Equity Bottom-Up

• Meta is shifting its primary focus from the Metaverse to delivering personal superintelligence, driven by its newly launched AI personal agent, Muse (and its underlying model family, MuseSpark).
• Monetization & Ecosystem: Muse is offered free with a generous token allowance; Meta plans to monetize by taking a small transaction fee from agent-led commercial actions.
• Meta showcased its next-generation Meta VR Glasses, a lightweight VR/mixed-reality device weighing just 100 grams (less than one-fifth the weight of Meta Quest 3).

• Bosung Power Technology is a Korean power-equipment manufacturer of transmission towers, steel structures for power plants and substations, gas-insulated switchgear, pole-mounted transformers and other electrical equipment.
• The company’s operations have remarkably improved in the past three years as it has been one of the beneficiaries of Korea’s aggressive investments in the high-voltage direct-current (HVDC) transmission infrastructure. 
• The company’s sales and profits worsened in 1H 2026 after record breaking results in 2025. Bosung Powertech looks fairly valued now at P/E of 20x and P/B of 3.1x. 

• Tencent’s massive AI pivot is reshaping its capital allocation strategy. The company’s Q2 2026 capital expenditure nearly tripled year-on-year to RMB 52.8 billion, driving reported free cash flow negative to negative RMB 13.8 billion. This has triggered a structural reduction in share buybacks, which are expected to drop to HKD 40 billion to HKD 60 billion in 2026, down from HKD 112 billion in 2024.
• WeChat Video Accounts (VA) remain the primary engine of near-term monetization, shields against ByteDance (Douyin), and the ultimate host for AI agents. VA user time spent grew over 20% year-on-year in Q2 2026, yet its ad-load remains low at 3% to 4% (compared to Douyin’s 10% to 12%), representing significant untapped pricing power and ad inventory headroom.
• Divestment of the listed investee portfolio (valued at RMB 673 billion as of late 2025) is transitioning from a regulatory defense mechanism to an active capital-funding tool. While domestic consumer tech holdings (like remaining stakes in Bilibili or KE Holdings) are prime monetization targets, Tencent is selectively redeploying capital toward international gaming M&A and high-performance computing clusters rather than returning all cash to shareholders.

• Emirates NBD’s landmark ₹26,016 crore (USD 2.75 billion) primary capital infusion on June 18, 2026, for a 60% controlling stake has fundamentally reset RBL Bank’s balance sheet, pushing its Capital Adequacy Ratio (CRAR) to 33.28% and eliminating any equity dilution or capital-raising risks for the next 3 to 5 years.
• Structural profitability remains a critical challenge, with Return on Assets (ROA) sitting at a subdued 0.57% in Q1 FY27. Net Interest Margin (NIM) compressed significantly to 4.13%, dragged down by the immediate liquidity-deployment friction of the new capital and a tactical pivot towards lower-yielding wholesale advances (which grew 38% YoY to ₹52,027 crore) to manage overall credit risk.
• The retail book’s seasoned vintages from mid-2024 to early 2025 represent the core credit vulnerability. Co-branded credit cards and digital personal loans sourced via fintech partnerships during the peak of the aggressive expansion phase have seen early-bucket (30-90 DPD) delinquencies trend 120 to 150 basis points above pre-COVID norms, driving elevated credit card slippages of ₹7.4 billion in Q1 FY27 and prompting a severe pruning of digital-partner originations.

• Market Leadership & Backward Integration Advantage: Supriya Lifescience Limited (SUPRIYA IN) is a niche active pharmaceutical ingredient (API) and finished dosage formulation (FDF) manufacturer with global leadership in key molecules across antihistamines, anesthetics, vitamins, and anti-asthmatics. Over 75% of its API portfolio is backward integrated to the basic starting material stage, delivering industry-leading EBITDA margins (35-38%) and shielding operations from raw material price volatility.
• Strong High-Margin Growth Trajectory: The company demonstrated strong financial performance with revenue expanding at a 3-year CAGR of 21.23% to reach INR 8,278.75M in FY26, alongside a 32.52% net income CAGR to INR 2,091.20M. Growth is supported by deepening penetration across regulated export markets (Europe, North America, LATAM), long-term strategic contracts (e.g., DSM-Firmenich for Vitamin B2), and an expanding finished formulation pipeline.
• Strategic Expansion into Formulations and CDMO: Commercialization of the Ambernath FDF and CDMO facility alongside capacity additions at the Lote Parshuram site (Module E taking reactor capacity to 1,020 KLPD) and upcoming Patalganga greenfield site establishes a clear roadmap toward management’s INR 16,000M medium-term revenue aspiration. Balance sheet strength remains pristine with net-cash positioning and self-funded growth.

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• Post-Merger Balance Sheet Normalization: HDFC Bank (ADR: HDB US, $22.79) is executing a measured transition strategy following its landmark merger with HDFC Ltd, actively re-aligning its Loan-to-Deposit Ratio (LDR) through accelerated retail deposit mobilization while moderating wholesale credit growth to safeguard Net Interest Margins (NIM).
• Resilient Earnings Power and Cash Flow Generation: The bank demonstrated robust fundamentals in FY26, generating $56.91B in revenue and $8.60B in net income with stable net margins of 15.12%, supported by a dramatic expansion in Operating Cash Flow to $18.97B and Free Cash Flow to $18.53B.
• Attractive Valuation Asymmetry: A persistent disconnect exists between HDFC Bank’s operational compounding (10-year Revenue and Net Income CAGRs of 17.48% and 15.97%) and recent equity performance (3-year Market Cap CAGR of -9.29%), creating an attractive entry point for institutional investors seeking premier exposure to Indian structural credit growth.

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• Topco says 2nm, A16 and advanced packaging raise both the amount and the value of material each wafer consumes, and it is adding adhesives, films and carriers for chip stacking.
• Topco co-owns factories with Shin-Etsu to keep that supplier selling through it, and offers smaller Taiwanese suppliers a shared route into overseas fabs.
• Materials revenue rose 22.7% in the first half while plant-building fell 0.9%, and July and August ran 39.5% above 2025. The shares trade at 18.3x 2026 earnings.

• Our 2022 earnings thesis largely worked: FY12/2021-FY12/2025 profit compounded about 15% annually while adjusted EBITDA margins remained above 66%.
• What we underestimated was regulatory and geographic complexity: by Q2 FY12/2026, only 49% of revenue was classified as regulated by player IP.
• The next phase depends on renewed organic growth, better regulated-market monetization, and whether large buybacks can convert resilient cash generation into stronger per-share compounding.

• Sourcing Structure Overhaul Required: PT Indo Oil Perkasa Tbk (OILS) managed to improve gross margins to 7.3% in 6M26, achieving a gross profit of Rp 53.4 billion. However, the company remains structurally vulnerable to raw material volatility due to high reliance on a single primary supplier for over 50% of its copra feedstock, limiting its ability to hedge cost fluctuations dynamically over the next 4 quarters.
• PT Indo Kelapa Perkasa Divestment Was Capital Preservation: The April 19, 2025 share divestment of PT Indo Kelapa Perkasa (IKP), which reduced OILS’ ownership to 52%, was not a strategic exit but a necessary move to share the Rp 6.0 billion Capex burden with strategic partners amid a highly constrained corporate cash position of Rp 14.4 billion.
• Market Volatility Driven by Float illiquidity and IR Gaps: The Unusual Market Activity (UMA) issued by the Indonesia Stock Exchange (BEI) on September 8, 2026, highlights OILS’ systemic retail-driven volatility. With 47.85% tightly held by the family holding entity (PT Mandalindo Putra Perkasa) and a lean 35-person corporate structure, the management team dedicates less than 5% of its time to investor relations, leaving the stock vulnerable to speculative local trading groups.

• Link REIT (823 HK) represents Asia’s largest and most defensively structured real estate investment trust, anchored by a HK$210B+ portfolio comprising necessity-focused neighbourhood retail, fresh wet markets, and car parks predominantly situated in Hong Kong’s high-density public housing estates.
• Despite headline statutory net losses in 2025 and 2026 driven entirely by non-cash property revaluation writedowns amid global cap rate expansions, underlying cash flows remain robust with operating cash flow of HK$6.82B in 2026 and an attractive forward distribution yield of ~6.80%.
• Management’s strategic pivot toward the ‘Link 3.0’ capital management framework—focused on capital recycling (e.g., partial divestment of 100 Market Street in Sydney), institutional joint ventures, and accretive unit buybacks—provides balance sheet resilience and supports long-term distribution per unit (DPU) stability.

