth and diversification.
The company aims to produce 20,000-25,000 tons of Bromine in FY’26 and expecting double digit growth in FY26.

Kerala Rubber Farmers In Long Drawn Price Tussle With Tire Industry

By Vinod Nedumudy

Smallholders keep inventories as tire makers make guarded purchases
Wintering over, next season may start by March end
Indian Government ups Budget allocation for Rubber Board

Patel Engineering Limited Q3 FY25: Infrastructure Focus and Growth Trajectory

PEL reported a 13.6% YoY revenue increase in Q3 FY25, with a robust order book of Rs. 16,396 crores and significant progress in hydropower, irrigation, and tunneling projects.
Patel Engineering aims for approximately 10% growth this year, For FY26: 10-12% and For FY27, the company anticipates growth exceeding 15%.
Also planning to realize 200Crs of Non-core assets and adding capex of 100-200Crs.

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Feb 18

Daily Brief China: Kingsoft Corp, Soundwill Holdings, Tam Jai International, Trip.com, Prosus NV, Mixue Group, Hang Seng Index, Foshan Haitian Flavouring & Food Company and more

By Smartkarma Daily Briefs | China, Daily Briefs

In today’s briefing:

Hang Seng Index (HSI) Rebalance Preview: Inclusion Candidates for March
Soundwill Holdings (878 HK): Privatisation Expected From The Controlling Family
Tam Jai (2217 HK): Toridoll (3397 JP)’s Scheme Privatisation at HK$1.58
Tam Jai (2217 HK): Toridoll (3397 JP)’s Excellent Offer
Soundwill Holdings (878 HK): Privatisation from the Controlling Shareholder?
Trip.com (TCOM) 4Q24 Preview: Rising with Travelers, But High in Stock Price
NPN X PRX: Discounts Likely to Catch Further Bid on China News Flow
Pre-IPO MIXUE Group Update – The Snow King Is Facing Headwinds
EQD | Hong Kong Single Stock Options Weekly (Feb 10 – 14): Strong Option Volumes Fuel Rally
Haitian Flavouring: Looking for Soy Sauces on the Ground

Hang Seng Index (HSI) Rebalance Preview: Inclusion Candidates for March

Post market close on Friday, Hang Seng Indexes will announce the changes for the Hang Seng Index (HSI INDEX) that will be implemented at the close on 7 March.
With no constituent changes, one-way turnover will be 2.75% with 3 stocks being capped downward. This gives the index committee the opportunity to add more stocks without significantly increasing turnover.
The return of the high and medium probability inclusions has matched the performance of the Hang Seng Index over the last few months, Shorts have climbed in some names.

Soundwill Holdings (878 HK): Privatisation Expected From The Controlling Family

By David Blennerhassett

Small-Cap property developer Soundwill Holdings (878 HK) is currently suspended pursuant to the Takeovers Code
Soundwill is controlled as to 74.97% by Grace Foo (ED), and her descendants, Wai Ling Chan (deputy chairman), and Hing Tat Chan (chairman).
Soundwill is trading at a staggering 0.08x P/B, with the majority of its book value tied up in investment properties.

Tam Jai (2217 HK): Toridoll (3397 JP)’s Scheme Privatisation at HK$1.58

Tam Jai International (2217 HK) announced a scheme privatisation offer from TORIDOLL Holdings Corporation (3397 JP) at HK$1.58 per share, a 75.6% premium to the last close price.
The key condition is the scheme approved by at least 75% disinterested shareholders (<10% disinterested shareholders rejection). No disinterested shareholder holds a blocking stake.
The offer price is final. While 53% below the IPO price, the offer is attractive compared to peer multiples and historical trading ranges. This is a done deal.

Tam Jai (2217 HK): Toridoll (3397 JP)’s Excellent Offer

By David Blennerhassett

After Tam Jai (2217 HK) was suspended, in Tam Jai (2217 HK) Suspended: Expect Toridoll (3397 JP) To Make An Offer I expected an Offer from TORIDOLL Holdings (3397 JP).
I also thought an Offer price ~HK$1.50/share would be welcome, but wasn’t hopeful. We got both – a Scheme from Toridoll at HK$1.58/share (best & final).
Clean deal. Just a question of timing. Docs may be delayed to incorporate FY25E (Mar Y/E) financials.

Soundwill Holdings (878 HK): Privatisation from the Controlling Shareholder?

Soundwill Holdings (878 HK) has entered a trading halt “pending the release of an announcement relating to inside information and pursuant to the Codes on Takeovers and Mergers.”
It is likely that the controlling shareholder (Foo Family Trust), representing 74.94% of outstanding shares, is seeking to launch a privatisation through a Bermuda scheme.
While no disinterested shareholder holds a blocking stake, the headcount test necessitates an attractive offer. We estimate a potential offer price range of HK$7.53-19.44.

Trip.com (TCOM) 4Q24 Preview: Rising with Travelers, But High in Stock Price

By Ming Lu

In China, travelers grew by 13% YoY in 4Q24 and 15% in 2024, according to the National Bureau of Statistics.
We expect total revenue will grow by 19% YoY in 4Q24 and 2024.
We are confident in the company’s financial performance, but the stock price is overvalued.

