Equity Bottom-Up

• Management claimed 4Q25 total revenue should grow by 10% YoY excluding two sold subsidiaries.
• The growth rate of customer management revenue rose to two digits in 4Q25.
• The main business margin was stable and most of the minor business margins rose YoY in 4Q25.

• In 1Q25, BEKE’s active stores increased by 29% YoY and total revenue increased by 42% YoY.
• New home revenue and rental revenue grew by 64% YoY and 94% YoY in 1Q25.
• We believe the stock price can double and is undervalued for the concerns on the general property market.

• Nexon underperformed the software segment by 32% in the past 12 months, and analysts expect earnings to decline over the next 5 years.
• But the company beat Q1 consensus EBIT estimates.by 54% and the stock lurched 17% the very next day.
• Nexon’s business is immune to tariffs and tends to perform well in recessions. The company’s pipeline appears to be stronger than anyone imagined.

• In FY25, Eisai Co Ltd (4523 JP) reported 6% YoY growth in revenue, driven by 3Ls. Operating profit rose 2% YoY and net profit climbed 9% YoY to ¥46B.
• Eisai guided for FY26 revenue of ¥790B, flat YoY. Revenue for Leqembi is expected to grow significantly (¥76.5B, up 73% YoY). Operating profit is expected to remain flat at ¥54.5B.
• Leqembi’s potential market expansion holds promise, especially in the developed economies with the proportion of aged population gradually on the rise and with a dearth of suitable treatment options available.

• More US restrictions on export of SPE Semi Production Equipment to Chinese firms (CXMT, SMIC, YMTC). The big increase in Chinese spending was done over 2023-24, it’s declining in 2025-26. 
• Chinese domestic SPE vendors are growing fast and gaining share from AMAT, LAM, TEL. ASML is a monopoly below 65nm. KLA is very dominant. Focus on best 2: ASML, KLA.
• China’s efforts to grow its own supply chain and equipment makers will continue, AMEC and Naura are the leaders. Consolidation could start. 

• Belrise Industries, founded by the Badve family, is a leading auto component maker launching its Rs2,150 crore IPO from May 21–23, 2025, at a price band of Rs85–90.
• It supplies key chassis and metal parts to top OEMs like Bajaj Auto, Hero MotoCorp, and HMSI, playing a critical role across ICE and EV platforms.
• While most proceeds are earmarked for debt repayment, high working capital needs suggest leverage could rebuild as the business scales.

• Philippine Stock Exchange (PSE PM) reported an encouraging Q1 2025 with revenue/operating income up 82%/72% YoY, buoyed by the acquisition of PDS. 
• Despite acquiring 91.6% of PDS (as of 15 May 2025), the company has net cash and investments of 4.8 bn pesos, representing more than 30% of its current market capitalization. 
• Trading at 13x PE, with a >6% forward dividend yield, and ex-cash ROCE>20%, the stock is cheap. We believe there is a long runway for growth with multiple catalysts.

• ASUS beat 1Q25 expectations, but flagged tariff risks and a potential PC demand slowdown in 2H25 as consumers front-load purchases ahead of pricing uncertainty.
• PC segment growth outperformed the market, led by >30% YoY gains in commercial PCs and strong momentum in AI-capable and gaming systems.
• On-Device AI execution is emerging as the next PC evolution; Asus is preparing for this shift with GX10 edge devices and deeper integration of AI across product lines.

• Reported surge in listing interest on SGX (SGX SP) driven by escalating U.S.- China trade tensions and associated geopolitical uncertainties.
• Singapore’s proactive policy toolkit announced in February 2025  offer issuers both cost savings and regulatory certainty and could play a role in attracting more companies to list in Singapore.
• An uptick in listings on the Singapore Exchange (SGX) can set off a virtuous cycle, strengthen valuation multiples  and lead to upward revisions to 2026 earnings forecasts.

• Domestic Demand Sluggish:Hyundai Motor India (HYUNDAI IN)’s Q4 FY25 profit declined 3.7% YoY as weak domestic sales persisted, partly offset by 14% YoY export growth and price hikes.
• SUV Focus Drives Mix Shift: SUVs formed 69% of domestic volumes in Q4, benefiting from rising first-time buyer interest and driving improved average selling prices.
• Valuation Fair; Profitability to Soften: Stock trades at ~27x EPS. Near-term margins may be pressured by depreciation from the underutilized new Pune plant ramping up in FY26.

