Smartkarma Daily Briefs

By Shifara Samsudeen, ACMA, CGMA

With the review period now complete, there could be 15 changes for the NIFTY Midcap 150 Index at the March rebalance.
Estimated one-way turnover is 8.3% resulting in a one-way trade of INR 7.65bn (US$88m). With over US$40bn tracking the index actively, the impact on the stocks will be much larger.
The outright adds have outperformed the forecast deletes over the last 6 months, but there has been underperformance this calendar year.

CATL A/H Listing – IPO Filing Updates

By Sumeet Singh

Contemporary Amperex Technology (CATL), one of the world’s largest battery solutions providers, aims to raise at least US$5bn in its H-share listing.
CATL is the global leader in new energy vehicle battery solutions, in China and globally, as per SNE Research. Its A-shares have been listed since 2018.
We have looked at the company’s past performance in our earlier notes. In this note, we talk about updates from its most recent filings.

Action Construction Equipment Limited: Q3 FY25 Update

By Sudarshan Bhandari

Action Construction Equipment (ACCE IN)’s Q3/9M-FY25 performance shows strong revenue growth (up 16.6% in Q3, 15.2% over nine months), improved EBITDA margins, and robust unit sales in key equipment segments.
Improved product mix and a focus on high-value equipment drive operational efficiency, boosting profitability amid increasing infrastructure and capital expenditure trends.
In the next 2 years, company will increase the proportion of exports that will drive the revenue growth.

Recruit 3Q: Strong Set of Results Despite Slowdown in Labour Markets

Recruit Holdings (6098 JP) reported 3QFY03/2025 results today which were in line with estimates. Despite labour markets cooling off, Recruit managed to report a strong set of results.
The company also has provided revised guidance for full-year FY03/2025 with an upward revision to revenues while Adj. EBITDA is forecast to be above the midpoint of the previous range.
Despite the slowdown in labour markets, Recruit’s monetisation efforts have paid off, however, we would not rush to make an entry.

BQE: Evaluating the Blue-Sky Opportunity

By Atrium Research

What you need to know: • BQE has various blue-sky opportunities ahead which we do not account for in our model.
This report breaks down each opportunity to paint a picture of a bull case scenario for the Company.
• This includes company maker projects, new applications and technologies, the mining bull cycle, capital allocation plans, geographic expansion, trust in management, and multiple expansion.

(9076 JP) New Efficiencies and Modernisation in Consumer Goods Shipping

By Michael Causton

Despite a year passing since the new rules on driver overtime came into force, transport companies are still coming up with ways to keep to the new regulations.
Seino, one of the largest trucking companies, has consolidated its regional subsidiaries and plans to open new regional hubs to reduce route distances.
Others will do the same and more collaborations are likely, lowering costs and improving efficiency for consumer distribution.

Stanley Black & Decker: How Can It Deal With Supply Chain Overhaul Risks

Stanley Black & Decker reported a mixed set of results for the fourth quarter and full year of 2024.
The company achieved some notable financial milestones, such as maintaining flat full-year revenues of $15.4 billion organically, despite challenging market conditions.
There was a positive response from some segments, notably DEWALT, which reported mid-single-digit organic growth, demonstrating resilience against a softer consumer and DIY backdrop.

Tokyu Construction (1720 JP): Q3 FY03/25 flash update

Revenue for Q3 FY03/25 was JPY196.8bn, a 4.1% YoY decline, with a 66.9% progress rate.
Full-year forecast revisions include JPY6.9bn operating profit and JPY5.0bn net income, with unchanged dividend expectations.
Strategic shareholdings reduced to JPY14.4bn by March 2024, aiming for below 10% ratio by FY03/31.

CXW: 4Q24 Beat Reflects Efficiencies, New Agreements ICE Need Expected to Climb

By Zacks Small Cap Research

Reflecting the limited supply of and older state of many government-owned correctional facilities, among other factors, we anticipate that the company will continue to sign new business that, in turn, will further enhance operating leverage, results and multiple expansion.
The company recently expanded the occupancy it provides to the state of Montana and there are multiple new RFIs and RFPs from ICE for new capacity.
Reflecting CXW’s ongoing discussions with both existing and potential government partners for new occupancy, we believe the outlook for new business activity for CXW is strong.

Enersys – EnerSys: Electrification & Digitization Trends Can Shape The Future Of Energy Management!

EnerSys reported a mixed but promising outlook for their fiscal third quarter of 2025.
Revenue increased by 5% year-over-year, reaching approximately $906 million, though this growth was mildly under expectations due to foreign exchange pressures, slower U.S. communication market recovery, and a disruption at a motive power customer’s facility in EMEA.
A key positive for the quarter was the notable margin expansion driven by a strong price/mix across all business lines, operational improvements in Energy Systems, and contributions from the recent Bren-Tronics acquisition.

