Equity Bottom-Up

• Jio Financial Services (JIOFIN IN) has launched a robust digital ecosystem with its flagship JioFinance app, enhancing its tech-driven financial service offerings.
• The digital-first strategy minimizes legacy constraints, enabling personalized financial solutions that significantly boost efficiency and competitive advantage.
• This evolution redefines traditional banking, positioning JFSL as a versatile, technology-led powerhouse for sustainable growth in India’s financial sector.

• Li Auto’s (LI) share surged 13% on photos released on its official Weibo of a BEV SUV slated for release in April, two months ahead of our expectation. 
• Based on information released, we dialed up LI’s BEV forecast from 73K to 106K for 2025, contributing 20% of revenue instead of 15%. 
• We raise LI’s TP from US$22 to US$25 but keep at SELL.

• CEO is clearly saying that demand is growing faster than expected and has visibility into 2025-26 revenues (we have a fairly good line of sight of investment in data centers)
• Models are getting better and using up to 100x more computing power (ie chain of thought and reinforcement learning). The AI market is today Consumer, tomorrow Agentic, later on Physical.  
• The stock is not expensive at 30x FY26 EPS and 24x FY27 EPS. Get over it.

• Raffles Medical Group (RFMD SP) reported mixed 2024 result. However, 2H24 revenue increased 15% YoY, operating profit rose 5% YoY, and adjusted PATMI jumped 38% YoY.
• China operation is recovering, with revenue growing 10% YoY to S$65M in 2024. Three general hospitals in China have demonstrated strong potential for growth and have a positive outlook ahead.
• Raffles has revised its dividend policy to pay out at least 50%. The company intends to buy back up to 100M ordinary shares over the next two years.

• This will be another quick idea flag and different from the typical cheapish-catalyst type situations I have often written about.
• This is a superb business that I’ve been monitoring for awhile that just saw some nasty correction.
• I’ve been tweeting incessantly about this business, and shares finally collapsed yesterday despite a relatively good earnings report.

• Dassault Systèmes CEO highlights European automaker struggles and growth readiness in US and Asia in January 2025.
• SK Hynix achieves impressive 70% yield in HBM4 testing, signaling advancements in memory technology.
• China’s tungsten export controls cause market price fluctuations, disrupting global supply chains. Foxconn partners with Sonora in Mexico for innovative smart city project.

• Lynas, a six and a half billion dollar mining company, faced challenges in their half yearly results with higher unit costs and a significant decrease in cash position.
• The company’s cash reserves have diminished by over $200 million, raising concerns about the sustainability of their operations in the current rare earths price environment.
• Expansion projects in Mount Weld and Kalgoorlie are ongoing, with potential impacts on future financial performance and the need for additional financing options.

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• Dassault Systèmes has agreed to acquire Contentserv, a provider of AI-driven product information management platforms, for EUR220m, enhancing Centric’s PLM offerings for consumer goods industries.   
• Centric aims to reach EUR500m in revenue by 2028, with goals of becoming a EUR1bn brand. Contentserv is expected to boost Centric’s revenue by 25%, contributing to its growth plans.  
• We deem the integration of Contentserv into Centric will occur gradually. Additionally, Centric will benefit from 3D Universes, an AI-based environment designed to leverage legacy 3D designs and PLM data.

• Mesoblast Ltd (MSB AU) has announced pricing for Ryoncil in the U.S. in tandem with the economic value of treatment with product availability planned for the current quarter.
• Wholesale acquisition cost of Ryoncil has been set at $194K per infusion. Ryoncil infusion is given twice per week for 4 weeks. This brings the full treatment cost to $1.55M.
• The pricing is strategically determined against the cost of treating a child who dies of SR-aGvHD of $2.5M and calculated total benefits of patient outcomes using Ryoncil of $3.2–4.1M.

• Cognex is a leader in machine vision, providing ruggedized cameras and software for automation in manufacturing and logistics environments
• Cognex’s products fall into four categories: Guide, Gauge, Inspect, and ID
• ID includes Dataman products for reading barcodes and optical character recognition

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• iPhone 16e starting at $599, positioned as entry level but not bare bones
• Apple targeting customers who hold onto phones for a long time with best battery life in any iPhone
• Modem C1 upgrade seen as key contributor to improved battery life, but was not highlighted in launch, raising questions about performance quality

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• Lite On Signals for Continued Strength in Cloud/AIOT Ahead of Upcoming Nvidia Results
• Lite On’s 1Q25E Outlook Was Positive and Did Not Indicate A Near-Term Slowdown
• Industry Take-Aways — Still No Signs of Acceleration on PC/Consumer… However Signals Cloud/AIoT Demand Healthy

• Trump administration wants TSMC to partner with Intel to strengthen US ties, potentially impacting global server market.
• WNC to unveil new 5G and AI connectivity solutions at MWC 2025 Barcelona, boosting industry innovation and technology.
• Vivo aims for 30% sales growth in Taiwan by 2025 with V50 launch, while Tata plans to sign 10 MoUs in semiconductor sector.