• Momentum building – With a continued recovery at the core Optical segment, and high double-digit sales growth YoY at Life Science & Equipment, we believe Q1-3 FY3/26 results indicate sustained upward momentum at JTEC.
• The company has maintained FY6/25 guidance, and while this implies a back-end-loaded Q4 FY6/25, order visibility appears firm from demand on a global basis for the Optical business.
• Indications of progress in the Life Science and Equipment Development segment, driven by the semiconductor initiative, are promising, even if its full earnings potential remains longer-term. 

Pan American Silver (PAAS) delivered strong quarterly results, with higher commodity prices boosting revenues and lowering costs. Q125 EBITDA was US$330m, just 5% shy of the seasonally strongest Q4 number, as costs were markedly below and production was in line with quarterly guidance for both segments. The company maintained its FY25 operating outlook, which points to seasonally strong quarters ahead. PAAS also announced a proposed acquisition of MAG Silver (MAG), valuing the company at US$2.1bn. MAG owns 44% in a top-tier Juanicipio silver operation in Mexico. In this note, we provide an initial take on the transaction, while keeping our revised estimates and valuation of PAAS on a standalone basis.

• Indusind Bank (IIB IN) does not seem to be able to get out of hot water.
• In yet another accounting and governance pothole, the bank has disclosed a surprising take on interest income, which was overstated by INR 6.7 bn. 
• The internal audit department also reported unsubstantiated balances of INR 6 bn in other assets, which was netted off with liabilities. 

• New Horizon Aircraft is a Canada-based aviation company specializing in the development of hybrid electric Vertical Takeoff and Landing (eVTOL) aircraft
• HOVR’s flagship aircraft, the Cavorite X7 is likely to be commercially available in the next 24 to 36 months. HOVR has already completed the development of a 50%-scale prototype.
• The timeline looks achievable, and the Company has already committed to supplying five Cavorite X7 to Air Chile Ltd by the end of 2028.

• Tsi Holdings (3608 JP) is a leading apparel company in Japan. Net cash was 45 billion yen at end of February 2025, representing 58% of its current market cap.
• The company has an excellent record of increasing its BPS, reducing outstanding shares, and buying back shares. Valuations have become more attractive.
• Its share price has had a nice pullback in the past three months (down 22% from its peak levels in February 2025). 

• Q4 FY25 volumes grew 1.8%, value declined; FY26 guidance is for low growth with 18–20% margins supported by integration and cost control.
• Grasim and JSW are aggressively expanding with large capex and dealer networks, intensifying pricing pressure in decorative paints.
• Stock corrected 15–20% but still trades at ~55x P/E, which remains expensive given slowing growth and rising competitive risks.

• GMDC delivered strong FY25 results with 8MT of lignite sales and Rs992 crore in EBITDA, its second-best performance.
• The company is focused on scaling lignite and coal volumes through new mines within Gujarat and Odisha. It also plans to diversify into rare earths and critical minerals. 
• While valuations appear slightly elevated, upside optionality exists from the revival of Akrimota power plant and operationalization of new mines.

• Revenue increased to JPY1.2bn (+24.4% YoY), driven by growth in WafCharm and CloudFastener, with ARR at JPY4.5bn (+30.9% YoY).
• Operating profit declined to JPY241mn (-23.6% YoY) due to increased operating expenses, including personnel and outsourcing costs.
• Shadankun’s ARR reached JPY1.7bn (+6.1% YoY) with a user count of 1,322 companies and a churn rate of 1.06%.

• Consolidated sales reached JPY262.1bn (+2.5% YoY), with operating profit at JPY13.1bn (+54.0% YoY), driven by market recovery.
• Segment sales varied, with packaging inks declining in Asia, while jet inks for digital printing increased significantly.
• Operating profit rose in Japan and overseas, supported by cost savings and stable sales prices across product lines.

• Akzo Nobel N.V. earlier announced its plans to exit India to focus on core markets where it holds a position of “differentiating scale.
• JSW Paints has reportedly entered exclusive talks to acquire Akzo India, edging out Advent–Indigo and Pidilite.
• Shareholders may tender in the open offer or stay invested for potential upside via JSW which has a long stellar track-record.