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Feb 13

Daily Brief Energy/Materials: TotalEnergies , SGX Rubber Future TSR20, Nippon Denko, Crown Holdings, Tocvan Ventures, Oat Agrio, Dic Corp, Directa Plus and more

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

In today’s briefing:

[Earnings Review] TotalEnergies Surpasses Estimates on Strong Gas Trading and Higher LNG Prices
Indian Trade Body Greenlights ADD On Halobutyl Rubber Imports
Indian Trade Body Greenlights ADD On Halobutyl Rubber Imports
Nippon Denko (5563 JP): Full-year FY12/24 flash update
Crown Holdings: Here Are the 6 Key Drivers Shaping Its Performance for 2025 & Beyond!
TOC: Gran Pilar Exploration Update
Oat Agrio (4979 JP): Full-year FY12/24 flash update
Dic Corp (4631 JP): Full-year FY12/24 flash update
Hybridan Small Cap Feast: 10/02/2025

[Earnings Review] TotalEnergies Surpasses Estimates on Strong Gas Trading and Higher LNG Prices

By Suhas Reddy

In Q4, TotalEnergies beat adjusted net income forecasts by 4.8% and revenue projections by 11%. Adjusted net income and EPS rose by 8.1% QoQ and 9.2%, respectively.
TotalEnergies’ average gas price realisation rose 8.3% QoQ, European refining margins surged by 68.2% QoQ, while LNG price realisation rose 4.6%.
TotalEnergies’ hydrocarbon production rose 0.7% QoQ to 2.43 mboepd, as a 4.5% gas output increase offset a 2.4% oil production decline.

Indian Trade Body Greenlights ADD On Halobutyl Rubber Imports

By Vinod Nedumudy

HIIR from Japan, Russia, Singapore, UK, USA face action
India producer Reliance Sibur petitions DGTR on dumping
ADD range from 10% to 70% on the affected imports

Indian Trade Body Greenlights ADD On Halobutyl Rubber Imports

By Vinod Nedumudy

HIIR from Japan, Russia, Singapore, UK, USA face action
India producer Reliance Sibur petitions DGTR on dumping
ADD range from 10% to 70% on the affected imports

Nippon Denko (5563 JP): Full-year FY12/24 flash update

In Q1 FY12/24, revenue was JPY78.2bn (-0.2% YoY), operating profit JPY6.9bn (+46.0% YoY), recurring profit JPY4.9bn (+100.8% YoY).
The company raised its annual dividend forecast to JPY11.0, targeting a payout ratio of about 40%.
Full-year forecast for FY12/25 remains undecided due to uncertainties in alloy prices and electronic component demand.

Crown Holdings: Here Are the 6 Key Drivers Shaping Its Performance for 2025 & Beyond!

Crown Holdings, Inc. reported its fourth-quarter performance for the year 2024, demonstrating notable growth and operational improvements, albeit with some challenges.
The earnings per share for the quarter reached $3.02, largely augmented by a significant gain from the sale of Eviosys.
When adjusted, the earnings per share stood at $1.59, which surpassed the $1.24 figure from the comparable quarter in the previous year.

TOC: Gran Pilar Exploration Update

By Atrium Research

What you need to know: • Tocvan provided an update on its ongoing drill program at its Gran Pilar Gold Silver Project in Sonora, Mexico.
• A total of 1,122m of core drilling across 10 drill holes have been completed at the majority controlled Main Zone.
• A visual review of the core identified key structures and rock characterization.

Oat Agrio (4979 JP): Full-year FY12/24 flash update

FY12/24 revenue was JPY29.8bn, with operating profit at JPY3.1bn, and net income at JPY2.1bn.
Agrichemicals revenue declined 6.8% YoY, while fertilizers and biostimulants revenue increased 9.3% YoY to JPY18.7bn.
FY12/25 forecasts project revenue at JPY30.8bn, operating profit at JPY3.3bn, and net income at JPY2.1bn.

Dic Corp (4631 JP): Full-year FY12/24 flash update

FY12/24 sales reached JPY1.07tn (+3.1% YoY), with operating profit at JPY44.5bn (+148.1% YoY), driven by product mix and cost reductions.
Sales in Packaging and Graphic segment increased due to jet inks demand, while Functional Products saw divestitures impact.
FY12/25 forecasts project JPY1,110.0bn sales (+3.6% YoY) and JPY48.0bn operating profit (+7.8% YoY), with dividend policy maintained.

Hybridan Small Cap Feast: 10/02/2025

By Hybridan

The independent music Company housing talent management, live booking, merchandising, talent services and events, provided an update on trading for the financial year ended 31 December 2024.
FY24 delivered 100% growth in Group revenue to circa £50m (FY23: £24.1m) and profitability milestone surpassed with adjusted operating EBITDA anticipated to be approximately £1.5m (FY23: loss of £0.46m).
The Board of ATC is considering moving the public quotation for trading in its shares to a market operated by the LSE.

