Equity Bottom-Up

• Auto ICs over 50% of revenue and maintaining market share leading position, but 2Q25 guidance reflects China auto industry caution as China stimulus repeat impact fades and inventory stays lean.
• Himax advances in co-packaged optics (CPO) shipping samples; to supply TSMC and NVIDIA; Separately, Himax’s AR display tech may align with META’s needs.
• Strong auto positioning with 200+ Tcon design wins and CPO opportunity in AI/HPC supply chain reinforce long-term upside, despite soft near-term visibility. Maintain our Structural Long view on Himax.

• In this insight, we provide the top 10 stocks picks and key catalysts in the Korean stock market for the two weeks (9 to 23 May 2025).
• Our top 10 picks in the past two weeks were up on average 5.0% (from 25 April to 9 May), outperforming KOSPI which was up 1.2% in the same period.
• Our top 10 picks in this bi-weekly include HD Hyundai, Hyundai Elevator, KT Corp, Shinsegae, Coway, Hanwha Aerospace, F&F Co, SM Entertainment, and SK Inc. 

• 1H25 strong revenue growth continues as capacity increase, “production shifting back domestically”, but weakening ASP and clearly demand pull-in in 1H due to US tariffs and China domestic consumer subsidies.
• “2H not clear, especially after late 3Q”. Management mentions the usual macro / US tariffs unknowns. 2025 Capex similar to 2024 (US$7.7bn, 80% revenue), D&A increasing, ASP down, margins muted.
• The stock is as expensive as always. 49x 2025 EPS, 41x 2026. Consensus is not expecting a negative tariffs shock or weaker China domestic demand.

Wheaton announced record revenue, earnings and operational cash flows in Q125, posting adjusted net EPS that was 10.5% better than our forecast and at the top of the range of analysts’ expectations. The main reason for the outperformance was an 18,616oz (20.1%) oversale of gold relative to production, which drove a US$40.1m positive variance in revenue, partially offset by an US$8.6m negative variance in costs, US$3.6m lower-than-expected interest income and US$2.3m higher tax to result in a US$23.9m positive variance in earnings. As a result, we have upgraded our FY25 adjusted net EPS forecast by 7.5c per share (3.4%). Note that, at current metals prices, our FY26 EPS estimate rises by 73.0% to US$2.63/share.

• Revelation Biosciences is a life sciences company whose development of immunologic-based therapies is based on the well-established biology of phosphorylated hexaacyl disaccharide (PHAD) and its effect on the innate immune system.
• The company announced its 1Q2025 financial results after recently revealing that it is targeting a new target indication with its Gemini treatment, the prevention of infection in burn patients.

• Operating loss in 1Q25 will persist in 2Q25 – I expect throughout 2025. Hua Hong rapid capacity increase is supposedly sold out but D&A is increasing much faster than revenue. 
• Consensus is not expecting an end-demand slowdown resulting from US import tariffs, or sluggish China domestic consumption. Consensus expects Hua Hong to sell its capacity increase fully. 
• Given losses in 1H25, Consensus EPS forecast is too high for 2025, probably for 2026 as well. Stock is expensive at 43x 2025 EPS, EPS forecasts looks too high.

• Unusual Machines (NYSE American: UMAC) reported another record quarter with revenue of approximately $2.04 million and a gross margin of 24% with some impact from tariffs, which the company expects to be short lived.
• This growth was achieved even though US government purchases have paused recently. Margins took a slight hit from the tariffs.
• The company raised $40 million at $5.00 a share to bolster its balance sheet (customers and suppliers need to see the ability to work large orders), and to build out its Orlando motor manufacturing facility.

BlackRock Latin American Investment Trust’s (BRLA’s) lead co-manager Sam Vecht reiterates his enthusiasm for a region that is out of favour with other investors. He recognises that returns in Latin America can be volatile, so takes a longer-term view, seeking companies with the potential for stable growth that are trading on reasonable valuations. The manager has developed an in-depth knowledge of the region because of his frequent visits, which include travel to the smaller countries as well as to Brazil and Mexico, the economies of which dominate Latin America. Vecht believes that meeting a wide network, including corporate executives, government officials and community members, allows him to uncover interesting opportunities that may be overlooked by other investors.

• Soluna just published its monthly update, which includes signing of term sheets for two new wind- powered data centers (Project Hedy for 120MW and Project Ellen for 100 MW), securing land for 166MW of Project Kati, and a new partnership with Blockware for hosting capacity at Project Dorothy 2.
• For April Soluna’s hosted hashrate was a record 1,727 PH/s, and it mined 10 Bitcoins
• Project Dorothy 1A/1B: Dorothy 1A (25 MW hosting) is fully deployed, and Dorothy 1B (25 MW prop-mining) has achieved strong hashrate growth and met Q1 2025 ancillary service requirements.

• Shionogi & Co (4507 JP) is acquiring Torii Pharmaceutical, as well as the pharmaceutical business of Japan Tobacco and U.S. group company Akros Pharma (sub-subsidiary of Japan Tobacco) for ~¥160B.
• With minimum overlap in focus areas, Shionogi believes that the transaction will create a leading company that delivers innovative pharmaceuticals. However, R&D expenses of the combined company will remain elevated.
• Considering the promising pipeline, we are hopeful on the long-term growth prospect of the combined company. Shionogi is scheduled to announce FY25 result on May 12.

