Equity Bottom-Up

• Dream International (1126 HK) posted strong results, with revenues up 2% and profits down 11% YoY, demonstrating effective cost control in a challenging competitive environment.
• Net cash on the balance sheet ended at 1.52 bn HKD (vs 1.35 bn), representing 33% of market capitalization. The company rewarded shareholders with 60 cents of dividend (~8.9% yield). 
• Trading at 6x/3x PE/EV-EBITDA FY24, with an 8.9% dividend yield and an average 10-year ROCE of 20%, the stock is worth exploring from here. 

• We remain steadfast in our belief in our company’s future. That said, there are no quick fixes. We need to demonstrate consistent execution and results over a sustained period. Frank Yeary
• Intel’s ELT scored themselves a remarkable 29.7 out of 35 for their 2024 “Product Leadership” goal, despite mounting data center market share loss and Gaudi being an abject failure
• While Pat Gelsinger’s departure from Intel was labelled a “retirement” last December, the Proxy Statement refers to it as a “resignation”. Which was it?

• The Swedish startup has formally filed for a US IPO and is aiming to raise $1 billion, at a valuation of between $15 billion and $20 billion. 
• Buy now, pay later is one of the biggest shifts in modern finance. Klarna isn’t just BNPL anymore: it has a whole shopping and payments ecosystem.
• Klarna may be a heavyweight in BNPL, but it’s not alone in the ring. Heavy hitters like Affirm, Afterpay, and PayPal are also scrambling for dominance.

• CNMC Goldmine Holdings (CNMC SP) is a cash-rich (net cash: 20 million SGD) gold play listed on the SGX with assets in Malaysia. Its market cap is 155 million SGD.
• The company is a high-cost gold play, with cash costs of 1200 USD/oz excluding royalties. It is in the process of ramping production from 26,000 oz to 34,000 oz/annum.
• Based on a 3000 USD/oz gold price, the stock trades at 5.7x PE, 4.0x EV-EBITDA with a 2.9% dividend yield (based on a 30% payout ratio). 

• WNS Holdings reported its fiscal 2025 third-quarter results, highlighting some key financial metrics and operational dynamics.
• The company achieved net revenue of $319.1 million, marking a year over-year increase of 1% on a reported basis, though it remained flat when adjusted for constant currency.
• Sequentially, however, there was a more robust performance with revenue increasing by 2.7% on a reported basis and 3.2% in constant currency terms.

• American Express Global Business Travel reported strong financial performance for the fourth quarter and full year of 2024, showcasing a record year for adjusted EBITDA and revenue.
• The company exceeded the midpoint of its guidance range, with adjusted EBITDA rising by 26% year-over-year.
• These results were driven by growth in technology-enabled productivity, a scalable cost base, and robust free cash flow generation.

• As of today, Walmart finds itself at a crossroads.
• The retail giant, long seen as a haven during economic uncertainty, saw its market capitalization drop by nearly $22 billion in a single day after the Conference Board reported that U.S. consumer confidence hit a 12-year low.
• This marks the fourth consecutive monthly decline, with the expectations index plummeting to 65.2 — a level that typically signals a looming recession.

• Spectrum Brands Holdings, Inc. had a mixed first quarter of fiscal year 2025, as revealed in their recent financial results.
• The company experienced a modest increase in net sales, driven by strategic investments and several successful initiatives across its business segments.
• Net sales grew by 1.2% overall, with organic sales, excluding unfavorable foreign exchange impacts, rising by 1.9%.

• GoodRx, the company focused on providing users with discounts on prescriptions and other healthcare services, recently reported its financial results for the fourth quarter and full year of 2024.
• The company highlighted several strategic initiatives and partnerships aimed at driving future growth, including enhanced partnerships with pharmacies, pharmaceutical manufacturers, and healthcare professionals.
• In terms of financial performance, GoodRx posted fourth-quarter revenue of $198.6 million and an adjusted EBITDA of $67.1 million.

Refocusing a business takes time, especially when it involves replacing legacy systems, renegotiating framework agreements, integrating numerous acquisitions and rebuilding the balance sheet. The process becomes even more challenging if it coincides with weak market conditions and a significant level of geopolitical uncertainty. Dustin Group’s management is actively addressing these challenges, including a rights issue announced with its results. The business is well positioned, leaving investors with one key question: when is the right time to buy? We believe the next six months may provide the answer.

• In this insight, we discuss a pair trade between LG Chem Ltd (051910 KS) (common) and LG Chem (051915 KS) (preferred). 
• The price ratio (LG Chem common/preferred) is now at 2.16x, which is more than 2 STD (standard deviations). Our trading strategy involves revert to the mean. 
• One of the key reasons why LG Chem (preferred)’s share price has fared much worse YTD than LG Chem (common) is due to much larger selling by the foreign investors. 

• The Hong Kong Alpha simulated portfolio returned 0.97% in March outperforming its benchmark by 1.1%.  Since inception the portfolio has outperformed Hong Kong indexes by 8% to 11%.
• The portfolio has generated alpha while maintaining a correlation of 0.8 and a beta of 1.05.  The HK Alpha portfolio has a Sharpe ratio of 2.19 YTD.
• On 3/31/25 we sold Shanghai Electric Group Company (2727 HK) , Citic Securities (H) (6030 HK) , Sands China (1928 HK) , and Sunny Optical Technology Group (2382 HK)

• Murakami-Led funds have quietly amassed a 26.97% stake in Sumi Mitsui Construction while also acquiring a 5.01% stake in its subsidiary, Sumiken.
• With the Tokyo Stock Exchange clamping down on parent-child listings, Sumiken’s future as a public company looks increasingly uncertain, raising buyout speculation.
• City Index’s small stake in Sumiken may serve as a defensive move to block rival bids, reinforcing its influence over SMC’s long-term strategy.

