Equity Bottom-Up

• Context: Statistical analysis of a relative value opportunity in the Australian Oil & Gas industry between Ampol (ALD AU) and Woodside Energy Group Ltd (WDS AU).
• Highlights: Going long Ampol and short Woodside targets an 8% return to the statistical mean reversion level.
• 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.

• In FY25, Sysmex Corp (6869 JP) revenue rose 10% YoY to ¥509B. Operating profit margin expanded 20bps to 17.2%. Amid rising costs, favorable Fx impact of ¥8.6B drove the margin.
• Sales grew across regions as instrument installed increased and use of reagents multiplied. America’s volatile margin is a concern, amid the fact that Japan remains the major margin contributor.
• For FY26, Sysmex has guided for revenue of ¥535B (+5% YoY). The company has factored in the impact of tariff estimating annual cost of sales impact of approximately ¥3B-4B.

• Context: Statistical analysis of a relative value opportunity between Perseus Mining (PRU AU) and Capricorn Metals (CMM AU), two Australian gold miners.
• Highlights: Going long Perseus Mining and short Capricorn Metals targets a 9% return to the statistical mean reversion level, with Perseus offering cheaper valuations and higher growth.
• 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.

• JFE Holdings rebounded from COVID-era losses to deliver peak earnings in FY22, followed by a gradual normalization through FY25, with stable steel volumes but declining margins amid weak domestic demand.
• The group is investing ¥970B (~$6.5B) through FY2030 across decarbonization, product upgrades (e.g., electrical steel, galvanizing), and overseas downstream expansion to sustain competitiveness.
• Adjusting for its ₹910B (~¥1.7T) JSW stake, ~30% of EV, JFE trades at just 2.7x EV/EBITDA—deeply discounted vs peers like Nippon Steel and POSCO.

• Linde, a leading global industrial gases and engineering company, recently reported its first quarter financial results for 2025.
• Despite navigating economic headwinds, the company demonstrated resilience, reflecting the robustness of its operating model.
• Linde employees managed to deliver an 8% growth in Earnings Per Share (EPS) excluding foreign exchange impacts, while expanding operating margins by 120 basis points to 30.1%.

• Okta, Inc. has provided a mixed yet insightful picture of its progress and challenges from its latest earnings results.
• On the positive side, the company has reported robust financial indicators for the first quarter of fiscal year 2026, including record operating profitability and strong cash flows.
• These financials showcase Okta’s capability to efficiently manage costs and drive profitability despite a generally cautious economic environment.

• Kinder Morgan reported a quarter with financial performance mostly in line with expectations, pointing to a strong demand for natural gas, particularly driven by LNG exports and increasingly by power generation needs, which include data centers.
• The company is witnessing encouraging demand projections tied to a continued growth in U.S. natural gas consumption, expected to rise significantly by the decade’s end.
• Current transport volumes have reflected the robust demand across key sectors such as residential, commercial, and power generation, with the company citing historical demand benchmarks from past decades to illustrate the potential for continued growth.

• Abbott Laboratories recently shared its first quarter 2025 earnings results, revealing a strong performance amidst a challenging global environment influenced by new tariff policies and ongoing economic uncertainties.
• Abbott’s diversified model and strategic framework contribute to the company’s operational resilience, as evidenced by its ability to meet growth objectives and deliver high single-digit sales growth alongside double-digit earnings per share (EPS) growth.
• Baptista Research looks to evaluate the different factors that could influence the company’s price in the near future and attempts to carry out an independent valuation of the company using a Discounted Cash Flow (DCF) methodology.

• Digital Turbine, Inc.’s latest financial results demonstrate a blend of positive developments and ongoing challenges.
• For the fiscal fourth quarter ending March 2025, the company returned to year-over-year growth, generating $119.1 million in revenue and $20.5 million in EBITDA, with a non-GAAP earnings per share of $0.10.
• This marks a 6% increase in revenue compared to the previous year and a significant 66% rise in year-over-year EBITDA.

• Boston Scientific Corporation reported strong first quarter 2025 results, exhibiting significant growth in both revenue and earnings.
• The company’s total operational sales increased by 22% while organic sales grew by 18%, surpassing the upper range of guidance of 14% to 16%.
• In terms of earnings, the first quarter adjusted EPS reached $0.75, a 34% growth over the previous year, exceeding the projected range of $0.66 to $0.68.

• Oriental Watch (398 HK) delivered a resilient result with revenue/profits -5%/-20% YoY (ex-one offs -11.5% YoY), despite weakness in HK (22% of sales), where the company is now making losses. 
• Cash & Investments dipped to 901 mn HKD, representing about 54% of the market capitalization. The company declared a 16.7 HKD cent/dividend (FY25: 41.3 HKD/cent yield 12%). 
• We believe that FY26 will be a year of consolidation, and with a weak HK, profits will remain subdued. Stock trades at 8.4x FY25 with a 12% dividend yield. 

• Septeni Holdings is one of the leaders in Japan in the digital marketing business which mainly includes digital advertising, marketing support, data & AI-driven solutions.
• The company has also aggressively raised dividend payouts which is a clear sign of improving corporate governance.
• The company is also well positioned to deliver sales growth rate of about 5-7% per year in the next 2-3 years with 20%+ per year growth in operating profit.

