Equity Bottom-Up

• Context: This Insight follows up on previously highlighted relative value opportunities, using a statistical methodology based on mean-reversion to identify opportunities in paired securities.
• Highlights: Currently twelve pair trade opportunities across four markets and five sectors persist.
• Why read: Statistical analysis offers a unique perspective on relative value. Gain insights into actionable statistical pair trade opportunities and monitor performance of previously highlighted pairs.

• Profitable Arbitrage: Generates positive FCF by monetizing logistics spreads (Valmo) and ad-tech, effectively acting as a profitable toll booth for unorganized retail rather than a traditional commission-based marketplace.
• The Moat: Monopolizes “India 2” (<INR 300 AOV) via low-cost logistics infrastructure, creating a defensive barrier against Amazon and Flipkart’s higher-cost premium models.
• Downside Risk: Supply-side flywheel is fragile; high return rates driving seller churn could pose significant threats to long-term sustainability.

• TSMC: +27.1% Premium; Increased to More Historically Extreme Level; Deeper in Short Range
• UMC: +2.3% Premium; Good Level to Open a Short of The Spread
• ASE: +2.3% Premium; Wait Better Long Opportunity Near Parity or Below

• Multiple industry checks now indicate that Apple is preparing to source its entry-level M-series processors from Intel’s 18A node with EMIB-T packaging as early as 2027.
• The revenue impact will be modest, but the signalling value is enormous: Apple does not hand out advanced-node access unless the foundry roadmap is de-risked.
• This development aligns directly with the structural shifts we’ve been highlighting; Intel’s packaging-first wedge, foundry credibility, and TSMC’s overcapacity creating space for second-sourcing.

• Choice Hotels International’s recent earnings call provides an intricate overview of the company’s financial performance and strategic initiatives during the third quarter of 2025.
• The company reported a 7% increase in adjusted EBITDA, reaching $190 million, primarily driven by an enhanced brand mix and increased business from small and medium enterprises and group bookings.
• However, the positive financial performance was countered by a flat global RevPAR compared to the prior year, with a notable dip of 3.2% in the U.S. market owing to softer government and international inbound demand.

• Meituan (MT)’s revenue growth rate plummeted to 2% YoY in 3Q25.
• The discount campaign has not actually ended after the authorities warned twice.
• We expect that MT’s price has a downside of 30% in the next twelve months.

• Taste Gourmet (8371 HK) reported H1 FY26 results of Revenues/Pat 11.8% YoY/17.8%YoY. Profits were in line with our expectations as the company reined in costs and showed slight margin improvements. 
• Cash continues to pile on the balance sheet, with 242 mn HKD of net cash representing >30% of market capitalization. The company paid an 8-cent semi-annual dividend.
• The stock trades at a 6.8x PE for FY26e, has an 8.6% dividend yield, and plans to grow at a CAGR of at least 15%.

• Pure-Play, Low-Cost Producer with Ambitious Growth: Sigma Lithium is a new, low-cost producer of high-purity, environmentally friendly lithium concentrate from its single asset, the Grota do Cirilo project in Brazil. The company is aggressively expanding, with plans to more than triple production capacity by the end of 2026, positioning it as a significant player in the EV battery supply chain.
• Leveraged to a Volatile but Recovering Lithium Market: The company’s profitability is highly sensitive to lithium prices, which have been volatile after collapsing from 2022 highs. While the market has been oversupplied, projections suggest a tightening supply-demand balance from 2025 onwards, driven by robust EV and energy storage growth, which could provide significant tailwinds.
• High-Risk, High-Reward Equity Profile: As a single-asset company in an emerging market with a short operational history, Sigma carries significant execution and geopolitical risks. However, its industry-leading cost structure, strong ESG credentials, and aggressive, funded expansion plan offer substantial upside potential for investors with a high-risk tolerance.

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• Wrkr Ltd (ASX:WRK) offers compliance solutions for Australian superannuation contributions and payroll including member onboarding, super payments, messaging and employee validation.
• WRK has delivered a record cash receipts quarter ($4.0m), +74% on the previous corresponding period (pcp) and +30% on Q4 FY25, aided by milestone payments and some overdue receipts from Q4 FY25 ($0.4m).
• Total costs increased 24% on Q4 FY25 as WRK prepares for client onboarding and continues product development.

• Kyivstar Group (KYIV US) launched Starlink Direct to Cell on November 24, making Ukraine the first European country with commercial satellite connectivity to mobile phones.
• Satellite connectivity provides Kyivstar a differentiated capability that should be positive for customer churn management given the ‘insurance value’ of having satellite backup connectivity for Ukrainians.
• Kyivstar’s Starlink partnership is a net positive for the shares. We reiterate our Structural Long rating and US$19.8 target price. KYIV shares are trading at just 5.1x 2025E EV/EBITDA.

• Semiconductor segment drives structural margin expansion, now contributing over 100% of core profit with record Q3 performance.
• Legacy Chemicals and Graphite remain weak, but consolidated EBITDA outlook for FY2026–27 strengthens on improving mix.
• Forward valuation supports ¥8,000 target; Resonac trades at a discount to global semiconductor-materials peers despite rising semis exposure.

• Revenues for 9 months up 7% while profits are up 7.5%
• Margins improved across both divisions, Healthcare and Consumer. Working capital marginally increased.
• 4th quarter is the best quarter for the company due to the festive season.