• CEO Mr TAN confronts what’s wrong: Intel needs better product performance, to listen to the market needs. Intel needs Foundry processes that support customers’ designs. Not the other way around. 
• Product presentation very off-base: robotaxi, AI-PC, Gaudi 3 is back as Intel’s AI strategy. Foundry non-announcement: 18A risk production is starting – of course it is, otherwise 18A is flawed. 
• Consensus is expecting a swift turnaround in 2026-27. There is currently no reason to believe this. On these rosy expectations, the stock trades at 19x 2026 EPS.

• Sarimelati Kencana (PZZA IJ) booked a profit in 4Q2024, and the company will remain profitable in 1Q2024, with a strong uptick expected in 2Q2024 and a profit expected for FY2025. 
• The company has been focused on reducing costs and improving efficiencies, booking a record gross profit margin in 4Q2024, and is now able to book a profit with lower sales. 
• Sarimelati Kencana remains a leading quick-service food provider in Indonesia, with prospects improving as it starts to book sustainable profits, with significant upside if it books sales at pre-COVID levels. 

• Copa Holdings delivered a mixed yet robust performance in the fourth quarter and full year of 2024, illustrating its resilience and operational efficiency in a fluctuating market.
• Positively, the company reported an operating margin of 21.9% for the year, which reflects consistent execution of its business model focused on cost efficiency and operational excellence.
• An increase in capacity by 8.6% year-over-year was aligned with previous guidance.

• Atour (ATAT) reported C4Q24 revenue 0.7%/5.8% higher than our estimate/consensus, which translate to 0.5%/4.7% higher in non-GAAP net income, thanks to hotel supply chain consolidation and pillow retail sales.
• Management’s guidance for a steeper-than-consensus decline in 2025’s RevPAR are conservative in our view. We see a “low-before-high” RevPAR pattern in 2025, supported by tightened hotel supply and government stimuli.
• We keep the TP at US$37/ADS and maintain as travel sector TOP BUY

• Warburg Pincus invests in Japan living sector by acquiring a 16,000-room portfolio.
• Proprium Capital beats out Ho Bee Land with a $228M bid for an Australian homebuilder.
• Hillhouse’s Rava secures majority stake in Dash Living with $150M investment; Ex-Macquarie exec Robson to advise on ESR privatization.

• BPO provider WNS is reported exploring a potential sale after attracting acquisition interest. The company has a market capitalisation of USD 2.89bn and operates across various sectors.   
• We deem Capgemini could afford to acquire WNS, but such a move may not align with its strategic focus, despite the diversification benefits that a hypothetical acquisition would offer.   
• The rise of generative AI could transform BPO, but it remains unclear whether Capgemini will pursue acquisitions in BPO, given its past strategy of focusing on cloud, digital and engineering.

• Advanced Energy Industries, Inc. reported its fourth quarter and full-year 2024 financial results, demonstrating a strong finish to the year after a rocky start.
• The company achieved notable highlights, with Q4 revenue reaching $450 million, an 11% increase sequentially and 3% year-over-year, driven by strong performance in semiconductor and data center computing markets.
• Advanced Energy’s semiconductor revenue, at $227 million, marked a 15% sequential increase and 19% year-over-year growth.

• Shougang Fushan Resources’ (639 HK) FY24 revenues/profits were down 14%/21% YoY due to the decline in coking coal prices, which were 14% YoY to 1666 RMB/ton (on similar volumes). 
• At 1295 RMB/ton, spot prices are 25% lower than last year’s average, yet the stock is supported by cash, which represents 80% of its market capitalization (10 billion HKD).
• The company provided a 100% payout of 30 HKD cents, resulting in a 12% dividend yield; however, at current spot prices, the yield is 7%.

• Exhibiting home revenue recovered significantly in 4Q24, while new home revenue recovered from 3Q24.
• The growth rate of active stores and active agents accelerated quarter by quarter.
• We conclude an upside of 105% and a price target of US$42.00. Buy.

• We calculated that after the privatisation of ENN Energy (2688 HK), the EPS of ENN Natural Gas (600803 CH) will be Rmb1.94 for FY25F and Rmb2.11 for FY26F.
• By using ENN Energy’s undisturbed PER (with and without a 10% discount) and Kunlun Energy (135 HK)‘s ex-cash PER, ENN-NG H-share is worth 6.8-7.9x for FY25F and 6.3-7.2x for FY26F.
• ENN-NG H-share is hence valued at HK$14.11-16.37, implying that ENN Energy’s value under the privatisation proposal is HK$66.02-72.67, which is lower than Somerly’s HK$80 estimate.

• Rather than love, than money, than fame, give me the truth
• I intend to under promise and over deliver. I will not be satisfied until we delight you
• How long will I stay at Intel? I’m here for as long as it takes

• TCM finished drugs and TCM decoction pieces businesses could be the second and third growth curve of China TCM when the concentrated TCM granules business is facing VBP headwinds.
• 2024 would be the performance low point. Due to 2024 low base, we would see positive growth in 2025.Performance recovery is expected in next three years based on our forecast.
• Annual profit of RMB1 billion is achievable. If based on 10x P/E, market value is RMB10 billion.We think if valuations fall below RMB10 billion, investors can consider buying on dips.