• Earnings stable over 3 years as machinery and power offset weak steel margins; ROIC gradually improving.
• Focus on KOBEMAG®, machinery expansion, and carbon-neutral projects with disciplined capex.
• Trades at ~5x P/E due to low ROIC, past governance issues, and misperception as a pure steel cyclical.

• The Bank of Japan left the short-term interest rate unchanged, but the governor stated that the tapering of JGB buying will continue, albeit with an eye on market stability
• This implies that the JGB yield curve is likely to continue steepening going forward, which is constructive for Japanese banks; in addition, market lending rates to April continue to rise
• We reassert buys on Resona, Mizuho, Shizuoka and Kyoto aided by our proprietary scorecard, and based on two core attributes; gearing to higher interest rates and cross-holdings to market capitalization

• The JPY Yen has depreciated 25% against USD for the last 5 years, this has made Japan an extremely attractive destination for foreigners
• The Japan’s hotel sector is known by its low supply, partly due to higher development cost and labour shortage.  We think REVPAR and ADR will continue to be strong
• We like Japan Hotel REIT and Invincible for their hotel exposure.  We think investors should closely monitor the Yen movement as well as BOJ policy

• CSL Ltd (CSL AU) received FDA approval of Andemry, for prophylactic use to prevent attacks of hereditary angioedema (HAE) in adult and pediatric patients aged 12 years and older.
• CSL will launch Andemry in the U.S. immediately, with availability before the end of June. Thus far, Andemry has been approved in Australia, the UK, EU, Japan, Switzerland, and UAE. 
• With FDA approval, Andembry is now set to compete with Takeda’s blockbuster drug Takhzyro and BioCryst Pharmaceuticals’ oral HAE drug Orladeyo. Andembry has a convenience and efficacy edge over Takhzyro.

• BlackLine, a leader in financial automation solutions, recently announced its Q1 2025 earnings results, highlighting both opportunities and challenges as the company navigates its ongoing journey towards growth and market expansion.
• The company reported a total revenue increase of 6% year-over-year, reaching $167 million, with strong subscription and services revenue performance.
• However, the financial results are a mix of positives and certain areas that might require attention.

• In Q2 FY24/9 financial results reported exactly one year ago, profit attributable to owners of parent declined -74.1% due to recording an impairment loss of JPY 1,720mn in the 2Q as an extraordinary loss for the entire unamortized balance of goodwill associated with the acquisition of consolidated subsidiary NEXTSCAPE Inc.
• In SIR’s follow-up report, we wrote “management promptly recognizing the impairment and withdrawing the FY25/9 OP MTP target effectively minimizes future down-side risk.
• In the meantime, core business performance continues to grow at double-digits. ”

• Capri Holdings Limited’s recent earnings reflect a mix of strategic changes and financial outcomes that should be carefully considered by investors.
• The company is in a transitional phase, highlighted by the announcement of the pending sale of Versace to Prada Group.
• The decision to divest Versace aims to refocus resources on the Michael Kors and Jimmy Choo brands, with potential benefits of debt reduction and reinstatement of a share repurchase program.

• As scientific progress increasingly depends on more complex equipment and precision instruments, we believe wholesaler and distributor AS ONE is well-positioned to capture demand through expanding its presence in the high-end segment.
• Demand for scientific supplies and lower-end scientific equipment remains stable, providing a resilient, recurring revenue base.
• The company’s growth has consistently outpaced and shown limited correlation with national R&D spending. 

• We believe Pop Mart’s advantage is its ability of choosing available IPs.
• We expect Pop Mart’s revenue will grow by 69% in 2025.
• However, the stock is overvalued by cross-sectional comparison and fairly valued by time-series comparison.

• We are gradually building a high-conviction coverage of ideas for mid and small-cap companies in the Philippines.
• We established metrics focusing on high ROCE, sustainable growth of 10-15% year-over-year, robust balance sheets, and prudent capital allocation, essential elements for identifying potential multi-bagger opportunities.
• We update our readers on developments in Asian Terminals (ATI PM) and Philippine Stock Exchange (PSE PM) 

• Nippon paid full price despite governance restrictions; with no credible rival, rejecting the golden share risked collapsing the deal.
• Historical golden share precedents imply 10–20% valuation discounts, yet Nippon accepted late-stage constraints without renegotiation.
• Funding mix includes bridge loans, hybrids, and asset sales, but proposed equity issuance near 40% below book risks EPS dilution and undermines capital discipline messaging.

• Kimly is a traditional coffee shop, food court and industrial canteen operator in Singapore
• The business is stable ( revenue & ROE) & the company enjoys high occupancy rate 
• Profitability is facing challenge due to rising operational costs and increasing competition

• KPIT Technologies (“KPIT”) reported $280mm worth of deal wins in Q4Y25, well beyond the typical run-rate of $150mm+, despite the tough demand environment, which demonstrates KPIT’s strong competitive positioning.
• KPIT’s Q4FY25 PAT excluding one-time income grew 18%+ YoY in INR and 15% YoY in constant currency (CC) terms. Revenue growth was 15% YoY and 3% QoQ in CC terms.
• Margins continued to be strong with Q4FY25 EBITDA margin at 21.1%. With this, the full-year FY25 EBITDA margin ended at 21%, in line with the upgraded guidance.