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• The dispute between SK Hynix (000660 KS) management and the labor union has been resolved; thus, production halt risks have been avoided at a critical time.
• Paying 50% of the bonus pool in treasury shares allows SK Hynix to retain billions in cash compared to paying 100% in cash. 
• The investment thesis remains intact with major hyperscalers locked into multi-year contracts with Sk Hynix while PER remains at 6x. 

• In this insight, I provide an investment thesis on Doosan Enerbility (034020 KS) which is a Korean nuclear powerhouse. 
• In addition, I highlight the likely pre-IPO investment in Westinghouse Electric (US) which is likely to occur in 4Q 2026/1Q 2027. 
• Despite the long-term higher demand for nuclear and SMRs made by Doosan Enerbility, I remain wary of the company’s high valuation multiples and worsening balance sheet.

• CDNS had a record $8.1 billion backlog exiting Q2, with a Current Remaining Performance Obligation coverage ratio of ~58%, providing high visibility into revenue over the next 12 months.
• CDNS launched an agentic AI flow (including ChipStack, RapidFire, Veristack, InnoStack, and AuraStack), which bridges the engineering bottleneck by automating complex tasks like RTL code generation and test bench creation.
• Due to a projected 30-40x increase in design workload over the next 5–6 years, customers indicate willingness to spend >50% of a human designer’s cost on automation, tokens, and tools

• We continue to be bullish about Workman’s back-to-basics strategy which has delivered a second straight year of record sales and profit, with same-store sales up 9%. 
• New president Koji Ouchi has just revamped the business under five core functional categories, as well as moving towards more mass-scale manufacturing and corporate franchising.
• The new strategy is part of a drive toward 1,300 stores by 2030.

• Benchmark Anchor for South Korean Growth Capital: The KOSDAQ 150 Index serves as the premier liquid equity benchmark representing the top 150 technology, biotechnology, and high-growth industrial companies listed on the KOSDAQ market of the Korea Exchange (KRX), capturing over 70% of total market capitalization while filtering out illiquid small-cap tail risk.
• High-Beta Thematic Concentration: The index offers concentrated fundamental exposure to structural secular trends—notably advanced biopharmaceuticals, artificial intelligence semiconductor equipment, high-purity battery materials, and robotics—generating elevated upside participation during liquidity expansions and tech capex cycles.
• Institutional Utility and Structural Churn: While serving as the definitive underlying benchmark for KRX-listed index futures, options, and exchange-traded funds (ETFs), the index faces recurring structural graduation risk as mature mega-cap constituents periodically migrate to the KOSPI main board, maintaining a high-volatility, mid-to-large cap growth profile.

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• Hexagon Nutrition Limited (HEXAGON IN) is a differentiated, research-driven pure-play nutraceutical and clinical nutrition manufacturer operating across three core pillars: Micronutrient Premixes, Branded Clinical & Wellness Nutrition, and Therapeutic Malnutrition Formulations.
• Financial performance has demonstrated strong operating leverage, with revenue growing from INR 2,974.52M in 2024 to INR 3,826.28M in 2026 (a 13.42% 2-year CAGR) and net profit expanding over 3x from INR 122.89M to INR 379.37M, supported by a 1,314 bps expansion in gross margin to 32.15%.
• Trading at an attractive valuation relative to broader healthcare and wellness peers, Hexagon is positioned to capitalize on structural tailwinds including mandatory food fortification policies, expanding clinical nutrition adoption in acute/chronic care, and international expansion across emerging markets.

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• Earnings up, multiple down: FY26 guidance and Energy orders are rising while Fuji’s EV/EBIT has compressed to ~13x.
• Energy is mispriced: High-margin Energy has strong backlog and capacity expansion, yet trades below global electrification peers.
• Catalyst-Rich asymmetry: Results, backlog conversion and data-center growth could drive re-rating; High/Low valuation implies ~2.9x reward-to-risk.

• Autoneum Holding AG (AUTN SW) is the global market and technology leader in acoustic and thermal management solutions for light and commercial vehicles, uniquely positioned to capture structural content-per-vehicle growth as automotive original equipment manufacturers (OEMs) transition toward electric and hybrid powertrains.
• The successful execution of the ‘Level Up’ operational program and the seamless integration of Borgers Automotive have substantially improved structural profitability, lifting EBITDA margins from 7.94% in 2023 to 10.43% in 2025, while sustaining robust free cash flow generation exceeding CHF 107 million annually.
• With strong cash conversion, a solid balance sheet, a top-tier Growth score (5/5), and an expanding dividend profile (DPS raised from CHF 2.50 to CHF 3.20), Autoneum presents an attractive risk-adjusted investment proposition trading at a compelling valuation relative to its cash-generation capability.

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• We think ASL Marine is a differentiated play on the Asia Pacific marine infrastructure and offshore vessel markets with its vertically integrated model.

• Its extensive shipyard infrastructure, chartering fleet, alongside proprietary dredging engineering capabilities, allow the company to capture value across the asset lifecycle.

• ASL Marine’s operating cash flows have  supported an ongoing fleet renewal and deleveraging of its balance sheet.

• Aspirational Luxury Wipeout: A macroeconomic squeeze has erased 50m middle-class luxury consumers, devastating mainland turnover rents as megabrands like Gucci and LVMH report plunging sales.
• Hong Kong Office Contagion: Swire faces a brutal second front, with Grade A office vacancies hitting 17.5% and flagship portfolios suffering negative rental reversions up to 16% amid financial exoduses.
• Dividend Under Threat: With 7.7 bn HKD in fair value losses and sliding recurring profits, reliance on capital recycling masks underlying decay, threatening dividend growth and valuation.

• Founded in 1998 and KOSPI-listed in 2019, Dreamtech is an EMS(Electronics Manufacturing Services) and ODM specialist.
• Its business has two axes: OEM work, sourcing parts to customer specs and supplying them as modules; and ODM work, partnering with owners of core technology to productize and mass-produce it.
• Its edge rests on three capabilities: tracking technology trends and sourcing to customer needs; customized mass-production development; and reliable large-volume supply.

• Google Cloud has 17 product lines with more than $1 billion in revenues and their customers on average exceeded their commitments by more than 50%. 
• They have also seen more than 2x QoQ and YoY growth in the number and value of $100 million to $1 billion deals, >300 customers each with $100 million-plus commitments.
• The size of our TPU business is more than twice that of the next-largest hyperscaler. Our payback period on AI servers in aggregate is less than two years.

• This insight details about the weekly changes in the holding company discount in India.
• We track the reasons for change in the holdco discount if any.
• While this note captures 4 holding companies, we intend to add more names in coming weeks.

• High-margin leverage to gold: FY25 revenue rose 37% to US$7.05bn while production cost per ounce rose 12%, lifting cash margin to US$2,285/oz.
• Organic pipeline extends the profile: Phase X, Curlew and Redbird 2 start in 2028; Great Bear (late 2029) and Lobo-Marte add ~850koz/yr of high-grade ounces to the existing 2 Moz.
• Valuation: 9.4x FY26E P/E and 5.1x EV/EBITDA with FY25 ROCE 29.8%; US$1.9bn net cash

• Indonesian thermal coal prices are trending higher, creating a constructive cyclical backdrop for domestic coal producers: Indo Tambangraya Megah (ITMG IJ) & Bukit Asam (PTBA IJ) 
• Indo Tambangraya Megah (ITMG IJ) combines the lowest valuation with substantial net cash, while Bukit Asam (PTBA IJ)  combines stronger observed cash conversion with deeper logistics and resource-duration advantages.
• We test, through a forensic examination of business economics and a value-investing lens, which company, if either, can offer more than 25% upside from current prices.