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Feb 13

Daily Brief Health Care: Japan Eyewear Holdings , Jiangsu Hengrui Medicine, Atea Pharmaceuticals , Cencora , Hologic Inc, Kadimastem, Ansell Ltd, Sunshine Lake Pharma, Arrowhead Pharmaceuticals , Bio Techne Corp and more

By Smartkarma Daily Briefs | Daily Briefs, Healthcare

In today’s briefing:

Japan Eyewear (5889) – “Second IPO” Equity Offering Creates TOPIX Inclusion
Jiangsu Hengrui Pharma A/H Listing – Innovation and Overseas Expansion Driving Earnings Rebound
Reviving two old ideas
Cencora Inc.: Can the MSO Strategy with RCA & OneOncology Drive Sustainable Growth?
Hologic: The Future of 3D Mammography and Molecular Diagnostics—What’s Next?
Kadimastem (KDST.TA) Core Investment Case 11022025
Ansell Ltd (ANN AU): Healthcare Business Revival Drives H1 Result; FY25 Guidance Raised
Pre-IPO Sunshine Lake Pharma – “Outdated” Pipeline Is Difficult to Obtain Decent Valuation
Arrowhead Pharmaceuticals Inc – On February 10
Bio-Techne Corporation: How Spatial Biology and Molecular Diagnostics Are Changing the Game!

Japan Eyewear (5889) – “Second IPO” Equity Offering Creates TOPIX Inclusion

Janaghan Jeyakumar, CFA has had Japan Eyewear Holdings (5889 JP) on his watchlist. He wrote on 6 Feb 2025 in his TOPIX Who Is Ready piece he expected Q1 inclusion.
He also noted that an equity offering might be required. Monday, we got a forecast revision (upward) for the year ended 31 January, an equity offering, and TOPIX inclusion.
The equity offering proposed is large enough one could consider it a “Second IPO”. This matters in terms of absorption and in thinking about the TOPIX Inclusion event.

Jiangsu Hengrui Pharma A/H Listing – Innovation and Overseas Expansion Driving Earnings Rebound

By Sumeet Singh

Jiangsu Hengrui Medicine (600276 CH) 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.
In this note, we look at its past performance and other deal dynamics that might impact the listing.

Reviving two old ideas

By Turtles all the way down

I have again taken a position in Atea Pharma (AVIR) .
I wrote this up a little over a year ago and flipped it for about a 20% profit within a few months.
I kind of forgot about it as I lost interest in these pharma special situations, but given recent events AVIR is too enticing to ignore.

Cencora Inc.: Can the MSO Strategy with RCA & OneOncology Drive Sustainable Growth?

Cencora reported a robust performance in the first quarter of fiscal year 2025, showcasing significant growth across various metrics.
The company recorded a revenue increase of 13%, reaching $81.5 billion, driven primarily by strong gains in the U.S. Healthcare Solutions segment.
This growth included a substantial rise in sales of GLP-1 products, which alone saw a 53% year over-year increase.

Hologic: The Future of 3D Mammography and Molecular Diagnostics—What’s Next?

Hologic, Inc. reported its first-quarter fiscal 2025 results, reflecting both positive operational efficiencies and some challenges impacting revenue streams.
The overall revenue for the quarter came in at $1.022 billion, marking a modest 1% increase on a constant currency basis.
Noteworthy is the impact of the stronger U.S. dollar, which reduced reported revenue by about $9 million.

Kadimastem (KDST.TA) Core Investment Case 11022025

By ACF Equity Research

Kadimastem (KDST.TA:TASE) is an Israeli-based clinical-stage cell therapy company pioneering regenerative medicine for insulin dependent type 1 diabetes (T1D) (no more injections) and amyotrophic lateral sclerosis (ALS).
KDST has a proprietary stem-cell differentiation platform for scalable therapies designed to replace lost or damaged cells.
KDST’s T1D IsletRx program aims to revolutionize insulin production for diabetes patients using off-the-shelf allogeneic encapsulated pancreatic islet cells with immune protection.

Ansell Ltd (ANN AU): Healthcare Business Revival Drives H1 Result; FY25 Guidance Raised

By Tina Banerjee

Ansell Ltd (ANN AU) reported 30% YoY growth in revenue to $1,019M in 1HFY25 backed by strong Healthcare and Industrial business contribution. EBIT margin expanded 250bps to 12.5%.
KBU integration is progressing well and APIP measures bearing fruit generating higher savings. The company has realized a savings of $22M in H1FY25, compared to $7M in H1FY24.
Ansell revised FY25 adjusted EPS from $1.10–1.27 to $1.18–1.28, with the midpoint beating consensus. Management expects continued organic constant currency sales growth in H2FY25, but slower than H1FY25.

Pre-IPO Sunshine Lake Pharma – “Outdated” Pipeline Is Difficult to Obtain Decent Valuation

By Xinyao (Criss) Wang

Most revenue was contributed by Kewei, but kewei has been included in VBP.Together with increasing competition, the outlook is gloomy if Sunshine Lake Pharma continues to mainly rely on Kewei.
There’s a significant gap in Sunshine Lake Pharma’s R&D progress/clinical data compared to the products of peers.The pipeline has been “disconnected” from the level of domestic biotech in recent years
Sunshine Lake Pharma is inferior to other pharmaceutical companies in China.Even if CJ Pharma will be merged into Sunshine Lake Pharma, its market value should be lower than leading Biotech.