• Abandoned Restructuring: Recently Dongfeng Motor (489 HK) confirmed that there is no restructuring activity involving its controlling shareholder.This raises hope that it is looking to turnaround its operations by itself.
• New Energy Vehicle (NEV) transformation gaining momentum: NEV sales grew 34.4% YTD May 2025; Dongfeng leads with proprietary EV platforms, smart tech integration, and Huawei-backed high-end launches.
• Trades at just 0.32x P/B, Cash at USD 14bn is much higher than market cap of USD 4bn. significantly undervalued versus peers, despite strong cash reserves,rising exports, and NEV scaling.

• Q1 2025 results reflected a transitional quarter with lower grades, but FY2025 guidance was maintained.
• Ongoing investments in smelter ramp-up, power infrastructure, and long-term plans for Elang underscore AMMN’s integrated growth strategy.
• Valuations appear premium vs peers, but are partly justified by structural cost advantages, downstream leverage, and world-class Elang optionality—though single-asset exposure remains a key risk.

• Allegro MicroSystems has reported its financial results for the fourth quarter and the full fiscal year 2025.
• The company is focused on strengthening its market position through innovation and operational efficiencies.
• President and CEO Mike Doogue, who ascended from being the company’s first Chief Technology Officer, emphasized a strategic focus on expanding product capabilities and extending Allegro’s footprint in lucrative markets such as automotive, industrial, and emerging sectors like medical and robotics.

• The latest financial results for Arm Holdings reflect a strong finish for their fiscal year ended March 31, 2025, marked by record-breaking revenue milestones.
• Arm’s performance was driven by growing demand for power efficient compute solutions, particularly in artificial intelligence (AI) from cloud to edge.
• The company achieved quarterly revenue exceeding $1 billion for the first time, with fiscal year revenue surpassing $4 billion.

• ATI reported robust first-quarter financial results for 2025, showing continued strong momentum.
• Revenue grew by 10% year-over-year, reaching approximately $1.14 billion, mainly driven by high demand in aerospace and defense (A&D).
• The company’s adjusted EBITDA of $195 million exceeded expectations, with adjusted earnings per share also surpassing the top of guidance.

• NVIDIA Corporation is a computing infrastructure company that provides graphics, computing, and networking solutions across the United States, Singapore, Taiwan, China, Hong Kong, and other in- ternational markets.
• The Company’s shares have been listed in the Nasdaq Composite stock market index since January 22, 1999, and are included among the companies with the highest market capitalization globally.
• Additionally, Nvidia’s shares are included in several national indices, such as S&P 500, Dow Jones, NASDAQ-100, and DJ Semiconductors. In May 2024, Nvidia Corporation announced a ten-for-one stock split.

• Nippon Steel has acquired U.S. Steel for $14.2 billion in cash, adding 23 Mt of crude steel capacity and a full U.S. and EU footprint.
• The acquisition marks a bold step toward NS’s “100 MT Vision,” diversifying earnings beyond Japan and strengthening presence in a geopolitically stable market.
• U.S. Steel remains heavily BF–based and tied to a structurally flat demand market; long-term steel consumption in the U.S. has declined, making returns dependent on aggressive modernization & macro tailwinds.

• AMD snagged Sam Altman as a guest speaker and advocate for the company’s next generation MI450 accelerator product 
• Oracle announced their intention to create a zetascale AI cluster based on AMD’s MI355X GPUs
• Marvell announced its custom Ultra Accelerator Link (UALink) scale-up offering. Astera Labs will be next in line.

• Marvell AI event yesterday, good efforts to explain its Data Center / Accelerators roadmap, growth opportunity: ~50% Cagr to 2028, a bit higher than TSMC (45%), lower than AMD (60%). 
• CEO suggests that data center revenues can increase 4.4x to 2028, total revenue to ~triple to CY28. That’s possible but Marvell’s fragility is margins and lower scalability than AMD, Nvidia.  
• The nature of custom-designed ASICs is a lot of R&D for a single customer. Marvell GAAP margins are thin and therefore a binary bet on operating leverage.

• Under Armour’s fourth-quarter fiscal 2025 earnings report reveals a complex narrative, reflecting both strides in strategic realignment and significant challenges in market execution and financial performance.
• On the positive side, Under Armour demonstrated notable progress in several areas, including gross margin improvement, strategic streamlining, and brand repositioning efforts.
• The company increased its gross margin by 170 basis points to 46.7%, driven by reductions in product and freight costs, a decrease in promotional activities, and strategic pricing benefits.

• From 15th may to 17th June our Asia-ex-Japan Model Portfolio returned 3.37% vs MSCI Asia-ex-Japan’s 2.62%. Overweight on Korea and stock selection in HK/China, Taiwan and Philippines helped.
• Top 5 performers were Digiplus (+31.9%), SK Hynix (+27.1%), Hana Financials (+23.8%), Netease (+21%), CCB (+9.8%). The worst 5: Alibaba (-11.4%), BYD (-8.5%), Trip.Com (-7.4%), Titan (-7.2%), M&M (-5.1%).
• Our themes – tech investment momentum, Chinese consumption revival, cyclical recovery in India and dividend yield across the region – are working fine. We make no changes to our portfolio.