• Semiconductor Manufacturing International Corp (SMIC) (981 HK)‘s 1Q25 results were in line, while the 2Q25 guidance appears somewhat cautious.  
• The Americas continued to contribute a low-teens percentage to revenue, accounting for 12.6%, while China and Eurasia made up the remaining majority.  
• Semiconductor Manufacturing International Corp (SMIC) (981 HK)’s top priority remains its strategic focus on core business and near-term execution.

• We interact with local business owners and our channels in Srinagar, Jammu and Kashmir with an objective to understand the current sentiment on the ground. 
• Srinagar, Kashmir’s summer capital, remains strategically vital in the current conflict as a military hub and political flashpoint between India and Pakistan.
• Local business owners are hopeful that the escalating conflict and the media attention surrounding it will ease by the 10th of May.

• HK inno.N (195940 KS) announced positive topline result from the U.S. Phase 3 trial evaluating K-CAB in gastroesophageal reflux disease. U.S. filing is expected in 4Q25.
• HK inno.N has reported strong 1Q25 result, with double-digit growth across all key parameters. Revenue increased 16% YoY, while operating profit grew at a faster pace of 47% YoY.
• The U.S. filing and approval are the major catalysts. However, HK inno has other growth engines as well. Innovative pipeline is also progressing, ensuring long-term growth prospect.

• EBITDA loss of $174M, net loss of $483M, driven by weak auto demand, high costs, and continuing drag from AMNS slab contract; EBITDA/ton fell sharply to –$42.
• Idling six facilities, exiting loss-making operations, $300M cost savings targeted in H2; slab contract expiry to add ~$500M EBITDA annually from 2026.
• Deep value: Trading at 4.4x EV/EBITDA (2026E), 7.1x P/E, 0.55x P/B, and $653 EV/ton of full steelmaking capacity, reflecting deep cyclical pessimism.

• F&F is one of the key beneficiaries of the exploding popularity of Jung Hoo Lee in the MLB (Major League Baseball) in the United States.
• The surging popularity of Jung Hoo Lee could lead to higher demand for F&F’s core products (MLB baseball caps and apparel products), which could lead to higher sales and profits.
• F&F recently provided new shareholder return plans including providing at least 25% of net profit as dividends/buybacks/cancellations (including buyback at least 60 billion won from 2025 to 2027).

• Panache DigiLife Limited is an ICT & IoT devices design, manufacturing, distribution and services company.  
• Company’s accounting policy for non-provisioning of old receivables seems to be aggressive. Poor capital allocation resulted in fragile financial health. 
• Concentration risk with sales from single customer accounting for 55% of revenue to be major areas of concern.

• Occidental’s Q1 2025 revenue rose by 13.9% YoY but missed estimates by 0.3%. Its net income rose by 6.7% YoY, and its EPS beat estimates by 12.1%.
• Occidental’s earnings beat was fueled by robust oil and gas segment growth, underpinned by stronger price realisations that offset volume softness and reinforced its upstream momentum.
• Occidental closed USD 1.3 billion in asset sales in Q1 and repaid USD 2.3 billion in debt YTD, underscoring its continued focus on debt reduction.

• BoJ’s lower GDP growth forecasts add weight to the rate hike deferral; we focus on big-cap banks that have more in the tank than high gearing to rising benchmark rates
• An increasingly important factor, in our view, is the share of strategic equity holdings relative to market capitalization; Kyoto is top on this metric, followed by Shizuoka, Resona and Mizuho
• With the lack of the rate hike catalyst in the near term, we remove SMFG from the buy list and would look to lighten holdings selectively in other Japanese banks

• Zacks Small-Cap Research Note for CoreCivic, Inc. (CXW)

• Revenue decreased by 1.8% YoY to JPY143.2bn, with IT business revenue up 13.6% and Food business down 43.9%.
• Operating profit increased by 242.7% YoY to JPY8.9bn, driven by IT segment’s OPM rise and cost ratio decline.
• Dividend per share for FY03/25 remained JPY120, with a total payout ratio of 117.7% including treasury stock repurchase.

• AMD yesterday reported Q1 2025 revenues of $7.4 billion, up 36% YoY, down 3% QoQ and $300 million above the guided midpoint. Non-GAAP Gross margin was 50%, precisely as guided
• AMD forecasted current quarter revenues of $7.4 billion, flat sequentially, together with gross margin of 43% incorporating the impact of an $800 million charge related to the latest China restrictions
• Enterprise server momentum, both cloud and on premise, is a major tailwind for AMD in 2025, far more so than any traction from its Instinct Accelerators. That comes in 2026.

• As Peter Lynch famously promulgated, one really fun thing about investing is noticing trends, “flowers” that are blooming around you, and finding ways to cash in on that “insight”, the caveat being you have to be right about the trend of course.
• Fad cycles may or may not have legs – see Funko in US and PopMart in HK.
• Not too long ago, I noticed PopMart replacing a local major bank outlet in a central shopping mall near to where I live and heedlessly dismissing it with a mere “wth is this?”, to my chagrin of course as the stock has gone parabolic ever since.