NPN X PRX: Discounts Likely to Catch Further Bid on China News Flow

By Charlotte van Tiddens, CFA

Discounts likely set for further narrowing as Chinese government adopts a more positive stance towards the private sector (Tencent).
The discounts of Naspers and Prosus have recovered to levels last seen prior to the publication of the Chinese Military Companies list by the DoD at start of the year.
Last week Friday, Tencent rallied 7.4% following news that the Chinese government are expected to host a summit with Jack Ma and DeepSeek founder, Liang Wenfeng.

Pre-IPO MIXUE Group Update – The Snow King Is Facing Headwinds

By Xinyao (Criss) Wang

MIXUE invited experts to conduct calculations based on population data. The result is a maximum of 45,000 stores can be opened. So, MIXUE has reached the growth ceiling in China.
The pain point is since MIXUE’s growth depends significantly on its ability to expand store network, once the growth of franchised stores slows down, a performance decline would be inevitable.
Due to larger scale effect/stronger supply chains/higher net profit margin, MIXUE’s valuation should be higher than peers. Higher valuation depends on whether MIXUE is able to make breakthrough in internationalization.

EQD | Hong Kong Single Stock Options Weekly (Feb 10 – 14): Strong Option Volumes Fuel Rally

By John Ley

Complete rally mode across single stocks and sectors with the 3 highest single stock option volumes of the past 3 months recorded.
More than 25% of issues experience more than 100% increase in options volume.
We highlight names with the largest increases in both Put and Call volumes including Alibaba, Alibaba Health, AIA, China telecom and Kingdee.

Haitian Flavouring: Looking for Soy Sauces on the Ground

By Ming Lu

We have visited three supermarkets in Shanghai, looking for Haitian Sauces.
We believe Haitian is obviously the top brand among soy sauces.
However, there are many competitors and Lee Kum Kee is the most important.

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Feb 18

Daily Brief Japan: Shinko Electric Industries, SRE Holdings Corp, Macromill, Inc, Base Food, JX Advanced Metals, TSE Tokyo Price Index TOPIX, Peptidream Inc, Sakata Inx Corp, Integrated Design & Engineering Holdings, CELSYS and more

By Smartkarma Daily Briefs | Daily Briefs, Japan

In today’s briefing:

JIC Launches Shinko (6967) Deal At ¥5,920/Share
Sony To Sell Down SRE Holdings (2980 JP) Block – AI-Related Growth Stock Should See Support
CVC Extends Macromill (3978) Bid and Invites Two Funds To Reinvest – More Interesting Than You Think
Base Food (2936 JP): Partial Tender Offer at JPY688
JX Advance Metals Pre-IPO – The Positives – Transforming
Going Private Is Not a Problem for a Special Company, but a Common Problem for All Listed Companies
Peptidream (4587 JP): 2024 Result Beats Guidance; Positive Outlook for 2025
Sakata Inx Corp (4633 JP): Full-year FY12/24 flash update
Integrated Design & Engineering Holdings (9161 JP): 1H FY06/25 flash update
CELSYS (3663 JP): Full-year FY12/24 flash update

JIC Launches Shinko (6967) Deal At ¥5,920/Share

Today quite late, the JIC Consortium announced the launch of the Shinko Electric Industries (6967 JP) Tender Offer expected “mid-February”. Price is still ¥5,920/share.
This is basically going to be all arbs and passive now. And arbs gonna arb.
Congrats if you bought the lows in late November early December. Great trade. Congrats if you bought the last delay dip. Now we can all go home.

Sony To Sell Down SRE Holdings (2980 JP) Block – AI-Related Growth Stock Should See Support

SRE Holdings Corp (2980 JP) does a business in AI Cloud&Consulting for the real estate, finance, and Life & Healthcare business. Sony Corp (6758 JP) is selling a stake.
The offering is for about US$50mm assuming a 10% discount today’s close. It is not clear how much this was expected but there is a decent-sized short position.
The stock has its ups and downs, and recently decided it liked Q3 earnings and guidance. That bodes well for the offering.

CVC Extends Macromill (3978) Bid and Invites Two Funds To Reinvest – More Interesting Than You Think

Today, the closing date of the Tender Offer for Macromill, Inc (3978 JP) by CVC saw the tender offer extended by an extra 10 days with new news.
Price had been declared final. One very large shareholder had said they would not tender. Two more were negotiating. Those two will now tender and reinvest in the back end.
This does not mean the tender offer is a done deal, but it is worth examining.

Base Food (2936 JP): Partial Tender Offer at JPY688

Base Food (2936 JP) announced a partial tender offer from MBF Acceleration, the largest shareholder.
The offer is for a maximum of 3.7 million shares (6.97% ownership ratio) at JPY688 per share, a 23.3% premium to the last close price.
The offer has no minimum acceptance condition, and the price is reasonable. The estimated minimum proration is 21.43%.