• BlackBerry’s fourth quarter and full fiscal year 2025 results demonstrate a combination of positive achievements and areas of uncertainty.
• The company posted total revenue of $141.7 million for the quarter, surpassing the upper limit of its guidance range.
• Specifically, revenues from the QNX and Secure Communications divisions also exceeded their respective expectations at $65.8 million and $67.3 million.

• Bajaj Finance Ltd (“BAF”) reported a healthy Q4FY25, thus closing the full-year FY25 on a strong note.  AUM ended FY25 at INR 416,661cr, a growth of 26% YoY.
• Customer franchise had crossed 100mm and is now close to 102mm. Notably, Bajaj Finserv App now has 70mm+ customers. FinAI transformation is also progressing well.
• While FY25 had some challenges due to higher credit cost and NIM compression, BAF is all set to post a strong FY26 led by stable asset quality and NIM.

• In the first quarter of fiscal year 2026, nCino, Inc. reported financial results that provide insights into both its strengths and areas for improvement.
• Total revenues reached $144.1 million, marking a 13% year-over-year increase.
• This growth was primarily driven by robust subscription revenues, which grew by 14% to $125.6 million.

• Integral Ad Science (IAS) presented a mixed but notably strong performance in their Q1 2025 financial results.
• The company displayed an impressive 17% growth in revenue to $134.1 million, surpassing their prior guidance.
• Growth was largely driven by a 24% increase in their optimization segment, buoyed by the financial services and retail verticals.

• BYD announced that the company would provide price discounts for 22 models.
• BYD has scale advantage over other NEV car makers and the NEV industry has bargaining power over suppliers and dealers.
• The auto association and the Ministry of Industry are trying to protect small companies from bankruptcy.

• MHI has delivered a strong turnaround over the past four years, with revenue up 26% and business profit expanding nearly 10x from FY22 to FY25
• The consolidated order backlog crossed ¥10.2 trillion in FY25, up ~22% YoY, offering ~2 years of forward revenue visibility and skewed toward high-margin Energy and Defense segments.
• While the stock has rallied sharply, management’s solid FY25–30 guidance, along with structural tailwinds from energy transition and defense spending, continue to underpin the long-term thesis.

• We recently visited Guangzhou city, a tier one city in China, on a vacation trip. 
• One of the malls that we visited happened to have several listed tea chain stores.
• We took a snapshot of the shop traffic and noted the difference in locations of various stores. We also ordered tea drinks from two of these stores.

• Shiseido’s core brand remains strong, but years of weak growth, high costs, and tariff risks have pushed valuations to deeply discounted, near-decade lows.
• Early signs from Japan show margin recovery is possible; aggressive cost-cutting could double core operating margins and unlock significant upside if execution holds.
• If management fails to deliver, Shiseido’s global brand equity, strategic footprint, and low valuation make it an obvious acquisition target for PE or industry buyers.

• MHI is up nearly 60% year-to-date to 46x management’s EPS guidance for FY Mar-26 and 27x our EPS estimate for FY Mar-30.
• By then, we expect Air, Defense & Space revenues to double and the division’s operating margin to rise from 10% to 15%, which is the likely cap on profitability. 
• Given Japan’s uncertain finances and the long time horizon that should already be discounted, we recommend profit taking. 

• TSMC’s Next Generation 2nm Node Gathers Momentum as Intel Lags Behind
• TSMC’s Arizona Plant Ships First AI Chips — But Taiwan Remains Core to Packaging
• MediaTek (2454.TT): Chinese Stimulus Program Might Lose Actively; Google DPU Project Delay to 2026. 

• HZL has approved a ₹12,000 crore investment to set up a 250 KTPA integrated zinc smelter at Debari as part of its 2x capacity expansion plan.
• While smelting investments are not inherently value-accretive due to low TCs, they are necessary to process captive ore and minimize logistics costs.
• The overall growth outlook remains strong, but the pending mine lease expiries by 2030 pose a material long-term risk.

• Boss delivered a robust March 2025 quarter, with Honeymoon generating free cash flow and production ramping sharply.
• The company targets ~2.9M lbs annual output by FY27, supported by Alta Mesa and multiple exploration assets.
• Valuations remain attractive at ~8× forward P/E, though uranium price volatility and execution risks persist.

• Yes, I know I wrote this one up a year ago, but things have changed to make this a more interesting investment opportunity.
• I would recommend holding this in an account where you can sit on it for a few years.
• The ultimate IRR will be attractive, but this isn’t a quick flip.

• KEPCO E&C is well-positioned to benefit from the global revival in nuclear power, with strong domestic visibility and growing international interest in its engineering capabilities. 
• Its proprietary APR1400 reactor platform anchors the business, supported by verticals in O&M, decommissioning, and green energy EPC. 
• While earnings have grown sharply on margin gains, high valuations and project execution risks—particularly overseas—warrant careful monitoring.

• Yamada, Japan’s leading home appliance retailer, trade at a PER of less than 9x. Nitori, the leading furniture retailer trades at about 17x.
• Both companies, having saturated their core market, are diversifying into the other’s territory.
• Key Takeaway: Nitori is diversifying into a business with inherently lower margins, while Yamada moves into one with inherently higher margins.