Arrowhead Pharmaceuticals Inc – On February 10

By Zacks Small Cap Research

On February 10, 2024, Arrowhead Pharmaceuticals, Inc. (ARWR) announced financial results for the first quarter of fiscal year 2025 that ended December 31, 2024.
Following the company’s recent license and collaboration agreement with Sarepta Therapeutics, 2025 is set to be a catalyst-rich year.
The company is now financed through 2028 and potentially through multiple commercial launches by Arrowhead and/or its partners, the first of which could occur this year for plozasiran for the treatment of familial chylomicronemia syndrome (FCS), which has a PDUFA date of November 18, 2025.

Bio-Techne Corporation: How Spatial Biology and Molecular Diagnostics Are Changing the Game!

Bio-Techne Corporation’s second quarter of fiscal year 2025 results showcased a blend of robust growth and some challenges.
The company reported a 9% year-over-year increase in revenue, achieving $297 million in total sales, which was also the growth rate on an organic basis.
This performance was largely fueled by significant contributions from the biopharma end markets, especially large pharmaceutical orders for Good Manufacturing Practice (GMP) reagents and protein analytical implementations, alongside notable strides in their ExosomeDx and spatial biology divisions.

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Feb 13

Daily Brief Consumer: Guming Holdings, Shimano Inc, Toyota Motor, Impress Holdings, Murphy Usa Inc, Nhk Spring, Takamatsu Construction, Mitsuba Corp, Happinet Corp, JP-HOLDINGS, INC. and more

By Smartkarma Daily Briefs | Consumer, Daily Briefs

In today’s briefing:

Guming Holdings (1364 HK): Potential Valuation Upside with Upcoming Mixue IPO
Shimano (7309) | A Slow but Steady Ascent
EQD | Volatile Roads: Unveiling Risk in the Asian Auto Industry Through the Options Market
Impress Holdings (9479 JP): Q3 FY03/25 flash update
Murphy USA Inc.: Can Merchandising Contribution & Growth Catalyze Growth?
Nhk Spring (5991 JP): Q3 FY03/25 flash update
Takamatsu Construction (1762 JP): Q3 FY03/25 flash update
Mitsuba Corp (7280 JP): Q3 FY03/25 flash update
Happinet Corp (7552 JP): Q3 FY03/25 flash update
JP-HOLDINGS, INC. (2749 JP): Q3 FY03/25 flash update

Guming Holdings (1364 HK): Potential Valuation Upside with Upcoming Mixue IPO

By Devi Subhakesan

Guming Holdings (1364 HK) ‘s shares closed 7% below issue price by end of yesterday’s trading.
Institutional investors may be cautious, with many likely waiting for the upcoming IPO of Mixue Group (MIX HK), widely viewed as a more attractive and bigger opportunity in tea space.
The upcoming Mixue IPO—aiming to raise about USD500 million—could spark broader investor interest in the sector and may boost valuations for Guming given its relative operational strengths.

Shimano (7309) | A Slow but Steady Ascent

By Mark Chadwick

Cautious but Credible – FY25 guidance underwhelms, but Shimano’s realism is justified. The bike market is recovering, even if 2025 will be a grind.
Sitting on a Cash Pile – ¥530 billion in net financial assets, yet capital returns remain restrained. Investors will be watching for bolder moves.
Quality Wins – mid-cycle ROIC north of 20% and end-market inventories normalising – a long-term winner at a fair price.

EQD | Volatile Roads: Unveiling Risk in the Asian Auto Industry Through the Options Market

By Gaudenz Schneider

The global auto industry faces significant tariff exposure. Option implied volatility offers a forward-looking assessment of risk.
Chinese car makers started to increase in implied volatility more than the other markets at the beginning of February. They now show the highest risk.
Recent implied volatility trends, asymmetric pricing (skew), and the term structure all seem to indicate that the Indian auto sector is the least exposed to international trade relations.

Impress Holdings (9479 JP): Q3 FY03/25 flash update

Revenue decreased YoY in several segments, with notable declines in Content and Platform Businesses due to market trends.
Operating losses were reduced across multiple segments, attributed to improved profitability and lower SG&A expenses despite revenue declines.
Certain segments experienced revenue growth, driven by strong sales in Internet Media services and new platform developments.

Murphy USA Inc.: Can Merchandising Contribution & Growth Catalyze Growth?

Murphy USA recently reported its fourth-quarter and full-year 2024 financial results, presenting a mixed performance and outlook.
The company reported an EBITDA of just over $1 billion for 2024, indicating strong revenue capabilities despite several challenges throughout the year.
The notable positives include growth in perstore merchandise sales and margin, along with robust retail fuel margins, which improved by 50 basis points to $0.281 per gallon.

