Equity Bottom-Up

• China announced game approval for the March 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. We see pick up in approval rate this month.
• Both Tencent and Netease received approval for one game. In addition, Kingsoft received approval for its legendary Sword Heroes series.

• DeepSeek is a significant factor driving global chip demand with implications for various industries including automotive.
• Tesla and Tata are in talks regarding the sourcing of EV components, highlighting the growing importance of electric vehicles in the market.
• Tim Cook’s visit to China to discuss collaboration with DeepSeek signals potential advancements in the supply chain and technology sectors.

• Investors should keep a close eye on Adani’s execution timeline, the impact on valuations in the sector, and the fundamentals of existing players in the C&W industry. 
• While Adani’s entry may bring some disruption, the sector’s strong growth prospects and the resilience of leading players suggest that there is still value to be found. 
• In the end, long-term success in this industry will depend on a combination of strategic vision, operational excellence, and the ability to adapt to changing market dynamics.

• StoneCo Ltd. recently shared its fourth-quarter and full-year 2024 earnings, demonstrating a period marked by robust strategic execution and notable financial outcomes, despite facing macroeconomic challenges.
• The company’s strategy is focused on three core objectives: leadership in the MSMB (micro, small, and medium businesses) market, enhanced client engagement, and scalable platform growth.
• In 2024, StoneCo’s MSMB operations saw a 15% year-over-year increase in card total payment values (TPV), although this fell short of guidance due to the rapid adoption of PIX, the Brazilian instant payment system, which continued to encroach on traditional debit and cash transactions.

• NVIDIA GTC 2025 Last Week — Delta Electronics Expands Role in Nvidia Ecosystem Showcasing AI-Centric Power Solutions
• Foxconn’s Huge EV Bet Pays Off: Key Mitsubishi Win Could Spark Additional Automaker Deals to Come 
• Semiconductors. Key Indicator Updates, 2024 In Review, and 2025 Forecasts 

• Hansoh Pharmaceutical Group (3692 HK) reported 33% YoY net profit growth to RMB4.4B on 21% YoY revenue growth to RMB12.3B in 2024. Oncology revenue jumped 32% YoY to RMB8.1B.
• Revenue from innovative drugs zoomed 38% YoY to RMB9.5B and its proportion to total revenue increased to 77.3% in 2024 from 67.9% in 2023.
• In 2024, three key innovative drug candidates entered the phase 3 clinical stage for the first time. Hansoh will continue to focus on R&D of innovative drugs and internationalization strategy.

• Revenue increased by 10.7% YoY to JPY22.2bn, driven by inbound tourism recovery and new restaurant openings.
• Operating profit declined 20.5% YoY to JPY1.3bn due to higher SG&A expenses from overseas expansion and wage increases.
• Gross profit margin decreased to 69.1%, while SG&A ratio rose to 63.1%, impacting operating profit margin.

• We believe the stock’s upside is very limited after two buy rating this year.
• In 2024, total revenue grew by 29% and total automobile sales grew by 41%.
• The gross margin of automobile improved more than one percentage point.

• PDD reported C4Q24 top line 1.1%/(6.1%) vs. our est./cons. and non-GAAP operating income (5.4%)/(5.6%) vs. est./cons., 
• PDD rose to prominence by optimizing the value chain built/inherited by Alibaba/eBay in China and Amazon/eBay in US. 
• As these two “bonuses” coming to an end, PDD must build its own. While growth shall normalize, China low tier cities and global developing markets shall sustain its growth. 

• DocuSign, Inc. delivered a noteworthy performance in the fourth quarter of Fiscal Year 2025, underpinned by both strategic pivots and operational efficiency gains.
• The company reported a revenue of $776 million, marking a 9% year-over-year rise, culminating in an annual revenue of $3 billion—an 8% increase over the prior year.
• This growth trajectory underscores a positive momentum, primarily fueled by the launch of Intelligent Agreement Management (IAM), a comprehensive AI-driven platform focused on transforming how businesses manage agreements.

• In 4Q24, Meituan’s revenue growth rate was 20% YoY with all businesses rising.
• The operating margin improved to 8.8% in 4Q24 versus about zero in 4Q23.
• We set an upside of 61% and a price target of HK$270. Buy.

• China Merchants Port (144 HK) may potentially play a role in CK Hutchison Holdings (1 HK)‘s port portfolio disposal should the mainland government want to step in. 
• While CMPH’s size is small relative to the port portfolio, its parent China Merchants Group and sister China Merchants Bank H (3968 HK) can easily facilitate such a transaction.
• Having the portfolio in the hands of mainland company is desirable to the Chinese government. Even if CMPH has no role, its 7.6x PER and 6% yield are attractive.