• In this Postcard Edition, we detour and go international—to the streets, shops, and supermarkets of Vietnam. Choosing Vietnam as a country to explore and begin building our Asian Coverage.
• Despite strong manufacturing fundamentals, capital markets remain narrow, with limited institutional participation and underrepresentation of export-led sectors.
• Vietnam is on our watchlist for its evolving opportunity set, and we will continue tracking IPO activity, MSCI inclusion efforts, and policy reforms.

• U.S. political moves last month backing nuclear power are part of a long-term secular trend of increasing global support for the industry which could drive a uranium rebound 
• A nearly 40% uranium slump from early 2024 to March 2025 has priced in a significant degree of the industry’s challenges, and a price recovery has started 
• As the world’s largest producer, Kazatomprom is well positioned for a rise in uranium, it has lagged the recent sector rebound, and trades at a moderate 1.4x P/B ratio  

• Hennes & Mauritz AB (H&M Group) presented its first quarter results for 2025, reflecting a mixed performance amid efforts to strategize for long-term profitable growth.
• Sales in Swedish krona grew by 3%, while local currency sales increased by 2%.
• The company experienced strong sales performance in regions like Western, Southern, and Eastern Europe, particularly in Germany and Poland, but sales were weaker in Northern Europe, including the Nordics and the U.K., as well as in the U.S. Baptista Research looks to evaluate the different factors that could influence the company’s price in the near future and attempts to carry out an independent valuation of the company using a Discounted Cash Flow (DCF) methodology.

• Ciena Corporation’s financial results for the fiscal second quarter of 2025 reflect robust performance and strategic positioning within the dynamic networking and telecommunications industry.
• The company reported revenue of $1.13 billion, marking alignment with the high end of their guidance, an indicator of successful strategy execution and market demand.
• This strong revenue performance is underscored by substantial growth in cloud provider revenue, which represented 38% of total revenue and grew by 85% year-over-year to over $400 million in the quarter.

• Intel layoffs now extending to production in US, Israel. Intel’s revenue/employee is half that of AMD, TSMC. An AMD or TSMC employee generates 2x more revenue than an Intel employee. 
• Intel shareloss in PC, Server continues. Over the past 4 years Intel lost 6 percentage points PC market share (down to 76%), 13 percentage points in server (down to 73%).   
• Intel is now without an AI / GPU roadmap. It looks bad but the twist is it helps Intel requalify with Nvidia DGX, replacing AMD. Weakness breeds strength.   

• Denison’s core asset is the Phoenix ISR project within the Wheeler River property, offering high-grade reserves and low projected costs in Canada’s Athabasca Basin. 
• First production is targeted for 2028, with ramp-up to 6.5M lbs U₃O₈ by 2030, contingent on timely permitting and funding.
• While trading at a premium to in-situ reserve value, the stock reflects early-mover ISR potential, but remains exposed to development, financing, and uranium price risks.

• Keysight Technologies reported its fiscal second quarter 2025 earnings, highlighting several key aspects that investors may find noteworthy.
• The company delivered a robust performance, with revenues at $1.3 billion and earnings per share of $1.70, both exceeding the high-end of guidance.
• This performance marks continued revenue growth, driven by strong demand in the Communications Solutions Group (CSG) and a return to growth in the Electronics Industrial Solutions Group (EISG).

• GameStop, the once-mighty video game retailer turned meme stock sensation, is back in the headlines—but not for reasons that inspire confidence.
• The company recently announced a $1.75 billion offering of 0% convertible senior notes due 2032, triggering a nearly 20% plunge in its share price.
• Investors were spooked not only by the prospect of future dilution but also by GameStop’s new strategy: pouring hundreds of millions into Bitcoin, mimicking the controversial playbook of MicroStrategy.

• Indutrade AB’s recent quarterly earnings present a nuanced picture of its current operational and financial health.
• The company reported a 5% organic growth in order intake amidst an uncertain market environment.
• This was primarily driven by strong demand in sectors such as pharmaceuticals, the broader process industry, and energy.

• Pop Mart International Group (9992 HK)  opened its first dedicated jewellery concept store, POPOP, in Shanghai last Friday, featuring accessories based on its best-selling characters like Labubu, Molly, and Skullpanda.
• The jewellery line represents a natural, high-return extension of Pop Mart’s brand. If scaled successfully, it could support overall revenue growth, enhance group margins, and contribute to higher returns.
• Expect high margin, high return casual jewellery business to support growth and uplift margins going forward and  lead to analyst upgrades to future revenues/earnings. 

• TSMC: +21.5% Premium; Consider Shorting ADR Spread at Current Level
• UMC: +2.3% Premium; Can Consider Shorting ADR Premium at Current Level
• ASE: +3.8% Premium; Wait for More Extreme Premium Before Going Long or Short the Spread

• Paladin reported a Q3 FY25 net loss of US$38M, impacted by non-cash impairments and ramp-up costs, though production at Langer Heinrich hit post-restart highs.
• Management targets steady-state output of ~6 Mlb by FY27, with uranium demand set to outpace supply driven by new reactor builds and SMR adoption.
• At core EV/EBITDA of ~2.8x on US$70/lb uranium, valuations appear undemanding relative to long-life assets and sector-leading leverage to uranium prices.