• In this insight, we discuss numerous gap trade opportunities involving Korean preferred and common shares in 2Q 2025.
• The following five pairs (between common and prefs) have experienced more than 10% difference in their share prices in the past six months. 
• These five pairs (LG Chem, Amorepacific Corp, Amorepacific Group, CJ Cheiljedang, and Korea Investment Holdings) are more likely to revert to closing their gaps in the coming weeks. 

• In this Insight, we aim to understand the current demand, environment, competition, and margin trends for major air conditioner manufacturers in India.
• Dealers remain optimistic despite a slower seasonal start, anticipating accelerated growth in this season. While there have been price increases, competition, and cost inflation may not translate into margins. 
• Some of the companies in Focus include Voltas Ltd (VOLT IN), Havells India (HAVL IN), Johnson Controls-Hitachi Air Conditioning India (JCHAC IN).

• GoI converts ₹36,950 crore of spectrum dues into equity, increasing its stake to ~49%. Promoters’ stake diluted to ~25.5%, with public shareholders now owning just ~23.8%. 
• While the move eases cash outflows till H1FY28, Vodafone Idea’s AGR dues, weak subscriber base, and funding needs remain material headwinds.
• Structural concerns remain unresolved, and further dilution risks persist along with loosing market share.

• In January 2024, SHiDAX Corporation was consolidated as a subsidiary, boosting sales and EBITDA in Q4 FY03/24.
• Cumulative Q3 FY03/25 progress rates: 75.9% sales, 93.7% EBITDA, 84.4% operating profit, 110.5% net income.
• B2C Subscription sales decreased YoY, but segment profit increased due to higher ARPU and cost-efficient acquisitions.

• On March 31st 2025 I spoke to Mark Schneider of investor relations from IAC.
• Mark currently covers investor relations for Angi, Inc as well. but Angi will be hiring its new head of investor relations soon.
• Our conversation was productive and increased my confidence in the outlook for Angi.

• Fast Retailing (9983 JP)  is set to report its second-quarter results on April 10, and we see an opportunity to buy ahead of a strong earnings release
• We expect Fast Retailing to post Q2 sales of ¥905bn (+15% YoY), above consensus estimates of ¥881bn. EBIT projected at ¥133bn (+21% YoY), ahead of street expectations of ¥125bn.
• Domestic Uniqlo monthly sales and quarterly results from global peers suggest strong sales momentum. 

• In this insight, we highlight the recent pricing gap divergences of the major Korean holdcos and opcos which could provide trading opportunities in 2Q 2025.
• Among the 38 holdcos/opcos, there have been several pairs that have resulted in significant price ratio divergence which could provide trading opportunities in terms of their pricing gaps closing reversal.
• Given the resumption in short selling in Korea, there is going to be a lot more interest in pair trades in Korea, especially among the major Korean holdcos/opcos. 

• Reports of merger between UMC and GlobalFoundries. Beyond the threat of US import tariffs for UMC, it would create a larger firm to counter SMIC’s expansion. Easier said than done
• TSMC second 2nm Fab in KaoHsiung “inaugurated”, 2nm production unchanged mid of 2025. A16 process and equipment qualification underway for risk production in 2027.
• Biden era CHIPS Act subsidies (US$52bn) could be cancelled or the program is completed and the assigned staff leaving?

• TSMC Accelerates U.S. Expansion — New Arizona Fab to Be Built at ‘Taiwan Speed’
• Phison CEO Sees Decade-Long Boom for NAND Flash as AI Shifts to the Edge
• Delta Taiwan Vs. Thailand Monitor: Delta Thailand Crash Closes Gap, But Still Relatively Expensive 

• UiPath reported its fourth-quarter and full-year fiscal 2025 financial performance, marking several high and low points that are critical for investors to examine as they consider their future involvement with the company.
• On the positive side, UiPath achieved a quarterly revenue of $424 million, with only a slight impact from foreign exchange fluctuations.
• For the full fiscal year, revenue increased to $1.43 billion, reflecting a 9% improvement year-over-year.

• MIXI has announced an all-cash deal worth ¥35.2bn for PointsBet Holdings (PBH), an Australian sports and racing online betting company operating in Australia and Canada.
• The deal is due to close in mid-June 2025. We view this transaction as aligned with MIXI’s strategies of business diversification and overseas expansion, leveraging the expertise gained from TIPSTAR in Japan’s keirin and auto-race betting businesses to enter the Australian market, thereby accelerating the growth of both TIPSTAR and PointsBet.
• MIXI is demonstrating a positive and active allocation of its capital, with a high intent to accelerate the development of its Sports business and make it a key earnings pillar.

• TEGNA Inc. recently presented its fourth-quarter and full-year 2024 financial results, demonstrating both opportunities and challenges for potential investors.
• The company reported a significant 20% year-over-year increase in total revenue for the fourth quarter, amounting to $871 million, primarily driven by political advertising revenues.
• However, the political advertising performance nearly matched that of the 2020 election cycle, indicating the cyclical nature of this revenue stream.

• C3.ai has exhibited a solid performance in the third fiscal quarter of 2025, ending January 31, 2025, with both positive developments and certain challenges.
• The company reported total revenue of $98.8 million, representing a 26% increase year-over-year.
• Subscription revenue, constituting the majority of its revenue, grew by 22% to $85.7 million.