• Revenue increased by 2.7% YoY to JPY3.1bn, with EC business up 6.8% and Financial business down 2.6%.
• Operating profit decreased 7.3% YoY to JPY575mn, with a 2.4pp rise in GPM and 4.3pp increase in SG&A ratio.
• Financial business segment profit rose 7.2% YoY to JPY402mn, with external payments handled growing 11.2% YoY.

• Onex is a leading alternative asset manager with a long-term track record of value creation, primarily through its private equity and credit platforms. The firm is currently navigating a challenging macroeconomic environment by focusing on strategic acquisitions and a shift towards a more capital-light model.
• A recent strategic partnership with AIG, including a significant capital commitment to Onex’s funds and AIG taking an equity stake, is expected to be transformational, enhancing the asset management platform’s profitability and accelerating growth in fee-generating assets under management (AUM).
• Despite near-term headwinds in fundraising and volatile financial performance tied to the exit environment, the company’s disciplined capital allocation, including consistent share buybacks at a discount to intrinsic value, and a growing, scalable credit business, position it for potential long-term shareholder value creation.

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• Open Text Corporation has reported its financial results for the first quarter of fiscal 2026, demonstrating resilience and growth amidst a strategic shift.
• The company’s total revenues reached $1.3 billion, a year-overyear increase of 1.5%, surpassing expectations due to strong demand in its Cloud and License segments.
• Specifically, the Cloud segment, which generated $485 million in revenue, experienced a 6% growth year-overyear, primarily driven by the Content product category.

• Parsons Corporation reported its third-quarter 2025 financial results, emphasizing robust performance in a challenging global environment.
• The company showcased strategic positioning and strong alignment with global priorities in national security and infrastructure.
• This quarter, the company demonstrated significant achievements in organic revenue growth, expansion in adjusted EBITDA margins, exceeded cash flow expectations, and secured pivotal contracts.

• Jazz Pharmaceuticals reported a strong performance in the third quarter of 2025, achieving a record revenue surpassing $1.1 billion.
• The growth was largely driven by solid sales from Xywav, Epidiolex, and the successful early launch of Modeyso.
• These developments underscore the company’s ability to deliver highly differentiated therapies addressing serious unmet medical needs, which is an indication of strategic execution and robust operational capabilities.

• Leading Market Position with Diversifying Business: China Boqi is a leading independent flue gas treatment provider in China, primarily serving the coal-fired power sector. The company is strategically diversifying into adjacent environmental sectors, including water treatment, hazardous and solid waste treatment, and dual-carbon energy-saving businesses, to capture broader market opportunities driven by China’s stringent environmental policies.
• Attractive Valuation and Strong Dividend Yield: The company trades at a significant discount to the broader market, with a P/E ratio of approximately 3.75x and a P/B ratio of 0.28x. This is complemented by a consistent and growing dividend, yielding approximately 4.8%, making it an attractive proposition for value and income-oriented investors.
• Regulatory Tailwinds vs. Transitional Risks: China’s national commitment to environmental protection and carbon neutrality provides a strong, long-term tailwind for the industry. However, the company faces risks associated with its legacy dependence on the coal power industry, intense market competition, and the execution of its diversification strategy into new, competitive fields.

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• The third quarter of 2025 earnings report for Louisiana-Pacific Corporation (LP) presents a mixed picture, reflecting both strategic advancements and ongoing challenges.
• On the positive side, LP’s Siding business showed resilience in a soft market, with a 5% increase in sales revenue driven primarily by pricing and a favorable mix.
• Notably, the ExpertFinish prefinished siding product, with a 17% increase in sales volume, has contributed significantly, buoyed by the successful launch of a new line of nature-inspired colors.

• Exceptional Profitability Growth Amidst Revenue Contraction: The company has demonstrated a remarkable ability to grow net income and EPS, with a 3-year CAGR exceeding 51%, despite a concurrent decline in revenues. This suggests a successful strategic shift towards higher-margin products, significant operational efficiencies, or divestiture of underperforming assets.
• Strategic Positioning for the New Energy Vehicle (NEV) Transition: Beijing WKW is actively investing in and expanding its product lines to include components for electric vehicles (EVs). This forward-looking strategy positions the company to capitalize on the rapid growth of the NEV market in China, which is the largest and fastest-growing in the world.
• Attractive Shareholder Returns and Valuation: The company exhibits strong value and dividend characteristics, underscored by high Smartkarma scores in these categories. A consistent dividend yield, which stood at 1.86% in the most recent fiscal year, combined with a reasonable valuation, presents an attractive proposition for value-oriented investors.

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• After taking short positions against Palantir & NVIDIA, Michael Burry has closed his hedge fund and taken to substack to continue his assault on the AI bubble
• While he makes some valid points, these are mainly things everybody already knows and in the end he’s missing the forest for the trees
• There are key structural issues surrounding the AI Infrastructure build out (grid, foundry, memory capacity to mention a few). These will drive course corrections, all by themselves.

• We compile our selection of companies across Japan, China and India based on bottom-up triggers in each company.
• Top-Picks in China are Haier Smart Home (6690 HK) , Midea Group (300 HK) and Yadea Group Holdings (1585 HK).
• Our top picks in Japan are Suzuki Motor (7269 JP) and ROHM Co Ltd (6963 JP) and in India-Auto it is Mahindra & Mahindra (MM IN) &Ashok Leyland (AL IN)

• Daicel is notable for being Japan’s only manufacturer of acetic acid and for holding world-leading market positions in some cellulose-acetate products and in acetate tow for cigarette filters.
• At current prices, the dividend yield of the company is at a healthy 4.6%. Its dividend yield averaged 4.4% from FY2021 to FY2025.
• The company has enjoyed a solid sales growth of 10.5% CAGR from FY2021 to FY2025. Operating income nearly doubled from FY2021 to FY2025.