• Resilient FY25 Margins: Despite a 17.5% revenue drop, Chow Tai Fook Jewellery (1929 HK) expanded operating margins by 400bps through cost control and premium product mix.
• Brand-Led Recovery in FY26: Signature launches, digital sales, and store optimization to drive Same Store Sales Growth (SSSG) recovery and sustain high operating leverage.
• Valuation Supported by Fundamentals: Valuation at 20.8x P/E (TTM) valuation justified by strong ROE (>20%), margin leadership, and stable dividend payout (~88%) versus regional jewellery peers.

• The footwear retail sector is a one horse race, with that horse being ABC Mart.
• It continues to grow at a respectable rate while increasingly diminutive rivals contract.
• ABC Mart is expanding further into the apparel category too, providing more room for future growth.

• BILL Holdings shares have materially underperformed year-to-date and fell ~51%. Shares saw selling pressure post 2QFY25 earnings as results indicated weak outlook.
• I see limited room for downside given current valuation of ~3x 2025E EV/Revenue (with ~13% growth) and recent acquisition of AvidXchange at a higher multiple.
• I believe BILL’s current attractive valuation levels can be viewed as opportunity to unwind bearish positions and valuation looks more reasonable vs. peers, especially AvidXchange.

• We anticipate that 2H26 may not be strong for Mediatek Inc (2454 TT), and a typical peak season demand is unlikely.
• Chinese National Development and Reform Commission (NDRC) and the Ministry of Finance issued an urgent response: the current unified deadline for the 2025 national subsidy policy remains December 31, 2025.
• Mediatek Inc (2454 TT) recently underperforms among large-cap stocks due to delay in Google’s Tensor Processing Unit (TPU) project, affecting next year’s revenue and profit.

• 2025 GPU (Blackwell for Nvidia, MI350 for AMD) use HBM3e 12Hi. SK Hynix and Micron supply Nvidia, Samsung has failed qualification again. Micron and Samsung supply AMD.  
• 2026 GPU (Rubin, MI400) use HBM4 12Hi. SK Hynix, Micron are qualified by Nvidia – that’s done. Micron is closing the gap with Hynix. Samsung still nowhere to be seen.
• Samsung got its consolation prize: AMD is using its HBM3e 12Hi in MI350. It looks like Broadcom will use Samsung’s HBM3e 8Hi in 2 projects (speculatively Apple and OpenAI).

• WSJ reported that Amazon and other major multinational in the US are actively considering on potentially issuing their own stablecoins. This could negatively impact card issuers such as Samsung Card. 
• Once stablecoins are legally approved in South Korea and some of the major merchants in Korea start to use stablecoins, the current revenue streams of Samsung Card could get disrupted.
• Although the exact levels of revenue disruption still remain uncertain, many investors do not like uncertainty which means that some investors could start to reduce their holdings on Samsung Card. 

• SHI reported robust Q1 2025 results with revenue of KRW 2.49T (+6% YoY) and operating profit of KRW 123B (+58% YoY), reflecting improved offshore project execution and margin expansion.
• Management reiterated FY2025 guidance of KRW 10.5T revenue and KRW 630B operating profit, with offshore accounting for ~40% of new orders and a USD 9.8B full-year target
• With LNG carrier replacement demand, FLNG ramp-up, and leadership in eco-vessels, SHI’s earnings trajectory supports its 22x FY27E P/E, despite execution and competition risks.

• FnGuide has been able to capitalize on its excellent brand name in the financial industry (especially for research used in equity trading) to profitably expand into the index development business.
• Although the index business accounted for 25% of its sales in 2024, it has been the fastest growing business in the past six years. 
• Valuations are reasonable and it is trading at 27% below four year historical EV/EBITDA basis. We like FnGuide as a long-term investment story. 

• Sun Pharmaceutical Industries (SUNP IN) is appointing Kirti Ganorkar as the Managing Director to succeed Dilip Shanghvi, effective September 1, 2025, with the entire business reporting to him.
• In another development, Richard Ascroft will be joining as CEO – North America, succeeding Abhay Gandhi. Aalok Shanghvi has been additionally entrusted with the responsibility for the North America business.
• Succession plan and management rejig come at a time when SPIL is at an inflection point, with its India business being on a strong foothold and specialty business gaining traction.

• Recent Results: Newmont delivered a strong Q1 2025 performance with record free cash flow of $1.2 billion, driven by higher gold prices and increased production from Tier 1 assets.
• Future Plans: The company plans to ramp up Tier 1 output to ~6.7 Moz by 2028, led by projects like Ahafo North, Tanami Expansion 2, and Cadia block-cave development.
• Valuation Upside: If current gold prices around $3,400/oz persist, Newmont’s earnings could double vs. consensus, unlocking over 50% potential upside from current share levels.

• Baidu, Inc. delivered a solid performance in the first quarter of 2025, with its Baidu Core division reporting a 7% year-over-year revenue increase, reaching RMB 25.5 billion.
• This growth was primarily driven by a substantial surge in its AI cloud business, which saw a 42% increase year-over-year, contributing significantly to Baidu Core’s overall revenue.
• A notable development within this business unit is the expansion of the AI cloud’s role in Baidu’s operations, now accounting for 26% of Baidu Core’s revenue, up from 20% in the previous year.