• Context: The DLF (DLFU IN) vs. Godrej Properties (GPL IN) price ratio has deviated more than two standard deviations from its one-year average, presenting a potential relative value opportunity.
• Highlight: Going long Godrej Properties (GPL IN) and short DLF (DLFU IN) targets an 8% return.
• Why Read: Essential for quantitative traders seeking mean-reversion opportunities, with detailed execution framework, risk management protocols, and historical simulation showing the statistical basis for this relative value play.

• Schlumberger Limited reported second-quarter 2026 revenue of $9 billion, up 3% sequentially as international growth and a North American rebound offset Middle East weakness.
• Middle East revenue declined 13% sequentially to $1.66 billion because of regional conflict and security disruptions, particularly in Iraq.
• Management expects activity to recover gradually, although the pace will vary by country and customer.

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

• The recently launched sale of Legend Holdings’ 89.94% stake in Banque Internationale à Luxembourg (BIL) is a critical turning point. It is a forced exit aimed at shrinking the holding company’s massive RMB 143.67 billion debt load and narrowing its steep 75% NAV discount. However, the reported €2.5 billion valuation faces a significant bid-ask spread.
• Monopolizing on domestic unlisted assets will be difficult. While the 1.09 billion yuan restructuring of Joy Wing Mau signals a path toward a Hong Kong listing by late 2027, other non-core assets like Joyvio’s salmon business remain functionally unmonetizable due to lingering litigation and operational bottlenecks.
• The transition of the CEO role to Yu Hao in November 17, 2025, marks a structural shift away from the legacy diversified investment model toward a state-aligned, tech-centric holding structure. With the Chinese Academy of Sciences (CAS) holding a 29.04% stake, all capital allocation and divestments are tightly constrained by Beijing’s scientific and capital repatriation mandates.

• Gentex Corporation’s second quarter of 2026 financial results showed net sales of $651.3 million, reflecting a slight 1% decrease compared to the same period last year.
• Automotive revenue declined approximately 3% year-over-year, primarily due to lower shipments in Europe, Japan, Korea, and China.
• This decline was partially offset by stronger demand in North America and higher vehicle content in Europe.

• G5 reaches mass production at 11.95nm active-area half-pitch, with ≥50% more gross dies/wafer and two 24Gb LPDDR5X products.
• G5 is unlikely to move FY26 earnings, but 2027 capacity growth could accelerate commodity DRAM pricing normalisation into 2H27.
• Maintain BEARISH/REDUCE: RMB31.40 FV is 44.9% below spot; use G5-driven strength to reduce exposure.

• Shiprocket delivered 34% YoY revenue growth in Q1 FY27, while Adjusted EBITDA rose nearly 9x to INR 8.9 crore as the core business gained operating leverage.
• The bigger story is emerging businesses, where revenue grew 70% YoY to INR 180 crore, led by MarTech and omnichannel services.
• With 2.24 lakh+ active merchants, 216 million quarterly transactions and a wider product stack, Shiprocket is trying to capture more value from every merchant.

• On Tuesday, Meera Kapoor wrote about how GLP-1 drugs cause people’s skin to become saggy – the effect that’s now popularly known as “Ozempic face”.
• Two solutions are botulinum neurotoxin (“Botox”) and dermal fillers.
• Botox is injected into the skin to reduce wrinkles. Such wrinkles include frown lines, forehead lines and so-called “crow’s feet.

• Won Tech’s exports increased by 59.8% YoY in 2025 and by 21.5% YoY in 1H 2026. The company’s export sales to the U.S. increased sharply in 1H 2026. 
• Won Tech is currently trading at P/E of 9.8x and P/B of 2.2x based on 2026 consensus earnings estimates (50% to 60% discount to its historical valuation multiples). 
• Won Tech provides medical aesthetics and surgical devices. The company’s products specializes in the laser and energy based medical solutions used for skin rejuvenation and face lifting procedures. 

• Sa Sa (178 HK)‘s positive profit alert suggests net profit will reach HK$150m in 1H FY26/27, equaling a 2x YoY increase, ahead of the consensus. 
• 2H net profit has been historically better than 1H, meaning the market’s full-year forecast of HK$277m provides room for an upgrade. The Jul retail sales trend also supports this.
• Despite a 106% YTD rally, its 2.7x 12-month P/B is only slightly above average. With an ROE of 21-24% and net cash of HK$0.16, valuations remain not stretched.

• Pioneering Sensorless Powertrain & Genset Control Technology: SEDEMAC Mechatronics is a high-growth Tier-1 automotive electronics innovator commanding a dominant ~35% domestic market share in 2W/3W Integrated Starter Generator (ISG) ECUs and ~75%+ in Genset controllers, anchored by proprietary sensorless commutation (SLC) algorithms that eliminate physical position sensors.
• Exceptional Financial Compounding & Operating Leverage: Revenue nearly doubled from INR 5,306.53M in FY2024 to INR 10,583.80M in FY2026 (41.2% 3-year CAGR), while Net Income scaled from INR 58.78M to INR 1,035.80M, driven by gross margin expansion (10.20% to 18.82%) and EBITDA margins expanding to 21.34%.
• Strategic Expansion vs. Valuation & Capex Headwinds: Multi-segment scaling into combined ISG+EFI architectures, EV Motor Control Units (MCUs), and export markets (North America and Europe) provides long-term runway, balanced against near-term capex-driven negative Free Cash Flow (-INR 168.40M in FY2026), OEM client concentration, and premium valuation multiples at INR 3,098.00.

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• St George Mining (SGQ AU) owns the Araxá niobium and rare earths project in Minas Gerais, Brazil, with an Aug 2026 Mineral Resource Estimate (MRE) of 111.2Mt at 0.57% Nb2O5 and 3.57% TREO.
• Brazil dominates global niobium mining, while China and the US, the two largest consumers of the critical material, rely on imported niobium.
• Niobium’s strategic role in defence, civil and new energy.

• Micro-Mechanics (Holdings) Limited (“MMH” or “The Group”) is a Singapore-based precision engineering company that designs, manufactures, and markets high-precision tools and parts for process-critical applications for the semiconductor and other high technology industries.
• The group operates across two segments: Consumable Tools, which are small, consumable precision tools used in the assembly and testing of semiconductor chips, and Wafer Fabrication Equipment (WFE), which are precision components used in the semiconductor wafer fabrication process.
• By serving both back-end and front-end processes, MMH operates in a niche and essential segment of the semiconductor supply chain.​

• Apple has effectively abandoned its long-held “net cash neutral” strategy to prioritize aggressive R&D scaling and potential generative AI acquisitions, reflecting a clear strategic pivot under new CEO John Ternus.
• The company has compromised with the European Commission through its August 18, 2026 App Store policy overhaul, replacing the controversial Core Technology Fee with a 5% Core Technology Commission on web/alternative store transactions, while reducing the baseline in-app purchase rate to 26%.
• Hardware margins face severe headwinds from memory inflation, with TrendForce estimating a nearly 400% surge in DRAM/NAND costs that is pushing the total iPhone 18 Pro Bill of Materials (BOM) up by 38%, forcing Apple to rely heavily on its high-margin Services segment (75.6% gross margin) to cushion the impact.

• Adobe Inc. reported its third-quarter fiscal year 2026 results with total revenue of $6.76 billion, representing a 12% year-over-year growth on a constant currency basis.
• The company achieved GAAP earnings per share of $4.62, up 11% year-over-year, and non-GAAP earnings per share of $6.13, a 15% increase compared to the same period last year.
• Annual recurring revenue (ARR) ended at $27.5 billion, growing 11.2% year-over-year, and operating cash flow set a quarterly record at $2.52 billion.

• The ₹22,569 crore NSE IPO is currently in its final subscription days (closing September 21, 2026) at a price band of ₹1,700–1,785, valuing the exchange at ₹4,41,788 crore. The transaction is structured as a 100% Offer for Sale (OFS), which brings zero fresh capital to the exchange, reflecting its high cash-generation capacity and intent to maintain its high dividend payout ratio.
• SEBI’s regulatory fee structure and index derivatives restrictions represent the primary structural and volume headwinds. While NSE avoided the retrospective options regulatory fee shock that hit BSE and MCX because it historically paid fees on a notional basis, SEBI’s recent derivatives curbs led to a 51.5% drop in options contract volumes in FY26, resulting in a 3.1% decline in operating revenue to ₹16,601 crore.
• The structural decoupling of clearing operations under the interoperability framework is accelerating. Competitors are leveraging this mechanism to drive aggressive fee erosion, causing NSE Clearing Limited’s (NCL) market share in cash settlement to fall from 94.24% to 88.42% and equity derivatives clearing to slide from 95.67% to 91.04% in FY26.