• Unity Technologies reported strong results for the third quarter of 2025, surpassing both its own guidance and market expectations.
• The company demonstrated robust growth in its key segments, particularly in Grow, driven by the high performance of its Vector AI, and its Create segment also saw significant year-over-year growth.
• Positively, Unity’s Grow segment, which includes its Vector AI, experienced an 11% quarter-over-quarter increase.

• China announced game approval for the November batch. The number of games approved remained at a higher level than 2023.
• The pace of China game approval appears to have accelerated to above the pre-tightening level.
• Of the companies that we are monitoring, while market leader Tencent and Netease didn’t obtained approval, Kingsoft and Bilibili obtained approval for one game each.

• Our GEM bank top picks for 1H 2026 are Banrisul, Bradesco and Ping An Bank for very attractive fundamental valuations with healthy dividends and earnings growth potential
• We also have buy recommendations on China Construction Bank (CCB) and Hana Financial, both of which are deep value plays relative to their returns, combined with sound balance sheets
• Kotak Mahindra bank is our only sell recommendation for its premium valuation, even among Indian banks, relative to its underwhelming ROE prospects

• Symbotic Corporation recently reported its third-quarter financial results for fiscal year 2025.
• The company demonstrated a robust performance with a 26% year-over-year increase in revenue, reaching $592 million.
• This growth was attributed largely to the expansion and continued deployment of its 46 existing systems, alongside progress in Advanced Systems and Robotics (ASR) development.

• Reclaims Global Limited (“Reclaims”) is an integrated construction services provider specialising in excavation, construction and demolition (“C&D”) waste recycling, and logistics/equipment leasing.
• Since 2009, the Group has built an established operating track record supported by a sizeable in- house fleet and an end-to-end model covering demolition, deep excavation, material recovery, and transport.
• FY2025 marked a strong recovery, revenue almost doubled to S$44.4 million, with net profit almost tripling to S$5.6 million on higher excavation volumes and improved fleet utilisation.

• Bio-Techne delivered its first-quarter fiscal year 2026 results amidst a challenging market environment.
• Despite the company’s strategic and disciplined efforts, organic revenue declined by 1%, primarily due to timing issues in their Cell Therapy business from large customers and the ongoing softness in biotech funding.
• These timing issues were particularly impacted by FDA Fast Track Designations received by key customers that, while accelerating therapy approval timelines, reduced the near-term demand for reagents.

• InxMed is a clinical-stage biotechnology company with a strategic focus on overcoming cancer drug resistance and metastasis, primarily targeting the Chinese market.
• The company’s lead asset, Ifebemtinib (a FAK inhibitor), is being developed as a cornerstone of combination therapies across a range of solid tumors, a strategy that could unlock significant value where monotherapies have previously failed.
• While the pipeline holds promise, InxMed faces substantial risks typical of a clinical-stage biotech, including the inherent uncertainty of clinical trial outcomes, a competitive landscape for its targeted pathways (FAK and FAP), and the financial risks associated with drug development.

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• Nvidia’s warranty liabilities have ballooned from $1.29B in Q4 FY25 to $2.7B in Q3 FY26, with actual warranty spending surging 14× YoY.
• The jump comes as Blackwell-generation racks grow hotter, denser and more complex (up to 2 million individual parts), driving higher expected incident rates.
• Rising warranty reserves paired with rising finished-goods inventory suggest the same underlying tension that systems are getting harder to operate and harder to absorb downstream.

• Mphasis Ltd (MPHL IN) is a global information technology (IT) services and consulting company that specializes in providing cloud and cognitive services to help enterprises undergo digital transformation. 
• It is majority-owned by the Blackstone Group, one of the world’s largest private equity firms.
• Key forensic takeaways include hints of aggressive revenue booking via unbilled receivables, risk of goodwill impairment, etc.

• In this insight, we discuss about various aspects of Chow Tai Fook Jewellery (1929 HK) ‘s H1 FY2026 financial performance. It discusses about divergent performance by region and product.
• Details in this note include why dark clouds are looming over the stock price of this counter and why the valuation multiple could decline.
• Finally, we conclude discuss on valuation and how this will impact the stock price.

• Allfunds Group is a leading B2B WealthTech platform with a resilient business model, characterized by high recurring revenues and a strong network effect. Its extensive network of fund houses and distributors creates a significant competitive advantage.
• The company is well-positioned to capitalize on secular growth trends in the wealth management industry, including the increasing demand for open architecture solutions and the ongoing digitalization of wealth management services.
• Despite a challenging macroeconomic environment, Allfunds has demonstrated robust financial performance with consistent revenue growth and strong profitability. However, potential risks include margin pressure from competition and sensitivity to market fluctuations impacting assets under administration.

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• India’s Nifty50 index reached an all-time high yesterday. However, many Indian stocks are near their 52-week lows. Many among them have strong forecast earnings growth, good balance sheets, attractive valuations.
• We screen 17 stocks with double digit forecast EPS growth, PEG < 1.4x, net debt to equity less than 50%. They are spread across construction, chemicals, healthcare, industrials and technology.
• The largest five are Deepak Nitrite (DN IN), Cohance Lifesciences, BASF India Ltd (BASF IN), Crompton Greaves Consumer Electricals (CROMPTON IN), Clean Science and Technology (CLEAN IN).