• LIFENET is a pure-play online life insurance company with a solid track record, revamping its strategy to revitalize growth.
• The company has initiated a three-pronged strategy, encompassing tech & services, rebranding, and an ‘embedded’ strategy to integrate life insurance products seamlessly into partner digital ecosystems with engaged customers.
• Key partnerships with KDDI Group (9433) and SMBC Group provide a competitive advantage, and the group credit life insurance offered to mortgage customers of au Jibun Bank, KDDI Group’s online banking subsidiary, has the hallmarks of a new earnings pillar. 

• Occidental’s Q1 revenue and EPS are projected to rise 14.4% and 23.8% YoY, driven by strong Permian production and improved oil and gas price realisations.
• Occidental’s average realised global oil price rose 1.9% QoQ, while NGL and natural gas prices surged 19% and 63.1%, respectively.
• Occidental’s average index prices for WTI and Brent rose 1.6% and 1.2% QoQ, respectively, while natural gas prices saw a sharp 36.1% increase.

• American Airlines Group recently reported its first quarter 2025 financial results amid challenging economic conditions which affected the overall industry demand.
• Throughout the conference call, management conveyed both challenges faced and strategic initiatives undertaken to navigate the difficult environment.
• The company reported a first-quarter GAAP net loss of $473 million, or an adjusted loss of $386 million excluding special items, marking a noteworthy setback.

• Revenue increased 33.6% YoY to JPY5.2bn, with HENNGE One business revenue at JPY4.9bn (+35.2% YoY).
• Operating profit rose 72.6% YoY to JPY1.1bn, with a margin of 21.5% (+4.9pp YoY).
• Gross profit was JPY4.5bn (+36.8% YoY), and SG&A expenses increased to JPY3.4bn (+28.0% YoY).

• Colgate-Palmolive’s latest earnings reveals a mixed performance for the first quarter of 2025, underscoring both opportunities and challenges that the company faces in its strategic operations.
• The company’s management approached the volatile economic environment with a sense of preparedness, though consumer behavior and global economic pressures have presented some difficulties.
• One of the significant challenges highlighted is the impact of a weaker consumer market, particularly evident in volume growth struggles.

• 2024 Cash Dividend is NT$28, with payout ratio slightly increased to 83.76%. 2Q25 Guidance Revenue: NT$26.5–27.7bn / US$828–866mn (vs. ~US$830mn in 1Q24), Gross Margin is 37–40% and OPM is 18.5–21.5%.
• 100% of sales and cost are denominated in USD. A 1% appreciation of the  TWD implies a 0.2% decrease in net income.
• 2H25 Outlook: Visibility remains low, and tariffs continue to be the key uncertainty.

• FTI Consulting delivered a mixed set of results for the first quarter of 2025 with both positive highlights and some areas of concern.
• The company’s revenues stood at $898.3 million, representing a 3.3% decrease compared to the same quarter last year.
• On a sequential basis compared to the previous quarter, revenues saw a marginal increase.

• Cadence Design Systems, Inc. presented a robust performance in the first quarter of 2025, surpassing guidance across all major financial metrics.
• The company’s revenue grew by 23% year-over-year, with a notable 34% increase in non-GAAP EPS, prompting an upward revision of the annual financial forecast.
• This performance was primarily driven by sustained demand for Cadence’s innovative technologies and solutions.

• Last year in August, Nihon Parkerizing (4095 JP) announced a large buyback – up to 12.0mm shares (9.6%) spending up to ¥15.0bn over the next 11.5mos.
• So far, they have spent ¥9.1bn buying back 7.3mm shares. That’s ¥5.9 left to spend in 3mos.
• It’s worth a look to see how this has evolved and how it might evolve into the end of the buyback. And it’s cheap, though tariff uncertainty exists.

• The recent spike in Asian currencies is driving foreign institutional flows into Asian equities. Currency appreciation is usually a lead indicator of FII flows, implying that this enthusiasm may continue. 
• The markets that were sold down the most are attracting the most flows and could continue to do so. India, Taiwan and to a lesser extent, Korea qualify.
• Domestic sectors like Chinese internet, restaurant chains, athleisure; Indian private banks, consumer discretionary, hospital chains could gain. So could defensives with high dividend yields, e.g. Korea and Chinese utilities, telecom.

• The Trump administration proposed a new 100% tariffs at movies produced outside the United States. Korean contents account for about 8-9% of total viewing hours on Netflix globally.
• Top three listed film/drama production companies in Korea including Studio Dragon, CJ ENM, and ContentreeJoongAng are likely to be negatively impacted by the new major tariffs imposed by the U.S.
• Economics of making a movie is much cheaper in South Korea versus the U.S. Producing a film in South Korea can cost 30–70% less than in the United States.

• TSMC’s Next Generation 2nm Node is Experiencing Unprecedented Customer Demand
• Showdown Heats Up Between Qualcomm & Mediatek’s Next Generation of Mobile Phone SoCs — And All Roads Lead to TSMC’s Process Technology
• Hyperscale Capex Is Maintained or Increased No Cuts or Postponement Capacity Constrain at AMZN GOOG

• Adani Power delivered strong FY25 earnings and plans to expand capacity to 30.7 GW by FY30 through brownfield, greenfield, and acquisition-driven growth.
• Godda, Jharkhand (110km from Bangladesh) project supports high realisations, but Bangladesh receivable buildup (~USD 900 million) remains a working capital risk, with gradual collections ongoing.
• Adani Power offers strong margins, improving ROCE, and trades at ~16.6× FY25 P/E.