• HVM Co., Ltd. (295310 KS) is a premier South Korean advanced vacuum metallurgy manufacturer specializing in high-performance nickel, titanium, and copper superalloys, advanced sputtering targets, and precision specialty metals critical for aerospace, defense, semiconductor, and energy industries.
• The company is undergoing a transformative growth cycle propelled by its tier-1 direct supplier qualification into top-tier global aerospace and space launch supply chains (including SpaceX Starship engine alloy programs), shifting its revenue mix toward high-margin aerospace superalloys (projected at >60% of total sales).
• While revenue expanded strongly from KRW 41.46bn in FY2023 to KRW 66.53bn in FY2025 with an operational turnaround to KRW 12.61bn net profit in FY2025, persistent working capital demands, negative free cash flow (-KRW 24.55bn in FY2025), and quarterly margin volatility highlight operational scaling risks that require disciplined execution.

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

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

• Nadella argues the industry must address AI risks through classic, rigorous engineering practices: transparent chain-of-thought (CoT) tracking, strict behavioural auditing and independent, third-party testing rather than “cozy arrangements”.
• Nadella wants broad industry interoperability standards (e.g., externalising memory/harnesses from specific models and creating unified KV cache standards across models) so customers can switch between models without losing their data.
• While continuing its deep strategic partnership with OpenAI, Microsoft is simultaneously building its own native AI models and adopting heterogeneous chip infrastructure (NVIDIA, AMD, internal silicon, and OpenAI’s custom silicon)

• TSMC: +12.2% Premium; Below -1 SD Band; Long the ADR Spread
• ChipMOS: +3.6% Premium; Above +1 SD Band; Short the ADR Spread
• UMC: +0.2% Premium; Within Historical Range; No Active Trade Signal

• EverQuote, Inc. (EVER) has engineered a decisive financial and operational turnaround following the 2022-2023 auto insurance underwriting trough, growing full-year revenue from $287.92M in FY2023 to $692.52M in FY2025 and generating $95.38M in Operating Cash Flow and $90.32M in Free Cash Flow.
• Structural cost discipline implemented in mid-2023, coupled with proprietary machine learning traffic optimization, has yielded meaningful operating leverage, expanding quarterly EBITDA margins to 12.54% by Q2 2026 and sustaining gross margins above 97%.
• With a fortress balance sheet featuring zero debt, $170M+ in cash reserves, and multi-year secular tailwinds as Tier-1 auto carriers ramp digital acquisition spending toward a targeted $1.0B revenue milestone, EVER offers institutional investors an attractive growth and cash-flow profile at a discounted valuation relative to peers.

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• Policy Pivot: The 2026 Policy Address prioritizes long-term supply and public housing, heavily favouring Northern Metropolis infrastructure over short-term mass-market property stimulus.
• Sector Impact: Mass-market buyers struggle under 50% DSR caps, while luxury inventory and commercial landlords benefit from targeted capital migration and stable yields.
• Actionable Trade: Buy Henderson Land (0012.HK). Its 45m sq ft agricultural land bank captures massive Northern Metropolis monetization, unlocking deep Sum-of-the-Parts value.

• Exelon Corporation reported second quarter 2026 adjusted operating earnings of $0.43 per share, aligning with expectations, and reaffirmed full-year guidance of $2.81 to $2.91 per share.
• The company continues to prioritize providing safe, reliable utility services while managing investments and costs amid increasing weather-related challenges.
• ComEd, one of Exelon’s utilities, encountered 16 major weather events this year, including severe storms that impacted over half a million customers.

• IBM has turned one of its most ambitious quantum plans into something tangible.
• Its Anderon subsidiary has finalized a $1 billion research and development award from the U.S. Department of Commerce under the CHIPS and Science Act, supporting what IBM describes as America’s first pure-play quantum wafer foundry.
• Located in Albany, New York, the 300-millimeter facility is designed to manufacture quantum wafers not only for IBM but also for other companies developing quantum hardware.

• Frontier AI Labs: Pausing, pacing, those are all the voluntary things that they could do if they feel that their company is out of control.
• President Trump: And I’m telling you, it’s all a hoax. The data centers are great and they make people wealthy and they make states wealthy
• Jensen Huang: I’d rather help everybody succeed instead of taking a slice out. And so we would go up as far as we need to but as low as possible.

• Commercial Viability and Clinical Gaps: The ZSmile platform offers a compelling lifestyle value proposition by eliminating 22-hour daily wear and daytime speech/eating interference, but it faces significant clinical finishing limitations. In approximately 5.00% of cases, patients still require conventional braces to be bonded for 4 to 6 weeks for final precision finishing, which creates resistance among premium-focused orthodontists.
• Extreme Financial Precarity: Dror’s financial position is critical. As of June 30, 2026, the company had total assets of just $258,936, a negative working capital of $(3.75) million, and an accumulated deficit of $23.32 million. The August 2026 capital raise of $275,000 via 0% interest convertible debentures is a short-term stopgap maturing on October 19, 2026, which underscores its high restructuring risk.
• Go-to-Market Hurdles: While a 2,000-to-1 reverse stock split is planned for a Nasdaq uplisting, the commercial launch cannot scale without a major strategic partner. High customer acquisition costs (CAC) and the dominance of Align Technology—which shipped 2.61 million cases in FY2025 and maintained a clear aligner average selling price (ASP) of $1,260 in Q2 2026—mean Dror’s technology is more likely to be acquired for its IP portfolio rather than successfully launched independently.

• The failed Macquarie tender offer highlights the rising power of minority shareholder activism in South Korea, as Miri Capital (24.2% stake) and Align Partners (14.3% stake) successfully blocked the transaction by refusing to tender their combined 38.5% holding, exposing a significant valuation gap against Macquarie’s 48,000 KRW offer.
• Board neutrality in Korean M&A is shifting structurally due to ongoing debates and legislative momentum around expanding directors’ duty of loyalty under the Commercial Act to include “all shareholders,” making boards increasingly hesitant to endorse deals that disadvantage minority investors.
• Data center power scarcity in the Seoul metropolitan area acts as KINX’s ultimate moat, with KEPCO grid constraints imposing up to a 27-month time-to-power delay on new builds, making KINX’s recently opened Gwacheon IDC (October 2024) an irreplaceable asset that shifts margin bargaining power in their favor.

• Icelandic Pension Funds’ Domestic Dominance: Local pension funds manage assets exceeding 180% of GDP (nearly ISK 8.9 trillion), representing the primary competitive threat to NIAA for local renewable and infrastructure assets. Following the summer 2026 amendments to the Icelandic Pensions Act, these funds have gained greater allocation freedom for unlisted assets, compressing local yields and making it extremely difficult for an external SPAC to win on price alone.
• Structural Avoidance of Act No. 34/1991: Foreign direct investment (FDI) laws in Iceland explicitly bar non-EEA entities—such as a Cayman-incorporated SPAC—from owning energy exploitation rights or associated real estate. Consequently, NIAA cannot directly acquire power generation assets; its target pipeline must focus strictly on downstream applications like data centers (via leasehold models) or cold-chain logistics, or utilize highly complex, untried synthetic local-holding joint ventures.
• Severe Redemption Risks and PIPE Dependency: With late-2026 SPAC redemptions averaging over 90%, NIAA’s $125 million trust is highly likely to be depleted at the business combination vote. Given the Central Bank of Iceland’s recent policy rate hike to 8.00% on August 19, 2026, funding the required target size (averaging $111 million in revenues) will require a heavily structured, dilutive PIPE or convertible debt facility rather than relying on trust cash.