• Nvidia has been the unrivaled darling of the AI boom, establishing itself as a portfolio must-have, and is now the second-most valuable company in the world. 
• Wafer-Thin AI chips are the company’s biggest earnings driver, but Nvidia is growing in other high-margin segments too, including software, gaming, and automotive.
• Here’s what makes this company important, what to expect next from the tech giant, and – most interestingly – what Nvidia’s stock is really worth.

• We compile our selection of small-cap companies based on our desired characteristics: insider buying, value, near term growth triggers and margin of safety.
• Out top picks are Sarla Performance Fibers Ltd (SRPL IN) , Quess Corp Ltd (QUESS IN) , and GNA Axles Ltd (GNA IN)
• Given the steep correction in small and mid-cap Indian stocks, all the mentioned companies have seen active insider buying in recent weeks.

• The headline Indian mid cap indices are still expensive, despite a sharp decline since late September. However, when adjusted for growth, many fundamentally attractive mid-caps are cheap.
• We screen mid-caps with PEG<1.3x, consensus Buy recommendations and increasing consensus EPS estimates over the past six months. We choose well-covered stocks so that the consensus estimates are meaningful.
• Our basket of 20 contains six financial stocks, five materials, four industrials and three consumer discretionaries. Many pertain to the themes of renewable energy, data centers, healthcare, tourism and infrastructure.

• A high hurdle for OP in Q1 – Q1 FY9/25 results showed normalisation of OP growth as the one-off impact from a large order for AD (autonomous driving) / ADAS (advanced driver assistance systems came off compared to Q1 FY9/24.
• As a result, Toyo Corporation reported an operating loss, normalising to more ordinary performance for Q1 when OP tends to be weak due to seasonality.
• Notwithstanding the seasonal loss, the Q1 FY9/25 results were in line with the company’s initial plan. 

• Saudi Aramco’s Q4 revenue is expected to fall 2.6% QoQ but rise by 10.6% YoY, while its EPS is anticipated to drop 7.5% QoQ and 11.9% YoY.
• With OPEC likely extending supply cuts past April 2025, Saudi Aramco has little room to raise output, leaving growth largely dependent on oil prices.
• Aramco acquired a 25% stake in Unioil Petroleum Philippines, expanding its retail presence, and partnered with Linde and Schlumberger to develop a major CCS hub.

• Digital Realty is a global data center player across all major markets.  The DC demand will be back by secular trends including AI, Cloud and enterprise digitalization
• DLR’s focus on pricing, development pipeline and balance sheet enables it to achieve long-term sustainable growth, delivering a mid single digit FFO growth
• We also think DLR has maintained a strong balance sheet.  DLR is still in the process of de-leveraging with healthy credit metrics

• Posco International Corporation (047050 KS) and SeAH Steel Holdings (003030 KS) are two key beneficiaries of the Trump administration’s efforts to significantly increase the Alaskan gas fields.
• The initial estimated cost of this massive project is about $44 billion for the pipeline and related infrastructure.
• Despite recent rallies, the valuations of POSCO International and Seah Steel Holdings remain attractive. 

• Total revenue grew by 24% in 4Q24, higher than 19% we expected.
• The stock price plunged in Hong Kong as we expect in our preview note.
• However, we believe, any stock decline over 11% means overreacted.

• Net Revenue growth accelerated to +23% Y/Y in Q424, far stronger than in Q224 and Q324
• But costs and expenses grew even faster, leading to surprisingly sharp margin contraction
• We no longer view Trip.com as an attractive play on Chinese travel; airlines may outperform

• Trump Adminstration Gearing Up to Further Restrict China’s Access to Chip Technology — Could Restrict Servicing of Existing Equipment
• Foxconn and Honda: Could This Be a New Alliance in EV Manufacturing?
• TSMC (2330.TT; TSM.US): Will TSMC Work on Intel Foundry Services? There Are Three Paradoxes… 

• Huge deal with Mitsui purchasing a 40% stake in Roads Ridge for billions of dollars
• Decades-long negotiation process with owners of the asset culminating in the sale
• Roads Ridge is a massive iron ore deposit with potential for long-term production, standing out for its high quality iron content and low phosphorus levels in comparison to other mines in the region

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• Greaves Cotton (GRV IN) is raising funds by separately listing its mobility arm, enabling better focus and execution for the segment.
• Company is guiding for 30,000Cr topline by 2030  with 13-15% margins excluding mobility segment.
• The company’s core business remains profitable and on a growth path. New funds will improve the mobility arm’s operations and support current business growth would be from ongoing capex investments.