JX Advance Metals Pre-IPO – The Positives – Transforming

By Sumeet Singh

JX Advance Metal’s (JXAM) parent, ENEOS Holdings (5020 JP), is looking to raise around US$2.6bn via selling more than half of its stake in JXAM in its Japan IPO.
JXAM engages in business activities primarily focused on the development, manufacture and sale of materials made from copper and rare metals, which are used in the semiconductor and ICT fields.
In this note, we talk about the positive aspects of the deal.

Going Private Is Not a Problem for a Special Company, but a Common Problem for All Listed Companies

By Aki Matsumoto

While the homework imposed on companies has been increasing year by year, TSE’s market restructuring and “request to raise P/B” have made companies directly aware of the cost of listing.
MBO is a company’s choice to go private as a result of the cost of maintaining a public listing. Many companies have yet to reach this conclusion.
The conversion of listed subsidiaries into wholly owned subsidiaries is a conclusion that has finally been reached; 230 listed subsidiaries will have to come to some conclusion eventually.

Peptidream (4587 JP): 2024 Result Beats Guidance; Positive Outlook for 2025

By Tina Banerjee

Peptidream Inc (4587 JP) reported better-than-expected 2024 result, with all key parameters beating upwardly revised guidance. Both revenue and net profit hit record high.
Larger than anticipated upfront associated with the expanded Novartis collaboration and increased milestone revenue contributed to the stellar performance of 2024.
The company expects 2025 revenue to increase 5% YoY to ¥49B. Both core operating and operating profits are expected to increase 2% YoY and net profit by 1%.

Sakata Inx Corp (4633 JP): Full-year FY12/24 flash update

FY12/24 revenue was JPY245.6bn (+7.5% YoY), with operating profit at JPY13.2bn (+15.0% YoY) and net income JPY9.0bn (+20.6% YoY).
Segment revenue and operating profit showed mixed results, with notable increases in packaging inks and digital printing materials sales.
FY12/25 forecasts project revenue of JPY268.0bn (+9.1% YoY), with operating profit at JPY15.5bn (+17.8% YoY) and net income JPY10.8bn (+19.9% YoY).

Integrated Design & Engineering Holdings (9161 JP): 1H FY06/25 flash update

Revenue increased 6.2% YoY, driven by strong Consulting and Urban & Spatial Development segments, despite a 50.9% YoY decline in operating profit due to valuation losses from an investee company’s IPO.
Consulting segment saw a 27.7% YoY increase in orders and a 6.1% YoY revenue rise, with operating profit up 79.1% YoY.
Energy segment experienced a 48.5% YoY rise in orders and a 70.9% YoY increase in operating profit, despite a 2.1% YoY revenue decline.

CELSYS (3663 JP): Full-year FY12/24 flash update

FY12/24 results: Sales JPY8.2bn (+1.4% YoY), operating profit JPY2.1bn (+58.7% YoY), net income JPY1.4bn (+123.5% YoY).
FY12/25 forecast: Sales JPY9.1bn (+10.7% YoY), operating profit JPY2.6bn (+19.0% YoY), net income JPY1.7bn (+24.6% YoY).
FY12/27 targets: Sales JPY10.7bn (+30.4% from FY12/24), operating profit JPY3.3bn (+53.8%), ROE 30% (23.6% in FY12/24).

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Feb 18

Most Read: Alibaba Group Holding , Shift Inc, Kokusai Electric , Shinko Electric Industries, SRE Holdings Corp, Kingsoft Corp, Macromill, Inc, Base Food, Soundwill Holdings, Tam Jai International and more

By Smartkarma Daily Briefs | Daily Briefs, Most Read

In today’s briefing:

Alibaba (9988 HK): Results This Week; Over US$1bn Passive Selling in 3 Weeks
Nikkei 225 Index Rebalance: Performance of Potential Adds/Deletes & Positioning
[Quiddity Index Feb25] Nikkei 225 Mar Rebal: 2 or 3 IN, 2 or 3 OUT, ~$3bn 1-Way, 1 Squeeze.
JIC Launches Shinko (6967) Deal At ¥5,920/Share
Sony To Sell Down SRE Holdings (2980 JP) Block – AI-Related Growth Stock Should See Support
Hang Seng Index (HSI) Rebalance Preview: Inclusion Candidates for March
CVC Extends Macromill (3978) Bid and Invites Two Funds To Reinvest – More Interesting Than You Think
Base Food (2936 JP): Partial Tender Offer at JPY688
Soundwill Holdings (878 HK): Privatisation Expected From The Controlling Family
Tam Jai (2217 HK): Toridoll (3397 JP)’s Scheme Privatisation at HK$1.58

Alibaba (9988 HK): Results This Week; Over US$1bn Passive Selling in 3 Weeks

Alibaba Group Holding (9988 HK) stock has rallied bigly over the last month and has gained 55% over that period.
That has led to Alibaba‘s weight in the HSI INDEX, HSCEI INDEX, HSTECH INDEX and HSIII Index rising above the cap of 8%/12% and passives will sell on 7 March.
We estimate passive trackers will need to sell US$1.2bn of stock due to capping. Shorts have been increasing, and quarterly results will be announced on 20 February.