• Severe Financial Distress: NuvOx is operating in extreme financial distress, holding just $332,000 in cash against a staggering $32.11 million in total liabilities as of June 30, 2026. Its pending $20.02 million IPO on the NYSE American is a literal survival mechanism to address its going-concern risk rather than a standard growth-capital raise.
• Clinical Validation is the Key Gate: The phase-transition mechanism of NanO2 (dodecafluoropentane, or DDFP) allows it to be active at less than 1/200th of the dose of historical perfluorocarbons (PFCs), bypassing the severe reticuloendothelial system (RES) toxicity and thrombocytopenia that terminated earlier trials like Alliance’s Oxygent. However, the core clinical challenge is overcoming deep-seated physician skepticism regarding the risk of microvascular gas emboli during liquid-to-gas transition in vivo.
• Strategic Pivots are Hard but Rational: The company’s decision to shelf its sickle cell program (NVX-508) and focus entirely on the glioblastoma multiforme (GBM) RESTORE trial is highly rational. GBM has an unchanged standard of care (the Stupp protocol) since 2005, making neuro-oncologists highly receptive to radiosensitizers that can reverse tumor hypoxia. Conversely, sickle cell requires large, expensive cardiovascular safety trials and faces a crowded field of newly approved gene therapies, which NuvOx simply cannot afford.

• Stagnant Revenue and Severe Margin Compression: PT Campina Ice Cream Industry Tbk (CAMP IJ) has seen top-line growth slow to a 3-year CAGR of 1.30% (reaching IDR 1.17T in FY2025), while net profit declined at a -14.89% CAGR to IDR 74.77B. Gross margins compressed from 53.05% in FY2023 to 48.52% in FY2025 due to elevated dairy/sugar raw material costs and heightened discounting across retail channels.
• Unleveraged Balance Sheet Provides Defensive Anchor: Despite operating headwinds, CAMP maintains an unleveraged balance sheet with solid net cash backing, supporting a Smartkarma Resilience score of 4/5. This robust liquidity profile insulates the firm against debt distress and funds ongoing point-of-sale freezer replacements without solvency risk.
• Competitive Squeeze and Free Cash Flow Contraction: Intense category rivalry from low-cost entrants (notably Aice and Joyday) and incumbent Unilever continues to limit Campina’s pricing power. Free cash flow contracted sharply from IDR 47.27B in FY2023 to IDR 2.30B in FY2025 (-71.71% 3-year CAGR), warranting a Neutral institutional stance pending volume re-acceleration and cost stabilization.

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• PT Ultrajaya Milk Industry & Trading Co. Tbk (ULTJ IJ) is Indonesia’s preeminent producer of aseptic dairy and ready-to-drink (RTD) beverages, controlling dominant market share in Ultra-High Temperature (UHT) milk (Ultra Milk) and RTD tea (Teh Kotak). The company’s competitive moat is anchored by iconic brand equity, an integrated supply chain, and an extensive nationwide ambient distribution network.
• Financial performance demonstrates strong margin expansion and cash conversion, with FY2025 net profit reaching IDR 1,353.3B (+19.1% YoY) at a 15.4% net margin, accelerating further into 1H2026 with quarterly net margins surpassing 20%. ULTJ maintains a fortress balance sheet characterized by a net cash position, negligible financial leverage, and robust free cash flow generation (IDR 1,219.2B in FY2025).
• At current price levels (IDR 2,060), ULTJ presents an attractive risk-reward profile, trading at ~11.6x trailing P/E and ~5.4x EV/EBITDA—a substantial discount to domestic consumer staple peers (ICBP, CMRY, MYOR). The investment case is reinforced by an outstanding dividend yield of 6.31% (IDR 130/share DPS) and structural tailwinds in Indonesian per-capita dairy consumption.

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• Burman Takeover and the RBI Demerger Block: The Burman family’s hostile takeover of Religare Enterprises (REL) was completed in February 2025, but structural unlocking remains stalled due to the Reserve Bank of India’s (RBI) rejection of the demerger scheme on August 6, 2026. This delays the separation of the financial services and health insurance arms and pushes the target listing of Religare Finvest (RFL) well past the original Q1 FY28 timeline.
• The Rashmi Saluja ESOP Saga and Key-Man Risk: Former Chairperson Rashmi Saluja’s ₹480 crore ESOP grant (representing ~2.5% of Care Health’s capital) has been declared illegal by IRDAI. Following her removal, the new board withdrew Care’s SAT appeal in July 2025, and a Mumbai court granted her bail in May 2026 amid ongoing EOW charges. While key-man risk has subsided, legacy legal cleanup remains a drag.
• Care Health’s Underwriting Pain vs. Peer Performance: Despite strong topline growth with gross premiums crossing ₹10,031 crore in FY26, Care’s profitability fell 92% YoY to ₹12.16 crore as its combined ratio deteriorated to 106.7%. This underperformance is exacerbated by the new 1/n accounting rule and a thin 1.68x solvency margin, lagging behind Star Health’s retail-focused underwriting discipline (98.8% combined ratio).

• Strong operational fundamentals with high entry barriers: Central Mine Planning & Design Institute (CMPDI) holds a 61% market share in the Indian mining consultancy space, with a structural demand anchor in Coal India Limited (CIL)’s target of reaching 1 billion tonnes of coal production by FY27.
• High book profitability vs. working capital stress: While CMPDI operates an asset-light, high-margin model with EBITDA margins historically hovering near 40%, its working capital is severely constrained by a collection cycle averaging 229 days and trade receivables sitting at 169 days, primarily due to slower payment clearing processes across PSU subsidiaries.
• Diversification runway and regulatory overhang: Non-CIL revenue has scaled significantly, but structural constraints around talent retention (losing senior engineers to private MDOs) and the lengthy 15-to-18-month environmental clearance timelines for public sector projects present major execution risks post-listing.

• The upcoming $400 million IPO is a 100% Offer for Sale (OFS) by the parent, Torrent Investments, meaning zero fresh capital will enter Torrent Gas Limited (TGL). Future capital expenditure of approximately Rs 5,000 crore will be funded entirely through internal accruals and a robust domestic bank debt consortium.
• Unit economics are highly attractive, with TGL achieving a record EBITDA of Rs 10.80 per standard cubic meter (SCM) in Q1 FY27. CNG savings of 35% to 45% over petrol drive a rapid payback period of 6 to 8 months for commercial operators, positioning mature Geographical Areas (GAs) like Jaipur, Kota, and Moradabad to cross 18% ROCE.
• Marketing exclusivity expiries present minimal operational risk due to TGL’s 25-year infrastructure exclusivity. Potential open-access threats are mitigated by the sheer logistics of third-party pipeline layout and high wheeling tariffs determined by the Petroleum and Natural Gas Regulatory Board (PNGRB).

• Medtronic (MDT) announced an exchange offer on September 14, 2026 whereby investors can exchange their MDT shares for shares of MiniMed (MMED), Medtronic’s diabetes spin-off.

• To incentivize the exchange, MDT investors will receive $107.53 of value in MMED shares for every $100 of value in MDT shares.

• I expect the exchange offer to be oversubscribed.

• The 17,600 KRW tender offer valuation gap is highly deliberate, serving Realty Fine’s long-term goal of low-cost consolidation. The pricing represents a substantial discount to both the 21,000 KRW IPO price and the 27,159 KRW acquisition price paid by the SPC partners (Stonebridge Capital and LS Securities) in 2023. By securing 76.52% of the outstanding shares as of today, Realty Fine has unilaterally crossed the 2/3 (66.7%) special resolution threshold, enabling them to execute any subsequent merger, restructuring, or asset sales without minority approval, while setting the stage for an eventual squeeze-out.
• Refine’s core B2B model faces structural headwinds from South Korea’s aggressive regulatory shifts away from the Jeonse system. Financial Services Commission (FSC) initiatives to curb Jeonse loans for non-resident one-home owners and to expand Debt Service Ratio (DSR) limits, alongside reducing guarantee ratios from 80% to 70%, directly pressure loan volumes. This has triggered a critical strategic pivot toward a 70 to 80 billion KRW B2C Proptech M&A to diversify, using Refine’s massive cash pile.
• The board’s refusal to implement Cha Partners’ requested 91.5 billion KRW share buyback and cancellation reflects a severe governance conflict. Because the board’s decision-making is dominated by directors with overlapping ties to the largest shareholder (Realty Fine SPC), the company has resisted deploying its 190 billion KRW cash reserves (representing 66% of its market capitalization) for shareholder returns. Instead, the cash is being hoarded as a strategic buffer to support the B2C transition and potential Proptech acquisitions under the guise of “long-term growth”.