• FY03/25 revenue was JPY60.6bn (+2.4% YoY), operating profit JPY4.7bn (+2.4% YoY), net income JPY2.9bn (-6.0% YoY).
• Medical Services revenue rose 4.2% YoY, Home Furnishing and Health revenue decreased 1.3% YoY, with GPM at 54.6%.
• FY03/26 forecast: revenue JPY62.3bn (+2.9% YoY), operating profit JPY4.8bn (+1.1% YoY), net income JPY3.1bn (+3.5% YoY).

• Typical Intel? 18A node was going to be a great success with customers lining up. CFO now says that revenues from external customers is “not significant”, limited to packaging only.
• Intel CFO toned expectation of significant external 18A revenues by 2027: some revenues with UMC, Tower, some packaging, some older gen Intel16 “not a ton has to come from 18A”.   
• Clear admission that Intel Foundry won’t be ready for external clients before 14A in 2028 due to lack of design tools (PDK). All that is good for TSMC.

• Solid Q1 and reaffirmed guidance: Appier delivered 27% organic growth in Q1, maintained FY targets, and continues to benefit from resilient demand for AI marketing solutions.
• Strategic acquisition of AdCreative.ai: The deal expands Appier’s AI portfolio, enhances creative automation capabilities, and supports cross-sell potential, despite short-term margin pressure from integration.
• Attractive valuation with upside: Despite strong fundamentals, shares trade below 3x EV/sales; H2 seasonality and AI adoption present a compelling re-rating opportunity.

• In FY25, Paramount Bed Holdings Co Lt (7817 JP) reported 2% YoY revenue growth to ¥109B, mainly driven by the nursing care business.
• Due to higher SG&A expenses, operating profit decreased 6% YoY to ¥13B and net profit was down 15% YoY to ¥9B.
• Paramount guided FY26 revenue to grow 4% YoY to ¥113B and also trimmed FY27 targets in mid-term plan.

• Tata Motors posted its highest-ever annual revenue and PBT for FY25, with strong sequential growth in Q4 driven by robust performance in both commercial and passenger vehicle segments.
• The company successfully managed to navigate global trade and tariff challenges, improved its profitability through cost-saving measures, and expanded its leadership in electric mobility.
• The results demonstrate Tata Motors’ resilience and long-term growth strategy, especially with a continued focus on electric vehicles and new product innovations.

• Asics reported its first-quarter results during trading hours, with the stock closing down 8.6% on the day.
• While headline numbers were strong, investors may have been disappointed by the lack of upward revision to full-year guidance.
• Our positive view on Asics remains unchanged. The company is successfully navigating geopolitical and macro uncertainties while strengthening its brand.

• In this insight, we propose a pair trade between a basket of major securities stocks (long) versus banking stocks (short) in Korea.
• We believe the five major securities stocks in Korea could continue to outperform the five major banking stocks in Korea over the next 6-12 months.
• We present 3 major headwinds on the Korean banking sector and 4 major tailwinds on the Korean securities sector. 

• Intel has signalled a shift from its long held Copy Exactly strategy to a “democratization of innovation between Technology Development & High Volume Manufacturing
• This may be more akin to how TSMC operates. Some hail this as a positive, others are not quite so convinced, but it’s a seismic shift at a critical juncture 
• If Intel is indeed switching from CE to CT, it needs to be a carefully thought out, well planned transition to succeed. But that’s not what what we see happening. 

• Freee KK (4478 JP) reported 3QFY06/2025 results today. Revenue for the quarter was marginally below consensus despite increasing 27% YoY, while GAAP OP beat consensus by a huge margin.
• Due to the tax filing season, freee’s S&M costs tends to be higher during 3Q which led to slightly lower Adj. OP during the quarter. Price revisions have improved ARPU.
• Freee’s share price has been up more than 40% YTD, strengthening profitability and its solid business model vs Money Forward (3994 JP) mean there is further upside.

• FY03/25 revenue increased 13.8% YoY to JPY18.0bn, driven by membership growth in domestic Anytime Fitness clubs.
• Operating profit decreased 4.7% YoY to JPY3.3bn due to higher costs, despite revenue growth and cost-curbing efforts.
• FY03/25 saw 71 club openings and 11 closures, ending with 1,194 clubs and 974,000 members.

• Geely announced that total revenue increased by 25% YoY in 1Q25.
• Sales volume continued to grew strongly by 53% YoY in April 2025.
• The operating margin improved YoY for the third quarter in 1Q25.