Nikkei 225 Index Rebalance: Performance of Potential Adds/Deletes & Positioning

The changes to the Nikkei 225 (NKY INDEX) as part of the March rebalance should be announced in just over 2 weeks. We expect 2-3 changes at the review.
The forecast adds have massively outperformed the forecast deletes and the Nikkei225 Index over every time period going back 3 months with the largest outperformance in the last month.
Positioning appears to be stretched in one forecast add while there appears to be under positioning in a couple of the forecast deletes.

[Quiddity Index Feb25] Nikkei 225 Mar Rebal: 2 or 3 IN, 2 or 3 OUT, ~$3bn 1-Way, 1 Squeeze.

The data observation period is done. No rank changes in the top candidates since mid-Jan. Capping for Fast Retailing (9983 JP) is confirmed.
For me, it is 2 or 3 ADDs, depending. Kokusai Electric (6525 JP) is still tops. BayCurrent Consulting (6532 JP) second. Shift Inc (3697 JP) third.
Kokusai is +26.7% in 5 weeks since I wrote bullishly, despite news/confirmation of getting the boot from a global index at end-Feb. Baycurrent is +39.7% (link). Now we count flows.

JIC Launches Shinko (6967) Deal At ¥5,920/Share

Today quite late, the JIC Consortium announced the launch of the Shinko Electric Industries (6967 JP) Tender Offer expected “mid-February”. Price is still ¥5,920/share.
This is basically going to be all arbs and passive now. And arbs gonna arb.
Congrats if you bought the lows in late November early December. Great trade. Congrats if you bought the last delay dip. Now we can all go home.

Sony To Sell Down SRE Holdings (2980 JP) Block – AI-Related Growth Stock Should See Support

SRE Holdings Corp (2980 JP) does a business in AI Cloud&Consulting for the real estate, finance, and Life & Healthcare business. Sony Corp (6758 JP) is selling a stake.
The offering is for about US$50mm assuming a 10% discount today’s close. It is not clear how much this was expected but there is a decent-sized short position.
The stock has its ups and downs, and recently decided it liked Q3 earnings and guidance. That bodes well for the offering.

Hang Seng Index (HSI) Rebalance Preview: Inclusion Candidates for March

Post market close on Friday, Hang Seng Indexes will announce the changes for the Hang Seng Index (HSI INDEX) that will be implemented at the close on 7 March.
With no constituent changes, one-way turnover will be 2.75% with 3 stocks being capped downward. This gives the index committee the opportunity to add more stocks without significantly increasing turnover.
The return of the high and medium probability inclusions has matched the performance of the Hang Seng Index over the last few months, Shorts have climbed in some names.

CVC Extends Macromill (3978) Bid and Invites Two Funds To Reinvest – More Interesting Than You Think

Today, the closing date of the Tender Offer for Macromill, Inc (3978 JP) by CVC saw the tender offer extended by an extra 10 days with new news.
Price had been declared final. One very large shareholder had said they would not tender. Two more were negotiating. Those two will now tender and reinvest in the back end.
This does not mean the tender offer is a done deal, but it is worth examining.

Base Food (2936 JP): Partial Tender Offer at JPY688

Base Food (2936 JP) announced a partial tender offer from MBF Acceleration, the largest shareholder.
The offer is for a maximum of 3.7 million shares (6.97% ownership ratio) at JPY688 per share, a 23.3% premium to the last close price.
The offer has no minimum acceptance condition, and the price is reasonable. The estimated minimum proration is 21.43%.

Soundwill Holdings (878 HK): Privatisation Expected From The Controlling Family

By David Blennerhassett

Small-Cap property developer Soundwill Holdings (878 HK) is currently suspended pursuant to the Takeovers Code
Soundwill is controlled as to 74.97% by Grace Foo (ED), and her descendants, Wai Ling Chan (deputy chairman), and Hing Tat Chan (chairman).
Soundwill is trading at a staggering 0.08x P/B, with the majority of its book value tied up in investment properties.

Tam Jai (2217 HK): Toridoll (3397 JP)’s Scheme Privatisation at HK$1.58

Tam Jai International (2217 HK) announced a scheme privatisation offer from TORIDOLL Holdings Corporation (3397 JP) at HK$1.58 per share, a 75.6% premium to the last close price.
The key condition is the scheme approved by at least 75% disinterested shareholders (<10% disinterested shareholders rejection). No disinterested shareholder holds a blocking stake.
The offer price is final. While 53% below the IPO price, the offer is attractive compared to peer multiples and historical trading ranges. This is a done deal.