• TSMC: +20% Premium; Wait for Higher Premium Before Shorting, ADR Headroom Has Increased Further
• UMC: -1.6% Discount; Wait for Lower Discount Before Going Long
• ASE: -0.1% Discount; Discounts Are Good Level to Long the Spread Given Maxed Headroom

• Micron this week reported revenues of $8.1 billion, down 8% QoQ but up 38% YoY, and at the top end of the guided range
• Micron is expecting to reach an annual run rate of $7.8 billion by Q425. Wow!
• NAND is headed for yet another downturn after six quarters of sequential growth. 

• Given new policy recommendations, it is only a matter of time before HPV vaccination is included in the national immunization program, which is detrimental to HPV vaccine companies.
• MNCs have seen a inflection point in performance growth in 2024 in China. Although VBP/NRDL negotiation are negative factors, is it also due to any consideration to withdraw from China?
• Fosun Pharma has agreed to sell its entire stake in United Family Healthcare to Calcite Gem Investments Group for US$124.1 million. We shared our views about the deal.

• ENN Energy (2688 HK) has suspended trading. The possibilities include privatisation, third-party offer, increase in stake by ENN Natural Gas (600803 CH), and a change in control. 
• It trades on 1.16x 12-month forward P/B, vs. 5-year average of 2.42x and 1.31x since 2024. Given the lower forward ROE, it is difficult to return to the 5-year average.
• For PER, it should be higher than China Gas Holdings (384 HK) but lower than CR Gas (1193 HK). At 10.8x (average of the two), it equates to HK$74.26.  

• Mitsubishi Motors plans to outsource EV production to Foxconn, signaling the most significant commercial validation of Foxconn’s MIH EV platform to date.
• While Foxconn’s AI server manufacturing is currently the company’s strongest growth driver, its EV strategy is increasingly gaining credibility as a second long-term pillar.
• Foxconn — Structural Long. We see depressed share price as buying opportunity. Mitsubishi contract win increases the probability for additional major OEM production partnership wins this year for Foxconn.

• Fu Shou Yuan had a sharp decline in performance in 2024. The performance in recent years has often missed management guidance, which makes us question the integrity of management.
• The “crisis” of Fu Shou Yuan has evolved from a short-term headwind to the failure of its long-term business model. Good dividends cannot conceal the problem of gloomy outlook.
• Valuation logic is undergoing a transformation – from a leading company with “high growth/stable cash flow” to a struggling company with “weak growth/questionable profit model”. 2025 performance may remain lower-than-expected.

• Workman’s slower same-store growth can be blamed on its shift to mass market fashion and the choice of Workman Joshi as a banner, putting off male customers. 
• The outdoor and workwear retailer has now acknowledged the misstep and will rebrand the chain as Workman Colors while adjusting merchandise back to more apparel basics.
• This will take time to implement but could mean a return to form for the apparel retailer.

• MINISO Group Holding (9896 HK) committed to expanding in the U.S. with plans in place to mitigate the impact of U.S. tariffs on Chinese goods via its diversified supply chain strategy.
• Key investor concern: Slower store expansion in Mainland China in 2025 may temper near-term sales and profit growth. Capital intensive overseas expansion could dilute potential returns.
• Miniso (MNSO US)’s accelerating shift toward higher-margin IP co-branded lifestyle products—a strategy poised to sustain double-digit revenue growth, makes it an attractive investment play in the lifestyle retail space.

• Tencent reported C4Q24 revenue, IFRS op. profit, and IFRS net income in-line, (5.3%), 6.0% vs. our est. and 2.1%, (12.6%), 5.3% vs. cons. 
• We shifted our game TOP PICK from Tencent to NetEase on January 16 2025, due to pipeline gaps. 
• We reiterate our BUY rating and raise TP to HK$545 on Tencent. We expect game pipeline to fill the gap with the launch of two blockbusters in C3Q25.

• Japan’s top defense and aerospace contractor is being rerated to account for the limits on relying on the U.S. for defense in an alarming national security environment.
• A reasonably optimistic scenario brings MHI’s P/E ratio down to 22X in FY Mar-28, by which time Japan’s defense spending is scheduled reach 2% of GDP.
• The Trump administration wants Japan to spend more, but getting the budget through the national Diet is difficult enough as it is. 

• All proposals at Samsung Electronics’ March 19 shareholders’ meeting were approved, despite opposition recommendations from Sustinvest, a Korean proxy advisory firm.
• Sustinvest had recommended voting against outside director candidate Kim Jun-sung (Agenda 2-1-1) and inside director candidate Jeon Young-hyun (Agenda 2-2-1).
• The approval of all agenda items indicates strong shareholder support for Samsung’s current management direction despite some governance concerns raised by proxy advisors.