• Dalata Hotel recently announced a formal sales process. Last few days have been really busy ;ppp and I’ve been using time on the road to conjure my “tin-foil hat” hypotheses and squeezing out whatever spare time I have to eke out this article.
• Before going on, I’d like to highlight that amidst the market chaos, there seems to be a fair few interesting things popping – for e.g. last week, I highlighted DLTR selling off its FD stake and how DLTR deserved a rerating; in other news, Intel has also successfully divested its memory chip business (this time, IP and manpower) over to Sk Hynix, netting a ~1.9b cash infusion and also an indication of focus on its core “less-commoditized” logic chips business.
• Tan Lip Bu also finished acquiring his 25m worth of shares at ~$23.96 per share. Yet, INTC has traded down with the rest of its boys, as the semicon indices continually to get smacked downwards. Exciting times ahead.

• MasTec Inc. has reported strong financial results for the fourth quarter and full year 2024.
• The company’s performance exceeded expectations across several key metrics, including revenue, adjusted EBITDA, and earnings per share (EPS).
• For the fourth quarter, MasTec achieved a revenue of $3.4 billion with an adjusted EBITDA of $271 million, marking a 20% year-over-year increase.

• TSMC: +14.9% Premium; Spread Has Fallen Close to Long Levels
• UMC: -2.6% Discount; Good Level to Go Long the Spread
• ASE: -3.2% Discount; Spread at Extreme Low, Good Level to Go Long

• China International Capital Corporation (3908 HK)‘s 2H24 net profit surged 33.6% in 2H24, reversing the downtrend in 1H24. It has benefited from lower staff and other operating costs. 
• Better 1Q25 market turnover and activities, more IPOs and placements and improved cost dynamics imply that the consensus forecasts are too conservative.
• Its 0.55x P/B cannot adequately reflect better profitability. Despite the denial, CICC’s potential merger with China Galaxy Securities (H) (6881 HK) cannot be completely ruled out.

• Global Digital Niaga (BELI IJ) booked a strong finish to 2024, driven by its 3P retail and institutional business, although 1P retail and physical stores also performed well. 
• The company continues to see improving take rates in FY2024, whilst its average order value increased through a more favourable product mix, with gross margins and cash flows improving significantly.
• Global Digital Niaga continued to expand its physical stores for monobrand and multibrand stores, adding Huawei as a brand. Valuations look reasonable given growth prospects and progress towards profitability.

• Edelweiss reported a decent Q3FY25 with ex-Insurance PAT of INR 185cr, a growth of 16% YoY excluding NBFC PAT. Growth was led by Asset Management and Insurance businesses.
• Within the Credit business, the Home Finance business which operates under the brand Nido is scaling up well. It disbursed INR 400cr+ worth of retail loans during Q3FY25.
• Edelweiss is focusing on unlocking value and has already filed DRHP for its Alternative Asset Management business. Once approved, it will proceed for an IPO with OFS of INR 1500cr.

• Nuvama continues to post strong earnings. Its Q3FY25 revenues grew 30% YoY to INR 723cr. Q3FY25 PAT grew 43% YoY to INR 252cr. 
• Q3FY25 performance was surprisingly led by the Asset Services segment where revenue grew 77% YoY with addition of new clients and positive asset flow, leading to market share gain.
• Together the Wealth and Asset Management segments performed steady with revenue growth of 18% YoY. Net flows in 9MFY25 in ARR and MPIS assets exceeded that for whole of FY24.

• Nesco reported a strong Q3FY25 with 16% YoY revenue growth and 17% YoY PAT growth. The exhibitions (BEC) segment grew 13% YoY and the IT Parks segment grew 16% YoY.
• Nesco Foods segment reported 29% YoY growth in revenues led by improved BEC footfalls and scaling up of the Food Court and Restaurants business.
• Recently, Nesco also received IOD from the municipal corporation of Mumbai, thus paving way for receiving future approvals for Tower 2. Tower 2 construction is expected to commence in Q3FY26. 

• Delta Thailand Has Dramatically Underperformed Delta Taiwan — Delta Thailand Now Finally Trading at a Less Extreme Level vs. Delta Taiwan
• Latest Relative Growth Profiles — Delta Taiwan Has Higher Growth Profile in 2025E
• Even After the Major Pricing Reversion Since Mid-February, Delta Thailand Remains Overvalued Relative to Delta Taiwan

• HealthCare Global Enterprises (“HCG”) reported a strong Q3FY25 despite Q3 being a seasonally weak quarter. Revenue growth was strong across both the established centers and the emerging centers.
• Revenue from established centers grew 20% YoY while that from emerging centers grew 25% YoY in Q3FY25. Within emerging centers, Kolkata led the growth with 40% YoY rise in revenues.
• HCG saw promoter change in Feb 2025. KKR announced acquisition of 54% stake from CVC who owns around 60%+. Dr. BS Ajaikumar, the founder promoter, will continue to own 10%+.

• Earlier this month, RPPL announced a new factory to expand its thermoforming and extrusion capacity by 1250 MTPA and 1600 MTPA, respectively. This will come on-stream within a month.
• RPPL reported a weak Q3FY25 due to adverse fluctuation in raw material prices as well as seasonal impact. Q3 tends to be a weak quarter seasonally.
• RPPL’s capacity expansion has been leading to upfront expenses. The new Olive Ecopak JV also reported losses, share of which was INR -2.6cr in Q3FY25.