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Feb 18

Daily Brief Industrials: T’Way Air, Kilburn Engineering, Escorts Kubota Limited, Snap On Inc, Agco Corp, ITT , Patel Engineering, Integrated Design & Engineering Holdings, ESR-LOGOS REIT, GMexico Transportes SAB de CV and more

By Smartkarma Daily Briefs | Daily Briefs, Industrials

In today’s briefing:

Daemyung Sono Group: Close to Acquiring the Controlling Stake in T’Way Air
Kilburn Engineering Limited Q3 FY25 Update: Strategic Acquisitions and Strong Growth
India Rural Incomes | The Tide Has Yet to Turn
Snap-on Incorporated: How This Premium Tool Maker Is Adapting to Industry Shifts!
AGCO Corporation: Are The Operating Margin Improvements Expected To Last In The Long Term?
ITT Inc.: An Insight Into Its Recent Organic Growth and Margin Expansion Story & Major Growth Drivers
Patel Engineering Limited Q3 FY25: Infrastructure Focus and Growth Trajectory
Integrated Design & Engineering Holdings (9161 JP): 1H FY06/25 flash update
Marco Polo Marine CEO increases stake; ESR REIT buys back 5 million units
GMXT* MM – Actinver Research – Transport Sector: Playing the Nearshoring Names (Sector Update)

Daemyung Sono Group: Close to Acquiring the Controlling Stake in T’Way Air

By Douglas Kim

After the market close on 17 February, it was announced that the Daemyung Sono Group is close to acquiring the controlling stake in T’Way Air (091810 KS) from Yelimdang.
As the negotiations between the two sides have come to a near agreement, Daemyung Sono is expected to be able to appoint nine directors at the next upcoming AGM.
Typically in cases like this in Korea, the near term impact would be decline in share prices of T’Way Air and T’Way Holdings due to lack of an M&A play.

Kilburn Engineering Limited Q3 FY25 Update: Strategic Acquisitions and Strong Growth

Kilburn Engineering’s Q3 FY25 revenue rose 25.1% YoY to ₹911 million with EBITDA up 30.1%, driven by strategic acquisitions and a robust order backlog exceeding ₹3,600 million.
Robust financials, an expanding order book, and targeted acquisitions enhance growth prospects and operational efficiency, solidifying Kilburn Engineering’s market position.
Investors gain confidence as Kilburn Engineering’s disciplined execution and diversified strategy signal sustainable long-term revenue and margin expansion.

India Rural Incomes | The Tide Has Yet to Turn

By Pranav Bhavsar

In this Insight, we discuss agricultural income trends and challenges focusing on income growth and farming dynamics.
Declining cultivable land and rising input costs are affecting farmer incomes and crop yields.
Tractor OEMs remain optimistic about growth despite challenges, driven by positive macroeconomic factors and increased financing access.

Snap-on Incorporated: How This Premium Tool Maker Is Adapting to Industry Shifts!

Snap-on Incorporated has reported its fourth quarter and full-year 2024 results, showcasing both strengths and challenges.
The quarter ended with a slight increase in sales to $1,198.7 million, marking a modest organic growth of 0.2%.
Despite a relatively flat revenue performance, profitability was robust, with gross margins improving by 140 basis points to 49.7% and operational company (opco) margins reaching 22.1%, an all-time high for the fourth quarter.

AGCO Corporation: Are The Operating Margin Improvements Expected To Last In The Long Term?

AGCO Corporation recently reported its financial performance for the fourth quarter and full year 2024, illustrating a period of strategic transformation amidst challenging market conditions.
In the fourth quarter, AGCO achieved a 9.9% adjusted operating margin with sales decreasing by 24% year-over-year.
For the full year, the company realized an 8.9% adjusted operating margin with a 19% decline in sales compared to 2023.

ITT Inc.: An Insight Into Its Recent Organic Growth and Margin Expansion Story & Major Growth Drivers

ITT Inc. recently reported its financial results for the fourth quarter and the full year of 2024, exhibiting a strong performance across several key metrics.
A pivotal year for the company, ITT achieved significant growth despite some challenges, such as the divestiture of its Wolverine business and increased interest expenses due to recent acquisitions of Svanehøj and kSARIA.
Baptista Research looks to evaluate the different factors that could influence the company’s price in the near future and attempts to carry out an independent valuation of the company using a Discounted Cash Flow (DCF) methodology.

Patel Engineering Limited Q3 FY25: Infrastructure Focus and Growth Trajectory

PEL reported a 13.6% YoY revenue increase in Q3 FY25, with a robust order book of Rs. 16,396 crores and significant progress in hydropower, irrigation, and tunneling projects.
Patel Engineering aims for approximately 10% growth this year, For FY26: 10-12% and For FY27, the company anticipates growth exceeding 15%.
Also planning to realize 200Crs of Non-core assets and adding capex of 100-200Crs.

Integrated Design & Engineering Holdings (9161 JP): 1H FY06/25 flash update

Revenue increased 6.2% YoY, driven by strong Consulting and Urban & Spatial Development segments, despite a 50.9% YoY decline in operating profit due to valuation losses from an investee company’s IPO.
Consulting segment saw a 27.7% YoY increase in orders and a 6.1% YoY revenue rise, with operating profit up 79.1% YoY.
Energy segment experienced a 48.5% YoY rise in orders and a 70.9% YoY increase in operating profit, despite a 2.1% YoY revenue decline.

Marco Polo Marine CEO increases stake; ESR REIT buys back 5 million units

By Geoff Howie

Institutions were net buyers of Singapore stocks, with a net inflow of S$63 million from Feb 7 to Feb 13.
Singapore Telecommunications saw a net institutional inflow of S$112 million, linked to a S$643 million green loan.
Marco Polo Marine’s CEO increased his stake to 4.80% after acquiring 500,000 shares at S$0.054 each.