• Top Glove Corp (TOPG MK) achieved 70% YoY revenue growth in 1HFY25, while net profit stood at RM 58M.
• Management remains bullish on the U.S. market with North America region (23% of revenue) witnessing 13% QoQ sales growth in 2QFY25.
• ASP were up 3–4% across product categories. Top Glove expects the ASP to further strengthen.

• The Hong Kong earnings season enters its final week with at least 17 Hang Seng Index companies reporting their 2024 results and announcing dividends.
• The proportion of companies reporting in the coming week and the week after is significant at an index level, with notable weightings in the HSI, HSCEI, and HS TECH indices.
• Opportunities to profit from price movement around earnings are manifold and include event-focused trading, statistical arbitrage, hedging, and capitalizing on changes in dividends and implied volatility.

• Robert Half International’s fourth-quarter 2024 earnings results reveal a mixed performance, reflecting both challenges and opportunities.
• The company reported global enterprise revenues of $1.382 billion, marking a decline of 6% from the previous year on a reported basis.
• The net income per share for the quarter was $0.53, significantly down from $0.83 a year ago.

• LICHF reported PAT growth of 23% YoY in Q3FY25 led by benign credit cost. Credit cost was negative (-44cr) in Q3FY25 vs INR 435cr (0.2%+ of AUM) in Q3FY24.
• Stage 1 assets improved to 93.25% of AUM vs 93.09% QoQ. NIM continues to be stable at around 2.7%, similar to last quarter, making the earnings predictable now. 
• Led by low credit cost, LICHF is on track to achieve FY25 PAT as per our estimate of INR 5400cr+. This implies LICHF is currently trading at below 6x P/E.

• Mohawk Industries’ fourth-quarter results showed a mixed performance amid ongoing industry challenges.
• The company reported net sales of approximately $2.6 billion, consistent with the previous year, although this included the benefit from two additional shipping days.
• Positively impacting the results were sales initiatives, restructuring efforts, and productivity improvements.

• Illinois Tool Works Inc. (ITW) completed 2024 on a strong financial footing, achieving record results in several key performance areas.
• For the fourth quarter, the company reported a modest decline in total revenues by 1.3%, but a robust operating margin increase to 26.2%, an improvement of 140 basis points, driven primarily by enterprise initiatives.
• The company’s ability to expand operating income by 4% in spite of lower revenue demonstrates effective cost management and strategic execution.

• The financial results for Boston Scientific’s fourth quarter and full-year 2024 highlight both strengths and challenges faced by the company.
• Achieving robust growth in several segments, the company reported operational sales growth of 23% for the quarter and 18.5% for the year, with organic growth hitting 20% and 16% respectively.
• These figures surpass their upper guidance limits, indicating strong market performance, driven primarily by the early U.S. adoption of the FARAPULSE system and other key products.

• Beike reported C4Q24 revenue beat our estimate/consensus by 8.4%/7.4%, non-GAAP OP miss our estimate/consensus by 37.5%/21.6%, due to front-loading expansion cost.
• We expect Beike to take 2-3ppt of market share in a rebalancing property market in 2025. 
• We keep the stock as BUY and keep TP at US$25.

• Deckers Brands delivered a robust performance in its third quarter of fiscal 2025, signaling both high levels of growth and notable profitability.
• The company’s revenue increased by 17% compared to the previous year, reaching $1.83 billion, with significant contributions from the UGG and HOKA brands.
• The gross margins improved to 60.3%, and diluted earnings per share rose by 19% to $3.

• EPAM Systems Inc. reported its fourth quarter and full-year 2024 performance showing mixed results, noting both achievements and challenges.
• During the fourth quarter, the company experienced revenue growth of 7.9% on a reported basis, including the effects of recent acquisitions, NEORIS and First Derivative.
• On an organic constant currency basis, revenue grew a modest 1% year-over-year, marking a return to organic growth for the first time since early 2023.

• Fortive Corporation recently presented their fourth-quarter and full-year results, highlighting a combination of strengths and challenges that investors might consider when evaluating the company’s investment potential.
• Positive aspects of Fortive’s performance include a strong track record of financial accomplishments in 2024.
• The company reported better-than-expected core growth, adjusted earnings, and free cash flow, capping a robust year.

• Alphabet Inc., Google’s parent company, has officially announced its largest acquisition to date, agreeing to purchase cybersecurity startup Wiz for $32 billion in cash.
• The move comes after Wiz rejected a $23 billion offer from Alphabet last year, opting instead to explore an IPO.
• However, with the regulatory landscape shifting under U.S. President Donald Trump’s administration, Wiz’s leadership reconsidered the deal, ultimately securing an extra $9 billion from Google in less than a year.