• K-Beauty ODM segment appears positioned both to ride the secular growth of Korean skincare in the U.S. and to tide over tariff turbulence given their US based manufacturing facilities.
• By contrast to OEM/ODM players, major legacy consumer beauty brands like AmorePacific, LG Household & Health Care have been slower to localise production leaving them exposed to reciprocal tariffs.
• With American cosmetic imports from Korea hitting all-time highs, Korean ODMs with local facilities could see demand growth and profit recovery as clients onshore production to avoid tariffs.

• 2Q25 outlook: Wafer shipments are expected to grow +3~5% QoQ, ASP is expected to increase +0~2% QoQ and Gross margin is projected at 27~29%.
• 2Q25 by platform: PMIC to see significant growth; discrete to grow in low single digits; DDIC to remain flat.
• The 2024 annual dividend policy is maintained at NT$4.5 per share.

• TAL Education Group’s latest quarter and fiscal year performance presents a mixed picture, with notable expansions alongside challenges in profitability.
• Key areas such as Learning Services and Content Solutions have shown significant revenue growth, demonstrating the company’s efforts to broaden its educational offerings.
• In fiscal 2025, TAL Education Group recorded a considerable increase in net revenues, reaching USD 2.3 billion, a 51% rise from the previous year.

• Good 1Q25, revenue +36% YoY, EPS +55%. Complicated 2-3Q ahead due to US export restrictions cutting down revenue by 1.5bn. This is a one-off. Ignoring this, underlying growth looks strong.   
• AMD is gaining share in PC and Server, incl enterprise. GPU offering is still behind Nvidia but improving with MI350 in mid-25, MI400 mid-26. MI400 should be on-par with NVDA.
• The stock is down -45% from Jan-24. Trading on low multiples versus historicals: 17x 2026 EPS or more than -1 stdev below avg. Buy!

• Nuvoco reported improved volumes, margins, and deleveraging in FY25, with continued focus on cost optimization and operational efficiency.
• The Vadraj Cement acquisition expands capacity to 31 MTPA, diversifying regional exposure and strengthening presence in Gujarat and Maharashtra – west region.
• Valuations are reasonable at ~16x FY27E earnings and ~Rs5,100/ton EV/ton, but upside depends on timely integration and ramp-up of new assets.

• In this insight, we discuss a pair trade between Hanwha Aerospace (012450 KS) (go long) and Hanwha Ocean (042660 KS) (go short).
• Hanwha Ocean faces bigger overhang risk of KDB continuing to sell additional shares of the company as compared to Hanwha Aerospace’s rights offering shares dilution risk. 
• Hanwha Aerospace/Hanwha Ocean price ratio (5 year period) is near the 2 standard deviation (STD) mark which could suggest a reversion to the mean.

• TSMC: +15% Premium; Trading Near Level to Go Long the ADR Spread
• UMC: -1.8% Discount; Also Near a Level to Go Long the Spread
• CHT: -2.2% Discount; Good Level to Go Long the Spread

• Gravita reported steady FY25 results with ~10% EBITDA margins, strong cash generation, and maintained a net cash position despite ongoing capex.
• Business mix is evolving with increasing aluminium recycling, higher Africa contribution, and new verticals like lithium-ion, aiming to double capacity by FY27.
• Valuations appear elevated but are supported by strong ROIC, clear growth visibility, and alignment with global ESG trends.

• Bright Smart Securities (1428 HK) will benefit from Ant Financial’s technology innovation capabilities, customer group, digitalisation, and cross-selling to over 640m of Alipay users.
• With Futu Holdings Ltd (FUTU US) having an average PER of 19x for 2020-2025, we use 15x for BSS after a conservative estimate of 50% earnings growth in 5 years. 
• We value BSS at HK$8.13, but this is a conservative estimate. Its earnings growth is likely to be faster than our forecast, given its better leverage on the new parent.  

• Last week Temu confirmed dramatic changes to its business model in the US
• Temu won’t sell Chinese goods directly to US consumers, & will rely on local fulfillment
• The moves seem to put Temu into direct competition with Amazon, Walmart.com

• Strong Core Performance:Mahindra & Mahindra (MM IN) delivered robust growth in Auto &Farm segments in Q4FY25,with SUV volumes up 20% &tractor volumes up 12%,alongside market share gains in both segments.
• Strategic Expansion & Capital Allocation: The company outlined a clear roadmap for scaling EV and ICE capacities to 85K/month by FY27.
• Valuation Upside from Growth Platforms:With scalable and emerging “growth gems” across real estate, hospitality,renewables, and EVs, M&M’s Sum-of-the-Parts (SOTP) valuation pegs fair value at INR 3,437/share, including the EV business.

• Q1 showed resilient performance; Q2 EBITDA to rise on European spread recovery, healthy orders, and stable North America.
• Over 60% of future capex targets India; Hazira and Visakhapatnam expansions drive sharp volume and margin growth.
• Stock trades at deep 60–70% discount to Indian steelmakers despite growing India focus and structurally stronger EBITDA.