Nhk Spring (5991 JP): Q3 FY03/25 flash update

Revenue increased YoY across most segments, with Automotive Seating declining; operating profit rose, and GPM improved to 13.7%.
Revenue increased YoY, narrowing losses; yen depreciation boosted yen-denominated earnings at overseas subsidiaries.
Semiconductor market recovery increased sales of process components, while high-capacity HDD demand boosted HDD suspensions revenue.

Takamatsu Construction (1762 JP): Q3 FY03/25 flash update

Orders increased by 10.3% YoY to JPY275.4bn, with revenue up 10.8% YoY to JPY247.8bn.
Architecture segment orders rose 16.7% YoY, while Civil Engineering orders declined 13.0% YoY.
Real Estate segment saw a 32.6% YoY increase in orders, with revenue rising 32.5% YoY.

Mitsuba Corp (7280 JP): Q3 FY03/25 flash update

Cumulative Q3 revenue rose 0.2% YoY to JPY257.4bn, with notable growth in the Other business segment.
Operating profit increased 8.0% YoY to JPY15.6bn, driven by price improvements and growth in core business segments.
Transportation Equipment-related Operations faced a 23.1% YoY revenue decline in China, despite growth in other regions.

Happinet Corp (7552 JP): Q3 FY03/25 flash update

Sales increased to JPY283.2bn (+4.0% YoY) driven by growth in Toys and Amusement segments despite declines elsewhere.
Operating profit rose to JPY9.8bn (+26.7% YoY) with improved margins, despite a decline in the Video Games segment.
Full-year targets for FY03/25 were raised, forecasting JPY360.0bn sales and JPY130.0 dividend per share.

JP-HOLDINGS, INC. (2749 JP): Q3 FY03/25 flash update

Revenue increased by 6.5% YoY, with operating profit and recurring profit growing 25.5% and 28.1% YoY, respectively.
The company opened 20 new facilities, including nurseries and after-school clubs, expanding its child-rearing support facilities.
Net income attributable to owners rose 36.6% YoY, driven by increased child enrollment and revised staffing ratios.

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Feb 13

Daily Brief Industrials: Delhivery , Contemporary Amperex Technology (CATL), Action Construction Equipment, Recruit Holdings, BQE Water , Seino Holdings, Stanley Black & Decker, Tokyu Construction, CoreCivic , Enersys and more

By Smartkarma Daily Briefs | Daily Briefs, Industrials

In today’s briefing:

NIFTY MIDCAP150 Index Rebalance Preview: 15 Potential Changes in March
CATL A/H Listing – IPO Filing Updates
Action Construction Equipment Limited: Q3 FY25 Update
Recruit 3Q: Strong Set of Results Despite Slowdown in Labour Markets
BQE: Evaluating the Blue-Sky Opportunity
(9076 JP) New Efficiencies and Modernisation in Consumer Goods Shipping
Stanley Black & Decker: How Can It Deal With Supply Chain Overhaul Risks
Tokyu Construction (1720 JP): Q3 FY03/25 flash update
CXW: 4Q24 Beat Reflects Efficiencies, New Agreements ICE Need Expected to Climb
Enersys – EnerSys: Electrification & Digitization Trends Can Shape The Future Of Energy Management!

NIFTY MIDCAP150 Index Rebalance Preview: 15 Potential Changes in March

By Shifara Samsudeen, ACMA, CGMA

With the review period now complete, there could be 15 changes for the NIFTY Midcap 150 Index at the March rebalance.
Estimated one-way turnover is 8.3% resulting in a one-way trade of INR 7.65bn (US$88m). With over US$40bn tracking the index actively, the impact on the stocks will be much larger.
The outright adds have outperformed the forecast deletes over the last 6 months, but there has been underperformance this calendar year.

CATL A/H Listing – IPO Filing Updates

By Sumeet Singh

Contemporary Amperex Technology (CATL), one of the world’s largest battery solutions providers, aims to raise at least US$5bn in its H-share listing.
CATL is the global leader in new energy vehicle battery solutions, in China and globally, as per SNE Research. Its A-shares have been listed since 2018.
We have looked at the company’s past performance in our earlier notes. In this note, we talk about updates from its most recent filings.

Action Construction Equipment Limited: Q3 FY25 Update

By Sudarshan Bhandari

Action Construction Equipment (ACCE IN)’s Q3/9M-FY25 performance shows strong revenue growth (up 16.6% in Q3, 15.2% over nine months), improved EBITDA margins, and robust unit sales in key equipment segments.
Improved product mix and a focus on high-value equipment drive operational efficiency, boosting profitability amid increasing infrastructure and capital expenditure trends.
In the next 2 years, company will increase the proportion of exports that will drive the revenue growth.