• Sariguna Primatirta (CLEO IJ) booked yet another quarter of impressive sequential growth in 4Q2024, hitting another record quarterly revenue, with margins improving at the same time, boosting profits.
• The company opened three factories in 2024 and plans three more in FY2025, with the total to 35 across Indonesia and further extending its scale and reach, and driving growth.
• The main driver for growth will come through general trade, which makes up 70% of distribution, with a factory opening push outside Java. Valuations are attractive versus growth.

• Prodia (PRDA IJ) FY2024 results reflect an impending recovery, with the company aggressively expanding its outlets by adding 73 over the year, and mostly lower cost points of collection. 
• The company continues to roll out new tests, with more emphasis on esoteric testing, but also looking at routine testing. It will continue opening new outlets in 2025. 
• Prodia also continues to expand its digital capabilities through U by Prodia for patients and Prodia for Doctors, and Prodialink. Valuations look attractive with Prodia trading on a low-single-digit EV/EBITDA,

• Backed by DP World (DPW DU), Asian Terminals (ATI PM) is one of the largest owners and operators of ports and related infrastructure in the Philippines.
• We are impressed with the company’s excellent financials including consistent profit margins and free cash flow, strong market share, and execution of its business strategies.
• It also trades at cheap valuations with solid dividends and it has also been buying back shares. 

• The 1Q25 outlook is slightly affected by earthquakes, but production can resume in late 1Q25.
• The UMC 12nm project could be in vain if Intel collaborates with TSMC or if TSMC takes over Intel’s foundry service.   
• UMC’s annual revenue could see a -5% year-over-year growth in 2025, but there may be a few percentages increase in wafer shipments.  

• Innovent Biologics Inc (1801 HK) has announced 2024 result, with total revenue increasing a whopping 52% YoY to RMB9,422M and net loss narrowing 91% YoY to RMB933M.
• On adjusted basis, the company reported maiden net profit of RMB332M compared with loss of RMB515M in 2023. Innovent is expected to become profitable on reported basis this year.
• Innovent aims to achieve RMB 20B product revenue in 2027, implying a CAGR of 34% and advance five pipeline assets to the global/multi-regional Phase 3 clinical trial stage by 2030. 

• Cheniere Energy posted robust results for the fourth quarter and full year 2024, demonstrating its strong operational and financial performance.
• The company reported a consolidated adjusted EBITDA of approximately $1.6 billion for the fourth quarter, with a full-year total of $6.155 billion.
• This reflects solid underlying business performance, driven by Cheniere’s focus on safety, operational excellence, customer engagement, and financial discipline.

• DENTSPLY SIRONA’s fourth-quarter and full-year 2024 earnings report reflects a mixed performance amid ongoing challenges and strategic repositioning.
• On the positive side, the company experienced growth in several areas, including a 13% uplift in imaging and a 7% increase in Wellspect sales.
• In Europe, DENTSPLY SIRONA achieved a 2% organic sales growth, supported by significant momentum in Germany and a 20% year-on-year growth in the SureSmile business.

• GitLab Inc. delivered a strong performance in the fourth quarter of fiscal year 2025, showcasing impressive top line growth and improved profitability metrics.
• The company’s revenue increased by 29% year-over-year to $211.4 million, driven by robust momentum in its enterprise offerings, particularly GitLab’s Ultimate and Duo products.
• Notably, the company demonstrated significant operating leverage with a non-GAAP operating margin of 17.7%, an increase of more than 960 basis points compared to the same period in the previous year.

• HashiCorp has reported its fiscal 2024 fourth-quarter earnings, surpassing expectations with $156 million in revenue, signaling a 15% year-over-year growth.
• The company has shown strong overall performance in the context of a challenging economic landscape, indicating potential recovery signs in the market.
• The non-GAAP remaining performance obligations also reported a growth of 21% year-over-year, reaching $483 million, reflecting continuous demand for its offerings.

• Lumentum Holdings recently released its second-quarter fiscal year 2025 earnings, presenting a blend of strong performance in certain segments and ongoing challenges in others.
• Led by CEO Alan Lowe, who has announced his retirement, the company highlighted key financial results and strategic initiatives amidst a backdrop of leadership transition.
• In the second quarter, Lumentum exceeded the high end of its guidance range for both revenue and earnings per share.

• Macy’s Inc.’s fourth quarter 2024 results reflect a mixture of strategic advancements and continued challenges within a shifting retail landscape.
• First, the positive aspect of Macy’s strategy comes through its “Bold New Chapter” framework, which focuses on enhancing customer experiences, optimizing store operations, and improving merchandising and digital capabilities.
• This plan is seemingly paying off as Macy’s achieved a 0.2% year-over-year increase in comparable sales, marking its best performance in 11 quarters.

• Daihatsu Diesel Mfg (6023 JP) is down sharply today – much more than indices – as autos/tech fall on US auto tariffs. There may be some GPIF unwinds as well. 
• A reminder: Despite the name, Daihatsu Diesel is not an auto name, is growing, has a big order book, and minimal direct exposure to the US. 
• The Tender settles today. The 8% overhang from Tendered-But-Unsold Shares is an opportunity, not a burden, at 7.2x ex-cash PER.

• Analog Devices, Inc. (ADI) reported its financial results for the first quarter of fiscal year 2025, showing better than-anticipated performance despite prevailing macroeconomic and geopolitical challenges.
• Revenue reached $2.42 billion, surpassing the midpoint of its outlook, although this marked a 4% year-over-year decline.
• When adjusted for an extra week in the comparable period last year, sales represented a 4% year-over-year increase.