• The sugar tax in Indonesia is plan to be introduced July this year, around Rp 1500/liter for sweetened packaged drinks including soft drinks, bottled tea.
• Mayora Indah (MYOR IJ) tea product is Teh Pucuk Harum, that is widely sold in hypermarts and convenience stores, while Unilever Indonesia (UNVR IJ) no longer owns Teh Sosro. 
• Expecting sentiment to be better, Short Mayora and Long Unilever. 

• We believe the key highlight of Q1-2 FY7/25 results is OPM expansion YoY from 4.7% to 6.6%.
• The company aims to secure high-margin projects aligned with its strategic aims while maintaining business investment in new hires to grow.
• Business expansion via strategic alliances is bearing fruit with Itochu Corporation (8001), with other initiatives being unveiled in the food and logistics sectors to expand and diversify the solutions portfolio and accelerate growth. 

• Autodesk Inc. is at the center of a high-stakes battle as activist hedge fund Starboard Value LP moves forward with a proxy fight, citing financial underperformance and management credibility concerns.
• After months of behind-the-scenes pressure, Starboard has decided to nominate a minority slate of directors to Autodesk’s board, setting the stage for a potential leadership shake-up.
• The move comes after a series of turbulent events at Autodesk, including an accounting investigation that led to a CFO replacement, a shift in the company’s sales model, and a recent decision to cut 9% of its workforce.

• Edwards Lifesciences Corporation recently reported its financial results for the fourth quarter and the full year of 2024, providing an insight into its strategic performance and outlook.
• The company, solely focused on structural heart solutions after divesting its Critical Care segment in the third quarter of 2024, recorded robust financial performance, consistent with its expectations and strategic focus.
• For the full year 2024, Edwards Lifesciences reported a 9% increase in sales, reaching $5.4 billion.

• Japan System Techniques (hereafter, the Company) announced its Q3(9M)
• Key consolidated figures net sales of JPY 20,549 mn (+10.9% YoY), operating profit of JPY 2,041 mn (+26.5% YoY), ordinary profit of JPY 2,116 mn (+28.4% YoY), and profit attributable to owners of parent (hereafter, net profit) of JPY 1,417 mn (+28.9% YoY).
• Higher sales and profits in the DX&SI business and Package business contributed in Q3 earnings growth.

• Whether Intel can achieve Process or Foundry leadership in a credible timeframe is something Mr. Tan has relatively little control over in the short term.
• His most pressing challenge will be to address the corporate culture of entitlement that’s rife throughout the company, starting with the BoD
• Measure his success by the number of high profile resignations we see in the coming months. Those who created Intel’s problems cannot be the ones to fix them. 

• Huang throws cold water on a potential TSMC led deal for INTC fab business, saying he ‘wasn’t invited’ to any discussions. 
• Micron guidance beats consensus which should be a positive for related names such as Micronics. 
• CoWoS and advanced packing maker Shibaura Mechtronics raised guidance on Wednesday ahead of street, yet stock still trading around recent lows points to further upside.

• Ambuja Cements (ACEM IN), established in 1983 by traders Narotam Sekhsaria and Suresh Neotia, leveraged strategic foresight to become a premier Indian cement giant within the diversified Adani Group.
• In 2022, Adani acquired Ambuja Cement at INR 385/share, valuing it at INR 49,620 crore ($6.4 billion), at EBITDA/ton levels (INR900-INR1,000) similar to the company’s current performance.
• Ambuja Cement is strategically positioned to achieve a substantial 44% increase in its cement production capacity by FY28, reaching a total of 140 MTPA from the current 97 MTPA.

• Watsco is North America’s largest distributor of HVAC equipment, serving as a crucial link between manufacturers and contractors.
• They offer a wide range of equipment and parts, technical expertise, and value-added services to their contractor customers.
• Watsco’s transformation from manufacturer to distributor in 1989 led to significant growth, with consistent annualized shareholder returns over the years.

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• Bajaj Finance Ltd (“BAF”) reported a strong Q3FY25 led by good volume growth and AUM growth. It saw highest ever new loans at 12.06mm. AUM growth was INR 24119cr. 
• Despite elevated credit costs for peers, BAF has been relatively insulated and reported steady asset quality. ROA and Opex were also steady at around 4.5% and 33%, respectively.
• In line with BAF’s long-range strategy, BAF is increasingly adopting AI to improve productivity. As part of this, BAF unveiled a BFL 3.0 FINAI company.