Recruit 3Q: Strong Set of Results Despite Slowdown in Labour Markets

Recruit Holdings (6098 JP) reported 3QFY03/2025 results today which were in line with estimates. Despite labour markets cooling off, Recruit managed to report a strong set of results.
The company also has provided revised guidance for full-year FY03/2025 with an upward revision to revenues while Adj. EBITDA is forecast to be above the midpoint of the previous range.
Despite the slowdown in labour markets, Recruit’s monetisation efforts have paid off, however, we would not rush to make an entry.

BQE: Evaluating the Blue-Sky Opportunity

By Atrium Research

What you need to know: • BQE has various blue-sky opportunities ahead which we do not account for in our model.
This report breaks down each opportunity to paint a picture of a bull case scenario for the Company.
• This includes company maker projects, new applications and technologies, the mining bull cycle, capital allocation plans, geographic expansion, trust in management, and multiple expansion.

(9076 JP) New Efficiencies and Modernisation in Consumer Goods Shipping

By Michael Causton

Despite a year passing since the new rules on driver overtime came into force, transport companies are still coming up with ways to keep to the new regulations.
Seino, one of the largest trucking companies, has consolidated its regional subsidiaries and plans to open new regional hubs to reduce route distances.
Others will do the same and more collaborations are likely, lowering costs and improving efficiency for consumer distribution.

Stanley Black & Decker: How Can It Deal With Supply Chain Overhaul Risks

Stanley Black & Decker reported a mixed set of results for the fourth quarter and full year of 2024.
The company achieved some notable financial milestones, such as maintaining flat full-year revenues of $15.4 billion organically, despite challenging market conditions.
There was a positive response from some segments, notably DEWALT, which reported mid-single-digit organic growth, demonstrating resilience against a softer consumer and DIY backdrop.

Tokyu Construction (1720 JP): Q3 FY03/25 flash update

Revenue for Q3 FY03/25 was JPY196.8bn, a 4.1% YoY decline, with a 66.9% progress rate.
Full-year forecast revisions include JPY6.9bn operating profit and JPY5.0bn net income, with unchanged dividend expectations.
Strategic shareholdings reduced to JPY14.4bn by March 2024, aiming for below 10% ratio by FY03/31.

CXW: 4Q24 Beat Reflects Efficiencies, New Agreements ICE Need Expected to Climb

By Zacks Small Cap Research

Reflecting the limited supply of and older state of many government-owned correctional facilities, among other factors, we anticipate that the company will continue to sign new business that, in turn, will further enhance operating leverage, results and multiple expansion.
The company recently expanded the occupancy it provides to the state of Montana and there are multiple new RFIs and RFPs from ICE for new capacity.
Reflecting CXW’s ongoing discussions with both existing and potential government partners for new occupancy, we believe the outlook for new business activity for CXW is strong.

Enersys – EnerSys: Electrification & Digitization Trends Can Shape The Future Of Energy Management!

EnerSys reported a mixed but promising outlook for their fiscal third quarter of 2025.
Revenue increased by 5% year-over-year, reaching approximately $906 million, though this growth was mildly under expectations due to foreign exchange pressures, slower U.S. communication market recovery, and a disruption at a motive power customer’s facility in EMEA.
A key positive for the quarter was the notable margin expansion driven by a strong price/mix across all business lines, operational improvements in Energy Systems, and contributions from the recent Bren-Tronics acquisition.

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Feb 13

Daily Brief Financials: Lifestyle Communities, Guotai Junan Securities , DBS, Anima Holding, WeWork India Management Ltd, American International Group, Bitcoin, Swire Properties and more

By Smartkarma Daily Briefs | Daily Briefs, Financials

In today’s briefing:

Thoughts On An Ingenia (INA AU) / Lifestyle (LIC AU) Merger
FXI Rebalance Preview: GTJA, ZTE In; CTG, China Coal Out
DBS – Granular Disclosure Shows Aggressive Deterioration in HK and China. Look at Pillar 3 Also.
Banco BPM’s Sweetened Takeover Offer for Anima Holding
WeWork India Management Ltd Pre-IPO Tearsheet
American International Group (AIG) – Tuesday, Nov 12, 2024
The More Things Change, The More They Stay The Same
Asia Real Estate Tracker (12-Feb-2025): LaSalle appoints APAC Co-Heads; Claire Tang moves to Rava.

Thoughts On An Ingenia (INA AU) / Lifestyle (LIC AU) Merger

By David Blennerhassett

Reportedly, Ingenia Communities (INA AU) and Lifestyle Communities (LIC AU) – companies which provide low-cost housing needs for working, semi-retired, and/or retired people – are mulling a merger.
Part of the rumourmill pivots off of the fact Lifestyle will release its 1H25E results after market on the 24th Feb, shortly ahead of Ingenia’s own release the following morning.
Lifestyle’s share price remain 25% adrift of levels shortly ahead of a July 2024 ABC report alleging excessive exit fees.