• Full Truck Alliance showed strong improvement in core margin in Q226 due to mix change
• We believe the company’s rate of top-line growth could begin to accelerate by end of H226
• At ~12x FY26 EPS and featuring a 4% dividend yield, shares appear attractive below US$9

• Bitari (BIAI) operates an exceptionally high-risk, low-margin hosting model with severe customer concentration, relying on a single client, ATA Investment LLC, for 91.5% of its fiscal year 2025 revenue. This leaves the company’s top-line entirely exposed to the solvency and operational health of one counterparty.
• The company is structurally hollow, run by just 4 employees and relying entirely on third-party contractor JWT Technology Inc. for operations and maintenance (O&M). This creates immense operational vulnerabilities, as any disruption in the JWT relationship or a key-man departure would instantly jeopardize their stated 98.5% historical uptime.
• Regulatory shifts in the ERCOT market, specifically the proposed NPRR-1337 protocol and Senate Bill 6 (SB 6), represent severe headwinds for Texas digital infrastructure operators. These changes aim to restrict price-responsive loads from lucrative demand-response programs, which will elevate net power costs and compress margins for under-scaled hosters.

• A key obstacle to developing Strike Energy’s flagship West Erregulla project has been removed, while the company’s funding position has strengthened.
• Strike Energy’s West Erregulla development takes shape A true ‘win-win’ agreement with Hancock, Macquarie suggests Funding pressures ease/capital raise potentially deferred De-risked Strike Energy might now find broader appeal

• Adani entered airport operations only in 2019–20, but now manages eight airports and serves more than 23% of India’s passenger traffic.
• The business has evolved from operating terminals to monetising the entire passenger journey through retail, food and beverage, duty-free, digital services, ground handling, cargo and city-side real estate.
• Alpha Wave Global, Premji Invest, Temasek and BlackRock-managed funds will invest Rs 9,825 crore of primary equity at an approximately USD 18 billion pre-money valuation.

• Mount Milligan to 2045, and Öksüt to fund Goldfield, Kemess, and Thompson Creek internally, with $451m cash, zero debt, and $1bn liquidity.
• Q2 2026 lifted gold guidance to 260 to 290koz; Türkiye halves Öksüt’s tax rate from 2027, and $200m of buybacks have been authorized.
• At 0.53x P/NAV versus peers at 0.7x, FY26E EV/EBITDA of 6.0x, P/B of 1.95x and derived ROCE of 23.5%.

• M&A Execution and Integration Drag: Computer Modelling Group’s (CMG) pivot to an M&A platform under CEO Pramod Jain has created a stark divergence between surface-level acquisition growth and the legacy business. While the roll-up of subsurface software like Bluware and SeisWare masks organic declines, integrating low-margin services is compressing overall EBITDA margins, requiring active restructuring of targets to lift margins from single digits to the 30% target.
• Strategic Disconnect in Capital Allocation: The decision to fund the C$20 million substantial issuer bid (SIB) tender offer using their C$100 million revolving credit facility is a defensive, non-strategic use of debt. It suggests that while the M&A pipeline is deep, near-term targets meeting their strict 20% after-tax IRR hurdle are scarce, and the presence of ex-Roper director Christopher Wright is pushing a more aggressive, debt-leveraged financial engineering model.
• Organic Core Erosion and Incentive Misalignment: Legacy reservoir simulation is facing structural headwinds, highlighted by a 16% organic revenue decline in Q1 2027 due to contract lapping and services wind-downs. Executive compensation remains heavily weighted to total revenue and EBITDA targets rather than isolated organic growth metrics, creating a structural incentive for management to paper over organic core leakage via dilutive acquisitions.

• Intesa Sanpaolo’s unsolicited €30.6 billion OPAS for MPS (announced June 8, 2026) is currently facing intensive regulatory scrutiny, particularly through the AGCM’s formal investigation opened on September 14, 2026, which highlights significant market overlaps in 20 Italian provinces for deposits and 17 provinces for SME lending.
• Banca Monte dei Paschi’s defensive strategy, featuring unsolicited twin all-share bids for Banco BPM (€25.3 billion) and Banca Generali (€8.7 billion), is highly constrained by Crédit Agricole’s 29.3% blocking stake in BPM. With Crédit Agricole openly rejecting the deal as unattractive, the likelihood of MPS’s “Pac-Man” strategy succeeding remains extremely low, and the upcoming extraordinary shareholder meeting on October 29, 2026, will act as the ultimate battleground under Italy’s passivity rule.
• MPS’s financial turnaround is robust, with a CET1 ratio of 16.3% and H1 2026 net profit exceeding €1.1 billion, but the management team under Luigi Lovaglio is severely stretched. The team is simultaneously trying to finalize the operational merger of Mediobanca (approved in March 2026) while defending against Intesa and managing friction from private power blocks (Delfin at 17.53% and Caltagirone at 10.26%).

• 17 Education & Technology Group Inc. is a leading AI-enabled education technology company in China that provides digital teaching, learning, and assessment solutions to education authorities, schools, teachers, students, and parents.
• Over its nearly 15 year history, the Company has built a large network of school, teacher and end users, along with an expanding proprietary data set generated by in-school and on-platform activities.
• YQ markets its AI platform and complementary hardware across three connected customer groups, including Government Agencies (G-end), Schools and Educational Institutions (B-end), and Direct to Consumer (C-end).

• Fujitsu’s core services business becomes structurally more profitable through AI delivery and pricing changes
• The new sovereign-AI bets turn from near-zero into a material business over the back half of the decade
• And the resulting cash gets deployed with discipline. The market remains sceptical. 

• Reuters leaks SK Hynix-Intel talks on U.S. memory production (Ohio lease or hyperscaler JV); SK Hynix’s same-day statement denies specifics, not the underlying talks.
• Chairman Chey (Jul) and CEO Kwak (Aug) already signalled U.S. capacity and a 2030 shortage — this “leak” is management’s own thesis, not new information.
• BULLISH maintained; TP KRW2,700,000, based on 10x FY27E earnings. Ohio plant optionality not yet in the number.

• The single-asset tolling model at El Teniente provides copper price leverage without exploration, reserve replacement, or growth capex; the contract runs to 2037.
• Debt-Free balance sheet and a rules-based capital return strategy sweep cash above a US$30m floor: US$41.7m returned in H1 2026 versus US$20.4m in FY25.
• 13.4x P/E, 6.4x EV/EBITDA, 8.6% yield; ROCE 75%; net cash US$50 mn, based on a copper price of USD 14,000/ton. 

• Simplifying the dual-class share structure (Class A to Class B discount) is legally and structurally locked. Under Spanish corporate law, any unification requires separate majority approvals from both Class A and Class B shareholders. Because the founding family holds their controlling 30%+ stake entirely in Class A shares, they will not vote to unify the classes without a premium or conversion ratio that heavily favors Class A, meaning a 1:1 conversion remains highly improbable.
• Free cash flow conversion remains constrained by structural related-party friction, despite improved governance. Although the appointment of Nacho Abia as CEO and Rahul Srinivasan as CFO has professionalized the C-suite, the underlying assets leased from Scranton Enterprises (such as the headquarters and plasma centers owned by Haema and BPC) continue to siphon cash through complex lease obligations and legacy cash-pooling agreements.
• Grifols continues to lag behind CSL in plasma collection yield and cost efficiency. Grifols’ Cost Per Liter (CPL) remains structurally higher than CSL’s, driven by a slower rollout of next-generation plasmapheresis technology (like Terumo’s Rika system) and a higher historical reliance on high-cost US donors, though the joint venture in Egypt is a mid-term attempt to diversify this cost base.

• Record FY26 delivery, in line with guidance.
• Lincotrade closed FY26 with revenue up 75.8% YoY to S$129.5 million, led by commercial revenue rising 84.0% to S$121.6 million as a record order book was billed out.
• Net profit attributable to shareholders more than tripled, rising 215.3% to S$8.1 million, as gross profit climbed 87.1% to S$17.3 million and gross margin expanded 0.8 percentage points to 13.3% on a richer commercial mix.