• Deposit growth has been decent and exceeded loan growth, allowing HDFCB to bring down its credit-deposit ratio. Average deposits grew 15%+ YoY, while loans grew at 7%+ YoY in Q3FY25.
• Despite tough macro environment, HDFCB was able to gain market share in deposits. Despite headwinds from tight liquidity leading to competitive pricing, HDFCB was able to maintain its NIM.
• HDFCB is benefitting from its productivity and technology-led enhancements with costs growing at just 7% YoY. Despite weak macro-economic environment, HDFCB’s asset quality has remained pristine, barring seasonality in Agri-loans.

• Global capital flowing into Australian logistics market as it reaches turning point, attracting investments.
• Japan REIT makes deals in Tokyo, buying Tokyo Tower for $120M and selling office block for $62M.
• CapitaLand India Trust acquires Bengaluru offices for $170M after project funding, expanding its portfolio.

• Tocvan reported the first RC drill result from the 100% controlled Expansion Area just to the north of the Main Zone.
• A total of 776.2m of drilling was reported across 4 drill holes.
• The highlight intercept was a scout hole reporting 3.1 g/t Au over 19.8m, including 19.4 g/t Au over 3.1m.

• Twilio Inc. presented a compelling performance in the fourth quarter of 2024, showcasing its evolution and strategic progress.
• The company reported $1.195 billion in revenue, marking an 11% increase year-over-year, achieving consecutive quarters of double-digit growth.
• This quarter was particularly notable as it was Twilio’s first to achieve GAAP operating profitability, ahead of its initial target, underscoring the firm’s focus on balanced growth and profitability.

• Sony Group Corporation’s recent earnings highlighted its financial performance for the third quarter of fiscal year 2025 and provided insights into future strategic direction amid a transitional leadership period.
• The company’s revenue and profit saw substantial growth, yet certain challenges remain, reflecting the complexities within its diverse business segments.
• Positive aspects of Sony’s financial performance include a 7% year-on-year increase in consolidated sales, excluding its Financial Services segment, reaching JPY 3,695.7 billion for the quarter.

• Alibaba reported C4Q24 top line in-line with our estimate and consensus, but non-GAAP NI beat our estimate/consensus by 12%/11%, attributable to cost control and AntFin’s profitability improvement;
• But what drives the stock was the strong performance in AliCloud and an articulation of a clear investment logic on Generative AI (GAI), 
• While the AI inflection point has arrived earlier than we expected, we remain eying for the domestic e-commerce turnaround with Jiang Fan at the helms. 

• TSMC: +17.2% Premium; Wait for Lower Levels Before Going Long
• UMC: -1.9% Discount; Can Consider Going Long the Spread at Current Level
• ASE: -0.6% Discount; Discount is Opportunity to Long the Spread

• Trip Com, Contemporary Amperex Technology and Xiaomi all hit fresh highs in EM fund ownership.
• Rotation in all three was among the most positive across all China stocks, with all measures of fund ownership moving higher.
• Conviction opens from GIB, Putnam and Aubrey we among the funds driving ownership higher.

• Manappuram Finance is a leading Indian NBFC specializing in gold loans, offering financial services to lower socio-economic backgrounds with 5,286 branches across India.
• The RBI had barred the microfinance arm Aashirwad Micro Finance from sanctioning and disbursing loans due to non-compliance.  Company is planning for  IPO and intended to raise INR 1500 Crore.
• Manappuram is committed to growing its secured lending portfolio, including gold loans and other secured assets and anticipates overall growth of 15%-18% in the consolidated loan book.

• Refocusing on the core business with the promoter stepping back on the board & demerger. Also focusing on value-added products and reducing debt from rights issues & internal accruals.
• Solara Active Pharma Sciences (SOLARA IN) had issues in getting US FDA approvals for the Visakhapatnam facility & pricing pressure on the key product Ibuprofen.
• The CRAMS and high-potent API segments have the potential to generate significant value over the next 4-5 years through the addition of new customers.

• Luckin reported C4Q24 revenue 6%/1% higher than our estimate/consensus, and non-GAAP operating profit 11%/38% higher than our estimate/consensus, driven by SSSG recovery and cost material savings;
• After turning around same-store-sales-growth (SSSG) via price hike in C3Q24, Luckin finetuned the cup sales to price ratio to reach an optimal point in C4Q24, 
• We upgrade Luckin from UR into BUY rating and set new TP at US$40.  