• In 1Q25, both total revenue and game revenue growth rates accelerated.
• The authorities have been turning from containing games to encouraging games.
• We expect the stock has an upside of 34% and a price target of HK$700. Buy.

• Raymond Lifestyle’s stock plummets 60% in six months post-demerger, due to lots of governance lapses.
• Corporate Governance Crisis: CEO,CFO, Director Resignations, Delayed disclosures, Controversial Remuneration and Many More.
• The company gave excuses such as inflation, an IT incident, etc. in their management meeting after not being able to deliver the performance.

• There is a brewing sibling conflict at the Kolmar Group. Kolmar Holdings and Kolmar BNH have clashed regarding the reorganization of Kolmar BNH’s board of directors.
• Yoon Sang-Hyun (brother) wants to shake things up. Yoon Sang-Hyun wants to appoint new members at Kolmar BNH’s BOD but his sister Yoon Yeo-Won is opposing this. 
• We see a higher upside for Kolmar Holdings. Our base case valuation of Kolmar Holdings is NAV per share of 14,675 won (57.5% upside from current levels).

• Origin story of the book: Becoming interested in Apple’s Achilles heel in China after being too bullish on the company’s success
• Focus on the role of manufacturing design engineers in custom manufacturing and orchestration of Apple’s supply chain in China
• Thesis of the book: Exploring Apple’s strategic positioning in China and the symbiotic relationship between economic scale and customer allure in the luxury market

This content is sourced through publicly available sources and has been machine generated. Information displayed is for general informational purposes only.

• Cognizant Technology Solutions reported its financial performance for the first quarter of 2025, demonstrating substantial growth and strategic progress amidst an evolving macroeconomic landscape.
• Revenue for the quarter was $5.1 billion, reflecting an 8.2% increase year-over-year in constant currency, largely driven by the acquisition of Belcan and organic growth in the Health Sciences and Financial Services sectors.
• This growth was instrumental in placing Cognizant in what the company refers to as the “Winner’s Circle,” indicating notable progress in achieving strategic targets.

• KLA Corporation reported strong financial results for the March quarter of 2025, with revenues of $3.06 billion, slightly exceeding the midpoint of their guidance.
• Their non-GAAP diluted earnings per share (EPS) of $8.41 and GAAP EPS of $8.16 also met the upper end of expectations.
• This performance was largely driven by robust demand in advanced logic, high-bandwidth memory (HBM), and significant contributions from its advanced packaging businesses.

• Last week, I wrote a quick article flagging the seemingly absurd valuation discrepancy of Chagee vis-a-vis beverage peers on the HK stock exchange i.e. Mixue and Guming, as well as Luckin Coffee on the OTC markets.
• Chagee currently trades around ~31 (doing extremely poorly on a good day), and at the bottom of its recent trading range; there is no analyst coverage and the firm has yet to report its Q1 25 results so it’s just really stuck in no-man’s land.
• I postulated then that delisting risk was an overhang on Chagee, a Chinese ADR, but lo and behold, it appears that the market has shrugged off a large portion of it for the large cap Chinese tech companies.

• ANSYS, Inc., a leader in engineering simulation software, presented mixed financial results for Q3 2023, weighed down by unexpected external challenges yet demonstrating robust business fundamentals.
• The quarter was significantly impacted by new U.S. Department of Commerce export restrictions on certain products to Chinese entities.
• These restrictions led to additional vetting requirements, resulting in transaction delays and a $20 million headwind, ultimately causing ANSYS to fall short of its initial revenue and ACV (annual contract value) expectations.

• Automatic Data Processing, Inc. (ADP) reported solid financial performance in its third quarter of fiscal year 2025, demonstrating robust capabilities amidst varying global economic conditions.
• The company achieved a 6% increase in revenue, alongside a 10 basis point rise in adjusted EBIT margin and a 6% growth in adjusted EPS.
• ADP showed significant growth across its U.S. portfolio, especially in its small business, mid-market, enterprise, and compliance solutions offerings.

• eBay Inc. began 2025 with results surpassing expectations across key financial metrics, despite a challenging operational environment triggered by ongoing trade policy changes and consumer concerns over increasing prices for imported goods.
• The first quarter saw a nearly 2% increase in Gross Merchandise Volume (GMV) to approximately $18.8 billion, marking a consecutive streak of positive growth for four quarters.
• The company’s revenue rose over 1% to $2.58 billion, and non-GAAP earnings per share grew by 10% to $1.38.