• Micron’s strong HBM and Data Center growth has nearly offset low revenues in the remainder of the company’s business.
• This HBM growth depends heavily upon continued strength in hyperscale data center AI CapEx
• Micron outlined means to maintain stability in its industry, but China semiconductor goals are in conflict with these measures

• The largest REIT in Asia, with enough liquidity for most funds. Has a great set of neighborhood malls across Hong Kong enjoying recurring income from food & beverage, restaurants, etc
• Suffered during the COVID-19 pandemic but DPU has started growing again. Rights issue a misstep but the leverage is now acceptable. New Blackrock CIO bodes well for M&A. 
• REIT trades at 7% yield vs 4% historically. Essentially an interest rate bet. Will probably be included in the Stock Connect program soon, expect an announcement on 19 April. 

• Taiwan server revenue and shipment forecast for 2025 is expected to increase, reflecting growth in the IT industry.
• Japanese government plans to invest $1 billion in Space Strategy Fund projects, highlighting a push for innovation and exploration in the aerospace sector.
• SoftBank’s $6.5B Ampere acquisition is a strategic move in the AI chip market with Arm, positioning the company for future technological advancements.

• PDD’s total revenue grew by 24% YoY in 4Q24, with advertising up by 17% YoY and commission up by 33% YoY.
• The gross margin declined YoY, but we still believe PDD has advantage in the low price market.
• We conclude an upside of 71% and a price target of US$215 for the next twelve months.

• Total revenue increased by 34% and total sales volume increased by 32%.
• The operating margin improved to 4% in 2024, compared to 2% in 2023.
• We conclude an upside of 51% and a price target of HK$28.00. Buy.

• The growth rate of total revenue came back to two digits in 4Q24.
• The growth rate of game revenue reached 20% YoY in 4Q24.
• The gross margins of all business lines improved YoY in 4Q24.

• Historical results as expected with a sales and profit decline
• The first 2 months of the year show a positive trend
• Market reaction to the results should highlight low investor expectations 

• Anta Sports Products (2020 HK)‘s strong FY24 result is masked by one-offs and Amer Sports (AS US). Without them, its earnings would have declined by an alarming 5.4% in 2H24. 
• Its ANTA and FILA brands have seen YoY operating profit drop in 2H24, with heavy margin pressure. Their revenue growth has also showed meaningful slowdown sequentially.
• The 18.6x PER for FY25 is at a 50% premium to the sector, but the market expectation of 15% growth looks challenging. The YTD rally has opened room for profit-taking.

• The latest TSMC taking over Intel Foundry was on 13 March and involved joint investments by AMD, Broadcom, Nvidia, Qualcomm. Complicated.
• Yesterday, TSMC Board member and Taiwan Minister of National Development Paul LIU flatly denied: “such a topic has never been discussed at the board level”.
• As a result, Intel stock declined -6% yesterday. TSMC has corrected by -16% since early Feb. The stock is at average valuations, no obvious upside to Consensus.

• Adobe’s Q1 fiscal year 2025 financial results have demonstrated a robust performance, with the company reporting a record $5.71 billion in revenue, marking an 11% year-over-year increase.
• The company also achieved a notable growth in its GAAP and non-GAAP earnings per share, which rose by 13% year-over-year.
• Adobe’s results underscore the essential role its products play in the global digital economy, reaffirming its fiscal ’25 targets in light of the strong quarterly performance.

• Ownership levels in AIA Group Ltd (1299 HK) and HDFC Bank (HDFCB IN) have started to reverse from the highs. 
• SK Hynix, Meituan and Mediatek Inc all make recent gains in fund ownership, while HDFC Bank and AIA Group see closures.
• UBS in AIA Group and TT International in HDFC Bank lead the fund-level closures.

• Invesco makes investment in Korea senior living portfolio by acquiring local operator Caredoc.
• KKR, Gaw, Alyssa Partners collaborate to host forum discussing Japan multi-family housing on Wednesday.
• Thailand approves funding of $2.7B for data centers with a total capacity of 347MW.

• Dell Technologies Inc. recently reported its fiscal year 2025 fourth-quarter financial results, demonstrating a mixed performance that offers both opportunities and challenges for investors.
• The company recorded $95.6 billion in revenue for the fiscal year, reflecting an 8% increase, and achieved an operating income of $8.5 billion.
• Notably, Dell achieved a record EPS of $8.14, an increase of 10%, attributing this success to efficiency improvements and cost reductions, with operating expenses decreasing by 4% year-over-year.

• Ecolab has reported another record-setting year with impressive growth in sales, earnings, margins, and free cash flow in 2024, amid a steady organic sales growth of 4% in the last quarter.
• The firm sees consistent success in its largest and most profitable market, the United States, where organic sales increased by mid-single digits.
• Nonetheless, geographic variations persist, with other global regions experiencing low single-digit growth, affected by mixed macroeconomic trends.