• In April 2025, S-REITs recorded a total net institutional selling of S$90.3 million and retail selling of S$54.6 million.
• ParkwayLife REIT, CapitaLand Integrated Commercial Trust, and Frasers Hospitality Trust were the top three year-to-date gainers in 2025.
• Stoneweg European REIT obtained unitholders’ approval for stapling to form Stoneweg European Stapled Trust, enhancing tax efficiency and investment scope.

• As HIT continues to expand services and enhance its platform, the company aims to broaden its target market, as it believes that organizations of all sizes can benefit from its AI-driven technology platform, which is designed to streamline and facilitate the process of researching and obtaining healthcare insurance.
• HIT began development of a large-group third-party AI-powered underwriting solutions for mid-sized and larger businesses and, in 1Q25, delivered solutions to large employers, including one that employs 1k+ people.

• Share prices are gradually stabilizing, influenced by news reports suggesting that Trump may eventually reduce tariffs on China (although trust overhang with Trump statements remains an issue).
• Besides Bosideng International Holdings (3998 HK), most companies have halted capital allocation decisions like buybacks till more clarity emerges.
• Stella International (1836 HK)  has the highest US revenue exposure at 47%, followed by Crystal International (2232 HK) at 38%, and Lever Style (1346 HK)  at 58%.

• Strong FY25 growth, but bulk cargo (~90%) dominates, keeping revenue per ton lower versus peers.
• Targeting 10% volume and 50% logistics growth by FY27, with heavy CAPEX and Navkar integration focus.
• Trades at ~28x EV/EBITDA, ~40x P/E — far higher than Adani Ports; promoter dilution likely to meet public float norms.

• We assume that Vanguard Intl Semiconductor (5347 TT) will see an upside in its 2Q25 outlook by a few percentage points.
• The DDIC (Display Driver IC) segment appears relatively flat, while PMIC (Power Management IC) may experience slight growth.
• Vanguard Intl Semiconductor (5347 TT) and other Taiwanese semiconductor Fabs are not subject to the 125% tariff imposed by Beijing on U.S. products. 

• SIMO beat 1Q25 EPS estimates by 20%, with strong gross margins (47.1%) driven by PCIe Gen 5 SSD controller mix and tight cost control.
• SIMO’s MonTitan confirmed as boot SSD supplier for NVIDIA’s BlueField-3 DPU, marking SIMO’s formal entry into NVIDIA-linked enterprise AI storage.
• Management maintains $1bn revenue run-rate target for 4Q25, supported by PCIe 5, UFS 4.1, and MonTitan ramps. We maintain our Structural Long rating.

• The HKD hit its upper limit of 7.75/USD. Capital inflows are expected post–Labor Day, likely boosting Hong Kong stock prices.
• Mindray faces headwinds. A turnaround may come in 25Q3–Q4, but the market seeks a new growth story. A 20–25x TTM P/E reflects fair value, not undervaluation.
• Akeso’s high valuation leans on HARMONi-3 and HARMONi 7 over HARMONi-2. Final OS data raises concerns, as MRCT is challenging and the safety margin is lower than expected.

• SF Hldg had slowest Q125 revenue growth among China-listed express companies, STO fastest
• Only these two express firms reported margin expansion in Q125 — how’d they do it?
• Q125 results suggest two very different paths toward improved express profitability

• Amaero Ltd (ASX:3DA) is a global specialist in advanced materials manufacturing for the defence, aerospace and other industrial sectors, developing a critical metals alloy powder manufacturing facility in Tennessee, USA.
• The company has announced it has signed a five-year, exclusive supply agreement with US-based metal additive manufacturing technology company Velo3D (OTC:VLDX) for mission-critical parts in the defence, space and aviation industries (ASX release 29 April).
• Amaero said, based on demand estimates from Velo3D, revenue from C103 and titanium alloy powder sales over the five-year agreement are expected to equal approximately US$22m (A$35m).

• Airtasker Limited (ASX:ART) is an online marketplace for local services, connecting people and businesses who need work done with people who want to work.
• ART has reported its Q3 FY25 trading update with key RaaS KPIs all heading in the right direction.
• Another quarter of positive cash flow was achieved, resulting in a stable net cash position of $18.3m.

• Sankyo is a leading Japanese maker of Pachinko and Pachislot machines. The company has a consistent record of generating positive free cash flow and operating cash flow.
• It trades at 6x EV/EBITDA (2025E) and P/E of 9.5x (2025E). Its net margin improved from 9.9% in 2021 to 21.8% in 2022, and 27% in 2024.
• Sankyo has also been aggressively buying back its shares in the past five years. We believe Sankyo could continue to outperform the market in the next 1-2 years. 

• Interpublic Group’s (IPG) recent earnings detailed the company’s financial and operational performance for the first quarter of 2025, illustrating a mixed yet strategically potent landscape.
• With an organic revenue decrease of 3.6%, this was in line with IPG’s expectations for the quarter.
• The company attributed this decline to adverse impacts from past account losses, which primarily affected the U.S., Europe, and Asia Pacific regions.