• The Bank has reached its three-year target one year ahead of schedule
• Focus has now turned to growth and new opportunities as unleashed from full  government supervision
• Valuations do not yet discount an improvement in returns from here

• Context: The Toyota Motor (7203 JP) vs. Suzuki Motor (7269 JP) price-ratio has deviated more than two standard deviations from its one-year average, presenting a potential relative value opportunity.
• Highlights: Going long Toyota and short Suzuki targets a 7% return.
• Why Read: Essential for quantitative traders seeking mean-reversion opportunities, with detailed execution framework, risk management protocols, and historical simulation showing the statistical basis for this relative value play.

• Cordelia Cruises, India’s only domestic cruise operator, is going public through an IPO of Rs. 7.27 billion. It plans to triple its fleet by 2028, expanding its passenger capacity significantly.
• The Indian cruise market remains under-penetrated with a CAGR forecast of 35-40% from FY2025-2030, creating a prime opportunity for growth, especially for domestic players like Cordelia.
• The IPO is a crucial step for Cordelia to expand its fleet, cater to increasing demand, and capitalize on the underpenetrated Indian cruise market.

• Vobile Group is a global leader in SaaS solutions for digital content asset protection and monetization, poised for growth driven by the proliferation of online video and the increasing need for intellectual property protection.
• The company is strategically focused on leveraging Artificial Intelligence (AI) to enhance its service offerings and is expanding its footprint in the rapidly growing Chinese market, which now accounts for a significant portion of its revenue.
• Recent financial performance indicates strong top-line growth and improving profitability, with a notable surge in net profit and expanding gross margins, though the company currently does not pay a dividend.

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• Daido Steel (5471 JP) produced FY25 (March year-end) 1H OP [IFRS basis] of ¥18,464mil (+1.1% YoY) on sales of ¥284,499mil (+0.4% YoY).
• Both sales and OP surpassed guidance which called for OP of ¥12,500mil (-31.5% YoY) on sales of ¥275,000mil (-3.0% YoY), thanks primarily to stronger than expected demand for ship engine valves in the open die forging business and despite having incurred about ¥2,300mil of costs related to the Superalloy Manufacturing Process Transformation Project, one of the firm’s ongoing strategic investments in the current MTP.
• The Mid-Term Plan [MTP], which ends in FY26, was revised down to reflect (1) a larger than expected decline in steel product sales volumes, (2) sluggish auto production and weaker than expected industrial machinery-related orders and (3) increasing lack of clarity in the business environment.

• Until the latest accounting scandal, Nidec was just another stupidly over-valued company that chased too many rainbows and missed too many targets.
• Now, finally, it has fallen to interesting valuations and there is a real incentive to fix the things that need fixing. 
• Nidec is a governance nightmare with poor oversight, a history of bad strategic decisions, and shoddy execution. If these are fixed, though, the upside is enormous.

• Q2 results confirmed a clear earnings inflection, driven by strong enterprise SSD demand, improving ASPs, and recovering smartphone NAND volumes.
• Q3 guidance signals record revenue and further margin expansion supported by tight NAND supply and AI-linked storage demand.
• Despite near-term pressure from Bain’s selldown, long-term fundamentals remain intact; valuation discounts justify a ¥12,500 target and accumulate-on-weakness stance.

• Solid Q3 and 9M FY25 Financial Delivery: Despite challenging market conditions in China, Haier Smart Home (6690 HK) delivered solid third-quarter results reinforcing company’s strategic positioning and operational execution.
• Operational Efficiency and Mix Upgrade: The company continued to benefit from digitalised manufacturing, supply-chain optimisation, and higher contribution from high-end segments, supporting EBITDA and net profit resilience despite macro softness
• Strategic Focus Driving Sustainable Growth:Emphasis on Smart Home ecosystem expansion, global penetration, and disciplined capital allocation reinforce its competitive positioning and sets the foundation for sustained earnings momentum into FY26.

• Amazon.com reported robust financial results for the third quarter of 2025, highlighting both progress and challenges across its business segments.
• Total revenue reached $180.2 billion, marking a year-over-year increase of 12% when adjusting for foreign exchange impacts.
• Operating income was reported at $17.4 billion, however, this was impacted by two significant expenses: a $2.5 billion FTC settlement and $1.8 billion in estimated severance costs.

• BHP has abandoned a last minute bid for Anglo American, which will likely see the latter’s planned merger with Teck with proceed 
• We consider other potential targets for BHP, all copper, concluding that most seem unlikely for now, especially with the company stating a focus on organic growth
• BHP faces the risks of a decline in iron ore (consensus) and copper (non-consensus) prices in our view, while it trades at premium to the sector and above our DCF 

• Biogen Inc. has made headlines with its latest strategic maneuver: a $50 million research partnership with Dayra Therapeutics, a biotech innovator specializing in macrocyclic peptides.
• This move signals Biogen’s intensified push into the immunology space, a significant pivot from its traditional focus on neuroscience.
• The deal gives Biogen early access to a platform designed to develop oral treatments for autoimmune and inflammatory conditions—categories currently dominated by injectable therapies.