• Broadcom’s stock surged following its impressive fiscal first-quarter earnings, signaling resilience in the artificial intelligence trade despite recent market volatility.
• The company reported revenue of $14.92 billion, surpassing Wall Street’s expectation of $14.62 billion, while adjusted earnings of $1.60 per share exceeded analysts’ estimates of $1.51.
• Additionally, Broadcom projected $14.9 billion in revenue for the current quarter, above the consensus estimate of $14.71 billion.

• TME’s revenue continued to grow in 4Q24, as shrinking game business became insignificant.
• The operating margin reached its historical high, which means music’s margin is high than game’s.
• We believe the stock price will be double at the end of 2025.

• TSMC: +19.4% Premium; Consider Shorting if Spread Rises Above 20%
• ASE: +0.5% Premium; Ideally Wait for Lower Level But Near-Zero Still a Long Opportunity
• ChipMOS: -0.8% Discount; Wait for More Extreme Levels; Short Interest Spiking in Local Shares

• In 4Q24, all business lines grew even faster than we expected in the preview note.
• We are confident in its revenue growth and operating margin in 2025.
• We however still believe the market overvalues its electric vehicle business.

• Change in earnings estimate directions, especially when estimates start increasing after a long period of decline, are what we call “inflections”. These, we believe, are the strongest share price catalysts. 
• We identify nine market-sectors across Asia ex Japan exhibiting upward earnings inflections. Four are from financials, two from telecoms and one each from utilities, consumer durables and industrials.
• These market-sectors are from HK/China (3), Korea (1), ASEAN (5). Financials’ domination indicates that a broader Asian macroeconomic recovery could be under way. Eight companies are primarily driving the upgrades.

• While Vesync (2148 HK)‘s net profit grew 20.1% in FY24, there is a marked slowdown in 2H24 (+7.4%) vs. 1H24 (+37.5%), suggesting increased operating pressure. 
• North American sales slowed to 10.7% growth in 2H24, from 13% in 1H24. The deteriorating financial and operating performance affirmed that privatisation is an exit opportunity.
• Its PER discount (on privatiation price) to peers has widened to 35-38%, compared with 25-30% in Dec. Its US exposure makes it unable to reap benefits from China market stimulus.

• Palantir,  the secretive US tech giant, has dropped 30% in the past month, but with a PER of over 150 times, it could well have much, much further to fall.
• In the past year, no company executives have bought shares in this firm. Plenty have sold, though. In fact, as a group, they’ve dumped $3 billion worth of the stock.
• Here’s what Palantir does, what it should earn, its current valuation – and what all of that should tell you as an investor.

• Ramelius and Spartan announce a transformational combination deal
• Deal includes 25 cents cash kicker and 0.6957 Ramelius shares for Spartan shareholders
• Top three Spartan shareholders, excluding Ramelius, support deal with combined 19% ownership stake

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• Google Diversifying from Broadcom to Mediatek for Next Generation AI Chip
• Hon Hai CEO: Clients’ U.S.-Based Tech Manufacturing Set To Expand
• Memory Monitor: Multiple Reports Indicate Rising NAND & DRAM Prices

• Li Auto (LI) reported C4Q24 revenue 2.1%/in-line vs. estimate/consensus, and non-GAAP net income is 8.4%/10.3% vs. our estimate/consensus, thanks to OPEX savings which we believe may not be sustainable
• We cut 2025 vehicle delivery estimates by 7% and slashed net income forecasts by 33% due to delayed model launches and intensified competition
• We cut LI’s TP from US$25 to US$20 and keep at SELL.

• Key Memory Names Have Rebounded; Micron and SK Hynix Lead
• NAND Flash Memory Prices to Increase; NAND Flash Pricing to Improve in 2H25E
• Memory Monitor Universe: NAND Flash Price Improvement Favors Long SK Hynix and Micron vs. Short Nanya Tech

• After dropping by half, Tokyo Electron’s share price has bounced. But it is still vulnerable to cutbacks in AI-related investments and tariff-induced recession.
• A positive scenario has net profit rising by 8% in FY Mar-26. In a negative scenario, it drops by 25%. We take the positive view.
• Innovations in manufacturing point toward a big step up in profit margins by the end of the decade. But watch out for a cyclical downturn between now and then.

• Bangkok Dusit Medical Services (BDMS TB) posted 7% rise in revenue from hospital operations in 2024 as both International and Thai patients revenue reported growth of 11% and 5%, respectively.
• EBITDA grew 7% YoY to THB26.6B on higher revenues and better cost management while net profit also rose to THB16B on lower interest cost.
• COEs, focusing trauma, heart, orthopedics, cancer, and neuro contributed 57% of hospital revenue, while their contribution to EBITDA was at 60% in 2024.