• On 12 May 2025, Sankyo Co Ltd (6417 JP) announced earnings (Revenue -3.7%yoy, OP +1.5%, Net Profit +0.4%) with guidance for March 2026 showing Revs, OP, and NP all falling.
• OP and NP would fall 14.4% and 18.5% respectively. The dividend is expected to fall ¥10 to ¥90/share which would be a 41.6% payout ratio.
• The company also announced a BIG BUYBACK – Up to ¥60bn buying up to 30.0mm shares (13.66%), starting today and going through 31 March 2026.

• The 1Q25 result is quite healthy, but the shrinking minor business, social entertainment, covers the fact.
• The main businesses grew by two digits and the operating margin continued to grow by 28% YoY in 1Q25.
• We believe the stock has an upside of 83% and a price target of US$26 for the yearend 2025.

• Revenues are hitting the bottom in 1Q25, most firms mention sequential growth in 2Q, sometimes YoY growth. Trends depend on specific firms, mentions of both Auto and Industrial recovering.
• Gross / operating profit recovery could take a bit longer as inventory and price concessions could negate revenue growth for a couple of quarters.
• 2 categories of stocks: the cheap ones (NXP, Onsemi, Renesas, STMicro) and the expensive stocks (Analog Devices, Infineon, Microchip, Texas Instruments). I’d go with Renesas and Texas Instruments.

• SMBC, a major Japanese bank, is buying a 20% stake in Yes Bank for INR 13,483 crore, marking a significant move towards strengthening Yes Bank’s recovery and future growth.
• It provides SMBC direct access to India’s growing banking sector and potential for strategic collaboration.
• The partnership enhances Yes Bank’s stability, governance, and access to global markets, positioning it for further growth. SMBC’s involvement could pave the way for future capital support and operational improvements.

• In this insight, we discuss a pair trade between LG Electronics (066570 KS) (long) and LG Display (034220 KS) (short). 
• LG Display is likely to face greater margin pressures than LG Electronics this year, which could lead a bigger consensus estimates downward revisions for LG Display than LG Electronics. 
• Both LG Electronics and LG Display are trading at 0.6x P/B multiples. Given LG Electronics’ much higher ROE vs LG Display, LG Electronics should be trading at higher valuation multiples. 

• Revenue up 7% Y on Y basis.  PBT and PAT up 19% 
• Operating profit of both consumer and healthcare business was up 15 & 18% respectively
• Cash flow from operations up by 11% and working capital improved

• China Hongqiao has delivered steady ~6 Mt volumes, ~25% EBITDA CAGR, and 15–27% ROCE over the last three years, supported by integration and energy transition gains.
• China Hongqiao is relocating 4 Mt of capacity to Yunnan to tap low-carbon hydropower, advancing its green aluminium transition.
• China Hongqiao offers strong earnings visibility backed by low-cost operations, while trading at attractive valuations relative to peers.

• Tata Motors Ltd (TTMT IN)  delivered a decent operational performance in Q4 FY25, with a flat topline and margin recovery, led by robust performance in the Jaguar Land Rover business.
• While the Q4 FY25 performance was steady, we expect near-term results to remain muted.
• Therefore, we present a case for shorting Tata Motors in the near term and outlook on individual segments.

• In this edition: • Ahold Delhaize | Delhaize aims for market leadership in online groceries in Belgium • ASM International | looking for bolt-on acquisitions • Heineken | row with Jumbo not only on price gap but also on lower discount • InPost | signs contract with ASOS for D+1 OOH delivery in the UK • TKH Group | slow start of the year as expected, reiterates FY25 guidance • Alfen | revises both FY25 revenue and adjusted EBITDA guidance downward • Kendrion | Mobility continues its strong growth, Industrial mixed performance

• From FY03/22 to FY03/24, Q4 revenue accounted for over 30% of full-year revenue, with Q4 operating profit over 80%.
• In FY03/25, the company reported revenue of JPY57.7bn (+22.2% YoY) and operating profit of JPY4.9bn (+75.4% YoY).
• For FY03/26, the company forecasts revenue of JPY59.6bn (+3.4% YoY) and operating profit of JPY3.9bn (-19.9% YoY).