• Duck projects and operations, specializing in large-scale builds
• Jeff Quartermain leads Perseus Mining, discussing Predictive stake and valuation
• Emphasis on creating value and diversification in mining investments

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• Crocs, Inc. recently reported its financial performance for the fourth quarter and full year of 2024.
• The company experienced steady growth, achieving $4.1 billion in total revenues for the year, a 4% increase over the previous year.
• Its adjusted gross margin improved by 230 basis points to 58.8%, while the adjusted operating margin was recorded at 25.6%.

• Keppel is an asset manager and operator with business in infrastructure, real estate and connectivity
• The company is undergoing transformation from an asset-heavy conglomerate to an asset light manager with strong recurring income
• We also like the strong capital management and its focus on total shareholder returns, valuation is not demanding

• Global EV sales in 2024 were strong, with forecasts for 2025 looking promising as well, showcasing the growth of the electric vehicle market.
• Asus and Gigabyte secure large AI server orders from Nvidia, highlighting efforts to boost US manufacturing and strengthen partnerships in the tech industry.
• iPhone 16e price hints at a move away from the budget market, indicating a potential shift in Apple’s pricing strategy for future phone releases.

• The Berkshire Hathaway Annual Shareholder Letter for 2024 was released this weekend. Much was made in Japanese twitter-space of the comments he made on the Japanese trading houses. 
• He said Berkshire Hathaway’s admiration of these companies “has consistently grown” and Berkshire likes their capital deployment, managements, and their attitude in respect to investors. They also pay themselves reasonably.
• He mentioned Berkshire will increase their stakes somewhat in the trading houses “over time.” That comment deserves some exploration, as does the comment about yen funding.

• Grab Holdings (GRAB US) booked a strong finish to the year, beating its upwardly revised guidance, despite some decline in margins due to increased investment, partly due to competitive pressures.
• The company continues to expand its total addressable market through its Saver initiatives, whilst successfully increasing monetization through its high-value products, and improving retention and engagement through Grab Unlimited.
• Financial services and advertising are becoming increasingly important drivers for growth and profitability. Expect some seasonal slowdown in 1Q2025 but the outlook remains positive and valuations are attractive. 

• Haw Par Corp (HPAR SP)  announced a special dividend of S$1.00 per share for 2024, alongside its regular S$0.40 dividend.
• Investors have long pushed for higher payouts and special dividends, given the company’s strong cash reserves and free cash flow.
• Based on our analysis of its financials, Haw Par could sustainably raise its regular dividend to S$1.00 per share without tapping into reserves.

• Late January timing of LNY holiday boosted last month’s travel and tourism statistics
• Chinese airlines are filling outbound flights, which should lift pricing & margins (eventually)
• Numbers suggest Chinese consumers eager to travel, but spending remains muted

• Airbnb’s latest earnings report sent its stock surging 12.6% as investors reacted to stronger-than expected financial performance and ambitious growth plans.
• Despite missing out on much of the recent travel boom, the company is now positioning itself as the “Amazon of travel” by expanding beyond its traditional short-term rental business.
• CEO Brian Chesky emphasized this strategic pivot, revealing plans to invest up to $250 million in new businesses set to launch in May.

• In 4Q24, Bilibili’s total revenue increased by 22% YoY and its largest business, value-added services, increased by 24% YoY.
• SAIC president, Mr. Jia, removed 63 mid-level managers in the passenger car department.
• Mengniu raised a profit warning that net profit will plunge by 95% – 99% in 2024.

• In the first quarter of fiscal year 2025, Applied Materials demonstrated strong performance, achieving record revenue levels that surpassed previous highs.
• The company announced that advanced semiconductors are a significant driver of this growth, supported by trends in technology such as artificial intelligence (AI), which are reshaping the global economy.
• AI, identified as a major transformative technology, has supported approximately a 20% year-over-year growth in global semiconductor sales in 2024, with projections suggesting this market could exceed $1 trillion in annual revenue by 2030.

• Hyatt faced a mixed financial landscape in its recent earnings report, revealing both strategic advancements and some challenges.
• On the positive side, Hyatt announced a significant acquisition of Playa Hotels & Resorts for approximately $2.6 billion.
• This move is expected to enhance Hyatt’s position in the luxury all-inclusive sector, particularly in Mexico and the Caribbean, by incorporating Playa’s assets into Hyatt’s distribution channels such as ALG Vacations and Unlimited Vacation Club.