• 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.
• Highlight: Two pair trade opportunities in the Indian financial sector persist, with price ratios exceeding two standard deviations from their historical means.
• 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.

• Alibaba Group delivered a mixed performance in the March quarter and for the full fiscal year 2025, showing resilience in its core operations while falling short of analyst expectations on key financial metrics.
• The company reported revenue of $32.58 billion for the quarter, marking a 7% year-over-year increase, but this fell below projections of $33.28 billion.
• Net income for the period came in at $1.71 billion, significantly lower than the anticipated $2.93 billion.

• Palantir Technologies has become one of Wall Street’s most polarizing success stories in 2025.
• Riding a 76% year-to-date gain and clocking in at more than 460% over the past 12 months, the company’s stock has reached new highs, closing at a record for three consecutive sessions earlier this month.
• The surge puts it in league with speculative darlings like CoreWeave and even evokes comparisons to meme stock veterans such as GameStop.

• iQIYI’s first-quarter 2025 results exhibited growth across several key business segments, though certain challenges remain.
• The company experienced sequential growth in total revenues, largely attributed to their emphasis on premium content production and strong performance in long-form and micro-dramas.
• This focus has effectively positioned iQIYI as a leading platform for both long-form and short-form entertainment content, contributing positively to user engagement and content consumption.

• Dell Technologies Inc.’s fiscal year 2026 first quarter financial results provide a mixed but generally positive view of the company’s current performance and future prospects.
• The company reported revenue of $23.4 billion, a growth of 5% year-over-year.
• This increase was driven by robust performance across its core markets, particularly in Infrastructure Solutions Group (ISG) and Client Solutions Group (CSG), each growing by 8%.

• Copart, Inc.’s Q3 2025 earnings highlight several noteworthy aspects of its performance and market dynamics, offering a balanced view of the company’s current standing and future challenges.
• The company’s global unit sales increased by 1%, with a more notable rise of 2% on a per-business-day basis.
• This growth, however, masks a flat performance in the U.S. segment and a decrease in U.S. insurance unit volume by nearly 1% year-over-year.

• The separation will occur via a two step transaction – an initial minority IPO carve-out followed by a split-off of the remaining stake.
• Two-Step separation allows investors an early opportunity to assess and value the Diabetes business independently, while Medtronic ultimately divests full ownership over time.  Diabetes business could be valued between $8-$11B.
• The move will allow Medtronic to focus on its faster-growing, higher-margin businesses such as pulsed field ablation and renal denervation.

• AMD launched MI300-355. AMD claims that for training MI355 is on par with Nvidia’s B200. For inference MI355 generates more token per $, has a better TCO. MI350 shipped May-25
• AI addressable market: AMD maintains its $500bn by 2028 estimate, 60% Cagr “or exceeding that”. Inference will grow faster, over 80% Cagr.
• AMD stock is cheap, has bottomed out, the roadmap is more competitive, etc. For investors looking for an alternative to Nvidia and TSMC, AMD is the best alternative imo.

• EBITDA margin is expected to expand to 19% by FY27, with EPS rising from CNY 0.51 to CNY 1.10, supported by operational efficiencies and a favorable gold price environment.
• Shandong Gold aims for 70–80 tonnes of self-mined gold by 2027, with FY25–FY27 revenue projected to reach CNY118.8 billion at $3,400/oz gold price, driven by volume growth & higher prices.
• Commodity price volatility, geopolitical risks in international ventures (Argentina, Greece), and state ownership influence pose challenges to margins and shareholder value.

• Bloks Group is one of the top performing stocks in Hong Kong this year, with shares up 186% over the year versus a ~19% gain on the HSI.
• Chinese assembly character toy maker priced its offering at HK$60.35 per share in January, top of a range, and raised ~HK$1.8B of the net proceeds.
• The offering was 5,000+ times oversubscribed and Bloks Group IPO attracted a surge of retail investors. The company’s six-month IPO lockup will expire on July 9, 2025.

• DRAM — Global Memory Market Has Regained Momentum in Mid-2025, Driven by a Sharp Upswing in Spot Prices.
• NAND Flash — Strategic Outsourcing, High ASP Segments Drive Memory Controller Specialist Gains
• Conclusion — Short-Term Gains vs. Long-Term Growth in Memory Markets

• Past Growth: Oswal scaled rapidly under PM-KUSUM, becoming India’s largest solar pump supplier with strong revenue and order book growth.
• Plans: It aims to expand capacity, enter industrial pumps and motors, and grow exports and private-sector sales.
• Risks: Heavy reliance on a tapering subsidy scheme, limited post-KUSUM demand, and exposure to policy, ESG, and working capital challenges.

• Margin pressures are likely to ease from Q2FY26 as raw material costs normalize and recent price hikes take effect.
• The company is executing a Rs150 Cr capex plan focused on automating DOCL plants and localizing high-margin products.
• Integration challenges, cost inflation, and inventory issues that weighed on FY24–25 performance appear largely behind now.

• In this edition: • KPN | more behind the VodafoneZiggo / Delta Fiber access deal than meets the eye?
• • Odido | IPO expected to be postponed until after the summer • Triodos Bank | intends to focus more on the Netherlands

• U-Haul Holding Company is the parent company of U-Haul International, the world’s largest consumer truck and trailer rental company.
• U-Haul is also the third largest self-storage operator in North America.
• U-Haul benefited from a step up in top-line demand for self-moving services during the pandemic, namely in FY2021 & FY2022.