• Strong Execution: 3-yr PAT CAGR of ~22% with ₹80,354 Cr order book offers 2–4 years of revenue visibility from high-margin defence programs.
• Growth Levers: Expanding in seekers, EW, AI, and smart infra; 5 new units and key contracts like Akash, LRSAM, and Shakti drive forward pipeline.
• Valuation Stretch: Trading at ~45x FY25E P/E vs 3-yr average of 32x; pricing reflects peak sentiment and leaves little room for error.

• Trades below Cash and liquidation value and has a profitable operating business
• Operations have been consistently profitable and free cash flow generating
• Industry is not growing but getting consolidated. Market is pricing in a business to become zero

• KDDL’s precision engineering division, Eigen, is expanding its manufacturing capacity with a new facility and further upgrades planned, aiming to capture high-growth sectors like aerospace, automotive, and medical devices.
• This expansion enhances KDDL’s competitive edge in precision engineering, a high-margin segment, and aligns with the company’s goal of making Eigen a significant revenue contributor, targeting 40-50% of manufacturing revenue.
• The focus on precision engineering and premium retail through Ethos positions KDDL for sustained growth, balancing stable manufacturing revenue with high-margin luxury retail.

• Tata Steel reported resilient India performance in Q4 FY25 with strong volumes, though consolidated margins remained under pressure due to ongoing European losses.
• The Kalinganagar CRM line and Ludhiana EAF are progressing toward completion. The company’s $2.5 billion infusion into its overseas arm marks a strategic pivot, potentially weighing on returns.
• We apply a lower EV/EBITDA multiple of 6x (vs. 7.5x earlier) to reflect the weaker capital allocation stance, flattish steel price outlook, and relatively subdued growth versus peers. 

• Recruit Holdings (6098 JP)  reported 4Q and Full-year FY03/2025 results on Friday which fell below consensus estimates. However, earnings were in line with the company’s guidance.
• Labour markets have begun to cool off with concerns over potential impact of trade wars and economic uncertainty, and the company expects top line to decline in FY03/2026E.
• Though the company’s monetisation efforts have paid off, we expect Recruit’s earnings to remain under pressure and think there’s opportunity to gain on the Short side.

• In a surprising turn of events, the management of Sula Vineyards (SULA IN) has cancelled earnings call for Q4FY25 citing Indo-Pak conflict after posting bad quarterly numbers.
• Receivable cycle has further elongated to all time high since the company became public.
• Revenue growth yet remains muted post company became public in 2022.

• Green Dot Corporation’s latest financial results for the first quarter of 2025 illustrate both positive momentum and areas requiring focus.
• The company reported an impressive 24% increase in adjusted revenue and a 53% rise in adjusted EBITDA, outperforming internal expectations.
• Growth was observed across all three operating segments, indicating a cohesive and forward-moving strategy.

• “In the next 50 years… we won’t give a thought to selling those [Japanese trading companies]…. Japan’s record has been extraordinary.” (Warren Buffett)
• In this insight, we provide detailed comparisons of the five major Japanese trading companies and five major Korean holdcos/trading companies. 
• Japanese trading companies have higher points for market cap, ROE, DPS increase, and shares cancellation. Korean holdcos have higher points for dividend yield, deb/equity ratio, ROIC, and valuations. 

• Apple reported strong financial results for Q2 of the fiscal year 2025, achieving revenue of $95.4 billion, which represents a 5% increase compared to the previous year.
• This growth was at the high end of the company’s guidance range, and the diluted earnings per share stood at $1.65, marking an 8% year-over-year increase and setting a record for the March quarter.
• The company’s Services segment achieved an all-time revenue high, with a 12% growth year-on-year, indicating robust performance across Apple’s diverse service offerings.

• Taiwan’s Giant Manufacturing (9921 TT — US$1.7 billion) is the world’s largest bicycle manufacturer.

• It’s based in the Taiwanese city of Taichung, which has become somewhat of the center of the global bicycle industry.

• From there, it controls nine factories around the world, selling about 6 million bicycles a year via many thousands of distributors in 50 countries. 