• China announced game approval for the February batch. The number of games approved remained at a higher level than 2023.
• The pace of China game approval appears to have accelerated to the same level as pre-tightening.
• Of the companies that we are monitoring, Netease, Zengame got one approval each.

• In April 2024, we published a few notes on Japan REITs on the back of interest rate cut cycle and weaker Asian currencies
• Today, the macro environment has shifted, Japan has started a rate hike cycle. 
• Japan Hotel REITs will suffer due to negative impact on tourism and higher cap rate assumptions

• It is a paradox US President wanted to make the US the number one semiconductor manufacturing country but is very likely unable to change the existing environment in the US.
• Another paradox is that a foreign company must obtain approval from the relevant US authorities before transferring control of the specific US company, which may not be feasible.
• It raises the third paradox that a Taiwanese company would need to operate an existing US entity with their company’s expertise under different cost conditions.  

• FY Mar-25 guidance has been raised again after strong 3Q results. Growth should continue next fiscal year with rising demand from TSMC. 
• Sales to Chinese customers bounced back strongly last quarter, defying predictions. Capacity adds and process upgrades should continue to drive demand from China.
• FPD, PCB and printing equipment are now profitable and should remain so. More efficient production and slower growth in depreciation should also support the operating margin.

• Bilibili (BILI) reported C4Q24 revenue and GAAP operating profit in line, 87% vs. our estimates and in line, 130% vs. consensus. 
• We see BILI’s content strategy to be working to drive higher and better traffic, benefiting the ads business. 
• We BUY and raised our TP to US$24 awaiting further details on game pipeline. The stock trading at 2025 PE of 31x.

• In 2025, the NHSA will continue to deepen the VBP of drugs and centralized procurement of medical consumables, covering 700 drug varieties in total. 
• Valuation of the entire industry has been sluggish for three years. With the positive changes, we think it is the time to be optimistic on China healthcare in 2025.
• Due to the craze for DeepSeek/AI, PAGD’s stock price surged.Although this is a great story, the extent to which DeepSeek can bring substantial benefits to PAGD remains to be verified.

• We think Keppel DC REIT is an interesting play to look at for the AI revolution.  The markets are supported by strong fundamentals
• With a strong balance sheet and low leverage, the Company has ample headroom to do more M&As to drive DPU growth
• The stock has corrected post Deepseek incident.  We think valuation is attractive and presents an interesting opportunity.

• Aster DM Healthcare Ltd (ASTERDM IN) reported stellar performance in Q3FY25. Revenue achieved 11% YoY growth to INR10.5B, driven by increased patient volumes and growth in ARPOB. 
• Consistent growth across core businesses, combined with strategic cost optimization, operational efficiencies, and optimized service mix, have significantly strengthened margins, with Q3FY25 operating EBITDA margins standing at 19.3% (Q3FY24: 17.7%).
• Our original investment thesis is intact. Margin levers are working well. Expansion plan is on track. Macro trend is favorable. Merger with Quality Care can be a game changer.

• Pegasystems, a leader in software solutions for customer engagement and operational efficiency, demonstrated a robust performance in its fiscal year 2024.
• The company reached its strategic milestone of becoming a “Rule of 40” company, reflecting balanced growth and profitability.
• This achievement highlights the successful execution of its transition strategy from a traditional sales model to a subscription-based cloud business.

• Albemarle Corporation presented its financial performance for the fourth quarter and full year of 2024, highlighting several critical aspects of the company’s operations, financial health, and market dynamics.
• The fourth quarter saw Albemarle reporting net sales of $1.2 billion, although this marked a decline primarily attributed to lower lithium market pricing.
• Nevertheless, the company achieved a positive milestone with an adjusted EBITDA of $251 million, showing enhancements in productivity, cost efficiency, and sales volumes across its business segments.

• AppLovin’s financial performance for the fourth quarter of 2024 indicates a pivotal shift in its operational focus and growth strategy.
• Over the quarter, total revenue increased by 44% year-over-year to $1.37 billion, fueled significantly by an expanded advertising business that brought in $999 million in revenue.
• The company’s adjusted EBITDA surged by 78% to $848 million, maintaining a healthy margin of 62%.

• Wyndham Hotels & Resorts had a solid fourth quarter and full-year 2024 performance, marked by robust room growth, increased earnings, and strategic initiatives aimed at enhancing long-term positioning.
• However, some areas presented challenges that could affect future performance.
• Positively, the company reported a 4% net room growth for the year, which included opening a record 69,000 rooms.