• Tractor Supply Company (TSC) presented its first quarter results for 2025 with a nuanced report that reflects both strong operational execution and the challenges of a shifting macroeconomic environment.
• Total sales reached a record $3.47 billion, marking a 2.1% increase despite a 0.9% decline in comparable store sales.
• The growth in sales figures underscores a robust transaction increase; however, it was offset by a decline in the average ticket size, largely attributed to adverse weather conditions impacting seasonal sales and a resulting product mix shift.

• VeriSign Inc.’s first quarter of 2025 showed a solid performance with a 4.7% increase in revenue, reaching $402 million compared to the same period last year.
• This was bolstered by positive trends in domain registrations.
• The domain name base for .com and .net increased by 777,000 names from the end of 2024, resulting in a total of 169.8 million domain names.

• Pool Corporation’s (POOLCORP) first-quarter results for 2025 reveal both challenges and resilience amid a fluctuating market environment.
• The company recorded net sales of $1.1 billion, a decline of 4% year-over-year, though this figure improved to a 2% decline when adjusting for the same selling days.
• The first quarter was marked by challenging weather conditions in key markets and an Easter holiday that shifted sales into the second quarter.

• SS&C Technologies reported a commendable financial performance for the first quarter of 2025.
• Adjusted revenue reached $1.5148 billion, reflecting a notable 5.5% increase year-over-year.
• The adjusted diluted earnings per share rose by 8.3% to $1.44.

• Hasbro performed well in the first quarter of 2025, driven primarily by the success of its Wizards of the Coast and Digital Gaming segments.
• The company reported a 17% increase in revenue, reaching $887 million, largely fueled by strong sales from the MAGIC: THE GATHERING franchise and robust licensing performance.
• Key strategic initiatives, such as the “Play to Win” strategy, reinforced cost discipline and emphasized profitable growth, contributing to a 50% rise in adjusted operating profit, which resulted in a 70% increase in adjusted earnings per share to $1.04.

• LKQ Corporation’s recent financial results reflect a mixed performance, with both favorable developments and ongoing challenges evident in its earnings report.
• During the quarter, LKQ reported diluted earnings per share of $0.65, marking a $0.06 increase compared to the previous year.
• However, on an adjusted basis, diluted EPS stood at $0.79, reflecting a slight decline of $0.03 from the prior year, mainly due to decreased segment EBITDA dollars in LKQ’s North American market.

• Given Japan’s growing interest in food-based health solutions, multiple players are looking to build businesses in the field across gut health and dietary solutions for the old and infirm.
• Oisix, the leading online food retailer has developed an incubator for start ups in this area.
• It is hoping to create a mini silicon valley for food tech businesses.

• Teck Resources Limited, a major Canadian mining and minerals company, presented its financial results for the first quarter of 2025, highlighting both achievements and ongoing challenges.
• The past few months have seen a challenging macroeconomic environment marked by geopolitical tensions, inflation, and supply chain disruptions.
• Despite this, Teck remains focused on copper and zinc production, crucial for long-term industrial demand driven by global electrification, manufacturing, and infrastructure needs.

• 2Q25 small 2% beat. Products revenue (iPhone, Mac, etc) up 3% YoY. Services up 12%. Jun-25: low- to mid-single digit revenue growth YoY (inline), 100bps hit to margins or US$900m. 
• Good effort to articulate supply chain reshuffle for products sold in US: iPhone from India, the rest from Vietnam. Beyond June, no quantification of impact on costs and demand. 
• Despite low 5-8% EPS growth, the stock is expensive due to steady Services growth and large cash returns to shareholders. Trading at 29x FY25 EPS, 27x FY26. 

• The commercialization of general purpose humanoid robots could be the most disruptive innovation that the next few decades have in store for us.

• It would be a new computing platform that would by far surpass everything that we have seen in personal and mobile computing.

• AI would be liberated from cyberspace to real space. Instead of shifting bits and bytes around, it would be moving physical objects.

• JSW Steel Ltd (JSTL IN)‘s resolution plan for Bhushan Power & Steel was rejected by the Supreme Court, ordering its liquidation.
• The rejection undermines JSW Steel’s capacity expansion and investment plans, leading to significant financial and strategic setbacks.
• The ruling highlights the importance of strict adherence to IBC provisions and raises concerns over the predictability of large asset resolutions.

• Source Rock is an oil and gas royalty company with interests in lands across Saskatchewan and Alberta.
• SRR has grown average daily production at a 16% CAGR since 2021, resulting in adjusted EBITDA growing at a 22% CAGR.
• Source Rock offers a >9% dividend yield which has grown at 2.5% annually since initiating the dividend in 2014.

• While Amazon’s 3P business usually grows faster than 1P, both 1P and 3P retail business grew at similar rate in 1Q’25.
• Ads revenue continued its momentum at 19% growth YoY which was higher than both Google and Meta.
• After growing at ~19% YoY for the last three consecutive quarters, AWS growth decelerated this quarter to 17%.

• Otsuka Holdings (4578 JP) reported 12% YoY growth in revenue in 1Q25, as pharmaceuticals sales grew backed by a 35% YoY growth in Rexulti revenue to ¥75.7B.
• The company reiterated 2025 guidance. Higher costs to dent margins with subdued sales of Lonsurf, Jynarque.
• Indication expansion of Rexulti and Araris acquisition augur well for the company from a mid to long term perspective.