FXI Rebalance Preview: GTJA, ZTE In; CTG, China Coal Out

Nearing the end of the review period, we expect two changes for the iShares China Large-Cap (FXI) (FXI US) ETF in March.
Guotai Junan Securities (2611 HK) is a high probability add while China Tourism Group Duty Free (1880 HK) is a high probability delete.
ZTE Corp H (763 HK) is a potential inclusion currently and could replace China Coal Energy Co H (1898 HK) as long as it stays in inclusion zone.

DBS – Granular Disclosure Shows Aggressive Deterioration in HK and China. Look at Pillar 3 Also.

By Daniel Tabbush

Granular data from DBS shows worsening credit metrics in Greater China and in Hong Kong.
We use DBS and other banks, as a window on credit metrics for China banks and HK local banks.
The NPL ratio for its HK business moved from 1.1% to 1.7% YoY, while Pillar 3 data shows sharp rise in New NPLs in 2H24

Banco BPM’s Sweetened Takeover Offer for Anima Holding

By Jesus Rodriguez Aguilar

Banco BPM raises offer for Anima to €7.00 per share, securing over 43% shareholder support. Shareholders will vote on February 28, with deal completion expected in mid-2025, pending regulatory approvals.
Strategic acquisition boosts Banco BPM’s non-interest income to 50% of total revenues and strengthens its wealth management and insurance business, reinforcing its defense against UniCredit’s €10 billion takeover attempt.
Market assigns a 92% probability of deal completion. Shareholders are advised to accept, as failure to tender may result in lower liquidity.

WeWork India Management Ltd Pre-IPO Tearsheet

By Rosita Fernandes

WeWork India Management Ltd (1690124D IN) (WIML) is looking to raise about US$450m in its upcoming India IPO. The bookrunners for the deal are JMFin, ICICI, Jefferies, Kotak, 360 One.
WIML was established in 2016 under the name, “Halosaur Bengaluru Private Limited” and is backed by Embassy Group. It is one of the leading premium flexible workspace operators.
WIML has been the largest operator by total revenue in the past three Fiscals, according to the CBRE Report.

American International Group (AIG) – Tuesday, Nov 12, 2024

By Value Investors Club

AIG has completed efforts to reposition itself as a leader in the insurance industry
The company has a renewed strategy for growth and improved financial performance
A strong leadership team and clear vision for the future position AIG to deliver value for customers and shareholders

This content is sourced through publicly available sources and has been machine generated. Information displayed is for general informational purposes only. This article was originally published 3 months ago on Value Investors Club.

The More Things Change, The More They Stay The Same

By Etherbridge

2025 is off to a tough start. Our call on boring or scary price action seems to be holding up.
Bitcoin remains boring and is range-bound between $106k and $91k.
Altcoins have been scary, with the average sector down 25%+. Sector Performance for Jan 2025.

Asia Real Estate Tracker (12-Feb-2025): LaSalle appoints APAC Co-Heads; Claire Tang moves to Rava.

By Asia Real Estate Tracker

LaSalle appoints Japan, Korea-based APAC Co-Heads as Tang heads to Rava, highlighting leadership changes within the company.
Dash Living’s expansion in Japan to 19 locations through partnerships with BlackRock and Greystar reflects their growth strategy in the region.
Swire Properties expecting a $103M loss as Pacific Place rents drop 16% due to markdowns, showcasing the impact of market changes on the company.

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Feb 13

Most Read: Contemporary Amperex Technology (CATL), Kokusai Electric , Samsung Life Insurance, Furukawa Co Ltd, Japan Eyewear Holdings , Eva Airways, Shanghai Henlius Biotech , Lifestyle Communities, Guming Holdings, Cambricon Technologies Lt and more

By Smartkarma Daily Briefs | Daily Briefs, Most Read

In today’s briefing:

CATL (300750 CH): Index Inclusion Post H-Share Listing
Kokusai Electric (6525) – Upcoming Lockup Expiry And BIG Index Demand
Block Deal Sale of About 278 Billion Won of Samsung Electronics by Samsung Life and Samsung F&M
Furukawa (5715 JP) – Third Capital Policy Change in a Year Means Big Buyback
Japan Eyewear (5889) – “Second IPO” Equity Offering Creates TOPIX Inclusion
Taiwan Top 50 ETF Rebalance Preview: Eva Air (2618 TT) Winging Its Way In
Shanghai Henlius Biotech (2696 HK)- LVC Is Betting on Higher Valuation Upside Due to Business Update
Thoughts On An Ingenia (INA AU) / Lifestyle (LIC AU) Merger
Guming Holdings IPO Trading – Strong Retail Demand, with Decent Coverage on the Insti Tranche
China A50 ETFs Rebalance Preview: Three Changes in March

CATL (300750 CH): Index Inclusion Post H-Share Listing

Contemporary Amperex Technology (CATL) (300750 CH) has announced plans for an H-share listing with media reports indicating a raise of at least US$5bn. Shareholders have approved the issuance.
CATL (300750 CH) was designated as a Chinese Military Company earlier this year by the U.S. Department of Defense but is still not on the NS-CMIC list.
The CATL (300750 CH) H-shares should get Fast Entry to the global indices and iShares China Large-Cap (FXI US) ETF. Inclusion in the HSCEI and HSI will take longer.