• In this insight, we provide the top 10 stocks picks and key catalysts in the Korean stock market for the two weeks starting 31 March.
• The top 10 picks in this bi-weekly include Orion Holdings, Hyundai Wia, KEPCO KPS, Samsung Electronics, KT, Emart, CJ Logistics, APR, Doosan Enerbility, and HD Hyundai Marine Solution.
• The biggest near-term negative catalyst on the Korean stock market remains tariffs. The final legal outcome on President Yoon Seok-Yeol is expected to be made by the end of April.

• Hygeia Healthcare Group (6078 HK) reported revenue growth of 9% YoY to RMB4,446 million, mainly driven by a 11% YoY growth in hospital business.
• Hygeia’s gross profit margin contracted 170bps YoY to 29.9%. Net profit decreased 13% on higher finance cost despite of income tax expenses being lower.
• Accelerated organic growth and strengthening of margins are crucial to boost valuation.

• MNSO reported C4Q24 rev.1.6%/2.0%, and non-GAAP EBIT 3.4%/2.0% below our est./cons.. What concerns us more is the quality of the growth;
• In our view, MNSO’s slow same-store-sales-growth (SSSG), overseas investment, and Yonghui’s integration haven’t fully reflected in the price;
• We cut the TP to US$16 and maintain the SELL rating to reflect slower profit growth. The stock trades at 14x 25E P/E vs. a 12% 3 Yr. NI CAGR

• Since its IPO back in 2007, Lululemon always posted double-digit revenue growth every single year.
• While there was plenty of skepticism throughout 2024, they managed to eke out double digit growth last year.
• But 2025 topline guidance of 5-7% implies the era of persistent double digit growth regardless of the economy is likely behind us!

• Innova Captab (1605221D IN) has commissioned a new 11-acre manufacturing facility in Jammu, with capacity for 10.7 bn tablets and 562 mn LVP/respules.
• The plant adds new dosage forms and therapy areas (Penicillin, Penum) and enables strategic domestic-export capacity balancing, with potential ROIC >20%.
• This is not just a capacity bump, it positions Innova for premium exports, higher utilization, and long-term revenue scale-up to INR 14–16Bn from Jammu alone.

• Cost-saving initiatives and divestment – Q1-3 FY3/25 results indicated continued traction for Treatment service in the Americas with 8.6% sales growth, but Product rental sales grew 0.6% YoY (-2.4% YoY under constant currency).
• Operating losses are narrowing YoY, with the positive impact from cost reduction initiatives at Head Office costs as well as R&D.
• We view the announcement to divest the 63.6%-owned subsidiary LeyLine GmbH as a positive surprise, as this will assist in narrowing operating losses further YoY into FY3/26. 

• DeepSeek app revolutionizes smart vehicles with advanced technology for a seamless driving experience and enhanced safety features.
• Primarius enhances EDA consolidation in China through the acquisition of Actt, accelerating innovation and growth in the semiconductor industry.
• SMIC experiences record revenue growth in 2024, but sees a 23% decline in profit, highlighting the challenges faced by the company in a competitive market. Trend Micro warns of AI security risks and ‘grandma prompt’ threat at the AI Expo 2025. Uni-President Group strengthens e-commerce presence through strategic acquisitions and investments in Yahoo Taiwan and PChome Online.

• On March 25, 2025, Imunon, Inc. (IMNN) held a conference call to discuss the finalized protocol for a Phase 3 clinical trial of IMNN-001 in patients with newly diagnosed ovarian cancer.
• The study will mirror the Phase 2 OVATION 2 trial that reported benefits in both progression-free and overall survival.
• It will initially focus on those patients who are positive for homologous recombination deficiency (HDR) positive, including BRCA1 and BRCA2 mutations.

• Jiangsu Hengrui Medicine (600276 CH) and Merck entered into an exclusive license agreement for HRS-5346, an investigational oral small-molecule drug. The collaboration positions Merck to challenge two other pharma giants.
• Hengrui has granted Merck exclusive rights to develop, manufacture, and commercialize HRS-5346 worldwide for an upfront payment of $200M. Hengrui is also eligible to receive milestone payments up to $1.77B.
• Hengrui reported strong 19% YoY revenue growth during 9MFY25 to RMB 20B, while profits rose 6% YoY to RMB 5B. The company will report full-year 2024 result on March 31.

• Transformers & Rectifiers (India) Ltd (TRIL IN)  is a prominent player in the manufacturing of transformers and reactors with the largest private sector facility in India producting diverse product range
• With three transformer manufacturing facilities, the company has embarked on a capex spree, with planned additions of ~30,000-35,000 MVA. 
• Taking about forensics, the company has faced concerns with regarding liquidity, issuance of a stop-deal notice and stop payment by a major customer, write offs, etc.

• Tesla’s highly anticipated trial launch of its Full Self-Driving (FSD) system in China has suffered a setback, as some users report not receiving the feature update due to a delay in regulatory approval.
• Tesla China said Monday that it is working to secure government approval for both software and hardware under new national guidelines issued by China’s Ministry of Industry and Information Technology and the State Administration for Market Regulation.
• The company said the trial will resume once all preparations are complete.

• Walgreens Boots Alliance has seen their stock price decimated over the last decade due to competition from E-commerce retailers like Amazon.
• Sycamore Partners is taking Walgreens Boots private in a $24 billion leveraged buyout, their first foray into the healthcare sector.
• Major private equity firms have been cautious of retail buyouts due to potential bad publicity and shifting priorities towards other investments.