• What did hyperscalers say on Capex in March conf calls? Amazon: nothing. Google: maintained. Meta: increase. Microsoft: maintained. No Capex cuts or postponement. 
• At the opposite, Amazon and Google mention capacity constraints, revenues could be higher with more capacity. All firms mention that AI is a critical building block of future growth. 
• Financial statements show 1) improving operating margins, 2) higher capex but still higher free cash flow. Positive for NVIDIA Corp (NVDA US) and Taiwan Semiconductor (TSMC) (2330 TT) .  

• Gilead Sciences delivered a mixed performance in their latest financial results, reflecting both strengths and challenges across their portfolio.
• The company reported overall product sales of $6.6 billion for the first quarter, a 1% decline year-over-year, primarily attributable to a significant decrease in sales of Veklury, a COVID-19 treatment, which was down 45%.
• The core business, however, excluding Veklury, demonstrated growth with a 4% increase, driven largely by their HIV segment and liver disease treatments.

• Procter & Gamble’s recent earnings results present a mixed picture of achievements and challenges.
• The company’s organic sales for the third quarter grew by 1%, which indicates modest growth.
• This increase was broadly underpinned by pricing strategies that added one percentage point to organic sales growth, while product volume and mix remained consistent with the prior year.

• Whirlpool Corporation has demonstrated a mixed financial performance in its latest earnings report, reflecting strategic advantages and challenges in the current macroeconomic environment.
• Organic growth of 2% marked a modest improvement, driven largely by strong performance in its Smart Design Asia Global and Major Domestic Appliance Asia sectors.
• The company achieved an EBIT margin of nearly 6%, reflecting successful pricing strategies and cost reductions, which helped weather macroeconomic headwinds.

• The change in controlling shareholder at Hainan Meilan International Airport (357 HK) will trigger a general offer. At HK$10.62, we do not see the proposed offer price attractive.
• The proposed price is only at 10.6% premium to the latest closing price, and equals to 1.15x 12-month forward P/B, way lower than the 5-year peak of 5.1x.
• The new parent Hainan Airport Infrastructure (600515 CH) can generate synergy, and the turn of Hainan into a Free Trade Port will attract visitors, boosting the long-term outlook. 

• Content-Driven growth: Strong performance in music and gaming supports Sony’s shift toward high-margin content, insulating it from trade and macro headwinds.
• Upcoming catalysts: Spin-off of Sony Financial and potential restructuring could unlock value and address the long-standing conglomerate discount.
• Attractive valuation: Trading at 14x EV/EBIT with defensive sector exposure, Sony remains undervalued relative to global peers despite YTD outperformance.

• Digital advertising has surpassed the days of “Mad Men” a while ago and thanks to AI, it seems even better positioned to unlock new markets and more opportunities.
• Meta is, of course, one of the companies leading this march.
• Here are my highlights from today’s call. Daily Active People (DAP) across its Family of Apps (FOA) accelerated to 80 mn QoQ in 1Q’25.

• On April 29, Intel hosted the latest in a series of “Direct Connect” events, this time focusing on the company’s Foundry progress and plans
• They talked about “ups and downs” with 18A, seeming to lower expectations for the process node which former CEO Gelsinger “bet the company on”. Lots of emphasis on 14A instead.  
• Foundry chief Naga Chandrasekaran casually announced that the company was “walking away” from Copy Exactly and “democratizing innovation” at the fabs to fix yield, reliability, predictability and cost challenges. Wow!

• Qualcomm Inc (QCOM US) 2Q25 (March-25) spot inline with expectations, 4Q guidance inline with expectations. Revenue growth is slowing down sharply in June. Consensus expects further slowdown in 2H25. 
• QCOM is losing iPhone modem, Android is not growing in units but chips become more expensive with AI, new revenue streams (AI PC, Auto, Industrial IoT) are not well understood. 
• The result is Consensus forecasting basically no EPS growth in FY26-27 and the stock is trading at 12x EPS, almost -1 standard deviation below average PEx

• Qoo10 is tiny in comparison to Amazon, Rakuten and Yahoo but it punches well above its weight by specialisation. 
• The online mall’s focus on Korean cosmetics and lifestyle has given it a depth of loyalty among young women that was once the preserve of Zozo.
• Along with its other platform Move, Ebay Japan has built a solid presence in the Japanese market which looks set to continue to expand.

• In FY03/25, the company achieved revenue of JPY2.43tn, operating profit of JPY697.3bn, and net income of JPY544.1bn.
• For FY03/26, the company projects revenue of JPY2.6tn, operating profit of JPY727.0bn, and net income of JPY566.0bn.
• The company plans to increase R&D expenses to JPY300.0bn in FY03/26, up from JPY250.0bn in FY03/25.

• Luckin reported C1Q25 revenue in-line/6% vs. our estimate/consensus, and non-GAAP operating profit 9%/75% higher than our estimate/consensus, thanks to warmer weather and constrained marketing spending;
• Despite Luckin pre-emptive lock-ins, rising coffee bean price shall still take its toll as Luckin’s biggest rival Starbucks should be equally capable of managing the commodity price risk. 
• We keep Luckin as BUY rating but cut TP to US$39.