• The EQT Infrastructure proposal of A$3.13 per share (implying a A$9.4 billion enterprise value) represents a rich implied FY26 EBIT multiple of approximately 20x, which is a significant premium over historical Australian waste transactions that typically top out at 9x to 12x EBITDA for high-quality, scaled integrated platforms. However, activist shareholder Tanarra Capital (holding over 4% of Cleanaway) is opposing the board’s cooperative stance, claiming the valuation undervalues the company’s long-term infrastructure scarcity.
• Regulatory enforcement is becoming a major headwind for margins, exemplified by a A$27.5 million provision booked in July 2026. This provision followed a Victorian Supreme Court ruling that categorized quarry materials used as daily landfill cover at the Melbourne Regional Landfill (MRL) as “waste,” rendering them retroactively subject to the landfill levy. This decision significantly expands the legal definition of waste and exposes landfill operators to retroactive levy audits.
• Municipal collections remain a low-margin operational trap due to structural inflation in fleet maintenance and labor, which is governed by rigid Enterprise Agreements (EAs). While Cleanaway can pass through some of these costs, lag times in municipal price-escalation clauses create margin compression. Consequently, the company is shifting its capital allocation toward high-margin specialized segments, such as the A$377 million acquisition of Contract Resources in July 2025.

• Since the last reshuffle (August 11), our Model Portfolio has appreciated 1.18%, against MXASJ’s 0.92% advance. Since inception on May 15, 2025, our portfolio is up 44.9%, against MXASJ’s 45.8%.
• The main drivers of our portfolio were Korea (contributed 2.77% return) and Taiwan (0.34%). The returns were dragged down by China (-1.14%) and India (-0.66%).
• We exclude Reliance Industries and include Hitachi Energy, reaffirming our preference for Indian industrials. Our overweight on HK/China, Korea, India and underweight on Taiwan (but preference for Taiwan technology) continues.

• Toppan Printing (7911 JP) is accelerating its strategic transformation from a conventional domestic printing house into a global high-value technology and packaging leader, driven by its high-margin Electronics segment (semiconductor photomasks and FC-BGA packaging materials) and proprietary GL Barrier sustainable packaging solutions.
• Financial performance over the past three years highlights steady top-line growth, with net sales reaching JPY 1,805.0B in FY2026 (a 3.27% 3-year CAGR), though ongoing aggressive capital expenditures in next-generation semiconductor lithography and overseas barrier capacity have temporarily suppressed Free Cash Flow (-JPY 42.7B in FY2026).
• Enhanced corporate governance reforms and Tokyo Stock Exchange capital efficiency mandates provide a powerful re-rating catalyst, as management actively divests strategic cross-shareholdings, enhances dividend distributions (JPY 58-60/share range), and optimizes ROE toward double-digit targets.

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• In Q3 FY2026/9, Japan Business Systems, Inc. (hereafter, JBS or the Company) reported net sales of JPY 167,867 mn (+27.1% YoY) and operating profit of JPY 6,892 mn (+15.3% YoY).
• The Company maintained the upwardly revised FY2026/9 forecast announced in H1.
• SIR believes the Company’s share price tends to rise as EPS moves higher, making market expectations for profit growth an important factor in share price performance.

• Robust Financial Expansion and Margin Enhancement: Aksigorta has achieved substantial net earnings growth, delivering a 178.15% 3-year net income CAGR and expanding FY25 net margins to 18.51% (net profit of TRY 2,485.80m on TRY 13,428.42m revenue), underpinned by disciplined technical underwriting, dynamic portfolio repricing, and high investment yields on technical float.
• Strategic Joint-Venture Sponsorship and Multi-Channel Moat: Aksigorta benefits from a balanced ownership structure between Sabancı Holding (36%) and Ageas Insurance International (36%), integrating deep domestic conglomerate presence with global insurance expertise, while leveraging an exclusive bancassurance partnership with Akbank (700+ branches and market-leading mobile banking) alongside 3,750+ independent agencies.
• Operational Efficiency and Strong Float Cash Generation: The company has sustained superior cash flow generation, generating TRY 9,351.27m in operating cash flow in FY25, while maintaining an IT cost structure nearly three times leaner than Ageas Group international benchmarks via robotic process automation (180+ automated processes) and AI-driven underwriting.

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• We are upgrading our existing facilities and any discussions with customers at this point are based on the capacity that we believe is possible as a result of such upgrades.
• Demand is likely to exceed supply for more than three years, because of such supply constraints. In terms of the price level,  prices would need to be dramatically higher.
• We have no plans whatsoever to restart the Yoshinogari project. At current price levels, it is not viable. All costs are rising now, with Japan potentially headed for more inflation

• Our 2021 demographic and capacity-growth thesis largely worked, but property-led expansion introduced multi-year lags between capital deployment, occupancy maturation and earnings.
• FY03/2026 headline ROIC is roughly 6.8%; removing property revaluation noise lifts it to 8.1%, while occupancy normalization suggests roughly 9–10%.
• That narrows our original forecasting error but does not erase it: even seasoned-capital returns around 10–11% remain below our former 20% hurdle.

• Asana, Inc. reported second-quarter fiscal 2027 revenue of $216.4 million, up 10% year-over-year and above the high end of guidance.
• Growth was led by core customers spending at least $5,000 annually, which increased 11%, and enterprise customers spending at least $100,000, which grew 16%.
• Dollar-based net retention improved to 97% overall and 98% across core and enterprise customers, supported by healthier seat expansion and multiproduct adoption including AI.

• As expected, a SAMR investigation depressed top-line growth and profitability in Q226 
• Management offered no forward guidance on earnings call, but hinted at headwinds to come
• We believe it may take a few quarters for Trip.com to regain momentum

• Quality Power is moving from a specialist component maker toward a broader high-voltage technology platform spanning reactors, instrument transformers, power electronics and insulators.
• Q1 FY27 total income rose 32.1% YoY; the group order book reached Rs. 1,945.5 crore, extending visibility into FY28.
• Growth visibility has strengthened, but acquisition accounting, Turkey’s hyperinflation and a demanding valuation increase the importance of organic growth and operating cash flow.

• ATOSS Software SE is a premier European workforce management (WFM) software provider with a 20-year track record of record revenues and earnings, driven by a highly successful transition toward a high-margin, recurring Cloud/SaaS business model (>70% recurring revenue).
• The company commands a defensible economic moat built on unmatched domain expertise in complex European labor regulations, works council rules, deep enterprise integration (including premium SAP endorsement), exceptional customer retention (cloud churn <3%), and net retention rates above 115%.
• ATOSS maintains a pristine balance sheet with zero financial debt, best-in-class EBITDA margins (~38-40%), robust free cash flow generation (>95% cash conversion), and strong shareholder capital return illustrated by a 27.3% 5-year dividend CAGR and a 2.52% dividend yield.

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• Ondas has taken another major step in expanding its autonomous defense platform through the acquisition of Israel-based GATE Technologies and affiliated Bron Technologies for $205 million.
• The transaction comes as Ondas aggressively scales its exposure to Precision Strike, Counter-UAS, persistent intelligence, and autonomous defense systems under its broader One Ondas strategy.
• GATE manufactures Electronic Safe & Arm Devices, or ESADs, and advanced electronic fuzing systems used in UAVs, loitering munitions, missiles, and rockets, while Bron adds manufacturing capacity in Poland and access to European defense customers.

• PT Indonesia Fibreboard Industry Tbk (IFII IJ) is a leading integrated wood-processing player in Indonesia, specializing in Medium-Density Fibreboard (MDF), High-Moisture-Resistant (HMR) boards, and veneer, supported by a scale facility in South Sumatra with ~450,000 m³/year capacity and strategic backing from the ADR Group and Japan’s SMB Kenzai Co., Ltd.
• The company demonstrates superior profitability and cash generation post-Line 2 commissioning, delivering 31-34% gross margins, robust EBITDA margins consistently exceeding 31-35%, and free cash flow generation exceeding IDR 300 billion in FY24 and FY25.
• Trading at an undemanding valuation of 5.5x EV/EBITDA, 1.5x P/B, and 13.7x P/E with a robust net cash balance sheet and a 3-year dividend CAGR of 40.10%, IFII offers institutional investors a defensive, high-cash-conversion exposure to regional timber processing and export recovery.