• Hyundai Motor India (HYUNDAI IN) has proposed seven related-party transactions worth over INR 31,500 crore, just months after its record-breaking IPO.
• Proxy advisors are sharply divided, with concerns around valuation, transparency, and fairness, raising governance red flags for a newly listed company.
• Despite likely approval due to promoter holding, investor trust hinges on how Hyundai communicates and ensures accountability post-IPO.

• WuXi AppTec (2359 HK) has reported 2024 result, with revenue reaching RMB39.2M, in-line with guidance of RMB38.3–40.5B. Excluding Covid-19 commercial project, 2024 revenue represents 5% YoY growth.
• The company has announced a cash dividend of RMB9.8 and a special dividend of RMB3.5 for every 10 shares. Wuxi AppTech has also proposed RMB 1B buyback plan (for A-shares).
• Based on the current backlog, Wuxi AppTech expects continuing operations revenue to resume double-digit growth of 10–15% YoY in 2025, targeting to deliver a total revenue of RMB41.5–43.0B.

• Tesla has strengthened ties with Baidu amid the US-Sino tech crossfire, showcasing the complex dynamics between the two countries.
• China achieves a breakthrough in semiconductor technology with EUV, while lawmakers propose anonymous semiconductor purchases to secure the industry.
• VCI Global’s plan to establish India’s first semiconductor wire plant in Chennai marks a significant milestone for the tech industry in the country, with Alibaba’s Tongyi Qianwen aiming to revolutionize China’s AI.

• Monster Beverage Company’s recent quarterly and full-year earnings provide insight into both the strengths and challenges faced by the company in a dynamic and competitive market.
• The company reported record quarterly net sales of $1.81 billion, reflecting a 4.7% increase over the prior year, or 7.8% on a foreign currency-adjusted basis.
• This growth was fueled by a strong performance in the global energy drink market, with particular strength in regions like EMEA and Asia-Pacific, where growth rates reached double digits.

• Okta reported a strong fourth quarter, highlighting accelerating remaining performance obligations (RPO) and current RPO (cRPO), record profitability, and robust free cash flow.
• Demand for both workforce and customer identity products was strong, with notable contributions from new offerings such as Okta Identity Governance, Privileged Access, and Identity Security Posture Management.
• The company emphasized product innovation, partner ecosystem expansion, and go-to-market specialization as key drivers of its momentum heading into the next fiscal year.

• UnitedHealth Group’s fourth quarter and full year 2024 results were characterized by resilience and strong operational execution despite significant challenges.
• Revenues exceeded $400 billion, with an adjusted earnings per share of $27.66, aligning with the company’s projections.
• Notably, the medical care ratio was 150 basis points above the initial outlook, mainly due to a mix change of the people served, a more rapid acceleration in certain high-cost medication prescriptions, and coding intensity shifts in hospitals.

• We are reiterating our Buy rating, projections and $20 price target for Lands’ End after reviewing the March catalog.
• With the March “The Power of Pretty” theme, Lands’ End has taken the next major step in creating a lifestyle driven catalog which can serve as a guide for multiple categories, offerings and looks for the Lands’ End shopper.
• Focusing on both “The Power” and “The Pretty” of many categories, the March catalog offers multiple complete looks.

• Emphasizing sales volume expansion – Q1-3 FY4/25 results indicated strong sales volume growth at 32.2% YoY, as the company continued diversifying into market sectors such as medical, recruitment and finance.
• Although prioritizing growth has meant a shift in the customer mix away from traditionally high margin brick-and-mortar in-store experiences, we believe this strategic shift is positive given their larger addressable markets.
• The company revised its FY4/25 guidance, providing greater clarity over the short term, and highlighted its medium-term expectations for sustained double-digit growth.

• A meeting with CP ALL (CPALL TB) management revealed some interesting new initiatives to drive growth as the company remains upbeat about its store expansion for 2025. 
• The company is moving towards opening larger-sized stores, with more RTE and RTD offerings and some parking and food vendors outside, which will help diversify merchandise offerings..  
• It is unclear what direction Seven & I’s restructuring will take, but looking through that, the company is trading on historically attractive valuations.

• The NHSA has issued clear instructions for VBP in 2025, including two batches of national VBP of drugs and one batch of medical consumables VBP. TCM will also be included.
• The sales growth of GLP-1s has entered a turning point, it will be far from the previously high expectations. The actual market size of GLP-1s could be only US$100 billion.
• Rapid sales growth of Efgartigimod is the key factor for Zai Lab to narrow the losses.But whether it can be breakeven relies on the decline of cost/expenses, not revenue growth.