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• The Wendy’s Company reported its fiscal 2024 fourth quarter and full-year results, highlighting a range of strategic initiatives and financial metrics.
• The company experienced a 5.4% increase in global system-wide sales on a constant currency basis during the fourth quarter, driven largely by same-restaurant sales growth in the U.S. and internationally.
• This was bolstered by innovative menu offerings and strategic partnerships, such as the collaboration with Paramount on SpongeBob’s 25th anniversary, which contributed significantly to sales.

• US and China are fiercely competing in the development of humanoid robots, with China’s DeepSeek V3 setting new standards in AI technology on Apple’s Mac Studio.
• A Dell executive cautions against the hype surrounding AI, emphasizing the critical need for a strategic approach and proposing a two-question reality check at the AI EXPO 2025.
• Vietnam responds to US trade surplus and tariff concerns by reducing tariffs and approving StarLink, showcasing the country’s efforts to address economic challenges.

• Qualys, Inc., a pioneer in software-as-a-service (SaaS) security, recently shared its fourth-quarter 2024 financial results and strategic updates, marking its 25th anniversary.
• The company’s CEO, Sumedh Thakar, emphasized the transformation and rebranding efforts that have strengthened Qualys’ position in the cybersecurity sector.
• Their platform, initially focused on vulnerability scanning, has evolved into a comprehensive risk analytics and quantification solution, leveraging AI to provide an integrated risk management workflow for customers.

• Brad Jacobs’ company QXO acquired Beacon Roofing for $11 billion in all cash deal
• Beacon Roofing is a distributor specializing in roofing and waterproofing products.

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• Rava has enlisted Blackstone MDs to spearhead growth in Japan, highlighting their intent to expand operations in the region.
• GreenFort and Gaw have partnered to explore land lease opportunities in Australia, with a focus on showcasing their collaboration on MTD TV.
• SC Capital, based in Singapore, has successfully closed their sixth APAC fund at $900M, demonstrating their commitment to making opportunistic investments in the region.

• Consumer discretionary wallets for alcoholic beverages are less than 2% and affected by economic pressures
• Gen Z is moderating their alcohol consumption but still engaging in zebra striping behavior
• Socializing dynamics are shifting towards more at-home and third space occasions, leading to the rise of RTDs and diverse formats in the industry

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• The proposed privatisation price for ENN Energy (2688 HK) appears reasonable, which is estimated to be 1.73x P/B and 11.5x PER on a 12-month forward basis. 
• The valuations are both at a good premium over the average since 2024. ENN Energy is also being put at the top of the sector’s PER range. 
• Scheme shareholders will hold new H-shares of ENN Natural Gas (600803 CH), which historically has a more volatile earnings record, but its A-share has been doing well. 

• 25,000 people attended Nvidia sessions, making it one of the busiest single company shows
• Initial disappointment at keynote, followed by renewed enthusiasm after investor Q&A and show attendance
• Disillusionment with lack of new AI advancements and repeated demos at Nvidia booth, feeling like a cult atmosphere

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• In the past week, one of the biggest stories in Korea has been the Hyundai Motor Group’s mega $21 billion investment in the United States.
• There is a real concern that Hyundai Motor may need to raise external capital to fund its US investments/share buybacks/dividends in 2027/2028.
• Hyundai Motor (005380 KS) remains one of the most undervalued global auto companies. It is trading at P/E of 4.7x in 2025 and 4.5x in 20026. 

• PDD Holdings, Inc. presented its financial results for the fourth quarter and full fiscal year of 2024, showcasing a strategy focused on high-quality development and ecosystem advancement.
• The company reported stable financial performance in the last quarter, closing with a revenue increase to RMB 110.6 billion, a 24% year-over year gain.
• For the entire year, revenues climbed 59% to a total of RMB 393.8 billion, marking a moderation from previous growth rates.

• Chinese EV giant BYD has kicked off 2025 with an aggressive push that’s shaking up the global electric vehicle landscape.
• From launching EVs that can charge in just five minutes to a soaring share price and record sales, BYD is not just catching up with Tesla — it’s pulling ahead on nearly every front.
• In recent weeks, BYD’s stock surged to a record high following the announcement of its ultra-fast-charging Super e-Platform.

• Altria Group reported its fourth quarter and full-year 2024 earnings with several noteworthy developments.
• Financially, the company delivered strong results, primarily supported by its core tobacco operations.
• Altria grew its adjusted diluted earnings per share (EPS) by 3.4% for the full year, maintaining a trend of returning substantial capital to shareholders through $10.2 billion in dividends and share repurchases.

• While Shenzhen International (152 HK)‘s FY24 result is at the low end of the positive profit alert range, its 2H24 net profit has still grown by 22.7%. 
• Better outlook at Shenzhen Expressway (548 HK) and margin improvement for logistics hubs will drive FY25. Upside will come from further gains at South China Logistics Park. 
• SZI’s valuations of 5.9x PER, 8.4% yield, and 0.5x P/B for FY25F are attractive. As more deals are sealed to realise its asset value, its P/B discount will narrow.

• Foxconn is exploring a potential partnership with Mitsubishi Motors to expand into markets in ASEAN and Oceania regions.
• Experts from Taiwan and the US are discussing cutting-edge advancements in AI at the AI Expo 2025.
• Foxconn is revolutionizing traditional manufacturing methods with their innovative approach, as highlighted in a SEMI Country excerpt.