• Factory visit to GUS Technology reveals Taiwan’s strategic position as a non-China battery supplier for defense and critical infrastructure applications.
• Proprietary pouch cell technology with patents in Taiwan and Japan addresses weight-sensitive applications including drones, underwater vehicles, and data center UPS systems.
• Dual product strategy (safety-focused Mettle Series and energy-dense Hyper Series) targets both commercial reliability and mission-critical performance markets.

• AI PCs turning the PC refresh into a gradual, extended up-cycle
• Memory inflation is one of the major margin risks for PC makers in 2026
• Dell’s server business indicates AI factory build-outs becoming a multi-year investment cycle. Remain long Dell, Asustek, Acer.

• Dynatrace recently reported its fiscal second quarter of 2026 results, showcasing a robust performance that exceeded its guidance across various metrics.
• The company reported a 16% growth in Annual Recurring Revenue (ARR), a 17% growth in subscription revenue, and a pretax free cash flow representing 32% of revenue on a trailing 12-month basis.
• Such strong results underline the company’s successful strategy execution, driven by growing demand in end-to-end observability and multi-cloud tool consolidation.

• OHBA (hereafter, the Company) is a general construction consulting firm boasting a leading market share in the field of urban planning.
• In the construction consulting industry, there were 56 companies with annual sales of JPY 5 bn or more and 106 companies with JPY 2 bn or more in the 12 months from January to December 2024.
• The Company ranks 24th, positioning it as a mid-tier player. Over its century-long history, however, the Company has specialized in urban development fields such as city planning, and in this domain, it holds the top domestic market share, ahead of the runner-up, Nippon Koei Urban Space, by just under JPY 1 bn in annual sales.

• In F2Q26, pro forma revenue increased by 18% YoY excluding two disposals.
• It was successful that the company rebranded its food delivery business.
• However, the rebranding brought significant sales and marketing expenses in F2Q26.

• Nvidia’s multi-year cloud service commitments jumped from $12.6B to $26B in one quarter, but only $1B is due in cash before late FY26, raising questions about the immediacy of demand.
• Nvidia is backstopping customer infrastructure via an $860M facility lease guarantee, with only $470M escrowed; effectively transferring counterparty credit risk onto Nvidia’s balance sheet.
• Structurally, this resembles circular financing, where customers take on debt (facilitated by Nvidia) to secure future compute capacity, enabling Nvidia to book future revenue while cash conversion lags.

• CICC (3908 HK)‘s announced merger with Dongxing Securities (601198 CH) and Cinda Securities (601059 CH) will elevate it to the 3rd largest HK-listed Chinese securities company.
• Based on our assumptions, its EPS will be diluted by 7.1%, BPS enhanced by 12.2%, and ROE lowered by 1pp for FY26, before accounting for synergy.
• Its presence in Fujian (+616.7%), Liaoning (+500%), and Beijing (+100%) will be significantly enlarged. Additionally, it will open up potential benefits from optimisation.

• Nvidia is transitioning from a GPU vendor to a full-stack systems supplier for AI infrastructure, with the Data Centre segment driven more by integrated rack-scale deployments than standalone accelerators.
• Management positions Nvidia as the reference architecture for a “$3–4 trillion annual AI infrastructure build”, but finished goods inventories are up 90%+ amid “sold-out cloud capacity.”
• The rapid shift toward rack-scale systems introduces new ecosystem tensions, as Nvidia’s move into full system design increasingly overlaps with the domain of OEM partners.

• Kioxia is a leading global supplier of NAND flash memory, experiencing a strong financial recovery driven by surging demand from AI, data centers, and smart devices.
• The company’s strategic focus is on technological leadership in 3D NAND and advanced SSDs, supported by a significant joint venture with Western Digital that enhances R&D and production scale.
• While the outlook is positive, key risks include the inherent cyclicality of the memory industry, intense competition from established players, and execution risks associated with ambitious margin and technology targets.

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• Dominion Energy is accelerating into one of the most consequential growth phases in its history, with data centerdriven load growth, multibillion dollar transmission expansions, and the 2.6 gigawatt Coastal Virginia Offshore Wind (CVOW) project advancing toward first power in early 2026.
• Now, reports indicate that Dominion is exploring a potential acquisition of Northern Virginia Electric Cooperative (NOVEC), a move that would deepen its footprint in the world’s busiest data center corridor—Loudoun County’s “Data Center Alley.” The timing is notable: Dominion disclosed that contracted and in process data center demand has surged to roughly 47 gigawatts, up 17% since year end 2024, while the company simultaneously works through major regulatory, financing, and construction milestones across its portfolio.
• Dominion and NOVEC already share deeply interconnected transmission infrastructure, and NOVEC’s customer mix—where data centers account for roughly two thirds of electricity sales—aligns with Dominion’s strategy to serve rapidly rising AI related load.

• Vertically integrated Inner Mongolia smelter with second-quartile cost positioning, expanding renewables and alumina self-sufficiency, and entering overseas low-carbon production via its Saudi project.
• FY24 margins inflected sharply; mid-cycle valuation implies material upside with strong sensitivity to aluminium pricing and structural demand drivers including AI datacentres, EVs, and grid expansion.
• Base-Case Target Price HK$18.6 (24% upside); bull-case HK$22.1; bear-case HK$16.9, supported by integrated operations and medium-term EBITDA expansion potential.