• After an 18-month saga, the Burman family has taken control of REL, acquiring 25.16% equity and planning a INR 2,000 crore capital infusion.
• This takeover ends promoter-less governance, injecting fresh strategic capital to transform Religare into a competitive NBFC and drive long-term recovery.
• Investors should now view Religare as a turnaround story, with robust governance reforms, lower debt, and renewed focus on core financial services promising sustainable growth.

• BIDU reported C4Q24 top line, non-GAAP op. profit and GAAP net income in-line, (22%) and (7.0%) vs. our est. and (3.7%), (24%) and in line vs. cons. 
• While monetization on a largely in-house app repertoire can ensure AI revenue to start kicking in in C2H25, we are concerned on the size of this revenue, 
• We maintain our SELL but raise TP to US$80 to reflect a short-term trading opportunity around AI monetization.

• Royalty Pharma has reported robust financial results for the fourth quarter and full year 2024, underscoring its position as a leading funder of innovation within the life sciences sector.
• With a significant emphasis on strategic capital deployment, Royalty Pharma achieved portfolio receipts of $2.8 billion, marking a commendable 13% growth and surpassing initial guidance expectations of 5% to 9%.
• This financial performance reflects the company’s adept management and its capacity to expand its portfolio effectively.

• Confluent, Inc. exhibited several key strengths and challenges in its recent financial performance.
• The company’s subscription revenue for the fiscal year grew by 24% to $250.6 million, driven by a 38% increase in Confluent Cloud revenue and a 10% growth in Confluent Platform revenue.
• This reflects continued strong demand for enterprise-grade data streaming solutions, particularly in regulated industries.

• SK Hynix CEO remains bullish on semiconductor industry growth, highlighting new opportunities amidst challenges like DeepSeek.
• Oppo forges ahead with release of Find N5 foldable phone, undeterred by market slowdown in pursuit of growth and innovation.
• EU greenlights funds for Infineon’s Dresden fab in chip incentive effort, signaling continued support for semiconductor sector. Samsung exec receives sentence for leaking 18nm DRAM tech to CXMT, highlighting importance of protecting intellectual property.

• World may finally have found the key to real growth after years of trying to build a fashion retail business in shopping centres, but with limited success.
• The big problem was that it didn’t have the supply chain skills to compete with the big retailers like Uniqlo and Adastria.
• Buying the supplier that helped grow those same chains means World now has a real chance to enter the big leagues.

• Tyler Technologies’ fourth-quarter results reflect a period of strong financial performance, characterized by significant growth and expansion across its key operational pillars.
• The company experienced 12.5% revenue increase, largely spurred by a 21.9% jump in subscription revenues, particularly within their SaaS offerings which saw close to 23% growth.
• This rise in subscription income underscores a strategic pivot towards cloud-based solutions, which remained a focal point in Tyler’s strategy, evident by accelerated SaaS adoption and a reduction in on-premise license revenues.

• Allied Blenders & Distillers (9844250Z IN) ‘s Q3 FY25 results showed robust growth in revenue at Rs. 2,346 crores (up 15.5% sequentially, 12.9% YoY) and strong premiumisation with expanded export reach.
• Enhanced margins driven by effective cost optimization and profitable state brand mix highlight ABDL’s resilience and ability to capture premium market trends, strengthening its competitive position in India’s spirits industry.
• The company aims to grow the aggregate market share of its four millionaire brands and consolidate its position in the P&A whisky segment through its three millionaire brands

• BlackLine, a cloud-based platform for finance and accounting professionals, reported its Q4 2024 earnings with mixed performance metrics.
• The company achieved 9% revenue growth despite the adverse impact of a strong U.S. dollar, which added currency headwinds.
• Non-GAAP operating margin was recorded at 18%, and the revenue renewal rate showed improvement, positioning at 96%—a significant metric in customer retention and satisfaction.

• Fidelity National Information Services, Inc. (FIS) presented its financial results for the fourth quarter and full year 2024, outlining a strategic focus on driving commercial excellence, targeting growth vectors, and enhancing profitability.
• The company reported overall revenue growth for 2024 and noted that its growth trajectory is set to accelerate in 2025.
• In 2024, FIS reported a revenue growth rate between 3% to 4%, slightly below the company’s initial expectations due to one-time items affecting the quarter.

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

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

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

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

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

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

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

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

• Adani Energy Solutions (ADANIT IN) Q3 FY25 shows 15% revenue growth to Rs. 6,000 crores, an 80% PAT increase, and aggressive capex investments, driven by robust transmission and smart metering initiatives.
• Strong financial performance, combined with increased capex and operational efficiency in transmission and smart metering, signals enhanced market positioning and long-term growth potential in a supportive energy sector.
• AESL significantly increases its capex ramp-up by around 3 times driven by unparallel project and operating excellence coupled with robust capital management program. 