Kokusai Electric (6525) – Upcoming Lockup Expiry And BIG Index Demand

Kokusai Electric (6525 JP) was IPOed in September 2023. The stock was cheap. It rose sharply, tripling in 9 months. At the ATH, the pre-IPO owners launched a HUGE secondary.
It was like a second IPO. The stock dipped, rallied, plummeted into pricing. Stayed there for two days, and in 6 months, the shares have halved.
Lockup expiry is next week, and there is a likely large index event in ~10 weeks.

Block Deal Sale of About 278 Billion Won of Samsung Electronics by Samsung Life and Samsung F&M

By Douglas Kim

Samsung Life Insurance (032830 KS) and Samsung Fire & Marine Insurance (000810 KS) plan to sell about 278 billion won of Samsung Electronics (005930 KS) in block deal sales.
A total of 5 million shares of Samsung Electronics shares that are expected to be sold in this block deal sale represents 0.1% of Samsung Electronics’ outstanding shares.
If Samsung Life Insurance is able to sell 4.256 million shares of Samsung Electronics for 236.4 billion won, this would represent 1.3% of Samsung Life Insurance’s market cap.

Furukawa (5715 JP) – Third Capital Policy Change in a Year Means Big Buyback

In May 2023, Furukawa Co Ltd (5715 JP) decided it would review cross-holdings as part of its Actions to Implement Management Awareness of Capital Cost and Share Price.
In February 2024, it announced a cross-holding reduction policy, and then accelerated it in May 2024. They’ve been selling. They did a small buyback too.
Monday they announced a LARGE buyback (looks larger than it is) leaving future capital allocation policy better, but still wanting. The question is now the forward-forward bet.

Japan Eyewear (5889) – “Second IPO” Equity Offering Creates TOPIX Inclusion

Janaghan Jeyakumar, CFA has had Japan Eyewear Holdings (5889 JP) on his watchlist. He wrote on 6 Feb 2025 in his TOPIX Who Is Ready piece he expected Q1 inclusion.
He also noted that an equity offering might be required. Monday, we got a forecast revision (upward) for the year ended 31 January, an equity offering, and TOPIX inclusion.
The equity offering proposed is large enough one could consider it a “Second IPO”. This matters in terms of absorption and in thinking about the TOPIX Inclusion event.

Taiwan Top 50 ETF Rebalance Preview: Eva Air (2618 TT) Winging Its Way In

Eva Airways (2618 TT) is forecast to be added to the Yuanta/P-Shares Taiwan Top 50 ETF in March, replacing Formosa Chemicals & Fibre (1326 TT).
Passive trackers will have 1 day of ADV to buy in Eva Airways (2618 TT) and over 3 days of ADV to sell in Formosa Chemicals & Fibre (1326 TT).
Positioning on Eva Airways (2618 TT) does not appear excessive while Formosa Chemicals & Fibre (1326 TT) seems to be oversold.

Shanghai Henlius Biotech (2696 HK)- LVC Is Betting on Higher Valuation Upside Due to Business Update

By Xinyao (Criss) Wang

LVC continues to increase its holdings in Henlius, indicating that LVC remains optimistic about Henlius as its internationalization process significantly accelerated. We are interested to see Lin Lijun’s next move.
In the short to medium term, based on our conservative forecast on peak sales of HANQUYOU/HANSIZHUANG in overseas markets and domestic product sales, Henlius’ market value could reach RMB13-16 billion.
Considering other candidates(e.g. HLX15, HLX11, HLX14), indication expansion, drug combination, etc., revenue of Henlius could reach about RMB8-9 billion in the long term, with market value to reach RMB24-27 billion.

Thoughts On An Ingenia (INA AU) / Lifestyle (LIC AU) Merger

By David Blennerhassett

Reportedly, Ingenia Communities (INA AU) and Lifestyle Communities (LIC AU) – companies which provide low-cost housing needs for working, semi-retired, and/or retired people – are mulling a merger.
Part of the rumourmill pivots off of the fact Lifestyle will release its 1H25E results after market on the 24th Feb, shortly ahead of Ingenia’s own release the following morning.
Lifestyle’s share price remain 25% adrift of levels shortly ahead of a July 2024 ABC report alleging excessive exit fees.

Guming Holdings IPO Trading – Strong Retail Demand, with Decent Coverage on the Insti Tranche

By Clarence Chu

Guming Holdings (1364 HK) raised US$233m in its Hong Kong IPO. Guming Holdings (Guming) sells freshly-made beverages in China.
Guming Holdings (Guming) sells freshly-made beverages in China. Guming focuses on the mid-priced freshly-made tea beverage market with product prices typically ranging between RMB10-18.
We have covered various aspects of the deal in our previous note. In this note, we will talk about the demand and trading dynamics.

China A50 ETFs Rebalance Preview: Three Changes in March