• United Arrows is beginning to flex its market power by launching more new brands rather than just iterations of its eponymous name
• A key focus is a move to exploit the massive demand for Korean brands in Japan with Korean licenses for Nice Weather and Osoi.
• More licenses are expected in the near future as the select shop retailer looks to take more share of the premium market.

• Bajaj Housing Finance (BHF IN) is a priced to perfection narrative.
• The current valuation (37.3x P/E, 4.2x P/B) prices the stock for absolute perfection in an environment that is distinctly imperfect and rapidly deteriorating.
• A critical red flag highlighted in the Q2 transcript is the elevated annualized attrition rate.

• Mars Group Holdings exhibits a compelling value and dividend profile, underpinned by a robust history of financial growth and a strong net cash position, making it attractive for income-oriented investors.
• The company’s primary exposure to the Japanese pachinko industry presents a significant headwind, as the market is in a long-term structural decline due to demographic shifts, regulatory pressures, and competition from other entertainment forms.
• A recent downturn in quarterly performance (FY1Q26) following years of strong growth introduces uncertainty, making near-term earnings and regulatory developments critical catalysts to monitor.

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• While focus on dividend yield is common, we think secular growth in DPS over a long period of time is a stronger marker of robust earnings trajectory and shareholder friendliness. 
• Among stocks in Asian EM and DM, we screen 50 that raised their DPS every year over the past decade – a commendable performance given earnings dislocations during this period.
• Stocks from Japan (24), HK (10), onshore China (6), India (6), Singapore (2) and Taiwan (2) make up our list. 10 are large and liquid with strong forecast EPS growth.

• GlobalData is a data analytics and consulting company with a strong, subscription-based recurring revenue model, which accounts for approximately 75-80% of its total revenue.
• The company has demonstrated a solid long-term growth track record through both organic development and strategic acquisitions, though recent performance shows signs of slowing revenue growth and margin pressure.
• Positioned in the growing business intelligence and analytics market, the company’s ‘One Platform’ model offers a scalable and integrated solution, but it faces significant competition from larger, established players.

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• In this insight, we discuss a pair trade involving a basket of Korean consumer stocks (long) and  a basket of Japanese consumer stocks (short) over the next 3-6 months.
• The 10 Korean names (long basket) include Samyang Food, APR, Amorepacific Corp, Korean Air, CJ Corp, Classys, Nongshim, Shinsegae, Hotel Shilla, and Lotte Tour Development. 
• The 10 Japanese names (short basket) include Fast Retailing, Oriental Land, Kao Corp, Seibu Holdings, ANA Holdings, Shiseido, J.Front Retailing, Kose Corp, Pola Orbis Holdings, and Kyoritsu Maintenance. 

• TSMC: +25.8% Premium; Rebounded to High End of Range, Good Level to Open a Short of the ADR Spread
• UMC: -2.2% Discount; Good Level to Open a Short of the ADR Spread
• ASE: +3.2% Premium; Wait for More Extreme Level Before Going Long or Short

• Institutions were net sellers of Singapore stocks from Nov 14 to Nov 20, with a net outflow of S$131 million.
• United Overseas Bank led share buybacks, acquiring 997,700 shares at an average price of S$34.01, totaling S$58.2 million.
• Wing Tai Holdings’ Cheng Wai Keung increased his interest to 62.24%, while Banyan Tree Holdings’ Goodview Properties raised its stake to 6.06%.

• Global Payments Inc. delivered a strong performance in the third quarter of 2025, showcasing robust operational results and strategic initiatives that position the company for future growth.
• The company reported 6% constant currency adjusted net revenue growth, excluding dispositions, alongside 110 basis points of margin expansion and 11% constant currency adjusted EPS growth compared to the prior year.
• This performance was bolstered by strong execution across various business units, notably Merchant Solutions and Issuer Solutions.

• In Q1 2026, BDX will merge its Biosciences & Diagnostic Solutions segment to Waters (WAT). BDX will receive $4BN in cash and 0.14 WAT shares per BDX share, leaving its shareholders with roughly 39 percent of the combined company.

• The remaining business, referred to as New BD, will be a focused med-tech company with ~$18BN in revenue across Medical Essentials, Connected Care, BioPharma Systems, and Interventional. More than 90 percent of revenue will be recurring, and management expects high single-digit earnings growth.

• New BD’s valuation looks appealing. Based on where BDX and WAT currently trade, New BD implies a P/E of roughly 11x earnings. I believe the business deserves at least a 13x multiple, which would equate to about 12% upside. That said, I’m not ready to buy yet.

• Paymentus is a high-growth, cloud-based bill payment technology provider, capitalizing on the secular shift from paper to electronic transactions. Its strong revenue growth is driven by onboarding new clients and increasing transaction volumes.
• The company’s proprietary Instant Payment Network (IPN) and omni-channel platform create a network effect, enhancing its competitive moat. Strategic partnerships with major financial institutions and technology companies are expanding its market reach.
• While the company exhibits strong top-line momentum and improving profitability, it faces risks from customer concentration, potential margin pressure from large enterprise clients, and intense competition in the fragmented electronic payments market.

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• ADT’s third-quarter 2025 financial performance indicates a steady trajectory with both positive and negative elements impacting its outlook.
• The company’s financial highlights reveal a 4% increase in total revenue to $1.3 billion and a 3% growth in adjusted EBITDA to $676 million.
• Additionally, the adjusted earnings per diluted share rose by 15% year-over-year to $0.23, reflecting robust cash flow generation amounting to $709 million year-to-date.