• 5-Year Growth: EBITDA doubled to RMB 72.6 bn; production scaled across copper, gold, and lithium through global M&A and low-cost execution.
• Capex Plans: USD 10.4 bn over 5 years across copper, lithium, and gold; includes Zijin Gold International spin-off by late 2025.
• Zijin is projected to deliver 19–27% CAGR in EBITDA and net profit through 2026, yet trades at just 6.3x 2025E EV/EBITDA — a notable discount to peers trading at 7–8x

• TSMC: +12.7% Premium; Consider Going Long the ADR Spread; Short Interest in Local Shares Approaching Highs
• ASE: +2.0% Premium; Continue to Wait for Near-Parity Before Going Long
• CHT: -0.8% Discount; Wait for More Extreme Level; Short Interest Continues to Spike in ADR

• MediaTek and Nvidia expected to unveil joint ARM-based AI PC SoCs at Computex May 19 – 23; a major milestone for Mediatek expanding into the massive Windows PC market.
• We will be looking to see how the new chips are positioned; To highlight full local LLM inference; enabling private, real-time AI at the edge for PCs?
• We maintain our Structural Long view for Mediatek shares; MediaTek is evolving from mobile SoC leader to full-stack AI compute player across smartphones, PCs, and data centers.

• Intel Down But Not Out — Reportedly Wins Major Microsoft Foundry Contract; Significant Interest from Nvidia and Google
• AMD CEO Lisa Su Presents to U.S. Senate — Taiwan is America’s Key Ally in the AI Chip Race
• Mediatek Approaching Potential Share Catalyst at Computex Taiwan; Nvidia PC PC Announcement Expected

• Onshore Chinese investors’ purchases of HK equity through the Southbound Connect accelerated rapidly after China’s September stimulus. Despite net selling in early May, the onshore bullishness seems sustainable for now.
• Onshore investors prefer internet platforms (Tencent, Alibaba), technology and consumer discretionaries (Xiaomi, SMIC, China Mobile), and lately EVs (Li Auto, XPeng). High dividend SOE banks were bought earlier, not recently.
• Our “China Twelve” stocks and focus themes closely align with onshore investors’ preferences. 6 out of 12 figure in the “top bought” Southbound list – reaffirming our bullishness on them.

• The privatization failed due to the inability to balance the interests of public shareholders. There is a gap between the current Offer and the expectations of small and medium-sized investors.
• Some shareholders may think Goldlion still has the potential for strategic adjustments/value reassessment, and are inclined to continue holding this stock. A cash reserve of HK$1.05 has given imagination space.
• We are not sure what strategies Goldlion will adopt to address the current negative situation. The outlook is vague. 9-14x P/E could be reasonable valuation due to the short-term headwinds.

• Tam Jai International (2217 HK)‘s net profit dropped 32.7% in FY25, but the 2H earnings have seen a recovery to an 18.2% YoY growth, vs. -55.8% in 1H. 
• Net cash stayed intact at HK$1.33bn, or 65.1% of its market capitalisation. Management looks cautiously optimistic in the outlook, and will push for expansion of two Japanese brands.
• There has been minimal further noise from the minority shareholders. With the privatisation PER at over 60% premium to the sector average, we think most shareholders will give in.

• TransMedics Group stock surged ~20% on blowout 1Q’25 earnings on Friday after the company beat earnings expectations and hiked 2025 revenue guidance.
• I launched coverage of the stock in November 2024 and added TransMedics Group to my high conviction list of ideas.
• TransMedics Group shares have massively outperformed in 2025 with shares up ~79% over the year. I acknowledge limited upside and lower my PT to $118 on peer-group multiple compression.

• Positioned for Long-Term Growth: Backed by strong industry tailwinds in EVs, clean energy, and exports, Sundram Fasteners (SF IN) is strategically expanding beyond its core auto portfolio into high-potential sectors.
• Near-Term Risk-Reward Balanced: With the stock trading at 33x P/E on FY26E earnings, valuations appear stretched, and near-term headwinds from tariff uncertainties may limit upside.
• Proven Management & Governance: Backed by the reputable TVS Group, the company’s disciplined execution and transparent governance inspire long-term investor confidence.

• Domestic Tractor Volume Underperformance: Escorts Kubota Limited (ESCORTS IN)‘s domestic tractor volume growth lagged the industry in Q4 FY25, impacted by an adverse geographical mix & increased competitive intensity.
• Construction Equipment Faces Near-Term Pressure:The CE segment saw a 12.2% YoY volume decline, impacted by weak demand and cost inflation from BS-V emission norms; management expects recovery in H2 FY26.
• Valuation Remains Elevated: Despite a stable operating profile and long-term growth potential, the stock trades at a forward P/E of ~30x, limiting near-term upside amid execution and demand uncertainties.