• Wuxi Biologics (2269 HK) has reported 2024 result, with revenue growing 10% YoY to RMB19B and net profit increasing 11% YoY to RMB4B. Revenue from non-COVID business increased 13% YoY.
• Total backlog reached $18.5B as of December 31, 2024, including $10.5B service backlog and $8.0B upcoming potential milestone fees, while the total backlog within three years stood at $3.7B.
• Wuxi Biologics guided for 12–15% YoY revenue growth for 2025. Revenue from continuing operation (excluding revenue from Ireland Vaccines) is expected to grow 17–20% YoY in 2025.

• Micron Technology’s recent performance has sparked mixed reactions across Wall Street, as investors try to reconcile strong product innovation with weak near-term financial guidance.
• The company’s fiscal first-quarter results beat Wall Street expectations, with adjusted earnings of $1.79 per share, slightly above the consensus of $1.76.
• Revenue stood at $8.7 billion, in line with projections.

• Kuaishou (KS)’ operating margin improved to 10% in 2024 versus 4% in 2023.
• Online marketing revenue increased by 20% and GMV increased by 17% in 2024.
• We conclude an upside of 104% for the next twelve months.

• Henlius has made a profit for the second year in a row.However, some investors are not satisfied with the quality of net profit growth in 2024 due to concerns behind.
• The implementation of H Share Full Circulation has a positive impact on financing ability, shareholder returns, market valuation of Henlius.The next goal is to be included in HK Stock Connect
• Lin Lijun’s continuous increase in Henlius holdings is an important reason for shares surge after privatization failure.Lin may keep pushing up share price so as to exit at higher price.

• AbbVie Inc. concluded 2024 with robust performance metrics, highlighted by a notable return to growth, despite significant challenges such as the $5 billion U.S. Humira sales erosion due to biosimilar competition.
• The company reported a total revenue of $56.3 billion, surpassing its initial guidance by over $2 billion, with adjusted earnings per share recorded at $10.12, which is $0.49 above their previously forecasted midpoint.
• On a segmented basis, AbbVie’s “ex-Humira” platform, consisting primarily of Skyrizi and Rinvoq, demonstrated substantial growth.

• Oracle Corporation’s third quarter fiscal year 2025 earnings report indicated significant strategic advancements and robust financial performance, balanced by some challenges.
• On the positive side, the company reported a record $48 billion addition to its backlog, bringing the remaining performance obligations (RPO) to $130 billion, which represents a 63% increase year-over-year.
• This growth suggests strong demand for Oracle’s cloud services, which is a key positive indicator for future revenue streams.

• Kunlun Energy (135 HK)‘s net profit grew 7.9% in 2H24, accelerating from 2.6% in 1H24. It is encouraging to see the dividend payout ratio increase by 2pp YoY.
• An increase in the adoption of the residential price linkage system is positive for the dollar margin, while the distortion from E&P expiry will no longer impact earnings. 
• With net cash equals HK$2.56/share, or 31% of the share price, such financial strength is unmatched by peers. Its PER valuations are also inexpensive.

• Accenture delivered better-than-expected results for the second quarter of fiscal 2025, but the stock took a steep hit as investor concerns mounted over potential fallout from U.S. federal cost-cutting initiatives.
• The consulting giant posted earnings of $2.82 per share, just above the analyst consensus of $2.81, and reported revenue of $16.7 billion, surpassing expectations of $16.6 billion and marking a 5% year-over-year increase.
• However, despite this beat, the company’s shares plunged 9.4% to $292.72, logging their worst single-day performance since June 2013 and becoming the S&P 500’s worst performer on the day.

• Sage launched its Copilot AI assistant automating accounting, HR and payroll tasks. This aims to roll out across all products by 2026. Sage plans to integrate AI agents into workflows. 
• The Sage Network platform connects accounting systems across businesses, facilitating automated workflows and real-time data integration. It enhances Sage Copilot’s capabilities and creates opportunities for migration to cloud-based solutions.
• Sage’s resilient business model, supported by subscriptions, positions it well in a challenging market. The company is focused on expanding its customer base through AI-powered solutions.

• Jabil Inc. reported strong financial results for its second quarter of fiscal year 2025, delivering $6.7 billion in revenue and highlighting a year-on-year growth of 3% when adjusted for divestitures.
• Core operating income was reported at $334 million, with a core operating margin of 5%.
• On a GAAP basis, the company reported operating income of $245 million and diluted earnings per share of $1.06.

• MPLX, the midstream energy company, reported its fourth quarter and full-year 2024 results, highlighting strategic progress and robust financial performance.
• In 2024, MPLX achieved a full-year adjusted EBITDA of $6.8 billion, marking an 8% rise compared to the previous year, underpinned by strong operational performance across its renamed business segments: Crude Oil and Product Logistics and Natural Gas and NGL Services.
• This marks the fourth consecutive year of mid-single-digit adjusted EBITDA growth, with a compound annual growth rate of 7% since 2021.

• Warburg Pincus and Wide Creek JV have acquired GreenFort, a Korean logistic asset, marking their second investment in the country.
• Gaw Capital is set to discuss a joint venture with MTD TV for the development of 1,200 homes in an upcoming interview on Wednesday.
• Mitsubishi Estate has sold its stake in a Shinjuku office tower to a J-REIT for $190 million, continuing its strategic real estate transactions.