• Khazanchi Jewellers posts a strong Q2FY26 with 46% revenue growth, 119% PAT surge, and a major 10,000 sq. ft. Chennai flagship store set to launch in Jan 2026.
• High-Margin retail and diamond segments are accelerating, supported by a stable B2B engine with 90% repeat orders, positioning the company for structural margin expansion and stronger long-term earnings visibility.
• Khazanchi enters a high-growth phase, with premiumisation, retail expansion, and strong execution driving sustainable profitability and transforming it from a wholesale-led player into a high-margin retail-focused jewellery brand.

• TSMC (Taiwan Semiconductor Manufacturing) – ADR (TSM US)’s retired Senior Vice President Dr. Wei-Jen Lo has taken a position at Intel.
• Trump has been in power for less than a year, and the U.S.’s measures have fully revealed its purpose of confrontation between China and the United States. 
• TSMC’s Arizona fab profit dropped from NT$4.32 billion in 2Q25 to NT$410 million in 3Q25.

• We think Wharf REIC, which owns luxury malls in Hong Kong, is undergoing a structural de-rating, on the back of macro headwinds, currency impact and company fundamentals
• Southbound consumption into Hong Kong has weakened deeply, catalyzed by a punitive USD-pegged Hong Kong Dollar (HKD) and a collapsing Japanese Yen (JPY)
• In latest interim results, Wharf REIC reported HK$5.1 billion revaluation deficit and a HK$2.4 billion net loss, representing negative rental reversions crystallizing into lower asset values.

• Transition to AI-Driven Subscriptions Fueling Growth: Meitu is successfully transitioning its business model from advertising to a high-margin, AI-driven subscription service for its photo, video, and design products. This strategic shift is the primary driver behind significant revenue and profit growth, with paying subscribers reaching 15.4 million.
• Strategic Divestment from Cryptocurrency: The company has fully divested its cryptocurrency holdings, realizing a substantial net gain of nearly US$80 million. This move de-risks the balance sheet from the volatility of digital assets and allows management to refocus capital and attention on its core AI imaging business.
• Expanding Global Footprint and Enterprise Solutions: Meitu is aggressively expanding its international user base, which now accounts for 35% of total Monthly Active Users (MAUs). Concurrently, it is leveraging its core AI technology to launch productivity-focused tools for e-commerce and advertising, opening new avenues for enterprise revenue.

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• 3SBio Inc (1530 HK) proposed to spin-off and separately list the shares of Mandi, a subsidiary of the company.
• In 2024 and 1H25, Mandi contributed 16% and 17% of total consolidated sales respectively, while its EBITDA contribution was 14.4% (in 2024) and 11.5% (in 1H25).
• As far as 3SBio (ex-Mandi) is concerned, marketing approvals for key pipeline product like SSGJ-608, along with indication expansion, geographical expansion of few drugs will be key in near term.

• Iron ore prices have remained rock-solid at 104 USD/ton, but the fundamentals are on slightly shaky ground as Rio Tinto (RIO US) commenced shipments from its Simandou project. 
• Chinese steel production and apparent demand in October tracked an extremely weak 12%/12.5% YoY, with annualized production rates now 864 million tons, and lending (TSF) was lacklustre at -42% YoY.
• We like Fenix Resources (FEX AU) despite the negative sentiment, due to its production growth profile from 4 million to 10 million tons over the next 3 years. 

• Context: This Insight follows up on previously highlighted relative value opportunities, using a statistical methodology based on mean-reversion to identify opportunities in paired securities.
• Highlights: Currently twelve pair trade opportunities across three markets and five sectors persist.
• Why read: Statistical analysis offers a unique perspective on relative value. Gain insights into actionable statistical pair trade opportunities and monitor performance of previously highlighted pairs.

• PDD’s total revenue increased by 9% YoY in 3Q25 higher than 7% YoY in 2Q25.
• In 3Q25, operating cash flows stopped decreasing after a year and grew by 66% YoY.
• We believe PDD’s stock price can be double for the next twelve month according to other e-commerce companies’ EV/EBITDA.

• Despite an overwhelming response and a 26-30% surge in the grey market, at 8.3x FY26 PER,  Chuangxin Industries (2788 HK)‘s IPO price does not generate much excitement for us. 
• Heavy reliance on connected transactions with the controlling shareholder, pressure on margins in the future, and a highly leveraged balance sheet are concerns. 
• We do not think it justifies trading at a premium to peers, hence, limited upside from now. The small free float, however, will increase the share price volatility.

• We compile our selection of small- and mid-cap names with the desired characteristics of high dividend yields, value, and a margin of safety.
• We compile updates on Oriental Watch (398 HK), The Keepers Holdings (KEEPR PM), and Ginebra San Miguel (GSMI PM), and others into the results.
• Our top picks are Asian Terminals (ATI PM), The Keepers Holdings (KEEPR PM), Taste Gourmet (8371 HK), Philippine Stock Exchange (PSE PM), and Ginebra San Miguel (GSMI PM).