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• Ambarella, Inc. reported its financial results for the second quarter of fiscal year 2027 with revenue reaching $108.1 million, slightly above the midpoint of its guidance and representing increases of 7.7% sequentially and 13.2% year-over-year.
• The company’s performance was driven by record edge AI revenue and growth in both its Internet of Things (IoT) and automotive markets, particularly from commercial vehicle applications.
• Automotive revenue slightly outpaced IoT growth, and non-GAAP earnings per share stood at $0.18.

• UiPath Incorporated reported its second quarter fiscal 2027 results with a 12% year-over-year increase in annual recurring revenue (ARR) reaching $1.938 billion and 13% revenue growth to $410 million.
• Normalizing for foreign exchange (FX) impacts, revenue growth was approximately 16%.
• The company continued its trend of GAAP profitability for the fourth consecutive quarter, with GAAP operating income improving to $32 million from a prior year operating loss, and achieved a non-GAAP operating margin of 22%, up over 400 basis points year-over-year, driven by operational efficiencies and disciplined execution.

• The screen isolates eight Hong Kong-listed companies with a five-year average ROCE above 15% (median 33.0%), spanning exchanges, medical aesthetics, toys, apparel, and networking hardware.
• Capital efficiency converts into cash: all eight have paid dividends every year since FY20, with a median trailing yield of 7.7% and cumulative payouts near half the average share price.
• Valuations remain undemanding: six of eight trades trade below 11x earnings and 6x EV/EBITDA, leaving Taste Gourmet, JNBY, and Dream International the best risk-reward.

• AMD raised its 2030 Server CPU Total Addressable Market (TAM) projection from $60 billion to $220 billion, targeting >50% market share as it scales multi-threaded architectures like “Venice”.
• Shifting from isolated CPU/GPU/FPGA product roadmaps to a combined Data Center Roadmap Steering Group. Hardware and software trade-offs are now evaluated holistically to deliver full rack-scale system solutions like Helios.
• AMD targets a >60% CAGR in Data Center revenue and >80% CAGR in AI Data Center revenue over its strategic timeframe, driving overall company growth above 35% annually.

• Xiaoxiang Supermarket expanded its footprint from 55 to 68 cities.
• Revenue growth rebounded to double digits After three sluggish quarters.
• The gross margin continued to recover, while marketing expenses has subsided.

• On 15 September, it was announced that Samsung SDS (018260 KS) has become the first Korean company to achieve “Select Tier” partnership status with Anthropic in the “Claude Partner Network.”
• This partnership is likely to have a positive impact on Samsung SDS’s share price in the coming weeks, as Anthropic IPO is likely to be the largest ever in history.
• Samsung SDS’s valuations have become more attractive. It is trading at EV/EBITDA of 5.6x and P/B of 1.5x based on 2027 consensus earnings estimates. 

The Corporate Webinar will be hosted on Tuesday, 13 October 2026, 18:00 SGT.

About Elite UK REIT

Elite UK REIT (“英利英国房地产信托”), is a UK REIT listed on the Singapore Exchange and managed by Singapore-headquartered Elite UK REIT Management Pte. Ltd. (the “Manager”).

With its portfolio, Elite UK REIT is one of the largest providers of critical social infrastructure to the UK’s Department for Work and Pensions and other government departments, with a portfolio of mostly freehold assets valued at £489 million as at 30 June 2026.

The portfolio has 148 properties which are mostly freehold or virtually freehold, geographically diversified across the UK and strategically located in town centres, near amenities and transportation nodes. The Manager is also capitalising on sectors exhibiting strong growth potential in the UK, such as purpose-built student accommodation and built-to-rent residential assets. With a long and diversified lease expiry profile and prudent capital management

For more information on Elite UK REIT, please visit https://www.eliteukreit.com/

• NAND Cycle Peak and Hyperscale Demand Bottlenecks: Kioxia is enjoying record-breaking near-term profitability, with Q1 FY2026 operating margins hitting 75% driven by enterprise SSD (eSSD) demand from AI infrastructure. However, the market is misinterpreting the cyclical tailwinds. Hyperscaler pre-booking has locked in 100% of 2026 capacity, but the cooling of retail/client channels and rising capital constraints at key hyperscalers indicate a cyclical peak in late 2026, making the proposed 2027 U.S. ADR listing a race against a cooling market.
• BiCS10 Ramping vs. Korean Peers: The transition to the 332-layer BiCS10 node at the newly opened Kitakami K2 fab represents a massive leap in areal density (greater than 29 Gb/mm² for TLC and 37 Gb/mm² for QLC). While Kioxia’s CMOS directly Bonded to Array (CBA) architecture keeps it cost-competitive with Samsung and SK Hynix despite lower layer counts, the co-development joint venture structure with SanDisk (now independent post-spin from Western Digital) severely hinders technology transition speed and capital flexibility.
• The Liquidity and Governance Gameboard: With Bain Capital having fully exited its direct fund-level stake in July 2026, and SK Hynix-backed SPC BCPE Pangea Cayman2 becoming Kioxia’s largest shareholder in August 2026 at 14.19%, the strategic path is fraught. The planned $10 billion U.S. ADR listing on Nasdaq is not an expansion play—it is a critical necessity to address Kioxia’s ¥447.5 billion in unsecured bank loans, fund the massive capex required for Kitakami K2, and provide a clear exit for SK Hynix’s indirect convertible bond exposure before the next structural down-cycle.

• The company released a positive set of results for H1 2026, with improvements across the board.
• Revenue increased by 0.8% yoy to GBP18.9mn, on new acquisitions and a higher occupancy rate (99.9% vs 95% a year ago).
• Distributable income grew 3.6% yoy to GBP10.1mn and dividend per unit (DPU) rose to 1.55 pence (vs 1.54 pence a year ago), representing a distribution yield of 9.8%.

• Micron guided US$50bn / 86% GM / US$31 EPS; the Street sits on the guide but Goldman’s US$51.9bn / US$32.54 is the bar the crowded long actually has to clear. 
• The 29 July SK Hynix template applies: a record print 5% under consensus fell 9.6% and changed nothing; Micron’s FQ4 guide annualised already equals our FY2027E EPS of US$125. 
• BULLISH maintained, TP US$1,375 (11× FY2027E EPS US$125); at 7.4× with US$100bn contracted and US$22bn deposits banked, a guidance-level “miss” is an add, not a thesis event. 

• MongoDB reported strong financial and operational results for its second quarter of fiscal year 2027, with total revenue reaching $771.8 million, marking 30% year-over-year growth—the fastest growth since fiscal 2024.
• Atlas, the company’s cloud database service, grew approximately 29% year-over-year for the fifth consecutive quarter, driven primarily by large enterprise customers and expanding momentum in artificial intelligence (AI) workloads.
• The Enterprise Advanced (EA) segment, encompassing self-managed deployments, experienced even stronger growth of 36% year-over-year, partly due to the recent launch of Search and Vector Search capabilities that support AI applications in governed environments.

• Market Leadership in Buffalo Meat Exports: HMA Agro Industries Limited (HMAAGRO) is one of India’s top three exporters of frozen boneless buffalo meat (carabeef), commanding over 10% of India’s total export volumes. The company operates a fully integrated farm-to-fork processing infrastructure with modern abattoirs certified by APEDA and international food safety authorities, serving over 40 countries across the Middle East, Southeast Asia, and Africa.
• Top-Line Expansion vs. Margin Compression: Total revenues expanded robustly from INR 48,132.90 million in FY24 to INR 69,164.95 million in FY26, representing an annualized growth of over 19.8%. However, operating margins remain razor-thin (FY26 EBITDA margin of 3.22% and Net Margin of 2.38%), heavily exposed to raw livestock procurement costs, export freight volatility, and adverse foreign exchange fluctuations.
• Attractive Valuation Offset by Cash Flow Volatility: Trading at a trailing P/E of 4.7x and P/B of 1.1x at a share price of INR 21.83, HMAAGRO presents deep optical value. However, persistent working capital demands and procurement advances have led to negative free cash flows in two of the last three fiscal years (FY26 FCF at -INR 1,392.70 million), keeping financial resilience constrained.

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