• Taiwan Semiconductor (TSMC) – ADR (TSM US)’s 2nm process is said to be comparable to Intel Corp (INTC US)’s 18A technology.
• It is reported that Intel has placed orders for TSMC’s 2nm capacity, as we previously highlighted, due to its timely availability.
• Nonetheless, Intel continues to invest in its own manufacturing roadmap, targeting risk production of the 14A node around 2027.

• A core investment thesis of Shinyoung Wacoal is that its market cap is 94 billion won but its real estate properties in Seoul/Daejeon account for more than 500 billion won. 
• Shinyoung Wacoal’s net cash as a percentage of market cap is 99%. If the real estate is revalued to market values, it would be trading at P/B of only 0.1x.
• Shin Young Wacoal (005800 KS) is one of the largest companies in Korea that specializes in women’s underwear.

• The Company posted strong Q1 2205 results with adjusted EPS (incl. share-based comp) growing 9.3% YOY, adjusted operating margin expanding 70 bps YOY.  Excl. share-based comp, adj. EPS was $2.82.
• The Company expects margin expansion and double digit adjusted EPS growth for FY 2025.
• Sale of Issuer Solutions segment and acqusition of Worldpay will simplify operations and enhance growth. GPN trades at a significant discount to the peer group average.

• Spotify reported its first-quarter 2025 results with decent metrics, yet the numbers failed to satisfy market expectations, leading to a sharp drop in its stock price.
• Despite posting a 12% year-over-year increase in premium subscribers to 268 million—exceeding analyst estimates of 265 million—Spotify shares fell 8.7% in early trading to $545.77.
• The company also registered 678 million monthly active users, up 10%, broadly meeting expectations.

• Trump announced actions to reduce regulatory barriers to domestic pharmaceutical manufacturing, with the core intention to open regulatory “green light” for manufacturing in US, which will change the industry pattern.
• With the promotion of VBP and the implementation of medical insurance price comparison system, there’s a trend of accelerated pharmacies closures. The entire pharmacy industry will face performance headwinds.
• BeiGene’s BRUKINSA recorded negative QoQ growth in 25Q1, which seems below expectations. However, this is temporary headwinds, since the 2025 full-year revenue guidance remains unchanged. Bottom-line valuation  is US$24.5-26.5 billion.

• YETI Holdings reported its first quarter fiscal 2025 earnings, revealing mixed results.
• During this period, the company focused on three main areas: accelerating product innovation, transforming supply chain logistics to minimize exposure to China, and enforcing operational discipline to maintain a strong financial position.
• Despite a generally positive performance in some aspects, notable challenges were encountered, impacting the company’s financial outlook for the year.

• Nihon Denkei’s FY03/25 consolidated sales grew 11.7% YoY, with a gross profit of JPY16.9bn and operating profit up 6.9% YoY.
• The company announced FY03/26 earnings forecast with sales at JPY124.0bn, operating profit at JPY4.5bn, and EPS of JPY263.21.
• INNOVATION2030 Ver.2.0 aims for growth by expanding into growth markets and enhancing global business amid macroeconomic uncertainty.

• In May 2025, the energy sector is abuzz with speculation that Shell is evaluating a potential acquisition of BP.
• This comes amid a backdrop of declining oil prices, which have recently hit a four-year low due to increased OPEC+ production and global demand uncertainties.
• Shell, with a market capitalization of approximately £149 billion, is nearly twice the size of BP, whose shares have fallen nearly 30% over the past year, reflecting investor concerns over its strategic direction and financial health.

• Pfizer recently reported its first-quarter 2025 financial results, providing an overall positive snapshot of its performance within a challenging market environment.
• Revenue was reported at $13.7 billion, marking a 6% operational decline largely driven by lower Paxlovid sales, partly reflecting a one-time Paxlovid revenue credit from the prior year.
• Despite this, some of its core products such as the Vyndaqel family, Nurtec, and Padcev demonstrated strong growth, reinforcing the company’s focus on prioritizing key growth drivers.

• Altria Group reported its first-quarter performance for 2025 amidst varying market dynamics.
• The company, known primarily for its tobacco products, emphasized robust operations in its Smokeable Products and Oral Tobacco Products segments.
• Altria CEO Billy Gifford highlighted that the core traditional tobacco business remained profitable in a challenging environment, and the company’s flagship brand, Marlboro, continued to show resilience despite economic pressures.

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

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

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

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

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

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

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

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

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

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