• Copper inventory on the COMEX surpassed 400,000 tons on Friday, marking an increase of 330% from the beginning of the year, amidst speculation of a levy of tariffs.
• The Department of Commerce has issued a proclamation imposing a 15% tariff in 2027, with the rate increasing to 30% by 2028, implying a LME-Comex Spread of >3000 USD/ton.
• In addition to the sucking up of copper inventory into the US, we have supply shortages (see: Grasberg To Weigh On Copper Supply In The Medium-Term, March To 12k USD/Ton )

• In this insight, we provide the top 10 stock picks and key catalysts in the Korean stock market for the next two weeks (21 November to 5 December 2025).
• Our top 10 picks in the past two weeks (7 to 21 November) were up on average 1.4% this period, outperforming KOSPI which was down 2.5% in the same period.
• Our top 10 picks in the next two weeks include LG CNS, Hana Financial, Orion Corp, KT&G, Naver, KEPCO E&C, Hanmi Pharm, Amorepacific Corp, LG Chem (Pref), and SK Inc. 

• Our measure of container shipping price momentum remained weak in October
• Poor Q3 results and downbeat Q4/FY guidance from Maersk, Zim; and Suez re-opening?
• Conditions are poor and will likely remain that way for a while; AVOID the sector

• KULR Technology Group is transitioning from a service-oriented business to a product-driven company focused on thermal management and battery safety solutions, with a significant strategic pivot towards a Bitcoin-centric treasury model.
• The company has established strong relationships with high-profile clients like NASA and the Department of Defense, leveraging its proprietary carbon fiber thermal management technology for mission-critical applications.
• While revenue is growing, the company remains unprofitable with significant cash burn, and its recent foray into Bitcoin introduces a new layer of volatility and risk to its financial profile.

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• Advanced Micro Devices (AMD) reported a robust third quarter in 2025, showcasing significant revenue growth across its business segments driven by strong product demand.
• For the quarter, AMD’s revenue increased by 36% year-over-year, reaching $9.2 billion.
• This growth was broad-based, with strong performance in the data center, server, gaming, and PC segments.

• Adobe Systems Incorporated has reported strong financial results for the third quarter of fiscal year 2025, showcasing continued double-digit growth in both revenue and profitability, driven largely by its strategic emphasis on artificial intelligence (AI).
• The company saw record revenue of $5.99 billion, marking a 10% increase year-over-year, while GAAP earnings per share reached $4.18 and non-GAAP earnings per share was $5.31, reflecting an impressive 14% growth.
• The incorporation of AI into Adobe’s product suite has been a significant focus, as exemplified by the deployment of AI innovations across its flagship Creative Cloud applications like Photoshop, Illustrator, and Premiere Pro.

• Astera Labs delivered strong third-quarter results for fiscal year 2025, surpassing their expectations with a notable increase in revenue and profitability metrics.
• The company’s quarterly revenue reached $230.6 million, marking a 20% increase from the previous quarter and a remarkable 104% growth compared to the same period last year.
• This significant growth was driven by broad-based performance across its product lines, including signal conditioning, smart cable modules, and switch fabrics.

• DRAM has jumped 172 % YoY and is still climbing; another 30–50 % hike is baked into Q4, wiping out the 4–6 % operating margins most PC OEMs live on.
• Intel’s soldered-down LPDDR5X, once hated for killing the lucrative RAM-up-sell, now locks the memory cost inside the processor.
• With memory inflation off their books via a safe margin play, OEMs can hold notebook ASPs and guidance

• Context: The Axis Bank (AXSB IN) vs. ICICI Bank (ICICIBC IN) price ratio has deviated more than two standard deviations from its one-year average, presenting a potential relative value opportunity.
• Highlights: Going long ICICI Bank (ICICIBC IN) and short Axis Bank (AXSB IN) targets a 5% return.
• Why Read: Essential for quantitative traders seeking mean-reversion opportunities, with detailed execution framework, risk management protocols, and historical simulation showing the statistical basis for this relative value play.

• Live Nation Entertainment recently discussed its performance and strategy during its investor meeting, highlighting both opportunities and challenges facing the company.
• Live Nation, a dominant player in the live entertainment industry, has projected continuous growth in its key markets, leveraging global expansion and consumer trends.
• One of the significant highlights is the company’s outlook on the industry.

• Palo Alto Networks recently discussed their fourth quarter financial results, detailing both positive achievements and certain challenges.
• The company reported a significant growth trajectory, crossing the $10 billion revenue mark, a first for a dedicated cybersecurity company.
• This milestone reflects the successful execution of a long-term strategy focused on preemptive cybersecurity advancements tailored to match the evolving market landscape.

• Leidos Holdings, Inc., a prominent player in the defense, aviation, information technology, and biomedical research fields, has reported a solid financial performance for the third quarter of 2025.
• The company continues to display resilience in navigating a dynamic and uncertain macroeconomic landscape, bolstered by its strategic initiatives and governmental partnerships.
• Leidos reported a 7% year-over-year increase in revenue to $4.47 billion, illustrating strong top-line growth despite challenges such as the government shutdown and previous headwinds from efficiency reviews.

• Right On Co. Ltd. is a jeans and casual wear retailer facing a prolonged period of declining revenues and significant financial losses, driven by intense competition and shifting consumer preferences in the Japanese apparel market.
• Despite a challenging top-line trend, the company has shown some recent, albeit inconsistent, improvement in net income, suggesting that cost control measures may be taking effect. However, operating and free cash flows remain deeply negative, raising concerns about long-term sustainability.
• The company’s strategy is centered on its core competency in denim, leveraging both national and private brands, and optimizing its nationwide network of stores, which are primarily located in shopping centers. A pivot towards enhancing e-commerce and adapting product assortments to local tastes is critical for a potential turnaround.

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