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

• Discussion on recent acquisitions and earnings highlights in the resource sector
• Focus on BHP’s South Australian copper business and potential growth opportunities
• Analysis of return on capital employed for different assets within BHP’s portfolio

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• Carving out IFS & taking it private is the most likely outcome for Intel. However, it’s complicated by the SCIP deals and restrictions attached to the CHIPS money.  
• Intel Products Group most likely stays with Intel, maintaining the iconic brand and doubling down on efficiency and innovation. I don’t think it gets sold. 
• TSMC is unlikely to have any technical role in a spun out Intel Foundry due to a myriad of reasons including monopoly, conflict of interest, insufficient bandwidth etc.

• Tam Jai’s performance in recent years has been consistently below expectations. Its fundamentals have undergone negative changes after IPO. Consumers’ preference change may disrupt Tam Jai’s business model.
• Based on our forecast and the Cancellation Price of HK$1.58/share, P/E will be higher than the industry average. Considering the low trading liquidity and concerns on outlook, HK$1.58/share is acceptable.
• The fundamentals/prospects of Tam Jai are different from the situation of Henlius’ privatization.We recommend investors not reject the privatization easily because internationalization won’t bring significant positive changes in short term.

• On 19 February, it was reported that Rainbow Robotics’ VP Kim In-Hyeok sold 30,000 of his 55,000 shares (0.28% stake) on the 14th. Disposal price was 413,796 won per share.
• At end of 2024, Samsung Electronics announced that it will become the largest shareholder of Rainbow Robotics which has been the key reason why Rainbow Robotics’ share price has surged.
• Despite Samsung Electronics becoming the largest shareholder of Rainbow Robotics, the overly stretched valuations could result in higher downside risk ahead. It is trading at P/S of 106x in 2026.

• China Education Group (839 HK)‘s plunge in share price is due to management’s guidance for a 10-15% drop in adjusted net profit, significantly lower than the current consensus.
• Its decision to pause dividends for the foreseeable future on debt repayment burden and tight offshore refinancing environment for the sector has further disappointed the market.
• Based on guidance, its PER of 3.7x and nil dividend yield for FY25 make it unattractive relative to peers (1.7-2.9x PER). We shy away until things improve.

• We compile our selection of small and mid-cap names with our desired characteristics of high dividend yields, value, and margin of safety.
• Our top picks are Perfect Medical Health (1830 HK), The Keepers Holdings (KEEPR PM), Taste Gourmet (8371 HK), Uchi Technologies (UCHI MK), and Ginebra San Miguel (GSMI PM).
• We provide updates on Taste Gourmet (8371 HK) / Perfect Medical Health (1830 HK) ,the Philippine Stock Exchange (PSE PM), and Sai Gon Cargo Service (SCS VN) .

• Deep Industries (DEEPI IN) Q3 & 9M FY25 revenue surged 47% and EBITDA grew 53%, driven by robust order book (Rs. 2,701 crore) and major contracts like the ONGC PEC order.
• Robust growth underscores Deep Industries strategic positioning in the energy sector, with record profitability and order book expansion paving the way for long-term value creation amid favorable government initiatives.
• Company is anticipating a growth of more than 30% year-on-year for the next 3 years with target revenue of 800Cr in FY26 and margin of 45-47%.

• Incyte Corporation’s recent financial and corporate update for the fourth quarter and full year 2024 showcases a year of significant growth and strategic progress.
• The company achieved a 15% increase in total revenues, reaching $4.2 billion for the year, driven by a robust 8% growth in Jakafi sales and a 50% surge in Opzelura revenues.
• The financial health of Incyte remains strong, with $2.2 billion in cash reserves and no debt, allowing the company to complete a $2 billion share repurchase program.

• Negara’s attractive valuations, its low PEG ratio and efficiency ratio should drive the share re-rating; pre- and post-provision were flat QoQ, but profitability ratios edged higher over the medium term
• We like Mandiri for its attractive PE multiples and its robust credit quality, despite the 4Q24 returns blip; Mandiri has the second-best efficiency ratio and with further scope for gains
• Rakyat’s high structural cost of risk remains a drag on its post-provision returns, with eroded further in 4Q24; although declining, returns are high but Rakyat valuations are not yet compelling

• Kauntam Papers (KAUN IN)‘s Q3 & 9M FY25 results show revenue and EBITDA declines, yet steady sales volumes, cost optimization initiatives, and ongoing mill expansion efforts.
• Strategic cost management and mill expansion position the company to mitigate revenue challenges, ensuring long-term competitiveness in a dynamic paper industry.
• Industry is also asking for anti-dumping duty on some set of paper, especially copier, to make a level playing field with imported products.