• Operating revenue increased 51.1% YoY to JPY6.9bn, driven by strong sales of absorbable local hemostat TDM-621.
• The company reported an operating loss of JPY1.2bn, narrowing by JPY961mn YoY, with a recurring loss of JPY2.5bn.
• FY04/26 forecast anticipates JPY9.3bn operating revenue, JPY400mn operating profit, and JPY301mn net income attributable to owners.

• While Chow Tai Fook Jewellery (1929 HK) has a stellar share price performance YTD, it still lags the HSI since 2023. The solid 2H FY25 result should support further upside. 
• SSS growth has recovered sharply in Apr-May 2025 (the first two months of 1Q FY26), and CTF should reap further benefits from cost management and product transformation.
• FY26F ROE may reach 27.2%. While its current yield is only 4.6%, it is possible to declare special dividend this year, easily pushing it to over 10%.

• In this insight, we discuss the emergence of the North Korea reconciliation related stocks that are starting to outperform. We have seen this playbook before.
• With the new President Lee Jae-Myung, there is likely to be an outperformance of some of these stocks once again.
• Among the 6 stocks listed above, we believe Hyundai Elevator is one of best stocks to capitalize on the increased reconciliation with North Korea.

• Qualcomm’s recently rumoured desire to acquire UK-listed Alphawave finally came to fruition on June 9 with a US$2.4 billion offer
• Just two days earlier, on June 7, Alphawave announced that the company had disposed of its interest in China-based JV, WiseWave Technology
• What is WiseWave Technology, why did Alphawave invest in it and why is it now divesting that interest prior to the Qualcomm acquisition?

• TSMC May Sales at Record High; Rumored A16 Pricing Underscores Strategic Moat in Advanced Nodes
• Review of Client Roadmaps Shows TSMC Positioned as Indispensable Enabler of AI and Advanced Compute Products
• We Maintain Our Structural Long Rating on TSMC; Inexpensive Despite Recent Rally

• In today’s edition: • ABN Amro | restructuring within Corporate Banking • BE Semiconductor Industries | increases long-term financial targets • Heineken | intends to invest USD 2.75bn in Mexico until 2028 • KPN | VodafoneZiggo secures access to part of Delta Fiber’s network • KPN | CEO denounces ‘populistic discussion’ on high broadband tariffs • InPost | court dismisses motion for injunction against Yodel • DHL | CMA to start DHL/EVRi merger inquiry

Team Internet’s 10-year deal to run the .co top-level domain (TLD) enhances the growth prospects for Domains, Identity and Software (DIS), the group’s highest-quality division in terms of revenue diversity and visibility. Growth prospects may strengthen with ICANN’s planned new Generic Top-Level Domains (gTLD) Program, scheduled for 2026. This is welcome news at a time when visibility for Search is low. Our estimates are unchanged, but we see upside potential to our 55p/share sum-of-the-parts (SOTP) valuation for DIS as prospects strengthen, and believe that the current valuation factors in modest prospects for DIS and Comparison and no value for Search.

• Cross-Holding Overhang Easing:Denso Corp (6902 JP) accelerates exit from Toyota Industries stake via tender offer, unlocking capital and aligning with capital efficiency and governance reforms.
• Profitability Set to Improve: FY2026 profit outlook strong, driven by reduced quality-related costs, better operating leverage, and ongoing cost controls post fuel pump recall.
• Valuation Comfort with Growth Drivers: Stock trades below historical average P/E; SDV, electrification, and semiconductor focus positions Denso well for re-rating amid sector tailwinds.

• Apimeds US is a clinical-stage biopharma company that is developing an intradermal bee venom-based toxin, Apitox, for pain associated with inflammatory conditions, including knee OA and multiple sclerosis (MS), for the US market.
• Apitox is licensed from Apimeds, Inc. in South Korea (Apimeds Korea), where the therapy has Korean approval as Apitoxin for treatment of OA.
• Honeybee venom has anti-inflammatory and analgesic properties.

• Sumitomo Pharma (4506 JP) and Knight Therapeutics (GUD CN) entered into exclusive license and supply agreements to commercialize Myfembree, Orgovyx, and vibegron in Canada.
• Sumitomo Pharma and Novo Nordisk A/S (NOVOB DC) have entered into a co-promotion agreement in Japan for Ozempic subcutaneous injection.
• Streamlining efforts and scouting for new revenue streams augurs well. Sumitomo stock remains in contention, up 27% in last 5 days.

Molten Ventures confirmed the key highlights from its FY25 trading statement published in April, including a positive uptick in portfolio valuations and, in turn, a 4% NAV per share total return in H225 (1.4% in FY25 to end-March 2025), strong cash realisations of c £135m in FY25 (ahead of the original guidance of £100m) and a robust cash balance of £89m at end-March 2025. Molten has collected a further £30m in proceeds so far in FY26 from the exits of Lyst and Freetrade. The company earmarked £30m of its FY25 proceeds for share buybacks amid a continued wide discount to NAV (c 53% at present), of which £24m has been executed to date.