Smartkarma Daily Briefs

• Change in local limit is a positive for SK Hynix (000660 KS) 
• Those in the local markets had to play SK Square (402340 KS) before
• The risk is that over 1/3 of KOSPI 200 is now reliant on 2 names

• Cycle Execution: Switch 2 launch momentum is strong, with disciplined guidance and improving margins, suggesting Nintendo’s hardware transition is proceeding smoothly and could drive further upward revisions. 
• Earnings Quality: Conservative assumptions, resilient legacy software, and early signs of operating leverage provide visibility into sustainable mid-cycle profitability beyond initial launch dynamics. 
• Valuation & Positioning: Despite a 60% rally and premium multiples, Nintendo remains the purest global gaming IP play, justifying elevated valuation through enduring creative and structural advantages.

• POSCO is shifting from cyclical steel to sustainable, high-margin materials and hydrogen technologies.
• Earnings recovery and RBM scale-up underpin a 15–35% re-rating potential by FY27.
• Strong asset base, improving margins, and carbon-neutral roadmap limit downside risk.

• We now expect the privatisation of ENN Energy (2688 HK) to be completed by mid-2026, given that the pre-conditions are yet to be satisfied.
• For 3Q25, the gas sales volume of ENN Energy has picked up. Meanwhile, net profit for ENN Natural Gas has also recovered. Both results are positive.
• Incorporating our latest timetable estimate, EPS forecasts, and adjusted undisturbed PERs, ENN Energy is valued at HK$67.40-72.16, meaning the share price is at 0.4% to 7% discount.

• TSMC Sets Sights on 3-10% Price Rises for Advanced Nodes
• MediaTek’s Leap Into the 2nm Era — Leading Edge Node Signals Market Leadership Ambitions
• Mediatek 3Q25: Good News (ASIC Revenue) But Weak Margins Getting Weaker. Stock Not Attractive. 

• Sify Technologies is a comprehensive ICT service and solution provider in India, strategically positioned to capitalize on the country’s digital transformation, with core services in data centers, network, and digital services.
• The company is in a high-growth phase, marked by significant capital expenditures in expanding its data center capacity to meet the burgeoning demand driven by cloud adoption and the advent of AI, leading to near-term pressure on profitability.
• While revenue has been growing, the company faces challenges with net losses and high debt levels, making the successful and timely monetization of its new assets critical for its long-term financial health and shareholder returns.

This content is AI-generated and displayed for general informational purposes only. Please verify independently before use.

• Dominant Market Position in High-Growth Emerging Markets: Orion holds a commanding presence in the confectionery markets of Vietnam and Russia, driven by the exceptional brand equity of its flagship product, Choco Pie. Continued capacity expansion in these regions is poised to capture further growth.
• Strong Financial Performance and Shareholder Returns: The company has demonstrated a robust track record of revenue and net income growth, coupled with a significant increase in dividend payouts. This highlights efficient operations and a commitment to returning value to shareholders.
• Diversification and Future Growth Engines: Strategic initiatives to expand into new business areas, including beverages, convenient meal replacements, and biotech, present long-term growth opportunities beyond the core confectionery segment, mitigating reliance on a single product category.

This content is AI-generated and displayed for general informational purposes only. Please verify independently before use.

• As Vietnam’s largest dairy company, Vinamilk is showing signs of a turnaround after a period of stagnation. Recent quarterly results indicate a recovery driven by the stabilization of its domestic general trade channel and robust performance in export markets.
• The company’s strategic focus on digital transformation and international expansion, particularly in key Asian and African markets, is expected to drive a rebound in earnings growth in the coming fiscal year.
• Despite facing challenges from rising raw material costs and intense domestic competition, the stock appears undervalued, trading at a significant discount to historical multiples. A potential upgrade of the Vietnamese market could serve as a major re-rating catalyst.

This content is AI-generated and displayed for general informational purposes only. Please verify independently before use.

• DigiPlus Interactive is experiencing explosive growth in revenue and profitability, driven by its market-leading digital gaming platforms, BingoPlus and ArenaPlus, in the Philippines.
• Significant regulatory uncertainty clouds the company’s future, with proposed legislation in the Philippines potentially banning or heavily restricting online gaming, which could severely impact its core business.
• Despite the regulatory overhang, the company maintains a strong balance sheet with a substantial cash position, enabling strategic initiatives such as a significant share buyback program and initial steps toward international expansion.

This content is AI-generated and displayed for general informational purposes only. Please verify independently before use.

Key points (machine generated)

• Barry Callebaut is the largest B2B chocolate maker, producing 20% of global industrial chocolate for major clients.
• High cocoa prices since early 2023 have led to decreased consumption and hedging losses, but the market is expected to stabilize by 2026.
• CEO Peter Feld is implementing cost cuts of CHF 250 million, and if cocoa prices normalize, the company’s valuation could potentially double.

This article is sourced from an online content aggregator through publicly available sources and is displayed below for general informational purposes only. This article was originally published 3 months ago on Value Investors Club.