GMXT* MM – Actinver Research – Transport Sector: Playing the Nearshoring Names (Sector Update)

By Actinver

Amid a potential move from President Trump to increase manufacturing in the U.S., there could be a slowdown in investment in Mexico, and thus the nearshoring tailwind could be reduced.
Nonetheless, we continue to see it as a driver of further investment unless the trend fades away.
As a result, Mexico’s Logistics Sector is well-positioned to take advantage of foreign investment inflows.

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Feb 18

Daily Brief Energy/Materials: JX Advanced Metals, Crude Oil, Archean Chemical Industries, SGX Rubber Future TSR20, Suzano , Toyo Kanetsu K K, Natural Gas, Sakata Inx Corp, Aptargroup Inc and more

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

In today’s briefing:

JX Advance Metals Pre-IPO – The Positives – Transforming
U.S. Rig Count Continues to Climb, Rises for the Third Consecutive Week
Archean Chemical Industries Limited Q3 FY25 Analysis
Kerala Rubber Farmers In Long Drawn Price Tussle With Tire Industry
Weekly News & Views (Suzano, YPF, Vista, Cemex, Minerva).
Toyo Kanetsu K K (6369 JP): Q3 FY03/25 flash update
Global FX, Commodities and EM: Implications of Russia-Ukraine cease-fire
Sakata Inx Corp (4633 JP): Full-year FY12/24 flash update
AptarGroup: Active Materials Science Growth Driving Our Bullishness!

JX Advance Metals Pre-IPO – The Positives – Transforming

By Sumeet Singh

JX Advance Metal’s (JXAM) parent, ENEOS Holdings (5020 JP), is looking to raise around US$2.6bn via selling more than half of its stake in JXAM in its Japan IPO.
JXAM engages in business activities primarily focused on the development, manufacture and sale of materials made from copper and rare metals, which are used in the semiconductor and ICT fields.
In this note, we talk about the positive aspects of the deal.

U.S. Rig Count Continues to Climb, Rises for the Third Consecutive Week

By Suhas Reddy

The U.S. oil and gas rig count rose for the third consecutive week, increasing by 2 to 588 for the week ending 14/Feb.
For the week ending 07/Feb, U.S. oil production moderately rose to 13.49m bpd from 13.48m bpd the week prior.
The number of U.S. oil rigs rose by 1 to 481, while gas rigs grew by 1 to 101. Rig count in the Permian basin rose by 1 to 304.

Archean Chemical Industries Limited Q3 FY25 Analysis

Archean Chemical Industries (ACI IN)’s Q3 FY25 standalone total income reached INR 2,547 million, with EBITDA at INR 963 million (38% margin) and export markets contributing approximately 76% of revenue.
Strong export performance and stable margins underscore resilience amid global market challenges, while strategic investments in new battery technologies promise future growth and diversification.
The company aims to produce 20,000-25,000 tons of Bromine in FY’26 and expecting double digit growth in FY26.

Kerala Rubber Farmers In Long Drawn Price Tussle With Tire Industry

By Vinod Nedumudy

Smallholders keep inventories as tire makers make guarded purchases
Wintering over, next season may start by March end
Indian Government ups Budget allocation for Rubber Board

Weekly News & Views (Suzano, YPF, Vista, Cemex, Minerva).

By Leandro Gubler

The LatAm Aggregate Index contracted modestly by 1 bps to 307 bps in the week ending Friday, February 14, 2025.
Argentina’s inflation rate slowed to 2.2% in January, the lowest monthly figure in 4.5 years, according to INDEC.
We upgraded Suzano’s 2031s and 2032s to Outperform, while maintaining the rest of the curve at Market Perform.

Toyo Kanetsu K K (6369 JP): Q3 FY03/25 flash update

Revenue increased YoY in Logistics Solutions and all segments except Business Innovation and Other Businesses, with profits driven by Logistics Solutions.
Extraordinary gains from investment securities sales in Q3 FY03/25 were less than Q3 FY03/24, with reduced extraordinary losses.
Revenue and operating profit increased across various segments, with notable growth in warehouse automation and maintenance work at refineries.

Global FX, Commodities and EM: Implications of Russia-Ukraine cease-fire

By At Any Rate

Baseline assumption of ceasefire between Russia and Ukraine in Year Ahead outlook published in November
Potential for restarting Russian pipeline gas flows to Europe as part of negotiated end of conflict
Estimated additional 40 bcm per annum of supply to Europe, impacting TTF price forecast in 2025

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

Sakata Inx Corp (4633 JP): Full-year FY12/24 flash update

FY12/24 revenue was JPY245.6bn (+7.5% YoY), with operating profit at JPY13.2bn (+15.0% YoY) and net income JPY9.0bn (+20.6% YoY).
Segment revenue and operating profit showed mixed results, with notable increases in packaging inks and digital printing materials sales.
FY12/25 forecasts project revenue of JPY268.0bn (+9.1% YoY), with operating profit at JPY15.5bn (+17.8% YoY) and net income JPY10.8bn (+19.9% YoY).

AptarGroup: Active Materials Science Growth Driving Our Bullishness!