• City Developments (CIT SP) aka CDL’s boardroom battle, framed as a family feud, grabbed media attention and overshadowed more serious, long-ignored corporate governance issues.
• Despite prolonged underperformance and founder-family control controversies, CDL’s board have failed to enact decisive reforms to restore shareholder value.
• The CDL saga exposes systemic risks in family-run, publicly listed firms where often corporate governance gets compromised and  minority shareholder interests are undermined.

• Seven & I continues to seek shareholder approval for its own path, offering not just improved efficiency but a massive ¥2 trillion buyback albeit one over a long time frame.
• This is a lot, especially when the core Seven Eleven chain in Japan is still struggling to keep up with its peers on monthly growth rates.
• But this forgets retail media which is set to become a major new income stream for CVS and, judging by forecasts, would help pay for a chunk of that buyback.

• Salesforce delivered a strong financial performance for fiscal year 2025, showcasing significant progress in its AI and Data Cloud initiatives.
• The company reported annual revenue of $37.9 billion, reflecting a 9% increase from the prior year, with fourth-quarter revenue reaching $10 billion—its first-ever $10 billion quarter.
• Subscription and support revenue grew by 10% in constant currency, indicating continued demand for its enterprise software solutions.

• Hindustan Zinc (HZ IN) is set to see significant earnings upgrades driven surge in silver prices (40% EBITDA share), local currency weakness and benign costs.
• Planning for major US$2-2.5b growth expenditure to double output over next 3=5 years.
• Valuations: Entering a strong earnings upgrades cycle. Stock can re-rate despite trading at slight premium to historic averages. Stake sales by key holders is a risk.

• Earnings Momentum in 2025 – Canon expects 5% revenue growth and 17% EBIT expansion this year, driven by high-margin segments like semiconductor lithography, medical devices, and network cameras.
• Aggressive Shareholder Returns – With ¥350 billion in planned buybacks and dividends in 2024, Canon’s 6.8% TSR and strong free cash flow offer a compelling value proposition.
• De-Risked Upside – 2025 guidance provides earnings visibility, while valuation suggests ~40% upside, supported by resilient end-markets and an under-leveraged balance sheet.

• Home Depot’s latest financial results presented a mixed picture, with some encouraging signs of recovery despite a cautious outlook for the coming year.
• Total sales for fiscal 2024 rose 4.5% to $159.5 billion, though comparable sales for the year declined by 1.8%.
• However, fourth-quarter same-store sales showed improvement, rising 0.8%—breaking an eight-quarter streak of declines and exceeding analysts’ expectations of a 1.5% drop.

• PAGD’s 2024 performance beat expectations. The support of Ping An Group remains the key for PAGD to turning losses into profits. A breakthrough point is the Senior care services business.
• The CAGR of PAGD’s revenue could be 12%-15% from 2025 to 2027, and revenue in 2027 may reach RMB6.5-7 billion. The peak revenue scale could be just about RMB8 billion.
• Adjusted net profit could reach RMB250-300 million in 2025 and exceed RMB400 million in 2027.If based on P/S of 2-3x, revenue of RMB6.5-7 billion in 2027, valuation is RMB13-21 billion.

• The TJX Companies, Inc. reported robust financial performance in the fourth quarter of fiscal 2025, exceeding expectations in multiple areas.
• With net sales of $16.4 billion, which marks a 5% increase over last year’s adjusted figures, the company demonstrated consistent strength across all divisions.
• The driving factor was a 5% increase in consolidated comparable store sales, which stemmed from increased customer transactions.

• In this insight, we provide the top 10 stocks picks and key catalysts in the Korean stock market for the two weeks starting 17 March. 
• Some of the top 10 Korean stock picks in the bi-weekly (starting 17 March) include Kepco Plant Service & Engineering, Hyundai Wia, Poongsan, and Doosan Enerbility. 
• 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 March.

• Legend Biotech Corp (LEGN US) reported better-than-expected 4Q24 result, with revenue and adjusted EPS beating consensus. With 2024 annual revenue of $963M (up 93% YoY), Carvykti nearly achieved blockbuster status.
• With manufacturing capacity, indication, and geography expansion, Carvykti should be on accelerated growth path. Annual manufacturing capacity of Carvykti is expected to expand to 10,000 doses to meet demand.
• Thus far, more than 5,000 patients have been treated with Carvykti. The drug has an estimated market opportunity of treating 150,000 MM patients eligible for CAR-T therapy.

• Rates fell by -24% Q/Q in Q424, but ZIM exceeded consensus Q4 revenue & earnings targets
• Management guidance & commentary regarding 2025 profitability paints a bleak picture
• In our view, investors in container carriers would do well to heed these clear warnings