• FY03/25 results: Sales JPY183.1bn (+0.6% YoY), Operating profit JPY7.9bn (+3.6% YoY), Net income JPY5.1bn (-0.9% YoY).
• FY03/25 forecast: Sales JPY186.0bn (+1.6% YoY), Operating profit JPY6.0bn (-24.2% YoY), Net income JPY4.9bn (-4.5% YoY).
• Hakuto’s medium-term plan targets sustainable growth by FY03/29, with Vision 2030 and Hakuto 2028 initiatives.

• Ginebra San Miguel (GSMI PM) reported steady growth in Q1 2025, with revenues and profits increasing by 7.6% and 10.8% YoY.  Volume/Pricing grew 1%/6.6% YoY as company offset excise-duty increases.
• EBITDA margins were maintained at 16.2%, while the company saw a massive increase in cash and investments to 16.2 bn pesos from 12.8 bn pesos, led by working capital inflows. 
• Trading at 10x PE with 20% of the market cap in cash and investments, and demonstrating pricing power/profit growth of 10-15% CAGR, this is a name to explore. 

• Indian regulator barred Gensol Engineering’s founders for alleged fund diversion, causing a 90% stock plunge
• Unusual growth and poor governance were flagged in Gensol’s accounts by Transparently’s AI system
• Transparently’s “F” risk rating would have likely steered investors away from Gensol.

• Japanese pet insurance company with 40-50% market share thanks to its OTC settlement system and a network of pet shop/veterinary clinic partners
• The stock trades at around 13x current-year earnings, a modest multiple given the secular growth that’s ahead of it. The pet/human population ratio is low. Pet insurance is still unusual.
• Well-Regarded investor Hikari Tsushin just took a 5.2% position in the company, highlighting the value in the company at the current 1.5x book. 

• FDC Limited is a pioneer in India’s pharmaceutical landscape, especially in Oral Rehydration Salts (ORS) and specialized formulations.
• The company’s flagship brand, Electral, continues to be a major revenue contributor, despite margin pressures from regulatory price caps.
• FDC’s strategic capex in ophthalmic, ear, and nasal drops business, coupled with its domestic and international presence, positions it strongly for sustained growth.

• SunCar Technology Group ((NASDAQ: SDA) is a leading Chinese cloud-based provider of digital enterprise auto services and auto eInsurance services in China.
• The company offers one-stop, fully digital, on-demand automotive service systems to help enterprise clients build up their customer base and serve their end customers (auto owners).
• The company has grown revenues rapidly in recent years, which we expect to continue in the near-to-midterm.

• Wrkr Ltd (ASX:WRK) offers compliance solutions for Australian superannuation contributions and payroll including member onboarding, super payments, messaging and employee validation.
• WRK’s Q3 FY25 activities report demonstrates a continued balance of cost management (up just 3% against Q3 FY24) against lumpy cash receipts (down 6% against Q3 FY24 but up 39% on Q2 FY25) amidst continued milestone/project work, which should drive revenue in FY26.
• This quarter saw the receipt of a $328k R&D tax credit but also a record capitalised IP spend of $985k as new product development and systems integration continues.

• Mediatek beats in 1Q, good guidance for 2Q, but close to Consensus. Several positives in 2025: flagship smartphone gains, smartphone AI upgrades, strong WiFi and Connectivity growth, progress in Auto.
• How large is the “sizable revenue” opportunity of data center custom ASICs from 2026? Management sounds increasingly positive / confident. The stock valuations reflect this.
• The stock trades at 18.5x 2025 EPS, 15.5x 2026 EPS, not extravagant but on the high-end. If you have the stock, keep it. If you don’t, TSMC looks more interesting.  

• Adani Energy Solutions (ADANIT IN)’s Q4 FY25 PAT jumped 87% YoY to INR 714 crore, driven by strong transmission execution and distribution growth.
• The company’s record order book of INR 59,936 crore and aggressive smart metering ramp-up signal sustained growth ahead.
• AESL is strengthening its position across transmission, distribution, and metering, reinforcing its multi-year growth visibility.

• MediaTek beat 1Q25 EPS expectations as Smart Edge and mobile segments delivered strong sequential growth; flagship SoC traction supports improved ASP mix.
• AI remains central to strategy: NVIDIA partnership progressing — NT$1bn AI ASIC revenue targeted for 2026.
• Tariff-Driven macro caution clouds 2H outlook, but we maintain Structural Long view — AI, auto, and premium mobile SoCs drive long-term opportunity.

• Sumitomo Pharma (4506 JP) revised revenue guidance for FY25 to ¥399B from previous ¥381B. New guidance represents 27% YoY growth.
• This comes on the back of higher than expected sales in North American segment, which contributed 61% sales in 9MFY25.
• Operating profit guidance have been revised to ¥43.2B from ¥30B on controlled cost and higher sales.

• Adi Sarana Armada has seen its end-to-end logistics ecosystem under Cargoshare take over as its biggest revenue driver, with car rentals, vehicle auction, and used cars also showing solid growth.  
• All divisions booked revenue growth, with the auction business seeing the strongest performance, but the logistics saw the biggest turnaround, booking a profit in FY2024 versus a loss in FY2023. 
• Cargoshare is increasingly deploying solutions-based logistics, especially for FMCG companies, which are increasingly outsourcing logistics. ASSA’s mobility ecosystem continues to thrive through synergies, with captive car supply from ASSA Rent.