AptarGroup Inc. (ATR) reported results for the fourth quarter and fiscal year 2024, highlighting a balanced performance across its segments while navigating through various market challenges.
The company achieved core sales growth of 2% for the quarter, driven by robust demand in its Pharma segment, which saw strong sales in proprietary drug delivery systems for allergic rhinitis and emergency medicines.
The reported adjusted earnings per share (EPS) of $1.52 exceeded expectations, aided by better operational performance and a favorable tax rate.

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Feb 18

Daily Brief TMT/Internet: Shinko Electric Industries, Kingsoft Corp, Himax Technologies Inc Adr, Samsung Electronics, Sailpoint Technologies Holdings, Western Digital, Genpact Ltd, Hang Seng Index, NIFTY Index and more

By Smartkarma Daily Briefs | Daily Briefs, TMT/Internet

In today’s briefing:

JIC Launches Shinko (6967) Deal At ¥5,920/Share
Hang Seng Index (HSI) Rebalance Preview: Inclusion Candidates for March
Himax Sees Chinese Automakers Far Ahead in Adopting Touch Displays; CoPackaged Optics Key for AI/HPC
A Real-World Take on the Market Worries Around the Samsung Life Act Proposal
SailPoint (SAIL): Sets Course to US Indices for March and June 2025
Weekly Update (WDC, SNDK, MRP, IAC)
Tech Supply Chain Tracker (18-Feb-2025): Apple may assemble iPhones in Indonesia to comply with local rules.
Genpact Limited: Will Its Advancement in Data, Tech, and AI Help Alter The Playing Field?
EQD | Hong Kong Single Stock Options Weekly (Feb 10 – 14): Strong Option Volumes Fuel Rally
NIFTY Poised to Reignite Its Uptrend, But Faces Short-Term Obstacles

JIC Launches Shinko (6967) Deal At ¥5,920/Share

Today quite late, the JIC Consortium announced the launch of the Shinko Electric Industries (6967 JP) Tender Offer expected “mid-February”. Price is still ¥5,920/share.
This is basically going to be all arbs and passive now. And arbs gonna arb.
Congrats if you bought the lows in late November early December. Great trade. Congrats if you bought the last delay dip. Now we can all go home.

Hang Seng Index (HSI) Rebalance Preview: Inclusion Candidates for March

Post market close on Friday, Hang Seng Indexes will announce the changes for the Hang Seng Index (HSI INDEX) that will be implemented at the close on 7 March.
With no constituent changes, one-way turnover will be 2.75% with 3 stocks being capped downward. This gives the index committee the opportunity to add more stocks without significantly increasing turnover.
The return of the high and medium probability inclusions has matched the performance of the Hang Seng Index over the last few months, Shorts have climbed in some names.

Himax Sees Chinese Automakers Far Ahead in Adopting Touch Displays; CoPackaged Optics Key for AI/HPC

By Vincent Fernando, CFA

Himax 4Q24 Results Show Auto Display Surge — Structural Growth Story Visible with Touch Panel Usage in Vehicles Soaring
China vs. the Rest of the World: Who’s Moving Faster? China Automakers Far Ahead in Display Sophistication
Himax on Co-Packaged Optics (CPO) — A Critical New Technology for AI and HPC Processing

A Real-World Take on the Market Worries Around the Samsung Life Act Proposal

By Sanghyun Park

The Rebuilding Korea Party’s hints about this bill since Thursday are seen as a key reason Samsung Electronics’ stock has stalled, despite hype around affiliate shareholder returns.
With polls dipping, Lee is shifting right. Given the political shifts, pushing through the controversial Samsung Life Act seems unlikely for now.
Instead of focusing on legislative chances, we should see Samsung Electronics’ stock stall as a short-term entry opportunity ahead of the shareholder return announcement

SailPoint (SAIL): Sets Course to US Indices for March and June 2025

By Dimitris Ioannidis

Sailpoint Technologies Holdings (SAIL US) is forecasted to be excluded from the one global index because of a low free float which is below the minimum threshold.
SAIL is forecasted to be added to the other global index at the September 2025 review. Conviction is medium as its fcap is near the threshold.
The security is forecasted to be added to snp TMI and rasel 1000 in March and June 2025, respectively. It is estimated to have failed fast-entry for TMI.

Weekly Update (WDC, SNDK, MRP, IAC)

By Richard Howe

Small caps generally trade between a 50% discount to the S&P 500 and a 50% premium. The current discount is 22%.
Relative periods of outperformance tend to last for waves of at least 13 years.
The current dominance of large caps over small caps has lasted ~13 years. This suggests the cycle could be due to change.

Tech Supply Chain Tracker (18-Feb-2025): Apple may assemble iPhones in Indonesia to comply with local rules.

By Tech Supply Chain Tracker

Apple may move iPhone assembly to Indonesia to comply with local content rules and sales ban, shifting focus from Vietnam to India
India’s AI ambitions hindered by GPU shortages and high costs, while 5G market projected to grow significantly by 2025
BYD reveals ‘God’s Eye’ smart driving system with budget-friendly aims, as Micron set to challenge Samsung in HBM3E market

Genpact Limited: Will Its Advancement in Data, Tech, and AI Help Alter The Playing Field?