• TSMC & Broadcom Exploring Intel Acquisitions; Potential Major Consolidation in the Foundry Space
• Taiwan AI Server Leader Expanding to Texas with New Production Hub
• Semi WFE Revenues Increase ~7% YoY In 2024. 2025 Looks Much The Same. So, Where’s The AI Effect? 

• The resumption of short selling in Korea will start again on 31 March. There has been a ban on short selling in Korea since November 2023.
• We provide some short selling candidates in Korea. Their sharply increasing share prices in the past five years have resulted in much more burdensome valuations.
• Despite their burdensome valuations and sharply higher share prices, the remains high risk of some of these stocks that could overshoot to the upside.

• We expect BIDU to post C4Q24 top line,non-GAAP operating profit and GAAP net income (5.1%), (7.7%) and (8.7%) vs. consensus.We expect BIDU to issue C1Q25 top line guidance (1.2%) vs.consensus;
• BIDU’s problem is not only manifested in the loss of the Apple contract,it is also the loss of first mover advantage in both Generative Artificial Intelligence and Autonomous Driving Services. 
• Losing traffic advantage, BIDU has become a self-containing app ecosystem but all pillars of this ecosystem is facing intensifying competition. SELL @US$78.

• Tam Jai International (2217 HK)‘s privatisation price is lower than we expected, based on 1.37x 12-month forward P/B, against our expectation of 1.63x (the historical average).
• The PER of 21.1x for CY25, a premiuim to sector average of 13.7x, however, looks attractive enough for investors that entered in the last 12 months. 
• The 52.6% discount to IPO price (HK$3.33) and huge net cash have made some early investors unhappy. There is already letter from a minority shareholder calling to vote against it.

• Singapore’s Premier Marina Operator. SUTL Enterprise is a leading Singapore-based marina developer, operator, and consultant, specializing in integrated luxury marina projects under its proprietary ONE°15 brand.
• The company operates its flagship ONE°15 Marina Sentosa Cove and extends its expertise to third-party marinas through long-term management contracts and consultancy services. With a strong brand position and established industry leadership, SUTL is expanding across Asia-Pacific, capitalizing on growing demand for luxury yachting and premium marina infrastructure.
• Diverse and Resilient Revenue Streams. SUTL generates revenue through recurring membership fees, marina management contracts, and sales of goods and services.

• Midea is a sound equity investment which is a market leader in the electronics products with just 12.8 trailing PE. 
• China newly launched consumer trade-in policy could become the new driver of Midea’s revenue stream. 
• Overseas business expansion could become the new game changer to re-rate the company’s valuation in the longer term.

• Kiri Industries (KIRI IN) ’s Q3/9M FY25 results show revenue growth, operational enhancements, and a legal victory in the DyStar case, alongside a strategic shift in joint venture accounting.
• The legal win and growth in high-margin segments signal improved profitability and future revenue potential, bolstered by a robust copper project on track for 2028.
• The new copper unit: Company investing close to 8000Cr in the new copper business, In first phase co will invest near to 1100Crs.

• New Toyo International, established in 1975, is a leading producer of specialty packaging materials in the Asia Pacific Region. Its operations span across Singapore, Malaysia, Vietnam, Dubai, Indonesia and China. 
• The Group has two core business divisions. Its Specialty Papers division focuses on the production of laminated foil paper, and coated paper and metalized paper, while the Printed Carton and Labels division offers mainly gravure and lithography or offset printing of packaging materials for cigarettes and fast-moving products. In addition, the Group has a trading business that focuses on tobacco packaging-related materials, as well as a corrugated cartons production operation.
• For specialty paper, which is one-third of its revenues, but more than two-thirds of its profitability the company has maintained margins through active cost management and inventory control despite the recent decline in the revenues due to destocking.

• Cytokinetics Inc. reported its third quarter 2024 results, highlighting significant developments across its pipeline and commercial readiness efforts.
• A notable achievement was the completion of the rolling submission and the new drug application to the FDA for aficamten, a cardiac myosin inhibitor targeting obstructive hypertrophic cardiomyopathy (HCM).
• This represents a key milestone in Cytokinetics’ efforts to bring potentially transformative therapies to market.

• Papa John’s International recently announced their third-quarter 2024 financial results, delineating a mixedperformance.
• The company’s primary focus is set on improving execution, profitability, and sustainable shareholder value.
• Todd Penegor, the recently appointed President and CEO, along with a restructuring inthe leadership team, emphasizes a strategic drive toward refining product propositions, marketing strategies, and technology infrastructure.