Genpact Limited reported a strong performance in the fourth quarter of 2024, with revenue reaching $1.25 billion, reflecting a 9% year-over-year increase.
The company showcased a particularly impressive growth in their Data-Tech-AI segment, which rose by 12% year-over-year, showcasing the potential and growth of this sector within the organization.
Additionally, Digital Operations saw a 6% year-over-year increase, indicating strong demand across their business segments.

EQD | Hong Kong Single Stock Options Weekly (Feb 10 – 14): Strong Option Volumes Fuel Rally

By John Ley

Complete rally mode across single stocks and sectors with the 3 highest single stock option volumes of the past 3 months recorded.
More than 25% of issues experience more than 100% increase in options volume.
We highlight names with the largest increases in both Put and Call volumes including Alibaba, Alibaba Health, AIA, China telecom and Kingdee.

NIFTY Poised to Reignite Its Uptrend, But Faces Short-Term Obstacles

By Nico Rosti

It has been a 5-months journey for the NIFTY Index (NIFTY INDEX) , from its last peak in September 2024, to its current lows.
Our WEEKLY model indicates a (mildly) OVERSOLD state (Friday at Close, 22929). If the index pulls back a bit more, it’s a BUY but keep reading…
Our tactical short-term model has found limited upside for the NIFTY at the moment, so the long-waited restart of the uptrend may be a bit bumpy.

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Feb 18

Daily Brief Health Care: Sigma Healthcare, Illumina Inc, Peptidream Inc, Mettler Toledo International Inc, Zimmer Biomet Holdings, Laboratory Corporation of America Holdings and more

By Smartkarma Daily Briefs | Daily Briefs, Healthcare

In today’s briefing:

Quiddity Leaderboard ASX Mar 25: Final Expectations; Momentum Still Intact
Illumina Inc.: Is its Transition to NovaSeq X Series Noteworthy?
Peptidream (4587 JP): 2024 Result Beats Guidance; Positive Outlook for 2025
Mettler-Toledo: A Tale Of Geographic Expansion & Market Penetration To Sustain Its Growth Trajectory!
Zimmer Biomet: The 6 Most Significant Forces Steering Its Performance into 2025 & Beyond!
LH US – Labcorp Holdings: Is Its Stronghold in Diagnostics Under Threat?

Quiddity Leaderboard ASX Mar 25: Final Expectations; Momentum Still Intact

By Janaghan Jeyakumar, CFA

In this insight, we take a look at the potential index changes for ASX 300, 200, 100, 50, and 20 in the run-up to the March 2025 index rebal event.
We expect two changes for ASX 50, one change for ASX 100, and seven changes for ASX 200. Separately we see eight ADDs and six DELs for ASX 300.
The official index changes will be announced after the close on Friday 7th March 2025.

Illumina Inc.: Is its Transition to NovaSeq X Series Noteworthy?

Illumina, a leading genomic sequencing company, reported its financial results for the fourth quarter of 2024, marking a slight revenue increase of 1% year-over-year to $1.1 billion.
This growth was primarily driven by high throughput sequencing consumables as the company continues to shift its customer base towards its new NovaSeq X series of instruments.
The company placed 91 NovaSeq X instruments in the quarter, reaching an installed base of 630, and enjoyed a robust pull-through performance, averaging $1.3 million per system in 2024.

Peptidream (4587 JP): 2024 Result Beats Guidance; Positive Outlook for 2025

By Tina Banerjee

Peptidream Inc (4587 JP) reported better-than-expected 2024 result, with all key parameters beating upwardly revised guidance. Both revenue and net profit hit record high.
Larger than anticipated upfront associated with the expanded Novartis collaboration and increased milestone revenue contributed to the stellar performance of 2024.
The company expects 2025 revenue to increase 5% YoY to ¥49B. Both core operating and operating profits are expected to increase 2% YoY and net profit by 1%.

Mettler-Toledo: A Tale Of Geographic Expansion & Market Penetration To Sustain Its Growth Trajectory!

Mettler-Toledo International, Inc. recently concluded its fourth-quarter 2024 earnings call, where they reported a robust quarter, marked by solid financial performance and operational execution.
The company noted strong customer demand for its Laboratory products, particularly in Europe, which, alongside effective margin improvement initiatives, resulted in commendable adjusted EPS and cash flow.
Despite challenging market conditions, Mettler-Toledo succeeded in delivering positive financial outcomes and continues to focus on long-term growth strategies like innovation and market leadership extension.

Zimmer Biomet: The 6 Most Significant Forces Steering Its Performance into 2025 & Beyond!

Zimmer Biomet reported its fourth-quarter and full-year 2024 financial results, reflecting a complex but strategically advancing fiscal year.
The company achieved a constant currency revenue growth of nearly 5%, marking its twelfth consecutive quarter of at least mid-single-digit growth.
This robust performance, despite challenges like ERP implementation setbacks, underscores Zimmer Biomet’s resilience amidst a volatile market landscape.

LH US – Labcorp Holdings: Is Its Stronghold in Diagnostics Under Threat?